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Home My WebLink AboutPrelim - CC - 08-22-2013 DRAFT PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING THURSDAY, AUGUST 22, 2013 CIVIC CENTER COUNCIL CHAMBER 73510 FRED WARING DRIVE, PALM DESERT, CA 92260 I. CALL TO ORDER - 3:00 P.M. Mayor Harnik convened the meeting at 3:03 p.m. II. ROLL CALL Present: Mayor Pro Tem Jean M. Benson Councilman Robert A. Spiegel Councilman Van G. Tanner Councilmember Susan Marie Weber Mayor Han C. Harnik Also Present: John M. Wohlmuth, City Manager David J. Erwin, City Attorney Jill Tremblay, Assistant City Attorney Rachelle D. Klassen, City Clerk Russell Grance, Director of Building & Safety Lauri Aylaian, Director of Community Development Martin Alvarez, Director of Economic Development Paul S. Gibson, Director of Finance Janet M. Moore, Director of Housing Mark Greenwood, Director of Public Works Frankie Riddle, Director of Special Programs Bo Chen, City Engineer Stephen Y. Aryan, Risk Manager Casey Hartman, Battalion Chief, Palm Desert Fire/Riverside Co. Fire Dept./Cal Fire Bill Sullivan, Asst. Chief, Palm Desert Police/Riverside Co. Sheriff's Dept. Grace L. Mendoza, Deputy City Clerk Upon inquiry by Mayor Harnik, Ms. Klassen affirmed that the agendas for today's City Council, Successor Agency, and Housing Authority Meetings had all been posted in accordance with the Ralph M. Brown Act. PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 22, 2013 III. ORAL COMMUNICATIONS - A (CLOSED SESSION ITEMS) None - IV. ADJOURN TO CLOSED SESSION Rec�uest for Closed Session: 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. 104, Palm Desert Negotiating Parties: Agency: John M. Wohlmuth/Paul S. Gibson/City of Palm Desert Property Owner: City of Palm Desert Other Parties: Bill Houck/United Way of the Desert Under Negotiation: x Price x Terms of Payment 2) Property: APN 640-020-039 Negotiating Parties: Agency: John M. Wohlmuth/Mark Greenwood/City of Palm Desert Property Owner: Charles Amash/Waring Plaza LLC Under Negotiation: x Price x Terms of Payment 3) Property: 74719 King Fisher Circle(APN 624-440-027), Palm Desert Negotiating Parties: Agency: John M. Wohlmuth/Janet M. Moore/City of Palm Desert/ Palm Desert Housing Authority Property Owner: Jerry White and Diana M. Corica Under Negotiation: x Price x Terms of Payment 4) Property: 42148 Verdin Lane (APN 624-440-003), Palm Desert Negotiating Parties: Agency: John M. Wohlmuth/Janet M. Moore/City of Palm Desert/ Palm Desert Housing Authority Property Owner: Justin E. and Patricia Mansker Under Negotiation: x Price x Terms of Payment 5) Property: 43815 Yellow Sage Drive(APN 634-242-027), Palm Desert Negotiating Parties: Agency: John M. Wohlmuth/Janet M. Moore/City of Palm Desert/ Palm Desert Housing Authority Property Owner: Elizabeth A. Gilmore Under Negotiation: x Price x Terms of Payment 2 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 22, 2013 6) Property: 74600 King Fisher Circle(APN 624-440-014), Palm Desert Negotiating Parties: Agency: John M. Wohlmuth/Janet M. Moore/City of Palm Desert/ Palm Desert Housing Authority Property Owner: Carlos Valdez Under Negotiation: x Price x Terms of Payment 7) Property: 43990 Blueberry Lane (APN 634-061-028), Palm Desert Negotiating Parties: Agency: John M. Wohlmuth/Janet M. Moore/City of Palm Desert/ Palm Desert Housing Authority Property Owner: Gladys Harris Under Negotiation: x Price x Terms of Payment 8) Property: 74656 King Fisher Circle(APN 624-440-018), Palm Desert Negotiating Parties: Agency: John M. Wohlmuth/Janet M. Moore/City of Palm Desert/ Palm Desert Housing Authority Property Owner: Linda Pineda 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(d)(2): Number of potential cases: 2 With City Council concurrence, Mayor Harnik adjourned the meeting to Closed Session at 3:04 p.m. She reconvened the meeting at 4:02 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 - Councilman Van G. Tanner VII. INVOCATION - Mayor Jan C. Harnik VIII. ORAL COMMUNICATIONS - B None 3 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 22, 2013 IX. AWARDS, PRESENTATIONS, AND APPOINTMENTS A. PRESENTATION TO RECOGNIZE KIM SNYDER FOR HIS SERVICE TO THE CITY OF PALM DESERT AND ITS ART 1N PUBLIC PLACES COMMISSION, 2005 - 2013. On behalf of the City Council, Mayor Harnik presented an engraved crystal clock to Mr. Snyder and thanked him for his eight years of service to the Art In Public Places Commission. Mr. Snyder expressed sincere appreciation for the recognition and to the citizens of Palm Desert for the experience he'd enjoyed with the Commission, especially serving as its Chair this past year. He also noted that it was very special being able to introduce the new EI Paseo Invitational Exhibition this past year. B. PRESENTATION TO RECOGNIZE DIRECTOR OF FINANCE/CITY TREASURER PAUL S. GIBSON AND THE CITY OF PALM DESERT FINANCE DEPARTMENT FOR THEIR RECEIPT OF THE GOVERNMENT FINANCE OFFICERS ASSOCIATION OF THE UNITED STATES AND CANADA'S (GFOA'S) "CERTIFICATE OF ACHIEVEMENT FOR EXCELLENCE IN FINANCIAL REPORTING FOR THE FISCAL YEAR ENDED JUNE 30, 2012." On behalf of the City Council, Mayor Harnik offered hearty congratulations to Mr. Gibson and his staff for this prestigious recognition. X. CONSENT CALENDAR A. MINUTES of the Regular City Council Meetings of July 11, July 25, and August 8, 2013. Rec: Approve as presented. B. CLAIMS AND DEMANDS AGAINST THE CITY TREASURY - Warrant Nos. 254 and 258; 1, 4, 6, 7, 8, 12, 14, 15, 16, 18, 20, 22, 23, 25, 30, 31, 32, 33, and 35. Rec: Approve as presented. C. COMPLIANCE ANALYSIS AND INVESTMENT REPORT for the Months of May 2013 and June 2013 (Joint Consideration with the Successor Agency to the Palm Desert Redevelopment Agency). Rec: Receive and file. 4 PRELIMINARY MINUTES DRAFT _ REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 22, 2013 D. APPLICATION FOR ALCOHOLIC BEVERAGE LICENSE by Blue Orchid Thai Bistro, 73030 EI Paseo, Suite 102, Palm Desert. Rec: Receive and file. E. APPLICATION FOR ALCOHOLIC BEVERAGE LICENSE by Chez Pierre, 74040 Highway 111, Suite E, Palm Desert. Rec: Receive and file. F. APPLICATION FORALCOHOLIC BEVERAGE LICENSE bySiam Gourmet, Ltd., 72355 Highway 111, Suite A, Palm Desert. Rec: Receive and file. G. APPLICATION FOR ALCOHOLIC BEVERAGE LICENSE by Walmart Neighborhood Market #3026, 72314 Highway 111, Palm Desert. Rec: Receive and file. H. APPLICATION FOR ALCOHOLIC BEVERAGE LICENSE by Woodhaven Country Club Homeowners Association, 41555 Woodhaven Drive, Suite E, Palm Desert. Rec: Receive and file. I. CITY COMMITTEE AND COMMISSION MEETING MINUTES. 1. Art In Public Places Commission Meeting of June 19, 2013. 2. Audit, Investment & Finance Committee Meetings of May 28 and June 25, 2013. 3. Citizens' Sustainability Committee Meeting of April 29, 2013. Rec: Receive and file. J. REQUEST FOR AUTHORIZATION to Utilize Vendors on an Authorized Motorcycle Maintenance Vendors List for Repairs to City-owned Police Vehicles, Communication, Radar, and Lidar Equipment, and for Purchase of Equipment Utilized by the Motor Enforcement Team. Rec: By Minute Motion, authorize the Palm Desert Police Department to utilize vendors on the Authorized Motorcycle Maintenance Vendors List as presented in the Riverside County Sheriff's Department Memorandum dated April 19, 2013. 5 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 22, 2013 K. REQUEST FOR AUTHORIZATION to Purchase Nine (9) Motorola MC75A Mobile Ticket Writers in the Amount of$26,365.07 from MSA Systems Inc. Rec: By Minute Motion, approve the purchase of nine(9) Motorola MC75A Mobile Ticket Writers in the amount of$26,365.07 from MSA Systems Inc., San Jose, California — item approved as part of the FY 2013-2014 Police Department Budget, and funds are available in Account No. 400-4210-422-4045. L. REQUEST FOR AUTHORIZATION to Purchase Nine (9) Body Cameras in the Amount of $8,450.60 for the Palm Desert Police Department's Motor Enforcement Team. Rec: By Minute Motion, approve the purchase of nine(9)VieVU LE2 Body Cameras for the Motorcycle Enforcement Officers assigned to the City of Palm Desert in the amount of $8,450.60 — item approved as part of the FY 2013-2014 Police Department Budget, and funds are available in Account No. 400-4210-422-4045. M. REQUEST FORAUTHORIZATION to Purchase Kevlar Motorcycle Uniforms in an Amount Not to Exceed $10,000 from Motoport, Inc. Rec: By Minute Motion, approve the purchase of Kevlar motorcycle uniforms in an amount not to exceed $10,000 from Motoport, Inc., San Marcos, California— item approved as part of the FY 2013-2014 Police Department Budget, and funds are available in Account N o. 400-4210-422-4045. N. REQUEST FORAUTHORIZATION to Purchase a Fuel Management System in an Amount Not to Exceed $36,650 from Western Pump, Inc. Rec: By Minute Motion, approve the purchase of a Fuel Management System from Western Pump, Inc., in an amount not to exceed $36,650 — funds are available in Account No. 530-4195-415-4030 - Fleet Equipment Replacement. O. REQUEST FOR RENEWAL of the Contract with the Law Firm of Liebert Cassidy Whitmore (LCW) to Maintain the City's Membership in the Coachella Valley Employment Relations Consortium(Contract No.C21526). Rec: By Minute Motion, approve the subject contract renewal with Liebert Cassidy Whitmore (LCW) for membership in the Coachella Valley Employment Relations Consortium and authorize the City Manager to execute same — funds in the amount of $4,158 are available in Account No. 110-4154-415-3121. 6 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 22, 2013 P. REQUEST FOR AUTHORIZATION to Reject All Bids Received for Contract No. C32910—Country Club Drive Median Landscape Rehabilitation(Project No. 979-14) and for Staff to Re-bid the Project. Rec: By Minute Motion: 1) Reject all bids received in response to solicitation for the subject Country Club Drive Median Landscape Rehabilitation Project; 2) authorize staff to re-bid the project. Q. REQUEST FOR RATIFICATION of the City Manager's Execution of a Parking Agreement with Desert Cities Baptist Church as it Relates to Cahuilla Hills Park and Approve Amendment to Contract with Vintage Associates, Inc., to Include Maintenance of the Parking Area for Remainder of Contract Term in Landscape Maintenance Area No. 18. Rec: By Minute Motion: 1)Ratify the City Manager's Execution of a Parking Agreement with Desert Cities Baptist Church as it relates to Cahuilla Hills Park(Contract No.C33010);2)amend Contract No. C32190 with Vintage Associates, Inc., Bermuda Dunes, California — Landscape Maintenance Area No. 18 — to include maintenance of the parking area at an additional $100/month ($1,000 for remainder of contract term); 3) authorize the Mayor to execute said Contract Amendment— . funds are available in Account No. 110-4611-453-3320 - R/M Landscape Services. R. REQUEST FOR APPROVAL of Amendment No. 2 to Contract No. C28800D — Property Acquisition Services for the Free Right-turn Lane at Fred Waring Drive and Highway 111 (Project No. 658-08). Rec: By Minute Motion: 1)Approve Amendment No. 2 in the amount of$5,000 to the subject contract with Overland, Pacific & Cutler, Inc., Palm Desert, California, for right-of-way services for the Free Right-turn Lane at Fred Waring Drive and Highway 111; 2) authorize the Mayor to execute said Amendment — funds are available in Account No. 213-4384-433-4001 - Right-turn Lane - Fred Waring to Highway 111 (no General Fund money is being used). S. REQUEST FOR APPROVAL of Change Order No. 1 and Acceptance of Work for Contract No. C32050— Desert Willow Irrigation Pump Renovation (Project No. 850-13) (South West Pump & Drilling, Inc., Coachella, CA). Rec: By Minute Motion: 1) Approve Change Order No. 1 in the amount of $4,928.31 to the subject contract with South West Pump& Drilling, Inc., for the Desert Willow Irrigation Pump Renovation Project; 2) authorize the transfer of$4,928.31 from contingency to base for the project; 3)authorize the Mayor to execute Change Order No. 1; 4}accept the work as complete and authorize the City Clerk to file a Notice of Completion for the subject project. 