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HomeMy WebLinkAboutPRELIM - CC - 01/10/08 �RAFT PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING THURSDAY, JANUARY 10, 2008 CIVIC CENTER COUNCIL CHAMBER 73510 FRED WARING DRIVE, PALM DESERT, CA 92260 I. CALL TO ORDER - 3:00 P.M. Mayor Benson convened the meeting at 3:01 p.m. II. ROLL CALL Present: Councilman Jim Ferguson Councilmember Cindy Finerty Councilman Richard S. Kelly Mayor Pro Tem Robert A. Spiegel Mayor Jean M. Benson Also Present: Carlos L. Ortega, City Manager/RDA Executive Director David J. Erwin, City Attorney Homer Croy, ACM for Development Services Justin McCarthy, ACM for Redevelopment Stephen Y. Aryan, Assistant to the City Manager Rachelle D. Klassen, City Clerk Bo Chen, City Engineer Russell Grance, Director of Building & Safety Lauri Aylaian, Director of Community Development Paul S. Gibson, Director of Finance/City Treasurer Janet M. Moore, Director of Housing David Yrigoyen, Director of Redevelopment & Housing Frankie Riddle, Director of Special Programs Jorge Rodriguez, Battalion Chief, Palm Desert Fire/Riverside Co. Fire Dept./CalFire Frank Taylor, Asst. Chief, Palm Desert Police/Riverside Co. Sheriff's Dept. Grace L. Mendoza, Deputy City Clerk III. ORAL COMMUNICATIONS - A (CLOSED SESSION ITEMS) None DRAFT PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 10, 2008 IV. ADJOURN TO CLOSED SESSION Reguest for Closed Session: Conference with Real Property Negotiator pursuant to Government Code Section 54956.8: 1) Property: APN 628-130-008 Negotiating Parties: Agency: Carlos L. Ortega/Ryan Stendell/City of Palm Desert Property Owner: David Nelson Under Negotiation: x Price x Terms of Payment 2) Property: APN 628-130-011 Negotiating Parties: Agency: Carlos L. Ortega/Ryan Stendell/City of Palm Desert Property Owner: City of Palm Desert Under Negotiation: x Price x Terms of Payment Conference with Legal Counsel regarding significant exposure to litigation pursuant to Government Code Section 54956.9(b): Number of potential cases: 2 Mr. Erwin requested the City Council's consideration of adding an item of potential litigation to the Closed Session agenda by four-fifths vote: Discussion of the Kemper Contract. Upon a motion by Spiegel, second by Ferguson, and 5-0 vote of the City Council, 1 case of potential litigation pursuant to Government Code Section 54956.9(b)was added to the agenda. In response to Councilmembers' questions and comments regarding the annual Committee and Commission appointment/reappointment process, Mrs. Klassen agreed to provide a consolidated list with the names of those who Councilmembers have indicated a desire to reappoint and current vacancies. An item for this discussion would be placed on the agenda for the January 24, 2008, Regular City Council Meeting. Upon a motion by Ferguson, second by Spiegel, and 5-0 vote of the City Council, Mayor Benson adjourned the meeting to Closed Session at 3:05 p.m. She reconvened the meeting at 4:00 p.m. 2 DR AFT PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 10, 2008 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 - Mayor Pro Tem Robert A. Spiegel VII. INVOCATION - Councilman Richard S. Kelly VIII. ORAL COMMUNICATIONS - B MR. TOM WIXON, Director of Public Relations, College of the Desert (COD), Palm Desert, CA, addressed the City Council to enlist support for passage of Proposition 92 - The California Community College Initiative - on the February 5, 2008, California Consolidated Presidential Primary Election. He said Prop. 92 may not get the attention it deserves, appearing on that same ballot, but it was very important to the vitality of California's Community Colleges. It lowered fees to $15/unit and would help secure the necessary resources in the future to keep Community Colleges growing and affordable by providing adequate and stable funding. He noted that for every tax dollar invested, Community Colleges returned $3.00 to the community. Therefore, he urged everyone to consider a "Yes" vote for Proposition 92 on February 5. He provided a supply of fact sheets on Prop. 92 to the City Clerk for anyone who was interested. MS. JOELLE LEVY, Palm Desert High School student, approached the City Council to request funding assistance for establishing a Literature Club at her school that would help girls her age participate in a wholesome activity so that they could avoid the dangerous choices for their attention that some were now making, such as "MySpace," drinking alcohol, and boys. She related that over the summer she had written to Warren Buffet and his daugher, Suzy Sherwood, asking for their sponsorship of her club that would gather and recruit all girls in her school to read literature and formulate better lifestyle choices that would lead to good outcomes down the road. She asked the City Council to provide the matching grant that Ms. Sherwood requested. Funds would provide the books and a qualified, paid supervisor, which she felt was an important aspect of the proposal. She offered to provide quarterly reports on the City's investment and also to provide a copy of Ms. Sherwood's letter for the record. Mayor Benson responded that the City has an annual process for funding of such endeavors, and if Ms. Levy provided a copy of the letter and her mailing address, one of the applications could be sent to her for the upcoming cycle. 3 DRAFT PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 10, 2008 MR. JOSHUA CHAO and MR. MATTHEW HARGREAVES spoke about Palm Springs High School's International Business Club and the Asian American Expo coming up in Pomona, California. Thirty-one students planned to attend the Expo, January 19-20. Club Advisor Mr. Chao explained that they offered a Money Marketing and ManagementAcademy, and one ofthe newactivities planned forthis year was exposing students to different cultures and marketing the beautiful Coachella Valley. He said the Asian American Expo was one of the biggest gatherings for Asians outside of Asia, with an estimated 50,000 expected to attend the traditional Chinese monthly gathering. The Club would be hosting a booth there, and he was training the students how to market the Coachella Valley through that effort. He said this presentation was part of the student public training, which also included working with other agencies, teamwork, and critical thinking, with the goal of raising future business leaders. He also trained them in Chinese to invite people to come to the Valley and looked forward to coming back to in the future to show pictures of their Expo experience. He thanked the City Council for allowing his student to practice public speaking in this forum. MR. ROB BALLEW, Family YMCA of the Desert, Palm Desert, CA, stated he was very proud of the City of Palm Desert and its Council for making the decision to fund two motorcycle officers to work in the City of Desert Hot Springs. It was a much- needed undertaking there; and once again, it showed how much Palm Desert cares for the entire Coachella Valley. Secondly, he related that in November he had the pleasure of attending the Art of Food & Wine Festival for the first time, where he met a lot of new people and had a great time. He felt it was a great product and hoped everyone could come togetherwith a lot more people if it continues, because it really does showcase the City and the Coachella Valley in a wonderful way. IX. AWARDS, PRESENTATIONS, AND APPOINTMENTS A. PRESENTATION TO THE PALM DESERT CITY COUNCIL BY QUEEN SCHEHERAZADE AND HER COURT AS AMBASSADORS OF THE 2008 RIVERSIDE COUNTY FAIR AND NATIONAL DATE FESTIVAL. MS. BARBARA CRESON, "Queen Mom," presented the Queen's Court: MS. DESIREE PORRAS, Queen Scheherazade; MS. COURTNEY LEE, Princess Dunyazade; and MS. RITA SANDOVAL, Princess Jasmine. Each of the ladies greeted the Agency Board/City Council and personally invited them and all present to visit and enjoy the upcoming Fair, February 15-24, highlighting the many events and activities to be held there this year. They also thanked the City for its continued support of the Fair and provided brochures and lapel pins to the City Councilmembers. 4 - DRAFT PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 10, 2008 B. APPOINTMENTS TO THE YOUTH COMMITTEE. Mayor Pro Tem Spiegel moved to, by Minute Motion, appoint Carl Gerhardt and Anna Miller to the Palm Desert Youth Committee for a one-year term (12/31/08) to fill the vacancies of Kevin Francis and Christina Sun, respectively. Motion was seconded by Finerty and carried by 5-0 vote. X. CONSENT CALENDAR A. MINUTES of the Regular City Council Meetings of December 13, 2007, and December 27, 2007. Rec: Approve as presented. B. CLAIMS AND DEMANDS AGAINST THE CITY TREASURY - Warrant Nos. 135, 136, 140, 141, 145, 146, 150, and 151. Rec: Approve as presented. C. CITY/AGENCY COMPLIANCE ANALYSIS and Investment Reports for the Months of September 2007 and October 2007 (Joint Consideration with the Palm Desert Redevelopment Agency). Rec: Receive and file. D. APPLICATION FOR ALCOHOLIC BEVERAGE LICENSE by Little Dono Sushi, Inc., 72-840 Highway 111, Unit #S343, Palm Desert. Rec: Receive and file. E. CITY COMMITTEE AND COMMISSION MEETING MINUTES. 1. Marketing Committee Meeting of November 27, 2007. 