HomeMy WebLinkAbout2013-08-22MINUTES
REGULAR PALM DESERT CITY COUNCIL MEETING
THURSDAY, AUGUST 22, 2013
CIVIC CENTER COUNCIL CHAMBER
73510 FRED WARING DRIVE, PALM DESERT, CA 92260
I. CALL TO ORDER - 3:00 P.M.
Mayor Hamik convened the meeting at 3:03 p.m.
II. ROLL CALL
Present:
Mayor Pro Tem Jean M. Benson
Councilman Robert A. Spiegel
Councilman Van G. Tanner
Councilmember Susan Marie Weber
Mayor Han C. Hamik
Also Present
John M. Wohlmuth, City Manager
David J. Erwin, City Attorney
Jill Tremblay, Assistant City Attomey
Rachelle D. Klassen, City Clerk
Russell Grance, Director of Building & Safety
Lauri Aylaian, Director of Community Development
Martin Alvarez, Director of Economic Development
Paul S. Gibson, Director of Finance
Janet M. Moore, Director of Housing
Mark Greenwood, Director of Public Works
Frankie Riddle, Director of Special Programs
Bo Chen, City Engineer
Stephen Y. Aryan, Risk Manager
Casey Hartman, Battalion Chief, Palm Desert Fire/Riverside Co. Fire Dept./Cal Fire
Bill Sullivan, Asst. Chief, Palm Desert Police/Riverside Co. Sheriffs Dept.
Grace L. Mendoza, Deputy City Clerk
Upon inquiry by Mayor Hamik, Ms. Klassen affirmed that the agendas for today's
City Council, Successor Agency, and Housing Authority Meetings had all been
posted in accordance with the Ralph M. Brown Act.
MINUTES
REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 22, 2013
III. ORAL COMMUNICATIONS - A (CLOSED SESSION ITEMS)
None
IV. ADJOURN TO CLOSED SESSION
Request for Closed Session:
A. Conference with Real Property Negotiator pursuant to Govemment Code
Section 54956.8:
1) Property: Lease Property — Parkview Professional Office Complex,
73710 Fred Waring Drive, Suite No. 104, Palm Desert
Negotiating Parties:
Agency: John M. WohlmuthlPaul S. Gibson/City of Palm Desert
Property Owner. City of Palm Desert
Other Parties: Bill Houck/United Way of the Desert
Under Negotiation: Price � Terms of Payment
2) Property: APN 640-020-039
Negotiating Parties:
Agency: John M. Wohimuth/Mark Greenwood/City of Palm Desert
Property Owner: Charles Amash/Waring Plaza LLC
Under Negotiation: Price Terms of Payment
3) Property: 74719 King Fisher Circle (APN 624-440-027), Palm Desert
Negotiating Parties:
Agency: John M. Wohlmuth/Janet M. Moore/City of Palm Desert/
Palm Desert Housing Authority
Property Owner. Jerry White and Diana M. Corica
Under Negotiation: x Price x Terms of Payment
4) Property: 42148 Verdin Lane (APN 624-440-003), Palm Desert
Negotiating Parties:
Agency: John M. Wohlmuth/Janet M. Moore/City of Palm Desert/
Palm Desert Housing Authority
Property Owner: Justin E. and Patricia Mansker
Under Negotiation: x Price x Terms of Payment
5) Property: 43815 Yellow Sage Drive (APN 634-242-027), Palm Desert
Negotiating Parties:
Agency: John M. Wohlmuth/Janet M. Moore/City of Palm Desert/
Palm Desert Housing Authority
Property Owner: Elizabeth A. Gilmore
Under Negotiation: x Price x Terms of Payment
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REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 22, 2013
6) Property: 74600 King Fisher Circle (APN 624-440-014), Palm Desert
Negotiating Parties:
Agency: John M. Wohlmuth/Janet M. Moore/City of Palm Desert/
Palm Desert Housing Authority
Property Owner. Carlos Valdez
Under Negotiation:. Price A Terms of Payment
7) Property: 43990 Blueberry Lane (APN 634-061-028), Palm Desert
Negotiating Parties:
Agency: John M. Wohlmuth/Janet M. Moore/City of Palm Desert/
Palm Desert Housing Authority
Property Owner: Gladys Halls
Under Negotiation: A, Price A. Terms of Payment
8) Property: 74656 King Fisher Circle (APN 624-440-018), Palm Desert
Negotiating Parties:
Agency: John M. Wohlmuth/Janet M. Moore/City of Palm Desert/
Palm Desert Housing Authority
Property Owner: Linda Pineda
Under Negotiation: A Price A Terms of Payment
B. Conference with Legal Counsel regarding significant exposure to litigation
pursuant to Govemment Code Section 54956.9(d)(2):
Number of potential cases:
With City Council concurrence, Mayor Hamik adjoumed the meeting to Closed
Session at 3:04 p.m. She reconvened the meeting at 4:02 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 - Councilman Van G. Tanner
VII. INVOCATION - Mayor Jan C. Harnik
VIII. ORAL COMMUNICATIONS - B
None
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REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 22, 2013
IX. AWARDS, PRESENTATIONS, AND APPOINTMENTS
A. PRESENTATION TO RECOGNIZE KIM SNYDER FOR HIS SERVICE TO
THE CITY OF PALM DESERT AND ITS ART IN PUBLIC PLACES
COMMISSION, 2005 - 2013.
On behalf of the City Council, Mayor Hamik presented an engraved crystal
clock to Mr. Snyder and thanked him for his eight years of service to the Art
In Public Places Commission.
Mr. Snyder expressed sincere appreciation for the recognition and to the
citizens of Palm Desert for the experience he'd enjoyed with the
Commission, especially serving as its Chair this past year. He also noted
that it was very special being able to introduce the new El Paseo Invitational
Exhibition this past year.
B. PRESENTATION TO RECOGNIZE DIRECTOR OF FINANCE/CITY
TREASURER PAUL S. GIBSON AND THE CITY OF PALM DESERT
FINANCE DEPARTMENT FOR THEIR RECEIPT OF THE GOVERNMENT
FINANCE OFFICERS ASSOCIATION OF THE UNITED STATES AND
CANADA'S (GFOA'S) "CERTIFICATE OF ACHIEVEMENT FOR
EXCELLENCE IN FINANCIAL REPORTING FOR THE FISCAL YEAR
ENDED JUNE 30, 2012."
On behalf of the City Council, Mayor Hamik offered hearty congratulations
to Mr. Gibson and his staff for this prestigious recognition.
X. CONSENT CALENDAR
A. MINUTES of the Regular City Council Meetings of July 11, July 25, and
August 8, 2013.
Rec: Approve as presented.
B. CLAIMS AND DEMANDS AQAINST THE CITY TREASURY - Warrant
Nos. 254 and 258; 1, 4, 6, 7, 8, 12, 14, 15, 16, 18, 20, 22, 23, 25, 30, 31, 32,
33, and 35.
Rec: Approve as presented.
C. COMPLIANCE ANALYSIS AND INVESTMENT REPORT for the Months of
May 2013 and June 2013 (Joint Consideration with the Successor
Agency to the Palm Desert Redevelopment Agency).
Rec: Receive and file.
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REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 22, 2013
D. APPLICATION FOR ALCOHOLIC BEVERAGE LICENSE by Blue Orchid
Thai Bistro, 73030 El Paseo, Suite 102, Palm Desert.
Rec: Receive and file.
E. APPLICATION FOR ALCOHOLIC BEVERAGE LICENSE by Chez Pierre,
74040 Highway 111, Suite E, Palm Desert.
Rec: Receive and file.
F. APPLICATION FQR ALCOHOLIC BEVERAGE LICENSE by Siam Gourmet,
Ltd., 72355 Highway 111, Suite A, Palm Desert.
Rec: Receive and file.
G. APPLICATION FOR ALCOHOLIC BEVERAGE LICENSE by Walmart
Neighborhood Market #3026, 72314 Highway 111, Palm Desert.
Rec: Receive and file.
H. APPLICATION FQR ALCOHOLIC BEVERAGE LICENSE by Woodhaven
Country Club Homeowners Association, 41555 Woodhaven Drive, Suite E,
Palm Desert.
Rec: Receive and file.
I. CITY COMMITTEE AND COMMISSION MEETING MINUTE$.
1. Art In Public Places Commission Meeting of June 19, 2013.
2. Audit, Investment & Finance Committee Meetings of May 28 and
June 25, 2013.
3. Citizens' Sustainability Committee Meeting of April 29, 2013.
Rec: Receive and file.
J. REQUEST FOR AUTHORIZATION to Utilize Vendors on an Authorized
Motorcycle Maintenance Vendors List for Repairs to City -owned Police
Vehicles, Communication, Radar, and Lidar Equipment, and for Purchase of
Equipment Utilized by the Motor Enforcement Team.
Rec: By Minute Motion, authorize the Palm Desert Police Department to
utilize vendors on the Authorized Motorcycle Maintenance Vendors
List as presented in the Riverside County Sheriffs Department
Memorandum dated April 19, 2013.
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REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 22, 2013
..I
K. REQUEST FOR AUTHORIZATION to Purchase Nine (9) Motorola MC75A ..r
Mobile Ticket Writers in the Amount of $26,365.07 from MSA Systems Inc.
Rec: By Minute Motion, approve the purchase of nine (9) Motorola MC75A
Mobile Ticket Writers in the amount of $26,365.07 from MSA Systems
Inc., San Jose, California — item approved as part of the
FY 2013-2014 Police Department Budget, and funds are available in
Account No. 400-4210-422-4045.
L. REQUEST FOR AUTHORIZATION to Purchase Nine (9) Body Cameras in
the Amount of $8,450.60 for the Palm Desert Police Department's Motor
Enforcement Team.
Rec: By Minute Motion, approve the purchase of nine (9) VieVU LE2 Body
Cameras for the Motorcycle Enforcement Officers assigned to the
City of Palm Desert in the amount of $8,450.60 — item approved as
part of the FY 2013-2014 Police Department Budget, and funds are
available in Account No. 400-4210-422-4045.
M. REQUEST FOR AUTHORIZATION to Purchase Kevlar Motorcycle Uniforms
in an Amount Not to Exceed $10,000 from Motoport, Inc.
Rec: By Minute Motion, approve the purchase of Kevlar motorcycle
uniforms in an amount not to exceed $10,000 from Motoport, Inc.,
San Marcos, Califomia — item approved as part of the FY 2013-2014
Police Department Budget, and funds are available in Account
No. 400-4210-422-4045.
N. REQUEST FOR AUTHORIZATION to Purchase a Fuel Management System
in an Amount Not to Exceed $36,650 from Westem Pump, Inc.
Rec: By Minute Motion, approve the purchase of a Fuel Management
System from Westem Pump, Inc., in an amount not to exceed
$36,650 — funds are available in Account No. 530-4195-415-4030 -
Fleet Equipment Replacement.
O. REQUEST FOR RENEWAL of the Contract with the Law Firm of Liebert
Cassidy Whitmore (LCW) to Maintain the City's Membership in the
Coachella Valley Employment Relations Consortium (Contract No. C21526).
Rec: By Minute Motion, approve the subject contract renewal with Liebert
Cassidy Whitmore (LCW) for membership in the Coachella Valley
Employment Relations Consortium and authorize the City Manager
to execute same — funds in the amount of $4,158 are available in
Account No. 110-4154-415-3121.
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REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 22, 2013
P. REQUEST FOR AUTHORIZATION to Reject All Bids Received for Contract
No. C32910 — Country Club Drive Median Landscape Rehabilitation (Project
No. 979-14) and for Staff to Re -bid the Project.
Rec: By Minute Motion: 1) Reject all bids received in response to
solicitation for the subject Country Club Drive Median Landscape
Rehabilitation Project; 2) authorize staff to re -bid the project.
