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HomeMy WebLinkAboutPrelim - CC - 02-22-2018D PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING THURSDAY, FEBRUARY 22, 2018 CIVIC CENTER COUNCIL CHAMBER 73510 FRED WARING DRIVE, PALM DESERT, CA 92260 I. CALL TO ORDER - 3:00 P.M. Mayor Jonathan convened the meeting at 3:05 p.m. II. ROLL CALL Present: Councilmember Jan C. Harnik Councilmember Kathleen Kelly Councilmember Gina Nestande Mayor Pro Tem Susan Marie Weber Mayor Jonathan Also Present: Lauri Aylaian, City Manager Robert W. Hargreaves, City Attorney Rachelle D. Klassen, City Clerk Lori Carney, Director of Administrative Services Russell Grance, Director of Building & Safety Ryan Stendell, Director of Community Development Martin Alvarez, Director of Economic Development Janet M. Moore, Director of Finance/City Treasurer Tim Jonasson, Interim Director of Public Works Frankie Riddle, Director of Special Programs Stephen Y. Aryan, Risk Manager John Cortez, 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 FEBRUARY 22, 2018 IV. ADJOURN TO CLOSED SESSION Request for Closed Session: A. Conference with Real Property Negotiator pursuant to Government Code Section 54956.8: 1) Property: APN 627-071-065 (Alessandro West Corridor Improvements) Negotiating Parties: Agency: Lauri Aylaian/Tim Jonasson/City of Palm Desert Property Owner: Michael J. Castelli Under Negotiation: x Price x Terms of Payment 2) Property: 73220 Highway 111 (APN 627-074-011), Palm Desert (Car Wash Site) Negotiating Parties: Agency: Lauri Aylaian/Martin Alvarez/City of Palm Desert Property Owner: Nick Conti Under Negotiation: x Price x Terms of Payment B. Conference with Legal Counsel regarding significant exposure to litigation pursuant to Government Code Section 54956.9(d)(2): Number of potential cases: 2 C. Conference with Legal Counsel regarding Threat to Public Services or Facilities pursuant to Government Code Section 54957(a): Consultation with Lt. Matt Martello, Asst. Chief of Police, Palm Desert Police Department/Riverside County Sheriff's Department D. Conference with Labor Negotiators pursuant to Government Code Section 54957.6: Agency Representative: City Manager and/or Director of Administrative Services Unrepresented Employee: Director of Public Works With City Council concurrence, Mayor Jonathan adjourned the meeting to Closed Session of the City Council at 3:06 p.m. He reconvened the meeting at 4:10 p.m. V. RECONVENE REGULAR MEETING - 4:00 P.M. A. REPORT ON ACTION FROM CLOSED SESSION. Mr. Hargreaves reported that direction was given, but no reportable action was taken. 2 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING FEBRUARY 22, 2018 VI. PLEDGE OF ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA - Palm Desert Youth Committee Member Clare Kim VII. INVOCATION - Mayor Sabby Jonathan VIII. AWARDS AND PRESENTATIONS A. PRESENTATION OF UPDATE ON ACTIVITIES OF THE PALM DESERT YOUTH COMMITTEE BY MEMBER CLARE KIM. Ms. Kim reported they have continued with their Technology Workshops at the Joslyn Center, and the next one is scheduled for March 14. Also in March, the Committee will meet on the Anti -bullying Workshop they are coordinating with the after -school programs. With the Committee's big project on air quality, they received news that air -quality monitors will be installed within the next few weeks, and their locations are being decided. B. PRESENTATION TO RECOGNIZE MIKE LEWIS FOR HIS SERVICE TO THE CITY OF PALM DESERT AND ITS HOUSING COMMISSION, 2014 - 2018. On behalf of the City Council, Mayor Jonathan presented an engraved crystal clock to Mr. Lewis, honoring his years of service to the Housing Commission. He added that he knew Mr. Lewis has contributed in many other ways as well. Mr. Lewis stated that serving on the City's committee/commissions is something that every citizen should do, and it doesn't take a lot of people's time. He said Palm Desert was an awesome City because of all the people that served before him, and he hoped the people that serve next will maintain the excellent standard. He thanked staff and City Council for the recognition. Mayor Jonathan commented the City was so grateful for the residents that serve on its committees and commission, adding that the City Clerk's Office accepts applications year-round. IX. ORAL COMMUNICATIONS - B Responding to question, Ms. Klassen said speakers have the option of providing their address, and if they decline, it was perfectly acceptable. Providing their address was just a matter of information in case City staff had to follow-up with them if necessary. 3 R F PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING FEBRUARY 22, 2018 MR. CHARLIE ARA, Palm Green Parkway, Palm Desert, stated he had been coming to the Desert for many years and finally decided last year to settle in Palm Desert. He shared that because of his background and faith traditions, he really related to the comments made under the invocation, in that anything that can be done to reduce violence in schools and in communities while still having a rational debate when looking for solutions was inspiring. Today he came to ask the City Council to consider changing how the City of Palm Desert votes for its elected officials; it currently uses the At -large System. He said many jurisdictions in the State of California: municipalities, water boards, school boards, and city councils have recently adopted a system of electing officials by area and replacing the more traditional At -large System. Because a candidate would only have to campaign in 1/5 of the city, it becomes more affordable for qualified candidates to run for public office. He said he's been in cities where it costs a lot of money to run for city council when you have to campaign in the entire city. Additionally, the Area System can bring government closer to the people, because when you know people in your own community, one is more likely to approach a candidate and bring local issues to their attention. Also, the Area System brings about a better diversity representation on the City Council. However, he recognized that Palm Desert has four women and . one man currently on the City Council. He believed the time had come for the City of Palm Desert to consider this change and/or study the issue. MR. DOUG GALLOWAY, Broken Arrow Trail, Palm Desert, stated he was with the Palm Desert Youth Sports Association (PDYSA), which is the boy's baseball league and girl's softball league. They are ready to kick off the season, and typically for the past ten years they had an event called "Opening Day." At some Councilmembers' request, they are changing it by combining opening day with a Safety Expo that has been put on for a number of years. Therefore, their new brand and new event is going to be called "Field Day," which is coming up on March 10. The best part is that he will be working with Deputy Austin of the Riverside County Sheriff's Department, who will be running the Safety Expo portion of the event, adding that the collaboration has been great. Additionally, City staff, Tourism and Marketing Manager Thomas Soule and Management Analyst Amy Lawrence have been outstanding. Finally, he invited the City Council to the event, specifically Mayor Jonathan to give a brief address of welcome during the ceremony to all the participants. Deputy Austin stated they are very excited about this event and looking forward to a successful year. Mayor Jonathan thanked Mr. Galloway for all the blood, sweat, and tears, and years he has devoted to managing the baseball and softball programs, in that hundreds and hundreds of children and their families have benefitted. He said Mr. Galloway's contributions went beyond just opening day, it included weekday practices and weekend games, which is a vital part of what shapes us as a community, and he's been right in the center of it. 4 FT PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING FEBRUARY 22, 2018 X. MAYOR AND COUNCILMEMBER REPORTS & REMARKS TO THE COMMUNITY A. Councilmember Jan C. Harnik Committee Reports and General Comments. 1. Alzheimer's Walk - announced the event will take place on April 7, 2018, at the Palm Desert Civic Center Park. The event raises money to support a lot of local programs, patients, and caregivers. 