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HomeMy WebLinkAbout2010-07-08MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING THURSDAY, JULY 8, 2010 CIVIC CENTER COUNCIL CHAMBER 73510 FRED WARING DRIVE, PALM DESERT, CA 92260 I. CALL TO ORDER - 3:00 P.M. Mayor Finerty convened the meeting at 3:01 p.m. II. ROLL CALL Present: Councilmember Jean M. Benson Mayor Pro Tem Jim Ferguson Councilman Robert A. Spiegel Mayor Cindy Finerty Excused Absence: Councilman Richard S. Kelly Upon a motion by Spiegel, second by Ferguson, and 4-0 vote of the City Council, Councilman Richard S. Kelly's absence from today's meeting was excused. Also Present: John M. Wohlmuth, City Manager/RDA Executive Director David J. Erwin, City Attorney Justin McCarthy, ACM for Redevelopment Stephen Y. Aryan, Assistant to the City Manager Rachelle D. Klassen, City Clerk Bo Chen, City Engineer Russell Grance, Director of Building & Safety Mark Greenwood, Director of Public Works Frankie Riddle, Director of Special Programs J. Luis Espinoza, Assistant Finance Director Dorian Cooley, Chief, Palm Desert Fire/Riverside Co. Fire Dept./Cal Fire Andrew Shouse, Asst. Chief, Palm Desert Police/Riverside Co. Sheriff's Dept. Grace L. Mendoza, Deputy City Clerk III. ORAL COMMUNICATIONS - A (CLOSED SESSION ITEMS) None MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JULY 8, 2010 IV. ADJOURN TO CLOSED SESSION Reauest for Closed Session: Conference with Real Property Negotiator pursuant to Government Code Section 54956.8: 1) Property: APN 628-130-015 Negotiating Parties: Agency: John M. Wohlmuth/Lauri Aylaian/City of Palm Desert/ Palm Desert Redevelopment Agency Property Owner: Barracuda, LLC Under Negotiation: x Price x Terms of Payment 2) Property: APN 628-130-008 Negotiating Parties: Agency: John M. Wohlmuth/Lauri Aylaian/City of Palm Desert/ Palm Desert Redevelopment Agency Property Owner: David Nelson Under Negotiation: x Price x Terms of Payment 3) Property: 72559 - 72567 Highway 111, Palm Desert (APNs 640-370-015, 640-320-004) Negotiating Parties: Agency: John M. Wohlmuth/Justin McCarthy/City of Palm Desert/ Palm Desert Redevelopment Agency Property Owner: City of Palm Desert Other Parties: Palm Springs Art Museum Under Negotiation: x Price x Terms of Payment 4) Property: Lease Property - 73-470 El Paseo, Suite No. 14, Palm Desert Negotiating Parties: Agency: John M. Wohlmuth/Justin McCarthy/City of Palm Desert/ Palm Desert Redevelopment Agency Property Owner: El Paseo Square, LLC Under Negotiation: x Price x Terms of Payment 5) Property: Lease Property - Parkview Professional Office Complex - 73710 Fred Waring Drive, Suite No. 108, Palm Desert Negotiating Parties: Agency: John M. Wohlmuth/Paul S. Gibson/City of Palm Desert Property Owner: City of Palm Desert Other Parties: Senate Rules Committee of California Under Negotiation: x Price x Terms of Payment 2 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JULY 8, 2010 6) Property: 44-900 East San Clemente Circle, Palm Desert (APN 627-074-006) Negotiating Parties: Agency: John M. Wohlmuth/Justin McCarthy/Martin Alvarez/ City of Palm Desert/Palm Desert Redevelopment Agency Property Owner: Mr. and Mrs. Timothy R. Palmer Under Negotiation: x Price x Terms of Payment 7) Property: 44-845 San Clemente Circle, Palm Desert Negotiating Parties: Agency: John M. Wohlmuth/Justin McCarthy/Martin Alvarez/ City of Palm Desert/Palm Desert Redevelopment Agency Property Owner: Palm Desert Redevelopment Agency Under Negotiation: x Price x Terms of Payment Conference with Legal Counsel regarding existing litigation pursuant to Govemment Code Section 54956.9(a): a) PDCC Development LLC, Petition for Bankruptcy, United States Bankruptcy Court, Central District of California Conference with Legal Counsel regarding significant exposure to litigation pursuant to Government Code Section 54956.9(b): Number of potential cases: 2 On a motion by Spiegel, second by Ferguson, and 4-0 vote of the City Council, with Kelly ABSENT, Mayor Finerty adjourned the meeting to Closed Session at 3:03 p.m. She reconvened the meeting at 4:00 p.m. V. RECONVENE REGULAR MEETING - 4:00 P.M. A. REPORT ON ACTION FROM CLOSED SESSION. None VI. PLEDGE OF ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA - Mayor Pro Tem Jim Ferguson VII. INVOCATION - Mayor Cindy Finerty 3 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JULY 8, 2010 VIII. ORAL COMMUNICATIONS - B MR. JOHN GREENWOOD, Periwinkle Court, Palm Desert, representing both Prest Vuksic Architects and the Board of the Coachella Valley U. S. Green Build Council, said the Board is hosting an event on Thursday, July 15, at 5:30 p.m. Speaker for the event would be Greg Reitz, who was the Green Building Advisor to the City of Santa Monica and during whose tenure there went from having zero LEED-certified buildings to having more per capita than anywhere in the country. He said that Mr. Reitz would be speaking on in -fill, mixed use, and sustainable planning. Because of the event's relevance, the Coachella Valley Board has asked all Planning Agencies, Planning Commissioners, and City Councilmembers to attend and benefit from the presentation. He provided copies of the event flier to City Councilmembers and offered to answer any questions. MR. JIM FOOTE, Bureau of Land Management, Palm Springs Office, and on behalf of the BLM and U. S. Forest Service, congratulated Mayor Pro Tem Ferguson for his appointment to the National Monument Advisory Committee. He acknowledged that the appointment had been a long time in coming, and his patience in the process was most appreciated. Upon checking the records, he discovered that the first application was signed on June 18, 2008 (751 days ago), noting that the process included applications going up through the Califomia BLM State Director, the U. S. Forest Service Regional Forester, onto the various Washington -Offices of BLM and Forest Service, further up through the Departments of Agriculture and Interior, and finally being vetted through the White House. He also congratulated Buford Crites, who was nominated and approved as the Alternate Representative. Additionally, in recognition of this year's 10`h Anniversary of the National Landscape Conservation System and of the Santa Rosa and San Jacinto Mountains National Monument, he presented the Council with 3D postcards depicting the Art Smith Trail that begins in the City of Paim Desert. He said in conjunction with the National Monument's 10' Anniversary, there would be events coming up later in the year that he would be providing information on. MS. K KAUFMANN, The Desert Sun, 750 North Gene Autry Trail, Palm Springs, addressed the City Council to say it would be her last City Council Meeting as the Palm Desert Beat Reporter, because as of Monday she would be moving to a new assignment on the Business Desk. Her replacement for Palm Desert would be Blake Herzog, in attendance today as well and who had previously been covering the City of Cathedral City. Like herself, Ms. Herzog was also a Palm Desert resident. She was sure the City would welcome Ms. Herzog with the same courtesy and professionalism as she was shown. She went on to say that while she would no longer be covering City Government, her new beat includes Green Technology and Retail, meaning she will still be covering key stories in Paim Desert. She graciously thanked City staff for all their professionalism and helpfulness over the last five years, as well as thanking everyone in Palm Desert for helping her grow both personally and professionally. She hoped that her work had in some small way 4 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JULY 8, 2010 benefited the residents and helped the City to move forward, and while it may not have always pleased all Councilmembers all the time, it meant she was doing her job. Although, when there were disagreements, she felt they had always been handled with an enormous degree of professionalism and respect. She looked forward to continuing to keep her eyes on Palm Desert. On behalf of the City Council, Mayor Finerty extended appreciation and wished Ms. Kaufmann all the best in her new assignment. She also welcomed Ms. Herzog. MS. BLAKE HERZOG, The Desert Sun, Palm Springs, greeted the City Council and said she looked forward to working with Palm Desert. MR. TIM BARTLETT, Salt Cedar Street, Palm Desert, said that if he came and spoke at every meeting for the next year or two, perhaps he'd have enough public speaking skills to warrant the City Council's attention to his message. He referred to the world's current economic downturn — with both the State of California and County of Riverside being in trouble — but apparently the City wasn't. Although it was difficult to tell, in his reading of the Finance Department webpage, the City has $800 million of debt (nearly $1 billion); it was a lot of money, and the City was still