HomeMy WebLinkAbout2016-06-09MINUTES
REGULAR PALM DESERT CITY COUNCIL MEETING
THURSDAY, JUNE 9, 2016
CIVIC CENTER COUNCIL CHAMBER
73510 FRED WARING DRIVE, PALM DESERT, CA 92260
I. CALL TO ORDER - 3:00 P.M.
Mayor Spiegel convened the meeting at 3:05 p.m.
II. ROLL CALL
Present:
Mayor Pro Tem Jan C. Harnik
Councilman Sabby Jonathan
Councilman Van G. Tanner
Councilmember Susan Marie Weber
Mayor Robert A. Spiegel
Also Present:
Justin McCarthy, Interim City Manager
Robert W. Hargreaves, City Attorney
Rudy P. Acosta, Assistant City Manager
Rachelle D. Klassen, City Clerk
Russell Grance, Director of Building & Safety
Ryan Stendell, Director of Community Development
Martin Alvarez, Director of Economic Development
Janet M. Moore, Director of Finance & Housing/City Treasurer
Mark Greenwood, Director of Public Works
Frankie Riddle, Director of Special Programs
Stephen Y. Aryan, Risk Manager
Susan Trevino, Chief, Palm Desert Police/Riverside Co. Sheriffs Department
Anthony Baur, Asst. Chief, Palm Desert Police/Riverside Co. Sheriffs Department
Dan Talbot, Division Chief, Palm Desert Fire/Riverside Co. Fire Dept./Cal Fire
Grace L. Mendoza, Deputy City Clerk
III. ORAL COMMUNICATIONS - A (CLOSED SESSION ITEMS)
None
MINUTES
REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 9, 2016
IV. ADJOURN TO CLOSED SESSION Reauest for Closed Session:
A. Conference with Real Property Negotiator pursuant to Govemment Code
Section 54956.8:
1) Property: Desert Willow Lot Pads-APNs 620-450-012, -014;
620-450-016, -018, -020; 620-370-002, -004, -017, -018,
-020, -033, -043; 620-400-005, -026; 620-400-008, -010
Negotiating Parties:
Agency: Justin McCarthy/Rudy P. Acosta/ Martin Alvarez/City of
Palm Desert/Successor Agency to the Palm Desert
Redevelopment Agency
Property Owner: Successor Agency to the Palm Desert
Redevelopment Agency
Under Negotiation: x Price x Terms of Payment
2) Property: 1 acre Located on Country Club Drive (APN 620-430-024)
Negotiating Parties:
Agency: Justin McCarthy/Rudy P. Acosta/Martin Alvarez/
City of Palm Desert
Property Owner: City of Palm Desert
Under Negotiation: x Price x Terms of Payment
3) Property: 0.67 acres Located on Dinah Shore Drive
(APN 694-060-010)
Negotiating Parties:
Agency: Justin McCarthy/Rudy P. Acosta/Martin Alvarez/
City of Palm Desert
Property Owner: Coachella Valley Water District
Under Negotiation: x Price x Terms of Payment
4) Property: APNs 634-030-017 and 634-040-006
(South of Hovley Lane East)
Negotiating Parties:
Agency: Justin McCarthy/Rudy P. Acosta/Martin Alvarez/
City of Palm Desert
Property Owner: Coachella Valley Water District (CVWD)
Under Negotiation: x Price x Terms of Payment
With City Council concurrence, Mayor Spiegel adjoumed the meeting to Closed
Session of the City Council and Successor Agency at 3:06 p.m. He reconvened the
meeting at 4:01 p.m.
2
MINUTES
REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 9, 2016
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 Jan C. Hamik
VIII. ORAL COMMUNICATIONS - B
MS. ERICA FELCI, Governmental Projects Manager at Coachella Valley
Association of Govemments (CVAG), the lead agency for CV Link. She said it had
been a privilege to attend the Vision San Pablo event and congratulated the City
Council for their commitment to improving active transportation in this community,
along with City staff who helped make the event happen. She shared that her
three -year -old son was having so much fun she could barely get him out of the
gymnastic station and the SunLine Bus. The event was one of a dozen community
events her team has attended in Palm Desert alone since the beginning of 2015.
She said it was part of their commitment to a robust community engagement effort
that has involved attending 5K runs, bike races, and community festivals across the
Desert. While so engaged on social media, more than 2,900 people have liked their
CV Link Facebook page, and more than 1,000 are following their projects through
Tweeter. This outreach was not just about educating the community about their
plans or getting them excited about the CV Link, it's an effort to get people's
feedback. At the Vision San Pablo event alone, they had about 125 people sign up
for their updates and they spent countless hours talking to Palm Desert residents.
They regularly recap the comments and questions they get at these events and
pass them along to the team to ensure plans reflect the community's wishes. The
CVAG Executive Committee has in recent months discussed their public outreach
events, and in December they discussed the idea of a ballot measure. However,
the consensus was that it would be prudent to wait until the Environment Impact
Report (EIR) is complete. She said Mayor Pro Tem Hamik made the motion that
after the EIR is complete, staff would return with a report on ways to explore and
gain public input. That motion passed, and it is the direction that CVAG staff is
following. The EIR is an important step in the planning process, because the
Council and residents have questions that can't fully be answered until the analysis
is done. She was excited to say the report is on track to be completed later this
year. After the draft is released, the community will have time to review it and
provide even more feedback before the report is finalized. Some people pointed out
that other cities had moved forward with ballot measures, and she noted, in both of
those cities their city councils had already approved policies that made it difficult to
3
MINUTES
REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 9, 2016
plan a safe continuous route for pedestrians and cyclists to travel across the
Coachella Valley. Because those ballot measures came after the councils had
already made up their minds, the wording was actually designed to limit future
councils' decision -making. In closing, she said CVAG greatly appreciates the
collaboration they have had with the City of Palm Desert and City staff as it works
on the CV Link, stating they will continue to keep the Council informed about its
planning efforts and always happy to address any questions.
MR. EVAN TRUBEE, Owner of Big Wheel Tours, stated he was a proponent of the
CV Link. His company conducts hike, bike, and jeep tours, including bicycle rentals
throughout the Coachella Valley. Being in the front lines of the tourism industry, he
knew what was happening. When he started his business in 1998, he had zero
bikes and rented them as needed from his competitor. In the 18 years since they
opened, they have grown and now have 400 bicycles in the fleet, which was a
testament to what is happening in the demographics of the visitors. Tourism is a
younger crowd and the demand is for more outdoorsey activities. He wasn't
anti -golf, but he hadn't seen new golf courses being built. He said the trend has
moved toward outdoors cycling activities and exploring the Joshua National Park,
etc., etc. Also, when he started in 1998, there was only one local resort that wanted
to have bicycles on property for their guests, now every major resort has bikes on
their property, including Indian Wells. It wasn't because General Managers are
proponents of the CV Link or want to indulge in their own hobby, it's because they
are responding to what their guests want. He understood Palm Desert City Council
was behind the CV Link, which he appreciated, and other cities like Rancho Mirage
have resoundingly shut it down. However, he didn't put much credence in that,
because if all major infrastructure projects were voted on by the general public,
probably not many would be built. He said residents leave it to govemment officials
to make the best choices with their money, and he was a big believer of the CV
Link, stating it will put the Coachella Valley on the map and bring national attention.
He made the comment that the future was trending toward outdoor activities.