2. Coachella Valley Economic Partnership (CVEPI - the speaker yesterday was Anker Gopal, CEO of Interapt. Mr. Gopal was the first tech entrepreneur in Evansville, Indiana under Joe Wallace who was the former CEO of CVEP. Mr. Gopal is teaching computer coding in an inclusive fashion by including the youth, high schools, colleges, military, and those trying to re-enter the work force. Mr. Gopal is in Kentucky, so he is working with coal miners and teaching them coding. She noted there are 6.2 million of those types of jobs unfilled, so he is in the Desert looking to be an asset in the community. She said this group of youth, college students, and military, are coding along with Silicone Valley companies, and they are a Google partner, adding it was no small effort. They are also working with GE, Humana, Taco Bell, and ARC. She was excited to hear from him and it's exciting to see what he can bring to our communities. B. Councilmember Kathleen Kelly Committee Reports and General Comments. 1. The Coachella Valley Wildflower Festival - March 3. 2018. - announced this event was always a favorite for families and people of all ages. Parking will be available at St. Margaret's Episcopal Church on Highway 74 to take folks up to the Santa Rosa & San Jacinto Mountains National Monument Visitor Center. There will be a lot of information about how to enjoy the great outdoors here in Palm Desert in connection with the hiking trails and other resources. C. Councilmember Gina Nestande Committee Reports and General Comments. None D. Mayor Pro Tem Susan Marie Weber Meeting Summaries Report for the Period of January 27 - February 11, 2018. With City Council concurrence, the Meeting Summaries Report was received and filed. 5 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING FEBRUARY 22, 2018 1. Lt. Tonv Baur Funeral Services - shared that today many said their final goodbyes to Lt. Baur, and that he will be missed because he was very involved and engaged with the community. Mayor Jonathan added that Lt. Baur served as the City of Palm Desert's Lieutenant for about two years, and you couldn't help but like the guy; he was pure goodness and he will be missed. E. Mayor Sabbv Jonathan Committee Reports and General Comments. 1. Clvmer's The Body Shop Car Give Away Event - reported this event has taken place in Palm Desert for four years now, but they have held this event in other locations throughout Riverside County for 30 years. Every year they select a deserving recipient for a car. The Clymer's usually obtained the car through Enterprise, and it's either damaged or been in an accident, and it's probably a throw away, but instead it's recreated and made to look and function like new. The vehicle is completely revamped by The Body Shop employees. Additionally, AAA Auto Insurance provides insurance for the first year. Typically, the recipient needs transportation, and that's the reason for giving them the car. This year's recipient is particularly touching, she is a single mom who was taking care of a little girl that since the age of three has had cancer. He believed the little girl is in remission now, but it used to require five trips a week to Loma Linda and her vehicle was not reliable. Therefore, not only does this mom now have a car, it's also a hybrid, so her gas expense will be far less. He said there are so many good people and organizations doing these types of generous acts to help others. He sends his thanks to the Clymer family and their employees. 2. State of the City Luncheon - March 1, 2018 - said the luncheon will be held at the J. W. Marriott, and you can purchase tickets through the Palm Desert Chamber of Commerce website. If you want to find out everything that's important about what's going on in Palm Desert, you are encouraged to attend. F. City Council Requests for Action. 1. Desert Healthcare District Matching Funds - Mayor Jonathan stated the City has an opportunity to partner with Desert Healthcare District Matching Funds to obtain two behavioral resource officers. It's something that makes a lot of sense, because of the matching funds that are available now, but also the Police Department indicates that 50% of deputy time is devoted to the homeless and homeless -related 6 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING FEBRUARY 22, 2018 issues. These resource officers will reduce that deputy time, because they will do the engagement, and they will find the appropriate and available resources, including Path of Life that Coachella Valley Association of Governments (CVAG) is contracting with. The request is for staff to see if it is feasible to make funds available now in order to qualify for the matching funds. He added there was a window of opportunity, which is why he was making the request at this time. Councilmember Kelly thanked Mayor Jonathan for raising the issue. 2. Appointment of an Alternate Designee to the Coachella Valley Economic Partnership (CVEP) Board of Directors - Councilmember Harnik stated the City used to have a staff member attend the CVEP Board of Directors meetings, but now that Ruth Ann Moore has retired, the Alternate Designee is vacant. She said it was very important that the vacancy be filled in case she is unable to attend the meetings. Ms. Aylaian agreed it was important to fill the vacancy and she will do so. G. City Council Consideration of Travel Reauests/Reports. None XI. STAFF REPORTS AND REMARKS A. City Manager 1. City Manaa_ er's Meeting Summaries Report for the Period of January 29 - February 9, 2018. With City Council concurrence, the City Manager's Meeting Summaries Report was received and filed. 1.1 Auction of the Miles Bates Home - reported this was the first year Palm Desert was officially participating with Modernism Week, and the City will be auctioning the Miles Bates House that is currently on the list of Historically Significant sites. The auction itself will be held on Saturday, February 24 at 2:00 p.m. at University of California, Riverside (UCR) - Palm Desert Campus. It's drawing all kinds of interest, in that the City has received media inquiries, coverage from across the Country and as far away as England. In particular, she thanked the folks from Modernism Week: Lisa Vossler Smith and Lisa Davis; Kim Housken and Merilee Colton, who have been active in historic preservation issues; and Capital Improvement Project 7 FT PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING FEBRUARY 22, 2018 Technician Cora Gaugush, who has put in a Yeoman's effort on this project. Mayor Jonathan noted he met the daughter of Walter S. White, who was the architect of the Miles Bates home, adding it was fascinating and a great opportunity to see original architectural drawings. 2. Discussion Regarding Formation of an Ad Hoc Economic Development Advisory Committee. Ms. Aylaian stated this item was put on the agenda at the request of the City Council at the last meeting. The concept was discussed at the staff level, and they came up with a number of ideas and suggestions, but ultimately this will be a policy call by the City Council on what it wants to do. However, staff recommends establishing an ad hoc committee. The City has a steadily changing menu of issues relative to economic development on which staff would like policy guidance before approachingthe full City Council. Therefore, staff would appreciate selection/nomination of two individuals to work with staff on an informal basis, as needed, on issues such as proposed incentive programs. Staff has worked on this for a while, but before presenting to the full City Council, it would be helpful to have a couple of Councilmembers involved. They are still in the early formation, but a concept idea would be useful. It will also help on issues such as the initiative to try to get broadband to Palm Desert and how it can set up an iHub campus. Staff otherwise has the need for input on specific projects brought forward. The City had a Retail/Sales Committee in the past that looked at proposed Facade Enhancement Programs. There is still money available for economic development programs, and it does help to have two Councilmembers to provide guidance to staff on that issue as well. She said it was up to the City Council to create a standing or ad hoc committee, but staff recommends that it be an ad hoc committee on an as -needed basis relative to economic development. Mayor Jonathan said he would love to be part of the committee. Councilmember Kelly expressed her interest in the ad hoc committee, especially on the topics that appear to be on the top burner, in terms of broadband development and iHub development, which are strong interests to her. Councilmember Nestande offered that she would like to serve as an alternate when another Councilmember is unable to attend a meeting. 