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HomeMy WebLinkAbout2020-01-09MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING THURSDAY, JANUARY 9, 2020 CIVIC CENTER COUNCIL CHAMBER 73510 FRED WARING DRIVE, PALM DESERT, CA 92260 I. CALL TO ORDER - 3:00 P.M. Mayor Nestande convened the meeting at 3:04 p.m. II. ROLL CALL Present: Councilmember Jan C. Harnik Councilman Sabby Jonathan Mayor Pro Tem Kathleen Kelly Councilmember Susan Marie Weber Mayor Gina Nestande Also Present: Lauri Aylaian, City Manager Robert W. Hargreaves, City Attorney Andy Firestine, Assistant City Manager Rachelle D. Klassen, City Clerk Lori Carney, Director of Administrative Services Russell Grance, Director of Building & Safety Ryan Stendell, Director of Community Development Martin Alvarez, Director of Economic Development Janet M. Moore, Director of Finance/City Treasurer Tom Garcia, Director of Public Works Ty Davis, Division Chief, Palm Desert Fire/Riverside Co. Fire Dept./Cal Fire Lt. Matt Martello, Asst. Chief, Palm Desert Police/Riverside Co. Sheriffs Dept. Grace L. Rocha, Deputy City Clerk III. ORAL COMMUNICATIONS - A (CLOSED SESSION ITEMS) None IV. ADJOURN TO CLOSED SESSION MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 9, 2020 Reauest 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 Nestande adjourned the meeting to Closed Session of the City Council at 3:05 p.m. She reconvened the meeting at 4:01 p.m. V. RECONVENE REGULAR MEETING - 4:00 P.M. A. REPORT ON ACTION FROM CLOSED SESSION. MR. WALLY MELENDEZ approached the City Council to say Palm Desert didn't have a Better Business Bureau, stating it was a State organization and their offices are in Fresno and Sacramento. He believed a better business bureau is very important for a community, especially because Palm Desert is considered the jewel of the Coachella Valley. He (eared the Coachella Valley is actually part of the Imperial Valley, which includes the Salton Sea, and the cities of El Centro and Calexico. Again, he felt a better business bureau was needed in the Coachella Valley, because he's had bad experiences with businesses and doctors. VI. PLEDGE OF ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA - Councilman Sabby Jonathan VII. INVOCATION/INSPIRATION - Councilmember Jan C. Harnik VIII. AWARDS AND PRESENTATIONS A. PRESENTATION TO RECOGNIZE KENNETH DORF FOR HIS SERVICE TO THE CITY OF PALM DESERT AND ITS RENT REVIEW COMMISSION, 2011 -2019. On behalf of the City Council, Mayor Nestande presented an engraved crystal clock to Mr. Dorf and thanked him for his years of service to the Rent Review Commission, including his service on the Citizens on Patrol (COPs). Mr. Dorf said he couldn't be happier to have served the City of Palm Desert, and he expects to return as soon as he resolves his present conflict. 2 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 9, 2020 IX. ORAL COMMUNICATIONS - B None X. CONSENT CALENDAR PALM DESERT CITY COUNCIL A. MINUTES of the Regular City Council Meeting of December 12, 2019. Rec: Approve as presented. B. CLAIMS AND DEMANDS AGAINST THE CITY TREASURY - Warrants Dated 7/1/2019, 8/23/2019 - Qty. 2, 9/30/2019, 11/26/2019, and 12/6/2019 - Qty. 2. Rec: Approve as presented. C. CLAIMS AND DEMANDS AGAINST THE CITY/HOUSING TREASURIES - Warrants Dated 10/4/2019 and 12/13/2019 (Joint Consideration with the Palm Desert Housing Authority - see also Item K below). Rec: Approve as presented. D. APPLICATION FOR ALCOHOLIC BEVERAGE LICENSE by Clubhouse Liquor, 73510 Palm Desert Drive, Palm Desert. Rec: Receive and file. E. ART IN PUBLIC PLACES COMMISSION MINUTES for the Meeting of October 9, 2019. Rec: Receive and file. F. REQUEST FOR DECLARATION of Surplus Property and for Authorization of Disposal — Seven (7) Office Chairs to the Coachella Valley Economic Partnership for Use at the Palm Desert iHUB or for Other Appropriate Disposal. Rec: By Minute Motion, declare the seven (7) office chairs listed on the accompanying staff report's attached Chair Identification Sheet as surplus property and grant authorization to donate them to the Coachella Valley Economic Partnership (CVEP) for use at the Palm Desert iHUB, or to otherwise dispose of them as appropriate. 3 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 9, 2020 G. REQUEST FOR APPROVAL of Out -of -State Travel for One Staff Member to Attend the International City/County Management Association's International Regional Conference to be held February 12-16, 2020, in Jaipur, India. Rec: By Minute Motion, authorize out-of-state travel for one staff member to attend the International City/County Management Association's (ICMA's) International Regional Conference to be held February 12-16, 2020, in Jaipur, India - Authorized Staff Member: Management Analyst (City Manager's Office) — there is no cost to the City associated with this request. SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY H. MINUTES of the December 12, 2019, Regular Meeting of the Board of Directors of the Successor Agency to the Palm Desert Redevelopment Agency. Rec: Approve as presented. I. CLAIMS AND DEMANDS AGAINST SUCCESSOR AGENCY TREASURY - Warrants Dated 7/19/2019, 10/4/2019, 12/6/2019, and 12/13/2019. Rec: Approve as presented. PALM DESERT HOUSING AUTHORITY J. MINUTES of the Housing Authority Meeting of December 12, 2019. Rec: Approve as presented. K. CLAIMS AND DEMANDS AGAINST THE CITY/HOUSING TREASURIES - Warrants Dated 10/4/2019 and 12/13/2019 (Joint Consideration with the Palm Desert City Council - see also Item C above). Rec: Approve as presented. L. HOUSING COMMISSION MINUTES for the Meeting of October 2, 2019. Rec: Receive and file. 4 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 9, 2020 M. ANNUAL LOW AND MODERATE INCOME Housing Asset Fund Report Relative to SB 341. Rec: Receive and file the Annual Low and Moderate Income Housing Asset Fund Report relative to SB 341 for the 2018-2019 Fiscal Year. Upon motion by Harnik, second by Kelly, and 5-0 vote of the City Council (AYES: Harnik, Jonathan, Kelly, Weber, and Nestande; NOES: None), the Consent Calendar was approved as presented. XI. CONSENT ITEMS HELD OVER None XII. RESOLUTIONS None XIII. ORDINANCES A. For Introduction: None B. For Adoption: None XIV. NEW BUSINESS A. REQUEST FOR AWARD OF CONTRACT IN THE AMOUNT OF $215,000 TO RS CONSTRUCTION & DEVELOPMENT, INC., FOR TENANT IMPROVEMENTS FOR THE STATE DEPARTMENT OF REHABILITATION OFFICE PROJECT AT THE PARKVIEW OFFICE COMPLEX (CONTRACT NO. C38330, PROJECT NO. 774-18). Project Manager Emily Roethler noted the staff report for the Tenant Improvement for the Department of Rehabilitation Office Project. Councilman Jonathan understood the contract amount is $215,000 and $48,000 will be reimbursed by the tenant, however, he questioned why the City was only appropriating $100,000 from the Parkview Office Complex Capital Fund. 5 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 9, 2020 Ms. Roethler responded there were already funds in the account for this project, but the bid came in higher than the amount set aside. Further responding, she confirmed Council had previously set aside funds for this project. Mayor