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HomeMy WebLinkAbout2010-06-24MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING THURSDAY, JUNE 24, 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 3:00 p.m. II. ROLL CALL Present: Councilmember Jean M. Benson Mayor Pro Tem Jim Ferguson Councilman Richard S. Kelly Councilman Robert A. Spiegel Mayor Cindy Finerty Also Present: John M. Wohlmuth, City Manager/RDA Executive Director David J. Erwin, City Attorney/RDA Executive Director 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 Lauri Aylaian, Director of Community Development Paul S. Gibson, Director of Finance/City Treasurer Janet M. Moore, Director of Housing Mark Greenwood, Director of Public Works Frankie Riddle, Director of Special Programs Bill Hunley, Battalion Chief, Palm Desert Fire/Riverside Co. Fire Dept./Cal Fire Andrew Shouse, Asst. Chief, Palm Desert Police/Riverside Co. Sheriffs Dept. Grace L. Mendoza, Deputy City Clerk III. ORAL COMMUNICATIONS - A (CLOSED SESSION ITEMS) None MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 24, 2010 IV. ADJOURN TO CLOSED SESSION Request 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: Lease Property - APN 622-260-082 Negotiating Parties: Agency: John M. Wohlmuth/Justin McCarthy/City of Palm Desert/ Palm Desert Redevelopment Agency Property Owner: Palm Desert Redevelopment Agency Other Parties: Riverside County Sheriffs Department Under Negotiation: x Price x Terms of Payment 4) Property: Lease Property - Parkview Professional Office Complex, 73710 Fred Waring Drive, Suite No. 106, Palm Desert Negotiating Parties: Agency: John M. Wohlmuth/Paul S. Gibson/City of Palm Desert Property Owner: City of Palm Desert Other Parties: Coachella Valley Economic Partnership Under Negotiation: x Price x Terms of Payment Conference with Legal Counsel regarding existing litigation pursuant to Government Code Section 54956.9(a): a) PDCC Development LLC, Petition for Bankruptcy, United States Bankruptcy Court, Central District of California 2 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 24, 2010 Conference with Legal Counsel regarding significant exposure to litigation pursuant to Government Code Section 54956.9(b): Number of potential cases: 2 Upon a motion by Ferguson, second by Benson, and unanimous vote of the City Council, Mayor Finerty adjourned the meeting to Closed Session at 3:01 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 - Councilman Richard S. Kelly VIII. ORAL COMMUNICATIONS - B MS. ELEONORA MALACHOWSKA, 77-682 Country Club Drive, Suite L, Palm Desert, said she purchased an existing small restaurant in the City that, unfortunately, had a terrible location. Because no one could find her, she had been placing a sign outside along Country Club Drive. Her ability to gain exposure for her business was very limited with only signage on the building that was located in the back of the center. In these difficult economic times, she asked if there was a way for the City to allow small business owners to place temporary directional or hours of operation signs. MR. STAN ANDERSON, General Manager of Casey's Restaurant located at Washington Street and Avenue of the States, Palm Desert, commented that they'd been working with Redevelopment Manager Martin Alvarez and Project Coordinator Heather Buck and had submitted a proposal to buy the property. He wanted to advise the City Council/Agency Board that he'd recently come on board to assist Casey, and this summer they'd like to both accelerate the process of demolishing the former hotel office on the site, then begin the process of enhancing the property. He noted that it was an old building, and they've been in discussions for some time. They felt it was important that they make an appearance before the City Council and let it be known how serious they are about the project. They want to make it a better piece of property and safer for their clientele, whose average age is over 50, and the parking lot and lighting there need some work for this purpose. He commented that this location was somewhat of a gateway to the City, very visible from Washington Street. It was important to them to begin upgrading the property and make it a more effective business location. He noted that there is currently an 3 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 24, 2010 access issue from Washington Street that was rather dangerous being so close to the intersection with Avenue of the States. The plans to remodel and enhance the parking lot area include relocating the access driveway further south on the site. He hoped the City Council/Agency Board would favorably consider their time sensitive issue after working on it the past couple of years; their customers were looking forward to the project as well. MR. TIM BARTLETT, Salt Cedar Street, Palm Desert, said he'd been watching how the Federal Govemment was spending its way into an "economic Armageddon," and while doing that, he thought he should see what his own City of Palm Desert was doing. He made a request of staff back in December to find out what the City's expenses, revenues, savings, and debt were. He didn't have a real figure for that, because apparently no one knew those numbers off the top of their head. However, from what he could understand, Palm Desert owes $800 million, a shocking amount; although, the City continued to spend and borrow money. He noted that amount was nearly $1 billion, incredible for a small town and represented over $40,000 for every household in Palm Desert. He started looking at where the money was going, some of the more recent developments, such as the Visitor Center with $7 million in land and gardens, $6.4 million in the Henderson Building, and $4.6 million in the Visitor Center itself —close to $20 million. He understood the City was excited about the Palm Springs Art Museum, which was a good choice, but to throw away a $20 million investment for $1.00 return seemed foolish, even though he agreed there was some economic benefit from having the Art Museum there. But that was not the way that most developers looked at projects; they looked at the bottom line, and he believed it was time the City started doing the same. Palm Desert residents would be shocked to discover that the City was nearly $1 billion in debt, and residents had no idea. He looked at other projects, like the pool that he wanted to speak about, but he missed the joint meeting that came up and went by very quickly. The City was going to spend $11.3 million for an Olympic swimming pool in a community where many residents already had a pool at their home. After doing his own research, Olympic swimming pools cost between $1 million and $3 million if they are enclosed, and this one's not enclosed. It will include a wading pond/pool, which was another million, and a 7,000 square -foot dressing room that made no sense, especially today given all the problems with public restrooms. Additionally, it included a multi -purpose room, and he thought there were a great plenty of those in the City already. Another project he didn't understand was the $5 million slated for El Paseo; he didn't recall it being approved, but now it was in the budget. The City was spending money like everything was going along fine, but it wasn't; the State and U.S. Governments were in big trouble, along with the worldwide situation. He thought the pool project was utter insanity. 4 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 24, 2010 IX. AWARDS, PRESENTATIONS, AND APPOINTMENTS A. PRESENTATION OF PROCLAMATION TO RECOGNIZE THE PALM DESERT HIGH SCHOOL BASEBALL TEAM FOR WINNING THE CIF SOUTHERN SECTION DIVISION IV CHAMPIONSHIP. Mr. Wohlmuth noted that the Palm Desert High School Athletic Director/Baseball Coach was out of town, and he asked the Mayor to continue the presentation to the meeting of July 8. B. PRESENTATION TO THE CITY OF PALM DESERT BY THE RIVERSIDE COUNTY DEPARTMENT OF PUBLIC HEALTH — RECOGNIZING THE CITY FOR PROTECTING THE HEALTH OF ITS CITIZENS. MS. CONSUELA EDMOND, Public Health Program Coordinator II, Riverside County Department of Public Health, presented Mayor Finerty with an engraved crystal statue to recognize the City for its very proactive approach to protecting its citizens and visitors against exposure to secondhand smoke. C. PRESENTATION OF UPDATE FROM SOUTHERN CALIFORNIA EDISON (SCE) PUBLIC AFFAIRS MANAGER KATHLEEN DEROSA REGARDING ENERGY INFRASTRUCTURE UPGRADES OCCURRING THROUGHOUT THE CITY. MS. DEROSA reported that Edison serves about 14 million customers over 50,000 square miles. Palm Desert is served by the Palm Springs Service Center, which serves approximately 146,000 customers with 22 substations in the Coachella Valley, 28,000 poles, and 25,000 transformers. The area is served by 10 planners, six (6) four -man crews, six (6) trouble men, and 39 meter readers. She went on to say that SCE is planning for the future to help meet the region's growing energy demands through advanced technology —environmental opportunities, SmartHomes, SmartGrids, and