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HomeMy WebLinkAboutPrelim - CC - 06-14-2018DRAFT PRELIMINARY MINUTES Ill A REGULAR PALM DESERT CITY COUNCIL MEETING THURSDAY, JUNE 14, 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 3:03 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 Also Present: Lauri Aylaian, City Manager Robert W. Hargreaves, City Attorney Rachelle D. Klassen, City Clerk Lori Carney, Director of Administrative Services 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) MR. NATHAN A. MILLER, Corona, CA, noted he's been before the City Council previously on a number of occasions, but most recently regarding Senate Bill 54 (SB54). He said this Council has heard from its residents and this issue is not going to go away as they will bring back larger groups. He said SB54 is a bill that refuses to allow law enforcement to coordinate with the Federal Authorities. It's not a PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 14, 2018 DRAFT bill that in the absence of it, you're going to see families ripped from the arms of parents, you're not going to see law enforcement charge into businesses to ask who is there illegally to have them deported back to their country of origin, and they don't stop people on a regular basis and ask them what their immigration status is, because that was already in place throughout the State. He said there is a benefit to a population that is more or less productive in a society in cooperating with law enforcement, making sure the most egregious criminals are brought to justice, stating these are the people he's talking about that are productive by SB54. However, those convicted of murder and rape previously that have been deported, have come back to commit a lesser crime, but our law enforcement is not allowed to coordinate with Federal authorities to get these individuals deported. He said these criminals have already been determined to be a public safety menace to the community, and they are not only preying on U.S. citizens, they are preying on their own community of undocumented who fled MS-13 and cartels. It's a horrible thing that they are doing and SB54 allows them back onto the streets. He urged the City Council to take a leading position on this, stating Council's voice matters. Cities should stand up to these nonsense laws that had no purpose in passing in the first place, and are merely for the rhetorical value of it in a war with the President of the United States, which is a disservice and harmful to its citizens. As leaders for the City of Palm Desert, he asked Council to stand up against SB54. Mayor Jonathan stated that under the Brown Act, the City Council is unable to respond, however, the City has issued a public statement, which the City's Public Information Officer can provide. MR. FELIX MARHUENDA-DONATE, Palm Springs, CA, stated he was a Professor of Mathematics and Computer Information Systems across the street, and he has been there for 13 years. He thanked the City Council for its statement in the newspaper and commended them for their positive comments about unity, because the immigrant community has had a rough ride. In this day and age, it's scary to come out and talk. He lives in Palm Springs where he loves the people there, including his City officials and police, and he's proud to work in Palm Desert because the City Council is promoting unity and is supporting them. IV. ADJOURN TO CLOSED SESSION Request for Closed Session: A. Conference with Legal Counsel regarding existing litigation pursuant to Government Code Section 54956.9(d)(1): 1) Timothy Lewis Whiting v. City of Palm Desert, Palm Desert Housing Authority, et al., U. S. District Court, Central District of California, Civil Action No. 5:17-cv-01395-JGB-(KKx) 2 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 14, 2018 DRAFT 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, Successor Agency, and Housing Authority at 3:10 p.m. He reconvened the meeting at 4:17 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 actions taken. VI. PLEDGE OF ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA - Councilmember Gina Nestande VII. INVOCATION - Councilmember Kathleen Kelly VIII. AWARDS AND PRESENTATIONS A. PRESENTATION OF PROCLAMATION DECLARING MAY 21-27, 2018, AS "NATIONAL PUBLIC WORKS WEEK" IN THE CITY OF PALM DESERT. On behalf of the City Council, Mayor Jonathan presented the proclamation to Interim Director of Public Works Tim Jonasson and public works' staff. Mr. Jonasson thanked the City Council for the recognition, stating public works is a profession you don't know about until something like the water line or sewer line is inoperable. The men and women of public works take care of those things for its residents every day. He congratulated the maintenance staff team who is unable to be here today, as they start and end their day early due to the summer heat, but they do a great job of maintaining the City's facilities. Mayor Jonathan thanked the team for not closing any street to do the slurry seal, always keeping one lane open, and for waiting until the slower part of the year to start on the project, which is appreciated. The public works' staff took a group photo with the Mayor. 