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HomeMy WebLinkAboutPreliminary Minutes - City Council - May 24, 2012r� PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING THURSDAY, MAY 24, 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 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 Frankie Riddle, Director of Special Programs Martin Alvarez, Redevelopment Manager Stephen Y. Aryan, Risk Manager Steve Brooker, Fire Marshal, Palm Desert Fire/Riverside Co. Fire Dept./Cal Fire Bill Sullivan, Asst. Chief, Palm Desert Police/Riverside Co. Sheriff's Dept. Mary P. LaCross, Administrative Secretary III. ORAL COMMUNICATIONS - A (CLOSED SESSION ITEMS) Lieutenant Bill Sullivan addressed the City Council about some of the reorganizing the Police Department's been doing, forming and enhancing the Business District Team. He introduced Sergeant Dave Smith, Supervisor, and the rest of this very seasoned and accomplished Team: Deputy Donald Isaacs, Deputy Adan Yamaguchi, Deputy Julio Oseguera, and Deputy Christopher Benson. PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING MAY 24, 2012 He went on to say that they've already been very effective in a couple of recent incidents in the City's Business District. Mayor Spiegel thanked Lt. Sullivan and all Members of the Business District Team for their fine work and welcomed them as part of City staff. IV. ADJOURN TO CLOSED SESSION Request for Closed Session: A. Conference with Legal Counsel regarding significant exposure to litigation pursuant to Government Code Section 54956.9(b): Number of potential cases: 2 B. Security of Public Services or Facilities Pursuant to Government Code Section 54957: Consultation with: Palm Desert Police Department/ Riverside County Sheriff's Department On a motion by Finerty, second by Kroonen, and 5-0 vote of the City Council, Mayor Spiegel adjourned the meeting to Closed Session at 3:04 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 Jan C. Harnik VI1. INVOCATION - Councilmember Cindy Finerty VI11. ORAL COMMUNICATIONS - B A. PRESENTATION OF ANIMAL ADOPTION FEATURE. MS. DIANA MARTINEZ of Animal Samaritans presented "Niko," a seven - week -old, female, Domestic Shorthair kitten, who will be available for adoption at their facility. K PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING MAY 24, 2012 B. GENERAL ORAL COMMUNICATIONS. 1. MR. PAUL REISMAN, representing California State Parks, came forward to provide background information regarding status of the Salton Sea State Recreation Area. He reported that Governor Brown has ordered most State Departments to take cuts. Previously, the Department of Parks has already closed portions of parks due to cuts and shortfalls in the budget. The Salton Sea State Recreation Area already closed Bombay Beach a couple of years ago, because it no longer had the staff or ability to take care of that campground and day -use area. He reported that in 1980 about 90% of the State Park Budget came from the State's General Fund, but it has been cut to about 14Y2% overthe last 30 years. More and more, parks have been forced to make up the difference with revenue generation and finding other sources of funding. For example, staff at the Salton Sea Recreation Area was down three positions that cannot be filled because of the cuts. Currently, two positions are on loan from another park to help keep Salton Sea Park open. A reduction in services is the result of the numerous cuts over the years. In the latest round, there was nowhere left to cut except for seasonal positions; unfortunately, these were the people at the gates who collect revenues as people come in, causing the problem to get worse along with the Department's bottom line. In order to meet the Governor's mandates currently, parks must close; and the State Parks Department made a list of 70 — these parks will not be funded by the State in the foreseeable future. Salton Sea State Recreation Area is one of them. However, he said Assembly Bill 42 was passed by the State Legislature earlierthis year, allowing associations to help fund parks in trouble. The Sea and Desert Interpretive Association (SDIA) is one of those trying to assist the Park; a registered 501(c)(3), non-profit organization that can help Salton Sea Park stay open. SDIA has the ability to raise and collect funds that can be used to reimburse the State for the cost of operating Salton Sea Park partially or fully, depending on revenues they can take in. The Salton Sea State Recreation Area hosted about 124,000 visitors last year — campers and others who came just for the day, many from Europe, Canada, and the northern states. He went on to say that these visitors spend money in the Coachella Valley and do a lot to support the local economy and community, helping out with golf tournaments and other similar events around town. In the future, there is a chance forthe Park to get help from the Federal Government, with the Bureau of Land Management and the Bureau of Reclamation stepping forward, actually mandated to assist because the Park sits on their property. He said these agencies can match up to 50% of funds, but it will take two years to get the Salton Sea State Recreation Area into 3 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING MAY 24, 2012 their budget cycle. Meanwhile, SDIA is here to help, and he introduced Bill Meister on behalf of the organization ,who would speak next. He offered to answer any questions from the City Council. 2. MR. BILL MEISTER, President of the Sea and Desert Interpretive Association (SDIA), said they had been the non-profit partnered with the Salton Sea State Recreation Area since 1977. Over the years, their mission has been one of support for the Park in the educational and interpretive activities that it holds for visitors. He said they were now being asked to take on a different role — management. In order to do so, they've made application to the State for a co -management agreement, which has been accepted in principle. They would be looking at a very trimmed -down operation compared to the current, operating on about $350,000/year. He went on to say that they generate about $100,000/year through revenues from campers and visitors, in addition to another $50,000 that can be raised through the Visitor Center operated by SDIA. However, they still need $250,000 to meet the goal and make the contract work with the State. So they were coming before the Palm Desert City Council, as they were before all the cities and any agencies they can contact in the Coachella Valley, to ask for a donation and have sent a letter to this effect to the City already. He said they have a Challenge Grant from the California State Parks Foundation, and they were asking if Palm Desert could match that $15,000 grant and see if it could provide help in some small way. 3. MR. STEVE HARMON, Regional Director of the Alzheimer's Association - California Southland Chapter, at the Coachella Valley Service Center, came to the meeting today to thank the City of Palm Desert for the longtime and effective relationship they've enjoyed with their "Walk to End Alzheimer's." This year the Walk was held on March 3 in Civic Center Park, the ninth to be held here. Over 800 walkers participated, including Councilmember Harnik on one of the largest and most successful teams, and this year's event surpassed its fund-raising goal, over $121,000 to date. On behalf of the Association, he again thanked the City, Council, the Mayor for helping with opening ceremonies at the Walk, and especially the Parks & Recreation Department that has been so supportive and helpful on every Walk held here, resulting in their success. Just as important was the City's involvement in helping to raise public awareness about this illness. He reported that 11,000 people in the Coachella Valley have been diagnosed with Alzheimer's, and another 30,000 people take care of them on a daily basis for five to 12 or more years. Numbers are growing daily as baby -boomers age, and someone else is diagnosed with Alzheimer's every 68 seconds - the sixth leading cause of death, the only one in the top 10 that doesn't 2 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING MAY 24, 2012 have prevention, cure, or way to slow it down — a devastating, costly, destructive disease. Increased public awareness will help to create some momentum and hope, thanks, in part, to the City's help. He said for the first time in history, the nation has a plan to address Alzheimer's Disease just released last week, in part due to public pressure as a result of the increased public awareness that can be attributed to the Walk and the City's role in it. The Association looks forward to continued collaboration with the City, maybe in other ways too, like working with the Human Resources Department to provide employee education about the illness, being a caregiver, about brain health, and some of the hopeful signs on the horizon. They would also be happy to assist employees to create a walk team or two and possibly organize a "Casual for the Cause" or a "Forget Me Not" Day among the City work force. He closed with sincere thanks to the City of Palm Desert, acknowledging its continued cooperation and support of the Alzheimer's Association's mission and vision of a world without Alzheimer's. He provided informational materials for each Councilmember. 