HomeMy WebLinkAbout2020-01-23MINUTES
REGULAR PALM DESERT CITY COUNCIL MEETING
THURSDAY, JANUARY 23, 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 3:01 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
Eric Ceja, Principal Planner
Martin Alvarez, Director of Economic Development
Janet M. Moore, Director of Finance/City Treasurer
Tom Garcia, Director of Public Works
Stephen Y. Aryan, Risk Manager
Ty Davis, Division Chief, Palm Desert Fire/Riverside Co. Fire Dept./Cal Fire
Mike Beverlin, Battalion Chief, Palm Desert Fire/Riverside Co. Fire Dept./Cal Fire
Sgt. Jared Howe, Palm Desert Police/Riverside Co. Sheriffs Department
Grace L. Rocha, Deputy City Clerk
III. ORAL COMMUNICATIONS - A (CLOSED SESSION ITEMS)
None
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REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 23, 2020
IV. ADJOURN TO CLOSED SESSION
Request for Closed Session:
A. Conference with Legal Counsel regarding significant exposure to litigation
pursuant to Government Code Section 54956.9(d)(2):
Number of potential cases: 2
With City Council concurrence, Mayor Nestande adjourned the meeting to Closed
Session of the City Council at 3:02 p.m. She reconvened the meeting at 4:14 p.m.
V. RECONVENE REGULAR MEETING - 4:00 P.M.
A. REPORT ON ACTION FROM CLOSED SESSION.
None
VI. PLEDGE OF ALLEGIANCE TO THE FLAG OF
THE UNITED STATES OF AMERICA - Mayor Gina Nestande
VII. INVOCATION/INSPIRATION - Councilman Sabby Jonathan
VIII. AWARDS AND PRESENTATIONS
A. PRESENTATION OF PROCLAMATION, DECLARING THURSDAY,
JANUARY 23, 2020, AS "PALM DESERT AZTECS VOLLEYBALL TEAM
DAY" IN THE CITY OF PALM DESERT.
On behalf of the City Council, Mayor Nestande presented the proclamation
to the Palm Desert Aztecs Volleyball Team. She congratulated them for
making it to the State Playoffs, stating they represented their school and the
City well.
B. PRESENTATION OF PROCLAMATION, RECOGNIZING
RIVERSIDE COUNTY FIRE PERSONNEL AND BATTALION 12
FIREFIGHTERS FOR THEIR HEROISM AND LIFE-SAVING ACTIONS ON
A STRUCTURE FIRE AT CALIFORNIA VILLAS APARTMENTS ON
SATURDAY, DECEMBER 28, 2019.
On behalf of the City Council, Mayor Nestande presented the proclamation
to Firefighters Kevin Brown, Travis Thompson, and Fire Captain
James Hinkle for their heroism and life-saving action on December 28. She
also thanked fire personnel present for their bravery and dedication for the
well-being of the community.
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REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 23, 2020
Fire Chief Davis is thankful the City supports their program, stating it's an
honor to work in the City of Palm Desert, especially around a great group of
dedicated, efficient, and professional firefighters that serve the public 365
days a year. He said he and Fire Chief Newman are proud of their team. He
extended his thanks to Sgt. Jared Howe with the Riverside County Sheriff's
Department and law enforcement partners, because anytime there is a Fire
Department response whether it's a structure, hazardous material, or
medical emergency, they are providing assistance.
C. PRESENTATION TO THE CITY COUNCIL BY QUEEN SCHEHERAZADE
AND HER COURT AS AMBASSADORS OF THE 2020 RIVERSIDE
COUNTY FAIR AND NATIONAL DATE FESTIVAL.
Ms. Kayley Serrano, Queen Scheherazade; Ms. Alexandria Gooray, Princess
Dunyazade; and Ms. Analise Ortega, Princess Jasmine, each greeted the
City Council and provided background on themselves and personally invited
them and all present to visit the upcoming Date Festival, February 14-23,
2020. They thanked the City Council for the opportunity to make this
presentation and provided each with a lapel pin and Date Festival brochure
commemorating the 2020 event.
IX. ORAL COMMUNICATIONS - B
MR. ROB BALLEW announced he was the Interim CEO of the Palm Desert Area
Chamber of Commerce. He noted he retired from the YMCA in October 2019, and
he is now with the Chamber. He said on Friday, March 20, 2020, the Chamber will
be hosting the State of the City where Mayor Nestande will share what is happening
in Palm Desert and City goals for the future. He thanked the City Council for always
supporting the Chamber.
MS. MARY HAAS, Highway 74, Palm Desert, stated she's been before the City
Council requesting the City purchase vacant lots that are still available and creating
small pocket parks. She was told about four years ago this was in the works, but
to her knowledge nothing has been done. She lives along Highway 74 where there
is no grass area, and although, there is green space at the Civic Center Park, there
is none between the two places. She said there are a lot of people that walk their
dogs, so she felt creating small parks was an important need for the City and it's a
good way for neighbors to get to know each other.
Mayor Nestande said her contact information will be forwarded to staff and perhaps
the Parks and Recreation Commission to look into it.
