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HomeMy WebLinkAbout2018-06-20 CC MINUTES Wednesday, June 20, 2018 Minutes of the Regular Meeting of the City Council of the City of Palm Springs CALL TO ORDER A Regular Meeting of the Palm Springs City Council was called to order by Mayor Moon on Wednesday, June 20, 2018, at 6:22 p.m., in the Council Chamber, City Hall, located at 3200 E. Tahquitz Canyon Way, Palm Springs, California. PLEDGE OF ALLEGIANCE Mayor Moon led the Pledge of Allegiance. ROLL CALL Present: Councilmembers Christy Holstege, Geoff Kors, Lisa Middleton; Mayor Pro Tem J.R. Roberts; and Mayor Robert Moon. City Staff Present: David H. Ready, City Manager; Edward Z. Kotkin, City Attorney; Marcus Fuller, Assistant City Manager; and Anthony J. Mejia, City Clerk, were present at Roll Call. Other staff members presented reports or responded to questions as indicated in the minutes. PRESENTATIONS None. ACCEPTANCE OF THE AGENDA MOTION BY COUNCILMEMBER MIDDLETON, SECOND BY COUNCILMEMBER HOLSTEGE, CARRIED 5-0, to accept the agenda, with the removal of Item Nos. 1D, 1I, and 1M for separate discussion, continuance of Item No. 2E to July 11, 2018, and the deletion of Item No. 4C from the agenda. REPORT OF CLOSED SESSION The Regular Closed Session of the City Council of June 6, 2018, was called to order by Mayor Moon at 3:00 p.m., with all members present. City Council Minutes June 20, 2018 City of Palm Springs Page 2 The meeting convened into Closed Session to discuss the following items as listed on the Regular Closed Session Meeting Agenda: CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION, Pursuant to Government Code Section 54956.9(d)(1): Lockwood Ave LLC et al v. City of Palm Springs Case No. RIC1703102, Riverside Superior Court, Riverside Division Ronald Smith et al v. Alta Verde Sereno, LLC Case No. PSC1606441, Riverside Superior Court, Palm Springs Division CONFERENCE WITH LEGAL COUNSEL – EXPOSURE TO LITIGATION, Pursuant to Government Code Section 54956.9(d)(2): Number of Cases: 8 Including one (1) Rossi/St. Baristo - Setback Issues, St. Baristo Project (northeast corner of Baristo Road and Lugo Road) Threat of Litigation by Attorney Babak Naficy, Esq. CONFERENCE WITH LEGAL COUNSEL – INITIATION OF LITIGATION, Pursuant to Government Code Section 54956.9(d)(4): Number of Cases: 4 PUBLIC EMPLOYEE PERFORMANCE EVALUATION, Pursuant to Government Code Section 54957(b)(1): Title: City Manager City Attorney CONFERENCE WITH REAL PROPERTY NEGOTIATOR, Pursuant to Government Code Section 54956.8: Property Address/Description: Northeast Corner of Intersection of South Belardo Road and West Baristo Road, APN 513-153-015, 016, 029 Agency: City of Palm Springs City Negotiator: David H. Ready, City Manager or Designee Negotiating Parties: Richard Weintraub Under Negotiation: Price and Terms of Payment (Lease) Property Address/Description: 1433 and 1455 North Indian Canyon Drive Agency: City of Palm Springs City Negotiator: David H. Ready, City Manager or Designee Negotiating Parties: Ken Agee Under Negotiation: Price and Terms of Payment (Acquisition) City Council Minutes June 20, 2018 City of Palm Springs Page 3 Property Address/Description: 980 E. Tahquitz Canyon Way, APN 508-056-010 Agency: City of Palm Springs City Negotiator: David H. Ready, City Manager or Designee Negotiating Parties: Palm Springs Unified School District; Sandra Lyon, Superintendent Under Negotiation: Price and Terms of Payment (Lease) Property Address/Description: 4449 N. Indian Canyon Dr., APN 669-330-047 Agency: City of Palm Springs City Negotiator: David H. Ready, City Manager or Designee Negotiating Parties: Desert Community College District Under Negotiation: Price and Terms of Payment (Acquisition) Property Address/Description: 342-344 North Palm Canyon Drive Agency: City of Palm Springs as Successor Agency to RDA City Negotiator: David Ready, City Manager or Designee Negotiating Parties: C. Harold Keasler Trust and James Edward Murphy Trust Under Negotiation: Price and Terms of Payment (Sale) Property Address/Description: 233 W. Tramview Road APN 669-401-039 Agency: City of Palm Springs as Housing Successor City Negotiator: David Ready, City Manager or Designee Negotiating Parties: Million Plus, LLC (Chris Saunders) Under Negotiation: Price and Terms of Payment (Sale) Property Address/Description: Lot 38 El Dorado Road APN 669-401-010 Agency: City of Palm Springs as Housing Successor City Negotiator: David Ready, City Manager or Designee Negotiating Parties: Million Plus, LLC (Chris Saunders) Under Negotiation: Price and Terms of Payment (Sale) Property Address/Description: 3.6 Acres at SE corner of Indian Canyon Drive and Rafael Road APN 501-031-028 Agency: City of Palm Springs as Housing Successor City Negotiator: David Ready, City Manager or Designee Negotiating Parties: Community Housing Opportunities Corporation CHOC) Under Negotiation: Price and Terms of Payment (Acquisition) CONFERENCE