4. MR. ROLAND ALDEN, Candlewood Street, Palm Desert, said he was a 17-year resident and today represented a group called "Palm Desert Underground." Their group was concerned about the obsolete aerial and electrical telecom infrastructure found throughout the original neighborhoods of Palm Desert - those that are home to 28% of the registered voters in the City. He said the infrastructure in question dates from the 1950s and 1960s; never properly designed, it just evolved chaotically over decades. Today it was electrically and mechanically overloaded, and 3,000 people live with the ugliness of this infrastructure; 6,000 more live with the ugliness and significantly elevated risk — a small wind storm or minor earthquake is enough to send wires into the streets or backyards. He went on to say that transformers explode, trees catch on fire — and these incidents were not only true but common throughout Southern California, the Coachella Valley, and too common in Palm Desert. In the history of Palm Desert, only two neighborhoods have had their old utilities modernized; the process used is defined in City Resolution No. 00-135. (Note from City Clerk: Mr. Alden referred to it as Ordinance No. 00-135 in his statement; however, he was referring to City Council Resolution No. 00-135.) He felt that this Resolution somewhat awkwardly maximizes the costs and minimizes the benefits of any undergrounding program. It discourages citizens from even attempting to underground their neighborhood, and if they dare try and fail, it actually prescribes harsh penalties — an odious Resolution and prescription for inaction that is itself in conflict with the City's General Plan. He went on to say that due to recent changes in State Law, such regulations are actually no longer practical in California; 5 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING MAY 24, 2012 thus, Palm Desert is now adrift without any working process at all for undergrouding utilities. He called attention to the numerous Edison work crews all over the City in residential areas, replacing old utility poles one at a time with new ones, wasting millions on band -aid maintenance and perpetuating this problem for another 50 years. He said the biggest misconception here is that the problem is money and asked for evidence to support that theory, with dissolution of the Redevelopment Agency explaining little. He remarked that over the years, millions have been invested in nice -to -have trophy projects, noting that last December $88,000 was spent harassing five harmless protesters. Predictably, he said we are now missing the best opportunity in a generation to capture Edison maintenance dollars into an undergrounding program. He believed that the City does not have a money problem, but one of setting priorities. Today his group was here to ask for a recalibration of City policy and for it to follow the path of Rancho Mirage, setting a goal to eliminate aerial utilities in the residential neighborhoods and creating an effective process to deliver results. He said his group stands ready to help, but the City must provide leadership, with responsibility for this matter lying here in the Council Chamber— it cannot be outsourced, nor should it be ignored. 5. MR. FRED GERBER, Shadow Mountain, Palm Desert, stated he was also present with the Palm Desert Underground Group, having lived in south Palm Desert for 16 years in one of the original neighborhoods one block behind El Paseo. He said there were tremendous issues with the aerial utilities, including frequent power outages. A couple of years ago during the week of Thanksgiving, he related that there were six outages in one week — two on Thanksgiving Day alone. He went on to say they've had a fire on their utility lines that required Fire Department response in the middle of the night, and he and neighbors from his six-plex being required to leave and find hotel rooms after the Fire Marshal declared it unsafe to remain. Nothing came from this incident; some patch work was done, but there were obviously serious problems. As he's out and about in the neighborhood, he hears similar stories from other residents as well and urged the City Council to take action in the form of an exploratory committee to see how this can be addressed. 6. MS. KAREN ALEXANDER, Shadow Mountain Drive, Palm Desert, said she'd lived in two locations in the City over the last 18 years. Presently, she owns a four-plex on Shadow Mountain, near The Gardens On El Paseo, and like Mr. Gerber before her, could speak to numerous power outages. She lives two power poles from the substation that is now being busily worked on for underground capability on El Paseo to provide service and take care of the outages there. She has called Edison on numerous occasions because the PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING MAY 24, 2012 pole on her property was leaning severely. Upon return from a recent business trip, she discovered damage and a huge metal electric cable suspended from the pole in her yard as a temporary measure, because a new pole will eventually be installed. She said if she was only two poles away from the location where there is a current large project, why her situation couldn't be taken into consideration, along with the City to beautify the neighborhood and make it safer as well. She hoped City Council would give this serious consideration, especially when she hears fellow citizens trying to become City Councilmembers stating this issue as part of a platform, and she wanted to see some action put toward it. 7. MR. FRED DOVER, Bursera Way, Palm Desert, said he's lived at the property 14 years, permanently for the last nine. He related that they've had nearby capacitors blow on at least two occasions and it sounds just like a shotgun when it happens. This often happens in the middle of the night, electricity goes out, and while their residence didn't lose power, Deep Canyon Country Club that is serviced by the poles near his home did. He doesn't have a pole on his property, but there is one on the property line, and he believed there were three capacitors on that pole currently. He would appreciate the City Council's consideration of this issue. 8. MR. MARTIN GOLDBERG, Old Prospector Trail, Palm Desert, appreciated the opportunity to speak, noting that he couldn't improve upon the remarks already made. However, he submitted a couple of thoughts to be considered. First, he believes this is a beautiful community, and the landscape would certainly be enhanced without utility poles. Secondly, over the long-term, he felt cost of the poles could be quite substantial when factors of rot, wind, and fire were to be considered — three hazards that could be totally eliminated by placing the utility lines underground. He and his wife have enjoyed living here the past 12 years, it was an outstanding community in terms of beauty, services, and all around good living; the poles present a minor eyesore that could be take care of. Therefore, for the long-term, he proposed undergrounding the utilities and keeping the landscape beautiful. 9. MS. KAREN LIN, Old Prospector Trail, Palm Desert, stated she's been attending Palm Desert Underground Meetings, and it concerned her enough to appear today at her first City Council Meeting. She commented on two incidents that occurred in her neighborhood. First, her neighbors across the street are George and Lidija Pejovic. Their neighbor had a wire that came down during a windstorm caught the house on fire, and had it not been for the little boy living next door, the Pejovic's house would have burned down completely. Secondly, the 7 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING MAY 24, 2012 Pejovic's have a pole in their yard; this year the electrical problems were remedied, but they put a new pole in their yard, and in the utility's ridiculousness, left the old pole standing — now there are two poles there. She's heard other stories of two poles going up in residents' yards as she's attended Palm Desert Underground Meetings and didn't understand why Edison was leaving these poles up. Additionally, her own yard is completely cris-crossed with wires in every direction. In fact, she has one wire resting on another because they can't install a pole in that spot. So for both the beauty and long-term benefit of the community, she felt it would make sense to underground the utilities, and she asked the City to please consider it and find the funds to do so. 10. MS. DESIREE COLLINGS, Covered Wagon Trail, Palm Desert, said she and her husband had livered there for 15 years. She echoed the aforementioned sentiments, adding that safety is one of her main concerns. She has constant problems with her telephone going out; tree trimming activity will knock down a line and leave her without a land line that she relies upon. As a Realtor with H. K. Lane in Palm Desert, she wanted to add for consideration that for the past five years as she's shown property to people from out-of-town, many comment that they would love to live in south Palm Desert near the center of activity, but decide against when they encounter the wires hanging all around and the poles. She acknowledged that people who've been here for some time are desensitized to them, but anyone coming from outside the area doesn't understand why they remain sticking up out of the ground; they are archaic. She urged the City to give this serious consideration during any future planning. 11. MR. ROB BALLEW, Executive Director of the YMCA, wanted to provide an update of their activities. Recently, they'd just completed their Annual Sustaining Campaign with a goal of $375,000 that was not only reached but exceeded. He extended appreciation to Honorary Campaign Chair Bob Spiegel, along with Councilmembers Jean Benson and Jan Harnik. Additionally, City staff members John Wohlmuth and Ryan Stendell did a great job too. He presented a framed artwork done by a seven -year -old to Jean Benson and one done by an eight -year -old to Bob Spiegel, respectively, in appreciation of their support. He went on to announce that about 75 students will be graduating from the Jean Benson Preschool on June 9. Summer is just around the corner, and Day Camp at the YMCA will begin on June 11 where 21 different camps will be offered. He said the Aquatic Center was seeing a high volume of users currently. The Canadian Olympic Swim Team used the pool recently, giving it an A+ rating. Yesterday, the YMCA was informed by the Palms to Pines Rotary Club that they will be sponsoring swimming lessons at the Aquatic 0 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING MAY 24, 2012 Center for local kids and adults with a $1,000 gift, and Center will host the Club's June 20 Meeting where they can get a firsthand look at the facility. On June 8, the Palm Desert Youth Sports Baseball Program will be using the pool for their year-end party, with several hundred people were expected to enjoy the facility. Lastly, the Lincoln Elementary After School Program sponsored by the City will be finishing up a great year on June 7, and he expressed deep appreciation to the City for all its support. 