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MR. WALLY MELENDEZ expressed his appreciation for the Brown Act, which
allows him to talk about his three favorite subject, education, housing, and real
estate. He heard Council say it doesn't have jurisdiction over College of the Desert,
but he disagreed, stating it can influence the college to provide a four-year
bachelor's degree program benefitting students of the Coachella Valley. Also, he
encouraged young individuals to pursue real estate ownership and getting away
from renting and/or buying a condo.
X. CONSENT CALENDAR
PALM DESERT CITY COUNCIL
A. MINUTES of the Regular City Council Meeting of January 9, 2020.
Rec: Approve as presented.
B. CLAIMS AND DEMANDS AGAINST THE CITY TREASURY - Warrant
Dated 12/16/2019.
Rec: Approve as presented.
C. CLAIMS AND DEMANDS AGAINST THE CITY/HOUSING TREASURIES -
Warrants Dated 12/20/2019 and 1/3/2020 (Joint Consideration with the
Palm Desert Housing Authority - see Item R below).
Rec: Approve as presented.
D. APPLICATION FOR ALCOHOLIC BEVERAGE LICENSE by Embassy Suites
by Hilton Palm Desert, 74700 Highway 111, Palm Desert.
Rec: Receive and file.
E. CITY COMMITTEE AND COMMISSION MEETING MINUTES.
1. Marketing Committee Meeting of October 1, 2019.
2. Parks and Recreation Commission Meeting of November 5, 2019.
3. Youth Committee Meetings for 2019.
Rec: Receive and file.
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F. REQUEST FOR ADOPTION of Resolutions of the City Council of the City of
Palm Desert, California, Setting Forth Its Findings and Authorizing the
Destruction of Paper Records that Have Been Digitally Imaged from the
Department of Building & Safety, to Rely On the Electronic Record as the
Official Record — Records Dated September, October, November, and
December 2018, and January, February, March, and April 2019 (Exhibit "A").
Rec: Waive further reading and adopt Resolution Nos.: 1) 2020 - 02 -
September 2018 Records; 2) 2020 - 03 - October 2018 Records;
3) 2020 - 04 - November 2018 Records; 4) 2020 - 05 -
December 2018 Records; 5) 2020 - 06 - January 2019 Records;
6) 2020 - 07 - February 2019 Records; 7) 2020 - 08 - March 2019
Records; 8) 2020 - 09 - April 2019 Records.
G. RESOLUTION NO. 2020 - 10 - A Resolution of the City Council of the City
of Palm Desert, California, Setting Forth Its Findings and Authorizing the
Destruction of Records from the Office of the City Clerk as Indicated on the
Records Retention Schedule (Adopted September 12, 2019) - Various
Records Center Files (Exhibit "A").
Rec: Waive further reading and adopt.
H. RESOLUTION NO. 2020 - 11 - A Resolution of the City Council of the City
of Palm Desert, California, Setting Forth Its Findings and Authorizing the
Destruction of Paper Records that Have Been Digitally Imaged from the
Office of the City Clerk, to Rely On the Electronic Record as the Official
Record — Various Records Center Files (Exhibit "A").
Rec: Waive further reading and adopt.
I. RESOLUTION NO. 2020 - 12 - A Resolution of the City Council of the City
of Palm Desert, California, Setting Forth Its Findings and Authorizing the
Destruction of Records that Have Been Digitally Imaged from the
Department of Community Development, to Rely On the Electronic Record
as the Official Record (Exhibit "A").
Rec: Waive further reading and adopt.
J. RESOLUTION NO. 2020 - 13 - A Resolution of the City Council of the City
of Palm Desert, California, Setting Forth Its Findings and Authorizing the
Destruction of Records that Have Been Digitally Imaged from the
Department of Community Development, to Rely On the Electronic Record
as the Official Record - Youth Committee Files (Exhibit "A").
Rec: Waive further reading and adopt.
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K. REQUEST FOR RATIFICATION of the Assignment of Contract from GDG
to GDG, Inc., for Services to Operate the El Paseo Courtesy Cart Service
(Contract No. C38440).
Rec: By Minute Motion, ratify the assignment of subject contract from GDG
to GDG, Inc., Palm Desert, California, for Services to Operate the
El Paseo Courtesy Cart Service.
L. REQUEST FOR APPROVAL of Law Enforcement Responsibilities
Memorandum of Understanding (MOU) Agreements Between the City of
Palm Desert, County of Riverside, California State University,
San Bernardino, College of the Desert, and University of California,
Riverside.
Rec: By Minute Motion: 1) Approve Law Enforcement Responsibilities
MOUs Between the City of Palm Desert, County of Riverside, and
each of the following: a) California State University, San Bernardino
(Contract No. C39810A); b) University of California, Riverside
(Contract No. C39810B); c) College of the Desert (Contract
No. C39810C); 2) authorize the City Manager to execute all MOU
Agreements.
M. REQUEST FOR APPROVAL of the 2020 SWING `N HOPS STREET
PARTY— Saturday, February 8.
