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HomeMy WebLinkAboutPreliminary Minutes - City Council - June 14, 2012DRAFT X PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING THURSDAY, JUNE 14, 2012 CIVIC CENTER COUNCIL CHAMBER 73510 FRED WARING DRIVE, PALM DESERT, CA 92260 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 Paul S. Gibson, Director of Finance/City Treasurer Janet M. Moore, Director of Housing Mark Greenwood, Director of Public Works Frankie Riddle, Director of Special Programs Bill Hunley, Battalion Chief, Palm Desert Fire/Riverside Co. Fire Dept./CalFire Neal Stephenson, Fire Specialist, Palm Desert Fire/Riverside Co. Fire Dept./CalFire 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 JUNE 14, 2012 A. Conference with Real Property Negotiator pursuant to Government Code Section 54956.8: 1) Property: Lease Property - Parkview Professional Office Complex, 73710 Fred Waring Drive, Suite No. 112, Palm Desert Negotiating Parties: Agency: John M. Wohlmuth/Paul S. Gibson/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 Mr. Erwin asked the City Council's consideration of adding an item for Closed Session, of which circumstances had presented themselves following posting of the agenda, as follows: C. Conference with Legal Counsel regarding existing litigation pursuant to Government Code Section 54956.9(a): 1. Sierra Club, et al., v. City of Palm Desert, et al., and Cornishe of Bighorn, LLC, Court of Appeal of the State of California, Fourth Appellate District, Division Two, Case No. E052300 (Superior Court Case No. INC084911) Upon a motion by Spiegel, second by Kroonen, and 5-0 vote of the City Council, the aforementioned case of existing litigation was added to the agenda. On a motion by Kroonen, second by Harnik, 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 - Mayor Pro Tem William R. Kroonen VII. INVOCATION - Councilmember Jean M. Benson K PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 14, 2012 Vill. ORAL COMMUNICATIONS - B A. PRESENTATION OF ANIMAL ADOPTION FEATURE. MR. TOM SNYDER, Animal Samaritans, presented "Lena," a six -month -old Labrador Retriever -mix female pup available for adoption at their facility, and she was all alone there now that her brother was recently adopted. He stated that they'd just had a very successful week with the Adoption Alliance, after rescuing 17 dogs from the Coachella Valley Animal Campus to a rescue group in Van Nuys, California. On average, their group is proud to save over 100 dogs and cats each month at a cost of about $53/animal versus euthanizing an animal at a cost of hundreds of dollars. Last year the Adoption Alliance received about $40,000 in grant funding from the various Coachella Valley cities, with over 1,000 adoptions since April 2011 and being on target to exceed that number in 2012. However, they needed help. Funding was due to run out in about 45 days, and they have a staff member who coordinates with rescue groups and no -kill shelters around the country and Canada, like Animal Samaritans. Councilmember Finerty noted that while the City Council hasn't voted on their final 2012-2013 Budget yet, it has committed to $20,000, which is the same contribution as before, toward the Animal Campus Adoption Coordinator. She added that Palm Desert was encouraging other cities to participate as well. B. GENERAL ORAL COMMUNICATIONS. MS. ROBIN BROWN, Portola Country Club, Palm Desert, said she was a 10-year resident of the City. She commented that Portola Country Club was a 55+ housing development built about the same time Palm Desert incorporated, and her residence was a manufactured home built in 1978. In the past year, their development has seen a lot of homes purchased by Canadians; some of the buyers have spent over $100,000 remodeling their homes — apparently, permits not required. Alternatively, she said some of the buyers have gone the other way — enclosing front porches with pink insulation, making them look like a homeless encampment. She noted that they'd complained to their Board of Directors, the City, and to Site Manager, Joyce Witten (sp?) of the Management Trust, all to no avail. She contacted the California Department of Housing and Community Development (HCD); they clarified who provides permits and inspection regarding her country club. She also met with Pedro Rodriguez and Russell Grance, City Code Compliance and Building & Safety Departments, respectively. She noted that Mr. Grance was able to inform Code Compliance that, indeed, the City had 3 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 14, 2012 responsibility for exteriors of the homes in the development, and HCD was responsible for the interiors. When Mr. Rodriguez then met with Site Manager Ms. Witten, he was treated in a surly manner, which is what she faced every day there. She added that of the nine homes surrounding hers, four were out of compliance with the CC&Rs. She expressed appreciation to Code Compliance Officers Shawn Kilpatrick and Michael Adkins for their recent work to help make her neighborhood a safer place to live. Mayor Spiegel commented that he'd received Ms. Brown's letterto the City and had responded with a letter today, adding that he felt she would see changes in her neighborhood as a result. IX. AWARDS, PRESENTATIONS, AND APPOINTMENTS A. PRESENTATION TO RECOGNIZE RETIRING CITY OF PALM DESERT EMPLOYEES MARIA ARZAGA, ROB BISHOP, TERRY CECHIN, ERNIE OWENS, KAREN PRUSINOWSKI, SAM SZYMANSKI, AND ALANA TOWNSEND. On behalf of the City Council, Mayor Spiegel and Mr. Wohlmuth recognized each of the retiring employees with an engraved certificate of appreciation, some employees unable to be in attendance for today's presentation. Mr. Wohlmuth stated with the current economy and loss of Redevelopment in the State of California, Palm Desert has had to make significant cuts in all of the City's Operations, Staffing, and Capital Improvement Budgets. This year a Retirement Incentive Program was offered to employees, with 13 of them taking this offer. He noted that as employees have been retiring in the past couple of months, they've been recognized at City Council Meetings, with today being the last before the end of the retirement window on June 15. He went on to express gratitude to each of the following employees. Maria Arzaga, Custodian, 21-year employee, who kept City Hall clean and well stocked (not present). Rob Bishop, Business License Technician, 12-year employee, hired as part of the Business Support Center, providing business license services ever since (not present). Terry Cechin, Public Works Inspector, 8-year employee, who worked on some of the City's largest projects — most recently the Aquatic Center, along with miles of street projects (not present). Ernie Owens, Parks Inspector, 22-year employee, an irrigation expert who kept the Parks in great shape. Karen Prusinowski, Secretary to the City Manager, 11-year employee, who served two City Managers, Carlos Ortega and Mr. Wohlmuth, keeping them both on track and well organized. 