Pro Tem Kelly moved to, by Minute Motion, award/authorize: 1) Subject contract in the amount of $215,000 to RS Construction & Development, Inc., Upland, California, for Tenant Improvements for the State Department of Rehabilitation Office Project at the Parkview Office Complex; 2) appropriation of $100,000 from the Parkview Office Complex Capital Fund to Account No. 5104195-4337020; 3) Director of Finance to set aside a 10% contingency for the project in the amount of $21,500; 4) City Manager, or designee, to review and approve written requests for use of contingency change orders for unanticipated conditions, per Section 3.30.170 of the Palm Desert Municipal Code; 5) City Manager to execute said contract — upon approval, funds will be available in Account No. 5104195-4337020 - Parkview Office Complex Capital Account. Motion was seconded by Harnik and carried by a 5-0 vote (AYES: Harnik, Jonathan, Kelly, Weber, and Nestande; NOES: None). B. INFORMATIONAL REPORT ON THE NEW CITY TOURISM AD CAMPAIGN. Tourism & Marketing Manager Thomas Soule said that after a year of hard work on the part of the Marketing Committee and the City's creative agency Idea Peddler, they have formed a new ad campaign for the City. The campaign was built on market research that revealed uncomfortable, although not entirely surprising insights into the image of Palm Desert held by potential visitors and the drive market in Los Angeles, Orange County, and San Diego. Staff learned from the research that they tend to see Palm Desert as the sleepy, less interesting city to Palm Springs. However, those same people crave a nearby place they can escape to from the confinement and stress they feel in the places where they live. In other words, they crave exactly what Palm Desert offers as a resort destination. In addition to the myriad of activities available to locals and visitors alike, there is an easiness to life here that people in the coast are looking for as their getaway. With that in mind, several campaign concepts were presented to the Marketing Committee, and after testing some of those campaigns, there was a clear winner that conveys everything the Palm Desert brand promises, which is "Find Your Happy Pace." The planned words make people stop and consider both place and pace with the idea of taking things slow or being active and adventurous. This campaign was met with enthusiastic approval from the Marketing Committee this past Tuesday, January 7. The campaign will have many elements and they will be shown on different media, stating he will be showing two of them today, an ad and a billboard. In order to counter the idea of Palm Desert as a sleepy boring place, a video ad was created that will play online and on some streaming television services. The 6 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 9, 2020 agency chose upbeat music with creative images inviting the viewer to reconsider the idea of what Palm Desert is like. He displayed the ad for the City Council to view, followed by the billboard ad that will be shown in Los Angeles and San Diego that speaks to the stress and confinement people spoke of in their comments. The goal of this campaign is to re -frame what people think they know about Palm Desert and introduce them to the authentic experience of the City and ultimately invite them to come and see for themselves. Mayor Pro Tem Kelly referred to the bullet points in the staff report, and the words used, specifically, "need of alleviating confinement." She asked staff to elaborate, because it should inform of what is being done in Palm Desert continues to shape the City while preserving its appeal. Mr. Soule said it's an excellent point, because one of the things heard over and over was how boxed in people felt, and that came from all three areas where they did the research (San Diego, Orange County, and Los Angeles). He said people feel stressed and a lot of it has to do with traffic. The people who have been to Palm Desert before, all commented that once they get here they feel a sense of unwinding, the open space, and the easiness of life. Especially for a getaway, which staff learned was different than a vacation. A getaway is something for a couple of days and within a two-hour drive. He said Palm Desert really fits the bill for what people are craving, including the desert night sky. Further responding, he said the campaign will start running next week, and elements of the campaign can be viewed on the City's website. However, if you visit the coast you might see Palm Desert's campaign. Councilman Jonathan responding to comment about the open sky, stated it's important for the City to continue to protect the view corridors and the beauty that surrounds it, which apparently draws people to Palm Desert. Secondly, he said that staff, the Marketing Committee, and Idea Peddler did such a comprehensive and professional job on this campaign with the impressive survey and gaining an understanding of what the visitors are seeking, and to ultimately convey the message. Councilmember Harnik noted she and Mayor Nestande sit on the Marketing Committee as liaisons for the City Council, and it was great to see how well it was received by the marketing experts on the Committee. The Committee is excited and they made the same comments as Councilman Jonathan. She asked staff to explain how the campaign will unfold. Mr. Soule crafted this as a campaign, not just for this year, but that it will have a multi -year life so it could grow. As the campaign develops, the goal is to get more specific about what the City has to offer, such as in the scene 7 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 9, 2020 from The Living Desert and Red Jeep Tours, which are family oriented. Staff will get into more specifics with partners like the JW Marriott and Desert Willow, and how that appeals to every pace of life. Councilmember Harnik moved to, by Minute Motion, receive and file the new Tourism Ad Campaign for the City of Palm Desert. Motion was seconded by Kelly and carried by a 5-0 vote (AYES: Harnik, Jonathan, Kelly, Weber, and Nestande; NOES: None). XV. CONTINUED BUSINESS None XVI. OLD BUSINESS None XVII. PUBLIC HEARINGS A. REQUEST FOR APPROVAL OF AN AMENDED CONDITION REQUIRING AN IN -LIEU AFFORDABLE HOUSING FEE ON A DEVELOPMENT PROPOSAL AT PALM DESERT COUNTRY CLUB AND AN AMENDMENT TO THE OPERATION AND MAINTENANCE AGREEMENT BETWEEN THE OWNERS OF PALM DESERT COUNTRY CLUB AND THE CITY OF PALM DESERT, APNs 637-190-021, 637-190-024, AND 637-190-027, Case No. CZ/PP/CUP 16-280 (PD Holdings, LP, Applicant). Principal Planner Eric Ceja stated the proposed Resolution is to amend Condition No. 14 for the Palm Desert Country Club Executive Golf Course, including a Minute Motion to amend the Operation and Maintenance Agreement (OMA) between the owners, PD Holdings, LLC and the City. In 2018, the City Council approved an Applications to convert the area, the former Executive Course, for 69 condominiums. It's important to note the proposals today do not change the nature of that project. However, at that meeting, staff was directed to amend the OMA to make it