Q. REQUEST FOR RATIFICATION of the City Manager's Execution of a
Parking Agreement with Desert Cities Baptist Church as it Relates to
Cahuilla Hills Park and Approve Amendment to Contract with Vintage
Associates, Inc., to Include Maintenance of the Parking Area for Remainder
of Contract Term in Landscape Maintenance Area No. 18.
Rec: By Minute Motion: 1) Ratify the City Manager's Execution of a Parking
Agreement with Desert Cities Baptist Church as it relates to Cahuilla
Hills Park (Contract No. C33010); 2) amend Contract No. C32190 with
Vintage Associates, Inc., Bermuda Dunes, Califomia — Landscape
Maintenance Area No. 18 — to include maintenance of the parking
area at an additional $100/month ($1,000 for remainder of contract
term); 3) authorize the Mayor to execute said Contract Amendment —
funds are available in Account No. 110-4611-453-3320 -
R/M Landscape Services.
R. REQUEST FOR APPROVAL of Amendment No. 2 to Contract
No. C28800D — Property Acquisition Services for the Free Right-tum Lane
at Fred Waring Drive and Highway 111 (Project No. 658-08).
Rec: By Minute Motion: 1) Approve Amendment No. 2 in the amount of $5,000 to
the subject contract with Overland, Pacific & Cutler, Inc., Palm Desert,
Califomia, for right-of-way services for the Free Right-tum Lane at Fred
Waring Drive and Highway 111; 2) authorize the Mayor to execute said
Amendment — funds are available in Account No. 213-4384-433-4001 -
Right-tum Lane - Fred Waring to Highway 111 (no General Fund money is
being used).
S. REQUEST FOR APPROVAL of Change Order No. 1 and Acceptance of
Work for Contract No. C32050 — Desert Willow Irrigation Pump Renovation
(Project No. 850-13) (South West Pump & Drilling, Inc., Coachella, CA).
Rec: By Minute Motion: 1) Approve Change Order No. 1 in the amount of
$4,928.31 to the subject contract with South West Pump & Drilling, Inc., for
the Desert Willow Irrigation Pump Renovation Project; 2) authorize the
transfer of $4,928.31 from contingency to base for the project; 3) authorize
the Mayor to execute Change Order No. 1; 4) accept the work as complete
and authorize the City Clerk to file a Notice of Completion for the subject
project.
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REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 22, 2013
T REQUEST FOR AUTHORIZATION to Release Security for Tract No. 31020
and Accept New Security and Agreement for Same (Knightswood Ventures,
LLC, Applicant).
Rec: By Minute Motion, release the security for Tract No. 31020 and accept
new security and agreement for same.
U. REQUEST FOR APPROVAL of Out -of -State Travel for Palm Desert
Visitor Center Coordinator to Attend the 2013 Las Vegas Souvenir and
Resort Gift Show from September 17 -19, 2013.
Rec: By Minute Motion, authorize the Palm Desert Visitor Center
Coordinator to attend the Las Vegas Souvenir and Resort Gift Show,
Las Vegas, Nevada, for the period of September 17 - 19, 2013 —
funds are available in Account No. 110-4419-453-3120 - Visitor
Center Conference/Seminars/Workshops.
V. REQUEST FOR APPROVAL of Out -of -State Travel for the Engineering
Technician to Attend International Municipal Signal Association Certification
Renewal Training in Las Vegas, Nevada, October 7 - 8, 2013.
Rec: By Minute Motion, authorize the Engineering Technician to attend
International Municipal Signal Association (IMSA) Certification
Renewal Training in Las Vegas, Nevada, on October 7 - 8, 2013 —
funds are available in Account No. 110-4310-433-3120 - Street
Maintenance Conference/Seminars/Workshops.
W. INFORMATIONAL REPORT Related to the 2014 Slurry Seal Project (Project
No. 751-14).
Rec: Receive and file.
Upon a motion by Tanner, second by Benson, and 5-0 vote of the City Council, the
Consent Calendar was approved as presented.
XI. CONSENT ITEMS HELD OVER
None
8
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REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 22, 2013
XII. RESOLUTIONS
A. RESOLUTION NO. 2013 - 50 - A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF PALM DESERT, CALIFORNIA, APPROVING THE
SUBDIVISION MAP OF TRACT NO. 31490 (D. R. Horton, Applicant).
Mr. Greenwood stated this Tract Map of 41 single family homes in the
Ponderosa Development and staff recommended approval.
Councilman Spiegel asked when construction will start on these homes.
Mr. Greenwood responded builders like to get started right away; therefore,
he believed construction would start in the fall. He said this was the last tract
of the first phase within the Ponderosa Homes.
Councilman Spiegel moved to waive further reading and adopt Resolution
No. 2013-50. Motion was seconded by Benson and carried by a 5-0 vote.
XIII. ORDINANCES
A. For Introduction:
1. ORDINANCE NO. 1257 - AN ORDINANCE OF THE CITY COUNCIL
OF THE CITY OF PALM DESERT, CALIFORNIA, AMENDING
SECTIONS 10.24.010, 10.24.020, 10.24.050, 10.24.080, AND
10.24.160 OF THE MUNICIPAL CODE OF THE CITY OF
PALM DESERT, CALIFORNIA, REGARDING ABANDONED
VEHICLES — ENFORCEMENT AND ABATEMENT.
Councilman Tanner stated this was a good Ordinance and one the
City should have in place.
Councilman Tanner moved to waive further reading and pass Ordinance No. 1257
to second reading.
Responding to question, Mr. Erwin explained staff cleaned up some
areas that could have been done earlier, but there are no substantive
changes to the Ordinance itself.
Councilman Spiegel seconded the motion and it carried by a 5-0 vote.
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REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 22, 2013
2. ORDINANCE NO. 1258 - AN ORDINANCE OF THE CITY COUNCIL
OF THE CITY OF PALM DESERT, CALIFORNIA, AMENDING
CHAPTER 24.04 OF THE PALM DESERT MUNICIPAL CODE,
PERTAINING TO WATER -EFFICIENT LANDSCAPE GUIDELINES.
Assistant Planner Kevin Swartz stated the amendments to the
Municipal Code established minimum water -efficient landscape
requirements for newly installed and rehabilitated landscape areas
greater than 5,000 square feet. The amendments also ensure the
City is in compliance with the State. Additionally, Coachella Valley
Water District (CVWD) created a water efficient landscape ordinance
in compliance with the State. It is the intent of the City to defer
technical irrigation review to CVWD. The City will still maintain full
authority over aesthetic, pallet, spacing, and design review.
Councilman Spiegel inquired about a past program that helped
residents pay for drought tolerant landscaping.
Mr. Wohlmuth responded in the past the City partnered with CVWD
in the Turf Buy Back where the City paid $1 per square foot and
CVWD matched it. The program was relatively successful, but the
interest started waning and found that more people complained
because the cost of the retrofit or turf elimination far exceeded the
rebates. He said some homeowner associations were also part of the
program. The program was not budgeted for last year or this year,
because the interest is no longer there as it once was. However,
Coachella Valley Association of Govemments (CVAG) program
through Ygrene will include a similar program as an option.
Responding to question about the interest rate being offered, he said
Ygrene provides private funding for energy and water -efficient
programs and believed the rate was 6.34%.
Councilman Tanner noted CVWD was still offering $1,000 a rebate for
the front yard and $1,000 for the rear yard, stating he hoped people
will utilize this type of relief in combination with Ygrene's program.
Responding to question, Mr. Swartz said CVWD and the City
exceeded the State Code.
Councilman Tanner moved to waive further reading and pass Ordinance No. 1258
to second reading. Motion was seconded by Weber and carried by a 5-0 vote.
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REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 22, 2013
B. For Adoption:
None
XIV. NEW BUSINESS
A. REQUEST FOR AUTHORIZATION FOR THE PALM DESERT
POLICE DEPARTMENT TO PARTICIPATE IN THE POST -RELEASE
ACCOUNTABILITY AND COMPLIANCE TEAMS (P.A.C.T.) PROGRAM.
Mr. Aryan stated that in efforts to mitigate post realignment impacts from
AB109, staff recommended Palm Desert Police Department's participation
in the Post -Release Accountability and Compliance Teams (P.A.C.T), which
was formed to address local impact. If approved, the Police Department will
be transfeMng a supervisory corporal from general law enforcement patrol
as a dedicated member of the EAST -PACT team, along with other members
and representatives from local law enforcement agencies that will be
participating. The role of this officer will be similar to that of a state parole
officer that is no longer performing these duties due to realignment.
Participation in this program will result in a reimbursement of approximately
$200,000 in this year's police budget; this amount was earmarked for the
Police Department's participation. He said State funds will be reimbursing
the City; therefore, staff recommended approval.
Councilman Spiegel moved to, by Minute Motion: 1) Approve the Palm Desert Police
Department's participation in the P.A.C.T. Program; 2) authorize the City Manager or his
designee to execute any documents related to the City's participation in P.A.C.T.; 3)
appropriate $200,000 from Fund 229 - Police Department Budget - and estimated
reimbursement of $200,000 from the City's participation in the P.A.C.T. Program.
Councilman Tanner asked if this was an 8-hour position seven days a week,
and how will the new position be manned.
Mr. Aryan explained the position will be held by a supervisor corporal and it
will not diminish the current level of patrol services to the City nor current
patrol beats.
Lt. Sullivan said the State will pay for a full-time position (2,080 hours).
Councilman Tanner seconded the motion and it carried by a 5-0 vote.
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REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 22, 2013
B. REQUEST FOR APPROVAL OF THE ANNUAL FALL 2013 CONCERT
SERIES.
Ms. Riddle stated staff was proposing a Fall Concert Series based on
comments received from the City's survey that was sent out in January. The
First Spring Series took place in May, and the Fall is proposed for October
2013. In efforts to relieve the General Fund, staff sought out partners and
approached the Family YMCA who agreed to partner. She said the YMCA
had actually been a partner since 2013 by sponsoring one performance each
year. Starting with this year, Desert Recreation District will sponsor $5,000
for both series. She said staff recommended approval of the Fall Concert
Series as outlined in the staff report.
Mayor Pro Tem Benson asked about the number of people in attendance at
the Spring Concert Series.
Ms. Riddle responded it was about 3- to 500 hundred, stating there was good
attendance at all of them, but it was in May. Generally, this series would
take place in June or July, but the weather was much better in May.
Councilman Spiegel thanked Ms. Riddle for putting the series together.
Councilman Spiegel moved to, by Minute Motion: 1) Approve the 2013 Fall Concert
Series Schedule; 2) approve Contract No. C33020A - Kelly Moneymaker (Blues) in the
amount of $525; 3) approve Contract No. C33020B - Amanda Castro (Jazz) in the amount
of $865; 4) approve Contract No. C33020C - David and Olivia (Americana/Country) in the
amount of $625; 5) approve Contract No. C33020D - Shaken Not Stirred
(Variety/Pop/Rock) in the amount of $2,000; 6) approve expenditure with Studio Instrument
Rentals (SIR), Palm Springs, California, for concert professional staff, instrumental
equipment, sound, and/or lighting in conjunction with the concerts; 7) authorize the Mayor
to execute subject contracts — funds are available in Account No. 110-4416-414-3061.
Motion was seconded by Weber and carried by a 5-0 vote.
C. REQUEST FOR APPROVAL OF PALM SPRINGS ART MUSEUM
NEW YEAR'S EVE 5K RUN/WALK RACE.
Ms. Riddle stated the Palm Springs Museum is proposing a 5K New Year's
Race; however, instead of holding the event on Tuesday, it will be held the
following Saturday to get more participation from families. With that change,
staff is recommending approval of the event as outlined in the staff report.
Responding to question, she said the event will be Saturday, January 4,
2014, in lieu of December 31, and the course and time of the event will
remain the same.
