Loading...
HomeMy WebLinkAboutPreliminary Minutes - City Council - July 12, 2012DRAFT i1 /T PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING THURSDAY, JULY 12, 2012 CIVIC CENTER COUNCIL CHAMBER 73510 FRED WARING DRIVE, PALM DESERT, CA 92260 I. CALL TO ORDER - 3:00 P.M. Mayor Spiegel convened the meeting at 3:00 p.m. II. ROLL CALL Present: Councilmember Jean M. Benson Councilmember Cindy Finerty Councilmember Jan C. Harnik Mayor Pro Tern William R. Kroonen Mayor Robert A. Spiegel Also Present: John M. Wohlmuth, City Manager David J. Erwin, City Attorney Rachelle D. Klassen, City Clerk Russell Grance, Director of Building & Safety Lauri Aylaian, Director of Community Development Martin Alvarez, Director of Economic Development Janet M. Moore, Director of Housing Mark Greenwood, Director of Public Works Frankie Riddle, Director of Special Programs J. Luis Espinoza, Assistant Finance Director Stephen Y. Aryan, Risk Manager Bill Hunley, Div. Chief, Palm Desert Fire/Riverside Co. Fire Dept./Cal Fire Bill Sullivan, Asst. Chief, 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 JULY 12, 2012 A. Conference with Real Property Negotiator pursuant to Government Code Section 54956.8: 1) Property: 43-705 Kelsey Court (APN 634-241-037), Palm Desert Negotiating Parties: Agency: John M. Wohlmuth/Janet M. Moore/City of Palm Desert/ Successor Agency to the Palm Desert Redevelopment Agency/Palm Desert Housing Authority Property Owner: Terri L. McIntyre Under Negotiation: x Price x Terms of Payment 2) Property: 42-128 Verdin Lane (APN 624-440-003), Palm Desert Negotiating Parties: Agency: John M. Wohlmuth/Janet M. Moore/City of Palm Desert/ Successor Agency to the Palm Desert Redevelopment Agency/Palm Desert Housing Authority Property Owner: Justin and Patricia Mansker Under Negotiation: x Price x Terms of Payment 3) Property: 13,120 Square -foot Portion of Highway 74 Frontage Road Right-of-way Adjacent to the El Paseo Collection South (APN 627-231-017) Negotiating Parties: Agency: John M. Wohlmuth/Lauri Aylaian/City of Palm Desert Property Owner: City of Palm Desert Under Negotiation: x Price x Terms of Payment B. Conference with Legal Counsel regarding significant exposure to litigation pursuant to Government Code Section 54956.9(b): Number of potential cases: 2 On a motion by Kroonen, second by Finerty, and 5-0 vote of the City Council, Mayor Spiegel adjourned the meeting to Closed Session at 3:01 p.m. He reconvened the meeting at 4:00 p.m. V. RECONVENE REGULAR MEETING - 4:00 P.M. A. REPORT ON ACTION FROM CLOSED SESSION. None VI. PLEDGE OF ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA - Councilmember Jean M. Benson VII. INVOCATION - Councilmember Cindy Finerty 2 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING JULY 12, 2012 Vill. ORAL COMMUNICATIONS - B A. PRESENTATION OF ANIMAL ADOPTION FEATURE. MR. FRED SAUNDERS, representing Animal Samaritans, presented "Sheila," a nine -month -old female Chihuahua, who was spayed, vaccinated, and ready to be adopted by a loving family at their facility. He believed she would make someone a very pleasing companion, and anyone interested was encouraged to talk to him here or to call their office at (760) 343-3477. B. GENERAL ORAL COMMUNICATIONS. 1. MR. ED BROCK, Feather Trail, Palm Desert, addressed the City Council to say he was a retiree who followed the City's business closely now that he had time to do so. He recently saw articles about Council salaries, which is something being addressed by other cities as well. He noticed in the article that the Mayor was quoted assaying his salary was just right, but he felt that was a fairy tale. He went on to say that in an article this week it said there was a big increase in City fees, especially those for building. In turn, he asked what steps the City was taking to stimulate some development in the desert. As a home builder for 50 years himself, he said increased fees would only be passed on to the buyer; it would continue to price builders out of the market when they were already struggling. He felt the City was going in the wrong direction. Mayor Spiegel thanked Mr. Brock for his comments and said someone from City staff would contact him about this issue. 2. MS. JANICE HOLMLUND, Rancho Mirage, CA, stated that in 1992 Ed Mullins and Rheo Lawman asked if she would come to Palm Desert and help them re-establish the Historical Society. There were about 20 members at that time; and it was terribly vandalized. Within three or four years, hard-working people on that board were able to return the Society to an active group, and they were able to develop what the City has enjoyed for 20 years — an absence of fires in the community started by children, which she attributed to initiation of the "Mini -Muster" Program. She said the City has a very valid volunteer agency that is now taking care of one of its assets, the Historic Fire House. Today she wanted to call attention to the Desert Magazine Building, the first commercial building here, constructed by a well-known architect, and it gave Palm Desert legality. She said because of the membership of people belonging to the Desert Magazine itself, Palm Desert was entitled to a post office, and Federal recognition gave the community the necessary legality it 3 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING JULY 12, 2012 needed to develop into a city. She went on to say that the Desert Magazine Building has been