0 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 14, 2012 Sam Szymanski, Plan Check Manager, Building & Safety Department, 21- year employee, who provided excellent service with both her knowledge of Building & Safety and institutional knowledge of the City. Alana Townsend, Senior Management Analyst, Public Works Department, 33-year employee, who began her career in the Finance Department when City Hall was located on Prickly Pear Street off of El Paseo. She has provided excellent service to the City for these many years, along with attaining her Bachelor's Degree during her tenure, followed by a Master's Degree in Public Administration last year. Mr. Wohlmuth went on to say it was very evident that all these retiring employees with some 10, 20, and 30 years of service were dedicated to serving the citizens, community, and City Council of Palm Desert. They have made this City what it is today, and he again sincerely thanked all of them for all of their hard work and commitment to the community. He hoped those who remain will be able to continue providing the same level of excellent service. B. PRESENTATION BY MARY LOU SUTER, EXECUTIVE DIRECTOR, AND PAMELA PLICK, BOARD PRESIDENT, TO PROVIDE AN UPDATE ON ACTIVITIES, PROGRAMS, AND SERVICES PROVIDED BY THE JOSLYN CENTER. MS. SUTER and MS. PLICK addressed the City Council to express thanks for all it has done for the Center over the years and the thousands of seniors served because of this support. MS. PLICK stated that they characterized the past year for the Joslyn Center as one of transition. She said long-time Executive Director Peter Rittenhouse decided to retire in December 2011, and after an exhaustive search for his replacement, Ms. Suter was hired in late January this year. Additionally, there's been some changeover on the Board of Directors, and they've been working to expand their collaborative efforts with other non -profits in the Coachella Valley in order to expand services that Joslyn offers. She said they've also had an expansion in their program offerings, noting that they changed their name to Joslyn Center (taking out "Senior") to bring in the younger, "baby -boomer" seniors and provide new programming for them. For instance, Joslyn has formed an alliance with Jewish Family Services, which has an office space at the Center, connecting them with Meals On Wheels clients needing some companionship to the "Friendly Visitors" Program offered by Jewish Family Services. With regard to finances, she went on to say that Joslyn Center has finished the year in the black and has completed the budget for 2012-2013 at $809,300, scheduled to be reviewed and approved by the Board at its upcoming meeting. 5 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 14, 2012 MS. SUTER reported on some of the new activities at the Center, including: - Runway Fashion Show on April 4 at Rancho Las Palmas Country Club, with about 300 attendees and net proceeds of approximately $8,000. - Senior Law Day held May 5 with about 100 people attending the event hosted by the Desert Bar Association and the topic being "Legal and Financial Issues Around Long-term Care." - Mother's Day Tea was celebrated on May 10, where 100 ladies complete in all their finery enjoyed a formal tea service. - National Senior Health and Fitness Day was observed on May 30, partnering with the Arthritis Foundation for this event; 300 attended and there were 65 vendors, with keynote speaker Amy Leon, UN Ambassador for the Arthritis Foundation. - Independence Day on July 3 at the Joslyn will be celebrated with hamburgers and hotdogs from 11:30 a.m. - 2:00 p.m., armed forces personnel will be in attendance with the theme "To Thank Our Troops." Staff will be seeking donations of personal toiletries or simple thank you cards to send to military personnel. She provided copies of the fliers for the event to City Council MS. SUTER went on to say that the Center was often believed to have a lot of World War II Veterans, and it surely does; however, there are also now many Vietnam Veteran Members who weren't always thought about as often for many reasons, which led her to refer to them as the "Invisible Vets." She related that today she was speaking with David from Palm Desert, a Vietnam Vet, who had come to Joslyn because he was lonely and is now taking both a Yoga and a Meditation Class — a tough Veteran who was learning new skills to deal with and enjoy with his life at this time. She said for all those things she spoke of, the Joslyn was so very thankful to the City. MS. PLICK said in the coming year, they wanted to focus on a couple of areas. First, due to some turnover, they were looking for additional Board Members, and she asked City Council to feel free to recommend anyone they felt would be good candidates. She noted that she'd served as Interim Board President, taking over after the previous president stepped down in January, and she will be assuming her own term as President at the end of the month. They wished to grow the Board by bringing on the right expertise that will help the Joslyn get to the next level, hoping to be able to finance their new building within the next five years. They also hoped to increase their collaborations with their other partners and continue to improve and expand their programs. As Palm Desert's appointed representative, she wanted City Council to knowthey are protecting their investment and working hard to achieve their goal — enriching lives every day of all the seniors they serve. A PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 14, 2012 C. PRESENTATION BY TOM KIRK, EXECUTIVE DIRECTOR OF THE COACHELLA VALLEY ASSOCIATION OF GOVERNMENTS (CVAG), ON STATUS OF GRANT APPLICATION TO THE SOUTH COAST AIR QUALITY MANAGEMENT DISTRICT (SCAQMD) FOR THE 1 e11 PROJECT. MR. KIRK briefed the City Council and residents who were in attendance or would be viewing this meeting about the Parkway 111, Whitewater River Trail, or eWay Project, as some folks have called it, a trail project down the Whitewater River. He said it was an old idea that's been spruced up, taking advantage of the Whitewater River by building a trail from Palm Springs to Coachella, with the original idea being to build a trail all the way to the Salton Sea and connect other communities as well. A few years ago the Desert Recreation District and County Open Space District commissioned a major study of the effort, looking at the engineering issues, how much it would cost, and it didn't go much further. However, conclusion of the study was that the project would be very feasible, although expensive, and would take three, four, or more decades to undertake, largely because of money. They planned to assemble the $40 million to $50 million over many decades to eventually do the project. There is a slightly different model now— assemble the money first, then make the project happen sooner. Today he also wanted to address a number of questions that Palm Desert residents and others have asked. What happens when it rains and the Whitewater River is filled with water? It hasn't happened in awhile in this desert, but it does, and the storm channel is there for a reason. The Parkway/Trail isn't built in the bottom of the Flood Control Channel but along the edge. He said Palm Desert was very familiar with the concept, because it built part of the project; a segment of it already exists near Palm Desert High School — you could travel between Civic Center and there on the Trail. Additionally, the Palm Springs Hiking/Jogging Club would confirm that you can get from Palm Springs to Rancho Mirage on the Trail along the Channel. Parts of the Project are in place presently; problem is that they are unconnected segments. Today the idea is to connect those segments and create a link between Palm Springs and Coachella that everybody could use for biking, walking, hiking, and golf carts. Who would use a golf cart? He didn't get that question in Palm Desert very often because its residents already do so. Golf carts and electric vehicles are likely to be more prevalent in the future; however, he doubted that the Trail will be full of golf carts. He anticipated it would be full of pedestrians, joggers, and bicyclists, but if it also accommodates a few golf carts, that would be great. This, too, would link Palm Desert's local system to a regional trail system. They wanted to create the freeway through the Coachella Valley for pedestrians, bikes, and electric vehicles. 