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HomeMy WebLinkAbout2015-04-23MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING THURSDAY, APRIL 23, 2015 CIVIC CENTER COUNCIL CHAMBER 73510 FRED WARING DRIVE, PALM DESERT, CA 92260 I. CALL TO ORDER - 3:00 P.M. Mayor Weber convened the meeting at 3:05 p.m. II. ROLL CALL Present: Councilmember Jan C. Harnik Councilman Sabby Jonathan Mayor Pro Tem Robert A. Spiegel Mayor Susan Marie Weber Absent: Councilman Van G. Tanner Also Present: John M. Wohlmuth, City Manager Robert W. Hargreaves, Assistant City Attorney Rudy P. Acosta, Assistant City Manager 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/City Treasurer 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 John Cortez, Battalion Chief, Palm Desert Fire/Riverside Co. Fire Dept./Cal Fire Bill Sullivan, Asst. Chief, Palm Desert Police/Riverside Co. Sheriff's Department Grace L. Mendoza, Deputy City Clerk I11. ORAL COMMUNICATIONS - A (CLOSED SESSION ITEMS) None MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 23, 2015 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. 103, Palm Desert Negotiating Parties: Agency: John M. Wohlmuth/Paul S. Gibson/City of Palm Desert Property Owner: City of Palm Desert Other Parties: Angel View, Inc. Under Negotiation: x Price x Terms of Payment 2) Property: Lease Property - 73470 El Paseo, Suite F7, Palm Desert (Portion of APN 627-202-010) Negotiating Parties: Agency: John M. Wohlmuth/Martin Alvarez/Donna Gomez/ City of Palm Desert Property Owner: El Paseo, LLC/Acadia D.R. Management, LLC Under Negotiation: x Price x Terms of Payment B. Conference with Legal Counsel regarding significant exposure to litigation pursuant to Government Code Section 54956.9(d)(2): Number of potential cases: 2 C. Public Employment pursuant to Government Code Section 54957: Title of Position: City Manager With City Council concurrence, Mayor Weber adjoumed the meeting to Closed Session at 3:06 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 - Palm Desert Youth Committee Member Abigail Sanford VII. INVOCATION - Councilman Sabby Jonathan 2 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 23, 2015 VIII. ORAL COMMUNICATIONS - B MR. CARL CIESLIKOWSKI, Spyglass Lane, Palm Desert, first thanked City Councilmembers for their service, as he was well aware that it was sometimes a difficult job. Secondly, he thanked Councilmembers for reinstating the Champions Club at Desert Willow Golf Resort and also said the upcoming summer play rate there was going to be fantastic for residents. Thirdly, he called attention to some exhibits he'd provided to the City Clerk, things he'd both picked up at and photographs taken at Homme/Adams Park off of Thrush Road in the City. He is a frequent visitor, and about six months ago as he was walking there noticed some big pieces of concrete and other construction debris in the Park. He brought some of them home for disposal in his trash, but when that wasn't feasible, he took the pieces back to the Park and started a pile. After four months along with other people helping, he had several piles of this refuse together (glass, concrete pieces, tar, wire, etc.) and called Senior Management Analyst Ryan Stendell about it. He said a project was initiated, and they were able to get most of that debris cleaned up, thanking Council and Mr. Stendell, specifically, for his assistance in getting the big City trucks out there and other volunteers to undertake the project. He added that the material removed filled two large -volume dumpsters. It was a great undertaking and helped tremendously, but he felt it wasn't finished yet. The exhibits he provided illustrated the remaining need — more concrete chunks, broken glass, tar, and wire that needed removal, which he hoped Council would consider authorizing completion of the clean-up, some of which will require heavy equipment. He pointed out that the City has a lot of visitors that like to walk through Homme/Adams Park and urged them to complete this project. MR. TERRY COLLIER, Ajo Lane, Palm Desert, said he appreciated when Council took time to recognize military service veterans and wanted to, in return, thank City Council for their service to country and community. He went on to say that in looking for innovative ideas to save water, he'd come up with an efficient method of washing his own car at home several times, each time using less than five (5) gallons of water. He provided a brief demonstration of this technique and photographs of his clean car afterward. MS. NIKOHL VANDEL, Desert Hot Springs, CA, wished Councilmembers a happy belated Earth Day and noted that the President was in the Florida Everglades recently regarding climate change. She cautioned the public about what it's facing with the "nuclearization" of the increase in water temperature as being overwhelming. Further, she said we have a very large task ahead of us in order to completely transform all of our resources to prepare the nation and lands for what's coming, and abandon the notion that we can still play war games and prevent the damage that is coming. She was at a loss as to how to accomplish this, except for just changing our priority, and it needed to be done in small spaces, such as a City Council Meeting, as well as places like Washington, DC, or in the United Nations and around the world. She encouraged people to have conversations with their 3 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 23, 2015 neighbors, because she felt the numbers being presented by scientists were correct, including that she'd just experienced a thundershower in Yucca Valley in late April. IX. AWARDS, PRESENTATIONS, AND APPOINTMENTS A. PRESENTATION TO RECOGNIZE BRUCE KASSLER FOR HIS SERVICE TO THE CITY OF PALM DESERT AND ITS CITIZENS' SUSTAINABILITY COMMITTEE, 2011 - 2015. Mayor Weber noted that Mr. Kassler was unable to be present for today's presentation and that his engraved crystal clock in appreciation for his service would be forwarded to him separately. B. PRESENTATION OF PROCLAMATION DECLARING MAY 2015 AS "MENTAL HEALTH MONTH" IN THE CITY OF PALM DESERT. On behalf of the entire City Council, Mayor Weber presented the proclamation to Denise Diamond, representing the Riverside County Mental Health Board. Ms. Diamond thanked Mayor Weberforthe recognition and the support, and for agreeing to be a judge in their upcoming art show. She went on to recognize all the cities working together in the Coachella Valley, first responders, and citizens who work to keep everyone informed and safe. She related that she's a family member on the Regional Mental Health Board, in addition to being a faculty sponsor for a nationwide club at College of the Desert, called "Active Minds." Today that club hosted its first Mental Health Expo and was able to invite many of the community resources to participate and inform everyone in an effort to keep a healthy community and support each other as we work through some pretty tough issues. C. PRESENTATION TO THE CITY COUNCIL OF AN UPDATE ON PALM DESERT YOUTH COMMITTEE ACTIVITIES BY MEMBER ABIGAIL SANFORD. Ms. Sanford reported that on April 10, four members of the Youth Committee greeted guests and helped seat people attending the Senior Inspiration Awards. She said the Committee has completed its activities for this school year and looked forward to continuing to help the community in the next. 4 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 23, 2015 X. CONSENT CALENDAR A. MINUTES of the Regular City Council Meeting of April 9, 2015. Rec: Approve as presented. B. CLAIMS AND DEMANDS AGAINST THE CITY TREASURY Warrant Nos. 218, 219, 222, 223, 227, 228, 230, and 231. Rec: Approve as presented. C. CITY COMMITTEE AND COMMISSION MEETING MINUTES. 1. Parks & Recreation Commission Meeting of March 3, 2015. 2. Public Safety Commission Meeting of January 14, 2015. Rec: Receive and file. D. REQUEST FOR ADOPTION of Categorical Exemption and Filing of a Notice of Exemption for the Highway 111 Right Tum to Westbound Fred Waring Drive Project (Project No. 659-14). Rec: By Minute Motion, adopt the Categorical Exemption for the Highway 111 Right Turn to Westbound Fred Waring Drive Project and authorize the Director of Public Works to execute and file the Notice of Exemption with the County Clerk. E. REQUEST FOR APPROVAL of Second Amendment to Contract with Prudential Overall Supply for the Second One-year Extension of Industrial Uniform Rental and Laundry Services in the Amount of $5,324.80 (Contract No. C31652). Rec: By Minute Motion: 1) Approve Second Amendment to the subject contract with Prudential Overall Supply, North Palm Springs, California, for Industrial Uniform Rental and Laundry Services in the amount of $5,324.80; 2) authorize Mayor to execute the Amendment — funds are available in General Fund Account No. 110-4310-433-2140 - Supplies - Uniform Rental. F. REQUEST FOR APPROVAL of Second Amendment to Contract with CleanStreet, the First One-year Extension for Parking Lot Sweeping Services in the Amount of $34,962.24 (Contract No. C32721). Removed for separate consideration under Section XI, Consent Items Held Over. Please see that portion of the Minutes for Council discussion and action. 5 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 23, 2015 G. REQUEST FOR APPROVAL of Change Order No. 1 to Contract No. C33310 — Landscape Maintenance Area No. 9 (Project No. 909-14). Rec: By Minute Motion: 1) Approve Change Order No. 1 to increase the subject contract with Mariposa Landscapes, Inc., for Landscape Maintenance Area No. 9 in the amount of $2,952; 2) authorize Mayor to execute Change Order No. 1 — funds are available in Account No. 110-4614-453-3370 - R/M Medians. H. REQUEST FOR APPROVAL of an Exception to Bidding Requirements and the Streamlined Use of Vendors for the Special Programs Department - Fiscal Year 2015-2016. Rec: By Minute Motion: 1) Grant an exception to bidding requirements for FY 2015-2016, as provided for by Section 3.32.090 of the Palm Desert Municipal Code; 2) approve the Special Programs Department's Preferred Vendor List - FY 2015-2016. I. REQUEST FOR ACCEPTANCE OF WORK for Contract No. C33360A — Landscaping of Monterey Avenue Medians - Country Club Drive to Dick Kelly Drive — Cobble and Boulder Treatment (Project No. 965-15) (Conserve Landcare, Inc., Thousand Palms, CA). Rec: By Minute Motion, accept the work as complete and authorize the City Clerk to file a Notice of Completion for the subject project. Approved. 