in danger for the past 20 years, and the City Council hasn't taken much positive action toward it. She stated that at one time the building was located in a particularly important setting but has since been cut off to some degree. However, that building and the site would make a fine tribute to the City's founders, the Henderson Brothers, who were responsible for that building as well as the Fire House, first Library, even part of the desert mountain parks that are enjoyed so much. She felt nothing has ever been done to recognize the Hendersons' founding of the City, but the Desert Magazine Building would provide such substantial recognition. She added that the site it's in right now would be perfect for a small, urban, pocket park — that are very valuable throughout the United States — and it could utilize local -growing flora. She thought that a number of people would be very interested in using the site if the City did such a project. On Tuesday this week she spoke to the Architectural Review Commission on this matter; they approved some radical changes to the north front of the Desert Magazine Building. She said the building's owner, Mr. Rasmussen, needs to rent the property, but there are no guarantees that he will. She came forward today because she's very concerned about the building and wanted it to survive, as it is the most historic structure in the City. She urged the City Council to put together a group of people to work with Mr. Rasmussen, whom she felt had worked very hard and understood the history with the Hendersons. She asked that this matter be agendized for a workshop with the aforementioned group, possibly also including local University representatives, the Historical Society, and other local interested groups to see if something can be done with that building, because it was really important to the City. After the proposed and accepted changes are made to its north face, she guaranteed that Desert Magazine Building would no longer be eligible for historic listing with these radical changes. She said it was an elegant Pueblo building, noting this style was created in California — not in Santa Fe or in New Mexico — and the building should be treasured. She hoped the City Council could come together with people in the community to save it. 3. MR. RICHARD SCHLEIN, Diamondback Drive, Palm Desert, said his water heater broke on Tuesday this week, and he went to Lowe's to get a new one. His options were to install it himself or have them do it for $269, and he happily agreed to pay for their installation. Apparently, however, there is a new fee of $192 to inspect installation of his new water heater, which shocked him. He came to the meeting today to complain about what he felt was an exorbitant fee. He asked Lowe's about comparable fees in the other local cities, which are: 1) La Quinta - $22.00; 2) Indio - $27.00; 3) Cathedral City - $33.50; 0 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING JULY 12, 2012 4) Palm Springs - $55.00; 5) Rancho Mirage - $91.00; 6) Desert Hot Springs - $136.00 (which was surprising). He said median fee in the Coachella Valley is $44.25; average fee is $60.75, and Palm Desert's is $192.00. He was angry, wanted to register his displeasure at this fee, and ask City Council to revisit, reduce it, and rebate those who've paid it. He understood it only went into effect within the last two weeks. Mayor Spiegel thanked Mr. Schlein for his comments and said someone from the City would be in touch with him. IX. AWARDS, PRESENTATIONS, AND APPOINTMENTS None X. CONSENT CALENDAR A. MINUTES of the Regular City Council Meeting of June 28, 2012. Rec: Approve as presented. B. CLAIMS AND DEMANDS AGAINST THE CITY TREASURY - Warrant Nos. 283, 288, 291, 295, 297, and 301. Rec: Approve as presented. C. APPLICATION FOR ALCOHOLIC BEVERAGE LICENSE by First-Com Vintner, 74-199 El Paseo Drive, Suite #101, Palm Desert. Rec: Receive and file. D. CONSIDERATION of Request for the Return of Fees Paid Regarding a Denial of Conditional Use Permit No. 11-244 to Operate a Short-term Rental Located at 44-600 San Jose Avenue (APN 627-164-005) (Alan and Susan Parker, Applicants). Rec: By Minute Motion, approve the Applicant's request for reimbursement of fees paid for review of a Short-term Rental Conditional Use Permit (CUP) Application and Appeal 5 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING JULY 12, 2012 E. REQUEST FOR AWARD OF CONTRACT to MRC Engineering, Inc., in an Amount Not to Exceed $41,500 Plus Reimbursable Expenses for Professional Engineering Services Civic Center Sheriff Substation HVAC Upgrades (Contract No. C32000). Rec: By Minute Motion: 1) Authorize award of the subject contract for Professional Engineering Services - Civic Center Sheriff Substation HVAC Upgrade Project to MRC Engineering, Inc., Palm Desert, California, in the amount of $41,500 plus an additional amount not to exceed $1,200 for reimbursable expenses; 2) authorize the Director of Finance to set aside the amount of $4,150 as 10% contingency for the project (use of contingency requires additional action); 3) waive competitive bidding requirements and select local engineer from Approved Consultants List; 4) declare existing HVAC equipment as surplus and authorize staff to dispose of it — funds are available in Account No. 450-4161-415-4001. F. REQUEST FOR APPROVAL of Amendment No. 4 and Amendment No. 5 to Contract with Delta Dental for Employee