spending in earnest. One of the big capital projects being worked on was El Paseo Revitalization, and while it hadn't been specifically approved, a $500,000 survey was authorized, as was a $500,000 sign that cannot structurally support itself with an inner cage that will be visible. It was nonsensical to him to have a project not formally approved but that had already spent $1 million. Another project was the swimming pool where over $1 million had been spent on design, and while .a feasibility study was being done to find out what to charge swimmers, none was done to determine if it made sense to build a pool and if there were enough people to justify the expense. He saw $6 million in the budget; and while he knew that $1 million was coming from College of the Desert, it was an $11.3 million project, meaning it was short a few million, which he assumed was being accomplished through debt that increased the cost even more. He still didn't know why the project required either a 7,000 square -foot dressing room or manned concession stand, pointing out that La Quinta's public pool is only open an hour a day with a charge of $2.00, and no one comes to it. He questioned then why Palm Desert was willing to spend $11.3 million in a City that probably has more swimming pools than anywhere in the world, but no one seems to care. He was amazed every week when he reads the agenda at the amount of money being spent. MR. DAVID GOLDMAN, Highway 111, Palm Desert, referred to a letter he'd received from the City last week. The letter was dated June 23 and advised small business owners with neon signs that they had until August 23 to remove them. He pointed out that many of the businesses had displayed those signs for a long time, and they'd been done at that time in a fashion to accommodate the sign ordinance regulations. He said business was slow in the third quarter of the year; many business owners were struggling and coming out of pocket just to pay their taxes, payroll, utilities that were doubled, while income was cut in half. Small businesses 5 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JULY 8, 2010 were trying to keep their doors open and then having to endure a very large expense to change their signage at this time —during one of the most severe economic downturns experienced by the country in nearly 80 years —and he questioned the necessity of this enforcement. He understood this matter would be on the next meeting agenda, but that wasn't until August 26, and businesses were supposed to be in compliance by August 23. He could not afford this expenditure right now, with his sign being done over seven years ago; his neighboring businesses, Don The Dog Groomer - sign done 13 years ago, and Prime Cuts (in attendance also) - sign done 17 years ago, were in the same position. Mayor Pro Tem Ferguson asked to see Mr. Goldman's letter, saying it was the first he'd heard of this issue. MR. GOLDMAN went on to say for many small businesses, signage was their first line of advertising to bring people in who will spend money, allowing the business owners to pay their taxes, utilities, rent, keep the doors open, and promote good business in the beautiful City of Palm Desert. Mayor Finerty suggested referring the matter to the City Manager for follow-up. Mayor Pro Tem Ferguson asked if the City Attorney had reviewed the letter, and Mr. Erwin said he didn't think he had. Mayor Pro Tem Ferguson said the letter requested the small business owner's cooperation, sounding to him like the City was asking for voluntary compliance with its ordinance that it couldn't otherwise require. With the Mayor's permission, he asked to provide this to the City Attorney for review, and he thanked Mr. Goldman for calling it to the Council's attention. IX. AWARDS, PRESENTATIONS, AND APPOINTMENTS A. PRESENTATION OF PROCLAMATION TO RECOGNIZE THE PALM DESERT HIGH SCHOOL BASEBALL TEAM FOR WINNING CIF SOUTHERN SECTION DIVISION IV CHAMPIONSHIP (Continued from the meeting of June 24, 2010). On behalf of the entire City Council, Mayor Finerty proudly presented the framed proclamation to the Coaches and Team Members, past and present, of the Palm Desert High School Aztecs Baseball Team. The PDHS Team thanked the City for all its support over the years and said they were very proud to be its representatives. 6 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JULY 8, 2010 B. PRESENTATION TO RECOGNIZE LEE MORCUS FOR HIS CONTRIBUTIONS TO THE CITY OF PALM DESERT AND ITS MARKETING COMMITTEE. Mr. Morcus was unable to be present for today's recognition. The engraved crystal clock in appreciation for his time on the Marketing Committee will be forwarded to him. C. PRESENTATION OF THE AMERICAN CANCER SOCIETY'S "AMBASSADOR OF HOPE" AWARD TO MAYOR PRO TEM JIM FERGUSON. MR. MARVIN SCHURGIN, Regional Ambassador for the American Cancer Society and Member of the Leadership Council, said that each year the American Cancer Society's Califomia Division acknowledges communities, organizations, and individuals for their efforts in the year just past that benefit cancer patients and their families, and that help to prevent cancer in those who have been spared from cancer thus far in their lifetimes. One of the most prestigious of the awards was the "Ambassador of Hope," given to an individual who's gone above and beyond in supporting advocacy activities. He was very pleased to honor Palm Desert Mayor Pro Tem Jim Ferguson for his successful efforts in advocating for smoke -free environments that protect the health of Paim Desert residents and visitors to the City. In the Society's fight against cancer, the number one enemy was tobacco; therefore, they commended the City Council for supporting the ordinance for smoke -free area and applauded both the Council and Mayor Pro Tem Ferguson for the efforts in making this decision. He presented Mayor Pro Tem Ferguson with an engraved plaque of award. Mayor Pro Tem Ferguson graciously accepted and responded that the honor really belonged to the entire City Council, which unanimously voted to adopt the ordinance. He also credited Councilmember Benson with championing the good fight through the American Cancer Society long before he came along. D. REQUEST FOR ACCEPTANCE OF RESIGNATIONS AND APPOINTMENT OF NEW MEMBERS TO THE PALM DESERT YOUTH COMMITTEE. Mayor Pro Tem Ferguson moved to, by Minute Motion: 1) Accept letters of resignation from the following Palm Desert Youth Committee Members: Raine Armstrong, Alahna Dunbar, Kate Hart, Alison McCollister, Briana Nolan, Jason Richard, Jonny Rohrbaugh, Jenna Scott, Abby Sturgeon, and Elle Wohlmuth; 2) Appoint the following individuals to the Paim Desert Youth Committee to fill vacancies in the terms of the aforementioned Members: Sydney Werry, Natalie Grum, Adam Chaplain, Julien Bloch, Wes Wohlmuth, Will Harvey, Garrett Powell, Landen Powell, Chris Benedetto, and 7 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JULY 8, 2010 Mykos Marcinkevicius. Motion was seconded by Benson and carried by a 4-0 vote, with Kelly ABSENT. X. CONSENT CALENDAR A. MINUTES of the Regular City Council Meeting of June 24, 2010. Rec: Approve as presented. B. CLAIMS AND DEMANDS AGAINST THE CITY TREASURY - Warrant Nos. 252, 256, 257, and 260. Rec: Approve as presented. C. APPLICATION FOR ALCOHOLIC BEVERAGE LICENSE by Belle's Southern Dining, 73-155 Highway 111, Palm Desert. Rec: Receive and file. D. APPLICATION FOR ALCOHOLIC BEVERAGE LICENSE by Cougar's Bar & Nightclub, 74-360 Highway 111, Palm Desert. Rec: Receive and file. E. CULTURAL RESOURCES PRESERVATION COMMITTEE Minutes for the Meeting of May 25, 2010. Rec: Receive and file. F. RESOLUTION NO. 2010 - 58 - A Resolution of the City Council of the City of Palm Desert, California, Setting Forth Its Findings and Authorizing the Destruction of Files from the Code Compliance Department that Have Been Digitally Imaged (Files Dated 2009). Rec: Waive further reading and adopt. G. REQUEST FOR DECLARATION of Surplus Property and Disposal Authorization — Miscellaneous Computer and Electronic Equipment. Rec: By Minute Motion, declare items listed on the accompanying staff report's Exhibit "A" as surplus property and authorize disposal as appropriate. 