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REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 22, 2013
Councilman Tanner moved to, by Minute Motion: 1) Approve Saturday, January 4,
2014, date for the Palm Springs Art Museum New Year's Eve 5K Race; 2) approve
Painters Path (from El Paseo to Fred Waring Drive - behind Desert Crossing Shopping
Center) and Edgehill (from El Paseo to Cahuilla Hills Park) Road Closures for the event.
Councilman Spiegel said he didn't understand the route.
Ms. Riddle explained the course will start in the Museum parking lot, taking
a right on Painter's Path and tuming left on Edgehill where it will proceed to
the top of the street then veering to the right where the church sits off the
bridge, then circle back down Edgehill crossing over the bridge and
proceeding along Painter's Path behind Target where it will loop back and
end at the Museum.
Mayor Hamik commented it will be a great event for the Museum.
Councilmember Weber seconded the motion and it carried by a 5-0 vote.
D. REQUEST FOR CITY COUNCIL DIRECTION REGARDING POTENTIAL
EXPANSION OF AREAS IN WHICH DRIVE -THROUGH RESTAURANTS
ARE PERMITTED WITHIN THE CITY OF PALM DESERT.
Mayor Hamik noted this was not a public hearing, but there were a couple
of speaker cards she will call upon.
Ms. Aylaian stated that at the June City Council meeting, one
Councilmember requested lifting the ban on drive -through restaurants, which
is why this item was brought to the Council for consideration at this meeting.
However, staff needed more direction from the Council before embarking
upon development of design standards in an implementation program for
how this will be done. In particular, the current prohibition on drive -through
restaurants applies to all of Palm Desert with three exceptions. In 1996/1997
the City Council became concerned with remaining competitive with other
Valley cities along the Interstate-10 Freeway. Specifically, providing greater
lenience, as far as service stations, convenience stores, auto washes, and
freeway oriented businesses, but appropriately situated around a freeway
such as RV/boat storage or mini warehouses. That Council asked staff to
investigate and apply a new zone and different standards, which the current
Ordinance reflects. The location of the Overlay zone has changed through
the years as different projects and master plans were approved with different
design standards and conditions to them. She displayed a map of the City,
which outlines the locations where drive -through restaurants are permitted.
She said staff is looking for direction as to whether the Council would like to
lift the ban on drive -through restaurants throughout the entire City or just in
selected areas; if so, what are those areas, or maintain the current
prohibition. She noted one new email was received recently in support of the
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REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 22, 2013
prohibition, and another email was attached to the staff report that was in
opposition to the ban and requested it be lifted.
MR. DICK SHALHOUB stated he was the owner/operator of the McDonald's
Restaurant, 72755 Highway 111, Palm Desert. He said they have
discovered over the year from their restaurants, that the times, technology,
and customer preferences have changed. The first important part is with
technology, stating that 40 years ago drive-throughs were thought to be the
greatest thing in the work! and they belonged in a museum. Today's new
drive-throughs feature special technologies that allow orders to be taken
faster, quicker, making it more convenient to the customer. Drive-throughs
allow for time to be saved, because they are more energy efficient. He
recently read that a leaf blower, a two-cycle engine, created more pollution
than a car idling in a drive -through. Secondly, the life style and family unit
has changed, husbands are not working, and wives' are not in aprons
cooking breakfast before the kids go to school. It was more like husbands
and wives both working rushing to get the kids to school; therefore, making
time was important and precious. The same thing went for workers
throughout the Coachella Valley that crisscrossed through Palm Desert.
Families need the time to get the food they need and get back on the road.
He saki drive-throughs are an efficient way of distribution of their products.
He asked the Council to look at the difference in volume and percentage of
dollars going through Palm Desert, because those dollars would increase the
sale tax for the City. The design changes can make the whole area a little
bit nicer and more modem. He said he had all the details and information if
anyone cared to ask, stating they were prepared to make a presentation of
their renderings and drawings of what they can do with their centers. He
said in order to bring their operation up to where it should be at their
particular corridor, the drive -through would be very efficient and beneficial to
both the City and their operation. He offered to answer any questions.
MS. KIM HOUSKEN, Somera, Palm Desert, stated that as a concemed
citizen, she believes Palm Desert has been a leader when it came to
recycling, usage of golf carts, and art in public places. She said when the
City incorporated, it was light years ahead of other cities, but others have
since come on board and begun banning drive -through restaurants within
their cities. She believed it would be a step back to allow drive-throughs
citywide, because the Council in 1996 struck a good balance by meeting the
need for drive -through restaurants along Interstate 10. She noted she was
fortunate to be part of the Envision Palm Desert Strategic process, which is
looking at the City 20 years down the road. Some of things brought up in the
meetings is for Palm Desert to maintain its sense of community and remain
concemed about sustainability. She said there was a whole focus group on
sustainability. In her preliminary research on idling engines, on just 10
seconds of idling, it was more efficient to tum off the car and turn it back on.
Therefore, for any study found, and there have been some commissioned by
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REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 22, 2013
fast food restaurants, one will find varying perspectives. She encouraged the
Council to look into those studies before venturing down that road. Lastly,
the Envision Palm Desert has been increasingly interested in the waikability
of the community and she didn't see how allowing drive -through restaurants
citywide would foster any of these goals or sense of community. She said
when walking into a Starbuck's or McDonald's, one can run into people they
know, and it's an opportunity to visit. She heard Mr. Shalhoub mention it was
a whole lifestyle change, but she would argue, with respect to technology, it
had gone too far. She said people are so into their electronic devices that
they don't see what is going on around them, and it would be a shame for
the City to expand the use of drive -through restaurants citywide. She said
if the Council was considering lifting the ban, that it considering sending it
through the Sustainability Committee to allow them to look into the emissions
aspect of idling vehicles at drive -through restaurants.
Councilman Spiegel stated he was the one that requested this item be
placed on the agenda, because he believed drive-throughs would be a
convenience to the residents, making it easier for them, which he believed
was the Council's job. He said a woman with a lot of little kids didn't want to
get out of her car and go into McDonald's, she'd rather pick up the food,
drive home, and have the kids eat at home, which there was nothing wrong
with that, and it wasn't a crime. He reiterated that having drive-throughs
would be a convenience to the residents, which is why he asked that it be
placed on the agenda.
Mayor Pro Tem Benson stated her view differed from that of
Councilman Spiegel's need for the public to enjoy drive-throughs. She said
years ago when she was Mayor a little boy wrote a letter to her stating he
didn't know why there were no drive-in's, because it was the only time his
family sat down for dinner together, which she thought was sad that family
values had decreased so much. She said the City has had this Ordinance
prohibiting drive-throughs for more than 30 years, and she had received only
two complaints about not having them; she said the City has done well
without them. She noted The Desert Sun did a tremendous article in their
editorial about Palm Desert being a leader before it was a leader. When the
City incorporated, prohibiting drive -through was one main goal, and she
couldn't see that lifting the ban would enhance the City in any way. The fact
that there was more technology available when going through a
drive -through didn't interest her at all. She said if she wanted to go to a
drive -through, she drove out to Interstate 10, and she was certain a lot of
residents did the same. She said she's had more people tell her they are
proud of the way Palm Desert has maintained its strength in some of these
things that are going against the grain of other cities. She said Palm Desert
accommodated the freeway traffic and people passing through by having
drive-throughs out in the allowed zones, and she saw no reason to change
it.
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Councilmember Weber stated there was more at issue here than to keep
saying it wants to be a leader and keep the status quo, because it didn't
mean the Council wants to run out and put a whole bunch of drive -through
restaurants off Highway 111. She said the world has changed, and there are
now quick service restaurants, and many of them are providing food in a
quick manner. She agreed with Councilman Spiegel that to unload all of
one's children, take them into the restaurant, and then load and buckle them
back onto the vehicle was an inconvenience. She said convenience was a
wonderful thing now a days. For instance, she teaches school and gets out
at 10:00 p.m., and to get food quickly, she went out to a drive through in
Thousand Palms, costing her more to drive out to the other end of town. If
the City was really concerned about idling engines, everyone at the stop light
would turn off their car, because vehicles are at stop lights more than 10
seconds; therefore, these issues couldn't really be talked about. She said
the Council had to talk about the fact it had businesses that want to come to
Palm Desert, and the City should be competitive with other cities. She said
drive -through restaurants are not what they used to be, because a business
won't make money if people are sitting in their car idling. Therefore, as
quickly as a business can get people through, that business will make more
money and the City won't have all the gas fumes and so forth. She said
quick -service restaurants are no longer just drive throughs, because they
include walk-ins, sit-downs. and patios. She agreed they are places to meet
and see people, but sometimes she didn't have the time. She didn't know
too many people who are out at 10:00 p.m. when she is trying to get her food
on her way home. She said everyone lived in a 24/7 world, and it didn't
mean taking the family out for a sit-down dinner at 5:00 p.m., it was a
different world with people working two or three jobs. She said the Council
needed to respect people's concerns or need for ease or quickness. She
reiterated lifting the ban didn't mean it will trash the City by putting drive
throughs all along Highway 111. She said some of these quick -service
restaurants are quite lovely, and they are not in your face. She said Palm
Desert will keep its high standards of construction, which will not change,
and didn't know why anybody would think it would. She said the Planning
Commission will not allow junk to be built in Palm Desert; it was against the
City's principles. She was in favor of allowing lovely drive -through
restaurants in Palm Desert, because she is not one of those persons who
sits in a restaurant by herself. She said there are many people out there that
have a need for this convenience, and to say it won't be allowed in our City,
defied logic.
Councilman Tanner stated one speaker mentioned she was part of the
Envision Palm Desert, and the whole reason the City created this strategic
plan group was to get opinions on where it needed to be for sustainability.
He believed the Council needed to step back and allow the ten or eleven
different subcommittees that made up the Strategic Plan Group to submit
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their recommendations to the Council next year. He said to vote on
recommendations 1, 2, or 3, would be an insult to those serving on those
various subcommittees. Secondly, his comments in the newspaper about
being on the Planning Commission, where this issue came up three different
times, there was a response by email stating, "Mr. Tanner was not correct in
his assumptions that this was not a good thing," which is incorrect. He
wasn't saying that lifting the ban was a good or bad thing, because he still
needs to be convinced one way or the other, and until he received more
response from the people that potentially use drive -through restaurants, this
Council wouldn't be making a good decision on the options proposed this
evening. The person he spoke with said there was no reason to have a drive
through. One of the things he stated in the article was that he had been here
since 1980, and when he had a van full of kids going to a ball or soccer
game, they all went into the store. However, he wants to wait to hear from
those people that potentially use them. He was in favor of postponing this
conversation until the Envision Palm Desert Strategic Plan group came back
with its recommendations.
Mayor Hamik explained the City had more than 120 very valuable community
members engaged in the Envision Palm Desert, and one of the
subcommittees is a Land -Use Committee. She encouraged Mr. Shalhoub
to bring his information to that committee, because it was good information
for them to have. She absolutely agreed the Council should show them
respect by allowing them to complete the process, stating the group was six
months into it and those members offered to donate their time and expertise.
She said the Council anticipated the group would be making a presentation
in April or May, and she was sure they had valuable insight that the Council
had to listen to. She said this item was to be placed on the July agenda, but
it was now August, pointing out that many community members are out of
town and they should be allowed to weigh in. Also, the City was in the midst
of forming a Highway 111 Business Committee and certainly they should
weigh in as well. Additionally, she felt that taking action and making a
determination relating to Land Use this evening, wouldn't be a prudent way
to act.
Councilman Tanner moved to, by Minute Motion, continue this matter until such time
as more information has been received from the Envision Palm Desert Strategic Planning
Process. Motion was seconded by Spiegel and carried by a 4-1 vote, with Benson voting
NO.