WITH LABOR NEGOTIATOR, Pursuant to Government Code Section 54957.6: Agency Designated Representatives: City Manager David Ready and Attorney Peter Brown Employee Organizations: Management Association of Palm Springs Palm Springs Fire Safety Palm Springs Fire Management Palm Springs Police Management Association Palm Springs Police Officers Association Service Employees International Union Local 721 City Council Minutes June 20, 2018 City of Palm Springs Page 4 City Attorney Kotkin reported that the City Council received briefings and provided direction to staff regarding the agendized Closed Session Items, but did not take any reportable action; advised that the City Council reached a settlement in the Ronald Smith et al v. Alta Verde Sereno, LLC case for $35,000, of which half is to be paid by the City; announced City Manager Ready recused himself on the Lockwood litigation. PUBLIC TESTIMONY Chris Hector, Indigo Auto Group, urged City Council to support Item 1M. Nicki McLaughlin, Friends of Palm Springs Mountains, speaking on Item 4A, requested that the City Council oppose any extension or contingency on the $3 million development fee. John Pavelak, Watermark Homes, urged City Council support for Item 4A and 5C. Les Young, Member of the Board of the Four Seasons HOA, speaking on Item 4A, announced that he recused himself during the Parks and Recreation Commission meeting in relation to Serena Park. Doug Jones, speaking on Item 4A, urged City Council to work with the developer to commence the Serena Park development, noting that the existing area is blighted. Jim Rush, General Manager of Four Seasons, speaking on Item 4A, submitted a petition in support of the Serena Park development. Matthew Havermin, Co-owner of the Serena Park property, speaking on Item 4A, expressed concern regarding the $3 million development fee and required security instruments. Eric Taylor, Co-owner of the Serena Park property, speaking on Item 4A, opined that the proposed security instrument and default provisions are not financeable. Mark Allen, Attorney representing Serena Park, speaking on Item 4A, advised that they are agreeable to issuing a Note for the development fee to be paid at a fixed rate and over time. Joan Taylor, Sierra Club California/Nevada Desert Committee, speaking on Item 4A, voiced opposition to an extension of the Serena Park development. Ed Dube, Friends of Palm Spring Mountains, speaking on Item 4A, urged the City Council to pay the $3 million development fee. Tee Jones, speaking on Item 4A, spoke on the benefits of Serena Park development, noting that it will improve a blighted area. City Council Minutes June 20, 2018 City of Palm Springs Page 5 CITY COUNCIL, SUBCOMMITTEE, AND CITY MANAGER'S COMMENTS AND REPORTS In response to City Council inquiry, Police Chief Reyes reported on the number of noise complaints and calls for service during the first day of Splash House; noted that the Police Department met with event coordinators and the number of issues greatly reduced for the remainder of the event. Mayor Moon explained that he installed a camera in his office and intercom system in the office of the Executive Assistant; advised that he removed both systems upon learning that people were uncomfortable; stated that the systems were never used to record meetings, eavesdrop, or other malicious purposes. Councilmember Middleton reported on the recent Riverside County Transportation Commission meeting; advised that Mayor Pro Tem Roberts and herself met with representatives of Caltrans to discuss the possibility of relinquishing control of Vista Chino to the City, rail transit to the Coachella Valley, and greater flexibility in setting local speed limits; advised that the Sunline Transit Agency proposal regarding the Buzz Trolley, will be presented to City Council on July 11, 2018. Mayor Pro Tem Roberts reported on the Cannabis Subcommittee meeting with representatives from the cities of Cathedral City and Desert Hot Springs regarding cannabis permitting, taxation, and auditing. Members of City Council reported on their experiences being recognized by the Legislature as the first all LGBT legislative body in the nation; reported on their meetings with various state representatives and agencies. Councilmembers Kors and Holstege requested that a resolution condemning President Trump’s policy of removing children from their families at the border and calling on Congress to take action be agendized for the City Council meeting on July 11, 2018. Councilmember Kors encouraged residents to opt for the 100% carbon free power option from the Desert Community Energy Program; requested that staff develop a marketing plan to inform landscapers about the grant opportunity to purchase electric landscaping equipment; requested that consideration of supporting Senate Bill 1394 be agendized for the City Council meeting on July 11, 2018. Councilmember Holstege reported on the Parks