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HomeMy WebLinkAboutPrelim - CC - 04-26-2018PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING THURSDAY, APRIL 26, 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 3:06 p.m. II. ROLL CALL Present: Councilmember Jan C. Harnik Councilmember Kathleen Kelly Councilmember Gina Nestande Mayor Pro Tem Susan Marie Weber Mayor Sabby Jonathan DRAFT yTi-fl 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 Bo Chen, City Engineer Stephen Y. Aryan, Risk Manager 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 APRIL 26, 2018 IV. ADJOURN TO CLOSED SESSION Reauest for Closed Session: DRAFT A. Conference with Real Property Negotiator pursuant to Government Code Section 54956.8: 1) Property: Desert Willow Golf Resort - Overflow Public Parking Lot (APN 620-420-024) Negotiating Parties: Agency: Lauri Aylaian/Martin Alvarez/City of Palm Desert Property Owner: City of Palm Desert Other Parties: Doug Sheres/John Luff/FS Ventures, LLC Under Negotiation: x Price x Terms of Payment B. Conference with Legal Counsel regarding significant exposure to litigation pursuant to Government Code Section 54956.9(d)(2): Number of potential cases: 2 With City Council concurrence, Mayor Jonathan adjourned the meeting to Closed Session of the City Council and Successor Agency at 3:07 p.m. He 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 reported that direction was given, but no action was taken. VI. PLEDGE OF ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA - Lt. Matt Martello, Asst. Chief, Palm Desert Police/Riverside Co. Sheriffs Department VII. INVOCATION - Councilmember Kathleen Kelly 2 DRAFT PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 26, 2018 VIII. AWARDS AND PRESENTATIONS A. PRESENTATION TO RECOGNIZE SAMUEL RAUMIN, JR., FOR HIS ACHIEVEMENT IN EARNING THE DISTRICT 3 "VOICE OF DEMOCRACY AWARD," REPRESENTING VETERANS OF FOREIGN WARS POST 3699. On behalf of the City Council, Mayor Jonathan presented a Certificate of Achievement to Mr. Samuel Raumin for his achievement. Mr. Michael T. Pierson, Commander of Post 3699 in Indio, thanked the City Council for its leadership in helping support their 80th Anniversary Celebration and Recognition Awards Dinner that was hosted at the J.W. Marriott Resort on March 17, 2018. He said it was at that dinner that Mr. Raumin received his Post Award and where he read his winning essay. He added that Mr. Raumin won at the District level, which is made up of 22 VFW Posts from Wildomar all the way to Blythe. Therefore, he beat all the other nominees from an extremely large District. He asked the Mayor to join him in presenting Mr. Raumin with the District 3 Award and a check for $150. Mr. Raumin delivered his speech titled "American History - Our Hope For the Future" to the City Council and those present. Mayor Jonathan thanked Mr. Pierson and Post 3699, stating Council very much appreciates the veterans and their service to this Country, and as displayed this evening, their service to the community. Responding to question, Mr. Raumin said he is a junior at Palm Desert High School and is planning on attending Cal Poly to study Electrical Engineering. Councilmember Harnik stated it was such a pleasure to attend the Awards Dinner and hearing his essay for the first time, adding it was an honor to be there. B. PRESENTATION TO THE CITY COUNCIL BY 8' GRADERS FROM PALM DESERT CHARTER MIDDLE SCHOOL IN APPRECIATION FOR CITY FUNDING ALLOWING THEM TO TAKE A FIELD TRIP TO THE MUSEUM OF TOLERANCE IN LOS ANGELES ON FEBRUARY 27-28, 2018. Students from Palm Desert Charter Middle School thanked the City Council for its support and funding to make it possible for them to visit the Museum of Tolerance in Los Angeles, stating their experience was educational and impactful. This year students read novels related to the Holocaust, attended the Holocaust Memorial at the Civic Center and heard a survivor's testimony, 3 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 26, 2018 DRAFT and took a field trip to the Museum of Tolerance. They presented a 3-minute video, which was prepared to thank the Palm Desert City Council, and the City of Rancho Mirage, for the support the school receives annually to make this trip possible for students. Mayor Jonathan said he was so proud the City supports students in this way, and vice versa, schools and students support the City's annual Memorial of the Holocaust at the Civic Center Park. He's pleased that students are learning that during the Holocaust twelve (12) million people were killed by the Nazi regime and six (6) million of them were Jews, the other six (6) million included gays, intellectuals, gypsies, and anyone that didn't conform. The Museum of Tolerance teaches the important of embracing diversity whether it's religious, cultural, socioeconomic, gender preference, etc., so he's grateful schools have taken the initiative to teach those lessons. He thanked the students for their presentation. Councilmember Harnik noted she had the opportunity to see the video at the Yom HaShoah Observance, stating it was quite stirring and impactful, She commented that the Jewish Federation also helped fund the trip. C. INFORMATIONAL QUARTERLY REPORT OF ACTIVITIES FROM THE PALM SPRINGS INTERNATIONAL AIRPORT COMMISSION BY CITY OF PALM DESERT'S APPOINTED REPRESENTATIVE MR. ROLF HOEHN. Mayor Jonathan noted that Mr. Hoehn provided a written report highlighting that as of April 19, 2018, the airport has a pick up/drop off area for shared rides, Uber, Lyft, and others, and traffic at the airport has increased by 7.2%. With City Council concurrence, the Quarterly Report of Activities was received and filed. IX. ORAL COMMUNICATIONS - B MR. JAMES JOHNSON, North View Drive, Palm Desert, stated he was concerned about the homeless situation in Palm Desert. While he admitted he didn't have a solution to offer, he's hoping this Council can find one. In one of his routine doctor's office visits on Highway 111 and Lupine Lane, the elevator wasn't operating, so he wobbled himself up two flights of steps to learn it had been shut off and someone forgot to turn it back on in the morning. It appears the elevator is shut off at the end of the day, because the homeless camp in there, and they defecate and urinate, leaving a mess. Recent statistics show a 100% increase in the homeless and is headed in the wrong direction. It is without argument that lack of planning has turned some areas in San Francisco and Los Angeles uninhabitable and it's hurting property values. In fact, there was a video online today about what's going 4 DRAFT PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 26, 2018 on in San Francisco in the subways with people on drugs and/or passed out. He believed that in order for Palm Desert to continue to have a beautiful city to enjoy, attract businesses and tourism, and have people investing in their homes, compassion for the homeless should not be at the expense of the tax paying residents. He asked that the Council find a way to treat the homeless with respect while still upholding the rights of the residents. Mayor Jonathan offered that he would be addressing the homeless issue under Mayor and Councilmember Reports and Remarks, which he believed will be informative to his question. He noted he represents the City as the Chair of the CVAG Homelessness Committee. He encouraged Mr. Johnson to call him so he can update him on the actions being taken regionally and by the City. MS. SUSAN S. DONNER, EL Paseo, Palm Desert, stated she worked at J. Charnay Salon, noting her co-workers were also in attendance. She said years ago business owners on El Paseo voted to have an assessment fee attached to their business licenses, which helps cover the cost of the maintenance for the median on Ei Paseo for the artwork and flowers. Although J. Charnay Salon has an El Paseo address, they are in the Grapevine Plaza behind Cactus Flower Shoes and next door to Cafe des Beaux-Arts, stating their entrance faces the Presidential Plaza parking lot, which has been neglected and is becoming very dangerous. The salon owner pays the assessment fee every year with her business license, and it's very costly for the hairdressers, manicurists, and estheticians to pay the same assessment fee. She's not speaking for the owner of the salon. but for the people that work in the salon. It's her understanding the business license fee for Palm Desert is around $60, but it was just raised to $184. She asked that only the standard business license fee be imposed on the workers in the salon. MR. RYAN LANDMAN, Kandinsky Way, Palm Desert, noted he sent an email to the City Council a couple of days ago regarding SB54 "Sanctuary State" bill recently passed. He was wondering if Palm Desert was planning on opting out or at least having discussions to opt out like many cities such as Beaumont, Lake Forest, Newport Beach, Lake Elsinore, etc. He asked if Council was going to bring it up as an agenda item where there can be a discussion to debate it. MayorJonathan encouraged Mr. Landman to call or email him to address his question. 5 DRAFT PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 26, 2018 MR. WALLY MELENDEZ approached the City Council to say that Palm Desert didn't have a state-of-the-art public library, and it was needed. There is one at the College of the Desert campus, but it's a joint use. Given the City has an outstanding and high -end shopping strip on El Paseo, he's guessing there are plans for a public library for the City. He praised the City Council for having the best looking town in the Coachella Valley, X. MAYOR AND COUNCILMEMBER REPORTS & REMARKS TO THE COMMUNITY A. Councilmember Jan C. Harnik Committee Reports and General Comments. 1. Senior Inspiration Awards - reported she attended this very inspirational event, in that you get to see the volunteers who give so many hours to enhance others' lives in the community. 