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HomeMy WebLinkAboutPrelim - CC - 05-14-2020POSTED AGENDA REGULAR PALM DESERT CITY COUNCIL MEETING PALM DESERT CITY COUNCIL MAY 28, 2020 A. MINUTES of the Regular City Council Meeting of May 14, 2020. Rec: Approve as presented. THE MINUTES ARE STILL BEING WORKED ON AND ONCE. COMPLETED THEY WILL BE DISTRIBUTED. 3 1 SkO . PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING THURSDAY, MAY 14, 2020 CITY OF PALM DESERT, CALIFORNIA (VIRTUAL MEETING) I. CALL TO ORDER - 3:00 P.M. Mayor Nestande convened the meeting at 3:00 p.m. 11. ROLL CALL All Councilmembers and those listed as present participated teleconference. Present: Councilmember Jan C. Harnik Councilman Sabby Jonathan Mayor Pro Tern 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 Grace L. Rocha, Acting City Clerk Ryan Stendell, Director of Community Development Martin Alvarez, Director of Economic Development Janet M. Moore, Director of Finance/City Treasurer Stephen Y. Aryan, Risk Manager Mike Beverlin, Battalion Chief, Palm Desert Fire/Riverside Co. Fire Dept./Cal Fire Bryan White, Battalion Chief, Palm Desert Fire/Riverside Co. Fire Dept./Cal Fire Lt. Matt Martello, Asst. Chief, Palm Desert Police/Riverside Co. Sheriff's Dept. M. Gloria Sanchez, Acting Deputy City Clerk III. ORAL COMMUNICATIONS - A (CLOSED SESSION ITEMS) None IV. ADJOURN TO CLOSED SESSION Request for Closed Session: PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING MAY 14, 2020 A. Conference with Real Property Negotiator pursuant to Government Code Section 54956.8: 1) Property: Palm Springs Art Museum, Inc. (C29860) Agency Negotiator: Lauri Aylaian/Ryan Stendell/City of Palm Desert Other Party Negotiator: Property Owner: City of Palm Desert Under Negotiation: x Price x Terms of Payment 2) Property: Desert Willow Golf Resort - Overflow Public Parking Lot (Portion of APN 620-400-008 and APN 620-420-024) Agency Negotiator: Lauri Aylaian/Martin Alvarez/City of Palm Desert Other Party Negotiator: Desert Wave Ventures, LLC Property Owner: City of Palm Desert Under Negotiation: x Price x Terms of Payment B. 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 and Successor Agency at 3:01 p.m. She reconvened the meeting at 4:30 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 - Councilman Sabby Jonathan VII. INVOCATION/INSPIRATION - Councilmember Jan C. Harnik Mayor Nestande noted Mayor Pro Tern Kelly requested to add an emergency item to the agenda to discuss the wearing of face masks and social distancing, stating it requires a four -fifths vote of the City Council to add to the agenda. On a motion by Harnik, second by Jonathan, and 5-0 vote of the City Council (AYES: Harnik, Jonathan, Kelly, Weber, and Nestande; NOES: None), consideration to adopt the City of La Quinta's approach to the issue of facial coverings and social distancing when inside stores and businesses was added to the agenda and placed under Section XIII - New Business - Item K. 'r: PRELIMINARY MINUTES AFT REGULAR PALM DESERT CITY COUNCIL MEETING MAY 14, 2020 VI11. AWARDS AND PRESENTATIONS None IX. ORAL COMMUNICATIONS - B MR. BRAD ANDERSON, Rancho Mirage, CA - communicated via e-mail and his comments were read into the record. In summary, he noted that Mr. Doug Walker as the representative of the City of Palm Desert to the Coachella Valley Mosquito and Vector Control District Board of Trustees has served in that capacity since March 2007. He said Mr. Walker is the longest seated trustee currently assigned to that Board, and requested Council consider reviewing the appointment and/or allow other well qualified individuals to apply for future openings on that Board. He also urged Council to make arrangements for members of the public to actively participate remotely during live public meetings. MS. BECKI ROBINSON, Cathedral City, CA - communicated via e-mail and her comments were read into the record. In summary, she asked that Council pass an emergency ordinance requiring face coverings in all stores and follow the lead of the cities of Palm Springs, Cathedral City, Coachella, and Desert Hot Springs. She said most of the people she knew will not enter into any establishment that did not require masks. Additionally, she implored Council to not sign Supervisor Manny Perez letter asking the governor to allow the Board of Supervisors to determine when to further open the County rather than following the orders of the State. She felt that the Supervisors showed they didn't care about the health and safety of the residents by lifting the mandatory orders last Friday. MS. JUDITH GREEN, Palm Desert, CA - communicated via voicemail and her comments were read into the record. She was concerned about any lifting of the wearing of the mask in public, stating she was a retired nurse who worked in the field for more than 30 years. She said the least people can do is to continue wearing the masks, which she strongly encouraged everyone to do. X. CONSENT CALENDAR PALM DESERT CITY COUNCIL A. MINUTES of the Regular City Council Meeting of April 16, 2020, and April 30, 2020. Rec: Approve as presented. 3 PRELIMINARY MINUTES RAFT REGULAR PALM DESERT CITY COUNCIL MEETING MAY 14, 2020 B. CLAIMS AND DEMANDS AGAINST THE CITY TREASURY- Warrant Dated 04/17/2020. Rec: Approve as presented. C. CLAIMS AND DEMANDS AGAINST THE CITY/HOUSING TREASURIES - Warrant Dated 04/17/2020 (Joint Consideration with the Palm Desert Housing Authority - see Item J below). Rec: Approve as presented. D. REQUEST FOR ACCEPTANCE OF WORK for Contract No. C38550A - Washington Street Intersection Re -Wiring and Controller Assembly Upgrades (Project No. 551-17) (International Line Builders, Corona, CA). Rec: By Minute Motion, accept the work as complete and authorize the City Clerk to file a Notice of Completion for the subject project. E. REQUEST FOR APPROVAL of Amendment No. 3 to Contract No. C36130 with Same Day Express in the Amount of $49,992 for Maintenance Services of the City of Palm Desert's Permanent Art Collection and the El Paseo Sculpture Exhibition from July 1, 2020 to June 30, 2021. Rec: By Minute Motion: 1) Approve Amendment No. 3 to Contract No. C36130 with Same Day Express, Palm Desert, California, in the amount of $49,992 from July 1, 2020 to June 30, 2021, for maintenance services of the City of Palm Desert's permanent public art collection and the El Paseo Sculpture Exhibition; 2) authorize Mayor to execute the amendment; 3) approve up to $5,000 on an as needed basis for additional maintenance services from Same Day Express. F. REQUEST FOR EXTENSION of Contract No. C36620 for Professional Services to the Family YMCA of the Desert for One Year of Management and Staffing at the Palm Desert Aquatic Center in the Amount of $165,000 plus Reimbursement of Operational Costs Included in Agreement. Rec: By Minute Motion: 1) Approve Extension of Contract No. C36620 for Professional Services to the Family YMCA of Palm Desert, Palm Desert, California, for management and staffing of the Palm Desert Aquatic Center in the amount of $165,000, effective July 1, 2020 to June 30, 2021, plus reimbursement of operational costs included in agreement; 2) authorize the Mayor to execute said contract extension. CI PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING MAY 14, 2020 SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY G. MINUTES of the April 30, 2020, Regular Meeting of the Board of Directors of the Successor Agency to the Palm Desert Redevelopment Agency. Rec: Approve as presented. H. CLAIMS AND DEMANDS AGAINST SUCCESSOR AGENCY TREASURY - Warrant Dated 04/17/2020. Rec: Approve as presented. PALM DESERT HOUSING AUTHORITY I. MINUTES of the Housing Authority Meeting of April 30, 2020. Rec: Approve as presented. J. CLAIMS AND DEMANDS AGAINST THE CITY/HOUSING TREASURIES - Warrant Dated 04/17/2020 (Joint Consideration with the Palm Desert City Council - see Item C above). Rec: Approve as presented. Councilmember Weber thanked staff for the transcription of the minutes, which are extremely difficult to do, especially during this time while Council holds their meetings remotely and recordings are not always of the highest quality. She added minutes are very valuable because they are of great historical nature. Upon motion by Harnik, second by Weber, 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 XI1. ORDINANCES A. For Introduction: None 5 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING B. For Adoption: MAY 14, 2020 1. ORDINANCE NO. 1356 - AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, ADDING SECTION 2.38.040 TO CHAPTER 2.38, TO THE PALM DESERT MUNICIPAL CODE RELATING TO ELECTION OF CITY COUNCIL MEMBERS BY DISTRICTS AND RANKED CHOICE VOTING. Ms. Aylaian noted this was the second reading of the proposed Ordinance that will establish two districts for voting to elect City Councilmembers beginning in November 2020. Councilman Jonathan moved to waive further reading and adopt Resolution No. 1356. Motion was seconded by Kelly and carried by a 5-0 vote (AYES: Harnik, Jonathan, Kelly, Weber, and Nestande; NOES: None). XI11. NEW BUSINESS A. REQUEST FOR APPROVAL TO INITIATE PROCEEDINGS TO LEVY THE ANNUAL ASSESSMENT FOR CITY OF PALM DESERT BENEFIT ASSESSMENT DISTRICT NO. 1 FOR FISCAL YEAR 202012021. Deputy City Treasurer Thomas Metz stated the proposed resolutions are to initiate and declare proceedings to levy the annual assessment for City of Palm Desert Benefit Assessment District No. 1 for Fiscal Year 2020/2021. Councilmember Harnik moved to waive further reading and adopt: 1) Resolution No. 2020 - 42, initiating proceedings for the levy and collection of assessment for City of Palm Desert Benefit Assessment District No. 1 for Fiscal Year 2020/2021; 2) Resolution No. 2020 - 43, declaring its intention to levy the annual assessment for City of Palm Desert Benefit Assessment District No. 1 for Fiscal Year 2020/2021, pursuant to the Benefit Assessment Act of 1982 and appointing a time and place for the public hearing on these matters. Motion was seconded by Kelly and carried by a 5-0 vote (AYES: Harnik, Jonathan, Kelly, Weber, and Nestande; NOES: None). 