and Recreation Commission meeting regarding pickle ball and tennis courts; noted that she attended a meeting between School District representatives and the Parks and Recreation Commission to discuss early childhood education and tiny tots programs; requested that a presentation on the Coachella Valley Housing First Initiative be agendized for an upcoming meeting. City Manager Ready recognized Director of Finance and Treasurer Geoffrey Kiehl for his service to the City and welcomed Marla Pendleton as the Interim Finance Director. City Council Minutes June 20, 2018 City of Palm Springs Page 6 1. CONSENT CALENDAR MOTION BY MAYOR PRO TEM ROBERTS, SECOND BY COUNCILMEMBER KORS, CARRIED 5-0, to approve the consent calendar, with the removal of Item Nos. 1D, 1I, and 1M. A. TREASURER’S INVESTMENT REPORT AS OF APRIL 30, 2018 MOTION BY MAYOR PRO TEM ROBERTS, SECOND BY COUNCILMEMBER KORS, CARRIED 5-0, to receive and file the Treasurer’s Investment Report as of April 30, 2018. B. STAFF AUTHORIZED AGREEMENTS AND PURCHASE ORDERS FOR THE MONTH OF MAY 2018 MOTION BY MAYOR PRO TEM ROBERTS, SECOND BY COUNCILMEMBER KORS, CARRIED 5-0, to receive and file the report of Staff Authorized Agreements and Purchase Orders for the period of May 1 through May 31, 2018. C. APPROVAL OF PAYROLL WARRANTS, CLAIMS AND DEMANDS MOTION BY MAYOR PRO TEM ROBERTS, SECOND BY COUNCILMEMBER KORS, CARRIED 5-0, to: 1. Adopt Resolution No. 24441 entitled “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, APPROVING PAYMENT OF CLAIMS AND DEMANDS BY WARRANTS NUMBERED 1098288 THROUGH 1098431 IN THE AGGREGATE AMOUNT OF $2,936,843.26, DRAWN ON BANK OF AMERICA.” 2. Adopt Resolution No. 24442 entitled “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, APPROVING PAYMENT OF PAYROLL WARRANTS FOR THE PERIOD ENDED 04-07-2018 BY WARRANTS NUMBERED 420274 THROUGH 420289 TOTALING $58,684.06, LIABILITY CHECKS NUMBERED 1098432 THROUGH 1098451 TOTALING $77,239.20, FIVE WIRE TRANSFERS FOR $62,901.70, AND THREE ELECTRONIC ACH DEBITS OF $1,430,132.88 IN THE AGGREGATE AMOUNT OF $1,628,957.84, DRAWN ON BANK OF AMERICA.” 3. Adopt Resolution No. 24443 entitled "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, APPROVING PAYMENT OF CLAIMS AND DEMANDS BY WARRANTS NUMBERED 1098452 THROUGH 1098577 IN THE AGGREGATE AMOUNT OF $1,247,155.27, DRAWN ON BANK OF AMERICA." (City Council action continued on next page) City Council Minutes June 20, 2018 City of Palm Springs Page 7 4. Adopt Resolution No. 24444 entitled "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, APPROVING PAYMENT OF CLAIMS AND DEMANDS BY WARRANTS NUMBERED 1098578 THROUGH 1098713 IN THE AGGREGATE AMOUNT OF $1,373,615.83, DRAWN ON BANK OF AMERICA." 5. Adopt Resolution No. 24445 entitled "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, APPROVING PAYMENT OF PAYROLL WARRANTS FOR THE PERIOD ENDED 04-21-2018 BY WARRANTS NUMBERED 420290 THROUGH 420300 TOTALING $17,989.04, LIABILITY CHECKS NUMBERED 1098714 THROUGH 1098733 TOTALING $76,809.77, FIVE WIRE TRANSFERS FOR $65,639.70, AND THREE ELECTRONIC ACH DEBITS OF $1,489,530.80 IN THE AGGREGATE AMOUNT OF $1,649,969.31, DRAWN ON BANK OF AMERICA." 6. Adopt Resolution No. 24446 entitled "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, APP ROVING PAYMENT OF CLAIMS AND DEMANDS BY WARRANTS NUMBERED 1098734 THROUGH 1098830 IN THE AGGREGATE AMOUNT OF $1,291,518.28, DRAWN ON BANK OF AMERICA." D. ACCEPTANCE OF THE PALM SPRINGS ROOF REPAIR AND REPLACEMENT PROJECT, CP 16-05 This item was excluded from the Consent Calendar. Please refer to Page of these minutes for a summary of that action. E. ACCEPTANCE OF THE 2017 PAVEMENT REHABILITATION PROJECT, CP 17-01 MOTION BY MAYOR PRO TEM ROBERTS, SECOND BY COUNCILMEMBER KORS, CARRIED 5-0, to: 1. Approve Contract Change Order 4 (CCO4) in the amount of $102,384.16 to account for final quantity adjustments to the original bid item quantities based on the actual installed quantities of various items of work. A7002. 2. Approve Amendment No. 1 for Construction Management, Inspection and Geotechnical Services with Interwest Consulting Group in the amount of $26,000 for additional services provided related to contract change order work, CP 17-01. A6686. 3. Accept the public works improvement identified as the 2017 Pavement Rehabilitation as completed in accordance with the plans and specifications, CP 17-01. 4. Authorize the City Engineer to execute and file for recordation with the Riverside County Recorder a Notice of Completion for the 2017 Pavement Rehabilitation, CP 17-01. City Council Minutes June 20, 2018 City of Palm Springs Page 8 F. ACCEPTANCE OF THE SONORA ROAD STORM DRAIN IMPROVEMENTS, CP 16-12 MOTION BY MAYOR PRO TEM ROBERTS, SECOND BY COUNCILMEMBER KORS, CARRIED 5-0, to: 1. Accept the public works improvement identified as the Sonora Road Storm Drain Improvements as completed in accordance with the plans and specifications, CP 16-12. A7110. 