12. MR. LARRY BEAN, Sandpiper Court West, Palm Desert, stated he and his wife moved to Palm Desert from the Silicon Valley 12 years ago, and he has a business card that says they've retired in paradise. He is fully integrated in the community and loves Palm Desert — how it looks, operates, all the amenities — and he credited the City Council and City employees for this. While he was ignorant about City government, the responsibilities and budget, he wanted to refer back to the discussion City Council's been having about its salaries and the budget, thanking staff in the City Clerk's office for providing him with information along these lines for his research. He wanted to narrow down City Council responsibilities compared to the budget, now having a preliminary understanding of what's required, and it is very significant. In his review of the budget, he observed that the City lost $20,827,849 last year (8.6% from the previous year), which is also significant. He stated that the General Government Budget is $9,903,000; City Council Budget is $407,770 (4% or 0.2% of the total budget). With City Council salaries of $44,000, its overhead was approximately 85%. In the end, he believed City Council's salaries are best determined by them, with a big team to draw upon as a resource. He didn't think it would be wise to put the issue before the electorate, as Indian Wells is doing, because it's just too subjective. He humbly believed that City Council's salaries were trivial in the overall program, unless one of the City's Department managers were to determine that the money to be saved would significantly affect their operation. He assumed the City and City Council operated as a team. As a former department head in a project to design a very important large machine, they always used "we" and minimized use of ' I." He said it was easy to become defensive, yet improvements had to be made along the way, and they had to be approached objectively —no room for attacks on the person, comments were directed at the piece of equipment. Using "you," was not acceptable, instead discussion referred to the object being built for the customer, comparing this to the City's population as its customer. He hoped the City Council would keep these concepts in mind as it goes forward with the salary issue. A, PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING MAY 24, 2012 13. MR. RANDY FOSTER, Old Prospector Trail, Palm Desert, said he wished to speak about the power poles. Unlike some of the previous speakers on the issue, he is brand new to the neighborhood just moving here three months ago. He understood that throughout the entire neighborhood being discussed, they are replacing old poles with new poles. He asked if this was a prudent way to proceed; if money is going to be spent, why not consider the underground methodology before too much money is spent creating additional old infrastructure. IX. AWARDS, PRESENTATIONS, AND APPOINTMENTS A. PRESENTATION TO RECOGNIZE RETIRING CITY OF PALM DESERT EMPLOYEES RHONDA HENDERSON AND JAY NIEMCZAK. On behalf of Ms. Henderson and Mr. Niemczak, Human Resources Manager Lori Carney addressed the Council, as both staff members were unable to be present this afternoon due to personal circumstances. However, she said that Ms. Henderson asked her to share her best personal regards, after working for the City almost 27 years and enjoying every moment. She went on to say that while Rhonda was moving on with her life, she is sorry to be leaving. Ms. Carney went on to say that Mr. Niemczak was unable to be present today as he was recovering from some surgery, but he, too, wanted to express sincere gratitude to the City Council. She said both Ms. Henderson and Mr. Niemczak were very honored to be recognized for their contributions to the City in this manner and proud of the work they've been able to do here. On behalf of the City Council, Mayor Spiegel extended sincere appreciation and gratitude to these valuable employees. X. CONSENT CALENDAR A. MINUTES of the Regular City Council Meeting of May 10, 2012. Rec: Approve as presented. B. CLAIMS AND DEMANDS AGAINST THE CITY TREASURY - Warrant Nos. 253 and 254. Rec: Approve as presented. 10 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING MAY 24, 2012 C. CITY COMMITTEE AND COMMISSION MEETING MINUTES. 1. Art In Public Places Commission Meeting of March 21, 2012. 2. Citizens' Sustainability Committee Meeting of February 8, 2012. Rec: Receive and file. D. REQUEST FOR AUTHORIZATION to Streamline the Use of Vendors for the Corporation Yard by Granting Exception to Bidding Requirements and Approving the Original Equipment Manufacturer (OEM) Vendor List and the Corporation Yard Various Vendors and Qualified Service Providers List for Fiscal Year 2012-2013. Rec: By Minute Motion: 1) Grant an exception to the bidding requirements, for FY 2012-2013 as provided for by Section 3.32.090 of the Palm Desert Municipal Code; 2) approve the OEM Vendor List; 3) approve the Corporation Yard Various Vendors and Qualified Service Providers List as presented. E. REQUEST FOR AUTHORIZATION to Use Desert NAPA Auto Parts Company to Supply Aftermarket Automotive Parts, Tools, Equipment, and Services for Fleet Maintenance - Fiscal Year 2012-2013 in an Amount Not to Exceed $25,000. Rec: By Minute Motion, approve the use of Desert NAPA Auto Parts Company, Palm Desert, California, to supply aftermarket automotive parts, tools, equipment, and services for Fleet Maintenance - FY 2012-2013 in an amount not to exceed $25,000 — funds are available in General Fund Account No. 110-4331-413-3340 - R/M Fleet. F. REQUEST FOR APPROVAL of the Purchase of Compressed Natural Gas (CNG) Fuel from Clean Energy and SunLine Services Group for Fiscal Year 2012-2013 in an Amount Not to Exceed $40,000. Rec: By Minute Motion, approve the purchase of CNG fuel from Clean Energy, Seal Beach, California, as the primary source, and SunLine Services Group, Thousand Palms, California, as an alternative source for FY 2012-2013 in an amount not to exceed $40,000 — funds are available in General Fund Account No. 110-4331-413-2170 - Auto Fleet -Supply Automotive Gas. 11 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING MAY 24, 2012 G. REQUEST FOR APPROVAL of $31,000 Expenditure for Postage for the Bright Side Newsletter in Fiscal Year 2012-2013. Rec: By Minute Motion, approve the expenditure of $31,000 for the United States Postal Service to cover a year's worth of postage for mailing of the bimonthly Bright Side newsletter —funds have been included in the proposed budget for 2012-2013 in Account N o . 110-4417-414-3026 . H. REQUEST FOR ACCEPTANCE OF WORK for Contract No. C31420 — Citywide Drywell Removal Project (Project No. 500-12) (Simon Contracting, 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. REQUEST FOR ACCEPTANCE OF WORK for Contract No. C31430 — Summit Resurfacing Project (Project No. 752-12C) (Matich Corporation, Inc., 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. J. ANNUAL REPORT - 2011 Palm Desert Fire Department. Rec: Receive and file. K. ANNUAL REPORT - 2011 Palm Desert Police Department. Rec: Receive and file. Upon a motion by Kroonen, second by Harnik, 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 A. For Introduction: None 12 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING MAY 24, 2012 B. For Adoption: None XIV. NEW BUSINESS A. REQUEST FOR ADOPTION OF RESOLUTION TO PROVIDE WORKERS' COMPENSATION COVERAGE FOR ALL CITY VOLUNTEERS AND COMMITTEE/COMMISSION MEMBERS AND RELATED ACTIONS. Ms. Riddle noted the staff report and offered to answer any questions. Councilmember Finerty moved to: 1) Waive further reading and adopt Resolution No. 2012 - 31, relative to providing Workers' Compensation Insurance Coverage for all City of Palm Desert Volunteers and Committee/Commission Members, and rescinding Resolution Nos. 02-76, 04-23, 09-73, and any other Resolutions that may exist pertaining to volunteers of the City; 2) By Minute Motion, approve Volunteer Program Acknowledgment of Workers' Compensation Form. Motion was seconded by Kroonen and carried by a 5-0 vote. B. CONSIDERATION OF REQUEST BY BURRTEC WASTE AND RECYCLING FOR APPROVAL OF THE ANNUAL PRODUCER PRICE INDEX (PPI) AND COUNTY OF RIVERSIDE GATE/DISPOSAL FEE INCREASES. Ms. Riddle stated this request is to approve the annual rate increase by Burrtec Waste and Recycling. The increase includes the Producer Price Index (PPI) of 3.91 % and the Gate/Disposal Fee Increase of 3.52%, which is a $.40 per month increase to residents for a 96-gallon container. For commercial customers, the increase is $8.15 per month for a three -cubic -yard bin that is serviced three times per week. Based on Council's direction last year, staff requested that Burrtec provide two options - Option 1) residents pay for the $.40 per month increase; or Option 2) apply the increase to AB939 (Recycling) Fund, which would reduce the fee paid to the City through Burrtec from $4.19 to $1.87; a significant negative impact on that fund. The fund would be decrease by 50 to 60 percent per year, which was approximately $75,000 to $100,000. With that reduction, including costs and expenditures, the fund would be depleted in four or five years, which would then require staff to start looking for other ways to offset the cost for programs paid through that fund. Mayor Pro Tem Kroonen stated he realized the increase to each homeowner was small, but during these difficult and troubling times, even small increases added up. Therefore, just like the Council took no action at the last meeting on increasing the rate for rounds of golf for local residents, he suggested doing the same here. He asked the City Manager to look at this issue again and return to the Council with alternatives. 