generation. In the City of Palm Desert over the last year, SCE has spent just over $1.3 million to upgrade the system in the City with new circuitry, new underground equipment, some maintenance items, and they are currently working with City staff on an area of the community that wishes to underground its lines. SCE is working to build a smarter, more efficient grid; working on the new Devers project to bring increased transmission power to the Coachella Valley from Blythe into Devers to increase the grid capacity as they look to put more renewable power online. SmartGrid will allow higher transmission power, integrate renewable generation, and SCE is working with a number of renewable generators, solar projects, that are coming to the Desert Center area. A smarter grid will help prevent the catastrophic failures that have happened in the past, with the area configured as it is as part of 5 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 24, 2010 seven states, so the SmartGrid technology will help with that. She acknowledged the City's pioneering "Set To Save" Program that has been highly successful, and SCE continues as a partner to get kilowatt savings for the City and its residents. She highlighted several programs of interest to the Council: — Energy Management Assistance Program for those who qualify by income, they could possibly be entitled to free replacement of appliances (e.g. air conditioners, refrigerators). Interested persons need to contact Edison, and if they qualify for CARE, they may be qualified for this program too. — SmartConnect Meters are due to the area October -November, and meters of all Coachella Valley residents will be changed out by 2012. — Personal Electric Vehicles, which Edison has been working on since 1988. Technology has come to a new height, and more and more individuals are interested in these plug-in electric vehicles. People are asked to notify Edison if they are considering such a purchase so that adequate power can be available, and there is also a special rate for those vehicles. MS. DEROSA went on to say that Edison continues to be an environmental steward, continuing to put more and more renewable power into its portfolio, with 441 megawatts of solar generation and 95% of the contracts with the wind energy produced along 1-10. Additionally, it has met its goal of 20% for 2010, which is a challenge given the rate of technological change and its demands for the grid. She thanked the City Council for the opportunity to make this presentation and offered to answer questions. Mayor Pro Tem Ferguson said the most frequently asked question he's had in the last 45 days is the reason for all the power outages in the City —seemingly more in that time frame than over the last 10 years. MS. DEROSA agreed that there had been a number of challenges, which concerned her too. She said a major substation went down, she'd spoken with Mr. Wohlmuth about it, and crews worked there around the clock a week ago to install two brand new circuits to totally upgrade that substation. With regard to why now, she said they've found that additional outages are experienced during the May -June time frame because after the equipment has laid in the cool ground prior with little usage or impact, during this time of year, the load increases, the ground heats up, and more and more challenges occur. She said a number of outages happened here that were purely failures, but they've gone in and made major changes to that circuitry, adding major circuits to one particular substation. In further response, she said Edison hoped the worst was over — making sure there were no more outages. Capacity had been increased in that substation significantly, but there were always unforeseen circumstances, just as with any piece of equipment. She said there were two circuits in one substation that caused 6 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 24, 2010 99% of the problems that were experienced, but they were now both replaced. Councilman Kelly said he had a constituent who installed solar panels on his roof and applied for the Edison rebate, but it had been over a year that he'd been waiting for the rebate. MS. DEROSA replied that there was the California Solar Initiative Program, and the constituent's vendor would probably have applied for him. She said the system had to be inspected, and she provided her telephone number for the constituent to call for help: (760) 202-4211. X. CONSENT CALENDAR A. MINUTES of the Regular City Council Meeting of June 10, 2010. Rec: Approve as presented. B. CLAIMS AND DEMANDS AGAINST THE CITY TREASURY - Warrant Nos. 244, 247, and 248. Rec: Approve as presented. C. STATE CONTROLLER'S AUDIT REPORT on the Special Gas Tax Street Improvement Fund for the Period of July 1, 2007, through June 30, 2008. Rec: Receive and file. D. CITY COMMITTEE AND COMMISSION MEETING MINUTES. 1. Marketing Committee Meeting of May 18, 2010. 2. Public Safety Commission Meeting of May 12, 2010. Rec: Receive and file. E. LETTER OF RESIGNATION from Lee Morcus — Marketing Committee Rec: Receive with very sincere regret. F. RESOLUTION NO. 2010 - 39 - A Resolution of the City Council of the City of Palm Desert, California, Setting Forth its Findings and Authorizing the Destruction of Files from Code Compliance that Have Been Digitally Imaged — Files Dated 2008. Rec: Waive further reading and adopt. 7 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 24, 2010 G. REQUEST FOR AUTHORIZATION to Review the City's Conflict of Interest Code. Rec: By Minute Motion, authorize staff to make a formal review of the City's Conflict of Interest Code and, if necessary at the appropriate time thereafter, prepare a resolution to be adopted by the City Council to effect the required amendments. H. REQUEST FOR AUTHORIZATION to Solicit Bids for Civic Center Roof Replacement (Contract No. C29890, Project No. 726-11). Rec: By Minute Motion, authorize staff to solicit bids for the Civic Center Roof Replacement Project — funds are available in Account No. 450-4161-415-4001 - Capital Reserve - Building Maintenance, which were set aside specifically for major maintenance projects for City -owned buildings. I. REQUEST FOR ACCEPTANCE OF WORK for Contract No. C29240 — Civic Center Parkway Turf Retrofit Project - Phase I (Project No. 962-10) (Leon's Landscaping & Tree Service, Thousand Palms, CA). Rec: By Minute Motion, accept the work as complete and authorize the City Clerk to file a Notice of Completion for the subject project. J. REQUEST FOR ACCEPTANCE OF WORK for Contract No. C29610 — 2010 Citywide Slurry Seal Project (Project No. 751-10) (Roy Allan Slurry Seal, Inc., Santa Fe Springs, CA). Rec: By Minute Motion, accept the work as complete and authorize the City Clerk to file a Notice of Completion for the subject project. K. REQUEST FOR AUTHORIZATION to Streamline the Use of Vendors for the Public Works Department by Granting Exception to Bidding Requirements and Approving the Original Equipment Manufacturer (OEM) Vendor List and the Public Works Various Vendors and Qualified Service Providers List for Fiscal Year 2010-2011. Rec: By Minute Motion: 1) Grant an exception to the bidding requirements as provided for by Section 3.32.090 of the Palm Desert Municipal Code for FY 2010-2011; 2) approve the OEM Vendor List; 3) approve the Public Works Various Vendors and Qualified Service Providers List. 8 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 24, 2010 L. REQUEST FOR APPROVAL of One-year Renewal (Amendment No. 2) of the Contract between the City of Palm Desert and Delta Dental of California through June 30, 2011 (Contract No. C27650). Rec: By Minute Motion, authorize the Mayor to execute Amendment No. 2 to the subject contract with Delta Dental of California through June 30, 2011. M. REQUEST FOR APPROVAL of a Memorandum of Understanding (MOU) Between the Volunteer Center of Riverside County and the City of Palm Desert to Participate in the 2-1-1 Riverside County Program (Contract No. C29900). Rec: By Minute Motion, authorize: 1) The Mayor to execute an MOU between the County of Riverside and the City of Palm Desert as it relates to participation in the 2-1-1 Riverside County Information and Referral Program; 2) expenditure of funds in the amount of $6,440.07 from Account No. 110-4800-454-3880 - Outside Agency Funding - for this purpose. N. REQUEST FOR APPROVAL of the 2010 Palm Desert ATHENA Scholarship Award Agreement with California State University, San Bernardino (Contract No. C24305). Rec: By Minute Motion: 1) Approve an agreement with California State University, San Bernardino, to establish the 2010 Palm Desert ATHENA Scholarship Fund; 2) authorize the City Manager to sign the subject Agreement. O. REQUEST FOR APPROVAL of an Addendum to Contract No. C27390 in an Amount Not to Exceed $5,000 for Miscellaneous Repairs to the City of Palm Desert's Public Art Collection and the El Paseo Invitational Exhibition. Rec: By Minute Motion, approve an Addendum in an amount not to exceed $5,000 to the subject contract with Same Day Express, Palm Desert, California, to perform miscellaneous repairs to the City of Palm Desert's Public Art Collection and the El Paseo Invitational Exhibition — funds are available in Account No. 436-4650-454-3372. 