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HomeMy WebLinkAboutPreliminary Minutes - City Council October 13, 2011DRAFT PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING THURSDAY, OCTOBER 13, 2011 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 3:25 p.m. II. ROLL CALL Present: Councilmember Cindy Finerty Councilmember Jan C. Harnik Councilman William R. Kroonen Mayor Pro Tern Robert A. Spiegel Mayor Jean M. Benson Also Present: John M. Wohlmuth, City Manager/RDA Executive Director David J. Erwin, City Attorney 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 Mark Greenwood, Director of Public Works Frankie Riddle, Director of Special Programs Bill Hunley, Battalion Chief, Palm Desert Fire/Riverside Co. Fire Dept./Cal Fire Misty Reynolds, Admin. Sgt., Palm Desert Police/Riverside Co. Sheriff's Dept. Grace L. Mendoza, Deputy City Clerk III. ORAL COMMUNICATIONS - A (CLOSED SESSION ITEMS) None IV. ADJOURN TO CLOSED SESSION Request for Closed Session: PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING OCTOBER 13, 2011 A. Conference with Real Property Negotiator pursuant to Government Code Section 54956.8: 1) Property: 74-506 Falcon Lane (APN 624-430-016), Palm Desert Negotiating Parties: Agency: John M. Wohlmuth/Justin McCarthy/Janet Moore/ City of Palm Desert/Palm Desert Redevelopment Agency Property Owner: Ruben Gonzalez, Jr./Andrea M. Diaz Under Negotiation: x Price x Terms of Payment B. Conference with Legal Counsel regarding existing litigation pursuant to Government Code 54956.9(a): 1) AC Massage and Lawrence Andrews v. City of Palm Desert, Riverside County Superior Court, Case No. INC 10005945. C. Conference with Legal Counsel regarding significant exposure to litigation pursuant to Government Code Section 54956.9(b): Number of potential cases: 2 Please see Minutes for the Special Joint Meeting of October 13, 2011, convening at 2:34 p.m. and adjourning at 3:25 p.m., where the identical Closed Session Agenda listed above was considered. Mayor Benson recessed the meeting at 3:26 p.m. in order to conduct a 3:30 p.m. Study Session with Palm Desert High School Principal Robert Hicks in the Administrative Conference Room (separate posting made for this event). She reconvened the meeting at 4:03 p.m. V. RECONVENE REGULAR MEETING - 4:00 P.M. A. REPORT ON ACTION FROM CLOSED SESSION. None VI. PLEDGE OF ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA - Mayor Pro Tern Robert A. Spiegel VII. INVOCATION - Councilmember Cindy Finerty 2 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING OCTOBER 13, 2011 VIII. ORAL COMMUNICATIONS - B MS. BRIDGET ZAPPIA, Palm Desert, noted that at the last meeting on September 29, Council voted on an ordinance. Each Councilmember explained the reason for their decision before voting. Today she wanted to specifically address Councilmember Harnik's comments at that time. She noted that Councilmember Harnik acknowledged to everyone present at that meeting that the petition Ms. Zappia submitted on behalf of concerned citizens contained a forged signature, and she asked Councilmember Harnik to disclose the name of that individual. She didn't condone such a practice; the petition that was submitted was integrity -filled. Upon direct question, Councilmember Harnik said she could not respond at this time but agreed to get the information to the City Clerk so that Ms. Zappia could contact her for it tomorrow. MS. ZAPPIA said she would appreciate it, because she wanted to get to the truth. She explained that she personally went door to door during the heat of the summer to obtain 100 of the signatures due to her strong belief in the words contained in the petition. She then submitted the petition to the City Council with all sincere integrity and pride, because she felt she was helping each Councilmember with their decision. Up to that point, she felt the residents hadn't been heard that much. She felt that when Councilmember Harnik spoke that night, her petition was discredited in three ways. First, it was pointed out that people had signed the document who were not residents, but it wasn't what the petition said — it said, "We the undersigned," so anybody was welcome to sign it. It contained 196 signatures, and she agreed five were not residents; but she was not misleading in the petition. Secondly, Councilmember Harnik belittled an individual's signature on the petition for the way they viewed Palm Desert — the words alluded that their view was outdated. Lastly, the document was accused of being fraudulent. She pointed out it was ironic that this disservice to the residents occurred after Councilmember Harnik praised Councilman Kroonen's remarks, saying that it was a time for the residents to heal, and Councilmember Harnik applauded and believed in his words. But then she opened up on the residents' petition to the Council. She went on to say that after experiencing the name-calling from the business community, being ridiculed for their questions and views on the project, the last straw for her was being accused of a crime — forgery. She stated that it is one thing to be supportive of a project, but she believed it was overstepping boundaries to attack the residents, when their intentions were very well-meaning — all they wanted was participation in the Council's decision -making. She felt it was a line that no elected official should ever cross. She thanked the Council for listening and looked forward to getting the information from the City Clerk. 