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HomeMy WebLinkAboutPRELIM - CC - 01/25/07 Q AFT PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING THURSDAY, JANUARY 25, 2007 CIVIC CENTER COUNCIL CHAMBER I. CALL TO ORDER - 3:00 P.M. II. ROLL CALL III. ADJOURN TO CLOSED SESSION Request for Closed Session: Conference with Legal Counsel regarding significant exposure to litigation pursuant to Government Code Section 54956.9(b): Number of potential cases: 2 Public Employment pursuant to Government Code Section 54957: Title of Position: City Attorney Conference with Labor Negotiator pursuant to Government Code Section 54957.6: Negotiating Party: Carlos L. Ortega/City of Palm Desert Upon a motion by Ferguson, second by Spiegel, and 5-0 vote of the City Council, Mayor Kelly adjourned the meeting to Closed Session at 3:05 p.m. He reconvened the meeting at 4:01 p.m. IV. RECONVENE REGULAR MEETING -4:00 P.M. A. REPORT ON ACTION FROM CLOSED SESSION. None V. AWARDS, PRESENTATIONS, AND APPOINTMENTS None DR�4�1' PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 25, 2007 VI. CONSENT CALENDAR A. MINUTES of the Regular City Council Meeting of January 11, 2007. Rec: Approve as presented. B. CLAIMS AND DEMANDS AGAINST THE CITY TREASURY - Warrant Nos. 125, 129, 133, 134, 135, 136, 140, 141, 142, 143, and 144. Rec: Approve as presented. C. CLAIM AGAINST THE CITY (#573) by Lorenzo Cendejas in an Unspecified Amount. Rec: By Minute Motion, reject the Claim and direct the City Clerk to so notify the Claimant. D. YOUTH COMMITTEE MINUTES for the Meeting of December 5, 2006. Rec: Receive and file. E. REQUEST FOR APPROVAL of Funding for Emergency Services for Satellite Phones. Rec: By Minute Motion, approve funding of $8,100 yearly to provide ongoing service for 12, handheld, satellite phones for use by the Mayor, City Council, Fire Chief, Police Chief, City Manager, Risk Manager, and other Emergency Team Section Chiefs — funds are available FY 2006/07 in Account No. 110-4260-422-3915; in subsequent years, funds will be available in Account No. 110-4260-422-2191. F. REQUEST FOR RATIFICATION of the City Manager's Approval of the Purchase and Installation of Equipment for Council Chamber Audio System Upgrade. This item was removed for separate consideration. Please see the resulting discussion and action under Section VII - Consent Items Held Over. G. REQUEST FOR APPROVAL of Tract Map No. 34597 (Serenity of Palm Desert, LLC, Applicant). Rec: Waive further reading and adopt Resolution No. 07-5, approving the Final Subdivision Map of Tract No. 34597 and the Improvement Agreement related thereto. 2 ������� PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 25, 2007 H. REQUEST FOR APPROVAL of Installation of Tree and Plaque on City Property Honoring Marian Marsh Henderson. Rec: By Minute Motion, approve of the installation of a tree or native desert flora and plaque honoring the memory of Marian Marsh Henderson on City-owned property located at 72-861 EI Paseo Drive. I. REQUEST FOR RATIFICATION of the City Manager's Approval of Payment for Construction of a Retaining Wall at the Civic Center Park Well Site (Contract No. C26160). Rec: By Minute Motion, ratify the City Manager's approval of payment in the amount of $14,850 for the subject project by A.C.R. Concrete, Indio, California — funds are available in Account No. 110-4610-453-3320. J. REQUESTFORAPPROVALofAmendmenttotheCommunity Development Block Grant (CDBG) Subrecipient Agreements with ABC Recovery Center and Stroke Recovery Center. Rec: By Minute Motion, approve: 1) ABC Recovery Center Amended Subrecipient Agreement Nos. C23050-K3 in the new amount of $59,500 and C25280A1 in the new amount of $75,500; 2) Stroke Recovery Center Amended Subrecipient Agreement No. C23730-J2 in the new amount of $108,965. K. INFORMATIONAL REPORT on the Palm Desert Community Center Weight Equipment. Rec: Receive and file. Councilmember Finerty requested Item F be discussed separately. Upon a motion by Spiegel, second by Ferguson, and 5-0 vote of the City Council, the remainder of the Consent Calendar was approved as presented. Councilman Spiegel noted that$50,000 worth of equipment was purchased by the Coachella Valley Parks & Recreation District for the Center, pointing out the equipment was requested two years ago. Councilmember Finerty said she liked the variety and glad they found the funds for it. 3 � � ��*1..� � PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 25, 2007 VII. CONSENT ITEMS HELD OVER F. REQUEST FOR RATIFICATION of the City Manager's Approval of the Purchase and Installation of Equipment for Council Chamber Audio System Upgrade. Councilmember Finerty stated she understood why staff felt it would be beneficial to return to the original system designer. However, she was concerned they were now recommending a different type of DSP base system, when they recommended the Intellix mixers that were now failing. Responding to the life expectancy of the Intellix Mixers, Ms. Klassen stated with advancement of technology today, 36 months was the expected life of any given electronic equipment; similar to the computers in the office, they are changed approximately every 18-24 months. In response to a guarantee on the new system, Ms. Klassen replied Musak's personal and professional integrity was on the line, because it was made clear that failure of the system and equipment was an embarrassment to staff and Council and they would be held to their word. Upon further question, Ms. Klassen stated the equipment came with the standard 12-month warranty on service and parts, and anything after that was negotiable. Councilmember Finerty stated the projector screen at times was too