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HomeMy WebLinkAboutCC Min 2014-02-12 MINUTES CITY COUNCIL OF CATHEDRAL CITY AND CITY COUNCIL SERVING AS THE SUCCESSOR AGENCY OF THE REDEVELOPMENT AGENCY BOARD 68-700 Avenida Lalo Guerrero, Cathedral City, CA 92234 FEBRUARY 12, 2014 5:30 P.M. CLOSED SESSION 5:45 P.M. STUDY SESSION 6:30 P.M. REGULAR MEETING CALL TO ORDER Mayor De Rosa called the Closed Session portion of the meeting to order at 5:30 p.m. ROLL CALL Present: Council Members Henry, Pettis and Toles, Mayor Pro Tem Vasquez and Mayor DeRosa. CLOSED SESSION PUBLIC COMMENTS - None SUMMARY OF CLOSED SESSION ITEMS AGENDA APPROVAL CLOSED SESSION A. CITY COUNCIL AS SUCCESSOR AGENCY 1. CONFERENCE WITH REAL PROPERTY NEGOTIATOR pursuant to Government Code Section 54956.8 (T. Scott) Property Location: Parcel Map 32932 Parcel 1, East of Can Fleet Avenue, south of East Pal Canyon Negotiating Parties: Cathedral City Redevelopment Agency and City Urban Revitalization Corporation Property Owners: City Urban Revitalization Corporation Under Negotiation: Property Negotiations B. CITY COUNCIL - None ADJOURNMENT Mayor DeRosa recessed the Closed Session at 5:50 p.m. City Council of Cathedral City and City Council Serving as the Successor Agency of the Redevelopment Agency Board Minutes of February 12, 2014 Page 2 of 12 CALL TO ORDER Mayor DeRosa called the Study Session portion of the meeting to order at 5:50 p.m. in memory of Dale Nelson, who recently passed away. ROLL CALL Present: Council Members Henry, Pettis and Toles, Mayor Pro Tern Vasquez and Mayor DeRosa. PRESENTATION OF COLORS - Cathedral City High School Junior Air Force ROTC PLEDGE OF ALLEGIANCE - Mayor Pro Tern Vasquez led the Pledge of Allegiance. INVOCATION - Council Member Toles gave the invocation. PRESENTATIONS AND PROCLAMATIONS — None CATHEDRAL CITY HIGH SCHOOL STUDENT REPORTS - None PUBLIC COMMENTS Kevin Flora, Vice-President of Operations, Big League of Dreams, announced that the Cathedral City Classic will be held February 20 — 23, 2014. They are expecting a large turnout and an outstanding event, which will result in a great economic impact to the City. Butch Altman, Cathedral City business owner, expressed his concern with the extension of the TUT. He feels that the tax is hurting the retail businesses and that the City needs to take care of the problem without putting it on the businesses to fix. He indicated that he voted for the initial Measure but he will not be voting to continue it. STUDY SESSION AGENDA 1. Lisa Castilone, Grid Alternatives — Update on grid alternatives. (Mayor DeRosa) Bambi Tran, Regional Director of Grid Alternatives, gave a presentation on the Solar Affordable Housing Program that they offer. She also gave an overview of the many partnerships that they have throughout the community. She indicated that GRID is requesting that Cathedral City formally partner with them by Resolution as well as helping with outreach/marketing and cost-sharing that may be available. Raul Resendiz, Cathedral City homeowner, spoke about his experience with the program. City Council of Cathedral City and City Council Serving as the Successor Agency of the Redevelopment Agency Board Minutes of February 12, 2014 Page 3 of 12 It was the consensus of the Council to consider approval of a Resolution partnering with GRID at a future meeting. Councilman Pettis, requested that staff provide Council with clarification on the sewer assessment and landscaping assessment districts within the City. Councilman Toles, commended GRID for their efforts. 2. Discussion of $25,000 grant by Agua Caliente Band of Cahuilla Indians for Electronic Equipment purchase and additional $14,000 received from the Desert Princess Country Club from efforts of a Golf Tournament for a total of$39,000 for IP Based Covert Surveillance System in a fixed vehicle application to deploy in high crime areas for burglary suppression, graffiti apprehension and auto theft investigations (K. Connor) Police Captain Moss, reported that the City has received a $25,000 grant from Agua Caliente Band of Cahuilla Indians and an additional $14,000 from the Desert Princess Country Club Golf Tournament that they hosted. The $39,000 is for the purchase of an IP Based Covert Surveillance System that will be on a fixed vehicle and will be deployed in high crime areas. He reported that they will be attending a vendor fair and will be evaluating the available equipment. They will bring the final purchase request to the Council at a future meeting. 3. Receive Power Point presentation and discuss placement of Simi Dabah "Thundebolt" sculpture at Cathedral Canyon and Dinah Shore. (P. Milos) Community Development Director Milos, presented the Council with the proposed placement of the "Thunderbolt" sculpture that is being donated by artist Simi Dabah. He indicated that this item will be before the Council for approval under the Consent Agenda. 