Rec: By Minute Motion, approve/permit: 1) Road closure on El Paseo
between San Pablo Avenue and Larkspur Lane for the 2020 Swing `N
Hops Street Party; 2) Consumption/Possession of Alcoholic
Beverages on Public Property pursuant to Palm Desert Municipal
Code Section 9.58.040.
N. REQUEST FOR APPROVAL of the 2020 Palm Desert Half Marathon and 5K
Event - Sunday, February 9 (Southland Events, LLC, Applicant).
Rec: By Minute Motion, approve: 1) 2020 Palm Desert Half Marathon and
5K scheduled for Sunday, February 9; 2) proposed event route and
road closures; 3) temporary waiver of Palm Desert Municipal Code
(PDMC) Sections: a) 11.01.140 - Amplified Sound; b) 11.01.080(W) -
Possession/Consumption of Alcohol in City Parks, pursuant to PDMC
Section 9.58.040; c) 11.01.080(Q) - Prohibited Conduct Generally in
City Parks - Vendor Sales.
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SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY
O. MINUTES of the January 9, 2020, Regular Meeting of the Board of Directors
of the Successor Agency to the Palm Desert Redevelopment Agency.
Rec: Approve as presented.
P CLAIMS AND DEMANDS AGAINST SUCCESSOR AGENCY TREASURY -
Warrant Dated 1/3/2020.
Rec: Approve as presented.
PALM DESERT HOUSING AUTHORITY
Q. MINUTES of the Housing Authority Meeting of January 9, 2020.
Rec: Approve as presented.
R. CLAIMS AND DEMANDS AGAINST THE CITY/HOUSING TREASURIES -
Warrants Dated 12/20/2019 and 1/3/2020 (Joint Consideration with the
Palm Desert City Council - see Item C above).
Rec: Approve as presented.
S. HOUSING COMMISSION MINUTES for the Meeting of December 4, 2019.
Rec: Receive and file.
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
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XIII. ORDINANCES
A. For Introduction:
None
B. For Adoption:
None
XIV. NEW BUSINESS
A. REQUEST FOR ESTABLISHMENT AND IMPLEMENTATION OF THE
"INVEST PALM DESERT" ECONOMIC DEVELOPMENT INCENTIVE
PROGRAM.
Senior Development Analyst Wayne Olson said staff will be providing an
overview of the proposed incentive program and its guidelines. The
Incentive Program consists of six categories that applicants will be able to
apply for from the City. He noted he and Director of Economic Development
Martin Alvarez have been working on this together for more than a year as
it was one of the City's established goals for 2019. They have packaged a
very good program for Council to review. The 2019 goal was "Design an
effective, transparent and marketable incentive program that targets a
diverse economy and spurs economic development." In order to inject a
diverse economy, staff ensured the incentives were diverse as well, which
will be illustrated in the menu of options being proposed. Since the April
2019 study session with the City Council, staff has presented the program
to the Economic Development subcommittee in December where it received
helpful and fruitful comments, and incorporated into the package. He said
the work being presented was a team effort that included Tourism and
Marketing Manager Thomas Soule. By incorporating comments received at
the April 2019 study session, and as part of the Incentive Program Overview,
staff targeted transformative areas of the City and tied it back to the General
Plan by identifying certain geographies within Palm Desert where you can
apply for these incentives. The program includes six categories and a
two-year "kick start" that has a sunset date of June 1, 2022. This will be an
application -based program in order to implement a transparent process.
There is State law that requires any city contribution of over $100,000 to be
reported in AB561 format. Staff will be requesting $2 million from the
Economic Development Reserve Fund. Guidelines for participation in the
program require that the applicant must be a business, business owner,
lessor, developer or real property owner within the boundaries of the City of
Palm Desert, with one exception under the High Wage "Move In" Incentive
category where they can be outside City boundaries. Additionally, State law
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mandates that applicants express financial need and public consideration
and acknowledge prevailing wages. Staff worked diligently with the legal
team to create program categories that wouldn't trigger prevailing wage, but
failed at that effort. Therefore, every proposed category an applicant applies
for will trigger prevailing wages. He noted this wasn't a problem unique to
Palm Desert as it was a Statewide issue every jurisdiction face in situations
likes this. Applicants must be located within the following zoning districts:
Desert Willow and University Park Area; Downtown; Downtown Overlay;
Downtown Edge; Planned Commercial; and Service Industrial. Best
practices indicate the incentive should be tied to a job/position. Most cities
when they employ an incentive, they have some sort of job measure based
on a per dollar volume. In our case, staff is proposing one (1) job per
$100,000 of City investment or create one full-time employee (FTE) paid
position at 100% of median income. The median income this year is
$48,800. There is also a provision to create two FTE at 90% of median
income per $100,000. Again, this ties the incentive back to jobs, and
another way to think about this, if an applicant applies for $100,000, they
have to retain one job for the term of the incentive. In addition, the applicant
will have to obtain their regular entitlements, policy approval, and permits the
way they typically would apply for as a project. The program has to
commence by June 1, 2022, in order for the incentive to employ $2 million
in aggregated funds for the program. Direction from Council was for the
opportunity to review authority on many of the projects, if not all. Therefore,
staff set a threshold of $25,000 for City Manager review and approval, with
an aggregated amount of $250,000 total on a given year. Anything over and
above $25,000 would appear before the City Council to qualify for the
program. The program consists of the following six categories: Development
& Plan Check Fee Rebate; Capital Improvements Grant; High Wage "Move
In" Incentives; Site Specific Revenue Sharing; New Development Project
Assistance; and Ongoing Incentives. He went on to review each of the
categories as follows:
Development & Plan Check Fee Rebate is targeted toward local
businesses looking at renovation and expansion. Eligible fees are
planning application fees, development services and plan check fees,
and certain development impact fees. In this program category, the
applicant would pay the fees and upon completion of the project be
rebated.