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E. REQUEST FOR AWARD OF CONTRACT TO COVE ELECTRIC, INC., IN
THE AMOUNT OF $58,525 FOR THE EL PASEO MEDIAN ELECTRICAL
RETROFIT PROJECT (CONTRACT NO. C33030, PROJECT NO. 970-14)
(JOINT CONSIDERATION WITH THE SUCCESSOR AGENCY TO THE
PALM DESERT REDEVELOPMENT AGENCY).
Mr. Greenwood noted this item and the following item on the agenda are
companion projects. This item is to upgrade the electrical system in the
median on El Paseo in order to support upgraded and additional holiday
decorations on El Paseo. He said this was a good proposal and staff
recommended approval.
Councilman/Director Spiegel moved to, by Minute Motion: 1) Award subject contract
for the El Paseo Median Electrical Retrofit Project to Cove Electric, Inc., Palm Desert,
California, in the amount of $58,525; 2) authorize the Director of Finance to set aside a
10% contingency for the project in the amount of $5,852.50; 3) appropriate $64,377.50
from Unobligated General Funds to Account No. 400-4614-454-4001 - Capital Reserve
Landscape; 4) authorize the City Manager to draft a Reimbursement Agreement between
the City and Successor Agency, authorizing payment from any Successor Agency funding
source available for this purpose (Contract No. C33030A); 5) authorize the Mayor to
execute the contract agreement. Motion was seconded by Benson and carried by a 5-0
vote.
F. REQUEST FOR APPROVAL OF A PROPOSAL BY HOLIDAY LIGHTING
DESIGN & DECOR TO MANAGE PHASE TWO OF PALM DESERTS
HOUDAY DECOR PROGRAM IN THE AMOUNT OF $70,871.16
(CONTRACT NO. C32980A).
Mr. Aryan stated the Council approved Phase 1 of the Holiday Decor
Program at the last City Council meeting, which included retaining the
existing decor, refurbishing some of the inventory, and purchasing new
garland wraps for the street lights on the El Paseo median. Phase II involved
taking it one step further in lighting 25 deciduous trees and 54 palm trees,
and paying for their installation, removal, and storage.
Councilman Spiegel moved to, by Minute Motion: 1) Approve a proposal by Holiday
Lighting Design & Decor, Palm Desert, Califomia, in an amount not to exceed $70,871.16
to manage Phase Two of Palm Desert's Holiday Decor Program per the subject contract;
2) authorize City Manager to execute any contractual documents related to Phase Two of
the City's Holiday Lighting and Decoration Program; 3) appropriate $70,871.16 from the
Unobligated General Fund for costs not budgeted in FY 2013-2014 for Palm Desert's
Holiday Decoration Program Phase Two and transfer to Account No. 110-4310-433-3910
for this purpose. Motion was seconded by Weber and carried by a 5-0 vote.
..r
IMO
Mayor Harnik thanked Councilmam Spiegel and Mayor Pro Tem Benson for
all the work done on the Holiday Decoration Program.
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REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 22, 2013
XV. CONTINUED BUSINESS
A. REQUEST FOR DIRECTION REGARDING UTILITY UNDERGROUNDING
IN PALM DESERT (Continued from the meetings of December 13, 2012,
April 25, and June 27, 2013).
Senior Management Analyst Dave Hermann noted this item has been before
the City Council several times. He said there are some residents currently
engaged in trying to form a Utility Undergrounding District and the two issues
have become confused. Staff is asking the Council to endorse the current
policy with minor alterations that will make the policy better. Those changes
are to allow the residents to form their own district and include a meeting with
Southern California Edison (SCE) to have them weigh in on the feasibility of
the district formed by those residents. The City held a meeting with SCE on
July 11 and it worked well.
Councilman Spiegel moved to, by Minute Motion, retain Palm Desert's existing
process for the creation of Utility Undergrounding Assessment Districts with the following
modifications: 1) Allow neighborhoods to determine their own feasible and cost-effective
District boundaries without regard to previous City -established Districts; 2) direct staff to
include an additional step to the City's established District formation process that provides
Southern California Edison with an opportunity to evaluate the technical feasibility and
economic efficiency of a proposed District prior to a formal engineering study.
Mr. Hermann explained staffs recommendation was to endorse the current
policy with the two changes outlined in the staff report, which are to allow the
residents to form their own district boundaries and to allow Southern
Califomia Edison to weight in on whether those boundaries are feasible and
efficient.
Councilman Tanner seconded the motion and it carried by a 5-0 vote.
XVI. OLD BUSINESS
A. REQUEST TO RECEIVE AND FILE TERRA NOVA PLANNING &
RESEARCH'S REVIEW OF THE CITY OF CATHEDRAL CITY FISCAL
IMPACT ANALYSIS FOR THE THOUSAND PALMS COMMUNITY DATED
JULY 25, 2013.
Ms. Aylaian stated this item was the analysis requested by the City Council
to compare and contrast two studies performed in recent years regarding
potential annexations. One was a study performed by Ralph Anderson &
Associates for the City of Cathedral City as they looked at potentially
annexing areas in their sphere of influence north of Interstate 10. The other
study was done last year by Terra Nova Planning & Research, which took a
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REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 22, 2013
look at potential annexation of land in the Palm Desert's Sphere of Influence
(SOI') north of Interstate 10 and some land in the Cathedral City's SOI. In
Council's packet is an analysis of the two different studies identifying the
results and differences between the two studies.
Mayor Hamik stated she would recuse herself from this item and the following two
items on the agenda and left the Council Chamber.
Ms. Aylaian stated she will provide an overview as to why the results were
so different. The Cathedral City study showed a very positive cash flow to
the General Fund should It annex Thousand Palms and other areas north of
Interstate 10. In contrast Palm Desert showed a very negative cash flow for
annexation of areas north of Interstate 10. The following are the main
differences: 1) Study Areas - A map was displayed showing outlined in red
the area Cathedral City studied, which is 9,700-acres, which contains all of
Thousand Palms. Outlined in green is the area Palm Desert studied that
included Sun City and areas with commercial businesses south of 38"'
Avenue but north of the freeway, along with certain areas in the far east end
of the SOI of Cathedral City; those areas include the Classic Club, Xavier
Prep School, and undeveloped residential lands. The only overlapping area
between the two studies is shown and outlined in yellow. She said Cathedral
City's Study covered greater territory than Palm Desert's Study, which is the
greatest explanation as to why the differences were so dramatic. 2) The
Level of Service - The level of service delivered to the residents is very
different between the two cities. When it comes to police services, the cost
per capita, Palm Desert spends about $339 per person per year. Cathedral
City, who provides their own and does not contract with the Riverside County
Sheriff's Department, spends $262 per capita per year. If one applied the
Palm Desert numbers just to the Thousand Palms population, which is about
7,700 residents, it will account for almost $600,000 in difference annually.
General govemment services between the two is also very different. General
govemment services would include everything from the Finance Department,
City Clerk's Department, Parks Maintenance, Public Facility Maintenance,
and Animal Control, etc. For Govemment Services, Palm Desert spends
$277 per person per year and Cathedral City spends about $86. Cathedral
City in recent years has gone through some dramatic budget reductions, and
they are providing services to what she would classify as minimal level.
Again, in taking the Thousand Palms population and applying this difference
to the number of people there, the difference is $1.5 million per year.
Roadway Maintenance is another big difference per square acres, but
because the overlap is so little and the areas are so different, the amount of
roads is different. If one looked at the amount of money Palm Desert spends
on the miles of road in the area studied, compared to Cathedral City, Palm
Desert spends about $250 per acre per year, whereas Cathedral City
maintains it roads at a lower level, spending about $151 per acre per year;
3) Sales Tax - She said sales tax falls into three categories. One is that
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REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 22, 2013
Cathedral City has an extra 1 % sales tax greater than Palm Desert, which
was passed through a ballot initiative. Secondly, Cathedral City's study had
huge amounts of vacant land where they had to determine what sort of land
use would be build out 20, 30, or 50 years from now, and also determine the
revenue and costs associated with it. The study reflected an assumption that
the vacant land would have 3-million square feet of commercial use from
which they would get sales tax; she couldn't argue if it was right or wrong.
However, it was a large amount of square footage of commercial space and
it could drive a lot more sales tax than Palm Desert's Study, which had
relatively little commercial area; 3) Method of Calculation - The manner in
which Cathedral City's Study calculated the sales tax was incorrect, because
they looked at the sales tax per capita. In other words, they looked at what
the residents were currently spending and made the assumption they are not
spending any money in Cathedral City for their retail goods now, but that as
soon as the area is annexed, they will. She didn't believe annexation will
change people's shopping patterns, and certainly in the first initial five or ten
years of their study, it is not expected that the figures Cathedral City
projected are realistic or will really occur, which was a difference of $600,000
in their revenue department. The next area of difference is Transient
Occupancy Tax (T.O.T.) She said Cathedral City's T.O.T. is now at 12%
while Palm Desert is at 9%. More significantly, Cathedral City study
assumed there would be six more hotels than are included in Palm Desert's
Study. Further, Cathedral City's Study didn't indicate the exact number of
rooms anticipated or the exact average daily rate, but guess estimates were
between 1,300 and 1,400 additional rooms at the 12% T.O.T., which would
produce greater revenue than what Palm Desert anticipated in its study.
Palm Desert looked at new hotels being produced near the Classic Club and
in the area south of 38Th Avenue, but close to the freeway. The final
difference between the two cities is the Utility Tax. Cathedral City has a 1 %
Utility Tax, which would produce revenue to their General Fund where Palm
Desert's Study did not. She said those were the reasons why any fiscal
analysis of the two cities would be so different. She said Nicole Criste from
Terra Nova & Research was available to provide a presentation in more
detail. In conclusion, she asked the Council to receive and file the study,
stating there was no reason to take action at this. point. She said Cathedral
City has not filed an application with the Local Agency Formation
Commission (LAFCO) to annex; they are still studying the issue. She
understands Cathedral City has a subcommittee working on it and they have
not yet made a recommendation to their Council. When and if Cathedral City
decides to apply to annex the area north of Interstate 10, the Palm Desert
City Council could use the information in Terra Nova's analysis to help them
decide if they want to take a position regarding Cathedral City's application
to either oppose or support it, or remain neutral as it went through the public
hearing process in front of LAFCO.
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Councilman Spiegel asked if Cathedral City was aware that their study was
flawed and their figures weren't correct.
MS. NICOLE CRISTE, Terra Nova Planning & Research, responded they did
not provide a copy of the report to them.
Ms. Aylaian stated she communicated and forwarded the report to a
representative of Cathedral City's staff, as well as forwarding the report to
the Interim City Manager and City Clerk; therefore, they have the information.
She was advised by their staff member that part of the reason their
subcommittee had not made a recommendation to their City Council, is
because they wanted to see the results of Palm Desert's analysis. Their
consultant, within the last week or so, amended their report and identified
one other error, which made a difference of about $525,000 annually,
decreasing the revenue originally reported.
Councilman Spiegel moved to, by Minute Motion, receive and file the report from
Terra Nova Planning & Research, Inc. — this information will be available for use when and
if Cathedral City files an application with the Local Agency Formation Commission
(LAFCO) to annex the Thousand Palms area. Motion was seconded by Tanner and
carried by a 4-0 vote, with Hamik ABSENT.
B. REQUEST TO RECEIVE AND FILE LAND USE AND FISCAL IMPACTS
REPORT FOR THE NORTHERN SPHERE OF INFLUENCE (EXPANDED)
AND BERMUDA DUNES AREA, CONTINUING DISCUSSION AND ACTION
ON THE MATTER TO THE MEETING OF SEPTEMBER 12, 2013.
Mayor Hamik recused herself from this item and was absent from the
Council Chamber.
Councilman Spiegel moved to, by Minute Motion, receive and file "Land Use and
Fiscal Impacts for the Northem Sphere of Influence (Expanded) and the Bermuda Dunes
Areas," prepared by Terra Nova Planning & Research, Inc., and continue the matter to the
meeting of September 12, 2013, at which time a staff recommendation will be made and
public testimony on the matter can be heard. Motion was seconded by Tanner and carried
by a 4-0 vote, with Hamik ABSENT.
