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HomeMy WebLinkAboutPrelim - CC - 06-25-2020DRAFT PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING THURSDAY, JUNE 25, 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 Councilmember and those listed as present participated teleconference. Present: Councilmember Jan C. Hamik 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 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 M. Gloria Sanchez, Acting Deputy City Clerk III. ORAL COMMUNICATIONS - A (CLOSED SESSION ITEMS) None IV. ADJOURN TO CLOSED SESSION Request for Closed Session: A. Conference with Real Property Negotiator pursuant to Government Code Section 54956.8: PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING DRAFT JUNE 25, 2020 1) Property: A portion of APN 637-340-029 Agency Negotiator: Andy Firestine/Tom Garcia Other Party Negotiator: - Representative of Lyle -Hall LLC Property Owner: Lyle -Hall LLC Under Negotiation: x Price x Terms of Payment 2) Property: 44-911 Cabrillo Avenue (NWC Alessandro Drive/Cabrillo Avenue) APN 625-082-023, and 625-082-022 Agency Negotiator: Lauri Aylaian/Martin Alvarez/City of Palm Desert 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: 3 C. Public Employment pursuant to Government Code Section 54957: Title of Position: City Manager With City Council concurrence, Mayor Nestande adjourned the meeting to Closed Session of the City Council at 3:02 p.m. She reconvened the meeting at 4:38 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 VIII. AWARDS AND PRESENTATIONS None r PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 25, 2020 IX. ORAL COMMUNICATIONS - B MR. BRAD ANDERSON, Rancho Mirage, CA, thanked the City Council for making it possible for him to participate live. He reported there is a lot of false information on the Coronavirus that is just fear -mongering. He hopes that people can see through it, although hospitalization rate is increasing, but there are people coming in from outside the County. What he really wanted to speak to was the Coachella Valley Mosquito District office, which has been closed since June 10, and they may resume operations today. However, it was totally unacceptable for them to close this government organization that controls vector in the Valley. He knew they had a crisis, but they should have an emergency type of response instead of abandoning their post. The cities of Indian Wells and Palm Desert are at risk from mosquitoes, because they had positive cases just prior to closing. X. CONSENT CALENDAR PALM DESERT CITY COUNCIL A. MINUTES of the Regular City Council Meeting of June 11, 2020. Rec: Approve as presented. B. CLAIMS AND DEMANDS AGAINST THE CITY TREASURY - Warrants Dated 5/22/2020 and 5/29/2020(Qty 2). Rec: Approve as presented. C. INFORMATIONAL REPORT on School District Boundary Transfers. Removed for separate consideration under Section XI, Consent Items Held Over. Please see that portion of the Minutes for Council discussion and action. D. REQUEST FOR CONSIDERATION of Unite Palm Desert Murals (Contract No. C40150). Rec: By Minute Motion: 1) Approve contract with artist John Cuevas in an amount not to exceed $10,000; and 2) authorize City Manager to execute subject contract - funds will be available in the FY 2020-2021 Marketing Budget. 3 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING 1A J U N E 25, 2020 E. REQUEST FOR AUTHORIZATION to Streamline the Use of Vendors forthe Public Works Department by Granting Exception to Bidding Requirements and Approving the Original Equipment Manufacturer (OEM) Vendor List and the Various Vendors and Qualified Service Providers Lists for Fiscal Year 2020-2021. Rec: By Minute Motion: 1) Grant an exception to the purchasing requirements of the Palm Desert Municipal Code, as provided for in Section 3.30.160 (K); 2) approve the Original Equipment Manufacturer (OEM) Vendor List; Landscape Services Division Vendors and Service Providers List, and Public Works Various Vendors and Qualified Service Providers List; 3) authorize the City Manager or her designee to execute contracts for on -going services, not to exceed $50,000 for any one vendor on the list, as needed and recommended by staff during Fiscal Year 2020-2021. F. REQUEST FOR AUTHORIZATION of a Subrecipient Agreement with the Jewish Family Services of the Desert to Operate an Emergency Rental Assistance Program. Rec: By Minute Motion, approve the Subrecipient Agreement with the Jewish Family Services of the Desert in an amount not to exceed $20,000 to operate an Emergency Rental Assistance Program. G. REQUEST FOR APPROVAL to Submit a Letter of Support to Suspend Vehicle Miles Traveled as a Key Impact Criterion Under the California Environmental Quality Act (CEQA). Rec: By Minute Motion, approve the submission of a letter of support to suspend Vehicle Miles Traveled as a key impact criterion under the California Environmental Quality Act. SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY H. MINUTES of the June 11, 2020, Regular Meeting of the Board of Directors of the Successor Agency to the Palm Desert Redevelopment Agency. Rec: Approve as presented. CLAIMS AND DEMANDS AGAINST SUCCESSOR AGENCY TREASURY - Warrant Dated 05/29/2020. Rec: Approve as presented. 4 PRELIMINARY MINUTES RAFT REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 25, 2020 PALM DESERT HOUSING AUTHORITY J. MINUTES of the Housing Authority Meeting of June 11, 2020. Rec: Approve as presented. Councilman Jonathan requested Item C be removed for separate discussion and consideration. 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 remainder of Consent Calendar was approved as presented. XI. CONSENT ITEMS HELD OVER C. INFORMATIONAL REPORT on School District Boundary Transfers. Councilman Jonathan referred to Page 2 of the staff report, and asked about reversal of a prior transfer relative to 2,200 acres north of Frank Sinatra Drive and south of Interstate 10. He asked if there was a prior transfer of that property to Desert Sands Unified School District (DSUSD) at some point and whether DSUSD returned it to the City. Mr. Firestine responded this property had not been previously transferred. There was a transfer of other property and a separate effort to reverse that transfer, and multiple attempts over the years to transfer property from Palm Springs Unified School District (PSUSD) to DSUSD. This particular transfer addresses property other than the 2,200 acres mentioned by Councilman Jonathan. Councilman Jonathan asked for clarification on the 10% petition mentioned in the staff report which is, as he understood it, the only way the City Council can