7 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 22, 2013 T. REQUEST FOR AUTHORIZATION to Release Security for Tract No. 31020 and Accept New Security and Agreement for Same(Knightswood Ventures, LLC, Applicant). Rec: By Minute Motion, release the securityforTract No. 31020 and accept new security and agreement for same. U. REQUEST FOR APPROVAL of Out-of-State Travel for Palm Desert Visitor Center Coordinator to Attend the 2013 Las Vegas Souvenir and Resort Gift Show from September 17 - 19, 2013. Rec: By Minute Motion, authorize the Palm Desert Visitor Center Coordinator to attend the Las Vegas Souvenir and Resort Gift Show, Las Vegas, Nevada, for the period of September 17 - 19, 2013 — funds are available in Account No. 110-4419-453-3120 - Visitor Center Conference/Seminars/Workshops. V. REQUEST FOR APPROVAL of Out-of-State Travel for the Engineering Technician to Attend International Municipal Signal Association Certification Renewal Training in Las Vegas, Nevada, October 7 - 8, 2013. Rec: By Minute Motion, authorize the Engineering Technician to attend International Municipal Signal Association (IMSA) Certification Renewal Training in Las Vegas, Nevada, on October 7 - 8, 2013 — funds are available in Account No. 110-4310-433-3120 - Street Maintenance ConferencelSeminars/Workshops. W. INFORMATIONAL REPORT Related to the 2014 Slurry Seal Project (Project No. 751-14). Rec: Receive and file. Upon a motion by Tanner, second by Benson, and 5-0 vote of the City Council, the Consent Calendar was approved as presented. XI. CONSENT ITEMS HELD OVER None 8 PRELIMINARY MINUTES � DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 22, 2013 XII. RESOLUTIONS A. RESOLUTION NO. 2013 - 50 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, APPROVING THE SUBDIVISION MAP OF TRACT NO. 31490 (D. R. Horton, Applicant). Mr. Greenwood stated this Tract Map of 41 single family homes in the Ponderosa Development and staff recommended approval. Councilman Spiegel asked when construction will start on these homes. Mr. Greenwood responded builders like to get started right away; therefore, he believed construction would start in the fall. He said this was the last tract of the first phase within the Ponderosa Homes. Councilman Spiegel moved to waive further reading and adopt Resolution No. 2013-50. Motion was seconded by Benson and carried by a 5-0 vote. XIII. ORDINANCES A. For Introduction: 1. ORDINANCE NO. 1257 -AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, AMENDING SECTIONS 10.24.010, 10.24.020, 10.24.050, 10.24.080, AND 10.24.160 OF THE MUNICIPAL CODE OF THE CITY OF PALM DESERT, CALIFORNIA, REGARDING ABANDONED VEHICLES — ENFORCEMENT AND ABATEMENT. Councilman Tanner stated this was a good Ordinance and one the City should have in place. Councilman Tanner moved to waive further reading and pass Ordinance No. 1257 to second reading. Responding to question, Mr. Erwin explained staff cleaned up some areas that could have been done earlier, but there are no substantive changes to the Ordinance itself. Councilman Spiegel seconded the motion and it carried by a 5-0 vote. 9 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 22, 2013 2. ORDINANCE NO. 1258 -AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, AMENDING CHAPTER 24.04 OF THE PALM DESERT MUNICIPAL CODE, PERTAINING TO WATER-EFFICIENT LANDSCAPE GUIDELINES. Assistant Planner Kevin Swartz stated the amendments to the Municipal Code established minimum water-efficient landscape requirements for newly installed and rehabilitated landscape areas greater than 5,000 square feet. The amendments also ensure the � City is in compliance with the State. Additionally, Coachella Valley Water District(CVWD)created a water efficient landscape ordinance in compliance with the State. It is the intent of the City to defer technical irrigation review to CVWD. The City will still maintain full authority over aesthetic, pallet, spacing, and design review. Councilman Spiegel inquired about a past program that helped residents pay for drought tolerant landscaping. Mr. Wohlmuth responded in the past the City partnered with CVWD in the Turf Buy Back where the City paid $1 per square foot and CVWD matched it. The program was relatively successful, but the interest started waning and found that more people complained because the cost of the retrofit or turf elimination far exceeded the rebates. He said some homeowner associations were also part of the program. The program was not budgeted for last year or this year, because the interest is no longer there as it once was. However, Coachella Valley Association of Governments (CVAG) program through Ygrene will include a similar program as an option. Responding to question about the interest rate being offered, he said Ygrene provides private funding for energy and water-efficient programs and believed the rate was 6.34%. Councilman Tanner noted CVWD was still offering$1,000 a rebate for the front yard and $1,000 for the rear yard, stating he hoped people will utilize this type of relief in combination with Ygrene's program. Responding to question, Mr. Swartz said CVWD and the City exceeded the State Code. Councilman Tanner moved to waive further reading and pass Ordinance No. 1258 to second reading. Motion was seconded by Weber and carried by a 5-0 vote. 10 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 22, 2013 B. For Adoption: None XIV. NEW BUSINESS A. REQUEST FOR AUTHORIZATION FOR THE PALM DESERT POLICE DEPARTMENT TO PARTICIPATE IN THE POST-RELEASE ACCOUNTABILITY AND COMPLIANCE TEAMS (P.A.C.T.) PROGRAM. Mr. Aryan stated that in efforts to mitigate post realignment impacts from AB109, staff recommended Palm Desert Police Department's participation in the Post-Release Accountability and Compliance Teams(P.A.C.T),which was formed to address local impact. If approved, the Police Department will be transferring a supervisory corporal from general law enforcement patrol as a dedicated member of the EAST-PACT team, along with other members and representatives from local law enforcement agencies that will be participating. The role of this officer will be similar to that of a state parole officer that is no longer perForming these duties due to realignment. Participation in this program will result in a reimbursement of approximately $200,000 in this year's police budget; this amount was earmarked for the Police Department's participation. He said State funds will be reimbursing the City; therefore, staff recommended approval. Councilman Spiegel moved to, by Minute Motion: 1)Approve the Palm Desert Police Department's participation in the P.A.C.T. Program; 2) authorize the City Manager or his designee to execute any documents related to the City's participation in P.A.C.T.; 3) appropriate $200,000 from Fund 229 - Police Department Budget - and estimated reimbursement of$200,000 from the City's participation in the P.A.C.T. Program. Councilman Tanner asked if this was an 8-hour position seven days a week, and how will the new position be manned. Mr. Aryan explained the position will be held by a supervisor corporal and it will not diminish the current level of patrol services to the City nor current patrol beats. Lt. Sullivan said the State will pay for a full-time position (2,080 hours). Councilman Tanner seconded the motion and it carried by a 5-0 vote. 11 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 22, 2013 B. REQUEST FOR APPROVAL OF THE ANNUAL FALL 2013 CONCERT SERIES. Ms. Riddle stated staff was proposing a Fall Concert Series based on comments received from the City's survey that was sent out in January. The First Spring Series took place in May, and the Fall is proposed for October 2013. In efforts to relieve the General Fund, staff sought out partners and approached the Family YMCA who agreed to partner. She said the YMCA had actually been a partner since 2013 by sponsoring one performance each year. Starting with this year, Desert Recreation District will sponsor$5,000 for both series. She said staff recommended approval of the Fall Concert Series as outlined in the staff report. Mayor Pro Tem Benson asked about the number of people in attendance at the Spring Concert Series. Ms. Riddle responded it was about 3-to 500 hundred, stating there was good attendance at all of them, but it was in May. Generally, this series would take place in June or July, but the weather was much better in May. Councilman Spiegel thanked Ms. Riddle for putting the series together. Councilman Spiegel moved to, by Minute Motion: 1)Approve the 2013 Fall Concert Series Schedule; 2) approve Contract No. C33020A - Kelly Moneymaker (Blues) in the amount of$525; 3)approve Contract No. C33020B-Amanda Castro(Jazz)in the amount of$865; 4)approve Contract No. C33020C- David and Olivia (Americana/Country) in the amount of $625; 5) approve Contract No. C33020D - Shaken Not Stirred (Variety/Pop/Rock)in the amount of$2,000;6)approve expenditure with Studio Instrument Rentals (SIR), Palm Springs, California, for concert professional staff, instrumental equipment, sound, and/or lighting in conjunction with the concerts; 7)authorize the Mayor to execute subject contracts — funds are available in Account No. 110-4416-414-3061. Motion was seconded by Weber and carried by a 5-0 vote. C. REQUEST FOR APPROVAL OF PALM SPRINGS ART MUSEUM NEW YEAR'S EVE 5K RUN/WALK RACE. Ms. Riddle stated the Palm Springs Museum is proposing a 5K New Year's Race; however, instead of holding the event on Tuesday, it will be held the following Saturday to get more participation from families. With that change, staff is recommending approval of the event as outlined in the staff report. Responding to question, she said the event will be Saturday, January 4, 2014, in lieu of December 31, and the course and time of the event will remain the same. 12 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 22, 2013 Councilman Tanner moved to, by Minute Motion: 1)Approve Saturday, January 4, 2014, date for the Palm Springs Art Museum New Year's Eve 5K Race; 2) approve Painters Path (from EI Paseo to Fred Waring Drive - behind Desert Crossing Shopping Center) and Edgehill (from EI Paseo to Cahuilla Hills Park) Road Closures for the event. Councilman Spiegel said he didn't understand the route. Ms. Riddle explained the course will start in the Museum parking lot, taking a right on Painter's Path and turning left on Edgehill where it will proceed to the top of the street then veering to the right where the church sits off the bridge, then circle back down Edgehill crossing over the bridge and proceeding along Painter's Path behind Target where it will loop back and end at the Museum. Mayor Harnik commented it will be a great event for the Museum. Councilmember Weber seconded the motion and it carried by a 5-0 vote. D. REQUEST FOR CITY COUNCIL DIRECTION REGARDING POTENTIAL EXPANSION OF AREAS IN WHICH DRIVE-THROUGH RESTAURANTS ARE PERMITTED WITHIN THE CITY OF PALM DESERT. Mayor Harnik noted this was not a public hearing, but there were a couple of speaker cards she will call upon. Ms. Aylaian stated that at the June City Council meeting, one Councilmember requested lifting the ban on drive-through restaurants,which is brought to the Council for consideration at this meeting. She said staff needs more direction from the Council before embarking upon development of design standards in an implementation program for how this will be done. In particular, the current prohibition on drive-through restaurants applies to all of Palm Desert with three exceptions. In 1996/1997 the Gity Council became concerned with remaining competitive with other Valley cities along the Interstate-10 Freeway. Specifically, providing greater lenience, as far as service stations, convenience stores, auto washes, and freeway oriented businesses, but appropriately situated around a freeway such as RV/boat storage or mini warehouses. That Council asked staff to investigate and apply a new zone and different standards, which the current Ordinance reflects. The location of the Overlay zone has changed through the years as different projects and master plans were approved with different design standards and conditions to them. She displayed a map of the City, which outlines the locations where drive-through restaurants are permitted. She said staff is looking for direction as to whether the Council would like to lift the ban on drive-through restaurants throughout the entire City or just in selected areas; if so, what are those areas, or maintain the current prohibition. She noted one new email was received recently in support of the 13 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 22, 2013 prohibition, and another email was attached to the staff report that was in opposition to the ban and requested it be lifted. MR. DICK SHALHOUB stated he was the owner/operator of the McDonald's Restaurant, 72755 Highway 111, Palm Desert, stated they have discovered over the year from their restaurants, that the times, technology, and customers' preferences have changed. The first important part is with technology, stating that 40 years ago drive-throughs were thought to be the greatest thing in the world and they belonged in a museum. Today's new drive-throughs feature special technologies that allow orders to be taken faster, quicker, making it more convenient to the customer. Drive-throughs allow for time to be saved, because they are more energy efficient. He recently read that a leaf blower, a two-cycle engine, created more pollution than a car idling in a drive-through. Secondly, the life style and family unit has changed, husbands are not working and wives' are not in aprons cooking breakfast before the kids go to school. It was more like husbands and wives both working rushing to get the kids to school; therefore, making time was important and precious. The same thing went for workers throughout the Coachella Valley that crisscrossed through Palm Desert. Families need the time to get the food they need and get back on the road. He said drive-throughs are an efficient way of distribution of their products. He asked the Council to look at the difference in volume and percentage of dollars going through Palm Desert, because those dollars would increase the sale tax for the City. The design changes can make the whole area a little bit nicer and more modern. He said he had all the details and information if anyone cared to ask, stating they were prepared to make a presentation of their renderings and drawings of what they can do with their centers. He said in order to bring their operation up to where it should be at their particular corridor,the drive-through would be very efficient and beneficial to both the City and their operation. He