HomeMy WebLinkAboutPrelim - CC - 02-28-2019PRELIMINARY MINUTES
REGULAR PALM DESERT CITY COUNCIL MEETING
THURSDAY, FEBRUARY 28, 2019
CIVIC CENTER COUNCIL CHAMBER
73510 FRED WARING DRIVE, PALM DESERT, CA 92260
I. CALL TO ORDER - 3:00 P.M.
Mayor Weber convened the meeting at 3:05 p.m.
II. ROLL CALL
Present:
Councilmember Jan C. Harnik
Councilman Sabby Jonathan
Councilmember Kathleen Kelly
Mayor Pro Tern Gina Nestande
Mayor Susan Marie Weber
Also Present:
Lauri Aylaian, City Manager
Robert W. Hargreaves, City Attorney
Rachelle D. Klassen, 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
Ty Davis, Division Chief, Palm Desert Fire/Riverside Co. Fire Dept./Cal Fire
Lt. Matt Martello, Asst. Chief, Palm Desert Police/Riverside Co. Sheriff's Dept.
Grace L. Rocha, Deputy City Clerk
III. ORAL COMMUNICATIONS - A (CLOSED SESSION ITEMS)
None
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IV. ADJOURN TO CLOSED SESSION
Request for Closed Session:
F9119TAM
FEBRUARY 28, 2019
A. Conference with Real Property Negotiator pursuant to Government Code
Section 54956.8:
1) Property: 45656 Mountain View Avenue, Palm Desert
Negotiating Parties:
Agency: Lauri Aylaian/City of Palm Desert
Property Owner: LeRae Britain Moeller Bush Living Trust
Under Negotiation: x Price x Terms of Payment
2) Property: 45653 Portola Avenue, Palm Desert
Negotiating Parties:
Agency: Lauri Aylaian/City of Palm Desert
Property Owner: LeRae Britain Moeller Bush Living Trust
Under Negotiation: x Price x Terms of Payment
3) Property: 1.55t Acres, SEC Fred Waring Drive/San Pablo Avenue
(APNs 627-101-002, 627-101-017, 627-101-033,
627-101-061, 627-101-062)
Negotiating Parties:
Agency: 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: 2
With City Council concurrence, Mayor Weber adjourned the meeting to Closed
Session of the City Council at 3:05 p.m. She reconvened the meeting at 4:04 p.m.
V. RECONVENE REGULAR MEETING - 4:00 P.M.
A. REPORT ON ACTION FROM CLOSED SESSION.
Mr. Hargreaves reported that the City Council voted unanimously to approve
an Exclusive Negotiation Agreement (ENA) with the Chandi Group, USA, for
the purchase and development of the parcel lot on the corner of Fred Waring
Drive and San Pablo Avenue. Copies of the agreement will be available to
the public tomorrow morning.
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VI. PLEDGE OF ALLEGIANCE TO THE FLAG OF
FEBRUARY 28, 2019
THE UNITED STATES OF AMERICA - Palm Desert Youth Committee Member
Erin Kulas
VII. INVOCATION/INSPIRATION - Councilmember Kathleen Kelly
VIII. AWARDS AND PRESENTATIONS
A. PRESENTATION TO THE CITY COUNCIL OF AN UPDATE ON
PALM DESERT YOUTH COMMITTEE ACTIVITIES BY MEMBER
ERIN KULAS.
Miss Kulas reported that yesterday the Youth Committee hosted a
Technology Day at the Joslyn Center where they assisted twelve seniors with
their computer and phone devices. An upcoming event is a party for the
students at Lincoln Elementary School. She added they actively seek
members for Youth Committee.
B. PRESENTATION OFACERTIFICATE OFACHIEVEMENT RECOGNIZING
DYLAN LE AS WINNER OF THE DESERT SANDS UNIFIED SCHOOL
DISTRICT SPELLING BEE.
On behalf of the City Council, Mayor Weber presented a Certificate of
Achievement to Master Dylan Le for winning the Desert Sands Unified
School District Spelling Bee.
When asked what was the most difficult word he had to spell, Master Le
replied "Wainscot."
C. PRESENTATION TO RECOGNIZE CITY OF PALM DESERT
COMMITTEE/COMMISSION MEMBERS FOR THEIR VOLUNTEER
SERVICE TO THE RESPECTIVE CITY LEGISLATIVE ADVISORY
BOARDS.
1. On behalf of the City Council, Mayor Weber presented the engraved
crystal clock to Ms. Katherine Hough and expressed sincere
appreciation for the 24 years of service to the City's Art In Public
Places Commission. Mayor Weber added that as the City Council
liaison to the AIPP Commission, Ms. Hough has added to her
education about art in general.
Ms. Hough graciously accepted the clock and noted she recently
retired from the Palm Springs Art Museum after 42 years as a curator.
She added that she just finished her last project at The Galen in Palm
Desert where a hundred pieces of artwork was installed for an
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upcoming fundraiser. This event will be a live auction and it's called
"ArtRageous." The collection consists of donated work from 100
artists. Funds raised will go into exhibitions and programs in the
community and for The Galen. The auction is on March 18, 2019,
but the exhibition begins tomorrow, March 1.
2. Ms. Denise Poeltler who was scheduled to be recognized for her
service on the Building Board of Appeals was unable to be present at
today's meeting for the recognition. Her engraved crystal clock will be
sent to her separately.
3. Ms. Lois Cardona who was scheduled to be recognized for her
service on the Library Promotion Committee was unable to be present
at today's meeting for the recognition. Her engraved crystal clock will
be sent to her separately.
4. On behalf of the City Council, Mayor Weber presented the engraved
crystal clock to Ms. Susan Rosenberg and expressed sincere
appreciation for her seven years of service to the Citizens'
Sustainability Committee. Mayor Weber added that Ms. Rosenberg
was involved with the Plastic Bag Ordinance in the City of Palm
Desert.
Ms. Rosenberg extended her appreciation for the recognition, adding
that when she was first appointed, she was the first woman on the
Committee, and now that she's leaving, she's encouraging other
women to join.