3 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING OCTOBER 13, 2011 IX. AWARDS, PRESENTATIONS, AND APPOINTMENTS A. PRESENTATION TO RECOGNIZE DONNA AHRENS LEWIS FOR HER SERVICE TO THE CITY OF PALM DESERT AND ITS HOUSING COMMISSION 2008 - 2011. Ms. Lewis was unable to be present at the meeting for this recognition. The engraved crystal clock to be given in appreciation for hertime on the Housing Commission will be forwarded to her. B. PRESENTATION OF PROCLAMATION DECLARING THE MONTH OF OCTOBER 2011 AS "NATIONAL ARTS AND HUMANITIES MONTH" IN THE CITY OF PALM DESERT. On behalf of the City Council, Mayor Pro Tern Spiegel presented the proclamation to Maureen Thompson, Chair of the City's Art In Public Places Commission. MS. THOMPSON thanked City Council for recognizing October as Arts and Humanities and for its ongoing support of these activities, adding that she was proud not only to be a resident of the City, but especially to be Chair of the Art In Public Places Commission. C. INTRODUCTION OF NEW PALM DESERT HIGH SCHOOL PRINCIPAL ROBERT HICKS AND PRESENTATION OF PROCLAMATION CELEBRATING THE RE -DEDICATION OF THE REBUILT PALM DESERT HIGH SCHOOL. On behalf of the City Council, Mayor Pro Tern Spiegel presented the framed proclamation to Mr. Hicks. MR. HICKS expressed sincere appreciation for the recognition and thanked the City Council for having him here today for the Study Session earlier this afternoon for everyone to get acquainted. He said the Palm Desert High School Reconstruction Project was very meaningful to him, even though he'd only been Principal there a short time. He remarked that the project was not only special but unique because it represents a community -wide effort. It began in January 2007 when an architectural services contract with Ruhnau, Ruhnau & Clarke was awarded for Palm Desert High School, and everyone became a believer that it could be finished in just a few short years. He also thanked the many people involved in the project -- from the City, everyone who was responsible for getting Cook Street ready before school started. From the school, the teachers, counselors, staff, and students, who have a deep dedication to Palm Desert High School and its mission that made this transformation possible. The innovative design of the new Aztec School site 12 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING OCTOBER 13, 2011 was symbolic of all that Palm Desert High School stands for — choosing to focus on excellence and high goals, and putting students' needs first. Academics, activities, arts, and athletics will continue to reach higher levels and achieve expectations that have been supported over the years by the community and the City. Palm Desert High School strives for academic excellence and has set a goal to be a 900-API school, while having every student college and career ready upon graduation. Whether they attend Ivy League schools or other four-year universities, enter the military service, or attend a community college, they will prepare students with expectations that are second to none through advanced placement classes or the development of technical career education, such as the health pathway, expanded robotics program, or the performing arts facilities. He went on to say their athletic excellence, which has ranged in every program from fall to spring, is displayed in the beautiful newgymnasium with its DVL banners and CIF plaque -filled trophy case. He said these achievements, along with an interest in raising the bar were so easily reflected in what they value, as is symbolized by their mascot, the Aztec — a powerful symbol that links students to a proud and rich history and a program from the last 25 years. In many ways, the Palm Desert High School (PDHS) Project gives assurance that its future will be one based in the same values espoused by past Aztecs with development of community, family, respect, and character. At the time it was originally built, PDHS accommodated only one-fourth of the students who now walk through the gates, and it was surrounded only by desert at that time. With an updated facility, it can once again host events for the whole Palm Desert family — the theater, gym, lecture hall, and other wonderful features, and full houses were anticipated at all events. He closed by saying this beautiful new school gives students a head start on whatever path they may choose — they may leave PDHS at the end of their senior year, but they will always be Aztecs. X. CONSENT CALENDAR A. MINUTES of the Adjourned Regular City Council Meeting of September 29, 2011. Rec: Approve as presented. B. CLAIMS AND DEMANDS AGAINST THE CITY TREASURY - Warrant Nos. 70, 75, 76, 86, and 87. Rec: Approve as presented. 9 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING OCTOBER 13, 2011 C. CLAIM AGAINST THE CITY (#681) by Jennifer Stonick in the Amount of $10,000. Rec: By Minute Motion, reject the Claim and direct the City Clerk to so notify the Claimant. D. CLAIM AGAINST THE CITY (#684) by Frontier Bank FSB d.b.a. El Paseo Bank in an Unspecified Amount. Rec: By Minute Motion, reject the Claim and direct the City Clerk to so notify the Claimant. E. COMPLIANCE ANALYSIS AND INVESTMENT REPORTS for the Month of June 2011 (Joint Consideration with the Palm Desert Redevelopment Agency). Rec: Receive and file. F. APPLICATION FOR ALCOHOLIC BEVERAGE LICENSE by Albertsons 6559, 74-590 Highway 111, Palm Desert. Rec: Receive and file. G. CITY COMMITTEE AND COMMISSION MEETING MINUTES. 1. Art In Public Places Commission Meeting of June 22, 2011. 2. Audit, Investment & Finance Committee Meeting of June 28, 2011. 3. Cultural Resources Preservation Committee Meeting of March 29, 2011. 4. Landscape Beautification Committee Meeting of July 20, 2011. 