MS. LAURIE BALDWIN, President/CEO of the Palm Desert Chamber of
Commerce, introduced Marianne Burton, Vanessa Torres, and Nicole Popper, who
are part of her staff, stating the rest of them were back at the office. She announced
that the Chamber has their Business Award Ceremony coming up on June 30, and
the membership made their nominations. She was happy to announce that each
City of Palm Desert Councilmember was nominated for an award this year. The
nominations are as follows:
Community Service Award of the Year Nominee - Mayor Pro Tem Jan Harnik
Community Service Award of the Year Nominee - Mayor Spiegel
Community Service Award of the Year Nominee - Councilman Van Tanner
Citizen of the Year Nominee - Councilman Sabby Jonathan
Businessman of the Year Nominee - Councilman Sabby Jonathan
Citizen of the Year Nominee - Councilmember Susan Marie Weber
Citizen of the Year Staff Nominee - Director of Community Development Ryan Stendell
4
MINUTES
REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 9, 2016
Emerging Leader of the Year Nominee - Director of Community Development Ryan Stendell
Median Business of the Year Nominee - City of Palm Desert
She congratulated all the nominees, stating it was obvious the Council had a lot of
backing from the business community. She invited Council and City staff to join
them on June 30 at Aqua Caliente Casino Resort for the Business Awards
Ceremony.
IX. AWARDS, PRESENTATIONS, AND APPOINTMENTS
A. PRESENTATION TO RECOGNIZE DR. ABRAM GOLDMAN FOR HIS
SERVICE TO THE CITY OF PALM DESERT, ITS RENT REVIEW
COMMISSION AND AUDIT, INVESTMENT & FINANCE COMMITTEE,
2012 - 2016.
On behalf of the City Council, Mayor Spiegel asked Mayor Pro Tem Harnik
to make the presentation of an engraved crystal half -cylinder clock to
Mr. Goldman. She said Mr. Goldman had an interesting background of
working in Sacramento and all over the world.
Mr. Goldman graciously accepted the recognition and thanked her for
making the initial invitation to serve on the Commission, adding he had a
career of over 20 years with the City Board of Equalization, and a military
career which ended with two years in Japan as a Senior Colonel. In digging
through his paper work, he ran across a document dated 1997 that showed
he served on the City of Palm Desert Charter. He said he has enjoyed his
tenure on the Audit, Investment & Finance Committee to keep the resources
for Palm Desert growing, and the City was doing a good job of keeping it
going.
Mayor Pro Tem Harnik said the City was better off because of citizens like
Mr. Goldman who volunteered their time to serve.
B. PRESENTATION OF PROCLAMATION DECLARING THURSDAY, JUNE 9,
2016, AS "OFFICER PATRICK MONTALVO DAY' IN THE CITY OF
PALM DESERT.
On behalf of the entire City Council, Mayor Pro Tem Harnik presented the
proclamation to Officer Montalvo forgoing above and beyond the call of duty.
She said Officer Montalvo and his family, on their own time, helped an
elderly woman move all her belonging to another location.
Officer Montalvo humbly accepted the proclamation, adding that he would
want any family, friend, or loved one to be treated the same way. In their
career field they wear many hats, including serving the community, and in
this case, he was simply responding to someone in need.
5
MINUTES
REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 9, 2016
C. PRESENTATION OF PROCLAMATION DECLARING THURSDAY, JUNE 9,
2016, AS "OFFICER JOSHUA ROBERTSON DAY" IN THE CITY OF
PALM DESERT.
On behalf of the City Council, Mayor Pro Tem Harnik presented the
proclamation to Officer Robertson for his decisive and rapid response in
performing CPR and ultimately saving the life of an elderly man.
Officer Robertson accepted the proclamation stating he recalls that moming,
and he's happy he was able to be there and do everything he could.
Lt. Trevino stated it was very important for Officer Montalvo and Officer
Robertson to be recognized for the good deeds they do, because many
times only the negative gets reported. She thanked the City of Palm Desert
for recognizing them.
D. REQUEST FOR ACCEPTANCE OF LETTERS OF RESIGNATION FROM
TEN (10) PALM DESERT YOUTH COMMITTEE MEMBERS AND
APPOINTMENT OF EIGHT (8) NEW MEMBERS TO FILL THE RESULTING
VACANCIES (TERM DECEMBER 31, 2016).
Management Analyst Deborah S. Glickman stated the City didn't have a
choice but to allow seniors to go on to college throughout the Country,
thereby creating vacancies. Therefore, staff is requesting to appoint the
members who have been altemates over the last year. The Committee is two
members short for a full membership, so she is still looking for new members
and altemates for next year.
Councilman Tanner moved to, by Minute Motion: 1) Accept the resignations of Palm
Desert Youth Committee Members Aiden Brossfield, Christie Chaplin, Emily Goldstone,
Cory Hutchinson, Andrew Olson, Abigail Sanford, Haley Schmidman, Samantha Sandoval-
Heglund, Rachel Seiberg, and Cloe Wood; 2) appoint Zackary Berenbaum, Matthew
Chang, Isaac Cho, Timothy Fitzpatrick, Ismael Haile, Tacie Johnson, Sarah Lauer, and
Darla Wood to the vacancies created by the aforementioned resignations (term December
31, 2016). Motion was seconded by Hamik and carried by a 5-0 vote (AYES: Hamik,
Jonathan, Tanner, Weber, and Spiegel; NOES: None).
X. CONSENT CALENDAR
A. MINUTES of the Regular City Council Meeting of May 26, 2016.
Rec: Approve as presented.
6
MINUTES
REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 9, 2016
B. CLAIMS AND DEMANDS AGAINST THE CITY TREASURY - Warrants
Dated 5/13/2016 and 5/20/2016.
Rec: Approve as presented.
C. CLAIMS AND DEMANDS AGAINST THE CITY/HOUSING TREASURIES -
Warrants Dated 5/20/2016 and 5/27/2016 (Joint Consideration with the
Palm Desert Housing Authority).
Rec: Approve as presented.
D. CLAIM AGAINST THE CITY (#771) by Orland Ciccola in an Unspecified
Amount.
Rec: By Minute Motion, reject the Claim and direct the City Clerk to so
notify the Claimant.
E. APPLICATION FOR ALCOHOLIC BEVERAGE LICENSE by Hampton
Inn & Suites, 74900 Gerald Ford Drive, Palm Desert.
Rec: Receive and file.
F. APPLICATION FOR ALCOHOLIC BEVERAGE LICENSE by The Palms
Cafe, 44150 Town Center Way, Suite B5, Palm Desert.
Rec: Receive and file.
G. CITIZENS' SUSTAINABILITY COMMITTEE MINUTES for the Meeting of
November 16, 2015.
Rec: Receive and file.
H. REQUEST FOR AUTHORIZATION to Review the City's Conflict of Interest
Code.
Rec: By Minute Motion, authorize staff to make a formal review of the City's
Conflict of Interest Code, pursuant to the Political Reform Act, and if
necessary at the appropriate time thereafter, prepare a resolution to
be adopted by the City Council to effect the required amendments.
7
MINUTES
REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 9, 2016
I. REQUEST FOR APPROVAL of Specific Automotive Facilities for
Supplemental General Fleet Repairs from Palms to Pines Automotive,
L & L Automotive, Inc., and Ozzie's Automotive, Inc., for Fiscal Year
2016-2017 in an Amount Not to Exceed $150,000.
Rec: By Minute Motion, approve the use of specific automotive facilities for
supplemental general fleet repairs from Palms to Pines Automotive,
L & L Automotive, Inc., and Ozzie's Automotive, Inc., all of
Palm Desert, California, for FY 2016-2017 in an amount not to exceed
$150,000 — funds are available in General Fund Account
No. 1104331-4334000 - R/M Fleet.
J. REQUEST FOR AUTHORIZATION to Streamline Use of Vendors for the
Corporation Yard by Granting Exception to Bidding Requirements and
Approving the Original Equipment Manufacturer (OEM) Vendor List, and the
Various Vendors and Qualified Service Providers List for Fiscal Year
2016-2017.