offered to answer any questions. MS. KIM HOUSKEN, Somera, Palm Desert, stated that as a concerned citizen, she believes Palm Desert has been a leader when it came to recycling, usage of golf carts, and art in public places. She said when the City incorporated, it was light years ahead of other cities, but others have since come on board and begun banning drive-through restaurants within their cities. She believed it would be a step back to allow drive-through citywide, because the Council in 1996 struck a good balance by meeting the need for drive-through restaurants along Interstate 10. She noted she was fortunate to be part of the Envision Palm Desert Strategic process, which is a looking at the City 20 years down the road. Some of things brought up in the meetings is for Palm Desert to maintain its sense of community and remaining concerned about sustainability. She said there was a whole focus group on sustainability. In her preliminary research on idling engines, on just 10 seconds of idling, it was more efficient to turn off the car and turn it back on. Therefore, for any study found, and there have been some 14 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 22, 2013 commissioned by fast food restaurants, one will find varying perspectives. She encouraged the Council to look into those studies before venturing down that road. Lastly,the Envision Palm Desert has been increasingly interested in the walkability of the community and she didn't see how allowing drive- through restaurants citywide would foster any of these goals or sense of community. She said when walking into a Starbuck's or McDonald's, one can run into people they know, and it's an opportunity to visit. She heard Mr. Shalhoub mention it was a whole lifestyle change, but she would argue, with respect to technology, it had gone too far. She said people are so into their electronic devices that they don't see what is going on around them, and it would be a shame for the City to expand the use of drive-through restaurants citywide. She said if the Council was considering lifting the ban that they send this item through the Sustainability Committee to allow them to look into the emissions aspect of idling vehicles at drive-through restaurants. Councilman Spiegel stated he was the one that requested this item be placed on the agenda, because he believed drive-throughs would be a convenience to the residents, making it easier for them, which he believed was the Council's job. He said a woman with a lot of little kids didn't want to get out of her car and go into McDonald's, she'd rather pick up the food, drive home, and have the kids eat at home, which there was nothing wrong with that, stating it wasn't a crime. He reiterated that having drive-throughs would be a convenience to the residents, which is why he asked that it be placed on the agenda. Mayor Pro Tem Benson stated her view differed from that of Councilman Spiegel's need for the public to enjoy drive-throughs. She said years ago when she was Mayor a little boy wrote a letter to her stating he didn't know why there were no drive-in's, because it was the only time his family sat down for dinner together, which she thought was sad that family values had decreased so much. She said the City has had this Ordinance prohibiting drive-throughs for more than 30 years, and she had received only two complaints about not having them; she said the City has done well without them. She noted The Deserf Sun did a tremendous article in their editorial about Palm Desert being a leader before it was a leader. When the City incorporated, prohibiting drive-through was one main goal, and she couldn't see that lifting the ban would enhance the City in any way. The fact that there was more technology available when going through a drive-through didn't interest her at all. She said if she wanted to go to a drive-through, she drove out to Interstate 10, and she was certain a lot of residents did the same. She said she's had more people tell her they are proud of the way Palm Desert has maintained its strength in some of these things that are going against the grain of other cities. She said Palm Desert accommodated the freeway traffic and people passing through by having 15 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 22, 2013 drive-throughs out in the allowed zones, and she saw no reason to change it. Councilmember Weber stated there was more at issue here than to keep saying it wants to be a leader and keep the status quo, because it didn't mean the Council wants to run out and put a whole bunch of drive-through restaurants off Highway 111. She said the world has changed, and there are now quick service restaurants, and many of them are providing food in a quick manner. She agreed with Councilman Spiegel that to unload all of one's children, take them into the restaurant, and then load and buckle them back onto the vehicle was an inconvenience. She said convenience was a wonderful thing now a day. For instance, she teaches school and gets out at 10:00 p.m., and to get food quickly, she went out to a drive-through in Thousand Palms, costing her more to drive out to the other end of town. If the City was really concerned about idling engines, everyone at the stop light would turn off their car, because vehicles are at stop lights more than 10 seconds; therefore, these issues couldn't really be talked about. She said the Council had to talk about the fact it had businesses that�want to come to Palm Desert, and the City should be competitive with other cities. She said drive-through restaurants are not what they used to be, because a business won't make money if people are sitting in their car idling. Therefore, as quickly as a business can get people through, that business will make more money and the City won't have all the gas fumes and so forth. She said quick-service restaurants are no longer just drive throughs, because they include walk-ins, sit-downs. and patios. She agreed they are places to meet and see people, but sometimes she didn't have the time. She didn't know too many people who are out at 10:00 p.m. when she is trying to get her food on her way home. She said everyone lived in a 24/7 world, and it didn't mean taking the family out for a sit-down dinner at 5:00 p.m., it was a different world with people working two or three jobs. She said the Council needed to respect people's concerns or need for ease or quickness. She reiterated lifting the ban didn't mean it will trash the City by putting drive throughs all along Highway 111. She said some of these quick-service restaurants are quite lovely, and they are not in your face. She said Palm Desert will keep its high standards of construction, which will not change, and didn't know why anybody would think it would. She said the Planning Commission will not allow junk to be built in Palm Desert; it was against the City's principles. She was in favor of allowing lovely drive-through restaurants in Palm Desert, because she is not one of those persons who sits in a restaurant by herself. She said there are many people out there that have a need for this convenience, and to say it won't be allowed in our City, defied logic. Councilman Tanner stated one speaker mentioned she was part of the Envision Palm Desert, and the whole reason the City created this strategic plan group was to get opinions on where it needed to be for sustainability. 16 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 22, 2013 He believed the Council needed to step back and allow the ten or eleven different subcommittees that made up the Strategic Plan Group to submit their recommendations to the Council next year. He said to vote on recommendations 1, 2, or 3, would be an insult to those serving on those various subcommittees. Secondly, his comments in the newspaper about being on the Planning Commission,where this issue came up three different times, there was a response by email stating, "Mr. Tanner was not correct in his assumptions that this was not a good thing," which is incorrect. He wasn't saying that lifting the ban was a good or bad thing, because he still needs to be convinced one way or the other, and until he received more response from the people that potentially use drive-through restaurants,this Council wouldn't be making a good decision on the options proposed this evening. The person he has spoken to have said there was no reason to have a drive-through. One of the things he stated in the article was that he had been here since 1980, and when he had a van full of kids going to a ball or soccer game, they all went into the store. However, he wants to wait to hear from those people that potentially use them. He was in favor of postponing this conversation until the Envision Palm Desert Strategic Plan Group came back with its recommendations. Mayor Harnik explained the City had more than 120 very valuable community members engaged in the Envision Palm Desert, and one of the subcommittees is a Land-Use Committee. She encouraged Mr. Shalhoub to bring his information to that committee, because it was good information for them to have. She absolutely agreed the Council should show them respect by allowing them to complete the process, stating the group was six months into it and those members offered to donate theirtime and expertise. She said the Council anticipated the group would be making a presentation in April or May, and she was sure they had valuable insight that the Council had to listen to. She said this item was to be placed on the July agenda, but it was now August, pointing out many community members are out of town and they should be allowed to weigh in. Additionally, the City was in the midst of forming a Highway 111 Business Committee and certainly they should weigh in as well. Additionally, she felt that taking action on a small piece of Land Use and determines it here this evening wouldn't be a prudent way to act. Councilman Tanner moved to, by Minute Motion,continue this matter until such time as more information has been received from the Envision Palm Desert Strategic Planning Process. Motion was seconded by Spiegel and carried by a 4-1 vote, with Benson voting NO. 17 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 22, 2013 E. REQUEST FOR AWARD OF CONTRACT TO COVE ELECTRIC, INC., IN THE AMOUNT OF $58,525 FOR THE EL PASEO MEDIAN ELECTRICAL RETROFIT PROJECT (CONTRACT NO. C33030, PROJECT NO. 970-14) (JOINT CONSIDERATION WITH THE SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY). Mr. Greenwood noted this item and the following item on the agenda are companion projects. This item is to upgrade the electrical system in the median on EI Paseo in order to support upgraded and additional holiday decorations on EI Paseo. He said this was a good proposal and staff recommended approval. Councilman/DirectorSpiegel moved to, by Minute Motion: 1)Award subject contract for the EI Paseo Median Electrical Retrofit Project to Cove Electric, Inc., Palm Desert, California, in the amount of $58,525; 2) authorize the Director of Finance to set aside a 10% contingency for the project in the amount of $5,852.50; 3) appropriate $64,377.50 from Unobligated General Funds to Account No. 400-4614-454-4001 - Capital Reserve Landscape; 4)authorize the City Manager to draft a Reimbursement Agreement between the City and Successor Agency, authorizing payment from any Successor Agency funding source available for this purpose (Contract No. C33030A); 5) authorize the Mayor to execute the contract agreement. Motion was seconded by Benson and carried by a 5-0 vote. F. REQUEST FOR APPROVAL OF A PROPOSAL BY HOLIDAY LIGHTING DESIGN & DECOR TO MANAGE PHASE TWO OF PALM DESERT'S HOLIDAY DECOR PROGRAM IN THE AMOUNT OF $70,871.16 (CONTRACT NO. C32980A). Mr. Aryan stated the Council approved Phase I of the Holiday Decor Program at the last City Council meeting, which included retaining the existing decor, refurbishing some of the inventory, and purchasing new garland wraps forthe street lights on the EI Paseo median. Phase II involved taking it one step further in lighting 25 deciduous trees and 54 palm trees, and paying for their installation, removal, and storage. Councilman Spiegel moved to, by Minute Motion: 1)Approve a proposal by Holiday Lighting Design & Decor, Palm Desert, California, in an amount not to exceed $70,871.16 to manage Phase Two of Palm Desert's Holiday Decor Program per the subject contract; 2)authorize City Manager to execute any contractual documents related to Phase Two of the City's Holiday Lighting and Decoration Program; 3) appropriate $70,871.16 from the Unobligated General Fund for costs not budgeted in FY 2013-2014 for Palm Desert's Holiday Decoration Program Phase Two and transfer to Account No. 110-4310-433-3910 for this purpose. Motion was seconded by Weber and carried by a 5-0 vote. Mayor Harnik thanked Councilmam Spiegel and Mayor Pro Tem Benson for all the work done on the Holiday Decoration Program. 