1.1 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING MAY 14, 2020 B. REQUEST FOR APPROVAL TO INITIATE PROCEEDINGS TO LEVY AND COLLECT ANNUAL ASSESSMENTS WITHIN, AND TO GRANT PRELIMINARY APPROVAL OF THE ENGINEER'S ANNUAL LEVY REPORT FOR CONSOLIDATED PALM DESERT LANDSCAPING & LIGHTING MAINTENANCE DISTRICT NO. 1 FOR FISCAL YEAR 2020/2021. Deputy City Treasurer Thomas Metz requested City Council approve the proposed resolutions to initiate proceedings to levy and collect annual assessments for the Consolidated Palm Desert Landscaping & Lighting Maintenance District No. 1 for Fiscal Year 2020-2021. Councilmember Harnik moved to waive further reading and adopt: 1) Resolution No. 2020 - 44, initiating proceedings for the levy and collection of annual assessments for Consolidated Palm Desert Landscaping & Lighting Maintenance District No. 1 for Fiscal Year 2020-2021; 2) Resolution No. 2020 - 45, declaring the intent to levy and collect annual assessments within, and granting preliminary approval of the Engineer's Annual Levy Report for, Consolidated Palm Desert Landscaping & Lighting Maintenance District No. 1 for Fiscal Year 2020-2021. Motion was seconded by Kelly and carried by a 5-0 vote (AYES: Harnik, Jonathan, Kelly, Weber, and Nestande; NOES: None). C. REQUEST FOR AWARD OF CONTRACT FOR LANDSCAPE MAINTENANCE AREA NO. 16 TO VINTAGE ASSOCIATES, INC., IN AN ANNUAL AMOUNT OF $342,000, AND INCLUDE REPAIR WORK AND SERVICES FOR AN ANNUAL AMOUNT OF $50,000 (CONTRACT NO. C39820, PROJECT NO. 916-21). Landscape Supervisor Randy Chavez noted LMA No. 16, which is a reorganization of current landscape and maintenance areas. Responding to question about Homme Adams Park, he said the City maintains the trash cans, bus shelters, prunning, and keeps the trailhead free of debris. Councilman Jonathan thanked and commended Mr. Chavez and staff for recognizing that often the City receives low bids with an intention by the bidder to raise the price with change orders, etc., but it's been addressed in this new procedure. He applauds staff for adding LMA No. 18 in order to be cost effective and to have a more comprehensive proposal. Councilman Jonathan moved to, by Minute Motion: 1) Award the subject contract for Landscape Maintenance Area No. 16 (LMA No. 16) to Vintage Associates, Inc., Bermuda Dunes, California, in an annual amount of $342,000; 2)authorize extra work and services for an annual amount of $50,000; 3) authorize the City Manager to execute said contract - funds are available in Account Nos. 1104611-4332001- R/M Parks, 1104611- 4339100 - Community Gardens, and 2764374-4332000 - Haystack. Motion was seconded by Kelly and carried by a 5-0 vote (AYES: Harnik, Jonathan, Kelly, Weber, and Nestande; NOES: None). i7 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING MAY 14, 2020 D. REQUEST FOR AWARD OF CONTRACT FOR LANDSCAPE MAINTENANCE AREA NO. 1 TO URBAN HABITAT FOR AN ANNUAL AMOUNT OF $211,586.40, AND AUTHORIZE REPAIR WORK AND SERVICES FOR AN ANNUAL AMOUNT OF $45,000 (CONTRACT NO. C39850. PROJECT NO. 901-21). Landscape Supervisor Randy Chavez noted that LMA No. 1 is a reorganization of current landscape areas. Staff consolidated landscape areas number 1, 2, and 4, to create this new LMA No. 1. Mayor Pro Tern Kelly moved to, by Minute Motion: 1) Award the subject contract for Landscape Maintenance Area No. 1 (LMA No. 1) to Urban Habitat, Palm Desert, California, for a period of thirty-six (36) months in the annual amount of $211,586.40; 2) authorize extra work and services for an annual amount of $45,000; 3) authorize the City Manager to execute said contract - funds are available in Account No. 1104614-4337001 - R/M Medians. Motion was seconded by Jonathan and carried by a 5-0 vote (AYES: Harnik, Jonathan, Kelly, Weber, and Nestande; NOES: None). E. REQUEST FOR AWARD OF CONTRACT FOR THE MONTEREY AVENUE PAVEMENT REHABILITATION PROJECTTO GRANITE CONSTRUCTION COMPANY IN THE AMOUNT OF $3,147,153 (CONTRACT NO. C39920, PROJECT NO. 752-19). Project Manager Ryan Gayler stated this was for award of contract for the Pavement Rehabilitation Project on Monterey Avenue. This is a joint project with the City of Rancho Mirage with the intent to restore the segment between the Whitewater Channel Bridge and Country Club Drive. Councilmember Weber said she thought this had already been done a couple of years ago. Mr. Gayler replied the street was repaved eight or ten years ago. Councilman Jonathan stated Monterey Avenue was a patchwork when it came to designated bike lanes and this particular area didn't have any, which was dangerous and it forces the cyclist to ride on the sidewalk. Since the street is being repaved and there is redrawing of lines, he asked if it was possible to incorporate designated bike lanes throughout Monterey. Mr. Gayler said it would take longer than there was time for at this point. He explained there so much that goes into designated bike lanes, and there are many areas on Monterey where the street is only four lanes wide with not a lot of room to put those bike lanes. Additionally, there is an area where there are only two lanes. He added that something like this would require more study. 51 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING MAY 14, 2020 Councilman Jonathan commented the City of Rancho Mirage might add bike lanes in their area where there is a lot of room, and they may volunteer to do it, but at their cost of course. Councilmember Harnik moved to, by Minute Motion: 1) Award the subject contract, including bid alternate No. 1, for the Monterey Avenue Pavement Rehabilitation Project in the amount of $3,147,153 to Granite Construction Company, Indio, California; 2) authorize Director of Finance to set aside a 10% contingency in the amount of $314,715; 3) appropriate $1,200,000 of SB1 Funds from Unobligated Fund 211 to the project account; 4) authorize the City Manager or designee to review and approve written requests for the use of contingency for unanticipated conditions per Palm Desert Municipal Code Section 3.30.170(A); 5) authorize Mayor to execute the agreement - funds are available in Account Nos. 2114311-4332000 - Gas Tax Street Maintenance as the primary funding source, and 2134311-4332000-Measure "A" Street Maintenance, and S131 Street Maintenance Fund 211 as secondary funding sources. Motion was seconded by Kelly and carried by a 5-0 vote (AYES: Harnik, Jonathan, Kelly, Weber, and Nestande; NOES: None). F. CONSIDERATION TO STAFF AND PURCHASE A PARAMEDIC SQUAD AT FIRE STATION NO. 71, AS PART OF THE FIRE DEPARTMENT'S FISCAL YEAR 2020-2021 BUDGET REQUEST. Mr. Aryan thanked Battalion Chief Bryan White and Battalion Chief Mike Beverlin for their assistance in developing the budget. He noted the Public Safety Commission reviewed this item at their most recent meeting and recommended approval. He explained a paramedic squad is neither a patient transport nor an engine. It is an advanced life support vehicle with two staff members per shift offering an additional level of response for medical and fire emergencies. He proceeded with a PowerPoint presentation, which is on file in the office of the City Clerk. The presentations included a review of the need and benefits of the paramedic squad, average response times for all Palm Desert fire stations, and statistics showing North Palm Desert is the number 2 station in the Top Ten 2019 primary response areas. He said Engine 71 is reported to be the busiest engine in Riverside County, and the impact to personnel only allows for four hours of sleep, stating this may impact performance if this continues. As part of the presentation, he talked about ancillary services currently utilized and the impacts of the potential elimination of the Fire Marshal Office at City Hall and City -provided services. In the end, staff did not recommend eliminating locally provided transport, stating that if not provided, it will be done by an outside entity with the City having no direct control. Additionally, the nurse and medical cost recovery program would also terminate or residents would be charged for EMS (Emergency Medical Services) transports by the new provider. This year that program alone is supposed to bring in $2.5 million in