initiate a petition without an election. Mr. Firestine explained that up until 2001, cities such as Palm Desert could not initiate a property transfer. With a change in laws it is now possible to initiate a boundary transfer from one district to another through a resolution adopted by the majority of the City Council. Councilmember Harnik addressed the matrix provided by staff showing diminishing enrollment in PSUSD, which may indicate there would be little to no need for them to build another school, yet DSUSD is seeing increased enrollment. The City is reviewing more housing developments which would also increase enrollment. She noted a potential development on Hovley Avenue would impact Carter Elementary. She said a complete discussion PRELIMINARY MINUTES RAFT REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 25, 2020 should occur about that particular area, because another elementary school, would be needed. Mayor Nestande noted there was a discussion with the school board approximately a year ago which involved an effort to transfer land from PSUSD to DSUSD. Councilmember Harnik indicated there have been numerous discussions over the years and given the shift in population growth and need for schooling, the timing might be right. Councilman Jonathan added from a procedural standpoint he wanted to move the project forward. He pointed out it made no sense to have two school districts in Palm Desert, where children might play soccer and baseball on the same team but attend different school districts. He shared Councilmember Harnik's opinion that this property is on the PSUSD list of assets not expected to be used, whereas DSUSD may have a significant need for the property in order to develop an additional school. Responding to question, Councilman Jonathan shared Indio also had boundaries for two different school districts within the City; DSUSD and Coachella Valley Unified School District (CVUSD), and gave a specific example where a person's neighborhood was split by the boundary lines, with the homes on each side of the same street falling into different districts. The residents ultimately petitioned to move the entire neighborhood to one district. He recommended forming a subcommittee composed of two councilmembers and volunteered to participate and work with staff to further explore the work that has been done to date. He commended Mr. Firestine for the comprehensive history provided in the staff report. He suggested the goal was to find alternatives to modify the district boundaries so Palm Desert is fully contained within the boundary of DSUSD. Mayor Nestande and Councilmember Harnik volunteered to serve on the subcommittee. Mayor Pro Tern Kelly suggested that a member of the 2 x 2 committee, which consists of DSUSD staff, City staff and Councilmembers, be a part of the subcommittee to ensure communication happens consistently. Councilman Jonathan moved to, by Minute Motion, approve a subcommittee consisting of Councilman Jonathan and Mayor Nestande, along with staff, at the discretion of the City Manager, to find alternatives to modify the district boundary to only have one district (Desert Sands Unified School District for the entire City. Motion seconded by Harnik and carried by a 5-0 vote. (AYES: Harnik, Jonathan, Kelly, Weber and Nestande; NOES: None). A PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 25, 2020 XII. RESOLUTIONS A. RESOLUTION NO. 2020 - 51 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, ADOPTING A LIST OF PROJECTS FOR FISCAL YEAR 2020-2021 FUNDED BY SB 1: THE ROAD REPAIR AND ACCOUNTABILITY ACT OF 2017. Management Analyst Heather Horning presented the staff report and was available to answer questions. Mayor Pro Tern Kelly moved to waive further reading and adopt Resolution No. 2020-51. Motion was seconded by Hamik and carried by a 5-0 vote (AYES: Harnik, Jonathan, Kelly, Weber, and Nestande; NOES: None). B. RESOLUTION NO. 2020 - 52 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, AUTHORIZING THE LEVY OF A SPECIAL TAX IN COMMUNITY FACILITIES DISTRICT NO. 2005-1 (UNIVERSITY PARK) FOR FISCAL YEAR 2020-2021. Ms. Moore presented the staff report and offered to answer questions. Mayor Pro Tern Kelly moved to waive further reading and adopt Resolution No. 2020-52. Motion was seconded by Harnik and carried by a 5-0 vote (AYES: Harnik, Jonathan, Kelly, Weber, and Nestande; NOES: None) XIII. NEW BUSINESS A. REQUEST FOR ONE-YEAR CONTRACT EXTENSION TO IDEAPEDDLER TO PROVIDE MARKETING SERVICES FOR FISCAL YEAR 2020-2021 (CONTRACT NO. C37182). Tourism and Marketing Manager Thomas Soule informed the City Council of the request for a one-year contract extension to IdeaPeddler. The agency currently provides media -buying and creative services to the City. Staff has worked with this agency for the past two years and they have done some exemplary work for the City, including their work on the most recent promotional campaign. Councilmember Harnik offered she was impressed with what IdeaPeddler has done, stating she hadn't seen anyone doing the focus groups and identifying the Palm Desert brand the way that they did. She asked how they have responded to the COVID pandemic in their marketing and advertising. Mr. Soule said it has been challenging to navigate with the landscape changing every day and tourism essentially stopping and not being sure F PRELIMINARY MINUTES 01-11AF r REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 25, 2020 when it will start again. Staff has been mindful of spending the City's funds in an appropriate way, saving them for when they will be useful. The pandemic has highlighted some of the extras that IdeaPeddler provides, and through discussions, they have created a plan to move forward, staying involved with the City on many levels. Mayor Pro Tern Kelly moved to, by Minute Motion: 1) Extend the subject contract to Ideapeddler to provide marketing services for Fiscal Year 2020-2021; 2) authorize the City Attorney and the Finance Director to make clarifications to the contract related to the payment terms; and 3) authorize Mayor to execute the extension on behalf of the City. Motion was seconded by Harnik and carried by a 5-0 vote (AYES: Harnik, Jonathan, Kelly, Weber and Nestande; NOES: None). B. REQUEST FOR AWARD OF CONTRACT TO HORIZON PROFESSIONAL LANDSCAPE FOR THE DESERT WILLOW PERIMETER LANDSCAPE REHABILITATION PHASE 1 (PROJECT NO. 871-21, CONTRACT NO. C39990). Councilman Jonathan noted in the past when a project bid comes in substantially lower than any other bid, as is the case. In the past, there have been concerns about the successful low bidder coming in after the contract