2. Parks & Recreation Commission Meeting of November 6, 2007. 3. Youth Committee Meeting of November 5, 2007. Rec: Receive and file. F. LETTER OF RESIGNATION from Ray Lopez - Architectural Review Commission. Rec: Receive with very sincere regret. 5 ����� PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 10, 2008 G. RESIGNATION of Alec Ferguson - Youth Committee. Rec: Receive with very sincere regret. H. REQUEST FOR APPROVAL of Change Order No. 2 to Contract No. R23210—Construction of Freedom Park(Joint Consideration with the Palm Desert Redevelopment Agency). Rec: By Minute Motion: 1) Approve the Riverside County Department of Environmental Health's required changes to the Freedom Park Concession Building; 2) approve Change Order No. 2 in the amount of $23,765.75 to the subject contract with Simon Contracting, Indio, California, and alfocate funds for the aforementioned changes to the Freedom Park Concession Building from the Freedom Park project contingency, Account No. 851-4670-454-4001. I. REQUEST FOR ACCEPTANCE OF WORK for Contract No. R23210 — Construction of Freedom Park (Simon Contracting, Indio, CA) (Joint Consideration with the Palm Desert Redevelopment Agency). Rec: By Minute Motion, accept the work as complete and authorize the City Clerk to file a Notice of Completion for the subject project. J. REQUEST FOR ACCEPTANCE OF WORK for Contract No. C26030A — Street, Sidewalk, and Bus Pad Improvements for the Westfield Bus Bay Project (Contreras Construction Company, Indio, CA). Rec: By Minute Motion, accept the work as complete and authorize the City Clerk to file a Notice of Completion for the subject project. K. REQUEST FOR ACCEPTANCE OF WORK for Contract No. C24720A — Construction of the Country Club Drive Sidewalk Improvements Along the Frontage of Patm Desert Greens (Project No. 699-06) (Contreras Construction Company, Indio, 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. L. REQUEST FOR APPROVAL of a $200 Increase to the Public Works Department Petty Cash Limit. Rec: By Minute Motion, approve an increase to the Public Works Department Petty Cash Fund in the amount of$200. 6 r����■ ■ DR AFT PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 10, 2008 M. REQUEST FOR APPROVAL of Agencies to Provide Temporary Staffing Services for Fiscal Year 2007/08. Rec: By Minute Motion, identify and approve the agencies listed within the accompanying staff report for this item as eligible to provide temporary staffing services to the City of Palm Desert on an as- needed basis forthe balance of Fiscal Year 2007/08 in an amount not to exceed $50,000 — funds for this purpose are available in the approved FY 2007/08 Budget. N. REQUEST FOR APPROVAL of Out-of-State Travel for the City's Senior Engineer/City Surveyor to Attend 2008 California Land Surveyors Association Annual Conference. Rec: By Minute Motion, approve out-of-state travel for the Senior Engineer/City Surveyor to attend the subject conference in Reno, Nevada, February 23-27, 2008 — funds for this purpose in the estimated amount of $1,365 are available in Account No. 110-4614-453-3120. Upon a motion by Spiegel, second by Kelly, and 5-0 vote of the City Council, the Consent Calendar was approved as presented. XI. CONSENT ITEMS HELD OVER None XII. RESOLUTIONS None XIII. ORDINANCES For Introduction: None For Adoption: None 7 �� � � R PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 10, 2008 XIV. NEW BUSINESS A. CONSIDERATION OF AN APPEAL OF AN ORDER TO ABATE A PUBLIC NUISANCE FOR PROPERTY LOCATED AT 77-740 DELAWARE PLACE, PALM DESERT Case No. 07-3553 (Manuel Sanchez, Appellant). Code Compliance Manager Hart Ponder noted the staff report and stated in addition to the photographs included in the packet, he had recent color photos that showed the items still existed. He said the neighbors complained to the City about the situation. The property owner possess a Home Occupation Permit but was not abiding by the guidelines. Code Enforcement has dealt with this matter for the past three years and they've educated the propertyowneron what needed to be done in orderto come into compliance; he came into compliance and later fell out. The size and extent to which he was out of compliance affected the neighborhood. It's was out of proportion for what a Home Occupation Permit allowed, which included a home office, incidentals, and occasional supplies. Staff recommended that Council uphold the Orderto Abate. The Appellant was informed to remove items and screen them from public view. Mayor Benson asked if the property owner was running a nursery business from his home. Mr. Ponder responded yes. He said the property owner owned a nursery business through a Home Occupation Permit. Usually a nursery business thaYs conducted in the appropriate zone displayed the same type of storage items as seen in the photos. However, this was a residential area, which would be fine if it was just incidental items. He said the neighbors had been complaining, and the situation reached a point where the property owner needed to come into compliance. Councilmember Finerty asked if the Conditions of Approval were given to the property owner when he applied for the permit and if he understood them. Specifically referring to Item 3 of the Conditions of Approval included in the staff report. Mr. Ponder responded he felt the Appellant understood, because Code Enforcement had been pointing it out to him for the past three years that he was not in compliance. They have explained why this requirement was so important in maintaining the quality of life in a residential zone. Mayor Benson asked where was his regular business located. 8 DRAFT PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 10, 2008 Mr. Ponder responded his business was conducted from his home at this location. Councilman Ferguson asked if the two improved structures shown on the aerial photos belonged to the Appellant. Mr. Ponder responded it was one lot and the whole property belong to the Appellant. Responding to question about the color photos with the street sign going left and right with a long driveway, Code Compliance Officer Johnny Terfehr, who took the pictures, explained Robin Lane was the rear entrance to the property, and the main entrance to the property was in front on Delaware Street. Upon further question, he said Robin Lane appeared to be an alley way. Mr. Ponder pointed out Robin Lane was opened to the public for travel. Councilman Ferguson asked how many times had the property owner been sited. Mr. Ponder responded that several unofficial contacts were made in order to avoid a situation. However, within the past three year, three different code enforcement officers had made contact with the property owner, and they've provided a copy of the Ordinance and explained what needed to be done in order to come into compliance. Staff believed the Appellant was well aware of the situation because he's complied in the past. Code Enforcement was now officially addressing the matter because he's refused to come into compliance this time. Councilman Ferguson asked staff if Mr. Sanchez, the Appellant who requested the appeal, was in attendance. Mr. Ponder responded he's not seen Mr. Sanchez and didn't appear to be in attendance. Mayor Pro Tem Spiegel moved to, by Minute Motion: 1) Make a determination and finding that the storage of gardening materials, landscape construction materials,and other items referenced as such at 77-740 Delaware Place is a public nuisance pursuant to Section 8.20.020, Chapter 8.70, and Chapter 25.15 of the Palm Desert Municipal Code; 2)uphold the Orderto Abate forthe subject property. Motion was seconded by Finerty and carried by a 5-0 vote. 9 DRAFT PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 10, 2008 B. REQUEST FOR APPROVAL OF TRACT MAP NO. 35426 AND A RELATED GRANT OF EASEMENT (Starwood/WVC Rancho Mirage, Inc., Applicant). Mr. Erwin requested that Council consider approval of recommendation No. 1-Resolution No 08-1, but continue recommendation No. 2-Grant of Easement for at least two more meetings. Mayor Pro Tem Spiegel moved to waive further reading and adopt Resolution No. 08-1, approving the map of Tract No. 35426. Motion was seconded by Kelly. Councilmember Finerty stated she would be voting against this item because it was related to the four-story timeshare at Desert Willow, which she was opposed to. Mayor Benson called forthe vote, and the motion carried on a 4-1 vote, with Finerty voting NO. Mayor Pro Tem Spiegel moved to continue the authorization to execute a Grant of Easement to WVC Rancho, Inc., to the meeting of February 14, 2008. Motion was seconded by Ferguson and carried by a 5-0 vote. C. REQUEST FOR AWARD OF CONTRACT FOR LANDSCAPE MAINTENANCE AREA NO. 1 TO VINTAGE ASSOCIATES (CONTRACT NO. C27180, PROJECT NO. 901-08). Mr. Ortega noted Items C, D, and E were all related and could all be considered jointly. Mayor Pro Tem Spiegel wondered if funds were available in the budget, because the contract wasn't going to be awarded to the lowest bidder, as it was found to be non-responsive. Landscape Manager Spencer Knight confirmed funds were available for the remainder of the year. Mayor Pro Tem Spiegel moved to, by Minute Motion: 1) Deem lowest