18 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 22, 2013 XV. CONTINUED BUSINESS A. REQUEST FOR DIRECTION REGARDING UTILITY UNDERGROUNDING IN PALM DESERT (Continued from the meetings of December 13, 2012, April 25, and June 27, 2013). Senior Management Analyst Dave Hermann noted this item has been before the City Council several times. He said there are some residents currently engaged in trying to form a Utility Undergrounding District and the two issues have become confused. Staff is asking the Council to endorse the current policy with minor alterations that will make the policy better. Those changes are to allow the residents to form their own district and include a meeting with Southern California Edison (SCE)to have them weigh in on the feasibility of the district formed by those residents. The City held a meeting with SCE on July 11 and it worked well. Councilman Spiegel moved to, by Minute Motion, retain Palm Desert's existing process for the creation of Utility Undergrounding Assessment Districts with the following modifications: 1) Allow neighborhoods to determine their own feasible and cost-effective District boundaries without regard to previous City-established Districts; 2) direct staff to include an additional step to the City's established District formation process that provides Southern California Edison with an opportunity to evaluate the technical feasibility and economic efficiency of a proposed District prior to a formal engineering study. Mr. Hermann explained staff's recommendation was to endorse the current policy with the two changes outlined in the staff report, which are to allow the residents to form their own district boundaries and to allow Southern California Edison to weight in on whether those boundaries are feasible and efficient. Councilman Tanner seconded the motion and it carried by a 5-0 vote. XVI. O�D BUSINESS A. REQUEST TO RECEIVE AND FILE TERRA NOVA PLANNING & RESEARCH'S REVIEW OF THE CITY OF CATHEDRAL CITY FISCAL IMPACT ANALYSIS FOR THE THOUSAND PALMS COMMUNITY DATED JULY 25, 2013. Ms. Aylaian stated this item was the analysis requested by the City Council to compare and contrast two studies perFormed in recent years regarding potential annexations. One was a study performed by Ralph Anderson & Associates for the City of Cathedral City as they looked at potentially annexing areas in their sphere of influence north of Interstate 10. The other study was done last year by Terra Nova Planning & Research, which took a 19 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 22, 2013 look at potential annexation of land in the Palm Desert's Sphere of Influence (SOI') north of Interstate 10 and some land in the Cathedral City's SOI. In Council's packet is an analysis of the two different studies identifying the results and differences befinreen the two studies. Mayor Harnik stated she would recuse herself from this item and the following two items on the agenda and left the Council Chamber. Ms. Aylaian stated she will provide an overview as to why the results were so different. The Cathedral City study showed a very positive cash flow to the General Fund should it annex Thousand Palms and other areas north of Interstate 10. In contrast Palm Desert showed a very negative cash flow for annexation of areas north of Interstate 10. The following are the main differences: 1) Study Areas -A map was displayed showing outlined in red the area Cathedral City studied, which is 9,700-acres, which contains all of Thousand Palms. Outlined in green is the area Palm Desert studied that included Sun City and areas with commercial businesses south of 38`h Avenue but north of the freeway, along with certain areas in the far east end of the SOI of Cathedral City; those areas include the Classic Club, Xavier Prep School, and undeveloped residential lands. The only overlapping area befinreen the two studies is shown and outlined in yellow. She said Cathedral City's Study covered greater territory than Palm Desert's Study,which is the greatest explanation as to why the differences were so dramatic. 2) The Level of Service - The level of service delivered to the residents is very different between the two cities. When it comes to Police Services, the cost per capita, Palm Desert spends about $339 per person per year. Cathedral City who provides their own and does not contract with the Riverside County Sheriff's Department spends $262 per capita per year. If ane applied the Palm Desert numbers just to the Thousand Palms population,which is about 7,700 residents, it will account for almost $600,000 in difference annually. General Government Services between the two is also very different. General Government would have everything from the Finance Department, City Clerk's Department, Parks Maintenance, Public Facility Maintenance, and Animal Control, etc. For Government Services, Palm Desert spends $277 per person per year and Cathedral City spends about $86. Cathedral City in recent years has gone through some dramatic budget reductions, and they are providing services to what she would classify as minimal level. Again, in taking the Thousand Palms population and applying this difference to the number of people there, the difference is $1.5 million per year. Roadway Maintenance is another big difference per square acres, but because the overlap is so little and the areas are so different, the amount of roads is different. If one looked at the amount of money Palm Desert spends on the miles of road in the area studied, compared to Cathedral City, Palm Desert spends about $250 per acres per year, whereas Cathedral City maintains it roads at a lower level, spending about$151; 3) Sales Tax- She said sales tax falls into three categories. One is that Cathedral City has an 20 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 22, 2013 extra 1% sales tax greater than Palm Desert, which was passed through a ballot initiative. Secondly, in Cathedral City's study, they had huge amounts of vacant land, and they had to determine what sort of land use would be built out 20, 30, or 50 years from now and determined what kind of revenue and costs would be associated with it. They assumed that vacant land would have 3-million square feet of commercial use from which they would get sales tax; she couldn't argue if it was right or wrong. However, it was a large amount of square footage of commercial space and it could drive a lot more sales tax than Palm Desert's Study, which had relatively little commercial area; 3) Method of Calculation-The manner in which Cathedral City's Study calculated the sales tax,was incorrect, because they looked at the Sales Tax per capita. In other words, they looked at what the residents were currently spending, and made the assumption they are not spending any money in Cathedral City for their retail goods now, but that as soon as the area is annexed, they will. She didn't believe annexation will change people's shopping patterns, and certainly in the first initial five or ten years of their study, it is not expected that the figures Cathedral City projected are realistic orwill reallyoccur,which amounted to a$600,000 difference in their revenue department. The next area of difference is Transient Occupancy Tax (T.O.T.) She said Cathedral City's T.O.T. is now at 12% while Palm Desert is at 9%. More significantly,the area Cathedral City looked at,they assumed there would be six more hotels than are included in Palm Desert's Study. She said Cathedral City's Study didn't indicate the exact number of rooms anticipated or the exact average daily rate, but guess estimates were between 1,300 and 1,400 additional rooms at the 12% T.O.T., which would produce greater revenue than what Palm Desert anticipated in its study. Palm Desert looked at new hotels being produced nearthe Classic Club and in the area south of 38T" Avenue, but close to the freeway. The final difference between the two cities is the Utility Tax. Cathedral City has a 1% Utility Tax, which would produce revenue to their General Fund where Palm Desert's Study did not. She said those were the reasons why any fiscal analysis of the two cities would be so different. She said Nicole Criste from Terra Nova & Research was avai�able to provide a presentation with more detail and answer any questions. In conclusion, she asked the Council to receive and file the study, stating there was no reason to take action on it at this point. She said Cathedral City has not filed an application with Local Agency Formation Commission(LAFCO)to annex;they are still studying the issue. She understands Cathedral City has a subcommittee working on it and they have not yet made a recommendation to their Council. When and if Cathedral City decides to apply to annex the area north of Interstate 10, the Palm Desert City Council could use the information in Terra Nova's analysis to help them decide if they want to take a position regarding Cathedral City's application to either oppose or support it, or remain neutral as it went through the public hearing process in front of LAFCO. 21 PRELIMINARY MINUTES DR.AFT REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 22, 2013 Councilman Spiegel asked if Cathedral City was aware that their study was flawed and their figures weren't correct. MS. NICOLE CRISTE,Terra Nova Planning&Research, responded theydid not provide a copy of the report to them. Ms. Aylaian stated she communicated and forwarded the report to a representative of Cathedral City's staff, as well as forwarding the report to the Interim City Manager and City Clerk;therefore,they have the information. She was advised by their staff inember that part of the reason their subcommittee had not made a recommendation to their City Council, is because they wanted to see the results of Palm Desert's analysis. Their consultant, within the last week or so, amended their report and identified one other error, which made a difference of about $525,000 annually, decreasing the revenue originally reported. Councilman Spiegel moved to, by Minute Motion, receive and file the report from Terra Nova Planning & Research, Inc.—this information will be available for use when and if Cathedral City files an application with the Local Agency Formation Commission (LAFCO) to annex the Thousand Palms area. Motion was seconded by Tanner and carried by a 4-0 vote, with Harnik ABSENT. B. REQUEST TO RECEIVE AND FILE LAND USE AND FISCAL IMPACTS REPORT FOR THE NORTHERN SPHERE OF INFLUENCE (EXPANDED) AND BERMUDA DUNES AREA,CONTINUING DISCUSSION AND ACTION ON THE MATTER TO THE MEETING OF SEPTEMBER 12, 2013. Mayor Harnik recused herself from this item and was absent from the Council Chamber. Councilman Spiegel moved to, by Minute Motion, receive and file "Land Use and Fiscal Impacts for the Northern Sphere of Influence (Expanded} and the Bermuda Dunes Areas," prepared by Terra Nova Planning & Research, Inc., and continue the matter to the meeting of September 12, 2013, at which time a staff recommendation will be made and public testimony on the matter can be heard. Motion was seconded by Tanner and carried by a 4-0 vote, with Harnik ABSENT. Ms. Aylaian asked if the Council was interested in having a Study Session on this issue before the next City Council meeting, because it was relatively a complex study. With City Council concurrence, the motion included the scheduling of a Study Session on Thursday, September 12, 2013, at 2:00 p.m. 22 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 22, 2013 C. CONSIDERATION OF PRIOR RECOMMENDATION TO FORWARD CORRESPONDENCE TO AGUA CALIENTE BAND OF CAHUILLA INDIANS REGARDING LAWSUIT AGAINST COACHELLA VALLEY WATER DISTRICT (CVWD) AND DESERT WATER AGENCY (DWA). Mayor Harnik recused herself from this item and was absent from the Council Chamber. Mr. Wohlmuth stated the Legislative Review Committee considered taking action on the lawsuit Agua Caliente Tribe filed against the three water agencies in the Goachella Valley. The Legislative Review Committee approved a draft letter in concept,which was approved by Council at the July meeting.Subsequently, Mayor Harnik determined she had a potential conflict of interest on this matter and did not sign the letter. The draft letter was to be sent to Chairman Grubbe of the Agua Caliente Tribal Council. Although the letter was not signed, The Desert Sun did an article on it that prompted Tribal staff and chair to request a copy, which was forwarded to them. Therefore, in order to resolve this issue, the item was placed back on the agenda for the Mayor Pro Tem to sign the letter. Councilman Spiegel asked if there was a response from the Tribe. Mr. Wohlmuth said he called Mr. Tom Davis of Agua Caliente staff requesting to meet to discuss the lawsuit with the water agencies, but that didn't work. He said a meeting has not been scheduled nor did he have a written response. Councilman Spiegel moved to, by Minute Motion, authorize the letter to be signed by the Mayor Pro Tem. Motion was seconded by Tanner. Mayor Pro Tem Benson stated that since the Legislative Review Committee met on this issue, and with all the publicity, she felt Palm Desert should stay out of this mess. She said Palm Desert hasn't met with the Tribe and it didn't know their side of the issue, and signing the letter would be taking the side of the water agencies; therefore, she wasn't comfortable signing the letter. She said Palm Desert has never gotten involved in other people's lawsuits, and it should stay out of it and let them settle it. Councilman Tanner stated the only reason he was in favor of sending a letter in support, is because it was an issue of determining who owns the water rights. Mayor Pro Tem Benson said that's why she believed the Council should meet with the Tribe to see what their side of the story is, and if the Tribe 23 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 