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HomeMy WebLinkAbout2013-12-12MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING THURSDAY, DECEMBER 12, 2013 CIVIC CENTER COUNCIL CHAMBER 73510 FRED WARING DRIVE, PALM DESERT, CA 92260 I. CALL TO ORDER - 3:00 P.M. Mayor Harnik convened the meeting at 3:00 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 Jan C. Harnik Also Present: John M. Wohlmuth, City Manager David J. Erwin, City Attorney Rachelle D. Klassen, City Clerk Russell Grance, Director of Building & Safety Lauri Aylaian, Director of Community Development Martin Alvarez, Director of Economic Development Janet M. Moore, Director of Housing Mark Greenwood, Director of Public Works Frankie Riddle, Director of Special Programs J. Luis Espinoza, Assistant Finance Director Stephen Y. Aryan, Risk Manager Bill Sullivan, Asst. Chief, Palm Desert Police/Riverside Co. Sheriffs Department Grace L. Mendoza, Deputy City Clerk Upon inquiry by Mayor Harnik, Ms. Klassen confirmed 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. III. ORAL COMMUNICATIONS - A (CLOSED SESSION ITEMS) None MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING DECEMBER 12, 2013 IV. ADJOURN TO CLOSED SESSION Request for Closed Session: A. Conference with Legal Counsel regarding significant exposure to litigation pursuant to Government Code Section 54956.9(d)(2): Number of potential cases: 2 Mr. Erwin sought the City Council's consideration of adding, by four -fifths vote, an item of Closed Session consideration that had arisen following posting of the agenda for today's meeting, as follows: B. Conference with Legal Counsel regarding existing litigation pursuant to Government Code Section 54956.9(d)(1): 1) City of Palm Desert v. Suresh Shah, et al., Riverside County Superior Court, Case No. INC 1301195 Upon a motion by Spiegel, second by Weber, and 5-0 vote of the City Council, the aforementioned Item B(1) was added to today's Closed Session agenda. With City Council concurrence, Mayor Harnik adjourned the meeting to Closed Session at 3:02 p.m. She reconvened the meeting at 4:00 p.m. V. RECONVENE REGULAR MEETING - 4:00 P.M. A. REPORT ON ACTION FROM CLOSED SESSION. None VI. PLEDGE OF ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA - Councilman Van G. Tanner VII. INVOCATION - Mayor Pro Tem Jean M. Benson VIII. ORAL COMMUNICATIONS - B MR. LOTHAR VASHOLZ, resident of Pineknoll, Palm Desert, and representing St. John's Lutheran Church, Washington Street, Palm Desert, came forward today to announce an important program his church was sponsoring to help families in the area, "Single & Parenting." Currently, he related that it is estimated around 50% of all households are single parent, which he felt was a disturbing fact with all the challenges families face — child care, adjusting when there's a medical problem, taking care of finances, and all the scheduling required for children of varying ages. 2 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING DECEMBER 12, 2013 He said the "Single & Parenting" Program addresses such issues, referring to the flier he provided to the Council, and the 90-minute sessions begin with a professional video that features persons who have been or are single parents. Following the video, he said there was a guided discussion program and smaller breakout work groups. He added that the Program is in place in over 300 churches throughout the U. S., with St. John's Lutheran the only one currently offering it in the Coachella Valley and hoping that more will also address the issue. He said the Program is held at their Church, midway between Fred Waring Drive and Hovley Lane on the west side of Washington Street. He invited anyone interested to call them at (760) 345-2122 for more information; child care is provided, as is a light snack, with the only cost to attendees being $15 for a booklet that includes the current evening's session and five study follow-up sessions during the week. He added that it's a very complete package; it was tested over the summer and found to be extremely effective in helping single parents deal with the myriad of issues and problems they encounter. MS. CAROL LANG, Rango Road, Cathedral City, CA, stated that she is the Residential Home -stay Coordinator for Green Planet, whose parent company is the Cambridge Institute of International Education of Massachusetts. She said they specialize in bringing quality international students to quality private high schools by providing quality host families to house these students during their stay as they fulfill their goal of preparing to attend American colleges and universities. Today, she was bringing this information to the City Council and community of Palm Desert in hopes that host families would come forward to take advantage of this cultural opportunity. She noted that she'd had the good fortune of hosting a Chinese student when her children were young, and it was a very rewarding and wonderful experience. She said that students will be coming from China to attend Palm Valley School in Rancho Mirage, arriving mid -January and staying through mid -June 2014. Each host family, which can be as few as one or as many as make up a family, will be given a generous monthly stipend. Requirements included that the student be given a private bedroom and that the family provide both meals and transportation to/from Palm Valley School. She added that they also offer a referral bonus to anyone making a referral of a friend or family member, providing they are approved by Green Planet and chosen by one of the incoming students. She said Green Planet's website is www.gphomestay.com, and she left fliers about the program for Council and the public who were interested, offering to answer any questions. MS. ELEANORA MALACHOWSKA, owner of Karen's Cafe, Country Club Drive, Palm Desert, said she was here in response to a violation notice she received today for a sign posted on Country Club Drive. She went on to say Karen's Cafe is located on the interior of a business park, which has no exposure to the tremendous traffic on Country Club Drive. She said that exposure brings her a lot of customers, adding that she receives great reviews on Yelp* and other media outlets, and people are always grateful for the sign being on Country Club because they had difficulty finding her location otherwise. She asked City Council to reconsider the 3 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING DECEMBER 12, 2013 Temporary Sign Program that was previously approved when she came forward to ask for such a couple of years ago. She was grateful for that approval but didn't believe the economic situation had changed much since that time. Therefore, she sought continuation of the program that was previously in place so she could continue to do a great business that makes both tourists and locals happy. Mayor Harnik noted that Ms. Malachowska had provided both her address and telephone number on the speaker card so staff could be in touch with her. MS. CATHERINE RIPS, resident of Indian Wells and Director of Development for Angel View, Miracle Hill, Desert Hot Springs, CA, said she was standing in for her Board President, Dr. Walt Johnson, who had a last-minute conflict. On behalf of the Board and the clients served, she thanked the City Council for its recent approval of their 2013-2014 CDBG (Community Development Block Grant) Request. She said they were extremely grateful for the City's support of Angel View's Day Program expansion; the growing Program will soon serve 75 adults with developmental disabilities, most of whom use wheelchairs for ambulation. She added that clients are accepted from throughout the Coachella Valley, including residents of Palm Desert. Specifically, she said they'd requested assistance with funding for a back-up generator, and thanks to Palm Desert's contribution, they were in the process of going out for bids. She noted that the process is fairly complicated, and she heartily commended City staff for their assistance with it — Frankie Riddle and Miriam Miller in the Special Programs Department. She went on to say that Palm Desert's generous support would allow Angel View to add another layer of safety to their emergency preparedness efforts; the health and well- being of their clients is directly impacted by the CDBG funding and was greatly appreciated. For almost 60 years, Angel View has provided 24-hour residential care to children and adults with disabilities. They are about to celebrate their 60`h anniversary in 2014 and wouldn't have been able to accomplish as much as they have without great community partners, like the City of Palm Desert. She added that they've also had great success over the past year and half with their newest program, Angel View Outreach, which assists families struggling to care for children with disabilities. All services are provided at no cost, and she encouraged anyone who knew of someone who would benefit to please contact them. She observed that later on today's agenda was an item to accept comments on new projects for CDBG funds; she wasn't here to pitch for any of those but wanted to thank the City for the previous grant and to invite Council to come by and tour the Day Program expansion any time it's convenient, and to wish them happy holidays. MR. MICHAEL SMITH, Santa Rosa Way, Palm Desert, came forward today to address an issue with a SunLine Bus Route. He referred to the set of three maps he'd provided for each Councilmember. He stated that Route 53 comes from Town Center Way to Fred Waring Drive, down to San Pablo Avenue, then to Highway 111; continues on to Cook Street, making a left turn there, and takes Cook to Gerald Ford, where it makes a u-turn and comes back down Cook Street. He 4 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING DECEMBER 12, 2013 said that route is going to be extended to go over 1-10 to Xavier High School, then come back up Cook Street; he was okay with this change. However, the one he did want to address is the one of when the bus turns right on San Pablo Avenue, as they've always done, where there's a bus stop. Then they want to go up one block and turn left on Catalina Way and pick up folks from Joslyn Center, as they haven't had any bus service previously, and it's hard for seniors to get to the existing bus stop. He said now they want to then go all the way down to Portola Avenue, then up to Highway 111, which he felt was going to create a nightmare for all the