Dental Benefits (Contract No. C27650). Rec: By Minute Motion, authorize approval of the following Amendments to the subject contract with Delta Dental, respectively, and the Mayor to execute same for: 1) Voluntary enrollment of part-time employees; 2) one-year renewal through June 30, 2013 — no increase in cost per employee — funds are available in the FY 2012-2013 Budget. G. REQUEST FOR APPROVAL of Mills Act Contract for Shadow Mountain Golf Club (Contract No. C32010). Rec: By Minute Motion, approve Mills Act Contract for the Shadow Mountain Golf Club, Palm Desert, reaffirming recommendation of the Cultural Resources Preservation Committee, in accordance with Section 29.70.030 of the Palm Desert Municipal Code. H. REQUEST FOR APPROVAL of Out -of -State Travel for Landscape Manager to Attend an International Society of Arboriculture (ISA) West Coast Chapter Board and Conference Planning Meeting in Las Vegas, Nevada, on July 13, 2012. Rec: By Minute Motion, approve of the subject out-of-state travel for Landscape Manager to attend an ISA West Coast Chapter Board and Conference Planning Meeting in Las Vegas, Nevada, on July 13, 2012 — no fiscal impact beyond one work day from the Landscape Manager to attend the meeting. PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING JULY 12, 2012 INFORMATIONAL REPORT Related to Ongoing Capital Improvement Projects at the Palm Desert Aquatic Center. Rec: Receive and file. Upon a motion by Kroonen, second by Finerty, and 5-0 vote of the City Council, the Consent Calendar was approved as presented. XI. CONSENT ITEMS HELD OVER XII. RESOLUTIONS A. RESOLUTION NO. 2012 - 54 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, ACTING FOR ITSELF AND AS THE LEGISLATIVE BODY OF CITY OF PALM DESERT COMMUNITY FACILITIES DISTRICT NO. 2005-1 (UNIVERSITY PARK), APPROVING AND AUTHORIZING THE EXECUTION AND DELIVERY OF A SECOND SUPPLEMENTAL INDENTURE WITH RESPECT TO THE DISTRICT'S SPECIAL TAX BONDS. Mr. Espinoza noted Legal Counsel was present to answer any questions. MS. DIANA CHUANG, Representative from Richards, Watson & Gershon, stated University Park Community Facilities District No. 2005-1 (CFD) has been around for a while. At the time the District was formed in 2005, the County distributed the tax levies reflecting actual collections. If there were delinquencies in property owners paying their taxes, that delinquency would be passed onto the CFD. Since that time, the County has elected to include the CFD along with the special taxes, which is called the Teeter Plan (i.e., Alternative Method of Distribution of Tax Levies and Collections and of Tax Sale Proceeds). Now that the CFD is in the Teeter Plan, it receives 100% of the special tax levy each year, regardless of actual delinquencies. The County benefits from this plan on the back end, because when they go to foreclose on a property, they will get all the delinquent interest and penalties. The point of the supplemental indenture would be to add some flexibility for the CFD. Currently, based upon the status at the time the District was formed, it was obligated to commence foreclosure on properties that are delinquent at certain thresholds of the special taxes of each year by October 1. Of course, if the CFD is getting 100% of the special tax levies, there is no need to commence foreclosure. Wells Fargo Bank, the Trustee forthe bondholders agreed to this provision because it didn't require consent of bondholders, and it won't hurt them under the Teeter Plan. The District will be receiving 100% of the special tax levy each year, which goes to pay 7 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING JULY 12, 2012 the principal and interest on the bonds. She offered to answer any questions. Councilmember Finerty moved to waive further reading and adopt Resolution No. 2012 - 54. Motion was seconded by Kroonen and carried by a 5-0 vote. XIII. ORDINANCES A. For Introduction: None B. For Adoption: XIV. NEW BUSINESS A. REQUEST FOR AWARD OF CONTRACT TO MATICH CORPORATION, INC., IN THE AMOUNT OF $3,109,000 FOR CONSTRUCTION OF THE HIGHWAY 111 RESURFACING PROJECT (CONTRACT NO. C31810, PROJECT NO. 752-13). Mr. Greenwood stated this contract was the bulk of the City's annual resurfacing project, which will pave the entire length of Highway 111 within City limits. Responding to question, he said if the contract was awarded this evening, the contractor had 30 days to execute the agreement, and work can begin mid August and complete by mid October. He said traffic will be impacted with one or two lanes closed, but one will be able to drive on Highway 111 at all times. Councilmember Finerty moved to, by Minute Motion: 1) Waive bid irregularity; 2) award subject contract for Construction of the Highway 111 Resurfacing Project to Matich Corporation, Inc., Highland, California, in the amount of $3,109,000; 3) authorize Director of Finance to set aside a 10% contingency for the project in the amount of $310,900; 4) authorize the Mayor to execute the contract — funds are available in the Recycling Fund Street Maintenance Account No. 236-4311-433-3320, the Measure "A" Street Maintenance Account No. 213-4311-433-3320, and the Gas Tax Fund Street Maintenance and Prop 1 B Account Nos. 211-4311-433-3320 and 211-4311-433-3916. Motion was seconded by Kroonen and carried by a 5-0 vote. N PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING JULY 12, 2012 B. REQUEST FOR AUTHORIZATION FOR DIRECTOR