HomeMy WebLinkAboutPrelim - CC - 08-28-2014 DRAFT
PRELIMINARY MINUTES
REGULAR PALM DESERT CITY COUNCIL MEETING
THURSDAY, AUGUST 28, 2014
CIVIC CENTER COUNCIL CHAMBER
73510 FRED WARING DRIVE, PALM DESERT, CA 92260
I. CALL TO ORDER - 3:00 P.M.
Mayor Tanner convened the meeting at 3:01 p.m.
II. ROLL CALL
Present:
Councilmember Jean M. Benson
Councilmember Jan C. Harnik
Councilman Robert A. Spiegel
Mayor Pro Tem Susan Marie Weber
Mayor Van G. Tanner
Also Present:
John M. Wohlmuth, City Manager
David J. Erwin, City Attorney
Rudy P. Acosta, Assistant City Manager
Rachelle D. Klassen, City Clerk
Russell Grance, Director of Building 8� Safety
Lauri Aylaian, Director of Community Development
Martin Alvarez, Director of Economic Development
Paul S. Gibson, Director of Finance/City Treasurer
Janet M. Moore, Director of Housing
Mark Greenwood, Director of Public Works
Stephen Y. Aryan, Risk Manager
Casey Hartman, Battalion Chief, Palm Desert Fire/Riverside Co. Fire/Cal Fire
Bill Sullivan, Asst. Chief, Palm Desert Police/Riverside Co. Sheriff's Dept.
Grace L. Mendoza, Deputy City Clerk
III. ORAL COMMUNICATIONS - A(CLOSED SESSION ITEMS)
MR. BOB HORN, President of All Things Are Possible, Inc. (ATAP), Palm Desert,
addressed the City Council to introduce a new program he was initiating in the City.
For the last seven years he's overseen the Red Hot Ballroom Program now in 40
schools throughout the Coachella Valley, with 2,000 kids being taught ballroom
dancing over a period of 28 weeks, followed by a dance competition between 600
of those participants at Shadow Hills High School. Approximately one year ago, he
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was invited to UCLA Medical Center to talk about the Red Hot Ballroom Program
and how it might be available to kids with disabilities, noting that there weren't too
many programs available in the local area for these kids currently. He presented
a flier to Councilmembers regarding Music& Motion Therapy sponsored by ATAP,
which noted that 1 in every 68 kids worldwide is affected by autism. He said this
terrible affliction causes kids to be ultra-shy, to the point that many drop out of
school, but his goal was to help tum that around with Music& Motion Therapy. His
program just took over site of the former childcare center on the north side of
Westfield Palm Desert mall. There was a lot of work to do be done to refurbish the
location with a ballroom, music room, and a gifted room for the kids. He said they
were looking for any available grant funding to help accomplish the necessary
renovation. He added that based on their experience, they know the program
works, is something very much needed here, and they want to set up the
appropriate accommodations to provide such therapy for the kids, along with
embracing parents in the program. Later on they plan to bring wheelchair-bound
kids to the program for them to play in bands, helping build their self-esteem and
respect. He went on to say they also have a program available for children with
Asperger's Syndrome; Albert Einstein had it—a genius in math and science, but the
schools don't have the ability to set a curriculum for these kids, it's based on the
ability of average-level students instead. He added that former scientist colleagues
of his from Cal Tech have offered to come in free of charge to mentor these kids.
Responding to question about how many kids were affected by the aforementioned
disorders, he said that Desert Sands Unified School District works very closely with
them based on success of their Red Hot Ballroom Program and reports that 386 of
their kids are affected by autism. He added that the number of kids is growing each
year. He said of the approximately 400,000 Coachella Valley residents, there are
thousands of them affected by autism alone. Further, he said their program also
plans to work with kids diagnosed as bipolar; the facility they've secured is not
adequate to take them all at once, it can handle about 168 kids going six
days/week. But they also have partnerships with Angel View, which will bring their
residents down during the day while kids are in school, as well as the Braille
Institute, Hearing Institute, and Desert ARC.
Mayor Tanner and Councilmembers commended Mr. Horn for his good work and
asked Mr. Wohlmuth to make sure an application for Outside Agency Funding is
forwarded to him for next year's cycle. Mr. Wohlmuth noted that the process for
Fiscal Year 2014-2015 is completed, but staff will be sure to include Mr. Horn's in
next year's solicitation.
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IV. ADJOURN TO CLOSED SESSION
Request for Closed Session:
A. Conference with Legal Counsel regarding significant exposure to litigation
pursuant to Government Code Section 54956.9(d)(2):
Number of potential cases: 2
With City Council concurrence, Mayor Tanner adjourned the meeting to Closed
Session at 3:10 p.m. He reconvened the meeting at 4:00 p.m.
V. RECONVENE REGULAR MEETING - 4:00 P.M.
A. REPORT ON ACTION FROM CLOSED SESSION.
None
VI. PLEDGE OF ALLEGIANCE TO THE FLAG OF
THE UNITED STATES OF AMERICA - Councilmember Jean M. Benson
VII. INVOCATION - Councilman Robert A. Spiegel
VIII. ORAL COMMUNICATIONS - B
MS. JULIE MIGNOGNA and MS. STACY ESTRADA, on behalf of the American
Cancer Society, wished to speak about the "Relay For Life of Palm Desert," a 24-
hour community event to fight cancer on October 25-26, 2014, at Palm Desert High
School. Ms. Mignogna related that the event began over 14 years ago,the very first
"Relay For Life" event in the Coachella Valley. IYs about both fund-raising and
engaging the community; the only event really particular to the City of Palm Desert,
and they wanted to bring the whole community out to fight cancer, provide
information about prevention, programs and services,and different ways to fight the
disease. Survivors are celebrated and honored with both a breakfast and a dinner
during the event. Additionally, this year they're going to be recognizing teams that
have participated for over 5 and 10 years. They invited City Councilmembers to be
honorary chairs of the event this year, and as such, they'd be recognized on stage
and would be presenting the Heritage and Legacy Awards to the 5- and 10-year
teams. T-shirts will be provided, and they asked Mayor Tanner to kick-off the event
with an address during the opening ceremony, as well as Councilmembers to be
walking participants. They graciously thanked the City Council for all of its support
and for having a team participate in the past.
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Councilmember Harnik said she'd been involved with the event for many years, her
kids walked in the first event at Palm Desert High School. She was intrigued by the
Disney Theme and asked for more information.
MS. MIGNOGNA answered that the teams can have any sort of Disney affiliation—
they were encouraged to be creative about ideas — anything Disney. She added
thatthey'll have Disney-themed laps and be celebrating thatwhimsical,fun,exciting
atmosphere.
MS. SAMANTHA CLARK and MS. ALY FOSTER addressed the City Council on
behalf of Bermuda Dunes Learning Center - Palm Desert Campus and The Art
House. Ms. Clark stated she was in the process of opening an after-school family
daycare across from Washington Charter School. She said that Bermuda Dunes
Learning Center at Palm Desert operates the current after-school program that is
full with a wait-list. Her new program can potentially open up 14 new spots for
participants, and they understood that the City had funding available for new
childcare spaces. She said her new after-school program would share Hope
Lutheran Church's playground with Bermuda Dunes Learning Center for both play
and snacktimes. However, Hope Lutheran was underconstruction currently, pulling
out most of the mature shade trees and existing shade structure used for snack
time. Therefore, today she asked if the City could help provide funding for a
replacement shade structure, now that there will be very limited shade at the site.
MS. FOSTER went on to say that Bermuda Dunes Learning Center was working
closely with Ms. Clark to open up the home day-care. Both the Learning Center and
Hope Lutheran would allow herto come on theircampus, share snacktime, and use
the playground. But with removal of the majority of the trees and shade structure,
they'll need something to replace it. Hope Lutheran graciously offered that if the
Leaming Center can get funding, a new shade structure could be installed there.
She said this would be very beneficial to the kids for snack time so that they
wouldn't have to sit in the hot sun in September and October or in April - June, so
it was their hope that the City would look favorably on their request, given that
Ms. Clark's facility will open up 14 new spots.
In response to Mayor Tanner, Mr. Wohlmuth answered that the City does have
Childcare Mitigation Fees. Although historically, the Council has opined that those
funds should only be used for new spaces. Further, the City Council has given
Hope Lutheran and Bermuda Dunes Learning Center a sizable grant from that fund
for their former improvements at the Church. He said it was a policy issue of the
Council whether or not to use those funds for other ancillary improvements, such
as shade structure, that may or may not increase the number of childcare spaces
available in Palm Desert. He offered to prepare a staff report for Council regarding
consideration of the use of mitigation funds, including a legal opinion about the
impact if the spaces are not directly associated with spaces at Hope Lutheran.
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MS. FOSTER said the new program the Bermuda Dunes Learning Center is
collaborating on with Ms. Clark is called "The Art House," which is the family
daycare that will be providing 14 new spots. It's an after-school program that will
provide both daycare and an innovative art program for the kids. Responding to
question about a cost estimate for the proposed shade structure, she said it was
around $19,000.
Mayor Tanner thanked Ms. Clark and Ms. Foster for their appearance today and
indicated the City would be back in touch about their request.
IX. AWARDS, PRESENTATIONS, AND APPOINTMENTS
A. PRESENTATION TO RECOGNIZE DEAN DOWTY FOR HIS SERVICE TO
THE CITY OF PALM DESERT AND ITS PARKS & RECREATION
COMMISSION, 2011 - 2014.
Mr. Dowty was unable to be present for the recognition at today's meeting.
The engraved crystal clock in honor of his service will be sent to him
separately.
B. PRESENTATION OF PROCLAMATION DECLARING NOVEMBER 20,
2014, AS "TRANSGENDER DAY OF REMEMBRANCE" IN THE CITY OF
PALM DESERT.
On behalf of the entire City Council, Mayor Tanner presented the
proclamation to representatives of the Transgender Day of Remembrance
Palm Springs event, Treasurer John DiNapoli, and Member Tobi Sherman,
along with Victoria Hale, and additional representatives,who very graciously
accepted and provided statistics to help raise public awareness of the
violence experienced by transgender persons and to help eliminate it.
C. INTRODUCTION OF NEW DEAN OF THE PALM DESERT CAMPUS OF
CALIFORNIA STATE UNIVERSITY, SAN BERNARDINO,
DR. SHARON BROWN-WELTY.
Dr. Brown-Welty introduced herself to the City Council and expressed how
pleased she was to be here and to be Dean of the Palm Desert Campus.
She looked forward to working with the City, noting that what it had done
already was simply amazing — a beautiful campus, and she offered to
provide a tour if any Councilmembers had not yet experienced it. This year
she said that CSUSB-Palm Desert admitted 112 new freshmen; last year
there were 106. She said 99 were returning, with six going on to other
institutions of higher education, of which they were very proud. Additionally,
she said they're very proud of their facilities and very happy about the
support they've received from the City Council and City of Palm Desert.
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D. PRESENTATION TO THE CITY COUNCIL OF BRONZE SCULPTURE
FROM PALM DESERT'S SISTER CITY OF IXTAPA-ZIHUATANEJO,
MEXICO.
Mayor Tanner welcomed Palm Desert Sister Cities Foundation Members
Rose Mary Ortega and Nancy Jo Mclntosh to the podium. He went on to say
that a delegation of Palm Desert representatives traveled to its Sister City
Ixtapa-Zihuatanejo in the past week and were hosted by its EI Presidente
and Councilmembers there. He said in appreciation for the relationship with
the City of Palm Desert, the delegation was presented with a key to the city
of Ixtapa and a beautiful bronze statue, "The Fisherman," which was
displayed at today's meeting and will be permanently located in the Sister
Cities display case in the City Hall Administrative Lobby. He noted that both
of the ladies had been participants in Palm Desert's Sister City Program for
the last 15+ years.