5. Parks & Recreation Commission Meetings of July 19 and September 6, 2011. Rec: Receive and file. H. LETTER OF RESIGNATION from Donna Ahrens Lewis — Housing Commission. Rec: Receive with very sincere regret. PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING OCTOBER 13, 2011 REQUEST FOR DECLARATION of Surplus Property and Authorization for Disposal — Miscellaneous Computer Equipment and Obsolete Council Chamber AV Electronics. Rec: By Minute Motion, declare items listed on the accompanying staff report's Exhibit "A" as surplus property and authorize disposal as appropriate. J. REQUEST FOR APPROVAL of Funds for SunGard Public Sector Business Analysis Review (Contract No. C31240). Rec: By Minute Motion, approve payment to SunGard Public Sector in the amount of $27,000 to provide a Business Process Review for the City's Mainframe Business Software that handles Building Permits, Code Enforcement, Business License, Purchasing, Payroll, and Accounting — funds are available for this payment in Fund 400. K. REQUEST FOR ACCEPTANCE of Bid for Printing of the 2012 City Calendar (Contract No. C31250). Rec: By Minute Motion: 1) Accept the bid from Pride Industries, Roseville, California, for printing of the City's annual 2012 Calendar in the amount of $15,165.63; 2) authorize the Mayor to execute said bid — funds are available in the 2011-2012 Marketing Budget, Account N o . 110-4417-414-3091. L. REQUEST FOR APPROVAL of Program Supplement Agreement No. 008-N for Congestion Mitigation and Air Quality (CMAQ) Funds Between the City of Palm Desert and the State of California Department of Transportation (Caltrans) for the Traffic Signal System Interconnect Project and Authorize Director of Public Works to Advertise for Bids (Contract No. C29760, Project No. 553-99). Rec: By Minute Motion: 1) Approve Program Supplement Agreement No. 008-N to Administering Agency -State Agreement for Federal -aid Projects No. 08-5414R between the City of Palm Desert and Caltrans; 2) authorize the Mayor to execute same; 3) authorize the Director of Public Works to advertise the project for bids. M. REQUEST FOR ACCEPTANCE OF WORK for Contract No. C29890 — Civic Center Re -roofing Project (Project No. 712-10) (Progressive Roofing, Manteca, 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. 7 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING OCTOBER 13, 2011 N. REQUEST FORACCEPTANCE OF WORKforContract No. C30860— Cook Street Cold -in -place (CIPR) Resurfacing Project (Project No. 752-11) (Matich Corporation, Highland, 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. O. REQUEST FOR ACCEPTANCE OF WORK for Contract No. C30970 — for Vacant Parcel A and Parcel D Lot Pad Stabilization at Desert Willow (Doug Wall Construction, Inc., Bermuda Dunes, 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. P. REQUEST FOR AUTHORIZATION to Release One-year Maintenance Security for Construction of Street Improvements on Monterey Avenue by Atria Senior Living, 44-600 Monterey Avenue (Atria Senior Living Group, Inc., Applicant). Rec: By Minute Motion, authorize release of the One-year Maintenance Security posted by the Atria Senior Living Project. Q. REQUEST FOR AUTHORIZATION to Release Security for Tract Map No. 36335 (Ponderosa Homes II, Applicant). Rec: By Minute Motion, authorize release of security held for Tract Map No. 36335. R. REQUEST FOR APPROVAL of the 2011 Palm Desert Golf Cart Parade on Sunday, October 23, and Sponsorship of the Event. Rec: By Minute Motion: 1) Approve sponsorship in the amount of $25,000 and in -kind Public Works Services for the Palm Desert Golf Cart Parade; 2) authorize the expenditure of funds from Account No. 110-4416-414-3062; 3) permit the sale, possession, and consumption of alcoholic beverages on City -owned property in connection with the event on Sunday, October 23, 2011; 4) authorize El Paseo road closure for the event; 5) waive Section 11.01.140 - Amplified Sound - of the Palm Desert Municipal Code for the event. Upon a motion by Kroonen, second by Finerty, and 5-0 vote of the City Council, the Consent Calendar was approved as presented. PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING OCTOBER 13, 2011 XI. CONSENT ITEMS HELD OVER None XII. RESOLUTIONS None XIII. ORDINANCES A. For Introduction: None B. For Adoption: 1. ORDINANCE NO. 1225A-AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, APPROVING A DEVELOPMENT AGREEMENT FOR AN 82-ROOM HOTEL AND 59-UNIT RESIDENTIAL CONDOMINIUM PROJECT WITH ANCILLARY USES AND AMENITIES ON 4.97± GROSS ACRES OF CURRENTLY VACANT LAND (4.27± ACRES) AND TO -BE -VACATED FRONTAGE ROAD (0.7± ACRES) LOCATED EAST OF HIGHWAY 74, WEST OF OCOTILLO DRIVE, AND SOUTH OF THE IMAGO ART GALLERY —SUBJECT PROPERTYADDRESS KNOWN AS 45-640 HIGHWAY 74, Case No. DA 09-507 (PDH Partners, LLC, Applicant). Principal Planner Tony Bagato stated this was the second reading of the most recent version of the Development Agreement. He offered to answer questions. Mayor Pro Tern Spiegel moved to waive further reading and adopt Ordinance No. 1225A. Motion was seconded by Kroonen and carried by a 3-2 vote with Finerty and Benson voting NO. 2. ORDINANCE NO. 1228 - AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, AMENDING SECTIONS 28.06.020 AND 28.08.030 OF TITLE 28 - FLOOD DAMAGE PREVENTION - OF THE PALM DESERT MUNICIPAL CODE (AMENDING ORDINANCE NO.985) RELATIVE TO THE STATE OF CALIFORNIA DEPARTMENT OF WATER RESOURCES REQUIREMENTS. Mayor Pro Tern Spiegel moved to waive further reading and adopt Ordinance No. 1228. Motion was seconded by Kroonen and carried by a 5-0 vote. �1 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING OCTOBER 13, 2011 XIV. NEW BUSINESS A. REQUEST FOR APPROVAL OF AGREEMENTS AND RELATED ACTIONS WITH THE COUNTY OF RIVERSIDE - RIVERSIDE COUNTY LIBRARY SYSTEM / LSSI FOR LIBRARY SERVICES THROUGH JUNE 30, 2012. Mayor Pro Tern Spiegel asked where will the activities for the library take place when they close for remodeling. Mayor Benson responded the bookmobile will be stationed at the library, and other places are being sought to hold activities like with the summer programs, which were held at the mall