OF PUBLIC WORKS TO APPLY FOR A HIGHWAY SAFETY IMPROVEMENT PROGRAM (HSIP)-FUNDED GRANT TO INSTALL SAFETY LIGHTING AT TWO INTERSECTIONS: PORTOLA AVENUE/DINAH SHORE DRIVE AND SAN PABLO AVENUE/SAN GORGONIO WAY. Mr. Greenwood stated this request involved two intersections that have nighttime collision histories that staff would like to address. He said San Pablo Avenue and San Gorgonia Way is a four-way stop just south of City Hall, and Portola Avenue and Dinah Shore Drive is in the north end of the City. This grant is a 90% reimbursement agreement for highway safety; the City's total cost will be about $12,500 if the City is reimbursed by the Federal. Councilmember Harnik moved to, by Minute Motion, authorize the Director of Public Works to apply for an HSPI Grant to install safety lighting at two intersections: Portola Avenue/Dinah Shore Drive and San Pablo Avenue/San Gorgonio Way —funds are available in Account No. 234-4276-422-4001 - Traffic Signal Public Safety Fund - no General Fund money will be used for this expenditure. Motion was seconded by Kroonen and carried by a 5-0 vote. C. REQUEST FOR AUTHORIZATION TO SUSPEND PERMIT FEES FOR ENERGY -EFFICIENT POOL PUMP REPLACEMENTS UNDER THE "SET TO SAVE" PROGRAM UNTIL DECEMBER 31, 2012. Mr. Alvarez stated the City reinstated the permit fees on energy efficiency items that staff had been working on throughout the years. Staff is requesting to suspend the Pool Pump Permit Fee in order to move forward and complete the pilot program under the "Set To Save," which changes out pool pumps with energy -efficient pool pumps. Responding to question, he said this request did not affect water heaters. Mayor Pro Tern Kroonen moved to, by Minute Motion, authorize the City Manager to waive permit fees for Energy -efficient Pool Pump Replacements under the existing "Set To Save" Program through December 31, 2012. Motion was seconded by Finerty. Mr. Wohlmuth pointed out that staff was requesting to waive the fee and not the permit. People changing out their pool pumps will still have to obtain a permit, but won't pay the fee. Mayor Spiegel called for the vote, and the motion carried on a 5-0 vote. 9 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING JULY 12, 2012 D. REQUEST FOR AWARD OF CONTRACT TO OFF MADISON AVE FOR DIGITAL MARKETING AND PUBLIC RELATIONS SERVICES - FISCAL YEAR 2012-2013 (CONTRACT NO. C32020). Tourism and Marketing Manager Donna Gomez noted the staff report and offered to answer any questions. Councilmember Finerty moved to, by Minute Motion: 1) Concur with the recommendation of the Marketing Committee and award the subject contract to Off Madison Ave (OMA), Phoenix, Arizona, in the amount of $87,000 for digital marketing and public relations services; 2) authorize the Mayor to execute said contract on behalf of the City— funds are available in Account No. 110-4417-414-3090. Motion was seconded by Kroonen and carried by a 5-0 vote. E. REQUEST FOR APPROVAL OF THE IMPLEMENTATION OF LANDMARK'S VISITOR CENTER RETAIL AND MERCHANDISING RECOMMENDATIONS AND AUTHORIZATION FOR STAFF TO PROCEED WITH OBTAINING BIDS FOR RETAIL DISPLAYS. Councilmember Finerty asked where would the funds come from if staff received approval to obtain bids for the retail displays. Tourism and Marketing Manager Donna Gomez responded there was currently $10,000 in the Visitor Center Budget for Capital Equipment, and if it went over that amount, staff will return to the City Council for additional funding, which would have to come from the General Fund. Councilmember Harnik stated she was impressed with Landmark's report and equally impressed by the comments and corrections made by staff. She was pleased staff was trying to incorporate the ad campaign "Feel the Warmth" into the Visitor Center itself. Councilmember Finerty moved to, by Minute Motion: 1) Support implementation of Landmark's Retail and Merchandising Recommendations for the Palm Desert Visitor Center; 2) authorize staff to proceed with obtaining bids for retail displays. Motion was seconded by Kroonen and carried by a 5-0 vote. 10 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING JULY 12, 2012 F. REQUEST FOR APPROVAL OF PURCHASE AGREEMENT BETWEEN THE CITY OF PALM DESERT AND CLUB CAR, INC. (ELECTRIC CAR DISTRIBUTORS), IN THE AMOUNT OF $74,030.47 FOR THREE (3) NEIGHBORHOOD ELECTRIC VEHICLES FOR THE EL PASEO COURTESY CART PROGRAM (CONTRACT NO. C32030). Economic Development Manager Ruth Ann Moore stated this purchase of courtesy carts will replace the existing ones. She said the carts have been running so long that the odometers no longer worked. Responding to question about what will be done with the old carts, she said the City will get a $1,400 trade-in for each one, and there are three carts. Mayor Pro Tern Kroonen moved to, by Minute Motion: 1) Approve the purchase of three (3) neighborhood electric vehicles for the El Paseo Courtesy Cart Program in the amount of $74,030.47 (includes tax and freight) from Club Car, Inc./ Electric Car Distributors, Rancho Mirage, California; 2) declare the three (3) existing Courtesy Cart vehicles as surplus to be used for trade-ins toward the purchase; 3) authorize a 30% down payment to Electric Car Distributors; 4) appropriate $75,000 to Capital Outlays/Vehicles - Account No. 530-4195-415-4030; 5) authorize the reimbursement of Capital Outlays Auto/Vehicles Account No. 530-4195-415-4030 from Trust - Parking Authority Account No. 