Rec: By Minute Motion: 1) Grant an exception to bidding requirements, as
provided for by Section 3.32.090 of the Municipal Code, for
FY 2016-2017; 2) approve the Original Equipment Manufacturer
(OEM) Vendor List; 3) approve the Corporation Yard Various Vendors
and Qualified Service Providers List.
K. REQUEST FOR AUTHORIZATION to Streamline Use of Vendors for the
Public Works Department by Granting Exception to Bidding Requirements
and Approving the Landscape Services Division Various Vendors and
Qualified Service Providers List for Fiscal Year 2016-2017.
Rec: By Minute Motion: 1) Grant an exception to bidding requirements, as
provided for by Section 3.32.090 of the Municipal Code, for
FY 2016-2017; 2) approve the Landscape Services Division Various
Vendors and Qualified Service Providers List.
L. REQUEST FOR APPROVAL of the Use of Desert Recycling, Inc., for Dump
Fees During Fiscal Year 2016-2017 in an Amount Not to Exceed $40,000.
Removed for separate consideration under Section XI, Consent Items Held
Over. Please see that portion of the Minutes for Council discussion and
action.
8
MINUTES
REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 9, 2016
M. REQUEST FOR AUTHORIZATION to Use Named Vendors for Purposes of
Providing Recurring, Routine Services, Supplies, and Maintenance to the
Desert Willow Golf Resort for Fiscal Year 2016-2017.
Rec: By Minute Motion, authorize use of vendors on the accompanying
Desert Willow Golf Resort Vendor List for purposes of providing
recurring routine services, supplies, and maintenance to the
Desert Willow Golf Resort in an amount not to exceed $25,000 per
vendor for FY 2016-2017, pursuant to Section 3.32.110 of the
Palm Desert Municipal Code.
N. REQUEST FOR RATIFICATION of a Professional Services Agreement with
Hurdzan Golf to Provide Construction Administration Services for the
Desert Willow Firecliff Bunker Renovation Project (Contract No. C34940A).
Rec: By Minute Motion: 1) Ratify a Professional Services Agreement with
Hurdzan Golf to provide Construction Administration Services for the
Desert Willow Golf Resort Firecliff Bunker Renovation Project in an
amount not to exceed $20,000; 2) appropriate $20,000 from
Desert Willow Capital Improvement Fund 441 to Account
No. 4414195-4809200 for this purpose.
O. REQUEST FOR AUTHORIZATION of Johnson Power Systems to Service
the City Generators for an Amount Not to Exceed $30,000 (Contract
No. C35350).
Rec: By Minute Motion, authorize Johnson Power Systems, Riverside,
California, to service the City generators for an amount not to exceed
$30,000 — funds are available in Account No. 1104331-4334000 -
R/M-Motor Vehicle Fleet and Account No. 2304220-4331000 - Fire
Station R/M Buildings.
P. REQUEST FOR APPROVAL of Contract with Studio Instrument Rentals
(SIR) Palm Springs for Professional Staff, Instrumental Equipment, and
Sound and Lighting Services in Conjunction with City -Produced Concerts for
Fiscal Year 2016-2017 (Contract No. C35360).
Rec: By Minute Motion: 1) Approve subject contract with Studio Instrument
Rentals Palm Springs, Palm Desert, Califomia, for Professional Staff,
Instrumental Equipment, and Sound and Lighting Services in
conjunction with City -Produced Concerts for FY 2016-2017;
2) authorize Mayor to execute said contract — funds are available in
Account No. 1104416-4306101.
9
MINUTES
REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 9, 2016
Q. REQUEST FOR APPROVAL of Amendment No. 2 to Contract No. C33082 —
El Paseo Courtesy Carts - Additional Operations and Event Services in the
Amount of $5,000.
Rec: By Minute Motion: 1) Approve Amendment No. 2 to the subject
contract with Glyn Donald Gray d.b.a. GDG in the amount of $5,000
for Additional Operations and Event Services; 2) authorize
reallocation of the original total contract amount to be used for
expenditures related to hourly operations, special events, or
maintenance —funds were appropriated during Mid -Year Adjustments
and are available in Account No. 1104416-4368100 - Courtesy Carts.
R. REQUEST FOR RATIFICATION of a Second Amendment to Contract with
The Lew Edwards Group Relating to Strategic Consulting Services in the
Amount of $22,850 and Appropriation for Same (Contract No. C34330).
Rec: By Minute Motion: 1) Ratify a Second Amendment to subject contract
with The Lew Edwards Group in the amount of $22,850 for additional
community surveying services to the City; 2) appropriate funds in the
amount of $22,850 from the Unobligated General Fund to
Professional - Other Administration Account No. 1104430-4309000
for payment of the amended agreement; 3) authorize Interim City
Manager to execute said amendment.
S. REQUEST FOR APPROVAL of Change Order No. 1 to Contract
No. C35010 — Freedom Park and Hovley Soccer Park Playground
Resurfacing Project (Project No. 924-16).
Rec: By Minute Motion: 1) Approve Change Order No. 1 in the amount of
$1,101 to the subject contract with T. J. Janca Construction, Inc.,
Orange, California, for the Freedom Park and Hovley Soccer Park
Playground Resurfacing Project; 2) authorize Director of Finance to
move $1,101 from contingency to base for the project; 3) authorize
Mayor to execute Change Order No. 1 — funds are available in
Account No. 4304618-4400100 - Park Funds Reserve.
T. REQUEST FOR ACCEPTANCE OF WORK for Contract No. C34700 — 2016
Parking Lot Maintenance Project (Project No. 750-16) (S 2 Sealing and
Striping, Palm Desert, 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.
10
MINUTES
REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 9, 2016
U. REQUEST FOR ACCEPTANCE OF WORK for Contract
No. C35020 — 2016 Basketball Resurfacing at Civic Center Park and
Freedom Park (Project No. 946-16) (Pacific Tennis Courts, Inc., Moorpark,
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.
V. REQUEST FOR AUTHORIZATION of Out -of -State Travel for Director of
Public Works to Attend the International Transportation Engineers 2016
Westem District Annual Meeting in Albuquerque, New Mexico - July 10-13.
Rec: By Minute Motion, authorize Out -of -State Travel for Director of
Public Works to attend the International Transportation Engineers
(ITE) 2016 Western District Annual Meeting in Albuquerque,
New Mexico, from July 10 through July 13 — funds are available in
Account No. 1104300-4312000 - Administration
Conference/Seminars/Workshops.
Mayor Pro Tem Harnik asked that Item L be removed for separate action
under Section XI, Consent Items Held Over.
Upon a motion by Jonathan, second by Tanner, and 5-0 vote of the City Council
(AYES: Harnik, Jonathan, Tanner, Weber, and Spiegel; NOES: None), the remainder of
the Consent Calendar was approved as presented.
XI. CONSENT ITEMS HELD OVER
L. REQUEST FOR APPROVAL of the Use of Desert Recycling, Inc., for Dump
Fees During Fiscal Year 2016-2017 in an Amount Not to Exceed $40,000.
Mayor Pro Tem Hamik noticed the City pays a monthly dump fee to recycle
sand, concrete, and/or asphalt collected throughout the year. She
understood about recycling concrete and asphalt, but wondered if the City
actually recycled sand.
Mr. Greenwood explained sand couldn't be dumped in the landfill or spread
on the City's own property, because it's potentially contaminated, having
been swept off the street. The most common contaminate is copper from
break pads, and then there is rubber and other dirt in it. Out of an
abundance of caution the City has been sending it to this recycling center.