7 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 14, 2012 What about the golf courses that are in the way? He said Palm Desert has also taken a step here to address that issue. In the case of Monterey Country Club, there are no plans to run a piece of concrete through that development. The plan is to go around Monterey Country Club; Palm Desert has already done that with a wonderful segment already in place on Magnesia Falls, connecting to the Civic Center and COD (College of the Desert). Where country clubs are in the way, the plan is to go around them; but if they want to be part of the Trail System, that can be accommodated too. What about it being too hot here for people to ride bikes, jog. or be outdoors? He was amazed at the amount of people he saw outside today jogging, hiking, and riding bicycles at 2:00 p.m. when he was driving. Times have changed, and 30-40 years ago we might have said that no one would go out in the middle of summer to exercise, but folks are doing it more and more now. Additionally, we're competing with markets that are doing the same, like Tucson, Phoenix, and Scottsdale, who are offering their residents and tourists these sorts of amenities. One of the most advanced systems in the world for this type of recreation is located in the U.S., in Minneapolis, which has its own set of weather problems. How are you going to do another big public sectorproiect? Mr. Kirk said this isn't a big public sector project. He pointed out that Palm Desert was a member of the Coachella Valley Association of Governments (CVAG), a small organization with a large budget and large vision. The Parkway/Trail Project would be designed and built by the private sector, just like the other projects CVAG does, such as the interchange projects on Interstate 10. CVAG has taken up the project that initiated as a Park and Recreation District idea for a number of reasons. First was the economy. The tourist industry has indicated that the two top questions visitors ask once they check in here are where can they get a bite to eat, and where can they exercise. Increasingly, market research suggests that people aren't coming to places to relax but, quite the opposite, are traveling to exercise and get outdoors. The tourist industry is a huge proponent and supporter of this project. Every major tourist organization in the Coachella Valley supports the effort and believes a project like this adds to the amenities like the golf courses, Tramway, and shopping on El Paseo, and that it will drive tourism in the Coachella Valley. Secondly, CVAG is involved because one of the biggest public health issues here is obesity and related diseases. The Centers for Disease Control says communities have to do two things to address the problem: better nutrition and opportunities for people to walk and hike that are easily accessible. Thirdly, CVAG was involved because of its number one transportation challenge — Highway 111 in February each year. The Highway's been expanded several times and probably could be expanded again, but doing so may have a detrimental effect on the Valley's small-town character. There needs to be a way for people to get around without getting n PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 14, 2012 on Highway 111, and while it won't alleviate all the traffic on Highway 111, it will relieve some of the traffic in the most important time of year to do so — winter, spring, and late fall. MR. KIRK went on to saythe project was estimated to cost $70 million, which comparatively would represent about two interchanges on Interstate 10 (e.g. Jefferson Interchange will be about $55 million). However, the Parkway/Trail Project was one of regional benefit affecting all cities. Thanks to local support, $32 million has been assembled in six months. CVAG has contributed $20 million through the Transportation Committee; Desert Healthcare District has contributed $10 million because of its number one challenge being obesity; and another $2 million of grants has been assembled that will help answer the questions of how much it will really cost and how the project will be configured over/under the various streets. Planning, engineering, and environmental analysis will be the next steps in the process over the next two years. He said the most controversial part of the project, of which Palm Desert has already built parts, is application to the South Coast Air Quality Management District (SCAQMD) for Air Quality Funds, and ironically, the project was only controversial in the Coachella Valley. In talking to SCAQMD, they said their biggest challenge in Southern California as a whole is getting people out of cars, and they support these types of projects. Sacramento says their biggest emerging air quality challenge is greenhouse gases, with Coachella Valley's number one contributor to them being passenger vehicles. There are air quality benefits to the project; SCAQMD will be reviewing CVAG's proposal along with many others, and he felt a number of proposals will be approved. He said with the $32 million match being put up so far, it was hoped that up to $40 million of funding would be approved from SCAQMD, and he felt the other projects would be approved too, noting that he supported many of them. Lastly, he said when Supervisor John Benoit and others first talked about the opportunity of the Sentinel Air Quality Fund, they were concerned that if the $50+ million was taken to do what has always been done — getting a new alternative -fuel vehicle or installing some more solar — whether or not the public would be proud of that investment after 20-30 years and whether or not it would have a long-term impact on the Coachella Valley's economy, public health, and transportation. Theywanted to make a long-term, possibly permanent, investment and create what could be a game -changer for the Coachella Valley. He looked forward to Palm Desert's continued support and commended its staff for the assistance provided thus far. He offered to answer any questions. X. CONSENT CALENDAR A. MINUTES of the Regular City Council Meeting of May 24, 2012. Rec: Approve as presented. �61 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 14, 2012 B. CLAIMS AND DEMANDS AGAINST THE CITY TREASURY - Warrant Nos. 259, 260, 265, 266, 270, 271, and 276. Rec: Approve as presented. C. CLAIM AGAINST THE CITY (#707) by the Estate of Frank Nero Tanuvasa in an Amount in Excess of $25,000. Rec: By Minute Motion, reject the Claim and direct the City Clerk to so notify the Claimants. D. CLAIM AGAINST THE CITY (#708) by Jose C. Rojo in an Amount No Less Than $100,000. Rec: By Minute Motion, reject the Claim and direct the City Clerk to so notify the Claimant. E. APPLICATION FOR ALCOHOLIC BEVERAGE LICENSE by Sam's Club #6609, 34-220 Monterey Avenue, Palm Desert. Rec: Receive and file. F. APPLICATION FOR ALCOHOLIC BEVERAGE LICENSE by Water's Edge Pool Bar, 1091 Pinehurst Lane, Palm Desert. Rec: Receive and file. G. PARKS & RECREATION COMMISSION MINUTES for the Meeting of April 3, 2012. Rec: Receive and file. H. REQUEST FOR AUTHORIZATION to Review the City's Conflict of Interest Code. Rec: By Minute Motion, authorize staff to make a formal review of the City's Conflict of Interest Code, pursuant to the Political Reform Act and, if necessary at the appropriate time thereafter, prepare a resolution to be adopted by the City Council to effect the required amendments. 