2. Authorize the City Engineer to execute and file for recordation with the Riverside County Recorder a Notice of Completion for the Sonora Road Storm Drain Improvements, CP 16-12. G. APPROVAL OF PARCEL MAP 37376, AVONDALE MOTION BY MAYOR PRO TEM ROBERTS, SECOND BY COUNCILMEMBER KORS, CARRIED 5-0, to adopt Resolution No. 24447 entitled “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, APPROVING PARCEL MAP 37376, FOR PROPERTY LOCATED AT THE NORTHEAST CORNER OF SOUTH PALM CANYON DRIVE AND RAMON ROAD, IN SECTION 15, TOWNSHIP 4 SOUTH, RANGE 4 EAST.” H. APPROVE AMENDMENT TO ENROLLMENT IN COUNTY OF RIVERSIDE MASTER MICROSOFT ENTERPRISE AGREEMENT FOR LICENSE OF MICROSOFT SOFTWARE MOTION BY MAYOR PRO TEM ROBERTS, SECOND BY COUNCILMEMBER KORS, CARRIED 5-0, to: 1. Amend the current agreement with Microsoft for the Enterprise License Agreement via the Riverside EA. A6985. 2. Award a Purchase Order to Insight Public Sector Inc. of Dallas, TX, the lowest responsible bidder by the County of Riverside, in an amount not to exceed $156,762 for the additional services and second year of the Microsoft Enterprise Agreement and authorize staff to issue annual purchase orders to renew the enterprise agreement each fiscal year with any applicable “true-up” adjustments thereafter. 3. Authorize the City Manager to execute all necessary documents. I. APPROVAL OF A REQUEST FOR EARLY CONSTRUCTION START TIMES MONDAY THRU FRIDAY FOR CONSTRUCTION ACTIVITIES FOR THE FIRE STATION NO. 4 REMODEL AND EXPANSION, CP 15-25 This item was excluded from the Consent Calendar. Please refer to Page 11 of these minutes for a summary of that action. City Council Minutes June 20, 2018 City of Palm Springs Page 9 J. APPROVAL OF A PROFESSIONAL SERVICES AGREEMENT WITH LIBRARY STRATEGIES FOR THE DEVELOPMENT OF A LIBRARY STRATEGIC PLAN MOTION BY MAYOR PRO TEM ROBERTS, SECOND BY COUNCILMEMBER KORS, CARRIED 5-0, to: 1. Approve a Professional Services Agreement with Library Strategies of Saint Paul, Minnesota, in the amount of $37,000 for the development of a comprehensive strategic plan for the Palm Springs Public Library. A7157. 2. Authorize the City Manager to execute all necessary documents. K. APPROVAL OF TRACT MAP 36689 AND A SUBDIVISION IMPROVEMENT AGREEMENT WITH JEN CALIFORNIA 3, LLC MOTION BY MAYOR PRO TEM ROBERTS, SECOND BY COUNCILMEMBER KORS, CARRIED 5-0, to adopt Resolution No. 24448 entitled “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, APPROVING TRACT MAP 36689 AND AN ASSOCIATED SUBDIVISION IMPROVEMENT AGREEMENT WITH JEN CALIFORNIA 3, LLC, A CALIFORNIA LIMITED LIABILITY COMPANY, FOR PROPERTY LOCATED AT THE NORTHEAST CORNER OF FARRELL DRIVE AND BARISTO ROAD, IN SECTION 13, TOWNSHIP 4 SOUTH, RANGE 4 EAST.” A7158. L. APPROVAL OF RIGHT OF WAY ACQUISITION AGREEMENTS WITH JLO CATHEDRAL PLAZA, LLC, ASSOCIATED WITH THE RAMON ROAD AND BRIDGE WIDENING PROJECT, FEDERAL AID PROJECT NO. BHLS 5282 (040); APN 678-210-038, CP 08-25 MOTION BY MAYOR PRO TEM ROBERTS, SECOND BY COUNCILMEMBER KORS, CARRIED 5-0, to: 1. Approve a Right-of-Way Agreement for Acquisition of Real Property Interest and Escrow Instructions in the amount of $11,476, with JLO Cathedral Plaza, LLC, a California limited liability company. A7159. 2. Approve a Temporary Construction Easement Agreement in the amount of $12,720, with JLO Cathedral Plaza, LLC, a California limited liability company. A7160. 3. Authorize the City Manager to execute all necessary documents, open escrow, and pay for escrow and title costs associated with the right-of-way acquisition estimated at $5,000. 4. Authorize the City Manager to execute a Quitclaim Deed or such other documents as necessary to transfer the real property interests to the City of Cathedral City upon completion of the project. City Council Minutes June 20, 2018 City of Palm Springs Page 10 M. APPROVAL OF A REQUEST FOR EARLY CONSTRUCTION START TIMES MONDAY THRU FRIDAY FOR CONSTRUCTION ACTIVITIES FOR THE INDIGO AUTO GROUP DEVELOPMENT PROJECT, FROM JULY 1, 2018, THROUGH AUGUST 31, 2018 This item was excluded from the Consent Calendar. Please refer to Page 11 of these minutes for a summary of that action. N. REJECT ALL BIDS RECEIVED FOR THE MEASURE J COMMUNITY PROJECTS - SIDEWALK GAP CLOSURE IMPROVEMENTS AND AUTHORIZE STAFF TO SUBMIT PROJECT FOR CALTRANS ATP CYCLE 4 FUNDS, CP 15-31 MOTION BY MAYOR PRO TEM ROBERTS, SECOND BY COUNCILMEMBER KORS, CARRIED 5-0, to: 1. Reject the bids received on March 8, 2018, from Tri-Star Contracting II, S&H Civil Works, All American Asphalt, CT&T Concrete Paving, Inc., for the Measure J Community Projects – Sidewalk Gap Closure Improvements, CP 15-31. 