Ms. Ortega detailed some of the programs that the two Sister Cities have
shared, including partnering with other groups, such as Cal Fire, Riverside
County Fire Department, various other Coachella Valley Fire Departments,
Eisenhower Medical Center, the Boy Scouts of America, Palm Desert Hotels
and the business sector, as well as Rotary Clubs. The result was
engagement in many different programs, in the donation of fire equipment,
training of firefighters, hospital equipment, art, culture, and education with
the McCallum Theatre, and represented a multitude of programs of which
Palm Desert has been very proud to be a part. She said acknowledgment
of all these programs was given to Mayor Tanner and the entire delegation,
including presenting the beautiful sculpture, along with acknowledging the
support that's always been present on behalf of the entire Palm Desert
City Council. She added that with Councilmember Benson participated
during this trip, and Ixtapa presented her with something beautiful because
of her steadfast support present since year one. She said it was a wonderful
event, with raising of the flags, playing of the National Anthem, and a great
deal of hospitality. She and Ms. Mclntosh were very proud to participate,
and both returned home very re-energized, ready to go with ideas in terms
of culture and humanitarianism — with another fire station, hopefully, to be
built in the City and Resort of Ixtapa. She said Sister Cities will be again
working with other local agencies on future programs going forward.
Mayor Tanner thanked Ms. Ortega and Ms. Mclntosh and related that it was
a great enlightening experience for him. He went on to relate that a few
members of the delegation were interviewed for their impressions of what it
was like to be in Mexico, given that the U.S. was indicating it unwise to be
traveling there. He responded that he travels to and from Mexico all the time
and has never had a problem. Ixtapa-Zihuatanejo is a beautiful area, and he
encouraged anyone who hadn't been there to visit it.
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X. CONSENT CALENDAR
A. MINUTES of the Regular City Council Meetings of July 10, July 24, and
August 14, 2014.
Rec: Approve as presented.
B. CLAIMS AND DEMANDS AGAINST THE CITY TREASURY - Warrant
Nos. 268, 273, 274, 275, 1, 4, 5, 8, 9, 10, 12, 14, 18, 22, 25, 26, 31, 34, 35,
and 40.
Rec: Approve as presented.
C. CLAIM AGAINST THE CITY (#742� by Mario Pena De La Fuente in the
Amount of$25,000.
Rec: By Minute Motion, reject the Claim and direct the City Clerk to so
notify the Claimant.
D. COMPLIANCE ANALYSIS AND INVESTMENT REPORTS forthe Month of
May 2014 (Joint Consideration with the Successor Agency to the
Palm Desert Redevelopment Agency).
Rec: Receive and file.
E. APPLICATION FOR ALCOHOLIC BEVERAGE LICENSE by Haru Sushi,
72286 Highway 111, Suite J5, Palm Desert.
Rec: Receive and file.
F. APPLICATION FOR ALCOHOLIC BEVERAGE LICENSE by Manhattan in
Palm Desert Inc., 74225 Highway 111, Suite B, Palm Desert.
Rec: Receive and file.
G. APPLICATION FOR ALCOHOLIC BEVERAGE LICENSE by Pueblo Viejo
Grill, 72620 EI Paseo, Palm Desert.
Rec: Receive and file.
H. APPLICATION FOR ALCOHOLIC BEVERAGE LICENSE by
Red Lobster#6378, 72291 Highway 111, Palm Desert.
Rec: Receive and file.
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I. CITY COMMITTEE AND COMMtSSION MINUTES.
1. Art In Public Places Commission Meeting of June 18, 2014.
2. Audit, Investment & Finance Committee Meeting of May 27, 2014.
3. Marketing Committee Meeting of May 20, 2014.
Rec: Receive and file.
J. REQUEST FOR DECLARATION of Surplus Vehicles and Authorization for
Disposal As Proposed.
Rec: By Minute Motion, declare the vehicles and equipment listed in the
accompanying staff report as surplus and authorize disposal as
proposed.
K. REQUEST FOR AUTHORIZATION to Streamline Use of Vendors for the
Finance Department and its Oversight of the Parkview and Henderson
Buildings by Granting an Exception to Bidding Requirements and Approving
the Finance DepartmenYs Various Vendors and Qualified Service Providers
List for the Period of October 1, 2014, through September 30, 2015.
Rec: By Minute Motion, authorize the streamlined use of vendors for the
Finance Department and its oversight of the Parkview and Henderson
Buildings by granting an exception to bidding requirements and
approving the Finance Department's Various Vendors and Qualified
Service Providers List for the period of October 1, 2014 -
September 30, 2015.
L. REQUEST FOR APPROVAL of the Use of Desert Recycling, Inc., for Dump
Fees During Fiscal Year 2014-2015 in an Amount Not to Exceed $40,000.
Rec: By Minute Motion, approve the use of Desert Recycling, Inc.,
Thousand Palms, California, for dump fees during FY 2014-2015 in
an amount not to exceed $40,000 — funds are available in General
Fund Account No. 110-4310-433-3320 - R/M Streets.
M. REQUEST FOR ACCEPTANCE of Bid from Pride Industries for Printing of
the 2015 City Calendar.
Rec: By Minute Motion: 1)Accept the bid from Pride Industries, Roseville,
California, for printing of the City's annual Calendar for 2015 in the
amount of$12,030; 2) authorize the Mayor to execute same—funds
are available in the 2014-2015 Marketing Budget, Account
No. 110-4417-414-3091.
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N. REQUEST FOR RATIFICATION of the City Manager's Approval for
Monitoring of the GPS System in the Amount of$9,888.20 and ForApproval
of the Second Phase of the GPS Tracking System Installation in the Amount
of$22,500.
Rec: By Minute Motion: 1) Ratify the City Manager's approval for the
monitoring of the GPS system in 33 City vehicles for FY 2014-2015
in the amount of$9,888.20; 2)approve the purchase and installation
ofthe GPS system and monitoring costforthe remaining Cityvehicles
in FY 2014-2015 in the amount of $22,500 — funds are available in
FY 2014-2015 in Account Nos.530-4195-415-4030-Fleet Equipment
Replacement and 110-4314-413-3340 - R/M Motor Vehicles Fleet.
O. REQUEST FOR RATIFICATION of the City Manager's Approval of
Extending Contract with Prudential Overall Supply for Industrial Uniform
Rental and Laundry Services in the Amount of $5,324.80 (Contract
No. C31651).
Rec: By Minute Motion: 1) Ratify the City Manager's approval of extending
the subject contract with Prudential Overall Supply; 2) approve
Contract No. C31651, the first one-year extension, with Prudential
Overall Supply for Industrial Uniform Rental and Laundry Services in
the amount of $5,324.80 — funds are available in General Fund
Account No. 110-4310-433-3320 - Supplies-Uniform Rental.
P. REQUEST FOR APPROVAL of the Purchase of "Duality" by Heath Satow
in the Amount of $24,000 and Authorize Mayor to Execute a Contract for
Purchase of Artwork (Contract No. C31730).
Rec: By Minute Motion, approve purchase of "Duality" by Heath Satow in
the amount of$24,000 and authorize the Mayor to execute a contract
for purchase of artwork — funds are available in Account
No. 436-4650-454-4001.
Q. REQUEST FOR ACCEPTANCE of Donation of "Urban Tree" by
Carlos Basanta to the City's Public Art Collection from the Artist and
Authorize Mayor to Sign Deed of Gift to City of Palm Desert Form.
Rec: By Minute Motion: 1) Approve acceptance of the donation of
"Urban Tree" by Carlos Basanta to the City's Public Art Collection
from the artist; 2) authorize the Mayor to sign Deed of Gift to City of
Palm Desert form.
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R. REQUEST FOR APPROVAL of Contract with Anthem Blue Cross of
California to Provide an Employee Assistance Program (EAP) (Contract
No. C33880).
Rec: By Minute Motion, approve the subject contract with Anthem Blue
Cross of California to provide an Employee Assistance Program
(EAP)and authorize the City Manager to finalize and execute—funds
in the amount of approximately $3,300 annually are available in
FY 2014-2015 Budget in Account No. 110-4154-415-3090 - Human
Resources Professional-Other.
S. REQUEST FOR APPROVAL of Amendment No. 1 to Contract with Quality
Code Publishing, LLC, for Codification, Editorial, and Supplement Services
Associated with Maintaining the Palm Desert Municipal Code, Increasing the
Per-page Rate for Printed Supplements by $2.00 (from $20.00 to $22.00)
Each (Contract No. C23170).
Rec: By Minute Motion, approve Amendment No. 1 to the subject contract
with Quality Code Publishing, LLC, Seattle, Washington, increasing
the per-page rate for printed Palm Desert Municipal Code Supplement
pages in each semiannual update by $2.00, from $20.00 to $22.00,
and authorize the Mayor to execute Amendment No. 1 for this
purpose, with all other service charges to remain the same as in
original contract — funds are available in General Fund Account
No. 110-4111-410-3090-City Clerk Department Professional-Other.
T. REQUEST FOR AUTHORIZATION to RejectAll Bids Received in Response
to Solicitation for the Freedom Park Well Site Improvements Project
(Contract No. C23210H, Project No. 713-13).
Rec: By Minute Motion: 1) Reject all bids received for the subject contract;
2) authorize the City Clerk to re-advertise and call for bids for the
project.
U. REQUEST FOR APPROVAL of Amendment No. 1 in the Amount of$5,000
to Contract with FG Creative, Inc., for Expenditures Related to the EI Paseo
Business Improvement District (Contract No. C31981).
Rec: By Minute Motion: 1) Approve Amendment No. 1 in the amount of
$5,000 to the subject contract with FG Creative, Inc., Palm Desert,
California; 2) authorize the Mayor to execute same — funds are
available in Account No. 271-4491-464-3215.
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V. REQUEST FOR APPROVAL of Amendment No. 1 in the Amount of$4,000
to Contract with CleanStreet for Parking Lot Sweeping Services (Contract
No. C32720).
Rec: By Minute Motion: 1) Approve Contract Amendment No. 1 in the
amount of$4,000 to the subject contract with CleanStreet, Gardena,
California,for Parking Lot Sweeping Services; 2)authorize the Mayor
to execute Amendment No. 1 — funds are available in the various
Building and Business Improvement District Accounts.
W. REQUEST FOR APPROVAL of an Increase to Plan Review/Inspection
Service Contract with Scott Fazekas &Associates - Fiscal Year 2013-2014
(Contract No. C32950A).
Rec: By Minute Motion: 1) Authorize an additional $17,700.61 to Account
No. 110-4420-422-3010 related to Professional
Architectural/Engineering (SFA, Irvine, Califomia - Plan Review,
Contract No. C32950A); 2) appropriate $17,700.61 from the
Unobligated General Fund Reserve to FY 2013-2014 Account
No. 110-4420-422-3010 -with cost for Contract Services recoupable
through Plan Check and Building Permit Fees collected for projects.
X. REQUEST FOR APPROVAL of an Increase to Plan Review/Inspection
Service Contractwith Willdan Engineering-Fiscal Year2014-2015(Contract
No. C329506).
Rec: By Minute Motion: 1) Authorize an additional $45,600 to Account
No. 110-4420-422-3010 related to Professional
Architectural/Engineering (Willdan Engineering, San Bemardino,
Califomia - Contract No. C32950B); 2) appropriate $45,600 from the
Unobligated General Fund Reserve to FY 2014-2015 Account
No. 110-4420-422-3010 -with cost for Contract Services recoupable
through Plan Check and Building Permit Fees collected for projects.