10 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 14, 2012 I. REQUEST FOR APPROVAL of the Streamlined Use of Vendors for the Special Programs Department for Fiscal Year 2012-2013 by Granting an Exception to Bidding Requirements in Section 3.32.090 of the Palm Desert Municipal Code. Rec: By Minute Motion: 1) Grant an exception to the bidding requirements, as provided for by Section 3.32.090 of the Palm Desert Municipal Code, for the Special Programs Department - FY 2012-2013; 2) approve the Special Programs/Events Vendor List for FY 2012-2013 as presented. J. REQUEST FOR APPROVAL of a Memorandum of Understanding (MOU) Between Community Connect (formerly the Volunteer Center of Riverside County) and the City of Palm Desert to Participate in the 2-1-1 Riverside County Program (Contract No. C31890). Rec: By Minute Motion: 1) Authorize the Mayor to execute the subject MOU between Community Connect (formerly the Volunteer Center of Riverside County) and the City to participate in the 2-1-1 Riverside County Information and Referral Program; 2) authorize expenditure of funds for same in an amount not to exceed $7,500 from Account No. 110-4132-411-3090. K. REQUEST FOR AUTHORIZATION to Refund Building Permit Fees for a Project at 73-101 Highway 111 (Permit No. 12-55361) (Just LLC/Best Signs, Inc., Applicant). Rec: By Minute Motion, authorize a refund of Building Permit Fees in the amount of $103.50 for Permit No. 12-55361 for a project located at 73-101 Highway 111. L. REQUEST FOR EXTENSION of Professional Service Contracts for Building and Safety Plan Review Services - Fiscal Year 2012-2013. Rec: By Minute Motion, approve extension of Professional Service Agreements with: 1) Scott Fazekas & Associates, Irvine, California (Contract No. C30941A); 2) Willdan Engineering, San Bernardino, California (Contract No. C30941 B); 3) JAS Pacific, Upland, California (Contract No. C30941 C) — for Building Plan Review Services in a total amount not to exceed $30,000 for all contracts from funds available in the FY 2012-2013 Budget, Account No. 110-4420-422-3010. 11 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 14, 2012 M. REQUEST FOR APPROVAL of the Use of Specified Vendors to Provide Equipment Rental Services for Fiscal Year 2012-2013. Rec: By Minute Motion, approve use of Elms Equipment Rental, Inc., Indio, California; Clairemont Equipment Rental, Indio, California; Hertz Rental, Indio, California; Johnson Rental Service, Indio, California; and United Rentals, Cathedral City, California —to provide equipment rental services FY 2012-2013 — funds are available in General Fund Account No. 110-4310-433-3430 - Construction Equipment Rental N. REQUEST FOR AWARD OF PURCHASE of Irrigation Supplies on an As -needed Basis to John Deere Landscapes in an Amount Not to Exceed $25,000 (Project No. 911-12). Rec: By Minute Motion, award the Purchase of Irrigation Supplies on an as -needed basis to John Deere Landscapes, Palm Desert, California, in an amount not to exceed $25,000 — funds are available in General Fund Account Nos. 110-4610-453-3320 - RIM Landscape Services, 110-4611-453-3320 - R/M Landscape Services,110-4611-453-3371 - Tri-Cities Sports Facility, and 110-4614-453-3370 - R/M Medians. O. REQUEST FOR APPROVAL of Second One-year Extension of Contract with Courtmaster Sports, Inc., for Sports Courts Cleaning Services in the Amount of $14,661.82 (Contract No. C29832). Rec: By Minute Motion: 1) Approve the subject one-year contract extension with Courtmaster Sports, Inc., North Palm Springs, California, for Sports Court Cleaning Services in the amount of $14,661.82; 2) authorize the Mayor to execute said contract — funds are available in General Fund Account Nos. 110-4611-453-3325 - R/M Other and 110-4610-453-3321 - R/M Civic Center Park. P. REQUEST FOR APPROVAL of Change Order No. 1 in the Amount of $18,085 to Contract No. C30700 — Chemical Acquisition at the Palm Desert Aquatic Center. Rec: By Minute Motion: 1) Approve Change Order No. 1 in the amount of $18,085 to the subject contract with Knorr Systems, Inc., Santa Ana, California; 2) authorize the Mayor to execute Change Order No. 1 — funds are available in Account No. 242-454-9454-2111 - Aquatic Center Chemicals. 12 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 14, 2012 Q. REQUEST FOR AUTHORIZATION to Release Security for Precise Plan No. 05-29 - Spyder Circle and Dinah Shore Drive (PVJ Associates, LLC, Applicant). Rec: By Minute Motion, authorize release of the security for Case No. PP 05-29 (PVJ Showroom). R. REQUEST FOR AUTHORIZATION to Release Security for Precise Plan No. 06-01 -The Vineyards, Located on Cook Street Between University Park Drive and Frank Sinatra Drive (Sinatra & Cook Project, LLC, Applicant). Rec: By Minute Motion, authorize release of the security for Case No. PP 06-01 - The Vineyards. S. REQUEST FOR APPROVAL of Exemptions from Palm Desert Municipal Code Sections 9.58.010 and 9.58.020 in Connection with Receptions for Art Exhibitions to be Held in the Palm Desert Community Gallery Between July 2012 and June 2013. Rec: By Minute Motion, approve exemptions from Palm Desert Municipal Code Sections 9.58.010 and 9.58.020 in connection with the opening receptions for Art Exhibitions to be held in the Palm Desert Community Gallery between July 2012 and June 2013: 1) July 9, 2012, for Lorraine Klotz and Ed Seeberger; 2) September 24, 2012, for Ryan Campbell, Mario Pikus, and Richard Rowland; 3) December 10, 2012, for Dennis Johnson, George Kenton, and Christina Lange; 4) April 22, 2013, for Ronald Backer. T. CONSIDERATION of Legislative Review Committee Recommendation to Provide a Letter of Opposition to AB 2312 (Ammiano) - Medical Marijuana Regulation. Rec: By Minute Motion, concurwith the recommendation of the Legislative Review Committee and authorize the Mayor to send a letter of opposition to AB 2312 (Ammiano). 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 None 13 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 14, 2012 XII. RESOLUTIONS A. RESOLUTION NO. 2012 - 32A - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, APPROVING THE NEW ADJUSTED RATE SCHEDULE OF FEES (EXHIBIT 3 FOR RESIDENT, COMMERCIAL, AND ROLL -OFF) FOR THE COLLECTION, RECYCLING, AND DISPOSAL OF MUNICIPAL SOLID WASTE AND RESIDENTIAL/COMMERCIAL RECYCLING CONTAINED IN CONTRACT NO. C27410 - SOLID WASTE MANAGEMENT SERVICES. Mayor Spiegel stated this item was discussed at the last meeting, and approval of the proposed Resolution meant the City will absorb the rate increase. Ms. Riddle concurred. Councilmember Harnik moved to waive further reading and adopt Resolution No. 2012- 32A. Motion was seconded by Kroonen and carried by a 5-0 vote. B. RESOLUTION NO. 2012 - 36 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, APPROVING AND AUTHORIZING THE EXECUTION AND DELIVERY OF A FIRST AMENDMENT TO REIMBURSEMENT AGREEMENT WITH RESPECT TO THE PALM DESERT FINANCING AUTHORITY'S ENERGY INDEPENDENCE PROGRAM, VARIABLE RATE DEMAND LEASE REVENUE BONDS, SERIES 2009 (FEDERALLY TAXABLE). Councilmember Finerty moved to waive further reading and adopt Resolution No. 2012 - 36. Motion was seconded by Kroonen and carried by a 5-0 vote. XIII. ORDINANCES A. For Introduction: None B. For Adoption: None 14 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 14, 2012 XIV. NEW BUSINESS A. CONSIDERATION OF THE APPROVAL OF AN ENCROACHMENT INTO THE PUBLIC RIGHT-OF-WAY FOR OUTDOOR SEATING LOCATED AT 73-520 EL PASEO (APN 627-211-024), Case No. MISC 12-78, (John Wessman, Applicant). Ms. Aylaiari stated the Applicant requested Facade Enhancement assistance at the last City Council meeting for the renovation of a restaurant on El Paseo, and it was approved. At that time, the Applicant raised the question about an encroachment into the public right-of-way for seating. Staff reviewed the issue and is asking the Council to deny the encroachment until they have studied the matter further. The delay won't impact the Applicant's planned construction, because this was something that could be appended later by an addition of a railing. Additionally, the City Manager has directed staff with investigating a number of successful pedestrian environments in other upscale tourist oriented communities to look at developing design standards that could apply to El Paseo; staff was given