clear 9-hole Executive Course was no longer part of that agreement. Council had also directed staff to impose maintenance standards related to desertscape. Therefore, there are now new standards in place for desertscape, including removal of litter and dead plant material, replacement of that material, and pest control measures for the remaining areas. In 2018 there was a condition imposed requiring up to a $12.50 per square foot for affordable housing in -lieu fee. It's typical for the City to impose exactions of this type when its reviewing discretionary approvals like a change of zone or a general plan amendment. Staff recognized with the developer that this was a fee that would likely have to be renegotiated, and the Applicant has stated it's 8 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 9, 2020 too high and makes the project unfeasible. Over the past couple of months, staff has been working with the Applicant to renegotiate the fee. The proposal today is to amend that condition to accept up to $400,000 to approximately $5,800 per unit to be contributed towards the City's affordable housing. Also, the developer owns about a 2'/Z acre piece of land behind one of these golf holes adjacent to Joe Mann Park where they would dedicate that land to the City for expansion of the park. There is also a Sales Performance Contribution from the developer for any unit that sells between $150,000 and $500,000 where it would be a 50/50 split. Essentially, the City could get another $400,000 to contribute toward affordable housing. In sharing this information with Palm Desert Country Club Homeowners Association, they have also worked out an agreement regarding the course maintenance for the 18 holes. Staff has asked that the Applicant show that the agreement has been recorded as part of this approval. Staff recommends approval of the proposed Amendment to Condition No. 14 and the proposed Amendment to the Operation and Maintenance Agreement. Councilman Jonathan said he understood the potential for $400,000 to $800,000 as going to the City's affordable housing funds, but the report indicates the funds are going into the Park Fund. Mr. Stendell explained staff is recommending that the funds go into a 400 Account - Park Fund, which can be reprogrammed much easier than if the funds went into the Housing Fund Account. The anticipation is that these funds could go to parks that may be designed in the future that have both affordable housing and a park, for example, in the north sphere for a regional park. In consultation with Director of Finance, the recommendation was to place the funds in the 430 Account - Park Fund, stating it would be the most nimble place. Councilman Jonathan commented Council has authority to exact affordable housing fees, and it's how this project was teed up. He questioned if Council had discretion to change it to a park fund. Mr. Stendell answered it did, adding that if staff is directed to have the funds go towards affordable housing, Council can consider it done. Mayor Pro Tem Kelly called attention to the bullet points on page 4 of 5 of the staff report summarizing the amended agreement. She said the bullet points gave her a different impression than Exhibit D to the proposed amended OMA. The first bullet point refer to monthly removal of plant litter and Exhibit D indicates it would be done twice a month. She asked if Exhibit D was controlling. 9 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 9, 2020 Mr. Ceja explained that in trying to be brief in the staff report, he didn't elaborate since the OMA Exhibit D was attached. If adopted, the OMA in the Exhibit would apply. In the same regard, Mayor Pro Tem Kelly said the second bullet point states the removal of dead landscape would happen within three (3) months, and Exhibit D refers to removal with replacement within three months of plant removal. She would infer from that statement that removal is suppose to be immediate with replacement within three months. Additionally, staff refers to the parcel as being at the east end of hole 15, and a comment from Mr. Jack Forney suggests it's hole 4. Mr. Ceja confirmed it was hole 4, stating it's an error in the report. Mayor Pro Tem Kelly noted a submission from Ms. Lisa Theodoratus raises the question about a property being built on Elkhorn Trail is meant for a model home for the condominiums. Mr. Ceja responded there is a separate application that the Planning Department is currently reviewing to establish one single lot on Elkhorn Trail, and it's unrelated to this project, adding it would not function as a model home for the condominiums. Mayor Pro Tem Kelly stated that because the proposed Resolution states the property owner will file its previously drafted Declaration of Restrictions before any of the City's concessions go into effect. She explained that the declaration forecloses further development on the 18-hole course, so she's basically asking how that compares with what's currently happening, which is further development on the 18-hole course. Mr. Stendell replied that the Declaration may very well negate the ability for that lot to even be created. The request has been submitted and staff has indicated to the Applicant that it would have to go through a full public hearing process, and if the parcel exists today in the form alluded to, it's highly likely that it will not be created, but staff is working through it with legal counsel. Mayor Pro Tem Kelly went on to the next question having to do with the proposed changes to the Maintenance Agreement under Section 2.1 of the Amendment, where it states, "Notwithstanding the forgoing, should Owner cease operating a golf course on any portion of the Property, the forgoing covenant regarding maintenance of a golf course will no longer apply to such portion of the Property no longer used as a golf course." Since the Declaration of Restrictions requires continued operation of the golf course, she wondered why this paragraph was in the amendment. 10 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 9, 2020 Mr. Ceja replied that the agreement in question is not an agreement that the City is a party to, it's an agreement between the owner and the HOA, and the Operation Agreement is specific to the City and the owners of the golf course. The City's agreement states that as long as they are operating a golf course, they will maintain it in a consistent manner of a golf course, and should they not, this Agreement would no longer be valid. Mayor Pro Tem Kelly raised the question, because if the filing of the Declaration of Restriction is a condition for the City's resolution, it seems to create inconsistency basis for argument. She asked staff if they have recently viewed the existing desertscape on the 18-hole course, because its condition is vastly inferior to what is described in the agreement. The current condition is naked earth, covered 40% by volunteer grass, so it would be a considerable effort to bring what's currently there into compliance with the proposed agreement. Additionally, she questioned what steps have been taken to see that's it's really going