Y. REQUEST FOR ACCEPTANCE OF WORK for Contract No. C33230 —
2014 Slurry Seal Project (Project No. 751-14) (Pavement Coatings, Inc.,
Jurupa Valley, CA).
Rec: By Minute Motion, accept the work as complete and authorize the
City Clerk to file a Notice of Completion for the subject project.
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Z. REQUEST FOR RATIFICATION of Change Order No. 1 to Contract for
Renovation of the Desert Witiow Driving Range Project (Contract
No. C33580).
Rec: By Minute Motion: 1) Ratify Change Order No. 1 in the amount of
$17,900 to the subject contract with Panorama Corp., Alta Loma,
Califomia, for additional work required for the project; 2) authorize
transferof the 10%contingency amount of$5,353.53 to contract base
for the project; 3) appropriate $12,546.47 from Account
No. 441-4195-495-8092 to the project.
AA. REQUEST FOR APPROVAL of a Grant of Easement to the City of
Palm Desert for Public Use, a Permanent Easement, and Right-of-Way for
Street and Public Utility Purposes Within Julie Lane.
Rec: By Minute Motion, authorize the Mayor to execute a Grant of
Easement to the City of Palm Desert for public use, a permanent
easement,and right-of-way for street and public utility purposes within
Julie Lane.
BB. REQUEST FOR APPROVAL of Request by the Palm Desert Police
Department to Utilize Asset Forfeiture Funds for the Purchase of Four (4)
Q-StarTechnology FlashCAM-880SX Portable Vandalism Deterrent Systems
in the Amount of $30,478.40.
Rec: By Minute Motion, approve the purchase of four (4) Q-Star
Technology FlashCAM-880SX Portable Vandalism Deterrent Systems
from Q-Star Technology, utilizing Asset Forfeiture Funds in the
amount of$30,478.40.
CC. CONSIDERATION of the Legislative Review Committee's Recommendation
to Provide a Letter to the California Public Utilities Commission - Opposing
Southern California Edison's(SCE)2015 General Rate Case(GRC)Phase 2
Application A.14-06-014.
Rec: By Minute Motion, authorize the Mayor to send a letter of opposition
to the Califomia Public Utilities Commission concerning SCE's 2015
General Rate Case Phase 2 Application (A.14-06-014).
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DD. REQUEST FOR AUTHORIZATION for the City's League of California Cities
Voting Delegate to Approve the 2014 Annual Conference Resolution
Conceming the Environmental Impacts of Illegal Marijuana Grows on Both
Private and Public Lands Throughout Califomia.
Rec: By Minute Motion, authorize the City of Palm Desert's League of
Califomia Cities Voting Delegate to approve the 2014 Annual
Conference Resolution (Illegal Marijuana Graws).
EE. INFORMATIONAL REPORT on Sculptures "Awilda" and "Laura" by
Jaume Plensa> Proposed for Installation in the Faye Sarkowsky Sculpture
Garden in the Palm Springs Art Museum In Palm Desert,
72567 Highway 111.
Rec: By Minute Motion, receive and file.
Upon a motion by Benson, second by Weber, and 5-0 vote of the City Council, the
Consent Calendar was approved as presented (AYES: Benson, Harnik, Spiegel, Weber,
and Tanner; NOES: None).
XI. CONSENT ITEMS HELD OVER
None
XII. RESOLUTIONS
A. RESOLUTION NO. 2014 - 74 - A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF PALM DESERT, CALIFORNIA, APPROVING THE
SUBDIVISION MAP OF PARCEL MAP NO. 36338 IN AVONDALE GOLF
CLUB (Avondale Golf Club, Applicant).
Mr. Greenwood stated this was a parcel map that carved out three additional
residential lots about a 1/4 acre each on the Avondale Golf Club, and staff
recommended approval.
Councilman Spiegel moved to waive further reading and adopt Resolution
No. 2014- 74. Motion was seconded by Harnik and carried by a 5-0 vote (AYES: Benson,
Harnik, Spiegel, Weber, and Tanner; NOES: None).
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6. RESOLUTION NO. 2014 - 75 - A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF PALM DESERT, CALIFORNIA, APPROVING THE
SUBDIVISION MAP OF PARCEL MAP NO. 36363 FOR THE
CARLOS ORTEGA VILLAS (City of Palm Desert, Applicant).
Mr. Greenwood stated this parcel map trues-up the property lines befinreen
Casey's Restaurant site and the Carlos Ortega Villas, so that the Carlos
Ortega Villas project can proceed.
Councilman Spiegel moved to waive further reading and adopt Resolution
No. 2014- 75. Motion was seconded by Harnik and carried by a 5-0 vote (AYES: Benson,
Hamik, Spiegel, Weber, and Tanner; NOES: None).
XIII. ORDINANCES
A. For Introduction:
None
B. For AdoQtion:
None
XIV. NEW BUSINESS
A. CONSIDERATION OF FACADE ENHANCEMENT PROGRAM (FEP)
FUNDING FOR PROJECT LOCATED AT 73930 EL PASEO
(CADO EI Paseo 930 LLC, Applicant).
Mr. Alvarez stated this item is a request for Facade Enhancement Program
(FEP) funding for the property located at 73930 EI Paseo, which is on the
north side of EI Paseo and east of San Luis Rey. This site was formerly
occupied by a retail establishment for women's apparel. The Applicant has
requested funding, which is consistent with the FEP guidelines in the
amount of $49,999. He displayed photographs of the property as it exists
today, noting the Applicant is proposing significant facade enhancement
modifications, which includes a new entry module, a new roof line, new
exterior finish in the form of decorative tiles, and new store front windows.
The project also has a frontage on the President's Plaza parking lot, which
makes the project eligible for the dual facade enhancement funding already
covered under the amount of $49,999. The design was approved by the
Architectural Review Commission (ARC) at an earlier meeting, and staff
recommended approval of the project.
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Councilmember Benson asked if Draper's and Damon's was formerly located
at this property.
Mr. Alvarez answered yes.
Councilman Spiegel inquired about the new tenant for this property.
MR. CHRIS SCHOENECK, Representative of Capstone Advisors, Inc.,
Applicant, stated they currently didn't have a tenant, but they are actively
seeking. He said they are being open to having a restaurant, mercantile, or
a business.
Councilman Spiegel asked how much money was the Applicant putting into
the renovation.
MR. SCHOENECK responded he had just received an updated proposal for
$500,000 for hard costs.
Mayor Tanner asked how soon after the Applicant received the FEP funds
would they start construction.
MR. SCHOENECK replied the way he understood the facade enhancement
program worked depended upon approval and completion of construction,
and afterwards they will request for funds to be reimbursed. He said they
intend to start construction as soon as possible. In fact, they had a
design/review meeting just prior to this meeting, and they are actively
seeking permitting. He said they had to wait for this meeting to seek
approval before they could pull permits.
Councilman Spiegel moved to, by Minute Motion: 1) Approve a Facade
Enhancement Program Agreement with EI Paseo 930 LLC in an amount not to exceed
$49,999.99 for property located at 73930 EI Paseo; 2) appropriate $49,999.99 from the
Economic Development Fund 425 for the subject Facade Enhancement Program project.
Councilmember Harnik commented it was great to see so much
improvement moving down to the east end of EI Paseo and thanked the
Applicant for being part of that enhancement.
Councilmember Hamik seconded the motion, and it carried by a 5-0 vote (AYES:
Benson, Harnik, Spiegel, Weber, and Tanner; NOES: None).
Mayor Tanner wished the Applicant good luck, stating the Council was
anxious to have it open.
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B. REQUEST FOR APPROVAL OF THE REIMBURSEMENT OF ART IN
PUBLIC PLACES FEE OF$88,311.96 FOR"LAKE CAHUILLA PALMS" BY
LARRY AND NANCY CUSH FOR THE COACHELLA VALLEY WATER
DISTRICT'S STEVE ROBBINS ADMINISTRATION BUILDING LOCATED
AT 75515 HOVLEY LANE EAST, AND FOR APPROVAL OF THE
CORRESPONDING PUBLIC ART AGREEMENT.
Management Analyst Deborah L. Schwartz stated this was a standard public
art fee reimbursement. The Coachella Valley Water District received
approvals and has completed the project, stating the art piece was installed
as originally proposed. Staff recommended approval of the reimbursement.
Councilmember Harnik moved to, by Minute Motion: 1)Approve reimbursement of
the Art In Public Places Fee in the amount of $88,311.96 for "Lake Cahuilla Palms" by
Larry and Nancy Cush as the Public Art component for the Coachella Valley Water District
Administration Building Located at 75515 Hovley Lane East, Palm Desert — funds are
available in Account No.436-0000-228-9900; 2)authorize the Mayor to execute the Public
Art Agreement for this project.
Councilman Spiegel questioned why CVWD wasn't paying for it.
Ms. Schwartz explained this was a public art fee being reimbursed.
Mayor Tanner asked if the total cost was substantially higher than the
$88,311.96.
Ms. Schwartz stated the public art fee was $90,000 and the total cost of the
project was at the$88,000 mark, stating the Applicant was only eligible to be
reimbursed for the amount spent.
Mayor Pro Tem Weber seconded the motion, and it carried by a 5-0 vote (AYES:
Benson, Harnik, Spiegel, Weber, and Tanner; NOES: None).
C. REQUEST FOR AWARD OF CONTRACT FOR THE 2014 INTERNALLY
ILLUMINATED STREET NAME SIGN UPGRADE (IISNS) PROJECT TO
SIERRA PACIFIC ELECTRICAL COMPANY IN THE AMOUNT OF$53,186
(CONTRACT NO. C33670, PROJECT NO. 569-15).
Mr. Greenwood stated all of the City's traffic signals are equipped with
lighted street name signs with the exception of a few on Highway 111. The
street name signs are wear and tear, because the sun bleaches them out
and the lighting equipment inside wears out, thereby requiring periodical
replacement. He said the staff report fails to mention this is year one of a
three-year program to replace signs that need it. He said staff is replacing
them with LED lit signs as opposed to the florescent lighting. Further
responding, he confirmed the vendor was the low bidder.
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Councilman Spiegel moved to, by Minute Motion: 1) Appropriate $24,380 from
Unobligated Traffic Signal Capital Reserve Account to Account No. 234-4250-433-4001;
2) appropriate $9,744.60 from Unobligated Capital Reserve to Account
No. 440-4250-433-4001; 3)award subject contract for the 2014 IISNS Upgrade Project to
Sierra Pacific Electrical Company, Riverside, Califomia, in the amount of $53,186; 4)
authorize the Director of Finance to set aside a 10% contingency in the amount of
$5,318.60; 5)authorize the Mayorto execute the contract documents—funds are available
forthis project in General Fund Account No. 110-4250-433-4001 and also based upon the
aforementioned appropriations. Motion was seconded by Harnik.
Mayor Tanner asked if the amount was for the three-year program.
Mr. Greenwood answered no, stating it represented this year's cost only, and
there will be another staff report next year for another project.
Mayor Tanner called for the vote, and the motion carried by a 5-0 vote (AYES:
Benson, Harnik, Spiegel, Weber, and Tanner; NOES: None).
D. REQUEST FOR AWARD OF CONTRACT TO DEDICATED BUILDING
SERVICES, LLC, IN AN AMOUNT NOT TO EXCEED $125,065.50 FOR
THE CITY FACILITIES JANITORIAL CONTRACT (CONTRACT
NO. C33740, PROJECT NO. 771-15).