has been awarded, seeking change orders or charging additional fees for certain work. He asked if this would be a concern. Landscape Supervisor Randy Chavez said Horizon Professional Landscape has performed work for the City and is currently the maintenance contractor for Desert Willow. The company has some knowledge of what the job requires and provides a level of comfort with this award. Councilman Jonathan moved to, by Minute Motion: 1) Award subject contract to Horizon Professional Landscape, Coachella, California, for the Desert Willow Perimeter Landscape Rehabilitation Phase 1, in the amount of $198,565; 2) authorize Director of Finance to set aside a contingency in the amount of $20,000 for unanticipated conditions; 3) authorize the City Manager or designee to review and approve written requests for the use of contingency, per Palm Desert Municipal Code Section 3.30.170(A); 4) authorize the Mayor to execute the subject Agreement - funds are available in Account No. 4414195- 4809200, Golf Capital. Motion was seconded by Harnik and carried by a 5-0 vote (AYES: Harnik, Jonathan, Kelly, Weber, and Nestande; NOES: None). C. REQUEST FOR ADOPTION OF RESOLUTION, AUTHORIZING THE SUBMITTAL OF AN APPLICATION FOR, AND RECEIPT OF, LOCAL EARLY ACTION PLANNING GRANTS PROGRAM FUNDS. Principal Planner Eric Ceja stated the Department of Housing and Urban Development (HUD) has issued a Notice of Availability for the Local Early Action Planning (LEAP) program. This program is intended to streamline and PRELIMINARY MINUTES RAFT REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 25, 2020 accelerate housing production throughout California and the City is eligible for up to $150,000. Staff has identified a number of uses for these funds including design guidelines, potential code and zoning ordinance updates, and potentially rezoning residential properties. The applications are due next Wednesday, and in order to apply for the grant, the City must adopt a resolution in support of the application. Councilmember Harnik said she loved the idea of getting grants and looking at this grant for the seven categories in the staff report that can be considered eligible, she noted she really liked some, and others she would want to amend. She asked if the opportunity to make changes would be presented after a grant is awarded. Mr. Ceja answered the grant would be awarded on the basis of what was requested in the application. He noted some cities have been successful in renegotiating what those funds can be used for. He stated as long as the City is in pursuit of the State's objectives to accelerate and promote housing production, those funds could potentially be reprogrammed. Mr. Stendell noted Council would get an opportunity to review and make changes as needed. Councilman Jonathan noted relative to the objective specifying custom site plans and pre -approved Accessory Dwelling Unit (ADU) plans, there was a recent article in the "Western City" publication where a city had some success. He asked if Mr. Ceja thought there might be something like that in Palm Desert where pre -approved plans or architectural drawings are made available to somebody wanting to build an ADU. Mr. Ceja said that would be the aim for this particular item so that the ADUs become over the counter, off the shelf -type plans available from the City. Councilmember Harnik moved to waive further reading and adopt Resolution No. 2020 - 53, authorizing the submittal of an application for, and receipt of, Local Early Action Planning (LEAP) Grants Program Funds administered by the California Department of Housing and Community Development (HCD) in order to seek funding in the amount of $150,000 or any amount eligible for use in developing objective design standards for residential housing development, including Accessory Dwelling Units (ADU), rezoning of certain residentially zoned properties to allow for greater density, provide environmental clearances for specific residentially zoned properties, and other actions which advance programs identified in the updated Housing Element; 2) By Minute Motion: a) authorize the Mayor or the City Manager to execute any documents that may be necessary to facilitate the application or award; b) If awarded, authorize Director of Finance to appropriate funding necessary to administer the grant. Motion was seconded by Kelly and carried by a 5-0 vote (AYES: Harnik, Jonathan, Kelly, Weber, and Nestande; NOES: None). Ee PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 25, 2020 D. REQUEST FOR REVIEW AND APPROVAL OF OUTSIDE AGENCY FUNDING FOR FISCAL YEAR 2020-2021. Ms. Moore provided the staff report, noting the application was made available in January 2020, and extensive outreach was done including through Regional Access Project (RAP). She said 29 applications were received, and requests totaled more than the anticipated budget. Recommendations were made to the Committee at a meeting in May, and they are contained in the staff report. Councilman Jonathan supported the Committee's recommendation and asked that the City Council reconsider the request for funding for Zero - The End of Prostate Cancer. He noted the five-year survival rate for men with prostate cancer when diagnosed appropriately and early, and if not, the five-year survival rate drops to 31 %. He shared prostate cancer is the second -most common cancer amongst men behind skin cancer. He applauded the causes and organizations that the City supports such as Paint El Paseo Pink, the Ophelia Project, Women's Marathon, and highlighted there is not a similar event for men supported by the City and this is an opportunity to do that. He suggested a modest allocation could be considered as a token of support. Ms. Moore noted this particular request for funding was to support their event, so it was transferred for consideration under Special Events. It is on their list for review. Mayor Pro Tern Kelly indicated that the sole reason it was not considered under the Outside Agency grant program is because they are requesting funds for an event and it was appropriate to allow it to be reviewed through the proper channels. She noted the Minutes of the subcommittee meeting reflected this. Councilmember Harnik recalled filling out applications for Outside Agency funding and it was typically to support a program or service. She asked if this request would qualify for sponsorship funding and Ms. Moore replied it would. She noted if it were possible, the City Council would support everything. She expressed disappointment that Lincoln Elementary once again did not submit an application. Ms. Moore clarified that if an