bids by RZ Landscape, Indio, California, and Westcape, Coachella, California, non-responsive; 2) award the subject contract to Vintage Associates, Bermuda Dunes, California, in the amount of $106,000 and to include extra work and services at the specified contract amount; 3) authorize the Mayor to execute said contract—funds are available in Account No. 110-4614-453-3320. Motion was seconded by Finerty and carried by a 5-0 vote. 10 __ ___ __ ___ _ DRAFT PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 10, 2008 D. REQUEST FOR AWARD OF CONTRACT FOR LANDSCAPE MAINTENANCE AREA NO. 2 TO VINTAGE ASSOCIATES (CONTRACT NO. C27190, PROJECT NO. 902-08). Mr. Ortega noted Items C, D, and E were all related and could all be considered jointly. Mayor Pro Tem Spiegel wondered if funds were available in the budget, because the contract wasn't going to be awarded to the lowest bidder, as it was found to be non-responsive. Landscape Manager Spencer Knight confirmed funds were available for the remainder of the year. Mayor Pro Tem Spiegel moved to, by Minute Motion: 1) Deem lowest bids by RZ Landscape, Indio, California, and Westcape, Coachella, California, non-responsive; 2) award the subject contract to Vintage Associates, Bermuda Dunes, California, in the amount of $126,000 and to include extra work and services at the specified contract amount; 3) authorize the Mayor to execute said contract—funds are available in Account No. 110-4614-453-3320. Motion was seconded by Finerty and carried by a 5-0 vote. E. REQUEST FOR AWARD OF CONTRACT FOR LANDSCAPE MAINTENANCE AREA NO. 7 TO SIERRA LANDSCAPE COMPANY (CONTRACT NO. C27200, PROJECT NO. 907-08). Mr. Ortega noted Items C, D, and E were all related and could all be considered jointly. Mayor Pro Tem Spiegel wondered if funds were available in the budget, because the contract wasn't going to be awarded to the lowest bidder, as it was found to be non-responsive. Landscape Manager Spencer Knight confirmed funds were available for the remainder of the year. Mayor Pro Tem Spiegel moved to, by Minute Motion: 1) Deem lowest bids by RZ Landscape, Indio, California, and Westcape, Coachella, California, non-responsive; 2) award the subject contract to Sierra Landscape Company, Palm Desert, California, in the amount of $85,380 and to include extra work and services at the specified contract amount; 3) authorize the Mayor to execute said contract — funds are available in the respective Landscape and Lighting Assessment District Accounts. Motion was seconded by Finerty and carried by a 5-0 vote. 11 QR�4�T PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 10, 2008 F. REQUEST FOR AWARD OF CONTRACT TO VERSA LANDSCAPE, INC., FOR THE PORTOLA AVENUE BRIDGE OVER THE WHITEWATER CHANNEL LANDSCAPING AND IRRIGATION PROJECT (CONTRACT NO. C22870D, PROJECT NO. 647-L-04). Mayor Pro Tem Spiegel asked about the location of the proposed landscaping. Landscape Manager Spencer Knight responded it would be on both sides of the bridge. On the north side of the bridge the landscape will go in on the east and west side, and on the south side of the bridge, it will go in by the school by Magnesia Falls on the east side. Responding to question about the sidewalk, City Engineer Bo Chen stated the City currently had a project constructing the sidewalk on the east side of the bridge to Magnesia Falls and confirmed the landscape will go in front of the wall. Upon further question, he said there was existing sidewalk on the west side. Councilman Kelly asked about the progress on the work that needed to be done on the west side by the mobile home park. Mr. Chen responded it was in the initial design phase. Staff was in the process of determining where the right a way line was, looking at environmental issues, and acquiring additional property if necessary. Upon further question, he confirmed everyone was aware it was an important project. Councilman Kelly moved to, by Minute Motion: 1) Award the subject contract to Versa Landscape, Inc., Corona, California, in the amount of$53,730; 2) set aside a 10% contingency for the project; 3) authorize the Mayor to execute the agreement—funds are available in Account No. 400-4359-433-4001. Motion was seconded by Spiegel and carried by a 5-0 vote. G. REQUEST FOR AUTHORIZATION OF THE PURCHASE OF TRAFFIC SIGNAL EQUIPMENT FOR 15 INTERSECTIONS ON HIGHWAY 111 AND HIGHWAY 74. Mayor Pro Tem Spiegel stated the City was taking over Highway 111 and Highway 74 from the State, and staff was purchasing equipment to make traffic move more quickly. Transportation Engineer Mark Diercks agreed. 12 PRELIMINARY MINUTES DR��T REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 10, 2008 Mayor Pro Tem Spiegel inquired about the Portola Avenue stop lights at Frank Sinatra Drive and Gerald Ford Drive. Mr. Diercks responded the City had planned to install the signal lights, but it's been delayed because of the two property projects on the west side. Those projects were not developed as expected. Staff didn't want to build a signal and then have to throw it away. Staff was waiting for both corners to be developed to put the signal light in. He said the signal could be installed now, but it would be a throw away because both corners on the west side need to be widened out. Mayor Pro Tem Spiegel asked why not widen those corners now. Mr. Diercks responded the City could, but it would be with City funds. Mayor Pro Tem Spiegel stated agreements would need to be acquired from the property owners so they could then pay for it down the line. He requested staff look into a timeline for the possibility of doing that. He's anticipating that once Portola Avenue opened up to Dinah Shore, it will be a major way to get through the City. Mr. Diercks agreed to look into it. Councilman Kelly asked what would happen if the California Transportation Commission (CTC) didn't approve the take over. Mr. Diercks responded staff was just waiting on a formality, and the item was on the Riverside County CTC agenda scheduled in February. Upon further question, he said the purchase could be postponed, but there was a 12- to 16-week delay in getting the equipment delivered, and it would take longer to get the controller in. He confirmed the stop lights were already there. Councilman Kelly stated CVAG just spent a couple of million dollars to synchronize all the signals. He felt it would be prudent to delay the purchase for a month until the California Transportation Commission approved the takeover. Mr. Ortega stated Council previously directed staff to negotiate a reimbursement agreement and everything was done. He agreed with staffs comment that it was just waiting on a formality. He said Council could delay and it wouldn't hurt anything. On the other hand, the traffic signals could be purchased and ready for installation once the City took over the highways. He didn't see a drawback in going ahead with the purchase. 13 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 10, 2008 Mayor Pro Tem Spiegel moved to, by Minute Motion: 1)Authorize the purchase of traffic signal equipment from Econolite Control Products, Anaheim, California, to upgrade 15 signalized intersections on Highway 111 and Highway 74 in the amount of$92,355.62, subject to final approval of the State's relinquishment of Highway 111 and Highway 74; 2)appropriate said funds to Account No. 110-4250-433-3325 forthis purpose. Motion was seconded by Kelly and carried by a 5-0 vote. H. REQUEST FOR APPROVAL OF THE PALM DESERT ART OF FOOD AND WINE FESTIVAL. Following is a verbatim transcript of the subject item of business. Key JMB Jean M. Benson, Mayor CLO Carlos L. Ortega, City Manager DJE David J. Erwin, City Attorney RAS Robert A. Spiegel, Mayor Pro Tem RSK Richard S. Kelly, Councilman KS Ken Schwartz, Palm Desert resident JM John Marmon, President of the Sister Cities Foundation/Chairman of the 2007 Riverside County National Date Festival and County Fair. WP Woody Peak, Palm Desert resident BS Beverly Starcher, Palm Desert resident DF Diane Funk, Palm Desert resident DH Debbi Hinton, Executive Vice Presidentfor KCET/General Managerof KCET Desert Cities KK Kristy Kneiding, Marketing Manager JF Jim Ferguson, Councilman CF Cindy Finerty, Councilmember RDK Rachelle D. Klassen, City Clerk JMB Next Item is request for approval of the Palm Desert Art of Food and Wine Festival. CLO Well Mayor...you do have a staff report with two recommendations. Um, I should point out that if you do...pass a motion approving...the program...that you also give the directive to the CityAttorneyto reviewthe agreement...and to add the conditions on page two as recommended by staff—ratherthe changes to the agreement. Other than that, staff has no other comment unless you have questions. DJE Could I comment, if I might, Madam Mayor? I'd like to not be limited by what is in the staff recommendation but at least to look at the entire contract. JMB I didn't hear what you said. 14 IDRAFT PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 10, 2008 DJE Basically what I... I have no problem with the recommendations, but I would not want to be limited only to that, in looking at the contract. RAS I'm not sure what that means. RSK I'm not sure what you mean either. DJE If I go through