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HomeMy WebLinkAboutPrelim - CC - 06-11-2020DRAFT PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING THURSDAY, JUNE 11, 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. II. 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 Lori Carney, Director of Administrative Services Russell Grance, Director of Building & Safety Ryan Stendell, Director of Community Development Martin Alvarez, Director of Economic Development Janet M. Moore, Director of Finance/City Treasurer Tom Garcia, Director of Public Works Stephen Y. Aryan, Risk Manager Lt.Jared Howe, Palm Desert Police/Riverside Co. Sheriff's Department Captain Joseph Belli, Palm Desert Police/Riverside Co. Sheriff's Department M. Gloria Sanchez, Acting Deputy City Clerk III. ORAL COMMUNICATIONS - A (CLOSED SESSION ITEMS) None PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 11, 2020 IV. ADJOURN TO CLOSED SESSION Reauest for Closed Session: A. Conference with Real Property Negotiator pursuant to Government Code Section 54956.8: 1) Property: Parcel E (APN 620-370-002, 003, 004, 017, 018, 020, 033, and 043) Agency Negotiator: Lauri Aylaian/Martin Alvarez/City of Palm Desert Other Party Negotiator: The Retail Connection Property Owner: City of Palm Desert Under Negotiation: x Price x Terms of Payment 2) Property: Lease Property: 38-995 Desert Willow Drive, Palm Desert Agency Negotiator: Lauri Aylaian/Janet Moore/City of Palm Desert Other Party Negotiator: Palm Desert Recreational Facilities Corporation 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 C. Conference with Legal Counsel regarding Threat to Public or Facilities pursuant to Government Code Section 54957(a): Consultation with Lt. Matt Martello, Asst. Chief of Police, Palm Desert Police Department/Riverside County Sheriff's Department. 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 4:20 p.m. V. RECONVENE REGULAR MEETING - 4:00 P.M. A. REPORT ON ACTION FROM CLOSED SESSION. Mr. Hargreaves reported that under the Successor Agency agenda for Closed Session Section III, Item Al, the Agency Board/City Council unanimously approved a six-month extension to Retail Connection on the Exclusive Negotiating Agreement. Additionally, under the City Council agenda for Closed Session Section IV, Item A2, which deals with a lease at the Desert Willow property, the City Council voted unanimously to defer rent payments. 2 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 11, 2020 Ms. Moore added the City Council approved the deferral of the current and catch-up rent that is due to the City from the Palm Desert Recreational Facilities District (PDRFD) that is according to the lease between the City and the PDRFD. This is only for the Desert Willow restaurant, and due to the economic impacts of the Public Health Officer's closure of the restaurant in March 2020. The repayment of these two years and also subsequent years, will be reconsidered and reevaluated in fiscal years 2021 and 2022. VI. PLEDGE OF ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA - Councilmember Jan C. Harnik VII. INVOCATIONANSPIRATION - Mayor Pro Tern Kathleen Kelly VIII. AWARDS AND PRESENTATIONS A. PROCLAMATION TO RECOGNIZE AND CONGRATULATE THE PALM DESERT HIGH SCHOOL SENIOR CLASS OF 2020. On behalf of the entire City Council, Mayor Nestande recognized that the Palm Desert High School Senior Class of 2020 was graduating this evening, and congratulated them. Ms. Rocha added that an individualized proclamation was issued to each of the candidate with their name on it; there were more than 447 seniors graduating. IX. ORAL COMMUNICATIONS - B Captain Joe Belli reported on the protest that took place on Monday, June 1. He noted there was a standing order for a curfew placed across the County that evening, which the City endorsed. Originally the protest was planned for El Paseo at the California Pizza Kitchen parking lot. The Sheriff's Department was able to notify business owners of this private event. Shortly prior to it beginning, it was moved to the Civic Center Park area. The Department was able to locate pouches of materials in the region of El Paseo and other shops in the area, similar to signs to protest inequality, police violence, some were weapons, stones, and clubs. Those items were collected by law enforcement or City staff prior to the planned event. Once the event was relocated to Civic Center event, it appeared to first be without organization, but then many in the group decided to go mobile and to spread out throughout the region. Many of the protesters went out into the roadways on Highway 111, and made their way out to Dr. Carreon and a few other streets. The Department created road block with a couple of officers to allow the protesters to move about the roadway without getting hit. He would call the group unruly, but not violent. They did make a few attempts to go south into the El Paseo area, but all the avenues into that region were met with law enforcement personnel. Ultimately, 3 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 11, 2020 protesters walked down the street and headed back to Civic Center Park. They were able to identify someone involved with the event, and this lady was friendly with law enforcement and helped to communicate to the crowd that the curfew was in effect and any protestors that would continue to stay in the area would be arrested for the curfew violation. Those announcements were made about 6:00 p.m., but after 11h hours protestors willfully departed the area. In the end, law enforcement did make five arrests for violation of the curfew. Additionally, there were three individuals around El Paseo that were arrested, one for having a hand gun, another one had a back pack containing a hammer and pry -type tools. As you can see there were some that were unruly and a few peaceful types that were out there with their children, and at curfew time they left. He said it was a mix bag of people, but with the excellent response by all involved, which included Cal Fire, California Highway Patrol, Desert Hot Springs Police Department, including local INS, ICE ( Immigration and Naturalization Service, Immigration and Customs Enforcement), everyone was safe and kept the City from suffering major damage. Councilmember Harnik thanked the police for their professionalism. Mayor Nestande concurred, stating she thanked God for the great relationship the City has with the police department and for their part in having this event stay a peaceful protest. X. CONSENT CALENDAR PALM DESERT CITY COUNCIL A. MINUTES of the Regular City Council Meeting of May 28, 2020. Rec: Approve as presented. B. COMPLIANCE ANALYSIS