8 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JULY 8, 2010 H. REQUEST FOR DECLARATION of Surplus Furniture Currently Residing in the Former Parks Satellite Office at the Palm Desert Community Center and Authorization for the City Manager to Enter Into a Purchase and Sale Agreement with the Desert Recreation District for Said Furniture. Rec: By Minute Motion, authorize: 1) The declaration of surplus fumiture within the former Parks Satellite Office; 2) City Manager to enter into a Purchase and Sale Agreement with Desert Recreation District (DRD) for $15,750 (75% of original cost) for same (Contract No. C29999). I. REQUEST FOR AWARD OF CONTRACT for Lagoon and Water Features Maintenance Services to Southwest Aquatics, Inc., in the Amount of $23,870 (Contract No. C29800). Rec: By Minute Motion, award the subject contract for Lagoon and Water Features Maintenance Services to Southwest Aquatics, Inc., Palm Desert, California, in the amount of $23,870 ($26,040 prorated to an 11-month term of contract paid monthly in the amount of $2,170) — funds are available in General Fund Account Nos. 110-4614-453-3370 - Repair/Maintenance Medians and 110-4610-453-3320 - Repair/Maintenance Landscape Services. J. REQUEST FOR AUTHORIZATION for the City Manager to Execute a Joint Use Agreement with Southern California Edison for Frank Sinatra Drive and Portola Avenue Intersection Improvements (Contract No. C27950B, Project No. 572-08). Rec: By Minute Motion, authorize the City Manager to execute a Joint Use Agreement, pending approval by the City Attomey, with Southern California Edison for the relocation of existing facilities in conjunction with construction of the Frank Sinatra Drive and Portola Avenue Intersection Improvements. K. REQUEST FOR AUTHORIZATION to Release Security for Precise Plan No. 07-15 and Accept the One-year Maintenance Bond (Segovia of Palm Desert, Applicant). Rec: By Minute Motion, authorize release the security for PP 07-15 (Segovia of Palm Desert) and accept the one-year Maintenance Bond for the project. 9 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JULY 8, 2010 L. REQUEST FOR APPROVAL of Proposal by Dekra-Lite Industries, Inc., in the Amount of $46,854 to Install, Remove, Maintain, Clean, and Store the City of Palm Desert's Holiday Lighting and Decorations (Contract No. C28122). Removed for separate consideration under Section XI, Consent Items Held Over. Please see that portion of the Minutes for Council discussion and action. M. REQUEST FOR AUTHORIZATION to Submit the 2010/11 Used Oil Payment Program (OPP) Application (1st Cycle) to CalRecycle. Rec: 1) Waive further reading and adopt Resolution No. 2010 - 59, authorizing Used Oil Payment Program Applications to CalRecycle. 2) By Minute Motion, authorize: a) Ratification of staff submittal of the 2010/11 Used OH Payment Program (OPP) Application (1st Cycle) to CalRecycle; b) expenditure of awarded funds from Recycle Fund, Account No. 236-4195-454-3090. N. CONSIDERATION of Request for Participation in the Convention and Visitors Authority (CVA) and California Travel and Tourism Commission (CTTC) Cooperative Marketing Program. Removed for separate consideration under Section XI, Consent Items Held Over. Please see that portion of the Minutes for Council discussion and action. O. CONSIDERATION of Request for Participation in the Convention and Visitors Authority (CVA) Air Service Cooperative Advertising Campaign. Removed for separate consideration under Section XI, Consent Items Held Over. Please see that portion of the Minutes for Council discussion and action. 10 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JULY 8, 2010 P. REQUEST FOR AUTHORIZATION to Negotiate and Finalize a First Amendment to the Lease Agreement Between Desert Sands Unified School District and the City of Palm Desert for the Purpose of Facilitating a Pre- school Program at the Palm Desert Early Childhood Education Center, 44-911 Cabrillo Avenue, Palm Desert (Contract No. C26100A). Rec: By Minute Motion: 1) Authorize staff to negotiate and finalize a First Amendment to the Lease Agreement by and between the Desert Sands Unified School District and City of Palm Desert for continuation of an existing Pre-school Program and the Palm Desert Early Childhood Education Center; 2) approve the subject contract substantially as to form; 3) authorize the City Manager to approve and execute said First Amendment to the Lease Agreement. Q. REQUEST FOR APPROVAL of the 12`h Annual "Turkey Trot" 5K Run/Walk to Be Held in the City on November 25, 2010, Including Closure of Public Streets (Desert Cities Track Club, Applicant). Rec: By Minute Motion, approve the 12'h Annual "Turkey Trot" 5K Run/Walk on November 25, 2010, including closure of El Paseo as proposed, with a maximum City contribution of $3,000 for required traffic control barriers — funds are available in General Fund Account No. 110-4250-433-2145 - Traffic Safety. Mayor Finerty requested Items L, N, and 0 be removed for separate action under Section XI, Consent Items Held Over. Upon a motion by Spiegel, second by Ferguson, and 4-0 vote of the City Council with Kelly ABSENT, the remainder of the Consent Calendar was approved as presented. XI. CONSENT ITEMS HELD OVER L. REQUEST FOR APPROVAL of Proposal by Dekra-Lite Industries, Inc., in the Amount of $46,854 to Install, Remove, Maintain, Clean, and Store the City of Palm Desert's Holiday Lighting and Decorations (Contract No. C28122). Mayor Finerty stated she pulled this item from Consent Calendar because based on last year's holiday decoration display, which she thought was hideous and looked like anything but holiday, she was not in favor of approving $46,854 this year. She said a subcommittee should be formed to pick a new selection, which she would be happy to serve, because the holiday display had declined over the years. 11 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JULY 8, 2010 Mr. Aryan responded the previous inventory of twelve years was replaced by last year's decorations, which were reviewed by a subcommittee and approved by Council. Mayor Finerty asked if the City was stuck with them. Mr. Aryan answered yes, because it was the City's current inventory. Further responding, he explained the contract included installation, removal, cleaning, storing, and a 24-hour callout during the season for any type of maintenance issues. Mayor Finerty said her personal preference was not to put any decorations up at all because they were so bad. She questioned whether any of the decorations can be exchanged for something that reflected the holiday spirit. Mayor Pro Tem Ferguson asked what was the useful life expectancy of the holiday decorations. MR. GABRIEL ADRIANCE, Laguna Beach, CA, responded the life expectancy for holiday lights was three seasons, six seasons for all frames like the wreaths displayed on Highway 111, and the current inventory was going on its third year. He said $46,854 covered a huge holiday decoration program, which included installation, removal, storage, and maintenance, so the cost was spread out. The program included 24-hour maintenance service; if any lights went out, a team was dispatched to fix/pair the problem. Additionally, there were discussions with staff about moving some of the decor from the Visitor Center to the new location this year. Councilmember Benson stated she personally didn't have any objections to the decorations as she served on the committee that selected them. At that time, the committee looked for something new and different knowing the new decorations wouldn't appeal to everyone's taste, but she certainly didn't see anything objectionable. The only criticism was that there wasn't enough decoration, but she didn't receive any complaints. She knew it cost money to install and remove the decorations every year, therefore, she would be happy approve this item. Councilman Spiegel agreed. Councilmember Benson moved to, by Minute Motion, approve a proposal by Dekra- Lite Industries, Inc., Santa Ana, California, in the amount of $46,854 for the installation, removal, maintenance, cleaning, and storage of Palm Desert's Holiday Lighting and Decorations per terms of Contract No. C28120 — funds are available in the FY 2010-2011 Budget, Account No. 110-4310-433-3910. Motion was seconded by Spiegel and carried by a 3-1 vote, with Finerty voting NO and Kelly ABSENT. 