8 RAF PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING FEBRUARY 22, 2018 Mayor Jonathan said there appeared to be a consensus on the City Council to allow staff to move forward with the development of an ad hoc committee with details to be forthcoming, and the representatives from Council would be himself, Councilmember Kelly, and Councilmember Nestande serving as the Alternate. Councilmember Harnik moved to, by Minute Motion, appoint Mayor Sabby Jonathan and Councilmember Kathleen Kelly to the Economic Development Advisory Ad Hoc Committee, with Councilmember Gina Nestande as the Alternate. Motion was seconded by Weber and carried by a 5-0 vote (AYES: Harnik, Kelly, Nestande, Weber, and Jonathan; NOES: None). B. City Attorney None C. City Clerk None D. Public Safety 1. Fire Department None 2. Police Department None XII. CONSENT CALENDAR A. MINUTES of the Regular City Council Meeting of February 8, 2018. Rec: Approve as presented. B. CLAIMS AND DEMANDS AGAINST THE CITY TREASURY, - Warrants Dated 1/26/2018, 1 /31 /2018, and 2/7/2018. Rec: Approve as presented. C. APPLICATION FOR ALCOHOLIC BEVERAGE LICENSE, by Cocina De Mama Margarita, 74991 Velie Way, Suite 4, Palm Desert. Rec: Receive and file. 9 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING FEBRUARY 22, 2018 D. APPLICATION FOR ALCOHOLIC BEVERAGE LICENSE, by Domo Sushi, 73655 El Paseo, Suites L & M, Palm Desert. Rec: Receive and file. E. APPLICATION FOR ALCOHOLIC BEVERAGE LICENSE, by The Food Court at Cook, LLC, 75046 Gerald Ford Drive, Suite B101, Palm Desert. Rec: Receive and file. F. PARKS & RECREATION COMMISSION MINUTES, for the Meeting of December 5, 2017. Rec: Receive and file. G. RESOLUTION NO. 2018 - 11 - A Resolution of the City Council of the City of Palm Desert, California, Setting Forth Its Findings and Authorizing the Destruction of Paper Records that Have Been Digitally Imaged from the Department of Community Development/Planning, to Rely on the Electronic Record as the Official Record - Records from 1980 through 1994 - Sign Permits (Exhibit "A"). Rec: Waive further reading and adopt. H. RESOLUTION NO. 2018 - 12 - A Resolution of the City Council of the City of Palm Desert, California, Setting Forth Its Findings and Authorizing the Destruction of Paper Records that Have Been Digitally Imaged from the Department of Community Development/Planning, to Rely on the Electronic Record as the Official Record - Records from 1980 through 2009 - Sign Permits (Exhibit "A"). Rec: Waive further reading and adopt. I. RESOLUTION NO. 2018 - 13 - A Resolution of the City Council of the City of Palm Desert, California, Setting Forth Its Findings and Authorizing the Destruction of Paper Records that Have Been Digitally Imaged from the Department of Community Development/Planning, to Rely on the Electronic Record as the Official Record - Records from 2008 - 2013 - Miscellaneous Permits (Exhibit "A"). Rec: Waive further reading and adopt. 10 RAFT PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING FEBRUARY 22, 2018 J. REQUEST FOR APPROVAL of Amendment No. 1 to Contract with Desert Recreation District for Annual Park Services (Contract No. C32410). Removed for separate consideration under Section XIII, Consent Items Held Over. Please see that portion of the Minutes for Council discussion and action. K. REQUEST FOR AUTHORIZATION to Return Art In Public Places Fee for Afghan by Karen and Tony Barone, the Public Art Component for Barkingham Pet Hotel California, in the Amount of $10,000 (Barkingham Pet Hotel California, Applicant). Rec: By Minute Motion, approve reimbursement to Barkingham Pet Hotel California of its Art In Public Places Fee in the amount of $10,000 - monies are available in the Public Art Fund 436. APPROVED 4-0-1. (AYES: Kelly, Nestande, Weber, and Jonathan; NOES: None; ABSTAIN: Harnik) L. REQUEST FOR AUTHORIZATION to Release Cash Deposits in the Amount of $75,467.25 for the Palm Desert Greens Maintenance Facility Grading (Palm Desert Greens Association, Applicant). Rec: By Minute Motion, authorize release of cash deposits in the amount of $75,467.25 for the Palm Desert Greens Maintenance Facility grading. Mayor Jonathan requested item J be removed for separate consideration under Section XIII, Consent Items Held Over, and Councilmember Harnik noted she would be abstaining on Item K. Upon motion by Harnik, second by Kelly, and 5-0 vote of the City Council (AYES: Harnik, Kelly, Nestande, Weber, and Jonathan; NOES: None), the remainder of Consent Calendar approved as presented. XIII. CONSENT ITEMS HELD OVER J. REQUEST FOR APPROVAL of Amendment No. 1 to Contract with Desert Recreation District for Annual Park Services (Contract No. C32410). Mayor Jonathan stated this item was a proposal to revise the City's contract with Desert Recreation District (DRD). However, with regard to the Portola Community Center(PCC), he wasn't aware the DRD managed that facility and questioned why they did. 11 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING FEBRUARY 22, 2018 Management Analyst Johnny Terfehr explained that the administrative support provided by the DRD has a twofold purpose. One of them is to handle all the reservations for the various parks of the City, answer the phones, coordinate with the Citizens on Patrol Program, and assist with scheduling events at that facility. He said one administrative person does all those jobs for the City. Mayor Jonathan pointed out that the increase over a five-year period is about $200,000, which is a lot of money. It seemed to him there might be other alternatives that may or may not involve the DRD to manage that facility and provide the same services, but for a lesser cost. Mr. Terfehr noted that a large portion of that increase was due to the minimum wage increases that will unfold in the next few years. Mayor Pro Tem Weber added that it wasn't just about answering the phones, because there is staff driving around and helping people at the park and assisting with set up of events. . Mr. Terfehr agreed, stating the agreement included park ambassadors and skate park attendants, with respect to the minimum wage increase. Mayor Jonathan asked how much did the City pay the DRD to maintain the Portola Community Center, because he didn't want to be stuck for five years if there is a more cost-effective option. He asked if this item needed to be postponed for staff to address the issue or did the City have the ability to get out of the contract if it found another option. Additionally, what was the best way to move forward if the City had concerns about the management of the PCC facility. Mr. Hargreaves stated that typically City's contracts have a short exit provision. Mr. Stendell interjected, stating the DRD has been working at the PCC for a long time, so it may be a good time to visit that arrangement, but to answer the question about how much the City pays them, roughly for one administrative person the cost is about $100,000. Half of the $100,000 is borne by the account from the City that pays for the PCC, and the other half is paid from field reservations, which is the service that Sofia provides on behalf of the City. City staff found it was a good use of time, because the facility doesn't need 2,080 hours of services, so the duties were split. Therefore, with the increases, it would cost the City about $100,000, and there are really two major functions going on. The DRD is also seeking revenue enhancements for the Portola Community Center. What Council is not seeing in this report is the revenue generated from the DRD, which is roughly between $60,000 and $80,000 a year that is being taken in for use 12 R T PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING FEBRUARY 22, 2018 of the City's facilities, amphitheater, and pavilions. If the DRD can find ways to program the PCC, there may be revenues coming in to offset that cost as well. He liked the thought of taking a look at PCC operations, and the DRD has been a great partner, but if the City wanted to modify or augment the agreement in any way, he had no doubt they would be willing to do it. Mayor Jonathan reiterated the City was paying $100,000 to manage that facility and wondered what the City was gaining and/or should it continue to own the facility. He questioned the purpose for having that facility, what was the cost, and is there a way to accomplish the goal in a more cost-effective manner. He didn't want to necessarily hold up moving forward if staff was recommending approval. However, he wanted to know if the City had an exit ability if staff found a better alternative. Mr. Hargreaves stated the contract has a one-year exit provision. Mayor Jonathan remarked that was 11 more months than he would have liked, but he will live with it. Councilmember Kelly said she understood $100,000 was not being spent on management of the Portola Community Center, and the person whose position bears that cost, their time is split 50/50. Therefore, roughly half of that is spent on management of the facility. Mayor Jonathan said he understood, but it was his lack of understanding, because the City was already paying DRD to schedule the parks, space, and field times, etc. Again, it could be just his lack of understanding of all the moving pieces, and it could be that everything is okay, but he had questions. Therefore, along with approving this, Council can ask staff to look at these questions and get back to the City Council with a report on why staff believes it's best to leave as is and/or provide options for Council to consider. Councilmember Kelly moved to, by Minute Motion: 1) Approve Amendment No. 1 to subject contract with Desert Recreation District, incorporating the following revisions: a) Remove Section 5.2.2 - Field Reservation Management Fee; b) replace Exhibit B - Contract Labor Pricing Matrix with a revised five-year pricing matrix that incorporates increased labor costs resulting from increases in the California minimum wage; c) revise Exhibit A to include Portola Community Center staffing services; 2) authorize additional costs up to $30,000 for Fiscal Year 2017-2018, due to the adjustment in pricing contemplated herein, and appropriate the amounts necessary up to $30,000 to the Professional Services Accounts for Civic Center Park and Portola Community Center. Motion was seconded by Nestande and carried by a 5-0 vote (AYES: Harnik, Kelly, Nestande, Weber, and Jonathan; NOES: None). 