and were so successful. Ms. Klassen stated the bookmobile will actually be stationed at the Civic Center. Staff has made special arrangements, including an electrical hookup so it won't be in the way of any construction activity. Mayor Pro Tern Spiegel moved to, by Minute Motion: 1) Approve Contract No. C141610 - Tenth Amendment to Agreement to Provide Library Services (Additional Staff) for the Event and Volunteer Coordinator positions, Part-time Computer Instructor/Lab Technician, Additional Librarians (1-Reference, 1-Young Adult), and Dedicated Receptionist/Library Assistant, covering services through June 30, 2012; 2) Approve Contract No. C18027 - Seventh Amendment to Agreement to Provide Library Services (Additional Hours/Bookmobile) for six additional hours of operation of the Palm Desert Public Library component of the Multi -Agency Library each Thursday and operation of the Bookmobile Service for Palm Desert, covering services through June 30, 2012; 3) Authorize the Mayor to execute said contracts; 4) Authorize issuance of a City Purchase Order, favoring Library Systems & Services, Inc. (LSSI), Germantown, Maryland, in the amount of $35,000 for the purchase of materials FY 2011-2012 — funding for all the above has been approved in the FY 2011-2012 Budget in Account No. 452-4662-454-4001 — no additional appropriations are necessary. Motion was seconded by Kroonen and carried by a 5-0 vote. B. REQUEST FOR AWARD OF CONTRACT TO FORMOST CONSTRUCTION COMPANY IN AN AMOUNT NOT TO EXCEED $136,822 FOR SATELLITE CONTROLLERS FOR THE IRRIGATION SYSTEM AT DESERT WILLOW GOLF RESORT (CONTRACT NO. C31140). Responding to question, Project Coordinator Heather Buck said the funds are coming out of Fund 441. She pointed out this contract was $20,000 below what was budgeted. Mayor Pro Tem Spiegel moved to, by Minute Motion: 1) Authorize award of the subject contract in the amount of $136,822 to Formost Construction Company, Murrieta, California, for the Satellite Controllers for the Irrigation System at Desert Willow; 2) Authorize the Director of Finance to set aside the amount of $13,682.20 as 10% 10 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING OCTOBER 13, 2011 contingency for the project (use of contingency requires additional action); 3) Ratify the agreement with Irrigation Consultant, Fairway Irrigation Design, Palm Desert, California, in an amount not to exceed $11,300 for the engineering design and construction administration associated with the project (Contract No. C31140A); 4) Determine that the existing golf course irrigation system is manufactured by Rain Bird Corporation and, as such, Rain Bird irrigation components must be sole -sourced to be compatible with the existing system; 5) Determine the existing surge arrestors are manufactured by Intermatic, Inc., and, as such, Intermatic surge arrestors must be sole -sourced to be compatible with the existing system; 6) Declare existing irrigation controllers on the Firecliff Course as surplus property and authorize staff to dispose of them — budget for this project was approved as part of the Fiscal Year 2011-2012 Desert Willow Budget with funds available in Account No. 441-4195-495-8092. Motion was seconded by Harnik and carried by a 5-0 vote. C. CONSIDERATION OF FINANCIAL ASSISTANCE TO N & D RESTAURANTS, INC., FOR RED LOBSTER LOCATED AT 72-291 HIGHWAY 111, PALM DESERT (CONTRACT NO. C31260) (N & D Restaurants, Inc., Applicant). Economic Development Manager Ruth Ann Moore stated at the September 29 meeting, the City Council continued the Facade Enhancement Program request by the Red Lobster parent company and directed staff to look for an alternative funding process. She explained that the Facade Enhancement Program (FEP) is a matching grant program where a building owner receives funds from the City to make improvements to a location. The building owner must match or exceed the City's contribution for the renovation. For example, if the City participates with grants of $40,000 in the project, the building owner must also participate with at least $40,000 toward the project. The program is used for structural improvements, but also improvements such as parking lots, landscape, lighting, awnings, patios, etc. She said the FEP helps attract new businesses, and if a business left, the City had an improved location. To date, the FEP has assisted eight local and national restaurants, either directly if they owned the location or indirectly if they are tenants at a location in which a property owner participated in the program. She said before the City Council today is a loan agreement in the amount not to exceed $40,000. Due to the new Storm Water Management Plan, Red Lobster is required to contain water runoff on their property and waterflowing from the surrounding properties as well. This requires the deconstruction of their existing parking lot and then reconstruction of it with the required water retention improvements, of which 80% are attributed to the runoff that is not on their property. The loan covers the estimated cost of the 80% of the drainage and design. The loan is designed with the following parameters: First, the loan can be abated through the collection of sales tax; secondly, it requires an operating covenant of five years. For example, should Red Lobster seize to operate prior to the five years, the full amount of the loan plus interest must be paid to the City no matter how much sales tax had 11 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING OCTOBER 13, 2011 been collected from the business prior to that time. Participation in the FEP offers the City a refurbished location, and participation in the sales tax abatement loan offers the City a continuation of a revenue stream to the General Fund. She offered to answer any questions. Mayor