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HomeMy WebLinkAboutPrelim - City - 11-14-2019PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING THURSDAY, NOVEMBER 14, 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 3:00 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 Andy Firestine, Assistant City Manager 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 Bryan White, Battalion Chief, Palm Desert Fire/Riverside Co. Fire Dept./Cal Fire Lt. Matt Martello, Asst. Chief, Palm Desert Police/Riverside Co. Sheriff's Dept. Grace L. Rocha, Deputy City Clerk III. ORAL COMMUNICATIONS - A (CLOSED SESSION ITEMS) None PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING IV. ADJOURN TO CLOSED SESSION Reauest for Closed Session: DRAFT NOVEMBER 14, 2019 A. Conference with Real Property Negotiator pursuant to Government Code Section 54956.8: 1) Property: Desert Willow Golf Resort - Overflow Public Parking Lot (Portion of APN 620-400-008 and APN 620-420-024) Agency Negotiator: Lauri Aylaian/Martin Alvarez/City of Palm Desert Other Party Negotiator: Desert Wave Ventures, LLC Property Owner: City of Palm Desert Under Negotiation: x Price x Terms of Payment 2) Property: 44911 Cabrillo Avenue (APN 625-082-022), Palm Desert Agency Negotiator: Lauri Aylaian/Ryan Stendell/City of Palm Desert Other Party Negotiator: Family YMCA of the Desert Property Owner: City of Palm Desert Under Negotiation: x Price x Terms of Payment B. Conference with Legal Counsel regarding existing litigation pursuant to Government Code Section 54956.9(d)(1): 1) Lorraine Salas and Karina Quintanilla v. City of Palm Desert, Riverside County Superior Court, Case No. PSC 1903800 C. Conference with Legal Counsel regarding significant exposure to litigation pursuant to Government Code Section 54956.91d)(2): Number of potential cases: 2 With City Council concurrence, Mayor Weber adjourned the meeting to Closed Session of the City Council and Successor Agency at 3:01 p.m. She reconvened the meeting at 4:03 p.m. V. RECONVENE REGULAR MEETING - 4:00 P.M. A. REPORT ON ACTION FROM CLOSED SESSION. Mr. Hargreaves stated direction was given, but no reportable action was taken. VI. PLEDGE OF ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA - Councilmember Kathleen Kelly VII. INVOCATION/INSPIRATION - Councilman Sabby Jonathan 2 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING NOVEMBER 14, 2019 VIII. AWARDS AND PRESENTATIONS A. PRESENTATION TO RECOGNIZE BRIAN HOLCOMBE FOR HIS SERVICE TO THE CITY OF PALM DESERT AND ITS FINANCE COMMITTEE, 2016 - 2019. On behalf of the City Council, Mayor Weber presented an engraved crystal clock to Mr. Holcombe recognizing his three years of service to the City and its Finance Committee. Mr. Holcombe graciously accepted the recognition and said it was an honor to have served in this capacity, adding that from his perspective the City is in excellent fiscal condition and its citizens can be rest assured. IX. ORAL COMMUNICATIONS - B MR. PATRICK KLEIN, Chair of the Golf Cart Parade Committee, thanked the City Council for its continued sponsorship, which allowed them to hold their 55th Annual Golf Cart Parade on Sunday, October 27. He said the committee worked together under the feedback received from the Councilmembers, the public, and Chamber members. They gathered all the comments and put them into action, which resulted in a vibrancy that the parade hadn't seen in a while. The parade included more than 100 entries, a car show procession, beer garden, and great partners, such as Bright Rentals, who helped elevate the elegance and the aesthetics of the event. The committee was also hard at work in discussing the future of the parade and Ms. Tammy Martin and Ms. Mel Robertson will be helping in that effort going forward. MS. TAMMY MARTIN stated the Committee conducted a survey and the thought is to go forward with a night parade in the future. The Committee believes there needs to be a change to the parade, and she and Ms. Mel Robertson believe they can make it happen by working with City staff. They are also looking at making this a week-long event by incorporating the new San Pablo, but for next year, they will start with looking at a three-day event. She said they want to incorporate the seniors into the event and possibly doing a barbeque contest, and the list goes on. Their goal is to incorporate the new San Pablo and the Civic Center park. They will continue with the parade on El Paseo until the construction on San Pablo is completed, and eventually turning the parade onto San Pablo and leading into the park. MR. WALLY MELENDEZ stated his objective this evening, as he makes his rounds at the cities of Rancho Mirage and Palm Desert, including the COD trustees meeting, is for public officials to use their influence to get COD to offer four-year degrees. He noted he has taken two courses (Business Law and Financial Accounting) this past semester at COD, and he didn't care whether Cal State offered a bachelor program, because his focus was on COD. He said COD has a 3 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING NOVEMBER 14, 2019 great impact on the young residents of the Coachella Valley, and he's looking for leaders to help him in his endeavor. X. MAYOR AND COUNCILMEMBER REPORTS & REMARKS TO THE COMMUNITY A. Councilmember Jan C. Harnik Committee Reports and General Comments. Southern California Association of Governments (SCAG) - reported SCAG is comprised of the six southern California counties, excluding San Diego, and they are releasing the Regional Transportation Plan for public comment. She said notices will be sent out from the City and other sources about this Plan, which is important to our community and our region. Additionally, they have been working on the Regional Housing Needs Allocation (RHNA), having to do with the number of homes each city has to build in their communities. The housing requirement is similar to what the City has put forth in the General Plan Update, which is good news for Palm Desert. Councilman Jonathan offered that this afternoon Council learned that an agreement was struck between Los Angeles and Eastern Riverside to transfer some of the RHNA obligation from us to them. Councilmember Kelly noted she and Councilmember Harnik serve on the SCAG Regional Council where this happened. She explained the SCAG Regional Council is tasked with taking the allotment of housing that comes down from the State and then having to decide how to divide that up. After staff's recommendation was proposed, there was substantial push back from Riverside and San Bernardino Counties to the effect that the vast majority of unmet current needs for housing is in Los Angeles and Orange County where jobs exceed affordable housing. Therefore, the final result, which was passed by SCAG with her and Councilmember Harnik's help, changed the formula to shift some of the allotment from the Inland Empire to Los Angeles and Orange County. SCAG was able to pass it, because the representatives from Los Angeles stepped up and acknowledged the wisdom of doing so; it was a formal action of the full Regional Council. Unfortunately, SCAG has not yet updated their excel system that calculates the allotment for individual cities, but hopefully by December 12 it can be shared. 2. Veteran's Dav Event - the City's event was outstanding. She thanked Management Specialist Vanessa Mager for the great job she did, adding this event was growing every year. Mayor Weber agreed, stating this year there was a lot of booths added to provide more information and services to local veterans. El PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING NOVEMBER 14, 2019 She also thanked Ms. Mager, including other City staff members contributing to such a successful event. 3. Coachella Vallev Economic Partnership (CVEP) Summit - reminder to everyone the Annual Economic Summit is on Tuesday, November 19 at the Palm Springs Convention Center. She said CVEP is making a difference in their efforts in education and providing amenities that businesses need for attracting and excelling in the region. 4. Behind a Miracle (BAM) Event - announced the event will take place on November 23, 2019, on the western end of El Paseo. She said this was a holiday celebration and a ton of fun. B. Councilman Sabbv Jonathan Committee Reports and General Comments. Refer to Section X - Al. C. Councilmember Kathleen Kellv. Committee Reports and General Comments. Refer to Section X - Al. D Mavor Pro Tern Gina Nestande Committee Reports and General Comments. Palm Desert Businesses Postcard Survev - encouraged business owners to respond to the survey as the City really wants to hear from them and/or potential business owners, and if you missed it, you can go online to the City's Website to provide feedback. She said local business owners can express what the City is doing right or what areas it can improve upon. E. Mavor Susan Marie Weber Meeting Summaries Report for the Period of October 12 - November 1, 2019. With City Council concurrence, the Meeting Summaries Report was received and filed. F. City Council Reauests for Action. Desert Community Enerqv (DCE) - Mayor Susan Marie Weber stated that on August 22, 2019, she had requested information on the DCE, which is a Community Choice Aggregation (CCA) formed from a Joint Powers Authority (JPA). It was agreed that questions would be reviewed at a future study session, which is set for another couple of months. She wished to add to the list a request that Council be given 5 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING NOVEMBER 14, 2019 information on what procedure would be followed in order to remove Palm Desert from the actual JPA. Ms. Aylaian agreed to provide the requested information at the study session. Councilmember Harnik noted a number of Councilmembers sat in on a webinar from the League of California Cities notifying cities about the legislation that has been passed. On the CCA issue, she felt that Senate Bill 520 should be addressed as well at the study session. G. City Council Consideration of Travel Requests/Reports. None XI. STAFF REPORTS AND REMARKS A. City Manager 1. City Manager's Meetina Summaries Report for the Period of October 14 - November 1, 2019. With City Council concurrence, the Meeting Summaries Report was received and filed. 2. City Council Meetina Reminder: Due to the Thanksgiving Holiday, the 2"d meeting in November will not be held. The next City Council meeting is on Thursday, December 12, 2019. 3. Shout Out to Businesses on San Pablo Avenue. Due to the very active construction on San Pablo, you may not know that businesses there are still open, but you can still make your way in. Also, there is parking available behind the businesses on San Gorgonio or you could follow the signage. She encouraged everyone to support local businesses there, because construction will continue for another five months. B. City Attorney None C. City Clerk None C.1 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING D. Public Safety Fire Department NOVEMBER 14, 2019 Division Chief Ty Davis reported on the following: a) as the colder weather approaches, he encouraged residents to inspect their smoke detectors for carbon monoxide poisoning to ensure they are working, including furnaces. He said 36% of deaths occur due to carbon monoxide poisoning, because it's odorless and colorless; b) a shout out to the Palm Desert Area Chamber and the City for supporting the Police Officer & Public Safety (POPS) Awards Luncheon; c) Fire Department started their "Spark of Love" Toy Drive. If you wish to participate you can drop off unwrapped toys at your local fire station. 2. Police Department Lt. Martello explained that thanks to Sheriff Bianco's support, many in the Department have been growing beards as part of an off -duty fundraising for charities. It's the first time he's done it in uniform, and he's getting used to it and liking it. Secondly, he thanked the City Council for their support of the POPS Awards. Lastly, the Palm Desert Aztec's will be representing the City of Palm Desert this Friday for the second round of football playoffs against a team from the City of Santa Barbara. XII. CONSENT CALENDAR PALM DESERT CITY COUNCIL A. MINUTES of the Regular City Council Meeting of October 24, 2019. Rec: Approve as presented. B. CLAIMS AND DEMANDS AGAINST THE CITY TREASURY - Warrants Dated 10/4/2019, 10/18/2019, and 10/28/2019. Rec: Approve as presented. 