3-0-1 (AYES: Harnik, Spiegel, and Weber; NOES: None; ABSTAINING: Jonathan; ABSENT: Tanner) J. REQUEST FOR ACCEPTANCE OF WORK for Contract No. C33890C — COLMAC Soil Stabilization Project (Project No. 767-15) (Environmental Products and Applications, Inc., La Quinta, CA). Rec: By Minute Motion, accept the work as complete and authorize the City Clerk to file a Notice of Completion for the subject project. K. REQUEST FOR APPROVAL of the City's FY 2015 State Homeland Security Grant Program Application. Rec: 1) Waive further reading and adopt Resolution No. 2015 - 26, supporting the City's FY 2015 State Homeland Security Grant Program Application and authorizing the City Manager to sign the Grant Application and all other Grant documents; 2) by Minute Motion, appropriate $8,168 from the Unobligated General Fund and transfer to Account No. 110-4130-411-3090 for FY 2015-2016. 6 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 23, 2015 L. REQUEST FOR ACCEPTANCE of the Califomia Governor's Office of Emergency Services 2015 Emergency Management Performance Grant in the Amount of $14,439 to Offset Costs to Contract for an Emergency Services Program. Rec: By Minute Motion: 1) Accept the FY 2015 Emergency Management Performance Grant (EMPG) through the California Governor's Office of Emergency Services (OES) in the amount of $14,439; 2) authorize City Manager to execute all required grant documentation. Councilman Jonathan asked that Item F be removed for separate consideration and noted he would be abstaining on item I. Upon a motion by Spiegel, second by Hamik, and 4-0 vote of the City Council (AYES: Hamik, Jonathan, Spiegel, and Weber; NOES: None; ABSENT: Tanner), the remainder of the Consent Calendar was approved. XI. CONSENT ITEMS HELD OVER F. REQUEST FOR APPROVAL of Second Amendment to Contract with CleanStreet, the First One-year Extension for Parking Lot Sweeping Services in the Amount of $34,962.24 (Contract No. C32721). Councilman Jonathan noted he had previously inquired on this item, but didn't completely understand, stating $35,000 is being funded out of the Business Improvement District, but the District's gone. Mr. Greenwood responded a portion of this contract is still funded from the Reserves that remained from the pre -bid. The City continues to provide reduced sweeping once a month to maintain a minimum level of service there, similar to how the tree trimming is done; the City still does it with Reserves, as well as maintain the irrigation for landscape. Councilman Jonathan questioned the cost of $35,000 for sweeping once a month. Mr. Greenwood explained the cost for the President's Plaza parking lot is not the full amount, it's one of the components. This sweeping contract is paid from a number of sub -accounts, stating some of it is paid out of Parks and Building Accounts, noting there are a dozen parking lots included in this contract. Further responding, he said $35,000 was the cost for all the parking lots. Councilman Jonathan asked how effective was street sweeping, because he has observed that it only seems to pick up dust in the air and settles back 7 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 23, 2015 into the ground. Adding that a lot of private property owners have stopped parking lot sweeping. Mr. Greenwood said it was his opinion that street sweeping was completely 100% ineffective. Councilman Jonathan agreed, questioning whether this was something the City should spend money on; therefore, he suggested not renewing the contract. Mr. Greenwood said it was Council's decision. Councilmember Hamik asked if there was any AQMD (Air Quality Management District) requirement for street sweeping. Mr. Wohlmuth answered no, because AQMD requirements exist on speed limits greater than 25 miles an hour. He said most parking lots are well under 25 mph, and an average car didn't go that fast in a parking lot even if the speed limit was not posted. Councilmember Harnik stated her experience with street sweepers, at least in front of her home, uses water, so she didn't see the dust come up. She asked if the procedure had changed. Mr. Wohlmuth explained that each street sweeper used by the City under contract has a water tank and a sprayer next to the broom. Councilman Jonathan stated his opinion may differ from others, although it seemed to be consistent with the City's professional staff, in that street sweeping was ineffective. In his observation and experience, even when water is used, the circular sweeper just spits up dust and one can tell it was the street sweeper just by the dust trail. He reiterated the contract should not be renewed, but to keep an eye on the parking lot, stating the Council can always change its mind. Mayor Pro Tem Spiegel disagreed, stating there is a lot of trash in the parking Tots that people just leave there and it never gets picked up, and the sweepers at least help with the problem. Councilman Jonathan said he wasn't opposed to maintaining the parking lot, but the street sweeper was just pushing trash around. He was open to suggestions, but typically properly maintained parking Tots are done by the landscape maintenance company, which sweeps, blows, and cleans up the parking lot; however, he didn't know if that was an option here. 8 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 23, 2015 Councilmember Harnik stated she was clear on Mr. Greenwood's statement that street sweepers are 100% useless, so she wonders why they're so popular, and what was it that the City thought they were doing all along. Mr. Greenwood replied it's a force of habit, stating that he had never in his entire 30-year career felt street sweeping was worth the money invested. He said mechanical sweeping was one of the City's most difficult contracts to manage, because they are often sent back to do exactly what they claimed to have done. He wasn't particularly referring to this particular vendor or contract, but it's always a management issue. As mentioned by Councilman Jonathan, you can indeed spot where the sweeper has been by the dust trail. Councilmember Harnik said to Mayor Pro Tem Spiegel's point, there is the trash issue, and she understood President's Plaza is private property, but nonetheless the City is taking care of it to avoid blight. She asked if the City can explore another way to go about it. Mr. Greenwood said the scope of work could be added to the landscape contract to do monthly manual sweeping at the curb edges, which would address the trash issue and litter that would accumulate there. Councilman Jonathan commented he assumed the cost would be less than $35,000 a year. Mr. Greenwood said he wouldn't say that. Councilmember Harnik stated there are a lot of parking lots, which begged the question, what happens when the Reserves from President's Plaza are gone. Mr. Greenwood replied it was an issue that concerned staff as well. Councilman Jonathan moved to, by Minute Motion, continue this item to such time as staff can explore altematives available for sweeping and removing trash from parking lots, preferably ones that are more cost effective, versus extending the subject mechanical sweeping contract. Motion was seconded by Harnik and carried by a 3-1 vote (AYES: Harnik, Jonathan, and Weber; NOES: Spiegel; ABSENT: Tanner). Mayor Weber asked if Reserve funds were designated for street sweeping of the parking lots and/or can they be used for any other method. Mr. Greenwood replied that the method was not specified. 9 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 23, 2015 XII. RESOLUTIONS None XIII. ORDINANCES A. For Introduction: None B. For Adoption: None XIV. NEW BUSINESS A. REQUEST FOR APPROVAL OF THIRD AMENDMENT TO CONTRACT WITH VINTAGE ASSOCIATES, INC., THE SECOND ONE-YEAR EXTENSION OF LANDSCAPE MAINTENANCE AREA NO. 1, IN THE AMOUNT OF $132,600 AND INCLUDE REPAIR WORK AND SERVICES AT THE SPECIFIED CONTRACT AMOUNT NOT TO EXCEED 20% OF CONTRACT (CONTRACT NO. C32162, PROJECT NO. 901-11). Mr. Greenwood noted this item and the five that follow for a total of six items are very similar, which he would address at this time. This contract is an extension of an existing contract for a landscape maintenance area within the City. The City's latest round of contracts had generally been for a two-year original term, with the option for two 1-year extensions should both sides of the agreement are satisfied. In each of these six items being presented, both the contractor and the City have agreed that things are progressing nicely, and staff is recommending an extension of the existing contracts. Three of the items are in their second 1-year extension, and three are in the first of a possible two 1-year extensions. He said a couple of the items have minor additions because of additional trash pick ups at the Community Gardens. Staff recommended approval of all six items. Mayor Pro Tem Spiegel asked why the City didn't go out to bid. Mr. Greenwood replied the City did go out to bid originally, and the contract was for an initial 2-year term, which has now expired. Therefore, in each of these contracts, the potential for an extension is included. The reason for doing this, is that the bidding process is time consuming and expensive for both the City and contractor. He said these contracts are covered across a number of companies, it's not like all the work was focused on just one company; although, some of them do get more work than others. He said 10 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 23, 2015 the landscape contractors are happy with this situation and want to extend their contracts. Further responding, he confirmed these vendors were the low bidders originally. Mayor Pro Tem Spiegel moved to, by Minute Motion: 1) Approve Third Amendment to the subject contract with Vintage Associates, Inc., Bermuda Dunes, California, the second one-year extension for Landscape Maintenance Area No. 1, in the amount of $132,600; 2) include