Ms. Aylaian asked if the Council was interested in having a Study Session
on this issue before the next City Council meeting, because it was relatively
a complex study.
With City Council concurrence, the motion included the scheduling of a Study
Session on Thursday, September 12, 2013, at 2:00 p.m.
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REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 22, 2013
C. CONSIDERATION OF PRIOR RECOMMENDATION TO FORWARD
CORRESPONDENCE TO AGUA CAUENTE BAND OF CAHUILLA INDIANS
REGARDING LAWSUIT AGAINST COACHELLA VALLEY WATER
DISTRICT (CVWD) AND DESERT WATER AGENCY (DWA).
Mayor Hamik recused herself from this item and was absent from the
Council Chamber.
Mr. Wohlmuth stated the Legislative Review Committee considered taking
action on the lawsuit Agua Caliente Tribe filed against the three water
agencies in the Coachella Valley. The Legislative Review Committee
approved a draft letter in concept, which was approved by Council at the July
meeting. Subsequently, Mayor Hamik determined she had a potential conflict
of interest on this matter and did not sign the letter. The draft letter was to
be sent to Chairman Grubbe of the Agua Caliente Tribal Council. Although
the letter was not signed, The Desert Sun did an article on it that prompted
Tribal staff and chair to request a copy, which was forwarded to them.
Therefore, in order to resolve this issue, the item was placed back on the
agenda for the Mayor Pro Tem to sign the letter.
Councilman Spiegel asked if there was a response from the Tribe.
Mr. Wohlmuth said he called Mr. Tom Davis of Agua Caliente staff
requesting to meet to discuss the lawsuit with the water agencies, but that
didn't work. He said a meeting has not been scheduled nor did he have a
written response.
Councilman Spiegel moved to, by Minute Motion, authorize the letter to be signed
by the Mayor Pro Tem. Motion was seconded by Tanner.
Mayor Pro Tem Benson stated that since the Legislative Review Committee
met on this issue, and with all the publicity, she felt Palm Desert should stay
out of this mess. She said Palm Desert hasn't met with the Tribe and it didn't
know their side of the issue, and signing the letter would be taking the side
of the water agencies; therefore, she wasn't comfortable signing the letter.
She said Palm Desert has never gotten involved in other people's lawsuits,
and it should stay out of it and let them settle it.
Councilman Tanner stated the only reason he was in favor of sending a letter
in support, is because it was an issue of determining who owns the water
rights.
Mayor Pro Tem Benson said that's why she believed the Council should
meet with the Tribe to see what their side of the story is, and if the Tribe
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REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 22, 2013
didn't want to meet, the Council wouldn't have the full story to be protesting
against a lawsuit it didn't know what it was about.
Councilman Tanner said the letter was to initiate an open dialogue.
Mayor Pro Tem Benson replied the letter is asking the Tribe to withdraw the
lawsuit, which specifically states, "We support an end to this lawsuit." She
reiterated she believed Palm Desert should stay out of it.
Councilman Spiegel commented the water rates will double.
Mayor Pro Tem Benson said that was unknown, because the Council hadn't
heard the Tribe's side of the story.
Mr. Wohlmuth stated Jim Barrett, General Manager of Coachella Valley
Water District Jim Barrett and their staff met with Agua Caliente. He noted
Mr. Barrett was available to answer questions. He said if the letter didn't
represent the view of the Council, he can modify it at the direction of the
Council before having the Mayor Pro Tem sign it.
Mayor Pro Tem Benson said if the Council was going to send a letter, it
should be a request to meet with the Tribe to hear their side of the issue.
MR. JIM BARRETT, General Manager, Coachella Valley Water District,
stated he didn't have any compelling reasons to provide, except that they are
in opposition. He said CVWD has been filed against by the Tribe, and what
the Tribe is asking for he could give nor did he have the authority to provide
water rights to them. The only mechanism CVWD has is for the Tribe to
withdraw the complaint in order to discuss the matter further with them or
proceed to allow the Courts to make a determination. He said CVWD is
represented by legal counsel, but he couldn't get into their actual strategy.
He said CVWD has asked to meet with the Tribe, and he has had indirect
discussions through others and Tom Davis. He said Mr. Davis has asked
that any discussion between CVWD Board Members and their Tribal
Leaders take place after additional staff discussions with legal counsel, but
CVWD Board refused to do so. He said it didn't seem to further CVWD's
interest to again meet with staff and attorneys, because they are at a
difference of opinion on who owns what and what rights the Tribe may have
over that of the general population.
Councilman Spiegel asked what would happen to Palm Desert residents
water bill if CVWD lost the lawsuit.
MR. BARRETT replied the bill will increase, but it was hard to say by how
much. In the absence of any real determinations by the Courts, CVWD has
taken steps to import supply to replenish water that is taken out for drinking
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REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 22, 2013
water purposes. For the most part, CVWD and Desert Water Agency rely on
ground water to provide drinking water, using imported water from the
Colorado to recharge. The total domestic drinking water demands are Tess
than 100,000 acre feet per year, and CVWD along with Desert Water
Agency, import enough water to cover that demand. If CVWD is not allowed
to pull water out of the ground and serve it, an alternative distribution system
would have to be developed, which would first treat the Colorado River water
coming in. Therefore, there would be a tremendous amount of infrastructure
required, and that infrastructure cost would be borne by the rate payers. It
was not inconceivable to see rates double or triple. He didn't know how much
of that would be placed on the commodity side, which is what people pay for
the actual water they use, and how much is placed on the monthly service
charge, the base rate, which is independent from actual water usage. He
said there is a fixed cost just for having a meter. Additionally, because of the
need to develop a treatment plant and to change the infrastructure
requirements, most of the increase would be placed on the base, which is
currently $7 a month, but that amount can be doubled, tripled, or it can be
even more.
MS. BARBARA deBOOM, President CEO of the Palm Desert Chamber of
Commerce, stated a letter of support was requested by both sides, and after
checking with their legal counsel for their legislative committee, they were
informed this was a judicial issue and not legislative; therefore, they will not
be taking sides on this matter.
Councilman Spiegel suggested changing the letter to state Palm Desert City
Council couldn't make a decision until it met with the Tribe and making an
invitation to meet by a certain date.
Mayor Pro Tem Benson said that would be acceptable.
Responding to question, Mr. Wohlmuth agreed to modify the letter
accordingly as requested.
Councilman Spiegel moved to, by Minute Motion, authorize staff to amend the draft
letter and the Mayor Pro Tem to sign and forward to the Agua Caliente Band of Cahuilla
Indians, seeking an opportunity to meet with them in a reasonable period of time to solicit
their input about the matter before the City takes a formal position. Motion was seconded
by Tanner and carried by a 4-0 vote, with Harnik ABSENT.
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XVII. PUBUC HEARINGS
A. CONSIDERATION OF ACTIONS RELATING TO PRESIDENT'S PLAZA I
PROPERTY AND BUSINESS IMPROVEMENT DISTRICT FOR FISCAL
YEAR 2013-2014 (Continued from the meeting of July 11, 2013).
Senior Management Analyst Ryan Stendell stated Presidents Plaza I
Property and Business Improvement District (BID) Is bound by Portola
Avenue on the east and Larkspur Lane on the west. The BID is the financial
instrument, if approved by the property owners, that allows the City to assess
property and act in a property manager role for the parking lot area. The
services currently provided through the BID include: Landscape and lighting,
both maintenance and repair; daily waste hauling, in some cases waste
hauling is happening twice a day; minor street and asphalt repairs; and street
sweeping. Staff is proposing to reform the BID for an additional three years,
and at the end of that period, staff will be ready to go on a major
improvement project to the parking area as discussed in the Study Session,
with potentially some bond proceeds. At that time, the City will need to
reform the District with the property owners, four hopefully, to ensure there
are monies in the District to adequately maintain the new parking lot or any
new improvements in perpetuity to avoid ending up in the same position it is
today with a parking lot in the state of disrepair. He asked the Mayor to open
the Public Hearing and recess this item to the end of the Public Hearing
section of the agenda, at which time staff will return to read the results from
the ballots received.
Mayor Hamik declared the public hearing open and invited anyone wishing to
address the City Council on this matter to come forward at this time. No public
testimony was offered, and she left the public hearing open.
Mr. Stendell stated that unfortunately the BID FAILED by a margin of 63%
voting NO, and 37% voting YES. The YES votes tallied to $30,492.18, and
the NO votes tallied to $52,246.90, which are the results that will be entered
into the Resolution. He said the question now is what happens next,
because the City managed those parking lots, and they are joint -use
facilities. He said the irrigation went across several property owners and it
includes landscaping, lighting, trash services, and street sweeping. In short,
he will be busy with public outreach on how the property owners believe they
will handle this now that they voted it out. He said the City had six months
worth of cash on hand of the property owners that it can stretch over the next
fiscal year, because the opportunity to get on this tax cycle had passed. Of
the $185,000 annual budget, approximately $137,000 of it was waste
hauling, the largest expense. The City's immediate challenge is to figure out
exactly how much money it had and how it was going to stretch it. He said
he will meet with Mr. David Hermann to get some outreach with the property
owners. He wasn't sure where this went wrong, because staff has a great
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REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 22, 2013
working relationship with the property owners. He said staff will be looking to
solve this problem in a couple of different ways. One would be for the
property owners to explain how they will do it differently, or once they realize
potentially what has happened, they will return for next fiscal year.
Mayor Hamik stated there seemed to be a lot of misunderstanding, as she
received a call from someone that thought this was a new assessment, and
questioning why the City was doing it.
Mr. Stendell stated the scary thing with these assessments, and the same
went for Alessandro Alley, is that it comes in the form of a tax. He said these
were not popular times for someone to open up a bill and read tax
assessment. He's had to explain to callers this was the method by how the
City acted as the property manager, asking them how they would propose
to do otherwise. At that point, some folks agree with keeping it the same and
others were not willing to go down that path, which is how the NO ballots
resulted today. Responding to question, he said the BID was reformed in
2008 for five years, and prior to that, it had been established for at least 15
years.
Mayor Hamik believed there was a gross misunderstanding of this
assessment with people not realizing it was the same thing rolling over.
Mayor Hamik declared the public hearing closed.
Councilman Spiegel moved to waive further reading and adopt Resolution
No. 2013 - 51, declaring results of the property owner protest ballot proceedings conducted
for the proposed President's Plaza I Property and Business Improvement District
Assessments commencing with Fiscal Year 2013-2014:
Results:
$30,492.18 - Yes (37%)
$52,246.90 - No (63%)
FORMATION QF THE DISTRICT FAILED.
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REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 22, 2013
B. CONSIDERATION OF REQUEST BY BURRTEC WASTE AND RECYCUNG
SERVICES FOR APPROVAL OF THE ANNUAL PRODUCER PRICE INDEX
(PPI) AND COUNTY OF RIVERSIDE GATE/DISPOSAL FEE INCREASES,
AND APPROVAL OF THE NEW COMMERCIAL RATE.
Ms. Riddle stated Burrtec is requesting its annual rate increase, and based
on questions received for this item, she researched its history, which she will
share with Council for its consideration. With regards to past rate increases,
in July 2006 Burrtec purchased Waste Management; therefore, prior to 2006,
the City was serviced by Waste Management. In 2006, the residential rate
for a 96-galion container was $10.43. In 2007, the rate was $10.58, for a
15-cent rate increase. In 2008 the City and Burrtec negotiated a Franchise
Agreement, and as part of that Agreement, Burrtec couldn't request a rate
increase for the first two years. Burrtec didn't request a rate increase until
2010, and in 2010 to 2012, the City offset the rate Increases through AB939
(Recycle Fund). Therefore, for the past five years, residents have not
incurred a rate increase. Of those five years, commercial customers did not
experience a rate increase because of the Franchise Agreement. This year
in 2013, the residential rate increased 19 cents, and the commercial rate for
a 3-yard bin serviced three times a week is $3.68. Results of offsetting the
residential to residents went from $1.87 per ton to $1.06 per ton or 81 cents.