dark and wondered if it was also part of the upgrade. Ms. Klassen replied the problem with the screen would be forthcoming under a separate issue; however, staff did look at a newer projector and concluded there was significant advancement. The new one would be Digital Light Processor (DLP) as oppose to the existing one, which was not. Mayor Pro Tem Benson asked if the Administrative Conference Room (ACR) would be upgraded at the same time. Councilman Spiegel suggested a consultant be hired to evaluate the City's needs and determine what is actually needed and for the screen and audio be reviewed all at once. He felt the City of Palm Desert had substandard equipment compared to other cities in the Coachella Valley. He recommended the entire system be evaluated by a consultant with two members of the Council as part of a committee and return with a recommendation. Councilmember Finerty concurred. Mayor Pro Tem Benson requested for all conference rooms to be included. Councilman Ferguson agreed. He believed Palm Desert had the prettiest Council Chamber but the most technically inefficient. 4 ��4 � ._. . . PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 25, 2007 Councilman Spiegel moved to, by Minute Motion, reject the proposal and appoint Councilmen Ferguson and Spiegel as a subcommittee to work with staff and a consultant to recommend overall upgrades to the City Council Chamber audio/visual equipment, as well as to consider the installation of audio/visual equipment in Civic Center Conference Rooms. Motion was seconded by Finerty and carried by a 5-0 vote. VIII. RESOLUTIONS A. RESOLUTION NO. 07-6 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA,VACATING EXCESS PUBLIC UTILITY EASEMENTADJOINING PASEO BRAVO IN THE SPANISH WALK PROJECT, TRACT NO. 33837-1, UNDER PROVISIONS OF DIVISION 9, PART 3, CHAPTER 4, OF THE STREETS & HIGHWAYS CODE OF THE STATE OF CALIFORNIA (D. R. Horton c/o Stantec Consulting, Applicant). Mr. Ortega noted staff report on this item. Responding to question, Mr. Greenwood confirmed this project would not have anything to do with the bicycle/pedestrian path. Councilman Spiegel moved to waive further reading and adopt Resolution No. 07-6. Motion was seconded by Finerty and carried by a 4-0 vote, with Ferguson ABSENT. IX. ORDINANCES For Introduction: None For Adoption: None X. NEW BUSINESS A. REQUEST FOR APPROVAL OF AGREEMENT FOR THE PROVISION OF LEGAL SERVICES TO THE CITY OF PALM DESERT (CONTRACT NO. C00-008A). Councilman Ferguson moved to, by Minute Motion,continue this item to the meeting of February 8, 2007. Motion was seconded by Spiegel and carried by a 5-0 vote. 5 ���� F"�� PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 25, 2007 B. REQUEST FOR APPROVAL OF REQUEST TO USE CIVIC CENTER PARK FOR BOY SCOUT CAMPOREE -- MARCH 30 - APRIL 1, 2007. Parks & Recreation Service Manager Janis Steele noted representatives from the Boys Club of American were available to answer questions. She stated the Boy Scouts Camporee was requesting to hold their Camporee at the Civic Center Park, March 30-April 1. She went over the schedule and the activities planned; expecting 150-175 participants for the event. She noted adult supervision would be provided at a ratio of 1:4. Responding to question, she stated the Parks and Recreation Commission voted unanimously in support. Councilmember Finery moved to, by Minute Motion, approve the subject request by the Sunrise District of the Boy Scouts of America to utilize the Civic Center Park for a Camporee. Motion was seconded by Benson and carried by a 5-0 vote. C. REQUEST FOR APPROVAL OF DESIGNATED TIME PERIODS FOR BICYCLES TO UTILIZE THE PA�M DESERT SKATE PARK. Councilman Ferguson expressed concern over the damage the metal and bolts on bicycles may cause to the skate park. Ms. Steele noted she was not an expert on skaters or bikers but she did speak with Risk Manager Gary Rosenblum who spoke with JPIA. It was recommended that bikes not have kickstands, but according to Risk Management, bolts did not present a problem. The request was supported by the Parks& Recreation Commission on a trial basis. She said if it seemed the skate park was being damaged, other options can then be looked at. Responding to question regarding enforcement of the rules, Ms. Steele responded the skate park was supervised by a skate attendant and would continue to be supervised. She said the Coachella Valley Recreation and Park District(CVRPD)was in support and will work with staff to develop rules and transitional times before implementing. Signs will be posted to inform skaters of the change. Mayor Pro Tem Benson asked if the insurance coverage would be the same. Ms. Steele stated she checked with Mr. Rosenblum,who checked with JPIA, and were told that as long as the City followed the guidelines included in his memo, the insurance would be the same. MR. MARLON MCKENNY, Palm Desert, stated he was a professional bike rider for more than six years. In answer to Councilman Ferguson's concern regarding the damage to the skate park, he explained because of the materials on a skateboard versus the materials on a bike, a skateboard would cause more damage to the skate park. He said there were few skate parks that already allowed bikes in a skate park, and no destruction is found. 