Benson asked if this was a gift of funds. Mr. Erwin answered no. Mayor Benson asked if the City had given away sales tax before. Mr. Erwin answered he didn't believe so. Councilmember Harnik stated staff mentioned $40,000 for the promissory note and $40,000 from the FEP. She asked if the City was expecting the deconstruction of the parking lot for the Storm Water Management Plan to cost $80,000. Ms. Moore responded she was explaining how the FEP worked, which is a matching fund. The item before the Council was a different funding process, which is not a matching one. The estimated cost for the entire project is approximately $48,000 plus soft and hard cost of design. Therefore, 80% of that cost is $40,000. The 80% is attributed to the estimated water runoff draining onto the property, which was 80% more water flowing onto the site than normally would be if it was standing alone. Mr. Wohlmuth stated consideration of FEP funds for this purpose was continued at the last City Council meeting where staff was directed to look at other options; this was one option. The FEP discussion is on the next item for the overall guidance on policy on whether the program should be expanded both in boundaries and uses. He said if the Council approved a loan agreement where it is repaid by a one-year sales tax, then the City would not enter into a FEP. He said it would be either the loan agreement or the FEP. Mayor Benson stated there have been other options where the City has helped with infrastructures, because in the 38 years the City has never given away sales tax, which is what is being considered with this item. She said it would set a precedent for others to come in and ask for sales tax as a rebate. She would just assume having it come out of the General Fund instead of starting something that will continue with others asking for the same. Additionally, she didn't see a reason to start doing it with a company like Darden that had more money than the City. Though this was a matter of an infrastructure where the City has helped in the past, and she had no problem doing so, but she didn't want to start rebating sales tax to private businesses. 12 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING OCTOBER 13, 2011 Mayor Pro Tern Spiegel agreed, but this problem was only the tip of the iceberg, because eventually someone will build a restaurant where the old Coco's was located and they will face the same problem. Mayor Benson said how did the City know they will have a drainage problem as well. She said the City offered $75,000 out of the FEP to Red Lobster without them asking for it, then they did ask for it lowering the amount down to $40,000, and now the Council was considering giving it to them out of the City's sales tax, which she is against. Councilmember Finerty stated the word loan is not even a term everyone was familiar with, because the reality is that if the City was lending $40,000 and would conservatively get back $45,000 in sales tax, the City would only net $5,000. She said she would like to apply for one of those loans anywhere. Additionally, she did a complete research on this, and as much as she'd like to support a Red Lobster coming to Palm Desert, she cannot. She learned that in yesterday's Orlando Sentinel newspaper that it is a Corporate practice of Darden to go into communities where they want to locate a restaurant and ask for money, which has not been met in a positive manner. She believed the City had a commitment to the existing business community. Opponents, according to the article, have questioned why a company that would compete with established restaurants should get tax breaks. She said Executive Director Greg LeRoy a Washington DC -based watchdog group called Good Jobs First didn't know of any other chain seeking community incentives to build restaurants, stating this was a slippery slope issue where others will want the same. Another comment in the article was, "If Darden deserved a break then so did the companies already established who are employing people." She went on to say the Chamber of Commerce CEO John Seymour was quoted as saying, "We think pandoras' box is already open and they had to decide whether they want to bring people to compete with their neighbors." Additionally, she said Florida State University Economic Professor said, "the result will be giving Darden's restaurant a competitive advantage over other restaurants." She said her objection to this item was to the inequity to the rest of Palm Desert's business community. She said Red Lobster is wanting and willing to spend $4 million for the building, and $40,000 was only 1 percent, which they can afford much better than the City of Palm Desert in these uncertain economic times. She spoke to some restaurant owners and asked them specifically how they felt about this, and they are angry as are the other communities where Darden has pulled the same stunt. Mayor Pro Tern Spiegel asked how much was Darden going to pay for the building. Ms. Moore answered $4 million. 