22, 2013 didn't want to meet, the Council wouldn't have the full story to be protesting against a lawsuit it didn't know what it was about. Councilman Tanner said the letter was to initiate an open dialogue. Mayor Pro Tem Benson replied the letter is asking the Tribe to withdraw the lawsuit, which specificalty states, "We support an end to this lawsuit." She reiterated she believed Palm Desert should stay out of it. Councilman Spiegel commented the water rates will double. Mayor Pro Tem Benson said that was unknown, because the Council hadn't heard the Tribe's side of the story. Mr. Wohlmuth stated Jim Barrett, General Manager of Coachella Valley Water District Jim Barrett and their staff met with Agua Caliente. He noted Mr. Barrett was available to answer questions. He said if the letter didn't represent the view of the Council, he can modify the letter at the direction of the Council before having the Mayor Pro Tem sign it. Mayor Pro Tem Benson said if the Council was going to send a letter, it should be a request to meet with the Tribe to hear their side of the issue. MR. JIM BARRETT, General Manager, Coachella Valley Water District, stated he didn't have any compelling reasons to provide, except that they are in opposition. He said CVWD has been filed against by the Tribe, and what the Tribe is asking for he could give nor did he have the authority to provide water rights to them. The only mechanism CVWD has is for the Tribe to withdraw the complaint in order to discuss the matter further with them or proceed to allow the Courts to make a determination. He said CVWD is represented by legal counsel, but he couldn't get into their actual strategy. He said CVWD has asked to meet with the Tribe, and he has had indirect discussions through others and Tom Davis. He said Mr. Davis has asked that any discussion between CVWD Board Members and their Tribal Leaders take place after additional staff discussions with legal counsel, but CVWD Board refused to do so. He said it didn't seem to further CVWD's interest to again meet with staff and attorneys, because they are at a difference of opinion on who owns what and what rights the Tribe may have over that of the general population. Councilman Spiegel asked what would happen to Palm Desert residents water bill if CVWD lost the lawsuit. MR. BARRETT replied the bill will increase, but it was hard to say by how much. In the absence of any real determinations by the Courts, CVWD has taken steps to import supply to replenish water that is taken out for drinking 24 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 22, 2013 water purposes. For the most part, CVW D and Desert Water Agency rely on ground water to provide drinking water, using imported water from the Colorado to recharge. The total domestic drinking water demands are less than 100,000 acre feet per year, and CVWD along with Desert Water Agency, import enough waterto coverthat demand. If CVWD is not allowed to pull water out of the ground and serve it, an alternative distribution system would have to be developed, which would first treat the Colorado Riverwater coming in. Therefore,there would be a tremendous amount of infrastructure required, and that infrastructure cost would be borne by the rate payers. It was not inconceivable to see rates double ortriple. He didn't know how much of that would be placed on the commodity side, which is what people pay for the actual water they use, and how much is placed on the monthly service charge, the base rate, which is independent from actual water usage. He said there is a fixed cost just for having a meter. Additionally, because of the need to develop a treatment plant and to change the infrastructure requirements, most of the increase would be placed on the base, which is currently $7 a month, but that amount can be doubled, tripted, or it can be even more. MS. BARBARA deBOOM, President CEO of the Palm Desert Chamber of Commerce, stated a letter of support was requested by both sides, and after checking with their legal counsel for their legislative committee, they were informed this was a judicial issue and not legislative; therefore, they will not be taking sides on this matter. Councilman Spiegel suggested changing the letter to state Palm Desert City Council couldn't make a decision until it met with the Tribe and making an invitation to meet by a certain date. Mayor Pro Tem Benson said that would be acceptable. Responding to question, Mr. Wohlmuth agreed to modify the letter accordingly as requested. Councilman Spiegel moved to, by Minute Motion, authorize staff to amend the draft letter and the Mayor Pro Tem to sign and forward to the Agua Caliente Band of Cahuilla Indians, seeking an opportunity to meet with them in a reasonable period of time to solicit their input about the matter before the City takes a formal position. Motion was seconded by Tanner and carried by a 4-0 vote, with Harnik ABSENT. 25 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 22, 2013 XVII. PUBLIC HEARINGS A. CONSIDERATION OF ACTIONS RELATING TO PRESIDENT'S PLAZA I PROPERTY AND BUSINESS IMPROVEMENT DISTRICT FOR FISCAL YEAR 2013-2014 (Continued from the meeting of July 11, 2013). Senior Management Analyst Ryan Stendell stated Presidents Plaza I Property and Business Improvement District (BID) is bound by Portola Avenue on the east and Larkspur Lane on the west. The BID is the financial instrument, if approved by the property owners,that allows the City to assess property and act in a property manager role for the parking lot area. The services currently provided through the BID include: Landscape and lighting, both maintenance and repair; daily waste hauling, in some cases waste hauling is happening twice a day; minor street and asphalt repairs; and street sweeping. Staff is proposing to reform the BID for an additional three years, and at the end of that period, staff will be ready to go on a major improvement project to the parking area as discussed in the Study Session, with potentially some bond proceeds. At that time, the City will need to reform the District with the property owners, four hopefully, to ensure there are monies in the District to adequately maintain the new parking lot or any new improvements in perpetuity to avoid ending up in the same position it is today with a parking lot in the state of disrepair. He asked the Mayor to open the Public Hearing and recess this item to the end of the Public Hearing section of the agenda, at which time staff will return to read the results from the ballots received. Mayor Harnik declared the public hearing open and invited anyone wishing to address the City Council on this matter to come forward at this time. No public testimony was offered, and she left the public hearing open. Mr. Stendell stated that unfortunately the BID FAILED by a margin of 63% voting NO, and 37% voting YES. The YES votes tallied to $30,492.18, and the NO votes tallied to$52,246.90,which are the results that are entered into the Resolution. He said the question now is what happens next, because the City manages those parking lots,and they are joint-use facilities. He said the irrigation went across several property owners and it includes landscaping, lighting, trash services, and street sweeping. In short, he will be busy with public outreach on how the property owners believe they will handle this now that they voted it out. He said the City had six months worth of cash on hand of the property owners that it can stretch over the next fiscal year, because the opportunity to get on this tax cycle has passed. Of the $185,000 annual budget, approximately $137,000 of it was waste hauling, the largest expense. The City's immediate challenge is to figure out exactly how much money it had and how it was going to stretch it. He said he will meet with Mr. David Hermann to get some outreach with the property owners. He wasn't sure where this went wrong, because staff has a great working 26 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 22, 2013 relationship with them. He said staff will be looking to solve this problem in a couple of different ways. One would be for the property owners to explain how they will do it differently, or once they realize potentially what has happened, they will return for next fiscal year. Mayor Harnik stated there seemed to be a lot of misunderstanding, as she received a call from someone that thought this was a new assessment, and questioning why the City was doing it. Mr. Stendell stated the scary thing with these assessments, and the same went for Alessandro Alley, is that it comes in the form of a tax. He said these were not popular times for someone to open up a bill and read tax assessment. He's had to explain to callers this was the method by how the City acted as the property manager, asking them how they would propose to do otherwise. At that point, some folks agreed with keeping it the same and others were not willing to go down that path,which is how the NO ballots resulted today. Responding to question, he said the BID was reformed in 2008 for five years, and prior to that, it had been established for at least 15 years. Mayor Harnik believed there was a gross misunderstanding of this assessment, with people not realizing it was the same thing rolling over. Mayor Harnik declared the public hearing closed. Councilman Spiegel moved to waive further reading and adopt Resolution No. 2013-51, declaring results of the property owner protest ballot proceedings conducted for the proposed President's Plaza I Property and Business Improvement District Assessments commencing with Fiscal Year 2013-2014: Results: $30,492.18 - Yes (37%) $52,246.90 - No (63%) FORMATION OF THE DISTRICT FAILED. 27 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 22, 2013 B. CONSIDERATION OF REQUEST BY BURRTEC WASTE AND RECYCLING SERVICES FORAPPROVAL OF THE ANNUAL PRODUCER PRICE INDEX (PPI)AND COUNTY OF RIVERSIDE GATE/DISPOSAL FEE INCREASES, AND APPROVAL OF THE NEW COMMERCIAL RATE. Ms. Riddle stated Burrtec is requesting its annual rate increase, and based on questions received forthis item, she researched its history, which she will share with Council for its consideration. With regards to past rate increases, in Ju1y2006 Burrtec purchased Waste Management;therefore, priorto 2006, the City was serviced by Waste Management. In 2006, the residential rate for a 96-gallon container was $10.43. In 2007, the rate was $10.58, for a 15-cent rate increase. In 2008 the City and Burrtec negotiated a Franchise Agreement, and as part of that Agreement, Burrtec couldn't request a rate increase for the first two years. Burrtec didn't request a rate increase until 2010, and in 2010 to 2012, the City offset the rate increases through AB939 (Recycle Fund). Therefore, for the past five years, residents have not incurred a rate increase. Of those five years, commercial customers did not experience a rate increase because of the Franchise Agreement. This year in 2013, the residential rate increased 19 cents, and the commercial rate for a 3-yard bin serviced three times a week is $3.68. Results of offsetting the residential to residents went from $1.87 per ton to$1.06 per ton or 81 cents. If the City offset the commercial rate increase, it would be 78 cents. Therefore, if the City chose to offset both the residential and commercial, it would be a total of$1.90 per ton. She said the City only received $1.87 per ton from AB939, which was a 3-cent difference that the City couldn't cover. Councilman Spiegel asked how much was in the Recycle Fund. Ms. Riddle answered there was approximately $4 million give or take; however, the City expends $600,000 to $800,000 per year. She said at $1.87, the City received about$75,000 a year, which didn't even cover what the City expended during the year. The other item Burrtec requested was a new Commercial Recycle Fee,which according to the Franchise Agreement, Section 4.6.7 it states, "At such time as the City or State mandates commercial recycling, they have the authorization to request such a fee to be established." As part of AB32, Commercial Recycling and Recycling for Multi-family Housing was mandated, and Burrtec is requesting the implementation of a new Commercial Recycling Fee that is set at 35%of the trash rate, which is reflected in Exhibit 3 of the staff report. She offered to answer any questions. Councilman Spiegel asked about the 5-year agreement with Burrtec. Ms. Riddle explained the 5-year agreement expires May 2015, but it has an option for a 4-year extension. 