IX. ORAL COMMUNICATIONS - B
MR. DOUGLAS GALLOWAY, Director of Special Events forthe Palm Desert Youth
Sports Association (PDYSA), announced that Saturday, March 9, 2019, is their
annual opening day for the boys' baseball and girls' softball, which is now referred
to as "Palm Desert Field Day." The event will feature carnival for the kids, food
trucks, snow cone trucks, fire engines, police vehicles, and about 15 to 20
safety -related booths. Also, at 11:00 a.m. they will feature "Battle of the
Broadcasters Softball Game," which is a game between KESQ and the Police
Department against NBC and the Fire Department. Some of the broadcasters that
have already confirmed include: Karen Devine, Gino LaMont, Bryan Gallo, John
White, Olivia Garvey, etc. Further, weather permitting, four World War II airplanes
will fly over the event. He invited Mayor Weber to come out and participate and
hopefully be interviewed by one of the announcers at the event.
Councilmember Kelly suggested the winner take on The Desert Sun, making it a
multimedia competition.
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MR. GALLOWAY said the association would like to hold an event at the end of the
season, so if The Desert Sun is interested, they will make the offer.
Councilman Jonathan commended Mr. Galloway on the event, because he recalled
it initially started out with just baseball and softball opening day, and then the City
collaborated with the association and created a safety day, but this was taking it to
the next level.
MR. GALLOWAY appreciated the comments, stating he's hoping the broadcasting
challenge will bring awareness and exposure to encourage kids to sign up and play
each year. He added this was recreational sports for kids and he's hoping to get
more sign-ups.
X. MAYOR AND COUNCILMEMBER REPORTS & REMARKS TO THE COMMUNITY
A. Councilmember Jan C. Harnik Committee Reports and General Comments.
1. Portola Post Office Meetinq - reported that the gentleman that talked
about the issue did a great job of explaining how they would be going
about it and why the post office was closing. She understands many
people have been enjoying its convenience, but the building is owned
by a private entity, and the Federal Government was leasing it. The
Federal Government is looking for another location, and the City will
help in any way possible to facilitate in them finding one that will be
equally convenient and accessible.
2. McCallum Theatre Board Meetinq - announced that the McCallum is
the No. 1 Theatre in California for ticket sales in the months of
January, February, and March. She went on to say she was so
impressed with the Board and their expertise, including being so
generous with their resource.
3. YMCA - Dinner With a Deleqate - attended this event along with City
Manager Lauri Aylaian and Administrative Services Director Lori
Carney. This event includes youth who are involved with the program
Youth in Government. This was just another example of the things
the YMCA is involved with that impact the community.
4. Maintenance Supervisor's Association Luncheon - she pointed out
that the City's Engineer Randy Bowman made a presentation about
interior illuminated street signs. She added staff takes pride in its
beautiful City, because it shows in its streets and signals. She said
a number of City staff was in attendance, including Director of Public
Works Tom Garcia.
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5. President's Plaza - met with citizens and property owners about their
concerns on President Plaza, and they were informed that they would
be getting an updated design soon. Mr. Garcia agreed, stating the
City should be receiving the updated design on Friday, March 1.
Councilmember Harnik commented it was critical to maintain a line of
communication and keeping concerned citizens informed as the City
moves forward.
B. Councilman Sabbv Jonathan Committee Reports and General Comments.
None
C. Councilmember Kathleen Kellv Committee Reports and General Comments.
State of the Citv Presentations - complimented Mayor Weber for her
two recent State of the City -type of presentations, where she did a
superb job. She thanked the Mayor for a job well done, including staff
members who were contributing participants.
Mayor Weber thanked Director of Community Development Ryan
Stendell and Information Officer David Hermann for assisting, stating
staff is so knowledgeable about the City's operations that she couldn't
image making presentations without them.
2. Southern California Association of Governments (SCAG) - it's
important to note that SCAG is very critical to Palm Desert, because
decisions are made pertaining to housing and transportation, and for
some time, Councilmember Harnik is the representative from the
Riverside County Transportation Commission (RCTC) to SCAG.
Therefore, the City has had a presence in participating in those
decisions for quite some time. Recently, a spot opened up for the
representative from the six cities, which includes Palm Desert to the
regional council, and she is pleased to report that with the support of
her colleagues, she was selected to be that representative. Now
Palm Desert will have two representatives from the City Council
participating in different policy committees and the decision -making
process at SCAG.
Mayor Pro Tern Nestande commented she was unable to attend that
meeting to add her vote to her appointment, but Councilmember Kelly
had her support in spirit.
Mayor Weber extended her appreciation to Councilmember Kelly for
accepting, because it was going above and beyond, stating she
appreciated her service.
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D Mavor Pro Tern Gina Nestande Committee Reports and General Comments.
None
E. Mavor Susan Marie Weber Meeting Summaries Report for the Period of
January 28 - February 17, 2019.
With City Council concurrence, the Meeting Summaries Report was received and
filed.
1. Desert Sands Unified School District - reported that on February 19,
2019, the District presented the City of Palm Desert, the Historical
Society, the cities of Indian Wells and Rancho Mirage, with Certificate
of Appreciation for their participation in the annual Mini -muster
Program that takes place in October in collaboration with the Fire
Department.
F. City Council Requests for Action.
Palm Desert Country Club Update - Councilmember Harnik requested
an update on Palm Desert Country Club, because based on
correspondence she received on the Executive Course, it appears
there has been no progress.
Ms. Aylaian agreed to provide an update at the next City Council
meeting and requested Councilmember Harnik share the
correspondence with staff.
2. Burrtec Waste & Recvclinq Services - Mayor Pro Tern Nestande said
she met with Burrtec representatives, who brought to her attention
that Assembly Bill 1382 has been presented, and it deals with organic
waste material, which is also known as food. She said each city is
going to be responsible for policing food waste, because 100% of it
won't be allowed to go into the landfills. The bill will affect residents,
restaurants, grocery stores or anybody that deals with food, because
only 50% of food waste will be allowed to go into the landfills, and this
will be based on the 2014 levels, and by 2025 it will be 75%.
Additionally, Burrtec informed her it would take 200 facilities to be
able to take organic food waste, and currently there is only one. She
pointed out it took three years to expand the current facility and they
need 200 by 2020. Therefore, she requested staff reach out to
Assemblyman Chad Mays or State Senator Jeff Stone on this issue.