AND INVESTMENT REPORTS for the Months of January, February, March, and April 2020 (Joint Consideration with the Successor Agency to the Palm Desert Redevelopment Agency - Item L below). Rec: Receive and file. C. FINANCE COMMITTEE MINUTES for the Adjourned Meeting of February 11, 2020. Rec: Receive and file. 4 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 11, 2020 D. REQUEST FOR AUTHORIZATION to Review the City's Conflict of Interest Code as Required by the Political Reform Act of 1974. Rec: By Minute Motion, authorize staff to make a formal review of the City's Conflict of Interest Code, pursuant to the Political Reform Act, and if necessary at the appropriate time thereafter, prepare a resolution to be adopted by the City Council to effect the required amendments. E. REQUEST FOR APPROVAL of Amendment No. 3 to Contract No. C36800 with Michael Baker International, Inc., for On -Call City Surveyor Services, Extending the Term Through December 31, 2020, and Increasing the Contract Amount by $50,000. Rec: By Minute Motion: 1) Approve Amendment No. 3 to Contract No. C36800 with Michael Baker International, Inc., Palm Desert, California, for on -call City Surveyor Services to extend the contract until December 31, 2020; 2) increase the contract in the amount of $50,000 from available funds in Fiscal Year 2020-2021; 3) authorize the City Manager to execute said Amendment - upon approval of the Fiscal Year 2020-2021 budget, additional funds will be available in Account No. 1104300-4301000, Prof- Architectural/Engineering Account. F. REQUEST FOR EXTENSION of Professional Service Agreements with Scoff Fazekas & Associates, Willdan Engineering, and Interwest Consulting Group for Building Plan Review Services for Fiscal Year 2020-2021. Rec: By Minute Motion, approve extension of Professional Service Agreements for Building Plan Review Services, FY 2020-2021 with Scott Fazekas & Associates (Contract No. C38750A), Willdan Engineering (Contract No. C387506), and Interwest Consulting Group (Contract No. C38750C) in a total amount not to exceed $150,000. Funds will be available in FY Budget 2020-2021, Account No. 1104420-4301000. G. REQUEST FOR APPROVAL of the Purchase of Gas and Diesel Fuel from SC Commercial, LLC, for Fiscal Year 2020-2021, in an Amount Not to Exceed $200,000 for the City's Fleet and Equipment and Desert Willow's Maintenance Vehicles and Equipment (Contract No. C40010). Rec: By Minute Motion, approve the purchase of gas and diesel fuel from SC Commercial, LLC, Coachella, California, during FY 2020-2021 for City fleet and equipment in an amount not to exceed $100,000; and Desert Willow maintenance vehicles and equipment in an amount not to exceed $100,000 - funds are available in General Fund Account No. 1104331-4217000, Auto Fleet -Supply Automotive Gas, and Account No. 5204195-4803100, Desert Willow Maintenance Facility. 5 PRELIMINARY MINUTES D RA F T REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 11, 2020 H. REQUEST FOR AWARD OF CONTRACT to Kimley-Horn and Associates, Inc., in the Amount of $79,962.83, for Professional Engineering for the Local Roadway Safety Plan (Contract No. C39870A, Project No. 600-20). Rec: By Minute Motion: 1) Award subject contract to Kimley-Horn and Associates, Inc., Indian Wells, California, for Professional Engineering for the Local Roadway Safety Plan (Project No. 600-20) in the amount of $79,962.83; 2) authorize the City Manager to execute the Agreement - monies will be available on July 1, 2020, in a 213 Measure A Account. Approved 4-0-1 (AYES: Jonathan, Kelly, Weber, and Nestande; NOES: None; ABSENT: Harnik) I. REQUEST FOR APPROVAL of Amendment No. 1 to Contract No. C35940 - Nonpotable WaterAgreement between Coachella Valley Water District and the City for Desert Willow Golf Resort. Rec: By Minute Motion: 1) Approve Amendment No. 1 to subject contract with Coachella Valley Water District for nonpotable water services at Desert Willow Golf Resort; 2) authorize the Mayor to execute the First Amendment to the Nonpotable Water Agreement. J. REQUEST FOR AUTHORIZATION to Elect Not to Participate in the Urban County Community Development Block Grant (CDBG) Program for Federal Fiscal Years 2021, 2022, and 2023 (Contract No. C37080). Rec: By Minute Motion, authorize the City Manager to sign a Notice of Non -Participation, electing not to participate in the Urban County (Riverside County) Community Development Block Grant Program for Federal Fiscal Years 2021, 2022, and 2023. SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY K. MINUTES of the May 28, 2020, Regular Meeting of the Board of Directors of the Successor Agency to the Palm Desert Redevelopment Agency. Rec: Approve as presented. L. COMPLIANCE ANALYSIS AND INVESTMENT REPORTS for the Months of January, February, March, and April 2020 (Joint Consideration with the Palm Desert City Council - Item B above). Rec: Receive and file. C. PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 11, 2020 PALM DESERT HOUSING AUTHORITY M. MINUTES of the Housing Authority Meeting of May 28, 2020. Rec: Approve as presented. N.. REQUEST FOR APPROVAL of Second Extension to Contract No. HA37270 with John Harrison Contracting, Inc., in an Amount Not To Exceed $175,000 for HVAC Mechanical Systems Maintenance Services at the Palm Desert Housing Authority Properties (Contract No. HA37272). Rec: By Minute Motion: 1) approve second extension to subject contract with John Harrison Contracting, Inc., Banning, California, for the HVAC Mechanical Systems Maintenance Services at the Palm Desert Housing Authority properties for a period of twelve (12) months in the total amount not to exceed $175,000 for contract services; 2) authorize the Chairman or Executive Director and its designee to take all necessary actions to execute the extension and any documents necessary to effectuate the actions taken herewith - monies have been included in the FY 2020-2021 proposed Authority's replacement reserve budget in the appropriate Authority accounts. Councilmember Harnik registered her recusal from Item D. Upon motion by Kelly, second by Weber, and 5-0 vote of the City Council (AYES: Harnik, Jonathan, Kelly, Weber, and Nestande; NOES: None), with the exception of Item D, the remainder of Consent Calendar was approved as presented. XI. CONSENT ITEMS HELD OVER None XII. ORDINANCES A. For Introduction: None B. For Adoption: None 7 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 11, 2020 XIII. NEW BUSINESS A. REQUEST FOR ADOPTION OF RESOLUTION, AUTHORIZING A FIVE-YEAR EXTENSION ON THE $500,000 LOAN MADE BY THE CITY TO THE DESERT WILLOW GOLF RESORT AND APPROVING THE DEFERRAL OF INTEREST PAYMENTS ON ALL LOANS MADE