28 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 22, 2013 Councilman Spiegel asked if Burrtec was entitled to receive 1.2% for the Producer Price Index (PPI) based on the Agreement. Ms. Riddle explained the rate increase is based on the PPI, but the Agreement states Burrtec has the authority to request a rate increase, and Council shall review and approve as part of the good-faith negotiation. Councilman Spiegel stated he didn't believe the Council had a choice but to approve, because it was part of the Agreement. Ms. Riddle explained the Council did have a choice, and it was based on a good-faith negotiation, because the Agreement didn't state, "shall"approve. Mr. Wohlmuth stated the PPI or rate increase by Burrtec was warranted, and they will get the increase as it has for the past four years. The issue is where does the money come from to grant that PPI increase. He said the PPI will be granted through the AB939 Fund or the residential and commercial customers. Councilman Spiegel stated Council was then considering two items,one was the PPI and the other was the commercial recycle fee, which were two different things. He asked where did the 35% recycle fee fit in. Ms. Riddle replied it was included in Section 4.6.7 of the Franchise Agreement when it was last negotiated. Councilmember Weber asked about the statement made in a letter by the Palm Desert Resorter where it states, "We continue to generate revenue for the City." She asked if that was a factual statement. Mr. Riddle answered yes, stating the City received the Franchise Fee at 8%, and the AB939 Fee, which is the $1.87 per ton. Councilmember Weber again referencing the Palm Desert Resorter letter, stated it questioned why the City didn't utilize the profits to assist homeowners in paying this increase. Additionally, she asked if the current balance was $4 million, what was it two years ago. Ms. Riddle responded the City has managed to keep a $4 million balance in that account. However, that will not always be the case, because in the past the City has been able to obtain grants to offset a good portion of the programs, but those grants were no longer available. Additionally, as of this year, the City is expending more money out of that account for street improvements, because of the trucks that utilize City streets, etc. Further responding, she said the increase for residential was 19 cents per resident for a 96-gallon container, and a smaller container would be less. She went 29 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 22, 2013 on to say that when residents realize the increase is only 19 cents,they tend to be okay with it. This year staff had to send a notice to all the residents and businesses, because it was advised to follow the Proposition 218 process. However, the notice created confusion for people, and based on that, there were more calls than the City would have ever received. Councilman Tanner stated he betieved there were two parts to the matter. One was to increase the residential and then the commercial pick up. The other part was the commercial recycling fee. He asked if there was any leeway to postpone the fee until the year 2015. Ms. Riddle read from the Franchise Agreement, which states, "The City and Company may revisit the free Commercial Recycle Program and a possible fee assessment annual/y. The City and Company sha/l negotiate in good faith a fee at such time as the City or State mandates mandatory recycling." Therefore, the City shall negotiate in good faith, and Burrtec will have the option of making the request for the fee annually. Councilman Tanner asked what was the typical cost for commercial recycling. Ms. Riddle explained the fee is typically based on a 3-yard bin with service three times a week, and that cost is $232.85, which would be the new rate, and the new Commercial Recycling Rate(35%) being proposed for a 3-yard bin serviced three times a week is $81.50. Councilman Tanner asked if that meant it was $232.85 plus $81.50. Ms. Riddle answered yes. Mr. Wohlmuth stated that arguably if municipal solid waste is being picked up three times a week, one would be reducing municipal solid waste by the amount of recycling; therefore, one can reduce the waste cost, but pay the recycling cost. The theory is that if one recycled more, you pay less in waste, and pay 1/3 of the cost for recycling. In other words, if you throw away 100 pounds of trash, and in Palm Desert where it is at 73% recycling now, but he didn't know that any commercial account would get at 73%, but assume there is a 50%, one would reduce the amount of service in municipal waste and increase recycling, but until a business tries it, the difference is unknown. He said there is a Tipping Fee as part of the rate on waste, but not on recycling, and for every pound one recycles, it's a pound that didn't have to be picked up in waste. Councilman Tanner stated he would like to come up with a dollar value, because he didn't want to start taxing commercial accounts a lot of money. 30 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 22, 2013 Councilman Spiegel stated that for the last three years, the City has picked up the rate increase from the money it received from Burrtec, which is what he will probably recommend. Councilman Tanner responded the funds received did not meet the expenses for street improvements and the other programs mentioned by Ms. Riddle. Councilman Spiegel pointed out there is $4 million in the account. Ms. Riddle stated the City expends $600,000 to $800,000 a year. Responding to question about the initial deposit into the Franchise Agreement, she said there was no initial deposit;the account has grown over time. Further responding, she said funds are used for the Recycle Binney, education programs for residential and commercial businesses, hazardous waste programs, shredding events for both residential and businesses, used oil events, e-waste (electronic waste), which is available to residents and businesses. She noted the City picked up the first $300 each year for businesses. She went on to say funds are also used for street improvements and purchases like benches that are made out of recycled material. She said all the programs mentioned are in addition to what waste management provides. She said if the programs are not offset through AB939, it's a fee the City would have to cover, because the programs have to remain in place. She said these hazardous materials are prohibited in the landfill; therefore, the City has to have some type of program in place for them. Mayor Harnik declared the public hearing open and invited public testimony FAVORING or OPPOSING this matter. DR. ED KRAUS, Pebble Beach Circle, Palm Desert, stated he was representing the Palm Desert Resort & Country Club Homeowners Association,which is a commercial establishment because of the commercial aspects of it. He is also a member of the Envision Palm Desert, so he brings solutions to the events as well as concerns. One concern is that service organizations and utilities bring up rate increases during the summer months when many citizens are not available. He pointed out,that in a previous item on the agenda, Councilman Tanner and Mayor Harnik advocated waiting until others could weigh in, stating that if Council waited forthose out of town, the Council Chambers would be over packed with concerned constituents. He said Councilman Spiegel suggested using the profits that the citizens generated by doing a great job of recycling, and using some additional monies. He said Ms. Riddle mentioned it costs the City an additional $100,000 a year above from what it received from recycling. Ms. Riddle clarified the City expends $600,000 to $800,000 for various programs. 31 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 22, 2013 Mayor Harnik pointed out that amount was not what the City received back from recycling. DR. KRAUS said he understood the City received $75,000 back from recycling that the citizens generated, and the City added $100,000 to pay Burrtec for the cost of collections. He said with$4 million in reserves divided by $100,000 could provide for many years. Ms. Riddle explained the City didn't give Burrtec money back. She said the City receives AB939, which generated about $75,000 a year. Out of the $4 million, the City expends between $600,000 and $800,000 a year for the various programs in place, i.e., the shredding event. DR. KRAUS stated that if that was the case, with the $4 million in reserve, and additional monies received each year, he believed the City had four or five plus years to keep running the program without raising the rates on residents and HOA's. He quoted Mayor Harnik's statement that was printed in the newspaper, where she stated she didn't anticipate passing previous rate hikes onto homeowners and would absolutely subsidize the rate at the current level. Therefore, he understood the City will continue to subsidize one part of it this year. Mayor Harnik agreed, stating she didn't believe anyone would vote to go back. DR. KRAUS asked how this item can be placed on hold until more citizens returned for them to weigh in and be seen and heard. He said he was mostly from the City of Newport Beach where everything was collected and sorted by them. In other words,they do everything Palm Desert does, and then they sort out the trash and recyclable. He wondered what Burrtec would charge if they had to do everything themselves. He said the citizens can decide not to recycle, because there isn't a benefit by paying more. The bottom line is that the City assist the HOAs by utilizing some additional revenue from the commercial collections to offsetthe proposed rate hike requested by Burrtec. Mayor Harnik asked why was Palm Desert Resort considered commercial. DR. KRAUS responded the HOA has bins that are collected on a commercial basis. He said trash and recyclable are picked up at the homes and the Clubhouse three times a week, and they are charged additional money to do so. He said they also charged for additional pick ups, and if Burrtec finds one pile of trash in the recycled bin, a full fee is charged for separating it. He said they needed help from the City to ensure they didn't overpay. Ms. Riddle explained Dr. Kraus was referring to contamination, in that if the recycling is not done correctly, and after a certain percentage of 32 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 22, 2013 contamination is in the recycled bin, Burrtec charges the full rate, because it becomes trash. She said it was imperative that residents and businesses are educated on how to properly recycle in order to reap the full benefit. She said citizens have to buy into it and participate in order for recycling to work. Responding to question about trash pickup three times a week, she said the Resorter is in a different situation, stating that most HOAs have a clubhouse with a bin ortwo that's picked up forthe use of the clubhouse and restaurant. However, the Resorter has an extra need, because they have a lot of weekenders and additional bins are provided for the purpose of allowing residents to drop off their trash before they leave for the weekend. Councilmember Weber made the comment that those from out of town will not be aware of the City's rules, so those problems will exist. Ms. Riddle stated recycling is an ongoing educational situation. For instance, a commercial business will have change overs with managers and employees, so it's an ongoing situation that will always have to be dealt with. Mayor Harnik pointed out that commercial recycling is now State mandated. Ms. Riddle agreed, stating it was not a City mandate, but a State mandate. . She said the City had a free recycling program, and even at free, it was hard to get participation. However, once a business buys into it, they start to see how easy and convenient it is, but to get them to buy in can be difficult. � MS. GAIL BROEKER, Manzanita, Palm Desert Greens Country Club, stated that 19 cents per resident was not a big deal. She said the Club has 1,920 residents,which includesthe dumpstersforthe clubhouse, recreation center, and other things. Her concern was the timing of this whole thing, because if the Council makes a decision, the rate increase will go into effect in ten days. In ten days, their HOA will have to come up with nearly$5,000 to their budget, which has been finalized and monthly bills have been prepared, affecting their personal budgets as well. She said a special assessment will have to take place, possibly costing each resident$5 a month. Responding to question, she said their HOA also fell under the commercial category, but just for the 1,920 residents they will have to come up with $4,161 to a budget that's already been finalized. Additionally, there are residents that are not in town and when they return, they will encounter a special assessment, because the rates will go up. Mayor Harnik asked if the residents were billed individually. MS. BROKER responded the HOA pays a monthly homeowners assessment on behalf of each resident. She reiterated her concern was that this rate increase would take effect September 1. Responding to question about the 33 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 22, 2013 HOA's monthly bill, she said it was a flat fee/due of$2.30, which covered all sorts of things. Mayor Harnik stated that as an individual resident it would go up 20 cents a month or $2.40 a year. She asked Ms. Broker if her budget was based on a fiscal year. MS. BROEKER answered yes, stating that ten days was short notice to put out a special assessment for people to pay the extra $2 or whatever it was going to be. She said it was the timing that she found objectionable. Ms. Riddle stated the letter to the residents provided a 45-day notice, and it was sent out in July. Councilmember Weber stated that would have been after most people are doing their budget. Ms. Riddle stated the time frame has been in existence for many years. She said notice was given on Thursday, August 22, 2013, and unfortunately, she didn't have the date for when the letter was mailed. Councilman Spiegel stated that for the past three years the City used the revenue in th AB939 Account to fund the increase. He agreed it will