Ms. Aylaian said the bill is on the agenda for tomorrow with the
Legislative Review Committee. She said the committee will discuss
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and review and make a recommendation to the City Council in seeing
if it wants to weigh in, as a body, on the issue.
G. City Council Consideration of Travel Reauests/Reports.
None
XI. STAFF REPORTS AND REMARKS
A. City Manager
Citv Manaaer's Meetina Summaries Report for the Period of
February 4-15, 2019.
With City Council concurrence, the Meeting Summaries Report was received and
filed.
2. Wild Flower Festival - invited everyone to the Festival, stating it's the
first time the event will be held at the Palm Desert Civic Center Park
on Saturday, March 2, 2019. She added this was the most
spectacular year for wildflowers she's seen in her 20 to 25 years here
in the Desert.
3. Recent Rain Storm - she commended the Public Works Department,
Police, and Public Safety, for their outstanding performance during
the recent storm on Valentine's Day. She said Palm Desert
"weathered" the storm in fine form. She believed it was a reflection
on decades of investing in the City's infrastructure and maintaining it
well, such that it was ready for the challenge. She also recognized
the quick response time from staff, particularly the Corp Yard.
Mayor Weber stated Desert Willow Golf Resort held up well through
that storm, and it was one of the few courses that was not closed the
next day. Here again, it was a credit to good design, good planning,
and careful maintenance.
B. City Attorney
None
C. City Clerk
None
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D. Public Safety
1. Fire Department
None
2. Police Department
None
XII. CONSENT CALENDAR
PALM DESERT CITY COUNCIL
DRAFT
FEBRUARY 28, 2019
A. MINUTES of the Regular City Council Meeting of February 14, 2019.
Rec: Approve as presented.
B. CLAIMSAND DEMANDS AGAINST THE CITY TREASURY -Warrant Dated
1 /31 /2019.
Rec: Approve as presented.
C. CLAIMS AND DEMANDS AGAINST THE CITY/HOUSING TREASURIES -
Warrants Dated 2/1/2019 and 2/8/2019 (Joint Consideration with the
Palm Desert Housing Authority - Item N below).
Rec: Approve as presented.
D. APPLICATION FOR ALCOHOLIC BEVERAGE LICENSE by Eddie V's,
73040 El Paseo, Palm Desert.
Rec: Receive and file.
E. APPLICATION FOR ALCOHOLIC BEVERAGE LICENSE by Ramen
Musashi, 44491 Town Center Way, Suite G, Palm Desert.
Rec: Receive and file.
F. MARKETING COMMITTEE MINUTES for the Meetings of December 5,
2017, and May 22, 2018.
Rec: Receive and file.
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G. LETTER OF RESIGNATION from Paul Hietter — El Paseo Parking and
Property Improvement District Board of Directors.
Rec: Receive with sincere regret.
H. RESOLUTION NO. 2019 - 07 - A Resolution of the City Council of the City
of Palm Desert, California, Setting Forth Its Findings and Authorizing the
Destruction of Paper Records that Have Been Digitally Imaged from the
Department of Community Development/Planning, to Rely on the Electronic
Record as the Official Record - 2015 Sign Permits, Temporary Permits, and
Architectural Review Commission Agendas (Exhibit "A").
Rec: Waive further reading and adopt.
REQUEST FOR APPROVAL of Out -of -State Travel for One Staff Member
to Attend the 2019 International City/County Management Association's
(ICMA) International Regional Conference - April 18-22, 2019, in Timisoara,
Romania.
Rec: By Minute Motion, authorize out-of-state travel for one staff member
to attend the ICMA International Regional Conference to be held
April 18-22, 2019, in Timisoara, Romania - Authorized Staff Member -
Management Analyst (City Manager's Office) — there is no cost to the
City associated with this request.
J. REQUEST FOR APPROVAL of a Three -Year Professional Services
Agreement with PlanetBids for eProcurement Solutions with eBidding
(Contract No. C38220).
Rec: By Minute Motion, approve/authorize: 1) Professional Services
Agreement with PlanetBids for a three (3)-year term in the amount of
$57,586.21, with an option of two (2) additional one-year extensions;
2) City Manager, or her designee, to make any necessary budget
adjustments, appropriations, and transfers for the contract;
3) City Manager to execute the Agreement and subsequent
renewals — funds are available in the Information Technology
Software and Maintenance Account, No. 1104190-4336000.
SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY
K. MINUTES of the February 14, 2019, Regular Meeting of the Board of
Directors of the Successor Agency to the Palm Desert Redevelopment
Agency.
Rec: Approve as presented.
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L. CLAIMS AND DEMANDS AGAINST SUCCESSOR AGENCY TREASURY -
Warrants Dated 1/31/2019, 2/1/2019, and 2/8/2019.
Rec: Approve as presented.
PALM DESERT HOUSING AUTHORITY
M. MINUTES of the Housing Authority Meeting of February 14, 2019.
Rec: Approve as presented.
N. CLAIMS AND DEMANDS AGAINST THE CITY/HOUSING TREASURIES -
Warrants Dated 2/1/2019 and 2/8/2019 (Joint Consideration with the
Palm Desert City Council - Item C above).
Rec: Approve as presented.
Upon motion by Harnik, second by Nestande, and 5-0 vote of the City Council, the
Consent Calendar was approved as presented (AYES: Harnik, Jonathan, Kelly, Nestande,
and Weber; NOES: None).
XIII. CONSENT ITEMS HELD OVER
None
XIV. RESOLUTIONS
A. RESOLUTION NO. 2019 - 08-A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF PALM DESERT, CALIFORNIA, AMENDING RESOLUTION
NO. 2016-79 TO INCREASE THE FREQUENCY OF THE PALM DESERT
MARKETING COMMITTEE MEETING SCHEDULE.
Tourism & Marketing Manager Thomas Soule stated the proposed
Resolution is to increase the frequency of the meeting from quarterly to
bi-monthly.
Councilmember Harnik moved to waive further reading and adopt Resolution
No. 2019 - 08. Motion was seconded by Kelly and carried by a 5-0 vote (AYES: Harnik,
Jonathan, Kelly, Nestande, and Weber; NOES: None).