6 _ ����� PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 25, 2007 Responding to question regarding the peg on a bike causing destruction, he replied it would be fine and there was no destruction. He said the City of Desert Hot Springs presently allowed them to ride, with no strict policy. Mayor Kelly said if the request was approved, it could be checked out in a couple of months. Councilman Ferguson reiterated he was not in opposition, only concerned with damage to the skate park. Responding to question, MR. MCKENNY replied the City of Jurupa and the City of De Leno currently allowed bikers in their skate park. Councilman Spiegel asked Mr. McKenny, if he was aware of the proposed hours: Sunday, 6:00 a.m. to 12:00 noon, and Wednesday, 3:00 to 5:00 p.m. MR. MCKENNY stated there were fifteen members present in the audience and currently they had no place to ride, so they were fine with the hours. Councilman Ferguson moved to, by Minute Motion, approve of the designation of specific time periods for bicycles to utilize the Palm Desert Skate Park: Sunday- 6:00 a.m. to 12:00 p.m.; Wednesday - 3:00 p.m. to 5:00 p.m. Motion was seconded by Finerty and carried by a 5-0 vote. D. CONSIDERATION OF CHANGING THE CLOSING TIME AT JOE MANN PARK. Councilman Ferguson asked what was the closing time for all parks in the City. Ms. Steele answered it was 11:00 p.m. Councilman Spiegel said the neighbors were annoyed with the basketball games,the Citywas experiencing problems with the dog park, and the shade structure had to be replaced. He said the Commission was requesting that Council change the closing time from 11:00 p.m. to 10:00 p.m. Councilmember Finerty agreed and appreciated staff responding to the issues at that park. Councilmember Finerty moved to, by Minute Motion, approve of changing the closing time at Joe Mann Park from 11:00 p.m. to 10:00 p.m. Motion was seconded by Spiegel and carried by a 5-0 vote. 7 �► .�; �""�"' PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 25, 2007 E. REQUEST FOR APPROVAL OF THE NAMING OF A PALM DESERT TRAILHEAD AND CONNECTION TO THE BUMP AND GRIND TRAIL. Councilman Ferguson moved to, by Minute Motion, approve of the naming of the trailhead and connection to the Bump and Grind Trail as the Mike Schuler Trailhead and Trail. Motion was seconded by Finerty and carried by a 5-0 vote. F. REQUEST FOR APPROVAL OF CONTENT FOR FREEDOM PARK KIOSKS. Councilman Ferguson moved to, by Minute Motion, approvel of the list on the � accompanying staff report and wording forthe information to be contained on the 10 kiosks located at Freedom Park. Motion was seconded by Finerty. Councilmember Finerty complimented Ms. Steele for a well prepared packet. Ms. Steele gave the credit to Commission Gary Dawson and stated she would thank him. Mayor Kelly called for the vote, and the motion carried by a 5-0 vote. G. CONSIDERATION OF A REQUEST FOR FUNDING OF THE PALM SPRINGS DESERT RESORT COMMUNITIES CONVENTION AND VISITORS AUTHORITY'S (CVA) CO-OP MARKETING CAMPAIGN TO INCREASE AIRLINE SERVICE. Ms. Kneiding noted the staff report that outlined the program, including a packet provided by the Palm Springs Desert Resorts Convention and Visitors Authority(CVA)with details of the promotion. Vice President of Tourism and Membership Development Woody Peek were present to answer questions. Councilmember Finerty asked if additional funds given to the CVA aside from the annual $1 million this past year. Mrs. Kneiding replied none that she was aware of. Mayor Pro Tem Benson noted the City had a program years ago which gave $50,000+ yearly to bring air service in. She said it was difficult to convince the airlines of a seasonal market if they didn't have year-round passengers. At that time, they flew to Delta, Seattle, Atlanta and Dallas with only three cities spending $50,000 a year for several years, attempting to get better service. She pointed out the Legion and others have done it on their own accord. When she read the promotion, she thought it was deja vu all over again, back trying to get airline service. 8 L)���:.�'.,� PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 25, 2007 Councilman Spiegel stated airline service did increase and the CVA was fronting $200,000 and for every additional $100,000 they would add another City ( i.e., Seattle, Portland, and San Francisco). He said the City of Rancho Mirage agreed to $50,000, and the City of Palm Desert was the second City to review the promotion. He said the amount of advertising going into the market will determine the increase of passengers flying into the area, so that on the shoulder season, the City could have a greater number visiting. He felt it was a different approach. Mayor Kelly agreed because it was not paying the airline directly, but marketing areas that would increase ridership. Ms. Gilligan noted American Airlines and Alaska Airlines have already bought into the program and will also be promoting advertising through their agencies. MR. WOODY PEEK, Vice President Travel Industry Sales & Membership with the CVA, stated he understood the history where the cities wrote check directly to the airline with the airline having total control of the advertising. He said the CVA met with American and Alaska Airlines and identified shoulder periods to address the flight staying, so that the CVA can help extend their service. He went on to say the promotional did not buy a flight, rather it marketed the destination in order to build demand. Councilmember Finerty asked if consideration to wait and see if the CVA was successful with their$200,000 to market Portland&San Francisco,an option before asking the cities for money. Ms. Kneiding explained that she was involved in a committee meeting with other city representatives, and it was the group consensus that$200,000 to market Portland & San Francisco was not a significant amount of reach as a trial market. She said the result will show whether it helped or not, but in order to give it the true effort it deserved, it needed the additional funding. The benefit is that the City would received a promotional value for the entire Coachella Valley as opposed to writing a check directly to the airline. The City's benefit from the promotion included the print magazines, the radio promotions, and the on-line campaign the airlines have brought forth. Councilman Spiegel added that it would be reaching out to the local businesses as well with other promotional ideas. Ms. Kneiding stated the campaign would probably happen with or without the City's support, but the City would lose out in that the City's hotels and attractions would not be offered as part of the promotional package. 