repair work and services at the specified contract amount not to exceed 20% of contract ($26,520); 3) authorize Mayor to execute the Amendment — funds are available in Account Nos. 110-4614-453-3370 - R/M Medians and 276-4374-433-3320 - Haystack Drainage Channel. Motion was seconded by Hamik and carried by a 4-0 vote (AYES: Hamik, Jonathan, Spiegel, and Weber; NOES: None; ABSENT: Tanner). B. REQUEST FOR APPROVAL OF SECOND AMENDMENT TO CONTRACT WITH VINTAGE ASSOCIATES, INC., THE SECOND ONE-YEAR EXTENSION OF LANDSCAPE MAINTENANCE AREA NO. 16, IN THE AMOUNT OF $169,584 AND INCLUDE REPAIR WORK AND SERVICES AT THE SPECIFIED CONTRACT AMOUNT NOT TO EXCEED 20% OF CONTRACT (CONTRACT NO. C32172, PROJECT NO. 916-11). Please see discussion related to this item under New Business Item A above. Mayor Pro Tem Spiegel moved to, by Minute Motion: 1) Approve Second Amendment to the subject contract with Vintage Associates, Inc., Bermuda Dunes, California, the second one-year extension for Landscape Maintenance Area No. 16, in the amount of $169,584; 2) include repair work and services at the specified contract amount not to exceed 20% of contract ($33,917); 3) authorize Mayor to execute the Amendment — funds are available in Account No. 110-4611-453-3320 - R/M Landscaping Services. Motion was seconded by Jonathan and carried by a 4-0 vote (AYES: Hamik, Jonathan, Spiegel, and Weber; NOES: None; ABSENT: Tanner). C. REQUEST FOR APPROVAL OF FOURTH AMENDMENT TO CONTRACT WITH VINTAGE ASSOCIATES, INC., THE SECOND ONE-YEAR EXTENSION OF LANDSCAPE MAINTENANCE AREA NO. 18, IN THE AMOUNT OF $95,244 AND INCLUDE REPAIR WORK AND SERVICES AT THE SPECIFIED CONTRACT AMOUNT NOT TO EXCEED 20% OF CONTRACT (CONTRACT NO. C32192, PROJECT NO. 918-11). Please see discussion related to this item under New Business Item A above. 11 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 23, 2015 Councilman Jonathan noted this contract included $100 a month for the maintenance of the parking lot own by a church, asking why the City was doing it. Mr. Greenwood explained the church parking lot is near the Cahuilla Hills Park, which has very limited parking and where the former pickleball courts are now back to tennis courts. The parking lot is also used as a significant access to the City's trail system. The City acknowledged that the public uses this private property and leaves trash there. Therefore, rather than requiring the City to get an easement and do a lot of formal paperwork, the property owner agreed to having the City pick up the trash and they in tum would not close the parking lot for public use. Mayor Pro Tem Spiegel moved to, by Minute Motion: 1) Approve Fourth Amendment to the subject contract with Vintage Associates, Inc., Bermuda Dunes, Califomia, the second one-year extension for Landscape Maintenance Area No. 18, in the amount of $95,244; 2) include repair work and services at the specified contract amount not to exceed 20% of contract amount ($19,049); 3) authorize Mayor to execute the Amendment — funds are available in Account No. 110-4611-453-3320 - R/M Landscaping Services. Motion was seconded by Jonathan and carried by a 4-0 vote (AYES: Harnik, Jonathan, Spiegel, and Weber; NOES: None; ABSENT: Tanner). D. REQUEST FOR APPROVAL OF SECOND AMENDMENT TO CONTRACT WITH KIRKPATRICK LANDSCAPING SERVICES, INC., A ONE-YEAR EXTENSION OF LANDSCAPE MAINTENANCE AREA NO. 2, IN THE AMOUNT OF$112,163.28AND INCLUDE REPAIR WORK AND SERVICES AT THE SPECIFIED CONTRACT AMOUNT NOT TO EXCEED 20% OF CONTRACT (CONTRACT NO. C32601, PROJECT NO. 902-13). Please see discussion related to this item under New Business Item A above. Mayor Pro Tem Spiegel moved to, by Minute Motion: 1) Approve Second Amendment to the subject contract with Kirkpatrick Landscaping Services, Inc., Indio, Califomia, a one-year extension for Landscape Maintenance Area No. 2, in the amount of $112,163.28; 2) include repair work and services at the specified contract amount not to exceed 20% of contract amount ($22,433); 3) authorize Mayor to execute the Amendment — funds are available in Account No. 110-4614-453-3370 - R/M Medians. Motion was seconded by Jonathan and carried by a 4-0 vote (AYES: Harnik, Jonathan, Spiegel, and Weber; NOES: None; ABSENT: Tanner). 12 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 23, 2015 E. REQUEST FOR APPROVAL OF FIRST AMENDMENT TO CONTRACT WITH VINTAGE ASSOCIATES, INC., A ONE-YEAR EXTENSION OF LANDSCAPE MAINTENANCE AREA NO. 4, IN THE AMOUNT OF $142,680 AND INCLUDE REPAIR WORK AND SERVICES AT THE SPECIFIED CONTRACT AMOUNT NOT TO EXCEED 20% OF CONTRACT (CONTRACT NO. C32611, PROJECT NO. 904-13). Please see discussion related to this item under New Business Item A above. Mayor Pro Tem Spiegel moved to, by Minute Motion: 1) Approve First Amendment to the subject contract with Vintage Associates, Inc., Bermuda Dunes, California, a one-year extension for Landscape Maintenance Area No. 4, in the amount of $142,680; 2) include repair work and services at the specified contract amount not to exceed 20% of contract amount ($28,536); 3) authorize Mayor to execute the Amendment — funds are available in Account No. 110-4614-453-3370 - R/M Medians. Motion was seconded by Harnik and carried by a 4-0 vote (AYES: Harnik, Jonathan, Spiegel, and Weber; NOES: None; ABSENT: Tanner). F. REQUEST FOR APPROVAL OF THIRD AMENDMENT TO CONTRACT WITH KIRKPATRICK LANDSCAPING SERVICES, INC., A ONE-YEAR EXTENSION OF LANDSCAPE MAINTENANCE AREA NO. 7, IN THE AMOUNT OF $101,535 AND INCLUDE REPAIR WORK AND SERVICES AT THE SPECIFIED CONTRACT AMOUNT NOT TO EXCEED 20% OF CONTRACT (CONTRACT NO. C32621, PROJECT NO. 907-13). Please see discussion related to this item under New Business Item A above. Councilmember Harnik moved to, by Minute Motion: 1) Approve Third Amendment to the subject contract with Kirkpatrick Landscaping Services, Inc., Indio, Califomia, a one- year extension for Landscape Maintenance Area No. 7, in the amount of $101,535; 2) include repair work and services at the specified contract amount not to exceed 20% of contract amount ($20,307); 3) authorize Mayor to execute the Amendment — funds are available in the respective Landscaping and Lighting District Accounts. Motion was seconded by Spiegel and carried by a 4-0 vote (AYES: Hamik, Jonathan, Spiegel, and Weber; NOES: None; ABSENT: Tanner). 13 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 23, 2015 G. REQUEST FOR AWARD OF CONTRACT TO WESTCON CONSTRUCTION GROUP, INC., IN THE AMOUNT OF $76,930 FOR CONSTRUCTION OF THE TIERRA DEL ORO STREET IMPROVEMENT PROJECT (CONTRACT NO. C34220, PROJECT NO. 608-15). Mr. Greenwood stated this project is located next to the Cahuilla Hill Parks parking area. The pavement is severely deteriorating and the Tierra Del Oro bridge over the Palm Valley Channel has some mandated work that needs to be done. CalTrans inspects all the bridges throughout the State and Tierra Del Oro came up on the list as needing minor repair, which is included in this contract. Responding to question about Brush Bridge, he confirmed it needed similar maintenance and it will come up at a later time. Councilman Jonathan commented he was pleased the low bidder was a local vendor. Mayor Weber questioned why both bridges weren't being repaired at the same time. Mr. Greenwood replied this started out as a street project and staff took the opportunity to include the bridge work, since it's directly adjacent. He's looking at this as a learning opportunity of how to specify and bid these kinds of minor bridge repairs efficiently, which he believed was accomplished. He said staff was limited to the one bridge just because it was a learning experience. Councilman Jonathan moved to, by Minute Motion: 1) Award the subject contract for Construction of the Tierra del Oro Street Improvement Project to Westcon Construction Group, Inc., Indio, Califomia, in the amount of $76,930; 2) authorize the Director of Finance to set aside a 10% contingency for the project in the amount of $7,693; 3) authorize Mayor to execute the contract — funds are available in Account No. 110-4311-433-3320 - Street Resurfacing. Motion was seconded by Spiegel and carried by a 4-0 vote (AYES: Hamik, Jonathan, Spiegel, and Weber; NOES: None; ABSENT: Tanner). H. REQUEST FOR APPROVAL OF AN AGREEMENT WITH THE LEW EDWARDS GROUP TO PROVIDE STRATEGIC CONSULTING SERVICES (CONTRACT NO. C34330). Economic Development Manager Ruth Ann Moore stated the proposed Agreement is for a consultant contract with the Lew Edwards Group (LEG) that specializes in ballot measure preparation and public education. The contract is for Step 1 of the proposal that is attached to the staff report, which is the assessment of all the residents that constituents use for public opinion and research. The consultant will develop a survey to gain knowledge concerning the community's opinion and views on various issues, such as 14 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 23, 2015 quality of life and City services. They will also gain an understanding of how Palm Desert residents prioritize those things within the community. The survey will be conducted by phone and email to gain statistically reliable number of respondents within demographics spread throughout the community. Once the survey is complete, the City will receive the results from Lew Edwards along with their recommendation for moving forward toward placing a measure on the 2016 General Election. Should their recommendation be to move forward with the ballot measure and Council is so inclined, staff will return with an additional contract for Step 2 of the project, which is implementation of the public information part of the program. Step 2 is not being included at this time because the City needs to receive the information back from the survey to understand how much work will be required in the future. Mayor Pro Tem Spiegel asked if the City didn't already know why the measure failed and are citizens aware that 50% of the General Fund Budget will go to Police and fire. Ms. Moore replied staff thinks it knows why the measure failed, and it was going to be very important to educate people on why the measure is being placed on the ballot, which is what staffs role would be. She said it was not an advocation rather an education of it. Mayor Pro Tem Spiegel noted for the benefit of the audience that this dealt with Hotel Occupancy Tax, stating Palm Desert has the lowest in the Valley at 9%, and almost the lowest in the United States. The City is requesting that it go up to 11 %, which will still make Palm Desert the lowest in the Valley. He said other cities are at 11 % and Palm Springs is as high as 16%. He believed the City tried to sell the measure the wrong way the last time around, and if staff felt it was necessary to hire a consultant, then it must be necessary. Councilmember Hamik stated she has had the opportunity on a couple of occasions to hear presentations done by the Principal of this organization, and they do an excellent job of breaking things down. She said they do their best to understand the community's needs and ways to develop strategic communication and messaging for the community, which was critical if the City was going to get the best results. Councilman Jonathan said that a commitment to this expenditure appeared to be based on an assumption that this Council wants to place another measure on the ballot for raising the Transient Occupancy Tax (T.O.T.). However, he didn't recall having that discussion and wouldn't it make more sense to have that discussion first before the City commits to spending $40,000 toward a survey of the residents. 