Capital Improvements Grant is a remaking of the very successful
Facade Enhancement Program (FEP) that was offered by Palm
Desert for many years. The target here is local and new businesses,
existing buildings, capital improvements, and facades. Staff heard
from the business community that this is an ongoing desired category.
For example, restaurants that are trying to open a new facility in the
City have the onerous task of providing a grease trap, which can be
costly to a restaurant and prohibitive to opening a new business. The
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grant can be limited to tenant improvements, HVACs, roofs, and
parking. It's an expansion of the former FEP. Staff proposed
Citywide in the proposed zoning areas described earlier would be a
one to one (1:1) match not to exceed $500,000. For a project of $1
million, the owner would contribute $500,000 and the City would
contribute $500,000. It's a higher amount than the former FEP, but
staff wanted to spur economic development in a meaningful and
effective way. If the program is over subscribed, it's a good problem
to have. In conversation with Community Development, staff felt
strongly to leverage the $8 million infrastructure investment made
along San Pablo Avenue by providing a specialized program specific
to the San Pablo Commercial Corridor. Those dollars would be
matched two to one (2:1), so for every dollar contributed, the City
would match it up to $2, but not exceed $200,000 for a total project
cost of $300,000. The idea here is that San Pablo has smaller
businesses and the hope is to kick start development and also
prepare the platform for future development. He displayed a map of
the San Pablo area that would be eligible for the 2:1 match.
Responding to question, he said the Fresh Agave would be eligible for
the 1:1 match program up to $500,000.
High Waae "Move In" Incentive category was generated out of the
Economic Development Strategic Plan. One of the key factors
identified indicated a desire to incent high -wage employers. This
incentive is directed at new tech and high -wage employers that would
move their headquarter (HQ) operation from another jurisdiction
outside the City into Palm Desert. One exception is that businesses
coming out of the iHub would be eligible as well. As an attachment
to the staff report is NAICS (North American Industry Classification
System) Code List as a platform for which staff would filter
headquarter locations, stating it's a technology list developed by
Coachella Valley Economic Development (CVEP). The incentive here
is $25,000 to the business for each employee they employ at $150%
of a median income wage (median wage $48,800 x 150% = $73,200).
They are to keep their headquartering location and maintain their
employment base for five years, and this is paid in arrears. If the HQ
was to move or close, the pro rata share would be calculated and
reduced across time.
Site Specific Revenue Sharing targets the hospitality, tourism,
entertainment and retail developments. The City has practiced this
a couple of times in the past, most likely with hotels. It's a
performance -based rebate program and it doesn't impact the
$2 million requested for implementation of the program. Again, this is
performance based, and like Transient Occupancy Tax (TOT), they
would get paid if they perform. This option is on a case -by -case basis
with proforma, consultation by an outside party, typically KMA (Keyser
Marston Associates) and would appear before the City Council.
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New Development Proiect Assistance targets commercial, mixed use,
new build, and new construction. This can be a broad category,
because staff has a variety of tools at its disposal and economic
development finance. Again, this will be on a case -by -case basis and
it barely impacts the dollars staff will be requesting for the program.
Ongoing Incentives option is to help the business community remain
in the City. In his 20 years of experience in economic development,
Palm Desert is one of the most business friendly with its very efficient
plan review and development services, including a business
concierge service in the form of a Business Advocate in the Economic
Development Department. Another incentive made by the City is the
Palm Desert iHub, which has over $1 million in investment on
technology. Staff will connect businesses to other utility incentives,
including County, Regional and State incentives. He said staff hopes
to have a thorough website to help navigate people through the
process, but it will also do it through the Business Advocate. He said
these are ongoing incentives where staff is already helping
businesses obtain.
He said the above described categories are being proposed by staff as the
entirety of the "Invest Palm Desert Incentive Program." His final slide
illustrated the Incentive Program process, which would need to be finalized.
If the program is approved, it will authorize the City Manager to administer
and implement the program. This program fulfills the goals of the Economic
Development Strategic Plan. The key to this, which he heard in multiple
sessions, both the study session and the subcommittee, is that the City will
have to market the program in order to be successful. He had many
conversations with Tourism and Marketing Manager Thomas Soule about
this issue, therefore, Council will see a request for funds for marketing this
program in a future meeting. If the City Council approves the program this
evening, he expects it will be up and running by the first quarter of this
calendar year. In summary, the request by staff is to appropriate $2 million
to the "Invest Palm Desert" Incentive Program from the Economic
Development Reserve Funds, along with other administrative items.