9 �� .� �� PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 25, 2007 MR. PEEK stated that originally they missed the window to impact the showroom and delaying it further could cause them to miss the multiple market promotion. Mayor Pro Tem Benson stated she was not opposed to the promotion, she was supportive of increasing tourism and bringing in the airlines and agreed that it was a different approach. Mayor Kelly commented this was the type of promotion the CVA should be doing for the entire Coachella Valley. Councilman Ferguson asked if designation of these funds,were forthe same committee that Mayor Pro Tem Benson served on. Mayor Pro Tem Benson replied that committee no longer existed and was once a division of the Marketing Committee. She said that committee was formed of valfey representatives that visited the airlines attempting to increase services, mainly American Airlines. She acknowledged it was a subsidy, noting they did advertising of the area on their own, at the time. MR. PEEK stated each participating City would have a seat on the Marketing group that controlled the look and message of the advertising campaign. Councilman Ferguson stated the funds should be dedicated for the promotional campaign only and not the administrative overhead of the CVA. Councilman Spiegel moved to, by Minute Motion: 1) Concur with the recommendation of the Marketing Committee and support the CVA spot marketing campaign in the amount of $50,000; 2) appropriate funds from the Unobligated General Fund to Account No. 110-4417-414-3221 forthis purpose. Motion was seconded by Kelly and carried by a 4-1 vote, with Finerty voting NO. H. REQUEST FOR APPROVAL OF CONTRACT FOR PRODUCTION OF THE 2007 PALM DESERT ART OF FOOD & WINE FESTIVAL (CONTRACT NO. C26170). Ms. Gilligan reviewed the staff report and offered that members of Kemper Sports we�e available to answer questions about their proposal to produce the 2007 Art of Food &Wine Festival. Staff believed the first-year event was successful with potential for development into a signature event for the City of Palm Desert. Therefore, staff recommended continuing with it for a second year, acknowledging it was in a deficit position after the first. Staff proposed to correct its position by bringing in Kemper Sports,an organization that produced events. Staff anticipates to break-even in 2007 and be revenue-producing in the future. 10 ��� ��' PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 25, 2007 Responding to question about the number of sponsors committed to participating again in 2007, Mrs. Gilligan said the Marriott and Southern Wine and Spirts have committed, and discussions have occurred with Shadow Ridge (a 2006 sponsor), but the bulk of the sponsorships would be the responsibility then of Kemper Sports. She added that there was talk of an airline sponsorship, involving more restaurants as sponsors with plans to expand sponsorship by 60%. Further responding, Marketing Manager Kristy Kneiding confirmed that in 2006, Palm Springs Life contributed in-kind services with production of the program, as well as offering promotional benefits through Palm Springs Life, Palm Desert Magazine, and their city regional magazine network. She said they have since met with Kemper Sports and City staff and were extremely interested in being a player next year. In addition, KCET offered free television commercials valued in the amount of$150,000 worth of promotion. Councilmember Finerty asked what amount of the $446,000 from the anticipated corporate sponsors was secured. Staff replied that because the event was not yet approved by Council, it only had verbal commitments with no dollar value determined and no solicitation for sponsorship had been pursued. However, in-kind donations from Marriott and Southern Wine and Spirts were expected; Marriott Vacation Club International put up $50,000 last year, Pacific Western Bank sponsored in the amount of$10,000, and all have expressed interest again this year. Councilman Ferguson noted the fee for Kemper Sports was $285,000 with an 18% commission on sponsorships. He asked if they would received 18% commission on the sponsors already committed, in addition to a $100,000 contingency for a total outlay of $421,000 in the first year. Ms. Kneiding replied they would,with the exception of the City's contribution. She pointed out the contingency amount was geared more towards production of the event than expenditures for Kemper. In further response, she said the agreement was a one-year term, renewable for three years unless terminated. Ms. Gilligan clarified the agreement was not an automatically renewable; it would be based on City Council approval for a third-year event and part of the City's budget. It would be Kemper Sports to determined the success of the event, the amount of revenue generated and recommendation to proceed in subsequent years. She pointed out that part of the negotiation with Kemper included that the City was unable to commit to more than one year at a time, and she provided assurances that the contract would be clarified accordingly. 11 �T"y � r.e..