15 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 23, 2015 Ms. Moore responded that part of the reason to do the survey is to understand what the citizens understand the value of it to be, and that will hopefully assist the Council in determining whether it wants to place it on the ballot. She said the consultants will also provide their recommendation, if they see within the survey results, whether it would be viable to put it on the ballot. Councilman Jonathan said that was his point, these surveys gauge the viability and likelihood of success of these types of ballot measures. If the Council took an extreme situation where this Council reviews the issue and determines it didn't want to do it, not saying it would happen, but let's say it did, then this $40,000 would be wasted regardless of the viability in the likelihood of success. He asked if there had been consideration given to the basic premise of whether or not the Council wants to even move in that direction again before committing these resources. Mayor Weber recalled the last survey was done with a mail out where residents were asked what they thought about their City services. Ms. Moore said that to her knowledge there was no survey done prior. Mayor Weber stated she was referring to the survey sent out to residents that asked if they liked their quality of life and where funds should be spent, which was done about 10 or 15 years ago. Her question was how would the City get phone numbers and emails to contact people, instead of doing it by a mail out, because this would be a totally different survey than the ones seen in the past. Mr. Wohlmuth explained this survey will primarily identify the issues and methods to educate for an item on the ballot. In response to Councilman Jonathan's question, in order to place a ballot measure in the November 2016 election, the Council will first be presented with an Ordinance in June or July 2016. He explained that once a measure is placed on the ballot, the Council can no longer advocate or spend money to educate, so it needs to be done prior to the Council passing that ordinance. As far as identifying with this current Council whether it should be placed on the ballot, the most prudent action would be to wait until that point when it has to consider adopting an ordinance to place it on the ballot. At that time, which may be June or July 2016, there might be a different Council. Therefore, he suggested the Council award the contract for Step 1 to the Lew Edwards Group. Mayor Pro Tem Spiegel moved to, by Minute Motion: 1) Approve an agreement with the Lew Edwards Group in the amount of $39,750 for Strategic Consulting Services to assess constituent views on City services, customer satisfaction, fiscal and revenue issues; 16 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 23, 2015 2) appropriate funds in the amount of $39,750 from the Unobligated General Fund to Professional -Other Administration, Account No. 110-4430-422-3090 for this purpose; 3) authorize City Manager to execute said contract. Motion was seconded by Harnik. Councilman Jonathan stated he wasn't opposed to putting it on the ballot, but he felt this was putting the cart before the horse. He believed the City needed to go through the proper process of evaluating whether or not, from a policy standpoint, the Council would advocate putting this measure on the ballot again, and if so, how would it be different. He recognizes he may be the only one that felt this way, and it was not a bad thing, but the last time it was on the ballot, there was an indication that there would be a commitment to marketing, and this time he's hearing it will be for Police and Fire. He said he would like to get input from the stakeholders and hoteliers to gauge how they feel about it, and based on that, make a decision on whether or not to move forward with the proposed measure on the ballot and/or the proposed contract. He reiterated he believed this was putting the cart before the horse. Mayor Pro Tem Spiegel pointed out the general manager of the Marriott wrote an editorial in The Desert Sun saying this was the right way to go. Councilman Jonathan replied that things change, including the general managers of the Marriott. Again, he wasn't disagreeing, but he saw no reason for not following the proper process on something as significantly as this. Councilmember Hamik agreed this was significant, but to define proper processes was certainly not held by only one person. The general manager at the Marriott has not changed, there have been extensive discussions in the Hotel and Special Events Committee about this, there was also a four - fifth vote on the Council at one time, and those votes in favor of putting the measure on the ballot are still here. She said it was a valid measure and what is being sought here was more information so that the Council can determine what is best for the community, how to present it, how to educate, and where the need should be met. She said the Council needs solid information from professionals who do this for a living, and know how to take information, analyze it, and provide results. She further stated that if this Council thinks it can make a decision without strong information, it's kidding itself. Lastly, she stated the City should look to the professionals and the Lew Edwards Group is outstanding. Councilman Jonathan noted he had started off his comments by saying he may be the only one that felt this way, and there was nothing wrong with it, but things have changed, and he wasn't only referring to the Marriott. He said the landscape has changed along with the environment and economy, and the four -fifth's that voted in favor will hopefully take a fresh look. One of 17 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 23, 2015 his favorite Councilmembers often has a quote of saying, "The way we've always done it before is not a place to end, but a place to start," so he hoped she still felt the same way. He said a fresh look at the issue would be appropriate here. Mayor Weber commented that for a fresh look, the Council was talking about having a professional obtain more information so that the Council can analyze it with fresh eyes. She said the Council didn't know how to gauge the residents' overall attitude or know what their priorities on revenues and interests are. Once that information is obtained, the Council will then have a better ability to judge whether or not it wants to endeavor a ballot measure again. She added the Council needed more education, because it was clearly lacking the first time around, and as mentioned by staff, the focus will be on education. Additionally, the Council will find out the areas that it will want to further educate the population, stating education was important for everything it did in the City. Councilmember Hamik agreed, stating the Mayor made some great points, adding that the results will assist the Council in other facets of the community going forward in the City's development. Mayor Weber called for the vote and the motion carried by a 3-1 vote (AYES: Harnik, Spiegel, and Weber; NOES: Jonathan; ABSENT: Tanner). I. CONSIDERATION OF THE 2015 SUMMER REGULAR CITY COUNCIL MEETING SCHEDULE (JULY AND AUGUST MEETINGS). Ms. Klassen stated in the past couple of meetings with some other scheduling changes, the Council had asked about defining the summer schedule. As Councilman Jonathan noted at the last meeting, Palm Desert has traditionally observed having the first regular meeting in July then cancelling the second meeting in July and then cancelling the first meeting in August and conducting the second regular meeting in August. However, several years ago, because of Councilmembers schedules, the City held the first regular meeting in July and first regular meeting in August, which was also an option, stating the schedule was at the Council's pleasure. Mayor Weber pointed out that if something of importance came up, in the past, a meeting would be called for the Council to show up. Ms. Klassen agreed, stating a meeting can be called provided there is a quorum available. Further responding, she said staff was asking for Council to take action on the summer schedule with the understanding that the regular dates will be held in reserve in case there was a need that came up. 18 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 23, 2015 Councilman Jonathan moved to, by Minute Motion, direct that staff observe the Council's traditional summer schedule of conducting the first regular meeting in July (July 9), the second regular meeting in August (August 27), and cancelling the second meeting in July and first meeting in August, with the understanding that if matters come up requiring action in the interim that a regular meeting can be