the contract and I see something that is different than the three recommendations, I'd like to be able to recommend to the Council that, that be part of it—an amended contract. RAS So in other words, if we approve it tonight, it would be with the understanding that the contract with Kemper would have to be approved by you. Is that correct? DJE That's correct. RAS Okay, thank you. JMB Okay I do have some people that would like to speak on this. And the first one is Ken Schwartz. KS Good evening. JMB Welcome. KS Thank you for having me here. Um...l just wanted to speak on behalf of the Art of Food and Wine, and I've been reading in the newspaper several different points, just wanted to bring up a little different view on it. And that was, the actual birth of it to where it is now, and to where hopefully it will go. And I just wanted to say that... this was a partnership at the beginning befinreen Marriott and the City of Palm Desert and we had this idea to start something new. Something that would grow and become something even more. Something hopefully along the line, some day of an Aspen or a South Beach. And I can tell you this, that it's well on its way from seeing the first year, to then seeing the attendance the second year, to Kemper's participation the second year, and the job they did in making it a much more... elaborate function. A function that...is, is bordering on becoming a world class event. We need more events like this in Palm Desert to help us with tourism. And as the business person connected to the Marriott,this is exactly what we face going up against other cities and competition from other locations. When we have an event in the valley, that is a Coachella Valley Music Festival, Pacific Light, we sell out. We sell out, we get awareness out, we get to become a brand. Okay? And what we need, especially in Palm Desert I believe, is to get our name out because it's so fabulous—Palm Desert, but that people need to know more about it. And this, I believe, is a great way to do that. IYs...the event was educational, the event was fun, the people who attended it all had a great time. Believe me, I hear about it, if 15 D��FT PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 10, 2008 they don't. And iYs something that can become a tradition. And I, I just look back at all the things that have started and, and at some point, there was a City Council involved in Aspen, a City Council involved in South Beach, and wherever. And they had a vision to look ahead and to see something that could become great, that could be a legacy. And I just want you to know that we support it, and iYs great for tourism. When we sell out, every one sells out; the restaurants, all the business in Palm Desert do well. And you can't golf all the time. You do need to eat, and with eating sometimes it's nice to have some wine. And...it's just a great event, and a great group of people that come together to see each other. Something that I think Palm Desert can be proud of, and...and I hope it... it gets to stay and last. So thank you very, very much. JMB Thank you. Thank you Ken for your participation. John Marmon. JM Thank you Ms. Mayor, and Council and staff. I'm here to speak in favor of the Palm Desert Food and Wine Festival. I am currently the President of the Palm Desert Sister Cities Foundation, and in another job, I also was Chairman of the 2007 Riverside County National Date Festival and County Fair. We set new records, last attendance (inaudible) ...pretty soon you're gonna hear another person from the Sister Cities, Rolf Hoehn, talk a little bit about his feelings about that. He works professionally with the Indian Wells Pacific Light Tennis Tournament. They also set records last year with over 300,000 in attendance. I just want you to know I...I don't drink wine, but I might sip a little champagne now and then. I just want to say it takes years to develop sponsors, volunteers, and event identities. You can remember when we first brought the dance festival in here ten years ago; now it's International. We have people from France and Germany here. It takes a while. The Palm Springs Film Festival—you read all those articles, there were a bunch of them today talking about its success. And...a couple—in the last couple of days, little articles, one says "the first time attending the festival it was just me Paul Lynn and five people." Now that's Barry Manilow. If we got any Barry Manilow fans here. Somebody else from that's...Jerry Weintraub says "When Sonny Bono called me up about twenty years ago, I told him are you crazy! Who's going to want to go to a Film Festival in Palm Springs?" And take a look at us now. So it takes a while for those things to develop. The paper today says,they estimate marketing impression from print and TV would likely exceed $200 million worth for Palm Springs and the Valley. Palm Desert needs a premier branding and marketing event, and I agree that adjustments need to be made, they always do. You're never gonna hit a home run the first time, or rarely do you. The basic concept, I think, is a winner. We certainly need more local participation in it. Sister Cities with Ixtapa-Zihuatanejo chefs and New Zealand influence are prepared to become even more involved in making this a success. I basically am here to say that I urge you the Council to commit for at least another year to allow this event to find itself. Thank you. JMB Thank you John. I have a card from Woody Peek. 16 ����� PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 10, 2008 WP Thank you Mayor Benson and members of the Council, staff. Thanks for this opportunity to talk about the film festival. This past year I attended every event at the film festival and having been involved in developing and promoting events for about 30 years and done over several dozen of them,this event is really on the right track and where it's headed. We have an opportunityforthe destination to promote itself as a culinary and wine center like the State is doing. I had a conversation with the head of the CTTC about the film fest—Art of Food and Wine Festival, and it fits very well within their overall State efforts of marketing cuisine as one of the new elements that the commercials are going out globally around California and what are offerings are in the State. Every event I went to was well done. As we look forward and having been involved in creating events, you're gonna need a three to five year ramp-up and fine-tuning of events. When we created a little event in Nashville, Tennessee called fanfare, the first year we had six bus loads. This pass year they had over three million people attend that week-long festival. So you have to look at what it takes to grow an event over a period of time. I would say from our perspective, there's great legs to this event in how it can grow in the future; whether it be a valley wide event, whether it would be an event that we would recommend looking at how you reach the masses. How we take that high-end component, and enhance it, along with creating activities that would be reaching a wider audience as we go forward. We would (unclear) that you, or I would recommend that you consider how to consider funding the event, and...putting a plan in place to say over the next three to five years what the expectations are before going out to bid. Thank you very much. JMB Thank you. Is there anyone else that wanted to speak that I don't have a card? Please come forward. BS My name is Beverly Starcher. I've been a resident of Palm Dese�t for 25 years and I know most of you up here. This is the first time I've ever come to a presentation, and I'm here to tell you that I'm against the wine—Food and Wine Festival. It sounds like most of the tickets were comp'd. I think the prices are too high, and I think the money that we would be spending out of tax dollars can be better spent on other things, but not this. This is way too much money. We need to do more for the locals. Most of the people that attended this Wine and Food Festival were comp'd. They didn't buy tickets. So I urge you not to vote for monies to fund this for another year. I think two years is enough. Thank you very much. JMB Thank you. Anyone else? Please come forward. Give your name and address. DF My name is Diane Funk, 72-755 Pitahaya, Palm Desert. Thank you. Nice to see you. I just want to say that I'm a promoter. I put on the Indian Wells Arts Festival at the Tennis Garden. I lease the Tennis Garden. I promote the show on my own, and last year I sold about $1 million worth of art, and I had over 12,000 people who came to a family event; there was something for every body. We do have wine. We did have a food tasting. Things start small and then they get bigger. You need 17 PRELI MINARY MINUTES D���T REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 10, 2008 to have a base of community support before you go around the world. I think the only people that were making money from the money that was put out was the organizer and the person that places the ads for advertising. I pay the City of Indian Wells admissions tax. I'm just little old me...but I think the money was not spent well, and I oppose it. I hope you consider my background and