610-0000-228-0900 to pay for the carts; 6) authorize the City Manager to accept the bid quotes for the purchase — with the aforementioned action to reimburse Capital Outlays Auto/Vehicles Account from Trust - Parking Authority Account, funds will be available to purchase the carts. Motion was seconded by Finerty and carried by a 5-0 vote. G. REQUEST FOR AUTHORIZATION OF A ONE-YEAR CONTRACT EXTENSION WITH RITE RATE, INC. (FORMERLY RITE RATE BUSINESS SOLUTIONS), FOR OPERATION OF THE EL PASEO COURTESY CART SERVICE (CONTRACT NO. R29972). Economic Development Manager Ruth Ann Moore stated this contract is for the operations of the new courtesy carts. The program will now begin on November 9 for seven days a week. Staff worked out the program with the El Paseo Association, and they are assisting financially as well. Councilmember Finerty moved to, by Minute Motion: 1) Authorize a one-year contract extension with Rite Rate, Inc., Palm Desert, California (formerly Rite Rate Business Solutions), in the amount of $85,700 for operation ($80,700 for scheduled hours and $5,000 for operating during special events) of the El Paseo Courtesy Cart Service commencing November 9, 2012, through May 12, 2013; 2) authorize the reimbursement of $5,000 from El Paseo Business Improvement District Account No. 271-4491-464-3215 to Courtesy Cart Account No. 110-4416-414-3681 as contribution toward operations; 3) authorize the Mayor to execute said contract — funds in the amount of $85,700 are available in Courtesy Carts Account No. 110-4416-414-3681. Motion was seconded by Benson and carried by a 5-0 vote. 11 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING JULY 12, 2012 H. REQUEST FOR APPROVAL OF A PROPOSAL BY DEKRA-LITE INDUSTRIES, INC., TO PURCHASE ADDITIONAL HOLIDAY DECORAND TO REFURBISH, INSTALL, REMOVE, MAINTAIN, CLEAN, PACKAGE, AND STORE THE CITY OF PALM DESERT'S HOLIDAY LIGHTING AND DECORATIONS PER CONTRACT NO. C28120. Mr. Aryan stated this item was concerning a refurbishment of the City's existing holiday decor program. He noted the staff report indicated that three deciduous trees would be lighted with the new decor element called "Snowfall." However, there are actually two trees remaining in the median in front of The Gardens on El Paseo, and the price given in the staff report reflected the reduction from three trees to two being lighted with that element. MS. TERRY WOOD, Easy Street, Palm Desert, stated the information in the staff report concerned her, and she wanted to know if other companies were asked to bid. She knew the City had used this vendor for a couple of years, but she wanted the City to get the best deal. She noted the labor alone for the installation, removal, and storage was $48,000. She understood the City wanted El Paseo and surrounding areas to look its best to attract the locals and tourist to raise revenue, but wondered if bids were sought from locals in the community who operated their business in Palm Desert instead of a company in Santa Ana. Mr. Aryan pointed out this item was for a refurbishment of the existing decor inventory. The whole Holiday Program was put out to bid three years ago where competitive bids were sought, and staff went through an approval and review process. The reason this vendor was selected for the refurbishment, is because the equipment was purchased from them. To go out to bid for the entire holiday program at this time would be cost prohibitive, because the current program is only three years old. The previous holiday program was purchased in 1996, which lasted about 12 years. Therefore, he suspected it would be another five or seven years before going out to bid for a whole new holiday program. MS. TERRY WOOD asked if this item can be placed on hold for two weeks to see if anybody in the local vicinity would like to do this, because it seemed three years ago was a long time. She said Holiday Lighting Design Company and Seasonal Decor were both in Palm Desert, and they did a lot of the hotels. She has spoken to the hotels, and they are very happy with them. She said the holiday lighting was okay, but felt a better job could be done, and she would like to see some competitive bids. 12 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING JULY 12, 2012 MR. DAVID MEDINA, Dekra-Lite Industries Representative, thanked the City Council for its support over the years. He pointed out they were in the fifth year of a five-year contract and presumed it would go out to bid next year. Mayor Spiegel stated it appeared this contract will go out to bid next year, but at this time one was already in place. Mr. Aryan stated that if the City did go out to bid next year that it is for the maintenance, storage, and installation, but notforthe complete overhaul and inventory, because it was quite costly. Mayor Spiegel said the inventory will remain the same. Councilmember Benson moved to, by Minute Motion:1) Approve proposal by Dekra- Lite Industries, Inc., Santa Ana, California, in the amount of $48,264 for the annual installation, removal, maintenance, cleaning, and storage of Palm Desert's Holiday Lighting and Decorations per the subject contract; 2) approve proposal by Dekra-Lite Industries, Inc., in the amount of $17,936.53 for the one-time refurbishment of existing decor and purchase of new decor items; 3) appropriate $1,410 from the Unobligated General Fund into Account No. 110-4310-433-3910 for the Holiday Decor Program's