a four -month window to research. Staff would like to provide guidelines for Mr. Wessman's restaurant and any others on El Paseo that meet the criteria to amplify their patio dining, but also ensure that any encroachment will not impact public safety or narrow the sidewalks to a corridor that is the anthesis of what it was trying to create, which was a comfortable and safe pedestrian experience. Other items to research included site furnishings, barricades or barriers that would enclose dining patios, signage, etc., and return to the City Council with a recommendation in the early fall. Councilmember Finerty moved to, by Minute Motion, deny the Applicant's request at this time. Motion was seconded by Kroonen. Councilmember Harnik requested amending the motion to include staff bringing forth a comprehensive plan for outdoor seating on El Paseo no later than the first City Council meeting in October 2012. Responding to question, Ms. Aylaian clarified staff was recommending denial of the Applicant's request at this time, and with Councilmember Harnik's addition to the motion, staff will return with a recommendation for guidelines by October 11, 2012. Councilmember Finerty amended her motion to deny the Applicant's request at this time with additional direction to staff to return with the recommended guidelines for sidewalks in pedestrian -friendly commercial zones, as proposed, by the meeting of October 11, 2012. Motion was seconded by Kroonen and carried by a 5-0 vote. 15 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 14, 2012 B. REQUEST FOR APPROVAL OF FUNDS FOR ANNUAL COMPUTER SOFTWARE MAINTENANCE WITH SUNGARD PUBLIC SECTOR IN THE AMOUNT OF $55,657.04. Councilmember Finerty moved to, by Minute Motion, approve payment to SunGard Public Sector in the amount of $55,657.04 to provide computer software maintenance for one year —funds are available in Account No. 110-4190-415-3360. Motion was seconded by Kroonen. Mayor Spiegel asked if this item had anything to do with getting the City closer to providing on-line services for payment of business licenses. Information Systems Manager Clayton Von Helf responded this was the maintenance for that software. The City is currently upgrading the computer software and will upload it to the various departments starting in March 2013; therefore, on-line services won't be available until 2014. Mayor Spiegel called for the vote, and the motion carried on a 5-0 vote. C. REQUEST FOR AWARD OF CONTRACT TO DBX, INC., IN THE AMOUNT OF $159,093 FOR TRAFFIC SIGNAL MODIFICATIONS ON FRED WARING DRIVE AT SAN PASCUAL AVENUE (CONTRACT NO. C23480A, PROJECT NO. 566-05). Mr. Greenwood noted the staff report and offered to answer any questions. Mayor Pro Tern Kroonen moved to, by Minute Motion: 1) Award the subject contract for Traffic Signal Modifications on Fred Waring Drive at San Pascual Avenue to DBX, Inc., Temecula, California, in the amount of $159,093; 2) authorize the Director of Finance to set aside a 10% contingency for the project in the amount of $15,909.30; 3) authorize the Mayor to execute said contract —funds are available in Account No. 234-4276-422-4001 - Traffic Signal Public Safety - no General Fund money being used. Motion was seconded by Finerty. Councilmember Finerty stated she was pleased the only cost to the City was approximately $16,000. Mayor Spiegel called for the vote, and the motion carried by a 5-0 vote. 16 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 14, 2012 D. REQUEST FOR APPROVAL OF REIMBURSEMENT AGREEMENT WITH THE COUNTY OF RIVERSIDE FOR THE PAVING OF CAHUILLA WAY (CONTRACT NO. C31900). Mayor Spiegel stated the County is planning on paving their parts of the streets, and Palm Desert was responsible for a small portion, which they will pave as well. Councilmember Harnik suggested capping the estimated cost by stating, "In an amount not to exceed $113,000." Mr. Greenwood agreed that limiting the amount was a good idea, but asked that it be capped at $120,000 in case the contract came in higher. Councilmember Harnik moved to, by Minute Motion, approve of and authorize the Mayor to execute the subject Reimbursement Agreement with the County of Riverside for the paving of Cahuilla Way in an amount not to exceed $120,000 — funds are available in Account No. 110-4311-433-3320 - Street Maintenance. Motion was seconded by Finerty. Councilmember Finerty commented the County was the lead agency on this and with their budget constraints, they will be looking for the best possible deal. Mayor Spiegel called for the vote, and the motion carried by a 5-0 vote. E. REQUEST FOR APPROVAL OF REIMBURSEMENT AGREEMENT WITH THE COACHELLA VALLEY WATER DISTRICT (CVWD) FOR THE ADJUSTMENT OF VALVE AND MANHOLE COVERS (CONTRACT NO. C31910). Mr. Greenwood stated approval of this contract will allow CVWD to reimburse the City for the cost of adjusting manholes and valves on City paving projects; in the past, the City had absorbed that cost. Responding to question, he said CVWD has been conforming to this agreement this year. He went on to say CVWD had the choice of having the City's contractor do the work with them reimbursing the actual cost, or them doing the work with their own forces. Councilmember Finerty moved to, by Minute Motion, approve of and authorize the Mayor to execute the subject Reimbursement Agreement with Coachella Valley Water District for the Adjustment of Valve and Manhole Covers. Responding to question regarding the spot near the stop sign on San Pablo, Mr. Greenwood explained the asphalt was replaced with a patch of concrete. 17 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 14, 2012 F. REQUEST FOR SELECTION OF EITHER "DESERT MELODIES" OR "ASCENSION" FOR PURCHASE FROM THE 2011/2012 EL PASEO INVITATIONAL EXHIBITION FOR PLACEMENT ON THE VACANT ART PAD ON EL PASEO JUST WEST OF HIGHWAY 74. Councilmember Benson moved to, by Minute Motion, select "Ascension" for purchase from the 2011/2012 El Paseo Invitational Exhibition for placement on the vacant art pad on El Paseo just west of Highway 74 — funds are available in Account No. 436-4650-454-4001. Motion was seconded by Kroonen. Mayor Spiegel pointed out that Art in Public Places Commission selected "Desert Melodies." Councilmember Finerty asked if her colleagues were trying to save $1,000 by selecting "Desert Melodies," because "Ascension" was $1,400 exclusive of taxes, and "Desert Melodies" was not $20,000 but $1,500; the artist offered it at a reduced rate. Public Art Coordinator Deborah L. Schwartz stated the AIPP looked at a few pieces, and "Desert Melodies" was their first choice, but either one was under budget. Further responding, she concurred with the AIPP recommendation, because it was a better selection for the location. Councilmember Harnik commented that she would defer to the AIPP recommendation, because that's the purpose of the Commission. Councilmember Benson stated she felt the sharpness of the pieces sticking out of "Desert Melodies" may harm the children coming around it. Ms. Schwartz responded there were no sharp edges, everything was rounded, and the different sections were welded together and couldn't be pulled apart. Further responding, she confirmed funds came from builders who paid into the fund. Councilmember Finerty stated that since builders were having such a difficult time, she would rather give them back their money, because she felt there was already enough artwork throughout the City. Additionally, every time a piece is purchased, the City had to maintain it, thereby costing more money. Ms. Schwartz explained this was money that had been collected over several years and has been in the fund for several years. Mayor Spiegel called for the vote, and the motion carried on a 3-2 vote, with Finerty and Spiegel voting NO. PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 