13 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING OCTOBER 13, 2011 Mayor Pro Tern Spiegel pointed out the City granted Piero's Pizzavino on El Paseo FEP funds. Councilmember Finerty responded in this case there was no facade to enhance, it was a building that had burned down. Mayor Pro Tern Spiegel noted this item was as a result to the passing of a recent State law, and he would like to see a Red Lobster in Palm Desert. Councilmember Finerty stated she would like to see a Claim Jumper in Palm Desert, but she was not about to give them $40,000 to come here. She said restaurants should be pleased to be here, and the City should not have to buy their way into Palm Desert. Responding to comment about her vote on Piero's request for FEP funds, she said they had an actual facade to enhance. She said the Banana's location burned down and there wasn't anything to enhance; it was comparing apples and oranges. Councilman Kroonen stated it seemed to him the principal, in fairness to the Red Lobster people, is the fact that they are having to pick up the drain water that comes from uphill down to their property, and the other property owners in between are not picking up any of the tab. Ms. Moore concurred. Councilman Kroonen said he was not in disagreement with his colleagues comments, but he would like to explore the other alternatives that Mayor Benson mentioned. He said all would agree they would like to have Red Lobster come to Palm Desert, but how can the City do it without offending the business community and without going against past practice. He asked what were the other alternatives. Mayor Benson stated Redevelopment Funds were used in the past for infrastructure, but they are not available now. However, the City did have a healthy reserve, and if it was going to do anything, it shouldn't decimate the FEP, which was working well. She reiterated that in 38 years the City has never given back sales tax, and to start doing so, will open a flood gate of people saying the City granted variances, give money to developers, and do anything to get business into Palm Desert. She said it was not the same Palm Desert that people have learned to love and like. She said the City was changing drastically and it was noted throughout the community. She said if the City was going to help Red Lobster with a drainage problem, it can be taken out of the General Fund as it has in the past, but she was not in favor of decimating the FEP. Councilmember Finerty stated that even if the City gave $40,000 from the General Fund, everybody else will want the same, because everyone was 14 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING OCTOBER 13, 2011 struggling. She said it was not only restaurants, but also the shoe stores, hotels, etc., and the City cannot be in a position to grant or give out money, because it was a form of a bailout, which everyone has seen by the Federal Bailout, it doesn't work. Councilmember Harnik stated the City has used facade enhancement funds for other uses other than facades like at the El Paseo Village. Ms. Moore agreed. Councilmember Harnik asked if this was an infrastructure issue, because it was dealing with water drainage, and asked who owned the parking lot now that it was dealing with water. Mr. Greenwood confirmed it was an infrastructure issue and the parking lot had multiple owners. Councilmember Harnik said she likens this to when in the late 1970's the City used Redevelopment Funds to redirect water, which made sense, but also understood the City didn't get to use those funds right now. However, she believed this was an infrastructure issue. Mr. Greenwood said without a doubt it was an infrastructure issue. He said the State regulation was actually a reaction to a new Federal regulation. He said this isn't the only location it will happen with and restaurants are of particular concern, because they are automatically required to do a Water Quality Management Plan. He agreed the former Coco's property will have the exact same problem, because it is at the lower end of the site, and it is an issue the City will continue to deal with. Further responding, he said it was particularly a problem to in -fill areas. Up in the north area where there is open land, the developer can build a retention basin, because it has the space. However, in central Palm Desert where it is essentially built out, there is nowhere to store the ground water; therefore, one will end up tearing up parking lots and building a sub -service system. Mayor Benson stated that in this case, Red Lobster learned of the new law after the fact, but in the future, this requirement/regulation will be disclosed before a developer buys the land. She said she didn't mind taking the money out of the General Fund, but certainly didn't want to start a precedent of giving away sales tax. Mayor Pro Tern Spiegel moved to, by Minute Motion, approve a $40,000 contribution to the project for the required infrastructure improvements to be expended from the General Fund. Motion was seconded by Kroonen and carried by a 4-1 vote, with Finerty voting NO. 15 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING OCTOBER 13, 2011 D. REQUEST FOR APPROVAL OF AMENDED FACADE ENHANCEMENT PROGRAM (FEP) GUIDELINES. Project Administrator Bryce Lynn White stated this item is to amend the guidelines of the Facade Enhancement Program (FEP) as it has many times in the past. Staff is recommending restoring the boundaries back to when the program was first implemented, but then was changed in 2004. The amendment specifically includes two other items necessary to address Water Quality Management Plans (WQMP) and sustainability issues. Responding to question, he said the pink shaded area of the map attached to the staff report is the proposed target area to be expanded. Responding to question as to why the adjustment was made in 2004, he said some of the properties where large and difficult to work with for the FEP. However, certain properties in that area are small, so rather than cookie cutting them out, staff decided to include them and then Council can consider them on a case by case basis. Mayor Benson stated it seemed a fund can be figured out for sustainability and energy conservation improvements, because they are not facade enhancement, and again it would be decimating a program that was intended to fix up old buildings around town, which there are still many along Highway 111. She said if the City was intending to assist with sustainability and energy improvements, perhaps a certain amount can