2. McCallum Theatre Board Meeting - reports show that in the first quarter, the McCallum Theatre was the 9`t' highest in the world in ticket sales, the 7' highest in the United States, and has more shows than any other theater in the world. Councilmember Kelly added there is opportunity for students throughout the Coachella Valley to attend field trip performances, which are selected explicitly to be both accessible and inspirational. She is extremely impressed with the effort the staff at the McCallum puts into this educational component to introduce a wide range of students to the arts. B. Councilmember Kathleen Kelly Committee Reports and General Comments. 1. Armenian Genocide Commemoration - attended a performance by an Armenian dance company from the City of Glendale, to commemorate the anniversary of the Armenian genocide that happened in the early part of last century. It was extremely compelling, stating this was another, but less known historic example of what our species is capable of at its worse. She said if you weren't familiar with the Armenian history, she would encourage you to research it and learn what you could. 2. Coachella Vallev Association of Governments (CVAG) Homelessness Committee - reported she's been attending these regional meetings, and announced that Mayor Jonathan has been actively leading that group for the second year to accomplish two things. First, to assure there is a regional collaborative approach to this issue, because to make real progress the City has to be a collaborator. Secondly, the Committee is focused on using the best social science. Therefore, as 6 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 26, 2018 DRAFT funding sources are identified, monies are used in the most strategic and advantageous way. She expressed her personal thanks to the Mayor for his work, and also on behalf of the Committee. C. Councilmember Gina Nestande Committee Reports and General Comments. 1. Economic Business Climate Event - there was discussion about the economy in the Coachella Valley and in the State of California, and it wasn't a surprise that the biggest issue is affordable housing. She said Palm Desert is grappling with it, and guessed most in the audience were here for the Palm Desert Country Club and the Sands Project, which deals with affordable housing. She is very optimistic that between the citizens, City Council, and developers, they can work together and come up with a solution that can find compromise on this issue. D. Mayor Pro Tem Susan Marie Weber Meeting Summaries Report for the Period of March 26 - April 8, 2018. With City Council concurrence, the Meeting Summaries Report was received and filed. 1. Citizens on Patrol [COPS] - thanked Captain Jeff Alley and members of the Palm Desert COPs Program. The City hosted the first annual All -Valley COPs Meeting where members had an opportunity to compare their vehicles, share experiences, and learn about what others in their field are doing. They had three speakers on safety issues, so the meeting was truly informative. E. Mavor Sabbv Jonathan Committee Reports and General Comments. 1. Coachella Valley Nonprofit Organizations - noted there are thousands of nonprofit organizations in the Coachella Valley and they do a lot of community work in the City, and as Councilmembers, they have the opportunity to attend many of their luncheons. Most recently they attended the Senior Inspiration Awards, Desert Best Friend's Closet where they heard amazing success stories; and the Fashion Show for the Joslyn Center. He said the Joslyn Center helps so many people with bringing food to those that need it, they help seniors learn how to balance so they can avoid falling and being hurt. Also, today, Councilmembers attended the luncheon for the Ophelia Project. This program takes about 600 young girls from the local high schools from all three school districts every year, and these ladies are matched with strong women to act as their mentors to show them there are options 7 DRAFT PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 26, 2018 for good choices in their lives. The success stories they heard from going through the program are heartfelt. 2. CVAG Homelessness Committee - reported that CVAG contracted with Path of Life Ministries to provide services, and they are informed by the best social science. It's the new paradigm for how to engage with homeless people to get them off the street, which helps everybody. The Committee determined it will evaluate services every quarter and hired an independent evaluator, HARC (Health, Assessment & Research for Communities), which is a local data agency. The first report showed that in the past seven months of operations, they have had an amazing success rate, in that almost 90% of the homeless they have reached out to have been placed into a program and into housing. So far, they have taken 54 people off the streets and into services, adding they are starting to make progress in addressing homelessness. In fact, the CVAG Executive Committee plans to expand the Path of Life contract, which will be beneficial to Palm Desert, because part of the expansion will be to form two, two -member teams that will conduct outreach with the homeless and also interact with public safety officials and other caregivers, such as Coachella Valley Rescue Mission, Martha's Village, etc. They will also provide a liaison to the police department, so that when they encounter homeless individuals, they have a resource. Additionally, the City of Palm Desert will be taking further steps within the City, which will be an item at the May 10, 2018, meeting. He's very pleased the community has come together and adopted this regional holistic approach, which is proving to be very effective. 3, Desert Community Enerav (DCE) Committee - sent a shout out to Counciimember Kelly who has tremendous understanding for detail and legalese and technicalities and is part of the Committee. The good news is that a July roll -out schedule is coming, and it means residents will have a choice to be part of the DCE, which is simply an energy provider. Rather than Southern California Edison providing energy, this Joint Authority will do so. There will be a very modest savings to the resident, but more importantly, a choice to utilize more green energy at no additional cost. Therefore, members of the community will see marketing and informative material when the plan rolls out in July. 8 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 26, 2018 F. City Council Requests for Action. DRAFT 1. McCallum Theatre Parking Lot - Councilmember Harnik reported the City has helped them in the past to slurry seal the parking lot. However, slurry sealing creates a great heat island and it's something you have to do continually. In aligning with the vision of the City with sustainability and more green initiatives, she would like Council to consider, this time around, installing pavers. It's a good product for water runoff, the environment, is cost-effective, and is a long-term plan. Ms. Aylaian pointed out this issue would be appropriate to discuss at the upcoming budget study sessions when it reviews white papers and capital improvement projects. 2. Reaulatina Drones - Councilmember Kelly said she was hearing from many residents who are concerned about the increasing frequency of drones appearing over their houses and yards. She wonders if that should be regulated in some way to protect privacy and guard against criminal scoping to determine which houses might not be occupied. She requested the City's Public Safety Commission take a look at this issue, stating she understood Mr. Frank Taylor, who is on the Commission, has done extensive research on this matter. She believed it will be a helpful project for the Commission to assess and potentially report to the City Council on whether there is action it could and should take. 3. "5G" O❑-Ed - Councilmember Kelly said some may have seen in yesterday's Desert Sun, an article written by Joe Wallace and Josh Bonner on the wave of wireless innovation, known as fifth generation or "5G." The background is that last year Palm Desert and other cities in the League of California Cities strongly opposed State legislation that would have spoken when 5G and small cell installations could happen. The City fought that because it wanted local control, and the Op Ed is urging cities to look at the question to make sure it thought about what limitations or restrictions might be necessary to serve the City's interests and also package those in a way that's business friendly to assure that 5G installations can proceed to maximize internet access. She would like to have staff look at this question to see if there are best practices, sample ordinances or approaches that have been adopted by other cities to meet these needs. Mayor Jonathan suggested that since Mr. Wallace brought up the issue, he could do the research and give the City some suggestions. 9 DRAFT PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 26, 2018 4. Medicinal Cannabis - Mayor Pro Tem Weber stated the City has been moving along on the cannabis issue and everyone knew there would be modifications as it progressed. However, the City only addressed recreational use of cannabis when considering the six dispensaries, so she would like staff to start looking at the medicinal process. Therefore, she recommends staff start looking at an amendment and defining the classifications for the medicinal and education policy part of the Ordinance. G. City Council Consideration of Travel Requests/Reports. None XI. STAFF REPORTS AND REMARKS A. City Manager 1. City Manager's Meeting Summaries Report for the Period of April 2-13, 2018. With City Council concurrence, the Meeting Summaries Report was received and filed. 