12 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JULY 8, 2010 Please note: Items N and 0 were discussed jointly. N. CONSIDERATION of Request for Participation in the Convention and Visitors Authority (CVA) and California Travel and Tourism Commission (CTTC) Cooperative Marketing Program. Mayor Finerty stated this request had to do with a request from the Convention and Visitors Authority (CVA) Board for $12,500. She questioned if this was the best use of City funds and curious to know specifically if staff was able to measure results to justify the expenditure. Marketing Manager Kristy Kneiding responded this was one of the campaigns the City had participated over the years and in previous years it cost $50,000. She said the campaign had the buy -in support of both Alaskan Airlines and WestJet, noting WestJet announced this was the first year they would provide year-round service to Canada, including the summer. Staff believed part of that was a result of this type of marketing for Palm Desert, so from that aspect the goal to build airline support was met. Another benefit is that for $25,000 this program was reaching the Western Canadian market and Pacific Northwest. Councilman Spiegel asked about the Marketing Committee's input. Marketing Manager Kristy Kneiding said the Marketing Committee unanimously approved support for both Items N and O. Consideration for the $12,500 is a cooperative effort with the State of California as well as the CVA. If the City was to do this on its own, the cost would be $25,000 for this program. The benefit this year is the City will be able to have its own landing page, and the program was expanded to include reaching more than 2.6 million affluent leisure travelers. Ads will go into publications in Travel & Leisure, Budget Travel, Food & Wine, and National Geographic Traveler in the fall. In the spring, ads will be in Canadian Newspaper inserts like the Vancouver Sun, Calgary Herald, Edmonton Journal, Toronto Star, and in addition, a digital component was added that reached 1.5 million circulations as well as create an ad for the iPad, where Palm Desert's campaign brochure can be downloaded. Mayor Finerty referring to Item N and 0, stated that now that Palm Desert was a member of the Business Improvement District (BID) with Transient Occupancy Tax (T.O.T.) Funds going to the CVA, why was the City being nickel-and-dimed, and couldn't the funds from the BID and TOT pay for these types of programs. Mayor Pro Tem Ferguson offered to answer the question, stating that as the City's liaison to the Joint Powers Authority (JPA) and the CVA, he presented the same question to Interim President Judy Vossler. He said on the surface 13 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JULY 8, 2010 it seemed like a logical question, but by Palm Desert switching to the BID, the CVA actually got a reduction in its funding from the City of Palm Desert from $900,000 to $650,000, and with the hotel occupancy rates being down, they received less than originally projected. As it was explained to him, both Items N and 0 were voluntary programs, and if Palm Desert didn't participate, the City's name wouldn't be used. He said it was like buying extra advertising that's not included with the BID package. He went on to say that in questioning further, of the 2.6 million, it really was 1.1 million in print impressions, which lasted longer than the digital electronic impressions. However, he was also aware that a couple of colleagues had a meeting with some of the hoteliers where this kind of extra advertising was requested. He thought the purpose of the City joining the BID was to take the City's savings and invest it back into extra promotional deals just like the one being presented. When it was explained to him that extra value was being bought in advertising, it made perfect sense, but if you look at it as something that should have been included with the BID package, it would feel like your being nickel-and-dimed, but it just depends on the way one looks at it. Ms. Kneiding noted this package wasn't just a regular ad, because the City actually received a picture and the ability to write the copy that appeared as editorial, which had more value than just a regular Palm Desert tourism ad. She said the package reached specific target audiences and extended the reach considerably, stating $12,500 couldn't buy you an ad in Travel & Leisure alone. Mayor Finerty said she was aware of the meeting with the hoteliers and Shadow Mountain related that many customers were coming from the Pacific North and would like to see more advertising focused on that area. The hotels agreed and offered to provide statistics on their customers origin with staff following up. She would like to see staff follow up in the measuring of results, because it did seem on face value the City was being nickel-and-dimed. She preferred, if everyone agreed, that it the Pacific North was a target area, that it become part of the CVA's budget. She said perhaps staff could convey that message at the CVA meeting. Mayor Finerty moved to, by Minute Motion, concur with the recommendation of the Marketing Committee and approve participation in the CTTC/CVA Marketing Program in the amount of $12,500 — funds are included in the Marketing Budget, Account No. 110-4417-414-3221. Motion was seconded by Ferguson and carried by a 4-0 vote, with Kelly ABSENT. 14 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JULY 8, 2010 O. CONSIDERATION of Request for Participation in the Convention and Visitors Authority (CVA) Air Service Cooperative Advertising Campaign. Please see discussion for this item under Item N. Mayor Finerty moved to, by Minute Motion, concur with the recommendation of the Marketing Committee and support the CVA Cooperative Air Service Marketing Campaign in the amount of $25,000 — funds are included in the Marketing Budget, Account No. 110-4417-414-3221. Motion was seconded by Ferguson and carried by a 4-0 vote, with Kelly ABSENT. XII. RESOLUTIONS A. RESOLUTION NO. 2010 - 60 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, DECLARING ITS SUPPORT FOR THE LOCAL TAXPAYER, PUBLIC SAFETY, AND TRANSPORTATION PROTECTION ACT OF 2010 (PROPOSITION NO. 22). Mr. Aryan noted the staff report and offered to answer any questions. He noted Mayor Richard Kite from the City of Rancho Mirage was present this evening to speak on this item. MR. RICHARD W. KITE, Mayor of the City of Rancho Mirage, stated he was also Vice President of the Riverside County Division of League of California Cities. He asked the Council to support Proposition 22, which will appear on the November ballot. Since December of 2009, the coalition which is sponsored by the League began collecting signatures to place Proposition 22 on the November 2010 ballot to stop the State of California from seizing city funds. He said 694,000 signatures were required for the initiative to be placed on the ballot, and 1.2 million signatures were collected with 80% of them qualifying. He said Proposition 22 will prohibit the State from taking funds used for transportation, local government projects and services, and its purpose is to close loopholes to change the California State Constitution to prevent State government from seizing or interfering with tax revenues dedicated to funding local government services. These revenues also include funds associated with redevelopment dedicated to transportation improvement services. Last year, the City of Palm Desert had to remit $25.5 million to the State to meet its shortfall, but if Proposition 22 passes, the State will not be allowed to take such funds. At this time, most of the cities in Riverside County have supported this proposition and urged the City Council to send a message to Sacramento to stop raiding local government funds. Mayor Finerty noted when the Council received the request for a letter of support, the response was that Palm Desert did not take a position. However, the Council discussed it and agreed it would be helpful if it did 15 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JULY 8, 2010 support Proposition 22. She thanked the Mayor for coming this evening, because she believed supporting the proposition was in the City's best interest. Councilman Spiegel moved to waive further reading and adopt Resolution No. 2010-60. Motion was seconded by Ferguson and carried by a 4-0 vote, with Kelly ABSENT. XIII. ORDINANCES For introduction: None For Adoption: None XIV. NEW BUSINESS A. CONSIDERATION OF REQUESTS FOR TEMPORARY USE OF ALCOHOL AND FEE WAIVERS FOR THE MARTHA'S VILLAGE & KITCHEN 4TH ANNUAL THANKSGIVING DAY 5K TO BE HELD AT PALM DESERT CIVIC CENTER PARK. Senior Management Analyst Ryan Stendell noted the staff report and offered to answer any questions. He also noted a representative from Martha's Village & Kitchen was present to speak on the item. MS. BLAIR AMIDEI, Martha's Village Representative thanked the City Council for allowing Martha's Village to hold it's 4th Annual Thanksgiving 5K at the Civic Center Park. She said they were excited to have the event in Palm Desert and hoped to continue for years to come. Councilman Spiegel asked how important was having beer served at the event. MS. AMIDEI responded she knew the request would be denied, which was fine, but the beer garden attracted a crowd that mostly likely wouldn't be captivated, which was the 21 to 25 age range of single adults. She said last year they served one keg at the La Quinta Park with 1,200 participants, which was a maximum of 20-30 people in and out of the beer garden. She said it was not a free-for-all, but having the beer garden did attract more participants, which helped raise money to feed the homeless. Councilmember Benson asked if this event replaced the Turkey Trot. 16 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JULY 8, 2010 Mayor Finerty said the request for the Turkey Trot event, which was under Consent Calendar, was approved earlier this evening. She noted staff and the police department believed serving alcohol at