XV. ORDINANCES
A. For Introduction:
None
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B. For Adoption:
►f101Z
XVI. NEW BUSINESS
DRAFT
FEBRUARY 28, 2019
A. REQUEST FOR APPROVAL OF AN AGREEMENT BETWEEN THE
McCALLUM THEATRE AND THE CITY OF PALM DESERT AS IT
RELATES TO FUNDING OF PROGRAMMING AT THE McCALLUM
(CONTRACT NO. C38230).
Senior Management Analyst Veronica Tapia stated that at the 2018/2019
Budget Study Sessions, the City Council identified the McCallum Theatre as
an important asset and investment of the City of Palm Desert. Staff has
been working diligently to create a funding agreement to support their efforts
and came up with an agreement that has a six -year payment of $200,000
each year in exchange for some programmatic requirements. Chief among
the benefits to the City of Palm Desert is the changing of the name of the
choreography festival to "The Palm Desert International Choreography
Festival." In doing this, the marketing associated with this event will provide
awareness of Palm Desert to the public. She noted Mr. Gerhsenfeld from
the McCallum was available to answer questions.
Councilman Jonathan inquired about the term of the recognition with regard
to the choreography festival that is outlined in Exhibit "B" of the Agreement.
Ms. Tapia replied that in concept there is an annual recognition.
Councilman Jonathan asked if that was for the six years that the City
donates or is it in perpetuity, because it wasn't defined, and he preferred that
it be defined.
Ms. Tapia responded it was for the six years.
Councilmember Harnik pointed out that Exhibit "B" states, `In recognition of
the annual contribution, the City anticipates inclusion in the following:"
Councilman Jonathan agreed, but it doesn't specifically define how many
years the choreography festival will be named Palm Desert.
Ms. Tapia said it can be added, if it's not already included in the Exhibit.
Councilman Jonathan questioned what would happen if all of a sudden the
McCallum decides the choreography festival is no longer relevant or there is
a better use, because he didn't see it addressed in the Agreement.
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Mr. Hargreaves explained that under the Agreement, the McCallum is
required to provide these activities, and if something happened that it was no
longer feasible, he anticipates they would come back to the City to amend
the contract accordingly.
Ms. Aylaian added there is a clause that allows unilateral termination of the
agreement with 90-days notice. Therefore, if the McCallum was not
providing the programming the City anticipated fortheir sponsorship, the City
could choose to terminate the agreement.
Councilmember Harnik said that the following sentence in Exhibit "B" covers
that issue: Subsequently, the name "Palm Desert International
Choreography Festival" will be used to refer to the event on all signs,
publications, and marketing materials as long as a choreography festival is
held at the McCallum Theatre. Should the McCallum Theatre stop hosting
an annual choreography festival, the City of Palm Desert will retain rights to
the names "Palm Desert Choreography Festival" and "Palm Desert
International Choreography Festival."
Councilman Jonathan said he understood the City would get to keep the
names, for whatever that's worth, but if the McCallum stops doing an event
that gives the City the recognition, the Agreement does not address what
would happen. However, the City Manager just stated the City has the
option of terminating further contributions. The other question he has is that
Exhibit "B" is very general as to the development of an "instagrammable site,"
in fact, it's completely undefined. He asked if there has been any progress
in identifying that site.
MR. MITCH GERHSENFELD, President/CEO of McCallum Theatre, offered
there has been one discussion with the Marketing Committee as to what that
instagrammable moment will be. He was waiting for the agreement to be
concluded before doing some actual physical work on what that will be.
They are looking for a site at the Theatre that will identify both the McCallum
and the City. It would be a place that people would use for photos and
selfies, and then posted on Instagram, which is what the City had in mind.
Councilman Jonathan said he could not be more supportive on moving
forward with financial support for the McCallum Theatre, adding he fully
expected the City would do so. However, he was not comfortable approving
an agreement where a major part of the justification is not addressed for
investing $1.2 million of taxpayer funds, aside from the City's obligation to
support the arts, etc. Everyone knows the McCallum Theatre is an economic
driver, it's very special, and it enhances the City of Palm Desert, and part of
that whole paradigm was the recognition, which is completely undefined in
the Agreement. He felt a lot of time has been allowed to define it, so he's
disappointed there's a contract before the City Council that is not specific to
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something he felt is very important. From his standpoint, he would prefer to
postpone this item until the physical recognition has been defined.
Previously, there had been discussions about improvements to the parking
and a monument sign that could be seen by people driving in and out, but
Council hadn't made a decision. He added that the first time he learned of
an "instagrammable site" was when he read the staff report. Again, he's
supportive of contributing to the McCallum, but not ready to approve this
contract. He suggested postponing the matter until the recognition for the
choreography festival is defined in the actual contract, and secondly, when
the physical recognition for the City's donation has been defined.
Mayor Pro Tem Nestande said she could go along with that suggestion if
time was not of the essence.
Councilmember Kelly said she felt differently, stating staff has worked on this
for quite some time and there have been extensive conversations. Further,
the City is not working with people that will disappear in the middle of the
night. Her personal sense is that the proposed agreement achieves
sufficient definition that the City can count on good faith in the
implementation, stating it would be appropriate to move forward. There is an
expectation of regular updates to the City Council, and one can be provided
as soon as greater definition is available on those two fronts.
MR. GERHSENFELD offered there are very specific identifications, which
are the key signature events. In addition to the Choreography Festival, there
are the Family Fun Day and Open Call, a community talent competition.
Those are three signature events that combined will have over 500,000
gross impressions in the media, 450,000 pieces in direct mail, television
advertising, newspaper advertising, and media advertising. Therefore, these
are defined in terms of City recognition through the signature events.
Councilmember Harnik agreed with Councilmember Kelly that the McCallum
is a solid partner for Palm Desert. The comment made that they won't leave
in the middle of the night is pretty accurate. She said this partnership has
served both parties well, and there have been many who have worked long
and hard to come up with a contract that would allow the City to know what
to expect of each other and be able to make the most of it. Also, Mr. Soule
has worked on the instagrammable moments in trying to find something that
would work well. Whether that will be a piece of art or a specific location at
the Theatre, it will work out. The McCallum Theatre has some brilliant brains
behind it and some wonderful resources with a lot of experience and
expertise, so she too, was ready to move forward with the proposed contract
this evening. She added it will show goodwill it has for the McCallum and all
that they do to help the City, and vice versa.