2. Authorize Staff to submit this project to Caltrans for the Active Transportation Program Cycle 4 funding. O. PALM SPRINGS ART MUSEUM SEEKING APPROVAL TO INSTALL AN ART MURAL ON A PORTION OF PUBLIC PROPERTY LOCATED AT THE SOUTHEAST CORNER OF MUSEUM WAY AND MUSEUM DRIVE (CASE 18- 003 MUR) MOTION BY MAYOR PRO TEM ROBERTS, SECOND BY COUNCILMEMBER KORS, CARRIED 5-0, to adopt Resolution No. 24449 entitled “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, APPROVING AN ART MURAL ON THE SOUTH SIDE OF THE PUBLIC PROPERTY LOCATED AT THE SOUTHEAST CORNER OF MUSEUM WAY AND MUSEUM DRIVE (CASE 18-003 MUR).” EXCLUDED CONSENT CALENDAR: Items removed from the Consent Calendar for separate discussion are considered at this time. D. ACCEPTANCE OF THE PALM SPRINGS ROOF REPAIR AND REPLACEMENT PROJECT, CP 16-05 In response to City Council inquiry, City Manager Ready advised that the Library and other facilities’ roofs will be addressed in a future project. City Council Minutes June 20, 2018 City of Palm Springs Page 11 MOTION BY COUNCILMEMBER MIDDLETON, SECOND BY COUNCILMEMBER HOLSTEGE, CARRIED 5-0, to: 1. Accept the public works improvement identified as the Palm Springs Roof Repair and Replacement Project as completed in accordance with the plans and specifications, CP 16-05. A7024. 2. Authorize the City Engineer to execute and file for recordation with the Riverside County Recorder a Notice of Completion for the Palm Springs Roof Repair and Replacement Project, CP 16-05. I. APPROVAL OF A REQUEST FOR EARLY CONSTRUCTION START TIMES MONDAY THRU FRIDAY FOR CONSTRUCTION ACTIVITIES FOR THE FIRE STATION NO. 4 REMODEL AND EXPANSION, CP 15-25 In response to City Council inquiry, Director of Engineering Garcia advised that noise levels will be monitored and that neighborhood organizations and residents within 500 feet of the project will be notified of the early start time. Mayor Moon and Councilmember Middleton requested that vehicle back-up alarms be kept to a minimum during the early construction hours. MOTION BY COUNCILMEMBER MIDDLETON, SECOND BY MAYOR PRO TEM ROBERTS, CARRIED 5-0, to approve the request from Archico to an early construction start time of 3:00 AM, for the Project on six separate days during the months of July, August and September, subject to continuous monitoring of noise complaints and impacts to adjacent residential properties. M. APPROVAL OF A REQUEST FOR EARLY CONSTRUCTION START TIMES MONDAY THRU FRIDAY FOR CONSTRUCTION ACTIVITIES FOR THE INDIGO AUTO GROUP DEVELOPMENT PROJECT, FROM JULY 1, 2018, THROUGH AUGUST 31, 2018 Councilmembers Holstege and Middleton requested that a notice be sent to all residents and property owners within 500 feet of the project. MOTION BY COUNCILMEMBER KORS, SECOND BY COUNCILMEMBER HOLSTEGE, CARRIED 5-0, to approve the request from the Indigo Auto Group to an early construction start time of 6:00 AM, between July 1, 2018, and August 31, 2018, subject to continuous monitoring of noise complaints and impacts to adjacent residential properties. City Council Minutes June 20, 2018 City of Palm Springs Page 12 2. PUBLIC HEARINGS A. RENEWAL OF THE PALM SPRINGS SMALL HOTEL TOURISM BUSINESS IMPROVEMENT DISTRICT, PROPOSED RESOLUTION CONFIRMING THE REPORT OF THE PALM SPRINGS SMALL HOTEL TOURISM BUSINESS IMPROVEMENT DISTRICT ADVISORY BOARD, LEVYING THE FISCAL YEAR 2018-19 ASSESSMENT, AND CONDUCT THE PROTEST PROCEEDINGS TO THE DISTRICT City Manager Ready presented the staff report. Mayor Moon opened the Public Hearing. Michael Green, urged the City Council to support renewal of the TBID. Mark Hunter, spoke on the success of the TBID and conveyed support for its renewal. There being no others wishing to speak, Mayor Moon closed the Public Hearing. City Clerk Mejia announced that the City received no written or oral protests and the City Council could proceed with the resolution, if desired. MOTION BY MAYOR PRO TEM ROBERTS, SECOND BY COUNCILMEMBER KORS, CARRIED 5-0, to adopt Resolution No. 24450 entitled “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, CONFIRMING THE REPORT OF THE PALM SPRINGS SMALL HOTEL TOURISM BUSINESS IMPROVEMENT DISTRICT ADVISORY BOARD AND LEVYING AN ASSESSMENT FOR FISCAL YEAR 2018-19 IN CONNECTION WITH THE PALM SPRINGS SMALL HOTEL TOURISM BUSINESS IMPROVEMENT DISTRICT." B. PUBLIC HEARING TO RECEIVE INPUT FROM THE COMMUNITY REGARDING THE CREATION OF A CITY COUNCIL DISTRICT-BASED ELECTORAL SYSTEM PURSUANT TO ELECTIONS CODE SECTION 10010 City Clerk Mejia introduced Dr. Justin Levitt, of National Demographics Corporation, the City’s demographic consultant. Dr. Justin Levitt narrated a PowerPoint presentation regarding the California Voting Rights Act and districting process. Mayor Moon opened the Public Hearing. Kurt Watts voiced support for ranked-choice voting and five districts with the Mayor being selected from amongst the City Council. In response to City Council inquiry, Mr. Watts spoke on Cathedral City’s transition to district elections. Robert Findley stated he will provide his thoughts to City Council in writing. City Council Minutes June 20, 2018 City of Palm Springs Page 13 Amado Salinas voiced support for district elections. David Freedman, suggested that the map drawing tools include on overlay of the neighborhood organizations. Paul Zach expressed support for district