2. Concerts in the Park - the City's concert series at the Civic Center Park begins on Thursday, May 3, at 7:30 p.m. Kicking off the event is Ambrosia, stating this band was very popular in the early 1980's. 3. Budweiser Clydesdales - reported the Clydesdales were a big hit. There were children and adults jumping up and down, shrieking in glee as they saw them go up and down El Paseo. They delivered beer to some restaurants and watering holes along the street. B. City Attorney None C. City Clerk None D. Public Safety 1. Fire Department None 10 DRAFT PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 26, 2018 2. Police Department None XII. CONSENT CALENDAR A. MINUTES of the Regular City Council Meeting of April 12, 2018. Rec: Approve as presented. B. CLAIMS AND DEMANDS AGAINST THE CITY TREASURY - Warrants Dated 3/23/2018, 3/30/2018, and 4/6/2018 - 2. Rec: Approve as presented. C. CLAIMS AND DEMANDS AGAINST THE CITY/HOUSING TREASURIES - Warrant Dated 4/13/2018 (Joint Consideration with the Palm Desert Housing Authority). Rec: Approve as presented. D. CITY COMMITTEE AND COMMISSION MEETING MINUTES. 1. Parks & Recreation Commission Meeting of February 6, 2018. 2. Public Safety Commission Meeting of March 14, 2018. 3. Youth Committee Meeting of March 12, 2018. Rec: Receive and file. E. RESOLUTION NO. 2018 - 19 - A Resolution of the City Council of the City of Palm Desert, California, Setting Forth its Findings and Authorizing the Destruction of Records from the Department of Community Development, as Indicated on the Records Retention Schedule (Adopted September 28, 2017), Containing Palm Desert Youth Committee Agendas from 2014 through 2015 (Exhibit "A"). Rec: Waive further reading and adopt. 11 DRAFT PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 26, 2018 F REQUEST FOR APPROVAL of Contract with Dove Printing for Printing of the Bimonthly BrightSide Newsletter - Fiscal Year 2018-2019, with a One - Year Extension Provision, and Authorize Expenditure for Mailing of the Newsletter (Contract No. C36920). Rec: By Minute Motion: 1) Award to low bidder Dove Printing, Palm Desert, California, in the amount of $28,494 for printing of the BrightSide Newsletter for FY 2018-2019, with an optional one-year extension provision for $29,064 for FY 2019-2020; 2) authorize Mayor to execute said contract; 3) approve the expenditure of up to $35,000 with the United States Postal Service to cover a year's worth of postage for mailing and delivery of the BrightSide Newsletter — funds are included in the proposed General Fund Budget for FY 2018-2019 in Account No. 1104417-4302600. G. REQUEST FOR APPROVAL of New Telecommunications Contract with TPX Communications in the Amount of $2,690/Month Plus Usage Charges (Contract No. C36930). Rec: By Minute Motion, approve new telecommunications contract with TPX Communications in the amount of $2,690/month plus usage charges, and authorize City Manager to negotiate, finalize, and execute the agreement — funds are available in Account No. 1104190-4365000. H. REQUEST FOR APPROVAL of an Easements and Maintenance Agreement Between the City of Palm Desert and Portola PD, LLC, Associated with The Retreat at Desert Willow Project (Contract No. C36940). Rec: By Minute Motion: 1) Authorize the Mayor to execute an Easements and Maintenance Agreement with Portola PD, LLC, Palm Desert, California, associated with The Retreat at Desert Willow Project; 2) appropriate $14,000 from Desert Willow Capital Project Account No. 4414195-4809200 payable to Portola PD, LLC, for one-time maintenance costs associated with the easements. Approved. 4-0-1 (AYES: Harnik, Kelly, Nestande, and Weber; NOES: None: ABSTAIN: Jonathan) 12 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 26, 2018 DRAFT I. REQUEST FOR APPROVAL of First Amendment, Renewing Contract with Same Day Express in the Amount of $49,992 for its First Extension from July 1, 2018, to June 30, 2019, for Maintenance Services Associated with the City of Palm Desert's Permanent Public Art Collection and the El Paseo Exhibition (Contract No. C36131). Rec: By Minute Motion, approve/authorize: 1) First Amendment to renew subject contract with Same Day Express, Palm Desert, California, in the amount of $49,992 for its first extension from July 1, 2018, to June 30, 2019, for maintenance services associated with the City of Palm Desert's permanent public art collection and the El Paseo Exhibition; 2) Mayor to execute the Amendment; 3) up to $5,000 on an as -needed basis for additional maintenance services from Same Day Express — monies are being requested from the Public Art Fund 436 in FY 2018-2019. J. REQUEST FOR AUTHORIZATION to Release Bonds for Bella Villagio for Grading and Offsite Improvements and to Accept a Maintenance Bond Therefor (Case No. TR 36404. Lot 4, 622-360-004) (Greyson Zehnder, WL Palm Desert Property, LLC, Applicant). Rec: By Minute Motion: 1) Authorize release of the bonds for Bella Villagio in the amount of $123,795 for grading and $309,982.50 for offsite improvements; 2) accept maintenance bond therefor in the amount of $20,665. K. REQUEST FOR APPROVAL of Out -of -State Travel for the Tourism & Marketing Manager to Conduct Deskside Briefings with National Publications in New York City, New York - June 2018. Rec: By Minute Motion: 1) Authorize out-of-state travel for the Tourism & Marketing Manager to conduct deskside meetings with national publications in New York City in June 2018; 2) approve the expenditure for travel in an amount not to exceed $8,500 to cover travel costs, agency fees, and any other associated costs — funds are available in Account No. 1104417-4309000 - Professional/Other. Mayor Jonathan registered his abstention on Item H. Upon motion by Harnik, second by Remainder of Consent Calendar approved as presented. 5=0 (AYES: Harnik, Kelly, Nestande, Weber, and Jonathan; NOES: None) 13 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 26, 2018 XIII. CONSENT ITEMS HELD OVER None XIV. RESOLUTIONS None XV. ORDINANCES A. For Introduction: None B. For Adoption: None XVI. NEW BUSINESS DRAFT A. REQUEST FOR APPROVAL OF THE FISCAL YEAR 2018-2019 PROJECT LIST TO BE FUNDED BY SENATE BILL 1: THE ROAD REPAIR AND ACCOUNTABILITY ACT. Senior Management Analyst Heather Horning stated that last year Senate Bill 1 created the Road Maintenance and Rehabilitation Account (RMRA), which is meant to provide funding to local governments for streets and roads. In order to receive these funds the City has to do a couple of things. One of them is to file a report annually with the California Transportation Commission. The Project List has to list all the projects intended to be funded using the RMRA funds. The other is the City must meet a Maintenance of Effort (MOE) requirement, which sets a minimum level of General Fund spending on streets and roads. Staff has been working on reducing this number, because it was higher than its average spending on streets and roads, and they've been able to reduce it to a point where the City can meet the requirements going forward if it spends an additional $300,000 of General Funds. Staff will bring this forward to the City Council at its budget study sessions. They are a little short in funds for the 2017- 2018 fiscal year, but they will continue to work with the State Controller and League of California Cities to reduce the maintenance effort amount. In the meantime, staff recommended holding off on those funds until the issue is resolved. 14 DRAFT PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 26, 2018 Mayor Jonathan stated that under Fiscal Analysis, staff is projecting that for the 2017-2018 year the City may need to return the previously budgeted revenue of $289,000. Ms. Horning agreed, stating it was a potential impact, because right now the City is holding on to it until it can resolve the MOE issue. Potentially, staff can get it lowered to where it felt it needed to in order to utilize those funds, but they would hate to expend them only to find out they wouldn't be able to meet the MOE for that fiscal year. Further responding, she said the funds are restricted, and should the City not meet the MOE, it would not impact the General Fund. Mayor Jonathan asked about staff's recommendation for 2018-2019. Ms. Horning replied that for 2018-2019, staff will bring forth the additional expenditures required to meet the MOE with the budget. Today staff is only acting on approving the Resolution to send a Project List to make the City eligible to receive those funds. Mayor Jonathan saki he understood that if this hem is incorporated into the budget, the City would be spending $350,000 of General Funds in order to obtain the $842,000 of these RMRA funds. Ms. Horning answered yes. Councilmember Harnik explained that SB1 is a result of the gas tax, but there are efforts to repeal it. If it's repealed, she questioned how it will impact the funds it has already obtained. Ms. Horning replied it was a good question as she has asked the State Controller herself, and at this time they are unable to answer exactly how that would be undone. Funds are received monthly, so they would have to decide what to do with the funds already received. Obviously, if repealed, going forward the City wouldn't receive funds. Mayor Pro Tem Weber said she read the tax was going to be retroactively repealed and returned. Councilmember Kelly asked how it could be returned to the individuals that paid the tax. Councilmember Harnik remarked she didn't think Sacramento would feel bad in taking the money back and keeping it. She said this issue has been discussed at the Riverside County Transportation Commission prior to funds being distributed. She wondered if the City was up against a timeline where it should use the funds. 