conducted on a date that is being considered for cancellation. Motion was seconded by Spiegel and carried by 4-0 vote (AYES: Harnik, Jonathan, Spiegel, and Weber; NOES: None; ABSENT: Tanner). XV. CONTINUED BUSINESS None XVI. OLD BUSINESS None XVII. PUBLIC HEARINGS A. CONSIDERATION OF THE ADDITION OF PALM DESERT MUNICIPAL CODE CHAPTER 3.47 - AFFORDABLE HOUSING IMPACT FEE - TO ESTABLISH AN AFFORDABLE HOUSING FEE FOR NEW RESIDENTIAL DEVELOPMENT WITHIN THE CITY OF PALM DESERT. Ms. Aylaian stated that due to the in-depth Study Session just one hour ago, she would provide an abbreviated presentation for those individuals who weren't able to take advantage of the Study Session. She said the City took a Nexus Study to identify what impact the increase in market -rate housing would have on the City's need for affordable housing. This was done recently in response to the City's desire to promote economic development, because it will be looking at increasing the hospitality sector in particular, which is a sector that takes a great deal of employees and staff who are generally paid at a rate that is insufficient to allow them to live in Palm Desert. She noted Palm Desert is out in the lead ahead of the other cities in this regard, and that is in large measure due to the fact that Palm Desert has far more retail jobs and greater need for service industry employees than neighboring cities. Therefore, Palm Desert has a greater need for affordable housing. The Nexus Study took a look at a typical 100-home development of market -rate housing to be started in an area such as Palm Desert and looked at the number of people that it would bring to town. For Palm Desert it was an average of 2.05 people per household, which equated to 205 people that it would add to the population. For those 205 people, a certain number of people are required to service their needs, in particular, there would be 26 people that would be required to service them from a retail and restaurant service industry; 13 people from the service industries such as beauticians, teachers, mechanics; 6 government workers; 3 health care workers such as 19 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 23, 2015 nurses and doctors; and 1 person who would be typical from the entertainment industry. She said these numbers are specific to a $600,000 home. Those who live in houses that cost $200,000 typically have a lesser need for service industry workers, and those living in an $800,000 to $1,000,000 would have a greater number. The Study then took a look at how many homes would be necessary to house these people in each of these industries. For the industries identified, there is information to correlate to the number of household they will form for the number of workers. In other words, for every one teacher, a household might be formed; for every three waiters/waitresses, an individual household might be formed. The Study took a look at those number to see how many households would be created by the addition of one hundred $600,000 homes in Palm Desert, which equated to 31 homes. Of those homes, individuals occupying them would only have adequate income to house themselves in six of the 31 homes, with the others requiring some form of a subsidy or affordable housing. After going through 115 pages of detailed calculations, the Nexus Study revealed, to no great surprise, that luxury homes have a greater need for service industry workers than do lower priced homes, and therefore, have a lesser impact on the community as a whole. The Study identified the burden on a cost per square foot for building homes that ranged in the $200,000 to $1.2 million. They did this at every $200,000 intervals for home prices and identified the cost to the community for providing affordable housing for the 205 people coming in at market -rate, and the cost ranged from $9 to $12 per square foot. If one looked at market -rate apartments, the need for affordable housing generated by 100 market -rate apartments, the cost would be $13 to $20 per a square foot. The numbers were reviewed because they were higher than staff believed would be palatable for any developer who was wanting to build in Palm Desert's environment. Staff introduced additional considerations they felt were relevant, starting with feasibility. The last thing the City would want to do is price itself such that it was not feasible to build market -rate housing in Palm Desert, because it wants to remain competitive and welcoming to single-family home developers. The results of the Feasibility Study are in a six -page memorandum to the Council from Economic & Planning Systems, Inc. (EPS), which she felt was worth reading because it focused more directly on the recommendation made. She said a number of fees were tested on a fee per square foot basis for buying ability relative to the cost of development in Palm Desert and relative to the value of land. The balance of community needs was then reviewed versus developers concems. She said developers are in it for profit and they are looking to make an appropriate margin on their investment and is due a reasonable return. Developers are also looking for certainty in development costs, which hasn't been discussed much, but much like the Multi Species Habitant Conservation Plan and the fee that was adopted Valley wide, this is something that helps developers know what they're getting into. As it is now, developers wanting to build market -rate housing are asking what kinds 20 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 23, 2015 of requirements are needed for providing affordable housing. Palm Desert didn't have a fee that developers can opt to pay, and it is negotiated on an individual project by project basis. She said it can be protracted, and in some cases, it can take greater than a year. An affordable housing fee would allow a developer to know how much it will cost and recognize that affordable housing in not appropriate in every community or every part of the City. By having a fee, a developer is able to pay a certain amount into a fund and know it's done and over with and it won't take an extra year with negotiations with the City. It will also not require the developer to put an affordable housing component in their project, if it's not appropriate. Additionally, the City needs to balance the developers' concems against the community concems, which is that there is a need for affordable housing that is increased every time the City provides more market -rate housing. The community would also agree that it's not appropriate to put affordable housing in every project. Therefore, rather than try to force a component in each project, allowing payment into a fee would allow for construction of apartments, which is probably the most appropriate vehicle for affordable housing in locations that are suitable for the community as a whole. When staff made its recommendation, it considered context, stating other Valley cities are currently not assessing fees on affordable housing. As mentioned previously, Palm Desert is probably out on the lead simply because it has a greater need; it has more retail and hospitality jobs than other Valley cities. Palm Desert has a long proud history of providing good affordable housing programs for its residents, but it needs to keep in mind what the fees for developers are in other Valley cities, because it didn't want to place a $9- to $20 per square foot fee, such that it becomes more expensive than any other city to develop. Staff also considered the Regional Housing Needs Assessment (RHNA) and how many homes at different levels of affordability will be required to be planned under State Mandate, which is 165 homes at an affordable level, but a total of 416 homes at all levels of affordability. However, the restricted affordable home is 165 between now and the year 2021. Therefore, EPS looked at how much money would be generated and how the fee revenue would be used to determine whether or not the amount of money that could potentially come in would meet Palm Desert's affordable housing needs; would it be sufficient?; or would it accumulate so much money that it was more than what would be needed. She said staff didn't want to go to either end of the extreme. With regards to context, she has detailed information, which will be provided to Councilman Jonathan who requested these numbers for the fees. The information shows, relative to other communities and cities, Palm Desert's current fees for developing are right in the middle of all Valley cities. If the fee were to be established at $1 per square foot, it would slide Palm Desert over to be a little bit more expensive than Palm Springs in Riverside County, and if raised to as much as $3, Palm Desert will have the more expensive fees for development. However, none of the fees considered were even close to the most 21 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 23, 2015 expensive City, which is Coachella. Based on all those considerations, staff recommended a fee of $2 per square for market -rate homes and apartments, as well as for additions involving new bedrooms being added on to existing homes, reason being that when you add bedrooms you add more residents, which will require more services from service industry workers. The total fee generated against need is as follows: Over the course of the build out of Palm Desert, which is anticipated within the next 20 years, the fee can generate somewhere between $14- and $24.5 million. The more density and larger house size, more would be generated, but if the City was at the lower end of the spectrum, it would generate fewer fees, stating it was impossible to be more specific than this. The types of things that can be accomplished with these fees are: the City can build 69 to 121 affordable apartments, or subsidize 100 apartments for approximately 30 years, or purchase covenants restricting some of the units to be affordable and to subsidize them, which was one of the most cost-effective methods to providing affordable housing. Additionally, if there are blighted apartments that need to be renovated and improved, which is a preferred method, the City can renovate between 117 