Mayor Nestande asked about the current balance in the Fund.
Ms. Moore responded there is currently $4 million in the Economic
Development Reserve Fund.
Councilman Jonathan thanked Mr. Olson and Mr. Alvarez and the Economic
team for a great job and looking forward to its implementation. One area of
concern is where a business must create or retain one job for every
$100,000 of City investment. He asked if this particular guideline applied to
all six categories.
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Mr. Olson explained it would be a general program guideline for all six
categories. If a business is below $100,000, there is no job requirement, but
if the public contribution is beyond $100,000, it would require that one FTE
position.
Councilman Jonathan questioned how that would work in the case of a
lessor of a property owner that would not directly create a new job. Of
course, indirectly, reduce vacancy and add to the local economy and
employment.
Mr. Olson stated that presumably, a property owner that would apply for
$200,000 would be able to account for at least two jobs in that building. Of
course this is a proposed guideline, but Council can strike it.
Mayor Nestande commented that a restaurant owner might not generate a
high -income job but might need $100,000 to do a facade enhancement.
Therefore, she questioned if this might be an issue.
Councilman Jonathan concurred, stating he viewed this as potentially
problematic, because you could have a lessor wanting to invest a significant
amount, in a place the City wants to improve, but a property owner applying
under Capital Improvement may not have access to his lessee's employment
records. Also, there could be an existing job, but not necessarily create a
new position. He believed this required further analysis by staff before
committing to an overarching requirement.
Mr. Olson clarified the requirement is to create or retain a position. Also, this
specific guideline serves as a catch all for public consideration, in that there
is an economic development function. However, the City Council could find
it too onerous for certain applications and can remove it.
Councilman Jonathan referencing the San Pablo Corridor where properties
defined in that area would qualify for a 2:1 investment, asked if staff would
consider applying the 2:1 ratio to the Downtown City Core, specifically El
Paseo.
Mr. Alvarez explained he worked closely with Community Development and
determined that San Pablo specifically is really the City's transformative
area. One can see the investment that's happening there now, and staff
followed up by creating an incentive to kick start development. Of course
staff is open to considering the same application to other areas of downtown.
However, the intent here is to create a focus point or ground zero to initiate
this program.
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Councilman Jonathan called attention to the High Wage Incentive category
where it requires a five-year retainment of the headquarters and employees,
and here again he is sensing problems, because very few companies stick
around for five years. He asked if the business had to retain the same
employees or the positions.
Mr. Olson explained this program was imagined with the dollar amount to be
calculated and prorated across the five years. If the headquarters was to
leave earlier, the pro rata share would go down. In other words, this is
accounted for in arrears, so if an employer provides evidence of four jobs
that pay 150% of a median wage in year one, and in year two they can do
the same, he didn't think the public would have an interest necessarily that
they are the same person, as long as they are providing the same job. Staff
selected five years because it wanted an effective tool, but obviously they
can be honed and sharpened over time. In this case, staff felt for the dollar
volume they are describing, it would be important to have the longevity with
a headquartered location. It's no small order to move a headquarters, so
staff would hope the move would be considered as a natural course of
business and remain longer than five years. If they don't, they wouldn't
receive the eligible benefit.
Councilman Jonathan said he heard staff say it didn't have to be the same
employee, but that the position would have to continue. He also heard that
even though this is being proposed as a two-year program, the duration of
this element may go five years, because it will be paid in arrears annually.
Mr. Olson concurred. Further responding he clarified that if there are four
businesses that qualify for $500,000 under the High Wage Incentive
category, the City would be at the maximum fund for incentives as proposed
to be appropriated. He noted there was a maximum of $500,000 per
business.
Councilman Jonathan agreed with staff's comment that the marketing of the
program is critical, particularly to the High Wage Incentive Program,
because the City is trying to draw new high tech businesses. Having the
High Wage Incentive category without marketing the program would negate
the efforts. He asked if there was funding for the marketing of the program.
Mr. Olson answered no, but there may be funds in this fiscal year to start
marketing. In the upcoming budget study sessions, a request in the form of
a White Paper for marketing will be made in addition to the $2 million for
implementation of the program. He agreed with Councilman Jonathan it's
important to have a marketing component.
Councilmember Harnik thanked staff for the great work done. She pointed
out there is currently a project on the overlay zone staff just identified, on the
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corner of Fred Waring Drive and San Pablo Avenue on the southeast corner,
and she wondered if staff thought about how these incentive programs might
impact those contracts.
Mr. Olson said yes, stating staff included those parcels specifically within this
program element in the event the developer would seek funds under a new
development assistance program. Of course they would have to come up
with a structure for it and show a financing gap. Currently, that is not the
current proposal. Staff wanted to include it, because there will be a retail
component for mix -use projects. A retailer in that environment with the need
for tenant improvements would be eligible to apply.