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Councilman Jonathan said the comments made were reasonable, but he felt
it was bad business to move forward on a legal contract based on goodwill
or because someone has been a partner with certain expectations. He said
this was about committing the City to a contract that is not specific and
doesn't define some very important terms. He will support whatever the City
Council does, he was just explaining why he could not support moving
forward at this point. Again, he supports the financial commitment that has
been expressed to the McCallum Theatre, but the issue here is creating a
better defined agreement to avoid any kind of disagreement or a potential
issue at a later time.
Mayor Weber added that based on the City's experience with other
organizations where there was a difference of opinion, is the reason for being
extremely cautious.
Councilmember Kelly called attention to the third bullet point in Exhibit "B,"
where a sentence indicates the sponsorship commitments and co -marketing
commitments exist as long as the contract is in effect, which established for
her the duration of the sponsorship commitment.
Councilman Jonathan said it wouldn't hurt to add that the naming of the
choreography festival shall be continued. Again, just to pin it down. He said
some of us travel in the world of contracts, in that the better things are
defined, the less likely there are to be disagreements or misunderstandings
later on.
Mayor Weber asked if the contract can be changed at this point, before
voting on it.
Mr. Hargreaves noted there is a section in Exhibit "B," that states,
"Subsequently, the name "Palm Desert International Choreography Festival"
will be used to refer to the event on all signs, publications, and marketing
materials as long as a choreography festival is held at the McCallum
Theatre," which he felt addresses the concern.
Councilman Jonathan stated that if people are comfortable with that section,
he wouldn't want to hold things up, but he still felt the physical recognition
needed to be defined, whether it is a plaque, instagrammable site or parking
lot.
Councilmember Harnik moved to, by Minute Motion, authorize/approve: 1) Mayor
to execute subject contract, an agreement between the McCallum Theatre and the City of
Palm Desert relative to funding of programming at the McCallum Theatre; 2) initial
$200,000 payment in the current fiscal year and the same amount for the subsequent five
(5) years to fund this agreement — funding in the amount of $1,200,000 was included
within the FY 2018-2019 CIP Budget, Account No. 4004800-4387900, and upon funding
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approval and execution of the agreement, the first payment of $200,000 will be due and
payable, and the remaining five (5) payments due on the annual anniversary date —
agreement to remain in effect through March 31, 2025. Motion was seconded by Kelly and
carried by a 3-2 vote (AYES: Harnik, Kelly, and Weber; NOES: Jonathan and Nestande).
XVII. CONTINUED BUSINESS
None
XVIII. OLD BUSINESS
A. INFORMATIONAL REPORT RELATED TO THE DESERT COMMUNITY
ENERGY COMMUNITY CHOICE AGGREGATION (CCA) PROGRAM AND
REQUEST FOR DIRECTION TO STAFF REGARDING POTENTIAL
LAUNCH IN 2020.
Mr. Stendell noted this was an informational report related to the Desert
Community Energy (DCE) Program, which has been spearheaded by
Coachella Valley Association of Governments (CVAG). In late 2017, with the
initial approval, City Council directed staff to bring back informational reports
at critical junctures for the review and continued input. Additionally, at the
last two DCE meetings, based on changes on the proforma, all three Board
members stated this needed to come back for further review and approval
by each individual city council. These are intended to be informational items,
but the City is at a deciding point on the Community Choice Aggregation
(CCA) Program. He noted Ms. Barrows from CVAG was in attendance and
available to answer questions. Responding to question, he said staff is also
seeking guidance on whether to go forward with a potential launch.
Councilman Jonathan said the DCE has scheduled a meeting for March 18,
2019, to address the issue of moving forward, and all three cities that are
part of the Joint Powers Authority (JPA) will have gone to their councils to get
direction. It is important for DCE as a Board to make a decision about
launching or not launching in order to meet an activation date of March 2020,
because the purchasing of power begins now. If you miss that window, you
may have to wait another year, however, the power becomes more
expensive.
Councilmember Kelly said the staff report addressed two questions she had
asked about whether the structure of the DCE would enable the Board
representatives from the cities of Cathedral City and Palm Springs to cause
a launch affecting Palm Desert, even if that was not Palm Desert's
preference. The staff report provides assurance that it could not happen, but
she didn't see that in the JPA Agreement itself, which is the agreement that
gives powers to a board that makes decisions for all participating cities.
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Therefore, it's important to know and have on record what the source of that
assurance is.
Councilman Jonathan asked Councilmember Kelly if she considered the
withdrawal provision.
Councilmember Kelly replied she understood the City could withdraw, but
she asked the question to make sure it's safe to not withdraw if this City
Council was disinclined to launch.
MS. KATIE BARROWS, Director of Environmental Resources with CVAG,
agreed with Councilmember Kelly that it's not absolutely clear her specific
case is mentioned in the JPA Agreement, but in general, the language to the
withdrawal provisions was modified to provide and address Palm Desert's
concerns. If Palm Desert wanted to consider launching as an obligation, in
a way that there is language allowing the City not to participate or have any
obligations incurred, she wasn't sure. However, she believed it would be the
intent and a decision of each city to city to participate in the launch, although
she wasn't speaking for the Board. She couldn't say that other CCA's has
had different launch dates for member agencies, so she would like the
opportunity to look at their joint powers' agreements. She said CVAG
essentially modeled the agreement after those of other CCA's. As an
example, Los Angeles Clean Power Alliance, launched 32 cities this month,
and it had launched 3 cities last year, so she believed she could find
language that would allow for flexibility, stating it might be an issue to have
the Board consider. Certainly, it is the intent that each city would have that
decision about whether to participate.
Mayor Pro Tem Nestande recalled this was supposed to launch last summer,
but it was pulled suddenly, and it was her understanding that it collapsed
because the purchase of energy wasn't going to be cost effective as
originally advertised.
MS. BARROWS explained the Board made a decision not to go forward in
the summer of 2018, related to significant changes in the power prices and
the uncertainty on the Exit Fee, which is a charge to CCA customers. As it
is, it was a decision on a financial projection that would have the agency
starting in the red, so the Board made a decision to pause, which made their
bankers very happy. At this time, the Board is evaluating going forward
again, but one of the uncertainties is the Exit Fee that is charged to
customers, which helps the investor on utilities, Southern California Edison
and others, to recover their cost of investments made or their stranded cost.