Mayor Pro Tem Hamik moved to, by Minute Motion, approve use of Desert
Recycling, Inc., Thousand Palms, California, for dump fees during FY 2016-2017 in an
amount not to exceed $40,000 — funds are available in General Fund Account
11
MINUTES
REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 9, 2016
No. 1104310-4332000 - R/M Streets. Motion was seconded by Tanner and carried by a
5-0 vote (AYES: Hamik, Jonathan, Tanner, Weber, and Spiegel; NOES: None).
XII. RESOLUTIONS
A. RESOLUTION NO. 2016 - 49 - A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF PALM DESERT, CALIFORNIA, INCREASING THE
RESIDENT GOLF RATE AT THE DESERT WILLOW GOLF RESORT TO
$50.00 BASED ON CONSUMER PRICE INDEX (CPI).
Mr. Alvarez stated that in 2013 the City Council implemented a resolution
that allowed staff to increase the resident golf rate based on the CPI on an
annual basis, and only when it reached a whole dollar increment. In 2013
the resident rate was increased from $45 to $48, but that was retroactive to
2010. In 2015, it went from $48 to $49, and this year's CPI increases it
another whole dollar. Therefore, staff recommended increasing the resident
golf rate from $49 to $50 for next fiscal year.
Councilman Tanner moved to waive further reading and adopt Resolution
No. 2016 - 49. Motion was seconded by Hamik.
Mayor Pro Tem Hamik commented the staff report made it easy to
understand the entire discussion and all the thinking behind the increase,
which she appreciated.
Councilman Jonathan said he didn't have a problem with the increase;
however, for the future, he suggested increasing it in increments of two,
three, or even five dollars.
Mayor Pro Tem Harnik pointed out that even though $50 for a round of golf
was the best deal going, every time it's raised a couple of dollars, there
seems to be a significant public outcry, and $1 is a little easier to address.
She recalled discussing this issue previously.
Mr. Alvarez said it was discussed and agreed it would be easier to address
on an annual basis as opposed to making a big jump like it did in 2013.
Councilman Jonathan questioned if it was more provocative to have it come
up nearly every year, because it will, stating the higher the fee is, the more
the CPI will be effective annually. He reiterated it was okay to do it annually,
but if the increment was set up for every two or three dollars, the increase
wouldn't have to come up for discussion every year.
Councilmember Weber said she would be voting no, because she didn't
think the City needed to keep raising the resident's rate. She believed there
were other ways to cover those cost instead of nickle and dimming the
12
MINUTES
REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 9, 2016
residents. She explained that the CPI was based on the cost of government,
so if the City started making cuts, eventually the CPI will stop going up,
adding that it was a vicious cycle.
Mayor Spiegel said he liked the idea of a $1 increment as opposed to it
going up $5 where he would have to think about it.
Mayor Pro Tem Hamik quoted the following statement from the staff report,
which she felt was note worthy: "Given that approximately 20,000 of all
rounds at Desert Willow are resident rounds and the cost per round is $108,
the resort is subsidizing the residents' rounds by approximately $59.15." She
said the subsidy is substantial, and it's greater than the amount they pay.
Mayor Spiegel called for the vote and the motion carried by a 4-1 vote (AYES:
Harnik, Jonathan, Tanner, and Spiegel; NOES: Weber).
XIII. ORDINANCES
A. For Introduction:
None
B. For Adoption:
1. ORDINANCE NO. 1306 - AN ORDINANCE OF THE CITY COUNCIL
OF THE CITY OF PALM DESERT, CALIFORNIA, APPROVING A
ZONING ORDINANCE AMENDMENT TO PALM DESERT
MUNICIPAL CODE SECTION 25.16.050 - DEVELOPMENT
STANDARDS, ADDING A PROVISION TO ALLOW FOR HEIGHT
EXCEPTIONS WITHIN THE OFFICE PROFESSIONAL (O.P.) ZONE
SUBJECT TO APPROVAL BY THE PLANNING COMMISSION.
Councilman Tanner noted this was the second reading of the
Ordinance.
Councilman Tanner moved to waive further reading and adopt Ordinance No. 1306.
Motion was seconded by Hamik and carried by a 5-0 vote (AYES: Harnik, Jonathan,
Tanner, Weber, and Spiegel; NOES: None).
13
MINUTES
REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 9, 2016
XIV. NEW BUSINESS
A. REQUEST FOR AWARD OF CONTRACT FOR THE 2016 TRAFFIC
SIGNAL L.E.D. INDICATION REPLACEMENT PROGRAM TO SIEMENS
INDUSTRY, INC., IN THE AMOUNT OF $78,900 (CONTRACT NO. C35210,
PROJECT NO. 586-16).
Mr. Greenwood pointed out this was one of the areas where Palm Desert is
a leader as it had installed LED Indications on its traffic signals over 15 years
ago. As a result, the City has gone through a couple of cycles of having to
replace them. Up until now they've had about a five-year life. The newest
version has a 15-year warranty, so all of the red, yellow, green indications
and signals in the eastem part of the City are being replaced through this
contract.
Councilman Tanner asked if the work will be completed before the end of the
fiscal year.
Mr. Greenwood replied he didn't know if the work would be completed by
then, but the work will have been started.
Mayor Pro Tem Harnik moved to, by Minute Motion: 1) Award subject contract for
the 2016 Traffic Signal LED Replacement Project to Siemens Industry, Inc., Riverside,
California, in the amount of $78,900; 2) authorize Director of Finance to set aside a 10%
contingency in the amount of $7,890 for the project; 3) authorize Mayor to execute said
contract — funds are available in Account No. 2134250-4400100 - Measure "A." Motion
was seconded by Tanner and carried by a 5-0 vote (AYES: Hamik, Jonathan, Tanner,
Weber, and Spiegel; NOES: None).
B. REQUEST FOR APPROVAL OF VOLUNTARY COLLECTION
AGREEMENT WITH AIRBNB, INC., TO COLLECT AND REMIT
TRANSIENT OCCUPANCY TAXES ON BEHALF OF USERS IN THE
CITY OF PALM DESERT (CONTRACT NO. C35370).
Ms. Moore stated that over the last several years there has been an increase
in short-term rentals with companies such as Airbnb. Staff has been doing
audits of these companies, and Airbnb has been one of the most
cooperatives at this point. Audits are done to determine if people have short
term rental permits, and in some cases, they do not. The City started
negotiating with Airbnb to collect on the City's behalf and remit them as one
amount as opposed to multiple amounts by their users, and they have
agreed. She noted Mr. Hargreaves was involved in that negotiation process.
Councilman Jonathan said it was great, but why not include VRBOs
(Vacation Rental By Owner).
14
MINUTES
REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 9, 2016
Mr. Hargreaves said this issue has been a constant problem for
municipalities all over the states. What happens is that Airbnb and the rest
of them, charge and collect Transient Occupancy Tax (TOT) but don't remit
to the cities, they remit it back to the property owners who are to remit it to
the cites, which doesn't always happen. Various jurisdictions have sued
Airbnb over this claim, and litigation has gone back and forth. Subsequently,
Airbnb has entered into agreements with several large jurisdictions. Palm
Desert approached them 11/2 years ago, but they didn't want to talk to one
little city. Therefore, all the cities in the Coachella Valley got involved in the
negotiations, so this has been a collective effort valley wide. At this point,
after going back and forth on a number of issues, most of the cities are on
board; it has taken 11/2 years to get to this point. He said this agreement
was experimental in that the City has the right to back out and Airbnb has the
right to back out with a 30-day notice. He went on to say there are also
efforts being made in the legislature to address this issue. Once this
agreement is tied down, the intent would be to get the other ones on board.