7 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING DRAFT NOVEMBER 14, 2019 C. CLAIMS AND DEMANDS AGAINST THE CITY/HOUSING TREASURIES - Warrants Dated 10/11/2019, 10/18/2019, and 10/25/2019 (Joint Consideration with the Palm Desert Housing Authority - See Item S below). Rec: Approve as presented. D. APPLICATION FOR ALCOHOLIC BEVERAGE LICENSE by Desert Falls Country Club, 1111 Desert Falls Parkway, Palm Desert. Rec: Receive and file. E. CULTURAL RESOURCES PRESERVATION COMMITTEE Meeting Minutes for March 26, 2019. Rec: Receive and file. F. RESIGNATION of Tommy Edwards — Citizens' Sustainability Committee. Rec: Receive with very sincere regret. G. RESIGNATION of Lynn Bixen — Parks & Recreation Commission. Rec: Receive with very sincere regret. H. REQUEST FOR DECLARATION of Surplus Property and Authorization for Disposal — Miscellaneous Computer Equipment and Electronics. Rec: By Minute Motion, declare items listed in the accompanying staff report's Exhibit "A" as surplus and authorize disposal as appropriate. REQUEST FOR APPROVAL of Side Letter Agreement 2 to the 2017 Memorandum of Understanding (MOU) with the Palm Desert Employees Organization (PDEO) for Year -End Holiday Considerations. Rec: By Minute Motion: 1) Approve Side Letter Agreement 2 to the 2017 MOU with the PDEO (Contract No. C36180) to: a) Close City Hall all day (instead of half -day closures) on Tuesday, December 24, 2019, and Tuesday, December 31, 2019; b) provide employees with an additional eight (8) hours (total) of paid Holiday Leave to accommodate the closure; 2) authorize the Mayor to declare said dates as Holidays in accordance with Section 2.52.700 of the Palm Desert Municipal Code and the approved Side Letter Agreement 2 to the 2017 MOU — no direct budget impact from this request, total annual salary expenditures would be the same. 0 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING DRAFT NOVEMBER 14, 2019 J. REQUEST FOR AWARD OF CONTRACT in the Amount of $61,390 to International Line Builder, Inc., for Washington Street Intersection Re -Wiring and Controller Cabinet Assembly Upgrades (Contract No. C38550A, Project No. 551-17). Rec: By Minute Motion, authorize: 1) Award of subject contract in the amount of $61,390 to International Line Builder, Inc., Corona, California, for Washington Street Intersection Re -Wiring and Controller Cabinet Assembly Upgrades Project; 2) Directorof Finance to set aside a 10% contingency in the amount of $6,139; 3) City Manager or designee to review and approve written requests forthe use of contingency change orders for unanticipated conditions, per Section 3.30.170 of the Palm Desert Municipal Code; 4) City Manager to execute said contract — funds are available in Measure A Fund, Account No. 2134617-4400100 - Washington Street Improvements / Capital Project. K. REQUEST FOR AWARD OF CONTRACT for Engineering and Traffic Survey Services for Establishment of Speed Zones Citywide to TJKM Transportation Consultants in the Amount of $90,625 (Contract No. C39140, Project No. 590-20). Removed for separate consideration under Section XII I, Consent Items Held Over. Please see that portion of the Minutes for Council discussion and action. L. REQUEST FOR APPROVAL of the 2019 Miracle on El Paseo Event. Rec: By Minute Motion, approve: 1) Miracle on El Paseo Event scheduled for Saturday, November 23, 2019; 2) two-phase road closure plan on El Paseo from Highway 74 to Sage Lane; 3) consumption of alcoholic beverages on City -owned property pursuant to Palm Desert Municipal Code Section 9.58.040. M. REQUEST FOR APPROVAL of the 2020 Y-Be-Fit Palm Desert Challenge. Rec: By Minute Motion, approve use of City property for the 2020 Y-Be-Fit Palm Desert Challenge scheduled for Sunday, October 4. N. INFORMATIONAL REPORT for the First Year of Commercial Cannabis Business Operations in the City of Palm Desert. Rec: Receive and file. 7 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING NOVEMBER 14, 2019 O. STATUS UPDATE Regarding Short -Term Rentals (STRs) Within the City of Palm Desert. Removed for separate consideration under Section XI II, Consent Items Held Over. Please see that portion of the Minutes for Council discussion and action. P. REQUEST FOR AUTHORIZATION to Accept Improvements to Monterey Avenue, Release the Faithful Performance and Labor and Materials Bonds, and Accept a 10% Maintenance Bond for the California Desert Association of Realtors (CDAR) Project (California Desert Association of Realtors, Applicant). Rec: By Minute Motion: 1) Accept the improvements to Monterey Avenue; 2) release $26,686 of the Faithful Performance Bond and $13,343 of the Labor and Materials Bond for the project; 3) accept a 10% maintenance deposit in the amount of $2,668.60 for same. SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY Q. MINUTES of the October 24, 2019, Regular Meeting of the Board of Directors of the Successor Agency to the Palm Desert Redevelopment Agency. Rec: Approve as presented. PALM DESERT HOUSING AUTHORITY R. MINUTES of the Housing Authority Meeting of October 24, 2019. Rec: Approve as presented. S. CLAIMS AND DEMANDS AGAINST THE CITY/HOUSING TREASURIES - Warrants Dated 10/11/2019, 10/18 2019, and 10/25/2019 (Joint Consideration with the Palm Desert City Council - See Item C above). Rec: Approve as presented. Councilmember Harnik requested Item K be removed for separate consideration and Councilman Jonathan requested Item O. Upon motion by Kelly, second by Harnik, and 5-0 vote of the City Council (AYES: Harnik, Jonathan, Kelly, Nestande, and Weber; NOES: None), the remainder of Consent Calendar was approved as presented. 10 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING XIII. CONSENT ITEMS HELD OVER DRAFT NOVEMBER 14, 2019 K. REQUEST FOR AWARD OF CONTRACT for Engineering and Traffic Survey Services for Establishment of Speed Zones Citywide to TJKM Transportation Consultants in the Amount of $90,625 (Contract No. C39140, Project No. 590-20). Councilmember Harnik said this item has to do with the traffic survey and services for the establishment of speed zones, and the City has a couple more years before it has to do a new study. She suggested holding off, because there is a committee in Sacramento working on the 80 percentile rule that says that if 80 percent of the vehicles are going a certain speed, then that should be the speed. However, there has been enough research to say that is probably not very safe, especially on Palm Desert streets where drivers are going 50 or 60 mph near residential. The Valley's representative on that Committee is Councilmember Lisa Middleton from the City of Palm Springs, and when asked about it today, she said it would be best to slow down because in early 2020 there will be legislation changes that may affect the criteria on how we go about implementing speed limits. She suggested holding off for four or five months on this item, because the criteria may change and it would be fiscally prudent to do so. Mr. Garcia replied there are a couple of caveats on that five to a seven -years requirement, one of them is if the street has had major modifications to it, and some have and others have not. Therefore, with the approval of this contract, staff can proceed with the streets that need the speed survey done. He offered to have staff come back with a list of the streets that needs to be done and those that can wait the four or five months pending legislation. Councilmember Harnik said it sounded like a reasonable solution. Councilmember Harnik moved to by Minute Motion: 1) Award subject contract for Engineering and Traffic Survey Services for Establishment of Speed Zones Citywide to TJKM Transportation Consultants, San Diego, California, in the amount of $90,625; 2) authorize the Mayor to execute said contract — funds are available in General Fund Account No. 1104250-4309000 - Professional -Other, with staff agreeing to return to the City Council with a list of affected streets. Motion was seconded by Kelly and carried by a 5-0 vote (AYES: Harnik, Jonathan, Kelly, Nestande, and Weber; NOES: None). 11 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING NOVEMBER 14, 2019 O. STATUS UPDATE Regarding Short -Term Rentals (STRs) Within the City of Palm Desert. Councilman Jonathan pointed out that December 31, 2019, is quickly approaching and after that point there will no longer be any permits in the R1/R2 Zone, other than those that sought and received an extension. He asked what is the City doing to ensure all those holders are fully aware of the upcoming deadline. Associate Planner Kevin Swartz noted that people in the R1/R2 Zones could still apply for an On -site Owner Short-term Rental Permit. Staff is sending a letter out next week to all R1 and R2 owners, notifying them that their permit will expire at the end of the year and if they continue to operate after the deadline, it will be an immediate $5,000 fine. Further responding, he confirmed the City tracks the number of current holders/permits in the R1 and R2 Zone, adding there is approximately 218 STRs remaining. Councilman Jonathan moved to, by Minute Motion receive and file the Short -Term Rental Update Report. Motion was seconded by Kelly and carried by a 5-0 vote (AYES: Harnik, Jonathan, Kelly, Nestande, and Weber; NOES: None). XIV. RESOLUTIONS None XV. ORDINANCES A. For Introduction: None B. For Adoption: None 12 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING XVI. NEW BUSINESS DRAFT NOVEMBER 14, 2019 A. REQUEST FOR APPROVAL OF FISCAL YEAR 2018-2019 FINAL BUDGET ADJUSTMENTS TO REVENUE AND EXPENDITURES, AND CERTAIN RELATED EXPENDITURES FOR FISCAL YEAR 2019-2020. Ms. Moore stated the City will soon be closing the financial records for Fiscal Year 2018-2019, and as part of that, there needs to be some adjustments. The budget will be changed to be more reflective of the actual expenditures forthe year. In addition, staff is requesting to make an adjustment and direct staff to commit $1.4 million of the excess surplus from last year to replenish the Economic Development Reserve Fund. When Council allocated that money for a project, it was with the understanding that there would not be monies available for other projects and programs in Economic Development until there was a way to replenish the fund. Because there was about $2.7 million in excess revenues last year, staff is making a recommendation to replenish the fund and use it for economic development purposes. Additionally, staff is making a recommendation that in this fiscal year (2019), the City makes another payment to the pension liability in the amount of $1.5 million in order to stabilize pensions going forward. The goal is to be realistic and responsive to what the State has done in reducing their interest rate or expected rate of return. CalPERS has reduced the interest rate from 7.5% to 7.0%, and the City will feel the full effects of that change in the 2019/2020 year. Therefore, staff is recommending the additional payment to CalPERS. In the future there will be set required payments to be made to CalPERS, and by making additional payments now, staff hopes to level them out to the extent possible. She said attached to the staff report are adjustments Council authorized the City Manager to make, and those adjustments net to zero; they are not an excess already approved by Council. Today's requests are attached to Resolution 2019- 81 as Exhibit A; they are adjustments to revenue and some appropriations. Councilmember Kelly stated the revenues over expenditures is $2.7 million and the request to allocations is $2.9 million, questioning how that works and where did the extra $220,000 come from. Ms. Moore replied those funds would come from General Fund Reserves. When staff first prepared the report it was expected to be $2.9 million, but an adjustment journal had to be done at the last minute. However, at the same time, staff relooked at those two requests and still believed they are good recommendations, because the $1.4 million will replenish the Economic Development Reserve, which staff knows there are things in the horizon that the City is working on that's very important. As to the payment to CalPERS, 13 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING NOVEMBER 14, 2019 the City Council can reduce that amount, but staff is still recommending a $1.5 million. Councilmember Harnik moved to: 1) Waive further reading and adopt Resolution No. 2019 - 81, approving and confirming the Fiscal Year 2018-2019 final year-end budget adjustments to revenue and appropriations; 2) by Minute Motion, authorize and: a) Commit replenishment of the Economic Development Reserve in the amount of $1,400,000; b) appropriate an expenditure of $1,500,000 for an additional payment to CaIPERS in Fiscal Year 2019-2020 to reduce the City's unfunded liability from FY 2018-2019 excess revenues. Motion was seconded by Kelly and carried by a 5-0 vote (AYES: Harnik, Jonathan, Kelly, Nestande, and Weber; NOES: None). B. REQUEST FOR AWARD OF CONTRACT TO HF&H CONSULTANTS, LLC, FOR SOLID WASTE, RECYCLING, AND ORGANICS CONSULTING SERVICES IN AN AMOUNT NOT TO EXCEED $323,000 (CONTRACT