If the City offset the commercial rate increase, it would be 78 cents.
Therefore, if the City chose to offset both the residential and commercial, it
would be a total of $1.90 per ton. She said the City only received $1.87 per
ton from AB939, which was a 3-cent difference that the City couldn't cover.
Councilman Spiegel asked how much was in the Recycle Fund.
Ms. Riddle answered there was approximately $4 million give or take;
however, the City expends $600,000 to $800,000 per year. She said at
$1.87, the City received about $75,000 a year, which didn't even cover what
the City expended during the year. The other item Burrtec requested was a
new Commercial Recycle Fee, which according to the Franchise Agreement,
Section 4.6.7 it states, "At such time as the City or State mandates
commercial recycling, they have the authorization to request such a fee to
be established." As part of AB32, Commercial Recycling and Recycling for
Multi -family Housing was mandated, and Burrtec is requesting the
implementation of a new Commercial Recycling Fee that is set at 35% of the
trash rate, which is reflected in Exhibit 3 of the staff report. She offered to
answer any questions.
Councilman Spiegel asked about the 5-year agreement with Burrtec.
Ms. Riddle explained the 5-year agreement expires in May 2015, but it has
an option for a 4-year extension.
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REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 22, 2013
Councilman Spiegel asked if Burrtec was entitled to receive 1.2% for the
Producer Price Index (PPI) based on the Agreement.
Ms. Riddle explained the rate increase is based on the PPI, but the
Agreement states Burrtec has the authority to request a rate increase, and
Council shall review and approve as part of the good -faith negotiation.
Councilman Spiegel stated he didn't believe the Council had a choice but to
approve, because it was part of the Agreement.
Ms. Riddle said the Council did have a choice, and it was based on a
good -faith negotiation, because the Agreement didn't state, "shall" approve.
Mr. Wohlmuth stated the PPI or rate increase by Burrtec was warranted, and
they will get the increase as it has for the past four years. The issue is where
does the money come from to grant that PPI increase. He said the PPI will
be granted through the AB939 Fund or the residential and commercial
customers.
Councilman Spiegel stated Council was then considering two items, one was
the PPI and the other was the commercial recycle fee, which were two
different things. He asked where did the 35% recycle fee fit in.
Ms. Riddle replied it was included in Section 4.6.7 of the Franchise
Agreement when it was last negotiated.
Councilmember Weber asked about the statement made in a letter by the
Palm Desert Resorter where it states, "We continue to generate revenue for
the City." She asked if that was a factual statement.
Mr. Riddle answered yes, stating the City received the Franchise Fee at 8%,
and the AB939 Fee, which is the $1.87 per ton.
Councilmember Weber again referencing the Palm Desert Resorter letter,
stated it questioned why the City didn't utilize the profits to assist
homeowners in paying this increase. Additionally, she asked if the current
balance was $4 million, what was it two years ago.
Ms. Riddle responded the City has managed to keep a $4 million balance in
that account. However, that will not always be the case, because in the past
the City has been able to obtain grants to offset a good portion of the
programs, but those grants were no longer available. Additionally, as of this
year, the City is expending more money out of that account for street
improvements, because of the trucks that utilize City streets, etc. Further
responding, she said the increase for residential was 19 cents per resident
for a 96-gallon container, and a smaller container would be Tess. She went
29
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REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 22, 2013
MR
on to say that when residents realize the increase is only 19 cents, they tend
to be okay with it. This year staff had to send a notice to all the residents toil
and businesses, because it was advised to follow the Proposition 218
process. However, the notice created confusion for people, and based on
that, there were more calls than the City would have ever received.
Councilman Tanner stated he believed there were two parts to the matter.
One was to increase the residential and then the commercial pick up. The
other part was the commercial recycling fee. He asked if there was any
leeway to postpone the fee until the year 2015.
Ms. Riddle read from the Franchise Agreement, which states, "The City and
Company may revisit the free Commercial Recycle Program and a possible
fee assessment annually. The City and Company shall negotiate in good
faith a fee at such time as the City or State mandates mandatory recycling."
Therefore, the City shall negotiate in good faith, and Burrtec will have the
option of making the request for the fee annually.
Councilman Tanner asked what was the typical cost for commercial
recycling.
Ms. Riddle explained the fee is typically based on a 3-yard bin with service
three times a week, and that cost is $232.85, which would be the new rate,
and the new Commercial Recycling Rate (35%) being proposed for a 3-yard
bin serviced three times a week is $81.50.
Councilman Tanner asked if that meant it was $232.85 plus $81.50.
Ms. Riddle answered yes.
Mr. Wohlmuth stated that arguably if municipal solid waste is being picked
up three times a week, one would be reducing municipal solid waste by the
amount of recycling; therefore, one can reduce the waste cost, but pay the
recycling cost. The theory is that if one recycled more, you pay less in
waste, and pay 1/3 of the cost for recycling. In other words, if you throw
away 100 pounds of trash, and in Palm Desert where it is at 73% recycling
now, but he didn't know that any commercial account would get at 73%, but
assume there is a 50% achievement, one would reduce the amount of
service in municipal waste and increase recycling, but until a business tries
it, the difference is unknown. He said there is a Tipping Fee as part of the
rate on waste, but not on recycling, and for every pound one recycles, it's a
pound that didn't have to be picked up in waste.
Councilman Tanner stated he would like to come up with a dollar value,
because he didn't want to start taxing commercial accounts a lot of money.
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REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 22, 2013
Councilman Spiegel stated that for the last three years, the City has picked
up the rate increases from the money it received from Burrtec, which is what
he will probably recommend.
Councilman Tanner responded the funds received did not meet the
expenses for street improvements and the other programs mentioned by
Ms. Riddle.
Councilman Spiegel pointed out there is $4 million in the account.
Ms. Riddle stated the City expends $600,000 to $800,000 a year.
Responding to question about the initial deposit into the Franchise
Agreement, she said there was no initial deposit; the account has grown over
time. Further responding, she said funds are used for the Recycle Binney,
education programs for residential and commercial businesses, hazardous
waste programs, shredding events for both residential and businesses, used
oil events, e-waste (electronic waste), which is available to residents and
businesses. She noted the City picked up the first $300 each year for
businesses. She went on to say funds are also used for street improvements
and purchases like benches that are made out of recycled material. She said
all the programs mentioned are in addition to what waste management
provides. She said if the programs are not offset through AB939, its a fee
the City would have to cover, these hazardous materials are prohibited in the
landfill; therefore, the City has to have some type of program in place for
them.
Mayor Hamik declared the public hearing open and invited public testimony
FAVORING or OPPOSING this matter.
DR. ED KRAUS, Pebble Beach Circle, Palm Desert, stated he was
representing the Palm Desert Resort & Country Club Homeowners
Association, which is a commercial establishment because of the commercial
aspects of it. He is also a member of the Envision Palm Desert, so he brings
solutions to the events as well as concerns. One concern is that service
organizations and utilities bring up rate increases during the summer months
when many citizens are not available. He pointed out, that in a previous item
on the agenda, Councilman Tanner and Mayor Hamik advocated waiting
until others could weigh in, stating that if Council waited for those out of town,
the Council Chambers would be packed with concerned constituents. He
said Councilman Spiegel suggested using the profits that the citizens
generated by doing a great job of recycling and using some additional
monies. He said Ms. Riddle mentioned it costs the City an additional
$100,000 a year above from what it received from recycling.
Ms. Riddle clarified the City expends $600,000 to $800,000 for various
programs.
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REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 22, 2013
Mayor Hamik pointed out that amount was not what the City received back
from recycling.
DR. KRAUS said he understood the City received $75,000 back from
recycling that the citizens generated, and the City added $100,000 to pay
Burrtec for the cost of collections. He said with $4 million in reserves divided
by $100,000 could provide for many years.
Ms. Riddle explained the City didn't give Burrtec money back. She said the
City receives AB939, which generated about $75,000 a year. Out of the
$4 million, the City expends between $600,000 and $800,000 a year for the
various programs in place, i.e., the shredding event.
DR. KRAUS stated that if that was the case, with the $4 million in reserve,
and additional monies received each year, he believed the City had four or
five plus years to keep running the program without raising the rates on
residents and HOA's. He quoted Mayor Hamik's statement that was printed
in the newspaper, where she stated she didn't anticipate passing previous
rate hikes onto homeowners and would absolutely subsidize the rate at the
current level. Therefore, he understood the City will continue to subsidize
one part of it this year.
Mayor Hamik agreed, stating she didn't believe anyone would vote to go
back.
DR. KRAUS asked how this item can be placed on hold until more citizens
returned for them to weigh in. He said he was mostly from the City of
Newport Beach where everything was collected and sorted by them. In other
words, they do everything Palm Desert does, and then they sort out the trash
and recyclables. He wondered what Burrtec would charge if they had to do
everything themselves. He said the citizens can decide not to recycle,
because there isn't a benefit by paying more. The bottom line is that the City
assist the HOAs by utilizing some additional revenue from the commercial
collections to offset the proposed rate hike requested by Burrtec.
Mayor Hamik asked why was Palm Desert Resort considered commercial.
DR. KRAUS responded the HOA has bins that are collected on a commercial
basis. He said trash and recyclables are picked up at the homes and
Clubhouse three times a week, and they are charged additional money to do
so. He said the Resort is also charged for additional pick ups, and if Burrtec
finds one pile of trash in the recycled bin, a full fee is charged for them to
separate it. He said they needed help from the City to ensure they didn't
overpay.
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REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 22, 2013
Ms. Riddle explained Dr. Kraus was referring to contamination, in that if the
recycling is not done correctly, and after a certain percentage of
contamination is in the recycled bin, Burrtec charges the full rate, because
it becomes trash. She said it was imperative that residents and businesses
are educated on how to properly recycle in order to reap the full benefit. She
said citizens have to buy into it and participate in order for recycling to work.
Responding to question about trash pickup three times a week, she said the
Resorter is in a different situation, stating that most HOAs have a clubhouse
with a bin or two that's picked up for the use of the clubhouse and restaurant.
However, the Resorter has an extra need, because they have a lot of
weekenders, and additional bins are provided for the purpose of allowing
residents to drop off their trash before they leave for the weekend.
Councilmember Weber made the comment that those from out of town will
not be aware of the City's rules so those problems will exist.
Ms. Riddle stated recycling is an ongoing educational situation. For instance,
a commercial business will have changeovers with managers and
employees, so ifs an ongoing situation that will always have to be dealt with.
Mayor Hamik pointed out that commercial recycling is now State mandated.
Ms. Riddle agreed, stating it was not a City mandate, but a State mandate.
She said the City had a free recycling program, and even at free, it was hard
to get participation. However, once a business buys into it, they start to see
how easy and convenient it is, but to get them to buy in can be difficult.
MS. GAIL BROEKER, Manzanita, Palm Desert Greens Country Club, stated
19 cents per resident was not a big deal. She said the Club has 1,920
residents, which includes the dumpsters for the clubhouse, recreation center,
and other things. Her concern was the timing of this whole thing, because
if the Council makes a decision, the rate increase will go into effect in ten
days. In ten days, their HOA will have to come up with nearly $5,000 to their
budget, which has been finalized and monthly bills have been prepared,
affecting their personal budgets as well. She said a special assessment will
have to take place, possibly costing each resident $5 a month. Responding
to question, she said their HOA also fell under the commercial category, but
just for the 1,920 residents they will have to come up with $4,161 to a budget
that's already been finalized. Additionally, there are residents that are not in
town, and when they return, they will encounter a special assessment
because the rates will go up.