elections. Grace Garner spoke on the importance of community engagement; voiced support for district elections. There being no others wishing to speak, Mayor Moon closed the public hearing. In response to City Council inquiry, City Clerk Mejia and Dr. Levitt explained that the decisions on district boundaries must be based on the latest Census data; noted that the City will have an opportunity to redistrict following the 2020 Census. Councilmember Kors reported that he and Councilmember Middleton met with representatives of the Desert Health Care District to learn about their districting process. City Clerk Mejia announced that the public will have access to paper -based map drawing tools and an interactive mapping system beginning in mid-July 2018. The City Council conducted a Public Hearing to receive public testimony on the composition of districts for a district-based electoral system pursuant to Elections Code Section 10010. C. APPROVE PURCHASE AND SALE AGREEMENT AND ESCROW INSTRUCTIONS WITH C. HAROLD KEASLER TRUST AND JAMES EDWARD MURPHY TRUST FOR A SUCCESSOR AGENCY-OWNED PROPERTY LOCATED AT 342-344 NORTH PALM CANYON DRIVE, (APN 513-081-017), IN THE AMOUNT OF $500,000 PURSUANT TO SECTION 34191.5 (C) OF THE HEALTH AND SAFETY CODE Mayor Moon noted that the City Council is sitting as the Successor Agency. Director of Economic Development Virata presented the staff report. Chair Moon opened the Public Hearing. Del Gagnon representing Mostafas Khalil, stated that Mr. Khalil is the current tenant of the building and offered to purchase the building for $525,000. There being no others wishing to speak, Chair Moon closed the Public Hearing. City Council Minutes June 20, 2018 City of Palm Springs Page 14 Director of Economic Development Virata summarized efforts to solicit offers for the property; noted that the Successor Agency directed staff to utilize a commercial broker to sell the property; advised that a new property owner will determine whether to lease the property to the existing tenant; advised that the operator of the Cork N Bottle was notified of the opportunity to purchase the property. Mark Spohn, Sperry Van Ness Real Estate Partners, summarized efforts to sell the property; noted that the current offer is a cash offer with a 45-day escrow; stated that Mr. Khalil has not submitted evidence of a cash offer or pre-approved loan. Executive Director Ready and Agency Counsel Kotkin explained that the property belongs to the State of California under the former Redevelopment Agency and that the Successor Agency was charged with disposing of the property, if possible; advised that the Successor Agency could take no action on the matter and that the County of Riverside will become responsible for the property, when it takes the role of Oversight Board after June 30, 2018. The Successor Agency agreed to delegate authority to Executive Director Ready to approve the Purchase and Sale Agreement, noting the Agency’s fiduciary responsibility. Successor Agency Member Middleton agreed to serve as the Agency Liaison on this matter. MOTION BY SUCCESSOR AGENCY MEMBER ROBERTS, SECOND BY SUCCESSOR AGENCY MEMBER KORS, CARRIED 5-0, to: 1. Authorize the Executive Director to approve a Purchase and Sale Agreement and Escrow Instructions. 2. Authorize the Executive Director to submit the agreement to the Oversight Board for approval. 3. Authorize the Executive Director or his designee to execute all documents related to the agreement. D. FILING OF NUISANCE ABATEMENT RESOLUTION REPORTS FOR THREE (3) PUBLIC NUISANCES Assistant City Manager Fuller presented the staff report. Mayor Moon opened the Public Hearing. There being on one wishing to speak, Mayor Moon closed the Public Hearing. City Council Minutes June 20, 2018 City of Palm Springs Page 15 MOTION BY MAYOR PRO TEM ROBERTS, SECOND BY COUNCILMEMBER HOLSTEGE, CARRIED 5-0, to: 1. Adopt a Resolution entitled "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, CONFIRMING THE REPORT OF PROCEEDINGS AND ACCOUNTING FOR THE PUBLIC NUISANCE ABATEMENT LIEN FOR THE PROPERTY LOCATED AT 318 ROSA PARKS ROAD." 2. Adopt a Resolution entitled "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, CONFIRMING THE REPORT OF PROCEEDINGS AND ACCOUNTING FOR THE PUBLIC NUISANCE ABATEMENT LIEN FOR THE PROPERTY LOCATED AT 414 SOUTH MONTE VISTA DRIVE." 3. Adopt a Resolution entitled "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, CONFIRMING THE REPORT OF PROCEEDINGS AND ACCOUNTING FOR THE PUBLIC NUISANCE ABATEMENT LIEN FOR THE PROPERTY LOCATED AT 125 WEST CAMINO ENCANTO." 4. Authorize and direct the City Manager, or his designee, to serve notice of and record a lien against the subject properties, if said costs are not paid. E. ADOPTION OF A RESOLUTION ESTABLISHING FEES FOR CANNABIS RELATED BUSINESSES AND ACTIVITIES, PERMIT AND REGULATORY FEES Mayor Moon opened the Public Hearing. No public comments were received at this time. MOTION BY MAYOR PRO TEM ROBERTS, SECOND BY COUNCILMEMBER HOLSTEGE, CARRIED 5-0, to continue the Public Hearing to the City Council meeting of July 11, 2018. 