the 5K at the Civic Center Park was not appropriate, therefore, they recommended denial of the waiver, which she supported as well. Councilman Spiegel moved to, by Minute Motion: 1) Deny the temporary waiver to Palm Desert Municipal Code Section 11.01.080 (W) - Possession/Consumption of Alcohol in City Parks, pursuant to Palm Desert Municipal Code Section 9.58.040; 2) grant a waiver of fees in the amount of $40 for the Martha's Village & Kitchen 4th Annual Thanksgiving Day 5K at Civic Center Park. Motion was seconded by Ferguson and carried by a 4-0 vote, with Kelly ABSENT. B. REQUEST FOR AWARD OF CONTRACT FOR THE PURCHASE OF 242,500 POUNDS OF GRASS SEED TO SIMPLOT PARTNERS IN THE AMOUNT OF $176,332.25 (CONTRACT NO. C29880). Councilmember Benson moved to, by Minute Motion, award subject contract for the purchase of 242,500 pounds of grass seed to Simplot Partners, Palm Desert, California, in the amount of $176,332.25 — funds are available in General Fund Account Nos. 110-4610-453-2190 - Supplies/Other, 110-4611-453-3371, R/M Tri-Cities Sport Facility, and 110-4614-453-3370 - R/M Medians, for the City's portion, and from Desert Willow Corporation for the balance. Motion was seconded by Spiegel and carried by a 4-0 vote, with Kelly ABSENT. C. REQUEST FOR APPROVAL OF HARDWARE AND SOFTWARE PURCHASE FOR A WI-FI HOTSPOT ON EL PASEO AND AUTHORIZATION FOR CITY MANAGER TO APPROVE CONTRACT FOR INSTALLATION (CONTRACT NO. C30000). Mayor Pro Tem Ferguson moved to, by Minute Motion: 1) Approve the purchase of hardware and software required for Phases 2 and 3 of the El Paseo Wi-Fi Project in the amount of $45,256.45; 2) authorize City Manager to approve a contract for the installation of said components in an amount not to exceed $12,000 — funds are available in Account No. 110-4190-415-4040. Motion was seconded by Finerty. Councilman Spiegel stated he asked Information Systems Manager Clay Von Helf to check if University Park was covered by Wi-Fi. Information Systems Manager Clay Von Helf responded there were Wi-Fi hotshots all over the City, which included Cal State campus. He said most of the hotshots in the City were indoors, which meant the access points didn't travel well outside through buildings. Staff was proposing a hotspot outdoors on El Paseo with the signal not traveling well into buildings. Further responding, he said Rock's Firehouse was a Wi-Fi hotspot, stating many restaurants and businesses offered Wi-Fi as an incentive for customers. He 17 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JULY 8, 2010 confirmed College of the Desert, Civic Center, Visitor Center, Desert Willow Golf Course, and Palm Desert Library offered Wi-Fi. He did not check on the local schools, but he could. Mayor Finerty called for the vote and it carried on a 4-0 vote, with Kelly ABSENT. D. REQUEST FOR AWARD OF CONTRACT TO JNS ADVERTISING FOR MEDIA BUYING SERVICE IN AN AMOUNT NOT TO EXCEED $205,000 FOR FISCAL YEAR 2010-2011 (CONTRACT NO. C30010). Mayor Pro Tem Ferguson stated he had no problem with awarding the contract to JNS and understood the logic of the rate sheets and commission, which made good sense. However, he had a question on The Desert Guide the City purchased advertising in, stating he met with the publisher of The Desert Sun concerning the eight pages in the Palm Desert Magazine, who indicated they could do overruns of the City's eight -page section and a Palm Desert Guide that had, for example, a map of El Paseo with a directory of all the businesses, which would address the complaints from small businesses about visibility at the last City Council meeting. The directory can be by category, i.e., accessories, artwork, purses, etc., with a map that showed where they're located. He said a two-tier map could be created of Westfield showing where all the shops are, a map of the City showing where points of interest are located, which was basically eight pages dedicated to Palm Desert. What really struck him was that when you asked for a guide at the Visitor Center, a Palm Springs Guide is handed out, which for the month of July and August covers things to do in Palm Springs and doesn't mention Palm Desert until you get to a two-inch section on restaurants. He said for what the City paid for an ad in September, November, January, February, and March, it could have 25,000 copies of a Palm Desert Guide every single month of the year for $12,000 instead of $13,000. He said on that one media alone, he would encourage staff and the Marketing Committee to sit down with the creative team at The Desert Sun and take advantage of the City's eight pages and see if an insert can be provided that the residents can pull out, but also stock the Visitor Center with these Palm Desert Guides. He understood if someone went to the CVA and wanted to know about the Valley, but if someone is going to the Visitor Center, it ought to be able to fulfill them with an eight -page brochure about Palm Desert businesses to help those small struggling ones that are obscure and hard to find. He said the City can combine the guide with the City's on-line services, and now that Palm Desert had Wi-Fi in El Paseo, people can pull up electronically the same map and find those businesses. He said the hoteliers indicated they needed more visibility, and this was a way to do it from both the print and electronic media, and the City had eight pages in which to do it with the money saved by switching this advertising media over to the Palm Desert Magazine. 18 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JULY 8, 2010 Ms. Kneiding agreed to pursue the Council's pleasure, but to clarify, she explained the circulation of The Desert Guide went to all the hotels and the City's ad was to drive traffic to the Visitor Center from Palm Springs or other cities, which was the purpose of that media buy. Additionally, The Desert Guide's circulation was so great that everybody got the Guide, and also handed out at the Visitor Center. However, she said staff will use the funds whichever way the Council wished. Mayor Finerty stated it was a pricey media buy for $13,485. She went on to say that instead of spending the proposed $15,840 for Palm Springs Life, why wouldn't the City want to pump those funds into marketing the Pacific Northwest as the hoteliers requested. She couldn't understand the logic about advertising, especially since it entered into a contract with The Desert Sun. She said if the City used The Visitor's Guide that just focused on Palm Desert, it would not only get people to the Visitor Center but into the City's businesses, mall, shops, and restaurants. Councilman Spiegel stated the other media buys would accomplish the same goals, but believed two separate issues were being discussed. He said if Council wanted to change the media buys, it needed to be on a separate agenda, because he didn't think it could be voted on this evening, at least he wouldn't. Mayor Pro Tem Ferguson said the media buys were on the agenda, but agreed that the Marketing Committee could take another look in light of the City's new magazine, which he didn't think the City had at the time the Marketing Committee reviewed the matter. Councilman Spiegel requested the media buy's portion be taken back to the Marketing Committee, but agreed to award the Contract to JNS Advertising for media buying services. Councilman Spiegel moved to, by Minute Motion: 1) Concur with the Marketing Committee's recommendation and award the subject contract to JNS Advertising, La Quinta, California, in an amount not to exceed $205,000 for media buying services, FY 2010-2011, with said media buys to be reconsidered by the Marketing Committee before purchasing same; 2) authorize the Mayor to execute the contract on behalf of the City — funds are available in Advertising Buys, Account No. 110-4417-414-3221. Motion was seconded by Ferguson and carried by a 4-0 vote, with Kelly ABSENT. 