and 204 apartments. Further, the apartments can be subsidized to an affordable level, which will require additional money/revenue from other sources. The City can also extend covenants, stating the City has a couple of larger apartment complexes where there are a number of units that are restricted to affordable incomes and staff can negotiate with the owner to extend the covenant for a couple of years for up to 30, 40, or 50 years. According to her calculations, if the covenant is extended for 45 years, it can be done for 140 to 245 apartments with the potential revenue from the fee. She encouraged the Council to open the public hearing to hear testimony from the public and offered to answer questions. Mayor Weber declared the public hearing open and invited public testimony FAVORING or OPPOSING this matter. MR. NATHAN A. MILLER, Building Industry Association (BIA) of Riverside County, stated staff's recommendation was broad and an overreach to the industry. He said there was a statement made that it was equated to the fees that builders pay with regards to Multiple Species Habitat Conservation Plan (MSHCP), which was apples and oranges. Staff also talked about the certainty of builders meeting environmental needs at the front end as opposed to the back end, which is what the MSHCP is about. However, there are no developers that are in support of this, and Palm Desert would be the only City in Riverside County making an attempt to subsidize what is called low-income housing by making developers pay for it. He said it was on par with charging an additional increase of another school fee, which was a significant fee that builders paid. The $2 recommendation is lower than what the Nexus Study supposedly supported, stating it was not a gift to the 22 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 23, 2015 industry and definitely a negative impact should it pass. He said it was an inequitable solution, and in many regards the BIA felt it was unlawful. Market demand would seem to indicate there isn't a need for it, if there was, it would be seen. He read out loud from the letter dated April 23, 2015, from the BIA, which was in Council's packet and is on file and of record in the Office of the City Clerk as follows: "It should be noted at the onset that we greatly appreciate the opportunity to comment. We do regret that we have been forced to communicate our concerns in this rushed manner, and so close to the scheduled Council meeting. However, BIA and other members of the public were not given adequate prior notice of this proposed action, nor any meaningful opportunity to review the associated nexus studies that assumes to supports the proposed resolutions - other than a workshop two hours prior to this meeting. The BIA did not receive notification until April 13, 2015, and then had to request for an electronic copy of the study which was not initially provided. There was no advance informal meetings between staff and the affected stakeholders, nor any study sessions or opportunities to question the consultant about the novel methodology and assumptions used in creating the Nexus Studies, nor to discuss the negative impacts of this fee on all housing construction activity in Palm Desert. We strongly recommend that this matter be deferred and continued, to allow for public review and input, should the Council choose or choose not to consider it at a later date." He noted the BIA has a notification letter on file with the City requesting at least 14 days of notice and they were given 10, stating the 14-day notice is the letter of the law. He resumed reading out loud as follows, "The BIA does not question the importance of attempting to improve the affordability of housing in Palm Desert and other Riverside County communities that is a worthy and legitimate public objective. The BIA and its members are among the most supportive advocates for constructive reasonable, and lawful measures that will actually improve the supply and affordability of housing, including policies promoting the increased production of homes affordable to residents in all income ranges. Local governments concerned about the affordability of housing should therefore be encouraging new housing production and adopting policies to incentivize new housing development as opposed to creating new burdens on housing development that many have determined to be counterproductive as such is the case with inclusionary zoning types of impact fees." He thanked the Council for the opportunity to speak on this matter. Mayor Pro Tem Spiegel inquired about the statement made that there are no other cities in Riverside County with this impact fee. MR. MILLER stated that no other city in Riverside County has this type of inclusionary zoning type of impact fee. 23 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 23, 2015 Councilman Jonathan stated he was curious if there were other cities in Riverside County that have been successful in creating affordable housing without the use of a mitigation fee such as this. MR. MILLER said he lives in the City of Corona, which has a lot of affording housing and they haven't used these types of fees to accomplish it, or any other entity incorporated or otherwise throughout Riverside County. Councilman Jonathan said he understood and encouraged Mr. Miller to do a little bit of research where he could provide hard data. He said the information would be very useful for him to know if there are other communities, especially if they are similar to Palm Desert that have been successful in creating affordable housing. MR. MILLER replied that was exactly the point of their recommendation of having the matter postponed. He said they would like to sit down with staff to find and be part of the solution as they are partners with the City, stating their relationship with staff wasn't adversarial. He reiterated their recommendation was to postpone this matter. MR. MATT NEVINS, RJT Homes, Redlands, CA, was called to speak, but then declined, stating there was nothing further to add. MR. RUDY HERRERA echoed the BIA's comments, stating more time was needed to dive into the details to see if it was a viable fee that needs to be implemented. He briefly looked at the context as Council did at today's Study Session, stating he paid fees at multiple cities in this Valley and multiple States, and they seem a little distorted. For instance, Indio has an $8,000 per home infrastructure charge for a storm drain, which skews things, and if he had more time he would elaborate on other cities like Palm Springs, Rancho Mirage, and La Quinta. He encouraged the Council to take more time to make a decision on this matter. MR. CHAT MEYER, RJT Homes, Portola Avenue, Palm Desert, CA, stated they are a residential developer in the Desert since 1998 and owns property in Palm Desert since 2004. He said contemplating any fee for new residential construction puts a lot of pressure on the industry and on an already price -sensitive market. They are concerned the Council may consider adopting this unique fee, which may very well cause Palm Desert to have the most expensive building fees in the Desert. MR. BOB GARRISON, The True Life Companies, Newport Beach, CA, stated the company does business in northern and southern Califomia, Arizona, and Colorado, and they are a residential single-family development builder. He said they are under contract to purchase the property owned by 24 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 23, 2015 Matt Nevins and Chat Meyer, Santa Rosa Golf Club, and the adjacent property known as Catavina. He said they would like to do business in Palm Desert because it is a great location. He said they are opposed to the affordable housing fee, and just for context, their research indicates that out of the 28 cities in the County of Riverside, if this fee is adopted, Palm Desert would be the only city with a citywide inclusionary housing fee, as stated earlier by the BIA representative. In reviewing the DVBA study, the City of Palm Desert's impact fees are the fourth highest in the Valley, and if the proposed fee is added, Palm Desert will be near or at the top. If the affordable housing fee is implemented, it won't be an easy path where it's simply passed on to the home buyer, because this was a price sensitive area as mentioned by Mr. Chat Meyer, which was absolutely true. He said average sale prices here are not the same where the inclusionary housing fees are generally implemented like in the coastal zone bay area; the Nexus Study actually reads that way and talks about it. He respectfully requested a no vote on this fee or, at the very least, a reduction on the fee. MS. NIKOHL VANDEL, Desert Hot Springs, Ca, stated that in October a gentleman came to speak about the conflict with affordable housing, which she was trying to follow, but the ball got dropped. She didn't know if at the current affordable housing reality, if the City has resolved the conflict that was created. In her past life, she was fortunate to work with real estate developers, none of whom would come here to say no to a fee for affordable housing. In fact, they would say, "This is how were going to use that fee to help you, help us, help the community, so that it didn't have a ghetto." But then you have staff saying let's put them all in apartments. She questioned what kind of quality of life the Council wanted to have for all its residents, because people need homes to live in. She said apartments are for people from age 17 to 25 until they get married and move on, which should be the type of community the Council should want, even for the service industry workers, because Palm Desert can afford it. She said these developers can't afford it, and Palm Desert doesn't want to have developers that will say they want their people in apartments. You want developers that come here and say "Where is the need and how can we balance our bottom line with your bottom line." She agreed this matter needed to be discussed further. MS. GRETCHEN GUTIERREZ, CEO of the Desert Valley Builders Association (DVBA) in the Coachella and Imperial Valley's, stated they provide service to more than 200 member companies in the