event such as the one requested is approved for funding from the City, staff would confirm the event was going to take place. She noted that in a prior year, an event was converted to a virtual event and the organization was able to modify their use of funds. She communicated that staff will be looking at those types of events, and 10 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 25, 2020 depending on what modifications are proposed, as long as it is consistent with the Committee's recommendation it will be honored. Mayor Pro Tern Kelly moved to, by Minute Motion: 1) Approve the award of Outside Agency contributions in the amount of $159,681 to the agencies listed herein with associated restrictions and conditions, including confirmation of the event prior to distribution, if applicable; 2) authorize the City Manager to consider alternative requests during the year provided it is consistent with the original request; and 3) pending approval of the Fiscal Year 2020-2021 City of Palm Desert Financial Plan, authorize the City Manager to execute any documents necessary to effectuate the actions taken herewith. Motion seconded by Harnik. With Councilmember Weber registering her abstention on grant funding Item No. 14 (Historical Society) and a vote of 4-0-1 (AYES: Harnik, Jonathan, Kelly, and Nestande; NOES: None; ABSTAIN: Weber), the remainder of staff's recommendation was approved and carried by a 5-0 vote (AYES: Harnik, Jonathan, Kelly, Weber, and Nestande; NOES: None). E. REQUEST FOR APPROVAL OF AMENDMENT NO. 2 TO CONTRACT NO. C273306, REIMBURSEMENT AGREEMENT WITH COACHELLA VALLEY ASSOCIATION OF GOVERNMENTS (CVAG) AND THE COUNTY OF RIVERSIDE FOR THE DESIGN AND RIGHT-OF-WAY PHASES OF THE PORTOLA AVENUE/INTERSTATE-10 INTERCHANGE PROJECT. Mr. Garcia was joined by Tom Kirk, Martin Magana and Jonathan Hoit from CVAG who would be able to answer any questions. He provided a short history of the project, stating the City and CVAG entered into a funding agreement for the interchange project on February 8, 2008. This agreement had a 75/25 funding split, and CVAG funding was capped at $54,075,000. The City's contribution was 25% of the project costs with no cap, which means any cost overruns would be funded by the City. The funding split was based on the original cost estimate of $72.1 million. CVAG, the City and the County of Riverside amended the agreement to establish the County as the project lead. It also established a five-year deadline to begin construction, which would have been this year. On June 1, 2020, CVAG presented Amendment No. 2 to the Transportation Committee which would extend the funding agreement for one year for design, right-of-way and utility relocation only. The current cost estimate for the interchange is now $110,924,000. He noted that under the existing agreement, with the construction funding from CVAG included, there is a shortfall of $35,574,000. Under Amendment No. 2, this deficit increases to $70,228,000. The project design is nearly complete, and right-of-way acquisition is in ongoing negotiation between the City and Union Pacific Railroad. He went on to say the City has been invoiced $883,900 by CVAG to date for the project. The City has identified funding for the project which included $15 million in Capital Project funds and $5 million in Measure A funds. He directed the City Council to the staff report to review the tables provided, and recommended approval of Amendment No. 2. 11 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 25, 2020 MR. TOM KIRK, Executive Director of Coachella Valley Association of Governments (CVAG), noted he would be having this conversation with multiple jurisdictions in the Coachella Valley regarding many projects. Councilman Jonathan noted under the previous funding agreement the City would be required to come up with funding in the approximate amount of $18 million. With this amendment, the total grew from $72 million to $111 million and what is proposed is CVAG's commitment would go down from $54 million to roughly $19 million, meaning the funding shortage grows to $70 million. Mr. Garcia responded this would be financial impact of Amendment No. 2. He pointed out CVAG is also doing a funding assessment which will identify project needs and available funding resources in the region and he is confident this will be an ongoing conversation on how this and other projects will secure construction funding. MR. KIRK added the way funding for transportation project in California works is a little bizarre. He noted that CVAG as a local agency tells the State that they have all the funding necessary while asking for funding, so in order to proceed with a big project on an interstate, they have to say they have the funding even though they do not. He noted that years ago, the State used to build the various sections of the interstate, whereas today it is largely local agencies like CVAG, the County and the City that take on these projects. He pointed out that when looking back on the original agreement, there was a commitment to fund the entire project, but there was never an expectation. He noted that for every dollar of CVAG funding in a project, they are seeking anywhere from $3 to $6 from outside the region. He said that for the six interchange projects built on Interstate 10 over the last ten years, CVAG spent an average of $10 million per interchange, and the most was $20 million. He noted CVAG never intends on fully funding projects by the cities and CVAG, they intend to use CVAG's money as leverage to get other State and Federal funding. The sad story on this, the financial analysis, one aspect of it is that over the next five years, the State of California has given $4.5 million to spend across the entire region on major projects. It used to be they would receive $20 to $30 million at a time to build interchange projects. The world is a very different place, and he hopes Federal government will provide funding from the infrastructure bill, although he still sees it being a challenge moving forward. Councilman Jonathan stated he understood the funding world has shifted monumentally, and there is also a universal understanding that infrastructure is a huge issue throughout the country and particularly in California where gas lines and water pipes are breaking, bridges failing, freeways in need of repair, among a host of other issues. He asked if City staff or CVAG would 12 PRELIMINARY MINUTES CRAFT REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 25, 2020 begin the process of seeking funding for the $70 million shortage when funds became available. MR. KIRK responded the City