13 R T PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING FEBRUARY 22, 2018 XIV. RESOLUTIONS None XV. ORDINANCES A. For Introduction: None B. For Adoption: 1. ORDINANCE NO. 1334 - AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, AMENDING AND UPDATING VARIOUS CHAPTERS AND SECTIONS OF THE PALM DESERT MUNICIPAL CODE (Annual "Housekeeping" Review and Update). Mr. Hargreaves noted this Ordinance has been before the City Council several times, and there wasn't anything new to add. Councilmember Harnik moved to waive further reading and adopt Ordinance No. 1334. Motion was seconded by Kelly and carried by a 5-0 vote (AYES: Harnik, Kelly, Nestande, Weber, and Jonathan; NOES: None). XVI. NEW BUSINESS A. REQUEST FOR APPROVAL OF THE 2018 GOALS FOR THE CITY OF PALM DESERT. Ms. Aylaian stated that in January of 2017, the City Council had a study session and participated with staff in establishing goals for that year. As part of this staff report, staff included notes regarding what those goals and indicating what was accomplished. Proceeding from that, staff wanted to go through the same process for 2018, but it realized that establishing 57 goals was too much for one year and instead it needed to focus. Therefore, a different approach is being presented today by identifying the top 14 goals where it needs policy, guidance, and direction. Each goal ties into one or more of the goals established in the Envision Palm Desert Strategic Plan, and they involve multiple parties, multiple departments, and some of the more complex and layered projects that staff will be putting together. Additionally, staff broke out a separate set of goals, which she will feature at this time. As part of the goals for last year, the City established the goal of developing and adopting a new IT Master Plan, which was done and accomplished. However, what has resulted is a whole new set of goals for the next five years that staff wants to accomplish to bring the City's 14 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING FEBRUARY 22, 2018 technology systems up to where they should be for doing business in the current environment. Many of these goals are labor intensive, some include getting the City's plan check and permitting process online so that people can apply and obtain their business license remotely. It's a big deal and it takes a concerted effort by many departments and members in each of those departments to put this together. Therefore, staff included in this document the list of IT Master Plan goals that are particular for this year. It's followed - up with Departmental Level Goals that each department believes they need to do to improve the services they provide to the level of expectation that residents, businesses, and Councilmembers have come to expect. Staff has learned that the City has maintained the level of service and actual services it provided to the community, at the same level they were at when the economy dropped in 2008-2009. Since that time, the City shed a number of positions and reduced staffing by about 30%, and it has been threading water providing the same services it provided previously. The City is now at a point where the economic downturn is over and staff is trying to catch up on all the backlogs of work, and initiating new initiatives. What has also happened, is the world around us has changed, in that there is a need for technology to facilitate communication with the general public, but will increase staff workloads. As an example, the City now has apps for anyone visiting or is out in the public or business that can snap a photo of a pothole or a code violation and sends it to City Hall for correction, and its happening regularly. So there are now 50,000 sets of eyes out there helping the City identify what needs to be addressed. Staff is also dealing with social media, in that it communicates with many people in the City via different applications, such as "Next Door." So when the City announced it has a new hotline for Short-term Rental violations or Next Door, suddenly, there are 20 or 30 comments/requests, all of which the City needs to respond to. Staff is also receiving Public Records Act Requests, unlike others in the past, which are very voluminous, keeping many staff members busy for a lot of the time. Therefore, there is this backlog of work that staff is embarking upon, and although it may look like it's a single piece of paper on both sides, she would like the City Council to appreciate what staff is doing. In part, she is buttering the City Council, because it should anticipate that when going through the budget cycle for this year, staff will be looking for additional staff members to help address these issues and be able to maintain services at a level that is appropriate for today. It's not appropriate to conduct business the way it did years ago, yet residents, business owners, and City Council have expectations of staff today that are greater than they were before. When reviewing this entire document, keep in mind that the 14 goals that were established with the City Council, are just part of the bigger picture, because there is a lot more going on. The items listed on the Strategic Plan Related Goals, which are on the orange pages, also identifies the resource impact they may have. In other words, it will indicate if that goal will require more money and/or more staff. It will be listed symbolically, because at this time it didn't have the hard numbers. However, those numbers will be presented 15 D PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING FEBRUARY 22, 2018 when staff goes before the City Council in two months to discuss the budget. At this time, she would like Council to make sure that what is in the Strategic Planned Goals document is consistent with the City Council's understanding of what it developed as goals at the study session. There were changes and suggestions made by Council that were incorporated in the proposed 2018 Goals, but she may not have captured it correctly on all issues. In particular, she called attention to Goals 4A, 4B, 2B, 3C, and 5A, where she felt she needed to massage, add, or completely rework them to meet the expectations of the City Council. Councilmember Harnik commented that as she went through the Summary of Accomplishments for 2017, which was an extensive and comprehensive list of things it wanted to achieve, it was absolutely amazing to see all the things that have been accomplished in one year. She commended everybody for all their efforts, stating the City has a strong foundation to build on for 2018. Councilmember Kelly concurred, encouraging folks that didn't have the document to seek a copy, because they will be impressed with the number of goals upon which progress is being made. However, there is one goal that was not captured in the discussion Council had at the study session, which she believes needs to be added as follows: Explore a program to offer incentives to net zero or highly water energy efficient development and retrofits. That language was up on the board and there was a robust discussion about the ways in which the City might create incentives toward net zero construction or retrofits, and the discussion was not about mandates or onerous requirements, it was about encouragement. Further, two of the four goals in the Strategic Plan was sustainability, which explicitly called for this promotion and encouragement. Therefore, she believed the City needed to bring forward that part of the Strategic Plan in an explicit way. Councilmember