annual cost for installation, removal, maintenance, cleaning, and packaging of equipment; 4) appropriate $17,936.53 from the Unobligated General Fund into Account No. 110-4300-413-4040 for the refurbishment of existing holiday decor and purchase of new decor items; 5) authorize the City Manager to execute all contract documents associated with this proposal and subject contract. Motion was seconded by Kroonen and carried by a 5-0 vote. I. CONSIDERATION OF REQUEST FOR FUNDING TO SPONSOR FASHION WEEK EL PASEO AND FOOD & WINE FESTIVAL PALM DESERT 2013 - 2015. Economic Development Manager Ruth Ann Moore stated the City Council had received a recap pamphlet of both Fashion Week El Paseo and Food & Wine Festival. For the benefit of the audience, she highlighted the following: 1) Attendance was 13,875, which was an increase of 17.1 % more than 2011. She said 30% of that attendance was attributable to people out of the Coachella Valley; 2) Saks Fifth Avenue and 17 merchants were featured in evening fashion shows; 3) Local charities received more than $103,000 as a result of the Fashion Week activities; 4) In-store events were held during the week by 79 merchants; 5) The value of the media and marketing coverage totaled $1.8 million in press releases that went to 500 local/regional outlets and $26,000 to out -of -market outlets with a total of 2.6 million impressions for the event; 6) Fashion Week was picked up and featured by more than 619 websites that come from 105 countries throughout the world. Staff recommended sponsorship for three years at 13 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING JULY 12, 2012 $75,000 each year. She noted Mr. Michael Mathews with Palm Springs Life was present to speak on the matter. MR. MICHAEL MATHEWS, Community Relations & Events Directorfor Palm Springs Life, stated their requestwas different from the Marketing Committee based on the following reasons: 1) Fashion Week and Food & Wine Festival have grown dramatically since it started; Fashion Week started seven years ago and Food & Wine two years ago. This year they were able to expand the facility from one tent to two, which allowed the capacity to move from 650 to 900 people; 2) One of the goals is to attract more tourist into the City, although, they knew it was already happening based on credit card information through ticket sales. He personally received calls asking for the upcoming dates of the two events, and they have already sold tickets for the Food & Wine event without pricing. He went on to say, since the event had become a signature event for Palm Desert, they want to continue to enhance the experience for all attendees and maintain it as a first-class event that properly represented Palm Desert; 3) Keeping to their promise of having no one get hurt, specifically ladies in high -heels, everything was sub -floored, including the outside area. However, the landscaping needed to be improved. 4) He said those who attended the events will recall there were two tents. The first tent was the reception area, and the second one was expanded to seat 900, which included a garden in between the two tents. However, even with the expansion, it still wasn't large enough; 5) He said the Health Department found them to be in violation for not having the outdoor restaurants by the tents incased with walls on at least two or three sides. With the anticipation of the expansion of Food & Wine, they will probably have more things outside. Therefore, to be in compliance with the Health Department, they will need to create barriers, walls, or contained areas, which will be an additional expense; 6) The high attendance from those traveling from other areas to. the Food & Wine Festivals is attributed to who the chefs are. He said they were fortunate to have Sara Moulton from Good Morning America this year, and last year they had Duff Goldman from Ace of Cakes. He went on to say those two chefs along with many of the other celebrity chefs who were able to participate brought the attendance up. Fortunately, the cost had been fairly minimal on bringing those chefs here, but that ability will decrease, because they are commanding fees, travel, and hotel expenses, etc. He said they will need to bring more celebrity chefs, which will bring more tourism from Los Angeles, Orange County, San Diego, and the Phoenix market; therefore, additional funding will be needed in this area as well; 7) The restrooms were not adequate for the number of attendees. He will check with Burrtec for larger restrooms, because an attendant is needed for all of the events. He said people will not go into a restroom that is not property maintained; 8) The experience and environment in the reception tent needs to be enhanced with lighting, which is an additional expense; 9) He noted there were some unhappy neighbors directly behind the tent who complained about the noise. The neighbors were 14 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING JULY 12, 2012 offered tickets to Fashion Week, which they accepted, and they were also offered lodging, but they declined, because they didn't want to leave their home. He said they will make attempts to buffer the sound by adding a buffering system on the back side of the tent, which he hoped would dramatically minimize that sound factor. He said he was very cognizant of the Noise Ordinance and the 10:00 p.m. curfew. He noted they held an after -party event where they