BY THE CITY TO DESERT WILLOW COMMENCING WITH THE 2019-2020 FISCAL YEAR. Ms. Moore reported that the City's general fund has loaned Desert Willow Golf Resort a combined amount of $2 million in the form of two different loans, $500,000 of which is coming due on September 30, 2020. Due to the recent coronavirus pandemic, the contracted management company Kemper Sports is requesting that the City defer the interest on these loans for a period of at least two years, at which time it would be reevaluated. Due to the reduction in revenue, staff is supportive of the request. Mayor Pro Tern Kelly moved to: 1) Waive further reading and adopt Resolution No. 2020-50, authorizing a five-year extension to the term of the $500,000 loan made by the City to the Desert Willow Golf Resort; 2) by Minute Motion, approve the deferral of interest payments on all loans made by the City to Desert Willow Golf Resort for two years commencing with the 2019-2020 Fiscal Year through the 2020-2021 Fiscal Year; and 3) by Minute Motion, authorize the City Manager to extend the interest payment deferrals for up to an additional two years. Motion seconded by Jonathan and carried by a 5-0 vote (AYES: Harnik, Jonathan, Kelly, Weber and Nestande; NOES: None). B. REVIEW OF FORMAL AND INFORMAL ACTIONS UNDER COVID-19 EMERGENCY AUTHORITY. Ms. Aylaian summarized the staff report which included the action of the City Council on March 20, 2020, to ratify a proclamation for local emergency. The staff report outlined what the proclamation enabled the City to do, and this item provides City Council the opportunityto reviewthe emergency order and determine if they wish to continue to keep it in place. She recommended keeping the emergency declaration in place primarily due to the necessity of a local proclamation of emergency to take advantage of emergency funding opportunities now and in the coming months. Mayor Nestande asked about the amount for which the City has submitted for Federal Emergency Management Agency (FEMA) reimbursement. Ms. Moore responded the expenditures to date have been limited, with the bigger concern being the economic impacts and loss of revenue. The expenses incurred currently total approximately $100,000, primarily due to N PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 11, 2020 modifications and safety protocols relative to ensuring both staff and the public are safe before allowing them to return to City Hall and public buildings. Ms. Aylaian added staff is in the process of preparing an application to recover lost revenue to the Economic Development Agency (EDA) in the amount of $5.2 million. Ms. Moore stated this application is the more significant to the process. Ms. Aylaian explained the federal CARES Act (Coronavirus Aid, Relief and Economic Security Act) is passed through to the State and local government agencies, which is being recommended in the budget process for the State of California. The amount is calculated on the size of the city and percentage of population relative to other cities; staff anticipates it may be around $410,000. She added that in the past when counties have rescinded their emergency proclamations, the governor has indicated that if there is no longer an emergency there is probably no need for emergency funding, so the CARES Act funding would probably require an emergency declaration. Councilman Jonathan offered that no action is required to keep the proclamation in place. Ms. Aylaian agreed, stating it's in place until the City Council terminates it, which can be done at any point, and suggested this could be a standing item on the City Council agenda for the duration of the emergency period. Councilmember Harnik stated she recognized that a state of emergency has to be declared in order to avail of certain emergency funds, and clarified her issue was that there were a number of items listed on the staff report that did not require a declaration of emergency in order to be accomplished. She specified that sign ordinances were relaxed previously during the recession, and action regarding face coverings did not need an executive order. She stated the vinyl banners were within the City Manager's signing authority, and street closures and parking waivers could be carried out without an emergency declaration. She noted members of the City Council were elected to make decisions and it is time to return to the form of government the people expect. She stressed she is not suggesting to discontinue the emergency declaration, rather that when decisions are made, the City Council is consulted since they are responsible and accountable to the citizens of Palm Desert. She asked what types of actions might be taken that would require the exclusion of the City Council due to the need for it to take place so quickly. Ms. Aylaian responded that the only action taken without Council's prior approval was the original declaration of emergency on March 17, 2020. This 9 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 11, 2020 action required ratification by the City Council within seven days, which was accomplished through a special meeting and Council approved it at that meeting. She agreed other actions could be taken without the emergency declaration and without Council involvement. The change in suspension of enforcement for signage was done in the past by Council approval. Other actions taken were within staff's authority and did not need Council direction or approval whether or not there was an emergency declaration in place. Councilman Jonathan asked if the recommendations and mandates from the City and County required the emergency declaration or if they were automatically in effect. Ms. Aylaian responded that those recommendations were automatic because the County and the Governor's directions both override the City's authority. Councilmember Hamik reiterated that a number of the actions listed did not require an emergency declaration and stated it is important that Councilmembers' voices are heard when certain meetings occur, referring to the planning meeting between the Sheriff's Department and City staff to prepare for recent events. She said Councilmember liaisons should have been part of the discussions with the Public Safety Commission and the El Paseo Business Improvement District, as they participated in the past. She noted that if an emergency City Council meeting is necessary, Council is willing and able to participate. Councilman Jonathan asked if Councilmember Harnik was concerned that the Council authority was ceded as a result of the local emergency, and if she was suggesting that from this point forward actions include Council input, which she