�.. PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 25, 2007 Ms. Kneiding pointed out that Kemper Sports was very interested in being a partner in this event and wanted to show their commitment by planning to continue for more than one year. Further, she said the 5% increase programmed into the contract could be negotiated. Councilman Spiegel moved to, by Minute Motion: 1)Approve ofthe subject contract with Kemper Sports Management in an amount not to exceed $285,000; 2) appropriate $285,000 from the City's Unobligated General Fund for this purpose. Motion was seconded by Benson. Councilmember Finerty expressed concern over the proposed budget, pointing out the total sources of funds was approximately $1.5 million of which $497,000 was the City's responsibility, $447,000 Corporate Sponsorships, and $475,000 in ticket sales. She said it was too speculative and it obligated the City to a huge amount of money for an event that was less than successful. She stated Kemper Sports qualifications to handle such an event were not in question, but questioned whether the City should spend $285,000, knowing that amount would increase. She believed the City had more pressing needs for Palm Desert residents, such as a local heliport to reduce response times from the existing facility in Hemet, and felt the Council needed to be better stewards with the City's money. The event was something that the hotels should produce, with corporate sponsors getting together on their own without the City's participation or having to be ultimately responsible for the $1.5 million. Therefore, she was opposed to this request. Councilman Ferguson said he opposed this item as well. He recalled the City invested $100,000 toward the event as a pilot program, and by his accounting, the City lost $280,000 in total. In order to break-even, an improved cash position of $701,000 would need to be accomplished. He agreed with Councilmember Finerty's comment regarding the issue of sponsorship that the stakeholders that will benefit from the event should be involved, not just the City. Additionally, he thought the event was to spread out, with functions at Freedom Park, EI Paseo, and Desert Willow, and people having varied interests (e.g. golfing or wine tasting). He could not foresee the numbers penciling out, considering the three-year contract and its escalators. Assuming the City participated, it represented a $1.4 million investment on something that lost$280,000 last year and it didn't make good business sense to him. Councilman Spiegel stated the City's vitality was attributable to sales tax and hotel occupancy tax, not from the residents. He felt the event would generate traffic in Palm Desert and more than take care of the dollars the City was investing. Additionally,while the larger Coachella Valley cities have signature events, Palm Desert really doesn't otherthan the Golf Cart Parade; 12 �"r. e�,. r� r�..,,,.. PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 25, 2007 the golf tournaments at Bighorn were held at their discretion. Therefore, he moved to approve the contract, believing it would be a good thing for the City and grow over the years. Mayor Pro Tem Benson agreed, believing the City should have faith in Kemper's management of the event to make is successful this year. If not, it would be the last; but she felt they deserved the opportunity to try. She said it would be better for an outside consultant to handle the event than a hote, so that other hotels can get on board knowing they will take share in it. As far as the event being to spread out, she understood thee was a transportation element in this proposal to get people around to the various venues, and she felt that would be a big asset. Mayor Kelly supported the proposal, realizing that there was the potential for spending $500,000. He believed the City would get more back from this event than the $1 million turned over to the CVA (Palm Springs Desert Resort Communities Convention&Visitors Authority)every year. He agreed that the City's streets, police, fire, and parks, all were dependent upon sales and hotel t axes, and he had great confidence in Kemper Sports to be successful. Mayor Kelly called for the vote, and the motion carried by a 3-2 vote, with Ferguson and Finerty voting NO. At this point in the meeting, with City Council concurrence, Mayor Kelly returned to the Redevelopment Agency Meeting Agenda of this date, Section IX - Awards, Presentations, and Appointments, Item A. I. REQUEST FOR APPROVAL OF ACTIONS RELATED TO CONTRACT WITH SUNLINE TRANSIT AUTHORITY FOR ROUTES 51 A & B (THE SHOPPER HOPPER) (CONTRACT NO. C24080A). Councilman Spiegel moved to, by Minute Motion: 1)Authorize the Mayor to award the subject contract for six months in an amount not to exceed $148,000 for vehicle operation, preventative maintenance, and fuel; 2) authorize the Director of Finance to set aside the amount of$14,800 as 10% contingency(use of contingency requires additional action) for this contract; 3) approve an additional expense not to exceed $3,000 to cover the adjustment to the Red Route by 30 minutes for the previous six months; 4)approve an additional expense not to exceed $3,000 to cover miscellaneous repairs to the vehicles over the next six months. Motion was seconded by Finery and carried by a 5-0 vote. 13 .