3 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 14, 2018 DRAFT B. PRESENTATION OF RECOGNITION FOR THE CITY OF PALM DESERT FINANCE DEPARTMENT'S 21ST CONSECUTIVE YEAR OF BEING AWARDED THE GOVERNMENT FINANCE OFFICERS ASSOCIATION'S CERTIFICATE OF ACHIEVEMENT FOR EXCELLENCE IN FINANCIAL REPORTING. On behalf of the City Council, Mayor Jonathan presented the proclamation to Director of Finance Janet Moore and the finance staff. He said there are cities that wished they could get this award once, and our Finance Department has earned it 21 years in a row, which is truly amazing. The finance staff took a group photo with the Mayor. IX. ORAL COMMUNICATIONS - B MR. DICK FOLKERS, Juniper Street, Palm Desert, appreciated the recognition of the Public Works Department as it has a soft spot in his heart. His concern is the lack of parking at ManorCare Health Services located at 74-350 Country Club Drive. In January he visited a friend who was there, but it took him a while to find a legal parking space. He noted that in 1990 his wife was issued a parking ticket there. He mentioned this issue to a City staff member and was told nothing could be done so he didn't pursue it. Recently, after the January 2018 experience, he learned that the Redevelopment Agency owned the property west of ManorCare and the City was required to sell it because of Governor Brown and State changes, so the City would have to buy that property back from the State if it wanted to do so. He said the parking problem seems to have existed for over two decades and should have been corrected prior to the State of California destroying Redevelopment Programs for cities and counties. Since it appears that the property to the west is private property and could potentially be developed, why not have the City come up with a solution to use part of it for ManorCare parking. Last Tuesday at 1:30 p.m., he counted only seven vacant parking spaces and there were two cars parked on the lawn on the west side near the main entrance. He got the impression the solution is to write tickets or tell the employees to park off -site. He said the City of Palm Desert has been innovative, creative, and has a caring nature, therefore, it should look into this matter. MR. BRAD ANDERSON, Rancho Mirage, CA, approached the City Council to talk about the Coachella Valley Mosquito and Vector Control (CVMVC). He shared he was a past employee of the CVMVC and was terminated earlier this year, mainly because he did his job well. He is currently in the appeal process with them and he's certain he will prevail. One of the reasons he was terminated is because he brought up issues about flies and eye gnats in the Valley, especially in the East Valley. He went on to say his two rescue dogs that have passed away had parasitic worms around the eye membrane, stating they vector from black flies, which is an issue in the East Valley and Los Angeles County, which most people are unaware. This was an issue he brought up to his former employer and the lack of 4 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 14, 2018 DRAFT accountability from the Vector District concerning mosquitoes around his home all the way up to Palm Springs, including the Coachella Valley Cemetery to whom he voiced his concerns as well. The main reason he's here is because next month the Vector District is poised to raise the Benefit Assessment again by roughly 4%. He knew it wasn't necessary, because he had first-hand knowledge they are actually funding a Reserve Fund, which is where millions of dollars are going. He's opposed to it and last year about this time, he brought it up at the Board of Trustees meeting. He said the Vector District posts the notice ten days prior to the vote, and that's all the public notice provided, which is why he is here today to give public notice. MR. VAN TANNER, Palm Desert Charter Middle School (PDCMS) Governing Board President, reported the PDCMS will retain its charter status. The Governing Board voted to submit a petition to Desert Sands Unified School District (DSUSD). The renewal petition reflects the unprecedented amount of collaboration between the Charter School and DSUSD, Desert Sands Teacher's Association (DSTA), California Schools Employee Association (CSEA), and legal counsels representing all. The following three things were accomplished: 1) The DSUSD will be listed as the official employer of record for both the certified and classified position, which was a very important piece; 2) the current charter school Governing Board