9 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 24, 2010 P. REQUEST FOR AWARD OF CONTRACT to Coachella Valley Printing Group for Printing of the Bimonthly BrightSide Newsletter for Fiscal Year 2010-2011, With a One-year Extension Provision (Contract No. C29910). Rec: By Minute Motion: 1) Reject low bidder The PM Group; 2) award the subject contract for printing of the BrightSide Newsletter in the amount of $35,425 for FY 2010-2011 to Coachella Valley Printing Group, Indio, California, with a one-year extension provision; 3) authorize the Mayor to execute the subject contract — funds are included in the proposed Financial Plan for 2010-2011 in the BrightSide Newsletter Account, No. 110-4417-414-3026. Q. REQUEST FOR APPROVAL of a $36,600 Expenditure for Postage for the Bimonthly BrightSide Newsletter, Fiscal Year 2010-2011. Rec: By Minute Motion, approve the expenditure of $36,600 for the United States Postal Service to cover six months of postage for the bimonthly BrightSide Newsletter — funds have been included in the proposed Financial Plan for 2010-2011 in the BrightSide Newsletter Account, No. 110-4417-414-3026. R. REQUEST FOR AUTHORIZATION to Reimburse Art In Public Places Fee in the Amount of $40,000 for "The Messengers" by John Richen for Sacred Heart Church, 43-775 Deep Canyon, Palm Desert (Sacred Heart Church, Applicant). Rec: By Minute Motion, authorize the reimbursement of Art In Public Places Fee in the amount of $40,000 for "The Messengers" by John Richen as the art component for Sacred Heart Church located at 43-775 Deep Canyon, Palm Desert — funds are available in Account No. 436-0000-312-2700. S. 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). 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 JUNE 24, 2010 T CONSIDERATION of Request for Funding to Sponsor the Palm Desert Golf Cart Parade on Sunday, October 31, 2010. Rec: By Minute Motion: 1) Approve a $25,000 contribution and in -kind Public Works Services for the Palm Desert Golf Cart Parade; 2) permit the sale, possession, and consumption of alcoholic beverages on City -owned property in connection with the event; 3) authorize the closing of El Paseo for the event — funds have been included in the proposed Financial Plan for 2010-2011, Community Events, Account No. 110-4416-414-3061. U. REQUEST FOR RATIFICATION of Legislative Opinion Letter for AB 1873 (Huffman) — Property Assessed Clean Energy Bonds. Rec: By Minute Motion: 1) Ratify a legislative support letter dated June 1, 2010, for AB 1873 signed by the City Manager; 2) authorize the Mayor to sign a legislative support letter for AB 1873. V. REQUEST FOR AUTHORIZATION to Apply For and Accept the United States Department of Justice BJA Justice Assistance Grant (JAG) Program FY 2010 Local Solicitation. Rec: By Minute Motion, authorize staff to apply for and accept the United States Department of Justice BJA Justice Assistance Grant (JAG) Program FY 2010 Local Solicitation. W. INFORMATIONAL REPORT on Renaming of the New Banquet Spaces, Terrace, Dining Room, Salons, Ballroom, and Intrawest Room at the Desert Willow Golf Resort. Rec: Receive and file. Councilman Spiegel requested Item S be removed for separate consideration under Section XI, Consent Items Held Over. Upon a motion by Ferguson, second by Benson, and 5-0 vote of the City Council, the remainder of the Consent Calendar was approved as presented. 11 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 24, 2010 Xl. CONSENT ITEMS HELD OVER S. 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). Councilman Spiegel stated Longs Drug Store was built at the corner of Highway 111 and Deep Canyon Road, and the Applicant was requesting release of the performance security in the amount of $381,000 for grading and off -site improvements. However, the applicant decided not to move in and the building now sits empty when originally a good hotel was torn down. He asked if there was any way to obligate the Applicant to have the building occupied before releasing the bond. Dave Erwin responded he didn't think so, but agreed to review the agreement that the bonds were posted for and asked for a continuance of this item to the next meeting. Councilman Spiegel moved to, by Minute Motion, continue the matter to the meeting of July 8, 2010. Motion was seconded by Ferguson and carried by a 5-0 vote. XII. RESOLUTIONS A. RESOLUTION NO. 2010 - 40 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, AUTHORIZING THE LEVY OF A SPECIAL TAX IN COMMUNITY FACILITIES DISTRICT NO. 2005-1 (UNIVERSITY PARK) FOR FISCAL YEAR 2010-2011. Councilmember Benson moved to waive further reading and adopt Resolution No. 2010-40. Motion was seconded by Kelly and carried by a 5-0 vote. XIII. ORDINANCES For Introduction: None For Adoption: A. ORDINANCE NO. 1214 - AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, AMENDING CHAPTER 11.01 - GENERAL PROVISIONS, PARKS / TRAILS MANAGEMENT - OF THE PALM DESERT MUNICIPAL CODE. Mayor Pro Tem Ferguson moved to waive further reading and adopt Ordinance No. 1214. Motion was seconded by Spiegel and carried by a 5-0 vote. 12 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 24, 2010 XIV. NEW BUSINESS A. REQUEST FOR APPROVAL OF ACTIONS RELATIVE TO THE 2010 GENERAL MUNICIPAL ELECTION TO BE HELD IN THE CITY OF PALM DESERT ON TUESDAY, NOVEMBER 2. Councilman Spiegel moved to waive further reading and adopt: 1) Resolution No. 2010 - 41 - calling for the holding of a General Municipal Election to be held on Tuesday, November 2, 2010, for the election of certain officers; 2) Resolution No. 2010 - 42 - requesting the Board of Supervisors of the County of Riverside to consolidate a General Municipal Election to be held on Tuesday, November 2, 2010, with the Statewide General Election to be held on the date; 3) Resolution No. 2010 - 43 - adopting regulations for candidates for elective office pertaining to candidates' statements submitted to the voters at said Election. Motion was seconded by Kelly and carried by a 5-0 vote. B. REQUEST FOR AUTHORIZATION TO ISSUE A REQUEST FOR PROPOSALS (RFP) FOR THE COUNCIL CHAMBER AUDIOVISUAL UPGRADES AND ADMINISTRATIVE CONFERENCE ROOM UPGRADES AS OUTLINED IN THE JUNE 24, 2010, STUDY SESSION (CONTRACT NO. C29920). Responding to question, Information Systems Manager Clayton Von Helf said the consensus was to fix the audio and visual components and abandon the overhead camera. He said staff will solicit bids and return to Council for the final approval; funds are available in Fund 400 to cover the costs, which will include the Administrative Conference Room upgrades. Councilman Spiegel moved to, by Minute Motion, authorize staff to issue an RFP to upgrade the audio/visual components in the Council Chamber and the Administrative Conference Room, as outlined in the Study Session with the project to incorporate everything provided in the presentation hand-out Cost Summary except the overhead document camera —funds are available in Fund 400 to cover the cost of the improvements, no additional appropriation is required. Motion was seconded by Ferguson. Councilman Kelly stated he hoped there was a consensus on having a microphone with a cue system for City Council meetings, stating he wasn't that concerned about having it in the ACR because those meetings were informal. Mr. Von Helf responded a cue system can be designed with a control that is easy to operate. Further responding, he said a timer can also be included in the design. Mayor Pro Tem Ferguson clarified the back cover of the report distributed Tuesday to the Council as an addendum included a cost summary, and the 13 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 24, 2010 motion is for approval of everything listed on the cost summary with the exception of the overhead document camera. Ms. Klassen concurred. Mayor Finerty called for the vote and it carried by a 5-0 vote. C. REQUEST FOR AWARD OF CONTRACT FOR TRAFFIC SIGNAL INSTALLATION AT FRANK SINATRA DRIVE AND GERALD FORD DRIVE TO SIERRA PACIFIC ELECTRICAL CONTRACTING IN THE AMOUNT OF $220,700, AND AUTHORIZE THE ACCEPTANCE OF AGREEMENT AND GRANT OF EASEMENT FOR SAME (CONTRACT NO. C29690, PROJECT NO. 557-05). Councilman Spiegel moved to, by Minute Motion: 1) Award the subject contract for Traffic Signal Installation at Frank Sinatra Drive and Gerald Ford Drive in the amount of $220,700 to Sierra Pacific Electrical Contracting, Riverside, California; 2) authorize the Director of Finance to set aside a 10% contingency in the amount of $22,070; 3) authorize the Mayor to execute the contract; 4) authorize the Mayor to execute Acceptance of the Agreement and Grant of Easement for the Traffic Signal Installation at Frank Sinatra Drive and Gerald Ford Drive — funds are available for this project in Account No. 234-4264-422-4001 - Traffic Signals — no General Fund money is being expended for