NO. C39600). Senior Management Analyst Heather Horning stated this was award of contract to a consultant for solid waste, recycling, and organic services. The consultant will sort out upcoming legislation regarding organic recycling and help the City develop programs and also implement them. Councilman Jonathan said the amount seemed excessive to have someone advise the City as to how to implement this upcoming law, adding it was equivalent to three people working full-time for a year. Although he didn't know how far apart, dollars wise, the two proposals were, he questions whether the City made an adequate effort to ensure it was not overspending. Ms. Horning replied that HF&H Consultants was the cheaper of the two, but the contract does include more services. The proposed contract includes three years of ongoing services, in addition to the initial part of developing the programs that need to be put in place, and also assist with annual monitoring of the franchise agreement. There will be monthly or quarterly meetings with staff and Burrtec to ensure the City is complying with the franchise agreement and reporting to the State. She offered this contract included more than just developing programs and it will be ongoing, stating it was a reasonable amount to spend based on the changing of staffing the City's had in years. Historically, the City had several members of staff devoted to helping with solid waste and recycling, and it's currently an expanding task at this point. Mayor Pro Tern Nestande offered that unfortunately, it's another unfunded State mandate the City has to deal with. 14 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING NOVEMBER 14, 2019 Councilman Jonathan agreed, stating this was not even the cost of implementing programs, it was the cost for figuring out what it is the City had to do. Councilmember Harnik said the good news is that the funds are currently in the Recycling Fund and doesn't impact the General Fund. However, once the programs are implemented, there will be an increase in fees for trash and recycling, which will soon need to be addressed. Councilman Jonathan asked if there was the possibility of a lower cost forthe services if the City went out for a more extensive bid. Ms. Horning said she didn't believe so based on other cities contracts for similar types of services, which is why she felt this contract was reasonable. Councilman Jonathan moved to, by Minute Motion: 1) Award subject contract to HF&H Consultants, LLC, Irvine, California, in an amount not to exceed $323,000 for Solid Waste, Recycling, and Organics Consulting Services; 2) appropriate $323,000 from the Recycle Fund to Account No. 2364195-4309000; 3) authorize the Mayor to execute said agreement and any documents necessary to effectuate the actions taken herewith — upon approval, funds will be available in Account No. 2364195-4309000 - Recycling Professional -Other. Motion was seconded by Nestande and carried by a 5-0 vote (AYES: Harnik, Jonathan, Kelly, Nestande, and Weber; NOES: None). C. REQUEST FOR APPROVAL OF VxRAIL DATACENTER SOLUTION FROM ABTECH TECHNOLOGIES FOR $284,898.01. Information Systems Manager Clayton von Helf said this was a much needed and enhanced upgrade for the data center that will replace the core servers. Councilmember Harnik noticed the staff report indicates the host servers are at the end of the warranty, questioning when they were originally put in. Mr. von Helf replied it was 2008 when they were originally implemented. Councilmember Harnik moved to, by Minute Motion, approve the purchase from Abtech Technologies, Carlsbad, California, of Dell hardware, switches, and services to install and configure a VxRail datacenter solution in the amount of $284,898.01 — funds are available in the Equipment Replacement Fund. Motion was seconded by Nestande and carried by a 5-0 vote (AYES: Harnik, Jonathan, Kelly, Nestande, and Weber; NOES: None). 15 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING in 21 NOVEMBER 14, 2019 D. REQUEST FOR APPROVAL OF A PROPOSAL FROM THE MATRIX CONSULTING GROUP IN THE AMOUNT OF $59,000 TO CONDUCT A JOINT POLICE CONTRACT FEASIBILITY STUDY IN CONJUNCTION WITH THE CITIES OF INDIAN WELLS AND LA QUINTA (CONTRACT NO. C39610). Mr. Aryan stated city government across the United States are spending much more on policing than they did a few years ago. In fact, over the past ten years, in Palm Desert, the police service contract has increased approximately 40%. Whether the nature of police services allows for Economist Scale to be realized, it's an important question a city should ask, for both cost and efficiency. In an effort to ascertain such efficiencies and police services, the cities of Palm Desert, Rancho Mirage, La Quinta, and Indian Wells contracted with Matrix Consulting Group. Earlier this year they conducted a workload analysis of the police departments that also serve under contract by the Riverside County Sheriff's Department. They also explored the feasibility of all four cities developing a joint contract with the County for law enforcement services. The consultant found efficiencies in staffing and programming, and the four communities may realize through a regional policing model, could also provide additional savings by finding the level of corrected time officers spend outside of responding to calls. For consideration before the City Council is a Phase II proposal to conduct an in-depth study of having a joint contract. The City of Rancho Mirage indicated they are no longer interested in participating in a joint contract model, but they may reconsider at any time. The study will take about five months to complete and will require input and collaboration from both staff and police administration. Ultimately, the primary goal is to see if a regional contract model can be both cost effective and effectively provide law enforcement services as compared to how services are currently provided today. The total cost of the study is $59,000, which will be shared equally among three cities; each city will pay just less than $20,000. The Public Safety Commission reviewed this item in October, but due to one commissioner being absent, there was a tie vote for moving this forward. One primary concern, for those that voted no, was the potential reduction of officers needed dependent upon the level of proactive policing time, as noted within the report. However, he stressed cities can determine desired levels of proactive time, and therefore, the overall impact any staffing changes would have been due to consolidation. Once the study is completed, he anticipates taking this matter before the Cove Commission and back to the Public Safety Commission, and ultimately the City Council for further recommendation. Councilman Jonathan said this effort started with Palm Desert, Indian Wells, La Quinta, and Rancho Mirage, and now he understands the City of Rancho Mirage has changed their mind. 16 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING NOVEMBER 14, 2019 Mr. Aryan explained the City of Rancho Mirage was concerned with the level of staffing reductions proposed by the consultant, but again, the cities individually can determine what that is. He noted there are other efficiencies through Economists of Scale that are realized that wouldn't have such a detrimental effect on staffing reduction of patrol officers. He said the City of Rancho Mirage's future involvement may or may not change based on that information. Councilman Jonathan recalled the analysis provided data that focused on potential reductions that would not impact public safety. Mr. Aryan agreed, stating those were primarily administrative functions such as having three to four lieutenants versus two, and the amount of staffing oversight needed is based on consolidation. Councilmember Harnik moved to, by Minute Motion, approve a proposal from the Matrix Consulting Group, Mountain View, California, in the amount of $59,000 to conduct a Joint Police Contract Feasibility Study in conjunction with the Cities of Indian Wells and La Quinta, and authorize the City Manager to execute any related documents — funds are available in Account No. 1104210-4304200, and no appropriation is required. Motion was seconded by Kelly and carried by a 5-0 vote (AYES: Harnik, Jonathan, Kelly, Nestande, and Weber; NOES: None). E. INFORMATIONAL UPDATE AND A REQUEST FOR APPOINTMENT OF TWO (2) CITY COUNCILMEMBERS TO SERVE ON THE SUBCOMMITTEE PROVIDING INPUT REGARDING AESTHETIC FEATURES FOR PROPOSED COUNCIL CHAMBER RENOVATION PROJECT. Project Manager Emily Roethler noted the staff report acting as an informational report and request for two Councilmembers to join a subcommittee in making decisions on aesthetic features such as color schemes, fabric, and other upgrade that may be needed. Councilmember Harnik said the last renovation took place 20 years ago and it stood the test of time, therefore, she felt the City should obtain professionals to do this type of work. Mayor Pro Tern Nestande concurred. Mr. Firestine explained the City did retain professionals and an architect that assisted in selecting several color palettes that would stand the test of time. Staff also recognizes the Council Chamber is a special place occupied by the City Council and the public. Therefore, the selection of one of several palettes is one that may necessitate input from the City Council, whether it be the color or material, which is the reason for staff's request to have two Councilmembers join the subcommittee to work through the selections proposed. The time frame for this project is such that staff would like to get 17 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING NOVEMBER 14, 2019 moving on to incorporate it into the design, then put out to bid to enable construction of this project during the off season. Mayor Weber offered that the subcommittee is not making the final selection, but narrowing them down so that the full Council can make the ultimate decision. Councilmember Harnik and Mayor Weber volunteered to serve on the subcommittee. Councilmember Kelly moved to, by Minute Motion: 1) Receive and file the informational update; 2) appointed CouncilmemberJan C. Harnik and Mayor Susan Marie Weber to serve on the subcommittee and provide input regarding aesthetic features for proposed Council Chamber Renovation Project, including the selection of paint colors schemes and finish materials of furniture and other fixtures. Motion was seconded by Nestande and carried by a 5-0 vote (AYES: Harnik, Jonathan, Kelly, Nestande, and Weber; NOES: None). XVII. CONTINUED BUSINESS A. REQUEST FOR AUTHORIZATION OF A ONE-YEAR LEASE AGREEMENT WITH ANTHONY WESTERGAARD FOR THE OPERATION OF A REMOTE -CONTROLLED (RC) RACETRACK ON A VACANT CITY -OWNED PARCEL (APN 640-091-010) (CONTRACT NO. C39460) (Continued from the meeting of October 10, 2019). Management Analyst Jennifer Nelson recalled for the City Council that this item was continued from the meeting of October 10. This contract is a one-year lease agreement for a small piece of City -owned parcel located at the beginning of the Bump and Grind Trail. The Applicant would like to utilize this parcel for a remote control racetrack to invite enthusiasts to events. Councilman Jonathan thanked staff and legal counsel for following up and addressing his issue, because he had concerns for the potential of the City providing economic benefit to a private business. In his opinion, this is a wonderful amenity for residents, and staff has built in some safeguards in the Agreement to ensure this will continue to be a labor of love. Councilman Jonathan moved to, by Minute Motion, authorize the Mayor to execute a one-year Lease Agreement with Anthony Westergaard for the operation of an RC racetrack on a vacant City -owned parcel located on Painters Path (APN 640-091-010). Motion was seconded by Kelly and carried by a 5-0 vote (AYES: Harnik, Jonathan, Kelly, Nestande, and Weber; NOES: None) PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING XVIII. OLD BUSINESS None XIX. PUBLIC HEARINGS NOVEMBER 14, 2019 A. REQUEST FOR ADOPTION OF AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, AMENDING SPECIFIED CHAPTERS OF THE PALM DESERT MUNICIPAL CODE TO ADOPT THE 2019 EDITIONS OF THE CALIFORNIA CODE OF REGULATIONS, TITLE 24, AND RELATED CODES WITH SELECTED APPENDICES AND AMENDMENTS. Mr. Grance pointed out this was the second reading of Ordinance 1351, for adoption of the 2019 Edition of the California Building Code. He said this evening the City is conducting a public hearing and adopting the 2019 Codes. Mayor Weber declared the public hearing gpen and invited public testimony on the matter. With no testimony offered, she declared the public hearing closed. Councilmember Harnik moved to waive further reading and adopt