will be renamed the Governing Council to eliminate confusion with the oversight responsibilities of the DSUSD Board of Education; 3) the Charter Council will continue to manage the school's unique instructional program. Most of the time was spent on discussing the employer and employees' relationship. He thanked the City of Palm Desert under the signature of Mayor Sabby Jonathan for the support the City provided to their group. He said the Board will do whatever is necessary to the benefit of the teachers, staff, and certainly the children that attend the school. He noted that Mr. James Conti and his wife Dr. Natasha Conti moved here two years ago and they searched throughout the Valley to find a school. The reason they moved here was because of the Charter Middle School and their Bridge Program. Mayor Jonathan thanked Mr. Tanner for his involvement and continued support to the community. MS. SUSAN MARIE WEBER, Buttonwood Drive, Palm Desert, as a resident of Palm Desert she requested Council place on the November ballot the "yes or no" issue on the CV Link, because potentially this link will be 30 feet from her back wall. She's prevented from discussing this matter as a City Councilmember, which is why she is here speaking as a resident. Other members of the public have been asking for this issue to be put to a vote in that there have been countless letters from Palm Desert residents to the Editor of the local newspaper asking for the opportunity to vote on the CV Link. For transparency purposes, she asked the City Council the following questions: 1) How much funding has been either received by Coachella Valley Association of Governments (CVAG) or promised as future revenue; 2) how much has been spent to date or promised to be spent for the future of the project; 3) what's the estimated cost to the City of Palm Desert for the maintenance, security, and repairs for the future of the CV Link; 4) which property is being 5 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 14, 2018 DRAFT considered for eminent domain by CVAG for this project. For the City Council to proceed with this issue without letting the residents weigh in is very unfair and she didn't think it was appropriate for Council to vote on behalf of its residents. MR. ORRIN WEINSTEIN, Via Pellestrina, Palm Desert, thanked the City Council for its decision on the Sands Project and its service to the community. He asked what was going on with the landscaping along Portola Avenue in front of the Portola Country Club (PCC). He provided a photograph to the City Clerk to deliver to the City Council. The homeowners of the PCC asked the developer of the Sands Project for an 8-foot high wall and mature trees to block the view between the country club and the Sands Project for their residents. He guessed their HOA decided the residents living along Portola Avenue would not be afforded the same consideration. The new landscaping looks terrible, in fact, many people in his community, the Venezia development, have approached him about the situation. He said there is a chain -link fence now covered with a green screen and small immature Ficus trees in front, which is a substandard appearance for the entire community. It will take years before those trees become an acceptable barrier for these homes. He's sure someone approved it, but it wasn't a great decision. He wanted the City Council to be aware of this, because it doesn't look good. Mayor Jonathan stated he would be calling on those that submitted a speaker card for items under the Consent Calendar as follows: MR. BRAD ANDERSON, Rancho Mirage, CA, called attention to Consent Calendar Item "L" where the City will be considering a contract for the Catch Basin Drain Cleaning. In working with the Vector District in the past, Palm Desert and some of the country clubs have done that work in the past and it makes the Vector Control Technician's job easier. He hoped the other country clubs were aware they could do that work as well. The Vector District is poised to start a process with the new money they will get this year, so they are going to change their whole format on how they operate and Palm Desert will be ahead of the game. MS. CAROLE SCHAUDT, Oak Springs Drive, Palm Desert, a 30-year resident, said she has received no information from Southern California Edison (SCE) on the new Desert Community Energy (DCE) nor the other 1,940 residents in her complex. She is very active and talks to many people and nobody knows anything about it, and in her area many of the homeowners have solar panels. Additionally, many have installed generators because of health issues so they want to make sure the electricity is on. She asked when is the conversation going to start with the public regarding what's happening, adding Palm Desert Greens, Portola Country Club, Via Portofino, and the Sun Crest communities want answers. Mayor Jonathan asked Ms. Schaudt to stick around for Mayor and Councilmember Comments and Updates where she will hear some answers to her questions. 