affirmed, he then said he supported her position. Responding to question on whether the directive from the County Public Health Officer allowing hotels and bars to reopen applied to the City of Palm Desert, Ms. Aylaian responded they would be allowed to reopen, although they may not all reopen right away. Further responding, she confirmed she heard Councilmembers concerns and understood and respected their position. Ms. Rocha confirmed no action was necessary on this item. 10 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING XIV. OLD BUSINESS DRAFT JUNE 11, 2020 A. INFORMATIONAL REPORT ON THE STATUS OF THE UNITE PALM DESERT ECONOMIC RELIEF LOAN PROGRAM - FOCUS AREA NO. 1. Mr. Alvarez presented a PowerPoint outlining an update of the Unite Palm Desert Economic Relief Program (UPDERP). Staff was authorized on May 14, 2020, to move forward with the program, and also authorized $1 million from the Economic Development Reserve Fund to be allocated for small business loans. The program is targeting small, local businesses with up to 25 employees, and provides zero interest loans for a 24-month period, as well as a forgivable opportunity if the applicants are able to demonstrate impact due to the COVID-19 pandemic. Applications were accepted between May 27 and June 3, 2020. The Program received 283 applications with requests totaling more than $3.8 million. On June 1, the Economic Development subcommittee met to determine the focus to facilitate ranking of the applications. The focus is to assist those businesses owned by Palm Desert residents, those employing Palm Desert residents, and those businesses that have sustained a longer period of closure due to the guidelines issued by the State and the County. The subcommittee also recommended focusing on those that provide a large economic impact to Palm Desert, and those that are unique to this City. He provided a brief overview of the loan agreement and promissory note that has been developed in conjunction with various departments and the City Attorney's office. He reviewed all the eligible expenses for the loan forgiveness which are included in the PowerPoint and incorporated by reference into this document. In conclusion, he said the applications are scheduled to be reviewed during the week of June 15, with recipients to be notified the following week and funding to be provided within 30 days of receipt of an executed loan agreement and promissory note. Councilman Jonathan congratulated Mr. Alvarez and his staff for the work done on this program. With regard to the staff report he noticed payroll or wages were not mentioned in the presentation. Mr. Alvarez confirmed they are qualifying expense for loan forgiveness. Councilman Jonathan called attention to an inconsistency in the language included in the loan under the City's and the Borrower's respective obligations. He suggested a modification, which is to review the loan at the end of Year 2 instead of Year 1, to determine the amount to be forgiven. Mayor Pro Tern Kelly stated she recommendation with respect to the clarification on the completion date. supported Councilman Jonathan's review process. She then asked for 11 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 11, 2020 Senior Management Analyst Wayne Olson explained it would be the date the clock starts ticking relative to the reporting. The date of the execution of the agreement would be used to determine forgiveness qualification. Mr. Alvarez agreed that the recommended changes could be incorporated into the document. He pointed out the reason for the review after Year 1 is to ensure the business is still operational and viable. Councilmember Harnik appreciated Councilman Jonathan's suggestion, but was concerned there would be no oversight for two years. She stated there should be some type of follow-up to determine how the business is progressing and if they can rebound. Councilman Jonathan said staff could touch base with the applicant and determine if any of the defaults have occurred. The Year 1 review could be strictly to check the status of the business rather than the forgiveness potential of the loan. He noted payment should not be requested at the end of one-year. Mayor Nestande noted there is more need than there are funds for the program. She asked if staff was looking into future opportunities for potential grants the City will receive in order to assist more businesses. She also asked about the $10 million set aside for economic programs such as facade enhancement, as she understood that would be repurposed to assist small businesses. Ms. Aylaian cautioned that the City should not rely on any funds not yet received from various grant applications made, noting those grants are intended for economic development programs such as the iHub rather than incentives for specific businesses. She also reminded Council that $1 million is to fund the City's grant program and is part of the $10 million set aside. Mayor Pro Tern Kelly added Council previously approved a package that included incentives to assist the hotels, which is $900,000 of that $10 million, and another $50,000 to various community partners. Councilman Jonathan recalled other expenditures from the funds set aside such as $850,000 to the visitor incentive program and $50,000 towards the Cal State project. It was agreed funds were well -used to support many areas of the community. Councilmember Harnik referred to Item No. 7 of the agreement relative to the litigation threshold. She asked how the amount of $25,000 was determined. Mr. Hargreaves said it is an estimate of materiality. IVA PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 11, 2020 Councilman Jonathan asked if the item needed to be included and expressed concern about the wording of the section. He also suggested, if not eliminated, the threshold could be increased to $100,000. Councilmember Harnik suggested the section be eliminated, or could be reviewed as part of the one-year check. Mr. Alvarez agreed the wording could be modified to include only pending litigation and deferred to the City Attorney relative to the threshold. Mr. Hargreaves stated these types of questions and statements are generally found on loan applications in general, and it is information that lenders want to know ahead of approving a loan. He questioned how large the businesses receiving the loan would be, and if $25,000 would be a threat to their continuing existence. Mayor Pro Tern Kelly noted that this item only requires that the Borrower notify the City, suggesting this type of communication would be a good thing. After further discussion, Councilman Jonathan stated $50,000 was a more appropriate threshold, and