That formula has been adjusted as of November 2018, so the potential for
cost -savings is more limited today than when this effort first started several
years back, which is a big part of the discussion that the Board is having on
how to proceed. There are some financial projections that show the agency
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could go forward and be in good financial standing. Again, the cost savings
is more limited, but it's always been the goal of the CCA Program, as stated
in the JPA, that there were other benefits like local control, environmental
benefits, greenhouse gas reduction, and cost impediments. In the longer
term, the ability to invest in the local economy by having funds come back to
the community.
Mayor Pro Tern Nestande offered that Southern California Edison (SCE) also
provides those types of benefits. Playing devil's advocate, she asked why
the City should take the risk in the energy markets when it already has SCE,
and why is CVAG wanting to do this and take on the risk.
MS. BARROWS explained that a significant feature and a driving force is to
be able to offer customers a choice about who they purchase their electricity
from.
Mayor Pro Tern Nestande said SCE has 14 million customers, and they give
people the choice to go solar or green, yet only 1,000 customers took
advantage of that choice. Secondly, as a City, it will automatically enroll
residents into the DCE Program. It concerns her greatly when she looks at
stats where only 1,000 out of 14 million customers opted to do it.
MS. BARROWS said that's really the issue, because the choice for
customers is not solely about solar but about the ability to purchase power.
In some cases you wouldn't have to go solar, because of the DCE
purchasing power that's carbon free and/or greener. In terms of the
investment, the revenues that would come to the DCE could be used, at the
direction of the Board, to provide programs for local residents that are
tailored to desert environment. She said Edison also provides those
programs, but essentially the revenues also take into account their
shareholders. Therefore, the DCE provides a benefit to the local community
that is not necessarily available with SCE.
Mayor Pro Tern Nestande asked if she was correct in saying that profits from
the DCE will come from buying energy, and SCE makes zero profit on buying
energy. The profit for Edison comes in the transmission, and the CCA will
still need to use their transmission lines.
MS. BARROWS agreed, stating the only difference between having a CCA
Program and having SCE, is the purchase of power. Edison would continue
to provide transmission distribution all the way to customer service, and the
DCE would be working very closely with Edison for a smooth effort. For the
customer, it doesn't really change anything, other than they do have a
choice. Responding to question about choice, she said it was similar to what
one would have with their cable company where one can make a choice on
several cable companies. In this case, with DCE, you will be able to choose
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to stay with DCE or Edison, stating it's very easy for a customer to make that
decision.
Mayor Weber said she thought customers had a choice about whether to go
solar or whatever other option, because SCE offers that as well. She is
mainly concerned about notification, because all the people she spoke with
had no idea the City put them into the DCE Program. If the City was making
that consideration again, she feared the City would enroll them into an
organization that had higher rates, and it will cost them money to opt out, but
what if they don't do it in time. She believed she heard Ms. Barrows say
there would be a higher rate, the one adjusted in November 2018, and how
does the public get informed about all of this.
MS. BARROWS noted the Exit Fee is a decision made by the California
Public Utilities Commission (CPU), and that fee was imposed on all CCAs
under Customer Access in the State. In terms of the choice of a customer,
the process that would allow them to opt out is very simple. Customers can
do it by telephone or online, and there are other ways, stating it only takes
a minute or two, but that's essentially how the program is set up, State Law
puts customers into the Community Choice Program automatically.
Mayor Weber disagreed, stating it was not a true statement, because when
the City voted, according to State Law, that action automatically put them
into it. She recalled having a conversation with Ms. Barrows about how easy
it is to opt out, but it's only easy if the customer knows about it. She
reiterated that everyone she spoke to didn't have any idea they were put into
the Program. It was her understanding that last year's agreement was null
and void, and it's starting all over again, questioning if people need to opt out
a second time. In other words, if this was a second launch, is the first one
erased.
MS. BARROWS responded that CVAG will have notices going out to all
customers before and after the launch date, followed by an education and
outreach program to give folks the opportunity to obtain more information.
Councilman Jonathan said Mayor Weber mentioned that customers might
not know they are paying a higher rate, but to be clear, the default option has
not been selected by the DCE Board. One of the alternatives available to the
Board, who will make that decision at a later time, is for a default option that
is essentially the same rate or possibly at a very modest savings. To those
who do not opt out of the DCE, the Board has not decided whether the
default option will be a slightly more expense, 2% to 3% more for 100%
carbon free or green energy versus a default option that basically says you
will start with the same thing and then you can have other choices at a later
time. It is not a foregone conclusion that implementing this will mean a
higher rate, unless somebody opts out.
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MS. BARROWS concurred, stating customers would have the choice of the
current rate or slightly less than SCE, adding that the survey that was done
was based on that understanding. Further, this is something the DCE Board
discussed about having individual councils' provide feedback on their
jurisdiction.
Councilmember Kelly stated that because of the aborted launch last
summer, the DCE now has a fund of approximately $5 million in energy
power, because it purchased in anticipation of a launch. When the launch
didn't happen, that power could be sold at prices that have actually gone up.
She asked Mr. Stendell how he envision spending $5 million, if he had the
luxury of doing so, to reduce energy consumption or at least reduce
carbon -related energy consumption.
Mr. Stendell responded he would recommend producing a program that is
vetted through the Sustainability Committee and on through the structure to
retrofit older dwelling units that are inefficient. He said the City has a lot of
dwelling units that would benefit from window installations and
energy -efficient roofing, etc.
Mayor Weber commented that some of those funds have probably been
spent on consultants and on the daily activity of labor.
Mr. Stendell agreed, but staff was presented with an audited financial report
that shows there is a sizable amount that is just slightly below $5 million.