people who've been used to getting on that bus anywhere in that area and going up to Highway 111. Therefore, he added that it will no longer stop at San Pablo Avenue/ Highway 111; it will no longer stop at the small inlet just past the Elephant Bar, and all the people used to that service are going to be cut out. And if they want to get back to El Paseo or the vicinity, they'll have to go all the way up to Highway 111 and come back on a Highway 111 bus. Yet he felt there was an easy solution, referring to the first page of his maps. He suggested coming from Fred Waring, turning onto San Pablo, and then onto Catalina. He'd personally walked the route, he'd driven a Yellow Cab and had gone through the bus training, and felt he had enough personal knowledge to state that this was a "no-brainer" — to turn left on San Pascual and turn left on Santa Rosa, go back to Santa Rosa and continue up that way. He said there was absolutely no problem at all for the bus to negotiate that route — the streets are wide at the two turn points, there is no traffic congestion problem, and he hoped to get some support for this proposal. He added that he offered two plans — one that goes down to Fred Waring on San Pascual and comes back with the lights, with the third page of his illustrations showing the bus coming back from Cook Street and a suggested route to go back to Joslyn Center. He hoped someone would have time to look at this suggestion and see that it was a sensible solution without cutting everyone out that normally travels that way. Councilman Spiegel offered that he was the Council's liaison to SunLine Transit Agency and would ensure this information gets to them. He noted that the next meeting will be held mid -January, and he would be sure to see what the response is to Mr. Smith's inquiry. MR. SMITH appreciated the offer, as he felt what he'd described was accurate. He commented that SunLine has already placed orange signs on the bus stops indicating the change would be made in January. He went on to refer to the previous speaker who introduced the Single & Parenting Program. He said that it's estimated that only one child in 10 makes it to age 18 in a home with two parents. Therefore, he was currently building a website to solicit support for a ballot measure in California as soon as possible, an initiative for residents of the State seeking repeal of "no-fault" divorce. He didn't think anyone fully understood how damaging "no-fault" divorce had been to society unless they took the time to read a book by Dr. Stephen Baskerville of Patrick Henry University entitled, "Taken Into Custody," in which Dr. Baskerville completely outlines the damage done to our society over the last 40 years due to the imposition of "no-fault" divorce. 5 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING DECEMBER 12, 2013 IX. AWARDS, PRESENTATIONS, AND APPOINTMENTS A. PRESENTATION TO RECOGNIZE ELLIS C. ("CLEVE") LANGFORD FOR HIS SERVICE TO THE CITY OF PALM DESERT AND ITS CITIZENS' SUSTAINABILITY COMMITTEE. Mr. Langford was unable to be present for today's meeting. The engraved crystal clock, thanking him for his time on the Committee, will be forwarded separately. B. PRESENTATION TO RECOGNIZE THE PALM DESERT HIGH SCHOOL WATER POLO TEAM WINNING THE 2013 CALIFORNIA INTERSCHOLASTIC FEDERATION (CIF) CHAMPIONSHIP. On behalf of the entire City Council, Mayor Harnik recognized the 2013 Palm Desert High School Boys' Water Polo Varsity Team, asking each to introduce themselves before the Council and audience, and extolling their extremely successful season that culminated in the 2013 CIF Championship. She also congratulated Head Coach Greg Garczynski and Assistant Coach Brendan Meaney, along with Palm Desert High School Principal Robert Hicks and Athletic Director Darol Salazar. She then presented each team member with a t-shirt from the Palm Desert Aquatic Center as a small token of the City's pride in their accomplishments this year. C. PRESENTATION OF PROCLAMATION DECLARING THURSDAY, DECEMBER 12, 2013, AS "CHARLIE AND LINDA GARBARINI DAY" IN THE CITY OF PALM DESERT AND RECOGNIZING THEIR SIGNIFICANT CONTRIBUTIONS TO THE ANNUAL "TOYS FOR TOTS" DRIVE. On behalf of the entire City Council, Mayor Harnik presented the framed proclamation to Mr. and Mrs. Garbarini in honor of their tremendous generosity and willingness to serve their community in many ways through numerous organizations. In their honor, the Garbarini's were given a standing ovation by the City Council and audience members. D. PRESENTATION OF PROCLAMATION CELEBRATING THE 20TH ANNIVERSARY OF CAFE DES BEAUX-ARTS IN THE CITY OF PALM DESERT. On behalf of the entire City Council, Mayor Harnik presented the framed proclamation to Cafe Des Beaux-Arts Owner Didier Bloch and congratulated both his longevity, his tremendous respect and admiration for his staff, and for his contributions to the City over these years. 6 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING DECEMBER 12, 2013 E. PRESENTATION TO THE CITY COUNCIL BY 2013 GOLF CART PARADE CHAIRMAN MIKE HARDIN. Mr. Hardin, owner of The Lock Shop, Palm Desert, and Ms. Katie Stice, Palm Desert Area Chamber of Commerce Vice President of Membership Services, presented Mayor Harnik and the City Council with an engraved plaque to recognize the City's support for the Golf Cart Parade, which he said has been instrumental in its longevity and growth. Attendance is currently estimated between 15,000 - 17,000 people on the street that day; it was a tremendous way to start of the City's season and an event that appeals to all ages, from the very young to the senior set. He went on to say they appreciate everything the City does for them, noting that this year's goal was to attract some larger float entries — the City stepped up and built a tremendous miniature -scale version of the Civic Center float that was awarded the Mayor's trophy, which he also presented to the City Council at this time. Ms. Stice noted the photographs they'd provided, which were included in today's agenda packet. She highlighted that this year's Grand Marshal was Barbara Sinatra, and there were a record number of entries at 95, much bigger and better with 12 golf booths as well, and a fantastic marketing campaign. She referred to a miniature Lamar billboard that she brought with her that had been displayed in two locations in the Coachella Valley, along with a marketing packet, including poster and more. She went on to say that their organization gets all the kudos from residents and visitors afterward in appreciation for all of the work, and she read several that were very complimentary to the event and to the City. She said 2014 would mark the Golf Cart Parade's 50`h year — making it the longest -running parade in the Coachella Valley. F REORGANIZATION OF THE CITY COUNCIL 1) SELECTION OF MAYOR AND MAYOR PRO-TEMPORE Mayor Harnik stated it's been the tradition in Palm Desert to rotate the Mayor annually, and then the Mayor Pro Tem steps in as the next Mayor, which is Jean M. Benson. Mayor Pro Tem Benson thanked Mayor Harnik for doing a fantastic job this past year as Mayor, stating it was a pleasure to serve under her as Mayor Pro Tem. She said last year when the City reorganized, it had a new dimension on the Council where two new Councilmembers were elected, which threw her back in the rotation as Mayor Pro Tem; having served as Mayor for six terms, she thought she would never have to do it again. She said the City has always 7 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING DECEMBER 12, 2013 been a leader, it has participated in many events that other cities didn't, and Palm Desert deserved a Mayor that can continue in that tradition. Due to the fact she broke her hip a couple of years ago, she is unable to go to a lot of places where the Mayor is expected to be seen to carry on in the Palm Desert tradition; therefore, it was her pleasure to nominate the next Mayor. Mayor Pro Tem Benson nominated Van G. Tanner for Mayor of the City of Palm Desert for the coming year. Nomination was seconded by Councilman Spiegel and carried by a 4-0-1 vote, with Tanner ABSTAINING. Councilman Spiegel nominated Susan Marie Weber for Mayor Pro Tem of the City of Palm Desert for the coming year. Nomination was seconded by Tanner and carried by a 5-0 vote. a) Comments by Outgoing Mayor and Mayor Pro-Tempore. Councilmember Harnik stated it was a privilege to work with the entire Palm Desert team, because staffs commitment and pride in their work was evidenced in the results of everything seen around the City. She thanked Councilmembers Benson and Spiegel for their guidance and mentorship this past year, and Councilmembers Tanner and Weber for their support and commitment to the City. She said it had been an amazing and productive year with everyone quickly creating wonderful ways to address and deal with the loss of Redevelopment. Redevelopment. Citywide, there have been significant improvements in infrastructure, Westfield Mall has a whole new look with new retailers and restaurants; El Paseo is refreshed from one end to the other, noting the holiday lights in the medians are gorgeous; retail stores, restaurants, and events are invigorated, and Fashion Week El Paseo was a perfect example; commencement of the first freshman class at Cal State University in Palm Desert; and the City began its Strategic Planning process, looking at where the City will be in the next 20 years. In conclusion, she thanked everyone for their support and involvement with this incredible year. Councilmember Benson concurred with Councilmember Harnik in thanking City Staff, stating Palm Desert had the best staff of any City in the Coachella Valley. She said she appreciated working with them for the past 30+ years, and they deserved a lot of the credit for the City's success, because Palm Desert staff worked together. She reiterated it was a pleasure to serve the City and hoped to do her best for the coming year, and the one project she would like to see finished by the end of 2014, was the Carlos Ortega Villas. 