Harnik agreed, stating one of the specific issues was the permitting fee that was being asked for retrofitting windows, which will help the community stay more sustainable and more green. Again, this was about encouragement and education, not a mandatory requirement. Ms. Aylaian pointed out that sustainability is one area where the City has very few resources, and it is an area where a couple of goals were added at the study session, and staff indicated two dollar signs next to the goal, which meant there are no funds for it. She said the City was now at the point where it needed to start looking at staffing. Mr. Stendell concurred with Ms. Aylaian's assessment. Councilmember Kelly recognized that staff added 4C as a goal, but it's essentially a project that's being taken on by the Youth Committee in 16 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING FEBRUARY 22, 2018 commendable fashion. What she was encouraging here, is that in the day- to-day work, the City looks for opportunities to do this. She felt that if Council doesn't give direction and encouragement, the goal falls by the way, so she was striving to feature it so that on a day to day basis, staff looks for opportunities to accomplish it. Mayor Jonathan reminded Council that last year's goals under infrastructure, the City was to select and retain a consultant to prepare a master plan for undergrounding and distribution of utility lines in the City of Palm Desert, which is marked as complete, and it's accurate. However, at today's study session, Council heard from the consultant, but he was remised during the Goal Setting Study Session in not bringing this issue up, because he thought it would be an on -going project. Certainly, after what he heard at today's study session, there are possibilities. Therefore, after having invested so much time, effort, and money in seeking a solution for undergrounding all utility lines, he wondered if there was a feasible way of incorporating the ongoing effort into the goals for this coming year, in order to keep the ball moving forward. Ms. Aylaian replied that the short answer is yes, because with staff and money it can do anything, but she would like to know what specific goal was Council wanting to address. Mayor Jonathan explained that for the next 12 months he envisioned the City developing an implementation plan, not necessarily implementing the plan, but developing it. Much like at today's study session where the consultant said here's what you can do with 28 projects, so Council should allow staff to work with the consultant and come up with a recommendation that states that part of the implementation plan is to gradually over time utilize the $800,000 credits, develop the budget for purchasing credits, and then use the credits for the large transmission lines (referring to the Study Session on Utility Undergrounding Master Plan in conjunction with Penco Engineering). There was discussion about Rule 20A, and there were recommendations about how the City could be proactive moving forward. He suggested incorporating that into an implementation plan where it lists the things the City can do if the Council so chooses. Additionally, it can devote a staff member who can go neighborhood to neighborhood with a pamphlet offering an opportunity and educating those interested on how to go about it. He was not looking to actually start undergrounding, but in the next 12 months the City can and should develop an implementation plan. Councilmember Nestande added that's where the City might need to hire additional staff, because this could require a full-time position. Mayor Jonathan said it could be Mr. Gayler could further interact with the consultant, although, he didn't know how much was still left in the contract. 17 R PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING FEBRUARY 22, 2018 He would leave it to the City Manager to figure out the how, but part of the goal for the next 12 months is to keep that ball moving forward toward the undergrounding. Councilmember Nestande agreed. Mayor Jonathan added he was not opposed to continuing with the same consultant if it was cost effective. Councilemember Kelly said she was also in agreement. Ms. Aylaian said that if the City Council would like to add as a goal to develop an implementation plan for undergrounding, it can be added and she will try to figure out what kinds of resources, whether its money or staff, will be associated with it. Councilmember Kelly moved to, by Minute Motion, approve the 2018 Goals for the City of Palm Desert, establishing goals.for work to be accomplished by City staff during the . calendar year 2018 and allocating staff and financial resources during that period, with the addition of the two following goals: 1)_Explore a program to offer incentives to Net Zero or Highly Water Efficient Development and Retrofits; 2) Develop an Implementation Plan for Utility Undergrounding. Motion was seconded by Harnik and carried by a 5-0 vote (AYES: Harnik, Kelly, Nestande, Weber, and Jonathan; NOES: None). Mayor Jonathan stated accolades to the City and staff, because he wasn't sure that all cities actually have a vision that was developed through the process that Palm Desert went through with more than 100 residents, and eventually implementing that vision, and following up every year to ensure it stays on course. It's so refreshing and wonderful to see government operate effectively and efficiently. He thanked the City Manager and City staff for making that a reality in Palm Desert. B. REQUEST FOR APPROVAL OF UPDATED PURCHASING SYSTEM AND PUBLIC WORKS CONTRACTING REGULATIONS IN THE PALM DESERT MUNICIPAL CODE. Ms. Moore stated this item was a comprehensive update to the City's purchasing Ordinance. The Ordinance was last updated in the year 2000, and it needs to be amended. The proposed Ordinance takes two chapters in the current Municipal Code and puts it into one chapter for ease of use and application. It has been difficult in the past having two different sections to follow and know which one applies to which purchase. The proposed Ordinance clarifies and confirms current practices and procurement methods, so that staff can be consistent among departments. It also better defines exceptions, in that the City had a very board perception of what an exception was, and the update narrows it down while still giving flexibility to 18 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING FEBRUARY 22, 2018 the City Manager if needed. For comparison purposes, the staff report included a generic current and proposed of the two systems. There are a couple of caveats between the two, and due to the complexity of public bidding, staff worked closely with the City Attorney's office Greg Hayes to ensure compliance, because public bidding is very different from routine purchases. Additionally, staff is requesting to raise City Manager's level of authority, and included with the staff report, was a quick summary of other cities in the Valley to see how Palm Desert compared. She noted the Authority limit has not been changed since 2003, and it is outdated. She offered to answer questions. Mayor Jonathan noted that the $50,000 threshold would be doubling the amount and questioned for what purpose. Ms. Moore replied it would be for awards of contracts where staff would have gone through the bidding process as prescribed in the Ordinance, and the City Manager would then have the authority to award the contract. Councilmember Nestande asked if that amount was in line with other cities. Ms. Moore explained that other cities ranged from $25,000 to $100,000, and it depended upon the level of the award. She added that she and the City Manager discussed this issue and determined where the level of comfort was with this item. Additionally, it provides a level of efficiency, because there are times when a City Council meeting is several weeks later, where the City Manager can approve if needed, and it may be on the agenda as a ratified item at a later date. Mayor Jonathan said the other impact is those contracts less than $50,000 do not go through the bidding process. Ms. Moore said that wasn't true, in that those contracts will still go through the bidding processes as prescribed in the proposed Ordinance, but there are some exceptions and those have been clarified. MayorJonathan said he's reading where it states, "Public projects of$50,000 or less may be awarded by the City Manager pursuant to the Vendor Price Quotes procedure. Projects of more than $50, 000 may be awarded pursuant to formal bidding procedures." Ms. Moore explained that Vendor Price Quote means staff still goes out to bid, it just doesn't have to do a formal bidding process. It's a different process that doesn't require all the components of a formal bid, which is a lengthy process and a bigger set of requirements. 