15 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 26, 2018 DRAFT Ms. Horning reiterated the answer is unknown at this time, but staff is staying on top of it. If the City were to get in that position, staff will move quickly and return to the City Council for direction. Mayor Pro Tem Weber commented that if the repeal passes, it's unknown whether the State will want back funds already distributed, but all cities are facing this same situation. Councilmember Harnik believed that if the funds are spent, the City wouldn't be in that position, but if the funds are just sitting there, she didn't know. Mr. Jonasson offered this issue has been discussed amongst public work directors in the different cities. The League of California Cities position is to try to put the money to work as quickly as possible. His personal opinion is that if it is sitting around, the likelihood of a call back is a lot greater even for the 2017-2018 funds the City is currently accumulating. Staff identified a real project to do on Monterey Avenue, and his recommendation would be to move forward with it as quickly as possible with funds already received. Responding to question, he said the $289,000 are currently in reserve, and it will take time to put together the Monterey project, so those funds will not be spent until the project is designed. In the meantime, the fiscal year will start over in July when the City will accumulate more funds. By the time the Monterey project is designed and ready to go out for bid, staff was looking at late fall or even later. Mayor Jonathan pointed out that the item on the agenda is for approval of the Project List, so he's assuming Council couldn't act on anything else. He said other projects/items will come up in the budget study sessions on May 1 and wondered if that would be the appropriate venue to address Mr. Jonasson's comments. Mr. Hargreaves answered yes if it was soon enough, however, if necessary, the City Council could add it to the agenda, but he advised bringing it up at the budget sessions. Councilmember Harnik moved to: 1) VVaive further reading and adopt Resolution No. 2018 - 20, approving the FY 2018-2019 Project List to be funded by Senate Bill 1: The Road Repair and Accountability Act; 2) by Minute Motion, authorize Finance Department to return the Road Maintenance and Rehabilitation Account Funds for FY 2017-2018 to the State Controller if it is determined that the City is unable to meet the Maintenance of Effort (MOE) requirement. Motion was seconded by Kelly and carried by a 5-0 vote (AYES: Harnik, Kelly, Nestande, Weber, and Jonathan; NOES: None). 16 DRAFT PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 26, 2018 B. REQUEST FOR APPROVAL OF A 14-MONTH PROFESSIONAL SERVICES AGREEMENT FOR SHORT-TERM RENTALS (STR) MONITORING, COMPLIANCE, AND ENFORCEMENT SERVICES TO BEAR CLOUD SOFTWARE/STR HELPER IN AN AMOUNT NOT TO EXCEED $40,200 (CONTRACT NO. C36950). Associate Planner Kevin Swartz stated that on November 26, 2017, the City Council authorized staff to release a Request for Proposal (RFP) for operating a Short -Term Rental (STR) hotline, identifying non -permitted STRs, and performing other compliance activities. On February 2, 2018, staff solicited the RFP and received three proposals from Bear Cloud Software/STR Helper from Austin, Texas, Host Compliance from San Francisco, California, and LTAS Technologies Inc., from Toronto, Canada. An internal review committee made up of staff from Planning, Code Compliance, and City Attorney evaluated the three proposals, including the cost. The cost of the proposal ranged from $33,500 to $114,000. All three firms were very knowledgeable and have experience in the subject matter, but STR Helper was stronger in enforcement. Based on Council's direction, staff believes enforcement should be the main priority with the collection of Transient Occupancy Tax (TOT) a close second. Both the City of Indio and Big Bear currently have a contract with STR Helper, and staff consulted with them and they are satisfied with their services. Especially, since they have contracted with one of the other companies at a higher cost. Both cities basically said they were getting the same services at a lower cost with STR Helper. The internal review committee recommended awarding the contract to STR Helper. Councilmember Kelly said she noticed something in the other proposals that she didn't clearly see in STR Helper's, which was a description of the provider's capacity to monitor online advertisements as a help in identifying when room capacities are in violation. When advertisements explicitly say there is a maximum of 16 people at a certain location, even if the home is four bedrooms, which would be a violation on its face. The other thing was a description of software capability to access reviews and identify when online reviews. In essence, it would give an explanation, an unlicensed address was giving about who was staying there or who wasn't staying there. It was a degree of detail in utilizing publicly accessible information that impressed her. She asked how this company performs those functions. MR. ROBERT PETERSON replied that the scraping technologies, when he looked at those websites, used Home Away and the occupancy in bedrooms and bathrooms is usually displayed. In those fields, they are able to pull out a mega data and they store it in their database. Each time they scrape, they take a snapshot and store the data. So if it changes over time, they will detect it. Also, when they receive the City's permit data, they will load it to 17 DRAFT PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 26, 2018 their system, and if the City specifies there can only be six people in a house, and the advertisement is listing ten (10), they will be able to flag it and see it. Additionally, they keep snapshots of this data, so if the listing is taken down, violation letters go out, and they can report the listing did exist at one time. In response to the second question on minding online reviews, he said the snapshot holds the reviews, but they could also document the reviews when they start. The company usually updates quarterly, if not semiannually, s❑ new reviews are stored into the system. For example in 2017, say there were six reviews, they will have documentation on them. Councilmember Harnik moved to, by Minute Motion: 1) Award subject 14-month Professional Services Agreement for Short -Term Rentals (STR) monitoring, compliance, and enforcement services to Bear Cloud Software/STR Helper, Austin, Texas, in the amount of $33,500; 2) authorize City Manager to approve extra expenses not to exceed 20% of the total contract amount, or $6,700, for ancillary services throughout initial term of the Agreement; 3) authorize the Mayor to execute said contract, subject to final review and approval of the City Attorney — funds are available in Account No. 1104159-4309000 (General Services). Motion was seconded by Kelly and carried by a 5-0 vote (AYES: Harnik, Kelly, Nestande, Weber, and Jonathan; NOES: None), XVII. CONTINUED BUSINESS A. CONSIDERATION OF A REQUEST TO REZONE THREE PARCELS FROM OPEN SPACE (OS) TO MIXED RESIDENTIAL (R-2) AND APPROVE A PRECISE PLAN AND CONDITIONAL USE PERMIT FOR THE CONSTRUCTION OF 69 CONDOMINIUM UNITS ON APPROXIMATELY 30 ACRES LOCATED ON THE FORMER PALM DESERT COUNTRY CLUB EXECUTIVE COURSE, Case Nos. PP/CUP/EA/CZ 16-280 (Christopher McFadden/McFadden Architects, Applicant) (Continued from the meeting of March 22, 2018). Principal Planner Eric Ceja recalled for the City Council that this item was continued to this date from the March 22 meeting. Staff is requesting a continuance in order to respond appropriately to the Operations and Maintenance Agreements. Initially, staff requested a continuance to the Meeting of May 24, but instead recommended continuing to the meeting of May 10, 2018. Mayor Jonathan noted there are concerns from some residents who were leaving to return back to Canada or elsewhere. He thanked staff, because Council doesn't always know how much time, effort, and hours that go into preparing a staff report, so staff's ability to move the matter two weeks forward was much appreciated. 18 DRAFT PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 26, 2018 Councilmember Kelly commented she assumed staff will give notice to all the folks who have been in communication with the City, because a number of them are expecting this to be continued to May 24. Mr. Ceja replied staff will send out additional notice. MR. JACK FORNEY, Kentucky Avenue, Palm Desert, noted he previously submitted a written request to delay the public hearing on this project until October or November when many residents will return to the area, allowing the Applicant and homeowners time to implement a friendly compromise. MS. BARBARA POWERS, Kentucky Avenue, Palm Desert, read out loud an email from Ms. Lisa Theodoratus an Utah Circle as follows: "On behalf of myself and the homeowners of Palm Desert Country Club, 1 am requesting all information related to the legal determination and/or negotiations of the Operation and Maintenance Agreement, past, current, and future, by the City of Palm Desert, McFadden Architects and/or golf course owners and all of their agents, and Palm Desert Country Club HOA. It is the expectation of the affected homeowners of PDCC that the City of Pam Desert will help us find a solution that will keep the open space zoning of the 9-hole course intact while finding a use that will uphold the maintenance standards of the above referenced documents." Ms. Powers provided the email to the City Clerk and is of record in the Office of the City Clerk. Councilmember Kelly stated it made sense to continue this matter to May 10 as suggested. If residents are working on some alternatives that are deemed preferable by the community, they can tell the City Council about it on May 10, then