the words "or threatened' should be removed. Councilman Jonathan moved to, by Minute Motion, receive and file the information report with the following changes to the Loan Agreement: 1) staff directed to revise the language in the Agreement to state the loan will be reviewed after Year One to see if any defaults have occurred, and at the end of Year Two, determine if the loan is forgivable; 2) modify Item No. 7 of the Loan Agreement to read as follows: "Borrower shall promptly notify the City of any litigation pending against Borrower in excess of $50,000," Motion seconded by Kelly and carried by a 5-0 vote (AYES: Harnik, Jonathan, Kelly, Weber, and Nestande; NOES: None). B. INFORMATIONAL REPORT REGARDING AN UPDATE TO THE EL PASEO PEDESTRIAN IMPROVEMENTS/DEMONSTRATION PROJECT. Assistant Planner Kevin Swartz reported that on December 12, 2019, the City Council approved the El Paseo demonstration project to continue an additional six months. During that time, City staff was tasked with assessing the project by conducting field surveys, collect pedestrian counts at the raised crosswalks, compare speed data of the raised crosswalks, evaluate maintenance strategies for the painted crosswalks, investigate additional crosswalk materials, and add visual aids. He said that since the beginning of the demonstration project, City staff received numerous phone calls and emails from merchants, residents, and tourists. Staff had begun conducting field surveys by walking business to business in the middle of February through March. However, due to the pandemic, field surveys were cut short. 13 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 11, 2020 Staff received 188 phone calls and 54 emails, which was mostly negative feedback. He said the painted crosswalks were the most controversial and received the most negative feedback. Positive comments were that the colors added pop to the street, crosswalks are fun and energizing, and they add to the El Paseo art culture. The negative comments were the colors and artwork belong in a circus, and the paint is dirty and not consistent with a high -end street. Follow-up questions staff asked individuals were what other colors or designs would be appropriate, and the majority of individuals said nothing would work. He also asked the individuals what other materials would be appropriate, and they said pavers or just leave the crosswalks alone. Based on the number of negative comments, staff believed no matter what colors, designs, and materials are used, the concept of decorative crosswalks would never receive enough support from the community. Therefore, City staff requested direction from the City Council on whether or not they would like to proceed with decorative crosswalks. If Council wishes to move forward, staff would conduct further outreach to the business community and residents. The other option is to remove the painted crosswalks, which would cost between $150,000 to $250,000, and the funds would be appropriated from the General Fund reserves. The estimated timeframe would be 14 to 18 weeks, which consists of a formal bidding process. Next, he said the bulb -outs generated negative comments. Staff received comments from delivery truck drivers and the merchants voicing their concerns with making turns, and they would need to alter their route. Other complaints received regarding the bulb -outs is that they would create traffic congestion when pedestrians are crossing at the intersection, hard to turn right, and no U-turns. Overall, staff did not receive enough comments from the merchants. Staff requested additional time to reach out to merchants and residents regarding the bulb -outs. In the meantime, staff recommended removing the white delineator posts immediately. as they added a negative value El Paseo. The timeframe to remove the posts would be approximately one week. Additionally, the bike racks would need to be removed and could be relocated to other areas in the City. He said the removal of posts and bike racks could be done by the Public Works maintenance staff. Initially, staff received negative comments about the raised mid -block crossings because the public was not aware of them and they were speeding over them. However, once the public became aware, they embraced the raised crossings. Staff received positive feedback on the painted daisies because they were subtle, but received negative feedback about the signage. He noted that signage is required by the State. Other positive feedback received from the public was the raised crosswalks reduced traffic speeds from 25.5 miles per hour (MPH) to 15 MPH. With regard to the parklets and dining decks. He said staff was working on installing two parklets and dining decks along El Paseo. Staff anticipated bringing this item before the City Council in February. However, due to the pandemic and not knowing when restaurants would fully open, the parklets were never installed. Today, restaurants are allowed to open under certain 14 PRELIMINARY MINUTES ®RAFT REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 11, 2020 measures, and the Department of Alcoholic Beverage Control (ABC) is also defining new standards under the COVID-19 pandemic for outdoor dining. Therefore, staff believes this is the right time to implement the temporary installation of parklets. He explained that restaurants would be responsible for purchasing and installing each parklet, and staff will create a streamlined approval process by the Director of Community Development through a Temporary Use Permit (TUP). The TUP would be combined with the ABC approval process, and the City's encroachment permit would include design guidelines and insurance requirements. He said this process is an economic benefit to the restaurants. In conclusion, staff received a large amount of input from the residents, but limited input from the merchants. Staff believes that additional time is warranted to make a formal recommendation to the City Council. Additionally, he said people provided passionate comments, and they would like the chance to address the Council during a public hearing. Staff recommends removal of the white delineator posts, allowance of a temporary parklet program through a TUP, direction to remove the painted crosswalks now or at a later date, and grant additional time for staff to outreach and return to the City Council with a formal recommendation. Councilmember Weber asked for clarified with regards to the crosswalks at the intersection and the mid -block crosswalks. Mr. Swartz said he was talking about the crosswalks at the intersection and displayed them on the screen. Further responding, he confirmed people