this project. Motion was seconded by Kelly and carried by a 5-0 vote. Mayor Pro Tem Ferguson asked for the status on the traffic signal at the comer of Portola Avenue and Frank Sinatra. Mr. Greenwood responded the project was progressing well with staff recently working out the last utility conflicts with Southem Califomia Edison and hoped to start construction this fall. D. REQUEST FOR AWARD OF CONTRACT FOR THE 2010 CITYWIDE STRIPING PROGRAM TO J P STRIPING, INC., IN THE AMOUNT OF $84,220 (CONTRACT NO. C29700, PROJECT NO. 564-10). Councilman Kelly moved to, by Minute Motion: 1) Award subject contract for the 2010 Citywide Striping Program in the amount of $84,220 to J P Striping, Inc., Beaumont, California, and the Mayor to execute same; 2) authorize the Director of Finance to set aside a 10% contingency in the amount of $8,422 for this project — funds are available in General Fund Account No. 110-4315-433-3320, Striping and Legends. Motion was seconded by Ferguson and carried by a 5-0 vote. 14 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 24, 2010 E. REQUEST FOR AWARD OF CONTRACT FOR CONSTRUCTION OF THE 2010 CITYWIDE RESURFACING PROJECT TO MATICH CORPORATION IN THE AMOUNT OF $1,990,803 (CONTRACT NO. C29720, PROJECT NO. 752-10). Councilman Kelly moved to, by Minute Motion: 1) Select the warm -mix asphalt alternative; 2) award the subject contract for Construction of the 2010 Citywide Resurfacing Project in the amount of $1,990,803 to Matich Corporation, San Bernardino, California; 3) authorize the Mayor to execute said contract — funding is available in General Fund Street Maintenance Account, No. 110-4311-433-3320, New Construction Tax Parking Lot Maintenance Account, No. 231-4313-433-3320, and the Gas Tax Street Maintenance Account, No. 211-4311-433-3320. Motion was seconded by Ferguson. Councilman Spiegel stated the staff report indicated rubberized asphalt will not be used for this project, which he thought was a quieter asphalt than the other alternatives for the residents. Mr. Greenwood stated he agreed, but studies are saying that rubberized asphalt starts out a bit quieter, but over the course of four or five years it loses that advantage. He said there was a price penalty to pay, and given the condition of the streets, staff wanted to stretch its budget this year. Further responding, he said the City had been doing rubberized asphalt exclusively for eight to ten years, but staff has used a different kind of environmental pavement like warm -mix asphalt, which produces fewer emissions into the air in its manufacturing and laying. He said it would be swapping one environmental benefit for another. Mayor Finerty called for the vote and the motion carried on a 4-1 vote, with Spiegel voting NO. F. REQUEST FOR APPROVAL OF AN AB 2766 MEMORANDUM OF UNDERSTANDING (MOU) BETWEEN THE CITY OF PALM DESERT AND THE COACHELLA VALLEY ASSOCIATION OF GOVERNMENTS (CVAG), INCREASING THE CITY'S CONTRIBUTION FROM 45% TO 100% FOR UP TO ONE YEAR TO THE REGIONAL PM10 STREET SWEEPING PROGRAM (CONTRACT NO. C29930). Mayor Pro Tem Ferguson moved to, by Minute Motion: 1) Approve of the AB 2766 MOU between the City and CVAG, increasing the City's contribution from 45°A) to 100% for up to one year to the Regional PM10 Street Sweeping Program; 2) authorize the Mayor to execute the MOU on behalf of the City. Motion was seconded by Benson and carried by a 5-0 vote. 15 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 24, 2010 G. REQUEST FOR APPROVAL OF AMENDMENT TO CONTRACT WITH FURINO GREENE CREATIVE INC. IN THE AMOUNT OF $200,000 FOR ADVERTISING SERVICES AND EXPENDITURES FOR THE EL PASEO BUSINESS IMPROVEMENT DISTRICT (CONTRACT NO. C29211). Responding to question, Economic Development Manager Ruth Ann Moore said this contract did not impact the General Fund. Mayor Pro Tem Ferguson stated these funds were monies the City passed through as a special assessment fee. Councilman Spiegel moved to, by Minute Motion: 1) Approve Amendment in the amount of $200,000 ($42,000 in Agency Services, $158,000 in Advertising and Promotional Expenditures) to the subject contract with Furino Greene Creative Inc., Palm Desert, California; 2) authorize the Mayor to execute said Contract Amendment — funds have been included in the proposed Financial Plan for 2010-2011 - Other Advertising, Account No. 271-4491-464-3215. Motion was seconded by Ferguson and carried by a 5-0 vote. H. CONSIDERATION OF HOSTING THE RIVERSIDE SHERIFF'S ASSOCIATION 15TH ANNUAL K-9 TRIALS AT PALM DESERT'S FREEDOM PARK ON NOVEMBER 12-13, 2010. Mr. Aryan noted the staff report and offered to answer any questions. Councilman Kelly noted the K-9 Trials were being held November 12 and 13, and the Veteran's Day Celebration will be held on the 11th at Freedom Park. He questioned whether this was an opportunity to work jointly where the chairs used for one event can be used for the other and wondered if one event had to be rescheduled. Mr. Aryan responded the Veteran's Day Celebration will be held on the 11 with the K-9 Trials on the 12 and 13, stating they are two separate events with separate set-ups. Further responding, he said staff met with the marketing staff to make sure there were no conflicts with either event. Mayor Pro Tem Ferguson agreed the chairs used on Thursday can be used the following day for spectators. Mayor Finerty pointed out that on Friday the park will be closed to the general public and opened on Saturday. Councilman Kelly asked if any thought was given to the Veteran's Day Celebration, which was his main concern. 16 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 24, 2010 Mr. Aryan answered yes and agreed to look into the possibility of rolling the use of the chairs into the other event by checking with The Riverside Sheriffs Association (RSA). Councilman Kelly stated last year's event was wonderful and Ms. Kneiding did a great job. He asked if the same set-up as last year would be used. Marketing Manager Kristy Kneiding said the format will remain the same with the tent and chairs. She said staff met to plan logistically for the K-9 Trials, and determined there were no conflicts or materials needing to be saved over. Typically for the Veteran's Day event, the tent and chairs are set up first thing in the morning and taken down that afternoon. As mentioned by the Mayor, the park is closed to the general public on Friday and the chairs could become an issue of storage if rolled over for the next event. She said the Veteran's Day event will be as good as it was last year with no changes needing to be made. Councilman Spiegel moved to, by Minute Motion, approve: 1) Hosting of the Riverside Sheriffs Association 15`h Annual K-9 Trials at Palm Desert's Freedom Park on November 12-13, 2010; 2) issuance of a Temporary Use Permit outlining special requirements as indicated by the event organizers/staff and outlined within the staff report; 3) request by the Riverside Sheriffs Association to waive the Business License Fee Requirement for Exhibit Vendors who will be selling event-themed items on November 12- 13, 2010. Motion was seconded by Ferguson and carried by a 5-0 vote. I. CONSIDERATION OF A REQUEST FOR FUNDING TO SPONSOR FASHION WEEK EL PASEO 2011 (JOINT CONSIDERATION WITH THE PALM DESERT REDEVELOPMENT AGENCY). Councilmember/Member Benson moved to, by Minute Motion: 1) Approve a $50,000 sponsorship for the 2011 Fashion Week Event; 2) authorize up to $10,000 in -kind City services and fees; 3) authorize use of the Agency -owned lot at the northeast comer of Shadow Mountain Drive and Larkspur; 4) permit the consumption of alcoholic beverages on Agency -owned property; 5) authorize the Mayor/Chairman to execute the sponsorship contract (Contract No. C29940)—funds have been included in the proposed Financial Plan for 2010-2011, Community Sponsorships, Account No. 110-4416-414-3062. Motion was seconded by Ferguson and carried by a 5-0 vote. 17 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 24, 2010 J. REQUEST FOR AUTHORIZATION TO SUSPEND PALM DESERT MUNICIPAL CODE CHAPTER 25.68 - SIGNS, SECTION 25.68.050 (M) - PROHIBITED SIGNS - FOR A PERIOD OF 60 DAYS TO ALLOW THE DISPLAY OF TEMPORARY OFF -SITE SIGNAGE FOR RETAIL BUSINESSES. Councilman Spiegel moved to, by Minute Motion, authorize a 60-day suspension of Chapter 25.68 - Signs, Section 25.68.050 (M) - Existing Off -site Signage Prohibition - to allow retail businesses temporary off -site signage not located within the public right-of- way, as requested by several small business owners. Motion was seconded by Kelly. Councilman Spiegel stated that anything the Council can do to help small businesses at this time was appropriate. Mayor Finerty asked if the Council had already made an exception by allowing the A -frame signs to help businesses. Assistant Planner Kevin Swartz said A -frame signs were not allowed, but the pedestal signs were allowed outside in front of the store front. Mayor Finerty stated there was an A -frame sign at the new restaurant that just opened The Third Comer and noticed pedestal signs on El Paseo. She questioned what other kinds of signs were being considered. Mr. Swartz responded there were no sign standards, but the typical ones used resembled real estate signs. The real purpose is to address businesses that were not located on a primary street such as Karen's Cafe, which was tucked behind a building with no visibility off the main street. Therefore, Karen's Cafe had a sign on the main street on Country Club Drive. Mayor Finerty questioned if staff was concemed about too many signs or was the Sign Ordinance redone to try to assist businesses to make it easier, yet a few months later, the Council was faced with the same matter. Mr. Swartz said staff thought it would be appropriate for a 60-day trial period to observe. Councilman Kelly stated he visited Karen's Cafe and a group there having breakfast came to Palm Desert specifically to ride their bicycle. Evidently, there is a program that attracts people for the purpose of riding the bike route. The group noticed the signage on their bike route, and the following day they went to Karen's Cafe for breakfast. He said during the summer months signage will help those businesses located off a main thoroughbred, especially during these stressful times. 