made sure to stay below the decibel level. Bottom line was that they didn't want to disturb the neighbors, which is why they will address this issue; 10) For the past seven years, seating for up to 1,100 people was coordinated manually, but it had become unmanageable. He said it was a nice problem to have, because the events had grown, but they need to move forward with an automated ticket system, which they will do; 11) In the area of public relations, they need to continue their outreach, which can be done with some of their partnerships with magazines where ads are run. However, it wasn't sufficient, and they will need to ramp up their public relations whether it is through press releases, etc., to get a larger recognition of the City of Palm Desert and these two major events. He said in order to accomplish all these goals, they requested $95,000 for 2013, $110,000 for 2014, and $120,000 for 2015. Councilmember Finerty noted for the benefit of the audience that she had met with Mr. Mathews the previous day. She asked if Fashion Week had sold out its 900 seats this year. MR. MATHEWS said many nights they did sell out, and they are planning on expanding by extending the runway, which will provide more capacity once they obtain approval from the Fire Department. He was anticipating 1,200 seats for 2013. They also plan to change their control tower to make it easier to get to the tents, but the most important thing was to get more seating. Wednesday night, which was Project Runway night, there were about 1,300 people. It was standing room only, but they prefer to have everyone seating so they can enjoy the evening. Councilmember Finerty stated she met with Mr. Mathews on the same list of items presented this evening, and her comment to him was that it sounded like, with the exception of the cost to bring celebrity chefs and going to an automated ticket system, the event needed a new location or new venue, because everything had been outgrown (i.e., not being able to cook outside, landscaping improvements, restrooms, lighting, inadequate decor, and neighbors complaining). Therefore, if the City was going to continue funding this event, it needed to look at a new location. Additionally, there was the uncertainty of the empty lot having been owned by Redevelopment. She is concerned about the funding mechanism, because $50,000 was allotted in the budget and essentially going to $95,000 would be a 100% increase, which would come out of Unobligated General Funds (the City's Reserve). 15 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING JULY 12, 2012 MR. ERIC RODRIGUEZ, General Manager of Saks Fifth Avenue, stated he supported Mr. Mathews and Palm Springs Life. He said Saks Fifth Avenue (SFA) participated for their second year, and the event drove business into their store with an 18% increase the first year for the week, and a 22% increase the second year, which was significant. Additionally, with that type of increase they are able to hire more sales associates. They wish to continue to support the event, but it needed to be elevated. He believed SFA elevated the event Sunday night, because attendance reached 900, which was only scratching the surface of its possibilities. The first year, he didn't know what he didn't know, that many of their clients weren't invited. In the second year, more clients were invited and are willing to support this event and activities planned for the entire week. He would love for the event to remain locally within walking distance to the store, because pedestrian traffic helped all the stores. He said this was a viable event and didn't know why SFA waited so long to participate. He encouraged the Council to consider the additional funding being requested. He said SFA was looking for ways to participate even more during the week, in fact, possibly utilizing the tents for more events to keep people inspired to shop the entire week. Mayor Spiegel stated the City had participated every year since the inception, and it appreciated Saks Fifth Avenue participation. MR. RODRIGUEZ responded the pleasure was theirs, because it was their largest event for the entire year and they had a vested interest; he looked forward to participating next year. Councilmember Benson stated the City had participated in this event every year, and she had decided staffs recommendation of $75,000 was probably worth it, because of the perseverance of the Committee to keep it going when the City only contributed $50,000 for a couple of years. However, to give $95,000, to $110,000 up to $125,000 without knowing where the event it going is too risky. She said too many cities were spending money foolishly and ending up in the pits, and she didn't want Palm Desert going down that path. She said this was another year to figure out what Palm Springs Life will do and where it will have the event, because space was limited in Palm Desert. She said if the event was in another area, Palm Desert wouldn't be supporting it, and if the event needed a bigger venue, one would have to be found. At this time she was in favor of a $75,000 contribution, but felt the City shouldn't commit to a three-year program with the finances as they are today. Councilmember Harnik stated she fully supported Fashion Week El Paseo and the Food & Wine Festival. She personally purchased tickets for five of the evening events, and the only regret she had was that she didn't purchase tickets for