to happen. Mr. Ceja said they have not seen the current condition, and the proposed Agreement will allow the City to force the condition listed in Exhibit D, where it addresses naked and exposed soil being prohibited. If the Agreement is approved, they will use it to work with the property owner to bring the course into proper condition. Further responding, he said staff will have Code Compliance measures to follow through with the property owner. Mayor Pro Tem Kelly recalled that in 2018, there was discussion about removing the Executive Course from the Maintenance Agreement, largely because of the expectation that there would be immediate development, which obviously hasn't happened. If there is going to be a further delay, there seems to be a need not to exclude the Executive Course from the Maintenance Agreement. Because she knew residents have called Code Compliance on occasions when using mowers over raw dirt that has created horrible dust and other problems. She asked staff if they have looked at including the Executive Course since the new project hasn't been developed, but with standards that speak to current circumstances. Mr. Ceja said staff has not looked at adding the course to this Operation and Maintenance Agreement. He said staff has been using Code Compliance to respond to complaints. Mayor Pro Tem Kelly pointed out that Mr. Forney's suggested imposing a performance or completion bond to facilitate moving forward with this project so it comes to completion, which she finds it to be the driving force behind making further concessions. 11 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 9, 2020 Mr. Ceja explained that bonds are common when there is a sub -division improvement agreement where the City would collect bonds on City improvements, but it's not something the City applies to private improvements. Mayor Pro Tem Kelly asked if a performance bond was a feasible option in this circumstance, because Council is being told that further concessions from the City are absolutely necessary to get this developed. Therefore, for the City, a worse case scenario would be to make further concessions and not get it built. Mr. Stendell stated staff has put a lot of thought into this question, and he didn't believe there was any way to require a performance bond on a private property, and he spoke to Mr. Forney about his suggestion. However, there may be other ways at getting to the same end game, like placing a time limit for how long the deal would be good for, which seemed to be the only thing the heads in the room could come up with. Councilmember Harnik asked if there was a standard definition for an "average semi -private golf course facility," as noted in Section 2.1 of the Amendment. Mr. Ceja said there are various types of golf courses within the City, and he would be hesitant to define what an average one would look like in this agreement. Further responding, he displayed where the proposed condominiums would be located on the map, confirming there would be a buffer between existing residences and the new condos. Councilmember Harnik questioned who would be responsible for the maintenance of that buffer area. Mr. Ceja replied it was his understanding the developer will install the buffer as part of the improvements and part of the newly formed HOA for the condominiums, but he deferred to the Applicant to confirm that information. Mayor Nestande declared the public hearing open and invited public testimony FAVORING or OPPOSING this matter. MR. MOE SIHOTA, PD Holdings - Owner, explained that when they were presented with the concept of contributing an in -lieu fee for affordable housing, they were philosophically all in, feeling it would be an appropriate contribution for this project, understanding they would be able to provide housing for those who have difficulty finding it within the current market. As much as one can be all -in philosophically, the challenge is always to align those desires with practical business realities. When they took a look at the 12 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 9, 2020 project and the economics, they felt they needed to sit down with staff and see how to maximize the opportunity for affordable housing and improve the quality of life in the area, and at the same time, that it made economic sense. As a result, over very candid discussions with staff and City administration over the summer, they came up with a creative response. They would first put forth $400,000 into a fund, which would provide some people who can't afford market housing the ability to have a roof over their heads. In response to the question raised as to where the 2.5 acres of vacant land is located, he explained it's the current hole No. 4, but legally, it's the old hole No. 15, because the course was reversed in the way its placed. With the addition of the Carlos Ortega Villas development, and given the growth in the community, there is a greater demand on the Joe Mann Park. He has spoken to the HOA about it and they validated that fact. After listening to the HOA, his team came up with the idea of providing the additional 2.5 acres, which would improve the quality of life in the area and add a park, achieving some of the City's environmental objectives. The value of the 2.5 acres on an appraised basis, is roughly $300,000. If the project yields better than projected, it would be appropriate to enhance the contribution to the housing fund, which they hope occurs. Initially, they weren't confident they would be able to reach those numbers with the way the market was moving, but to date, there is a higher level of confidence in that regard. On the Maintenance Agreement, it just made sense not to have it cover the Executive Course, since they are now moving to protect the Championship Course as the overall design of this project, so you have to liberate it from that Agreement. He said they came into an understanding with the HOA where they would put some additional money for them to do some things required for the greater good of the neighborhood. He said this has been a long journey as they started in 2013, and there are many reasons why this project is not completed as of yet. They are remarkably anxious to get started with the project and to complete it. He hopes today represents the end of a very long journey. Mayor Nestande commented that there are concerns about the project even getting started and the City's already made concessions. She asked the Applicant when he thought the project would be breaking ground and what would be a feasible completion date. MR. SIHOTA responded they have already taken the temperature of the market, and they fully anticipate to start this spring. He said it's been a long time for them to have to go through this whole process, so it's not like they haven't been itching to get to the starting line. He recalled for the City Council they initially proposed a landscape and lighting district, and many were opposed, Mr. Forney included. Then they came forward and met with the HOA and others to come up with a different design that would fit with the community, and