MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING THURSDAY, FEBRUARY 13, 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 3:00 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 Robert W. Hargreaves, Assistant City Attorney Rachelle D. Klassen, City Clerk Russell Grance, Director of Building & Safety Lauri Aylaian, Director of Community Development Martin Alvarez, Director of Economic Development Paul S. Gibson, Director of Finance/City Treasurer Janet M. Moore, Director of Housing Mark Greenwood, Director of Public Works Frankie Riddle, Director of Special Programs Stephen Y. Aryan, Risk Manager Larry Sherman, Admin. Sgt., Palm Desert Police/Riverside Co. Sheriff’s Dept. Grace L. Mendoza, Deputy City Clerk III. ORAL COMMUNICATIONS - A (CLOSED SESSION ITEMS) None MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING FEBRUARY 13, 2014 IV. ADJOURN TO CLOSED SESSION Request for Closed Session: A. Conference with Real Property Negotiator pursuant to Government Code Section 54956.8: 1) Property: Lease Property - 73710 Fred Waring Drive, Suite No. 100, Palm Desert Negotiating Parties: Agency: John M. Wohlmuth/Paul S. Gibson/City of Palm Desert Property Owner: City of Palm Desert Other Parties: Law Office of Hanover & Shaw Under Negotiation: x Price x Terms of Payment 2) Property: 44900 San Clemente Circle (APN 627-074-006), Palm Desert Negotiating Parties: Agency: John M. Wohlmuth/Martin Alvarez/City of Palm Desert Property Owner: Lee Anna Palmer Under Negotiation: x Price x Terms of Payment B. Conference with Legal Counsel regarding existing litigation pursuant to Government Code Section 54956.9(d)(1): 1) Silver Spur Reserve v. City of Palm Desert, et al., Riverside County Superior Court, Case No. CIV 80790; DCA No. E023514 2) WNRA Palm Desert 103, LP, v. City of Palm Desert, et al., Riverside County Superior Court, Case No. PSC 1400549 C. 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 3:01 p.m. He reconvened the meeting at 4:01 p.m. V. RECONVENE REGULAR MEETING - 4:00 P.M. A. REPORT ON ACTION FROM CLOSED SESSION. Mr. Erwin stated that he needed to ask the City Council’s consideration of adding an item to the agenda that came up immediately before the meeting began today, having to do with existing litigation that was discussed in the 2 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING FEBRUARY 13, 2014 Closed Session just ended, pursuant to Government Code Section 54956.9(d)(1): 3) City of Palm Desert v. Shah, Riverside County Superior Court, Case No. INC 1301195 He added that there were no reportable actions from the Closed Session just ended. On a motion by Spiegel, second by Harnik, and 5-0 vote of the City Council (AYES: Benson, Harnik, Spiegel, Weber, and Tanner; NOES: None), the aforementioned Existing Litigation Item No. 3 was added to the list of existing litigation cases for Closed Session. VI. PLEDGE OF ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA - Councilmember Jean M. Benson VII. INVOCATION - Mayor Van G. Tanner VIII. ORAL COMMUNICATIONS - B MS. ROMMY PINNEY, La Quinta, CA, said she spoke at the last meeting, asking Councilmembers to investigate the reality of Walmart’s claims after it recently opened the Neighborhood Market in Palm Desert. She went on to say that what Walmart says compared to the reality are different, and she had invited two Walmart Associates who work at the La Quinta store to join her here today to share their experience. MS. MARIA LEDEZMA, Coachella, CA, addressed the City Council, and her remarks were translated by Ms. Rommy Pinney. She related that she’d been working for Walmart No. 1805 in La Quinta for about 10 years. Currently, she makes approximately $15/hour as a full-time worker, which meant about 35 hours/week. Further, Ms. Ledezma is a mother and father of three school-age kids, and it is very hard for her to take them to school. MS. GRACIELA BLANCAS, Coachella, CA, also addressed the City Council, with the remarks being translated by Ms. Pinney. She, too, works for Walmart in La Quinta and is full-time but only works 35-38 hours per week; she’s worked there for 10 years and makes less than $14/hour. She said it was hard for her to take care of her 80-year-old mother and her three grandchildren, one of whom is in college, the other two in high school, with the salary she makes at Walmart. She added that it affects her greatly when her hours are cut by two or three each week. MR. STEVE FINGER, Palm Desert, CA, referred to the Mayor’s earlier invocation where he asked for guidance in the Council’s doing the best for its constituents. He said the reason the prior speakers were present today was to bring forward an issue that the Council may or may not be aware of – the disparity of what they are earning 3 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING FEBRUARY 13, 2014 at Walmart and what they need to earn. He said that while these ladies came from Walmart, he wasn’t only concerned about what Walmart pays but that all the large Palm Desert businesses allow all their employees to earn a living wage. He went on to say that in Palm Desert, according to the Massachusetts Institute of Technology, one needs just about $11/hour for a single person to live here, and one needs just a bit over $21/hour if they have one child, which is the situation of many, many workers at Walmart and other businesses. Although these very employees work full-time, trying to work enough to earn that money, since they only work 35 hours at one of those businesses so that the benefits law doesn’t kick in, they are sometimes found at two jobs here just to make enough to go home and support their family. He said this leads to the other problem that was expressed – taking the children to school and taking care of the children if they’re working full-time plus another full-time job; they don’t get the family time that they deserve. He said the Minimum Wage/Living Wage Movement is growing across America. Over 100 municipalities have already increased their living wage, and he said that people all over were coming out to say they need a raise in that minimum wage. In Washington, DC, he said the Council actually voted to raise the minimum wage, but the Mayor vetoed it; shortly thereafter, Washington, DC, and surrounding counties voted in an $11.50 wage that kicks in over the course of three years. He said this was being done because people need that money in order to live. He suggested to City Council that at least for the large employers in Palm Desert, they be urged to come to the table to work out something so those increases come more quickly. He noted that what the prior ladies didn’t mention was that they’d worked at Walmart for five years before they got up to an hourly rate over $10, and he thanked the Council for its consideration of his suggestion. MS. MARNELL FARLEY, Palm Desert, CA, wished to stand up and speak out for employees and people who care about workers at Walmart. She was grateful for the employees coming before Council today to share their real concern that there was a possible misunderstanding about the numbers, relating that she’d personally spoken to the manager at the new Walmart Neighborhood Market on Highway 111 the day it opened here, who said that all the employees were getting a wage of $17/hour. She said all of these things could definitely be attributed to misinformation, but it’s always nice to talk to the employees; and that’s what she did. She then found out what was true for them, and it made it very simple for her as a mom and a grandmother right here in Palm Desert, which she knew was a very affluent community and that the City Council does the very best it can to make a level playing field for everyone. She noted that the City has two Walmarts – the big-box Walmart near the freeway and the new Neighborhood Market downtown – Walmart is part of the community. Therefore, she was standing up and supporting, just as Walmart employees across the nation are doing, coinciding with their slogan, “Standing Up and Speaking Out,” which she applauded. She announced that there is an action going on tomorrow, 9:00 a.m. at the Palm Springs Walmart at the Ramon Shopping Center, and she invited everyone to join their group there as the workers and local people support the protest. She said anyone who comes can talk to other employees, as well, because it was helpful to have the dialog, and she 4 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING FEBRUARY 13, 2014 thanked City Council for being willing to listen to their concerns. She especially thanked the employees from Walmart who were willing to come and speak today. Mayor Tanner thanked the speakers for their comments and said Council would try to do what it can.