__. ����'.4�� PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 25, 2007 J. REQUEST FOR DISCUSSION RELATIVE TO DESIGN AND CONSTRUCTION OF MEDIAN MODIFICATION ON FRANK SINATRA DRIVE BETWEEN PALM DESERT GREENS COUNTRY CLUB AND MARRIOTT'S SHADOW RIDGE. Mr. Ortega noted staff provided a specific recommendation. Councilman Spiegel moved to, by Minute Motion,continue the matterto the meeting of February 22, 2007. Motion was seconded by Ferguson and carried by a 5-0 vote. K. REQUEST FOR APPROVAL OF AGREEMENT FOR PROGRAM MANAGEMENT SUPPORT SERVICES FOR THE PROPOSED MONTEREY AVENUE/DINAH SHORE DRIVE LANDSCAPING PROJECT (CONTRACT NO. C26180, PROJECT NO. 937-06). Councilman Spiegel moved to, by Minute Motion: 1) Approve of the subject agreement with NAI Consulting, Cathedral City, California, in the amount of $70,200; 2)approve a 10%contingency for the services in the amount of$7,020; 3)appropriate said funds from General Fund Reserves to the project account; 4) authorize the Mayor to execute said contract. Motion was seconded by Finerty and carried by a 5-0 vote. L. REQUEST FOR APPROVAL OF AGREEMENT FOR PROGRAM MANAGEMENT SUPPORT SERVICES FOR FEDERAL FUNDING OF THE I-10/MONTEREY AVENUE ON/OFF RAMP LANDSCAPING PROJECT (CONTRACT NO. C26190, PROJECT NO. 969-06). Councilman Spiegel stated the ramp will help traffic flow to Costco and Walmart; including the general traffic. Councilman Spiegel moved to, by Minute Motion: 1) Approve of the subject agreement with NAI Consulting, Cathedral City, California, in the amount of $18,500; 2)approve a 10% contingency forthe services in the amount of$1,850; 3)appropriate said funds from General Fund Reserves to the project account; 4) authorize the City Manager to execute said contract. Motion was seconded by Ferguson and carried by a 5-0 vote. M. CONSIDERATION OF REQUEST FOR NOMINATION OFA PALM DESERT SISTER CITIES FOUNDATION EX OFFICIO MEMBER. Mayor Pro Tem Benson moved to, by Minute Motion, appointed Councilmember Finerty as the Ex Officio Director to the Palm Desert Sister Cities Foundation. Motion was seconded by Spiegel and carried by a 4-0-1 vote, with Finerty ABSTAINING. With City Council concurrence, Mayor Pro Tem Benson was appointed as the Alternate Ex Officio Director to the Foundation. 14 DRAFT PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 25, 2007 XI. CONTINUED BUSINESS A. MINUTES OF THE REGULAR CITY COUNCIL MEETING OF OCTOBER 26, 2006 (Continued from the meetings of November 16 and December 14, 2006, and January 11, 2007). Responding to question, Ms. Klassen replied the minutes were typed by both herself and Deputy City Clerk Grace Mendoza. Councilman Ferguson noted at one point the City contracted out and wondered if that could be an option again. Ms. Klassen agreed to reevaluate. Councilman Spiegel moved to, by Minute Motion, approve the minutes of October 26, 2006, as presented. Motion was seconded by Ferguson and carried by a 4-0-1 vote, with Finerty ABSTAINING. B. REQUEST FOR AUTHORIZATION TO INITIATE THE PROCESS OF DETACHING THE CITY OF PALM DESERT FROM THE COACHELLA VALLEY RECREATION AND PARK DISTRICT (Continued from the meeting of November 16, 2006). Mr. Ortega stated staff's recommendation was a result of the recommendation from the Parks & Recreation Commission. Councilman Ferguson noted LAFCO required seven to eight months to process an application for detachment, he asked the City Attorney if there was anything that would forbid the City from initiating detachment during the six-month extension, so that the City could be that much further in the process. He stated it was great the City received $50,000 worth of gym equipment, but it was too little, too late. Mr. Hargreaves stated the application could be withdrawn at any time, with a certain amount of expense and staff time incurred in moving fonNard as suggested. Mayor Kelly agreed. Councilman Spiegel stated staff would need to bring in a consultant to analyze the budget and determined the personnel needed for the City to have their own system. He thought moving forward with a detachment and later withdrawing the application would diminish the City's image with LAFCO. Mr. Ortega stated it was staff's intent, if Council went with staff's recommendation, to bring a white paper with budget and alternatives. 15 DR�FT PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 25, 2007 Councilman Ferguson stated his concern was that Council was approaching a budget cycle and if Council decided to detach sometime next fall, a huge budget adjustment would be required or Council could plan for it now. Responding to question, Mr. Ortega stated the white paper would provide what the district did now, financial information, what could happen and the financial ramification if the City was successful in its withdrawal. If in six months, the City Council was still of the ability to proceed, Council would have a lot of that information. Councilman Ferguson requested a report for the next meeting, as to what the CV Recreation and Park District expected to accomplish in six months. He said the Council provided them with a 30-day extension and got weight equipment out of it; now he wants to know what a six month extension will accomplish. Mayor Pro Tem Benson agreed and added she wanted to know specifically what they're going to do that will benefit the community. Councilmember Finerty said the bottom line was that the residents needed to be served and ensure activities were not eliminated. She did not want to grant the CVRPD additional time, because recommendations from the Palm Desert Parks and Recreation Commission fell to deaf ears and it was only until they realized the Council was serious, did they decided to improve. She agreed it was too late. She was in favor of moving forward with LAFCO and detaching. Councilman Spiegel suggested continuing the item for a Study Session with the CVRPD, so they can outline exactly what they would be accomplishing in the six months. Councilman Ferguson stated he was not a fan of sales pitches and would prefer something in writing in black