Council and staff and others all have a responsibility to find the funding. The City, County, CVAG and RCTC all want to build this project and many others throughout the area, and seeking money for the project is key to getting it delivered and it is everyone's responsibility. Councilmember Harnik noted the biggest hope is for Federal stimulus funds as a result of the COVID event. She pointed out the City has wanted to build the Portola interchange for a long time, and currently the State does not distribute much funding for capacity building as noted by Mr. Kirk. The funds has been shifted towards the active transportation projects. She added the Transportation Uniform Mitigation Fee (TUMF) has also been affected, as has Measure A which is generated by sales tax. The City would usually use all of those funds. She referred to Amendment No. 1 from April 2016, and stated on the Transportation Priority Projects (TPPs) list, Portola interchange is not at the top as far as real need, and there are other projects that would take priority. For that reason, the City will have the responsibility to bring in the necessary funds as other funds will likely be directed to higher priority projects. On the list for 2015 TPPs, the Portola project was listed at $95 million, and it is likely as a result of negotiations with Union Pacific that the project is closer to $120 million. Mayor Pro Tern Kelly asked if the proposed amendment allows the City to complete the work to situate this project as "shovel -ready" to take advantages of whatever funds become available. She indicated this should be the focus at this time. Mr. Garcia responded the goal is to make this project ready to go so that agencies providing funds would have a level of comfort in funding a project that is ready to begin immediately rather than one that still needed the groundwork done. Councilman Jonathan agreed with Mayor Pro Tern Kelly, and also noted he did not believe the short-term and long-term goals were mutually exclusive. He supported moving the project forward while focusing on the $70 million funding. He noted the issue with TPPs is one area of focus is traffic counts, and he felt Portola interchange was more important than traffic counts as it has already been instrumental in attracting developers, and will be in the future for University Park and making CSUSB a standalone Palm Desert campus more likely, as well as housing for students and staff. He supports staff recommendation and asked to include the proviso that Council direct staff to begin working immediately in collaboration with CVAG to seek funding sources and to be vigilant for when they may come up. 13 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 25, 2020 Councilman Jonathan moved to, by Minute Motion: 1) Approve Amendment No. 2 to Contract No. C27330B, the Reimbursement Agreement with CVAG and the County of Riverside for the design, right-of-way, and construction phases of the Portola Avenue/Interstate-10 Project; 2) authorize the Mayor to execute the Agreement, with direction to staff to immediately work in collaboration with CVAG to start seeking funding sources, whether they exist or not, making the project shovel ready for when funding sources become available. In essence, staying focused on the goal of getting the Portola Avenue/Interstate-10 Interchange Project built. Motion was seconded by Kelly and carried by a 5-0 vote (AYES: Harnik, Jonathan, Kelly, Weber, and Nestande; NOES: None). Councilman Jonathan noted this item was on the CVAG's Executive Committee agenda on Monday's Meeting (June 29), he wanted to know if his colleagues had any comments or concerns, before he votes on the matter on Monday. Councilmember Harnik agreed to get the project shovel ready. F. REQUEST FOR APPROVAL OF ACTIONS RELATIVE TO THE 2020 GENERAL MUNICIPAL ELECTION TO BE HELD IN THE CITY OF PALM DESERT ON TUESDAY, NOVEMBER 3, 2020. Mayor Nestande noted that due to a conflict of interest on this item for three of the five members of the City Council, the procedure to draw straws or something similar would be used to determine which of the three would take part in the discussion and vote in order to maintain a quorum of the City Council. Mr. Hargreaves indicated the entire City Council could act on the first two sections of this item, and would address the conflict issues on the third section. Mayor Pro Tern Kelly moved to waive further reading and adopt: 1) Resolution No. 2020-54, calling for the holding of a General Municipal Election to be held on Tuesday, November 3, 2020, for the election of certain officers as required by the provision of the Laws of the State of California and the Charter of the City of Palm Desert; and 2) Resolution No. 2020-55, requesting the Board of Supervisors of the County of Riverside to consolidate a General Municipal Election to be held on Tuesday, November 3, 2020, with the Statewide General Election to be held on the date pursuant to §10403 of the Elections Code. Motion was seconded by Jonathan and carried by a 5-0 vote (AYES: Harnik, Jonathan, Kelly, Weber, and Nestande; NOES: None). Councilmember Weber recused herself due to a conflict of interest and left the meeting for the remainder of this item. Mr. Hargreaves noted the third section of this item entails a potential waiver of candidate statement fees which are the fees a candidate would pay to have their statement included in the ballot and materials, and are 14 Vt DRA PRELIMINARY MINUTES FT REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 25, 2020 approximately $500. Three Councilmembers are eligible to run for re-election who may or may not get the advantage of any fee waiver as a result of this item, so it creates a potential conflict of interest. Councilmember Weber agreed to recuse herself, and either Mayor Nestande or Mayor Pro Tern Kelly should be selected to go forward and participate. He noted that the typical procedure is to draw straws; however, given the virtual set-up of this meeting, he offered a dice roll and asked Mayor Nestande and Mayor Pro Tern Kelly to select odd or even numbers. The dice was rolled and landed on "three," and with Mayor Pro Tern Kelly choosing odd numbers, she was selected to participate in this item. Mayor Nestande recused herself. Mayor Pro Tern Kelly indicated there were two proposals in front of the City Council for consideration. Option A states candidates are responsible for costs associated with candidate statements unless income qualified, and Option B states the City is responsible for costs associated with candidate statements. Councilman Jonathan stated the present system has worked and the