Mr. Greenwood explained that a little over a year ago the City changed to a
contract service for its janitorial services, and it was going very well until the
company went out of business. He said Dedicated Building Services, LLC,
hired the same staff working at City Hall from the other company, and they
continued services without interruption. They agreed to do temporary
services to keep the City running while staff rebuilt the process. This award
of contract is the result of that bidding process, and it happens that the same
company is the recommended contractor for the next year.
Councilman Spiegel moved to, by Minute Motion, authorize: 1) Award of subject
contract for the City Facilities Janitorial Services to Dedicated Building Services, LLC,
Studio City, Califomia, in an amount not to exceed $125,065.50 ($5,955.50/month); 2)
Director of Finance to set aside a 10% contingency in the amount of$12,506.55; 3) Mayor
to execute said contract — funds are available in Unobligated General Fund to Building
Maintenance Janitorial Services, Account No. 110-4340-413-3326.
Councilmember Harnik stated that on both this item and the following item
on the agenda, the headquarters for the contractor is in Studio City. She
said questions were raised as to why it didn't go to a local bidder. However,
bid notices went out to the Desert Sun, Desert Valley Builder's Association,
and Palm Desert Chamber of Commerce,and it just happens that there were
no local bids submitted. The potential contractor being awarded the contract
in both items is using all local employees, and the contractor has a residence
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in La Quinta. She said there were discussions and discomfort that it wasn't
a seemingly local company.
Mayor Pro Tem Weber questioned why the City was having such a di�cult
time finding local people to bid these jobs, asking if contractors were not able
to match the bond request, because she had seen bids come from out of the
area. She asked staff if there was a pattern.
Mr. Greenwaod explained that working forgavernment was tough work. The
bonding and insurance requirements are far beyond working in the private
world, putting off many contractors because they didn't have the bonding
capacity. He said many contractors could also be challenged by the
paperwork, prevailing wage, or many other different reason, stating it also
drove the cost of government work. He said the City paid more for these
services than anybody else because of all the requirements that came with
doing a govemment project. He couldn't say there was a consistent reason,
yet the reasons are known, but they are varied.
Mr. Gibson added that at the Parkview Complex, the City used to use
Nicholas, a local provider who informed him he had to pay $500,000 just to
cover the Worker's Compensation premium for the initial year as a deposit,
and he couldn't afford to set that money aside.
Mayor Pro Tem Weber stated she would talk more on the topic at a later
time.
Councilmember Hamik seconded the motion, and it carried by a 5-0 vote (AYES:
Benson, Harnik, Spiegel, Weber, and Tanner; NOES: None).
E. REQUEST FOR AWARD OF CONTRACT TO DEDICATED BUILDING
SERVICES, LLC, IN THE AMOUNT OF$122,325 FOR A 21-MONTH TERM
TO PERFORM JANlTORlAL SERVICES FOR THE CITY OF
PALM DESERT PARKVIEW OFFICE COMPLEX (CONTRACT
NO. C33870).
Mr. Gibson noted staff advertised in the newspaper, and they attempted to
get local bidders, including one that was currently doing the Henderson
Building, but they chose not to show up for the bidding process. He said the
insurance requirements were the biggest factor as to why they couldn't bid.
Responding to question, he confirmed Dedicated Building Services, LLC, is
currently providing the janitorial services at the Parkview Office Complex.
Councilmember Hamik moved to, by Minute Motion, approve the subject contract
with Dedicated Building Services, LLC, Studio City, Califomia, in the amount of$122,325
for 21 months ($5,825/month) to perform janitorial services at the City of Palm Desert
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Parkview Office Complex. Motion was seconded by Spiegel and carried by a 5-0 vote
(AYES: Benson, Hamik, Spiegel, Weber, and Tanner; NOES: None).
F. REQUEST FOR AUTHORIZATION TO REJECT BID PROTEST AND
AWARD CONTRACT TO CREATIVE CONTRACTORS CORP FOR THE
CIVIC CENTER PLAYGROUND SHADE STRUCTURE REPLACEMENT
PROJECT IN AN AMOUNT NOT TO EXCEED $70,885 (CONTRACT
NO. C33860, PROJECT NO. 725-15).
Mr. Greenwood stated the existing shade structure over the tot lot at the
Civic Center Park was raised a few years ago in attempts to prohibit
vandalism. People were getting up on the play equipment lighting the
canopy on fire and burning holes in it. The cover is quite expensive to
replace, and the attempt to raise the structure was questionable, so it needs
to be replaced. The project went out to bid for replacement of the cover,
including the rubber surface under the equipment. He said there was a bid
protest on this project; however, after reviewing the bids, staff didn't believe
the protest had any merit.
Councilman Spiegel moved to, by Minute Motion: 1) Reject the bid protest of
Aghapy Group, Inc., on the basis that the bid protest failed to state any grounds upon
which to sustain it;2)authorize award of the subject contract to Creative Contractors Corp,
Rancho Santa Margarita, California, in an amount not to exceed $70,885 for the Civic
Center Playground Shade Structure Replacement Project; 3) authorize the Director of
Finance to set aside a 10% contingency far the project in the amount of $7,088.50; 4)
authorize the Mayor to execute said contract — funds are available in Civic Center Park
Fund, Account No. 233-4674-454-4001. Motion was seconded by Harnik and carried by
a 5-0 vote (AYES: Benson, Hamik, Spiegel, Weber, and Tanner; NOES: None).
G. REQUEST FOR AUTHORIZATION FOR THE MAYOR TO EXECUTE
COACHELLA VALLEY AIR QUALITY ENHANCEMENT GRANTS
(PROJECT NO. 767-15).
Mr. Greenwood stated blow-sand is a continuing problem in the Coachella
Valley and Palm Desert has several areas that are troublesome. Staff
applied and received authorization fortwo grants, one on Dinah Shore Drive
for a $50,000 grant with a $19,450 match from the City to push back the soil
from the edge of the street west of Miriam Way. Another $50,000 grant to
stabilize the soil at Cal-State University for the entire campus with a $36,000
match from the City. At a meeting with the regional street sweeping
company yesterday, staff was asked to do a better job of keeping the sand
away from the street, and this was Palm Desert's attempt to do so.
Councilman Spiegel moved to, by Minute Motion: 1)Authorize the Mayorto execute
Grant Award &Authorization Agreements for Dinah Shore Drive (Contract No. C33890A)
and for Cal State University Site (Contract No. C338906); 2) appropriate $55,450 of
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A62766 funds, if applicable, for local share match, or use General Fund Reserves if
AB2766 is not applicable. Motion was seconded by Benson and carried by a 5-0 vote
(AYES: Benson, Hamik, Spiegel, Weber, and Tanner; NOES: None).
H. CONSIDERATION OF AND REQUEST FOR DIRECTION TO STAFF
REGARDING THE CITY OF PALM DESERT AND A MULTI-AGENCY
PARTNERSHIP TO PURCHASE, MAINTAIN, AND OPERATE THE
BERMUDA DUNES AIRPORT.
Mr. Acosta stated this item is on the Agenda as a result of a letter received
by the City Manager from 4th District Supervisor John Benoit, in which, he is
soliciting interest from neighboring cities as to the Bermuda Dunes Airport,
requesting their interest in a potential purchase, operations, and
maintenance as it relates to the airport. Supervisor Benoit's letter was
received by the heir to the late Ernie Dunievie who was the owner of the
Bermuda Dunes Airport and the initial developer to the airport and adjacent
country club.
Councilman Spiegel asked if it included all of Bermuda Dunes.
Mr. Acosta replied it would include the airport only, stating the City didn't
have a whole lot of information. What was received attached to Supervisor
Benoit's letter was a profile that was provided by Michael Dunlevie, the son,
in which, he wishes to solicit interest from the neighboring jurisdictions first
before placing the property on the open market for a private sale. He said
staff placed this item on the agenda for Council's discussion, consideration,
and direction.
Councilmember Harnik stated the City has looked at the Bermuda Dunes
Airport and it never comes close to it being financially feasible. However, at
this point, the County is doing an Airport Specific Plan, and it's worth looking
at. The only thing the Council would be voting on today is if Palm Desert
wants to take a look at it for further investigation. She said maybe this will
all look differently when all these other entities and cities in the County come
together, stating it was certainly worth the exploration. She said once the
City receives the Airport Specific Plan from the County, she was sure it would
shed some light on the matter.
Councilmember Harnik moved to, by Minute Motion: 1) Receive, review, and
consider the Letter of Interest from Riverside County 4th District Supervisor John Benoit to
the City Manager regarding a Multi-Agency Partnership to purchase, maintain,and operate
the Bermuda Dunes Airport Facility; 2) Direct City staff as to subsequent due diligence.
Motion was seconded by Weber.
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Mayor Pro Tem Weber stated that if the airport goes away, it won't come
back, because things will change. She believed it was a valuable airport for
the City to consider being involved with, because of Palm Desert's plans to
perhaps eventually expand into that area. She said the people she had
spoken with at Sun City are interested in utilizing that airport more, in
addition to all the people that could fly into Bermuda Dunes to attend all of
Palm Desert's and Indio's functions. She said with Palm Desert hotel plans,
it will attract people that will want a private/exclusive type of airport. She said
it was to Palm Desert's benefit to look into this.
Mr. Wohlmuth asked for clarification on Council's direction to staff. It's his
understanding that staff is to forward a letter to Supervisor Benoit expressing
Palm Desert's interest in participating in the airport master plan and its
interest in some kind of a district that would assist or the City of Palm Desert
participation in a future district of some type.
Councilman Spiegel asked the City Manager's opinion on this matter on
whether Palm Desert should or shouldn't participate.
Mr. Wohlmuth noted he was a former County administrator that sold airports
for$1. He said the airport was in Palm Desert's sphere of influence, but not
in the City. He said the City wouldn't receive a fiscal benefit as a City directly
from the development at the airport unless Palm Desert annexed it. He
recalled for the Council that Palm Desert conducted a Feasibility Study on
the annexation of Bermuda Dunes, and it was a big negative number. He
asked if the recommendation was to forward a letter to Supervisor Benoit
saying the Council is interested in learning more about the airport and
potentially participating in some kind of a district.
Councilmember Harnik amended her motion on action Item No. 2 that the Council
is interested in more information about the airport, and depending on that information, it
would decide whether or not it would express interest in being part of the entity that runs
it and owns it.
Councilman Spiegel stated he didn't think the Council should keep
Supervisor Benoit's hopes up.
Councilmember Harnik said it couldn't hurt to have more information.
Mayor Tanner agreed. He asked Mayor Pro Tem Weber if she agreed to the
amended motion as stated by Councilmember Harnik.
Mayor Pro Tem Weber agreed to the amended second.
Mayor Tanner stated that after talking with Supervisor Benoit at the
Jacqueline Cochran Aviation meeting, it was Supervisor Benoit's interest in
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pursuing this to see if it is fiscally responsible, stating it wasn't something the
City would be tied into. He said the Council can look at what the airport
could potentially do for Palm Desert, because the airport was not included
in the calculations to the north sphere. Therefore, he agreed to look at it
further, which is what the intent is.
Mayor Tanner called for the vote, and the motion carried on a 4-1 vote, with
Councilman Spiegel voting NO.