cost recovery, but more important, residents are currently not billed. Lastly, he noted a fourth fire station will be required when build out is completed in the north end of Palm Desert, which will require five positions, and this vehicle would cover two of Q7 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING MAY 14, 2020 those positions. He concluded with asking the City Council to move forward with having a permanent paramedic squad at Station No. 71. Councilmember Weber requested further clarification relative to the new station. Mr. Aryan explained the fourth station will alleviate and reduce the call volume of Station 71. Councilmember Harnik asked where did the official boundary start for North Palm Desert, stating it would be good to have something official. Ms. Aylaian offered that the area north of Frank Sinatra Drive is typically referred to as North Palm Desert. She noted some refer to the undeveloped land in the northern section of Palm Desert as North Palm Desert. Mayor Nestande thought it was anything north of Fred Waring Drive all the way to Interstate-10. Councilmember Harnik asked where the cities of Indian Wells and Rancho Mirage have their plans reviewed. Chief White explained the City of Rancho Mirage pays for a dedicated fire inspector, so they are reviewed at their city hall. For the City of Indian Wells their plans are dropped off at their city hall and covered by a split -funded position. Further responding, he said Sonia Cooley's position is split funded between the County, and the cities of Palm Desert, Rancho Mirage, and Indian wells. He added that Sonia physically moves among all locations. Councilman Jonathan asked how the response time for Fire Station 71 compares to the State average. Chief White answered the State does not bill fire stations in the same manner as Riverside County. There are several different areas with different metrics for response times, and the County has chosen a five-minute response time for the Palm Desert area. Councilman Jonathan said he would like to see the Countywide response times to gain a better understanding of where Fire Station 71 falls in the larger picture. He also asked where the data for personnel impact originated. Chief White replied this was calculated over a one-year period and was a combination of mandated time spent per policy as it relates to training, paperwork, and equipment checkout, as well as input from staff at the stations. 10 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING MAY 14, 2020 Councilman Jonathan also asked if the Public Safety Commission took the City's overall budget into account. Ms. Aylaian said there was extensive discussion regarding the impact of the pandemic on the budget as it related to policing services, but not for this particular item. Councilmember Harnik asked if the voter -approved measure in 1980 that added fire service to the tax roll had any language that included a cap. Mr. Aryan replied that initially $48 was added to the tax roll, and it was capped at $60, which is the current amount. Any additional consideration of an increase would require voter approval. Councilmember Weber said it was pointed out at the Public Safety Commission meeting that with the addition of staff, more recliners and a larger dinner table would be needed, including remodeling of the station for the new equipment. She questioned if those costs would be presented separately and if there was a plan to cover the costs. Chief White said those costs are not included, and the request will likely be revised and presented at some point in the future, incorporating the impacts of the current public health crisis. Councilman Jonathan noted that while this request would benefit residents, this could not happen at the worse time. He said Council was facing a $15 million deficit with a $60 million budget. Staff and Council are working to cut costs and here its being asked to commit to a $1.2 million, including a recurring $1 million every year thereafter for staffing and maintenance costs. He recommended tabling the discussion for six months and review again once the impact of the pandemic on the City and its budget is more clearly understood and determine if it can be afforded at that time. Councilmember Weber agreed with Councilman Jonathan's position and indicated she would support such a motion. She understood the need is clear that in order to support additional developments in the north end of the City, and while it may not make sense to spend the funds immediately, she felt it was something necessary to do in the near future. She offered to withdraw her motion. Mayor Pro Tern Kelly shared she defined "need" differently. In her opinion, once it is acknowledged that something is a need, it would mean it's a priority. Those that elected this Council would wish for ambulance response time to receive the highest possible priority. The benefit of deciding this evening, is that the budget can then be structured with this in mind. Putting it off for six months means the budget is build without this cost, and it then 11 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING MAY 14, 2020 becomes dependent on some windfall income. She concluded ambulance response times should not be subject to windfall income, and she supported taking action at this meeting. Councilmember Harnik understands the impact on the budget; however, putting a life and health secondary to money does not align with the values of Palm Desert. She stated planning and zoning decisions have resulted in a growing need for the north end of Palm Desert, one of which is public safety. While it may not be the best time, she felt it would be better to take an action now rather than continue the item. Mayor Nestande agreed with Councilmember Harnik's statements regarding planning and zoning comments, and while it is difficult to make budget cuts, the City Council needs to look somewhere else. Councilman Jonathan said he would support the will of the majority, but he wanted to clarify his concerns. He said the word "need" is not an absolute, because there are things that can wait a couple of months. The concept of putting safety over dollars is a rather astute characterization. One of the greatest obligations, as Councilmembers, is fiscal oversight because when a city runs out of money, it runs out of choices. As already mentioned by even his colleagues, no one knows how long or deep this recession will impacts sales tax and revenue. He agreed this paramedic squad vehicle is something that is needed, but he didn't think it's causing a lot of injury to table for six months in order to make sure the City can afford it. Councilmember Harnik responded that she appreciated Councilman Jonathan's comments and stated she took this decision seriously as reflected by her comments. She noted responses to short-term care and nursing facilities have been mentioned on several occasions, and staff should partner with the Fire Department representatives to take another look at how some of those costs can be recovered and perhaps revise the guidelines to protect the City's interest rather than focusing on a particular business model. Following discussion, it was determined that a motion would result in an expenditure of $1,192,600 to purchase a paramedic squad unit with annual recurring costs of approximately $957,600 for staffing and service costs. Councilmember Weber moved to, by Minute Motion, approved staff's recommendation to staff and purchase a Paramedic Squad for Palm Desert Fire Station No. 71, as part of the Fire Department's Fiscal Year 2020-2021 Budget request in the amount of $1,192,600, which has an annual recurring cost after year one estimated to be $957,600. Motion was seconded by Kelly and carried by a 4-1 vote (AYES: Harnik, Kelly, Weber, and Nestande; NOES: Jonathan). 