Councilmember Harnik commented she appreciated all the options for
existing and local businesses, because she believed the City should help
them. She asked if there was a differentiating aspect between a large
corporation, where the corporation is not here versus local and
entrepreneurship.
Mr. Olson responded that the way the process is contemplated, is that
applications will come to the Economic Development Department and staff
will review for qualification. It's likely staff will bring most, if not all,
applications before the City Council. In cases where there is an absent
corporation and they have employees in Palm Desert, staff would have to
consider the application, and Council will have the opportunity to review it.
If that headquarters operation wanted to move to Palm Desert, staff would
point them toward the High Wage Move In Incentive program Each request
for funds will appear before the City Council, so at the end of the day, it will
decide how those dollars will be distributed.
Councilmember Harnik said she mentions entrepreneur and local
businesses, because she's wondering if they get extra bonus points for
contributing to the El Paseo brand, adding these businesses have hired local
marketing firms, designers, certified public accounts, and attorneys. She
asked staff to consider this aspect and perhaps include some guidelines to
address this issue.
Mr. Olson thought it was a wonderful suggestion, however, no local business
would be ineligible for any of the programs mentioned. If the City Council
wishes to prioritize local businesses with a certain definition, staff can add it
as a guideline. He reminded the City Council that these programs are tools,
and although more can be added, these are the first six categories staff
came up with as a starter kit. As the City develops new programs and new
tools, more can be added. Responding to question about the current
applicant/developer on San Pablo, he confirmed they are potentially eligible
to apply if the City Council approves the proposed program. However, that
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developer hasn't made any indication that they want City contribution, adding
the incentive is tied to the land and not the applicant in that case.
Councilmember Weber asked for clarification on who would be reviewing the
application, and if this would be on a first -come, first -served basis. Also,
what is the time frame for submitting the applications and the cutoff date.
Mr. Olson replied that once the program is approved by the City Council and
staff has ironed out functional administrative issues and printed out the
guidelines, it contemplates starting by the first quarter of this calendar year,
and it sunsets' June 1, 2022. It's a two-year program, so staff hopes it
motivates folks to act quickly to take advantage of the current economic
conditions. The applicant has a two-year window in which to perform once
qualified for the program. He said applications will be submitted to the
Economic Development Department, and he and Director Martin Alvarez will
review the applications and provide reports to the City Council as they come
in. If they come in all at once, the whole bundle will be brought before the
City Council and staff will assist Council in prioritizing the applications, or in
the case of the City Manager for applications less than $25,000. Staff
wanted to avoid a first -come, first -served process, because there are
sensitivities around it.
Councilmember Weber noted that if four applications are submitted all at
once, each for $500,000, it would eat up the $2 million, so it could result in
a first -come, first served.
Mr. Olson agreed.
Mayor Pro Tem Kelly said she understood requests under $25,000 are
decided by the City Manager, but applications more than $25,000 will be
reviewed by staff if it's the kind of project its trying to incent and bring before
the City Council. If early in the process there is an application for 25% of
what the City has to spend, Council would then have to make a decision as
to whether it's efficiently in love with the proposal to spend that much of the
piggy bank. She added the City should anticipate having those kinds of
issues if the program is successful and garners some interest.
Mayor Nestande asked if someone, for example, wanted to open up a little
restaurant, a grease trap costs $50,000 and a facade enhancement is
another $50,000 resulting in an application of $100,000. This restaurant
owner may hire a few waiters but it may not meet the $48,800 median
income required. She wondered how the program would work for those
trying to incent on San Pablo.
Mr. Olson said Council should keep in mind that the requirement is one
full-time employee created or retained. If the owner of the restaurant makes
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the median wage, they would be able to qualify. If it's a partnership and
each of the partner's make $48,800, they would qualify for the two retained
or created jobs. Responding to question about incentivizing on San Pablo,
he said staff felt the 2:1 investment the City would make was generous,
because most of these programs are 50% matches. In some options they
are 1:1-match, which is a valuable contribution to make. On San Pablo,
applicants can get $2 of public money for every $1 spent, which is a strong
way to incent local businesses. In other words, if an applicant spends
$25,000, the net from the City can be $50,000.
Councilman Jonathan stated that in the scenario mentioned by Mayor
Nestande, the applicant would qualify under the Capital Improvements Grant
and nothing to do with high -paying jobs, because the High -Wage Move In
Incentive Program stands on it's own and is separate and targeted toward
the tech industry.
Mr. Olson concurred, however, the scenario Mayor Nestande mentioned
reached $100,000 with the grease trap and facade enhancement, so they
would have to account for one created or retained position. If the application
is under $100,000, there is no job requirement. He explained that part of the
design of this program is aligning with the Strategic Development Plan, and
it's clear that high -wage jobs are the focus. The principal behind it, is that if
you someone a high wage, they will support local restaurants and retail
establishments. It will also help local businesses that may not be able to
employ people at high wages, by providing that threshold of under $100,000.
If a local business wants a $75,000 grant under this program, they wouldn't
have a job requirement.
Councilmember Weber commented she liked that the City was finally doing
this.