19 R PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING FEBRUARY 22, 2018 Mayor Jonathan asked if the Vendor Price Quote process provided transparency, questioning if the public will understand that an action has been undertaken and there is a contract being awarded for $45,000, etc., because the complete bid process provides complete transparency. He asked if the City would lose some of that transparency if it goes to the higher threshold. Ms. Moore responded that the City Council would not be acting on that contract, which is where the ultimate transparency is. If someone were to inquire or ask the question, all those records are public, but it does not go before the City Council on an agenda for consideration. Ms. Aylaian pointed out that the Vendor Price Quote process is under Section 3.30.120, where the process is described. The process does require that the notice be posted for at least seven business days, and staff has to come up with at least three bids for it, unless there are extenuating circumstances, and it talks about the methods by which the City acquires competitive bids. The idea behind some of these modifications in the Ordinance was twofold. One was to ensure the City was getting competitive bids and that the public is safeguarded by being able to access that information. Secondly, it eliminates having to come before the City Council and having it spend a lot of time on what she considers minor issues, adding that staff would rather have Council focus on bigger policy decisions. Mayor Jonathan said he embraces that goal, but if the City doesn't have transparency, it may create a situation that could lead to financial issues, then it suddenly becomes a bigger issue for Council to deal with. However, with staff's assurances, he is satisfied that staff felt it had adequate transparency with this change and there is no opportunity for a bad financial situation. Councilmember Kelly moved to: 1) Waive further reading and pass Ordinance No. 1335 to second reading, replacing Chapter 3.30 in its entirety and repealing Chapter 3.32 (rescinding Ordinance Nos. 224, 423, 586, 927, 928, 986, 1162, 1166, 1204, 1229, 1276, and 1317) relative to the Purchasing System and Public Works Contracts; 2) By Minute Motion, pursuant to Section 3.30.160(A) of said Ordinance, direct the City Manager to establish the minimum dollar thresholds for the procurement of public projects, contractual services, and materials, supplies and equipment at $2,000; and for professional services at $10,000. Motion was seconded by Harnik and carried by a 5-0 vote (AYES: Harnik, Kelly, Nestande, Weber, and Jonathan; NOES: None). Ms. Moore noted this item was on the City Manager's 2017 and 2018 goals, so it's a big check mark off that list. 20 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING FEBRUARY 22, 2018 C. REQUEST FOR ACCEPTANCE OF OFFER FOR PURCHASE OF REAL PROPERTY LOCATED AT 74016 SAN MARINO CIRCLE (APN 625-024-007), PALM DESERT, SUBMITTED BY KENNETH E. STEMMER IN THE AMOUNT OF $75,000. Capital Improvement Projects Technician Cora Gaugush noted the staff report that outlined the procedure used to sale a vacant piece of property at the north east corner of San Marino Circle and Portola Avenue. Councilmember Kelly moved to, by Minute Motion, authorize: 1) Acceptance of offer for purchase of real property located at 74016 San Marino Circle, Palm Desert (APN 625-064-007), submitted by Kenneth E. Stemmer in the amount of $75,000; 2) staff to open escrow on said property; 3) City Manager to execute all documents in conjunction with said escrow; 4) Mayor to execute the Grant Deed for same — property was purchased with money from Fund 213 - Measure "A" and any monies recouped from this sale should be returned to that fund for reprogramming.. Motion was seconded by Harnik and carried by a 5-0 vote (AYES: Harnik, Kelly, Nestande, Weber, and Jonathan; NOES: None). D. REQUEST FOR APPROVAL OF THE 2018 ECONOMIC DEVELOPMENT STRATEGIC PLAN. Mr. Alvarez stated the City was at the end of a journey that started last summer when it embarked on updating the Economic Development Strategic Plan. Last summer the City went through a competitive selection for a consultant to assist, and The Natelson Dale Group, Inc., was selected for this project. When staff started this project, it tasked the consultant to study the local economy condition, develop a strategic plan based on technical studies and research of the market. Along with meeting stakeholders in the community, City Council, City Staff, it enabled the consultant to have a complete picture of where the City was and where it wanted to go in terms of economic development. A goal was to identify highest priority actions for local economic development, and they needed to provide opportunities for quality economic growth. They focused on measurable and specific issues and established priorities for staff to move forward within the next five to ten years with a solid blue print for economic development. During this process, the City had three Economic Development Summits held at Desert Willow where there was participation from key leaders in business, civic, and education. The goals of the summits were to reach a consensus on the vision and implementation of the goals moving forward by identifying a strategy to implement the goals, and identifying existing partnerships that can be augmented in the process. The overall arching goal of the Economic Development Strategic Plan is to foster quality growth in Palm Desert's economy. The objectives were to maintain the City's fiscal strength, encourage optimal land use, ensure viability of the commercial centers, and 21 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING FEBRUARY 22, 2018 create and diversify a local economy to create higher wage jobs that would support a full-time economy year round. Additionally, leverage the status of Palm Desert as a center for jobs, retail, culture, entertainment, higher education, and promote the City as a full-time, full -service community. In the staff report, on page 5, the following nine industry clusters were identified as follows: Information Technology; Health Services; Education and Knowledge Creation; Financial Services; Marketing, Design and Publishing; Real Estate, Construction, and Development; Entertainment; Retail/Restaurant; Hospitality and Tourism. In the same page, it also lists the number of existing jobs under each category in Palm Desert, including the average annual wage. In particular, Information Technology is listed as a high priority, because it's very low in the number of jobs, which is the main focus of where the City is headed with the Economic Development Strategic Plan in trying to create new technology jobs and higher earning wages. The EDSP also provides tactical priorities and initiatives through the Economic Development Marketing and Business Retention/Expansion Program. Attracting new business with the use of marketing and outreach, and also creating a sense of place to attract new industries to ensure Palm Desert is on the map. The last two are Entrepreneurial Development and Business Incubation Program, stating staff is hoping to create a new technology based for starting up jobs in Palm Desert. The EDSP, in terms of organization, is broken up into five major strategic categories and 21 specific action items, which are in the plan. Many of the actions are continuations of existing programs, initiatives, and partnerships in place. The implementation will be lead by City Staff, Economic Development Department, and partners in the community. The top five categories addressed in the Economic Study with initiative items are: 1) Marketing & Business Outreach; 2) Land Use/ Development/Revitalization of the Community; 3) Infrastructure; 4) Workforce Development; and 5) Quality of Life. The focal points for the study under Economic Development Marketing is that it wants to promote Palm Desert as a brand that creates an area where you can live, work, play, and be a job center, particularly in the technology base industry. The second initiative is a new concept called the Business Retention/Expansion Program. Although staff has done a lot of outreach in talking to the business community and its liaisons in the business district, it plans to have a focal point and roadmap on how to reach out to existing businesses, finding out their needs, finding out their potential growth, and opportunities to keep them here and expand their job creations. During this process, staff plans to conduct business/owner surveys and identify growth opportunities. The third initiative is Revitalization of Key Commercial Districts. Those