Responding to question, Councilman Jonathan confirmed he knew how
much money has been spent, and those financial statements will be audited
through fiscal year ending June 30, 2019, which has not yet occurred. A
question that is always asked is why do this and why the DCE. The answer
is pure and simple, which is to protect the environment. This City has a proud
history of being at the forefront of sustainability and concern for the
environment, and this was just one more opportunity to do so. It's not by
dictating to the residents, but by giving them a choice they currently do not
have. One of the choices is utilization of 100% green and carbon -free
energy as opposed to what they are doing now, which is a goal of the State
of California for 25 years from now. This was an opportunity for residents to
make a decision and a choice and not having to wait another 25 years,
because the impact of climate change is important, and it will cost them
somewhere between 2% and 3% more in their bill. Customers also have the
choice of not being part of the DCE, but to continue to be an Edison
customer. Therefore, Palm Desert was not dictating, but giving residents a
choice. If they stay with the DCE, one of their choices will be, at a modest
expense, to opt for energy coming to their home that will be 100% green and
carbon -free or they can opt to have the same level of green versus nongreen
energy as they currently have for the same or slightly lower cost. To answer
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the question about why do this, it's to create an opportunity for residents to
take positive steps to protect the environment, protect mother earth, and to
address climate change. The opting in decision has not been made, the
process of the Board is to get input from the three -member cities before
going on to other decisions that need to be made. Again, he views this as
an opportunity for the City to promote environmentalism without dictating it
upon the residents, which is an opportunity they currently don't have.
Mayor Pro Tern Nestande stated that climate change connotes a lot of
different things to many folks. She's done a lot of research on climate
change, and she's undecided on the evidence, on whether its man causing
climate change or mother nature. There is a lot of evidence to state that
even if you got rid of all of the United States, it wouldn't make a difference
on "climate change." There are scientists out there that measure time in
millions of years, and those scientists, including the founder of Green Peace,
believe the climate is changing on its own. The world has experienced global
warming, ice age, and the arctic used to be grass land, etc. She's not
making a decision, but there is a huge debate on climate change, which is
why she's very skeptical of forming a DCE and having people pay more at
this point in time.
Councilman Jonathan said Mayor Pro Tern Nestande highlights the very
reason for the DCE, because many people will agree with her comments and
others won't. The beautiful part of the program is that you can make a
decision based on what's right for you. You can opt out of the DCE, stay
with SCE, or you can opt for DCE and stay with the same mix of energy you
currently have, which are very appealing reasons for moving forward. He
said the program doesn't dictate to the residents what they should do, but
they are being afforded an opportunity to choose.
Councilmember Kelly stated this was a complicated topic, and she thanked
Councilman Jonathan for laboring very hard on the DCE Board, which he
currently chairs', and he is doing it excellently. Similarly, she has been
extraordinarily impressed with CVAG staff and the consultants from the
Energy Authority, stating they have answered all her questions and they
have been highly helpful. Based on all the input, she could not support a
launch on the basis currently proposed. Councilman Jonathan's comments
are very compelling, but the hitch for her is that CCAs don't roll out by giving
everybody a clear sheet, which identifies two or three choices, explains the
choices, and invites each of us to check one of the boxes, which would be
her version of true choice. What happens, pursuant to State Law, is that if
Palm Desert makes a choice as to what the default option should be,
everybody gets shifted into that choice and they stay there unless they opt
out. When the City attempted a launch last summer, the mailings had a very
small type face, the opt -out option was at the bottom, and it was quite tiny;
almost no one saw it. She learned that folks take these types of mailers to
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be solicitations or some other mail they don't have to study. Practically
speaking, if the City chooses a default option, it is making a choice for the
residents, and she would feel a high sense of obligation to ensure she was
comfortable with it. The report to the DCE Board gave data from 31 cities,
and those cities had a variety of default options. Some were very close to
Edison's mix of choices, some reported to be somewhat greener, others
much greener, and in all cases, the opt -out rate was constant between less
than 1 % or potentially up to 4%, which is a small opt -out rate. The fact that
the rate stayed the same no matter what the default option was, tells her
people are just not reading their mail. In the face of that data, this is how she
thought about it, the first goal of the CCA is to offer choice, which lead her
to ask herself what current choices are available. As Mayor Pro Tern
Nestande pointed out, it is possible for SSE customers to elect entirely
renewable energy, not from our own roof tops, but from solar farms.
Edison's renewal choice explicitly says that it utilizes local sources for that
renewal energy. It's somewhat important to dig a little bit and make this
distinction as well, the greenest choice that's on the list of possibilities from
the DCE is 50% renewable for things like solar and wind, and 50% for large
hydro, which Edison is currently not allowed to count toward the mandated
green goals. Large hydro is not counted, although it's earth friendly,
because when water is passing through the generators, at times it has to be
pumped back up hill using power from unknown sources. When you take
that nuance into account, the current SCE 100% green choice is preferable
to someone whose most interested in doing what's most environmentally
friendly. She said SCE also provides a 50% renewable choice, and most
recently submitted to the CUP five proposals for added options/choices,
which have different mixes and attributes. She went on to say the DCE
sponsored a survey of 100 people from the three cities participating to see
if residents would support paying more than Edison rates for an arguably
greener mix of power. She looked carefully at the survey results that were
part of the staff report, and it left her with the impression that the folks that
took the survey were pretty confused. On page 13 of the survey, those who
have said they were willing to pay more for a greener mix was asked how
much more, a total of 18.3% out of that group was willing to commit to any
particular percentage more. Holding that 18.3% in mind, and turning to
page 19, which asked folks if they were willing to pay 1 % to 5% more, the
result is 62.6%. Now if you turn to page 21, the same question is asked in
a third way, and the results for those that would not opt out if they paid 1 %
to 5% more, the answer is 45.8%. Therefore, the fact that there is three
different results for basically the same question, gives her pause about
whether the people answering the questions were fully informed and/or had
an adequate opportunity to make an informed decision. There is one part of
this survey that jumps out at her more than any other, which is on page 5,
that shows 86.3% of the folks surveyed said they were unfamiliar with CCA.
She said multiple communications were sent out last summer about CCA,
and yet 86.3% haven't heard of it, which for her confirms that folks are not
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apt to read these kinds of mailers. It brings her back to whether she would
be comfortable voting to move all resident rate payers into a plan that
potentially could charge them more for their energy. On that premise, she
considers the energy mix preferable, and her own personal sense is that
Palm Desert residents would not be happy with that choice. She has no
doubt that CCAs have been a vital positive contribution to the landscape in
the last ten years, but everything that is heard about advances in energy
technology suggests that battery technology will quickly make it possible for
residents to fully be off the grid. As Council picks and chooses on where to
invest its energy and where to invest staff's energy, it should not be in
moving forward with the CCA. It should be in supporting the kind of retrofits
that can reduce energy consumption and continue watching technology
develop so that the City can be as supportive as possible for resident
implementation as soon as those options exist.