Council can see where it will go from there. Councilmember Kelly moved to, by Minute Motion, continue the matter to the meeting of May 10. Councilmember Nestande asked if it would be appropriate if the developer was willing to meet with the concerned residents sooner rather than waiting until the 10t" to get feedback. Councilmember Kelly said she heard residents are working on alternatives to the development, and they wanted more time to process. A number of conversations are happening currently as to the details of this particular proposal; therefore, all conversations remain possible between now and May 10. Mayor Jonathan concurred, however, the matter has been in existence for a long time, so there have been meetings and discussions for a number of years regarding this matter. The public process started with the Architectural 19 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 26, 2018 DRAFT Review Commission (ARC), then the Planning Commission, and it's been before the City Council multiple times. He felt Palm Desert was becoming more and more a year round community, and if someone is not in town, they can certainly go on the record by submitting a letter or email. Therefore, he's very comfortable with the May 10' date being proposed by staff. Mayor Pro Tem Weber seconded the motion and it carried by a 5-0 vote (AYES: Harnik, Kelly. Nestande, Weber, and Jonathan; NOES: None) XVIII. OLD BUSINESS None With City Council concurrence, Mayor Jonathan suspended the agenda at this point in order to take up the Successor Agency and Housing Authority agendas. Following those agendas, he resumed the regular City Council agenda order. XIX. PUBLIC HEARINGS A. REQUEST FOR APPROVAL OF A DENSITY BONUS, PRECISE PLAN AND CONDITIONAL USE PERMIT, AND MITIGATED NEGATIVE DECLARATION FOR A 384-UNIT APARTMENT PROJECT WITH A CLUBHOUSE, RECREATIONAL AMENITIES, AND ROADWAY IMPROVEMENTS FOR AN UNDEVELOPED 18-ACRE PARCEL LOCATED ON THE SOUTH SIDE OF HOVLEY LANE EAST AND EAST OF PORTOLA AVENUE, Case No. PP/CUP/EA 16-394 The Sands Apartments (Lee Newell, New Cities Investment Partners, LLC, Applicant) (Continued from the meeting of April 12, 2018). Principal Planner Eric Ceja displayed a rendering of the newest proposal by the Applicant. He recalled for the City Council that at the April 12 meeting the item was continued in order to hold a community meeting between the developer and surrounding communities. Such meeting was held on April 18, resulting in the addition of Buildingl6. With this addition, the developer is able to reduce the height of Buildings 8 and 11 to two-story, which will satisfy many of the concerns from the neighbors. However, because of these changes, open space and amenities were removed from the site. Some of the other items they were able to come to a consensus are the following: 1) During Phase 1 of construction, all perimeter landscape would be installed at the time grading is complete, giving it time to grow and mature for when the apartments go vertical; 2) installation of an 8-foot landscape buffer along the Venezia community to abate nuisances from 20 DRAFT PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 26, 2018 vehicles being parked or people working on cars. The community suggested, and the developer agreed, to put the garages back in place with an 8-foot offset. There will also be new landscape along that 8-foot setback for Venezia and new landscape along Portola Country Club. Some unresolved issues that continue to come up are that with the addition of Building 16, either Building 8 or 11 would be reduced to two-story. The surrounding community would like to see both buildings reduced to two stories in height. One proposal brought forward by the community is to see Building 4 raised to three stories, which will allow the Application to reduce Buildings 8 and 11 down to two stories. Next, Portola Country Club (PDCC) is advocating for a wall to be placed along their southern property line for security purposes. Staff displayed a slide of the original proposal showing eight (8) three-story buildings, along with the second proposal and today's proposal. Today's proposal has community support for the project, in terms of the redesign with only four (4) three-story buildings. He also presented the slide -through simulation that the Applicant prepared for the City Council and noted one of the proposed landscape materials is a Ficus hedge, which grows quickly and can definitely protect privacy and views. In conclusion, he stated the community meeting that was held at City Hall was beneficial and productive in that the Applicant and both Venezia and Portola Country Club all came together to try to find best solutions. The end result and changes are a result of that town hall meeting. Councilmember Nestande noted she serves on the 2x2 Committee along with Mayor Pro Tem Weber, the City Manager, and Director of Community Development Ryan Stendell, and at this meeting were also the Sheriff's Department and the Board of Education from Desert Sands. She asked Mr. Stendell to share what was said about the Sands Development and the two and three story buildings. Mr. Stendell stated he presented this development to the 2x2 Committee and the conversation went well. The school district, while not in a formal action, did not oppose the three or two story buildings adjacent to the school. He said the Riverside County Sheriff's essentially acknowledge the project was not creating any more dangerous situation compared to any other school adjacent to a multi -family or taller structure that exists across the nation. It was a very productive conversation in that Desert Sands head of security, Mr. Novak was there and they had a very collaborative discussion. They were excited to see a presence of new housing adjacent that would provide students within a walkable area to the school. Councilmember Kelly stated that one of the issues that has been consistently raised is a desire by those immediately adjacent to the project is to be named as insured parties should construction activity cause any cracking or damage. 21 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 26, 2018 DRAFT Mr. Ceja replied it was discussed and the Applicant has an answer. Councilmember Kelly noticed the summary of the recent community meeting mentioned that the developer agreed to install a small wall adjacent to the southern parking spaces to block vehicle headlights, but she didn't see the change reflected in the paperwork. Mr. Ceja responded he didn't believe the new site plan shows a new wall, but the one discussed was to block headlights on that southern property line where a pony wall could be installed that is 31 feet in height. Further responding, he said staff updated some conditions regarding the landscaping, but if it doesn't reference the wall, it can be added in. Councilmember Kelly said it was imperative that it be reflected in the paperwork, so perhaps staff can come up with some proposed language. With City Council concurrence, Mayor Jonathan called for a recess at 5:40 p.m. He reconvened the meeting at 5:47 p.m. Mayor Jonathan invited public testimony. MR. LEE NEWELL, New Cities Investment Partners LLC, Applicant, stated this project has been well vetted, but he wanted to share the results of the meeting he had with the neighborhood, which he felt went very well. He said Mr. Ceja and the City handled it extremely well. There were a lot of competing interests at that meeting, but believed they came together on most of the issues. He thanked the representative from Venezia and Portola Country Club, specifically, Mr. Loren Campbell and Mr. Orrin Weinstein, because they were very good advocates. At the end of the meeting, he suggested introducing Building 16, which is a two story, but unfortunately, it would mean doing away with the basketball court and dog park, but he moved the dog park between Buildings 7 and 10. He added that he had already taken out the volleyball court, but the soccer park remains. The purpose of Building 16 was so that Venezia and PCC could meet and come up with a decision on whether Building 8 or 11 would be reduced to two stories. He said other ideas were raised, but in the end it would be the City's decision. Councilmember Kelly asked about the insurance requirement. MR. NEWELL replied he spoke to his insurance representatives and he was told it was already covered in the Course of Construction insurance policy. Therefore, anything that happens that causes damages in the interior of Venezia or three blocks down on Portola, they can file a claim and there is no deductible, and they are fully compensated. He said they pay the 22 DRAFT PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 26, 2018 deductible under the policy, but if there is something else under the commentary that he can answer, he will. He was asked to put the boundary houses on as additional insurers, but his insurance agent said it wasn't necessary. He would be happy to do so, but it's not necessary. Councilmember Kelly commented that residents concern was the ease of making a claim, but she's hearing the Applicant say he's happy to do it if it gives them greater comfort. MR. NEWELL said he would be happy to add them as additionally insured, because effectively it's one and the same. Councilmember Nestande added residents want two rows of landscaping by the south wall going up to Portola. She heard the developer indicate he would be planting Ficus trees that grow tall and rapidly, which seems to be sufficient, but residents also want trees planted. MR. NEWELL offered he would love to do Ficus trees, because they grow like weeds, perhaps one or two feet a year and as high as 30 feet. It's what he proposed on the Portola side, because adding another wall wouldn't be the solution, stating he preferred greenery. Councilmember