my experience when you're making your vote. Thank you. JMB Any other comments? DH Good aftemoon. I'm Debbi Hinton. I'm Executive Vice President for KCET and General Manager of KCET Desert Cities. We have been involved with the Art of Food and Wine Festival for both years; both providing significant amount of promotion for the event, and also, I was involved in arranging for some of the chefs who participated to be here at the event. And I really can't say whether this is the right event for the City, but I do want to offer a couple of observations. I've been very involved overs the years, and we work public television. You know, we raise money...from sponsors and we do a lot of events. I've been involved in an awful lot of events over the years. So I would like to say that I think—one of the reasons that we affiliated with the festival, is I think, is a very fine idea; it has a lot of leg. But I have to say that any event of this caliber is going to take time to develop. You're never gonna succeed in the first year, you're never gonna make your expectations in the first year, it has to build credibility. It's a bit of a chicken and egg, because if you want the high quality participants, the chefs, and the other participants, you have to show that iYs the real thing. That it's not just a shot in the dark, and it's going to go away. Nobody wants to be associated with something that's not real. So you do have to give it time to grow. I think that you will see—I think that this year was really the first year. The first year...the very first year was really more of an experiment to try and see some things, and I think this was the first year that was very organized and focused. And it had very specific goals that we can all understand for us that participated. I think it made a lot of headway from the first year, and I certainly talked to a lot of people. The people that I brought, the chef that I brought, had a very good experience; they would not hesitate to come back. And I think they would talk to their friends and colleagues and you would see that there would be other participation. But you do have to give something—like the prior speaker said, I think you have to give something at least three years, probably five years, to see if it's really going to succeed before you pull the plug...any type of event. If iYs not this and you go off to do something else, it's going to be the same scenario. You have to give it time to grow. So thank you. JMB Thank you. Okay, comments, discussion, or whatever? RSK Did you get everybody? JMB Everybody that wanted to speak. Nope. I asked for everybody. 18 DR�FT PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 10, 2008 KK Good afternoon. Just before you vote, I wanted to make note that the staff report recommendation is correct as presented. However, on the actual agenda you may note a typo in the recommendation number two; that figure should be 650 not 550. So I just wanted to point that out that it was correct as presented in the staff meeting; however, not on the agenda. JF And is that to appropriate 550 from General Fund and 100 from Redevelopment? KK Correct. ThaYs how that should read. Thank you. RSK I didn't get that. Was there...the 550 and the... KK It—those numbers should be $650,000 for the event, and $550 from the general fund, $100,000 from Redevelopment money is the same. RSK ThaYs what this one says. This one—mine says that. KK Your staff report may but I think...some of the agendas that people picked out RSK Oh, oh, okay. KK had the initial agenda. It read... RSK Our's is right then? KK I believe so. Yes. But some of the others that were picked up, I just wanted to clarify. JMB Okay. CLO Correct. The staff report is correct. KK The staff report is correct. CLO Correct. KK The printed agenda that was out for pickup was not correct. JMB Alright. Is that all the comments from the audience now? Okay. Council? RAS Alright there's been a lot of conversation about the Art of Food and Wine. A lot of it good, some of it bad. That's understandable. As was suggested, this was really our first year. The reason it was our first year was because we brought Kemper into the program, because they organize promotions like this. They have a staff that does that. We tried to do it along with the Marriott the first year; it didn't work out 19 ����� PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 10, 2008 too well. About the only thing that was successful was...the music that was at, at Desert Willow. The music this year was in our park, and that wasn't successful at all. The thing that was successful was the Grand Tasting. That was a two-day event that went on at the Marriott Hotel with the food purveyors, and the wine purveyors, and various chefs from all over the United States. Two very strong chefs from KCET were here that are seen every Saturday on their show; their presentations were very well attended. They showed you how to cook stuff, and I ate some of it, and I got fat, and that's too bad. (Laughter) But anyway thaYs what happened. It is a signature event for Aspen, and it is a signature event for South Beach, Florida, and it took a while to get there. Just like the Film Festival took a while to get to Palm Springs. As Barry Manilow said, according to John Marmon, he and about five other guys came to the first show, and now it's a premier event on the west coast. Will the Art of Food and Wine ever be as big as the Film Festival? I don't think so. It won't, because it probably won't draw as many people, and it's probably a little bit more expensive. But it takes a while to get something started, and both Aspen today and South Beach have year-round staff to promote this. We're asking Kemper to come in and start to work on it in the near future and hopefully put it together, but they got other things on their plate. If it gets big enough, they'll be a staff here that will take care of it, and the City will walk away from it but that takes a while to do. As John Marmon also mentioned, the...Dancing Under the Stars, which now is strictly at the McCallum, started out here in our park. And....we had a few people from Arizona, but most of the people that danced were from right around here. And now, we do have performers from all over the world that come to the McCallum Theatre to show you how good they are and their group is at their dance recitals. So like anything else it takes a while. I know there's concern about the money that we spend, but we spend...were fortunate in this City. We spend a lot of money because we have a lot of money; and we get the money primarily from sales tax and hotel occupancy tax. We gave $10 million to Eisenhower Hospital, and that was the right thing to do. We gave $5 million for a school of nursing to Cal State San Bernardino, Palm Desert Campus, and that was the right thing to do. Were giving $2 million to COD for their new facility that they're building for a Police and Fire Fighter Training, and that was the right thing to do. And we didn't get much criticism, in fact, I think everybody is pretty happy with it. The fact that we are in the City—center of the valley. The fact that our money doesn't come from the residents, it comes from sales tax and hotel occupancy, and the more people that we can get here for our hotels, and by the way, the Marriott hotel gives the City over$6 million a year in hotel occupancy tax, in sales tax, and redevelopment dollars. ThaYs a lot of dollars. Anything we can do to help the Marriott Hotel is a good thing. So I'm in favor of going forward with it for another year, with a caveat that the contract needs to be approved by our attorney Dave Erwin, and when the appropriate time comes I'll make that motion. JMB Okay, are there other comments? 20 ����� PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 10, 2008 RSK I'll make my comment. First I want to preface my comment that I...I probably don't—won't change anybody's mind. It seems to me everybody has their mind made up, and I'm not trying to preach to anybody. I'm not trying to tell somebody something they don't know. I just want to be sure that everybody understands why I support this Art of Food and Wine Festival, and why I'm going to vote in favor of it. The primary reason has been mentioned. When this City was formed... in 1973 and Proposition 13 came along, and right or wrong, we wound up with no property tax—zero. Our cities next door Indian Wells and Rancho Mirage, the same thing happened to them. No property tax. So where are we gonna get the money to provide Police, and Fire, and patch our roads, etc., etc. So the City right or wrong, made the decision we had to have hotels and...commercial stores and...to provide sales tax so that we'd have income to operate our City. And I know I've heard the comment that we should do...that children have no involvement in Food and Wine and what about our children? Well things like Food and Wine and our tourism...is what creates the money that we have all the programs that we do for all of our youth in the...the City of Palm Desert. This actually comes down to...so we're about more than 50%, between 50 and 60 percent of our revenue that provides the Police and Fire, and patches the