development and home building industries. She thanked the Council for the workshop held earlier this afternoon, which was very informative. They also appreciate the engagement with City staff to date, specifically with Director of Planning Lauri Aylaian. As been mentioned already, there is lot of issues and information for the Council to gain, glean, and make an informed decision on. She asked the Council not to make a rush or hurried decision on this topic, 25 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 23, 2015 stating that all the cities in California are dealing with the fact that they have an affordable housing need, whether they are a build out communities or still growing such as Palm Desert. Unfortunately, Redevelopment went away, which was a long subsidy for most of the communities, but it's no longer an option, so altematives are being sought. The Council had a proposal brought forward today as an alternative, which DVBA believes is not the right one. She believes members of the industry can reach an accord, but it will entail more time, thought, and discussion. She said there was a lot of information given to the Council at the Study Session today, and there have been discussions with DVBA along with City staff, and she would like to continue that discussion moving forward. She noted that for every $1,000 increase on the sale price of a home, 10,000 potential home buyers within the State of California are being priced out. She said there is a severe housing crisis at all levels within the State of Califomia and it needs to be met, because it hadn't been met in the past two+ decades. Secondly, there was a chart provided as part of the DVBA fee study that showed where Palm Desert ranked within the Coachella Valley, but one of the factors not included was the land value cost estimate. She said any type of increase in fees whether it's $1 or $2, the land cost has to be factored in, which will make Palm Desert the most expensive city to do business in the Coachella Valley. She thanked the Council for the opportunity to speak on the matter, stating the exchange of information between the DVBA and staff has been very informative. Councilman Jonathan agreed the Council was presented with one option. If the objective is to facilitate more affordable housing, and there are other options that can accomplish the goal, he would be interested in learning about them, especially if they have been tried and true Statewide. MS. GUTIERREZ responding to the question raised at the Study Session on whether the State was doing anything to assist with this problem, she said there are currently two pieces of legislation at the State, Assembly Bill 82 and Assembly Bill 1335. She said one of them would create a $75 transfer recording fee on all real estate transactions whether they were on existing or resale transactions that would go into a fund that could be used at the local cities level for affordable housing. There is also a creation of a low-income housing fund, which is Assembly Bill 82. She said both bills are currently working their way through committees at the State level. Therefore, there is the potential for something at the State level to assist local jurisdictions in their housing needs, which was an option, but it was not tried and true. However, there is availability of other methods out there that need to be continued to be pursued. Councilman Jonathan asked if the proceeds would go to the State and then disbursed in some manner to the cities. 26 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 23, 2015 MS. GUTIERREZ responded that on the $75 transfer fee, the funds would be collected as part of the closing documents, and the assumption is that there would be an agency that would collect those funds and in turn have to be transmitted to the local agencies. She noted this has been attempted before and has failed, but she is hoping this time around they will be successful. Councilmember Harnik asked that staff take a look at those bills and if there is one for the Council to get behind and push, it would like to get involved with other entities that can assist with the effort. She said between the BIA, DVBA, League of Califomia Cities, and lobbyist, all can help push those bills through. With no further public testimony offered, Mayor Weber declared the public hearing closed. Councilmember Harnik pointed out there is a premium to living in Palm Desert, because the location is the best and it's close to everything with wonderful amenities, and the Council understands land value is higher here, and why people want to live in Palm Desert. Therefore, she agreed this topic deserved more exploration, and she would like to hear back from both BIA and DVBA of other solutions from other cities in the State. Councilmember Hamik moved to continue this matter to the meeting of May 28, 2015. Motion was seconded by Spiegel. Councilman Jonathan said there is a comment that caught his attention from the staff report, which is as follows: "It is important to acknowledge the interest of the residential developers and single-family homebuilders in Palm Desert, all of whom will be opposed to an increase of fees charged for development." He agreed with the first portion of the statement that it was important to acknowledge the needs of the development community, because at the end of the day, the City didn't build anything and the development community did. Therefore, it was important for all to work together. However, he wasn't sure he agreed with the second portion of the statement, because he believed people here are willing to work together, stating he believed developers understand that affordable housing is important and necessary for the well being of a community, and if done right, it can enhance the community. He hopes he's not being naive to think everyone can find a way to work together to create a solution that is acceptable to both the development community and the City that accomplish the goal of creating quality affordable housing. Mayor Pro Tem Spiegel stated there were four weeks to convince the Council to change what it proposes to implement. He said everyone heard 27 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 23, 2015 the remarks made at this meeting and at the Study Session, so everyone knows who they need to talk to, including the Council. He said the Council was available to hear others thoughts and input on how it should proceed, because Palm Desert will have affordable housing, it's a fait accompli, and the idea is to make it easier on the developer. Mayor Weber noted the motion was to continue this item for four weeks; therefore, she re -opened the public hearing. Mayor Weber called for the vote and the motion carried by a 4-0 vote (AYES: Hamik, Jonathan, Spiegel, and Weber; NOES: None; ABSENT: Tanner). B. REQUEST FOR APPROVAL OF THE IMPLEMENTATION OF TAX ROLL BILLING FOR RESIDENTIAL SOLID WASTE COLLECTION AND AN AMENDMENT TO PALM DESERT MUNICIPAL CODE SECTION 8.16 - SOLID WASTE. Ms. Riddle stated on April 9 the City Council conducted a Study Session to discuss the integrated Solid Waste Management Franchise Agreement with Burrtec Waste and Recycling Services. One of the items discussed was the Residential Tax Roll Billing for non -gated or non -master billed residences. Approval of the Tax Roll Billing will generate $1.06 per customer to the City, which would be allocated $0.73 to the Recycle Fund and $0.33 to the General Fund. The first step for Tax Roll Billing is through the amendment of the Palm Desert Municipal Code through the amended Ordinance that Council is considering this evening. Approval of the Ordinance will allow staff to move forward with the Tax Roll Billing process, part of which is required by the County. Other items discussed were the terms and conditions of the Franchise Agreement as well as fees and programs that will be brought before Council at either the May 28 and/or June 11 meeting for consideration. Mayor Weber declared the public hearing open and invited public testimony FAVORING or OPPOSING this matter. With no public testimony offered, she declared the public hearing closed. Mayor Pro Tem Spiegel said it was the right thing to do. Mayor Pro Tem Spiegel moved to: 1) By Minute Motion, approve implementation of Tax Roll Billing for Residential Solid Waste Collection and filing of same with the County of Riverside Assessor's Office; 2) waive further reading and pass Ordinance No. 1284 to second reading, approving an amendment to Palm Desert Municipal Code Section 8.16 - Solid Waste - for this purpose. Motion was seconded by Jonathan and carried by a 4-0 vote (AYES: Harnik, Jonathan, Spiegel, and Weber; NOES: None; ABSENT: Tanner). 28 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 23, 2015 C. REQUEST FOR APPROVAL OF AN INCREASE TO THE WATER QUALITY MANAGEMENT PLAN DEPOSIT FOR PLAN REVIEW SERVICES FROM $2,000 TO $3,700. Mr. Greenwood stated State water quality regulations require the City to have certain development projects prepare a Water Quality Management Plan for their storm water runoff that will be generated from their proposed development, which is a process the City has been doing for a few years now. The City previously established a deposit of $2,000 to cover the City's cost for reviewing the study. However, over the last year staff has been tracking the actual cost, and it turns out its more like $3,700 rather than $2,000, requiring staff to go back to the developer for more money toward the end of the approval process. Staff is requesting the Council approve the increase to the deposit to $3,700, which is closer to the average cost to perform the review. If approved, staff won't have to ask the developer for more money. Responding to question as to why this was a public hearing, he said because it was a fee increase. Ms. Klassen added it was the same nexus as the affordable housing, stating it was a development impact fee. Councilman Jonathan asked if it was a deposit or a fee and what would happen if the review went quickly only costing $2,500. Mr. Greenwood explained it was a fee deposit, representing the cost of the review, and the City would reimburse the developer the difference if the cost was less than the deposit. Mayor Weber declared the public hearing open and invited public testimony FAVORING or OPPOSING this matter. With no public testimony offered, she declared the public hearing closed. Mayor Pro Tem Spiegel moved to waive further reading and adopt Resolution No. 2015 - 28, increasing the Water Quality Management Plan (WQMP) Review Deposit amount from $2,000 to $3,700. Motion was seconded by Harnik and carried by a 4-0 vote (AYES: Hamik, Jonathan, Spiegel, and Weber; NOES: None; ABSENT: Tanner). XVIII. REPORTS AND REMARKS A. CITY MANAGER 1. City Manager Meeting Summaries for the Period of March 30 - April 10, 2015. 