Nestande said another concern that was mentioned to her from the citizens of PCC was not having an 8-foot wall as suggested. MR. NEWELL replied he wasn't sure what that would accomplish, because there is a six-foot wall there, and he's complying with the Ordinance. He believed the Ficus and two rows of trees are the way to go. The concerns about views and headlights, he has a 45-foot wide easement where he can't put carports or buildings. Additionally, he has a 27-foot park strip where he's going to put the trees. He knew there were people from Portola that want a pony wall or some sort of obstacle to mitigate the headlights, which is why he wants to go with Ficus trees. Depending on the grades from the back of the parking spaces into the 27-foot park, he may be able to put something, but if the grade drop so much, then he's looking at a major structure. In his opinion, the Ficus trees would solve the problem. MR. DICK HAUGAN, Cobalt Way, Palm Desert, stated the development that the City Council was about to approve can and should be accomplished with all the goals mentioned with the elimination of the three stories. Although a simulation was provided, it was difficult to see the perspective illustrated from two stories and a three story, because there is a difference. He said two story buildings would be consistent with almost every other building in Palm Desert. He asked Council not to overlook personal property rights when a 23 DRAFT PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING APR1L 26, 2018 project of this size and magnitude can be accomplished with two story buildings. MR. JIM GUGINO, Via Garibaldi, Palm Desert, shared he initially had two concerns that included the affordable housing component, but he understands there is nothing that can be done about the low-income. Therefore, his number one concern is the three-story building. He noted the complex next door is 307 units and the Sands Project initially came in at 423 units, which is sky high, stating he didn't know why it was even considered. Now the project is down to 373 units, which is still 70 more units than the development next door. He lives in the Venezia development and in his back yard he will be looking at three story buildings, and they will be looking at his family out by the pool. It seems like every time they come down to City Hall, things get changed, and now the project is down from eight (8) three-story buildings to three (3). He said the City keeps having meetings, but no one knows what to vote on. He reiterated he was against three story buildings in his back yard, stating he has invested $1,070,000 in his home, pays more than $11,000 in taxes, and he has worked hard all his live to live in a nice area. He hopes the City Council will stand behind the citizens, stating he wasn't against apartments, but is against the three story buildings. MS. JUNE ENGLOM, Angels Camp Road, Palm Desert, urged the City Council to get everything in writing and ask for the following stipulations on this project: 1) move Buildings 8 and 11 forward; 2) protect the citizens by having the Applicant's insurance pay for any damages; 3) approve the initial proposal of two rows of landscape buffer with a 36- or 48-inch plant box; 4) build an 8-foot wall similar to the Venezia and PCC developments keeping continuity, privacy and security. She added that hedge rows and trees come and go, and when replaced they start at ground level. An 8-foot wall would provide permanent ease of mind that landscapes could never give. Additionally, she wanted to know where the hedge row and additional rows of trees would be specifically located. MS. JOAN FITZGIBBON, Angels Camp Road, Palm Desert, thanked Mr. Ceja, Mr. Newell, and Councilmembers for working with the communities and listening to their concerns in finding equitable solutions to their issues. She lives at PCC directly behind the corner of Canterra and the Sands. One of their main concerns is having that 8-foot wall to match what is already at Canterra. In discussing the options to ensure privacy on the Portola side, Mr. Ceja suggested a pony wall to hide the headlights that may come over the six-foot wall and evidently the developer has agreed to it. She didn't agree that a pony wall would take care of the issue, and they've been told that the ground elevation will be approximately 18-inches higher than what it is on the Portola side. The ground elevation on Canterra's back corner near her house is about 41/2 feet high, but she has an 8-foot wall, so she is 24 DRAFT PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 26, 2018 fortunate that she was not seeing headlights in her windows and from her back yard, and she does not look into two-story windows. However, the residents along Angels Camp will be seeing Buildings 13, 14, and 15, and they deserve the same consideration for the enjoyment of their privacy that Canterra took care of for their neighbors. A pony wall and planting will not accomplish the goal, because she used to have two large trees on the Canterra side and they were cut down several years ago and have not been replaced; they are not permanent structures. The parking strip on the plans shows 56 parking spaces, the entire length of the south end of the project. If the developer has already agreed to build a short pony wall, why not just put the 8-foot wall that takes care of their concerns. With the density of this project, Portola CC will be experiencing more noise from vehicles and people. They were told by Councilmembers that if the developer was willing to make changes, to get it in writing. She hopes this Council takes into consideration that the current residents of Portola, many who have lived there for more than 30 years, would like to continue to enjoy their community. MR. LEE SOUDER, Via Venezia, thanked Councilmembers for taking the time to visit their communities and listen to their concerns. While he is still in opposition to the three stories and high density, he understood there will still be an apartment complex next door. Even with the work from all the architects, it's still going to be one story too high. If this was a mirror image of Canterra, residents would not be here to speak against the project. The biggest problem he has had with this whole process has been communication. Many speakers this evening will speak to the project, but he wants to address future and existing projects to where there is better communication with the developer and the affected community. He asked the City Council to look to see how a developer can approach neighbors that will be affected by the project, by holding workshops or meetings, but not through the HOA or management company, but through the property owner directly. He said the Applicant stated he notified Venezia, but he never received anything from the Applicant about the project. He said Council should followup to see how the Planning Department can make developers reach out and inform the community about what's going on. He said he couldn't under the purpose for the Town Center rezoning for the high density and three-story buildings or how they could be allowed. He added there was still no bus stop on Hovley Lane and there is poor access to grocery stores. He understands Marriott will have accessibility to employees that will be able to cross the street, but others will have problems using the bus, which is a big concern. MR, LOREN CAMPBELL, Via Pellestrina, Palm Desert, approached the City Council because of the treat to the quality of life and quiet enjoyment to his home by the proposed three-story buildings adjacent to Venezia and Portola Country Club. This conflict was created when the City approved the new 25 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 26, 2018 DRAFT Town Center Neighborhood that allowed three-story buildings to be built next to golf and resort homes. He praised the City Council for having the Applicant meet with the communities, because the result is that Council has a better plan to be able to vote on. He's in full support of the proposal that Mr. Ceja outlined on April 18, stating it's a better plan than what was presented two weeks ago. There is a way that the plan could be made better by moving Buildings 8 or 11 to Building 4. He still thought a better solution would be to move it to Building 7 on the Canterra site, giving a better balance of the three-story buildings throughout the project. MS. PATTY MCNAMARA, Angels Camp Road, Palm Desert, thanked Mr. Newell for checking into the insurance component and having them covered under his liability policy: she hopes no claims will be necessary. Residents of Portola CC endured damage during the construction of Canterrra, so they are happy to be on the safe side, adding they will take photos of their home prior to construction to prove any damage was not pre- existing. They would like to obtain a copy of the liability insurance naming them as additionally insured and asked the City Council to get it in writing. She invited Mr. Newell to look at Ms. Joan Fitzgibbon's 8-foot wall to see first hand how nice it is. MR. JOE MARTINEZ, Via Pellestrina, Palm Desert, stated he was still not in favor of three-story buildings next to their single -story community. However, Mr. Newell has made many concessions and presented a great compromise at the last workshop. By adding Building 16 and reducing 8 or 11, it signaled to him that the Applicant was working toward a better solution. He supports the recommendations in Mr. Ceja's staff report, but believed improvements could still be made by making Building 7 or 6 three stories before Building 4, stating it would create a more even distribution of the three-story buildings around the Sands project. It would mean Canterra would only have one three-story building adjoining their property. The second recommendation