13 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING MAY 24, 2012 Mr. Wohlmuth agreed. However, the issue Ms. Riddle was talking about was that it would lower the AB939 Fund. There is a completed Nexus Study on the traffic impact from the waste and the numbers are substantial, but there are other avenues. He said the Franchise Agreement extends to May 31, 2015, but if Council decided to take the increase out of the AB939 Fund, as a part of negotiations with a franchise hauler, the City could look at franchise fees and fees to use the roads to cover costs for the AB939 programs and other impacts on the community. There is currently $4 million in the Account, which covers the current rate of use to maintain the roads and run the resident and commercial recycling programs, but it would only last four to five years. He said the franchise negotiations would take place within that four to five years, and staff could return with other alternatives to the Council in 2014/2015. He said if the Council chose that route, it may want to approve the PPI Rate Increase for Burrtec, the Landfill fee surcharge, and direct staff to bring back a resolution utilizing the AB939 Fund. Councilmember Finerty moved to, by Minute Motion: 1) Approve the proposed 3.91% PPI Rate Increase and 3.52% Gate/Disposal Fee Increase from $39.16 to $40.54 per ton; 2) direct staff to return to the City Council with a resolution that effects the increase to be paid from the City's AB 939 (Recycling) Fund. Motion was seconded by Kroonen. Burrtec Waste & Recycling District Manager Frank Orlett declined the invitation to speak on this matter. Councilmember Finerty stated the City will be in a better position in 2014/2015 when the Agreement needs to be re -negotiated. She agreed small increases added up, and if the City has $4 million sitting in the Recycle Funds, the residents should be helped as oppose to looking at another Recycle Binney Commercial. Mayor Spiegel called for the vote, and the motion carried by a 5-0 vote. C. REQUEST FOR AUTHORIZATION TO SUSPEND PALM DESERT MUNICIPAL CODE CHAPTER 25.68 - SIGNS, SECTIONS 25.68.090 (A) AND (M) - TEMPORARY SIGNS - FOR A PERIOD OF THREE MONTHS TO ALLOW COMMUNITY HOME BUILDERS TEMPORARY SIGNAGE RELIEF DURING WEEKENDS, STARTING FRIDAYS AT 3:00 P.M. AND ENDING MONDAYS AT 10:00 A.M., MAY 25 - SEPTEMBER 4, 2012. Assistant Planner Kevin Swartz stated the City currently had four main home builders selling and building homes within the City of Palm Desert. He displayed a map that showed where the temporary signage could be located if this program was approved that showed Villa Portofino on the corner of Portola Avenue and Country Club Drive; Ponderosa Homes by D.R. Horton, on the corner of Gerald Ford Drive and Portola Avenue; KB Homes off of 14 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING MAY 24, 2012 Shepherd Lane; and Spanish Walk by D.R. Horton, which is on the corner of Gerald Ford and Frank Sinatra Drive. The Palm Desert Municipal Code (PDMC) allows residential builders to erect one double-faced sign or two double single -faced sign that are 48 square feet in size and eight feet in height per street frontage, and two directional signs, 15 square feet in size and 8 feet in height per street frontage. He displayed signs that would be permitted and prohibited per the proposed sign program. He said during this continuing economic downturn, builders have expressed concern regarding Palm Desert's Sign Ordinance as it relates to temporary signage and advertising devices. The builders are proposing a six-month pilot program on weekends starting on Friday at 3:00 p.m. and ending Monday at 10:00 a.m. The proposed builders pilot program is as follows: 1) Six company flags located at the entry of the project site; 2) one promotional banner 3'x10' or 5'x20' facing each public street; and 3) six temporary directional signs per street frontage. Staff recommended a three-month trial program and the following: 1) Four company flags at the entry of the project site; 2) one promotional banner 3'x10', which is the same as commercial uses; and 3) two temporary directional signs. He displayed a photograph of D.R. Horton's company flags at Spanish Walk, stating D.R. Horton is known as America's Builders with their flags resembling U.S. Flag, which are prohibited under Advertising Devices per the Code. Staff recommended allowing two company flags at each entrance and the developer is asking three per entrance. With regards to banners, staff is recommending a 3'x10' per frontage and two directional signs. During the three-month trial period, staff will observe the visual impacts on the community, and builders will provide staff with actual traffic counts and numbers to determine the effectiveness of the program. If the program assists new residential developers and it doesn't have an adverse effect on the community, staff would then recommend continuing the program for an additional three months until after the Labor Day weekend and return to Council with the results. Responding to question about the banners, he confirmed they must be placed on walls. MS. GRETCHEN GUTIERREZ, Chief Executive Officer for Desert Valleys Builders Association, urged the Council to support this additional advertising means during the continuing challenges that home builders face. She knew a number of those home builders had spoken to City staff asking for assistance to bring this issue before the Council. She said DVBA is asking the Council to suspend the current Ordinance and allow the trial period in hopes that it will drive additional traffic into these communities to make these builders a little bit more successful. MR. DANIEL BOYD, Vice President for D.R. Horton, Inc., stated he was also a Governing Board Member for the Southern California Business Industry Association, and Vice President of the Riverside County Business Industry Association. He expressed appreciation to staff and Councilmembers who 15 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING MAY 24, 2012 have worked on this proposal for the past month. He said their time, effort, and courtesy extended in representing all of the community builders is appreciated. They are in support of the staff report prepared for Council's consideration of the three-month experiment, which will be evaluated and hopefully extended for an additional three months. He hoped the outcome of this experiment may better help the Council to redefine the current City Ordinance governing the uses of signs. He said signage was the key to their success, because without them, they don't sell homes to create revenue for the City. He said this was not an issue of posting a sign, but a matter of succeeding with their investment in the community, which he believed all wanted the same. In conclusion, he urged the Council to consider amending staff's recommendation from two to six directional signs, because the purpose of those signs is to invite people to the project. He said two signs wouldn't be sufficient with a large stretch of roadway, i.e., Portola Avenue down Gerald Ford Drive into their entry. He would prefer to experiment with the most numberof signs possible and then make modifications if necessary. When he met with Mr. Swartz at the site to place the six directional signs, he didn't seem to be objectable to them. Councilmember Finerty asked how the experiment will be measured and what the current numbers were with regards to traffic generated. MR. BOYD responded current numbers will be used as a base, and upon request, the traffic numbers will be provided to staff. He believed they can demonstrate that with additional signage, more people will go into their projects. The second part of the evaluation is to engage the community's reaction and complaints received by staff, and if there are an inordinate amount of complaints, builders need to be sensitive to that finding. Additionally, they wish to determine if those complaints are coming from inside or outside the parameters of the project. Councilmember Finerty asked if last year's traffic numbers for the same time frame were available, which was Memorial Day to Labor Day. MR. BOYD responded he could obtain the numbers from his Sales and Marketing personnel and provide it to staff. Councilmember Finerty stated she would be looking at those numbers, because obviously, the numbers will be better in May than in July; therefore, she would rather compare to last year's numbers. Mayor Pro Tern Kroonen expressed appreciation to the representation of builders who met with him and Councilmember Harnik on this issue. It was pleasing to see a united front coming in and making a plausible presentation, in what he considers to be a reasonable request for a temporary relaxation of the City's Ordinance. He also commented on the good work done by staff. iirp PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING MAY 24, 2012 on this issue. Further, when appropriate, he would like to make the motion to adopt this measure with the suggested amendments. Councilmember Harnik stated the housing and construction builders have been hit the hardest by this economy, but believed this business was starting to come out of the tank, and she would like to do everything possible to assist; therefore, she was in favor of going with four directional signs. She said the banner that was displayed was not too large, and as long as it was professional, neat, and against the wall, it would be okay. She believes the Council should help builders sell houses, because it helped the community. Further, due to the upcoming three holidays, she suggested that on Memorial Day allow the signs to be up through Tuesday, because that would be a high traffic day, and do the same for Labor Day and 4th of July. In three months the Council can take a hard look at the results to see how it helped the builders and the City. Mayor Pro Tern Kroonen moved to, by Minute Motion, approve a three-month suspension of Chapter 25.68 - Signs, Sections 25.68.090 (A) and (M) - Temporary Signs - to allow community home builders six (6) temporary off -site signs not located within the public right-of-way, one 5-foot x 20-foot banner per street frontage; and four company flags located at the entry of each residential development — temporary program to run from May 25, 2012, through September 4, 2012, during weekends