18 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 24, 2010 Councilmember Benson stated that often when one enters a shopping center such as this one, there is an overall sign that tells what businesses were to the rear and wondered if something like that can be done instead of addressing this every summerforthose businesses that depend on open -like restaurants. She suggested that during these 60 days staff can see if there was some way to install a permanent directional sign. Mr. Swartz agreed to look into that possibility. Mayor Pro Tem Ferguson stated he would like to have standards and guidelines with these signs, because ruining the aesthetics of the City in an attempt to help businesses was not logical. He said if a business can't be found when it's busy, why would one find it when it's slow. He said one can walk from one end of El Paseo from Highway 74 to the other end and it's like a slalom race avoiding the single pole stand-alone signs that the City's retail establishments deliberately put right in the middle of the sidewalks, so you have to walk around them and there's nothing you can do to avoid them so you read them. He didn't think the signs made any more pedestrians go into the shops, but they make a mess to try and walk on El Paseo. He agreed with the Mayor that the Council had relaxed its Signage Ordinance to try and help businesses, and he was in favor of helping them, but the sign for Karen's Cafe was crooked and sticking out on the public right-of-way, which looked like junk. Additionally, the City just went through a campaign season where every politician and their brother stuck their signs wherever they felt like it. He said the City didn't allow sign hangers yet Dominoes in the past week hung them on every commercial establishment in the City, and it also didn't allow "dazzlers," who were people that swung signs on street corners. He said businesses that installed neon flashing signs at every commercial center would have more signage, but where would the line be drawn in keeping the community clean and nice -looking along the lines that Councilmember Benson was suggesting. He wasn't expecting an answer from staff, but just stating the sensitivity to this issue. He said if 60 days will be spent studying this matter, he was looking for a thoughtful balance on those two issues. He will go along with the 60-day trial period, but felt that sticking a sign wherever one pleased was not acceptable on a permanent basis. Mayor Finerty called for the vote and it carried on a 5-0 vote. XV. CONTINUED BUSINESS None 19 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 24, 2010 XVI. OLD BUSINESS A. REQUEST FOR AUTHORIZATION FOR STAFF TO PROCEED WITH TRAFFIC SIGNAL SYNCHRONIZATION PROJECT WITH THE CITY OF RANCHO MIRAGE (PROJECT NO. 555-10) Councilman Spiegel stated it seemed to him the City kept spending money on synchronizing signals and here was another request in the amount of $78,000. He didn't think the City's signals were synchronized and questioned if this request was a good thing. Mr. Greenwood responded it was partly a good thing because other people's money was brought to the table. The City received a grant from Air Quality Management District (AQMD) - Mobile Source Air Pollution Reduction (MSRC) program that will be paying 50% ($39,450) of the $78,900 total, and the City of Rancho Mirage will be paying 20% of the project. He said this would be the first time Monterey Avenue would conduct coordination for synchronization with no construction required. Work will entail engineering, timing, and adjustment of controller to synchronize the signals. He agreed there have been a lot of synchronization projects, but never on Monterey Avenue, stating Highway 111 was an example of the biggest success on coordination as it was now much better to drive on than previous years. Councilman Spiegel agreed, but he didn't see a lot of vehicles backed up on Monterey Avenue due to traffic signals. Mr. Greenwood responded that at certain times of the day it can get very congested at Country Club and in some of the more major arterials. Councilman Kelly disagreed that a project should be approved just because funds would be matched with a grant. He said the State of California took $25 million from the City and part of that system will return $78,000, stating something is wrong when the State or Federal Govemment takes the City's money and filters it back with grants. He knew synchronization was a positive thing, but he personally traveled on Monterey Avenue many times without encountering big problems. He said many times the City is willing to take grants, but then complains because the State takes its money, so somewhere down the line the City should respond by not accepting grants and telling them to keep their hands off the City's money. Responding to question, Mr. Greenwood noted the second page of the staff report outlined the funding sources, which is Palm Desert contributing 30% of the project in the amount of $23,670 from the General Fund. 20 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 24, 2010 Mayor Pro Tem Ferguson said the budget for Fiscal Year 2010-2011 under CP Synchronization Fund 440 showed $861,000 was allocated for synchronization. He asked if that amount included funds for this project. Mr. Gibson responded the funds for this project were under the 2009-2010 Budget. Mr. Greenwood concurred. Mayor Pro Tem Ferguson stated he understood the cost to Palm Desert would be $23,670 with the City of Rancho Mirage contributing $15,780, and the balance of the grant from AQMD. Mr. Greenwood agreed. Mayor Pro Tem Ferguson moved to, by Minute Motion: 1) Authorize the City Manager to execute Contract No. ML09021 with the South Coast Air Quality Management District (AQMD) (City Contract No. C29950A); 2) authorize staff to issue a Request for Proposals (RFP) from traffic engineering firms to provide traffic signal synchronization timing services in an amount not to exceed $78,900 (Contract No. C29950B); 3) authorize staff to prepare and execute an agreement with the City of Rancho Mirage for their 20% portion of the project for an amount not to exceed $15,700 (Contract No. C29950C); 4) appropriate $78,900 from Fund 234, Traffic Signal Fund unobligated fund balance. Motion was seconded by Benson and carried by a 3-2 vote, with Kelly and Spiegel voting NO. B. REQUEST FOR APPROVAL AND EXECUTION OF AGREEMENT WITH THE DESERT SUN FOR SPONSORSHIP OF A PROMOTIONAL MAGAZINE (CONTRACT NO. C29960) (JOINT CONSIDERATION WITH THE PALM DESERT REDEVELOPMENT AGENCY). Marketing Manager Kristy Kneiding stated staff was previously directed to negotiate a contract with The Desert Sun to help support the relaunch of a magazine formerly known as 92260, which targets both residents and visitors. She said staff and representatives from The Desert Sun were present to answer any questions. Councilman/Member Spiegel pointed out he originally voted against this, not because he disliked The Desert Sun, but because he thought this amount of money could be spent in San Diego, Los Angeles, and San Francisco to attract people from out of town. He understood the magazine will be distributed into the local hotels, specifically Embassy Suites and the Marriott, but none outside the City. Additionally, he received a copy of a letter from Executive Vice President of Palm Springs Life Frank Jones who stated they understood the City desiring to take advantage of having a Palm Desert Magazine and attended the Marketing Committee meeting where Councilman Ferguson and The Desert Sun presented their concept and expressed determination to execute the plan. Mr. Jones states that the Desert Publishing Incorporated could produce the magazine for half the cost 21 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 24, 2010 or Tess and could deliver