is for the City to revisit other neighborhoods where three-story buildings are allowed under the new General Plan that may affect other communities. Mr. Newell has proven to be a responsive developer in working with the communities, but the City may not be so lucky with the next project. He thanked the City Council for taking the extra time for coming up with a better plan and in working together, because it's better than working against each other. MR. RANDY BURDEN, Zircon Circle West, Palm Desert, expressed his skeptism about meeting with the developer in a problem solving session, but it was a good learning experience for everyone. They learned about details on the project, parties involved, and they made great progress. Prior to meeting with the developer, he brought with him a draft action plan that PCC had proposed that included six specific points, all of which the City Council 26 DRAFT PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 26, 2018 has addressed and Mr. Newell has been working on it with them. At the end of meeting he thanked Mr. Newell for educating them and helping them feel resolved. He knew the project will be a wonderful and new complex for new Palm Desert residents. Lastly, he encouraged the City Council to take that draft action plan out of their packet, review it, and make sure those six points are fairly addressed in the plan that is approved. He said almost everyone got along, but not everyone did. During the meeting there was discussion about moving buildings around and one of the proposals was to put the three-story buildings next to Canterra, but Mr. Newell said that wouldn't be possible because there was an agreement with Canterra. He asked specifically what was the nature and rationale for the agreement. Mr. Moran, the owner of Canterra stood up and said "he could answer the question, stating three-story buildings next to Canterra were non-starters and he would stop the entire project. Further, that he had views from the base of the mountains to the top of the mountain from one end of the Valley to the other, and it's not going to happen." He asked if this type of behavior in a meeting was endorsed by the City. They were also told that 700 units could go on that property, which everyone considered to be a threat. He asked the City Council to take into consideration that kind of behavior from a property owner. MR. ORRIN WEINSTEIN, Via Pellestrina, Palm Desert, thanked the City Council and Mayor for listening and communicating with the residents. He thanked Mr. Newell for being considerate of their feelings and their wants, stating he's been very flexible in changing the project dramatically. Secondly, he's in agreement with Mr. Loren Campbell comment, because what he said was very effective. MR. STEVE MILLER, Via Vittorio, Palm Desert, thanked the City Council for taking a pause for the cause and punting this issue back to the community to meet with the developer and staff. He believed the meeting resulted in a lot of positive progress and compliments to Mr. Ceja who did a great job in pushing issues forward where Mr. Newell was able to offer up some solutions. He too would like to see Building 4 go up to three stories and reducing Buildings 8 and 11 to two-story, which would be appropriate. MS. ROCIO MARTINEZ, Via Venezia, Palm Desert, thanked the City Council, staff, Mr. Ceja, and the developer for hearing their concerns and for being flexible, stating body language means a lot and she could tell people were attentively listening. Even though Portola CC residents had their own priorities to sort out, they came together and made a difference. She's now confident children will not be at a disadvantage with regard to safety and security, because residents have voiced their concerns. Initially, they felt very little was done in this regard, but she has now learned there have been multiple discussions by the City with the school district and Sheriff's 27 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 26, 2018 DRAFT Department within the past two months, but this project has been ongoing for almost two years. She suggested that for future projects, Council consider discussing these things early on in the process instead of two years into the project. Lastly, she's still concerned about the three-story buildings overlooking her yard, so she would like to see Buildings 7 or 6 go up to a three-story. MR. OSCAR MARTINEZ, Via Venezia, Palm Desert, stated he was glad the City Council postponed the meeting giving residents time to share competing priorities with the developer. It was great to hear the different perspectives and coming up with solutions; however, the City Council will still face a couple of tough decision. He asked the City Council to keep it fair for all communities involved. He thanked Mr. Ceja and Mr. Stendell for going above and beyond in addressing their concerns, adding that after the meeting he spoke with them and they shed some light as to what happens behind closed doors. He felt much better about the project in terms of security and safety. MS. DIANA ALTORFER, Via Pellestrina, Palm Desert, pointed out that 532 days ago, the City Council signed the new revised General Plan, which allowed the Applicant to build three-story buildings. The City named the area Town Center Neighborhood, so she applauded Mr. Newell for not making all the buildings three stories, because he had every right to do so without making any concessions. In August 2017, right after they had their second meeting with the Planning Commission on this project is when the City Council approved the rezoning to match the General Plan. She said the buck started and ended here. She said it was nice that everyone was being as flexible as they have, because she had no idea until she did. She has a binder that is now three inches thick of research, stating she found a very good website with wonderful suggestion for incorporating a plan and what a city's goal should be. She suggested Council take a look at it, because she had trouble finding Palm Desert's General Plan. She thanked Mr. Newell for his concessions, which are appreciated in that the project has gone from eight (8) three-story buildings to three (3). With regard to the density, she's glad that with this one project the City will get 76 affordable -housing units, which is 141% increase in a matter of two years instead of 10 years. However, there is a disparity for those who live in the two story buildings that will end up next to a three-story building. MS. CARRIE SMITH, Via Treviso, Palm Desert, noted she went to a couple of Planning Commission meetings, but missed the last meeting, and all of a sudden now everyone is very complimentary, but not her, she is still fighting against the three-story buildings. She said you almost get worn out by the process and you want to give up because concessions were made. The fact that it appears that Mr. Newell is a nice guy and is trying to be accommodating, the bottom line is that a three-story building is a dramatic 28 DRAFT PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 26, 2018 change for the whole City of Palm Desert and Council was opening up the possibility of having them everywhere, which was a dangerous precedence. Early on in the City's Planning Commission meetings, she emailed Mr. Ceja letting him know it was hard to visualize such a project, so she requested a 3D model that will show the elevations and location of the sand dunes in relationship to everything else around it. She was told this was something that is not normally requested. She disagreed, because such a drastic change should warrant it. She said this project wasn't a town home community that you see closer to the freeways near shops and other types of buildings. The video simulation presented by staff today made it seem like all anyone was going to see were tall trees and not the two and three-story buildings and garages, a clubhouse, etc. It gave her the impression that you wouldn't see anything but a few trees. Currently, from her neighborhood in Venezia, she can see Canterra, which is far away. She requested the City Council not make a decision on this project until it has seen a realistic representation of the project. MR. NEWELL stated less is more at this point, but he will make an off point comment. He was very impressed with the young representatives who made a presentation earlier today on the Holocaust combined with the homeless situation that Council talked about, which kind of trivializes everything else. He added that about six months ago the City asked that they clean up the site and learned that a homeless person was camping out there. This homeless person had a recliner and was cooking out there. The irony of that situation is undeniable, because they will be providing 78 affording -housing units on this site. Councilmember Kelly stated Council has consistently heard from the Portola Country Club residents that they want an 8-foot wall, so if Council includes that as a condition, she wondered if that would then make the proposed pony wall superfluous. Mr. Ceja answered yes. Councilmember Kelly stated that because she heard a couple of versions for the southern border of the property, she called attention to Condition No. 14, which describes a row of shade trees with the landscape plan subject to approval at a later date. She asked if it was envisioned that those shade trees might be the Ficus trees that have been described or is the prospect of them something separate. Mr. Ceja explained staff can specifically say Ficus trees, although it is a hedge and a tree, so it would fall under the definition of a shade tree for this condition. 