3. LEGISLATIVE: None. 4. UNFINISHED BUSINESS A. RATIFICATION OF TENTATIVE TRACT MAP 36691 AS CONFORMING TO ITS APPROVAL BY CITY COUNCIL RESOLUTION 24085, AND APPROVAL OF THE DEED OF TRUST AND SECURITY INSTRUMENT ASSOCIATED WITH THE DEVELOPMENT AGREEMENT WITH PALM SPRINGS COUNTRY CLUB, LLC, RELATED TO THE SERENA PARK PROJECT – A 386-UNIT RESIDENTIAL DEVELOPMENT LOCATED NORTH OF VERONA ROAD, EAST OF SUNRISE WAY, AND SOUTHWEST OF THE WHITEWATER RIVER WASH, CASE TTM 36691 Director of Planning Services Fagg presented the staff report. City Council Minutes June 20, 2018 City of Palm Springs Page 16 Assistant City Manager Fuller and Councilmember Kors noted that the $3 million development fee is due three years after the effective date of the agreement; noted that the Subcommittee recommended allowing an extension of three years to pay the development fee at prime, plus three percent, and an additional penalty, if unpaid thereafter. In response to City Council, City Attorney Kotkin advised that the City would have the legal ability to foreclose if the terms are not fulfilled; advised that the loan will be secured by a Deed of Trust and that the City’s interest would be subordinate. In response to City Council inquiry, Eric Taylor, asserted that no bank is willing to finance the project under the terms of the Note and proposed default provisions. Councilmember Middleton opined that a 17-year loan at a fixed 4% is unacceptable; expressed concern that the City is being asked to assume financial risk for the development project. Mayor Pro Tem Roberts stated the Subcommittee created a generous counterproposal; reported he is unwilling to take the risk unless the City is guaranteed repayment of the loan and that City Council should not negotiate at the dais. MOTION BY MAYOR PRO TEM ROBERTS, SECOND BY COUNCILMEMBER HOLSTEGE, CARRIED 5-0, to refer the matter back to the City Council Subcommittee for the Serena Park Project. B. APPROVAL OF A REIMBURSEMENT AGREEMENT WITH THE COACHELLA VALLEY ASSOCIATION OF GOVERNMENTS, AND APPROVAL OF PLANS, SPECIFICATIONS AND ESTIMATES (PS&E) AND AUTHORIZATION TO BID, AND DELEGATION OF AUTHORITY TO AWARD CONSTRUCTION BIDS FOR THE INDIAN CANYON DRIVE TWO- WAY CONVERSION AND PEDESTRIAN AND BICYCLE SAFETY ENHANCEMENTS, CP 17-08 Director of Engineering Garcia presented staff report. In response to City Council inquiry, Director Garcia advised that the roundabout would require right-of-way acquisition and a design that would accommodate commercial trucks. MOTION BY MAYOR PRO TEM ROBERTS, SECOND BY COUNC ILMEMBER KORS, CARRIED 5-0, to: 1. Approve a Reimbursement Agreement for funding contribution from Coachella Valley Association of Governments' Bicycle and Pedestrian Safety Program for 2017 for an amount up to $1,500,000 for the Indian Canyon Drive 2-Way Conversion and Pedestrian Enhancements in Downtown, CP 17-08. A7162. (City Council action continued on next page) City Council Minutes June 20, 2018 City of Palm Springs Page 17 2. Approve the plans, specifications and estimates, and authorize staff to advertise and solicit bids for the Indian Canyon Drive Two-Way Conversion and Pedestrian and Bicycle Safety Enhancements, CP 17-08. 3. Authorize the City Manager to award a construction contract to the lowest responsive and responsible bidder for the Indian Canyon Drive Two-Way Conversion and Pedestrian and Bicycle Safety Enhancements, CP 17-08. A7163. 4. Delegate authority to the City Manager to approve and execute construction contract change orders up to a cumulative amount of 10% of the contract amounts, with all change orders reported to the City Council. 5. Authorize the City Manager to execute all necessary documents. C. DISCUSSION OF A PARTNERSHIP BETWEEN PARKS AND RECREATION AND THE PALM SPRINGS UNIFIED SCHOOL DISTRICT TO PROVIDE “EARLY CHILDHOOD EXPANSION” PROGRAMING AT THE LEISURE CENTER: At the request of staff, the matter was removed from the agenda. 5. NEW BUSINESS A. APPROVAL OF A FACILITY USE AGREEMENT WITH PALM SPRINGS POWER BASEBALL CLUB, INC., FOR THE PALM SPRINGS STADIUM Assistant City Manager Fuller presented the staff report. MOTION BY COUNCILMEMBER KORS, SECOND BY MAYOR PRO TEM ROBERTS, CARRIED 5-0, to: 1. Approve a Facility Use Agreement with Palm Springs Power Baseball Club, Inc., a California corporation, for rental and use of the Palm Springs Stadium for a three (3) year term, commencing August 1, 2018, through July 31, 2021, with two (2) optional two (2) year extensions. A5282, as modified to provide for a six month termination 2. Authorize the City Manager to execute all necessary documents. B. EARLY LUMP SUM ANNUAL PAYMENT TO CALPERS TOWARDS RETIREE UNFUNDED ACCRUED LIABILITY (UAL) City Manager Ready and Director of Finance Kiehl presented the staff report; noted that the City will save over $300,000 if it makes the early payment. MOTION BY COUNCILMEMBER MIDDLETON, SECOND BY COUNCILMEMBER HOLSTEGE, CARRIED 5-0, to receive and file the CalPERS Circular Letter 200-033-17. City Council Minutes June 20, 2018 City of Palm Springs Page 18 C. APPROVAL OF A RESOLUTION AUTHORIZING THE CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY TO FORM A COMMUNITY FACILITIES DISTRICT WITHIN THE TERRITORIAL LIMITS OF THE CITY OF PALM SPRINGS TO FINANCE CERTAIN PUBLIC IMPROVEMENTS AND DEVELOPMENT FEES; EMBODYING A JOINT COMMUNITY FACILITIES AGREEMENT SETTING FORTH THE TERMS AND CONDITIONS OF THE COMMUNITY FACILITIES DISTRICT FINANCING; APPROVING AN ACQUISITION AGREEMENT BETWEEN THE CITY AND SELENE PALM SPRINGS, LLC, A CALIFORNIA LIMITED LIABILITY COMPANY; AND AUTHORIZING STAFF TO COOPERATE WITH THE AUTHORITY AND ITS CONSULTANTS IN CONNECTION THEREWITH Assistant City Manager Fuller presented the staff report. In response to City Council inquiry, Mr. Fuller advised that the Dream Hotel includes 30 residential units; advised that the City will not have liability or responsibility of administering the program, noting that it is a State program. MOTION BY MAYOR PRO TEM ROBERTS, SECOND BY COUNCILMEMBER KORS, CARRIED 5-0, to adopt Resolution No. 24454 entitled “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, (1) AUTHORIZING THE CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY (THE “AUTHORITY”) TO FORM A COMMUNITY FACILITIES DISTRICT WITHIN THE TERRITORIAL LIMITS OF THE C ITY OF PALM SPRINGS TO FINANCE CERTAIN PUBLIC IMPROVEMENTS AND DEVELOPMENT FEES; (2) EMBODYING A JOINT COMMUNITY FACILITIES AGREEMENT SETTING FORTH THE TERMS AND CONDITIONS OF THE COMMUNITY FACILITIES DISTRICT FINANCING; (3) APPROVING AN ACQUISITION AGREEMENT BETWEEN THE CITY AND THE DEVELOPER; AND (4) AUTHORIZING STAFF TO COOPERATE WITH THE AUTHORITY AND ITS CONSULTANTS IN CONNECTION THEREWITH.” D. AWARD OF A CONSTRUCTION CONTRACT TO MATICH CORPORATION, IN THE AMOUNT OF $5,095,165.00 AND APPROVAL OF A PURCHASE ORDER IN AN AMOUNT NOT TO EXCEED $135,050, TO INTERWEST CONSULTING GROUP FOR CONSTRUCTION MANAGEMENT, INSPECTION AND MATERIALS TESTING SERVICES FOR THE 2018 PAVEMENT REHABILITATION, CP 18-01 Director of Engineering Garcia presented staff report. In response to City Council inquiry, Director Garcia advised that the City will need to increase oversight of construction management to ensure adherence with construction schedules and required public noticing; advised that the pavement condition index will be updated next fiscal year, noting such studies are typically conducted every five years. Councilmembers Kors and Holstege recommended that an online comment form be created to allow residents to report complaints regarding their street conditions. City Council Minutes June 20, 2018 City of Palm Springs Page 19 MOTION BY MAYOR PRO TEM ROBERTS, SECOND BY COUNCILMEMBER KORS, CARRIED 5-0, to: 1. Award a construction contract to Matich Corporation, a California corporation, in the amount of $5,095,165.00 for the 2018 Pavement Rehabilitation, CP 18-01. A7164. 2. Delegate authority to the City Manager to approve and execute construction contract change orders up to $510,000.00 with all change orders reported to the City Council. 3. Authorize a Purchase Order to Interwest Consulting Group, pursuant to On-Call Agreement No. A6686, in an amount not to exceed $135,050.00 for construction management, inspection and materials testing services for the 2018 Pavement Rehabilitation, CP 18-01. 4. Authorize the City Manager to execute all necessary documents. E. APPOINT A CITY COUNCIL LIAISON FOR THE VISITORS CENTER FEASIBILITY STUDY City Manager Ready presented the staff report. By consensus, the Council appointed Mayor Pro Tem Roberts as the City Council Liaison for the Visitors Center Feasibility Study. PUBLIC COMMENT None. CITY COUNCIL AND CITY MANAGER REQUESTS AND UPCOMING AGENDA DEVELOPMENT Councilmember Kors requested that a special Closed Session be scheduled to discuss the City Manager and City Attorney’s evaluations. In response to City Council inquiry, City Attorney Kotkin advised that members of City Council could attend meetings related to the Districting process, but may not participate in discussions. RECESS TO CLOSED SESSION City Attorney Kotkin requested that City Council recess to Closed Session to discuss items listed on the Closed Session agenda; noted that City Manager Ready will recuse himself from discussion on the Lockwood litigation. At 10:43 p.m., the City Council convened into Closed Session for a continuation of the Closed Session agenda. City Council Minutes June 20, 2018 City of Palm Springs Page 20 ADJOURNMENT The City Council adjourned to the next regular meeting Wednesday, July 11, 2018, at 6:00 p.m. preceded by Closed Session, at the Palm Springs Convention Center, Primrose C -D, 277 N. Avenida Caballeros, Palm Springs, CA. Respectfully submitted, Anthony J. Mejia, MMC City Clerk