4. City Council/Staff reports and inquiries of new or ongoing projects. Community Development Director Milos, reported that the Date Palm Overpass is slated for completion during the first week of April. CVAC is inquiring whether the City wants to hold a ribbon cutting for the opening of the overpass. It was the consensus of the Council not to have a ribbon cutting. Community Development Director Milos, reported that Eagle Canyon continues to progress. It should be completed by June 2014. He also indicated that the street widening project is still on schedule for this summer. He announced that on Thursday, February 13, 2014, from 4:00 to 6:00 p.m. in the City Hall reception area Betty Gold, Simi Dabah and Tim Townsley will all be in attendance for a meet and City Council of Cathedral City and City Council Serving as the Successor Agency of the Redevelopment Agency Board Minutes of February 12, 2014 Page 4 of 12 greet art event. This event is free and the entire community is invited to attend. He also reported that a donation was made to the Arts Commission of a Val Samuelson painting. The acceptance of this piece of art will be brought to the council for consideration at their next meeting. Mayor DeRosa, indicated that the Lion's Club has requested that the City lend their name to the Wing Fling. They are asking for the name only, no monetary donations were requested. It was the consensus of the Council to support the Lions Club Second Annual Wing Fling with city name only. RECESS Mayor DeRosa recessed the Study Session at 6:30 p.m. City Council of Cathedral City and City Council Serving as the Successor Agency of the Redevelopment Agency Board Minutes of February 12, 2014 Page 5 of 12 REGULAR MEETING OF THE CITY COUNCIL AND THE CITY COUNCIL SERVING AS THE SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY BOARD CALL TO ORDER Mayor DeRosa called the Regular Meeting of the City Council to order at 6:30 p.m. PRESENTATIONS AND PROCLAMATIONS - None CLOSED SESSION ANNOUNCEMENTS City Attorney Green stated there was no reportable action. PUBLIC COMMENTS Mayor DeRosa opened Public Comments. Jens Mueller, Cathedral City, expressed his dissatisfaction with the amount of debt the City has incurred since 1988, the condition of the roads and a stagnant downtown corridor. He feels that the time has come for the City to contract with Riverside County Sheriffs Department and Riverside County Fire for a cost savings of $6 million per year as well as the multiple benefits that go along with contracting for services. James Martinez, La Quinta, introduced himself as the Executive Director of the Cathedral Center, also known as the local senior center. He invited the Council to stop by the Center to see all of the programs and activities they have going on. Eileen Smith, Cathedral City, expressed her disappointment that no one from the City attended the grand re-opening of her restaurant. She indicated that Restaurant Possibility was at her location, a national T.V. show, and no one from the City came to show support. She feels that the City is not business friendly. Mayor DeRosa closed Public Comment. AGENDA FINALIZATION - None URGENCY ITEMS - None COUNCIL COMMENTS Mayor Pro Tem Vasquez, reported that Calvary Christian Center, in Cathedral City, has been vandalized twice incurring over $10,000 in losses. He thanked the Police Department for doing an outstanding job trying to determine who committed the crimes. He thanked the community for their help and Councilmembers Pettis, Toles and Henry for their support. City Council of Cathedral City and City Council Serving as the Successor Agency of the Redevelopment Agency Board Minutes of February 12, 2014 Page 6 of 12 COMMITTEE ASSIGNMENTS - See last page of Agenda Book. CONSENT AGENDA MOTION by Council Member Toles second by Council Member Henry carried 5-0 to approve the following Consent Agenda Items with the removal of Item 11.: A. COUNCIL/CITY COUNCIL AS SUCCESSOR AGENCY BOARD: 1. COUNCIUCITY COUNCIL AS SUCCESSOR AGENCY BOARD. Receive and File payment of Claims and Demands in the aggregate sum of$8,097,352 for the month of January 2014 by M.O. SA-0040 and M.O. 6212. (T.Scott) (Pg. 1-2) 2. COUNCIL/CITY COUNCIL AS SUCCESSOR AGENCY BOARD. Consider approval of minutes for Wednesday, January 15, 2013, Wednesday, January 22, 2014 and Tuesday, January 28, 2014. (Pg. 3-20) B. CITY COUNCIL 3. COUNCIL. Consider approving the award of a Design Professional Services Agreements with MSA Consulting, Inc., for the design of Date Palm Drive between 1-10 and Varner Road and authorize the City Manager to sign by M.O. 6213. (P. Milos) (Pg. 21-49) 4. COUNCIL. Consider acceptance and placement of donated sculpture "Thunderbolt" a sculpture by artist Simi Dabah by M.O. 6214. (P. Milos) (Pg. 50-59) 5. COUNCIL. Consider approval of the award of a Contract with Alms Underground Construction, Inc. to construct emergency drainage improvements at Date Palm Drive and Los Gatos Drive, CIP 1020, B13-155E, in the contract bid amount of $27,500.00, approve an approximate 10% contingency in the amount of $2,750.00, bringing the total encumbrance to $30,250.00 by M.O. 6215. (P. Milos) (Pg. 60-66) 6. COUNCIL. Consider