cost the City a little bit this year, but the fund will still have $4 million in the account. Councilman Spiegel moved to, by Minute Motion, approve all rate increases and for them to be paid from the AB939 Fund. Motion died for a lack of a second. Councilman Tanner stated he was having a difficult time understanding the 35%. He invited Mr. Frank Orlett to explain the 35% and how it's determined. MR. FRANK ORLETT, District Manager at Burrtec Waste & Recycling Services, explained that as an example, a resident that currently has no recycling and has a trash container going twice a week paid $178. If this resident added a recycling container, which typically is a 3-yard bin, it would drop their trash level to once a week, and recycle to once a week, the rate would then be $134, which was a savings of $44 a month, which affected that 35°/a. If a resident has existing recycling service, residents will see a rate increase. He said the challenge for Burrtec is that they now faced with a State Mandate requiring them to recycle. So if Burrtec is doing all the commercial recycling for free, it's asking Burrtec to give half its business for free and stay in business, which is difficult to do. Currently, on Palm Desert trash rates, 71% of the trash rate is a service fee Burrtec received. He said they recognized they received some value from the recycling commodities, so they took 35% of that rate. Therefore, it was $71 for a 3-yard bin three 34 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 22, 2013 times a week, $34 for trash, $34 for recycling. The rates are competitive to what they are for the Coachella Valley from a recycling standpoint. He said all the other cities in the Coachella Valley have that charge for commercial recycling. The City of La Quinta is the only one that didn't have it. Councilman Tanner said the mandate will push the commercial recycling concept for those that currently didn't have recycle bins. He said the 35% made sense to him now. MR. ORLETT pointed out that Palm Desert Greens and the Resorter are on a Master Bill Account, so they will see a 14-cent increase, not 19 cents, because they get a discount. MS. DEE PEDEN, President of Palm Desert Resorter Association, stated she wasn't concerned with the residential increase whether it was 19 or 14 cents, but she had a major concern with the Commercial Recycling Fee. She said in the past they didn't pay for commercial recycling, and now they will pay $200+ a month, stating it was always free. Ms. Riddle explained the City has always had a free commercial recycling program, which Burrtec offered at no charge. However,this is a new fee that commercial business that generates 3-yards or more are now subject to the Commercial Recycling Program as mandated by the State. She said cities are tasked with implementing the program, but it was State mandated. Mr. Wohlmuth added that up to this point, commercial recycling was voluntary with the hope that if one recycled in their commercial business, it would cut their solid waste bill, but it was completely voluntary. The State passed the law one '/2 years ago and made it mandatory. The City now has to inform everyone that it's mandatory, which triggered the provision within the Franchise Agreement requiring the City to negotiate a rate for mandatory recycling services citywide. MS. PEDEN asked if commercial businesses were now required to recycle. Mr. Wohlmuth answered yes. MS. PEDEN said their General Manager made some calculation and learned their fee would be more than $200 a month/$2,400 a year, which didn't sound like a lot of money, but their budget was already in place. Mayor Harnik stated it sounded like the City had a lot of homeowner associations dealing with the same issue. Ms. Riddle clarified that if the new Commercial Recycling Fee is approved, it will need to be paid. However, the goal is for people to recycle more, , 35 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 22, 2013 pushing their waste over to the recycled side in order to cut down on their trash bill, because the recycle rate is less than the trash rate. She said if one currently has a 3-yard bin picked up three times a week, and they start recycling 50% of their waste, the trash bill will be cut down at least 1/4 to have it serviced twice a week, and have the recycling picked up once a week. Councilman Spiegel reiterated that he moved to, by Minute Motion, approve all rate increases and for them to be paid from the AB939 Fund. Motion died for a lack of a second. Mayor Pro Tem Benson said this was a very confusing issue, because she wondered how long A6939 funds will last if the City kept paying for the increases. One suggestion would be to payonlythe commercial forthis year to give people the chance to budget for it next year, because that seemed to be the problem mentioned by two speakers. Councilman Spiegel agreed with the City picking up the fee this year, and then review it next year when residents are in town. Councilman Tanner agreed; however, if the City picked up the increase for the 35% commercial accounts, he questioned what incentive there was to start separating recyclable waste and regular waste. He said the City had to make it perFectly clear this was the only year it would pick up the fee, and encourage everyone to get educated on recycling. He said that unless there was a substantial decrease in disposable waste verses recyclable waste,the City couldn't offset the cost anymore, because there was only so much money in the coffers, and the City won't use General Funds. The City will use the Recycling Program (AB939), but it won't be able to offset future increases. Councilman Spiegel stated that perhaps Mr. David Hermann can do a nice article in the Brightside about it. Councilmember Weber stated she appreciated the surprise to the people if they didn't get the letter in time before their budgeting, but it seems they realize they need to budget for increases anyway. Further, she agreed with Councilman Tanner that hopefully people will be encouraged to recycle to save money, whereas a free ride didn't encourage anyone to save, recycle, or do anything. Therefore, she was uncomfortable with voting to subsidize one more time, and she understood the increase was a surprise, but that was not a choice of the City; it is a State mandate. She would like to see AB939 to be used for the education of recycling, because it's through education that anything is going to change, not through subsidizing. 36 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 22, 2013 Mayor Harnik pointed out that the AB939 Recycling Fund is used for shredding, which is provided to residential and businesses, along with curb side pick up, hazardous waste disposal, and many other programs that other communities didn't provide. She said residents are used to it, because Palm Desert has historically done a great job. Also, since 2009, Palm Desert has picked up all the increases, so residents haven't had to feel the increase. She too is troubled by the fact that people are operating more often than not on a fiscal year, so they didn't have an opportunity to budget for an increase. Additionally, grant funds for important programs are drying up, so to say there is$4 million that can be given away is not acting in a prudent or fiscally responsible way. If the City continues to subsidize this issue, there will continue to be fewer funds next year. She liked the idea of having the education in place, however, she genuinely believed the City has done a disservice by not giving them ample opportunity to budget. Her suggestion was to find a way for all the commercial establishment to encourage their residents to offset the garbage /waste pick up cost by recycling, and it was imperative that it is done. She would support paying for this change this year, but it didn't feel good to her to do so. She said if there was an emergency, residents are going to expect to have the roads fixed and public safety personnel taking care of them. She said next year, everyone needs to be prepared to absorb those cost themselves and hopefully they will do it by implementing a recycling program. Councilman Spiegel restated his motion to, by Minute Motion, approve all rate increases and forthem to be paid from the AB939 Fund. Motion was seconded by Tanner. Councilman Tanner encouraged Burrtec to do their own commercial publication to all the commercial accounts the City is now picking up, which is the 35%, and inform them this was not going to last. Ms. Riddle asked if the motion was to approve the rate increase for commercial and residential, and to offset it through AB939, and approving the new Commercial Recycle Fee. She said once the new Commercial Recycle Fee went into effect, it would be ongoing. Mayor Harnik asked if AB939 covered only the offset. Mr. Wohlmuth explained the AB939 fee for both residential and commercial was at $1.87 per ton, the offset is three cents per ton collected. However, the $1.87 did not cover the 35% Commercial Recycle Fee; it is a separate issue. He said the 35% Commercial Recycle Fee didn't have a dollar value yet, because iYs never been mandated. Therefore, the City couldn't cover the 35% recycle fee for commercial out AB939. Councilman Tanner asked why were the fees packaged together. 37 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 22, 2013 Ms. Riddle responded that was the request that came in by Burrtec and it was requested at the same time the PPI increase was due. She said Burrtec could have requested them separately, but they didn't. Councilman Tanner stated that with regard to the good faith negotiation, if the City decided it will pick up that 35%, will it have to be negotiated again in 2015. Ms. Riddle said that if the Council chose to approve the new Commercial Recycle Fee, it would go into effect for the duration of the Franchise Agreement. The current Agreement expires May 2015, but Burrtec has a four-year extension option, which she was sure they would like to take advantage of putting the Agreement out to 2019. With the negotiation of the new agreement, whatever time frame that is, everything that's in the Franchise Agreement can be revisited. Councilman Tanner stated he didn't know howthe 35°/a Commercial Recycle Fee can be included in this vote, because it was an extremely open item. Ms. Riddle responded the Council could take a vote, because it would approve a new Commercial Recycle Fee based on 35% of the trash fee. She noted the rate structure was in Exhibit 3 of the staff report. She said if Council wanted to consider this item further, this particular portion can be continued to discuss it more with Burrtec. However, she believed the residents and businesses would have to be re-noticed with regards to the Commercial Recycle Fee. DR. KRAUS commented he was not in favor of the 35%, because it was like writing a blank check. Mr. Wohlmuth explained the 35%was unknown, because the type of service everyone had was unknown. The 35% of the waste is based on whether service is two or three times a week, 3-yard, 4-yard, or 6-yard bin. The rates are known, but the service level is unknown. DR. KRAUS said this was good information, because he can return to his HOA and create more recycle than trash. However, that meant more recycling bins and costing him more money, given that he has more than 1,000 homes. Mr. Wohlmuth explained every pound of recycling reduced his bill by 65%. Ms. Riddle stated that for instance, if a resident had four 3-yard bins serviced weekly, and then started to recycle 50% of the waste, the resident will then have two trash bins serviced three times a week and two recycle binds serviced three times a week, the resident would then pay less. 38 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 22, 2013 With no further public testimony offered, Mayor Harnik declared the public hearing closed. Mayor Harnik pointed out that in all the cities in the Coachella Valley, Palm Desert was by far the least expensive for commercial and residential, which was worth noting. She asked if the fee increase for the residential and _ commercial can be separated from the new Commercial Recycling Fee. Mr. Wohlmuth stated that based on comments from the Council, he recommended the Council cover the increase with AB939 funds for the commercial waste and residential waste and recycling, but not the 35% rate forcommercial recycling. He said that numberwill be unknown until the City can help businesses and HOA's figure that number based on their program. Otherwise, the City would be spending money without knowing the cost. � Councilman Tanner stated someone had to pick up the cost, and how long will this be put to the test, because Burrtec is looking for 35% on the recycled. Mr. Wohlmuth clarified Burrtec is looking for 35% of the solid waste cost to be converted to recycling cost. The concept is that if one recycles the overall waste bill is reduced. Councilman Tanner stated he thought the City couldn't approve two of the pieces without agreeing on the third piece, which is the 35%. Ms. Riddle stated she spoke with Mr. Orlett and he indicated that a rough estimate of what the City would pick up annually was $400,000 annually. Therefore, that would significantly cut into the $4 million in the AB939 account, depending on how many years it would subsidize the fee. She said the City could probably do it for one year, but that amount could increase to about $500,000; however, that was just a rough estimate. Mayor Pro Tem Benson said those cost estimates would get rid of the AB939 Account in a hurry. Mayor Harnik stated she didn't believe everyone was straight on the motion and it was probably best to continue this matter to address it appropriately, and it may warrant a study session. Ms. Riddle recommended the Council vote to approve to offset the residential and commercial rate through AB939, continue the new Commercial Recycle Fee, re-notice residents and businesses on that aspect, and schedule a study session. 