again many were opposed to that option. They then came 13 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 9, 2020 up with a third iteration which led to the May City Council decision in 2018 that barely passed the test. Therefore, he felt they have been trying since 2013 to resolve the fiscal issue of trying to maintain an uneconomic component of this project, which is the Executive Golf Course. The last remaining issue has been resolving this question of how to achieve the objective of the in -lieu fee of $12.50 per square foot. They were told that other developers have paid significantly less than that amount, but they are attempting to come close to that target. He believed they will get started on the project at the end of this golf season. In terms of finishing the project, he felt the housing market will dictate for when it will be completed. If it's a buoyant market, they will continue to proceed and develop as quickly as possible, and if not, they don't want to get into an impecunious situation. They will start with the first phase by pre -marketing, which will provide an indication on the depth of interest, which will dictate the pace on which they will move forward. Further responding, he said the logical place to start construction is at the foot of New Mexico, the old holes 2 and 9 of the Executive Course, stating it would be the most efficient spot to start. Lastly, once the project develops, there will be a new HOA to deal with some of the areas referred to by Councilmember Harnik. MR. JEB MARSH, Kentucky Avenue, stated his home is located on the south end of the course. He noted he's a certified general property appraiser, including development land, holds the MAI designation, and is a member of the Urban Land Institute. After reading staffs report he's come up with a couple of questions. First there is the $12.50 in -lieu fee, and based on his calculations, it comes out to $1.2 million, which is well under 5% of their overall finish sale price, as long as they sell the units at $400,000, which he believed they will be lucky to see. The point is that these are very thin margins, and it should be a big red flag. These guys are really good at their proforma if they are able to drill it down to say the in -lieu fee of $12.50 is killing this deal. Also, he questioned if it was the City's job to ensure a project is financially feasible, because he felt Council has bent backwards for this Applicant just to give them the entitlements, and they have their hands out again, which won't be the last time. Also, the potential of $400,000 to $800,000 that will go toward Fund 430 - Park Fund, the City will probably only see $400,000. The $1.23 million that would be owed to the City at $12.50 a foot for the affordable housing project, it means the City is valuing the 2.3 acres at $837,000. He said this land has no other highest and best use other than an extension of Joe Mann Park or for use by the golf course. He asked if the City has done it's own appraisal, because he's been involved in a couple of municipal land transaction, and this type of transaction would have triggered two appraisals under heavy scrutiny. Thirdly, this is the first time he has seen affordable housing being used to help the financial feasibility of a development. He asked if the Affordable Housing Department has been consulted and what are their financial needs, because this 14 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 9, 2020 represent a good chunk of change for them to help secure affordable housing. Lastly, he said Joe Mann Park is great and the Council should consider extending it, but the City should use park and open space money. MS. BARBARA POWERS made the comment they no longer had any views, blaming the City for that result, but today she was requesting Council not approve the exchange of land in -lieu of low-cost housing. She said this will set up a precedence for the rest of the builders, questioning if $12.50 per square feet was feasible for the rest of the City, asking Council to do away with it. Also, the City already has extensive parks and saw no need to expand Joe Mann. As far as the completion problem, she would think it can be handled when the Applicant has to have a sub -division report, because of the HOA. In that report, they have to provide a beginning and end date, but she doesn't think one has been filed, because she couldn't find one. She's asking that the current Maintenance Agreement remain in effect until the new HOA is fully formed, because who will take care of what is currently there, adding Council wouldn't believe what the residents there have put up with these past seven years. She said every time they mow and they don't water, there is horrible dust that you can't see across the fairway, and AQMD will be very interested to hear about this if it happens again. If the City does away with the Maintenance Agreement, she asked that the Applicant be required to maintain the areas free of weed, dead trees, and watering before mowing. She said once the HOA is formed, they will have the responsibility of maintaining the areas. MR. WALLY MELENDEZ inquired about the location of this project, because he couldn't see any cross streets. Mr. Ceja responded the main cross streets were Fred Waring, Warner Trail, and Washington Street. With no further testimony offered, Mayor Nestande declared the public hearing closed. Mayor Pro Tem Kelly commended staff for working very hard to move this forward, but it's not at a place where she can support what's before the City Council. She would like to see the matter continued to allow further work on two primary fronts. One is pinning down creative ideas to prompt the actual completion of the project, because the current conditions are unacceptable to the residents, and the City wants to see additional housing. Secondly, because it's unknown how much longer this will continue to persist, she believed Council had reasons to keep the terrain of the Executive Course in the Maintenance Agreement, and include basic expectations to assure that it is not excessively blighted and doesn't pose real breathing problems for 15 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 9, 2020 residents. She would like to see the matter postponed to allow exploration on those two fronts. Councilman Jonathan recalled the original Condition of Approval No. 14 back in May 2019, indicated the developer agrees to pay an in -lieu affordable housing fee not to exceed $12.50 per gross square foot. Two key components here in that the term in the Agreement is "not to exceed $12.50," and staff used the term re -negotiate. He would clarify by saying the City's been negotiating, because the language states it's up to the amount of $12.50, which leaves it wide open. Staff went through a lot in processing and negotiating this alternative resolution, and he is pleased with it. However, the in -lieu fee is for affordable housing, so he's troubled there is a suggestion by staff that the fee can be re -directed to the park. He's happy that part of the negotiation resulted in a contribution of 2.5 acres for the purpose of