like the raised crosswalks with the daisies. Councilman Jonathan questioned how it was possible that painting over a few crosswalks would cost $250,000. Project Manager Randy Bowman explained that the paint applied to the crosswalks was a special, durable, and expensive paint to withstand traffic, sun, and weather. He said he ran his estimate based on repainting in black with the same product. The low estimate is having a contractor mill off the top inch and pave with normal asphalt and repaint the white lines. Further responding to question on the option of installing pavers, he said pavers would be more expensive than the $250,000. Councilman Jonathan inquired how the demonstration, outreach, crosswalks, and parklets relate to the Gibbs study and the overall vision the City had for El Paseo. Additionally, he asked if the City was still in a testing period if the Council authorizes additional time for staff to perform additional outreach. He noted the City has been studying this for a long time, and asked for the status in comparison to the bigger vision for the Gibbs study. Mr. Swartz responded the near -term solutions for the Gibbs study are being implemented. While this was a test, staff has not received enough input from 15 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 11, 2020 the merchants located on El Paseo. Councilman Jonathan noted he was looking at San Pablo and said it is gorgeous and he did not feel more testing or outreach was needed when there is a living example of what he believed El Paseo should look like. He asked if the plan was to implement the parts that are easier to carry out now, and in the meantime continue getting feedback and then determine how the City wished to proceed. Mr. Swartz understood the plan to proceed, and if Council has the desire to install pavers or raised crosswalks, staff will follow that direction. Councilman Jonathan expressed concern with doing anything piecemeal, because it creates a risk that when the full project is done, it will not have the desired outcome, and may require a third change. Mayor Nestande stated she remembered when this project was first discussed, and she did not believe Council realized how expensive it would be to undo the paint colors, and instead thought it would be a simple thing to do and undo. She recalled a couple of the alternate choices being pavers, and maybe should have gone with that option when first presented. She wondered if the City could afford to put in pavers and asked for staff to obtain the cost to install them. Mr. Bowman asked for direction relative to which crosswalks would be considered for paver installation so that an accurate estimate and appropriate options can be obtained. Councilmember Weber asked if the paver project could be understood to involve removing the painted sections and replacing with pavers, which would give three choices to either paint the crosswalks black, scrape it down and pave, or install pavers. Councilman Jonathan added another option would be to leave the crosswalks as they are since El Paseo would be redone in a year or so. He cautioned if the plan ultimately is to tear up the street, it would not be advisable to do something that will need to be redone at that time. Councilmember Weber suggested that if no action was taken, eventually the paint would begin to wear off. Mr. Bowman agreed, however, the paint is formulated to be durable so it would be several years before that were to occur. Councilmember Harnik noted that it took a global pandemic to get people to stop talking about the crosswalks. 16 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 11, 2020 Mayor Pro Tem Kelly pointed out that Council has become distracted by trying to think about superior crosswalk project approaches and directed attention to Page 4 of the staff report where staff advises Council that based on the input they have received, the concept of decorative crosswalks will never receive enough support from the community. She said we are in a period of limited resources and there are two things that emerge in the report that are positive take-aways from the experiment. The first is the mid -block crosswalks which have achieved their desired goal of slowing traffic for the benefit of pedestrians. She endorsed staff's recommendation to study whether there are other strategic places to install them. Conversely, the fact that they worked where they were installed does not mean more is a good idea, so further study is warranted to determine if there are other strategic locations. Also, dining decks are precisely what the current times call for and they are a comparatively inexpensive change to the character of the street. She suggested discontinuing the use of the word "parklets" as it can be misunderstood as taking away parking places for trees. Instead, the term "dining decks" describes the intention to make it possible for restaurants to expand in response to current conditions. She recommended removal of the colors of the crosswalks at the least expensive method possible when budgetary possible, stating she did not believe the expense is in the current budget so it would be appropriate to remove the delineators and let the paint remain for now. Mayor Nestande agreed, stating dining decks was a more appropriate term than parklets. She asked what direction Mayor Pro Tem Kelly believes staff should move when the budget allows. Mayor Pro Tem Kelly replied there was no public encouragement to do something with the crosswalks, and her recommendation may change pending additional input from the merchants and the community. Councilman Jonathan stated he was primarily in agreement with Mayor Pro Tem Kelly. He cautioned against doing work on the street when it is scheduled to be redone in the future using Measure A funds instead of general funds. He recommended doing as little as possible with the crosswalks at this point knowing that there will be change forthcoming, and shared his belief that the change needs to be part of the overall changes made to El Paseo. He supported removing the delineators, adding the dining decks and encouraged the City to move forward as quickly as possible with the El Paseo redo project that started years ago and has had a lot of staff time and Council time invested. Mayor Pro Tem Kelly noted additional discussion would be required on the overall El Paseo project as there was not clear consensus from the Council in previous discussions. 