beginning Fridays at 3:00 p.m. and ending Mondays at 10:00 a.m., except for the holiday weekends of Memorial Day (Monday, May 28) and Labor Day (Monday, September 3) when the program will be extended to Tuesday at 10:00 a.m., and with additional time granted for Independence Day (Wednesday, July 4). Motion was seconded by Harnik and carried by a 5-0 vote. D. CONSIDERATION OF INITIATION OF PROCEEDINGS TO LEVY THE ANNUAL ASSESSMENT FOR FISCAL YEAR 2012-2013 FOR CITY OF PALM DESERT BENEFIT ASSESSMENT DISTRICT NO. 01. Senior Management Analyst Ryan Stendell stated this item and the following item on the Agenda are procedural reports pertaining to the Benefit Assessment District and the City's Landscape and Lighting Districts. Mayor Pro Tern Kroonen moved to waive further reading and adopt Resolution No. 2012 - 33, declaring intention to levy the annual assessment for Fiscal Year 2012-2013 for the City of Palm Desert Benefit Assessment District No. 01 pursuant to the Benefit Assessment Act of 1982 and appointing a time and place for the public hearing on these matters. Motion was seconded by Kroonen and carried by a 5-0 vote. 17 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING MAY 24, 2012 E. CONSIDERATION OF INITIATION OF PROCEEDINGS TO LEVY AND COLLECT ANNUAL ASSESSMENTS FOR THE PALM DESERT CONSOLIDATED LANDSCAPE AND LIGHTING DISTRICT FOR FISCAL YEAR 2012-2013; AND GRANTING PRELIMINARY APPROVAL OF THE ENGINEER'S REPORT FOR THE CONSOLIDATED PALM DESERT LANDSCAPE AND LIGHTING DISTRICT FOR FISCAL YEAR 2012-2013. Councilmember Finerty moved to waive further reading and adopt: 1) Resolution No. 2012 - 34, initiating proceedings for the levy and collection of annual assessments for the Palm Desert Consolidated Landscape and Lighting District for FY 2012-2013; 2) Resolution No. 2012 - 35, declaring the intent to levy and collect annual assessments for the Palm Desert Consolidated Landscape and Lighting District; and granting preliminary approval of the Engineer's Report for FY 2012-2013. Motion was seconded by Kroonen and carried by a 5-0 vote. F. REQUEST FOR APPROVAL OF ONE-YEAR EXTENSION OF CONTRACT WITH FAMILY YMCA OF THE DESERT FOR MANAGEMENT AND OPERATIONS SERVICES AT THE PALM DESERT AQUATIC CENTER FOR FISCAL YEAR 2012-2013 (CONTRACT NO. C29401 B). Councilmember Benson moved to, by Minute Motion: 1) Approve the subject contract, a one-year extension, with Family YMCA of the Desert for Management and Operations Services at the Palm Desert Aquatic Center; 2) authorize the Mayor to execute the First Amendment —funds are available in Fund 242 Accounts and have been included in the proposed FY 2012-2013 operating budget. Motion was seconded by Finerty and carried by a 5-0 vote. G. REQUEST FOR AWARD OF CONTRACT FOR LANDSCAPE MAINTENANCE AREA NO. 1 TO TRUGREEN LANDCARE FOR A TWO-YEAR CONTRACT IN THE AMOUNT OF $153,576 PLUS AN AMOUNT NOT TO EXCEED 20% OF CONTRACT AMOUNT FOR EXTRA REPAIR WORK AND SERVICES (CONTRACT NO. C31520, PROJECT NO. 901-12). Mayor Pro Tern Kroonen moved to, by Minute Motion: 1) Award subject contract for Landscape Maintenance Area No. 1 to TruGreen LandCare, Riverside, California, for a two-year term in the amount of $153,576; 2) include extra repair work and services in an amount not to exceed 20% of contract amount, or $30,715.20; 3) authorize the Mayor to execute the contract — funds are available in General Fund Account No. 110-4614-453-3370 - Repair/Maintenance Medians and Assessment District Account No. 276-4374-433-3320 - Haystack Drainage Channel. Motion was seconded by Finerty. im PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING MAY 24, 2012 Councilmember Benson noticed the staff reports where TruGreen was the low bidder, staff expressed concern that the contract was underbid, and given that staff recognized it up front, she worried change orders would follow. Senior Landscape Inspector Randy Chavez stated the second and third lowest bids had discrepancies as well, but TruGreen met the minimum requirements. Further, staff had mechanisms in place to ensure the work will be completed without further funding. Councilmember Finerty shared the same concern, but as she progressed through the Agenda and saw that TruGreen was the low bidder on so many contracts, she hoped that since they had such a big interest in this area, they would have sufficient manpower to do the job well. Mr. Chavez said TruGreen Landcare is a National Company that has the resources, and they met the minimum qualifications. He said with the mechanisms in place, they will be able to determine if they fall behind, and at that time, the City will contract with another vendor, complete the work, and deduct that amount from their monthly contract. Councilmember Harnik stated the Council worked hard to keep all contractors and work local, but their bids weren't even close. She said the City had to go with what fits into the budget for Palm Desert. Mayor Spiegel called for the vote, and the motion carried by a 5-0 vote. H. REQUEST FOR AWARD OF CONTRACT FOR LANDSCAPE MAINTENANCE AREA NO.9 TO MARIPOSA LANDSCAPES, INC., FOR A TWO-YEAR CONTRACT IN THE AMOUNT OF $238,896 PLUS AN AMOUNT NOT TO EXCEED 20% OF CONTRACT AMOUNT FOR EXTRA REPAIR WORK AND SERVICES (CONTRACT NO. C31540, PROJECT NO. 909-12). Councilmember Finerty moved to, by Minute Motion: 1) Award subject contract for Landscape Maintenance Area No. 9 to Mariposa Landscapes, Inc., Irwindale, California, for a two-year term in the amount of $238,896; 2) include extra repair work and services in an amount not to exceed 20% of the contract amount, or $47,779.20; 3) authorize the Mayor to execute the contract — funds are available in General Fund Account No. 110-4614-453-3370 - Repair/Maintenance Medians. Motion was seconded by Kroonen and carried by a 5-0 vote. iRl PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING MAY 24, 2012 REQUEST FOR AWARD OF CONTRACT FOR LANDSCAPE MAINTENANCE AREA NO. 16 TO TRUGREEN LANDCARE FOR A TWO-YEAR CONTRACT IN THE AMOUNT OF $194,352 PLUS AN AMOUNT NOT TO EXCEED 20% OF CONTRACT AMOUNT FOR EXTRA REPAIR WORK AND SERVICES (CONTRACT NO. C31550, PROJECT NO. 916-12). Councilmember Finerty moved to, by Minute Motion: 1) Award subject contract for Landscape Maintenance Area No. 16 to TruGreen LandCare, Riverside, California, for a two-year term in the amount of $194,352; 2) include extra repair work and services in an amount not to exceed 20% of contract amount, or $38,870.40; 3) authorize the Mayor to execute the contract — funds are available in General Fund Account No. 110-4611-453-3320 - R/M Landscaping Services. Motion was seconded by Kroonen and carried by a 5-0 vote, J. REQUEST FOR AWARD OF CONTRACT FOR LANDSCAPE MAINTENANCE AREA NO. 17 TO TRUGREEN LANDCARE FOR A TWO-YEAR CONTRACT IN THE AMOUNT OF $278,136 PLUS AN AMOUNT NOT TO EXCEED 20% OF CONTRACT AMOUNT FOR EXTRA REPAIR WORK AND SERVICES (CONTRACT NO. C31560, PROJECT NO. 917-12). 'Mayor Pro Tern Kroonen moved to, by Minute Motion: 1) Award subject contract for Landscape Maintenance Area No. 17 to TruGreen LandCare, Riverside, California, for a two-year term in the amount of $278,136; 2) include extra repair work and services in an amount not to exceed 20% of contract amount, or $55,627.20; 3) authorize the Mayor to execute the contract — funds are available in General Fund Account No. 110-4610-453-3320 - R/M Landscape Services, Account No. 110-4611-453-3320 - R/M Landscape Services, and Account No. 110-4611-453-3371 - Tri-Cities Sports Facility. Motion was seconded by Finerty and carried by a 5-0 vote. Mayor Spiegel stated since TruGreen Landcare was the low bidder for many of the landscape contracts, he assumed they would employ many of the locals. Mr. Chavez responded that typically many of the contractors employed folks from the Coachella Valley. NEI PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING MAY 24, 2012 K. REQUEST FOR AWARD OF CONTRACT FOR LANDSCAPE MAINTENANCE AREA NO. 18 TO TRUGREEN LANDCARE FOR A TWO-YEAR CONTRACT IN THE AMOUNT OF $109,080 PLUS AN AMOUNT NOT TO EXCEED 20% OF CONTRACT AMOUNT FOR EXTRA REPAIR WORK AND SERVICES (CONTRACT NO. C31570, PROJECT NO. 918-12). Mayor Pro Tern Kroonen moved to, by Minute Motion: 1) Award subject contract for Landscape Maintenance Area No. 18 to TruGreen LandCare, Riverside, California, for a two-year term in the amount of $109,080; 2) include extra repair work and services in an amount not to exceed 20% of the contract amount, or $21,816; 3) authorize the Mayor to execute the contract — funds are available in General Fund Account No. 110-4611-453-3320 - R/M Landscaping Services. Motion was seconded by Finerty. Mayor Spiegel asked about the 20% amount. .Senior Landscape Inspector Randy Chavez responded funds were for unforeseen incidents, such as high winds that knocked trees down. Contractors are typically the first to respond where they have staff available on site to mitigate those types of issues, which included irrigation upgrades where necessary. He said there was a broad spectrum of issues that the 20% encompassed. Mr. Wohlmuth stated he's asked the same question, because a contingency is normally 10% or 15% for a construction contract. However, this was not a contingency issue, but rather repair and emergency work caused by a broken mainline or torn down trees; it's a little different than a contingency. Mayor Spiegel called for the vote, and the motion carried by a 5-0 vote. L. REQUEST FOR AWARD OF CONTRACT TO SETO CONSTRUCTION, INC., IN AN AMOUNT NOT TO EXCEED $82,046 FOR WILLOWS ROOM - CONFERENCE ROOM LIGHTING/CEILING REMODEL AT DESERT WILLOW GOLF RESORT (CONTRACT NO. C31460). Project Coordinator Heather Buck noted the Staff Report and Memorandum requesting the addition of Item No. 1 to the Minute Motion for clarification. She offered to answer any questions. Responding to question about the fixtures being replaced, she said they will be utilized in the facility as needed. Mayor Pro Tern Kroonen moved to, by Minute Motion: 1) Reject the two apparent low bidders, Falcon Builders, Inc., and Crown Contracting, Inc., and declare the bids non- responsive; 2) authorize award of the subject contract for Willows Room - Conference