14, 2012 G. CONSIDERATION OF REQUEST FOR FUNDING FROM THE SEA AND DESERT INTERPRETIVE ASSOCIATION (SDIA). Councilmember Finerty stated this issue was discussed today at Coachella Valley Association of Governments (CVAG), and there was extensive talk about the amount of money already spent. She said whatever amount the cities can put together will not begin to address the problem, because it was gigantic. MR. BILL MEISTER, SDIA President, said the funding request was for the State Park and not the Salton Sea itself. He said other cities had been concerned about what happens if they are unsuccessful in obtaining a signed contract and whether funds would be returned. He said the answer was yes, stating funds wouldn't be forwarded until there was a signed contract. Councilmember Finerty said she understood this was a tall order and knew Federal Government assistance was needed to save the Salton Sea, and even though this item was about the State Park, she was looking at the area in total. MR. MEISTER said the purpose of the Park is to keep people's awareness about the Salton Sea, because their main focus and mission is to provide education interpretive to more than 120,000 a year, which included students and residents throughout the Coachella Valley. He feared that if the Park was closed, this venue of public awareness will no longer be available, and it would be a situation of "out of sight, out of mind"; therein lies an important aspect of saving the Salton Sea itself. Councilmember Benson moved to, by Minute Motion: 1) Approve the contribution of $10,000 to fund the Sea and Desert Interpretive Association's request to match the California State Parks Foundation effort to keep the Salton Sea State Recreation Area open after June 2012, subject to the recipient's successful negotiation of its agreement with the State Parks Foundation; 2) allocate $10,000 from the General Fund Community Contingency to fund the contribution. Motion was seconded by Kroonen. Councilmember Harnik stated that if the City had $10,000 from the General Fund Community Contingency, and if in fact was not used, it would make sense to put it aside and invest for some day when it can do something with the Salton Sea. Mayor Spiegel said SDIA can always come back to Palm Desert on another request. Councilmember Harnik agreed, but if the funds are allocated now, she feared they will be redirected. PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 14, 2012 Mayor Pro Tern Kroonen said he felt the Council should take a proactive and optimistic action that the funds will be raised. He said it appeared the SDIA had gone a long way down the trail toward that goal, and the City should show its support. Mayor Spiegel called for the vote, and the motion carried by a 5-0 vote. XV. CONTINUED BUSINESS A. REQUEST FOR APPROVAL OF CHANGE OF ZONE FROM PLANNED RESIDENTIAL - FIVE DWELLING UNITS PER ACRE (PR 5) TO PLANNED RESIDENTIAL -20 DWELLING UNITS PERACRE (PR20) FOR THE AREA DESCRIBED IN EXHIBIT "A" OF THE ACCOMPANYING STAFF REPORT, IN COMPLIANCE WITH STATE LAW AND THE APPROVED HOUSING ELEMENT (APN 694-310-005), Case No. C/Z 12-76 (City of Palm Desert, Applicant) (Continued from the meeting of May 24, 2012). Ms. Aylaian stated staff revised the recommendation from the previous meeting when it discussed a proposed change of zone from five dwelling units per acre up to 22 dwelling units to bring the City into compliance with the Housing Element of the General Plan. In the big picture, the City had a number of sites that needed to be rezoned in order to comply with the requirements of the State Department of Housing and Community Development; staff already approved and rezoned 21 properties. At the last meeting, a number of residents from Scholar Lane and Windflower Court objected to the proposed rezone. What is being presented today is as a result of a meeting that was held with concerned residents, two Councilmembers, and legal counsel. Staff retracted the area that was closest to the residents homes and consolidated from 38 acres to 28 acres. The second part of the recommendation is for Council to direct staff to work with the community on the upcoming Housing. Element Update, which is due in October 2014; funds are included in the Fiscal Year Budget beginning July 1, 2012. Staff is asking the Council to direct staff to work with the residents to find a way to address this issue and perhaps reduced it in size further or reduce the density and not depend on it generating a number of housing units that are currently called for. Mayor Spiegel asked if there was enough room in the area around Costco to put in the required number of units for low and moderate income housing. Ms. Aylaian answered yes, stating there was actually a couple of opportunities, including other areas being considered in the next Housing Element cycle. 20 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 14, 2012 Mayor Spiegel said the Council didn't want any low-income housing area north of what is currently developed now. He said if the City's requirements can be met by the area adjacent to Costco, that would be satisfactory to all. Councilmember Finerty agreed; however, staff was proposing to reduce the total area by 10 acres, which was 28.36 acres multiplied by 20 units. She said the results are 572 units in a small spot, and she couldn't support that recommendation. Ms. Aylaian stated staff could potentially rezone to accommodate those units in the area next to Costco, which can be done as part of the next Housing Element Update, but it would be independent from whether Council chose to do this rezone now to keep the City in compliance. Mayor Spiegel pointed out that anyone who might want to come in and build something there, would still have to go through Architectural Review Commission, Planning Commission, and the City Council. Ms. Aylaian agreed, provided that this current rezone was approved. Councilmember Harnik asked if the proposed rezone wasn't passed, the Council was essentially voting then to relinquish its control over the Housing Element to the State. Ms. Aylaian answered yes. Mayor Pro Tem Kroonen commended the Mayor, Councilmember Harnik, and staff for taking this topic further. He commented at the last meeting that there must be a way to get around this either/or situation. He believed staff succeeded in doing that and commended them all. Councilmember Harnik stated community members stepped up and are now ready, willing, and able to be part of the rezoning effort in the next round, which was terrific. Mayor Spiegel said there was a wonderful turnout of the community at that meeting. Councilmember Finerty questioned why the subject density at this location couldn't be moved to the area near Costco now as the Mayor suggested. Ms. Aylaian explained that such a rezone requires public notice and needs to go through the Planning Commission, and couldn't be done atthis meeting or in time to keep the City in compliance with State law. Getting it done would require a General Plan Amendment, Change of Zone, and State approval of 21 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 14, 2012 the General Plan Amendment, because it would change the Housing Element; the process can take about 120 days. Councilmember Finerty asked if the process can be accomplished by the end of the year. Ms. Aylaian said it was possible. Councilmember Harnik moved to: 1) Waive further reading and pass Ordinance No. 1240A to second reading, approving Change of Zone 12-76 as described in its Exhibit "A" attached thereto; 2) By Minute Motion, direct staff to work with the surrounding residents in the next Housing Element Update cycle beginning in the fall of 2012, to restudy for down -zoning all or a portion of the area identified in the aforementioned Exhibit "A," to the extent feasible while maintaining compliance with all applicable Housing and other laws. Motion was seconded by Kroonen and carried by a 4-1 vote, with Finerty voting NO. XVI. OLD BUSINESS A. REQUEST FOR AUTHORIZATION TO NEGOTIATE A SPECIAL EVENTS PERMIT WITH MARTHA'S VILLAGE AND KITCHEN TO HOST THE 2012 MARTHA'S VILLAGE THANKSGIVING 5K ON EL PASEO. Senior Management Analyst Ryan Stendell stated he was pleased to present the Martha's Village event to El Paseo. He said the project team was in attendance and willing to provide a quick presentation. MR. VIC GAINER, Representative of Martha's Village and Kitchen, stated they have designed a course for El Paseo that precludes the necessity of going across Highway 74 or Portola Avenue. He said the two main north and south arteries would remain open during the entire time of the event. The whole event will be on El Paseo, it starts at Larkspur and moves up the walkway up Highway 74, it then loops back to Portola Avenue and one more loop up to the finish line. He said it was a flat -fast course that runners will love and spectators will enjoy, because they can see their runners fourtimes during the event. He said the course will allow them to work closely with the merchants along El Paseo. MS. JIMMICA GUESS, Representative of Martha's Village and Kitchen, stated the event will be on Thursday, November 22, 2012, starting at 8:00 a.m. and should be over at about 12:00 noon. Councilmember Finerty said it was wonderful to have a high -quality event with no sponsorship monies from the City. 22 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 14, 2012 Councilmember Finerty moved to, by Minute Motion, direct staff to negotiate a Special Events Permit with Martha's Village and Kitchen for the 2012 Martha's Village Thanksgiving Day 5K on El Paseo. Motion was seconded by Kroonen. Responding to question, Mr. Stendell confirmed Martha's Village and Kitchen was the only proposal submitted. Mayor Spiegel called for the vote, and the motion carried by a 5-0 vote. XVII. PUBLIC HEARINGS A. ADOPTION OF RESOLUTION RELATIVE TO DEVELOPMENT SERVICE FEES. Mr. Gibson stated this item was a request to increase the fees to the 2009/2010 Cost Study performed. The last increase was in 2006, which was based on the 2004/2005 actual cost. At the last meeting, Council requested a comparison of the fees with other cities, which is included in the Staff Report as Exhibit 1 and 2. Exhibit 3 illustrates the lost in revenue by not adjusting the fees every year. He noted the City of La Quinta increased their Development Impact fees at their last meeting. He spoke to Gretchen Gutierrez from the Desert Valley Builders Association, but unfortunately, she couldn't make it to this meeting. She originally sent the City an email, which is included in Council's packet. The Cost Study was sent to her a second time, because the previous administrator failed to forward it to her; however, he had an opportunity to walk her through it. He said the DVBA is having their annual meeting this evening at the Palm Springs Air Museum, but they are requesting that Palm Desert delay the increase in fees for six months. Staff believes the actual cost should be charged; otherwise, the residents will be picking up the cost with sales tax or other sources. Responding to question, he said a six-month delay would cost the City $100,000. Since 2006, the City estimated a loss of $850,000 in revenue, which excludes solar fees that have not been collected as well. Mayor Pro Tern Kroonen understood that if this increase was not adopted, there will be a strong implication to other portions of the budget from which monies will have to be transferred, which meant other functions would be backfilling the expense of the permit process. Mr. Gibson agreed. Mayor Spiegel said in other words, this increase was included in the Budget. Councilmember Finerty said the City has tried its best to accommodate the builders to the tune of $850,000 to date, and a delay of six months would bring it to $950,000, and given the City's own budget restraints with the 23 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 14, 2012 elimination of Redevelopment, it couldn't continue, stating the City had done all it could. Mayor Spiegel declared the public hearing open and invited public testimony FAVORING or OPPOSING this matter. MR. ANTUN BARBATO, Principal with Family Development, stated Ms. Gretchen Gutierrez with Desert Valley Builders Association wasn't able to attend this evening to speak to their position with regards to the increase in fees. A main part of the consideration, when discussing loss of revenue of $850,000, is the assumption that the same number of permits would have been pulled regardless of what the fees were, which is not a correct assumption. He said there is a tight margin in the building industry and a point where one breaks and it affects the number of permits pulled. He and his partners have lived in Palm Desert more than 20 years, involved in the development of more than 1,000 homes in the Coachella Valley, of which 75 of them were in the City of Palm Desert. His company is actively involved in the Villa Portofino Development on the southwest corner of Country Club Drive and Portola Avenue, and they intend to continue the development and build it out. He asked the Council to consider the impacts of the proposed increase until the conditions have improved and the building industry is in a better position to increase its contribution to the planning and building fees. While his company and DVBA recognize the fiscal challenges the City faces with continued loss of revenue, elimination of Redevelopment and its funding, the home building and construction industry continues to face tough economic challenges. In the current market where sale prices are often lower than the cost to construct the home, regardless of fees, it's easy to understand why there is little construction activity. When combining the cost to physically construct a building with the amount of fees charged on every home, it's hard to comprehend how the industry has been able to sustain itself. There is no question that the building industry creates a significant amount of jobs and is a major contributor to the local Coachella Valley economy, because without construction, jobs don't exist. He said it costs a builder well over $20,000 per home to build in the City of Palm Desert. While the increase may seem small compared to that $20,000 amount, every additional dollar is significant and could easily be the difference on whether or not to build. He said all cities are trying to figure out how to mitigate these cost and recapture some of the lost. Some cities have considered lowering their fees or provide incentives to increase building to ultimately encourage development. The theory being that it would be better to receive a lower amount, but at least have homes under construction versus higher fees of nothing. He was not suggesting the construction industry go on hold; however, it will have a negative impact on the industry and there is great potential that it will lead to fewer permits being pulled. He asked the Council to direct the Finance Director to provide a more detailed analysis. He said if one permit didn't get pulled because of the increase, it would take at least 24 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 14, 2012 an additional five new permits to make up for the revenue lost for that one. Just because a city raised its price, it didn't mean it was generating more revenue. He was not asking the Council to reduce the building fees, although he would be grateful if it did, he was asking that the increase be postponed for another six months so that the industry can have the opportunity to improve and the impact to such