responsibility lies with the candidate. He noted it is generally affordable and he did not see a need to change the current practice, opting for Option A. Councilmember Harnik asked what brought about the idea that it should perhaps be changed. Ms. Rocha noted Councilmember Weber had asked this be a request for action at an earlier Council meeting. Councilmember Harnik indicated she would select Option A. Councilman Jonathan moved to adopt Resolution No. 2020-56 adopting regulations for candidates for elective office pertaining to candidates' statements submitted to the voters at an Election to be held on Tuesday, November 3, 2020, Option A, Candidates are responsible for costs associated with candidate statements, unless income qualified (indigent status). Motion seconded by Harnik and carried by a 3-0 vote (AYES: Harnik, Jonathan, and Kelly; NOES: None; ABSENT: Weber and Nestande). G. REQUEST FOR DIRECTION ON THE RESUMPTION OF IN -PERSON CITY COUNCIL AND COMMITTEE AND COMMISSION MEETINGS. Ms. Aylaian reported this is an issue that was brought before the City Council as a matter of policy to determine the guidance regarding the conduct of meetings. Since Governor Newsom's stay-at-home order on March 19, there has been increased focus on how to conduct meetings for the public safely. It required the City to change its method of performing business and interacting with the public. Initially City Council continued to conduct meetings, and committees and commissions were paused in order to obtain 15 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 25, 2020 the technology necessary to resume meetings. Since then, virtual meetings have resumed for the Planning Commission, Architectural Review Commission, El Paseo Business Improvement District, Parks and Recreation Commission and several other committees. The question now is when the City Council would direct that in -person meetings resume. One consideration in making the staff recommendation is staff has been preparing to return more employees to the workplace beginning June 29. At this point, however, it is not anticipated more workers will return because the necessary safety materials are not in place in order to open safely. It is important to ensure City Hall is a safe place to conduct business for both staff and members of the public. Currently 30% of City staff is working at City Hall in rotating and alternating shifts. Most people assigned to City Hall have worked here over the last couple of months. Additionally, a COVID-19 exposure control plan has been developed, which is how business will be conducted when more staff members resume and when the public visits City Hall. Part of the plan includes how meetings will be conducted. She noted it is not anticipated that many will want to return to City Hall, as many agencies have found that business can be conducted remotely and it can carry on its normal business without face-to-face interaction although the desire is to stay connected to the public and provide access to staff members to assist them with their questions. The plan addresses how many people can participate in meetings in various meeting rooms while allowing for appropriate social distancing. She noted aside from the Council Chamber, any other meeting room at City Hall should have no more than five people present. Committee and Commission meetings would all have more than five people when including members and staff along with any members of the public who may wish to attend, so staff recommends these meetings continue using video or teleconferencing technology until such time as the distancing requirements can be relaxed. She also requested direction from the City Council as to when Council meetings and study sessions should resume in person in the Council Chamber. She said its staff's recommendation not to resume at this point due to the COVID case testing indicating COVID-19 cases has not yet reached a point where staff would want to increase exposure to the public. Since it is a policy decision, Council can determine if and when it would like meetings to resume and any additional precautions beyond those contained in the COVID-19 plan that Council would recommend be implemented forthe safety of the public and for staff. Councilmember Harnik asked about the distance was from seat to seat on the dais, and the response was approximately three feet, and maybe four feet at most. She noted she looked forward to having live public meetings so the public can be engaged. She stated the meetings should continue virtually until further notice because the Council needs solid facts on which to base the decision and it does not seem those facts exist just yet. 16 Lj PRELIMINARY MINUTES 1 FAT' REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 25, 2020 Councilman Jonathan echoed Councilmember Hamik's sentiment, stating he was also looking forward to seeing people, shaking hands and talking face to face but this is not the time. He agreed with staff's recommendation and offered to go a step further and make it clear for planning purposes that in - person meetings would not happen until at least September at the very earliest. Mayor Pro Tern Kelly stated as appealing as it is to return to the Council Chamber, she cautioned not to be over -eager because part of what is being experienced now with increased infections could be attributed to people being over -eager. She noted it is difficult for her to conceptualize a logistical setting of the Council Chamber that would be reassuring, so she did not believe it was possible to say that September 1 would even be feasible. Councilmember Weber stated she did not hear a specific staff recommendation; rather, she heard that staff was not ready and was not able to open on June 29 as previously anticipated. Councilman Jonathan responded he was referring to the written staff report where staff recommended the Committee and Commission meetings continue to meet using video or teleconference until such time that these requirements can be relaxed. Mayor Nestande noted she would vote in favor, but for different reasons than her colleagues. When questioned, she responded she wanted to continue Zoom meetings until it is no longer mandated to wear a mask and continue social distancing, and it should be when the Governor and the County say it is no longer necessary to have those measures in place. Councilman Jonathan moved to, by Minute Motion, approve Committee and Commission meetings to continue to meet using video or teleconference until social distancing requirements can be relaxed, and the resumption of in -person City Council meetings, in any