Room Lighting/Ceiling Remodel at Desert Willow Golf Resort in the amount of $82,046 to Seto Construction, Inc., Bermuda Dunes, California; 3) authorize the Director of Finance to set aside the amount of $8,204 as 10% contingency for the project (use of contingency 21 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING MAY 24, 2012 requires additional action); 4) declare remaining six (6) chandeliers removed during the Kitchen/Building Expansion as surplus and authorize staff to dispose of them; 5) appropriate $63,490 for the design, bidding, and construction of the Willows Room - Conference Room Ceiling Remodel at Desert Willow Project from Account No. 441-4195-495-8092. Motion was seconded by Finerty and carried by a 5-0 vote. M. REQUEST FOR AWARD OF CONTRACT TO QUALITY MECHANICAL PROFESSIONALS, INC., IN AN AMOUNT NOT TO EXCEED $37,900 FOR THE REPLACEMENT AND MODIFICATION OF KITCHEN AIR CONDITIONING AT DESERT WILLOW GOLF RESORT (CONTRACT NO. C31720). Councilmember Finerty moved to, by Minute Motion: 1) Authorize award of the subject contract for Replacement and Modification of Kitchen Air Conditioning at Desert Willow Golf Resort to Quality Mechanical Professionals, Inc., El Cajon, California, in the amount of $37,900; 2) authorize the Director of Finance to set aside the amount of $3,790 as 10% contingency for the project (use of contingency requires additional action); 3) declare the existing HVAC rooftop unit as surplus and authorize staff to dispose of it; 4) appropriate $45,302 for the design, bidding, and construction of the Kitchen Air Conditioning Modifications at Desert Willow from Account No. 441-4195-495-8092. Mayor Spiegel questioned why this wasn't done with the remodel of the kitchen. Project Coordinator Heather Buck said staff was not aware of the problem until the kitchen became operational. Mayor Pro Tern Kroonen seconded the motion, and it carried by a 5-0 vote. N. REQUEST FOR APPROVAL OF THE USE OF SPECIFIC AUTOMOTIVE FACILITIES FOR SUPPLEMENTAL GENERAL FLEET REPAIRS FROM L & L AUTOMOTIVE, INC., AND OZZIE'S AUTOMOTIVE, INC., FOR FISCAL YEAR 2012-2013 IN AN AMOUNT NOT TO EXCEED $100,000. Mayor Spiegel asked about the $100,000 even amount. Mr. Wohlmuth stated staff couldn't foresee the types of repairs the fleet will need in a certain year, i.e., transmission or engine repairs. He said major repairs went to local automotive service facilities, and the $100,000 amount represented the allocated amount budgeted, not necessarily the amount that will be spent. Responding to question about the amount spent last year, Maintenance Services Manager Carlos Hernandez responded it was approximately $80,000. Further responding, he confirmed local vendors had the ability to work on electric, gasoline, and CNG vehicles. 0A PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING MAY 24, 2012 Councilmember Finerty moved to, by Minute Motion, approve the use of specific automotive facilities for supplemental general fleet repairs from L & L Automotive, Inc., Palm Desert, California, and Ozzie's Automotive, Inc., Palm Desert, California, for FY 2012-2013 in an amount not to exceed $100,000 — funds are available in General Fund Account No. 110-4331-413-3340 - R/M Fleet. Motion was seconded by Harnik and carried by a 5-0 vote. O. REQUEST FOR APPROVAL OF THE PURCHASE OF GAS AND DIESEL FUEL FOR THE CITY'S FLEET AND EQUIPMENT, AND FOR DESERT WILLOW'S MAINTENANCE VEHICLES AND EQUIPMENT FROM KENNY STRICKLAND, THE SOCO GROUP, INC., AND LEE ESCHER OIL CO., INC., FOR FISCAL YEAR 2012-2013 IN AN AMOUNT NOT TO EXCEED $245,000. Councilmember Harnik moved to, by Minute Motion, approve the purchase of gas and diesel fuel from Kenny Strickland, Coachella, California, The SoCo Group, Inc., Carlsbad, California, and Lee Escher Oil Co., Inc., Coachella, California, for FY 2012-2013 for: 1) City's fleet and equipment in an amount not to exceed $145,000; 2) Desert Willow Maintenance Facility in an amount not to exceed $100,000 —funds are available in General Fund Account No. 110-4331-413-2170'- Auto Fleet -Supply Automotive Gas and Account No. 520-4195-495-8031 - Desert Willow Maintenance Facility. Motion was seconded by Kroonen and carried by a 5-0 vote. P. REQUEST FOR APPROPRIATION OF $55,000 FROM THE LAND ACQUISITION FUND RESERVE IN FUND 400 FOR COSTS RELATED TO THE PURCHASE OF AN UNDEVELOPED PARCEL IN THE CAHUILLA HILLS (APN 628-120-011)AND RATIFYTHE CITY MANAGER'S EXECUTION OF VACANT LAND PURCHASE SALE AGREEMENT AND JOINT ESCROW INSTRUCTIONS FOR SAME (CONTRACT NO. C31870). Councilmember Finerty moved to, by Minute Motion: 1) Appropriate $55,000 from the Land Acquisition Reserve (Account No. 400-4950-419-4010) for costs related to the purchase of an undeveloped parcel in the Cahuilla Hills (APN 628-120-011); 2) ratify the City Manager's execution of Vacant Land Purchase Agreement and Joint Escrow Instructions for this purpose. Motion was seconded by Benson and carried by a 5-0 vote. XV. CONTINUED BUSINESS None 23 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING MAY 24, 2012 XVI. OLD BUSINESS A. CONSIDERATION OF FACADE ENHANCEMENT PROGRAM FUNDING TO WESSMAN HOLDINGS, LLC, FOR THE REAR BUILDING ELEVATION LOCATED AT 73-520 EL PASEO (Wessman Holdings, LLC, Applicant). Redevelopment Manager Martin Alvarez stated the Council asked staff to have the Architect return with an illustration of the proposed rear facade improvements, which the Applicant requested funding for at the last meeting. He went on to display photographs of its current condition and the proposed/revised elevation, pointing out that the former copper skylight had been removed. The whitewash veneer will be applied, which will carry around the back elevation. The new rear service entrance to the restaurant will also have the whitewash stone veneer, new stucco, and paint. The architectural details on the Trio retail store will also be applied on the retail store on the east side. The Applicant proposes to install new landscaping in the rear parking lot. Mayor Spiegel asked if there was an entrance to the retail stores from the rear parking lot. Mr. Alvarez responded the Applicant was present to answer that question, but he knew there was a rear service entrance. He noted there is $24,000 left in the current fiscal year budget for the Facade Enhancement. Mayor Pro Tern Kroonen stated that given that the Council had a lengthy discussion about this at the last meeting, he would move to approve. Mayor Pro Tern Kroonen moved to, by Minute Motion, approve Facade Enhancement Program funding in the amount of $24,762 to Wessman Holdings, LLC, for the rear building elevation located at 73-520 El Paseo. Motion was seconded by Finerty. Councilmember Finerty thanked the Applicant for the photographs. MR. JOHN WESSMAN, Managing Partner at Wessman Holdings, LLC, stated that originally the plans did not include a rear entrance, but with the added stone veneer, and in reviewing the pictures taken from all angles, it was determined a rear entrance was needed. Therefore, a rear entrance is now included that will be about 16 feet wide and 18 feet high, stating the whole rear wall will be raised to hide the air conditioners. He said they will spend more than $24,000 on the improvements to the building and landscaping to the parking lot. He confirmed there will be a rear entrance to the restaurant, but not to the rear retail space on the east side. He added Starbuck's met with him indicating they wanted to spend $60,000 on facade improvements, which the City already approved. Now they have indicated they will spend $400,000, because they have come up with a whole new 24 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING MAY 24, 2012 concept, and they want additional retail space; they are working with Trio for that additional space. One item that wasn't approved by staff was a 6-foot clearance all around the potential outdoor patio, which he felt would really energize the street; staff is requiring a 9-foot clearance. In order to move out the dining area, they need to accommodate their tabletops, which are tree -feet by six -feet wide. He's looking at relocating palms trees, planters, etc., in order to achieve that 6-foot clearance. He went across the street and did some measuring, stating that in many cases there was a planter for the tree and five feet of pavement. He didn't know who had a problem with his request, but it would make a huge difference to their project if the City would see a way through for it. He noted across the street from Starbuck's there is only 4-feet of sidewalk as one makes the transition from the handicap ramp up to the structure, which he thought was tight. He would love to have a 6-foot clearance, but knew they would need an agreement with the City, which they are more than happy to do. Councilmember Harnik agreed outside dining energized an area, stating she will wait to see a staff report on that request. Mr. Wohlmuth pointed out the issue of the outside dining area was not on the agenda, but the request for FEP for the rear elevation was. He suggested the Council direct staff to bring back the encroachment permit to address the sidewalk issue, because he didn't believe Council could vote on it this evening. However, he has concerns about the width of the sidewalk, but he is willing to listen and see where the planters for the palm trees go. MR. WESSMAN agreed to work with staff and return to the Council for consideration as the City Manager suggested. Mayor Spiegel called for the vote, and the motion carried by a 5-0 vote. XVII. PUBLIC HEARINGS A. REQUEST FOR APPROVAL OF CHANGE OF ZONE FROM PLANNED RESIDENTIAL - FIVE DWELLING UNITS PER ACRE (PR 5) TO PLANNED RESIDENTIAL - 20 DWELLING UNITS PER ACRE (PR 20) IN COMPLIANCE WITH STATE LAW AND THE APPROVED HOUSING ELEMENT (APNs 694-300-001, 694-300-005, AND 694-310-005), Case No. C/Z 12-76 (City of Palm Desert, Applicant). Principal PlannerTony Bagato stated this item was continued from a meeting in August. Initially, the first proposal was for PR 22 units per acres, which was consistent with the Housing Element. He noted staff found errors in that legal notice, but the residents in the area have been