every night. She said it was a wonderful Palm Desert signature event that took a while to take off, but it had arrived. She said it was not only 16 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING JULY 12, 2012 great advertising, but great marketing for Palm Desert. She believed it was Palm Desert's signature event, and the City needed to hold onto it, because it was a great reflection on Palm Desert. She was in favor of the $75,000 contribution for three years as presented by staff. Additionally, she would like to add another option that as the event is developed in 2013 and each year after for the second and third years, that additional funding can be requested for City Council consideration if needed. Councilmember Harnik moved to, by Minute Motion: 1) Approve a $75,000 sponsorship for Fashion Week El Paseo and Food & Wine Festival Palm Desert for the next three years; 2) appropriate an additional $25,000 from Unobligated General Funds to Community Sponsorships for Fiscal Year 2012-2013, Account No. 110-4416-414-3062; 3) authorize up to $10,000 in -kind City services and fees; 4) authorize use of the City -owned lot at the northeast corner of Shadow Mountain and Larkspur for the Fashion Week Event in March 2013; 5) authorize closing a portion of Larkspur Lane in the evenings from 5:00 p.m. to 10:00 p.m. during Fashion Week Event in March 2013; 6) permit the consumption of alcoholic beverages on City -owned property; 7) authorize the Mayor to execute the sponsorship contract (Contract No. C32040) — funds of $50,000 have been included in the proposed Financial Plan for FY 2012-2013, Community Sponsorships Account No. 110-4416-414-3062; 8) as the producers develop the event in 2013, and the second and third years of the agreement, that if needed, they may return to City Council for consideration of a request for additional funding. Mayor Pro Tem Kroonen agreed these were risky times, and he was reluctant to go beyond three years. However, he believed the Council needed to show its willingness to work and support events that are important and valuable to the community. Therefore, he supported staffs recommendation with the understanding that things can be revisited. Mayor Pro Tern Kroonen seconded the motion. Mayor Spiegel stated Fashion Week El Paseo was the City's signature event, and it attracted more people than anything else, stating Palm Desert didn't have a tennis garden or convention center. He agreed with Councilmember Harnik on the $75,000 contribution to be approved and leaving it open for additional funding requests. Mayor Spiegel called for the vote and it carried on a 3-2 vote, with Benson and Finerty voting NO. XV. CONTINUED BUSINESS None 17 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING JULY 12, 2012 XVI. OLD BUSINESS None XVII. PUBLIC HEARINGS None XVIII. REPORTS AND REMARKS A. CITY MANAGER 1. City Manager Meeting Summaries for the Period of June 20 - 29, 2012. Rec: Receive and file. With City Council concurrence, received and filed. 2. One -stop Permit Research Mr. Wohlmuth noted that on July 26 and 27, he would be traveling to the Southern California cities of Rancho Cucamonga, Redlands, Pasadena, and Ontario to look at their permitting centers — Building, Public Works, and Planning — to gather information for Palm Desert's upcoming implementation of a quick permit center in the City. B. CITY ATTORNEY None C. CITY CLERK 1. City Council Study Session - Thursday, August 23, 2012, at 2:00 p.m. or 2:30 p.m., Administrative Conference Room. It was noted that a City Council Study Session had been scheduled for August 23, prior to the next regular City Council Meeting, and will convene at 2:00 p.m. or 2:30 p.m., depending upon the size of the Closed Session agenda for that meeting. Study Session will be held to discuss the Palm Desert Chamber of Commerce Lease at the Henderson Community Building. PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING JULY 12, 2012 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) Riverside County Transportation Commission (RCTC) — Councilmember Harnik said from yesterday's meeting, the Commission (which includes the City and CVAG) voted to participate in the State -Local Partnership Program, which will save the City about $12.3 million on six major projects within the Coachella Valley. She said one of these projects is the Monterey Avenue Interchange Loop Ramp at Interstate 10. b) July 41h Celebration in Civic Center Park — Mayor Spiegel commented that he was here on July 4 with his wife Sharon, and they saw a good band and great fireworks. He thanked Ms. Riddle for her good work in organizing this event. 4. City Council Comments: a) Summer Heat — Councilmember Harnik noted that it was very hot and humid right now, and for a variety of reasons, many people are impacted in their homes. She encouraged everyone to check on their neighbors to make sure they're okay during this time. W PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING JULY 12, 2012 5. Suaaested Items for Future City Council Meeting Agendas: a) Conservation Easement — Councilmember Finerty asked that Mr. Wohlmuth put the Conservation Easement item on the next meeting agenda. XIX. ADJOURNMENT Upon a motion by Finerty, second by Kroonen, and 5-0 vote of the City Council, Mayor Spiegel adjourned the meeting at 4:59 p.m. ATTEST: RACHELLE D. KLASSEN, CITY CLERK CITY OF PALM DESERT, CALIFORNIA ROBERT A. SPIEGEL, MAYOR 20