roads, etc., etc., comes from tourism. So it's not a matter of just how many tickets you sell for the Art of Food and Wine festival. It's all the other, restaurants and hotels that are gonna fill our rooms and fill our tables that goes along with the advertising that comes from the Food and Wine. We depend on that tourism—five, 50,000 citizens. If we depended on our stores and our restaurants on a 50,000 people, we would have to get the plywood out and start boarding them up, because it won't do it. We have to have visitors, or we can't provide for Police and Fire. The part about Kemper, I don't see how we can change in the middle of the road. They've built a lot of relationships with chefs and sponsors in this last year, and we want to be able to take advantage of those...another thing is, our adjoining cities all do something. Indian Wells just signed on for three years of Skins Game for something like $4 million. It's not a matter of profit-loss. They're willing to pay it, and rightfully so, pay the $4 million to have that attraction...for their city. Rancho Mirage is very fortunate to have the Dinah—the Dinah Shore. I know they call it something else now, but to me it's still the Dinah Shore. They are very fortunate to have that, but we don't have the Dinah Shore. As everybody mentioned, the Film Festival in Palm Springs, they...and they put money into that originally, a lot of money to keep it going. They in fact even put money into the Hope Classic. We also have a responsibility to our surrounding community to...to assess in the tourism that both Rancho Mirage and Indian Wells...depends on along with us. It, it's a matter of...tourism supports our City, it supports the Cove Commit—Community, and it...it's the cow where we get our milk. And we need to feed the cow or we're not gonna get any milk. So I feel very strongly that we need to give it a least three years and maybe five years to...to give it a chance to work. So those are the reasons that I'm gonna support it. CF While I think that a signatory event is maybe a good idea, I don't think this is the right signatory event. I think it would be appropriate for the hotel community and the 21 ����� PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 10, 2008 restaurant community to promote the Art of Food and Wine, to promote something like that, but I don't think that is what City funds should be used for. The Art of Food and Wine has been tried for two years. The first year there was $380,000 spent, $280,000 was absorbed by the Marriott, the City spent $100,000. The second year, the City lost $722,000, and now we're being asked to spend again $650,000. Of entire total City funds for those three years, it would be$1.442 million for an event that was a failure; it has been tried for two years. It is an inappropriate use of City funds. The role of government is to provide for public safety, landscape maintenance, just as we did tonight, building roads and bridges, parks, for the benefit of our residents. The Art of Food and Wine does not benefit our residents because I believe it's an elitist event at $595 for the four-day pass. You could take the entire $692,000 that we...are being asked to spend for 2007, and you can have year-round three and half deputies, year-round for our public safety, as opposed to having an event for four days that promotes the use of alcohol. I don't believe it's right to subsidize and promote the public consumption of alcohol. We get significant incident reports on a regular basis and most of those are for driving under the influence. So on one hand, we have a contract with the Sheriffs Department to go out and find those that are under the influence and arrest them, and we spend money to do that. On the other hand, we are promoting, we are subsidizing those to go out and actually consume and be under the influence. I don't think thaYs the proper use of government funds. Earlier this year I voted against the Art of Food and Wine, because I had financial concerns. Unfortunately, those financial concerns were realized. Our fiduciary duty as councilmembers is to spend City funds responsibly forthe benefit and safety of our residents. History has shown this event was unsuccessful and a financial disaster; therefore, I cannot support the event. JF Like Councilman Kelly said, I think most of the people either read or heard sort of what our philosophical differences are. I'm often asked, as I'm sure we're all are, what makes Palm Desert a different City from others. And I think iYs our ability to vigorously disagree on things, while not being disagreeable, and letting people make up their own minds...who we represent. As has been said here, I think we all take our duty very seriously in spending taxpayers money. We want to invest it as if it were our own, as if we were business people, and as if we were trying to perpetuate that money in the future. So as Councilman—Mayor Pro Tem Spiegel said, our residents don't have to pay taxes. And the paradigm for doing that for us, as again, has been amply illustrated here as sales tax, T.O.T., to a lesser degree property tax, but the bottom line is we don't pay taxes. Our tourism is the life blood of our community, and we want to do everything we can to help that community. The contributions of the Marriott we overstated enough. Having said all that, I have spent most of my adult life in economic development. I was director of International Trade for the State of Arizona, I am currently the Chairman of the Coachella Valley Economic Partnership, my first role in the City of Palm Desert in 1993 was in the Promotions Committee, which not surprisingly enough, was to take proposals from groups and match them usually on a dollar for dollar basis, to see if they could get 22 ����� PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 10, 2008 up and running from a community spirit involvement, etc. And if they couldn't make it after about finro years, we said it was a good idea, we gave it a run, but no thanks. I guess the point of all that is I'm not a stranger to what it is were trying to do. I've analyzed the numbers, which I've had for less than a week on last year's event. I too voted against this year's event, because I didn't see possibly how it could pencil. I went back and re-read my minutes to make sure that I, you know, wasn't too far off on some of my assumptions, and those concerns for me haven't changed this year. In lay terms we spent $700,000 on a party last November; a four-day party. All the beneficiaries of that party are saying what a great time it was and what a lot of fun it was. We sold $56,000 worth of tickets. If you divide that by the $595 ticket price, we sold less than 100 dollar tickets; one hundred tickets for $700,000. We would of been better off giving $700,000 to the Marriott directly, and telling them to go expand their convention space, or to pry their marketing, because we sure didn't put heads—heads in beds as they say. We didn't provide anything for sales tax, we gave away, at least according to my math, 3,400 tickets, if the attendance figures are accurate. And we had a lot of people who live here, go to events here, and spend money that would of been spent here regardless. You know my wife looked at me and said "for$595 a piece we could fly to Napa and spend a weekend going to wineries and doing wine tastings." You know. Why would we go to EI Paseo where we could have a nice dinner and buy a bottle of wine now for far less than that? Why do we need to go to the McCallum Theatre where we can get wine when we go to the theater? In essence, what does the Art of Food and Wine have to offer? While I'm not opposed, at all, to events that are going to generate sales tax and T.O.T. for our City. Not one iota. And parenthetically, we have supported the Samsung...women's golf tournament up at Big Horn in the last three years at $175,000; we have been on national televison with vignettes on Saturday and Sunday on ESPN on Thursday and Friday; we've had 20 of the top women's golfers in the world here. It's been broadcast around the world, their attendance figures were over$100,000, we had zero risk, a hundred times, if not a thousand times the exposure that the Art of Food and Wine gives us, and yet we're being asked to spend another $650,000 on another four-day party, I'm not belittling it, that does absolutely nothing. And comparing us to the Film Festival and the Indian Wells Tennis Stadium, reminds me of Dan Quail comparing himself to John Kennedy; there is no comparison. You can't take a hundred dollar-100 tickets and $700,000, and compare it to $2 billion media impressions from the Film Festival on $350,000 contributed by the City, by the way, 150,000 people attending that event. The Pacific Lights Open, Indian Wells gives them $600,000, they have 350,000 people that attended; iYs televised around the world. So how you can take our little 100 ticket party and put it in the same category as that, is beyond me. I don't disagree that people are well-intended with this event, but as somebody who has to oversee the spending of our citizens money, I can't justify it. I would love to see us come up with a signature event that adds to our City coffers and not drains from it and for that reason I'm going to vote no again. 