be put in a pot and work it the same way as the FEP, but make it a program specifically for its purpose. Mr. White agreed, but in this case it would be part of what they will be doing. He said the City is not intending to provide facade dollars. Mayor Benson stated sustainability and energy conservation improvements should have their own funding accounts. Mayor Pro Tern Spiegel noted he and Ms. Moore started the FEP. Mayor Benson said it was a successful program, and it had a long way to go yet, but she was against adding things to it. Councilmember Harnik asked how were facade enhancement dollars used at the El Paseo Village. Mr. White explained the money was to encourage them to get LEED Certified, primarily hoping for Gold Certification on that project, and also to install solar panels for the common areas. In exchange, the City received a public parking easement for the parking to be free to the public, which is similar to what is in existence at The Gardens. 16 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING OCTOBER 13, 2011 Councilmember Harnik agreed energy conservation and facade enhancement were important and wondered if they should be separate funds or would it make sense to make it something that is driving the business community as an economic or business development or business enhancement program, because Palm Desert had to remain competitive in the Valley. She asked if these were things that would help the City if it had a fund to do it with. Councilmember Finerty noted the City was allowed to lend to commercial, which was one of the areas it was going to focus. She questioned why wouldn't a company or business come to the City and apply for an Energy Independence Loan for sustainability and energy conservation improvements. Mr. Wohlmuth answered they could and the City would want to see those types of applications come to the Energy Independence Program (EIP), but Councilmember Harnik's question was relating to the El Paseo Village where the Council directed staff to use the FEP. Mayor Pro Tern Spiegel stated the City has helped businesses over the years, stating The Gardens on El Paseo would not have been built without the City contributing $5 million into a parking structure; it will always be free parking, because it was owned by the City, but they maintained it. When Westfield went through their major remodel, the City gave them $10 million for their parking structure, which he believed were the right moves. Mayor Benson concurred. Councilmember Finerty pointed out that was done with Redevelopment Funds. Councilman Kroonen stated perhaps the problem was calling it Facade Improvement, because by example now, there are other kinds of projects that are not specifically facade improvements. He asked if the title can simply be enlarged. Councilmember Harnik agreed, because it would feel better. She said if the City was using FEP funds to install solar like it did at the El Paseo Village, and it isn't facade, it should be called what it is. She said it could be called business development or enhancement, or whatever the case may be, because certainly the City wants these businesses to fit in with the Palm Desert brand, which is facade, energy conservation, and WQMP as well. Councilman Kroonen stated the Council was talking about facility improvements and not just facade. 17 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING OCTOBER 13, 2011 Mayor Pro Tern Spiegel suggested continuing this item and have it brought back to the Council to talk about what it will be doing. Mayor Benson suggested looking for a new name and what will be in the program, and how much will be allocated. Mayor Pro Tern Spiegel noted the Council will know in January whether Redevelopment will continue, which will make a big difference as well. Mayor Pro Tern Spiegel moved to, by Minute Motion, continue to a date uncertain. Motion was seconded by Kroonen and carried by a 5-0 vote. XV. CONTINUED BUSINESS A. REQUEST FOR APPROVAL OF $75,000 IN FACADE ENHANCEMENT PROGRAM (FEP) CONSIDERATION FUNDS TO DARDEN RESTAURANTS, INC., FOR THE RED LOBSTER RESTAURANT TO BE LOCATED AT 72-291 HIGHWAY 111 (Darden Restaurants, Inc., Applicant) (Continued from the meeting of September 29, 2011). Ms. Klassen stated since the Council continued this item to this meeting, she asked the Council to make a motion to remove it from the agenda, which made it clear for record keeping purposes. Councilmember Harnik moved to, by Minute Motion, remove this item from the agenda. Motion was seconded by Kroonen and carried by a 5-0 vote. XVI. OLD BUSINESS None XVII. PUBLIC HEARINGS None XVIII. REPORTS AND REMARKS A. CITY MANAGER City Manager Meeting Summaries for the Period of September 21 - October 4, 2011. With City Council concurrence, the City Manager Meeting Summaries forthe Period of September 21 - October 4, 2011, was received and filed. `R] PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING OCTOBER 13, 2011 2. "Proceed With Caution" Swimmer Girl Bronze Statue Mr. Wohlmuth distributed a photo of the sculpture to Councilmembers, which was an approximately four -foot high pig -tailed young girl with swim attire and "floaties" going into the ocean. It had been in the Council Chamber foyer for many years, after, to the best of everyone's recollection, being purchased originally to go with an interactive fountain that would have been sited in Civic Center Park. That fountain was never installed, but the sculpture was placed in the Council Chamber foyer. He'd directed staff to place it out at the new Aquatic Center and was installed there today, where it goes very well. Councilmembers concurred. 