districts are El Paseo, Highway 111, San Pablo Corridor, and Westfield Shopping Center. The City is underway with the El Paseo Revitalization Study, stating the City had a study session with the Gibbs Planning Group where alternatives were shared in how to improve the street into a more walkable district. Mr. Gibbs will return in April to provide the City with a final recommendation and implementation ideas to move forward with that project. On Highway 111 22 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING FEBRUARY 22, 2018 and San Pablo, the City has a General Plan, which is a solid roadmap with solid Codes. The next initiative is Westfield Shopping Center. Staff is aware that the retail market is soft and flattening, mainly due to online purchasing, which is a major detriment factor. Staff will take a proactive approach to meet with new property owners at Westfield and come up with ideas, solutions, partnerships, to revitalize or re -purpose the site if a major tenant exits. The final initiative is the Entrepreneurial Development/Business Incubation with the potential of creating a Palm Desert iHub. Staff is underway by continuing to work with Coachella Valley Economic Partnership (CVEP) by which the City can tie into the existing broadband that is afforded to Cal State, San Bernardino - Paim Desert Campus and at College of the Desert (COD). This topic will be brought up with the newly established Economic Development Ad Hoc Committee, and staff will work with CVEP to target the nine cluster industries he previously outlined. The bigger initiative is the broadband capacity that would be more of a citywide approach to see how it can bring that technology and infrastructure into the City, which changes the game, in terms of who it can attract to Palm Desert to do business. He recalled for the City Council that staff provided a Study Session on February 8,.and there are no major changes to the Plan from that meeting and recommended approval of the 2018 Economic Development Strategic Plan. He offered to answer question and noted that Mr. Roger Dale from The Natelson Dale Group, Inc., was available as well. MR. ROGER DALE, The Natelson Date Group, Inc., thanked the City Council for the opportunity to work on this project, stating it's a wonderful city and community, and it's been a privilege to work with Council and City staff on this process. They are excited, because they see some opportunities for the City to move ahead quickly on key items. One of the challenges they have as a consultant, is that often they come up with a long list of goals and objectives, and it's overwhelming to the city that will be tasked with implementing the plan. However, in this case, the list was narrowed down to a few high -impact priorities, which are the things Mr. Alvarez outlined. It's exciting, especially because of the opportunity before the City Council with the potential iHub, which is something many cities would like and would love to be in the same position. Although there was more that needed to be done, in terms of due diligence and evaluating the potential and the impacts of it, it was an exciting opportunity. It's also great that Paim Desert has some momentum going with the study done for El Paseo that has some specific ideas to move forward. The initiative of the concept for a Business Retention/Expansion Program would be new for Palm Desert, but the community and the economy are at the level that it's ready for it, and it would be an appropriate function. He believed it will create benefits that will justify the resources devoted to it. He again thanked the City Council and offered to answer questions. 23 DRA T PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING FEBRUARY 22, 2018 Councilmember Nestande commented she learned a lot at the Study Session and thanked Mr. Dale for the study, stating she looked forward to implementing the Plan. Councilmember Harnik noted that the nine cluster industries displayed by staff were a clear illustration of what it is the City needed to do going forward, because the matrix shows that the three industries with the lowest paying jobs are also the ones with the most jobs. When you look at what CVEP is trying to do with the iHub and broadband to bring higher paying jobs to the Desert, and with Palm Desert looking to be a year round community, even though it enjoys the tourists, and second and third home market, the City needs to build that one piece to the economy by focusing on the Information Technology and Education Creation industries, which brings those higher paying jobs. Councilmember Kelly expressed her appreciation for the process, stating there was ample opportunity for questions and input, specifically, the extent to which there was consultation with stakeholders. She particularly appreciated the practical recommendations and how well rounded they are in the City's existing strengths and opportunities. Mayor Jonathan thanked Mr. Alvarez for shepherding the process, and Mr. Dale who did an outstanding job and really fulfilled his hopes and expectations. He also expressed gratitude to the 30 individuals from the City that participated in the study sessions. He commented that the Natelson Dale Group had quite a brain trust to draw from and was a very impressive group. Councilmember Harnik moved to, by Minute Motion, approve the 2018 Economic Development Strategic Plan. Motion was seconded by Weber and carried by a 5-0 vote (AYES: Harnik, Kelly, Nestande, Weber, and Jonathan; NOES: None). '24 RAF PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING FEBRUARY 22, 2018 E. REQUEST FOR AUTHORIZATION OF THE IMPLEMENTATION OF A PROPERTY DISPOSITION STRATEGY FOR THE DESERT WILLOW LOT PADS OWNED BY THE SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY (SARDA) (JOINT CONSIDERATION WITH THE SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY). Mr. Alvarez displayed a map of the Desert Willow lot pads owned by the Successor Agency to the Redevelopment Agency, and the lot pads are identified as A, B, C, and D. He said staff is tasked with the disposition of these parcels by getting them out to market and maximize the returns for the taxing entities. The City of Palm Desert is a taxing entity, so the City will retain about 3% of the proceeds. In conjunction with moving forward with the sale of these properties, staff is providing the City and Successor Agency a recommendation on a disposition strategy. The strategy outlined in the staff report identifies each parcel and its strengths and opportunities to attract specific targeted markets. He will provide a brief overview of the targeted uses and strategy for disposition. of each parcel as follows: Parcel A: This parcel is outlined in red on the map. It's 16.86 acres and designated as resort/entertainment in the General Plan; the zoning is Planned Residential. This is a premier resort residential parcel and is located in close proximity to the clubhouse and has access to the circle on Desert Willow Drive. This is good opportunity to seek a developer that will provide additional resort residential use, which includes timeshares, fractional ownership, and vacation ownership that could be managed through a property manager. Staff is recommending going out for Request for Proposal (RFP) to seek the targeted land use he just described. Parcel B: This parcel is located south of the clubhouse and south of the overflow parking lot, and it's 13.72 acres. In his opinion, this is a premier lot that affords an opportunity to attract a boutique hotel with some branded villas. This lot is the highest elevated pad, which has 360 degree views around the entire lot. He noted Lot B and C are currently in an Exclusive Negotiating Agreement (ENA) with a developer that is seeking to establish a wave pool and hospitality project. Within the next two months, the developer will choose one of the two lots. If Lot B is not chosen, staff will strongly recommend looking for a developer for a boutique hotel and branded villas through a RFP process. Parcels C and D: These lots are unique, in that the two lots split at the Mountain View Golf Course Hole No. 5. Again, Lot C is currently in an ENA, and if the developer does not choose this lot, staff's recommendation is to look at keeping Lots C and D together. Staff will seek to bring a resort/residential component to these Tots. The benefit of C and D, in terms of opportunities, is to tie Lots C/D to E, in that if you have a residential 25 A T PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING FEBRUARY 22, 2018 component there, it will certainly serve commercial uses that are potentially on Lot E, and you have proximity to other shopping amenities that currently exists. Parcel E: Lot E is the key focal