notified for this current request. Although the Housing Element was approved, due to concerns with density, staff agreed to research options; however, State Law requires a 25 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING MAY 24, 2012 minimum of 20 units per acre. Therefore, the request was modified down from 22 units to 20 units per acres. He said under State Law the City is required to have a Housing Element, which has been approved by both the City and HCD (Housing and Community Development). The City is currently in Cycle 4 where State Law requires an upzone of the physical properties to meet that demand. The subject parcel was identified as one of the sites, which was known as Site B in the Housing Element and had an established criteria for 520 units. The parcels in question are the dashed areas of Exhibit A of the staff report, which are off Gerald Ford Drive, west of Portola Avenue, and is surrounded by residential to the east, and a portion of the Riverside Sheriff's Station to the west. The purpose of approving the parcel is to be compliant with the Housing Element, because the City had one year to approve all the land use changes, and that deadline is in July, so there is a short window to make this approval. This is the last parcel that hasn't been approved, because it was accidently left out of the previous approval. With an approved Housing Element, the City can apply for grant funding to do affordable housing projects. Unfortunately, without Redevelopment, the City has problems with bonding, but it can still get grants. A current legal Housing Element gives the City control over local development, which meant projects go through the City Council and Planning Commission to review pros and cons, density, and Regional Housing Needs Allocation (RHNA) numbers. Therefore, the City can approve or deny a project with legal jurisdiction, which was in the public's best interest. If this parcel is not approved, the City will be out of compliance with the Housing Element and State Law, which will then prohibit the City from applying for grant funding for housing projects. Additionally, if someone came in and applied for a project, the City would not be able to deny it, the State can just approve the project. He said for the next RHNA cycle, the City's numbers have gone down to 415 total number units where the current cycle was more than 4,000. If this current change of zone isn't approved, State Law states this change over has to be carried into the next cycle, which will double the required RHNA numbers to 935 units, because 520 will need to be added again. Additionally, this property can only be designated low and very low income in the next cycle, which would triple the amount required in the next RHNA cycle, and a major chunk would be on this property. Further ramifications to the noncompliance of the Housing Element would require the City to update it every four years instead of every eight years. He said there is a huge difference between compliance and noncompliance with the Housing Element and State Law. He noted the City didn't have any pending projects or discussions with builders for any type of affordable housing or higher density projects at this time. Therefore, staff recommended approval of the proposed change of zone in order to be compliant with State Law, RHNA, and giving the City local control. Responding to question about the location of Windflower Court, he said it was east of the subject parcels, and the zoning is PR 5. However, the overall density is 3.5 units per acres; there are about 16 lots on most of the W" PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING MAY 24, 2012 subdivisions. Further responding to the term "not to exceed PR 20," he confirmed that developers can always apply for a lower density. Mayor Spiegel declared the public hearing open and invited anyone who wished to speak on the proposed change of zone to do so at this time. MS. ROBIN S. CAVALIERE, Scholar Lane, Palm Desert, stated she wanted to be more informed on the impact it will have on the residents that already lived in that area. She said low-income housing next to her home will have financial impact on the value of their property, and it can affect the safety of children with the higher traffic. MR. MICHAEL L. BRAUNTZ, Windflower Court, Palm Desert, stated that when he bought his new home in 2003, he contacted the City and was told it owned the land and a park or golf course would be built. Now, eight years later, the City wants to construct apartments, which will knock out the view. He said 20 units per acre with 35 acres there meant 700 homes, which equaled 1,400 vehicles; traffic was already goofy there. Initially when he moved there, he was told there wasn't cable, there wasn't a turn pocket to get into Scholar Lane, and Portola Avenue and Gerald For Drive were two-lane roads. He's heard there is talk about punching Monterey Avenue through to the freeway, which probably won't happen in his life time. He felt there was a better place to put apartments, because the area was all residential with families, and they want to keep it that way. He said residents had already lost money on their home, because of the housing market, and although staff said there are no bids or plans to build on the property at this time, the potential was there. He questioned why the City Council was even going through this process when Commissioner Tanner opposed it. Mayor Spiegel explained there are five Commissioners on the Planning Commission, just like there are five people on the City Council, and evidently, the Planning Commission had a majority that approved it. Councilmember Finerty said the staff report indicated it was a 5-0 vote, but her recollection is that it was a 4-1 vote. MR. BRAUNTZ said his note indicated the vote was 3-1-1. He urged the City Council to reconsider this rezoning, because there are many places in the County where these numbers can be fulfilled. MS. KAYLIE YOUNG(sp?), Scholar Lane, Palm Desert, stated she and her fiance just purchased a house on Scholar Lane, and they were looking to build a family and not live behind a low-income housing development. They chose to live in Palm Desert versus Rancho Mirage after looking at numerous houses at different cities. She came from Rancho Cucamonga, 27 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING MAY 24, 2012 which is a very established City and similar to Palm Desert. She asked the City Council to reconsider going forward with this request. MS. BUNNY HAMILL, Windflower Court, Palm Desert, stated that she and her neighbor to the west and east are strongly opposed to the zoning change. She said a letter opposing the zoning change was sent to the Council by Mr. Manfred Schmidt, which she read out loud. Mayor Spiegel acknowledged the Council had received the letter, and is on file and of record in the Office of the City Clerk. MS. DEBORAH RAFF, Windflower Court, Palm Desert, stated that in the process of trying to sell homes as discussed in the previous agenda item, it may discourage people from purchasing at Ponderosa Homes, because it's directly across the street from the proposed rezone. MR. BRAUNTZ said he forgot to mention that he never received a letter and neither did some of his other neighbors. He asked if the Council received a letter from David and Joy Miller. Mayor Spiegel answered yes. MR. BRAUNTZ went on to say he spoke to the representative from Ponderosa Homes who spoke on an earlier agenda item, and asked him if he was aware of the rezoning. The response was that he didn't care, because in another year or two Ponderosa would be built out and gone, and Mr. Brauntz felt it was unfortunate they thought that way. With no further testimony offered, Mayor Spiegel declared the public hearing closed. Councilmember Finerty stated she's been consistently opposed to high density, believed there was too much of it in the north sphere, it was unhealthy for the City, and she will continue to vote against rezoning for higher density. Councilmember Finerty moved to, by Minute Motion, deny staffs recommendation. Motion died for lack of a second. Councilmember Harnik stated she was in favor of low density; however, the bigger issue here was to comply with State Law. She said if the rezone is not approved, the City loses control, and she is not willing to give that over to the State. With the City maintaining control, the Council can vote against a development it didn't like it, otherwise the State can trump the City and approve a development. Palm Desert is currently in a position where the Planning Commission or City Council can turn down a project. She reiterated this was more about a legal issue, and it's unfortunate, because this matter had been kicked down the road long enough. M. PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING MAY 24, 2012 Councilmember Jean Benson stated people shouldn't fear hearing about high density, because you really couldn't tell where they are located in Palm Desert. In fact, those projects look good or better than some of the low density areas, because Palm Desert has maintained high standards in building them. She agreed with Councilmember Harnik's statement that if the City Council didn't like a project, it didn't have to approve it. Unfortunately, State Law requires the areas to be identified, and certainly Palm Desert has maintained exceptionally high standards, and it will continue to do so. Mayor Pro Tem Kroonen stated he was very much in sympathy with the current homeowners in that area, but to see this coming along at a late day was very troubling to him. He questioned whether this was truly an either/or situation or should the Council take more time to ponder other alternatives. He challenged staff to find some other way of resolving this without making that hard decision of either this way or that way. Mayor Spiegel said it was unfortunate the City didn't do a good job of informing the residents about what was going on, what the plans is, and why this had to be done. Additionally, he too, questioned whether or not the City will lose control if the change of zone is not approved. He requested staff