Ordinance No. 1351. Motion was seconded by Kelly and carried by a 5-0 vote (AYES: Harnik, Jonathan, Kelly, Nestande, and Weber; NOES: None). Mayor Weber called a recess at 5:02 p.m. and resumed the meeting at 5:09 p.m. 19 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING NOVEMBER 14, 2019 B. CONSIDERATION OF THE APPROVAL OF A SPECIFIC PLAN, PRECISE PLAN, TENTATIVE TRACT MAP 37639, AND DISPOSITION AND DEVELOPMENT AGREEMENT, INCLUDING APPROVAL AS TO FORM OF ASSOCIATED TRANSIENT OCCUPANCY AGREEMENT AND ACQUISITION AGREEMENT FOR DSRT SURF, A RESORT DEVELOPMENT INCLUSIVE OF A SURF LAGOON AND SURF CENTER FACILITY (RESTAURANT, BAR, RETAIL, AND SUPPORT FACILITIES), UP TO 350 HOTEL ROOMS, AND 88 RESIDENTIAL VILLAS ON A VACANT 17.69-ACRE SITE; CERTIFICATION OF THE ENVIRONMENTAL IMPACT REPORT (EIR) FOR THE DSRT SURF PROJECT LOCATED ON THE WEST SIDE OF DESERT WILLOW DRIVE; AND CONSIDERATION OF CORRESPONDING AB 562 ECONOMIC DEVELOPMENT SUBSIDY REPORT, WHICH DESCRIBES $36.6 MILLION IN SUBSIDIES FOR THE PROJECT Case Nos. SP 18-0002. PP 18-0009. EA 18-0002. and TTM 37639 (Desert Wave Ventures, LLC, Applicant). Principal Planner Eric Ceja stated he would be presenting the planning side of the application like the California Environmental Quality Act (CEQA) and the Environmental Impact Report (EIR), including some planning approvals to effectuate this development. He noted Senior Management Analyst Wayne Olson will discuss the Disposition and Development Agreement (DDA), the sale of the land, and some business terms. The Master Plan for this site was approved in 1994 with the intent for Desert Willow Resort to be an economic tool for the City, and it was envisioned with a number of hotels and resort style development. Today there are two golf courses at the site with the Desert Willow Clubhouse, two hotels, and 400 timeshares. The proposal for the DRST SURF Resort (DSR) will be the first -of -its -kind, professional -grade surfing experience in the United States. It will include a resort style component of an upscale hotel with associated amenities, a restaurant and entertainment. The Applicant today is Desert Wave Ventures, LLC. He said this was a 17.69 acre site, and Phase I of the development includes a surf center, the surf lagoon itself, improvements to support the lagoon, the wave machine control towers, and the resort component for potentially up to a four-story hotel with a maximum of 350 rooms. Phase II of the development, as written into the Specific Plan, could include up to 88 residential villas. The entitlements from a planning perspective include a Specific Plan that outlines the development standards and appropriate land uses forthe 17.69 acre site. The Precise Plan, which follows, establishes the site design and architectural standards forwhat is being proposed in Phase I. At this time, for the resort component, there is no architecture to be shown. If approved, the Applicant would be conditioned to come back with architecture plans for review by the Architectural Review Commission (ARC). There is also a Tentative Tract Map that subdivides the parcel into five separate parcels, and in the EIR, which reviews the project for environmental impacts, identified appropriate measures to mitigate those impacts, and a Statement of Overriding Consideration (SOC) for two specific items. The 411 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING NOVEMBER 14, 2019 surf center itself will function as the project entry, and it will be two-story in height at approximately 33 feet. It will include a number of uses from a gallery, check -in, surf shop, restaurants, dining room and event space. It's approximately 24,000 square feet in size with an expansive outdoor patio. There is also a subterranean parking structure below the surf center. This Center is envisioned to be opened seven days a week from 6:00 a.m. to 2:00 a.m. The surf lagoon is bifurcated with a long pier and apparatus that houses the wave machine. The Applicant anticipates that no more than 75 surfers will be in the lagoon at anyone time, but they will be looking to increase that number to 95 surfers during events. The Surf Lagoon is quite different from the Surf Center, because the Surf Center houses the restaurants and entertainment uses, which is why the Surf Center will be open until 2:00 a.m. As proposed, the Surf Lagoon will operate on weekdays until 10:00 p.m. and on weekends til midnight. To accommodate the early morning and nighttime use, there is surf lighting proposed around the lagoon. He went on to display and describe all the areas and features of the project. As proposed in the Specific Plan and analyzed in the EIR, and as conditioned in the Resolution, this site could host up to15 special events throughout the year. In order to host them, the Applicant would need to prepare and obtain approval for a Parking Management Plan that would identify parking strategies and traffic control for event days. The Applicant actually got in front of this issue by securing letters of support for outside parking from both the Indian Wells Tennis Garden and Cal State University, San Bernardino, Palm Desert Campus, where spectators forthe event would be bussed in. There is also a nightclub component for the Surf Center where they would use amplified music indoors and potentially outdoors as well. The Noise Study has been able to show there would be no impact to surrounding areas. A portion of the site will develop over an existing overflow parking lot for the Desert Willow Clubhouse where there is currently 130 stalls, and with the improvements to this area, there will be 248 stalls to be shared between the Surf Center and Desert Willow. As already mentioned, the Center would be open to 10:00 p.m. on weekdays, so the Applicant came prepared to show renderings and studies, showing there will be minimal impacts to surrounding residential areas. The Line -of -Site Study shows that the Montecito Development is approximately 2,100 feet away from any of the light sources, and it would be difficult to see any of the DSRT SURF buildings. The light poles around the lagoon range from 40 to 80 feet in height, stating the light orientation is shined directly into the lagoon itself. The Applicant submitted the Light Plan to the International Dark Sky Association, and in their review, they certified the Plan as a community friendly facility. He displayed renderings that were provided in the draft EIR that further show the project anticipated build -out from different perspectives like Montecito, the Retreat, and the Westin. One of the first things staff addressed was water usage for the site, so there was a water supply assessment performed for this project. The assessment determined there is enough water to support the project today as well as 20 years in the future. 21 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING NOVEMBER 14, 2019 The Plan was submitted to Coachella Valley Water District and they have accepted and approved it saying there is enough water to support the project. However, the Applicant worked with staff, and is conditioned to participate in the City's Turf Reduction Program, which will require one million square feet of turf removal at Desert Willow's two golf courses. The square foot reduction offsets the water usage at the lagoon itself, and the net increase of water use will come from the villas, hotel, and other ancillary buildings. As part of the EIR, the Mitigation and Monitoring Reporting Program that is attached as an Exhibit, identifies mitigation measures to lessen those environmental impacts. The Statement of Overriding Consideration (SOC) shows that even with mitigation measures, it cannot mitigate all the air quality and greenhouse gas issues with the project, at least for air quality, because there is a non -attainment area. There are some specific project impacts related to air quality where the project can't meet the standards set forth by the South Coast Air Quality District. The EIR was reviewed by the Planning Commission in October and voted to recommend approval of that document to the City Council. Sr. Management Analyst with Economic Development Wayne Olson stated he would be covering the land transaction and attachments to the staff report regarding the Development Agreement (DA). There are three parcels involved with the project, and one is a previous Redevelopment Agency owned parcel, which is Parcel B of 14.65 acres, and two parcels owned by the City referred to the Desert Willow Golf Resort Overflow Lot. Two option agreements control those properties, the first is the Purchase Option Agreement (POA), and the fair market value of that land has been appraised at $2,050,000. A second City POA controls the sale of the second two parcels for $455,000 at fair market value. It should be noted the DDA that's being reviewed this evening displaces the City's POA and becomes a controlling document for the disposition of those two parcels. The City land contribution is considered as part of the incentive package. There are four agreements in City Council packet, attachments 14-15, which he will review briefly. The first attachment is No. 14, the Disposition and Development Agreement (DDA), and this document covers the disposition of land, the terms, various milestones, a schedule, and requirements for both the developer and City until close of escrow, which will be found in Exhibit 9 of the DDA. Under Section 3.1 of the DDA, is the "Term," which is 12 months for close of escrow. The developer has a number of requirements needing to be met prior to close of escrow. In addition to the 12 months, there are two six-month extensions, and a third six-month extension that is optional; a total of 18-months of extensions is possible after the initial 12 months. Therefore, the total between date of execution and close of escrow is 30 months, but when you add 24 months of construction, the total term of the DDA is 54 months or about 41/2 years from execution of the DDA. If the City Council deems approval of the DDA, staff believes the execution of the document would occur in the next few weeks. He called attention to 22 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING NOVEMBER 14, 2019 Section 3.1(b), which includes about a dozen implementing agreements that need to occur prior to the close of escrow. Staff will work with Project Attorney Seth Merewitz with Best Best & Krieger (BB&K) on the documents before close of escrow, and for the Gap Analysis, the City used a third party consultant Keyser Marston Associates (KMA). He said KMA reviewed the development proforma and conducted a Gap Feasibility Analysis where they used a Return on Cost Methodology. The project that was analyzed by KMA is the Surf Center and the Surf Lagoon, but it includes 164-key rooms and 62 villas. Mr. Ceja's presentation is a representation of the Specific Plan, which is the maximum allowed on the site. The current proposal that has been analyzed by KMA is for a project of 164 key rooms and 62 villas. As a result of the incentives that were proposed, the developer is required to pay prevailing wages. The project development costs are in the table shown on Page 5 of Attachment 19. The Hotel Development Cost is $113,596,000, which includes the $2 million in land, and the Surf Destination Cost is $76,612,000, therefore, total development cost is about $190 million. The source being proposed this evening to bridge the gap for the development of the project is in the form of $20 million in bond funds for acquisition of project improvements, and a Transient Occupancy Tax Rebate of $16.1 million, along with the City land contribution of $445,000; total sources match the total feasibility gap of $36.6 million. He said Attachment 15 in the DDA refers to the Acquisition Agreement, and Exhibit A was updated and distributed to the City Council a few days ago by the City Clerk's Office, referring to the $20 million of the POA. If you refer to Exhibit A, the Acquisition Agreement, there is a list of public improvements and their costs. The limit that the City will reimburse for the public improvements would be $20 million regardless of the cost, so if the developer's costs are $21 million, the City will only reimburse $20 million. The bond proceeds are a one-time capital fund with no impact to the General Fund. Attachment 16 is the Transient Occupancy Tax (TOT) Agreement, which is a rebate agreement that is performance based. The proposed structure is $16.1 million over 20 years or whichever occurs sooner. He said the intent is to rebate 50% of the hotel keys and 75% of the villa revenue, adding this structure is proposed primarily because it accelerates the City's receipt of 100% of the TOT. Staff estimates it could accelerate as fast as 15 years rather than 20. Attachment 