19 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JULY 8, 2010 E. REQUEST FOR APPROVAL OF CONTRACT FOR ONLINE MARKETING SERVICES IN THE AMOUNT OF $37,500 TO OFF MADISON AVE. (CONTRACT NO. C30020). Councilman Spiegel moved to, by Minute Motion: 1) Concur with the recommendation of the Marketing Committee and award the subject contract for Online Marketing Services to Off Madison Ave., Tempe, Arizona, in the amount of $37,500; 2) authorize the Mayor to execute the contract on behalf of the City; 3) authorize staff to advertise and issue a Request For Proposals (RFP) for Online Marketing Services — funds are available in Account No. 110-4417-414-3090. Motion was seconded by Finerty. Responding to question about measuring results, Marketing Manager Kristy Kneiding answered absolutely. She said the background information attached to the staff report noted that on-line advertising was actually the banner ad that could be measured by click through rates, which nearly doubled the industry average; a total of 587 vacation guides was requested, which represented a 5% conversion rate versus a 1 % industry average; the initiatives that are on-line, such as Pay -Per -Click generated 3,686 vacation guide requests, which was a 6.4% conversion rate versus the 2% industry standard; the cost per click over time has been decreased by 43%, which meant the City paid Tess to get the same impression and allowing for more click buys to be purchased. In addition, because the website was optimized, the tourism website saw a 118% increase in traffic from those searching for restaurants and 80% increase for hotel searches within a one 'A year period. Mayor Finerty called for the vote and it carried by a 4-0 vote, with Kelly ABSENT. F. REQUEST FOR APPROVAL OF MEMORANDUM OF UNDERSTANDING (MOU) BETWEEN DESERT SANDS UNIFIED SCHOOL DISTRICT, PALM DESERT CHARTER MIDDLE SCHOOL, AND THE CITY OF PALM DESERT AS IT RELATES TO PARTICIPATION IN AN AFTER SCHOOL PROGRAM AT PALM DESERT CHARTER MIDDLE SCHOOL (CONTRACT NO. C30030). Councilman Spiegel moved to, by Minute Motion, authorize the Mayor to execute the subject MOU between the Desert Sands Unified School District, Palm Desert Charter Middle School, and the City of Palm Desert relative to the After School Program at Palm Desert Charter Middle School — funding in the amount of $75,000 was included within the FY 2010-2011 Budget approved on June 24, 2010. Motion was seconded by Benson and carried by a 4-0 vote, with Kelly ABSENT. 20 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JULY 8, 2010 G. REQUEST FORAPPROVAL OF A MEMORANDUM OF UNDERSTANDING (MOU) BETWEEN DESERT SANDS UNIFIED SCHOOL DISTRICT, THE YMCA OF THE DESERT, AND THE CITY OF PALM DESERT AS IT RELATES TO PARTICIPATION IN AN AFTER SCHOOL PROGRAM AT LINCOLN ELEMENTARY SCHOOL (CONTRACT NO. C30040). Councilman Spiegel moved to, by Minute Motion, authorize the Mayor to execute the subject MOU between the Desert Sands Unified School District, The YMCA of the Desert, and the City of Palm Desert relative to the After School Program at Lincoln Elementary School — funding in the amount of $75,000 was included within the FY 2010- 2011 Budget approved on June 24, 2010. Motion was seconded by Benson and carried by a 4-0 vote, with Kelly ABSENT. H. REQUEST FORAPPROVAL OF A MEMORANDUM OF UNDERSTANDING (MOU) WITH THE BUREAU OF LAND MANAGEMENT FOR RANGER SERVICES, PORTIONS OF ADMINISTRATIVE COSTS, AND LANDSCAPING COSTS FOR THE SANTA ROSA MOUNTAINS VISITORS INFORMATION CENTER (CONTRACT NO. C30050). Mayor Pro Tem Ferguson stated that as the newly appointed representative on behalf of the City of Palm Desert he would move approval. Mayor Pro Tem Ferguson moved to, by Minute Motion, authorize the Mayor to execute the subject MOU with the Bureau of Land Management (BLM) for a three-year period, beginning July 1, 2010, through June 30, 2013 — funds are available in General Fund Account No. 110-4610-453-3092 - Parks - Contract Services. Responding to question, Senior Management Analyst Ryan Stendell said at one time it was a five-year term, but the last contract was for three years. Councilmember Benson seconded the motion and it carried on a 4-0 vote, with Kelly ABSENT. I. REQUEST FOR APPROVAL OF CONTRACT WITH EVERGREEN RECYCLING SOLUTIONS, INC., FOR CONSULTING SERVICES RELATIVE TO THE CITY'S COMMERCIAL AND MULTI -FAMILY HOUSING RECYCLE PROGRAMS (CONTRACT NO. C30060). Responding to question, Ms. Riddle said the object of the contract is to have the company come in and help staff go out and meet with businesses and owners of apartment complexes to educate them about recycling and to bring them on board. Those that agree to participate will receive education and training for their tenants and also provide full range implementation for the recycling program. Further responding, she said this was the first time the City was contracting to provide the service, stating the work was similar 21 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JULY 8, 2010 to what Recycling Technician Lisa Ream did, but unfortunately one person couldn't do all the work for the number of businesses and units in the City. She said results could be measured by the actual participation, the amount of disposal that's diverted, and cost -savings to businesses. She agreed to provide the Council with a report on the outcome. Councilman Spiegel moved to, by Minute Motion, authorize: 1) Mayor to enter into an agreement with Evergreen Recycling Solutions, Inc., La Quinta, Califomia, for consulting services relative to the City's Commercial and Multi -family Housing Recycle Programs; 2) authorize expenditure of funds in an amount not to exceed $75,000 from the Recycle Fund for this purpose, Account No. 236-4195-454-3090. Motion was seconded by Benson and carried by a 4-0 vote, with Kelly ABSENT. J. REQUEST FOR AUTHORIZATION TO SUBMIT AN APPLICATION FOR A CLIMATE SHOWCASE COMMUNITIES GRANT OFFERED BY THE ENVIRONMENTAL PROTECTION AGENCY IN THE AMOUNT OF $500,000 AND TO ALLOW THE CITY MANAGER TO SIGN AS THE AUTHORIZED REPRESENTATIVE FOR THIS PURPOSE (JOINT CONSIDERATION WITH THE PALM DESERT REDEVELOPMENT AGENCY AND THE PALM DESERT HOUSING AUTHORITY). Mr. Wohlmuth stated the grant application was reviewed by Planning Department staff and their Sustainability Coordinator Missy Grisa, and they have identified areas within the City where existing projects can be matched. He knew there was concern for the use of additional General Fund revenues in the amount of $500,000 if the grant was received, and his first response is that it wouldn't hurt to apply and staff can return to the Council with the specifics if the grant is awarded to the City. Secondly, all of the programs already exist that are sustainability in nature in the areas identified between Monterey Avenue, Portola Avenue, Fred Waring Drive, and Highway 111. Some of the programs that can be used to match the funds are the Turf Buy -Back Program, Community Gardens, Fruit Share Program, and the Affordable Net -Zero Demonstration Homes along Alessandro Alley where the City was purchasing lots and could use the remnant parcels for affordable net -zero demonstrations. He reiterated the City had existing programs it can match to the $500,000 federal grant if received. Mayor/Chairman Finerty asked if what the City considered a match was also what the Environmental Protection Agency (EPA) considered a match. Assistant Planner Missy Grisa responded the EPA considered a match with staff time, volunteer time, donations, and in -kind contributions to the project. She said staff time alone would contribute a great portion as well as contributions the City can obtain from members of the US Green Building Council by volunteering their time to give tours of the Net -Zero Demonstrations or collaborations the City may have with students at College 22 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JULY 8, 2010 of the Desert. The City can use student time as a donation at a minimum wage rate, and when you calculate those all out, it would be more than enough to reach the 50% match. Further responding, she confirmed General Funds would not be required, but potentially recycling or housing funds may be requested, which were already set aside, but at this time staff was not anticipating using them. Mayor Pro TemNice Chairman Ferguson moved to, by Minute Motion, authorize staff to submit an application for a Climate Showcase Communities Grant offered by the Environmental Protection Agency in the amount of $500,000 and to allow the City Manager to sign as the authorized representative. Motion was seconded by Benson and carried by a 4-0 vote, with Kelly ABSENT. K. REQUEST FOR AWARD OF CONTRACT FOR CONSTRUCTION OF THE DESERT WILLOW OVERFLOW PARKING LOT PROJECT TO COOLEY CONSTRUCTION, INC., IN THE AMOUNT OF $515,366 (CONTRACT NO. C29790, PROJECT NO. 614-09) (JOINT CONSIDERATION WITH THE PALM DESERT REDEVELOPMENT AGENCY). Councilman/Member Spiegel moved to, by Minute Motion: 1) Award the subject contract for construction of Desert Willow Overflow Parking Lot Project to Cooley Construction, Inc., Hesperia, California, in the amount of $515,366; 2) authorize the Mayor to execute the contract — funds are available in Redevelopment Agency Account No. 851-4663-454-4001, Project Area No. 2, Desert Willow Overflow Parking. Motion was seconded by Ferguson and carried by a 4-0 vote, with Kelly ABSENT. XV. CONTINUED BUSINESS A. REQUEST FOR AUTHORIZATION TO RELEASE SECURITY FOR PRECISE PLAN NO. 07-01 (LONGS DRUG STORE) AND ACCEPT THE ONE-YEAR MAINTENANCE BOND THEREFOR (LONGS DRUGS, APPLICANT) (Continued from the meeting of June 24, 2010). Mr. Erwin stated he reviewed all of the related agreements and found no provision that would allow the City to hold the bond's pending occupancy. Responding to question about interest in the building, Economic Development Manager Ruth Ann Moore said she had spoken with the broker who indicated there was a lease under negotiation, but not anything that could be announced at this time. Councilman Spiegel moved to, by Minute Motion, authorize release of the Security for Precise Plan No. 07-01 (Longs Drug Store) and accept the one-year Maintenance Bond therefor. Motion was seconded by Benson and carried by a 4-0 vote, with Kelly ABSENT. 