8 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING DECEMBER 12, 2013 b) Comments by Newly Selected Mayor and Mayor Pro-Tempore. Mayor Tanner stated that in December 2012 he came onto the City Council from the Planning Commission, and this year he's taking over a larger seat that Jan Harnik is vacating. He said this past year was an eye-opener, but it's been a great experience and only hoped to do as good a job as Jan. He went on to thank and recognize his wife of 40 years Judy Tanner, his son Phillip and wife Amber, who is expecting a child, and son Robert and wife Jessica, who is also expecting a child, and their 21-months old baby boy. He also recognized his sister Cynthia Williamsberg (Sp?), and the person who helped him a great deal with the election process Pam Williams. Mayor Pro Tem Weber joined her colleagues in thanking Jan Harnik for stepping in to serve as Mayor without the opportunity of serving as Mayor Pro Tem, yet she set an exemplary standard. She was pleased to watch and learn how Jan handled everything and now she will learn from Mayor Tanner as well. She thanked everyone for this opportunity and was extremely grateful to be on the Council. She said she's been in Palm Desert since 1980 and has admired the team that has provided the benefits and opportunities the City had to offer. She also thanked everyone in attendance for being here this evening. X. CONSENT CALENDAR A. MINUTES of the Regular City Council Meetings of November 14 and November 28, 2013. Rec: Approve as presented. B. CLAIMS AND DEMANDS AGAINST THE CITY TREASURY - Warrant Nos. 107, 108, 113, 114, 118, 121, and 122. Rec: Approve as presented. C. CLAIM AGAINST THE CITY (#732) by Erik Diehl, a Minor, in the Amount of $2,000,000. Rec: By Minute Motion, reject the Claim and direct the City Clerk to so notify the Claimant's representative. 9 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING DECEMBER 12, 2013 D. COMPLIANCE ANALYSIS AND INVESTMENT REPORT for the Month of October 2013 (Joint Consideration with the Successor Agency to the Palm Desert Redevelopment Agency). Rec: Receive and file. E. APPLICATION FOR ALCOHOLIC BEVERAGE LICENSE by Palm Desert Shell, 77920 Avenue of the States, Palm Desert. Rec: Receive and file. F. CITY COMMITTEE AND COMMISSION MEETING MINUTES. 1. Art In Public Places Commission Meeting of September 18, 2013. 2. Audit, Investment & Finance Committee Meeting of October22, 2013. 3. Citizens' Sustainability Committee Meeting of August 28, 2013. 4. Library Promotion Committee Meeting of June 19, 2013. 5. Marketing Committee Meeting of September 17, 2013. 6. Public Safety Commission Meetings of September 11 and October 9, 2013. Rec: Receive and file. G. LETTER OF RESIGNATION from Jennie Rayner - Palm Desert Marketing Committee. Rec: Receive with very sincere regret. H. REQUEST FOR ACCEPTANCE OF WORK for Contract No. C33030 - El Paseo Median Electrical Retrofit Project (Project No. 790-14) (Cove Electric, Inc., Palm Desert, CA) (Joint Consideration with the Successor Agency to the Palm Desert Redevelopment Agency). Rec: By Minute Motion, accept the work as complete and authorize the City Clerk to file a Notice of Completion for the subject project. I. REQUEST FOR AUTHORIZATION to Issue a Call for Entries Seeking Artists for the 2015/2016 El Paseo Exhibition. Rec: By Minute Motion, authorize staff to issue a call for entries seeking artists to exhibit in the 2015/2016 El Paseo Exhibition. 10 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING DECEMBER 12, 2013 J. REQUEST FOR APPROVAL to Renew Lease Agreement with Cintas Corporation for Uniform Services at the Desert Willow Golf Resort in the Amount of $41,709.96 (Contract No. C30333, Project No. 845-14). Rec: By Minute Motion, approve the subject Lease Agreement with Cintas Corporation, Ontario, California, for Uniform Services at the Desert Willow Golf Resort in the amount of $41,709.96 (includes tax). Funds for the lease renewal are available in Golf Course Expenses, Account No. 520-4195-495-8091. K. REQUEST FOR ADOPTION of Resolutions - Setting Forth Findings and Authorizing Destruction of Paper Records from the Department of Building & Safety that Have Been Digitally Imaged (October 2012, November 2012, December 2012, and January 2013 Records). Rec: Waive further reading and adopt Resolution Nos.: 1) 2013 - 65 - October 2012 Records; 2) 2013 - 66 - November 2012 Records; 3) 2013 - 67 - December 2012 Records; 4) 2013 - 68 - January 2013 Records. L. CONSIDERATION of a Sponsorship Request by the Palm Springs Cruisin' Association in Support of Hosting Events Within Palm Desert. Rec: By Minute Motion: 1) Authorize the sponsorship request of the Palm Springs Cruisin' Association; 2) authorize payment of $2,400 from Account No. 110-4416-414-3062 (City Sponsored Events). M. CONSIDERATION of Surplus of Street Name Sign and Sale of Sign. Rec: By Minute Motion: 1) Surplus the Deer Grass Street name sign; 2) authorize the City Manager to sell the sign to Mr. William Anderson for $10. Upon a motion by Benson, second by Spiegel, and 5-0 vote of the City Council, the Consent Calendar was approved as presented. XI. CONSENT ITEMS HELD OVER None 11 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING DECEMBER 12, 2013 XII. RESOLUTIONS A. RESOLUTION NO. 2013 - 69 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, DESIGNATING THE DIRECTOR OF COMMUNITY DEVELOPMENT TO SUBMIT LOCAL GROWTH FORECASTS TO THE SOUTHERN CALIFORNIA ASSOCIATION OF GOVERNMENTS. Councilmember Harnik moved to waive further reading and adopt Resolution No. 2013-69. Motion was seconded by Weber and carried by a 5-0 vote. B. RESOLUTION NO. 2013 - 70 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, APPROVING THE FINAL SUBDIVISION MAP OF TRACT NO. 36554-1 AND THE RELATED IMPROVEMENT AGREEMENT (Mario Gonzalez, GHA Communities, Applicant). Mayor Tanner recuse himself from this item and left the Council Chamber. Councilman Spiegel moved to waive further reading and adopt Resolution No. 2013-70. Motion was seconded by Benson and carried by a 4-0 vote, with Tanner ABSENT. C. RESOLUTION NO. 2013 - 71 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, RECONSTITUTING THE ADVISORY BODY FORMERLY KNOWN AS THE UNIVERSITY PLANNING COMMITTEE, PER THE FORMER PALM DESERT REDEVELOPMENT AGENCY DISPOSITION AND DEVELOPMENT AGREEMENT WITH MEMBERS OF THE REGENTS OF THE UNIVERSITY OF CALIFORNIA-RIVERSIDE - PALM DESERT (UCR) AND CALIFORNIA STATE UNIVERSITY, SAN BERNARDINO - PALM DESERT (CSU) AND RENAMING IT THE UNIVERSITY PLANNING AND DEVELOPMENT COMMITTEE TO CONTINUE TO SUPPORT RELEVANT AND THOUGHTFUL DEVELOPMENT FOR THE ENTIRETY OF THE CSU/UCR ACREAGE IN THE CITY OF PALM DESERT. Councilman Spiegel moved to waive further reading and adopt Resolution No. 2013-71. Motion was seconded by Weber. Mr. Alvarez stated staff is trying to recreate and reestablish the Committee in a different format consisting of three representatives from each of the entities, the City, UCR, and Cal State. One member at large will be at the discretion of the City Council to appoint. 12 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING DECEMBER 12, 2013 Mr. Wohlmuth stated the former University Planning Committee was a different format, and in working with UCR and Cal State, a more functional format was developed to include three representatives from each of the entities. The Resolution identifies two Councilmembers as members of the University Planning and Development Committee (UPDC), and since this item is agendized, he suggested discussing which members would like to be on the Committee. The former University Planning Committee decided and voted for Dr. Bill Kroonen being the third member, but it never went to Council. He spoke with Dr. Kroonen about the format and its quarterly meetings, and he agreed to stay on. Councilman Spiegel expressed his interest in serving on the Committee and approved to having Dr. Kroonen on the Committee. Councilmember Harnik agreed the Council should have input on what happens over at the campus, and she too expressed interest in serving on the Committee. Councilman Spiegel amended his motion to: 1) Waive further reading and adopt Resolution No. 2013-71; 2) by Minute Motion, appoint Councilmembers Harnik and Spiegel, and Community Member Dr. William R. Kroonen to the reestablished University Planning and Development Committee (UPDC). Motion was seconded by Harnik and carried by a 5-0 vote. XIII. ORDINANCES A. For Introduction: None B. For Adoption: None 13 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING DECEMBER 12, 2013 XIV. NEW BUSINESS A. REQUEST FOR APPROVAL FOR RYAN CAMPBELL TO CREATE A PROPOSAL FOR AND PAINT A DESIGN ON THE SET OF TWO TRAFFIC SIGNAL CABINETS ON FRED WARING DRIVE AND PHYLLIS JACKSON LANE (CONTRACT NO. C32670C). Management Analyst Deborah L. Schwartz noted this was a different process than what was done with the other traffic signal cabinets. In this process, the artist is required to work with students from one of Palm Desert schools, which will most likely be Palm Desert High School. Therefore, instead of staff coming to the Council with a proposal at this point, there is a second step where the artist will come back with a proposal. Councilmember Benson asked if the artwork in the photographs provided in Council's packet typical of the work that will be on the cabinets. Ms. Schwartz replied the samples where characteristic of the artist's work, but he will work with the students to develop something specific for the location. She said the City Council will have two or three designs to review. Further responding, she confirmed nothing will get painted on the traffic signal cabinets until the Council approves the design. She noted the artist was present this evening and available to answer questions. Councilman Spiegel moved to, by Minute Motion, concur with the recommendation of the Art in Public Places Commission and approve Ryan Campbell to create a proposal and paint a design on the set of two traffic signal cabinets on Fred Waring Drive and Phyllis Jackson Lane. Motion was seconded by Weber and carried by a 5-0 vote. B. REQUEST FOR APPROVAL OF THE CITY'S PARTICIPATION IN THE 2014 DESERT SCULPTURE SYMPOSIUM, AUTHORIZE EXPENDITURE IN THE AMOUNT OF $25,000 FROM THE ART IN PUBLIC PLACES FUND FOR PURCHASE OF A SCULPTURE, APPROPRIATE $5,000 FROM THE UNOBLIGATED GENERAL FUND RESERVES, AND GRANT PERMISSION TO UTILIZE CITY PROPERTY FOR THE DESERT SCULPTURE SYMPOSIUM. Management Analyst Deborah L. Schwartz stated two community members met with her and then Mayor Harnik to discuss the proposed symposium. The idea is to bring eight sculptors in from throughout the world, but mostly from Italy, to sculp, in a visible/out in the open location, in Carrera marble, which is one of the most precious materials. She noted the Peace Memorial in the City's parking lot is made of Carrera marble. She said it will