12 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING MAY 14, 2020 G. CONSIDERATION OF COST REDUCTION OPTIONS FOR THE FISCAL YEAR 2020-2021 PALM DESERT POLICE DEPARTMENT BUDGET. Mr. Aryan stated he and Captain Belli and Lt. Martello worked in collaboration in developing the proposed consideration. He noted the Public Safety Commission reviewed this item at their most recent meeting and spent a great deal of time considering the various options presented. He provided a PowerPoint presentation which is incorporated by reference and is on file in the City Clerk's office. The overview consisted of various options to reduce costs for the annual police budget. The seven proposed cost -saving options: 1) reduce patrol hours from 171.4 to 144 hours per day; 2) suspend the Administrative Sergeant position; 3) reduce the motor team from six positions to four; 4) suspend K9 Officer positions; 5) reduce the Business District team from four positions to three; 6) eliminate the School Resource Officer position at Palm Desert Charter Middle School; and 7) increase Community Service Officer positions from eight to eleven positions. Finally, the Public Safety Commission voted to accept all of staff's recommendations as presented. Councilmember Harnik thanked Councilmember Weber for representing the Council on the Public Safety Commission, stating she appreciated the hard work of the Commission. Mayor Pro Tem Kelly thanked Lt. Martello and police department for working collaboratively with the City to prepare the proposal for Council review. Councilmember Weber thanked the Public Safety Commission for working diligently to review the proposal, noting it brought a lot of consternation to the Commission members to suspend the School Resource Officer (SRO) position at Palm Desert Charter Middle School (PDCMS). She noted this particular cost has been reviewed on an annual basis and multiple attempts to gain the school's or district's participation in a cost -sharing agreement have been unsuccessful. In the case of an urgent need, officers can be brought in from other areas to assist our officers, so the proposed reductions still allow for flexibility should it be warranted. Councilmember Harnik reminded Council that when the previous K9, Van Snapp, was retired, the City suspended the position, which was not met with community support. A Palm Desert community member donated $10,000 to purchase K9 Officer Rio, and another $5,000 to purchase a vest for him. She noted that the K9 also serves as a great public relations tool which provides a lot of value. Also, when the City was placing an initiative on the ballot to increase the Transient Occupancy Tax (TOT) rate, it was to help fund public safety. The principal of PDCMS was a big supporter of this initiative, because it would help support the police department and the school resource officer, who felt it was important for students to have a positive relationship with the 13 PRELIMINARY MINUTES F REGULAR PALM DESERT CITY COUNCIL MEETING MAY 14, 2020 police department. She encouraged staff to make another attempt to reach out and talk to the school's principal and work out the cost -sharing agreement. Lastly, she asked for clarification of the duties of an administrative sergeant. Lt. Martello explained the administrative sergeant position is a supervisory one that is utilized for preparation of most of the reports from patrol and special teams, and handles additional responsibilities like participating in search warrants, meetings, field responsibilities, and all administrative tasks such as budget preparation. Councilman Jonathan expressed appreciation to Lt. Martello and Captain Belli for assisting to address the City's fiscal emergency while preserving public safety. He noted that conversations surrounding the SRO cost -sharing have been occurring since he was first elected to the City Council and they have not been productive, if any have occurred at all. He indicated the SRO position could be suspended this year and revisited in the future. He understood the emotional attachment to K9 Rio and agreed it can be difficult to separate that from the financial decision. However, only 14% of the incidents that Rio was involved in were in Palm Desert, yet the City bears 100% of the cost. He did not feel that 86% of roughly $300,000 was justified as a public relations effort. He pointed out the City would still have access to a K9 officer as needed through the County's K9 unit and hope it would include some of the public relations efforts which are important to the well-being of the community. In summary, he said the proposal as a whole represented a reasonable compromise, so he would support a motion in favor of the proposed cost reductions. Councilmember Harnik thanked Lt. Martello and Captain Belli for finding a way to work around the K9 unit concerns. She reiterated her desire to reach out to Principal Frazer now to finalize a cost -sharing agreement was the right thing to do in an effort to keep the SRO position. Councilmember Weber asked when was the last time staff reached out to Principal Frazer. Ms. Aylaian responded she had reached out every year as City Manager as part of the budget process. Her understanding is that Principal Frazer discusses it with her Board and those responsible for making a decision, and each year the response is that they are unable to assist with the cost. Mr. Aryan confirmed a letter was mailed during the last budget process and the response received on June 20, 2019, stated their budget did not allow for the added expense. 14 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING MAY 14, 2020 Councilman Jonathan suggested approving staff's recommendation as presented, and in the meantime reach out again to Principal Frazer and if there is new information at the time the budget is presented to Council for approval, it can be considered. Mayor Pro Tern Kelly added she believed the only way the City can have a good conversation with PDCMS representatives is by accepting staff's recommendation. Ms. Aylaian clarified there had been previous study sessions during which the Police and Fire budgets were discussed. She noted that at that time there was not unanimous guidance from the City Council, so staff brought back several options for direction as to how Police and Fire budgets should be included in the overall financial plan. Utilizing the direction received this evening, the entire budget will be presented to the City Council for their consideration at the regular Council meeting of June 25, 2020. Councilmember Weber voted to, by Minute Motion, accept staff's recommendation for cost reduction options for preparation of the Fiscal Year 2020-21 Palm Desert Police Department Budget. Motion was seconded by Weber and carried by a 5-0 vote (AYES: Harnik, Jonathan, Kelly, Weber, and Nestande; NOES: None). H. REQUEST FOR APPROVAL OF POLICY GUIDELINES FOR AN EMERGENCY RENTAL ASSISTANCE PROGRAM USING COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG-CV) FUNDS. Management Analyst Christopher Gerry presented the policy guidelines for an emergency rental assistance program. Under the CARES (Coronavirus, Aid, Relief, and Economic Security) Act, the City received a special allocation of $241,000 in Community Development Block Grant (CDBG) Funds, known as CDBG-CV funds. The purpose of the funding source is to prevent and prepare for in response to the coronavirus. Notwithstanding, these funds must be within the framework of the CDBG Program, which includes meeting the national objective of benefitting low and moderate income people. In addition to receiving these funds, it includes statutory flexibility, which will be explained further at the next City Council meeting. In order to determine the highest and best use of funds, the housing staff conducted outreach to affordable and market rate rental properties. In regards to affordable, the housing staff has been in communication with the Palm Desert Housing Authority property manager, RPM (Real Property Management, Inc.), which oversees 15 properties totaling more than 1,100 units. According to RPM, there's been an increase in consideration given to households as a result to the coronavirus. They have not had substantial issues with nonpayment. To explain, there is an increase in unemployment benefits under the Federal Assistance Program, and those benefits coupled with existing lower rental 15 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING MAY 14, 2020 rates are likely why nonpayments have not been an issue in the City's affordable properties. In regard to market -rate housing, seven rental properties were contacted who represent 1,066 total units, where they found 18% in nonpayment or partial payments for the month of April. Housing staff subsequently contacted RPM and market -rate rental properties regarding nonpayments for the month of May. As a result, the statistic was similar to the prior month with most of the same households who had a missed payment or provided only a partial payment. Based on the identified need in the community, City staff was developing this emergency rental assistance program for market -rate rental properties for City Council consideration. For the proposed operation, the City would select a nonprofit organization as atypical sub -recipient to operate the program. This nonprofit would work cooperatively with eligible households and rental properties to obtain the appropriate support documentation, provide case management, offer support and services, and make funding recommendation per households. To identify a nonprofit through a competitive process, the City will also conduct outreach to rental properties. These rental properties would have a limited time to opt into the program for consideration to a limited amount of the initial allocation of CDBG-CV Funds. Upon receipt of rental property applications, City staff will make recommendations to the Outside Agency Committee based upon criteria determined in the near future. Rental properties that do not receive an allocation may be given consideration if there are additional funds allocated toward the program in the future. Those nonprofits selected will work in collaboration in advertising the program to all eligible households that have missed payments for the month of April or beyond relative to that particular property. Households would have a limited application time to be considered for emergency rental assistance. Finally, the nonprofit would recommend