For purpose of clarification the motion is as follows:
Councilmember Harnik moved to, by Minute Motion: 1) Receive, review, and
consider the Letter of Interest from Riverside County 4`h District Supervisor John Benoit to
the City Manager regarding a Multi-Agency Partnership to purchase, maintain,and operate
the Bermuda Dunes Airport Facility; 2) direct staff to send a response letter of interest to
Supervisor Benoit for obtaining more information about the County's Airport Specific Plan
in order to make an informed decision about potentially participating in a future Multi-
Agency Partnership for the Bermuda Dunes Airport Facility. Motion was seconded by
Weber and it carried by a 4-1 vote (AYES: Benson, Harnik, Weber, and Tanner; NOES:
Spiegel).
I. REQUEST FOR APPROVAL OF AN EXTENSION TO THE CONTRACT
FOR CITY ATTORNEY SERVICES WITH THE FIRM OF BEST, BEST &
KRIEGER LLP (CONTRACT NO. C28881).
Mr. Wohlmuth stated five years ago the City went out for Request for
Proposals for City Attorney and Redevelopment Counsel services. The
panel was comprised of Councilmembers, a judge, a retired County
administrator, and himself. He said they chose Best, Best and Krieger as the ,
most favorable proposal received. The City then entered into a five-year
contract with Best, Best and Krieger, stating they have done a fabulous job
for Palm Desert, in his opinion as City Manager, for the past five years. He
is recommending a five-year extension to the Agreement. He said both City
Attomey Dave Erwin and Assistant City Attorney Bob Hargreaves have done
a great job for the City of Palm Desert and he trusted their legal advice and
direction to staff.
Councilmember Harnik moved to, by Minute Motion, extend the City Attorney
Contract with Best, Best & Krieger LLP, for five (5) years under the same terms and
conditions as the existing (Contract No. C28880). Motion was seconded by Spiegel.
Mayor Pro Tem Weber stated that due to the many changes on the Council,
and with another change in a couple of months, she didn't believe it was
appropriate to lock in the Council for five years. She suggested extending
the contract to three years, so that it can be reviewed again in three years.
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Councilman Spiegel asked Mr. Erwin how long he has served as Palm
Desert's City Attomey.
Mr. Erwin replied since November 26, 1973.
Councilman Spiegel stated the five years are warranted.
Councilmember Harnik pointed out the Agreement allows the Council to
cancel the contract with 30-days notice without a penalty; therefore, she
didn't see a problem with signing up forfive years. She said she personally
found them to be very responsive when she's had questions on issues and
is favorably impressed with their representation of the City.
Mayor Pro Tem Weber asked if a three-year contract allowed the City to go
out to bid in three years.
Mayor Tanner said the City can go out to bid anytime.
Mr. Erwin explained the Council can give Best, Best and Krieger notice with
the contract ending in 30 days, and the City can go out to bid at that time.
Even though the contract states five years or three years, it was a point for
the Council.
Mayor Tanner called for the vote, and the motion carried by a 4-1 vote (AYES:
Benson, Harnik, Spiegel, and Tanner; NOES: Weber).
J. REQUEST FOR APPROVAL OF AN EXTENSION OF THE AGREEMENT
FOR LEGAL SERVICES BY AND AMONG THE SUCCESSORAGENCY TO
THE PALM DESERT REDEVELOPMENT AGENCY, PALM DESERT
HOUSING AUTHORITY, AND CITY OF PALM DESERT, AND THE FIRM
OF RICHARDS, WATSON & GERSHON (CONTRACT NO. SA28881)
(JOlNT CONSIDERATION WITH THE SUCCESSOR AGENCY TO THE
PALM DESERT REDEVELOPMENT AGENCY AND THE PALM DESERT
HOUSING AUTHORITY).
Mr. Acosta stated the City/Agency has had a long-standing relationship with
Richards, Watson 8� Gershon (RW&G) for services with the former
Redevelopment Agency and now with the Successor Agency. Their contract
is about to expire at the end of September 2014. The City Manager thought
it would be prudent to bring the Agreement before the Council/Agency at this
time. The proposed Agreement is for three-years with the option of two
1-year extensions at the authorization of the City Manager. He said RW&G
offered to perform the same services and continue on with the dissolution
process of the former Redevelopment Agency, and now as the Successor
Agency, retaining the same billing rates as in the past five years. He noted
this item was in joint consideration with the Housing Authority.
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Councilman/Director/Member Spiegel stated that with the dissolution of
Redevelopment, he wondered if Best, Best and Krieger could pick this
contract up.
Mr. Acosta said he couidn't speak for City Attorney Erwin, but his suspicion
was that the expertise of Best, Best and Krieger (BB&K) has not been in
Redevelopment, as with current issues with and involving the dissolution of
Redevelopment, Department of Finance(DOF),and Westem Centerfor Law
8� Poverty. Therefore, staff believes it's in the best interest of the City to
continue with the institutional capacity of RW&G.
Councilman/Director/MemberSpiegel asked the same question of Mr. Erwin.
Mr. Erwin answered yes, but there are a number of ongoing issues that
Richards, Watson & Gershon is dealing with, and if there were to be a
transition, it ought to be over a period of time as opposed to a complete cut
off. He said it was up to the Council, but certainly, RW8�G is still in the
middle of a lot of things; however, Best, Best and Krieger did have the
capability of handing the contract.
Mr. Wohlmuth said the way that A61 X26 is prepared, the law that dissolves
redevelopment agencies, the City has approximately three years left where
it has an Oversight Board, and post three years from now, the County takes
over the Oversight Board for the entire County boundaries. He said there
are two important issues involved as to the difference between BB&K and
RW8�G. One is RW&G has been helping with the dissolution of the
Redevelopment Agency providing excellent legal advice, and the City is
currently in a legal battle with regards to the stipulation on the Housing
Funds that they are handling. To answer Councilman Spiegel's question, he
would see RW&G doing an excellent job of handling the dissolution of
Redevelopment over the next three years, and post that,transition into a one
City contract as redevelopment went away. However, redevelopment is
slowly going away in the State of California, but it hasn't happened, because
it doesn't happen overnight. Staff will continue to dispose land and handle
the Recognized Obligation Payment Schedule (ROPS) on a six-month and
1-year basis. Further responding, he said Richards, Watson Gershon's
contract also has a 30-day notice opt out.
Councilman/Director/Member Spiegel moved to, by Minute Motion: 1) Approve
extension of Contract No.SA28881 (formeriy known as Contract No. R28880)-Agreement
for Legal Services to the City of Palm Desert, Successor Agency to the Palm Desert
Redevelopment Agency, and Palm Desert Housing Authority with Richards, Watson &
Gershon, substantially as to form; 2) authorize the City Manager/Executive Director and
City of Palm Desert to finalize the Agreement Extension with Richards,Watson&Gershon,
substantially as to form; 3} authorize the Mayor/Chair/Chairman to execute the finalized
Agreement. Motion was seconded by Benson.
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Councilmember/Director/Member Benson stated the Council owed it to
RW&G for getting the clearance from the State for Palm Desert's
Redevelopment, because there are a lot of Coachella Valley cities that
haven't received their clearance yet, and they are unable to move forward.
She said it was RW&G's foresight to condition all properties and financing
through the State, obtaining a clean bill to work on and getting the approval
fast.
CouncilmemberlDirector/Member Harnik confirmed the Agreement includes
a termination with and without cause. She said RW&G has done a great job
in avoiding problems and the dissolution of Redevelopment was an issue
that came up. She said the process has been difficult, but RW&G has done
an excellent job of guiding the City and Council through it, crediting them for
where Palm Desert stood today.
Mayor/Chair/Chairman Tanner stated both the law firm and staff are to be
complemented for getting Palm Desert approved, allowing the City to move
forward with selling the properties.
Mayor/Chair/ChairmanTanner called for the vote, and the motion carried by a 5-0
vote (AYES: Benson, Harnik, Spiegel, Weber, and Tanner; NOES: None).
K. REQUEST FORAPPROVAL OF DOWN PAYMENTASSISTANCE LOANS
FROM ANY AVAILABLE FUNDING SOURCE RESTRICTED FOR THIS
PURPOSE IN AN AMOUNT NECESSARY TO SECURE AN AFFORDABLE
HOUSING COSTASSOCIATED WITH A DIRECTSALE IN DESERT ROSE,
75326 KELSEY COURT (JOINT CONSIDERATION WITH THE
PALM DESERT HOUSING AUTHORITY).
Ms. Moore stated staff was able to facilitate a direct sale within the
community, and staff is requesting authorization to provide down payment
assistance to a qualified buyer.
Councilman/Member Spiegel moved to, by Minute Motion: 1)Approve a silent down
payment assistance loan associated with a direct sale in Desert Rose, not to exceed 40%
of the sales price of the home, to ensure an affordable housing cost pursuant to California
Health and Safety Code Section 50052.5 for a qualified low- or moderate-income
household from any available funding source restricted for such purpose (Low and
Moderate Income Housing Asset Fund, BEGIN Fund,and Housing Mitigation);2)authorize
the use of Desert Rose Sales Program and documents, including the restrictive covenant
and loan documents forthe applicable funding source, and authorize the Mayorto execute;
3)authorize the Director of Finance to draw monies from the relative funds to facilitate the
transaction; 4)authorize the Authority Chairman and/or the Authority's Executive Director,
or his designee, to finalize and execute any ancillary documents necessary to effectuate
the actions taken herewith — monies are available in the appropriate account in the Low
and Moderate Income Housing Asset Fund, BEGIN Fund, and Housing Mitigation Fund.
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Motion was seconded by Harnik and carried by a 5-0 vote(AYES: Benson, Harnik, Spiegel,
Weber, and Tanner; NOES: None).
NOTE: THE FOLLOWING ITEM WAS LISTED ON AN AGENDA ADDENDUM POSTED
72 HOURS IN ADVANCE OF THE MEETING.
L. CONSIDERATION OF REQUEST FROM THE COACHELLA VALLEY
ASSOCIATION OF GOVERNMENTS (CVAG) - TRANSPORTATION
COMMITTEE - TO AUTHORIZE THE MAYOR TO SEND A LETTER OF
SUPPORT FOR THE FEDERAL RAILROAD ADMINISTRATION'S $3
MILLION GRANT PROGRAM.
Councilmember Harnik stated this issue came up at Coachella Valley
Association of Governments(CVAG)Transportation Committee Meeting on
Monday, and it became an issue that these Federal funds are available for
something that is ready to go. The Committee has done a lot of work
exploring rail transportation into the Coachella Valley, and it's asking for the
City to write letters supporting the Coachella Valley San Gorgonio Pass
Intercity Rail Federal Grant. The reason for the rush to put this item on the
agenda is that the letters are needed by September 5. Sample letters were
provided are to be written from the viewpoint of the City of Palm Desert and
how it will help the City. She said these funds are available now, and they
will help explore the possibilities to help answer a lot of questions, even as
far as environmental studies and those sorts of things for rail service to the
Coachella Valley.
Councilman Spiegel moved to, by Minute Motion, authorize the Mayor to send a
letter of support of the Federal Railroad Administration's$3 Million Grant Program toward
completion of important elements of a planning and environmental study for daily Los
Angeles to Indio Amtrak passenger service. Motion was seconded by Hamik.
Mayor Tanner thanked Councilmember Harnik for all her work with the
Transportation Committee, dedicating a lot of time and effort, and it certainly
helped to have someone from the Council that is in the know.
Mayor Tanner called for the vote, and the motion carried by a 5-0 vote (AYES:
Benson, Hamik, Spiegel, Weber, and Tanner; NOES: None).
XV. CONTINUED BUSINESS
A. MINUTES OF THE REGULAR CITY COUNCIL MEETING OF JUNE 26,
2014 (Continued from the meeting of July 10, 2014).