Mayor Pro Tem Hamik recalled that collection of the TOT from short-term
rentals was obviously to collect the revenue that would be generated, but it
was also the means for monitoring rentals to ensure the integrity of the
neighborhood stayed intact. If Airbnb collects the TOT and the renters are
going to be anonymous, the City won't be able to identify where the funds
come from. She questioned how this new process would help the City with
those people who fail to apply for a short-term rental permit.
Mr. Hargreaves explained it was one of the major points in the negotiations,
as Airbnb did not want to become part of the City's enforcement effort. They
didn't want to be giving the City information, which was one of the deal
points. Therefore, the City has to identify these folks on its own, but they are
going to help with the collection of the TOT. He said the City has a
contractor who has been successful in tracking people down that are not
paying TOT, and residents too act somewhat of an enforcement agency by
reporting these kinds of uses. He added the cities are hoping for a
comprehensive legislative fix, but it's complicated.
Mayor Pro Tem Harnik moved to, by Minute Motion: 1) Approve Voluntary Collection
Agreement with Airbnb to collect and remit Transient Occupancy Taxes on behalf of users
in the City of Palm Desert; 2) authorize Director of Finance to execute the agreement.
Motion was seconded by Weber and carried by a 5-0 vote (AYES: Hamik, Jonathan,
Tanner, Weber, and Spiegel; NOES: None).
15
MINUTES
REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 9, 2016
C. REQUEST FOR APPROVAL OF AN AGREEMENT WITH ALLIED
AFFORDABLE HOUSING, LLC, TO PROVIDE A ONE-TIME SUBSIDY FOR
UP TO FIVE (5) UNITS IN THE ARC VILLAGE DEVELOPMENT IN AN
AMOUNT NOT TO EXCEED $250,000 (CONTRACT NO. C34970B).
Ms. Moore stated that in May the Planning Commission approved the 36-unit
Affordable Housing Community known as Arc Village, located behind Desert
Arc, and as part of that, it will include units for special needs. She said
Desert Arc has wholeheartedly supported this project for the ability to have
units that would be available to some of their clients and/or employees for
this purpose. She explained that Allied is applying for tax credits, which is
a very competitive and long process. In that process they need to show that
they have leveraged their funding with local jurisdictions. Allied had intended
to apply through the County for CDBG and other offerings; however, the City
of Palm Desert does not qualify for those funds. Therefore, Allied
expectation of being able to obtain funding for that particular purpose
through the County is not realizable. Basically, Allied believed their
community will score high, but if there is a situation where there is a
tiebreaker, they will have to show their local jurisdiction leverage. Even
though they have indicated they would not need additional funding from Palm
Desert, they have come back and asked for it. Knowing that some of the
clients and/or employees would be from Desert Arc, she asked them how
many clients traveled to Palm Desert from outside cities. That information
is important, because the City tries to encourage people who work in Palm
Desertto live in Palm Desert. Some time ago the City established a Housing
Mitigation Fee to encourage employers that would be coming on board from
commercial development to provide housing for the workers they were
creating. Obviously, all of Desert Arc's workers are in Palm Desert, however,
75% of them do not live in Palm Desert. She said Desert Arc actually buses
some of its workers and others have alternative means of transportation.
Staff determined it would like to see a percentage of the units eligible for
special needs' individuals to be allocated to employees that work in Palm
Desert. Therefore, since the Housing Mitigation Fee was established for this
purpose, staff recommended assisting Allied with funding for this purpose.
Councilman Jonathan said this felt like a bait -and -switch, in that the City
made its deal with Allied, and if they're a credible substantive investor and
developer, why didn't they know about the glitch early on. He said Allied
found they have a problem and are now asking the City to bail them out, after
essentially giving them free land. He said if they didn't know this part, what's
the next thing they won't know.
Ms. Moore said it was a good question, but unfortunately Allied was not here
this evening to answer questions. However, in some cases, when you go for
County funding, depending on the types of folks you're assisting, Palm
Desert's eligibility is different.
16
MINUTES
REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 9, 2016
Councilman Jonathan said he understood, but these kinds of developers, if
sophisticated, does their due diligence to get an answer to that question
before they commit to a deal with the City. He also understood staff wants
to pay for this out of the Housing Mitigation Fund, but the City had land it
gave to Habitat for Humanity, and they don't have funds to build those
houses for veterans. He'd rather see this money go to help Habitat for
Humanity to build some affordable housing for veterans that need the help.
He wasn't sure this was a good use of City funds, but guessed staffs
conclusion was otherwise.
Ms. Moore explained she would like to see this project move forward and
would hate to lose it on the fact that it couldn't break a tie, if it got down to a
tie breaker. However, she understood Councilman Jonathan's concern. Her
response is that staff looks at housing mitigation to see what is the benefit,
and in this particular case, she believed a much higher percentage of Palm
Desert employees will be in this community. The fact that 75% of Desert
Arc's clientele does not live in Palm Desert, she would like to encourage
living on site and close to work as opposed to a 30-minute bus ride.
Councilman Jonathan commented that Allied was not present to indicate if
this was a make or break situation.
Ms. Moore said she didn't know that Allied would know the answer.
However, Desert Arc is here and they have communicated with Allied
regarding this matter if the Council had questions for them.
Mayor Pro Tem Harnik asked if the 36 units would be credited toward the
City's RHNA (Regional Housing Needs Allocation) numbers.
Ms. Moore answered they would.
Mayor Pro Tem Harnik said she understood Councilman Jonathan's issue
with the uncertainty, and she too, agreed everyone wants to ensure veterans
had good homes to live in. However, these are developmentally disabled
adults who are high functioning and able to live on their own, but they are
losing their parents. She said when the parents go, there is another set of
problems, so this was something the City needed to address to ensure this
group also has a place to live. This was an important issue to Palm Desert
and all the clients that Desert Arc serves, and if the City has the funds in the
Housing Mitigation Fee Fund, it was a good use of it.
Mayor Spiegel agreed it will be money well spent. He said Desert Arc needs
these facilities, and it will benefit the people that go there.
Mayor Spiegel moved to, by Minute Motion: 1) Approve an agreement with Allied
Affordable Housing, LLC, to provide a subsidy for up to five (5) units within Arc Village, in
an amount not to exceed $250,000, for income -restricted households in which at least one
17
MINUTES
REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 9, 2016
member is an employee within the jurisdictional boundaries of the City of Palm Desert;
2) authorize legal counsel to prepare and finalize an agreement to effectuate the intent of
the actions taken herewith; 3) appropriate $250,000 from the Housing Mitigation Fund to
Account No. 2144490-4390101; 4) authorize the Mayor and/or the City Managerto execute
any documents consistent with the actions taken herewith. Motion was seconded by
Weber.
Councilman Tanner stated the staff report indicates the subsidy is for up to
five units but not to exceed $250,000. He asked if Desert Arc anticipated
using the full $250,000 on the five units.
Ms. Moore said that was a question for Allied, because they will be given this
money. She noted Allied is requesting funds from at least 10 other people,
and if they do not need the entire $250,000 and they are able to get funds
from other places, staff would make that a condition. Further responding,
she explained that funds will help pay for the reduced rents; it will not go to
the tenants. It will be a one-time payment based on funding that will help with
the construction, and they will not receive funding for additional subsidies on
those units. She confirmed it will not be an ongoing expense to the City.
Mayor Pro Tem Harnik offered an amendment to the motion that: 5) If the $250,000
is not used, it is a guarantee retum back to the City. Mayor Spiegel accepted the
amendment.