park space, but affordable housing is and continues to be a priority, so he would like to see that part of the original condition of approval remain. Secondly, he understands the desire to continue this item, and he doesn't take exception to the request, but the sooner the City gets to approval, the sooner it can address the issues residents have had to endure. The solution lies in the commencement of the development, and he didn't know if the City has ever created conditions on a time limit on completion of a project, because the market has to drive it. In his mind, you couldn't force a developer to just build homes, for example, what would happen if there is another real estate downturn. However, the City could impose a starting date, which would be a solution for all the concerns heard. If there is a consensus to postpone, he hopes it's not for a long period. Councilmember Harnik recognizes the residents of Palm Desert Country Club have endured a lot, and it's not the first time they've had to live on a blighted course. This evening the City Council heard about the dust and the issues there, so the sooner this project can be started, no doubt, the better. She is happy about the potential for the expansion of Joe Mann Park, because there are many families in that area who would benefit from having a bigger park, and it will be an asset to the community. Even though Palm Desert has great parks, residents want more of them. She's concern whether the City can legally impose a start date and what happens if it isn't started. Also, this project was not proposed in 2013, at that time a landscape and lighting district was proposed, but it was not well received by the residents, so now we are talking about building real estate on the Executive Course. Because Council has not seen forward motion on the project, areas at Palm Desert Country Club are in bad shape as reported by Mayor Pro Tem Kelly who has been over to see it. She agreed this was not the time to take the Executive Course out of the OAM, however, she didn't like the City having the responsibility of it. At this point, government has to step in and make sure the Executive Course is maintained. 16 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 9, 2020 Mayor Nestande commented that in general, developers are having a tough time across the State of California with housing and the affordable housing requirement. It's one of the greatest challenges of the State, because it's telling developers it must build a $500,000 home, for example, but you have to sell it for $400,000, which is the dilemma. Cities place these in -lieu fee on developers, which she felt made housing more unaffordable. She understands the City has mandates from the State where affordable housing has to be provided, so she felt we were all in this together. She believed that imposing the in -lieu fee of up to $12.50 per square foot will kill this project and Palm Desert Country Club will still have a blighted area and the residents will continue with the same conditions. She likes the deal that staff has put together and she didn't want to waste any more time, adding this has been going on since 2013. She was not in favor of a postponement, preferring making a couple of tweaks to the Agreement to address Councilmembers concerns. Councilmember Weber understood the City couldn't force the developer to build for private property, but she is interested in how a starting date can be implemented. To the Mayor's comment, if the in -lieu fee is not imposed, how does the City come up with the funds. Councilman Jonathan stated that when it comes to the starting date, staff has much more expertise, but that can be assured, because the City is granting a change of zone. If a certain marker is not achieved by a certain date, he believes a change of zone can be revoked, which could be the mechanism to make sure there is substantive start to construction and development. He's comfortable with the in -lieu fee structure along with the donation of the 2.5 acres to expand Joe Mann Park that was developed by staff. However, he would prefer those funds directed to affordable housing. Mayor Pro Tem Kelly appreciates staff wanting to come up with an option that would include some flexibility, but she agreed with the proposition that the City needs to take a principal stand in that the priority is to set aside the funds for affordable housing and find ways to spend it effectively. The reason she wants to see this postponed is she doesn't want the City Council to make further concessions unless it knows what it's getting for it, and the level of concession is not problematic for her for the reasons that have been described. She said the original approvals contained some perimeters to make sure the public areas are built, so that needs to be thought about in this context. It would be reckless for Council to approve the proposed items with instructions about those things and that they are substantive enough to come back. She wants to actually see in black and white what its buying. She noted Ms. Theodoratus got noticed very late, and an additional benefit of the continuance would allow staff to do the work described and affording the opportunity for more participation. 17 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 9, 2020 Councilmember Weber agreed the City has been involved with Palm Desert Country Club since 2013, but not on this project, because back then discussions were about perimeters, the golf course, and overgrown grass, etc., however, Council is anxious to get this project started. Mr. Hargreaves suggested reopening the public hearing for the purposes of continuing the item. Mayor Pro Tem Kelly moved to, by Minute Motion, continue the public hearing to the meeting of February 13, 2020, to allow staff to respond to the input given at this meeting. Motion was seconded by Weber and carried by a 5-0 vote (AYES: Harnik, Jonathan, Kelly, Weber, and Nestande; NOES: None). B. REQUEST TO BEGIN DEVELOPMENT OF THE FISCAL YEAR 2020-2021 ACTION PLAN, INCLUDING THE COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) PROGRAM. Management Analyst Christopher Gerry stated the public hearing this evening is to kick off the City's annual appropriation process for Community Development Block Grant (CDBG) Program. Staff is recommending somewhat of a different approach than previous years, because what has changed from previous years is the concept of CDBG eligible areas. Based upon the changes, the thought process, and research, there are recommended priorities for CDBG funding categories, like public services, public facilities improvements, and administration. A CDBG eligible area is a census track where there are at least 50 percent of the population or less than 80 percent of the area median income, and the Palm Desert community is applicable. With the CDBG eligible areas, there are substantially more opportunities to utilize funds within those respective areas. Historically, the City of Palm Desert has not had CDBG eligible areas, however, Department of Housing and Urban Development (HUD) has recently determined that the City