17 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 11, 2020 Mayor Nestande stated she wanted the input of the business owners as there are many moving parts due to the economic shutdown that occurred as a result of COVID-19, noting it adds another level of uncertainty as to the best thing the Council can do to make El Paseo vibrant again. She questioned how Council could make decision one way or the other with such uncertainty. Councilmember Weber agreed with the removal of the delineator posts, relocate the bike racks and implement the temporary dining decks along El Paseo, and stated she did not want to do anything to the painted crosswalks as she was not in favor of spending money when it would eventually be redone. Councilmember Harnik complimented Mr. Swartz for the information provided, which was valuable and well laid out. She noted she drives San Pablo a couple of times a day and it is now coming together so rapidly. She said the white striping used around the roundabouts looks clean and nice, and maybe that is what is needed with the crosswalks. She noted the bulbouts on San Pablo cause issues for delivery trucks and those who are doing business, and she is more cognizant of that now that they are installed. She agreed that moving the bicycle racks to where they can still be used is also a good idea. She asked that the signs on Larkspur at the raised crosswalk be reviewed as it seems they are low enough for someone to walk and hit their head and expressed concerns about safety and placement. She shared that she thought the raised crosswalks are terrific and when staff speaks to the merchants on the other end of El Paseo they may hear that they also like them. Additionally, Councilmember Harnik praised the daisy artwork and stated that at first it took some time to get used to them and now they are an asset to the street. She cautioned that Measure A funds are derived from sales tax revenue and it may be a while before the City sees the sales tax revenue it would like to see, so plans should not be made based on what we would like to see. She also noted she would like to get rid of the crosswalks and understands the budgetary constraints and is mindful of those, stating they did get a reaction and if the funding was available she would recommend removing them. Mayor Nestande asked the City Council with the budget constraint in place and trying to save costs, if they felt removing the crosswalks would be funding that needed to be spent at this time. Mayor Pro Tern Kelly stated that the Council would like to let the public know they have been heard, and that removing the white posts would send this message. She suggested approving recommendations 2, 3 and 5 of the staff report, and ask staff to return in three or four months with budgetary input relative to feasibility of removing the colors from the crosswalks. PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 11, 2020 Councilman Jonathan suggested Council approve staff recommendations No. 1, 2, and 3, and defer No. 4 for six months until the budget is reviewed and determined if the City can make this expenditure at that time. He suggested approval of No. 5 to continue outreach with merchants and residents, stating it was important to hear from the merchants and property owners on El Paseo, and also to understand Council's responsibility is the bigger picture, and sometimes hearing and getting input does not equate with the action Council will take as there are other factors to be considered. Additionally, he asked that staff and Council not forget there is a bigger project at play and it is necessary to move forward with the implementation to complete the process which has been a part of the annual goals and strategic plan. Mayor Pro Tern Kelly noted Councilman Jonathan's last point makes her wary as it appears to raise the priority of moving forward with assessment of some more substantial modifications to the street, and she did not feel it was an appropriate thing to imply in the context of this agenda item. She pointed out that substantial street modifications have just been made to San Pablo, and there is the expectation that this will spur business growth. She recommended that this needs to be monitored to determine if the expectation is fulfilled, and to focus attention on finishing what has been started before refocusing staff in a different direction to make street modifications on El Paseo. Councilman Jonathan responded that his intent was not to elevate the priority, but rather to stay the course and serve as a reminder of the bigger picture because the overall improvement to El Paseo is a long-term priority for the City. Councilman Jonathan moved to, by Minute Motion: 1) Receive and file informational report on the El Paseo Pedestrian Improvements/Demonstration Project; 2) direct staff to immediately remove the white delineator posts and two bike rack assemblies at bulb -out demonstrations, and all informational signage at Larkspur Lane and San Pablo Avenue intersections; 3)direct staff to implement a temporary dining deck/parklet program for restaurants along El Paseo that is consistent with the COVID-19 pandemic approvals that the Alcohol Beverage Control (ABC) is approving, and the Director of Community Development can administer through a Temporary Use Permit application; 4) defer action on whether to remove or maintain the enhanced painted crosswalks on El Paseo and Larkspur Lane; 5) direct staff to continue outreach with merchants and residents to gauge interest in additional pedestrian improvements and enhancements that may include additional mid -block crossings, bulb -outs, and/or decorative (paint pavers, colored asphalt) designs for the pedestrian corridor; 6) direct staff to stay the course with the current strategic plan and the City's current goals of the El Paseo Project. Motion was seconded by Kelly and carried by a 5-0 vote (AYES: Harnik, Jonathan, Kelly, Weber, and Nestande; NOES: None). 19 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 11, 2020 XV. MAYOR AND COUNCILMEMBER REPORTS & REMARKS TO THE COMMUNITY A. Councilmember Jan C. Harnik Committee Reports and General Comments. 1. Riverside Countv Offices - reported their offices are opening on Monday, June 15. 2. The Livina Desert - announced Governor Newsom has allowed The Living Desert to reopen. 3. Sacramento Watchlist Metric - noted that if COVID cases continued to rise and the new infection rate goes too high, privileges may be withheld again by Sacramento. She said everyone had to be cognizant of the reinfection rate and to be respectful of neighbors in being careful. 4. Palm Desert Hiah School/Cruise Nia_ ht - last night's celebration of the Class of 2020 with Cruise Night on El Paseo was great. B. Councilman Sabbv Jonathan Committee Reports and General Comments. None C. Mavor Pro Tem Kathleen Kellv Committee Reports and General Comments. Southem California Association of Governments (SCAG) - announced that Councilmember Jan Harnik was elected to Vice -President of SCAG; therefore, she is in line of succession to lead SCAG's regional council. 