a fee can be better absorbed. He thanked the Council for its consideration to continue the fees at the present levels. With no further testimony offered, Mayor Spiegel declared the public hearing closed. Councilmember Finerty reiterated the loss to the City has been significant. As noted on Page 1 of the staff report, there has been no increase in revenue to keep up with the related cost for staffing both at City Hall and in the field since December 2006. She said the City has been losing money for six years while trying its best to accommodate the building industry, which was hurting as well. However, the City isn't just concerned with building, it is also concerned with funding public safety, parks, streets, etc. She said the City had been gracious enough to not increase fees for six years, but the end has been reached, and the loss of Redevelopment was the cincture for her. Councilmember Finerty moved to waive further reading and adopt Resolution No. 2012 37, amending Development Service Fees and reinstating permit fees for solar panel installation and water heater, pool pump, and HVAC inspection. Responding to question, Mr. Gibson confirmed that with pass through's, Palm Desert had the lowest fees. Further responding, he said approval of the proposed Resolution, Palm Desert will still not have the highest fees in the Coachella Valley. Councilmember Harnik agreed with Mr. Barbato's comment that the exact number of permits pulled was unknown and permits are not a profit center for the City; they are recouping fees. She said it was important to encourage homeowners and builders to install solar panels, water heaters, pool pumps, and high -efficiency HVAC systems. She proposed raising the Development Service Fees, with the exception of those green -building sorts of fees, noting that staff was working on a One -stop Development Services to streamline and expedite the process, which she thought was a lot of money to any builder. Councilmember Finerty responded that through AB 811, the City already offered loans. It also had the Pool -pump Program, which has been more successful since the FHFA ruling. It seemed the City had done a fair amount of marketing and advertising to educate people about upgrading HVAC, pool pumps, and water heaters. She said the City had reached the point now where it needed to bite the bullet. �k7 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 14, 2012 Councilmember Benson said that pulling parts from the fees was defeating the purpose. She said the City has been a good partner with the DVBA over the years and six months wasn't going to help much, because economists predict it will take two more years to get out of this slump. She can visualize that in January another six months will be requested. She agreed the City needed to bite the bullet and go ahead with it now. Mayor Spiegel said Palm Desert tries to be a business -friendly city, but it has financial problems now. He certainly didn't want to be the most expensive in the Valley, but not necessarily the cheapest either, because Palm Desert is located in the center of the Coachella Valley, which is a very desirable place. He said Palm Desert schools are the best in the Valley, and it's a nice place to raise a family; therefore, he thought it was time to move forward. Councilmember Benson seconded the motion, and it carried on a 4-1 vote, with Harnik voting NO. XVIII. REPORTS AND REMARKS A. CITY MANAGER City Manager Meeting Summaries for the Period of May 16 - June 5, 2012. Mr. Wohlmuth noted the report provided with the agenda packet and offered to answer questions. Councilmember Finerty noted Mr. Wohlmuth's May 25 telephone conference call with Diana Chuang, Richards, Watson & Gershon. She said being she had always been very involved with the AB 811 Legislation and part of the Energy Subcommittee, she requested that she be included in any future meetings concerning AB 811, PACE, or FHFA. Mr. Wohlmuth responded that he would be happy to include Councilmember Finerty in the future. He added this particular meeting involved the City's attorneys forthe matter, Richards, Watson & Gershon, as they prepare for the California Supreme Court Case. Partners in the lawsuit against FHFA - Sonoma County, others — suggested that an economist be retained in order to address FHFA's argument that the program will cause more foreclosures. He said the economist would look at the factors; he asked Richards, Watson & Gershon to look into it and offered that Palm Desert would contribute to the cost of securing the expert. With City Council concurrence, the report was received and filed. M PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 14, 2012 2. Regional Access Project (RAP) Draft Settlement Agreement Mr. Wohlmuth reported that a Settlement Agreement has been drafted for a past due amount owed to RAP. Agreement has been sent to the County for review, and it addresses what the City owes for the "Triple -flip" calculation in the past. It is hoped to be back before the City Council in the next two meetings, depending upon the length of time the County needs for its review. 3. Proposed Legislation for California State University Property Mr. Wohlmuth stated that between staff and Legislative Lobbyist Anthony Gonsalves, the City was working on a method of protecting the land around California State University, San Bernardino - Palm Desert Campus, to stay with Cal State as opposed to being sold or disposed of as part of the dissolution of the Palm Desert Redevelopment Agency. He offered to answer any questions. B. CITY ATTORNEY None C. CITY CLERK None D. PUBLIC SAFETY 1. Fire Department None 2. Police Department None E. MAYOR AND MEMBERS OF THE CITY COUNCIL City Council Requests for Action: None P% PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 14, 2012 2. City Council Consideration of Travel Requests and Reports: ►I= 3. City Council Committee Reports: a) Riverside County Transportation Commission (RCTC) — Councilmember Harnik said she just had a great meeting at RCTC, and they accepted a balanced budget that will keep good roads, overpasses, and grade separations in the County. b) Palm Desert Chamber of Commerce - Mayor Spiegel commented that City Management Analyst/P.I.O. David Hermann is being honored by the Chamber of Commerce at this year's Annual Installation and Awards Dinner coming up later in the month. He looked forward to celebrating the recognition with him at that event. 4. City Council Comments: a) Jean Benson Childcare Center Graduation — Councilmember Benson noted that she attended the Pre -Kindergarten Graduation at the Center last weekend. In tracking the aspirations of the youngsters over the years, she was disappointed that this year only one girl wanted to become a policewoman, but there were still two boys who wanted to be firemen. b) Palm Desert K-9 Trials — Councilmember Finerty recalled for her colleagues that the K-9 Trials will be held again in the City in November, and she was asked to seek two sponsors at $250 each for Palm Desert's Officer Rivera and K-9 Van Snapp. She would be donating to the cause as one of the sponsors, asking if anyone else would like to join her in this effort. c) Public Safety — Mayor Pro Tern Kroonen said on a personal note, he had a couple of occasions over the last 10 days to summon assistance from Palm Desert's Emergency Services. He was very, very impressed and appreciative of the good and quick response he received. He felt all Palm Desert residents can be very proud of the resources available in this regard. Councilmembers concurred. NEV PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 14, 2012 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 5:34 p.m. ATTEST: RACHELLE D. KLASSEN, CITY CLERK CITY OF PALM DESERT, CALIFORNIA ROBERT A. SPIEGEL, MAYOR 29