point of the staff report, because it's commercially zoned. It is 11.5 acres and the property has a driveway that bisects at the northern end of the lot that leads into the Ralph's Shopping Center. Staff recommends that the City Council invest in the purchase of this property to retain control and then seek a developer that is geared toward an entertainment/restaurant anchored facility. Retail is currently a soft market, so staff recommends the City seek a developer that will be focused on entertainment or music oriented uses, a small high -end theater, a branded brew house, unique experiential restaurants, cafes, dessert shops, or a unique experiential retail. The other component of this parcel is that the City has the opportunity of bond funds that are currently in place from the former Redevelopment Agency that can be used for infrastructure and parking, which would benefit the entire region. In combination of having control of the parcel, the City can secure a RFP and put it out to market and attempt to attract some of the uses mentioned. One possibility for utilizing existing former RDA bond funds is to facilitate a parking structure that would be underground. It could be designed to structurally hold a platform that would support commercial use on top, which would be a benefit to the region and a potential developer. In conclusion, he recommended approval of the proposed property disposition strategy and the City purchasing Lot E from the Successor Agency, and look for opportunities to develop that site through a RFP process. He offered to answer questions. Councilmember/Director Nestande commented that Lot B would be a better choice for the wave pool, so that Lots C and D can be kept together to be tied in with Lot E. She also wondered if there was anything that could be done at this point, since it was currently in an ENA. Mr. Alvarez replied he was reluctant to share his opinion, because he was waiting for all the information to come back from the developer, stating they are the ones doing the due diligence and analyzing their best options for that use. He added that he wasn't an expert on wave pools, but certainly both lots have their positives and challenges. As mentioned previously, Lot B is a premier lot for a hospitality project, but there will be challenges on both lots, because of the access and proximity to the other uses. Councilmember/Director Nestande inquired if there was a time expiration for the use of the Redevelopment funds for the purchase of a property. 26 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING FEBRUARY 22, 2018 Mr. Alvarez explained that funds for the purchase of the property would have to come from General Fund Reserves. With respect to the bond funds, he deferred to Ms. Moore to answer the question. Ms. Moore noted that bond funds could be used if the City decided to do any improvements with respect to public parking, but as far as acquiring the property, the funds would have to come from the General Fund. Mayor/Chair Jonathan asked for the definition of Resort Residential Project as it relates to pads C and D. Mr. Alvarez said Resort Residential Project could be a combination of timeshares or villas, and fractional ownership is similar or the same thing, it's just the way they are managed. However, you could have a combination of the three, including a community where you have vacation homes that are privately owned but managed through a property manager, similar to a homeowners association. Further responding, he said it would not exclude hotels. Mayor/Chair Jonathan inquired about what will happen to SA -RDA and these properties after June 30, 2018. Mr. Alvarez stated the local Oversight Board goes away and the City will then report to the Riverside County Oversight Board (RCOB). The City will have representation on that board from the City Council, including one staff member, but items and requests will have to be taken to the RCOB. Responding to question, he said the Successor Agency will still own and manage the properties, but it will lose some control, in terms of knowing some of the Oversight Board members here locally. Mayor/Chair Jonathan stated these lots mean a great deal to the future of Palm Desert, so to what extent was the City losing control and what can it do about it. Mr. Alvarez replied the City will still have land -use control through the existing General Plan and zoning regulations, and that process will still go through the City. The only control it would be losing is that when it decides to sell, the property value will be established through an appraised value and staff will need to seek approval for it from the County Board that may or may not have knowledge of the local market or the goals the City is trying to achieve. Mayor/Chair Jonathan commented that the mechanism that exists today where Council has a say as to what happens on those pads, he questioned if that ability will continue once the City has to go through RCOB. 27 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING FEBRUARY 22, 2018 D Mr. Alvarez replied that Council will have that ability in context of what is allowed under the current zoning regulations. Mayor/Chair Jonathan said he continues to be concerned about traffic circulation, ingress and egress, and what it would do to the quality of that development. On Desert Willow Drive there are five of these parcels attached to it and that's 75 acres of development, which is too much for that one drive even if it went to two lanes on each side. He said he wasn't including parcel G, because it will have its own direct access. He encouraged staff to address this issue and have options in mind as development starts occurring. For example, there are possibilities for developing additional access off of Cook Street and Portola Avenue, and it may take some creativity. He believed there were possibilities for grading additional traffic circulation, ingress and egress, and he wouldn't want to lose that opportunity by not planning for it ahead of time. Mr. Alvarez agreed, stating staff will definitely keep that in mind. He said the Planning Department will look at it as well, especially the first project. Staff will look at the entire strategic plan and look at potential uses and traffic demands that will be generated. Interim Director of Public Works Tim Jonasson explained he would need to look at the Environment Impact Report (EIR) of the project, which would have included a traffic study, and he would need to be comfortable with whatever is being proposed. He added that he would be looking at the impacts and usuage to avoid problems with circulation, because that would be something that Public Works will be focused on. Councilmember/Director Kelly said she took Mr. Jonasson's comment to be that the City doesn't want to just minimally meet the needs, because of the importance of this destination as a resort. She believed the phrase used at one point when discussing this issue, is that it wants to achieve "Desert Chill" and not "LA Stress." She greatly supports his encouragement to explore solutions that assure the City is doing more than is minimally necessary to foot traffic. Councilmember/Director Nestande moved to, by Minute Motion: 1) Authorize staff to implement a property disposition strategy for the Desert Willow Lot Pads as outlined on Exhibit "A" of the accompanying staff report; 2) authorize SARDA Executive Director/City Manager to execute a Purchase and Sale Agreement (PSA) to sell SARDA-owned Desert Willow Lot Pad E to the City of Palm Desert for the appraised value of $2,670,000 after receiving approval from the Oversight Board and the State Department of Finance; 3) appropriate $2,670,000 plus related closing costs from the Unobligated General Fund Reserves. Motion was seconded by Weber and carried by a 5-0 vote (AYES: Harnik, Kelly, Nestande, Weber, and Jonathan; NOES: None). 28 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING FEBRUARY 22, 2018 Councilmember/Director Kelly added she was very excited to see this on the agenda, because it struck her as the best response to the concerns Mayor/Chair Jonathan raised about moving it along while the City has maximum opportunity to influence outcomes. Mayor/Chair Jonathan commented there were high-level items on the agenda with the City Goals, Economic Development Plan, and the Desert Willow pads, adding that Council was addressing important policy issues that certainly shape the community's future for the better. XVII. CONTINUED BUSINESS None XVIII. OLD BUSINESS None XIX. PUBLIC HEARINGS None XX. ADJOURNMENT With City Council concurrence, Mayor Jonathan adjourned the meeting at 5:54 p.m. ATTEST: RACHELLE D. KLASSEN, CITY CLERK CITY OF PALM DESERT, CALIFORNIA SABBY JONATHAN, MAYOR 29