17, the City's Cost Reimbursement Agreement is forthe developerto provide $50,000 of City costs related to consultants on the project. If the project is approved, the cost will be tabulated and begin to incur after this evening's meeting. He called attention to the typo in the staff report that indicates a 30- year projection, but it should be 20 years. He wants to be clear that he is talking about 20-year projections of revenues as analyzed by KMA. The TOT is $41.7 million, along with sales tax and property tax, for a total revenue of $45.3 million of revenues over the next 20 years. Of course you have to deduct the $16.1 million from the TOT, therefore, the total potential revenue to the City over 20 years is $29.2 million for this project. The project benefit is that this will be a year-round destination and the facility is 23 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING NOVEMBER 14, 2019 contemplated to operate both in the summer and in season. He said other project benefits are jobs, as the developer estimates 350 full-time, part-time, temporary construction jobs, and associated City fees as a result of this project. Enhanced revenues will come from entertainment and leisure activities for both the City of Palm Desert and the regional area, as well as increased health benefits for those interested in using the facility. Mr. Ceja said there is a lot to consider in this project with all the attachments and agreements. In summary, for City Council consideration this evening from the Planning Department is a Resolution for approval of the Specific Plan, Entitlement Package for the Architecture and Site Design Plan, and Tentative Tract Map. Also, a separate Resolution to certify the Environmental Impact Report (EIR), condition for the Turf Reduction Program, Mitigation Monitoring Program (MMP), and Statement of Overriding Conditions (SOC). Like any project, this went before the Architectural Review Commission in April, and they were very complimentary to the architectural quality shown in the drawings and recommended approval. In October, the Planning Commission reviewed the project and found this was an appropriate land use for the Desert Willow Golf Resort and recommended the City Council approve this project. Some of the concerns brought up at the Planning Commission hearings were specific to lighting of the facility. Staff and the Applicant have done an adequate job to show the project impacts should be minimal beyond the perimeter of the project itself and should not impact beyond the boundaries of this project or Desert Willow. Additionally, there are also Minute Motions for approval of the Disposition and Development Agreement (DDA) and other agreements that are subject to that document. Lastly, in staff's review of the project, they found this project advances many of Palm Desert's goals and policy related to the Envision Palm Desert Strategic Plan and it expands tourism, which will help shoulder the off season for hotel occupancy. He said this is a resort and entertainment land use designation for Desert Willow Golf Resort, and the resort component with the recreational opportunity of a surf lagoon, definitely fits into the goals and policies of the General Plan. There is also an Economic Development Strategic Plan that is further advanced by this project proposal. Documents like the Specific Plan and EIR analyzed the impacts of this project and adequately addressed some of the concerns during the public comment period. He pointed out this was a public hearing item and staff has received public comments both in support and others who had concerns with the project. He noted the Applicant also had their own presentation. Councilman Jonathan stated Council spent a lot of time gaining an understanding of this project by having a couple of study sessions, meeting with the developer, and meeting with citizens. He asked for clarification on the parking arrangement as staff indicated there are currently 130 spaces at the Desert Willow overflow lot, and after the project is completed, there will 24 PRELIMINARY MINUTES ®RAF` REGULAR PALM DESERT CITY COUNCIL MEETING NOVEMBER 14, 2019 be 248 stalls to be shared with the proposed project. He asked if the project had other parking spaces exclusive of that shared 248 spaces. Mr. Ceja answered yes, stating the public parking, the 248 shared spaces, is a combination of some new surface spaces around the Surf Center, as well as about 150 that are subterranean. He said those are shared spaces open to the public, and as the hotel develops it will have its own parking, and as the residential villas develop they will have their own parking as well. Councilman Jonathan said his next question has to do with the traffic circulation, ingress and egress. He said Council has been told before there is a single point of access and that's at Desert Willow Drive. He knows there will be discussions about future projects and future developments and what that will do to Desert Willow Drive, but as far as this project, he questioned if staff concluded that Desert Willow Drive can accommodate the anticipated volume of traffic. Mr. Ceja replied there was a Traffic Impact Analysis prepared that analyzed peak traffic demand for the project itself inclusive of a more intensive development, because the Specific Plan was set up for up to 350 hotel rooms and it analyzed that type of project. The Traffic Impact Analysis shows that Desert Willow Drive can accommodate this project, as well as future development of the vacant parcels at Desert Willow. Councilmember Kelly understands that part of the proposal includes a new signal at Cook Street and Market Place, just north of the shopping center so that there would be two points of entry converging onto Desert Willow Drive. Mr. Ceja agreed, stating one of the conditions is that a new signal will be installed on Market Place and Cook Street that will allow for northbound traffic access onto Market Place, and also a better exiting place from Market Place onto Cook Street. He said both entries come back into Desert Willow Drive and take people to the Desert Willow Clubhouse and Surf Center. On behalf of the Applicant, a two -minute video of the Wave Garden located in Spain, which is a smaller scale project using similar technology, was shown to show the City Council and the public what the intent is with this project. MR. DOUG SHERES, Developer with Desert Wave Ventures, LLC, Applicant, stated he knows this is a large and complicated project, so he wanted to thank staff because there has been a lot of work done on both the City's end and their side as well. He thanked the community for the amount of support received from community members, organizations, YMCA, Desert Sands Unified School District (DSUSD), Chamber of Commerce, local businesses, and adjacent neighbors to the project, which has really been incredible. The core groups of people that started this project are all surfers and passionate about surfing. As surfers, we are passionate about the 25 PRELIMINARY MINUTES DRAFT' REGULAR PALM DESERT CITY COUNCIL MEETING NOVEMBER 14, 2019 ocean and raising families in the water, and we've seen the benefits of it, because it's an outdoor sport, it's healthy, and brings community together. Surfers travel the world looking for opportunities to surf good waves and have these experiences with family and friends. Secondly, the advent of technology, like so many things, has affected surfing. For the first time now there is technology that can create ocean -like, high -quality waves outside the ocean. He said waves can be created for advance and beginners, stating it's truly a multi -generational activity that has opportunity for everybody to participate, and in combining those two, they started looking for a place to build a facility that had the right aesthetic and feel. He always tells people this is not a water park nor does he want to build a hole in the ground next to a freeway, but sought to build something that felt natural and paid homage to the ocean, and be able to provide a premium experience. He said him and John Luff, 21/2 years ago drove down Desert Willow Drive and looked at the native vegetation, which is fantastic, including the lakes, greens, and the mountain vistas, and they literally went straight to City Hall to meet with the City Manager. And now here they are 21/2 years later before the City Council presenting their project. He introduced his partners, John Luff, Dave Likins, Don Rady, and Marco Gonzalez. The people who have been working on this project and have been invaluable are Michelle Rivas from Douglas Wilson Companies, Nicole Criste and Kelly Clark from Terra Nova, James Bazua from The Altum Group, William Duncanson from BAR Architects, John Vuksic from Prest Vuksic Architects, Ron Gregory and Jarvis Payne with RGA Landscape Architects, and Marco Gonzalez from Coast Law Group who is both a partner and land use attorney. MR. MARCO GONZALEZ stated he was with Coast Law Group, a boutique law firm in Encinitas, California, representing environmental interests and responsible developers around California. The team comes to this project with a unique perspective, as they are really a surfing -based law firm, creating the first surfing destination resort. He and Mr. Sheres have known each other for about 20 years and the opportunity to work on this project was a culmination of a lot of experienced people, including his entire firm. Having heard the great presentation of staff, he will focus on things staff has not covered. He said the team spent a lot of time with City Staff on many aspects of this project. In particular, this past month, they negotiated the large packet of agreements that are before the City Council. He thanked City staff, specifically, Director of Economic Development Martin Alvarez, Senior Development Analyst Wayne Olson, Principal Planner Eric Ceja, and City Manager Lauri Aylaian, adding he was proud of what has been accomplished thus far and looking forward to the next phase. He said Mr. Sheres talked about the company, so he will talk about DSRT SURF and what some of the architectural objectives are going forward, including direct and indirect community benefits and concerns. The notion of being the first four -season destination surf resort in North America is a big deal as it would put Palm Desert at the nexus between resort living and beach culture. He said surfing 26 PRELIMINARY MINUTES D RA � ` � REGULAR PALM DESERT CITY COUNCIL MEETING NOVEMBER 14, 2019 is unique, because there is no other sport, hobby, or lifestyle where there is clothing, surf equipment, music, and art; the entire surf industry is a multimillion dollar fashion industry. Under all that, there is also an environmental component to it, because as a surfer you learn that if the earth isn't protected, you lose your resource, the fun, and the lifestyle. In looking at the technology that has been made available, with our partner Wave Garden out in Spain who started this process with that one -acre surf lagoon, they knew conceptually and engineering wise they could build something bigger. Up until recently, in the last month, they have seen two lagoons built. In the packet you can see a picture of the one in Bristol, England, which was the first lagoon that showed what the waves would look like on 5-acres, and then there is URBN Surf in Melbourne, Australia that has recently made headlines with some of their PR videos. The waves have been phenomenal and surfers, kids, and grandparents are saying this is a new paradigm. He added that Palm Desert is going to be the first in North America and really the first in the world to have a surf pool matched up with the destination resort. There are a couple of other technologies out there, but Wave Garden and the Cove, have the best technology. With these large pools now open, they have learned this is the most commercially viable and most successful technology available on the market today. This creates a new resort model where they can start to look at synergies between traditional resorts and the surfing aesthetic. He said the team looked over the entire country for the right place to start this venture, and there was none better than the Coachella Valley, and in the Coachella Valley there was nowhere better than Palm Desert, and within Palm Desert, there was nowhere better than Desert Willow. The stars were aligning too perfectly, they had to pinch themselves, because here they have an amazing facility that was zoned for resort development and it was the right size in the right location, with the right climate. It's incredibility important that this location also provide an opportunity to meet water sustainability goals. In other places they looked, they couldn't make the same claims with