and white, but agreed to grant a continuance for the Study Session. MR. STAND FORD, Coachella Valley Recreation and Park District,stated he understood what the Council was requesting and would prepare that with the inclusion of the weight equipment and make it more efficient. In answer to time needed, he replied 30 days. He felt the packet already provided 90% of the information, but he would clean it up and be more direct. Councilmember Finerty stated the packet needed more substance with a complete outline of services to be provided to the residents, to ensure that Palm Desert would get their money's worth. Councilman Spiegel moved to, by Minute Motion,continue this matterto the meeting of February 22, 2007. Motion was seconded by Benson and carried by a 5-0 vote. 16 ����� . PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 25, 2007 Ortega asked what type of information other than what was already provided, did they want to look at. Some of the responses were: a budget, a line item, new programs and their cost and schedule of when they will happen, and the amountgoing to administration. Councilman Ferguson did notwant a Power Point presentation. XII. OLD BUSINESS None XIII. PUBLIC HEARINGS A. CONSIDERATION OF THE FORMATION OF CITY OF PALM DESERT BENEFIT ASSESSMENT DISTRICT NO. 1 (Continued from the meeting of January 11, 2007). Councilman Ferguson noted this item was continued because both sides were close to an agreement. Staff confirmed an agreement was reached by both parties. Mayor Kelly invited testimony in FAVOR OF or in OPPOSITION TO this matter. MR. TOM NOBLE, EI Paseo, Palm Desert, stated a settlement was reached with Monterrey 170, whom they had their contract with. He said they supported the formation of the District and felt it was the best way to handle the drainage problem. With no further testimony offered, Mayor Kelly declared the public hearing closed. MR. ROBIN HARRIS, Bond Counsel, Richards, Watson, & Gershon, explained the public hearing process for this item. Ms. Klassen stated that pursuant to the procedures for the completion, return, and tabulation of the assessment ballots which have been adopted by this Council, were submitted and not withdrawn in support of or in opposition to the proposed assessment within the City of Palm Desert Benefit Assessment District No. 1. A total of 197 ballots were properly returned to the City Clerk. With ballots weighted according to the proportional financial obligation o each affected property, it was determined that ballots representing$112,092.68 in financial obligation were returned in support of the proposed assessment and ballots representing $261.60 in financial obligation were returned in opposition to the proposed assessment. Therefore, 99.77% of the ballots, as weighted, were cast in support of the proposed assessment. Thus, there was not a majority protest against the proposed assessment. 17 ������ PRELIMINARY M{NUTES REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 25, 2007 Councilman Spiegel moved to, by Minute Motion, waive further reading and adopt Resolution No. 07-3A, ordering modifications to the Engineer's Report in connection with Benefit Assessment District No. 1, approving the Engineer's Report as so modified, ordering formation of such District, and confirming a maximum assessment in connection therewith. Motion was seconded by Ferguson and carried by a 5-0 vote. Mayor Pro Tem Benson asked if District 1 and Section 29 encompassed all of the north sphere. Mr. Yrigoyen replied this assessment was Section 29, and at this point in time, no others have come forward. Responding to question regarding University Park, he stated an additional $20 million in bonds was being authorized and coming forward to Council the second meeting in February. He affirmed this assessment would finish covering all of the north sphere to Monterey Avenue. B. CONSIDERATION OF THE FORMATION OF CITY OF PALM DESERT SECTION 29 ASSESSMENT DISTRICT(NO.2004-02)(Continued from the meeting of January 11, 2007). Mayor Kelly invited testimony in FAVOR OF or in OPPOSITION TO this matter. MR. JEFF SCHRADER, Senior Vice President of Ponderosa Homes, stated they were located in the new building in Pa{m Desert, over Interstate 10, off Washington Street. He thanked the Council for consideration of this item because the $35 million Assessment District will provide significant public improvements, including the widening of Gerald Ford Drive, installation of Portola Avenue through Gerald Ford Drive to Dinah Shore Drive, Dinah Shore Drive from Portola Avenue overto 35'h Avenue, a few other street, and seven property owners. It was three years since its inception and was difficult to get everyone to reach an agreement, but they did and were ready to move fonivard. He thanked the City staff for all their efforts, specifically Mr. Greenwood, Ms. Scott, Ms. Tapia and Mr. Gibson. MS. HARRIS, explained the public hearing process for this item. She said once the ballots were tabulated and staff returned with the results, the hearing can be closed at that time. With no further testimony offered, Mayor Kelly declared the public hearing closed. Ms. Klassen stated pursuantto the procedures forthe completion, return and tabulation of the assessment ballots which have been adopted by this Council, were submitted and not withdrawn in support of or in opposition to the proposed assessment within the City of Palm Desert Section 29 Assessment District (No. 2004-02). A total of 188 ballots were property returned to the City Clerk. With ballots weighted according to the 18 [�_+� c'�r �s�� PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 25, 2007 proportional financial obligation