has two eligible areas based on Five -Year American Communities Survey Data or ACS Census Data. Having CDBG eligible areas is a game changer for Palm Desert, and in order to understand some of the regional practices, staff researched how other jurisdictions in the Coachella Valley have allocated their CDBG funds over the last five years. Specifically, when he's talking about public facility improvements he is referring to capital projects, and when saying entitlement jurisdictions he is talking about those cities who receive their allocations directly from HUD. Those jurisdictions are the cities of Indio, Cathedral City, Palm Springs, and Palm Desert. In the staff report (Attachment B) is a snap shot of the four jurisdictions for the past five-year CDBG Funding Comparison for Public Facilities and Improvements. and their totals. Palm Desert was included in the comparison, although it's not an equal comparison since the City has been problematically different for not having eligible areas in the past. He provided data and percentages on 18 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 9, 2020 how CDBG funds had been used in the past by all the jurisdictions. Comparatively, Palm Desert has allocated approximately $2 million across 22 projects, but during that same period, 12 of the project totaling approximately $550,000 have been located outside the City. The recommendations before the City Council is intended to identify priorities per funding CDBG category. For Public Service, there are two recommended priorities, the first is to solicit applications for fair housing services, because this is a mandate of HUD funds. Secondly, staff recommends working with Path of Life on an agreement for Bridge Housing, which is short-term housing program. The City has been brainstorming for years on how to utilize a limited number of affordable housing units for homeless individuals whether it be short-term or long-term. He noted there are various restrictions regarding altering the waiting list for affordable housing units. Also, the City cannot rent a housing unit similar to what a resident can. Concurrently, the City's Homelessness Assistant Program (HAP) has been in effect for 6 months, and were beginning to see and hear success stories that have occurring since it has established these personal relationships through street outreach. This potential solution increases housing by leveraging Path of Life's ability to rent a housing unit and providing the HAP team with discretion in placement and case management. Moving on to Public Facility Improvements, based on these new program changes and additional research, staff recommends limiting applications to non-profit agencies located in Palm Desert to apply for a public facility improvement funds (Capital Funds). Since Palm Desert now has CDBG eligible areas, staff recommends consideration of City projects within those Census Track/CDBG eligible areas. He included the Americans with Disabilities Act (ADA) parking lot improvement project, because it was part of last fiscal year and it may need additional funding. Finally, staff recommends retaining its Administrative Funds for coordinating the CDBG Program, since it's a labor-intensive. He said 8 out of 10 comparable cities retained at least 90% of their administrative funds. He said staff will be working with the Outside Agency Funding Committee on identifying and recommending specific activities and providing their recommendation to the City Council in April. Councilmember Weber needed further clarification, because she understands Palm Desert now has two eligible areas. Also, she was under the impression this program was going away, stating Palm Desert was going to combine it with Riverside County and allowing them to manage the whole thing. In the past, the reason the Committee had picked organization outside the City was because many Palm Desert residents were benefitting from their services, i.e., the Stroke Center, etc. Also, based on the staff report she understands the City can now use the Administrative Funds toward Path of Life. 19 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 9, 2020 Mr. Gerry explained there are three components to the CDBG, but he focused on the Capital Funds, because the recommendations impact the Capital side more so than the others. The Public Services Funds are more operational funds, so instead of going with a formal application process, Palm Desert will work more with Path of Life on a particular contract, but also solicit applications for fair housing services, since that is a mandate. Councilman Jonathan noted the arrangement with Path of Life would come out of the Public Services Fund in the amount of $60,000, which will specifically go toward leasing a unit that would be available for homeless individuals living in Palm Desert. Mr. Gerry concurred, stating it would be in the form of a contract, adding Path of Life would have the liability, but the City would have full discretion and case management, adding that staff preferred this arrangement. Councilman Jonathan agreed, because the City's resource officers would be providing the wrap around services and part of the Housing First Program in the City. He wants to make sure the contract is very specific, because there is the migration of homeless individuals from one community to another. Mr. Gerry offered that staff will have some discretion with reviewing who exactly is going into a unit, adding there are multiple individuals ready for housing at this time. He said there are people on the streets who don't want to be out there, so it was just a matter of getting those units. Mayor Nestande declared the public hearing open to receive comments regarding development of the FY 2020-2021 Action Plan, including the Community Development Block Grant (CDBG) Program. and invited anyone who wished to address the City Council on this matter to come forward at this time. MS. SHANNON SHEA, Eclectic Street, Palm Desert, representing Elder Love USA, they are an in -home care company, and they are nonprofit. She founded Elder Love in 2016 with the intent to focus on those older adults who do not qualify for IHSS, which is in -home support from the County, but they are just above the poverty line and don't qualify for any assistance and can't afford existing services. She decided to create a solution by founding this nonprofit. They charge a small fee to the senior and is able to supplement those cost through fund-raising and grants. They are looking to expanding their services to include an adult day center. In Palm Desert they will focus exclusively on those seniors who do not have any memory care problems, because Eisenhower Memory Care is literally two blocks from where they are looking to put their adult care center. Even at their reduced rate, through Elder Love Care, it can be cost prohibited if you need 8, 9, or 10 hours a day of care every day. They are looking at charging $50 to $80 20 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 9, 2020 for the whole day of care and reducing that cost further by using grants. She said Elder Care will be