Upon a motion by Spiegel, second by Harnik, and 5-0 vote of the City Council, the
Minutes of June 26, 2014, were approved as presented (AYES: Benson, Harnik, Spiegel,
Weber, and Tanner; NOES: None).
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XVI. OLD BUSINESS
None
XVII. PUBLIC HEARINGS
A. CONSIDERATION OF A CONDITIONAL USE PERMIT (CUP) TO
OPERATE A FITNESS AND GYM FACILITY WITHIN AN EXISTING
OFFICE PROFESSIONAL (OP) BUILDING LOCATED AT 44651 VILLAGE
COURT, Case No. CUP 12-385 (Five Star Fitness and Gym,
LLC/Shah Family Trust, Applicant).
Councilmember Hamik recused herself from this item, stating there may be
a conflict of interest and left the Council Chamber.
Assistant Planner Kevin Swartz stated on July 1, 2014, the Planning
Commission denied the Conditional Use Permit(CUP)for the second time.
The Commission stated that the underlying issue is not a second entrance,
parking, or gym membership fees, but land use compatibility. Before the
Council is the same proposal that was in front of the Planning Commission
at the July 1, 2014, meeting. The 42,208 square-foot office professional
building currently has five owners. The breakdown is as follows: 1)Proposed
fitness and gym is 22,617 square feet; 2) Financial Group is 1,236 square
feet; 3)Dentist Office is 2,817 square feet; 4)Architect Office is 1,969 square
feet; 4) Office for online sales is 6,200 square feet; 5) a future financial
tenant to occupy 4,200 square feet. Over the course of the CUP process the
Applicant has made many modifications such as reducing the hours of
operations, removed the bar serving alcohol, agreed to soundproof the
interior walls, conducted parking studies, modified the schedule of classes
that include music, agreed to no more than 3,000 gym members, set
membership dues of $129 a month, added a rear entrance, and submitted
letters of approval, including 57 signatures from employees along Village
Court. However, with all these modifications, staff and the Planning
Commission have determined that the proposed gym is not compatible with
the Office Professional Zone. Additionally, adjacent businesses and
residents have written letters in opposition. The Office Professional
designation sets standards for business offices, which are low intensity and
compatible with adjacent residential developments with typical hours of
operation from 8:00 a.m. to 5:00 p.m. The proposed fitness and gym facility
is a high intensity use that would not be appropriate integration of the
neighborhood, because of the zone and surrounding residential uses. A
fitness and gym facility of this size is suited for the commercial zones.
Lastly, staff believes that the surrounding businesses, which bought office
space in an Office Professional Zone, would be negatively impacted by the
change and use of the majority of the building as a fitness and gym facility.
Regardless of how exclusive the fitness and gym facility is, it does not
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provide an appropriate environment for the professional office. Staff
recommends the City Council deny the proposed CUP.
Councilman Spiegel asked why the Planning Commission denied the CUP.
Mr. Swartz replied the Commission determined that the proposed gym is not
compatible with the Zoning Ordinance and with the surrounding area.
Mayor Tanner stated that in discussions at prior meetings and reading
through the Planning Commission reports,the original work was delivered to
the Planning Department and it was approved, but the Planning Commission
denied the CUP because of the occupancy. Then the CUP was denied
again after the appeal. He asked if staff found something the second time
around that indicated this project just didn't fit, stating he was sure it was a
question the Applicant had.
Mr. Swartz explained that at the November 5, 2013, staff did recommend
approval to the Planning Commission. However, the Planning Commission
denied the request based on the findings. After staff reviewed the
Commission's comments and in listening to the opposition from adjacent
business owners and some residents, staff realized that in order to
recommend approval it had to lay down a lot of Conditions of Approval. So
with all that was presented, staff did change its recommendation.
Mayor Tanner declared the public hearing o�en and invited public testimony
FAVORING or OPPOSING this matter.
The following individuals spoke in OPPOSITION to the fitness and gym facility.
MS. DORA ALDERETE stated she is an employee at Dr. Schantz &
Moranda and is opposed to CUP 12-385. She expressed her concern
relating to vehicle traffic impacting their patients and parking. At their
previous office they had to park on the streets, and when Dr. Schantz
decided to buy in a new location, parking for patients and staff was
important. She said they feared the gym will take away a lot of the parking,
especially if the Applicant is considering 3,000 members. Additional
concems included, loitering in the halls, noise levels coming from the gym,
and training that can happen outside. She said they have a lot of patients
that are kids, so they are concerned with the added traffic coming in and out.
She said they are a professional business medical park and they would like
to maintain that image and not become an industrial park that has different
types of shops and stores like nail salons, auto shops, etc.
MR. L. MORGAN MORANDA stated he is a tenant and owner of one of the
suite's in the Village Court. He said they have gone through these hearing
several times and it's been frustrating. He said they have sat down and gone
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through many discussions with Mr. Shah, recognizing adjustments have
been made but others haven't been changed. However, the bottom line is
that when Mr. Shah asked them in the beginning if they didn't want the gym
in the building that's all they had to say, and he was told they didn't. Yet, this
matter has continued with Mr. Shah coming up with changes, and it just
seems he is stuck between a rock and hard place. He said this wasn't an
attack on the gym, because he knew a lot of people will speak about the
health benefits, etc., and no one is doubting it would be a good facility and
it will be beautiful, it was about the placement of the gym. He believed there
will be noise, traffic, and parking issues, which are real concerns. He also
understands the Applicant has tried to mitigate some of the issues and has
conducted studies, and that some conditions have been met. He also heard
about an entrance being moved to the west side of the building,which would
alleviate some of the traffic, etc., etc., but he just frankly didn't know for sure
what will or will not actually happen. He said when he and Dr. Schantz
were looking for a new facility they searched for two years and Village Court
came up because it was the poster child in the Coachella Valley of what a
professional corridor should be like. He couldn't think of another building that
epitomized what a professional center looked like and people knew where
to go when looking for professionals. He said there is a reason why areas
are set up for certain things, and iYs the way the City planned it, and when
you try to change it by trying to fit a square peg in a round hole, it doesn't
work. He said his concems had nothing to do with the gym itself, but with the
fact that he looked long and hard at this area, and Village Court had the
office professional appeal, and this project didn't fit.
MS. LYNN IRWIN expressed heropposition to the approval of CUP 12-385.
Also, two other owners in the building, Tom and Cindy Klein, who are out of
the Country and could not attend, asked her to restate their opposition as
well. She went on to say that in her letter to the City dated August 25, 2014,
she noted two concems where she stated the two original owners would not
have purchased their parcels if there was a possibility of a gym going in
there. She said the City recently amended zoning to disallow gym facilities
as an appropriate conditional use, and she saw no need for Mr. Shah's
project to be approved, especially in light of the City reinforcing its zoning
guidelines. Her second concem was about Mr. Shah's reliability and
veracity. She said in her letter she included copies of newspaper articles and
public records, which showed Mr. Shah's behavior as very troubling. She
said Mr. Shah has made many statements to encourage the City to approve
the CUP, and her question is, in light of his past behavior, who is going to
assure he will keep his word this time and how much will it cost the City if he
didn't.
MS. STELLA SERNA stated she was supporting her employer Dr. Schantz
& Moranda in opposing CUP 12-385. She said in their practice they have a
lot of small children who will be subjected to, what she felt would be,
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inappropriate mix atmosphere. She was also concerned about the parking,
stating that if this was down the street in the City of Indian Wells, this issue
wouldn't even be on the agenda.
DR. JEFF SCHANTZ stated he was an orthodontist and he was the first
tenant with Dr. Moranda in the Village Court building. It's already been
mentioned they relocated at Village Court primarily because it was zoned
Office Professional, and they have invested over $1 million in their office,
which is a sizable investment for a small business. He said the City made
a commitment to them when they bought the facility, because it was zoned
Office Professional. He said there is an implied agreement between them
and the City, and they based their decision on that agreement. It would be
very disheartening to have someone come in the building after them, get the
zoning changed, and completely change the character of their location. He
believed this project will devalue their business, because orthodontic clients
and practices are not located next to gyms. He said some people think they
can be thrown under the bus because of only one tenant, but he believes he
has a relationship with the City, but it's now uncertain. He asked the Council
to maintain its commitment to the original zoning.
MR. RICK POST JR. shared that his father Rick Post used to serve on the
Planning Commission, so he took this issue to him, and they talked about
how the Planning Commission made things easy for the Council, because
they did all the homework and recommended what's best for the City.
Therefore, he opposed the CUP and asked the Council to support staff's
recommendation. Additionally, he believed the unintended consequences
of allowing this gym facility impacted not only the tenants in the building, but
also the general area.
The following individuals spoke in FAVOR to the fitness and gym facility.
MR. BOB LIENHARD, Via Josefina, Rancho Mirage, CA, stated he has
known Mr. Shah for about 15 to 18 years since his employment with KESQ
when Mr. Shaw was an advertiser with them, but he has no business
relationship with Mr. Shah whatsoever. He said the challenge he has with
this matter is that staff suggested approval, placed conditions,the conditions
were met, then the Planning Commission denied the request. He said he
attended those meetings, and if the Council researched the first meeting,the
conditions of use didn't have anything to do with the denial, he believed there
were some other issues that were brought up. He suggested the Council
look into it on their own volition. But when the Applicant met all the
conditions and came back the second time, the suggestion was to not go
forward. He said noise issues were raised, yet Westfield Shopping Center
now has a gym inside, understanding it's in a commercial building, but there
is also residential within 200 or 300 feet. He suggested checking with the
residents behind the Westfield gym, because that gym is much larger, it has
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full music and dance going along the outside wall, and see what the real
impact is. He also suggested looking at, if any, police reports, of issues that
have taken place in gymnasium parking lots. He said to have that much
traffic in a parking lot would actually cut down on the number of car break-ins
instead of having an empty parking lot. His last point would be to the value
of the investment. He understood four or five tenants have invested in this
property, but individual units versus the entire piece of property have to be
considered to determine the property value. He said the Council had to
compare the value of one or finro tenants compared to an empty 22,000
square-foot building, which has been empty for a number of years with no
specific use other than business. He suggested the Council looking at this
from the value of what it brought to the residents, the City, and impact to the
people coming into the building. He said the sales office at that building
would not have an issue with the proposed gym, understanding the dentist
and financial group are concerned, but things aren't always what you
thought, and sometimes things need to change.
MS. ALICIA GERARDO, EI Paseo, Palm Desert, noted she attended a
previous hearing where she expressed her support for this project. She
supported the proposed upscale location, because she's not the type that
likes to walk into a mall in a suit to workout and Gold's Gym was clear across
town. She is located on EI Paseo and would love an opportunity to take her
health into account and make it a priority. However, she is trying to
understand how a project comes to play, is considered approved, then gets
rejected, then a lot of conditions are placed on the project, the conditions are
met, and then they are not approved. She said her support is sincere and
hoped the Council approves the project.
MS. TONEE M�REB stated she was a business owner in the Desert in the
areas of Palm Desert, Rancho Mirage, and Palm Springs for more than 20
years. She said she currently works for Dr. Shah in marketing, and the
reason she took the position is because iYs an elite high-end gym. She said
she was an older woman who didn't like going to the gym with riffraff,
because she didn't pay for that, stating she would rather go hiking, run her
bike, or any other thing than to go to a gym of that sort. She would like to go
to a nice facility where one is catered and business women feel safe getting
out of their car. People at these high-end facilities are not the types that go
to World's Gym, and it's not a place for children. She said all of Mr. Shah's
facilities are secure, they are monitored by camera's, people are genuinely
welcomed, you are escorted to your car if needed, and it was not a place for
children. As a business woman, she didn't like going to Country Clubs where
she has felt pushed around for not being part of one group or another.