Councilman Jonathan commented this was clearly a wonderful project, which
is why the Council was in favor of investing the land. However, from a
business standpoint, it was naive of the Council, for Allied to come and ask
for $250,000 and the Council agreeing to pay it. He would be more
comfortable if Allied was here to explain, a) why they needed the funds, and
b) why didn't they know they needed it going into this project and making
their deal with the City. He said the ship may have sailed, but he would not
object to postponing this matter to the next meeting and giving Allied a
chance to come before the Council.
Councilmember Weber concurred, however, she didn't think this item had to
be postponed. She said Allied could clarify the matter in writing and believed
the Council would accept it. She asked how will the renters be chosen.
Ms. Moore replied that the unit will designate who lives in it. Within the 36
units, they will fluctuate throughout the term of the project. It won't
necessarily be a specific person, but the City will know that if a unit is
occupied by a Palm Desert employee, it can count; the unit will not be
specific to a person. In response to Councilman Jonathan's comment, the
reason for the rush is that staff challenged Allied to move this, and they are
going to submit next week for their 9% tax credits. When Allied contacted
staff, she had one day to put everything together, but she did ask for
additional information, which is why this item is being presented to the
18
MINUTES
REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 9, 2016
Council this evening. She said Allied wants the clarification that they can say
they have jurisdictional commitment, so that if there is a tie, they would want
to have it in their submission.
Mayor Spiegel called for the vote and the motion carried by a 4-1 vote (AYES:
Harnik, Tanner, Weber, and Spiegel; NOES: Jonathan).
For clarification purposes, the motion is as follows:
Mayor Spiegel moved to, by Minute Motion: 1) Approve an agreement with Allied
Affordable Housing, LLC, to provide a subsidy for up to five (5) units within Arc Village, in
an amount not to exceed $250,000, for income -restricted households in which at least one
member is an employee within the jurisdictional boundaries of the City of Palm Desert;
2) authorize legal counsel to prepare and finalize an agreement to effectuate the intent of
the actions taken herewith; 3) appropriate $250,000 from the Housing Mitigation Fund to
Account No. 2144490-4390101; 4) authorize the Mayorand/orthe City Manager to execute
any documents consistent with the actions taken herewith; 5) If the $250,000 is not used,
it is a guarantee return back to the City. Motion was seconded by Weber and carried by
a 4-1 vote (AYES: Harnik, Tanner, Weber, and Spiegel; NOES: Jonathan).
D. INFORMATIONAL REPORT REGARDING PROPOSED INCREASE IN
WATER SERVICE AND CONSUMPTION CHARGES BY THE COACHELLA
VALLEY WATER DISTRICT (CVWD).
Mr. Greenwood recalled for the Council that about a month ago CVWD
General ManagerJim Barrett gave a presentation about water rate increases
being proposed, and that election occurs next week on June 14. The
presentation got staff to look hard at the City's own water use and water
rates. In the staff report, the chart show the City currently spends $235,000
annually on the current fee structure. If the increases go through, the City's
water rate will nearly double next year, and then there will be a continuous
increase that will triple to almost $650,000 by the year 2020. Staffs intent
was to inform the Council in case it wants to direct staff to cast ballots in this
election. Mr. Barrett indicated there are about 2,000 landscape accounts at
CVWD and Palm Desert has about 10% or 200 of those accounts.
Mayor Spiegel asked what the Council can do to help.
Mr. Greenwood replied the City Council can vote by directing staff to cast
ballots for each of the landscape water meters.
Mayor Pro Tem Hamik pointed out this was a protest vote.
Mr. Greenwood stated this item was on the agenda as an informational
report, so he was looking to the City Attorney for guidance if the Council
wanted staff to take action.
19
MINUTES
REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 9, 2016
Mr. Hargreaves said he had a serious problem because Best, Best & Krieger
also represented CVWD. Responding to question, he said if the Council
determined the item requires immediate and urgent attention, it can add it to
the agenda, and it needs to be adopted by a 4/5 vote.
With City Council concurrence, the Informational Report regarding proposed
increase in water service and consumption charges by the Coachella Valley Water District
was received and filed (AYES: Harnik, Jonathan, Tanner, Weber, and Spiegel; NOES:
None).
PLEASE NOTE: ITEM ADDED TO THE AGENDA
Mayor Spiegel moved to, by Minute Motion, to add Urgency Item to the agenda.
Motion was seconded by Jonathan and carried by a 5-0 vote (AYES: Harnik,
Jonathan, Tanner, Weber, and Spiegel; NOES: None).
D1. CONSIDERATION OF THE CITY COUNCIL TO TAKE ACTION ON THE
PROPOSED INCREASE IN WATER SERVICE AND CONSUMPTION
CHARGES BY THE COACHELLA VALLEY WATER DISTRICT.
Mr. Greenwood noted the City has been contacted by a number of
homeowner associations who are most likely affected by CVWD increases.
It was one thing for the City's budget to be impacted, but HOA's are on a
very tight budget and have a poor ability to increase their budgets, and it's
always on a lag. Several of the HOA's have asked staff to have the Council
represent them by informing CVWD that the increase will have a big impact
on HOAs.
Councilman Tanner said that many of the letters were directed to CVWD and
the City was copied. He wondered if that constituted a protest on the part of
the HOA.
Mr. Greenwood deferred to the City Attomey, but he believed the wording
needed to include "I protest the proposed..."
Ms. Klassen pointed out that the item at CVWD is a public hearing, but
Council can direct staff to cast a ballot as part of this item.
Councilman Jonathan moved to, by Minute Motion, direct staff to cast ballots in
Opposition to the Coachella Valley Water District proposed rate increase to any and all City
of Palm Desert water meters by the June 14, 2016, deadline. Motion was seconded by
Hamik and carried by a 5-0 vote (AYES: Hamik, Jonathan, Tanner, Weber, and Spiegel;
NOES: None).
E. REQUEST FOR APPROVAL OF THE MANAGEMENT DISTRICT PLAN
FOR, AND ORDER THE LEVY AND COLLECTION OF ASSESSMENTS
20
MINUTES
REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 9, 2016
WITHIN, THE PRESIDENT'S PLAZA I PROPERTY AND BUSINESS
IMPROVEMENT DISTRICT FOR FISCAL YEAR 2016-2017.
Deputy City Treasurer Thomas J. Metz stated staff was requesting approval
of two Resolutions pertaining to President's Plaza and the Business
Improvement District for Fiscal Year 2016-2017. The first Resolution deals
with approving the Management District Plan for the District, the second
Resolution deals with the approval to levy and collect assessments within
that District for Fiscal Year 2016-2017.
Councilmember Weber moved to, waive further reading and adopt: 1) Resolution
No. 2016 - 50, approving the President's Plaza I Property and Business Improvement
District Management District Plan for FY 2016-2017; 2) Resolution No. 2016 - 51, ordering
the levy and collection of assessments within the President's Plaza I Property and
Business Improvement District for FY 2016-2017. Motion was seconded by Tanner and
carried by a 5-0 vote (AYES: Harnik, Jonathan, Tanner, Weber, and Spiegel; NOES:
None).
F. REQUEST FOR APPROVAL OF DOWN PAYMENT ASSISTANCE LOANS
FROM ANY AVAILABLE FUNDING SOURCE RESTRICTED FOR THIS
PURPOSE IN AN AMOUNT NECESSARY TO SECURE AN AFFORDABLE
HOUSING COST ASSOCIATED WITH A DIRECT SALE IN DESERT ROSE,
75464 ORANGE BLOSSOM LANE (APN 634-062-002) (JOINT
CONSIDERATION WITH THE PALM DESERT HOUSING AUTHORITY).
Senior Management Analyst Veronica Tapia explained this transaction was
a direct sale between the seller and buyer. However, a Home Buyer
Assistance Loan is needed to facilitate the transaction. As a side note, she
reported that as of May 25, 2016, the Housing Authority had sold all the
properties it was holding in inventory.