be about a three-week festival where the artist gives presentations about the artwork; people will be able to interact with the artist directly on site and possibly work 14 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING DECEMBER 12, 2013 with the material. Staff is requesting $25,000 from the Art In Public Places (AIPP) fund to be set aside as a donation, which really acts as a purchase of artwork. The City will be paired with one of the artists to work on a life size marble sculpture to remain in the City's collection. She said no funds would be disperse from the City's account unless approved by the City Council, but the City would be the recipient of the donations, and then it will cut checks back for purchases of appropriate items to vendors. Staff is also asking to potentially use City land; staff suggested the area next to the Chamber of Commerce building as a potential location for the festival. Councilman Spiegel inquired about the Art In Public Places 4-2 vote, with Commissioners Hough and Miller voting no. Ms. Schwartz said not much information was offered as to why they voted no. Mayor Pro Tem Weber stated she attends the AIPP as the City Council's liaison, and she recalled everyone being enthusiastic about the symposium, including Commissioner Miller. She said Commissioner Miller had reservations about the members of the symposium following certain rules, because they had been vetted. She said this symposium was a wonderful opportunity for the community, because the public liked to watch Art in process, as they have been watching all the paintings of the traffic signal cabinets. Mayor Pro Tem Weber moved to, by Minute Motion: 1) Approve the City's participation in the 2014 Desert Sculpture Symposium; 2) authorize expenditure in the amount of $25,000 from the Art in Public Places Fund for purchase of a sculpture, Account No. 436-4650-454-4001; 3) appropriate $5,000 from the Unobligated General Fund Reserves to Account No. 110-4416-414-3062 for incidental costs; 4) grant permission to utilize City property for the Desert Sculpture Symposium. Motion was seconded by Harnik. Mayor Tanner asked if there was an opportunity to regain the funds. Ms. Schwartz explained the Sculpture Symposium will be going out to at least eight sponsors, so each sponsor will come in with the same donation amount, basically in return for a sculpture. Therefore, the City will not go above the amount that's been allotted. In terms of a reimbursement to the City, it was not in the cards. However, all the pieces need to fall into place before the money moves forward. Councilmember Harnik noted this has been an international event that drew tourists and hopefully it can be turned into a wonderful Palm Desert event. Mayor Tanner called for the vote, and the motion carried by a 5-0 vote. 15 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING DECEMBER 12, 2013 C. REQUEST FOR APPROVAL OF A FUNDING COMMITMENT IN THE AMOUNT OF $40,000 TO THE COACHELLA VALLEY ECONOMIC PARTNERSHIP (CVEP) IN SUPPORT OF THE COACHELLA VALLEY IHUB/ACCELERATOR NETWORK PROJECT. Economic Development Manager Ruth Ann Moore stated this item was reviewed at last month's study session with the City Council. She said the Coachella Valley Economic Partnership (CVEP) along with the University of Redlands received a $200,000 Federal Planning Grant to support the development of a Coachella Valley Advanced Manufacturing Innovation Center or (iHub). Only 26 such awards were granted this year in the United States with three going to areas in California. In the first phase of the federal funding, the grant must be matched by an additional $200,000 in local funds from regional stakeholders. CVEP has approached the County of Riverside, Coachella Valley Enterprise Zone, and the cities of Coachella, Indio, La Quinta, and Palm Desert for a partnership in this project. To date, the Enterprise Zone has agreed to transfer $25,000 for each of the County, Coachella, and Indio into the project. These were funds originally contributed by the cities and County for the Enterprise Zone, which is now being dismantled; therefore, the funds will be redirected into this project. An additional portion from those cities is being sought to round it up to $40,000. The City of Indio approved an additional $25,000 for the project, bringing their participation to $50,000, and the City of La Quinta also approved participating with $40,000. She said Riverside County will consider an additional $15,000 next week, and Coachella will consider this funding next month. The first phase of the funding will create a GIS operation tool to be used by the investors when attracting businesses to the Valley. The funding will also be used to develop business plans for the new Eastern Valley iHub, an Accelerator Campus, similar to the one in the west valley, and it will also identify potential locations for these projects. Of the 26 awards throughout the United States, for Phase I, five or six of the awardees will receive funding for Phase II in the amount of $25 million each to develop their iHub and accelerator campuses. She noted Mr. Thomas Flavin from CVEP was available to answer any questions. Mayor Pro Tem Weber said she toured CVEP's two facilities and met some of the future entrepreneurs, which was an exciting thing to do. She imagined the rest of the Council had already toured the facilities, but it was her first opportunity to do so, and she was in favor of the request. Mayor Pro Tem Weber moved to, by Minute Motion: 1) Approve a funding commitment of $40,000 to the Coachella Valley Economic Partnership (CVEP) in support of the Coachella Valley I -Hub Accelerator Network project; 2) appropriate $40,000 from unobligated general funds to Account No. 110-4430-422-3630 (Economic Development Dues). 16 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING DECEMBER 12, 2013 Responding to question about the cities of Rancho Mirage and Palm Springs participation, Ms. Moore replied Palm Springs, Desert Hot Springs, and Cathedral City participated in the first iHub on the western side of the Valley. MR. THOMAS FLAVIN, President & CEO of CVEP, added that an invitation was extended to the City of Rancho Mirage to participate, but they chose not to at this time and no reason was given. Councilmember Harnik stated she served on the board of the Executive Committee for CVEP, and because a lot of focus was on Palm Springs, Cathedral City, and Desert Hot Springs, this iHub is addressing that issue by bringing it to the other end of the Valley to accomplish a regional effort. Councilmember Harnik seconded the motion, and it carried by a 5-0 vote. D. REQUEST FOR AUTHORIZATION FOR STAFF TO COMMENCE NEGOTIATIONS WITH BURRTEC FOR THE SOLID WASTE AND RECYCLE FRANCHISE AGREEMENT EXTENSION OPTION. Ms. Riddle stated staff is requesting approval to negotiate the Solid Waste and Recycling Franchise Agreement with Burrtec; the current term expires on May 31, 2015. The Agreement provides for a one time four-year extension, which is the time period under discussion. Included with the staff report is the AB 939 Recycle Fee Nexus Study, which looked at the various recycling and diversion programs the City currently has in place and associated costs. The Road Maintenance & Refuse/Recycle Vehicle Impact Study also looked at the impact that larger vehicles have on City streets with an emphasis on the impact from recycling and refuse vehicles and their associated costs. Therefore, in the negotiations, staff will request an option in the Franchise Agreement that fees associated with those studies be included and implemented at such time the City deemed it necessary. Mayor Tanner pointed out there was a representative from Burrtec to answer any potential questions. Councilmember Spiegel said Burrtec did a great job, and in the 16 years he's served on the Council, he's not had one complaint about Burrtec. Councilman Spiegel moved to, by Minute Motion: 1) Authorize staff to commence negotiations with Burrtec Waste and Recycling Services, Inc., for the Solid Waste and Recycle Franchise Agreement extension option; 2) receive and file Recycle Fee Nexus Study and Road Maintenance & Refuse/Recycle Vehicle Impact Study. Motion was seconded by Weber and carried by a 5-0 vote. 17 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING DECEMBER 12, 2013 E REQUEST FOR REAPPOINTMENT OF THE DIRECTOR OF FINANCE/CITY TREASURER PAUL S. GIBSON AS THE CITIES OF PALM DESERT'S AND RANCHO MIRAGE'S REPRESENTATIVE TO THE IMPERIAL IRRIGATION DISTRICT'S (IID) ENERGY CONSUMERS ADVISORY COMMITTEE (ECAC) FOR A FOUR-YEAR TERM, JANUARY 2014 - DECEMBER 2017. Councilman Spiegel moved to, by Minute Motion, reappoint Director of Finance/City Treasurer Paul S. Gibson as the Cities of Palm Desert's and Rancho Mirage's representative to the Imperial Irrigation District's (IID) Energy Consumers Advisory Committee (ECAC) for a four-year term, January 2014 - December 2017. Motion was seconded by Harnik and carried by a 5-0 vote. F CONSIDERATION OF APPROVAL OF $75,000 IN FACADE ENHANCEMENT PROGRAM (FEP) FUNDING FOR PROJECT LOCATED AT 73-811 EL PASEO (Justin Baldwin/Presage Real Estate, LLC, Applicant). Counciimember Harnik stated she was initially going to recuse herself from this item, but since there will be no discussion, she will remain in the Council Chamber and abstain on the vote. Mr. Alvarez stated the Applicant wasn't able to attend today's meeting and requested a continuation to the January 9 meeting. Councilman Spiegel moved to, by Minute Motion, continue this item to the meeting of January 9, 2014. Motion was seconded by Weber and carried by a 4-0-1 vote, with Harnik ABSTAINING. G. CONSIDERATION OF A TRANSIENT OCCUPANCY TAX (TOT) REIMBURSEMENT AGREEMENT WITH EL PASEO HOTEL, LLC. (CONTRACT NO. C33180). Economic Development Manager Ruth Ann Moore stated this item was a Transient Occupancy Tax or TOT Reimbursement Agreement with the developers of the proposed El Paseo Hotel located at the north east corner of Shadow Mountain Drive and Larkspur Lane, adjacent to The Gardens on El Paseo. She said the City has long been desirous of developing a hotel at this site in order to further increase hotel rooms and visitors to the surrounding premiere shopping destination on El Paseo. This hotel will not only bring additional TOT to the General Fund, but it will add customers for the businesses and restaurants on the street, thereby increasing sales tax for the City. In June 2006, the former