and assist eligible households, which is a short-term program. There are multiple benefits to this program, for residents, emergency rental assistance funds would help stabilize their housing situation. It is said that the way to prevent homelessness is through prevention, and this program is aligned with that concept. Another benefit is that households will remain in the community. Furthermore, the program creates relationships with low and moderate income households who may not typically interact in the normal course of business. For rental properties, the program secures revenue that would likely be lost if households are evicted. While a natural turnover is healthy for rental properties, there are costs incurred. Those costs include revenue loss, marketing fees, time and cost for screening new renters, and repair and cleaning costs. At the next City Council meeting, he will be presenting information on impacts the coronavirus have had on the community. The program continues to help the City build its relationship with the nonprofit community. If the City Council is interested in this program, the first step is approving the policy guidelines, which outline the cost, households, rental properties, as well as prioritization. The guidelines allows staff to begin outreach to market -rate rental properties and they will be presented at the May 28 meeting, along with various 16 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING MAY 14, 2020 documents and plans for approval, which includes the emergency assistance rental program. If the program is approved, it will be recommended to the Outside Agency Funding Committee for further consideration. Since time is of essence, City staff recommends the Committee be given discretion on selecting the nonprofit organization to operate the program. Allowing the Committee some discretion, allows staff to act expeditiously, but still provide oversight at the policy level. Both the City Council and Outside Agency Funding Committee will have an opportunity to review and discuss this program again in the future. He thanked Community Director Ryan Stendell, Management Analysis Jessica Gonzales, and Office Specialist Melinda Gonzales on this joint effort. Councilmember Harnik asked if the City was certain it would receive the funds. Mr. Gerry answered yes, stating the City had to amend its action plan, which he will present on May 28. Councilman Jonathan thanked Mr. Gerry for his creative approach and seizing the moment. He asked if the funds would actually be used for rent. Mr. Gerry explained that with CDBG, the funding has to go directly to the property owner. Councilman Jonathan noticed that in Attachment A - Category 3, it excludes single-family residences, yet there are households that would qualify, stating this may have to be revisited. Mr. Gerry said that in trying to create perimeters, he assumed a separate rental unit rather than a single-family home. However, there is nothing statutory regulating it. Councilmember Weber asked for clarification on the number of households that would benefit from the $241,000, and the amount allocated to administer the program, questioning how far $5,000 would go, which is the maximum awarded to a household. Mr. Gerry replied that although this allocation is $241,000, there is also additional funds and activities that impact the total budget. His personal goal is to put $200,000 toward this program, absent of administrative cost or cost for the nonprofit organization. He added that $5,000 per household would help approximately 40 households, which is the minimum that will be served, but he will aim for helping 60. Ultimately, this will be on a case -by -case based on applications and income levels. With respect to payment to a nonprofit, he expects it will cost about $20,000 to $30,000, but at this point its arbitrary. 17 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING MAY 14, 2020 Mayor Pro Tern Kelly express gratitude for all the work done for this program, stating she was appreciative this has been pushed very expeditiously to get help to people on a timely basis to keep them in their houses and to avert real drama. Mayor Nestande concurred. Councilmember Harnik agreed with Councilman Jonathan about including single-family residents to the program. Mayor Pro Tern Kelly offered that Accessory Dwelling Units (ADU) are also foreclosed from the current language, but could benefit from this program. Councilman Jonathan moved to, by Minute Motion, approve policy guidelines for an Emergency Rental Assistance Program using Community Development Block Grant (CDBG-CV) Funds as amended by removing the limitations on both the Accessory Dwelling Units (ADU) and the exclusion of single-family residences. Motion was seconded by Harnik and carried by a 5-0 vote (AYES: Harnik, Jonathan, Kelly, Weber, and Nestande; NOES: None). REQUEST FOR APPROVAL OF PALM DESERT'S 2020 INDEPENDENCE DAY CELEBRATION. Management Analyst Vanessa Mager noted the staff report, adding she and Marketing Manager Thomas Soule were prepared to answer any questions. Councilmember Harnik couldn't think of missing a fourth of July in Palm Desert, but is proud of staff for coming up with a creative approach to do something special and looked forward to the 2020 celebration. Councilman Jonathan commended staff for coming up with a Plan B, which enables the community to celebrate Independence Day in a respectful social distancing manner. Councilmember Harnik moved to, by Minute Motion, pre -approve and authorize expenditures in an amount not to exceed $24,000 from the Fiscal Year 2020-2021 Budget for production of the 2020 Independence Day Celebration event; 2) authorize City Manager to execute ancillary vendor contracts associated with the production of the event in a cumulative amount not to exceed $24,000. Motion was seconded by Nestande and carried by a 5-0 vote (AYES: Harnik, Jonathan, Kelly, Weber, and Nestande; NOES: None). 18 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING MAY 14, 2020 NOTE: THE FOLLOWING ITEM WAS LISTED ON AN AGENDA ADDENDUM AND POSTED AT LEAST 72 HOURS PRIOR TO THE MEETING. J. REQUEST FOR DIRECTION FROM THE CITY COUNCIL REGARDING ISSUANCE OF A LETTER CONCERNING THE GOVERNOR'S ORDERS FOR THE COVID-19 PUBLIC HEALTH EMERGENCY. Ms. Aylaian stated the County Board of Supervisors voted to send a letter to the Governor about their concerns with the Order. In particular, the benchmarks being put forward for moving out of stage two and into stage three, which are not obtainable for many jurisdictions, including the County of Riverside. They also indicated they would appreciate more guidance by the State and to be allowed more input into the process to make it appropriate for individual and different areas of the State based upon their specific condition. The Board of Supervisor circulated their letter to each of the cities in their jurisdiction and asked if the mayors of each city would sign onto the letter of support and asked city councils to authorize their mayor to sign the letter. Mayor Nestande asked her fellow Councilmembers to sign the letter to present a united front to Governor Newsom, stating the County is the best vehicle to push things forward. It's not saying Council is 100% in support of the County, but that it has more in common than not. Mayor Pro Tern Kelly said she would love to be able to respond to the Mayor's plea for a united front if this letter perfectly matched the summary just given, but the problem is that the letter is very contentious as written. She said the County is making a push to change the criteria for moving through the stages of reopening, which was good. She also understood the County is making a push for some individualized treatment of distinct regions like the Coachella Valley, which was also good. However, the letter seems to be asking the State to drop all regulation and trust the County to take care of things, which she had a problem with, especially after watching two meetings of the Board of Supervisors, because reason doesn't always seem to prevail. She's not saying that about our supervisor, who she felt was eloquent in his statements, but as a body as the County Board of Supervisors, she was not comfortable with the notion that it would be the sole location for decisions in striking a balance between public safety and getting businesses open. While she loved the goals the City Manager stated, she was not comfortable with the letter. Mayor Nestande pointed out the County Board of Supervisors voted 5-0 in favor, which included Supervisor Manual Perez. Councilman Jonathan understood the concerns, but to him the letter is clear that the Governor's benchmarks are unachievable and unrealistic. He said 19 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING MAY 14, 2020 the Governor has allowed individual counties to come up with a plan of their own for State approval that would allow those jurisdictions to move forward with their own plan that balances health safety along with the economy. In fact, two counties have already been approved, and he would love for Riverside County to be the next one based on a plan. This