23 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JULY 8, 2010 XVI. OLD BUSINESS A. CONSIDERATION OF AN AMENDMENT TO THE CURRENT REIMBURSEMENT AGREEMENT WITH THE COACHELLA VALLEY ASSOCIATION OF GOVERNMENTS (CVAG) TO INCLUDE PROJECT PHASING AND A TRIGGERING MECHANISM FOR FUTURE PHASE II COOK STREET IMPROVEMENTS AND AUTHORIZE THE CITY MANAGER AND CITY ATTORNEY TO WORK ON THE AMENDMENT (CONTRACT NO. C23760, PROJECT NO. 601-05). Responding to question, Mr. Wohlmuth said this project would widen Fred Waring Drive to Frank Sinatra to six lanes. Councilman Spiegel stated he understood the need to widen Fred Waring Drive to Country Club Drive, but couldn't vote for the additional two lanes from Country Club Drive to Frank Sinatra. However, he felt something should be done about the water runoff at Country Club Drive and Cook Street. Mayor Finerty stated she understood the added sixth lane would not impact the designated bike and golf cart lane on Cook Street. Mr. Greenwood said that was correct. Mayor Pro Tem Ferguson stated he couldn't understand Councilman Spiegel's logic to wanting six lanes from Fred Waring Drive to Country Club Drive, then down to four lanes to Frank Sinatra and back to six lanes to Gerald Ford Drive. Councilman Spiegel stated he recalled this matter being on a previous agenda where the people that lived in those communities that abut the area from Country Club Drive to Frank Sinatra were totally opposed. He didn't know if the traffic flow warranted it and believed there would be opposition, which was why he was opposed. Mayor Finerty stated this project would be undertaken years down the road, and asked staff how many years that would be. Mr. Greenwood responded it was undetermined, and that Councilman Spiegel was correct in that Cook Street didn't need to be six lanes at this time, but at some point in the future it will be warranted. He said Coachella Valley Association of Governments (CVAG) had been developing a series of triggers to identify when projects need to be funded and when they need to be built. One of those triggers is time and the other was traffic volume. In Cook Street's case, staff was proposing a traffic volume in the range of 55,000 vehicles per day, which would then trigger the City's need to widen the road in order to enjoy the Measure A Bond money for the project. 24 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JULY 8, 2010 Further responding, he said future traffic volume was expected mainly because of the Freeway Interchange on Cook Street and its closeness to University Park. Mayor Pro Tem Ferguson asked if the City was being consistent with the position it was taking with the City of Indian Wells. Mr. Greenwood answered yes, because the City was fighting to have specific criteria implemented in Indian Wells and applying similar criteria to Palm Desert. However, he believed the volume thresholds are a little different, because Indian Wells agreement preceded Palm Desert's. Councilman Spiegel asked if the water runoff can be taken care of in the interim. Mr. Greenwood responded he couldn't say and would have to review the funding. Mayor Pro Tem Ferguson stated this action at a minimum provided notice to the residents that Councilman Spiegel was concerned about, and ten years from now or the year 2020 those residents may have to bear with another lane of traffic. Mr. Greenwood explained it was similar to the history of Fred Waring Drive from Cook Street to Portola Avenue. There was a movement back in the early or late 1980's to widen the street that impacted residents that fronted Fred Waring, and the Council at that time provided a 10-year horizon where it vowed not to widen it, but the time eventually came and Fred Waring was widened. Councilman Spiegel noted the City had to buy a lot of houses as well. Mr. Greenwood agreed. Mayor Pro Tem Ferguson stated that project went about as smoothly as possible and Mayor Finerty added that aesthetically it was a huge improvement. Mayor Pro Tem Ferguson moved to, by Minute Motion: 1) Consider an amendment to the current Reimbursement Agreement with CVAG to include project phasing language and a triggering mechanism for future Phase II Cook Street Corridor Improvements; 2) authorize the City Manager and City Attorney to prepare the Amendment. Motion was seconded by Benson and carried by a 3-1 vote, with Spiegel voting NO and Kelly ABSENT. 25 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JULY 8, 2010 B. REQUEST FOR AUTHORIZATION FOR THE EXECUTIVE DIRECTOR TO AWARD CONTRACT FOR THE KITCHEN/BUILDING EXPANSION PROJECT AT DESERT WILLOW GOLF RESORT TO THE LOWEST RESPONSIVE BIDDER (CONTRACT NO. R29450C) (JOINT CONSIDERATION WITH THE PALM DESERT REDEVELOPMENT AGENCY). Councilmember/Member Benson moved to: 1) By Minute Motion, authorize the Executive Director to award the subject contract to the lowest responsive bidder for the Kitchen/Building Expansion Project at Desert Willow Golf Resort up to the project budget of $2.95 million plus 20% (bids scheduled to be opened July 20, 2010); 2) By Minute Motion, authorize the Director of Finance to set aside a 10% contingency for the project (based on lowest responsive bid amount — use of which requires additional action); 3) Waive further reading and adopt Resolution No. 2010 - 61, approving a loan in an amount not to exceed $500,000 from the City's Golf Course Maintenance Fund (Fund 241) to the Desert Willow Golf Course Operating Fund (Fund 520) — funds for construction have been included in the 2010-2011 Financial Plan in Project Area No. 2, Account No. 851-4663-454-4001. Motion was seconded Finerty. Responding to question about why staff was requesting a 20% contingency instead of the usual 10%, Redevelopment Manager Martin Alvarez said the usual 10% was to accommodate the normal contingency, because staff didn't have the ability to return with the actual pricing as bids will be opened in July. Staff was requesting authorization for the Executive Director to have flexibility to make adjustments to the project budget when the bids came in. Mayor Pro TemNice Chairman Ferguson noted staff was asking for a $600,000 flexibility. Mr. Alvarez responded 10% would be set aside as the usual contingency, and $300,000 for flexibility, which would not be used if bids came in at/or below budget. Councilman/Member Spiegel said the overall project was more than $3 million for a kitchen expansion and questioned if it would be appropriate to hold another City Council meeting. Mayor/Chairman Finerty agreed. However, she thought it was poor judgement to let people know what the City/Redevelopment Agency may be willing to spend before bids are submitted. Mr. Alvarez stated staff was presenting this item to the Council at this point due to the summer City Council schedule. Mayor/Chairman Finerty stated the City's finances needed to come ahead of Councilmembers schedules and another meeting can take place. 26 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JULY 8, 2010 Responding to question, Mr. Alvarez said the bid opening was July 20, and in order to meet the established schedule to lessen the impact to the peak season and be complete by the end of December, was the reason why this item was presented to the Council at this point. Councilman/Member Spiegel asked if a meeting can be held after the bid opening. Mr. Wohlmuth answered yes, stating that Councilman/Member Kelly may not be present, because he had expressed his vacation plans during that time. He offered a compromise to the 20% contingency in that staffs recommendation would be to consider $2.95 million, which was the architect's estimate plus the 10% contingency. If the bids came in above that amount, a special meeting can be called, but if not, it was because the bids came in below the City's estimate. Councilman/Member Spiegel agreed with Mayor/Chairman Finerty on why broadcast what the City was willing to pay. Mayor/Chairman Finerty noted another item on the Redevelopment Agency agenda also broadcasted what the Agency was willing to pay. She would rather meet at the end of the month and take up these two items. Mr. Wohlmuth agreed to bring back the two items for a special City Council meeting. Mr. McCarthy pointed out it may require two special meetings in order to accommodate both projects. Mayor/Chairman Finerty said she will raise the same issue with the item on the Redevelopment Agency agenda about broadcasting what the City was willing to spend. She