MR. KALEOLANI DE LA CRUZ, Desert Hot Springs, CA, thanked the
Council for allowing him to share his thoughts about this matter. He said he
was employed by Five-Star Fitness and was appealing to the Council for its
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approval. He said as a father of three children, a grandfather of six, the
concern for safety of his children was paramount above all else, and the City
of Palm Desert did a fantastic job of that. He said the same effort is placed
upon the children they currently care for at Desert Hot Springs and Yucca
Valley, stating they wouldn't put any child at risk because of the clientele they
may draw. He said one could suppose there might be an increase in crime,
but one can suppose that with any enterprise at any city, town, or province
in the United States. In a good faith effort, Shah Management has tried to
satisfy what so far has been placed upon the organization in order to receive
the request and permit. He asked the Council to approve the CUP as they
have applied.
MR. HADDON LIBBY stated he has rented from Mr. Shah, and his daughter
went to this dental facility that's next door to the proposed gym, and he has
obtained a Conditional Use Permit from the City before; however, he didn't
represent any party involved in this matter. He shared that when he worked
in Los Angeles, he went to a gym closest to his work. Therefore, it made
sense to want to put a gym near a professional office space, because when
one has very limited time, you want to go to one that is close by. He
personally didn't want to go to a World or Gold's gym because it's not his
style, but this facility sounded like one he would actually use. He knew the
facility will create jobs, stating rumor was that it would create 30 jobs. He
believed the Council should survey all the businesses on whether they
thought the gym would hurt or help their business before making a decision.
He believed the gym would help the value of the land owners, stating that
Equinox always locates its facility in a professional area such as this one,
because it provides the people that will use and pay the higher monthly rates
versus World Gym's $19 a month due.
MS. EILEEN DRYDEN,Thousand Palms, CA, stated she wished to bring up
a point in response to the surrounding business owner's concerns regarding
loitering and pedestrian traffic in their hallways and around their businesses,
because she felt they are inaccurate assumption. She said there are several
points that are not conducive to other businesses around. She asked staff
to display a map of the area, and she illustrated that directly south of the
gym's parking lot, it abuts to the Embassy Suites tennis courts; to the direct
west is an empty lot, which may be owned by Embassy Suites; to the direct
east are more businesses. Therefore, there aren't a lot of residential people
that will be impacted by the noise factor. As far as people loitering, the
gym's entrance is at the north side of the property where people will have to
go around to the back of the building and enter from the north. She said gym
members will not even have access to enter through the south part of the
building where Dr. Schantz& Moranda's practice is located. Therefore, she
didn't believe there would be traffic or parking issues for the practice.
Additionally, Mr. Swartz conducted a traffic study, and the most vehicles at
any given time during business hours were 27 cars, which left 140 parking
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spots available at all times. She went on to say that at their Yucca Valley
gym,they actually had a Sleep Center open up an office next to the Five-Star
Gym Facility. They opened up a 24-hour center where they do sleep studies
with their patients, and they have no loitering or noise issues, because they
soundproof the walls. She said this facility is high-end, where you have
professional lawyers and doctors using the gym, stating it was not for your
average person, and this high-end facility came with high-end monthly dues;
iYs an elite gym. She didn't believe any of the issues raised will come to light
and hoped the Council will take that into consideration.
MR. RICHARD HOUGHTON stated he was an Attorney, and his office
happens to be right across the street from the proposed gym. He came to
support the project, primarily for selfish reasons, he had to admit. He
believed it would bring more clientele to his office. Additionally, he has a
limp and was told he had to start exercising more, and he wouldn't have any
excuse if a gym was across the street. He said they had very little traffic on
Village Court right now that he hardly ever encountered other vehicles.
Therefore, he didn't see traffic as a problem. From a philosophical
standpoint, he would like to see the City support businesses, particularly
after the last few years with businesses struggling. Therefore, he would like
to see the City encourage this kind of growth and development.
MS. CORINNE ROBERTS stated she was an employee at Five-Star Fitness
in Yucca Valley. The gym is currently located in Town Center Mall, which
includes the Sleep Study Center, Hope Charter School, a doctor's office, and
Eisenhower is building there, and this is all post gym. She said they haven't
had any noise, parking, or safety issues. Even when school is open and
there are parents dropping kids off or coming in the building to see teachers,
there is always parking space available. She believed a lot of the concems
are "What ifs" and "Oh, change is scary," but she actually thought a gym is
a good thing at the proposed facility.
MS. TERESA GUERRI stated she works at Five-Star Fitness, and she
agreed with statements already made about the Sleep Center being right
across the main doors of the gym. She said prior to working at the gym, she
would go to a nail salon on the upper level where there is also a lab corp and
other different little shops. However, if she hadn't been hired by the Fitness
Center, she wouldn't have known there was a gym there, because there is
no noise to be heard outside or in the hallways. Additionally, she has never
seen any of the gym members hanging outside of the gym, and it may be
because there is the juice bar and lounge area within the gym; therefore,
there is no loitering.
MR. TERRY COLLIER expressed his support of the project. He noted he
had dual residency between Palm Desert and the City of Pasadena. In
Pasadena he belonged to a major health club located in the middle of a high-
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level professional facility that included doctors, lawyers, and accountants,
etc. He said his stock broker was just two floors above from where he took
a steam bath. He didn't see a major problem with combining these two mix
uses, because if it's done correctly, one business can facilitate the other. He
found from experience and the people he talked to at his gym, he has
witnessed some of the best and sweetest deals put together in the steam
room. He recommended the project be allowed to go through, because it
could be an asset. Additionally, he was looking for a nice gym to join out in
this area.
MR. ED PAPIE stated he recently moved out to the desert from Chicago,
Illinois, but he didn't golf. However, he is used to a nice health club and talk
of having one near his home in Indian Wells is a real benefit. He said it
wouldn't make any difference to him whether there was a health club nearby
his orthodontist. It seemed anti-business that the Council would deny a nice
club that would be fraternized by people who could pay $129 a month,
because that would not be the wrong clientele into the neighborhood, and he
himself would like to be a member.
MS. SARAHYAH ISRAEL stated she was the Executive Director of
Futurenomics Resources, an arts nonprofit in Desert Hot Springs. She said
she wanted to share the benefits of having the Five-Star Fitness in Desert
Hot Springs, which Palm Desert could have as well. She said they hosted
a back to school blast where they gave away backpacks, and prior to that
they hosted a show called "DHS Got Talent." They held these events at the
Health &Wellness Center, the next biggest location to have it, but there was
a problem with having so many people there. However, having the Five-Star
Fitness & Gym Center in town, they were able to have their July 5`h event
with more than 3,000 attendees, and kids were able to perform. She said
the Fitness Center allows them to have a place or forum to do their show,
and a place to rehearse at the gym. She said the Fitness Center is a
beautiful place and its been a benefit to the City of Desert Hot Springs;
therefore, she was in favor of this proposed project.
MR. ADON ICON stated he was a singer, songwriter, and producer, and he
was in favor of this type of gym in Palm Desert, because they want an arts
nonprofit program. He said they have higher-end clientele, different
producers and songwriters who will frequent these higher-end fitness
centers, because they didn't and couldn't go to a regular gym. He said it
would be the same here in Palm Desert, it's a beautiful place. He said
everywhere Dr. Shah went, he did wonderful things for the community, and
there would be no difference here in Palm Desert. Therefore, he was in
favor of this project and confident there would be no problems. He
understood people have concerns and there are risk factors, but he believed
they should let the Applicant do what he has been doing for the last 20 or 30
years, because it would be a benefit to the community.
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MS. KARRIE OBRIEN stated she was the General Manager for the Yucca
Valley and Desert Hot Springs Five-Star facilities,and she was in favor of the
Palm Desert facility opening. She said she listened to the concems at the
last hearing and asked those in opposition to keep an open mind. She said
the monthly dues forthis facility ranged between$99 and $129, stating there
are people that didn't live in country clubs that are attorneys and doctors that
will not go to World Gym and need a high-end facility. She said parking
measures have already been taken, so she didn't foresee it being a problem.
With respect to the noise, she could guarantee it wouldn't be a factor,
because the other two facilities are larger than the one being proposed, and
it hasn't been an issue because precautions have been taken. She didn't
know if the two businesses that opposed this gym were satisfied with the
amount of business they currently had, but the people/patients they would
seek,would be the clients that attend this type of fitness center. Additionally,
there isn't much of a residential area that would be affected in any shape or
form. Her last point is that the insurance and policy they carry only covered
the interior of the facility; therefore,they would never take anyone outside of
the facility to train. She said Dr. Shah was wiling to work with the adjacent
businesses and do anything to assure them he will keep his end of the
bargain.
DR. MORANDA asked for more information regarding the entrance
reconfiguration, and it was confirmed that the north entrance would be the
only entry into the fitness center.
MR. SURESH SHAH, 73-765 Shadow Mountain Drive, Palm Desert, CA,
stated he has been building in Palm Desert for the last 25 years, and the
ones he built himself are classy. He said this building will also be very nice
and the Council will be proud of it. The main reason for this gym is the lack
of this type of club in Palm Desert, Indian Wells, and Rancho Mirage. He
said people are tired of going to World or Gold's gym where they charge only
$10 per month, and they have more than 10,000 members. He plans to only
have 3,000 members, create 30 to 40 high-end jobs yearly, because the
trainers will be making$50 to$60 an hour. He said there will be no minimum
wage employees, because he will need educated individuals to cater to the
special needs of VIP members. He said members will go to the gym for an
hour to exercise and return to their workplace. Many of the members will be
from employers like Morgan Stanley, Merrill Lynch, Charles Schwab, and
surrounding businesses, stating they are excited to have a gym such as this
one. He said at Village Court, any time of the day, it's always empty, there
are rarely one or two cars on the street. He believed once the gym is open,
there will be a lively atmosphere on the street. He said there wouldn't be any
burglaries, because they won't be prone for them; they have had only two or
three burglaries. He said they plan to only open from 7 a.m. to 7 p.m. on the
weekends. He said the gym was for everybody, it was not just for those who
lived in a country club. He asked the Council to allow him to build this gym,
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because where he has built before there are doctors and lawyers going to his
gym; therefore, his membership already exists. He said he has complied
with every condition the Planning Department has requested, he has done
a traffic study, which indicated they will have 140 parking spaces available
just for the gym, stating the neighboring business has about 30 or 40 people
there. He pointed out the building has been empty for the last eight years,
and finally the bank almost gave it away. He said there is no activity in the
building and it will stay again empty if his project is denied, believing it will
remain empty for the next five years until someone buys it. He said the
health fitness center is a good use and it will address health issues, because
people want to live longer. He asked the Council to allow him to build this
gym for the benefit of the people who are in the surrounding areas, stating
he wasn't doing this for money, but for the promotion of better health.
With no furthertestimonyoffered, MayorTannerdeclared the public hearing closed.
Councilman Spiegel asked about the Planning Commission's vote at their
July 3 meeting.
Mr. Swartz replied the vote was 3-2.