3. Portola Avenue Aesthetic Project Mr. Wohlmuth recalled forCity Council thatduring budget discussions there was a Capital Improvement Program Project listed that would improve the sidewalk, underground the utilities, and provide a uniform wall on the east side of Portola Avenue between Fred Waring Drive and Desert Star. The project had $900,000 of Redevelopment funds budgeted for it, which is still an important one because of the components involved. At this point, staff will complete the design but, unfortunately, cannot proceed further with steps for construction until a decision on Redevelopment occurs in approximately January 2012. It was hoped that not only would Redevelopment still exist then, but the ability to fund this project would as well. 4. Council Meeting A-V Improvements and Meetings Broadcasts Mr. Wohlmuth reported that staff and the contractor continued to proceed and were nearing completion with the audio-visual system improvements in the Council Chamber. He said the video system is working and being tested internally; it's not yet available on the City's website but will be soon — possibly a web -stream test available on the Internet by next meeting, with a couple of cameras and related components yet to be finished before that occurs. Further, he recalled for Council at the last meeting a request made to have both the agenda and staff reports available electronically on the web. On Tuesday this week, he'd met with Mr. Gibson, Information Systems Manager Clay von Helf, and Ms. Klassen where he asked how staff reports could be added to the agenda posting that's been available on the website for a number of years. This morning they demonstrated today's City Council -Redevelopment Agencyagendas; 19 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING OCTOBER 13, 2011 they will be formatted slightly differently and include the agenda titles only without staff recommendation, as that will be provided with the hyperlinked staff report. He said staff will continue to test the application, and it will be available publicly in the near future. He noted that it is a little more work for the City Clerk's Office and thanked her office for that effort, but it will result in being able to see both the Posted Agendas and an Agenda with hyperlinked staff reports. B. CITY ATTORNEY None C. CITY CLERK None D. PUBLIC SAFETY 1. Fire Department None 2. Police Department None E. MAYOR AND MEMBERS OF THE CITY COUNCIL 1. City Council Requests for Action: None 2. City Council Consideration of Travel Requests and Reports: None 3. City Council Committee Reports: a) Energy Committee — Councilmember Finerty referred to a copy of an article that all Councilmembers received on their desks. She found it very interesting and was very proud of the City's Energy Program being touted in the article, which she quoted "...the Partnership's 'Set to Save' Rebate Program and the City's groundbreaking Energy Independence Loan Program are among the reasons why The Wall Street Journal has 20 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING OCTOBER 13, 2011 profiled Palm Desert as one of the nine top cities in the world on the leading edge of energy efficiency." She felt that was quite an honor for the City. b) Riverside County Transportation Commission — Councilmember Harnik reported that she attended RCTC yesterday, and she wanted to share with her colleagues that Dick Kelly's name was alive and well there. She said they had so much to share not only about what he did for Palm Desert and the Coachella Valley, but also for Riverside County. She said they speak of him glowingly — although, occasionally the word "ornery" is associated with his name — but mostly the comments were about how innovative he was and what an asset he'd been to the whole County. She added that she would be sharing this with Mary Helen Kelly as well. 4. City Council Comments: a) Palm Springs Art Museum — Mayor Pro Tern Spiegel referred to a copy of a letter Mr. Wohlmuth provided Councilmembers from the Palm Springs Art Museum, which requested $85,000 to correct problems they were having with the City's building. He went on to say Mr. Wohlmuth's letter of response indicated that the City had set aside $20,000 to take care of anything that came up with the Museum moving into the former Visitor Center. He asked if the matter had been resolved. Mr. Wohlmuth responded that he has a meeting with the Palm Springs Art Museum Executive Director tomorrow at 9:00 a.m. to discuss this issue, and he will let City Council know the outcome. b) Coachella Valley Water District — Councilmember Harnik said she'd participated in CVWD's tour, and it was a tremendous asset to have Board Member Corky Larson along as well. She learned a lot about what was being done, which was beneficial -- especially after today's earlier discussion about infrastructure and water — reclamation, reservoirs, and CVW D's wells. c) Fashion Week 2012 — Councilmember Harnik was pleased to see that another sponsor had signed on for Fashion Week (Integrated Wealth Management). She felt they were an important addition to come in with a lot of support. 21 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING OCTOBER 13, 2011 d) "Cuss Free Day/Week" — Councilmember Harnik commented on some of the letters she'd seen where people took offense to the City's proclamation of "Cuss Free Week" in Palm Desert. She found that hard to believe but felt that whatever the City and Mayor could do to support students and youth in conducting themselves at a higher level of behavior was worth doing, and she thanked the Mayor for making this pronouncement. 5. Suggested Items for Future City Council Meeting Agendas None XIX. ADJOURNMENT On a motion by Spiegel, second by Kroonen, and unanimous vote of the City Council, Mayor Benson adjourned the meeting at 4:58 p.m. ATTEST: RACHELLE D. KLASSEN, CITY CLERK CITY OF PALM DESERT, CALIFORNIA JEAN M. BENSON, MAYOR 22