29 DRAFT PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 26, 2018 Mayor Jonathan stated that in hearing the different scenarios on the three-story buildings, he asked if staff's recommendation met the various competing priorities and objectives. Mr. Ceja replied that as shown with the addition of Building 16 and the location of the three story buildings, the answer was yes. However, with the addition of Building 16, there was still a choice to be made on whether Building 8 or 11 is reduced to two stories. He added that with the competing interests, staff didn't feel comfortable making that decision. Councilmember Nestande added that instead of making the City Council choose between Buildings 8 and 11, because whichever building it chooses, it will upset the Portola CC residents or the Venezia residents. Instead she proposed making Building 4 into a three-story, adding Building 16, and reducing Building 8 and 11 to two stories, so that Council wouldn't have to choose. Mayor Jonathan noted the current iteration added Building 16, and calls for a reduction of either Building 8 or 11 from a three story to a two story. Alternatively, Building 4 can be raised to three stories, which would result in both Buildings 8 and 11 being reduced to two stories, which is what Council can consider. Councilmember Kelly stated Council has heard from representatives from the school district and the Sheriff's Department that it does not pose a safety threat to having Building 4 as a three-story. She walked the site herself and can strongly affirm that the presence of the development with regular residents paying attention to what is happening adjacently to the school, is a substantial improvement to safety considerations for the students. Therefore, she supports returning Building 4 to a three-story, so as to enable reducing both Buildings 8 and 11 to two stories. With regards to specific questions, it doesn't really matter if I would prefer Ficus, the residents of the PCC want an 8-foot wall. Given the substantial change the developer is going to make, a condition should be included for an 8-foot wall along the southern perimeter. The existing conditions provide for shade trees with landscape design subject to later approval. And as part of that process, it can be determined what type of tree will be the best landscape barrier with the wall. The other condition that seems important to include, again in deference to the residents, is a condition that those that wish to be added as named insured will have an opportunity to do so. It might not be a legal necessity, but if it affords a greater level of comfort with process, it was worthwhile to do. She would support approving the project with those perimeters about building heights and those two added conditions. Councilmember Nestande concurred. 30 DRAFT PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 26, 2018 Mayor Jonathan pointed out that 78 affordable -housing units will be added to the community. The City's experience with residents of affordable housing is that they are good people, just like the rest of the residents in Palm Desert. In fact, in a project like this no one would know who is in a low-income unit and who is a millionaire. He added this was not a sequestered low-income housing project, stating it was not the "projects." Therefore, not only is the City adding 78 affordable units, it's doing it in the smartest way possible. He also had to comment on the obvious, which is that the City has a Zoning Ordinance for this property that allows the developer however many three-story units, and you can argue whetherthat's appropriate zoning or not, because it was a worthy debate. In fact, he would ask staff to look where else it had this zoning that potentially non -compatible developments are adjacent, such as single-family residences. He said the City Council heard the concerns, but they can't turn the clock back. Therefore, no matter what the outcome is this evening, everyone should keep in mind that the PCC and Venezia are coming out winners, because they are getting a better product than Mr. Newell could have by legal right. He believed Council was now dealing with fine-tuning items. He said he could support Councilmember Kelly's suggestion, because it made a lot of sense. He pointed out that the project was now down to three (3) three-story buildings on a project that includes 17 structures (16 apartment units and a clubhouse), which was very good. He did have concerns about the safety of the children as all do, but he felt it was a shared responsibility, including the school district. He hopes they will study the situation and take appropriate steps. He proposed installing trees directly in front of Building 4 to further mitigate, but then withdrew his suggestion after staff informed him they were working with the District in making such improvements on school property. Councilmember Harnik thanked Mr. Leo for taking her call at 6:55 a.m., and those that assisted with a tour of the communities, because it was certainly worth her time. Although she didn't like talking about removing green space from a project, she was thinking about reconfiguring some of the buildings. She made some suggestions to the developer that involved moving Building 16 back, and moving Buildings 4 and 5 toward Building 3, creating more open space. Mr. Ceja explained that where she was proposing to place Building 16 was where the main recreational amenities are located such as the pool and barbeque areas, and they are tied to the clubhouse, which is the main focus for the community. Councilmember Kelly asked if it was feasible to switch Buildings 3 and 4 with Building 16. 31 DRAFT PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 26, 2018 Mr. Newell said it was not feasible because architecturally and aesthetically they didn't want to place Buildings 3, 4, and 5 altogether, because they are all three-story buildings. They didn't want to "Manhattanite" the area around the pool, so they separated them. Councilmember Kelly said it was time for Council to appreciate that a great deal of effort has gone into reviving an aesthetically pleasing place to live with attractive amenities, which is going to provide good neighbors for all of the people who have patiently worked to improve this proposal. Mayor Jonathan concurred, stating he personally had to make compromises to get here, and if it wasn't for the concerns of the residents, he would have favored the original proposal. Reason being is that the original proposal provided more open space. What has happened is that the process has taken away amenities and open space from a high -density residential development, which was unfortunate. Therefore, what Councilmember Kelly suggested is something he can live. He stated that the fourth item mentioned, which was to add additionally named insured, is only for the Course of Construction insurance. Councilmember Kelly agreed. Councilmember Harnik said she understood why the Applicant didn't want to cluster all three-story buildings together. She said there was discussion about planting Ficus trees and questioned if that would be all along the entire length of Carter Elementary School. Mr. Ceja replied staff will have to continue talking with Desert Sands on where the landscaping could be placed if it's on their property. They do have portables closer to Hovley Lane that may not allow new landscaping to go in. Councilmember Harnik commented that it was important to place trees near the retention basin/playground creating a buffer/hedge wall of privacy. Councilmember Kelly offered that everyone agreed, but from inspecting it, it really has to be on the school side of the fence. She thanked each and every person who has participated so actively in this process, and she hoped everyone went home this evening feeling they have been part of good government. And as mentioned by the Mayor, residents are teaching this Council about things it needs to revisit and pay attention to. Councilmember Kelly moved to: 1) Waive further reading and adopt Resolution No. 2018 - 18, approving a density bonus, Precise Plan, Conditional Use Permit, and Mitigated Negative Declaration (MND) for the construction of a 384-unit apartment development with a clubhouse, recreational amenities, and roadway improvements at an undeveloped 18-acre parcel Located on the south side of Hovley Lane East and east of Portola Avenue; 2) by Minute Motion, authorize the use of Housing Mitigation fees up to 32 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 26, 2018 DRAFT $180,000 to offset development fees for the units designated for restricted -income households, five of which will be made available to qualified households employed within the jurisdictional boundaries of the City of Palm Desert, with the following clarifications: 1) Building No. 4 is returned to three stories and Building Nos. 8 and 11 are reduced to two stories; 2) Exhibit B will be amended to include a condition for an eight -foot wall on the south border of the project (adjacent to Portola Country Club); 3) residents in adjoining properties who desire to do so, will have the opportunity to be added as additionally insured on the Course of Construction Insurance. Motion was seconded by Nestande. MayorJonathan offered that given all the competing priorities and objectives, this was a reasonable and balance solution. He commended the residents in that they have been reasonable, respectful, and Council appreciates it very much. A shout -out to the developer for listening to the residents and taking action in addressing those concerns, adding the City could use more developers like him, Mayor Jonathan called for the vote and the motion carried by a 5-0 vote (AYES: Harnik, Kelly, Nestande, Weber, and Jonathan; NOES: None). XX. ADJOURNMENT With City Council concurrence, MayorJonathan adjourned the meeting at 7:15 p.m. ATTEST: RACHELLE D. KLASSEN, CITY CLERK CITY OF PALM DESERT, CALIFORNIA SABBY JONATHAN, MAYOR 33