their Turf for Surf Program. He wanted to clarify that Planning Area 1 is the Surf Center and Surf Lagoon, because there was a confusing slide in the City's presentation about Phase I development included the hotel. He intends to build them at the same time, but in terms of the approvals they are seeking today, the Specific Plan covers the entire project, but the Precise Plan and Phase 1 Planning Area is the Surf Center and Surf Lagoon. Prior to speaking to the City, they spent a lot of time architecturally on how to make this project feel like the beach and pay homage to the desert aesthetics. They wanted more Baja than Bali, because they are seeing an emergence of food culture and sustainability in the Valle de Guadalupe. The architecture and products used there provided an amazing palette to start their conceptualization as they want the project to be contemporary and clean with the availability of sustainable materials. Lastly, there is the goal of creating the surf experience. Having traveled the world and seeing how they do it in Hawaii, Tahiti, and South America, they want to make sure that when folks come to Palm Desert, they know what 27 PRELIMINARY MINUTES DRAFT' REGULAR PALM DESERT CITY COUNCIL MEETING NOVEMBER 14, 2019 barefoot luxury really means. People won't feel like they have to be walking around with a collard shirt or shoes, because people will be in flip flops and walking around barefoot at the beach, but in Palm Desert. As seen in the renderings, they have put a lot of effort in architecture and matching up with what's already in the desert, Desert Willow, and the adjacent Westin, in order to fit seamlessly. With respect to community benefits, they are looking beyond the TOT and tax revenues, because they believe this project will be a boom for tourism in Palm Desert, the restaurants, and shopping. Frankly, there are things they can't even anticipate, for instance, today in the parking lot they saw the Coachella Valley Surf Club, which they didn't start. There are folks already looking at surfing in the desert and saying they can do a lot with this, and he's already seen a great response from local residents, schools and the Chamber of Commerce, all who are very excited about the project. This project will provide the perfect venue for everyone to get wet and have a great time. He said DSRT SURF will be a year-round destination and hopefully it will boost hotel occupancy during the shoulder season. He felt Mr. Olson did a great job of going through the financials, so he will go on to the community concerns. The team recognized they had to address the water concerns, so they went to Coachella Valley Water District (CVWD) to understand the Aquifer. They had to arrive at a place where he could face the families and the environmental groups he's represented for more than 20 years, and be able to say he felt good about the project, because they came up with a plan to mitigate the water use in the lagoon. The analysis conducted indicated the average user of the surf lagoon per session will require 162 gallons of water compared to approximately 7,000 gallons per round of golf at Desert Willow. The total lagoon usage will be 73 acre feet per year, which is 1 /27th of water consumed by Desert Willow Golf in a year. Their plan is to mitigate 100% of the surf lagoon use through a three-tier program. The first is the Turf for Surf Program, and the Aquifer Recharge Fee from CVWD that will more than mitigate the total use combined with the Turf for Surf. Additionally, they will have a long-term Endowment Funding. Every person that comes to surf will pay a surcharge of $1 to $3, which will go into a non -waste fund that will allow to create grants throughout Palm Desert and Valley, so that others who might convert their turf or come up with other conservation opportunities, will have a source of funding that goes beyond CVWD or the Metropolitan Water District. The City for a long time has looked for opportunities to reduce the water use at Desert Willow through a nonessential turf reduction, but they didn't have a way to pay for it, which is what they will be doing. They will pay for it by taking more than a million square feet of existing turf outside of the play areas and replacing it with desert sensitive drought tolerant landscape. They will actually save 106.8 acre feet, which is 40% more than the evaporative and maintenance loss that will experience from the surf lagoon. When they do the maintenance on the lagoon and have to empty the pool, they will discharge that water onto the on -site lakes where they can be used for golf irrigation or for percolation into the Aquifer, or into the back flow. He said they heard PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING NOVEMBER 14, 2019 concerns of noise, so they did a noise study and as the EIR found, there are no significant impacts expected outside the boundaries of the property. The way that the site will be built up and the pool dropped down, it's going to be naturally bermed and buffered by some of the structures. The ultimate confidence they have on their sound attenuation is shown on the fact that they will locate their luxury villas and hotel immediately adjacent to the pool. They are confident that the Montecito, Retreat, and the Westin developments will be well -taken care of with their site design. He believes staff covered the parking, and as noted, they will be contributing to a new signal light at Market Place Drive and Cook Street, adding they were happy the Traffic Study found no additional significant impact at the Desert Willow Drive intersection. Now the dark sky is a big issue, so at the very onset they looked for a lighting partner that was at the forefront and world class, providing an opportunity to do something unique, and they are willing to go the extra mile to do so. He displayed photographs from Musco Sports Lighting, their lighting partner, showing the difference between what they are proposing and what is being used today. They are proposing a slimmer profile with poles ranging from 80 feet in height, and others ranging from 40 to 70 feet. These light enclosures are selected to minimize impacts to neighbors and onsite hotels. He said it was important to project the long- range view of the mountains, horizon, and blue skies. They are excited to move forward with this project and hope the City Council moves for approval this evening. He believes they will be great partners to the community, creating direct and indirect benefits. Additionally, they have done the work to be sensitive to neighbors and create a sustainability story that all can be proud of here in the Desert. Mayor Weber declared the public hearing open and invited public testimony FAVORING or OPPOSING this project. MR. KERRY BERMAN, Narcissus Drive, Palm Desert, admires this project as he thinks it's incredible, and he's conflicted because Desert Willow has been an exemplary example of a golf course for setting the tone for conservation of water. He said the developer has stated there are 100 acre feet of water per year that was used by the golf course, and the lagoon will only use 73.04 acres, thus saving water. A one -acre foot is 326,000 gallons of water, so with that said, the total amount of water is going to be somewhere between 52 million plus gallons. Also, is that 73 acres going to be in addition, because it's not replacing the golf course water usage. He said there has been overdrafting of the Aquifer by 15% to 30% per year, and there is a State of Emergency regarding the Salton Sea, which is on the brink of a health, environmental, and economic disaster. There will be no need for future economic development if no one can breathe the air containing fine particular matter causing health problems. Surfing in the current environment that does not meet acceptable air quality standards is a public and health concern for sports enthusiasts and children. He loves the fact 29 PRELIMINARY MINUTES DRAFT" REGULAR PALM DESERT CITY COUNCIL MEETING NOVEMBER 14, 2019 that they are volunteering to mitigate and address water conservation, but water can't be replaced. He's concerned out the Aquifer, environment, pollution, and the State of Emergency that Imperial County has recently sent to the Governor regarding the Salton Sea, combined with using more of our water is going to be challenging. MR. DAVID MIDDLETON registered his opposition to DSRT SURF for the misuse and waste of water, environmental consequences, and adverse effects to the community with no clear benefits. He believes the sacrifices are to benefit visitors and out-of-town businesses, which he felt was a disservice to the residents of Palm Desert and the Coachella Valley. He added he didn't think the average Palm Desert household will be able to afford the likely admission price for the DSRT SURF Resort. In his review of other surf parks, businesses in close proximity to the parks have benefitted, but others further away not so much. Water used to irrigate a golf course should be non -potable and hopes Desert Willow is not using drinking water to keep the lawn green, but water for the lagoon will have to be clean water. It doesn't seem that using potable water for one resource means that you save using non -potable water for another. Therefore, water savings will evaporate when the hotels open. Other cities with underused golf courses are working with local land trusts to convert them into open spaces and reserves, stating these uses truly conserve water and sustain the environment. Any increase lighting, no matter where it's pointed, will have an adverse effect on human health and endanger desert wildlife. The hotels and restaurants will be producing a lot of trash, including non -recyclable and non -degrading plastic, and increased traffic will create vehicle emissions. Other surf parks have 8,000 visitors a day, which are a lot of vehicles spewing a lot of emissions. He believed everyone should be working to improve the environment and address climate change at the local level. He urged the City Council to vote for the community and environment and reject this project. MR. JOHN VUKSIC, Prest-Vuksic Architects, stated he had the privilege of spending time with the owner and the design team for 11/2 years now discussing and critiquing the design work, which has been a fun process. He said the design team for this project is extremely talented and the owner has a keen sense of design. He added the owner is determined to create a project that has the right feel, and he has witnessed nothing but professionalism at every turn from the development team. He believes this is an outstanding design and a real opportunity for the City of Palm Desert, stating he hopes the City Council approves the project. MR. DAVID HILTS, Salt Cedar Street, Palm Desert, noted he was a surfer and is involved in the surfing industry; he owns a small clothing company and sells surf ware. Most recently, he started a nonprofit surf club called the Coachella Valley Surf Club, because he saw an opportunity to get young 30 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING NOVEMBER 14, 2019 people involved in surfing. He has surfed for more than 50 years, stating it's the kind of sport you get excited about that it becomes a lifestyle, which also happens to be a healthy one. He said there is not a lot to do in the Valley for young people, especially in the summer, and this is a great opportunity to get them exposed to surfing and hopefully it will carry into their lives. He shared that at the last meeting he met a young lady by the name of Krysten Gonda, and she got "stoked" about surfing. She is a teacher at Desert Mirage High School in Thermal, California, and she started a surf club. They have partnered to get equipment for the club, and the lagoon isn't even here yet, but they are getting positive results. He strongly recommended approval of the project and thought this was totally forward thinking. MR. DAVID LUDWIG, Apache Road, Indian Wells, noted he was the pastor of the Presbyterian Church on Highway 74. At his best, he doesn't speak selfishly, but in this case, he believes this technology and amenity will provide a great deal of joy for himself and his family. The idea of friends and neighbors being pulled together would be great. In the video, there was a mother that spoke about the family interaction that takes place in the water, which he experienced growing up and he wishes that for his kids. Selflessly speaking, he thinks about the countless kids, particularly at the two high schools that might not participate in traditional or organized sports; this was an opportunity for them to participate in a life-long sport. He urged Council to approve the project, because he believes it will bring a lot to the community. MR. GORDON