the quantity, content, graphics, and also improve greatly on the proposed distribution and reach applications. His improvements would make the City's magazine a much more valuable publication and save precious dollars that could be better used in relationship to the heart wrenching personal cuts recently made by the City. Councilman/Member Kelly stated he felt strongly a Request for Proposal (RFP) should have been conducted. Although he thought it was good to have a Palm Desert magazine in the hotel rooms, he didn't know how it would benefit when the residents already received the BrightSide Newsletter. However, he agreed people should have something from Palm Desert that could carry home with them. He reiterated the City should have done a RFP to see what else was out there. Mayor Pro TemNice Chairman Ferguson said it took a lot of gulls for Mr. Frank Jones to make those statements having received millions from the City of Palm Desert over the years, and having just approved $50,000 this evening for Fashion Week, and neither one of his esteemed colleagues insisted the item go out for an RFP, and The Desert Sun didn't say they could do Fashion Week for half the cost. The last time the City attempted to launch a magazine, Palm Springs Life (PSL) hastily put together a Palm Desert Magazine and dumped it on all the Council's desks and never saw another publication. He said Palm Springs Life (PSL) only seemed to scream when someone else wanted to do something beneficial for Palm Desert, but they never deliver. He said PSL had every opportunity in the last five years since it started 92260 to provide a proposal, which they never did. He said this was anti -competitive conduct and couldn't believe the two people he considered business knowledgeable in this County fell for such ridiculous conduct, which he found reprehensible. He said everyone knew Palm Desert residents were not staying in the City's hotels, but if you take into account the part-time residents that live in Palm Desert during the winter months who return to Chicago, Seattle, Portland and other parts of the Country, they want to show off Palm Desert to their relatives, sons, nephews, grandchildren and take copies of this magazine with them. To say this magazine will just sit on shelves like the BrightSide was disingenuous, which frankly the BrightSide ended up in the trash more often than not. He said given the millions spent on marketing, doing a trial for one year with The Desert Sun to promote Palm Desert was worthwhile from a marketing standpoint. Additionally, the Council claims to have so much faith, rightfully so, on the City's Marketing Committee, which voted unanimously in favor o the Palm Desert Magazine, and he wasn't going to second guess their opinion. He went on to say the Council voted four to one during the budget to do this, and he respected Councilman Spiegel's opinion and hoped his would be respected as well. He said there were two sides to every story, and The Desert Sun's side needed to be heard. 22 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 24, 2010 Councilmember/Member Benson agreed with Mayor Pro Tem Ferguson and the fact that it would only be a one-year publication, and if it didn't work out, it wouldn't have to be renewed. She said The Desert Sun had a track record in these publications, which she thought was worth a try. She believed the public will take the magazine home if it's published by a reliable source. Mayor/Chairman Finerty concurred, stating she was amazed when for three years some Councilmembers voted to spend more than $600,000 for the Art of Food & Wine event to promote the City and here a mere $110,000 was considered to promote the City via a magazine where something was actually being produced that was not alcohol induced. She was in support of this request with a one-year trial, because it was a reasonable way in this economy to market the City. Mayor Pro TemNice Chairman Ferguson moved to, by Minute Motion: 1) Approve agreement with The Desert Sun for sponsorship of a promotional magazine in the amount of $110,000 for Fiscal Year 2010-2011; 2) authorize the Mayor to sign said agreement — funds are included in the proposed Financial Plan for 2010-2011, split between the respective Redevelopment Agency and City Advertising and Professional Services Accounts. Motion was seconded by Benson and carried by a 3-2 vote, with Kelly and Spiegel voting NO. C. REQUEST FOR RATIFICATION OF THE CITY MANAGER'S AUTHORIZATION OF AMENDMENT NO. 1 TO CONTRACT NO. C29400 WITH GOULD EVANS ASSOCIATES IN THE AMOUNT OF $23,600 FOR ADDITIONAL DESIGN SERVICES; AUTHORIZATION FOR STAFF TO SOLICIT BIDS FOR CONSTRUCTION AND RELEASE OF THE REQUEST FOR PROPOSALS (RFP) FOR OPERATIONS OF THE AQUATIC CENTER (PROJECT NO. 722-10) (JOINT CONSIDERATION WITH THE PALM DESERT REDEVELOPMENT AGENCY). Councilmember/Member Benson stated when the Park and Recreation Commission was attempting to put more playground equipment in the pool and it was turned down, the current amendments made will be a good remedy to that situation. The improved space will be available should it be necessary in the future. Councilman/Member Spiegel said the changes will allow more people to come into the area, picnic on the grass, and pay the fee to get in and watch the race. He said the grass area will provide the ability to make more money. Mayor Pro Tem/Vice Chairman Ferguson said the suggestion was a breath of fresh air coming from the Parks and Recreation Commission, because it was good planning to look toward the future. He said one couldn't reserve enough space for future growth. Councilman/Member Spiegel moved to, by Minute Motion: 1) Ratify City Manager's authorization of Amendment No. 1 to the subject contract with Gould Evans Associates, 23 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 24, 2010 Phoenix, Arizona, in the amount of $23,600 for additional design services for the Aquatic Center Project; 2) authorize the Mayor to execute Amendment No. 1; 3) authorize staff to solicit bids for construction (Contract No. C29400A); 4) authorize staff to release the RFP for operations of said project (Contract No. C29400B) — funds for the original design service contract are available in Account No. 233-4602-454-4001 (±40%) - Park Fund, and Account No. 851-4549-454-4001 (±60%) - Project Area No. 2 Aquatic Facility Capital Budget; funds for Contract Amendment No. 1 are also available in Account No. 851-4549-454-4001 held as contingency, no General Fund money is being used for this expenditure. Motion was seconded by Ferguson and carried by a 5-0 vote. D. REQUEST FOR APPROVAL OF THE FINAL ARTWORK DESIGN BY ARTIST PAUL HOBSON FOR THE PALM DESERT AQUATICS CENTER. Responding to question, Public Art Coordinator Deborah Schwartz said the color palette was purple and green as indicated in the staff report. Councilman Kelly moved to, by Minute Motion, approve the final artwork design by artist Paul Hobson for the Palm Desert Aquatics Center. Motion was seconded by Ferguson and carried by a 5-0 vote. XVII. PUBLIC HEARINGS A. CONSIDERATION OF REQUESTS BY BURRTEC WASTE AND RECYCLING FOR APPROVAL OF THE ANNUAL PRODUCER PRICE INDEX (PPI) AND COUNTY OF RIVERSIDE GATE/DISPOSAL FEE INCREASES. Ms. Riddle stated this request was for consideration of a rate increase for Burrtec. As part of the negotiations, Burrtec had agreed to maintain the existing rates in effect at that time and wouldn't be eligible for rate increases until July 1, 2010. As a result, the last rate increased was in 2006. The proposed rate increases include 100% of PPI at 4.3% as well as a $1.59 disposal fee increases, which the County approved on June 8. The new Gate Fee at the transfer station would then increase to $39.04 per ton. The recommendation before Council is to consider approval of the rate increases. In addition, staff proposes that Council consider utilizing a portion of the City's recycle fund, which was currently $8.25 to absorb the rate increase to residents. The two options provided in the staff report are Option 1, absorb the gate disposal fee increase to residents or Option 2, absorb the gate fee and PPI increase. Staff recommended Option 1, which was the more conservative option, it will reduce the Recycle Fund to $7.81 a ton. Option 2 will provide a greater benefit to Palm Desert residents, but the City would absorb both rate increases, the PPI and disposal fee and also reduce the Recycle Fund to $6.02 per ton. Mayor Pro Tem Ferguson asked what was the current balance of the Recycle Fund. 24 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 24, 2010 Mr. Gibson responded it was approximately $4 million. Further responding, he said those funds are set aside for recycling purposes and couldn't be used for the General Fund; therefore, that fund had a healthy surplus. Responding to question, Ms. Riddle said the yearly usage by the Recycle Fund was approximately $400,000 to $500,000 depending on what the City had going on during the year. Mayor Finerty commented it also depended upon how many Recycle