Councilman Jonathan believed Councilmember Kelly has thought long and
hard about the issue, and obviously, with a lot to say. He would offer his
observations, not in an attempt to change her mind, because he believed
she has formed her conclusion, but to share his perception on a few things
mentioned. He said SCE offers a renewable choice, and his guess is that if
you stopped 1,000 Edison customers and asked them if they knew that, you
would get 1,000 noes, stating the information is pretty well hidden, and some
would say intentionally. Nevertheless, based on what the experts have told
them, it those that opt to do it, it would be at a cost that is twice as much.
The DCE can offer that same option, and while it would be looking at a 3%
to 4% increase, with Edison it would be an 8% to 10% increase, so he felt
there was value in that aspect. Councilmember Kelly expressed concern
about the survey, so know that CVAG did put it out for a Request for
Proposal (RFP) and selected a survey company that is nationally recognized.
He didn't have the expertise to question their process or conclusions, so he
will trust that by going through the RFP process and selecting a reputable
company, their results and conclusions are accurate. If Councilmember
Kelly had expertise or concerns that would lead her otherwise, he would
respect it. With regards to choice and opting out and whether residents will
really understand, he agreed and it was a valid concern. However, when this
City Council passed the Plastic Bag Ordinance as a mandate, he didn't think
residents had a choice and/or an opt -out option, so the fact that the DCE
offers an opt -out choice, at least it is going in the right direction. It was also
mentioned that the City can better utilize its resources for retrofits and other
actions, well that money is coming and will continue to come from the DCE.
There are projected revenues that are several million dollars per year, and
one of the options that the DCE Board will have and expects to utilize, is to
reinvest in the local economy through retrofits and incentives. It would be
similar to what the City offers for drought resistance landscaping and other
types of programs that would encourage people to become more energy
efficient. Finally, this was yet another opportunity for the City to take the lead
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and promote sustainability and the protection of the environment. He
expressed concern that the City was falling into a pattern of losing those
opportunities and Council needed to think about it, because he sensed it was
losing that direction.
Mayor Weber understood Councilman Jonathan's point about losing out on
being leaders on this issue, but electricity and the creation of it are
exponentially changing, and she believed going forward with the DCE would
be going back, because it's the same format of what already exists. She said
Palm Desert has so many people that have signed up for solar because they
want to be forward thinking, and to now say it will force or suggest they be
on the DCE was almost an insult to them, which also seemed inappropriate.
For all the reasons she mentioned last year, she has not changed her mind,
and she hasn't seen anything that proves the DCE is a better avenue or
opportunity for people. Further, she is concerned with the lack of
transparency in informing the public. To this date, she still comes across
people that were unaware of the DCE, and putting residents at risk by
decisions made by other cities is inappropriate. If Palm Desert decided to go
into a utility business and put solar panels on everything with generators and
underground everything, she would be on board with all of it in a moment.
As already stated, Palm Desert has set a standard, it's stable in its planning,
etc., so she didn't want to be tied to other cities for these type of decisions.
Councilman Jonathan moved to, by Minute Motion, direct staff to move forward with
the DCE Program launch in 2020. Motion died for lack of a second.
Councilmember Kelly moved to, by Minute Motion: 1) Receive and file an
informational report related to Desert Community Energy (DCE); 2) the City of Palm Desert
declines to launch at this time, with instruction to the Board representative to continue to
collaborate within the confines of that decision. Motion was seconded by Nestande.
Councilmember Kelly said she didn't feel obliged to withdraw from the DCE
at this time, pointing out Palm Desert has a stake in the $5 million generated.
Further, the decision of the other two city councils is unknown, so she felt it
was appropriate to continue to participate until more comes into view.
Councilman Jonathan stated that at the meeting of March 18, 2019, the DCE
Board will learn what the other two cities will be doing, and if they opt to
move forward, he felt it would be inappropriate for Palm Desert to remain a
part of the DCE when it's not participating. Therefore, he will be coming
back with a report and a recommendation after that March 18, DCE meeting.
Mayor Weber called for the vote and the motion carried on a 4-1 vote (AYES:
Harnik, Kelly, Nestande, and Weber; NOES: Jonathan).
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XIX. PUBLIC HEARINGS
A. REQUEST FOR APPROVAL OF A THIRD AMENDMENT TO
DEVELOPMENT AGREEMENT NO. 02-01 AND A TENTATIVE PARCEL
MAP, SUBDIVIDING A 7.7-ACRE PARCEL INTO FOUR RESIDENTIAL
LOTS THAT WILL BE PART OF THE STONE EAGLE DEVELOPMENT,
LOCATED WEST OF THE PALM VALLEY STORM CHANNEL (PVSC) AT
THE TERMINATION OF OLD STONE TRAIL (APN 652-090-002); AND
ADOPTION OF A MITIGATED NEGATIVE DECLARATION IN
ACCORDANCE WITH THE CALIFORNIA ENVIRONMENTAL QUALITY
ACT (CEQA), Case Nos. DA 02-01 Amendment No. 3 and TPM 37336
(Eagle 605, LLC, Applicant).
Mr. Stendell stated the Applicant requested a continuance of the matter to
the regular meeting of March 14, 2019, and it is also the recommendation of
staff.
Mayor Weber declared the public hearing open and invited public testimony
FAVORING or OPPOSING this matter. No public testimony was offered, and the
Mayor left the public hearing open.
Councilmembers Kelly and Harnik requested an opportunity to view the site,
recognizing only two Councilmembers at a time can go together. Mayor Pro
Tern Nestande noted she has already visited the site. Ms. Aylaian agreed
to have staff set-up a tour.
Councilmember Harnik moved to continue the matter to the meeting of March 14,
2019. Motion was seconded by Nestande and carried by a 5-0 vote (AYES: Harnik,
Jonathan, Kelly, Nestande, and Weber; NOES: None).
XX. ADJOURNMENT
With City Council concurrence, Mayor Weber adjourned the meeting at 5:43 p.m.
ATTEST:
RACHELLE D. KLASSEN, CITY CLERK
CITY OF PALM DESERT, CALIFORNIA
SUSAN MARIE WEBER, MAYOR
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