39 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 22, 2013 Councilman Spiegel amended his motion and moved to: 1) By Minute Motion, approve the proposed 1.2%PPI rate increase and 1.85%Gate/Disposal Fee Increase from $40.54 to $41.28 per ton; 2) waive further reading and adopt Resolution No. 2013 - 54, approving the new adjusted rate schedule of fees (Exhibit 3 for Residential, 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; 3) by Minute Motion, continue public hearing consideration of the new Commercial Recycle Fee set at 35% of Trash Rate, including scheduling a Study Session on this matter for 2:00 p.m. prior to said Council Meeting (September 26, 2013); 4) by Minute Motion, apply the PPI Rate and Gate/Disposal Fee increases to the City's AB 939 Fund instead of resident and commercial billing accounts for FY 2013-2014. Motion was seconded by Tanner. Councilman Tanner encouraged Burrtec to meet with Council orthrough the Study Session to explain the 35% and make it clear, and if the dollar amount was $400,000, it will either be a City obligation or the commercial clients. Ms. Riddle questioned the noticing requirements for residents and businesses. Mr. Erwin stated the public hearing was noticed, and staff is just continuing the item; therefore, this item didn't have to be re-noticed. Ms. Klassen pointed out the item will have to be continued to September 26, 2013, since there was a study session scheduled for September 12. Mayor Harnik called for the vote, and the motion carried by a 5-0 vote, including continuance of the matter to September 26, 2012. With City Council concurrence, Mayor Harnik called for a recess of the meeting at 6:20 p.m. She reconvened the meeting at 6:30 p.m. and followed up on Section XVII - Public Hearings, Item A- President's Plaza I, which was recessed in order for staff to count ballots received for the proceedings. 40 PRELIMINARY MINUTES DR,AFT REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 22, 2013 C. CONSIDERATION OF THE APPROVAL OF A COMPREHENSIVE UPDATE TO THE PALM DESERT MUNICIPAL CODE, TITLE 25 - ZONING, Case No. ZOA 13-223 (City of Paim Desert, Applicant). Principal Planner Tony Bagato stated this was the update of the Zoning Ordinance that staff presented at two study sessions. This has been work of more than 18 months working with a consultant. He said this was only a comprehensive update that basically reorganizes and restructures the existing document to make it user friendly; it has no policy changes. He said there are three separate hearing items that will come later in September, because there are some modifications from the Planning Commission,which staff intends to present to Council after the new Code is adopted. Mayor Harnik asked if this was the case where the text was converted into matrixes. Mr. Bagato answered yes, stating images were created and inserted, along with new items mandated by State Law for the Housing Element. He noted the Planning Commission recommended approval. Mr. Bagato displayed samples of some of the changes made to the Ordinance, showing how more images are provided to make it user friendly. The Ordinance includes the following required Code updates: High Density Housing Overlay; Mixed Use Overlay District; Affordable Housing and Density Bonus Provisions; Bicycle Parking Requirements, part of CalGreen; Clean Air Vehicle Parking Requirements, part of CalGreen;Americans with Disabilities Act reasonable accommodations; homeless shelters permitted in industrial areas by right; Transitional and Supportive Housing is to be atlowed similarly to other group homes; and definitions. Mayor Harnik declared the public hearing open and invited anyone wishing to address the City Council on this matter to come forward at this time. With no public testimony offered, she declared the public hearing closed. Councilman Tanner moved to waive further reading and passed Ordinance No. 1259 to second reading, approving Zoning Ordinance Amendment No. 13-223, amending Palm Desert Municipal Code Section 25 - Zoning in its entirety. Motion was seconded by Weber and carried by a 5-0 vote. Responding to question, Mr. Bagato explained September 12 will be the second reading of this Ordinance, and at the end of September he will bring to the City Council the other three items. 41 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 22, 2013 XVI11. REPORTS AND REMARKS A. CITY MANAGER 1. City Manager Meeting Summaries for the Period of July 1 -August 9, 2013. Mr. Wohlmuth noted the Meeting Summaries report contained in the agenda packets and offered to answer questions. With City Council concurrence, the Meeting Summaries were received and filed. 2. Report on United Way Campaign and Employee Payroll Deductions. Mr. Wohlmuth referred to his report in the packets, resulting from Councilmember Weber's request at the last Council Meeting. He said she believed there was a certain amount of unfairness and bias toward the United Way, with the City processing employee payroll deductions for donations to United Way annually. He confirmed that the City of Palm Desert has been participating in the United Way fund-raising campaign forover 20 years; essentially, it being the only non-profit for which the City has processed payroll deductions. Since the request to study it further, employees were polled for their desire to continue to participating in United Way payroll deductions, with 26 saying they would, 36 saying they would not, and 1 saying that they would like to donate to other non-profits through payroll deduction. Further, he said this United Way donation processing through payroll deduction represents approximately$500 of staff time per year, with the Finance and Human Resources Departments being affected in the processing. He pointed out that another important factor to consider is that the current campaign runs through February 2Q14. His report was intended to be for informational purposes only since we are in the midst of the current campaign year; and discontinuing it at this time would likely be harmful to both employees and the United Way. He hoped that City Council would use this information in January 2014 to help make a decision about continuing the program prior to the next campaign. Councilmember Weber advised that it was not the issue of employees donating to the United Way, because they have every right to give that organization a canceled check to make a donation from their personal bank account. Further, she said she was not opposed to United Way coming in to make a presentation to employees; however, other non-profits may also like to come in and make such a fund- raising presentation. 42 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 22, 2013 Responding to the question raised, Mr. Wohimuth said this was an option available for other non-profits. But he said as City Manager, he would have to analyze exactly how much time would be necessary for something like five non-profits going through payroll deduction. Councilmember Weber interjected that she intended that there be no further payroll deduction processing. Her concept was that employees would provide the organization of their choice a canceled check to deduct funds from their personal bank accounts in order to make donations. Mr. Wohlmuth agreed with this concept, pointing out that then the only staff time involved would be having the Human Resources Department organize a charity lunch event for this purpose. Mayor Harnik proposed categorizing this as a Suggested Item for a Future City Council Meeting in January 2014. In response to question about what other cities are doing regarding United Wayfund-raising, Mr. Wohlmuth believed all cities participate. Mayor Harnik added that she personally participates, it's an easy way to give, and she was aware that the other cities and CVAG do as well. She felt another consideration is determining what non-profits get invited to make presentations, which is another whole issue. Mr. Wohlmuth said he would favor having a charity fair-type of event for employees, where employees could go around to the different tables and make their choices for such donations. Although, he commented that this type of an event may not be that successful, based on prior experience with health fairs at the lunch hour. Mayor Harnik observed that there is a lot of coordination required for that type of an event, so she was skeptical that it would cost less of staff time. Mr. Wohlmuth offered to place this item on the agenda for Council consideration prior to the new United Way Campaign in January 2014. Councilmember Weber agreed,adding that United Waywas welcome to come in and do their presentation, but donations would no longer be collected through Palm Desert employee deductions, because she believed it represented the City providing fund-raising for an organization. 43 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 22, 2013 Mr. Wohlmuth stated he was unsure about ailowing an organization, such as United Way, to make a presentation. But he reiterated that perhaps the City could coordinate a charity fair,with employees being able to go from table to table to inquire about the non-profits and decide about making donations. Whereas, if presentations were made by all the non-profits, it would take up many, many lunch hours, and he wouldn't recommend or support that concept. With City Council concurrence, the United Way Campaign and Payroll Deductions report was received and filed. 3. Roadway Project Updates Mr. Wohlmuth reported: a) Highway 111 -will be complete next week, after about eight more days of paving. The contractor is moving along quite well and the project is going welL b) Monterey Avenue - more challenging, working on coordinating scheduling between Public Works and College of the Desert (COD), which starts its next term on Monday, August 26. The project will not be complete by that time; there is additional work of constructing catch basins, and a final 2" lift of the warm asphalt to be laid. Potentially, two lanes will be open at least northbound and at least one, possiblytwo,southbound. The project also continues along Fred Waring at finro locations, with a final warm asphalt lift on the slip ramp to Monterey from Fred Waring currently scheduled to be complete about two weeks after COD starts the fall semester. He added that the road will be open before all final details are complete, such as constructing aprons around the raised manhole covers. c) Cook Street Sinkhole - more troubling news here regarding the cave-in at Sheryl Avenue earlierthis week where CVWD's(Coachella Valley Water District)33-inch clay sewer pipe that runs from the north to the Whitewater Treatment Plant has been compromised. It's been taking sand with it to the Plant and created a void under the pavement, which gave away. CVWD's been very attentive to the matter, bringing in a specialized contractor to run a camera down the pipe. It was initially thought to be a 200-foot compromise, but today looks to be as much as 700 feet. Therefore, they need about two weeks to confirm how much of the sewer pipe is compromised, followed by it being dug up and replaced,taking at least another 30+ days. Mr. Wohlmuth went on to say this meant that there would be significant impacts to Cook Street over the next month. He'd spoken with PDHS Principal Hicks today and asked what he'd like the City to 44 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 22, 2013 do to make it easier for their first day of the 2013-2014 schooi year on September 3, so that collaboration will continue. Further,the City will continue to work closely with CVWD, and General Manager Jim Barrett has indicated that perhaps they could install diamond-plate over the current sinkhole to facilitate traffic flow until they're ready to order and start laying the replacement pipe. He assured Council that staff will continue to closely monitor this situation. B. CITY ATTORNEY None C. CITY CLERK None D. PUBLIC SAFETY 1. Fire Department None 2. Police Department None E. MAYOR AND MEMBERS OF THE CITY COUNCIL 1. City Council Requests for Action: None 2. City Council Consideration of Travel Requests and Reports: None 3. City Council Committee Reports: None 45 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 22, 2013 4. City Council Comments: a) Mayor Harnik expressed thanks to everyone for their patience during Palm Desert's road construction projects this summer. 5. Suggested Items for Future City Council Meeting Agendas: a) United Way Campaign for February 2014 to be brought back to Council in January. XIX. ADJOURNMENT Upon a motion by Spiegel, second by Weber, and 5-0 vote of the City Council, Mayor Harnik adjourned the meeting at 6:55 p.m. JAN C. HARNIK, MAYOR ATTEST: RACHELLE D. KLASSEN, CITY CLERK CITY OF PALM DESERT, CALIFORNIA 46