29 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 23, 2015 Mr. Wohlmuth noted the printed report provided in the agenda packets and offered to answer questions. With City Council concurrence, the Meeting Summaries were received and filed. 2. City General Fund Loans to Former Redevelopment Aaencv Mr. Wohlmuth reported that an important milestone for the City occurred: on February 23, 2015, the Oversight Board of the Successor Agency to the Palm Desert Redevelopment Agency unanimously approved a resolution to re-establish the City loans to the former Redevelopment Agency. He explained they were loans the City made to the Redevelopment Agency (RDA) for various projects and exceeded $22 million in total. On April 10, 2015, the City received the State Department of Finance's determination that approved the Oversight Board's resolution, thereby making the loans an enforceable obligation of the Successor Agency. Therefore, the City will receive its $22 million back. Upon inquiry, he said the money will go to the City's General Fund, because that was where the loans were originated to the RDA when they were made. He went on to say that repayment of the City loans will be contingent upon final repayment of the SERAF (Supplemental Education Revenue Augmentation Fund) loan to the Housing Authority and will be based on calculations set forth in the Redevelopment Dissolution Law. Reimbursement will require approval of future ROPS (Recognized Obligation Payment Schedule) requests. He said pending any unforeseen changes to the current law, staff anticipates payback of the City loans to be within 5-6 years. He added that 80% of the $22 million in loans will go back to the General Fund, with 20% of that amount going into the Housing Asset Fund under requirements of the current law, and that 20% can be used for Affordable Housing. In further response, he said repayment in 5-6 years was based on current trends of assessed valuation and the amount that will be available in the trust fund. Councilmembers agreed that this was very good news. 3. Introduction of New Fire Department Battalion Chief John Cortez Mr. Wohlmuth was pleased to introduce the City's new Battalion Chief, John Cortez, who replaces former Battalion Chief Casey Hartman who'd moved on to bigger and better things. He noted that the City is still also served by its other Battalion Chief, Rick Griggs. 30 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 23, 2015 Chief Cortez appreciated the introduction and said he was glad to be back working in the City of Palm Desert. B. CITY ATTORNEY None C. CITY CLERK None D. PUBLIC SAFETY 1. Fire Department Please see introduction of new Battalion Chief John Cortez under Section XVIII - Reports and Remarks, City Manager, Item A(3), above. 2. Police Department None E. MAYOR AND MEMBERS OF THE CITY COUNCIL 1. Mayor's Meeting Summaries Report for the Period of March 30 - April 12, 2015. Mayor Weber referred to the printed report in the agenda packets and offered to answer questions. With City Council concurrence, the Mayor's Meeting Summaries Report was received and filed. Councilmember Hamik noted that along with Mayor Weber, she and the other Councilmembers attended the Senior Inspiration Awards on Friday, April 10, where one of the City's COPS (Citizens On Patrol) was honored, Capt. Saul Roisentul. She said it was a great event with almost 600 people in attendance, and everyone was very proud of Saul. Mayor Weber added that Councilmember Harnik also filled in for one of the emcees at that event and did an astounding job. 2. Council Requests for Action/Committee Reports/Comments: 31 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 23, 2015 a) Water Conservation — Mayor Pro Tem Spiegel commented that according to the newspaper, Palm Springs International Airport had turned off its large fountain, which led him to ask if the City was going to shut off its fountain in the Civic Center Park lake. Mr. Wohlmuth answered that the fountain in the middle of the lake in Civic Center Park is used to improve water quality there. Water in the lake is stored for its ultimate use of being pumped into the irrigation system throughout the Park. Therefore, the pump/fountain feature is an integral part of the entire system. b) Plastic Bag Regulation — Councilman Jonathan observed that Councilmembers have been receiving a lot of correspondence and direct comments in opposition to the Plastic Bag Ordinance. He noted that none of the City's immediate neighboring cities have such an ordinance in place — only Palm Springs and Indio do. Consequently, it puts Palm Desert's retailers at a competitive disadvantage. Further, he said it was beginning to appear that recyclable plastic bags are perhaps the most environmentally friendly and healthiest way to transport food from the stores to the homes. He noted that the State's ban has been temporarily rescinded, pending legal challenges, and he felt the City needed to consider a suspension or moratorium of its Plastic Bag Ordinance subject to resolution of the State's ban, and that it needed to give further consideration of whether it's the best thing for Palm Desert. He asked that this be placed on the next City Council Meeting Agenda. In response to Mayor Pro Tem Spiegel's remark about the person outside Jensen's Market who was handing out reusable Palm Desert bags recently, Mr. Wohlmuth responded that effort was part of the City's robust education program prior to implementation of the plastic bag ban. He said that program included going out to the stores, telling people why Palm Desert instituted the ban, and providing residents with a free reusable bag. He added that nearly all of the bags acquired for this program have been distributed, and the gentleman was one of the City's consultants for commercial recycling. Mayor Weber said she'd also noticed the sign in front of Jensen's that said customers should be sure and bring reusable bags to their store because of Palm Desert's "mandate." She was concerned that this sounded rather harsh. Councilman Jonathan observed that there's also been a lot of misinformation from some of the retailers about the fee being charged, as well. 32 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 23, 2015 Upon inquiry, Mr. Wohlmuth confirmed that staff will place an item on the next Council Meeting agenda. c) San Pablo Pet Store — Councilman Jonathan referred to the letter he and his colleagues received recently, alleging the possibility of legal violations by a pet store on San Pablo Avenue (i.e., "puppy mill" suppliers). He was certain that his colleagues and he were all justifiably concerned about the well being of the community's pets and asked if City staff was aware of the business and its practices, and if there was a way to verify that they were operating within the laws governing that type of business. Mr. Wohlmuth said staff is aware of the business that's been in the location approximately 18 months; however, he, personally, was not totally familiar with all the laws regulating the sale of puppies. Councilman Jonathan said as long as the business is licensed and nothing comes to the City's attention that constitutes a violation, they have a right to do business; and the people who don't like it have a right not to trade with them. Mr. Wohlmuth reiterated that in terms of compliance with the law, he was not versed in such regulations regarding puppies but offered that staff could take a look. Councilman Jonathan stated he didn't want to leam that there was a business in the City that breaks the law regarding puppy mills — it was a cruel practice. He asked staff to give consideration as to whether the City has any authority to gain verification. Mr. Hargreaves said staff could research the law in that area and work cooperatively to find out if any violations exist. Mayor Weber added that it may also be good to verify statements made in the letter, as she felt they may not all be exactly truthful. Mr. Wohlmuth agreed to have staff look into the matter. d) Coachella Valley Economic Partnership — Councilmember Harnik reported that she attended CVEP's recent meeting and said that the Interim President & CEO Joe Wallace is still taking steps and getting the organization to be very lean and effective. She added that they're still achieving some great results with local businesses, along with attracting more businesses for the Incubator Center. 33 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 23, 2015 e) Riverside County Scholars Award Night — Councilmember Hamik said she and Councilman Tanner attended the event last week at the Riverside Convention Center. She explained that depending on the population of each high school, between one and three seniors who've excelled were honored. She noted that Palm Desert High School had three honorees. This was followed by their going through the room to have seniors stand up according to their GPA, then according to their performance on SATs and ACTs. Then they announced the 10 top scholars in the County, of which a member of Palm Desert's Youth Committee, Kaylie Chen, was one of those being recognized. Mayor Weber noted that Ms. Chen was also honored yesterday moming as Senior of the Month at the Optimist Club Breakfast and is an outstanding youth representative. 3. Council Consideration of Travel Reauests and Reports: None XIX. ADJOURNMENT With City Council concurrence, Mayor Weber adjourned the meeting at 5:51 p.m. ATTEST: RA ELLE D. KLA3SEN ITY CLE CITY OF PALM DESERT, CALIFOR A SUSAN MARIE WEBER, MAYOR 34