approving the appointment of John Snyder to serve on the Cathedral City Public Arts Commission by M.O. 6216. (P. Milos) (Pg. 67) 7. COUNCIL. Consider final adoption of a Mitigated Declaration for City of Cathedral City Capital Improvement Project No. 8914, for construction of improvements to widen the Date Palm Drive Bridge over the Whitewater River by M.O. 6217. (P. Milos) (Pg. 68) 8. COUNCIL. Consider the approval of the second reading and adoption, reading by title only, an Ordinance of the Cathedral City Council to pre-zone the approximate 591-acre Project Area (CZ 12-001) to be annexed into the City of Cathedral City by Ordinance 732. (L. Lukes) (Pg. 69-74) 9. COUNCIL. Consider the approval of the second reading and adoption, reading by title only, an Ordinance of the City Council to adopt the North City Extended Specific Plan City Council of Cathedral City and City Council Serving as the Successor Agency of the Redevelopment Agency Board Minutes of February 12, 2014 Page 7 of 12 (SP 12-001), to become effective upon annexation of the project area onto the City of Cathedral City by Ordinance 733. (L. Lukes) (Pg. 75-81) 10. COUNCIL. Consider approving the extension of an Annual Maintenance and Warranty Protection Plan for WatchGuard 4RE In-Car Video System Hardware and Software by M.O. 6218. (K. Connor) (Pg. 82-84) ITEM REMOVED FROM CONSENT AGENDA FOR DISCUSSION MOTION by Council Member Pettis second by Council Member Toles, carried 5-0, to approve the following item that was removed from the Consent Agenda for discussion: 11. COUNCIL. Consider approval of an agreement between the City of Cathedral City and Dell Financial Services to provide additional hardware server and storage capability by M.O. 6219. (T. Scott) (Pg. 85) PUBLIC HEARINGS 12. COUNCIL. Consider a Public Hearing to consider the approval of a Resolution (1) Calling a Special Election to ask the voters of the City of Cathedral City to approve the continuation of an existing general transactions and use tax of one cent; (2) Approving the form of the Ordinance to be submitted to the voters; (3) Requesting the Board of Supervisors of the County of Riverside consolidate the Election with the consolidated Primary Election to be held on June 3, 2014; and (4) Directing the Riverside County Registrar of Voters to conduct the Election on the City's behalf. (T. Scott) (Pg. 86-98) Administrative Services Director Scott, presented the staff report to the Council. Mayor DeRosa opened the Public Hearing. Jens Mueller, Cathedral City, believes that having to continue the TUT is a failure on the part of the City Council. He stated again that the City needs to contract services for law enforcement and fire with the County of Riverside. If those services are contracted, the City would save $6 million dollars per year and there wouldn't have to be a tax that burdens the businesses. Eileen Smith/Debra White, Cathedral City, indicated that they are on the Board of Directors for Perez Business Center, representing over 300 businesses. She stated that none of the businesses on Perez are in support of this tax. Ms. White read a letter with regard to the proposed continuation of the TUT indicating that she does not support the tax and won't be voting for it. She feels that Cathedral City is not business friendly. Nick Nickerson, Chairman Chamber of Commerce, Cathedral City, stated that for the record, the Chamber of Commerce has not taken a position on the continuation of the TUT. Mark Carnivoli, Cathedral City, encouraged the Council to rethink approving the Resolution moving forward with continuing the TUT. He thanked the Council for their efforts. Rosario Avila, Cathedral City, stated that she is looking forward to the expiration of the tax City Council of Cathedral City and City Council Serving as the Successor Agency of the Redevelopment Agency Board Minutes of February 12, 2014 Page 8 of 12 and does not support the continuation of it. Mayor DeRosa Closed the Public Hearing. Council Member Henry, questioned if language can be added to the Ordinance regarding the termination date? He would like it to state that the tax can be terminated by a majority vote of the voters or a majority vote of the City Council. Administrative Services Director Scott, responded that the language can be added, however, it was the Sub-committee's desire to have the public decide whether or not it should continue or be terminated. Council Member Toles, stated that 40% of the workforce in the City has been cut. For the first time in seven years the City has a structurally balanced year to year budget. There are concerns with California's Pension Program but those are not things that the City can address. He stated that it could perhaps be cheaper to contract for fire and police services, however, the survey that was done showed that the residents want to maintain local police and fire and they would prefer to pay for those services. He feels that the voters need to have the opportunity to vote whether or not to continue the tax. He supports giving the residents