2. SunLine - announced she and the City Manager were briefed by SunLine about the proposed enhancements to their surface, which will include a trial micro -transit on coal surface on the Cook Corridor, stating some of her colleague have been eager to see happen. She added that grand funds have been secured for that project and Sunline will be pressing ahead. D. Councilmember Susan Marie Weber Committee Reports and General Comments. Citizens on Patrol (COPS) - reported that the members appreciate the City's support, and the City's guidelines for getting back to work. One of the guidelines about not having two people in a vehicle is going to affect when they are training, so surely there may be a way around this guideline. 20 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 11, 2020 2. Public Comment at Citv Council Meetinas - received emails from the public for opportunities and the freedom to be able to participate while the meeting is happening. Ms. Carney said staff has heard the same request from the public, and she, City Clerk, IT Manager, and City Attorney have been looking at this issue. Staff has been exploring and conducting different scenarios, starting with this meeting. Staff has changed its language on the website to reflect that people can email or leave a voice mail where City Clerk staff can read those message into the record. She displayed the new slide that will be shown prior to the meeting instead of the City's seal, providing instruction for how to participate. Additionally, there are people who wish to offer their comment live. Instructions will be given to where members of the public can email City staff with their name and phone number, then the City Clerk will send that person a Zoom Meeting Invite as an attendee. At the appropriate time, City Staff will elevate the attendee in order to be able to speak during the meeting. The process may slow things down, but staff is willing to try it out. One of the challenges is that it's difficult to get telephone calls directly into the Zoom meeting, and for those places where they are doing this, they are utilizing a third party to monitor and manage their council meetings. Although, the City recently got a new AV system, staff did not contemplate having these type of Zoom meetings, because these types of meetings are not legal. The exception is being made due to the pandemic and social distancing. Staff has not cracked the nut of having the ability for someone to live call in or live call out. This is something staff is working on, but it can be done if they register for the Zoom meeting in advance. Councilmember Hamik suggested checking with RCTC, because they have been able to have people speak during the meeting through their computer or the phone. Ms. Carney agreed to reach out to RCTC. However, depending on when City Council meetings start opening back up to the public, we could do a hybrid, where members of the public could come into the Chambers and provide a comment into the Zoom meeting. E Mavor Gina Nestande Committee Reports and General Comments. None 21 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING F. City Council Requests for Action. DRAFT JUNE 11, 2020 SIB 743 - Vehicle Miles Traveled (VMT) - Councilmember Jan C. Harnik requested the City consider writing a letter to the Governor about slowing down on the VMT, which has to do with CEQA (California Environmental Quality Act) and development. She said it didn't work well for places in the desert, because it will hurt a city like Palm Desert and it would be more expensive. There is a strong bipartisan effort with letters to the Governor to pull back on this. She said she supplied the letter that RCTC (Riverside County Transportation Commission) is using to staff and the City Manager. 2. Studv Session at the Police Station on Gerald Ford - Councilmember Jan C. Harnik suggested a study session to find out where the precincts are located, what does the CET (Community Action Team) do, what is the role of the Administrative Sargent, etc. She added that the Public Safety Commission could be invited as well. Also, it would be great to have more information and understanding of how they go about doing what they do. XVI. STAFF REPORTS AND REMARKS A. City Manager Return to Work at Citv Hall Status - reported that mostly all staff has been working remotely, but soon, they will be returning to City Hall. Staff has been working on guidelines for return to business in a different fashion from how it previously was done. Ms. Carney has been working with a team of people from each department across City Hall, because each department has different considerations and performs different functions both internally and through their interface with the public. Ms. Carney reported the situation continues to evolve as staff receives different guidance from the various public health agencies. Over the past couple of months, staff has doing a great job relating to supporting public services efficiently and safely. The target date for returning most staff to the work site is June 22, and opening up to the public by appointment is June 29. Target date for opening up Development Services to walk-ins is also June 29. She said staff continues to provide services online, through the telephone, email, and zoom meetings with members of the public and constituents. As already mentioned previously, staff will continue to find ways to make public comments during live meetings. Risk Manager has developed a number of policies, procedures, and checklists, which covers 22 PRELIMINARY MINUTES D RA F T REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 11, 2020 employee exposure protocols to comply with OSHA (Occupational Safety and Health Administration), CDC (Center for Disease Control), and public health officer. Some reconfiguration of workstations have been made to accommodate the social distancing that is required by OSHA. Plexiglas and/or sneeze guards have been ordered for all the counters. A customer routing plan will be implemented for when people enter the Development Services wing. She said people will be routed or guided to the various counter they need, and they will enter through one door and exit through another. B. City Attorney None C. City Clerk None XVII. ADJOURNMENT With City Council concurrence, Mayor Nestande adjourned the meeting at 6:39 p.m. ATTEST: GINA NESTANDE, MAYOR GRACE L. ROCHA, ACTING CITY CLERK CITY OF PALM DESERT, CALIFORNIA 23