letter laid out the framework for that request, and he felt the letter was thoughtful and respectful, which he knew was a concern with a previous correspondence. He supports a motion authorizing the Mayor to cosign the letter. Councilmember Harnik said a lot of good points have been made when it comes to local control. She would also like to see Coachella Valley Association of Governments (CVAG) as a guiding force to bring the Coachella Valley together, in that because of its geographic isolation, it deals with different issues. Further, what is being seen in so many other instances in the Valley, we are not as effective when each city doesn't work together. What gives her confidence with this letter is the team that was put together to collaborate for an economic recovery. She doesn't love 100% of the letter, but she believes it's moving in the right direction. Councilmember Weber supports the Mayor signing the letter, because she does not approve of the Governor, who doesn't live here, but tries to tell cities how to run them. MS. TERRY APPLEGATE, Cathedral City, CA - communicated via voicemail and her comments were read into the record. In summary, she encouraged face coverings and physical distancing requirements, stating she and others have curtained their grocery shopping since the County Board of Supervisors lifted face coverings inside businesses; she is opposed to the County's re -opening plan, because it has the 2"d highest COVID caseload and death rate in the State; lack of staffing and training to conduct tracking from those infected. Lastly, she said more work is needed to open safely, both in the Coachella Valley and countywide. Councilman Jonathan moved to by Minute Motion, approved the Mayor's signature on the letter by the County Board of Supervisors to Governor Newsom. Motion was seconded by Weber and carried by a 4-1 vote (AYES: Harnik, Jonathan, Weber, and Nestande; NOES: Kelly). 20 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING MAY 14, 2020 NOTE: THE FOLLOWING URGENCY ITEM WAS ADDED TO THE AGENDA UNANIMOUSLY (5-0 VOTE) AT THE CONVENING OF THIS MEETING. K. REQUEST FOR CONSIDERATION TO ADOPT THE CITY OF LA QUINTA'S APPROACH TO THE ISSUE OF FACIAL COVERINGS AND. SOCIAL DISTANCING WHEN INSIDE STORES OR BUSINESSES. Ms. Aylaian noted this item was added to the agenda by a 4/5 vote at the convening of the meeting. This item was presented at the request of Mayor Pro Tern Kelly who witnessed what was done recently by the City of La Quinta and wished Palm Desert City Council take similar action. La Quinta recently passed an executive order to continue the County Public Health Officers mandate that was recently rescinded, which required the use of face coverings and social distancing inside a grocery or drug store. It also strongly recommends businesses within the city require social distancing and post notices conspicuously at their businesses to let people know about their respective policy. A copy of the order recently enacted by the City of La Quinta was provided to the City Council. The order went into further details about the type of masks that could be worn. She added the order would be consistent with recent actions taken by a number of other Valley cities. Councilmember Harnik questioned why it was important to wear a mask at a grocery store and not a computer repair shop, which are both essentials. Mayor Nestande noted the CDC website has information on masks, in that they are strongly suggesting wearing a mask, but not making it mandatory, because the science isn't there. The important thing is social distancing, and hand washing. However, every grocery store is requiring them and people are doing it. Her hesitation in approving this order is that five county supervisors are taking heat from the community, and all they really did was to say, they would follow State guidelines. Councilmember Harnik believed there is a level of fear because of the coronavirus. What she would like to do is build confidence and raise the level of security so that people will want to come back to patron local businesses. Based on emails received, many expressed fear and asked that face coverings remain in place, including social distancing. Mayor Pro Tern Kelly stated this virus is much more problematic than the common flu, in that people can carry it and give it to others, often four or five days before showing symptoms. One of the ways the virus is spread is through droplets from when someone is speaking, singing, etc. The whole purpose of the mask is to prevent the person who does not yet know they are a carrier. Council is hearing from many that they want assurances that when they go to an essential business they can feel assured that those who have shopped there before them have worn the mask and have not spread the 21 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING MAY 14, 2020 virus. To her knowledge, every other city in the Coachella Valley has addressed this issue by responding to constituents' plea for some assurance that masks are required, at least in essential businesses. To the extent cities are working hard to get the State to acknowledge that the Coachella Valley as a unit should be treated as a distinct region, the City needs to get on board with its sister cities for a common practice. Like Councilmember Harnik said, she would support extending the mandatory policy to all essential businesses. She suggested adopting only the La Quinta policy to avoid further confusion to the public who don't know where city's boundaries start and end. Mayor Nestande stated that in order to have unity and less confusion to the public, the City should stick with the County order, which she believed brought the most certainty. Once businesses start to reopen, most of them will require staff and customers to wear a mask. She wants to be a united front with the County, because there are bigger issues ahead with the State and the Governor. She too, has received emails, and there are people on both sides of the issue, including those who believe Council is violating civil liberties, which she too believed Council was crossing that line. Mayor Pro Tern Kelly offered one of the things that currently adds confusion, is that some people are contending businesses don't have the authority to make face coverings mandatory. With the County rescinding the mandate, it has caused confusion and consternation. What everyone agrees upon is that Council wants businesses to open and to do it successfully. Council is hearing from many that their sense of comfort of coming out to visit local businesses is going to hinge on whether or not the City has a policy in place. The order is geared to support a vibrant recovery, and she didn't see this as a conflict to the public health and business interest, the two are completely in sync, because the public needs to feel safe in order for a business to succeed. Councilman Jonathan was and is still on the fence, because limiting government action is important to him. He is hesitant to implement a rule that is not required, but on the other hand, the wearing of face masks serve a dual purpose of helping to lay out the foundation for reinvigorating businesses. Whether it's effective or not, it's a step toward a greater personal health. He personally appreciates the person coming at him to be wearing a face mask, because he doesn't know if they are sick or not, but he would not be in favor of expanding beyond it. Along those same lines, paragraph three is onerous and unnecessary. He suggested modifications to paragraph two and eliminating paragraph three. Responding to question, he said golf courses follow their own standards from a national organization and they have been deemed acceptable. When he refers to public spaces, he is referring to parks and the streets. He is torn, but in this instance, he can support this emergency action with some revisions. 