JOHANSEN, Retreat Circle, Palm Desert, stated he lives in a 112-unit project that is 1 1/2 years old, and it's on Portola Avenue. He is also a member of the homeowners association board, but he's here as a resident. He is a 14-year resident of the Coachella Valley and is retired. He has met with the DRST SURF principals, and they have addressed the concerns, which were both lighting and noise. The project contributes strong to the Palm Desert foundation of TOT and further supports the City's fathers and City staff commitment to activities combined with good financial stewardship. In his opinion, Palm Desert is the best run City in the Coachella Valley, and it's one of the major reasons he relocated here 1'/2 years ago. He strongly endorses this $150 million project in Palm Desert. He went on to say his HOA conducted a survey and 90% of the residents that responded approved of the project. MR. DENNIS BREALEY, Covington Drive, Palm Desert, offered he was President of the Montecito Homeowners Association. He has been in contact with the principals of Desert Wave Ventures since February of this year. He appreciates City staff putting him in contact with them, because it's made the entire process go so much smoother. In his initial meeting with the developer he voiced his concerns of noise, water usage, traffic, and lighting. He was in regular contact with the principals, and at all times they have been 31 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING NOVEMBER 14, 2019 willing to listen, and if appropriate, offered to meet directly with the community. He admitted being baffled by CVWD, who recently paid him $1,000 for converting to drought tolerant landscaping, yet approving a 50 million gallons per year water usage project. However, given CVWD has approved the project, they are obviously confident they can supply water. He has no doubt the Surf for Turf Program is a big part of it. As a very frequent Desert Willow golf user, he will be watching that issue closely. He pointed out a million square feet of turf is equivalent to 121/2 national football stadiums of grass. With regard to the noise concern, the developer has assured him the wave making equipment is the quietest in the industry, and any noise from the nightclub and patio areas, they advise they will be able to address with state-of-the-art speakers and directional applications. He is confident traffic studies have been done, because it is a concern as there is only one ingress/egress onto Cook Street, and they already have issues getting out of the community with existing traffic flows. He called on the City to continue to monitor this as the additional developments go into the Desert Willow area. Lighting became a serious concern when he attended the Planning Commission meeting when he learned of the 80-foot tall poles. He understood they will be using state-of-the-art lighting with a downward focus and it was approved by the Dark Sky community. Based on his meeting with the developer and hearing about their solutions to his concerns, he was pleased to offer his full support to the project, stating the design and style will make it a beautiful addition to the Desert Willow Resort properties complex and the City of Palm Desert. MR. IAN OSUR, Covington Drive, Palm Desert, stated he came late to this project with some concerns. The first concern is the lighting projection, because one views the site survey and takes into consideration the Turf for Surf, but he's not convinced the project will be fully shield. He believed the site survey was completed before most of the vegetation has begun to be removed and it's a great concern to residents of Montecito. Secondly, the original plans called for a 164-room hotel and somehow it's been expanded to 350, and the villas were supposed to be 66 and now they are 88, so they are greatly concerned about the increase of traffic this will cause. He asked that staff continue to monitor the traffic in the area. Additionally, he is concerned the nightclub will be open to 2:00 a.m. and the restaurants opened until midnight, which he didn't find compatible with the lifestyle here. He retired here from Miami, Florida to be near the grandchildren, so he felt Council needed to reconsider having these amenities open til late at night, because it will impact so many peoples way of living. MS. CAMILA RODRIGUEZ, Coachella, California, stated she was a Desert Mirage High School student and President of the East Valley Board Riders. They are a very proud surf club based in Thermal, and they are here this evening in support of the project. When they were introduced to surfing it no longer became an activity they knew about and never experienced, it has 32 PRELIMINARY MINUTES � �� � �� REGULAR PALM DESERT CITY COUNCIL MEETING NOVEMBER 14, 2019 become a way of life. Honestly speaking, it was a struggle the first few thousand times, but when she finally got it, she was in disbelief. The Club hopes that DSRT SURF can be a place that exposes the community to the wonders of surfing. MR. OSCAR SALAZAR, Thermal, California, a member of the East Valley Board Riders, believes the surf project will be a benefit to the Coachella Valley. Initially, the Club was low in funds, so fundraising was a priority in order to find the means for transportation to get to the beach. His first trip was life changing and he learned that surfing is not only an activity, but a fun experience. He said surfing can be expanded across the Valley to create a new culture, perhaps even adding it as a new sport or making it part of the school curriculum. MR. DAVID PAUL stated he represented Save Our Mojave, which is a nonprofit organization that raises public awareness about environmental threats to California deserts and desert communities. The organization doesn't oppose surfing or economic development, but they do oppose recreating the ocean in the middle of the desert. They oppose building a giant concrete hole that will be filled with water borrowed from the Colorado River. He feels the EIR failed to address the law that President Trump signed earlier this year, which is the Colorado River Drought Contingency Plan. They have reclamations to begin limiting the allocations of water to the states under the Water Pack, including California. He said those allocations will be limited any time the water levels in both Lake Powell and Lake Mead drops below a predetermined mark. This community relies heavily on source substitution. Proponents have pointed out that since the 1980's some of the water tables have been rising, but thaYs a sore substitution. Because the EIR failed to address the Colorado River Drought Contingency Plan, it fails under CEQA standards. The EIR identified a significant unavoidable impact, and those include increased greenhouse emissions and a decrease in air quality. It's known the Coachella Valley is already in violation of the Ozone levels and this project will only add to it. The option proposed by the Planning Commission is to adopt a Statement of Overriding Consideration, and the benefit to the community outweigh any harm. However, he doesn't believe it presents all sides of the coin to the community. As adults in the room, he believed we have an obligation to teach our children to surf and not fear the ocean, which is literally two hours away. Using 53 million gallons for the project is not a good idea, and Save Our Mojave thinks the Turf for Surf in not a good analysis. Councilmember Harnik read out loud a letter from President and CEO of the Palm Springs Convention and Visitors Bureau (CVB) Scott White in support of the project, which states, "Our 2016 Deve/opment P/an and recent Destination Nexus Study supports the new attraction. An attraction of this kind is important for the long-term health of our tourism economy. If tourism 33 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING , � t NOVEMBER 14, 2019 did not exist to the level it does today, each household would have to contribute an additional $3,700 in taxes for local government to deliver the current /eve/ of services. Our research indicates this project is an important attraction. Visitors are /ooking for outdoor adventure and water is a key component. A unique water experience is a critical component that we are missing in the Coachella Valley. We understand you have many factors to consider, but from a tourism perspective, this attraction will elevate our destination and support our economy. It is a wonderful opportunity for the City of Pa/m Desert and hope you can work out all the details." She said the Development Plan and Destination Nexus Study can be found on their website at MR. ADAM SMITH, Regency Palms HOA President, stated everyone in his community are in support of the project and they are also excited. He shared he has a four-year-old daughter who is extremely active, who loves water sports, and they can only get to the ocean once a month, adding they would go daily to DSRT SURF if they are able to afford it. He gave high marks to the Applicant and City staff on their presentation, stating that as a senior mechanical engineer he has a great understanding of most of the technology being used, and in his opinion, the developers are doing an amazing job. The big concerns they had were lighting and use of water. The water reduction techniques being proposed are impressive. He understands the reasons for going higher with LED lighting and pointing downward with the higher technology. He said their community is 100% in favor of the project, and as a father and homeowner, he is a big proponent. MS. ANGELINA (Last name spelling ?), Mecca, California, a student at Desert Mirage High School in Thermal and a member of East Valley Board Riders, stated she fully supports this project, because it would be beneficial to their club. They are currently at 40 members, and they have a waiting list. She said driving for 2�h hours with only three vans available once a month is difficult, because they have to find drivers to go to New Port or Huntington Beach. Having a location nearby to go surfing would be very helpful to students that want to experience it. With no further testimony being offered, Mayor Weber declared the public hearing closed. Councilman Jonathan sent a shout-out to the students of Desert Mirage High School, thanking them for making the drive out to Palm Desert to provide their input. He said the City opens its arms to them and they are always welcomed here. W ith regard to this project, he said the public support for this project is not lost to him. Clearly this is a unique amenity that will appeal to 34 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING ��� � �.' . � . i.__ .�_ ..Z _ NOVEMBER 14, 2019 visitors and residents of the Coachella Valley, all the way to Mecca. He recognizes this is an opportunity not just in this area or around the country, but in the world. This project is also consistent with the City's vision for Palm Desert, and as stated by the CVB President, adding to healthy activities and being outdoors, is part of its vision for the Coachella Valley. The economic benefits are clear, which he felt have been understated this evening. Certainly there will be TOT revenue, which is important, but it should also be important to the residents. We've heard this evening how the City is so well managed, but parks and streets are not free, and all the things that are provided to Palm Desert residents come from the revenue the City is able to collect. Having a sustained source of revenue is meaningful, not just from a dollar amount, but from a quality of life standpoint. He said this type of resort can serve as a trigger for other developments, because it will attract other hotels, restaurants, and other businesses, including other residents. The concerns raised by residents that the developer addressed are the same ones he had when he initially looked at the project. He is impressed with the mitigation for each of the concerns that the developer was able to put in place. What is sometimes lost when you look at Desert Willow and those empty pads or other bare land, is that they will not remain vacant. Therefore, when you look around and see empty pads, it's not a question of whether or not those pads will be developed, but how they will be developed. In his mind, he weighs the proposed development against other potential developments, and this one comes out a positive. He sees this project as transformative, and he rarely says this, but he wished to express his appreciation and gratefulness to the developer for choosing Palm Desert to undertake this project as they have been terrific partners. Councilmember Kelly stated Palm Desert has long been a leader in environmental sensitivity that when Desert Willow was first constructed, the universal uses of grey water to sustain the golf course was sufficiently innovative that the golf course appeared on the cover of the Smithsonian Magazine. It represented the City's commitment to avail itself of the best technology to balance essential development with environmental sensitivity. This project comes with so much thoughtfulness in the plan for water utilization, mitigation of light and noise factors that it truly represents a bold next chapter in Palm Desert's respect for environmental concerns. Therefore, she wholeheartedly embraces the project, because it represents a perfect example of Palm Desert patiently waiting for the right project, and this one is unquestionably right for the location. She said this project brings the best technology and architecture she's seen, including the best communal benefits to accompany the very positive economic impact. She thanked the students of Desert Mirage for being participators in government, and City staff and the Applicants for working so diligently on something that is completely ready to be approved. 