Mayor Hamik asked if the residents were billed individually.
MS. BROKER responded the HOA pays a monthly homeowners assessment
on behalf of each resident. She reiterated her concern was that this rate
33
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REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 22, 2013
increase would take effect September 1. Responding to question about the
HOA's monthly bill, she said it was a flat fee/due of $2.30, which covered all
sorts of things.
Mayor Hamik stated that as an individual resident it would go up 20 cents a
month or $2.40 a year. She asked Ms. Broker if her budget was based on
a fiscal year.
MS. BROEKER answered yes, stating that ten days was short notice to put
out a special assessment for people to pay the extra $2 or whatever it was
going to be, but it was the timing that she found objectionable.
Ms. Riddle stated the letter to the residents provided a 45-day notice, and it
was sent out in July.
Councilmember Weber stated that would have been after most people are
doing their budget.
Ms. Riddle stated the time frame has been in existence for many years,
stating notice was given on Thursday, August 22, 2013, but unfortunately,
she didn't have the exact date the letter was mailed.
Councilman Spiegel stated for the past three years the City used the revenue
in th AB939 Account to fund the increase. He agreed it will cost the City a
little bit this year, but the fund will still have $4 million in the account.
Councilman Spiegel moved to, by Minute Motion, approve all rate increases and for
them to be paid from the AB939 Fund. Motion died for a lack of a second.
Councilman Tanner stated he was having a difficult time understanding the
35%. He invited Mr. Frank Orlett to explain the 35% and how it's
determined.
MR. FRANK ORLETT, District Manager at Burrtec Waste & Recycling
Services, explained that as an example, a resident that currently has no
recycling and has a trash container going twice a week paid $178. If this
resident added a recycling container, which typically is a 3-yard bin, it would
drop their trash level to once a week and recycle to once a week, the rate
would then be $134 for a savings of $44 a month. He said that savings
affected the 35%. Residents with existing recycling service will see a rate
increase. He said the challenge for Burrtec is that they are now faced with
a State Mandate requiring them to recycle. So if Burrtec is doing all the
commercial recycling for free, it's asking Burrtec to give half its business for
free and stay in business, which is difficult to do. Currently, on Palm Desert
trash rates, 71 % of the trash rate is a service fee Burrtec received. He said
they recognized they received some value from the recycling commodities,
34
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REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 22, 2013
so they took 35% of that rate. Therefore, it was $71 for a 3-yard bin three
times a week, $34 for trash, $34 for recycling. The rates are competitive to
what they are for the Coachella Valley from a recycling standpoint. He said
all the other cities in the Coachella Valley have that charge for commercial
recycling. The City of La Ouinta is the only one that didn't have it.
Councilman Tanner said the mandate will push the commercial recycling
concept for those that currently didn't have recycle bins. He said the 35%
now made sense to him.
MR. ORLETT pointed out that Palm Desert Greens and the Resorter are on
a Master Bill Account, so they will see a 14-cent increase, not 19 cents,
because they get a discount.
MS. DEE PEDEN, President of Palm Desert Resorter Association, stated
she wasn't concerned with the residential increase whether it was 19 or 14
cents, but she had a major concern with the Commercial Recycling Fee. She
said in the past they didn't pay for commercial recycling, and now they will
pay $200+ a month, stating it was always free.
Ms. Riddle explained the City has always had a free commercial recycling
program, which Burrtec offered at no charge. However, this is a new fee
affecting commercial businesses that generate 3-yard bins or more, stating
the Commercial Recycling Program is mandated by the State. She said
cities are tasked with implementing the program, but it was State mandated.
Mr. Wohlmuth added that up to this point, commercial recycling was
voluntary with the hope that if one recycled in their commercial business, it
would cut their solid waste bill, but it was completely voluntary. The State
passed the law one'/2 years ago and made it mandatory. The City now has
to inform everyone that it's mandatory, which triggered the provision within
the Franchise Agreement requiring the City to negotiate a rate for mandatory
recycling services citywide.
MS. PEDEN asked if commercial businesses were now required to recycle.
Mr. Wohlmuth answered yes.
MS. PEDEN said their General Manager made some calculations and
Teamed their fee would be more than $200 a month/$2,400 a year, which
didn't sound like a lot of money, but their budget was already in place.
Mayor Hamik stated it sounded like the City had a lot of homeowner
associations dealing with the same issue.
35
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REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 22, 2013
Ms. Riddle clarified that if the new Commercial Recycling Fee is approved,
it will need to be paid. However, the goal is for people to recycle more,
pushing their waste over to the recycled side in order to cut down on their
trash bill, because the recycle rate is less than the trash rate. She said if one
currently has a 3-yard bin picked up three times a week, and they start
recycling 50% of their waste, the trash bill will be cut down at least 1/4 to
have it serviced twice a week, and have the recycling picked up once a
week.
Councilman Spiegel reiterated that he moved to, by Minute Motion, approve all rate
increases and for them to be paid from the AB939 Fund. Motion died for a lack of a
second.
Mayor Pro Tem Benson said this was a very confusing issue, because she
wondered how long AB939 funds will last if the City kept paying for the
increases. One suggestion would be to pay only the commercial for this year
to give people the chance to budget for it next year, because that seemed
to be the problem mentioned by two speakers.
Councilman Spiegel agreed with the City picking up the fee this year, and
then review it next year when residents are in town.
Councilman Tanner agreed; however, if the City picked up the increase for
the 35% commercial accounts, he questioned what incentive there was to
start separating recyclable waste and regular waste. He said the City had to
make it perfectly clear this was the only year it would pick up the fee, and
encourage everyone to get educated on recycling. He said that unless there
was a substantial decrease in disposable waste verses recyclable waste, the
City couldn't offset the cost anymore, because there was only so much
money in the coffers, and the City won't use General Funds. The City will
use the Recycling Program (AB939), but it won't be able to offset future
increases.
Councilman Spiegel stated that perhaps Mr. David Hermann can do a nice
article in the Brightside about it.
Councilmember Weber stated she appreciated the surprise to the people if
they didn't get the letter in time before their budgeting, but it seems they
realize they need to budget for increases anyway. Further, she agreed with
Councilman Tanner that hopefully people will be encouraged to recycle to
save money, whereas a free ride didn't encourage anyone to save, recycle,
or do anything. Therefore, she was uncomfortable with voting to subsidize
one more time, and she understood the increase was a surprise, but that
was not a choice of the City; it is a State mandate. She would like to see
AB939 to be used for the education of recycling, because it's through
education that anything is going to change, not through subsidizing.
36
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REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 22, 2013
Mayor Hamik pointed out AB939 Recycling Fund is used for shredding,
which is provided to residential and businesses, along with curb side pick up,
hazardous waste disposal, and many other programs that other communities
didn't provide. She said residents are used to it, because Palm Desert has
historically done a great job. Also, since 2009, Palm Desert has picked up
all the increases, so residents haven't had to feel the increase. She too is
troubled by the fact that people are operating more often than not on a fiscal
year, so they didn't have an opportunity to budget for an increase.
Additionally, grant funds for important programs are drying up, so to say
there is $4 million that can be given away is not acting in a prudent or fiscally
responsible way. If the City continues to subsidize this issue, there will
continue to be fewer funds next year. She liked the idea of having the
education in place, however, she genuinely believed the City has done a
disservice by not giving them ample opportunity to budget. Her suggestion
was to find a way for all commercial establishments to encourage their
residents to offset the garbage/waste pick-up cost by recycling, which was
imperative. She would support paying for the change this year, but it didn't
feel good to her to do so. She said if there was an emergency, everyone will
expect to have the roads fixed and public safety personnel taking care of all
the residents. She said for next year, everyone needs to be prepared to
absorb those cost themselves and hopefully by implementing a recycling
program.
Councilman Spiegel restated his motion to, by Minute Motion, approve all rate
increases and for them to be paid from the AB939 Fund. Motion was seconded by Tanner.
Councilman Tanner encouraged Burrtec to do their own commercial
publication to all commercial accounts the City is now picking up, which is the
35%, and inform them this was not going to last.
Ms. Riddle asked if the motion was to approve the rate increase for
commercial and residential, and to offset it through AB939, and also
approving the new Commercial Recycle Fee. Because, once the new
Commercial Recycle Fee went into effect, it would be ongoing.
Mayor Hamik asked if AB939 covered only the offset.
Mr. Wohlmuth explained the AB939 fee for both residential and commercial
is $1.87 per ton, the offset is 3-cents per ton collected. However, the $1.87
did not cover the 35% Commercial Recycle Fee; it is a separate issue. He
said the 35% Commercial Recycle Fee didn't have a dollar value yet,
because it's never been mandated. Therefore, the City couldn't cover the
35% recycle fee for commercial out of the AB939 fund.
Councilman Spiegel asked it that separate issue can be continued and
considered separately.
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REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 22, 2013
Councilman Tanner asked why were all the fees packaged together.
Ms. Riddle responded that was the request that came in by Burrtec, and they
requested the Commercial Recycle Fee at the same time the PPI increase
was due. She said Burrtec couldhave requested them separately, but they
didn't.
Councilman Tanner stated that with regard to the good faith negotiation, if
the City decided it will pick up that 35%, will it have to be negotiated again
in 2015.
Ms. Riddle said that if the Council chose to approve the new Commercial
Recycle Fee, it would go into effect for the duration of the Franchise
Agreement, which expires May 2015, but Burrtec has a four-year extension
option they would like to take advantage, putting the Agreement out to 2019.
With the negotiation of a new agreement, whatever time frame that is,
everything that's in the Franchise Agreement can be revisited.
Councilman Tanner stated he didn't know how the 35% Commercial Recycle
Fee can be included in this motion, because it was an extremely open item.
Ms. Riddle responded the Council could take a vote to approve a new
Commercial Recycle Fee based on 35% of the trash fee, stating the rate
structure is in Exhibit 3 of the staff report. She said if Council wanted to
consider this item further, this particular portion can be continued to discuss
it further with Burrtec. However, she believed the residents and businesses
would have to be re -noticed with regards to the Commercial Recycle Fee.
DR. KRAUS commented he was not in favor of the 35%, because it was like
writing a blank check and the dollar value was unknown.
Mayor Hamik pointed out the amount to be paid could be a reduction.
Mr. Wohlmuth explained the 35% of the waste was unknown, because it's
based on the type of service. He said the City didn't know if service is two
or three times a week, 3-yard, 4-yard, or 6-yard bin. The rates are known,
but the service level is what is unknown.
DR. KRAUS said this was good information, because he can return to his
HOA and create more recycle than trash. However, that meant more
recycling bins, which would cost more money, given that he has more than
1,000 homes.
Mr. Wohlmuth explained every pound of recycling reduced his bill by 65%.
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REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 22, 2013
Ms. Riddle stated that for instance, if a resident had four 3-yard bins serviced
weekly, and then started to recycle 50% of the waste, the resident will then
have two trash bins serviced three times a week and two recycle bins
serviced three times a week, the resident would then pay less, unless the
residents started generating more trash.
With no further public testimony offered, Mayor Hamik declared the public hearing
closed.
Mayor Hamik pointed out that in all the cities in the Coachella Valley, Palm
Desert was by far the least expensive for commercial and residential, which
was worth noting. She asked if the fee increase for the residential and
commercial can be considered separately from the new Commercial
Recycling Fee.
Mr. Wohlmuth stated that based on comments from the Council, he
recommended the Council cover the increase with AB939 funds for the
commercial waste and residential waste and recycling, but not the 35% rate
for commercial recycling. He said the Commercial Recycle Fee will be
unknown until the City can help businesses and HOA's figure the number
based on their program. Otherwise, the City would be spending money
without knowing the cost.
Councilman Tanner stated someone had to pick up the cost, and how long
will the City put this to the test, because Burrtec is looking for 35% on the
recycled.