applying for the CDBG grant to open what they will be calling "The Club House." She noted her father has been dealing with Parkinson's for 19 years and he's the one that named the center and told her the types of thing he wanted in The Club House. Lastly, she looked forward to working with the City. With no further testimony offered, Mayor Nestande left the public hearing open and opened the FY 2020-2021 CDBG application process, according to the recommended priorities, which includes focusing public services funds on fair housing services and Path of Life Ministries; concentrating public facilities and improvements funds on City and nonprofit organization projects located in Palm Desert; and retaining administrative funds for staffing costs to initiate the application process. Councilman Jonathan stated the City was challenged by Coachella Mayor Steven Hernandez to provide housing at a recent Coachella Valley Association of Governments (CVAG) meeting. Of course, every city wants to do it, but the challenge is always financial. He in turn challenged Mr. Gerry to come up with a solution and he did. What Mr. Gerry is proposing is very creative and effective, and he couldn't wait to present it at the next Homelessness Committee, because he's hopeful it can set an example for the rest of the Valley and beyond. He said a lot of people are looking at the Coachella Valley that has adopted this regional approach to homelessness that has been rather effective. He commended Mr. Gerry for his creative thinking and going outside the box and not giving up; a job well done. XVIII. MAYOR AND COUNCILMEMBER REPORTS & REMARKS TO THE COMMUNITY A. Councilmember Jan C. Harnik Committee Reports and General Comments. 1. Coachella Valley Economic Partnership (CVEP) - noted that under the leadership and guidance of Joe Wallace, CVEP has done a great job. She announced they received the Seal of Transparency and Platinum status for 2019 by GuideStar, which is the highest you can get. 2. Riverside County Transportation Commission (RCTC) - reported Riverside County is the fastest growing County in California, and transportation is a challenge and it's getting worse. There was comprehensive public outreach that included focus groups, Tele-Town Hall meetings, social media, and regular RCTC meetings. Through the outreach RCTC developed a Countywide Traffic Relief Plan, and the draft was released yesterday by the Commission. The draft can be viewed at TrafficReliefPlan.ora The Plan includes the Commission's adopted vision, goals, objectives, sub -regional structure, which means the 21 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 9, 2020 Coachella Valley is treated differently. There is also a return to source component, as far funding, with a deference to the Coachella Valley Association of Governments (CVAG) Transportation Project Prioritization Study (TPPS). The feedback received from the Coachella Valley is very clear toward passenger rails, connecting communities, seniors, veterans, and students being able to get around easier, and upgrading the infrastructure to deal with flooding and blow sand, improving safe active transportation opportunities, and understanding how seasonal and event -related traffic works. The goal is to work through planning and technology to avoid the traffic disasters seen in other areas of Riverside County. Even through funds are being received through SB1 - Road Repair, there is a tremendous funding gap. It will take billions of dollars to fix the problems, and even though a lot of good can be accomplished in the Coachella Valley, you couldn't overlook there is a 24-million drive market. A future funding initiative is being considered, and at the June RCTC Meeting, a decision will be made on whether it will be placed on the ballot. B. Councilman Sabbv Jonathan Committee Reports and General Comments. None C. Mavor Pro Tem Kathleen Kelly Committee Reports and General Comments. None D. Councilmember Susan Marie Weber Meeting Summaries Report for the Period of November 30 - December 27, 2019. With City Council concurrence, the Meeting Summaries Report was received and filed. 1. Karen and Tonv Barone's Rabbit Sculpture Dedication "Desert Warren 2" - she along with Mayor Pro Tem Kelly attended the dedication at the northwest corner of Highway 111 and Town Center Way. She thanked Management Specialist Amy Lawrence for working with the Barone's, because this sculpture has a big presence in the City. She said a documentary is being done on the creation and delivery of this sculpture, which will feature the City. E Mavor Gina Nestande Committee Reports and General Comments. None 22 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 9, 2020 F. City Council Reauests for Action. 1. Reauest for Participation in Greener Utility - Councilman Sabbv Jonathan stated that at today's Desert Community Energy Study Session there was discussion of participation in greener utility whether that be through the DCE or Southern California Edison. It occurred to him that with the Budget Study Sessions coming up, if it would be appropriate for staff to put together a staff report for Council to consider the City going green at this time. Mayor Pro Tem Kelly offered she would be open to looking at the question, including both DCE choices and Southern California Edison choices. Councilmember Harnik agreed, stating it would be valuable information. Councilman Jonathan requested a report that addresses both the pros and cons, costs, and differences between going green with DCE versus Edison, stating he hopes the report will coincide with the budget process. Ms. Aylaian agreed to bring this item up during the budget process. G. City Council Consideration of Travel Requests/Reports. None XIX. STAFF REPORTS AND REMARKS A. City Manager 1. City Manaa_ er's Meeting Summaries Report for the Period of December 2-27, 2019. With City Council concurrence, the Meeting Summaries Report was received and filed. 2. Invitation to Open House on District Voting and Rank Choice Voting - announced the City is having a public forum at the Palm Desert Community Center on Wednesday, January 15, 2020, 6:00 p.m. to 7:30 p.m. This is an opportunity to educate people about the implications of district voting and what residents can do to have a voice in the formation of districts. Refreshments and pizza will be available so that people don't have to skip dinner in order to attend. Additionally, child care at the facility will also be provided. 23 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 9, 2020 3. Conaratulations to Senior Analyst Specialist Veronica Tapia - who won the State Championship in Power Lifting in her own division. She not only won at the State level, but is now ranked number 28 in the world. Ms. Tapia also elevated the previous record, which was 788 pounds to 881 pounds. B. City Attorney None C. City Clerk None D. Public Safety 1. Fire Department None 2. Police Department None XX. ADJOURNMENT With City Council concurrence, Mayor Nestande adjourned the meeting at 5:55 p.m. ATTEST: RA L E D. KLASSE , ITY CLERK CITY OF PALM DESERT, CALIFORNIA GINA NESTANDE, MAYOR 24