Binney commercials the City ran. Mayor Pro Tem Ferguson stated under the more liberal assessments, the City would still be saving $6.00 per ton. Ms. Riddle agreed. Further responding, she said the City saved about $300,000 a year. Mayor Pro Tem Ferguson said that equated to about $2.4 million in a span of eight years, which indicated the fund wouldn't go broke. Councilman Spiegel inquired about the $37.45 fee. Ms. Riddle stated that when material is taken to the transfer station, the disposal fee per ton is $37.45. Further responding, she said the City received an 8% franchise fee of whatever the total ton is and that went into the General Fund. Mayor Finerty declared the public hearing open and invited testimony from the Applicant. MR. FRANK ORLETT, District Manager for Burrtec Waste and Recycling Services offered to answer any questions. Mayor Finerty invited testimony in FAVOR or OPPOSITION to this matter. With no testimony offered, she declared the public hearing closed. Councilmember Benson was in favor of giving the residents any break and in favor of Option 2. Mayor Pro Tem Ferguson moved to: 1) By Minute Motion, approve the proposed 4.3% PPI rate increase and Gate/Disposal Fee increase from $37.45 to $39.04; 2) waive further reading and adopt Resolution No. 2010 - 44, approving the new adjusted rate Schedule of Fees (Exhibit 3 for Residential, Commercial, and Roll -off) for the Collection, Recycling, and Disposal of Municipal Solid Waste and Residential/Commercial Recycling Contained in Contract No. C27410 - Solid Waste Management Services; 3) approve the 4.3% PPI rate increase to residents; 4) approve utilizing a portion of the $8.25 recycle (tipping) fee to absorb 25 MINUTES REGULAR the PPI and ton. Motion PALM DESERT CITY COUNCIL MEETING JUNE 24, 2010 Gate/Disposal Fee increases for 2010 and reduce the recycle fee to $6.02 per was seconded by Kelly. Mayor Pro Tem Ferguson stated there would be no impact to the residents. Councilman Kelly stated the residents had been paying money into the fund and should receive the benefit. All Councilmembers concurred. Mayor Finerty called for the vote and it carried by a 5-0 vote. B. CONSIDERATION OF THE ADOPTION OF THE CITY MANAGER'S AND EXECUTIVE DIRECTOR'S PROPOSED FINANCIAL PLAN FOR FISCAL YEAR 2010-2011 (JOINT CONSIDERATION WITH THE PALM DESERT REDEVELOPMENT AGENCY AND THE PALM DESERT HOUSING AUTHORITY). Mr. Wohlmuth stated the 2010-2011 Fiscal Year Budget was balanced. The revenues for this year were estimated at $42,910,000 with expenditures at $42,637,000, and the difference of $273,000 will be put into the retirement health contribution to fund that account, which historically was funded every year except in the tough ones. He said the balanced budget accomplished everything requested by the Council at the budget hearings, but unfortunately staff was reduced to 148 employees in order to balance the budget, which was done three months ago. He said the impacts have been brought into City Hall with no service delivery decline from those cuts and stated the budget was a good financial plan for 2010-2011. Councilman/Member Kelly explained for the purposes of the audience in attendance that this was not the first time the Council was dealing with the budget, because several meetings prior to this one took place before it reached this point. Mayor/Chairman Finerty agreed, stating the Council had three study sessions with a line -by-line review of the budget. Mayor/Chairman Finerty declared the public hearing open and invited public testimony FAVORING or OPPOSING this matter. With no public testimony offered, she declared the public hearing closed. Councilman/Member Spiegel moved to waive further reading and adopt: 1) City Council Resolution No. 2010 - 45, adopting a City Program and Financial Plan for the Fiscal Year July 1, 2010, through June 30, 2011; 2) City Council Resolution No. 2010 - 46, establishing the Appropriations Limit for the 2010-2011 Fiscal Year; 3) Redevelopment Agency Resolution No. 573, adopting a Redevelopment Agency Program and Financial Plan for the Fiscal Year July 1, 2010, through June 30, 2011; 4) Housing Authority Resolution No. HA-43, adopting a Housing Authority Program and Financial Plan for the 26 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 24, 2010 Fiscal Year July 1, 2010, through June 30, 2011; 5) City Council Resolution No. 2010 - 47, setting the Salary Schedule, Salary Ranges, and Allocated Classifications; 6) By Minute Motion, approve the Out -of -State Travel Requests as listed in the accompanying staff report memo entitled same. Motion was seconded by Ferguson. Mayor Pro TemNice Chairman Ferguson said this was probably the biggest budget reduction in the history of the City. He said Palm Desert never had an unbalanced budget and believed this was a healthy exercise for the City to tighten its belt and live within the means. He wished other forms of govemment would follow the same lead as Palm Desert, although it was a painful process. His hat was off to the City Manager for making the tough decisions and the Director of Finance for assuring once again that Palm Desert had a balanced budget with a modest surplus of $300,000, even with his conservative revenue assessment. Mayor/Chairman Finerty called for the vote and the motion carried by a 5-0 vote. C. REQUEST FOR ADOPTION OF RESOLUTIONS, AUTHORIZING A REQUEST TO THE CALIFORNIA DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT TO AMEND THE CONTRACT USE OF CALIFORNIA NEIGHBORHOOD STABILIZATION PROGRAM (NSP) FUNDING AND EXECUTION OF THE RELATED AGREEMENT AND ANY AMENDMENTS THERETO (JOINT CONSIDERATION WITH THE PALM DESERT REDEVELOPMENT AGENCY). Ms. Moore stated this was an amendment to the agreement for NSP to stabilize neighborhoods in Palm Desert that had been hit by foreclosures. It was determined early on in the process that the contract needed to be amended, however, the County believed it had already covered it. Staff was seeking authorization to acquire properties and be reimbursed by NSP. Mayor/Chairman Finerty declared the public hearing open and invited public testimony in FAVOR or OPPOSITION to this matter. With no public testimony offered, she declared the public hearing closed. Councilman/Member Spiegel moved to: 1) Waive further reading and adopt City Council Resolution No. 2010 - 48, authorizing a request to amend the contract use of California Neighborhood Stabilization Program (NSP) funding and execution of the relative agreement, and any amendments thereto; 2) Waive further reading and adopt Redevelopment Agency Resolution No. 574, authorizing a request to amend the contract use of California Neighborhood Stabilization Program (NSP) funding and execution of the relative agreement, and any amendments thereto; 3) By Minute Motion, authorize the City Manager/Executive Director or the Director of Housing to sign Funds Requests and other required reporting forms. 27 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 24, 2010 Councilman/Member Kelly noted this was a $300,000 investment to help others. Motion was seconded by Benson and carried by a 5-0 vote. D. REQUEST FOR APPROVAL OF THE ANNUAL BUDGET FOR THE ALESSANDRO ALLEY PROPERTY AND BUSINESS IMPROVEMENT DISTRICT — FISCAL YEAR 2010-2011. Senior Management Analyst Ryan Stendell noted Items D-H of this agenda dealt with the annual levies of the City's Consolidated Landscape Lighting District, Benefit Assessment Districts, and Private Business Improvement Districts. He offered to answer any questions. Councilman Spiegel commented there were no expenses for Alessandro Alley this fiscal year. Mr. Stendell responded there were no expenses because the improvements had not been made. Further responding, he said the timing of the assessment worked out well because the Property and Business Improvement District (PBID) is at its fifth year, which means that it needs to re-form next year with the City hosting new meetings to re-form the next five-year cycle, take a fresh look at the improvements and maintenance cost, and go through the process all over again. Mayor Finerty declared the public hearing open and invited public testimony in FAVOR or OPPOSITION to this matter. With no public testimony offered, she declared the public hearing closed. Councilman Spiegel moved to waive further reading and adopt: 1) Resolution No. 2010 - 49, approving the Alessandro Alley Property and Business Improvement District Annual Budget for FY 2010-2011; 2) Resolution No. 2010 - 50, ordering the levy and collection of assessments for the Property and Business Improvement District for FY 2010- 2011. Motion was seconded by Kelly and carried by a 5-0 vote. E. REQUEST FOR APPROVAL OF THE FINAL ENGINEER'S REPORT AND ORDER TO LEVY FOR FISCAL YEAR 2010-2011 FOR THE CITY OF PALM DESERT BENEFIT ASSESSMENT DISTRICT NO. 1. Senior Management Analyst Ryan Stendell stated this was a Benefit Assessment District that maintained the basin and drainage area for Section 29 at the north end of the City. Mayor Finerty declared the public hearing open and invited public testimony in FAVOR or OPPOSITION to this matter. With no public testimony offered, she declared the public hearing closed. 