23 �� ��� PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 10, 2008 JMB To the Mayor...it's custom that the Mayor speaks last. I was sitting here reflecting over the last 25 years that I've been on this Council and how we have frugally watched the money that we spend in this City, and we have never put a monetary value on something that we did that thought it would promote Palm Desert. Years ago we turned down, when there was a big hotel development wanting to come in here and a Mayor of another city said to me, "Jean, you known aren't you interested in the $3 million you're gonna get each year for this?" I said, no not really. We don't want that kind of project. If we put a monetary value on everything we did in this City, we'd have high risers all over here, we would have a lot more density than we have, we would have more houses coming in because all we wanted to do was make money; and that has never been the philosophy of the City of Palm Desert Council. It's been something that will put us on the map that will show that we're special. And if I looked back and added up the millions that we probably spent on trying to find an event, on doing different events. All the golf tournaments that we made moneyfor Big Horn for, and the Vintage, there is Indian Wells, all ofthem that have benefitted us in return; and to say that this does nothing for our residents, to me, is a real misnomer. Because what it's doing for our residents is bringing in the sales tax that we need for them shopping here, eating here, staying here, that we pay the Police and Fire with. If we didn't have them coming in, we wouldn't have anything, and we've watched over the years... We're one of the very, very few cities, actually in the State of California that can boast close to a $60 million reserve. ThaYs unheard of any more and we—that's because we have watched what we spent, and we are very, very careful. But we also know that it takes money to make money, and to have an event of this caliber...when it gets to its full bloom, everybody will say "Yeah, I thought it was going to fail but it didn't" The same as they did to Palm Springs Film Festival. The same thing— I wrote to Riff Markowitz 15 years ago and said the follies would never make it. I sent him a letter after 10 years and said, "I wanna tell you I was wrong. You guys are doing a great job but you persevered." The audiences were small, nobody went, but he kept at it, and he has a signature event for the City of Palm Springs. So I just believe in what we've done over the years. There's a value to the City of Palm Desert, and I think that once you start something you got to give it a fair chance. And sure iYs costing money but so is advertising cost money and thaYs what were doing. We're not looking to make a profit off of this to begin with, we're looking to get something that is a credit to the City of Palm Desert. In five years, if this proves wrong, we'll probably start on something else, but never is the money wasted because it brings people to our City. And if the residents that are here want to enjoy it, thaYs fine too, but iYs the people that come from the outside that are bringing in the money that provides the services that we do give to our residents. So to say that it's no benefit to our residents, it's a real mis—misnomer in my mind. So anyway that's my comment. 24 �� �s�� PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 10, 2008 RAS Well, I'll make a motion, but before I do, I'd like to comment that in—I've been on the Council for 15 years now, and we have never ever turned down a request from our Police Department for additional help. They wanted a dog this year, they got a dog this year; they wanted additional police on the police force last year and this year, they got additional police. We have never ever turned them down for anything that they've requested. So it's not a question of "Are we gonna do this or have more police?" That's not a question. With that comment I will move approval of the staff recommendation for the Art of Food and Wine Festival for this coming fall with the stipulation that the contract be reviewed and approved by Dave Erwin our City Attorney. RSK Second. JMB Could, could I offer an amendment to—when he reviews the contract if it is not in there, that any additional money needs to come back to the Council? JF Can I also ask for a point of clarification? What if he doesn't approve the contract? Does it come back to Council? JMB Yes. JF Okay. JMB Do I have a second? RSK I second. JMB Okay please vote. RDK The motion carries 3-2 with Councilman Ferguson, Councilmember Finerty voting NO. For purposes of clarification, the motion was: Mayor Pro Tem Spiegel moved to, by Minute Motion: 1) Approve the 2008 Art of Food and Wine Festival to be held in Palm Desert November 6-9; 2) approve a budget of $650,000 for the event and appropriate $550,000 from the City's General Fund and $100,000 from the Redevetopment Agency; 3) approve a one-year extension of Contract No.C26170 with Kemper Sports Management, amended as reflected in the accompanying staff report and recommendation; 4) appropriate $192,000 from the Unobligated General Fund for additional expenses of the 2007 Event; 5) Contract No. C26171 to be reviewed and approved by the City Attorney and will include specific language that requires any requests for additional funding must first come before City Council. Motion was seconded by Kelly and carried on a 3=2 vote, with Ferguson and Finerty voting NO. 25 ����� PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 10, 2008 XV. CONTINUED BUSINESS A. REQUEST FOR APPROVAL OF AGREEMENT FOR THE LANDSCAPING/SCREENING OF PALM DESERT MOBILE ESTATES (CONTRACT NO. C26960)(Continued from the meetings of October 25 and December 13, 2007). Ms. Aylaian noted the staff report and stated this item was continued from the last meeting in order to allow a gentleman an opportunity to speak to Coachella Valley Water District (CVWD) about increasing their financial contribution to the solution. Councilman Kelly stated warning was given that Council would make a decision this evening. Councilman Ferguson concurred. MR. MARK BESSIRE stated he was the property manager for Palm Desert Mobile Estates. He said he's been working with Ms.Aylaian on the proposed three-way split, and it was something he could come to an agreement on. He said within the 60 days, there were some minor stuff that would have to be figured out like the maintenance issue, but definitely felt those were hurdles that could be jumped to reach an agreement. Mayor Pro Tem Spiegel asked if Mr. Bessire planned to do anything with the land on the south side of the property that backed up to Magnesia Falls. MR. BESSIRE responded plans were made to develop more spaces, but at this time it was not feasible. MR. DON UNDERWOOD stated he appreciated the Council's leadership on this issue. He felt if it weren't for the City Council,there probably wouldn't be any action taken. He said the Council was kind enough to postpone their vote on the funding at the last meeting, and it gave him an opportunity to voice his concerns with CVWD. He explained to CVWD the mis-communication about Chaparral Country Club financial participation. He said CVWD stated their position was they were within their legal rights to cut down the tamarisk trees and were not in the business of hiding others trash. They also made the statement that Palm Desert Mobile Estates should be responsible for any future costs. He disagreed with them on a few points, but when they tore down the tamarisk trees, they opened up the area for everyone to look at. He said Peter Nelson, President of CVWD stated he would be happy to have further discussions regarding this situation. Chaparral got involved trying to raise concern about something that affected the entire community. He noted Chaparral had a line of African Simac that's provided nice screening. He said he read through documents provided to him by Ms. Aylaian that he felt were apropos. In a memo written in October, 26 !w'1� s.. �e� � i: . ��. . � PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 10, 2008 it contained the purpose of a Conditional Use Permit. He said the purpose of a Conditional Use Permit(CUP)was to stabilize and protect the residential character of the area and promote a better living environment. He went on to read the rest of the CUP. He understood the City had great demands, and Council was to direct the funds available. He hoped adequate funds would be directed towards a resolution of this problem. He thanked the Council for their consideration. Mayor Benson asked if recommendations 4 and 5 were related to the cleaning up of the Palm Desert Mobile Estates. Ms. Aylaian responded those recommendations were related to the Notice to Abate that was appealed. If Council approved staff's recommendation, staff would ask that the Notice to Abate be suspended for 60 days in order to execute agreements. If successful in executing the agreements, staff would dismiss the Notice to Abate. Upon further question, Ms. Aylaian stated the Notice to Abate dealt with the lack of screening. She said the park owner had made