understood there was a time constraint, but believed enough Councilmembers could gettogetherto meet. She said bids had been coming in lower because of the economy, and people should be happy to have a job, but for the City to broadcast what it was willing to spend was ridiculous. She said the Council needed to send a loud and clear message that the City was not looking at these estimates, but expecting to take advantage of the economy and put people to work. Further responding on whether to continue to a special or adjourned meeting. She said she was looking at July 29, however, it may require two meetings as Mr. McCarthy suggested. Councilman/Member Spiegel suggested having the City Manager set the date of the meeting based on Councilmembers schedules. The followina substitute motion was made: 27 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JULY 8, 2010 Mayor/Chairman Finerty moved to continue this matter to a Special or Adjourned Meeting with date to be determined by the City Manager. Motion was seconded by Spiegel and carried by a 4-0 vote, with Kelly ABSENT. XVII. PUBLIC HEARINGS None XVIII. REPORTS AND REMARKS A. CITY MANAGER July 7 Earthauake — Mr. Wohlmuth invited City Public Information Officer David Hermann to provide an overview of yesterday's 5.4-magnitude earthquake at 4:53 p.m. Mr. Hermann reported that the good news was that the City did not appear to have suffered any significant damage due to the quake, which occurred about 20 miles south of Palm Desert. Palm Desert Police did not receive any reports of damage or requests for medical assistance related to the earthquake. Immediately following the shaking, Police Dispatchers did receive numerous ringing alarm calls at businesses and residences; Lt. Shouse confirmed that these were all cleared within an hour or so. Palm Desert Police Officers also patrolled the City's business areas and bridges looking for damage but found nothing to report. He went on to say the only earthquake -related call that Palm Desert Firefighters responded to was an initial report of damage at Westfield Palm Desert; but a full inspection revealed that the only impacts from the quake were two small Tight fixtures that were jarred loose but did not fall to the ground. The City's Building & Safety Department received no reports of damage other than the aforementioned light fixtures. He said the City also checked in with the Palm Desert Chamber of Commerce, and as of this aftemoon, they had not received any reports of earthquake -related damage at any of their member businesses. Palm Desert's Housing Authority properties were also undamaged. In a possible earthquake -related incident outside City limits, the California Highway Patrol (CHP) reported that a motorist crashed late Wednesday on Highway 74 south of Palm Desert near Bighorn Drive. The vehicle reportedly struck rocks in the roadway and then crashed into the mountain. The Desert Sun reported that the motorist was taken to the hospital with a broken arm, but as of today the CHP had not confirmed whether the earthquake dislodged the rocks in the road; although, slides were reported in some areas after the quake. Finally, he said there was a timely story in today's Palm Desert Sun about the City's new Earthquake Brochure, which is loaded with helpful information about what to do before, during, and after an earthquake. The brochures are free to the public and available at City Hall, Visitor Center, and Palm Desert Chamber of 28 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JULY 8, 2010 Commerce, with copies placed in the Council Chamber foyer today, along with some he had with him for anyone who wanted a copy. B. CITY ATTORNEY None C. CITY CLERK 1. Request for Designation of Voting Delegate and Alternate(s) for the League of California Cities 2010 Annual Conference, September 15-17, San Diego. Ms. Klassen stated in order to have a voting delegate at the League of California Cities Annual Conference, the Council needed to take action to make the appointment. Mayor Pro Tem Ferguson moved to, by Minute Motion, designate Councilman Robert A. Spiegel as the City of Palm Desert's Voting Delegate to the 2010 League Annual Conference, September 15-17, in San Diego. Motion was seconded by Finerty and carried by a 3-0-1 vote, with Spiegel ABSTAINING and Kelly ABSENT. D. PUBLIC SAFETY o Fire Department In response to question about opening of the Fire Station garage doors after yesterday's earthquake, Chief Cooley said there was no damage to any of the stations nor any problems getting in or out of them. With regard to the earthquake warning systems at some stations that will open the doors, he was currently reviewing the actions of those alarms and how well they function. Upon inquiry about if they functioned, he was still getting information; but at this time, he was unconvinced that the systems were performing in the way that they've been described as functioning. He would bring more information back as soon as possible. o Police Department None E. MAYOR AND MEMBERS OF THE CITY COUNCIL o City Council Requests for Action: None 29 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JULY 8, 2010 o City Council Consideration of Travel Requests and Reports: Please see Item 2 below regarding the CVAG Energy & Environment Committee Meeting report for a related matter. o City Council Committee Reports: 1. Palm Desert Energy Independence Loans — Mayor Pro Tem Ferguson reported that regarding the City's Energy Loan Program, the Federal Housing and Financing Agency (FHFA) in Washington, D.C., announced that Fannie Mae and Freddie Mac will no longer recognize the seniority of liens of AB 811 loans in Califomia and AB 811-like loans in 22 other states in the U.S., effectively causing all of those programs to be suspended as of 5:00 p.m. on Tuesday, July 6, pending a state -by -state review by FHFA. The Department of Energy and the White House immediately pulled their $150 million program until they could obtain the underwriting criteria for each of those states and sort them out. Fortunately, on initial review and based on the statement issued by FHFA, Palm Desert's criteria seem to be in alignment with their requirements. Therefore, he felt that their pronouncement was somewhat over broad, but the City has still had to suspend its program for the time being. Later in the meeting, Mr. Wohlmuth added that effective Tuesday, July 6, at 5:00 p.m., the City will not be loaning money for energy improvements to residential property but will continue to loan money for commercial projects. He said in response to questions that have been raised, City officials met with their attorney today and will be monitoring FHFA's actions. The City believes it has good criteria. FHFA will be developing its own, and the City will try to mirror them as it moves forward; hopefully, FHFA will make its decision quickly. He pointed out that the City's other "Set To Save" Programs will continue on as they have been. 2. CVAG Enerav & Environment Committee — Mayor Pro Tem Ferguson went on to report that not so coincidentally, the Committee passed a resolution today to seek a Feed -in Tariff Program, requiring our service utility provider to buy electricity generated by rooftop -mounted solar users in the City of Palm Desert. Therefore, all the people who've taken advantage of the City's EIP Program currently and who may want to in the future will have their excess energy bought by Southern 30 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JULY 8, 2010 California Edison. He said they were looking at $0.24 - $0.30 per kilowatt hour. On a related matter, Mayor Pro Tem Ferguson commented that he would be traveling to Germany with the President of the Public Utilities Commission during the first week of August, along with Mayor Finerty, at no expense to the City of Palm Desert. He said there would be expense to him personally, to the Public Utilities Commission, and the Energy Coalition that is putting the trip together. He hoped the nine cities of the Coachella Valley, Blythe, and unincorporated Riverside County would become a demonstration area for the program, which ought to make conventional lending for these types of programs much more attractive and may replace or make the transition period during the aforementioned suspension much more easy to swallow. Mayor Finerty added that also at the E & E Meeting, Supervisor Benoit was very supportive of a Feed -in Tariff concept, realizing that it is on the horizon and was glad to see that CVAG is already working with Southern California Edison to this end. o City Council Comments: None XIX. ADJOURNMENT Upon a motion by Spiegel, second by Ferguson, and 4-0 vote of the City Council, with Kelly ABSENT, Mayor Finerty adjourned the meeting at 5:24 p.m. ATTEST: RAHELLE D. KLASSEN, •;ITY CLERK ) CITY OF PALM DESERT, CALIFORNIA C�Y' FIN , MAY 31