Mayor Pro Tem Kelly agreed, stating this was not giving away public funds.
The criterion touched upon with all these categories, is that the applicant has
to demonstrate a feasibility gap, which means the City is working with
businesses that would not come to Palm Desert or would not make the
enhancement discussed without this kind of incentive. It's a carefully thought
out effort to incent economic development for the benefit of the whole
community. She is exceedingly well pleased, but she would not extend the
2:1 ratio incentive beyond San Pablo, stating the 1:1 ratio is quite generous.
She understands staff is proposing a special and direct investment to San
Pablo where the City really wants to be transformative and the 2:1 ratio is
appropriate. She also understands the job creation requirement is separate
and apart from the High Wage incentive above $100,000, but her own
perception is that it might complicate the process and it's administratively
unnecessary. Quite frankly, it's hard to image any project meeting the
criteria that wouldn't inheritedly create at least one job at the median income.
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Councilman Jonathan said the program fits into the City's Strategic Plan and
this was absolutely an investment that will come back to the City and it's
residents; it's not a giveaway. However, he's concerned with the High Wage
Move In expanding out five years, and since this is a two-year program, he
wondered how his colleagues felt about limiting to two years.
Administratively, it would be difficult to check on these businesses and see
if positions and the headquarters still exist after five years, including rolling
out funds after two years. He asked Council to think about tweaking this
requirement. Additionally, responding to the comment about not generalizing
the 2:1 ratio match to other parts of the City, he felt that if you take a step
back, the San Pablo Corridor and El Paseo together is a very small part of
the whole City. He felt the San Pablo Corridor is part of the Downtown City
Core, and part of the strategy is to develop both. It's great to highly
incentivize San Pablo, and he's not sure he wants to do the same for all
applications on El Paseo, but he's equally not sure that it's wise to preclude
Council from that ability. He recalled for Council this started with a
consultant who informed the City that the vacancy rate on El Paseo was
significant and trending in the wrong direction. Therefore, if the City can
turbo charge its efforts to both San Pablo and El Paseo, it would be the
appropriate target in terms of the City's vision of the Downtown City Core.
Councilmember Harnik asked if there was anywhere in the City where you
would not qualify to get a facade improvement.
Mr. Olson replied that as long as the applicant was within the zoning areas
as described in the previous slide, people should be able to at least apply for
the program. Further responding, he said the program includes the
University area.
Mr. Ceja stated there are a number of commercial properties that would fall
under Planned Commercial (PC) and Service Industrial (SI) properties
around the University, stating much of that land is vacant and available for
incentives.
Councilmember Harnik noted the City has previously offered facade
enhancement programs to businesses that provided a return on investment,
adding she's seen those dollars come back to the City. She said the
proposed incentive plan is great and she would like to see local and new
businesses apply.
Mayor Pro Tem Kelly believed that what happened in the evolution of this
proposal is that it started as a one-to-one match, which is quite generous.
Then Community Development had the bright idea to incent developers to
come to San Pablo and spur a complete transformation by making a more
generous 2:1 ratio. Of course the City wants to help the El Paseo
merchants, but a total transformation is not needed there. Therefore, the two
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situations are completely distinguishable and it's her view the special added
ratio should simply apply to San Pablo to achieve its purpose. She is happy
to shorten the five years to two years for the High Wage Move In if other
Councilmember felt it was sensible. The issue of local versus conglomerate,
is one issue staff can work within the context of individual proposals,
because there might be some local sighting of a large corporation that would
support local businesses. Further, she was prepared to move for adoption
of the proposal with deletion of subpart 4 of the Exhibit D, which refers to the
creation of one full-time job.
Mayor Nestande agreed with striking the subpart 4 requirement, and going
with a five-year period to a two-year time frame for the High Wage Move In
category, and to put the City's focus on San Pablo with the two -to -one ratio.
She added the City was on the line, because San Pablo has already been
torn up and it's a major construction project and a big expense that now
citizens are expecting spectacular results. Therefore, the City needs to
make sure it draws development on that street. She believed the $2 million
proposed by staff will go quickly, but Council can revisit looking at extending
it to El Paseo.
Councilman Jonathan said he was persuaded by Mayor Pro Tem Kelly and
is now in agreement.
Mr. Olson pointed out there is a typo in the proposed Resolution where the
commencement date of March 1, 2022, is sited and it should be June 1,
2022, wherever it appears, and asked the City Council to note the correction
in the motion.
Mayor Pro Tem Kelly moved to: 1) Waive further reading and adopt Resolution
No. 2020 - 14, authorizing establishment and implementation of the "Invest Palm Desert"
Economic Development Incentive Program; 2) By Minute Motion, authorize: a) City
Manager to implement "Invest Palm Desert" Program, including execution of agreements
required to meet all program administrative requirements; b) Finance Director to
appropriate $2 million from the Unobligated Economic Development Reserve Fund to the
City's Economic Development Fund for the Program, amending the Resolution as follows:
a) Correcting the date of March 1, 2022 to June 1, 2022, wherever it appears; b) deleting
subpart A-4(a) from Exhibit A of page 1; c) modifying subpart B-3(a), the language from
five years to two years in places where it appears. Motion was seconded by Jonathan and
carried by a 5-0 vote (AYES: Harnik, Jonathan, Kelly, Weber, and Nestande; NOES:
None).