Mr. Wohlmuth clarified Burrtec is looking for 35% of the solid waste cost to
be converted to recycling cost. The concept is that if one recycles the overall
waste bill is reduced.
Councilman Tanner stated he thought the City couldn't approve two of the
pieces without agreeing on the third piece, which is the 35%.
Ms. Riddle stated she spoke with Mr. Orlett and he indicated that a rough
estimate of what the City would pick up annually was $400,000 annually.
Therefore, that would significantly cut into the $4 million in the AB939
account, depending on how many years it would subsidize the fee. She said
the City could probably do it for one year, but that amount could increase to
about $500,000; however, that was just a rough estimate.
Mayor Pro Tem Benson stated that based on that estimate, the AB939
Account would be gone in a hurry.
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REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 22, 2013
Mayor Hamik stated she didn't believe everyone was straight on the motion
and it was probably best to continue this matter to address it appropriately,
and It may warrant a study session.
Ms. Riddle recommended the Council vote to approve to offset the
residential and commercial rate through AB939, continue the new
Commercial Recycle Fee, re -notice residents and businesses on that aspect,
and schedule a study session to clear up any questions.
Councilman Spiegel amended his motion and moved to: 1) By Minute Motion,
approve the proposed 1.2% PPI rate increase and 1.85% Gate/Disposal Fee Increase from
$40.54 to $41.28 per ton; 2) waive further reading and adopt Resolution No. 2013 - 54,
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
ResidentiaVCommercial Recycling contained in Contract No. C27410 - Solid Waste
Management Services; 3) by Minute Motion, continue public hearing consideration of the
new Commercial Recycle Fee set at 35% of Trash Rate, including scheduling a Study
Session on this matter for 2:00 p.m. prior to said Council Meeting (September 26, 2013);
4) by Minute Motion, apply the PPI Rate and Gate/Disposal Fee increases to the City's AB
939 Fund instead of resident and commercial billing accounts for FY 2013-2014. Motion
was seconded by Tanner.
Councilman Tanner encouraged Burrtec to meet with Council or through the
Study Session to explain the 35% and make it clear, and if the dollar amount
was $400,000, it will either be a City obligation or the commercial clients.
Ms. Riddle questioned the noticing requirements for residents and
businesses.
Mr. Erwin stated the public hearing was noticed, and staff is just continuing
the item; therefore, this item didn't have to be re -noticed.
Mayor Hamik noted the extra time will give residents an opportunity to be in
attendance.
Ms. Klassen pointed out the item will have to be continued to September 26,
2013, since there was a study session scheduled for September 12.
Mayor Hamik called for the vote, and the motion carried by a 5-0 vote, including
continuance of the matter to September 26, 2012.
With City Council concurrence, Mayor Harnik called for a recess of the
meeting at 6:20 p.m. She reconvened the meeting at 6:30 p.m. and followed
up on Section XVII - Public Hearings, Item A - President's Plaza I, which was
recessed in order for staff to count ballots received for the proceedings.
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REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 22, 2013
C. CONSIDERATION OF THE APPROVAL OF A COMPREHENSIVE UPDATE
TO THE PALM DESERT MUNICIPAL CODE, TITLE 25 - ZONING, Case
No. ZOA 13-223 (City of Palm Desert, Applicant).
Principal Planner Tony Bagato stated this was the update of the Zoning
Ordinance that staff presented at two study sessions. This has been work
of more than 18 months working with a consultant. He said this was only a
comprehensive update that basically reorganizes and restructures the
existing document to make it user friendly; it has no policy changes. He said
there are three separate hearing items that will come later in September,
because there are some modifications from the Planning Commission, which
staff intends to present to Council after the new Code is adopted.
Mayor Hamik asked if this was the case where the text was converted into
matrixes.
Mr. Bagato answered yes, stating images were created and inserted, along
with new items mandated by State Law for the Housing Element. He noted
the Planning Commission recommended approval. Mr. Bagato displayed
samples of some of the changes made to the Ordinance, showing how more
images are provided to make it user friendly. The Ordinance includes the
following required Code updates: High Density Housing Overlay; Mixed Use
Overlay District; Affordable Housing and Density Bonus Provisions; Bicycle
Parking Requirements, part of CalGreen; Clean Air Vehicle Parking
Requirements, part of CalGreen; Americans with Disabilities Act reasonable
accommodations; homeless shelters permitted in industrial areas by right;
Transitional and Supportive Housing is to be allowed similarly to other group
homes; and definitions.
Mayor Hamik declared the public hearing open and invited anyone wishing to
address the City Council on this matter to come forward at this time. With no public
testimony offered, she declared the public hearing closed.
Councilman Tanner moved to waive further reading and passed Ordinance
No. 1259 to second reading, approving Zoning Ordinance Amendment No. 13-223,
amending Palm Desert Municipal Code Section 25 - Zoning in its entirety. Motion was
seconded by Weber and carried by a 5-0 vote.
Responding to question, Mr. Bagato explained September 12 will be the
second reading of this Ordinance, and at the end of September he will bring
to the City Council the other three items.
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REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 22, 2013
XVIII. REPORTS AND REMARKS
A. CITY MANAGER
1. City Manager Meeting Summaries for the Period of July 1 - August 9,
2013.
Mr. Wohlmuth noted the Meeting Summaries report contained in the
agenda packets and offered to answer questions.
With City Council concurrence, the Meeting Summaries were received and filed.
2. Report on United Way Campaign and Employee Payroll Deductions.
Mr. Wohlmuth referred to his report in the packets, resulting from
Councilmember Weber's request at the last Council Meeting. He said
she believed there was a certain amount of unfaimess and bias
toward the United Way, with the City processing employee payroll
deductions for donations to United Way annually. He confirmed that
the City of Palm Desert has been participating in the United Way
fund-raising campaign for over 20 years; essentially, it being the only
non-profit for which the City has processed payroll deductions. Since
the request to study it further, employees were polled for their desire
to continue to participating in United Way payroll deductions, with 26
saying they would, 36 saying they would not, and 1 saying that they
would like to donate to other non -profits through payroll deduction.
Further, he said this United Way donation processing through payroll
deduction represents approximately $500 of staff time per year, with
the Finance and Human Resources Departments being affected in
the processing. He pointed out that another important factor to
consider is that the current campaign runs through February 2014.
His report was intended to be for informational purposes only since
we are in the midst of the current campaign year and discontinuing
it at this time would likely be harmful to both employees and the
United Way. He hoped that City Council would use this information
in January 2014 to help make a decision about continuing the
program prior to the next campaign.
Councilmember Weber advised that it was not the issue of employees
donating to the United Way, because they have every right to give
that organization a canceled check to make a donation from their
personal bank account. Further, she said she was not opposed to
United Way coming in to make a presentation to employees; however,
other non -profits may also like to come in and make such a fund-
raising presentation.
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Responding to the question raised, Mr. Wohlmuth said this was an
option available for other non -profits. But he said as City Manager,
he would have to analyze exactly how much time would be necessary
for something like five non -profits going through payroll deduction.
Councilmember Weber interjected that she intended that there be no
further payroll deduction processing. Her concept was that
employees would provide the organization of their choice a canceled
check to deduct funds from their personal bank accounts in order to
make donations.
Mr. Wohlmuth agreed with this concept, pointing out that then the only
staff time involved would be having the Human Resources
Department organize a charity lunch event for this purpose.
Mayor Hamik proposed categorizing this as a Suggested Item for a
Future City Council Meeting in January 2014.
In response to question about what other cities are doing regarding
United Way fund-raising, Mr. Wohlmuth believed all cities participate.
Mayor Hamik added that she personally participates, it's an easy way
to give, and she was aware that the other cities and CVAG do as well.
She felt another consideration is determining what non -profits get
invited to make presentations, which is another whole issue.
Mr. Wohlmuth said he would favor having a charity fair -type of event
for employees, where employees could go around to the different
tables and make their choices for such donations. Although, he
commented that this type of an event may not be that successful,
based on prior experience with health fairs at the lunch hour.
Mayor Hamik observed that there is a lot of coordination required for
that type of an event, so she was skeptical that it would cost less of
staff time.
Mr. Wohlmuth offered to place this item on the agenda for Council
consideration prior to the new United Way Campaign in
January 2014.
Councilmember Weber agreed, adding that United Way was welcome
to come in and do their presentation, but donations would no longer
be collected through Palm Desert employee deductions, because she
believed it represented the City providing fund-raising for an
organization.
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REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 22, 2013
Mr. Wohlmuth stated he was unsure about allowing an organization,
such as United Way, to make a presentation. But he reiterated that
perhaps the City could coordinate a charity fair, with employees being
able to go from table to table to inquire about the non -profits and
decide about making donations. Whereas, if presentations were
made by all the non -profits, it would take up many, many lunch hours,
and he wouldn't recommend or support that concept.
With City Council concurrence, the United Way Campaign and Payroll Deductions
report was received and filed.
3. Roadway Project Updates
Mr. Wohlmuth reported:
a) Highway 111 - will be complete next week, after about eight more
days of paving. The contractor is moving along quite well and the
project is going well.
b) Monterey Avenue - more challenging, working on coordinating
scheduling between Public Works and College of the Desert (COD),
which starts its next term on Monday, August 26. The project will not
be complete by that time; there is additional work of constructing
catch basins, and a final 2' lift of the warm asphalt to be laid.
Potentially, two lanes will be open at least northbound and at least
one, possibly two, southbound. The project also continues along Fred
Waring at two locations, with a final warm asphalt lift on the slip ramp
to Monterey from Fred Waring currently scheduled to be complete
about two weeks after COD starts the fall semester. He added that
the road will be open before all final details are complete, such as
constructing aprons around the raised manhole covers.
c) Cook Street Sinkhole - more troubling news here regarding the
cave-in at Sheryl Avenue earlier this week where CVWD's (Coachella
Valley Water District) 33-inch clay sewer pipe that runs from the north
to the Whitewater Treatment Plant has been compromised. Ws been
taking sand with it to the Plant and created a void under the
pavement, which gave away. CVWD's been very attentive to the
matter, bringing in a specialized contractor to run a camera down the
pipe. It was initially thought to be a 200-foot compromise, but today
looks to be as much as 700 feet. Therefore, they need about two
weeks to confirm how much of the sewer pipe is compromised,
followed by it being dug up and replaced, taking at least another 30+
days. Mr. Wohlmuth went on to say this meant that there would be
significant impacts to Cook Street over the next month. He'd spoken
with PDHS Principal Hicks today and asked what he'd like the City to
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do to make it easier for their first day of the 2013-2014 school year on
September 3, so that collaboration will continue. Further, the City will
continue to work closely with CVWD, and General Manager Jim
Barrett has indicated that perhaps they could install diamond -plate
over the current sinkhole to facilitate traffic flow until they're ready to
order and start laying the replacement pipe. He assured Council that
staff will continue to closely monitor this situation.
B. CITY ATTORNEY
None
C. CITY CLERK
None
D. PUBLIC SAFETY
1. Fire Department
None
2. Police Department
None
E. MAYOR AND MEMBERS OF THE CITY COUNCIL
1. jti y Council Requests for Action:
None
2. City Council Consideration of Trgvel Requests and Reports:
None
3. city Council Committee Reports:
None
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REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 22, 2013
4. City Council Comments:
a) Mayor Hamik expressed thanks to everyone for their patience
during Palm Deserts road construction projects this summer.
5. Suggested Items for Future City Council Meeting Agendas:
a) United Way Campaign for February 2014 to be brought back to
Council in January.
XIX. ADJOURNMENT
Upon a motion by Spiegel, second by Weber, and 5-0 vote of the City Council,
Mayor Hamik adjourned the meeting at 6:55 p.m.
ATTEST:
RACHELLE D. KLASSEN, CITY CLERK
CITY OF PALM DESERT, CALIFORNIA
46
AN C. HARNIK, MAYOR
MO
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