strides towards cleaning up some of the areas there, but right now it needed screening to order to come into compliance. The area will be cleaned, but not screened, the RV's and mobile homes will still be exposed until the plants grow out. Mayor Pro Tem Spiegel asked if the City Manager met with Coachella Valley Water District. Mr. Ortega responded he did. He said CVWD was willing to come up with their 1/3 of the cost, even when at one time the cost was much higher. He said he met with Steve Robbins several times. Mayor Pro Tem Spiegel moved to, by Minute Motion: 1)Approve a landscape-only approach to screening the recently-exposed north face of the Palm Desert Mobile Estates RV storage area; 2) authorize staff to negotiate a three-way cost sharing agreement between the City of Palm Desert, the Coachella Valley Water District (CVWD), and Palm Desert Mobile Estates, and authorize Mayor to execute same; 3) appropriate necessary funds for the project in an amount not to exceed $15,000 to Account No. 400-4614-433- 4001; 4) suspend enforcement action and continue hearing of appeal of Notice to Abate for sixty days pending successful resolution of the issue; 5) authorize the City Manager to dismiss the Notice to Abate upon execution by all parties of cost sharing agreement. Motion was seconded by Kelly and carried by a 5-0 vote. Mr. Erwin noted the motion included Item B, under Continued Business, because the recommendation was the same. 27 �M c� �:� �� PRELIMINARY MINUTES ' � �, f� REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 10, 2008 B. CONSIDERATION OF AN APPEAL OF AN ORDER TO ABATE A PUBLIC NUISANCE FOR PALM DESERT MOBILE ESTATES, LOCATED AT THE SOUTHWESTCORNEROF PORTOLAAVENUEANDTHE WHITEWATER STORM CHANNEL Case No. 07-369 (Mark Bessire/Palm Desert Mobile Estates,Appellant)(Continued from the meetings of October 11,October 25, and December 13, 2007). Please see Item A under Continued Business for discussion and action. Mayor Pro Tem Spiegel moved to, by Minute Motion: 1)Approve a landscape-only approach to screening the recently-exposed north face of the Palm Desert Mobile Estates RV storage area; 2) authorize staff to negotiate a three-way cost sharing agreement between the City of Palm Desert, the Coachella Valley Water District (CVWD), and Palm Desert Mobile Estates, and authorize Mayor to execute same; 3) appropriate necessary funds for the project in an amount not to exceed $15,000 to Account No. 400-4614-433- 4001; 4) suspend enforcement action and continue hearing of appeal of Notice to Abate for sixty days pending successful resolution of the issue; and 5)authorize the City Manager to dismiss the Notice to Abate upon execution by all parties of cost sharing agreement. Motion was seconded by Kelly and carried by a 5-0 vote. XVI. OLD BUSINESS None XVII. PUBLIC HEARINGS A. REQUEST TO COMMENCE WITH THE FISCAL YEAR 2008/2009 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) CYCLE AND TO OPEN THE FISCAL YEAR 2008/2009 APPLICATION PROCESS. Mr. Ortega stated this was a public hearing that opened up the process for organizations and residents who anticipate receiving a Community Development Block Grant (CDBG). He offered that staff was available to answer questions. Mayor Benson declared the public comment period to be open and invited anyone present wishing to make remarks to come forward at this time. MS. JUDY SHEA, Desert Hot Springs Community Task Force, CEO, stated their newest project was the Sober H Center. She said they were almost through with the facility improvements and were on to the next thing, which was licencing. She said according to the licensing requirements, they need to have a three-months reserve of operating expenses before they can open up the center. Once opened, Sober H will be the first licensed residential drug and alcohol treatment center for teenagers in Riverside County. She 28 ���,;^,.��' PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 10, 2008 noted that Proposition 63 would not fund this program. She said this Center was an alternative to Juvenile Hall, short term hospitalization, distance or out-of-state rehabilitation, foster home, or other non or marginally effective institutional placement. Safe House was a wonderful place for homeless and runaway kids, but it's a short-term system; and about 40%of that population could go to their center for the 30-day residential treatment program. The 30-day treatment will also provide after-care treatment, counseling, and assistance to help maintain a clean and sober lifestyle. She said they were located in Desert Hot Springs, but the problem was Countywide. She thanked the Council for the opportunity to speak. MS. GLORIA GOMEZ, Martha's Village 8� Kitchen. She said Council was probably already aware of who they were and what they did, but wanted Council to knowwhatthey accomplished in 2007. She said Martha's Kitchen had been in existence since 1990 and were now working out of their new facility for the past seven years. The facility provides shelter, education to obtain high school diploma, counseling, childcare services, medical clinic for those without insurance, case management, and emergency assistance. Emergency assistance was also provided to families who have homes but need help paying for rent and utility bills. In 2007, 320,000 meals were provided at their facility. The majority of the meals are for children under the age of five. She recognized that the City of Palm Desert had contributed in the past, and requested that Council continue to support their efforts. She noted that half a million was their budget for the meal program alone and hoped that Council took that into consideration. She thanked the Council for their support on behalf of Martha's Kitchen and asked that Council consider her grant request. With no further testimony offered, Mayor Benson closed the public hearing. Mayor Pro Tem Spiegel moved to: 1) By Minute Motion, approve CDBG operation under the existing Five-year Consolidated Plan for the period of FY 2003/2004 to 2007/2008 and the filing of the new Consolidated Plan in FY 2008/2009; 2) Mayor Benson declared the CDBG Application Process for FY 2008/2009 open. Motion was seconded by Ferguson and carried by a 5-0 vote. XVIII. REPORTS AND REMARKS A. CITY MANAGER Mr. Ortega noted that at the request of Mayor Benson, a Study Session had been scheduled for January 15-16. However, during a Study Session, the City Council cannot give specific directives, and he asked if it would instead consider making the January 15-16 session an extension of this meeting. 29 � � � ;��.,�, � PRELIMINARY MINUTES ` ' REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 10, 2008 Responding to question, Mr. Erwin replied it would require the City Council to make a motion to adjourn today's meeting to 8:00 a.m. on January 15 at the specific location. In further response, he said at the end of January 15, City Council could continue the meeting to the following day. B. CITY ATTORNEY None C. CITY CLERK 1. Reminder of the City Council Goal-setting Retreat Scheduled for Tuesday and Wednesday, January 15-16, 2008, at the J. W. Marriott Desert Springs Resort and Spa. Mrs. Klassen said this reminder had been taken care of underthe City Manager's remarks above. D. PUBLIC SAFETY o Fire Department None o Police Department Mayor Benson commented that at this past Tuesday's Palm Desert Chamber of Commerce Mayor's Breakfast, the City's first dedicated Police K9 was introduced. She said "Von Snap" was very well received and very cordial, and he would be a good addition to the City's Police Department. E. MAYOR AND MEMBERS OF THE CITY COUNCIL o City Council Requests for Action: 1. Consideration of the AppointmenUReappointment of a Representative to the Coachella Valley Animal Campus Commission (CVAC) (Mayor Jean M. Benson). Councilman Ferguson moved to, by Minute Motion, reappoint Mayor Jean M. Benson to represent the City of Palm Desert on the Coachella Valley Animal Campus Commission. Motion was seconded by Spiegel and carried by a 5-0 vote. 30 �� � '�' PRELIMINARY MINUTES R '.� � r� :� � REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 10, 2008 Mayor Benson related at this morning's CVAC Commission Meeting, a very good report was received on the facility and plans forthe future. She noted that she had been Commission Chairman for nearly 10 years, but Rancho Mirage Mayor Dana Hobart and La Quinta Councilmember Terry Henderson had graciously agreed to co-chair the Commission from now on. It was her pleasure to be able to serve the City in this capacity. o CitY Council Committee Reports: None o City Council Comments: 1. Mayor Kelly requested an excused absence from the January 24, 2008, City Council Meeting, when he would be away to celebrate both his birthday and 63�d wedding anniversary. Councilmembers congratulated him on both events. XIX. ADJOURNMENT Upon a motion by Spiegel, second by Finerty, and unanimous vote of the City Council, Mayor Benson adjourned the meeting at 5:50 p.m. to Tuesday, January 15, 2008, at 8:00 a.m. at the Desert Springs J. W. Marriott Resort&Spa, 74-855 Country Club Drive, Palm Desert. JEAN M. BENSON, MAYOR ATTEST: RACHELLE D. KLASSEN, CITY CLERK CITY OF PALM DESERT, CALIFORNIA 31