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B. REQUEST FOR APPROVAL OF THE 2020 CITY COUNCIL LIAISON
ASSIGNMENTS ROSTER.
Councilman Jonathan moved to, by Minute Motion, approve the 2020 City Council
Liaison Assignments Roster as proposed, or as may be modified during discussion at the
meeting. Motion was seconded by Weber 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 A SPECIFIC PLAN AND TENTATIVE
PARCEL MAP 37234 TO SUBDIVIDE 32+ ACRES INTO FOUR (4)
PARCELS BOUNDED BY EAST OF MONTEREY AVENUE, SOUTH OF
DICK KELLY DRIVE, NORTH OF "A" STREET, AND WEST OF
GATEWAY DRIVE; AND ADOPTION OF A MITIGATED NEGATIVE
DECLARATION OF ENVIRONMENTAL IMPACT IN ACCORDANCE WITH
THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA), Case
Nos. SP 16-342 and TPM 37234 (MC Properties, LLC, Applicant).
Principal Planner Eric Ceja stated staff sent out a public notice for this Public
Hearing, but once the notice was sent, the Applicant requested a
continuance of this item to the meeting of February 13, 2020. He asked the
City Council to open the public hearing and continue it to that date.
Mayor Nestande declared the public hearing open and invited anyone wishing to
address the City Council on his matter to come forward at this time. With no
testimony being officer, she left the public hearing open.
Councilmember Harnik moved to, by Minute Motion, continue this matter to the
meeting of February 13, 2020, motion was seconded by Kelly and carried by a 5-0 vote
(AYES: Harnik, Jonathan, Kelly, Weber, and Nestande; NOES: None)
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REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 23, 2020
XVIII. MAYOR AND COUNCILMEMBER REPORTS & REMARKS TO THE COMMUNITY
A. Councilmember Jan C. Harnik Committee Reports and General Comments.
1. 2020 Goal Setting Study Session - reported the City Council and staff
met to set goals for the coming year, stating she's excited about what
the City will be working on.
2. Riverside County Transportation Commission (RCTC) - their annual
workshop is coming up next week where they will be discussing
Countywide projects, including those specific to the Coachella Valley
and Palm Desert.
3. The Desert Sun - "Your Voice" Article - she wrote an article
encouraging feedback from the residents on the El Paseo
Improvement Project, and the City is not short on ideas, opinions, and
comments on this matter.
4. Courtesy Cart Signage - commented that the new signage is great
and an asset to the courtesy cart program; they make a difference.
B. Councilman Sabbv Jonathan Committee Reports and General Comments.
None
C. Mayor Pro Tem Kathleen Kelly Committee Reports and General Comments.
None
D. Councilmember Susan Marie Weber Meeting Summaries Report for the
Period of December 28, 2019 - January 10, 2020.
With City Council concurrence, the Meeting Summaries Report was received and
filed.
E Mayor Gina Nestande Committee Reports and General Comments.
1. Committee/Commission Study Session - reported the City Council
wants to make sure they are doing everything possible to promote
community outreach and to let Palm Desert citizens know they are
welcomed to apply to serve on one of the City's committees and
commissions.
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F City Council Requests for Action.
None
G. City Council Consideration of Travel Requests/Reports.
None
XIX. STAFF REPORTS AND REMARKS
A. City Manager
1. City Manager's Meeting Summaries Report for the Period of
December 28, 2019 - January 10, 2020.
With City Council concurrence, the Meeting Summaries Report was received and
filed.
2. Committees/Commission Ad Hoc Committee - requested two
volunteers from the City Council to continue the dialogue from today's
Study Session.
Councilmembers Harnik and Weber volunteered.
3. Second Public Open House on District Voting - reported that the first
public forum on District Voting was held on January 15. The second
one is scheduled for Wednesday, February 12, 2020,
6:00 - 7:30 p.m., at the Palm Desert Community Center; food and
child care will be available. She invited participation and input from
Palm Desert residents, stating this was an educational opportunity
and a time for dialogue back and forth between staff and the
community as opposed to a formal public hearing. At upcoming
public hearings, the public will be invited to speak in front of the City
Council in an agendized formal meeting, whereas in the public forum,
it's informal and informational. Things learned from the first forum
are that the City can work on the logistics and improve on
communications. Staff plans to take advantage of the information
received and have a more meaningful conversation with the
community.
B. City Attorney
None
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REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 23, 2020
C. City Clerk
None
D. Public Safety
1. Fire Department
None
2. Police Department
None
XX. ADJOURNMENT
With City Council concurrence, Mayor Nestande d purned the meeting at 5:45 p.m.
ATTEST:
RACHELLE D. KLASSEN, ITY CLERK
CITY OF PALM DESERT, CALIFORNIA
AIVl
GINA NtSTANDE, MAYOR
22