Palm Desert Redevelopment Agency acquired the property through the assignment by William DeLeeuw the former developer who proposed a hotel for the site. The former developer received entitlements for the site, but due to the recession was unable to 18 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING DECEMBER 12, 2013 acquire financing for the project, and after several extensions, all agreements were terminated. With the elimination of Redevelopment and renewed interest in the site, a Request for Proposal (RFP) was circulated, and by the deadline in April of 2012, one submittal was received from West River, Inc., (Robert Leach) and the team known as El Paseo Hotel, LLC. With the passage of cleanup legislation known as AB1484, the Successor Agency delayed in selling property until the Department of Finance (DOF) approves the Long-range Property Management Plan, which the City hoped to receive in the beginning of 2014. In the meantime, the developer has continued to secure financing on the project, of which, one portion of it will come from the United States Immigration and Citizenship Services EB-5 Investment Program (EB-5). He said the EB-5 program was established by Congress to allow foreign nationals to earn a green card (permanent resident visa) for themselves and their immediate family by investing a minimum of $500,000 in a qualifying business enterprise that will create at least 10 new jobs. The City's consultant, Keyser Marston & Associates (KMA), estimate the cost for the Hotel is just under $35 million, of which 25% will be financed through the EB-5 investors. During construction, the developers estimate 300+ jobs and probably more once the hotel is operating. She said Riverside County is known as a Targeted Employment Area (TEA) for the EB-5 program, but by March 2014, portions of the County may no longer be eligible due to lower employment rates, of which Palm Desert may be one. All funding secured prior to March 2014 will be allowed to go forward using EB-5 funds, which is the reason this project is before the City Council now rather than after the land has been acquired. In the estimated stabilization net income analysis developed by KMA, the hotel has a funding gap during its initial years of operations of approximately $3 million, and the developer is asking for assistance from the City to close that gap. The developer anticipates taking this Agreement to the banking institution as collateral for funding the gap. The Agreement as stated is a TOT Reimbursement Agreement for 50% of the current 9% TOT that is collected by the City, which will be reimbursed to the developer beginning the first quarter of the hotel's operations and continues until a reimbursement of $1.8 million is met. Based on TOT projections, it is anticipated the amount will be reached between years six and seven. The estimates for hotel nights and average daily rates for rooms have been conservative, so this Agreement could be completed sooner should the hotel be more successful. Even with this Agreement, estimates indicate the City will receive an additional $13.6 million in TOT in the first 20 years of operation. The Agreement does not take effect until after the hotel is constructed and can be voided by the City should the developer not complete the project. El Paseo Hotel Manager Bob Leach with West River Inc., redesigned the project from its original 2007 design, while remaining with the envelope of the requirements of the existing entitlements. She said the project will have to go through Architectural Review Commission (ARC), but a brief presentation on the concept of the 19 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING DECEMBER 12, 2013 hotel will be provided this evening by Mr. Robert Leach. Also available are representatives from Keyser Marston & Associates, the City's financial consultant; Architect Gene Fong from Gene Fong Associates; and RHI (Richfield Hospitality, Inc.) the El Paseo Hotel Managing Company. MR. ROBERT A. LEACH, President of West River Inc., stated he had a historical perspective of the City of Palm Desert, as he has been coming to the desert since 1972 with his aunt and parents who each owned a condominium in Palm Desert. He's seen the evolution of the El Paseo shopping district over the years from a nice neighborhood retail complex to an upscale luxury complex to an internationally world -class retail shopping district with restaurants and galleries. He said the City did a beautiful job with Palm Desert while still maintaining its art, fashion, and quality of life. He said they looked at this project years ago, because they were impressed with the site, in terms of a place that needs a hotel, and it's an infill location. He said other hotels couldn't be built next to it to dilute the whole process, which is why they applied for the RFP. He said they had two main goals with this project, one was to come up with a creative way to finance the project, because there isn't a lot of enthusiasm about building ground up development in a seasonal market. Therefore, they turned to the EB-5 program, which allows them to bring individual investors into the project to provide a large equity chunk to make the project viable. He said most of the investors will come from China, Korea, or Singapore, etc. , but the program is also open to South America, Europe, etc. He said EB-5 was an international program and available to different countries; however, the program will probably eliminate Palm Desert in March 2014, because the economy has picked up and Riverside County will no longer qualify as a Targeted Employment Area. One of the important parts about the program is that most foreign governments, states, and jurisdictions provide some economic support for hotel development. He said it was important for investors to see buy -in support from the City, which is the reason for this request for support from the City. The second goal is to make sure they build a very nice hotel. He said his background was in building hotels and not in building shopping centers, condominiums, or restaurants. Having said that, the team was concerned with the approved plans, because it was more of a condominium development than a hotel development. He displayed the original plans and explained that the point of arrival was very small and probably in conflict with the driveway turn out for the mall parking garage, and there was not enough room to stack cars for a successful project of 154 rooms. The massing of the building took up the entire site, which was also an issue. In terms of a good hotel, people come to the desert to experience a resort style feel, and in order to accomplish that, you need to have open space. He said for the past 21/2 years they have worked on redesigning the hotel to put a luxury hotel on the site and they selected Marriott's Autograph Collection as the brand for the property, because he knew the Council wasn't 20 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING DECEMBER 12, 2013 interested in building a chain hotel to be sitting there; it was too beautiful a site. The Marriott Autograph Collection is an independent luxury hotel collection of properties that is powered by the Marriott Reservation System, which is probably the most powerful reservation system in the world. Therefore, they get the benefit of building a custom luxury hotel that is customized to the community, yet it had the support of the most powerful hotel company in the world. He said they can be successful from a hospitality and business standpoint and make money as well. He said they had a meeting with local neighbors, and the Taubman Group that owns the mall next door. He said the neighborhood, particularly those in the condominiums that live next door to the east and the people that live on Shadow Mountain, have accepted the fact that there will be a hotel at that site, but they want a nice one that will improve their property value, which is part of their goal as well. He said they were before the Council to ask for its support, yet it was not in his DNA to come before government to ask for money nor was he a fan of that; however, there are circumstances in a seasonal market with new construction that requires him to get economic support for this type of project. He said this project was guaranteed to make money, and the City would invest nothing unless they build and opened the hotel. He said it will be a four -star luxury hotel with the most powerful reservation system in the world, stating that come hell or high water, people will pay taxes, which is the nature of the real estate business. He asked the Council for its support, reiterating he didn't particularly liked asking government for money, but in certain cases, in a market that is seasonal where there is a soft season in the hot months, they will need the economic support and City buy -in for this type of financing on the project. The second group available to answer questions is Richfield Hospitality Inc., an international hotel that will manage the hotel. They chose RHI as the third party managing the hotel, because they want an independent luxury lifestyle hotel. He said when people walk into the hotel, they will know it's a one of a kind hotel in the world and unique to the City of Palm Desert. MR. GREG MOUNT, President of Richfield Hospitality, Inc., stated they were a 40-year old company, owned by a public company, which is traded on the Hong Kong Exchange called CES. He said CES as a majority owner in CDL (City Development Limited), which is traded on the Singapore Exchange is about a seven -billion -dollar market. He said RHI owned about 300 companies and subsidiaries worldwide, including a lot of real estate from Hong Kong to Singapore, the Grand Hyatt type, owning assets all over the world. He said they owned the money and hotels to about 14 in the U.S.A., and 100 between Asia and Europe, along with a lot of other real estate. He said Richfield operates about 30 hotels in the United States, and a number of luxury hotels from The Joule Dallas in Dallas, Texas, which was built in downtown Dallas to the St. Regis in Deer Valley. He said they recently took over La Posada Hotel in Santa Fe, Mexico; therefore, they have a number 21 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING DECEMBER 12, 2013 of assets that are similar to this project. Of the 30 hotels they owned in the United States, they own about a third of them. He said they are currently involved with