22 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING MAY 14, 2020 Councilmember Weber agrees that when she is out in public, she puts on her mask, which will prevent her from inhaling anything that may be in the air. She trusts businesses to make their own decisions about whether their customers should wear masks. Customers can then make their own decisions about entering or not. She is an adult, so she doesn't need another level of government or mandate to tell her if she should wear a mask at certain businesses. She added everyone already had the County telling people what to do. She believed business owners will protect their workers and customers. She respected peoples own intelligence to take care of themselves, adding people should be sending emails to businesses about how they feel about wearing masks or not. Mayor Nestande stated that in terms of jurisdiction, she didn't think it could carve itself out of the Coachella Valley from western Riverside. She was told we had to do this as a county, in terms of lifting restrictions. She reiterated the City should stick with the County to set the standard, but did encourage people to wear face masks and let businesses take control. At the same time, not getting involved with peoples civil liberties. Councilman Jonathan suggested a middle ground by setting a time limit like at the end of the month. Mayor Pro Tern Kelly pointed out the end of the month was in two weeks, and things will not change dramatically. She understood how divergent views are on the Council, which is why she pointed to the La Quinta's order, which didn't go as far as other cities in the Coachella Valley. Of course, this will be revisited, stating face coverings was initiated by Riverside County Health Officer Cameron Kaiser who was operating within a State guidance, which in essence subscribed county health officers to make those decisions. If there is a definitive opinion from the County's Health Officer, it helps everyone feel comfortable with a change in policy. As circumstances change, and obviously, a change of policy from the County Health Officer would be the most clear change in circumstances. Councilmember Harnik suggested taking out paragraph three as recommended by Councilman Jonathan if a motion is made. Councilmember Weber felt insulted that fellow Councilmembers would want to get involved in her private life by requiring her to wear a mask, and she truly felt this was wrong. Mayor Nestande moved to, by Minute Motion, the City of Palm Desert continue to follow the County guidelines. Motion was seconded by Weber and it failed on a 2-3 vote (AYES: Weber and Nestande; NOES: Harnik, Jonathan, and Kelly). 23 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING MAY 14, 2020 Ms. Aylaian stated this was the time to discuss and debate policy issues, requirements or executive orders as policy decisions are left to the City Council. She offered that for the past two months, staff has worked on educating people to what the current regulations are in the City's emergency declaration that City Council approved. In that order, it indicated the City would defer to the State and County and their expertise, but what they have struggled within the largest volume of interactions with constituents is trying to explain what the rules are currently. Unfortunately, the two other agencies that are able to impose regulation, the State and the County, have changed their regulations in recent weeks. If there is an implementation, she suggested it be specific to Palm Desert and not look at approaches where it considers a trial. Councilman Jonathan said the motion would be to authorize the City Manager to issue an emergency executive order. However, let's say the State approves the County to implement its own plan to rescind the emergency order, how quickly can the City Council rescind its order. Ms. Aylaian replied that if the City Council passes or enacted an emergency order, Council would be the one to rescind, and it can be done by scheduling a special meeting to consider the issue. Mayor Pro Tern Kelly stated intervening events will define how long the policy should be in place and not the calendar. Clearly, emergency orders are adjusted when conditions change, but given what the City Manager just said, clear guidance about what the policy is in Palm Desert is going to be the best guide to staff in answering questions. Councilmember Harnik commented this was not about interfering in peoples lives, but about making people feel secured and confident to come back to Palm Desert and have businesses succeed, which is the goal. She said when things change, Council will respond accordingly and appropriately. Mayor Pro Tern Kelly moved to, by Minute Motion, approve authorization to the City Manager to issue an Executive Order adopting the City of La Quinta's approach to the issue of facial coverings and social distancing when inside stores and businesses without paragraph 3 of their order, and reformat consistent with Palm Desert Municipal Codes. Motion was seconded by Harnik and carried by a 3-2 vote (AYES: Harnik, Jonathan, and Kelly; NOES: Weber and Nestande). No DRA PRELIMINARY MINUTES FT REGULAR PALM DESERT CITY COUNCIL MEETING MAY 14, 2020 XIV. OLD BUSINESS NOTE: THE FOLLOWING ITEM WAS LISTED ON AN AGENDA ADDENDUM AND POSTED AT LEAST 72 HOURS PRIOR TO THE MEETING. A. REQUEST FOR AUTHORIZATION TO REPURPOSE THE INVEST PALM DESERT ECONOMIC DEVELOPMENT INCENTIVE PROGRAM TO A UNITE PALM DESERT BUSINESS SUPPORT PROGRAM THAT PROVIDES ECONOMIC RELIEF TO PALM DESERT BUSINESSES ADVERSELY IMPACTED BY THE COVID-19 PUBLIC HEALTH EMERGENCY. Senior Management Analyst Wayne Olson provided a PowerPoint presentation and acknowledged the Marketing Department, Finance Department, Community Development Department, Mayor Pro Tern Kelly, and Councilman Jonathan fortheir efforts and participation in developing the proposed policy and program. He said the City has been assessing the short-, mid-, and long-term capital needs of the Palm Desert community. There have been several players in the short-term capital arena, including the Small Business Administration (SBA) in the State of California, and other community development corporations, along with short-term credit mechanisms like business and personal lines of credit to help support businesses through this difficult time. However, some of the programs have become oversubscribed or eligible applicants are not able to access the programs quickly or efficiently. There is pressure mounting for local entities to assist with mid- and long-term capital needs. On January 23, 2020, the City Council approved the Invest Palm Desert Economic Development Incentive (Invest Palm Desert) Program, which is $2 million of capital improvement incentives the City was going to provide the business community. During an emergency meeting, Council suggested staff place the program on hold while the budget was reviewed and whether the $2 million could be reprogrammed to a different purpose. He said staff is proposing Unite Palm Desert Economic Relief (Unite Palm Desert) Program with an emphasis on five focus areas. Focus Area 1 - is an emergency loan program that mimics other programs through the State. The emergency loan assistance program would be reprogramming $1 million from the Invest Palm Desert (IPD) Program, and prioritize Palm Desert business owners who employ Palm Desert residents in the form of a zero percent interest and no payment loan for 24 months. The maximum loan amount would be $25,000 based on the full-time employee count, and the loan would be forgivable as long as the applicant can document how the funds were used to mitigate impacts due to COVID-19. Business owners could use the funds for lease payments, inventory, payroll, working capital, and reopening expenses. They 25 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING MAY 14, 2020 cannot use the funds for capital improvement projects because it would trigger prevailing wages. Staff is proposing a City committee to review the applications and authorize the City Manager to do various administrative documents. Focus Area 2 - is a business outreach effort, which the staff team has already started implementing. The team came up with several items to help businesses in Palm Desert that include a banner program, temporarily waiving the sign code, 90-day business license renewal extensions, and created a business support hotline and email to help businesses connect to the appropriate services in the community. Focus Area 3 - is a hospitality program. Staff is proposing the City earmark $900,000 to the program, which focuses on guest and tourist vouchers. Staff needs to develop this program more thoroughly in concert with the City's marketing team and input from hospitality professionals in Palm Desert. He said staff would bring back a more formalized program timed with the reopening of the hospitality sector. Focus Area 4 - is Priority One CV, which is a City effort for securing a stand-alone four-year campus. He noted the City Council established Priority One CV on March 13, 2020, with funding of $100,000 forthe program. The previous community partner pledges were not able to deliver and were limited by COVID-19, therefore, staff is recommending an additional $50,000 to help support the Priority One CV initiatives for a total contribution of $150,000. Focus Area 5 - is to support community partners in the City for efforts that may arise in the coming months. Staff is recommending $50,000 to help support other businesses within the community, or to develop other strategic policy initiatives to address long-term capital, the Chamber for example. In total, there is approximately $850,000 nonprofit community support via other funding programs, such as the Community Block Grant Program/CV program. In summary this was a $2 million Unite Palm Desert Relief package, which still leaves unallocated $1.9 million in Economic Reserves for other programs. Staff recommended suspending the Invest Palm Desert Program and directed all those monies to support the Unite Palm Desert Program. The next step is to finalize administrative and legal documents associated with the loan, stating he wants to launch it with the Unite Palm Desert campaign. He hopes to administer the loan program in late June 2020, and start developing the hospitality program. Lastly, staff is also recommending an additional item, Item 3 - authorize the City Manager to implement the Unite Palm Desert Program as noted in the PowerPoint presentation. He offered to answer any questions. Councilmember Weber inquired about the slide where it indicated there were 70% of applicants that didn't respond to the program, the one where staff reached out to applicants. Mr. Olson explained staff reached out to approximately 25 applicants interested in the Invest Palm Desert Program back in January, and 70% of those respondents said no or they are not moving forward. However, 13% 26 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING MAY 14, 2020 of those respondents, frankly that's two, said they have plans ready and are moving diligently forward. Following the April 5, Economic Development Subcommittee meeting, Mayor Pro Tern Kelly and Councilman Jonathan recommended staff reach out to those applicants to find out their interest in the Invest Palm Desert Program. At the emergency meeting, Council placed an administrative hold on the $2 million programmed for the Invest Palm Desert Program. He anticipated the question from the City Council would be, if the City is going to reallocate the entire $2 million from the Invest Palm Desert Program to the Economic Relief program, what impact would that have on the current applicants interested in the Invest Palm Desert Program. Councilmember Weber is surprised, because she thought there were more people interested in the program. Mr. Olson said the interest in the program was strong. However, COVID-19 happened and applicants were not able to move forward with an uncertain future. Councilmember Harnik asked about the locations of the two applicants. Mr. Olson answered that one applicant is located on Highway 111, and the other is at the bump and grind plaza adjacent to where the former Tilted Kilt was located. Mayor Pro Tern Kelly asked if there is a way to essentially adopt the recommendations, but stay in conversations with the two businesses. At least long enough for staff to reach a conclusion on whether the City would be helped to emerge positively from the current challenge, because she would hate to just drop them. Mr. Olson believed the City could be adaptable to the proposed projects, but Council to keep in mind there is still $1.9 million of economic development reserves available that can be redirected toward the two proposed projects. However, the recommendation is to suspend that program to redirect funds to this economic relief program. It's a conversation to continue with those two businesses and report back to Council. Councilmember Harnik was concerned the City had two businesses that moved forward to the point where they are in front of Architectural Review Commission, based on a program of a one-to-one match. She believed the City needed to find a way to make good on its word. In terms of repurposing the money for COVID-19 related relief, Mayor Nestande understood the Federal Emergency Management Agency (FEMA) would reimburse the City 75 percent. 27 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING MAY 14, 2020 Mr. Olson responded FEMA reimburses the City for expenses related to emergency management. The City might find matched dollars through the Economic Development Agency's (EDA) grant program. Mr. Alvarez mentioned the City Attorney's office researched FEMA reimbursements. Ms. Aylaian stated she received clarification from Best Best & Krieger (BBK) on FEMA funds. Initially, staff thought and hoped that Economic Development incentive programs would be reimbursable up to 75% out of the CARES (Coronavirus, Aid, Relief, and Economic Security) Act Funding or FEMA. However, the opinion of BB&K is that it's not the case and it would not be eligible. Mr. Olson added the House of Representative is reviewing H.R. 6800, which includes language that would reimburse cities and rural areas that have populations less than 500,000 for COVID-19 related expenses. The U.S. Senate is suspicious of the bill, so the City would have to wait and see what happens. He said there is a possibility there is another source of funds to reimburse the program through the Phase 4 Stimulus. However, it is all in the early stages at the Federal level. Councilmember Harnik stated that based on a phone call with Southern California Association of Governments (SCAG) and a congressman, the bill would not be successful as written. Further, an appropriation of that bill would go through Sacramento and to cities at a per capita formula, in which the first year would give Palm Desert $19.6 million and the second year $9.8 million, which was really all just speculation. Councilman Jonathan is proud of the City in that a small government is able to react and pivot more quickly than big government. When Council adopted Invest Palm Desert it made a lot of sense, which he will want to go back to once the City is out of this crisis, but to channel those dollars to something more impactful like Unite Palm Desert to help local businesses, is the right way to go. He liked that Unite Palm Desert doesn't duplicate what is already out there, but supplements. He felt Council does not need to address the two applicants who applied for the Invest Palm Desert Program this evening, but staff has heard Council say it wants to continue conversations with them. However, if the City invested in them and it ends up with a brand-new restaurant that would be operating immediately and employing 20+ people, the City may just invest in them. He said United Palm Desert is a terrific and impactful program that will precisely target economic recovery. He also liked the Subcommittee's discussion regarding the hotel program, in that rather than giving money to hotels and wondering where the funds will go, the City is creating a program that incentivizes tourists to come back to Palm Desert. Mayor Pro Tern Kelly concurred, reinforcing the suggestion to continue discussions with the two applicants, which encourages staff to exercise 28 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING MAY 14, 2020 judgment as to whether the two projects really would move the ball forward in a sufficient and significant way and have the City Council consider them to benefit from this program. Councilmember Harnik thanked Mayor Pro Tern Kelly and Councilman Jonathan for their work in developing this program, and she agreed with all their comments. She also commended the Economic Development and Marketing team for an amazing job. She said the program is impressive and inspiring, and the City needed to do this right now to revive the economy and generate revenue. Councilman Jonathan moved to, by Minute Motion: 1) Authorize the repurposing of the Invest Palm Desert Economic Development Incentive Program to a United Palm Desert Business Support Program that provides economic relief to Palm Desert Businesses adversely impacted by the COVID-19 public health emergency; 2) Approve re -allocation of $2,000,000 from the Invest Palm Desert Economic Development Incentive Program to the Unite Palm Desert Business Support Program, as amended to include Item 3) authorize the City Manager to implement the Unite Palm Desert Economic Relief Program, including the authorization to execute any agreements required to meet all of the program's administrative requirements. Motion was seconded by Nestande and carried by a 5-0 vote (AYES: Harnik, Jonathan, Kelly, Weber, and Nestande; NOES: None). XV. MAYOR AND COUNCILMEMBER REPORTS & REMARKS TO THE COMMUNITY A. Councilmember Jan C. Harnik Committee Reports and General Comments. None B. Councilman Sabbv Jonathan Committee Reports and General Comments. None C. Mavor Pro Tern Kathleen Kellv Committee Reports and General Comments. 1. Southern California Association of Governments (SCAG) - announced that Councilmember Jan C. Harnik was chosen to be the nominee that will come before the General Assembly to the Second Vice President of the SCAG Regional Council, which puts her in line for president. It's wonderful to have Palm Desert in a such a significant position of influence. D. Councilmember Susan Marie Weber Committee Reports and General Comments. 29 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING MAY 14, 2020 1. ADDreciation for the Modern Technoloay. - appreciative of the committee/commissions and other organizations where Councilmembers serve for coming together so quickly with the marvelous invention of ZOOM in order to conduct City business. E Mavor Gina Nestande Committee Reports and General Comments. ►�= F. City Council Reauests for Action. 1. Construction Sims - Councilmember Jan C. Harnik requested staff modify the construction signs on San Luis Rey and El Paseo with something that states "temporary four-way stop ahead," rather than portraying horrible delays. XVI. STAFF REPORTS AND REMARKS A. City Manager None B. City Attorney None C. City Clerk Ms. Rocha reminded the City Council of the upcoming Budget Study Session set for Tuesday, May 19, 2020, at 1:00 p.m. XVII. ADJOURNMENT With City Council concurrence, Mayor Nestande adjourned the meeting at 8:21 p.m. ATTEST: GINA NESTANDE, MAYOR GRACE L. ROCHA, ACTING CITY CLERK CITY OF PALM DESERT, CALIFORNIA 30