event, shall not occur prior to September 1, 2020. Motion was seconded by Kelly and carried by a 5-0 vote (AYES: Harnik, Jonathan, Kelly, Weber, and Nestande; NOES: None). XIV. CONTINUED BUSINESS None XV. OLD BUSINESS None 17 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 25, 2020 XVI. PUBLIC HEARINGS A. REQUEST FOR APPROVAL OF THE FINAL ENGINEER'S ANNUAL LEVY REPORT FOR, AND THE LEVY AND COLLECTION OF ANNUAL ASSESSMENTS WITHIN, CONSOLIDATED PALM DESERT LANDSCAPING & LIGHTING MAINTENANCE DISTRICT NO. 1 FOR FISCAL YEAR 2020-2021. Councilmember Weber recused herself from this item as she resides within the district. Deputy City Treasurer Thomas Metz stated this public hearing is a follow-up to the intent hearing of June 11, 2020 for Consolidated Palm Desert Landscape and Lighting Maintenance District No. 1 (LLD No. 1) for fiscal year 2020-2021. He noted staff recommends approval of both resolutions for this item. Mayor Nestande declared the public hearing open and invited public testimony FAVORING or OPPOSING this matter. With no public testimony offered, she declared the public hearing closed. Councilman Jonathan moved to, by Minute Motion: 1) Waive further reading and adopt Resolution No. 2020 - 57, approving the final Engineer's Annual Levy Report for Consolidated Palm Desert Landscaping & Lighting Maintenance District No. 1 for Fiscal Year 2020-2021; and 2) Waive further reading and adopt Resolution No. 2020 - 58, ordering the levy and collection of annual assessments within Consolidated Palm Desert Landscaping & Lighting Maintenance District No. 1 for Fiscal Year 2020-2021. Motion was seconded by Kelly and carried by a 4-0 vote (AYES: Harnik, Jonathan, Kelly and Nestande; NOES: None; ABSENT: Weber). B. REQUEST FOR APPROVAL OF THE FINAL ENGINEER'S REPORT FOR, AND THE LEVY AND COLLECTION OF ANNUAL ASSESSMENTS WITHIN, CITY OF PALM DESERT BENEFIT ASSESSMENT DISTRICT NO. 1 FOR FISCAL YEAR 2020-2021. Deputy City Treasurer Thomas Metz stated this public hearing is a follow-up to the intent hearing of June 11, 2020, for Palm Desert Benefit Assessment District No. 1 for fiscal year 2020-2021. He noted staff recommends approval of the resolution for this item. Mayor Nestande declared the public hearing open and invited public testimony FAVORING or OPPOSING this matter. With no public testimony offered, she declared the public hearing closed. lu PRELIMINARY MINUTES ®RAFT REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 25, 2020 Mayor Pro Tern Kelly moved to waive further reading and adopt Resolution No. 2020 - 59, approving the final Engineer's Annual Levy Reportfor, and ordering the levy and collection of assessments within, City of Palm Desert Benefit Assessment District No. 1 for Fiscal Year 2020-2021, pursuant to the provisions of the Benefit Assessment Act of 1982. Motion was seconded by Harnik and carried by a 5-0 vote (AYES: Harnik, Jonathan, Kelly, Weber, and Nestande; NOES: None). C. REQUEST FOR APPROVAL OF RESOLUTIONS RELATED TO THE ADOPTION OF THE FISCAL YEAR 2020-2021 BUDGET AND CAPITAL IMPROVEMENT PROGRAM (JOINT CONSIDERATION WITH THE PALM DESERT HOUSING AUTHORITY). Ms. Moore stated the financial plan contained the operating budgets for all of the City's governmental funds including the General Fund, Housing Authority, and the Capital Improvement Program. Since the General Fund is the primary fund used to fund the daily operations of the City, she focused her report on this item in particular. She provided an overview of the General Fund budget, stating the estimated revenues were approximately $48.6 million, and estimated expenditures were $58.8 million, resulting in an estimated shortfall of $10.1 million. In April and May 2020, the City Council had three study sessions to discuss the impacts of the COVID-19 pandemic on the City's current year budget as well as the loss of revenue on the upcoming fiscal year's budget. The study session also included in-depth conversation about the current status of the City's goals and projects, departmental budgets, staff vacancies, public safety, economic development and sponsored events. Also at its meeting of May 14, 2020, the City Council directed staff to make efficiencies and adjustments to the public safety budgets. These resulted in an increase in the cost of Fire services, and a decrease in cost for Police Services. She went on to discuss the revenue comparison for FY 2019-2020 and FY 2020-2021, noting the difference of approximately $12 million with sales tax and transient occupancy tax being two categories with a significantly reduced revenue. She also noted a 3% decrease in expenditures, mainly in the category of police services. Due to the shortfall, staff is requesting to use the General Fund reserves to meet obligations to City operations at the end of FY 2020-2021. At that time, staff will provide recommendations to the City Council relative to which reserve categories could be used to cover the shortfall. She noted the importance of the contingency and emergency reserves remaining available. COVID-19 is not the emergency anticipated and would instead have expected an earthquake or similar emergency. She recommended not using those particular reserves in the event another type of emergency occurred. Staff intends to present quarterly reports to the City Council in order to share any significant changes in revenue or expenditure projections. She noted the numbers change daily, and staff would need an opportunity to review the information to bring to the Council as soon as feasible. She called attention to the a -mails received relative to funding for police. Some were included in 19 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 25, 2020 the Council packet, and some were sent directly to Council and did not address this specific item. These a -mails are part of the public record. Mayor/Chairman Nestande asked for the best -case scenario relative to the shortfall should all sales tax revenue come in. Ms. Moore noted staff is projecting a 25% reduction, or approximately $5 million. If everything anticipated for this year were received next year, it would cut the reduction in half. She cautioned staff has not seen a good indication as to what the benefits of online shopping might be yet. Anything purchased online is based on a certain threshold. She said online retailers have to pay sales tax to the State of California. It is divided between the cities and counties based on what sales tax per capita is. The issue is Palm Desert stores were closed, so staff is unsure of the effect this will have on pooled revenue. Councilman/Member Jonathan referred to the budget comparison and