another public/private project that was approved for a Westin Hotel in the City of Irving Texas. He said it was still less expensive to buy existing buildings, which is why there are a few of these projects getting done. He went on to say they also operate a company called Sceptre, which provides reservations, revenue management, and website development to about 4,000 hotels worldwide. They have offices in Denver, which is where he came from, Houston, Shanghai, and London. From the standpoint of this project, he believes the deal and the structure lends itself to a luxury hotel because of the location. There is a huge opportunity because of the drive-in business from Los Angeles and having a luxury hotel is something that people looked for, particularly a luxury boutique hotel. MR. LEACH said the Architect will also provide a brief presentation of the hotel design, but it's in its conceptual stage. Therefore, he asked the Council not to hold them to the design, because it still had to go through Architectural Review Commission for a lengthy process. He noted Angela Landgraf (RHI, Senior Vice President) lived here locally in the City of Rancho Mirage. He said there was a lively debate on the color of stucco to use on the building, and the color represented in the drawings is a holding piece. He said his side of the team liked the white and off-white stucco, similar to the facades on El Paseo; the other half of the team likes the sandstone look. The renderings are in the sandstone, but it is something that will be discussed in ARC. Responding to question, he said they planned to break ground at the end of the high season next spring. He said they are on track with financing in terms of debt and equity, and they promised the City they wouldn't start construction during Fashion Week; however, it was important to open in high season in October or November 2015. MR. GENE FONG, Architect with Gene Fong Associates, stated the goal for the hotel was to open up the vista and create as much open space possible. He displayed the site plan of the hotel and pointed out the attractive and generous Porte Cochere, which allowed two lanes to wrap around; it also has short-term and handicap parking. He said vehicles will either self park or valet park to the basement below. The arrival experience is to create something attractive and open that visually connects with the area. The pool area will have extensive landscaping, trellises, and shade structures. He also displayed a visual of the renderings, noting that it was still work in progress, and color was something they will continue to work with. He pointed out the high ceilings and overhang of the Porte Cochere, the desert character in the building with the natural stone, glazing, and plaster. He displayed the view from the courtyard into the pool and spa area, noting the spa will be operated by a third party. He said it will be an open lobby where the restaurant and bar can all be engaged into one setting. He said it was 22 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING DECEMBER 12, 2013 work in progress, but they felt very strong about this project. As a team member, he was happy to be part of this hotel with Mr. Robert Leach. Councilman Spiegel said he liked the design and believed it was a great addition to El Paseo, because it was something that was needed. Councilman Spiegel moved to, by Minute Motion: 1) Approve a Transient Occupancy Tax (TOT) Reimbursement Agreement as to form with El Paseo Hotel, LLC., Palm Desert, California, in the amount not to exceed $1,800,000 for the operation of a 154- room boutique hotel located at the northeast corner of Larkspur Lane and Shadow Mountain Drive and authorize the City Attorney to make non -substantive changes; 2) authorize the Mayor to execute said Agreement. Motion was seconded by Harnik. Mayor Pro Tem Weber asked if the project was contingent on the State's Department of Finance (DOF) decision. Mr. Wohlmuth explained the City's Property Management Plan has been submitted to the State Department of Finance, and it was staff's understanding that it's likely to be approved this month. He said the Property Management Plan included three categories, Future Development, Governmental Use, and For Sale Properties. He said this project fell under Future Development, and the process would allow the City of Palm Desert to sell this property and pick up the proceeds from the sale of the property to El Paseo LLC. The value of the property is then submitted to the County of Riverside Assessor to distribute funds as part of the property tax distribution and Redevelopment Fund distribution formulas. Councilmember Benson said it wasn't creative financing to ask the City of Palm Desert for money, because it didn't take any brains to do that. She said the City has been fortunate to have some great hotels, one of them being the Marriott flagship hotel, without the City financially helping them. She said to start rebating out of the City's TOT was going down a slippery slope, because the City lived on TOT and Sales Tax; the City didn't get property tax. Therefore, Palm Desert has to manage its money very well, and it has accomplished it over the years without giving it back to anybody. She said other hotels had faith in the City and went ahead and build and they have been successful. She understood this developer would like to have the City pitch in, but it wasn't because they didn't have the money to do it themselves. Additionally, the proposed hotel design was not competitive with the desert, stating it was probably a luxury hotel, but she's seen luxury hotels around the Valley that have gone belly up as well. She agreed it was a great location for a hotel, as the City has waited a long time to have one there, and she would be in favor of one if it fit into the decor of the desert. She reiterated she was against rebating any of the City's TOT, because it only meant future hotels will want the same. She said the cities that have rebated 23 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING DECEMBER 12, 2013 hotel tax are all in trouble, and Palm Desert was the only city with a healthy reserve, because it didn't give it away. She was willing to look at other ways to help build something on the site, but she was not willing to start a process where it started giving away its money. Councilmember Harnik said she understood Councilmember Benson's comment; however, it was now a different age, and the City was sorely lacking a boutique hotel around El Paseo. She agreed the Council was extending the City in this project, but it didn't mean it had to be done every time or every time this way. She would love to see this project finally started, stating it will prove to be a tremendous asset to El Paseo and the City in general. Mayor Tanner concurred from the stand point of what it will do to downtown El Paseo to get the head count up. He said the City was driven by TOT Tax and Sales Tax, but Palm Desert won't get the additional heads without a boutique hotel. He believed the City needed to invest into that future where in six or seven years down the road, the $1.8 million will be met. He said the Council is putting its faith in this project so that the City can continue to grow in having a boutique environment. Councilman Spiegel commented the owners of Cafe Des Beaux-Arts would be very happy with this hotel, because it will be right down their street. Mayor Pro Tem Weber stated Councilmember Benson made a good point that the proposed design was different from the kind of architecture in Palm Desert, and she wondered if the architect will work with local architects, rather than just go through ARC for building review and so forth. Councilmember Harnik stated the proposed hotel design included mid-century lines that one would see at the Shadow Cliff and similar to what is around Palm Desert. She said she loved the openness of the hotel, stating she didn't believe everything being the same was necessarily the answer to success. She said these are things that are very subjective, and she was one that liked the proposed design. Mayor Tanner stated the question here today was whether Council was willing to give 50% of the 9% of the City's TOT to this boutique hotel to give them an opportunity to go through ARC, Planning, and ultimately to the Council with the final plans. He didn't want to see this project stalled and hoped it will open in 2015. He understood there are concerns with the design, but those concerns can be dealt with when it came back to the Council for final approval. Mayor Tanner called for the vote, and it carried by a 4-1 vote, with Benson voting NO. 24 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING DECEMBER 12, 2013 H. CONSIDERATION OF TITLE SPONSORSHIP REQUEST FROM THE LIVING DESERT FOR ITS "DESERT BIRDS OF THE OUTBACK" EXHIBIT FROM JANUARY 4, 2014, THROUGH MAY 2014, IN THE AMOUNT OF $40,000. Mr. Wohlmuth noted he prepared the staff report, stating he's been working with Stacey Johnson, President & CEO of The Living Desert at the staff level trying to encourage them to propose special events and implement methods to drive tourism to Palm Desert. Staff has also been working on other special event ideas like a Jazz Festival, and this event was one Mr. Johnson brought forward. He said this was a great family type of event that will help The Living Desert based on the marketing plan they presented that was reviewed by Donna Gomez. He said the event will advertise Palm Desert and The Living Desert for families to come out to visit this attraction, which Mr. Johnson can describe how the Desert Birds of the Outback Exhibit is interactive. He said staff recommended approval and support of this project. Councilman Spiegel agreed The Living Desert is one of the City's major assets, because it brought people to Palm Desert from all parts of the world. He said he was jealous of the City of Indian Wells always supporting The Living Desert's Christmas Lights, therefore, he was in favor of supporting this event with $40,000 to get Palm Desert's name in the paper. Councilman Spiegel moved to, by Minute Motion: 1) Consider becoming a title sponsor for The Living Desert's Desert Birds of the Outback exhibit from January 4, 2014, through May 2014, in the amount of $40,000; 2) if Council approves a title sponsorship, appropriate $40,000 from the Community Contingency portion of the Unobligated General Fund Reserves (Account No. 110-4110-410-3880) to the