Councilman/Member Jonathan moved to, by Minute Motion: 1) Approve a silent
down payment assistance loan associated with a direct sale in Desert Rose, not to exceed
40% of the sales price ($126,840) of the home to ensure an affordable housing cost
pursuant to California Health and Safety Code Section 50052.5, for a qualified low- or
moderate -income household from any available funding source restricted for such purpose
(Low and Moderate Income Housing Asset Fund, BEGIN Fund, and Housing Mitigation);
2) authorize payment of the transaction costs, if necessary, for the purpose of repairs
required for closing, fees customary to real estate transactions in Riverside County,
including escrow, title, FHA fees, inspections, vermin eradication, commissions, and
disclosures, up to a maximum of $3,500; 3) authorize use of the Desert Rose Sales
Program and documents, including the restrictive covenant and loan documents for the
applicable funding source, and authorize Mayor to execute; 4) authorize the Director of
Finance to draw monies from the relative funds to facilitate the transaction; 5) authorize
the Authority Chairman and/or the Authority's Executive Director, or his designee, to
finalize and execute any ancillary documents necessary to effectuate the actions taken
herewith — monies are available in the appropriate account in the Low and Moderate
21
MINUTES
REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 9, 2016
Income Housing Asset Fund, BEGIN Fund, and Housing Mitigation Fund. Motion was
seconded by Tanner and carried by a 5-0 vote (AYES: Hamik, Jonathan, Tanner, Weber,
and Spiegel; NOES: None).
XV. CONTINUED BUSINESS
A. REQUEST FOR APPROVAL OF AMENDMENT NO. 2 TO CONTRACT
WITH PREMIER HOLIDAY DESIGN FOR PURCHASING REPLACEMENT
LIGHTING MATERIALS AND APPROVING A LABOR COST INCREASE
FOR THE CITY'S EL PASEO SEASONAL LIGHTING AND DECOR
PROGRAM IN THE AMOUNT OF $79,278.76 (CONTRACT NO. C32980)
(Continued from the meeting of May 26, 2016).
Risk Manager Stephen Y. Aryan recalled for the Council that it directed staff
to form a subcommittee to review the seasonal decor recommendations.
Along with staff, Mayor Pro Tem Hamik and Councilmember Weber were
part of that Committee. The Committee recommended that on El Paseo, the
holiday decor that had been previously placed on the ground not be used this
year. The decor was not pleasing and dated, and it did nothing to improve
the aesthetics of that area. Instead of rushing to create a new seasonal
decor, the Committee would like to take time to explore other options for
2017. The only decor that will still be installed is the banners and garland on
the street lights, wreathes on the street pole along Highway 111, and
continue with the wreathed lighting at City Hall. He said the seasonal tree
lights and snow tubes on El Paseo will be installed, which now stay up from
October through May, seven months of the year. The current inventory
requires replacement as they have been on longer than anticipated, and that
replacement cost is approximately $58,000; a one-time replacement cost.
Additional cost to the existing installation is due to increase labor cost,
primarily due to minimum wages and a miscalculation on behalf of the
vendor, which adds $21,000 to the contract, making it approximately
$104,000 recurring cost each year. The breakdown of the labor costs is
found on page 3 of the staff report.
Mayor Pro Tem Hamik noted that some of the fiber glass displays from the
old vendor were delivered damaged. She asked if they can be donated.
Mr. Aryan replied he had discussed the issue with the vendor, but based on
their condition, he didn't think anyone would want them. Further responding,
he said the City assumed the cost for the damage items, because it couldn't
be determined if it was damaged through delivery or over time. He added
that items were purchased in 2008 and the new vendor started in 2013.
Mayor Pro Tem Harnik said the lights on El Paseo are so important for the
ambiance of the street, and it's unfortunate there is an increase in labor cost,
but it's going to be seen in just about everything the City does.
22
MINUTES
REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 9, 2016
Mayor Pro Tem Harnik moved to, by Minute Motion: 1) Approve Amendment No.
2 to subject contract with Premier Holiday Design, Palm Desert, Califomia, increasing
annual labor costs by $21,682.90 through 2018 and extending current contract term
through May 31, 2018, amongst other revisions; 2) approve purchase of new LED and
snow tube lights for the City's El Paseo Seasonal Lighting Program in the amount of
$57,595.86 and appropriate $57,595.86 from the FY 2015-2016 Unobligated General Fund
to Account No. 1104310-4391001; 3) authorize Interim City Manager to execute any
contractual documents related to these enhancements to the City's Seasonal Lighting and
Decoration Program (Contract No. C32980); 4) declare existing seasonal decor purchased
in 2008 forthe El Paseo medians, with exception of the seasonal trees/garland, as surplus
and dispose of appropriately. Motion was seconded by Weber.
Councilmember Weber commented that the Committee was excited to work
on this, stating Deborah Glickman was brought in from Art In Public Places
so it could all be tied together, because El Paseo is such an important part
of the City. She appreciated the vendors commenting that people are
impressed, because it does have that wow factor. The Committee looks
forward to working on this to be ready for the Christmas Holidays and so
forth in 2017.
Mayor Spiegel called for the vote and the motion carried by a 5-0 vote (AYES:
Harnik, Jonathan, Tanner, Weber, and Spiegel; NOES: None).
XVI. OLD BUSINESS
A. REQUEST FOR APPROVAL OF AMENDMENT NO. 1 TO PROFESSIONAL
SERVICES CONTRACT NO. C33330A - ENGINEERING DESIGN OF THE
ALESSANDRO WEST IMPROVEMENT PROJECT.
Mr. Alvarez stated this item was a contract amendment for engineering
services. The Altum Group is helping the City with the Alessandro West
Corridor Project and it's 90% complete; currently in plan check with the
design. The additional scope of work addressed in the staff report was not
originally included in the contract. Funds for the design improvements or
design contract are available under the Successor Agency Bond Funds.
Staff recommended approval of the contract amendment. He would like to
have a discussion with Council on the Alessandro West Business
Improvement District Formation. In the past, there was discussion of the
possibility of putting together a district that would help maintain the
improvements once they are in place. After discussion with Interim City
Manager and staff, the recommendation is to postpone the formation until
the improvements are in place in order to provide actual costs for the
maintenance of those improvements. At that point, return to the City Council
for direction on whether to proceed with the formation or look at other
opportunities for cost recovery forthe improvements through redevelopment
of properties as they move forward. For instance, if a property owner were
to redevelop, the City would work with them to secure, as a Condition of
23
MINUTES
REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 9, 2016
Approval, that they pay for the additional parking they will incur for the
expansion of their property, and also for the maintenance of that section.
Councilman Jonathan said he didn't object, but wanted to make sure
everyone understood that by doing the BID process after completion of the
project, there was a risk that funding won't exist for the maintenance, and
then the City would be hard pressed to find those dollars somewhere else.
He asked if staff was okay with that and if they believed the maintenance
would get funded.
Mr. Alvarez agreed there would be a risk, but staff believed there will be
options down the road to recover those cost, such as a partnership with
property owners as the City moved forward.
Mr. McCarthy said staff reviewed this a great deal, but unfortunately, the BID
process has been a critical path issue, that in some cases delayed moving
forward on Alessandro Alley. When looking at the General Plan and where
that's going, along with the development/redevelopment opportunities along
Highway 111, it seemed it was in the City's interest to move forward with the
construction project and putting in place the parking, and that would become
then a Quid pro quo, in terms of the negotiations with the property owners,
because they are going to need more parking. Secondly, if the City binds the
area with a BID, the City may be precluded from doing that. Therefore,
these are some of the issues floating around the project. Councilman
Jonathan's point is absolutely correct in that the City is taking a little bit of a
risk, but there might be a curing period, and as it redevelops, there will be an
opportunity to recoup.