35 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING DF�A��� NOVEMBER 14, 2019 Mayor Pro Tem Nestande concurred with her colleagues comments. In serving on the Chamber of Commerce committees and having family and friends that are restaurant or business owners, the summer months are tough to get through financially. She knows people that actually close shop during the summer, because iYs more expensive to stay open. Therefore, from everything she has reviewed and seen, this is an economic game changer as mentioned by Scott White from the Convention and Visitors Bureau. Also, this is a great benefit for the youth, stating she's happy to see students here from Desert Mirage, because that will include all the other schools around the Valley who are yearning for something like this. She thanked everyone involved for all their hard work. Councilmember Harnik agreed with Scott White's comment that this project is wonderful for tourism. She asked Mr. Sheres to explain how he came about finding Desert Willow. MR. SHERES responded they had been looking for a site for about a year and had visited numerous sites. In fact, they were actually under contract on several properties in southern California. They were interested in finding something in the desert, because of the weather and the destination appeal, but in order to make the project successful, they wanted to provide a resort component to it. They looked at different sites here locally, and in one particular day they looked at a site down the street on the other side of Interstate 10, but they didn't like it, so as they were driving back they drove down Desert Willow Drive and thought the place was unbelievable. He said John Luff was familiar with the project that was previously proposed, and he didn't know what happened to it, so they drove to City Hall and spoke with City Manager Lauri Aylaian who explained why the previous project didn't happen. Councilmember Harnik recalled meeting with Mr. Sheres and Mr. Luff who looked at the different pads at Desert Willow, and part of the reason they chose the one they did, is because it provided more opportunity for noise and lighting mitigation by not being next to Montecito. It was discovered with the previous project that it would be an issue, so they picked the pad that would be better for the project and the surrounding neighbors. As already mentioned by Councilman Jonathan, those pads are to be used for economic development, so the question was whether it was going to be high-density hotel rooms or something like what is being proposed today. Earlier today on the agenda, everyone heard that public safety costs 40°lo more than it did a few years ago, so the City needs to generate funds to cover those expenses. She asked staff to elaborate on what Mr. lan Osur brought up about the study being done before the vegetation was taken down. �cZ• PRELIMINARY MINUTES � ` _� � �rr REGULAR PALM DESERT CITY COUNCIL MEETING NOVEMBER 14, 2019 Mr. Ceja explained that Mr. Osur's comment was related to the Light Study being done prior to the removal of the vegetation. Councilmember Kelly thought he meant the the vegetation was changed prior to the Study with the red lines. Mr. Hargreaves offered that Mr. Usur thought the turf reduction would somehow remove existing landscaping, but thaYs not the case. Mr. Ceja painted out that more layering of landscape is coming in with this project along its perimeter. Councilmember Harnik understood that the water discharged from the surf lagoon is to be returned to dry wells for infiltration and recycled to the lakes for golf course irrigation, stating the developers found ways to mitigate and be prudent with the use of water. She offered there are a number of other wave parks planned and some are in the works, and "first to market" is an advantage, even though they will not be of the same caliber as DRST SURF. However, she's concerned about what the City's wave park will be called, because she would hate for Palm Desert's to be confused with others. She asked how this can be avoided, adding she would like to see the name "Palm Desert," associated with DRST SURF when it's googled. Mr. Olson said it was a great question and directed her to Section 1.3 of the DDA where there is a naming rights agreement as one of the implementing agreements to be negotiated before the close of escrow. Further responding, he said it's one of the agreements the City Manager and City Attorney will have an opportunity to review and approve. Councilmember Harnik said she heard a caveat and she wants to hear a yes that Council will have an opportunity to have a satisfactory name on DSRT SURF before close of escrow. Mr. Olson replied that it's one of the agreements that hasn't been discussed, so if the City Manager and City Attorney deemed they wanted to bring it back to the City Council, it's certainly an option. Mr. Hargreaves said he heard clear direction from the Council. 37 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING L�J �� �•�� NOVEMBER 14, 2019 Councilman Jonathan offered that naming a project is very important and very sophisticated, so he's not sure that having the name Palm Desert advances the City's cause. He totally endorses City staff looking at it, but he would expand that Palm Desert is featured on the website or marketing materials so that people will know where it's located. He suspects the developer will want people to know where to find it. While he endorsed looking at the issue, he didn't want to give specific direction as to what the name should be. Councilmember Harnik agreed, but she's asking that it be explored, because the City has spent a significant amount of money in marketing and focus groups, and she's learned a lot in those efforts. She went on to say she didn't want to lose an opportunity without further exploration. Mayor Weber asked the Applicant if he wished to address any of the questions raised. MR. GONZALEZ explained that naming was a big issue, even just coming up with "DSRT SURF," because they had put so much thought into the vibe and architecture. Within the team they did a marketing exercise, because everyone on the development team has worked in the surfing industry in various capacities from clothing, nonprofits, events, and other facilities. There is a facility in Melbourne, Australia called URBN Surf, so they started looking at the desert and its location. They understand this project is not in Palm Springs, and the reason they didn't consider "Palm Desert Surf," was because they didn't want to give "palm," that much credence. He said there are so many opportunities to partner with the community, and yes it was Doug and John who drove down Desert Willow Drive, and that was talked about as well, but at the end of the day, the serendipity that put them here linked them. They talked about how they will merchandise DSRT SURF in the surf shop and put in on the map with international media in the surf industry, because there is no question they will be partnering with Palm Desert for the next 30 or 40 years. Now with respect to "first to market," he pointed out Palm Spring's surf club project is coming forward with technology that's untested, and it's only a quarter of the size of what DSRT SURF will be, additionally, it's not a destination surf resort. Frankly, iYs a theme park being reconditioned to a play area, and there are other proposals in the Valley that will try to mimic what they are proposing, but DSRT SURF will be built quicker than the others. He said this project will be the flagship for North America and actually the first in the world to put resort and surfing opportunities together in the desert. He said they bantered back and forth with City staff, and it came down to having trust in the City's Marketing Department and basically unity of interest in coming up with a name and brand that serves all of the needs. He is confident that this won't be an issue m PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING ������N NOVEMBER 14, 2019 or a problem. In response to Mr. David Paul's comments about the overdraft of water from the Colorado River, he said this project will be getting its water from the Aquifer, and while he knew they are sore substitution issues, the EIR is clear that they will be drilling a well at Desert Willow to provide water just as the golf course does. When he brought up the Statement of Overriding Considerations, it called into question the legality of the CEQA compliance. He reminded everyone that CEQA doesn't mandate an outcome, only a process. It required them to look at all the environmental impacts and come up with feasible mitigation measures, and only in those circumstances where there are none, you go to Statement of Overriding Consideration. As Council has already duly noted, they have done the best they can, and he is very confident, as a CEQA practitioner his whole career, that he and the City have dotted all the i's and crossed all the t's. Councilmember Harnik thanked the Desert Mirage students for being here this evening and taking part. She added that her concern with first to market was not that those other would be better, but she didn't want a project that would be less than to ever be confused with this project. She also didn't want the developers to think she wanted it named "Palm Desert Surf," stating she gets the coolness in the URBN and DSRT. She added that she's lived in the Valley for more than 40 years, so she knows about the confusion that occurs when tourist come here. Her suggestion is that the developers work with the City's group who has done a lot of marketing research about Palm Desert, and its positioning in the Coachella Valley in orderto obtain the best results. Councilman Jonathan moved to: 1) Conduct a public hearing to accept testimony regarding subject project; 2) Waive further reading and adopt: a) Resolution No. 2019 - 82, approving Case Nos. SP 18-0002, PP 18-0009, EA 18-0002, and TTM 37639 for the DSRT SURF Project, subject to the conditions of approval; b) Resolution No. 2019 - 83, certifying the EIR and adopting a Statement of Overriding Considerations for the DSRT SURF Project; 3) By Minute Motion, approve/authorize: a) Disposition and Development Agreement (DDA) between City of Palm Desert and Desert Wave Ventures, LLC; b) Transient Occupancy Tax (TOT) Agreement, as to form, with Desert Wave Ventures, LLC, in an amount not to exceed $16.1 million for the operation of a 164-room upper upscale or luxury hotel and 66 villas located on Parcel B within the Desert Willow Golf Resort; c) Acquisition Agreement, as to form, between the City and Desert Wave Ventures, LLC, in the amount of $20 million for acquisition of the public improvements; d) City Manager to make non-substantive changes to the DDA, the TOT Agreement, the Acquisition Agreement, and authorize legal counsel to finalize and the Mayor to execute same; e) City Manager to make non-substantive changes and to execute the DDA's sub- agreement, City Cost Reimbursement Agreement, and other implementing agreements and easements necessary to implement the project; f) appropriation of $20 million of bond proceeds from Fund 451 for costs associated with the public improvements described in 39 PRELIMINARY MINUTES � �� � � REGULAR PALM DESERT CITY COUNCIL MEETING NOVEMBER 14, 2019 the DDA and the Acquisition Agreement to the project account; g) City Manager, in consultation with legal counsel, to take any actions necessary to effectuate these actions, provided such action is not inconsistent with the actions taken herewith. 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 7:08 p.m. SUSAN MARIE WEBER, MAYOR ATTEST: RACHELLE D. KLASSEN, CITY CLERK CITY OF PALM DESERT, CALIFORNIA 40