Marketing budget (Account No. 110-4417-414-3222). Motion was seconded by Weber. Councilmember Harnik stated that in the interest of full disclosure, she said her husband served on the Board of The Living Desert, and he received no financial compensation whatsoever. Mayor Tanner said he was looking forward to having The Birds of the Outback come to the Coachella Valley, and no explanation of the exhibit was necessary. Mayor Tanner called for the vote, and the motion carried by a 5-0 vote. 25 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING DECEMBER 12, 2013 I. CONSIDERATION TO PURCHASE THE COLORADO TIMING SYSTEM FOR THE PALM DESERT AQUATIC CENTER IN AN AMOUNT NOT TO EXCEED $70,000. Councilmember Spiegel asked if this timing system will bring about major competitions. Senior Management Analyst Ryan Stendell responded it will in time, but first local swim clubs and water polo teams will be able to use it. He said most major events are programmed two or three years out, but staff will work its way into their schedule. Further responding, he confirmed the funds for the timing system are in the Aquatic Center Impound Fund. Councilman Spiegel moved to, by Minute Motion: 1) Authorize the purchase of the Colorado Timing System (CTS) for the Palm Desert Aquatic System in an amount not to exceed $70,000; 2) appropriate $70,000 from Unobligated Fund 242 monies to Account No. 242-4549-454-4001 (Aquatic Center, Capital Account). Motion was seconded by Harnik and carried by a 5-0 vote. J. INFORMATIONAL REPORT ON THE HIRING OF FG CREATIVE TO PROVIDE MARKETING SERVICES FOR THE PALM DESERT AQUATIC CENTER. Mr. Wohlmuth stated at the Strategic Planning Session, the comment was made that the City paid Tourism & Marketing Manager Donna Gomez the salary of one person, but she did the work of three people, which he thought was true. The concept with this contract is to combine efforts on the Aquatic Center with the YMCA, as seen first with the website and marketing material, i.e. the logo on the t-shirts provided to the Palm Desert High School Polo Team this evening. He said staff brought to his attention that combining all these efforts into one contract, the City would get a better product and save money. He said Ms. Gomez will explain how this contract will save the City money. Mayor Tanner said an explanation wouldn't be necessary. Councilmember Harnik agreed, stating she read the staff report. Councilman Spiegel moved to, by Minute Motion, receive and file the informational report. Motion was seconded by Harnik and it carried by a 5-0 vote. 26 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING DECEMBER 12, 2013 XV. CONTINUED BUSINESS A. REQUEST FOR APPROVAL OF AN OUTDOOR DINING AREA TO ENCROACH INTO THE PUBLIC RIGHT-OF-WAY ALONG LARKSPUR LANE, SUBJECT TO THE BUSINESS OWNER PROVIDING CERTAIN FACADE IMPROVEMENTS, INCLUDING A NEW AWNING, NEW PATIO RAILING, NEW PATIO FURNITURE, AND CONCRETE PLANTERS WITH UMBRELLAS FOR CAFE DES BEAUX-ARTS LOCATED AT 73640 EL PASEO, Case No. ODP 13-210 (Cafe Des Beaux-Arts, Applicant) (Continued from the meeting of November 14, 2013). Mr. Wohlmuth stated that although this item will be continued at the request of the Applicant, at the last meeting, the Council inquired about the widths of the side streets, across the street, and other streets on El Paseo, which staff is prepared to provide this evening. Councilman Spiegel said he thought the Council would be going over to the site. Mr. Wohlmuth said that can still be done after the season in February or March. MR. DIDIER BLOCH, Applicant, said he was called and asked by staff to prepare the sidewalks to show how much room there was for pedestrians. Since it was now December, he couldn't start construction and it wasn't urgent to do so; therefore, he would rather discuss this later. Additionally, he is having second thoughts, because he's not sure he needs additional seating. He was informed his request would be accepted if he provided a new awning and the project was beautified. However, he asked if he chose not to do the additional seating, because it's rather complicated with the handicap access, etc., but agreed to do the awning, which would cost about $20,000, would the City consider helping him with the cost. Mayor Tanner asked if he was referring to the Facade Enhancement Program (FEP). MR. BLOCH said he understood the City didn't like the green awning he currently had on his restaurant. Mr. Wohlmuth stated he believed the Applicant was asking if he made an application for the FEP would the City consider it. He recalled for the Council there was $700,000 set aside in the Facade Enhancement Program with 20% being used on El Paseo and 80% on Highway 111. However, there are no guarantees, because the Applicant would have to submit an application and go through the ARC process. He said the amount would be based on 27 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING DECEMBER 12, 2013 the policy the Council approved at the last meeting. In answer to Mayor Tanner's comment, would the Council like to discuss this item tonight or continue it to March. MR. BLOCH said continuing to April would be preferable, because it will allow him the time to prepare the sidewalk for the Council's visit. Councilmember Benson said the Council asked to visit the site before it could discuss the request, and now the Applicant wants to wait until next year; therefore, she didn't want to discuss the item until she made the visit to the site. Councilmember Harnik asked the Applicant if he was referring to FEP funds for the enhancements on El Paseo or Larkspur Lane. MR. BLOCH replied his request would be for both streets. Mayor Tanner stated there were two issues here. First of all, the Applicant requested the Council to look at his expansion of putting tables and chairs on El Paseo and Larkspur Lane, which was one issue. The second issue is the potential for funds for the facade improvements. He asked the Applicant if he was inquiring about both issues, or was he taking the outdoor dining with tables and chair off the table. MR. BLOCH explained business was not what it used to be, and he didn't know if he needed additional seating, stating that in April the season will be done and he will have a better picture. Mr. Wohlmuth suggested continuing the item to March or April, and any information received between now and April, including sidewalk widths, a report will be provided to the Council along with what the Applicant determined and/or when the tables and chairs will be ready for the Council to observe. Responding to Councilman's Spiegel question, Mr. Bloch said he preferred postponing to April. Councilman Spiegel moved to, by Minute Motion, continue this item to the meeting of April 10, 2014. Motion was seconded by Weber and carried by a 5-0 vote. Mayor Tanner pointed out that if the Applicant was considering FEP funds, the program was on a first come, first served basis, and there was a limited amount of money. 28 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING DECEMBER 12, 2013 XVI. OLD BUSINESS None XVII. PUBLIC HEARINGS A. REQUEST FOR ADOPTION OF RESOLUTION NO. 2013 - 72, AMENDING RESOLUTION NO. 2012-37 AS RELATED TO THE PUBLIC WORKS DEPARTMENT LANDSCAPE SERVICES FEES. Landscape Manager H. Spencer Knight stated the proposed Resolution is asking for a change in landscape services fees. This change was brought about by the economic environment of the past five years that's resulted in changes in staffing levels in the Landscape Services Division of the Public Works Department. Change was also brought about by a State -driven mandate for the City's Water Efficient Landscape Ordinance, which caused a change in the fee structure. The inspection process has been decreased in the number of times staff went out to a property to inspect, it's been reduced from seven to two visits. Additionally, the plan review process has been shortened, because the City entered into an agreement with Coachella Valley Water District (CVWD) who reviews the irrigation portion of the plan. He said City staff does a cursory inspection, but CVWD did the detailed number crunching, which reduced staffs plan review and time. Consequently, staff has been able to reduce the amount of hours involved in the inspection and plan review process, thereby reducing inspection and plan review fees. The City added two new categories, because the State now required inspections of individual family residences on a plan review if they are a certain size or larger; therefore, the two new categories are two additional fees. Responding to question, he said Desert Valleys Builders Association approved the proposed Resolution, stating DVBA liked the fact that fees would be decreased. Mayor Tanner declared the public hearing open and invited public testimony in FAVOR of or in OPPOSITION to this matter. With no testimony offered, he declared the public hearing closed. Councilman Spiegel moved to waive further reading and adopt Resolution No. 2013 - 72, amending Resolution No. 2012-37 as related to the Public Works Department Landscape Services Fees. Motion was seconded by Harnik and carried by a 5-0 vote. 29 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING DECEMBER 12, 2013 B. REQUEST TO COMMENCE WITH DEVELOPMENT OF THE FISCAL YEAR 2014/2015 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) ONE-YEAR ACTION PLAN AND GRANT APPLICATION PROCESS. Ms. Riddle stated this request is to open the Community Development Block Grant Program for the 2014/2015 cycle to receive public input and open the grant application process. Mayor Tanner declared the public hearing open and invited anyone who wished to come forward to speak on the matter to do so at this time. MS. MAGDALENA ANDRASEVITS, Executive Director for Martha's Village & Kitchen (MV&K), expressed appreciation for the City's assistance in the past and their intention to request $50,000 from the CDBG 2014/2015 cycle. She said the funds would support their operating food services program, providing healthy meals to impoverished and homeless families and individuals in the Coachella Valley. She said the need was significant with more than 6,000 homeless in Riverside County and MV&K addresses the need by providing 225,000 hot meals a year, meals to residents of the Transitional Housing Program seven days a week/365 days a year, and offering nutritionally balanced meals to impoverished people, which is usually the first step in empowering families. She said MV&K invites