of each affected property, it was determined that the ballots represented $38,454,875.24 in financial obligation were returned in support of the proposed assessment and ballots representing zero dollars in financial obligation wee returned in opposition to the proposed assessment. Therefore, 100% of the ballots, as weighed, were cast in support of the proposed assessment. Thus, there is not a majority protest against the proposed assessment. Councilmember Finerty moved to, by Minute Motion, close the public hearing. Motion was seconded by Ferguson and carried by a 5-0 vote. Ms. Harris stated Resolution 07-46 required a modification to delete Section 18, which was approval of a purchase and sale agreement with respect to the retention basin. That agreement was still being finalized and the intent is to bring back to Council at the next Council meeting. Responding to question, Ms. Harris replied the Resolution can be approved as modified. Councilman Ferguson asked how an assessment district be formed, when an agreement had not yet occurred. Ms. Harris stated the assessment district would not be contingent, it would be formed and provide the Council with the ability to go on to the next step, which was the bond issue to pay for the improvements. What would need to happen before the bonds are issued, would be to approve the purchase and sale agreement. MR. TOM NOBLE, stated he did not foresee a problem in finalizing the agreement. He said the major terms have already been agreed upon with the exception of minor legalities. Councilman Ferguson moved to, by Minute Motion,waive further reading and adopt: a) Resolution No. 07-4A, making certain findings in connection with proposed Section 29 Assessment District (No. 2004-02); b) Resolution No. 07-46, approving the Engineer's Report in connection with City of Palm Desert Section 29 Assessment District (No. 2004- 02), confirming the assessments in connection with such District, ordering proposed acquisitions and improvements to be made, approving as to form and authorizing the execution and delivery of certain agreements as modified to delete Section 13, and taking certain other actions; c) Resolution No. 07-4C, making certain designations in connection with City of Palm Desert Section 29 Assessment District (No. 2004-02). Motion was seconded by Spiegel and carried by a 5-0 vote. C. REQUEST FOR APPROVAL OF PHASE 1 OF A HILLSIDE DEVELOPMENT PLAN TO ALLOW THE CONSTRUCTION OF A PROPERTY ACCESS ROADWAY AND TURN-AROUND FOR PERCOLATION AND SOILS INVESTIGATION — PROPERTY LOCATED 19 ��'�'.j:��° PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 25, 2007 WEST OF THE PALM VALLEY STORM CHANNEL ON UPPER WAY WEST (APN 628-130-015) Case No. PP/HPD 05-17 (Baracuda LLC, c/o Bruce Kuykendall, Applicant). Appficant withdrew his application; therefore, no action was required. Mayor Pro Tem Benson wondered why Mr. Wally Kerrigan, who submitted a letter opposing this project and lived on Homestead Road would object to a project on the hillside. Assistant Planner Mr. Ryan Stendell replied this project was a publicly noticed hearing and it was possible he received a notice because he expanded his noticing requirement to 2,000 feet, subject to the amendment to the Hillside Development Zone. XIV. REPORTS AND REMARKS A. CITY MANAGER 1. Mr. Ortega reminded City Councilmembers that the Fiscal Year 2007/08 Budget Calendar had been distributed, and the first meeting with staff and City Council for an update on the progress of current projects was scheduled for Thursday, February 15, 2007. 2. Mr. Ortega further asked City Councilmembers to review their schedules in order to arrange a City Council Study Session being planned for Thursday, March 22, 2007, at 2:00 p.m. with the City's Legislative Advocate in Sacramento, Anthony Gonsalves. He noted that most of the bills would have been introduced to the full session by that time, giving the City an idea of what it should look for and to also get an idea on the State's budget. B. CITY ATTORNEY None C. CITY CLERK None 20 PRELIMINARY MINUTES ������ REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 25, 2007 D. PUBLIC SAFETY o Fire Department None o Police Department None E. MAYOR AND MEMBERS OF THE CITY COUNCIL o City Council Requests for Action: None o City Council Committee Reports: 1. Palm Desert Chamber of Commerce — Councilman Spiegel reported the following: a) At Tuesday's Chamber Board Meeting, it was recommended that the next Golf Cart Parade be held on Sunday, October 28. He noted that the event was previously moved from November to January in an effort to benefit from being the same time as the Bob Hope Chrysler Classic, but this did not occur. Additionally, it was found that timing was not good for the schools to prepare floats and have their bands participate in the parade. Therefore, the Board recommended a return to holding the event in the fall. He said it was the Golf Cart Parade Committee's responsibility to approve it, but it was anticipated they would. b)The Palm Desert Chamber of Commerce was sponsoring a nine-day trip to China, October 31 - November 9, 2007, for the cost of $1,500, with excellent hotels and good food a part of the itinerary. He provided fliers to the City Clerk's Office and invited anyone interested to contact her office for one. o Gity Council Comments: None 21 ����� PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 25, 2007 XV. ORAL COMMUNICATIONS - C None XVI. ADJOURNMENT On a motion by Ferguson, second by Spiegel, and unanimous vote of the City Council, Mayor Kelly adjourned the meeting at 5:46 p.m. RICHARD S. KELLY, MAYOR ATTEST: RACHELLE D. KLASSEN, CITY CLERK CITY OF PALM DESERT, CALIFORNIA 22