set up meetings to inform residents of its plans, with the City Attorney in attendance; he said anyone was welcome to attend. Further, he directed staff to identify what it's trying to accomplish and why it needs to be done; therefore he was in favor of a continuance until staff accomplished all that was suggested. Councilmember Finerty withdrew her motion and moved to, by Minute Motion, continue this item to a date uncertain. Motion died for lack of a second. Councilmember Harnik stated this item should be continued to the next meeting, because the City had a cut-off date. Responding to Mayor Pro Tern Kroonen's question, Mr. Bagato confirmed this was an either/or situation because the Housing Element was adopted last July, and it's an automatic noncompliance if the changes are not done within one year. Unfortunately, the residents weren't notified during the Housing Element process and this parcel could have been reevaluated at that time. He offered to meet with all the homeowners and explain what happens without the Housing Element and why this was in the best interest of the City. He said there is currently no impact on traffic or environment, because there is no project being proposed. When one does come forward, any issues can be presented at that time. He said a quick meeting can be set up with the neighborhood, but a decision needs to take place by the first meeting in June, which was his recommendation in order to allow time for a second reading. Further responding, he agreed to invite the City Attorney. 29 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING MAY 24, 2012 Mayor Spiegel moved to, by Minute Motion, continue the matter to the meeting of June 14, 2012, with staff directed in the interim to meet with surrounding residents regarding their concerns for this zone change. Motion was seconded by Kroonen and carried by a 4-1 vote, with Finerty voting NO. Mayor Spiegel stated the Council will have an opportunity to find out exactly what the residents' concerns are, and asked staff to inform him of the date of the meeting, because he would like to attend. XVIII. REPORTS AND REMARKS A. CITY MANAGER City Manager Meeting Summaries for the Period of May 2 - 15, 2012. Rec: Receive and file. With City Council concurrence, the Meeting Summaries were received and filed. 2. City Council Compensation Ad Hoc Citizens' Committee Mr. Wohlmuth reported that the first meeting of the Committee had been set for May 30, with agenda provided to the five appointed members. 3. Short-term Vacation Rentals Mr. Wohlmuth stated that Short-term Vacation Rental registration was taking place and things were looking good. He noted that T.O.T. (Transient Occupancy Tax) would not be received yet, with the off- season now underway, but it will be going forward. He affirmed that registrants were paying the $25 fee approved by City Council. 4. Palm Desert Police Mr. Wohlmuth referred back to Section 111. - Oral Communications - A, where Lt. Sullivan made a report on the Police Department's proactive approach with its Crime Analysts and new strategies to address the effects of AB 109 (Realignment - State's Release of Low-level Inmates) on the City. He personally thanked Lt. Sullivan and Capt. Vest forthe outstanding job they were doing to comprehensively review all public safety issues in Palm Desert and then making changes to better protect the residents and businesses. 30 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING MAY 24, 2012 5. CVAG General Assembly - June 25 Mr. Wohlmuth noted that the General Assembly would be held on June 25, and if Council hadn't already received the information, he would be providing it to them. It will be held at the Classic Club at 6:00 p.m., with Executive Committee Meeting prior to that time. 6. Palm Desert Waste Rates Mr. Wohlmuth took this opportunity to brag about the City's waste rates, understanding that the rate increase discussed earlierwould be addressed through AB 939 funds. However, he felt it was important to note for all concerned that Palm Desert has the lowest waste - collection charges in the Coachella Valley, anywhere between 10% - 50% below neighboring communities' charges. He said this benefit could be directly attributed to Ms. Riddle and Burrtec doing an outstanding and efficient job with waste collection here. 7. Retiring Employees Rhonda Henderson and Jay Niemczak Mr. Wohlmuth wanted to personally acknowledge and publicly thank Ms. Henderson, a nearly 27-year employee, and Mr. Niemczak, a nine-year employee, for their invaluable contributions to the City and its residents. Even though both were unable to be present this evening, he went on to say that Ms. Henderson started as a Receptionist for the City and then worked in Public Works the remainder of her career — at the Corporation Yard and in the Administration Division, and he wished her all the best in her retirement. He said Mr. Niemczak worked in Parks and now the Landscape Department, doing a good job for the City in all his endeavors, and he was wished the very best in his retirement as well. B. CITY ATTORNEY None C. CITY CLERK Request for Designation of Voting Delegates and Alternate(s) for the 2012 League of California Cities Annual Conference, September 5-7, San Diego. Ms. Klassen called attention to the material included in the agenda packet, requesting appointment of Voting Delegate and Alternate for 31 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING MAY 24, 2012 the upcoming League of California Cities Annual Conference. She was aware that Mayor Spiegel had signed up to attend, and if the Council so desired, he could be appointed the Voting Delegate, and an Alternate could be selected as well. In response to Mayor Spiegel's question, Councilmember Harnik said she also planned to attend. On a motion by Finerty, second by Spiegel, and 5-0 vote of the City Council, designated Mayor Robert A. Spiegel as the City's Voting Delegate and Councilmember Jan C. Harnik as Alternate for the 2012 League of California Cities Annual Conference, September 5-7, in San Diego. 2. Consideration of 2012 City Council Summer Meeting Schedule. Mayor Spiegel noted that in past summers, the Council typically holds the first regular meeting in July then goes dark, conducting the second regular meeting in August. He asked his colleagues if they would like to observe the same schedule this summer. Upon a motion by Kroonen, second by Finerty, and 5-0 vote of the City Council, directed staff to plan on conducting the first regular meeting in July (July 12) and the second regular meeting in August (August 23), with the other two regular meetings in between to be canceled, with the understanding that if matters come up that need to be addressed, those meeting dates will be utilized. D. PUBLIC SAFETY 1. Fire Department None 2. Police Department Please refer to Section Ill. - Oral Communications -A for a reportfrom Lt. Sullivan. E. MAYOR AND MEMBERS OF THE CITY COUNCIL 1. City Council Requests for Action: None 32 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING MAY 24, 2012 2. City Council Consideration of Travel Requests and Reports: a) ICSC — Councilmember Harnik reported that she and Economic Development Manager Ruth Ann Moore traveled to the International Council of Shopping Centers - Real Estate Convention in Las Vegas. She said the event draws all the shopping centers, malls, new retailers, and restaurants together. Palm Desert has a lot of great things underway in its shopping centers, new retailers coming in, and when it was appropriate to make announcements, she was sure the Mayor would do so. 3. City Council Committee Reports: a) Art In Public Places — Mayor Pro Tem Kroonen commented that the Dalmatian Sculpture was now in place on the median in front of the Historical Society of Palm Desert. He said it was a fascinating and fun piece and hoped everyone would take the opportunity to walk or drive by the new piece. b) SunLine Transit Agency Mayor Spiegel stated that with regard to current reports that people on the Board of Directors are out of touch, it was absolutely not true. He attended a meeting yesterday where the Board went over the entire bus driver and mechanic problem, made some changes in what was being offered, and he felt it would all be resolved very quickly without interruption to bus service. 4. City Council Comments: a) Palm Desert Sister Cities Foundation — Mayor Pro Tem Kroonen expressed commendations to the Foundation for the award it received from Sister Cities International. He said Palm Desert's school exchange program with Gisborne, New Zealand, was recognized, which reflected and involved the fine work of Jordan Romero from Big Bear — first person his age to climb the highest peak on every continent — a remarkable young man and remarkable achievement. b) Salton Sea Recreation Area — Mayor Pro Tem Kroonen said he wanted to comment on the presentation made by Salton Sea Recreation Area representatives earlier at this meeting under Section VilI. - Oral Communications - B-1. and B-2, hoping that the City will give some serious consideration 33 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING MAY 24, 2012 to the request at some point in the future. He felt it would be an important thing to do. c) Lincoln Elementary After School Graduation — Mayor Spiegel reported that he and Ms. Riddle attended the Graduation event at Lincoln Elementary. He said there was a group of the kids that performed a dancing demonstration, for which they had been selected to participate in a competition final in the Indio area. Additionally, there was a fashion show, and it occurred to him that maybe kids from Lincoln and other schools could be involved in future Fashion Weeks on El Paseo under the big, white tent. He asked Marketing and Tourism Manager Donna Gomez to include this in her planning for the coming year. 5. Suggested Items for Future City Council Meeting Agendas: None XIX. ADJOURNMENT On a motion by Finerty, second by Kroonen, and 5-0 vote of the City Council, Mayor Spiegel adjourned the meeting at 5:58 p.m. ATTEST: RACHELLE D. KLASSEN, CITY CLERK CITY OF PALM DESERT, CALIFORNIA ROBERT A. SPIEGEL, MAYOR 0