Mayor Spiegel added that the City has been trying to improve Alessandro
Alley to become a street, and then get adjacent businesses become better.
Mayor Spiegel moved to, by Minute Motion: 1) Authorize Interim City Manager to
execute Amendment No. 1 to subject contract with The Altum Group in the amount of
$28,860 for the Alessandro West Improvement Project Design; 2) authorize transfer of
contingency in the amount of $10,556 to contract base — funds are currently available in
Capital Project Fund Account No. 4004341-4400100 and will be reimbursed to the City
from bond proceeds, pursuant to the approved Alessandro Bond Proceeds Funding
Agreement; 3) direct staff to postpone formation of the Property and Business
Improvement District for the Alessandro West Corridor until the improvements are
complete and staff investigates other options to condition the existing commercial property
owners to participate in future maintenance as they redevelop. Motion was seconded by
Weber and carried by a 5-0 vote (AYES: Hamik, Jonathan, Tanner, Weber, and Spiegel;
NOES: None).
24
MINUTES
REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 9, 2016
XVII. PUBLIC HEARINGS
A. REQUEST FOR APPROVAL OF THE FINAL ENGINEER'S ANNUAL LEVY
REPORT FOR, AND ORDER THE LEVY AND COLLECTION OF
ASSESSMENTS WITHIN, CITY OF PALM DESERT BENEFIT
ASSESSMENT DISTRICT NO. 1 FOR FISCAL YEAR 2016-2017.
Deputy City Treasurer Thomas J. Metz stated staff was requesting approval
of the proposed Resolution that would approve the Final Engineer's Annual
Levy Report and also order the levy and collection of assessments within
that District.
Mayor Spiegel declared the public hearing open and invited public testimony
FAVORING or OPPOSING this matter. With no public testimony offered, he
declared the public hearing closed.
Councilman Tanner moved to waive further reading and adopt Resolution
No. 2016 - 52, approving the Engineer's Annual Levy Report for, and ordering the levy and
collection of assessments within, City of Palm Desert Benefit Assessment District No. 1 for
FY 2016-2017, pursuant to the provisions of The Benefit Assessment Act of 1982. Motion
was seconded by Jonathan and carried by a 5-0 vote (AYES: Harnik, Jonathan, Tanner,
Weber, and Spiegel; NOES: None).
B. REQUEST FOR APPROVAL OF THE FINAL ENGINEER'S ANNUAL LEVY
REPORT FOR, AND THE LEVY AND COLLECTION OF ANNUAL
ASSESSMENTS WITHIN, CONSOLIDATED PALM DESERT
LANDSCAPING & LIGHTING MAINTENANCE DISTRICT NO. 1 FOR
FISCAL YEAR 2016-2017.
Deputy City Treasurer Thomas J. Metz requested approval of two
resolutions, the first will approve the Final Engineer's Annual Levy Report
and the second would approve and order to levy and collect annual
assessments within the District.
Mayor Spiegel declared the public hearing open and invited public testimony
FAVORING or OPPOSING this matter. With no public testimony offered, he
declared the public hearing closed.
Councilman Jonathan moved to waive further reading and adopt: 1) Resolution
No. 2016 - 53, approving the final Engineer's Annual Levy Report for Consolidated Palm
Desert Landscaping & Lighting Maintenance District No. 1 for FY2016-2017; 2) Resolution
No. 2016 - 54, ordering the levy and collection of annual assessments within Consolidated
Palm Desert Landscaping & Lighting Maintenance District No. 1 for FY 2016-2017. Motion
was seconded by Hamik and carried by a 5-0 vote (AYES: Harnik, Jonathan, Tanner,
Weber, and Spiegel; NOES: None).
25
MINUTES
REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 9, 2016
XVIII. REPORTS AND REMARKS
A. CITY MANAGER
1. City Manager Meetina Summaries Report for the Period of
May 16-27, 2016.
With City Council concurrence, the City Manager Meeting Summaries were received
and filed.
B. CITY ATTORNEY
Mr. Hargreaves announced that the hearing on the proposed rate
increases by Coachella Valley Water District is on June 14, 2016, at
9:00 a.m. at their Palm Desert building.
C. CITY CLERK
1. Announcement of City Council Study Session on Thursday, June 30,
2016, at 2:00 p.m. in the Administrative Conference Room —
CaIPERS.
Ms. Klassen called attention to the scheduling reminder, and Councilmembers so
noted.
D. PUBLIC SAFETY
1. Fire Department
None
2. Police Department
None
E. MAYOR AND MEMBERS OF THE CITY COUNCIL
1. CouncilmemberSusan Marie Weber's Meetina Summaries Report for
the Period of May 14-29, 2016.
With City Council concurrence, Susan Marie Weber's Meeting Summaries
Report was received and filed.
26
MINUTES
REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 9, 2016
2. Council Requests for Action/Committee Reports/Comments:
a) Councilman Sabbv Jonathan Reports/Comments
- Palm Desert High School Baseball Team - He congratulated the
high school baseball team, in particular, Isiah Alvarez, who is the
son of Director of Economic Development Martin Alvarez. He said
the team, school, and community has a lot to be proud of, stating
that losing in the CIF Semifinals to a fine team like Woodbridge
was not bad.
b) Councilman Van Tanner Reports/Comments
- Graduation at Jean M. Benson Child Care Center - He attended the
ceremony, stating it was probably the first time Jean Benson wasn't
able to make it. He said it was an absolute riot to see these kids in
their red robes and hats and doing their performance. He added
that the YMCA was very important to the Coachella Valley and
particularly to Palm Desert.
c) Mayor Pro Tem Jan C. Harnik Reports/Comments
- Mid-Vallev Bike Path - She inquired if any further Council action was
required on this issue.
Mr. Greenwood replied staff considered it done.
Cap and Trade Funding - She said there have been several
meetings at Southem Califomia Association of Governments
(SCAG), Riverside County Transportation Commission (RCTC),
and Coachella Valley Association of Governments (CVAG), and
at all of them, the Cap and Trade issue has come up, which
directly affects Palm Desert and the Coachella Valley. In the last
round of funding SCAG received 14% of all the money available,
and yet they have 48% of the population. Because of the
guidelines set forth by the Strategic Growth Council, the Coachella
Valley is at a disadvantage because of the lack of density, stating
it was needed across the Valley. She said a lot of work has been
done, but obviously not creating the success needed.
Additionally, in the last round of options on the Cap and Trade
Credits, only 2% of what was expected to be generated was
generated. Therefore, there are big problems with this on many
different levels. Thirdly, at SCAG an MOU was signed with the
Federation of Local Authorities in Israel. They had the Consul
General of Israel in Los Angeles, and a partnership was formed
with them for the entire SCAG Region. Through the MOU they will
be able to exchange information support in the areas of
27
MINUTES
REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 9, 2016
sustainability, smart growth, water conservation management,
alternative energy, technology, cybersecurity, public health,
emergency preparedness, public safety, and start-up eco systems.
She said this was the first of a relationship between a Metropolitan
Planning Organization and the State of Israel; this was important
and groundbreaking. She said the Regional Council also
approved the Active Transportation Program, which is importation
in getting funding from the Federal and State.
3. Council Consideration of Travel Requests and Reports:
None
XIX. ADJOURNMENT
With City Council concurrence, Mayor Spiegel adjourned the meeting at 5:15 p.m.
ATTEST:
RA" L E D. KLASSEN, ' ITY CLERK
CITY OF PALM DESERT, CALIFORNIA
R BERT A. SPf'EGIEMAYOR
28