the right to exercise their right to vote. Council Member Henry, stated that the tax was brought forward by the residents of Cathedral City and approved by the residents of the City. The residents are paying for the services that they want. If the continuation of the tax fails then the City Council will have to deal with it and make the necessary reductions. Council Member Toles, opposes adding language to the Ordinance allowing the City Council to terminate the tax. City Attorney Green, stated that by law of the State of California only the voters can approve or rescind the TUT. Mayor DeRosa closed the Public Hearing. MOTION by Council Member Henry, second by Council Member Toles, carried 5-0, to approve a Resolution calling a Special Election to ask the voters of the City of Cathedral City to approve the continuation of an existing general transactions and use tax of one cent; approving the form of the Ordinance to be submitted to the voters; requesting the Board of Supervisors of the County of Riverside consolidate the Election with the consolidated Primary Election to be held on June 3, 2014; and directing the Riverside County Registrar of Voters to conduct the Election on the City's behalf by Resolution 2014-04. 13. COUNCIL. Consider first reading and introduction, reading by title only, an Ordinance of the City Council amending Section 2.06 and 2.19.010 of the Cathedral City Municipal Code relating to appointed boards, commissions, and committees. (T. Scott) (Pg. 99- 102) Administrative Services Director Scott, stated that this Ordinance is to expand the Public Arts Commission to seven members and up to two members do not have to be registered City Council of Cathedral City and City Council Serving as the Successor Agency of the Redevelopment Agency Board Minutes of February 12, 2014 Page 9 of 12 voters or residents of Cathedral City. Mayor DeRosa opened the Public Hearing. There being no speakers, Mayor DeRosa closed the Public Hearing. MOTION by Council Member Toles, second by Mayor Pro Tern Vasquez, Carried 4-1-0-0 (Council Member Pettis voted no), to approve the first reading and introduction, reading by title only, an Ordinance of the City Council amending Section 2.06 and 2.19.010 of the Cathedral City Municipal Code relating to appointed boards, commissions, and committees by M.O. 6220. 14. COUNCIL. Consider a Public Hearing under Municipal Code Title 3 Chapter 3.46 to receive comments and other evidence; make findings designating Date Palm Petroleum, Inc. an approved business; consider a Sales Tax Sharing Agreement between the City of Cathedral City and Date Palm Petroleum, Inc.; and adopt a Resolution authorizing the same. (L. Lukes) (Pg. 103-108) Interim City Manager Wood, gave an overview of what the practices of the Council has been when the City receives requests for financial support from businesses. He stated that when a business makes a request for financial support to help them be a viable business, a business wishes to expand or there is a need to induce a business into the City, the criteria to approve or disapprove a request should be set from an economic stand point or Council should approve a policy for staff to follow while analyzing the requests. City Attorney Green, stated that the two Ordinances that the City has adopted which allow for tax sharing on transient occupancy tax and sales tax followed the elimination of redevelopment assistance. Previously the City was able to provide assistance to businesses that wanted to do these kinds of things provided that they were able to demonstrate through a financial report that they needed the money. The reason for the financial report was to ensure that there was not a gift of public funds and that the funding was necessary to achieve a public good. These Ordinances were created on the basis that the elimination of Redevelopment had deprived the City of any mechanism for assisting businesses in the community that might bring Sales Tax or TOT tax for the benefit of the residents. The necessity for public assistance must be proven in the financial report. It is his opinion that expanding a policy to include assistance to all businesses would be illegal because unless there is a justification for the assistance, that is a gift of public funds. He believes that the Ordinance requires the Council to make a finding that there is a need for public assistance in order to be successful. The need would be established in the required financial report. Council Member Toles, questioned if the need was established for the agreement that was done between the City and the Double Tree. City Attorney Green, responded in the affirmative. Business Development Manager Lukes, presented the financial information that was provided by Kaiser Marston Associates, Inc. She stated that it is Staff's recommendation that the City authorize a Tax sharing Agreement with the Applicant solely for the purpose of reimbursing the $7,500 fee paid by the applicant for the preparation of the fiscal analysis. At City Council of Cathedral City and