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HomeMy WebLinkAboutPrelim Minutes - CC Special Mtg 07/23/2020PRELIMINARY MINUTES SPECIAL MEETING PALM DESERT CITY COUNCIL THURSDAY, JULY 23, 2020 — 4:00 P.M. Virtual Meeting 1. CALL TO ORDER - 4:00 P.M. Mayor Nestande convened the meeting at 4:00 p.m. ROLL CALL All Councilmembers and those listed as present participated via 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 Martin Alvarez, Director of Economic Development Janet M. Moore, Director of Finance/City Treasurer M. Gloria Sanchez, Acting Deputy City Clerk III. ORAL COMMUNICATIONS MR. KIM FLOYD, Palm Desert, CA, submitted an e-mail containing a resolution and asked that the City Council consider adopting a resolution recognizing that systemic racism is a human rights and public health crisis which results in disparities in family stability, health and mental wellness, education, employment, environmental justice, economic development, transportation, public safety, incarceration and housing, and affirms its commitment to advancing justice, equity, diversity and inclusion in the City. He asked that a special committee be formed including community members to review City policies and procedures to make revisions to ensure equity and inclusion. He also recommended Council review the existing policing contract to ensure justice and equity. MR. NICHOLAS LACKOVIC, Via Fonda, Palm Desert, CA, spoke by telephone relative to the Short Term Rental (STR) issues and the designation of Hovley West as a PR zone. He suggested it be rezoned to R1. He acknowledged the City's budget shortfall and recognized the importance of STRs to the budget, and also expressed appreciation to the City Council for all the work done. He noted the area is amazing and he could not be PRELIMINARY MINUTES SPECIAL MEETING OF THE PALM DESERT CITY COUNCIL J U LY 23, 2020 more proud of the City itself. He shared there are two STRs in the immediate vicinity of his home, and there are a couple more that are in the permitting stage. He noted there have been some large parties at the STRs to which the Code Compliance officers responded quickly and he complimented them on their efforts. He has spoken with the property owners about his concerns with mixed results. He said he would like the area to be rezoned, understanding it does come at a cost and with a lot of work. He recommended a dedicated area for STRs as a long-term solution, and suggested the open land in and around Santa Rosa Golf Club. IV. NEW BUSINESS A. REQUEST FOR APPROVAL OF REVISED BYLAWS AND FUNDING AGREEMENT FOR PRIORITY ONE COACHELLA VALLEY. Mr. Alvarez stated approval of the revised bylaws will allow the City to move the Priority One Coachella Valley (P1 CV) forward with efforts to attract the first stand- alone California State University in Palm Desert. The first step of amending the bylaws will create a stand-alone entity fully separate from the City. The key changes to the draft bylaws are to increase membership from 5 to 7, of which 3 members are City representatives. One member would represent the Greater Palm Springs Convention and Visitors Bureau (CVB), one from Coachella Valley Economic Partnership (CVEP), and two from the community at large appointed by the P1 CV board. He added that the entity would be subject to the Brown Act. During the discussion of the bylaws, Councilmember Harnik pointed out there were additional changes discussed at the most recent Board meeting and asked if those changes were made on the by-laws. Mr. Hargreaves acknowledged there were requests made at the Board meeting, stating there were some concerns with respect to the proxy issue both under the Brown act and the incorporations code. He highlighted one of the proposed changes that was included is to remove the City Council from the approval of bylaw changes. Once the current bylaw amendments are made, the P1 CV Board can make any additional changes without further approval from the City Council. He noted if the item is approved by Council tonight, any future concerns relative to the bylaws can be addressed by the Board at a future meeting. Councilmember Harnik noted there were numerous abbreviations used for Priority One Coachella Valley such as POCV, P1 CV, Priority One CV. She stated consistency throughout the documents is necessary. Senior Development Analyst Wayne Olson said the Articles of Incorporation list the entity as Priority One Coachella Valley, which has traditionally been abbreviated as P1 CV. PRELIMINARY MINUTES SPECIAL MEETING OF THE PALM DESERT CITY COUNCIL J U LY 23, 2020 Mr. Alvarez addressed the second recommendation of the staff report, which is to approve the funding agreement between P1 CV and the City. He said the City will seed $150,000 to P1 CV to start the process of moving the entity forward, and also outlines the intended purpose of the funds. The members of the Board and the subcommittee have had the opportunity to review the agreement. Councilman Jonathan indicated it was a long and interesting process which has brought the entity to a good point. He shared initially there was a question as to whether the agreement was necessary and there was some resistance to it, so staff came up with an expansive agreement and the end result is one everyone can live with. He thanked those involved in the process and shared his belief that the end goal is to ensure the funds as used as they were intended to be used by the City and by the Council, and the agreement ensures all the bases are covered. Councilmember Harnik echoed Councilman Jonathan's sentiments and agreed that the final document is one that is manageable. She asked to review Section 1.A of the funding agreement which states the agreement is made for the express purpose of providing a one-time payment of $150,000. She noted nobody on the board would want to come back and ask for additional funding but if the Board is $20,000 away from the goal, she felt the entity would be cutting itself short if it did not have the ability to come back and ask the Council to consider an award of additional funding. She also stated she felt the language in Section 1.B regarding the acknowledgment of payment was unnecessary as both parties are aware the City is not obligated to contribute any additional amounts other than the seed money. Mayor Pro Tern Kelly said she did not read the language as preventing a future payment if the Council agreed to it. Mr. Hargreaves noted the language came from the Finance Department and was intended to address a specific issue. Assistant Finance Director Luis Espinoza stated the language is there to address the fact that P1 CV is a separate entity. He noted the City is the primary contributor at this time and he has been informed that there are other contributors to follow. The language is to ensure that the City is not the majority sponsor in this organization, stating if it were, it would require that P1 CV be booked in the City's financial statements. Mr. Olson pointed out that the CVB has pledged to contribute $30,000 as of July 6, 2020, and has already contributed a portion of those funds to P1 CV. Mayor Pro Tern Kelly asked if there was anything in the agreement that would prevent the City from making a contribution of additional funds if approved by the City Council. PRELIMINARY MINUTES SPECIAL MEETING OF THE PALM DESERT CITY COUNCIL J U LY 23, 2020 Mr. Hargreaves noted there was a Certified Public Accountant ruling that if an organization or entity appears to be relying on the City for a substantial portion of its funding, the auditors can require the City to include it in its Consolidated Annual Financial Report (CAFR) and this language was specifically crafted to address this concern. Councilman Jonathan clarified the actions taken upon approval on this item would include disbursement of the check for $150,000 to P1 CV. Mayor Pro Tern Kelly moved to, by Minute Motion: 1) Approve the amended bylaws for Priority One Coachella Valley (P1 CV); 2) approve the Funding Agreement for P1 CV substantially as to form and authorize legal counsel to finalize said agreement; 3) authorize a one-time funding payment of $150,000 to P1 CV; 4) authorize the City Manager and/or Mayor to execute any documents necessary to effectuate the actions taken herewith; 5) approved the agreement identified as Contract No. C40220 (2nd Replacement). Motion was seconded by Jonathan and carried by a 5-0 vote (AYES: Harnik, Jonathan, Kelly, Weber, and Nestande; NOES: None). V. ADJOURNMENT With City Council concurrence, Mayor Nestande adjourned the Special Meeting at 4:23 p.m. GINA NESTANDE, MAYOR ATTEST: GRACE L. ROCHA, ACTING CITY CLERK CITY OF PALM DESERT, CALIFORNIA