Councilmember Benson stated she was opposed to granting the CUP,
because Palm Desert has done a fantastic job in creating the envy of the
whole Valley with its zoning and putting things in the right places. She said
the City wasn't developed haphazardly, because the Council figured it out a
long time ago how the City was going to be laid out, and it designated areas
for residential and commercial at the right locations. She said it offended her
to hear people say that those that went to World and Golds are a lower class
of people, and nothing offended her more than to hear those types of
comments. She said those gyms have provided the health and welfare for
a lot of people and to count this facility only for the wealthy is really offending
the City of Palm Desert that tries to accommodate all of its residents. She
agreed there might be a need for a high-end facility, but the Council didn't
need to change the location on those tenants that bought into a commercial
area in hopes that other businesses alike would move in there. She doubted
very seriously that the people up in Yucca Valley are paying $129 a month,
and those gyms are so fantastic that they would even have the lower class
people in them, which amazed her. To insinuate that only those that can
afford a place such as the one being proposed would be going there, and to
change the zoning throughout Palm Desert, if it happened, it would be a very
haphazard city today. She is proud of Palm Desert and the hard work that
went into keeping it in the condition it is today, and that's because the
Council didn't allow every developer to put his business where he wanted
versus where iYs allowed per the Zoning Ordinance.
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Mayor Pro Tem Weber stated if it's zoned for best land use, why was no one
using the building and empty for so long, and was the economy to blame for
it.
Ms. Aylaian replied this building was representative of a number of Office
Professional buildings in the City fully unoccupied and/or marginally
occupied, stating Palm Desert is over built in office professional space.
Mayor Pro Tem Weber suggested readdressing the issue, because where
Palm Desert had best land use several years ago, it may no longer apply,
stating things have changed in the world. Secondly, she asked if there was
a summary of all the conditions placed on this project, because she has
heard about the membership price, time frame, entrance, and hours of
operation. She understood at certain hours the clientele would be entering
on the south side after 5:00 and before 8:00, to answer Dr. Moranda's
question on whether members would ever enter on the south side.
Mr. Swartz explained that since staff was recommending denial, there are
conditions of approval attached, but there were conditions of approval when
staff originally went to the Planning Commission at the November 5ch
meeting. In regards to the sole entrance, it was news to staff as well.
Therefore, if the CUP is approved, in the conditions of approval, staff will
recommend the south entry to be walled off so that the only entrance is from
the rear of the building. In answer to the question, he said staff did add
conditions of approval for no more than 3,000 gym members and the
Applicant agreed to a membership of $129 per month.
Mayor Pro Tem Weber asked about the entrance on the south side before
8:00 and after 5:00.
Mayor Tanner said the entrance would be walled off.
Mayor Pro Tem Weber asked if the CUP was approved, staff would then
recommend that the south entrance is walled off, but technically it wasn't part
of the conditions of approval because the request was rejected.
Mr. Swartz agreed, stating the current diagram shows two entrances, one
through the main lobby area and one through the rear courtyard. It was
mentioned by one of the speakers that the rear entrance would be the sole
entry, which was news to staff. Therefore, if the CUP is approved, staff
would recommend the south side entrance is walled off, so that the only
entrance to the gym is from the rear. Further responding, he confirmed there
are emergency exits available if there was only a rear entrance.
Mayor Pro Tem Weber stated she was puzzled about this, with respect to
what she hears the history of Palm Desert being, and yet when one drives
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around the City, one can see that things have changed. She said offices are
empty, and they have been empty for a significant amount of time that she
felt it was time to revisit best land use. She believed this was the time to
consider the issue, because if best land use is leaving empty buildings, it's
not a best land use logic. She said it didn't make sense to keep denying
something if it's not functional.
Councilman Spiegel responding to Mayor Pro Tem Weber's question, he
said it was the economy. However, the economy was on the rise and office
buildings are getting filled up, stating more people will be looking for office
space. As mentioned by Councilmember Benson, this building was zoned
Office Professional and there are good businesses in the facility right now.
He agreed with staff's recommendation to deny the CUP as it was denied
by the Planning Commission.
Councilman Spiegel moved to, waive further reading and adopt Resolution
No. 2014 - 76, upholding the Planning Commission action of July 1, 2014, and denying
Conditional Use Permit No. 12-385 for a 22,617 square-foot fitness and gym facility within
an existing 42,208 square-foot office building.
Mayor Tanner said he knew Palm Desert continues to prescribe to bring
businesses into the City, because the tax base and General Fund depended
on it. He said he understood business as he'd done business in Palm Desert
for 34 years. He explained the City has gone through great lengths to
ensure a plan is followed, and he took part in that process, and currently it's
working on the new 20-year plan. He said maybe things are changing, and
if changes are going to be made, it needs to be done through a plan. At this
time, the Council needs to review based on what previous Council's decided
many years ago in setting up conditional use. In this case, the project is in
a Professional Use building, and the way it's written, it didn't include
gymnasiums of any kind. He said he supported what has happened in the
past, and in working on the General Plan, he will support what works in the
future. He said he was in favor of business and thought the gymnasium is
a great idea, but it didn't belong in this Office Professional building.
Councilmember Benson seconded the motion.
Mayor Pro Tem Weber commented that while Palm Desert has a strong
history, she believed this was the time to start addressing these issues,
because the City is way different today than it was 30 or 40 years ago. She
went on to say the speakers have pointed out that sometimes mix use did
work well together, and she was pleased to hear the City would be doing that
in the future.
Mayor Tanner called for the vote, and the motion carried by a 3-1 vote (AYES:
Benson, Spiegel, and Tanner; NOES: Weber; ABSENT: Harnik).
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B. REQUEST FORAPPROVAL OF PROPOSED SALE OF THE PROPERTIES
LOCATED AT 42190 GOLDEN EAGLE LANE (APN 624-431-011),
74572 KING FISHER CIRCLE (APN 624-440-012), 42197 VERDIN LANE
(APN 624-431-020), AND 74642 KING FISHER CIRCLE
(APN 624-440-017), PALM DESERT, PURSUANT TO HEALTH AND
SAFETY CODE SECTION 33433(c)(JOINT CONSIDERATION WITH THE
PALM DESERT HOUSING AUTHORIN).
Ms. Moore stated that whenever the Housing Authority is to sell any property
that is within its inventory, it has to conduct a public hearing in order to do so.
She said one of the homes is under contract, but iYs pending this hearing.
She noted there is now interest in Palm Desert's communities, and staff is
looking forward to getting them sold.
Mayor/Chairman Tanner declared the public hearing o�en and invited public
testimony FAVORING or OPPOSING this matter. With no public testimony offered,
he declared the public hearing closed.
Councilman/Member Spiegel moved to: 1) Waive further reading and adopt
Resolution No. HA-65, approving the sale of the properties, pursuant to the attached draft
Purchase and Sale Agreements, for up to $200,000 each for 42190 Golden Eagle Lane
and 74572 King Fisher Circle, and up to $225,000 each for 42197 Verdin Lane and 74642
King Fisher Circle, depending on the terms of the negotiated sale; 2) By Minute Motion:
a) approve silent homebuyer assistance loans for each home in amounts that do not
exceed 40% of the sales price for each homebuyer to ensure an affordable housing cost
for a qualified low- or moderate-income household from any available funding source
restricted for such purpose (BEGIN, Housing Mitigation, Agency/Housing Authority
Program Income); b) authorize payment of the transaction costs from the sale proceeds
for the purpose of repairs required for closing, fees customary to real estate transactions
in Riverside County, including escrow, title FHA fees, inspections, vermin eradication,
commissions, and disclosures;c)authorize the use of the Falcon Crest Sales Program and
documents, including the restrictive covenant and loan documents for the applicable
funding source, in their substantial form; d) authorize the Mayor, Authority's Chairman,
and/orAuthority's Executive Director,or his designee,to finalize and execute the Purchase
and Sale Agreements, and any ancillary documents necessary to effectuate the sales and
actions taken herewith. Motion was seconded by Harnik and carried by a 5-0 vote(AYES:
Benson, Harnik, Spiegel, Weber, and Tanner; NOES: None).
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XVIII. REPORTS AND REMARKS
A. CITY MANAGER
1. City Manager Meeting Summaries forthe Period of June 30-August 15,
2014.
Mr. Wohlmuth called attention to the printed report contained within the
agenda packets and offered to answerquestions. Responding to inquiry
about the proposed Utility Undergrounding District No. 12 (Tamarisk)
meeting of July 31, he said that District is moving forward. City
representatives met with Southern California Ed+son (SCE) and
proponents to discuss the District and inclusion of the Heliotrope area,
which makes sense fiscally, as recommended by SCE, and for the
looping system that the underground facility will require. At this point,
the City is very close to issuing a check to formally commence design;
although, there is still work to be done with Verizon and Time Warner,
but things are progressing. SCE was very helpful in describing District
boundaries to the City and District proponents. Design and engineering
of the system will likely take around 12 months'time. Once the price is
firmed up with the engineer's estimate and the Assessment District is
set> the p�oject will go to a vote of the residents.
Councilmember Harnik expressed appreciation to the proponents of the
Undergrounding District for their positive approach and the successful
outcome to date.
With City Council concurrence, the City Manager's Meeting Summaries were
received and filed.
B. CITY ATTORNEY
None
C. CITY CLERK
None
D. PUBLIC SAFETY
1. Fire Department
None
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2. Police Department
None
E. MAYOR AND MEMBERS OF THE CITY COUNCIL
1. City Council Requests for Action:
None
2. City Council Consideration of Travel Requests and Reports:
None
3. City Council Committee Reports:
a) SunLine Transit Agencv Board — Councilman Spiegel said as the
City's representative to the SunLine Board, he's also on the Taxi
Committee there, which has jurisdiction over taxis in the Coachella
Valley — passenger charges, vehicle condition, driver qualifications,
etc. However, now the Committee has to take on Uber. He said Uber
has come into the Valley and charges whatever it wants, as much as
$500 for a trip from Coachella-Fest to Palm Desert, which he felt was
ridiculous and without any control over that service. He asked that
whenever his colleagues speak with theirfriends or hotel owners,they
should be encouraged to make sure and address the fact that
Coachella Valley taxis are the right way to go, not Uber.
4. City Council Comments:
a) Coachella Valley Cities' Blood Drive Challenae — Councilmember
Harnik reported that on July 19, Palm Desert was the runaway victor
amongst the Valley Cities in collecting 138 units of blood for the local
Blood Bank. She said it was a great tumout, demonstrated the power
of community spirit, and made a huge and positive difference in
saving a lot of lives that day.
b)Carlos Ortega Villas Groundbreakina—Councilmember Harnik also
reported on the terrific event surrounding the Groundbreaking
Ceremony on August 12 with her Council colleagues.
c) Sister Cities Delegation to lxtapa-Zihuatane� — Councilmember
Benson recounted from her recent trip how gallant their City Council
was when they were called to the meeting in the Mayor's Office. She
said they carried her in a chair up to the second story, which was
quite a feat, because she believed they thought she weighed only 90
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pounds! However, she said it was rather exciting on the way back
down, as one of the caRiers slipped, causing two at the bottom of the
stairs to run up and catch the chair to make sure she didn't fall out.
She went on to say that it was quite an experience, the delegation's
hosts were more than gracious, especially during their Council
meeting that moming. She reiterated Ms. Ortega's remarks from
earlier in today's meeting, being that one has to personally see and
experience how thankful they all are to have Palm Desert as their
Sister City, with whatever little bit Palm Desert does for them being so
very appreciated that they cannot do enough to show their gratitude
and goodwill. It was a very rewarding experience for everyone,
especially those who hadn't been there before.
5. Suqgested Items for Future City Council Meeting Agendas:
None
XIX. ADJOURNMENT
On a motion by Spiegel, second by Weber, and unanimous vote of the City Council,
Mayor Tanner adjourned the meeting at 6:19 p.m.
VAN G. TANNER, MAYOR
ATTEST:
RACHELLE D. KLASSEN, CITY CLERK
CITY OF PALM DESERT, CALIFORNIA
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