noted most revenue items have significant decreases. He noted the Interfund Transfers Out shows a 21 % increase and asked to confirm if a significant portion of this is for fire services. He also asked what the amount was and how it compared to the prior year. Ms. Moore answered the amount was $3.8 million, and the prior year was $3 million. Councilman/Member Jonathan noted police services were successfully reduced, but the fire costs increased by almost $1 million. Councilmember/Member Weber commented she noticed many of the comments received were not to reduce police services. She noted it should be made very clear to the public that the City is not significantly cutting back on police services and are certainly not defunding them in any manner. The City prides itself on its public safety and it should be mentioned so there is no misunderstanding about what is taking place. Mayor/Chairman Nestande asked for Public Information Officer David Hermann to issue a press release to ensure the public is made aware. Mayor Pro TemNice Chairman Kelly pointed out that what is presented in this report is a perfect example of smart police budgeting. With the collaboration of law enforcement, functions have been identified that are better performed by Community Service Officers (CSOs) that has resulted in a reduction of costs. Councilman/Member Jonathan agreed with Mayor Pro TemNice Chairman Kelly's position, and thanked Captain Belli and Lieutenant Martello for being 20 PRELIMINARY MINUTES AFT REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 25, 2020 part of the process to come up with ways to cut costs without impacting public safety, noting this was largely done through not hiring for vacant positions, consolidating other positions and through using CSOs. He also thanked Ms. Moore and the Finance Department, noting we are fortunate to be able to function at 100% in this City, largely thanks to staff and the wise City Councils that came before that added to the reserves every year. This year the City is the beneficiaries of that wisdom and foresight. He highlighted this budget has realistic expectations of greatly reduced revenues and has cut expenses everywhere possible without impacting the services the City provides while using as little of the reserves as possible. Councilmember/Member Harnik commended the entire City Council and staff for everything they have done in a very prudent fashion. She emphasized the movement to defund the police is one that the City is not entertaining, stating the City respects public safety and what they have done for the community. She mentioned she has requested to have a study session with the Police to truly understand the best way to go about adjusting as the City moves forward. She noted one thing people always expect from Palm Desert is safety, and the City Council and staff makes sure those expectations are fulfilled. She understands the uncertainty, frustration, and fear she is hearing, but the community should feel assured the City is doing its best to keep them safe. Councilmember/Member Weber also extended thanks to the Finance Department for working hard on this budget. As pointed out, this is a very fluid situation, so trying to nail down the budget was quite a challenge. Mayor/Chairman Nestande declared the public hearing open and invited public testimony FAVORING or OPPOSING this matter. With no public testimony offered, she declared the public hearing closed. Councilman/Member Jonathan moved to: 1) Waive further reading and adopt Resolution No. 2020 - 60, adopting the budget and Capital Improvement Program (CIP) for the Fiscal Year July 1, 2020, through June 30, 2021, and authorizing the use of General Fund reserves, to the extent needed, to cover any revenue shortfall; 2) Waive further reading and adopt Resolution No. 2020 - 61, establishing the Appropriation Limit for Fiscal Year 2020-2021; 3) Waive further reading and adopt Resolution No. HA - 96, adopting a Palm Desert Housing Authority Budget for the Fiscal Year July 1, 2020, through June 30, 2021; 4) Waive further reading and adopt Resolution No. 2020 - 62, the Staffing Allocation and Salaries Resolution, setting the Fiscal Year 2020-2021 Salary Schedules, Salary Ranges and Allocated Classifications; and 5) by Minute Motion, approve Out -of - State Travel as listed in attached memorandum. Motion was seconded by Kelly and carried by a 5-0 vote (AYES: Harnik, Jonathan, Kelly, Weber and Nestande; NOES: None). 21 PRELIMINARY MINUTES ®RAFT REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 25, 2020 XVII. 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. Desert Communitv Enerav (DCE) - reported the City of Palm Springs had its launch and it's complete. The results are that they enrolled 40,618 customers, representing 92% of their residents and businesses. Nearly 95% of those enrolled elected the higher green option (100% carbon -free). The way the numbers worked out, the Desert Saver Option is costing 2.9% less than Southern California Energy (SCE). Those that elected the 100% carbon -free option, the cost is about 2.4% more, but it's still 2.6% below the comparable option offered by SCE. Finally, the DCE Board adopted a budget for next fiscal year and it's anticipating a $1.2 million surplus, which will go into a reserve until it hits the target level. C. Mavor Pro Tem Kathleen Kellv Committee Reports and General Comments. 1►=9 " D. Councilmember Susan Marie Weber Committee Reports and General Comments. Committee/Commission Subcommittee - thanked Management Analyst Chris Gerry for coordinating meetings with herself, Mayor Pro Tem Kelly, City Manager, and Assistant City Manager to resume discussions on whom, what, and why the City has them. E Mavor Gina Nestande Committee Reports and General Comments. None F. City Council Reauests for Action. None 22 PRELIMINARY MINUTES AFT REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 25, 2020 XVIII. STAFF REPORTS AND REMARKS A. City Manager Reminder: The Fourth of July Independence Celebration will be different from what has been provided in the past. It will be a patriotic listening party that will start at 9:00 p.m. on July 4, by tuning to the radio on 98.5 or 92.7. You will be treated to patriotic music throughout the evening. She invited everyone to step out in the yard and crank up the sound so that everyone can hear patriotic music throughout Palm Desert. B. City Attorney None C. City Clerk None XIX. ADJOURNMENT With City Council concurrence, Mayor Nestande adjourned the meeting at 6:26 p.m. ATTEST: GINA NESTANDE, MAYOR GRACE L. ROCHA, ACTING CITY CLERK CITY OF PALM DESERT, CALIFORNIA 23