community members to express their opinions and provide feedback regarding their intention to apply for the CDBG funding from the City of Palm Desert. MS. CHANTEL SCHUERING, F.I.N.D Food Bank, stated her request is for a public serve project at FIND Food Bank. She noted that Food In Need of Distribution is the eastern Riverside County food bank, a distribution network of 100+ community and faith -based organizations currently serving an average of more than 85,000 individuals every month; a total of more than 10 million pounds of food every year. She said the numbers are huge, but the need is getting greater every year. Since last year the need increased by more than 25% of the amount of food that had to go out the door, and the number of people served every month continues to grow at a rate of 7.5 percent every 12 months. She said Martha's Village & Kitchen representative mentioned they provided a hot meal program, and they get some of that food from the FIND Food Bank, which is their purpose to aggregate donated resources to fight homeless issues. She said they have been able to utilize CDBG funding from the City of Palm Desert in the past, and in the next cycle they will request funds for a public service project to improve the warehouse space to more easily accept greater quantity of food from large semi -trucks, which will increase their efficiency. They are fortunate to be in a beautiful large building, but when it was constructed the grade in the loading docks was too great to accept 18 wheelers without hitting the building and consistently causing damage. Therefore, the facility improvements they want 30 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING DECEMBER 12, 2013 to make are to reduce the grade and install bumpers to extend the life of the building and allow them to continue doing what they do. She said one in five residents are hungry in this Valley. Of the people they serve, 45% are children, 18% are seniors, 7% are homeless or homebound, and 30% are low-income families/the working class poor. She said Palm Desert is home to several community service organizations as part of the Valley's efforts to find hunger, food and security like St. Margaret's, Family YMCA, Joslyn Center, Temple Sanai, and a couple of faith -based organizations. She said all of their partners benefit when FIND benefits, especially when a public service projects such as facility improvements are proposed wherein they will be able to increase the quantity of food assistance it can accept and therefore distribute. MS. CONNIE GOLDS, Desert Best Friend's Closet, stated they have been fortunate to receive CDBG funding from the City of Palm Desert for the past two years, and they are looking forward to applying for funds again for the 2014/2015 cycle. She said their mission is to empower low-income desert residents to obtain employment through education and wardrobe services. They envision a Coachella Valley where all residents are economically self-sufficient through employment. She spent some time preparing statistics about the clients they served, but instead she opted to read a couple of notes received from some of their clients thanking them for the professional outfits, the difference the wardrobes made in their lives, and the wonderful experience at Desert Best Friend's Closet. She said the majority of the clothing they work with is donated, but there is always a gap in their donations for things they have to purchase such as: 1) Plus size ladies suits made from a manufacturing company in Los Angeles, where they can purchase in black or blue for $28.50; 2) dress shirts in sizes 171/2 inches or larger around the neck; they are purchased at big box stores in Palm Desert; 3) men's belts, 4) braziers and shapewear. She said these garments represented an opportunity for employment and security for families. In conclusion, she said their mission and goals couldn't be met totally and effectively without the City's support. Mayor Tanner thanked all the speakers on behalf of their organizations for what they did for the entire Coachella Valley. With no furthertestimony offered, Mayor Tanner left the CDBG Application Process for FY 2014-2015 and public comment period open. 31 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING DECEMBER 12, 2013 XVIII. REPORTS AND REMARKS A. CITY MANAGER 1. City Manager Meeting Summaries for the Period of November 4 - 27, 2013. Mr. Wohlmuth noted the Meeting Summaries report contained in the agenda packets and offered to answer questions. Responding to question about the conference call meeting having to do with the Rosewood Hotel, he said that the project is still seeking financing; there is nothing new to report at this time. Further responding, he said the meeting held with Kay Hazen regarding a public relations contract had to do with retaining her services for a Closed Session matter. With City Council concurrence, the Meeting Summaries were received and filed. 2. Request for Appointment of Two City Councilmembers to the El Paseo Streetscape Sub -Committee (Ad Hoc Committee). Mr. Wohlmuth recalled for City Council that it, jointly with the Successor Agency to the Palm Desert Redevelopment Agency, entered into a Funding Agreement having to do with the City's General Fund in order to fund certain improvements on El Paseo with reimbursement from the Successor Agency. He said it was for the electrical system upgrade and for the benches and trash receptacles talked about during the budget discussions for FY 2013-2014. With the Successor Agency Funding Agreement, the City completed the electrical system upgrade and can now move forward with the streetscape furnishings. He said Ms. Aylaian has a large collection of designs for said furnishings, and staff felt it would be appropriate to enlist the service of two Councilmembers for an ad hoc subcommittee, along with staff as noted in the memo contained in the agenda packets. He asked if any Councilmembers wished to volunteer. In response, Councilmembers Benson and Harnik volunteered to serve on the El Paseo Streetscape Ad Hoc Subcommittee, and Councilmembers concurred with their appointment. 32 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING DECEMBER 12, 2013 3. Coachella Valley Water District (CVWD) and Cook Street Sinkhole Mr. Wohlmuth reported that he received an update on the sinkhole that appeared on Cook Street in mid -August due to a sewer pipe collapse. CVWD has been working aggressively to take care of the problem, which was found to be much greater than merely the resulting sinkhole in the City. He said it was a failure of the sewer pipe system for a certain area, and this afternoon he received a schedule of work to be completed. He went on to say that CVWD planned to begin the sewer pipe replacement project on December 17 in order to take some advantage of less Palm Desert High School traffic during the holiday break, but the work will continue until approximately March 21. He said there was some good news to report in that Mr. Greenwood and Public Works staff have worked with CVWD to re -stripe southbound Cook Street in order to get two lanes there, in addition to the two northbound lanes while the repairs take place. He said pipe needed to be replaced between Merle Drive and Hovley Lane. Although March 21 wouldn't signify completion of the project, it would represent the end of most of the work on Cook Street, with other work having to be done beyond that location. 4. Desert Willow Golf Resort Annual Report Mr. Wohlmuth said that staff will be delivering an informational Desert Willow Annual Report to Council in January - a report on its progress with golf, restaurant operations, revenues/expenditures, etc. He said the contracted operator, Kemper Sports Management, is going through recruitment for a new general manager, with Derek White serving as Interim General Manager at this time. He went on to say that he and a couple of other City staff members participated in interviews of two qualified candidates for the position, with announcement of a new permanent General Manager expected around January 1. B. CITY ATTORNEY None C. CITY CLERK None 33 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING DECEMBER 12, 2013 D. PUBLIC SAFETY 1. Fire Department None 2. Police Department None E. MAYOR AND MEMBERS OF THE CITY COUNCIL 1. City Council Requests for Action: None 2. City Council Consideration of Travel Requests and Reports: None 3. City Council Committee Reports: None 4. City Council Comments: a) 2014 City Calendar — Mayor Pro Tem Weber said the Historical Society of Palm Desert wanted her to convey a special and huge thank you to past Mayor Jan Harnik for the theme of the 2014 calendar. She said they were very excited to be a part of that project, and past President of the Historical Society Brett Romer wanted to also especially thank Management Analyst/Public Information Officer David Hermann for all of the time he put in while they were pulling the historic photographs and matching them with the new ones, and he said it was a true pleasure to work with Mr. Hermann. She added that everyone at the Historical Society is very pleased with the new calendar, and it has been very well received in the community. Councilmember Harnik also thanked Mr. Hermann for his extra special touch on the project. 34 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING DECEMBER 12, 2013 b) Recent City Events — Councilmember Harnik noted that many of her colleagues got a chance to attend B.A.M. - Behind A Miracle on El Paseo on November 22, and it was a wonderful event. She said El Paseo looks wonderful for the holidays; The Gardens on El Paseo has done a marvelous renovation, as has Westfield Palm Desert. Further, she said the Wreath Lighting here at City Hall last Friday evening was also terrific - complete with Santa Claus, and it was a wonderful turnout. She added that there were lots of children here having fun decorating cookies, and it was great. c) Councilmember Harnik said with the time of the year we're now in, she encouraged folks to check on their neighbors and make sure they were included in some holiday festivities to brighten their days. 5. Suaaested Items for Future City Council Meeting Agendas: None XIX. ADJOURNMENT Upon a motion by Spiegel, second by Weber, and 5-0 vote of the City Council, Mayor Tanner adjourned the meeting at 6:16 p.m. ATTEST: RACHELLE D. KLASS, CITY CLERK CITY OF PALM DESERT, CALIFORNIA 7' \%AN G. TANNER, MAYOR 35