28 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 24, 2010 Councilman Kelly moved to waive further reading and adopt Resolution No. 2010 - 51, approving the Annual Engineer's Report and ordering the levy and collection of assessments within the City of Palm Desert Benefit Assessment District No. 1 for FY 2010-2011, pursuant to the provisions of the Benefit Assessment Act of 1982. Motion was seconded by Spiegel and carried by a 5-0 vote. F. REQUEST FOR APPROVAL OF THE FINAL ENGINEER'S REPORT AND TO ORDER THE LEVY AND COLLECTION OF ANNUAL ASSESSMENTS WITHIN THE CONSOLIDATED PALM DESERT LANDSCAPING AND LIGHTING DISTRICT FOR FISCAL YEAR 2010-2011. Mayor Finerty stated she owned property in the area and would not be voting on this item and left the Council Chamber. Senior Management Analyst Ryan Stendell stated this was for the Consolidated Landscaping Lighting District, which was approximately 36 individual districts scattered throughout the City for Fiscal Year 2010-2011. Mayor Pro Tem Ferguson declared the public hearing open and invited public testimony in FAVOR or OPPOSITION to this matter. With no public testimony offered, he declared the public hearing closed. Councilman Spiegel moved to waive further reading and adopt: 1) Resolution No. 2010 - 52, approving the Final Engineer's Report for the Consolidated Palm Desert Landscaping and Lighting District for FY 2010-2011; 2) Resolution No. 2010 - 53, ordering the levy and collection of assessments within the Consolidated Palm Desert Landscaping and Lighting District for FY 2010-2011. Motion was seconded by Kelly and carried by a 4-0 vote, with Finerty ABSENT. G. REQUEST FOR APPROVAL OF THE ANNUAL BUDGET FOR THE PRESIDENT'S PLAZA I PROPERTY AND BUSINESS IMPROVEMENT DISTRICT FOR FISCAL YEAR 2010-2011. Senior Management Analyst Ryan Stendell stated this was for President's Plaza I, which was nearing its fifth year, so at the conclusion of Fiscal Year 2010-2011 this area will be re-formed for another five years. Mayor Finerty declared the public hearing open and invited public testimony in FAVOR or OPPOSITION to this matter. With no public testimony offered, she declared the public hearing closed. Councilman Spiegel moved to waive further reading and adopt: 1) Resolution No. 2010 - 54, approving the President's Plaza I Business Improvement District Annual Budget for FY 2010-2011; 2) Resolution No. 2010 - 55, ordering the levy and collection of assessments for FY 2010-2011. Motion was seconded by Kelly and carried by a 5-0 vote. 29 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 24, 2010 H. REQUEST FOR APPROVAL OF THE PRESIDENT'S PLAZA III BUSINESS IMPROVEMENT DISTRICT ANNUAL BUDGET FOR FISCAL YEAR 2010-2011. Mayor Pro Tem Ferguson stated he would be abstaining on this item because he leased business property within this district and left the Council Chamber Senior Management Analyst Ryan Stendell stated this item was for President's Plaza III, Property Business Improvement District. He said the budgets were set the same as year one. He noted there were no major complaints in the area for this fiscal year, so it was business as usual. Mayor Finerty declared the public hearing open and invited public testimony in FAVOR or OPPOSITION to this matter. With no public testimony offered, she declared the public hearing closed. Councilman Spiegel moved to waive further reading and adopt: 1) Resolution No. 2010 - 56, approving the President's Plaza III Business Improvement District Annual Budget for FY 2010-2011; 2) Resolution No. 2010 - 57, ordering the levy and collection of assessments for FY 2010-2011. Motion was seconded by Kelly and carried by a 4-0 vote, with Ferguson ABSENT. XVIII. REPORTS AND REMARKS A. CITY MANAGER None B. CITY ATTORNEY None C. CITY CLERK 1. Announcement of Joint City Council-Redevelopmgent Agency Study Session regarding College of the Desert Child Development Center and the City's Childcare Mitigation Funds, Thursday, July 8, 2010, at 2:00 p.m., Administrative Conference Room. Ms. Klassen made the subject announcement and Councilmembers so noted. 30 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 24, 2010 D. PUBLIC SAFETY o Fire Department None o Police Department None E. MAYOR AND MEMBERS OF THE CITY COUNCIL o City Council Requests for Action: None o City Council Consideration of Travel Requests and Reports: None o City Council Committee Reports: 1. SunLine Transit Agency — Councilman Spiegel distributed to each of his colleagues a copy of SunLine's routes in the Coachella Valley, along with its FY 2009 Annual Report. He reported that they ended up with a small surplus this year and have planned the budget for next; but they are awaiting final word on the amount that will be received from Riverside County Transportation Commission (RCTC), which will be announced in October. 2. CVAG Public Safety Committee — Councilman Spiegel said at their recent meeting, performance of the automatic garage doors installed on many of the fire stations in the Coachella Valley was discussed relative to the April 4 earthquake in Mexico, and he provided a hand-out report on the matter to the City Council. He said most of the doors went up in response, some didn't; however, Palm Desert didn't have these devices on its stations. CVAG has applied for a grant to install the openers that cost approximately $25,000 each, but the award of same hasn't been announced yet. He felt it was a very important safety matter for Palm Desert's three Fire Stations, especially since La Quinta, Rancho Mirage, Indio, Palm Springs, Desert Hot Springs, and Temecula all had the devices to open their fire station doors. 31 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING J U N E 24, 2010 Responding to question about the meaning of "ignored response," he said it meant the doors didn't go up, mostly due to the distance from the epicenter of the event that didn't trigger the openers on all the doors in the Coachella Valley. Mayor Finerty appreciated the point but wanted to make sure that performance of the technology was guaranteed. 3. Palm Springs Desert Resort Communities CVA — Mayor Pro Tem Ferguson reported that since Palm Desert joined the CVA-BID process and got the County to issue official findings that all monies at the CVA were public and as such, accountable to the Joint Powers Authority, there seems to be a much greater level of accountability and complete turnover of almost all their main positions, from the President on down. He said they plan to fill the No. 2 Sales Director position within the next two weeks; and they have retained a search firm to look for a new President, which they expect to fill by the first of the year. The Internet person just left, and they also have two other positions to fill, but he was pleased to say that the HIBC (Hospitality Industry and Business Council) and the model that was contemplated seems to be thoroughly evaluating operations of the program and making what he thought were some very beneficial changes. However, he noted that Interim President Judy Vossler, who'd been doing an outstanding job, announced that she will not be a candidate for the President's position, which he thought was a great loss for the Valley because she would have been an excellent candidate. o City Council Comments: 1. Councilman Kelly was pleased to report on a headline in today's newspaper, "Local Woman Set for LPGA Championship," who happens to be the Desert Willow Golf Resort Retail Manager and Teaching Pro Debbi Koyama playing today in that event. He added that he'd had the good fortune of spending time with Ms. Koyama, an outstanding employee and wonderful part of Desert Willow. He acknowledged and congratulated Desert Willow General Manager Rich Mogensen and Director of Food and Beverage Jim Carvajal in attendance at today's meeting, along with everyone at Desert Willow and sent very best wishes to Ms. Koyama for her continued success. 32 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 24, 2010 2. Councilmember Benson commented that she attended the California State University, San Bernardino - Palm Desert Campus Graduation Ceremony last week and was very proud to have experienced the fruits of the City of Palm Desert's labor. She recalled that when the City donated the land to CSUSB and UCR, CSUSB President Al Karnig remarked that it was going to be a gateway for Hispanic and other students from the area who wouldn't have otherwise had the chance to obtain a college education. She said that in listening to the roll call of students graduating, success had been achieved — especially hearing the phenomenal number of students receiving Master's and B.S. degrees. XIX. ADJOURNMENT Upon a motion by Ferguson, second by Spiegel, and unanimous vote of the City Council, Mayor Finerty adjourned the meeting at 5:51 p.m. ATTEST: SS7 ,r RACHELLE D. KLASSEN; CITY CLERK CITY OF PALM DESERT, CALIFORNIA CINDY NERTY, MAYOR 33