City Council Serving as the Successor Agency of the Redevelopment Agency Board Minutes of February 12, 2014 Page 10 of 12 Council's direction, a Sales Tax Sharing Agreement will be presented at the next City Council meeting for consideration. Mark Deveau Indian Wells, representing Date Palm Petroleum Inc., stated that it is an existing facility and that they are making improvements in an effort to raise sales revenue. He offered a 10 year Operating Covenant Agreement stating that they have been in the Valley for over 20 years. He stated that the upgraded facility will double the amount of sales tax that is currently generated. He encouraged the Council to consider entering into a Sales Tax Sharing Agreement. Nachhattar Chandi, La Quinta/business owner Cathedral City, stated that they will be moving forward with the project one way or the other. They have a start and finish date, which will take less than 6 months. He stated that they need the assistance. He feels that this this location is the gateway to the City and requested that the Council support a Tax Sharing Agreement. Council Member Henry, would like to see some guarantees and caps looked at during negotiations with staff. Council Member Pettis, stated that he supports negotiations for a Tax Sharing Agreement. He would like to see an electric charging station installed at that location and will work with Mr. Chandi on getting grant money. Mayor Pro Tern Vasquez, stated that it is a key location that is well lit and safe. He supports negotiations for a Tax Sharing Agreement. Mayor DeRosa, thanked Mr. Chandi and stated that she is looking forward to working with them. Mayor DeRosa opened the Public Hearing. Arthur D'Souza, Indio, stated that City Staff is wonderful to work with. He supports a Tax Sharing Agreement between the City and Date Palm Petroleum, Inc. and encouraged the Council to approve it. Mayor DeRosa closed the Public Hearing. MOTION by Council Member Henry, second by Council Member Toles, carried 5-0, to direct staff to negotiate with Date Palm Petroleum, Inc. on a Tax Sharing Agreement for five years by M.O. 6221 for the following reasons: 1. Provides a vital service at a key entrance to the City. 2. Provides a service to residents, businesses and visitors enhancing business opportunities overall. City Council of Cathedral City and City Council Serving as the Successor Agency of the Redevelopment Agency Board Minutes of February 12, 2014 Page 11 of 12 3. Investment in this property would improve the visual quality at the entrance to the City and that the improvement at this intersection could induce development of property in the area. 4. The City achieves an appreciable net gain in sales tax for a business of this size and type. 5. The business is yielding a lower return on investment than normal for industries dealing with goods and goods sold. 6. The business will generate an appreciable number of new jobs. 7. The business provides an expected critical service of fuel given the very few and limited number of fueling stations in Cathedral City. 8. They will provide a ten year operating covenant to ensure well beyond the tax sharing that the City will continue to gain tax benefits. 9. The business suffered undue economic hardship due to the contractors delay of improvements at that intersection. Mayor DeRosa, stated that these are general fund dollars that will be given back to the business by the City and as such she hopes to never see Mr. Chandi's name on anyone's campaign report during the time that he has an agreement with the City. LEGISLATIVE ACTIONS 15. COUNCIL. Consider approval of an agreement with the Lew Edwards Group to provide communication services. (T. Scott) (Pg. 109-110) Administrative Services Director Scott, presented a staff report to the Council. Council Member Toles, stated that he would like to see a positive campaign and does not want to see heavy handed tactics being used. Katherine Lew, Lew Edwards Group, applauded the Council for continued leadership and hard work as they continue to move the City forward in the right direction. She stated that factual information would be used in the campaign and that Council's wishes will be honored and respected. Mayor DeRosa opened Public Comment. Bill Proctor, Cathedral City, supports an agreement with Lew Edwards Group. There being no additional speakers, Mayor DeRosa closed Public Comment. City Council of Cathedral City and City Council Serving as the Successor Agency of the Redevelopment Agency Board Minutes of February 12, 2014 Page 12 of 12 MOTION by Mayor Pro Tern Vasquez, second by Council Member Toles, carried 5- 0, to move forward with an agreement with Lew Edwards Group to provide communication services by M.O. 6222 COUNCIL REPORTS ON CITIZEN INQUIRIES AND CONCERNS - None ADJOURNMENT Mayor DeRosa adjourned the meeting at 8:20 p.m. Approved and adopted by the City Council and City Council serving as the Successor Agency to the Redevelopment Agency on February 26, 2014. al.41 KATH► EEN J. D- 'OSA, Mayor ATTE GARY . HO ELL, Ci Nlerk (seal)