6 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 14, 2018 DRAFT X. MAYOR AND COUNCILMEMBER REPORTS & REMARKS TO THE COMMUNITY A. Councilmember Jan C. Harnik Committee Reports and General Comments. 1. Memorial Dav Events - attended the Cathedral City Forest Lawn and Desert Memorial Park events, which she has attended for the past eight years. What's notable is the lack of student attendance, and there are fewer and fewer war veterans, which is something to consider. In the past she has approached Desert Sands Unified School District (DSUSD) to invite students to these events so they can gain a greater understanding. 2. Coachella Valley Economic Partnership Retreat - attended along with Economic Director Martin Alvarez. There are great things happening to broaden the City's economic base within our communities. 3. Oasis Awards 2018 - announced that Marketing & Tourism Manager Thomas Soule received the Palm Award. He was honored for all the work he's done, stating he has leveraged all he could with all the partners at the Convention & Visitors Bureau (CVB) and has done a great job for the City. Councilmember Kelly added the Palm Award is for partnership and partnering with others to raise awareness on everything that's happening in the Coachella Valley together. He beat out some stiff competition from nominees such as Golden Voice and the Convention Bureau, who are really big players. She expressed her appreciation to Mr. Soule for featuring the City in working with others in partnership and to experience the Coachella Valley as a group of cities in collaboration and not in competition. Mayor Jonathan added that Mr. Soule is a calm and understated individual, so when there is an opportunity to embarrass him, why not. Therefore, he displayed a photograph of Mr. Soule accepting the award, which brings home everything that has already been said. B. Councilmember Kathleen Kelly Committee Reports and General Comments. 1. Sister Cities Gisbourne, New Zealand - reported two teachers from New Zealand are currently visiting to participate in a program at the McCallum Theatre that gives teachers new methods to use in teaching the Arts. The Sister Cities Program is a great way for people sharing of best practices, and it's really thrived here in Palm Desert over the years. It's currently administered by a distinct foundation that promotes international understanding, and if anyone wished to be 7 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 14, 2018 DRAFT involved, please reach out and express your potential interest. She noted Mr. Van Tanner is part of that board and would be happy to assist in signing you up. C. Councilmember Gina Nestande Committee Reports and General Comments. She welcomed everyone in the audience, stating she saw some familiar faces. She noted that over the past three weeks she met with several residents, stating her door is always open to meet with anyone that wished to do so. D. Mavor Pro Tem Susan Marie Weber Meeting Summaries Report for the Period of May 7-24, 2018. With City Council concurrence, the Meeting Summaries Report was received and filed. 1. Citizens on Patrol (COPs) - thanked Management Analyst Johnny Terfehr for the fresh vision he brought to the COPs program, stating they are benefitting from his energy and excitement. E. Mavor Sabbv Jonathan Committee Reports and General Comments. 1. Cove Commission Annual Meeting - explained that Palm Desert is part of the Cove Commission, which is composed of the cities of Rancho Mirage, Palm Desert, and Indian Wells. They work on areas of common interest, and collectively, the Commission put together the Children's Discovery Museum, Joslyn Center, and others, and they cooperate on matters of public safety such as police and fire. At the annual meeting, they honor members of public safety and fire that have stood out in the past year. He won't go through individual names, but it included some of Palm Desert's dedicated and professional individuals, which the City is grateful. 2. Desert Community Energy (DCE) Update - reported the DCE is a Joint Powers Authority that provides customers of Southern California Edison a choice/option on the type of energy that will be delivered to them. It's been a project that's been in the making for 11/2 years, but only recently was it formalized and initiated. Part of that process is to educate the public so every customer of SCE will receive a series of mailings and informative brochures. In fact, he received his in the mail yesterday and others will soon receive it with their bill. The mailer provides telephone numbers and website informaton for follow-up questions, in Spanish as well. Additionally, Coachella Valley Association of Governments (CVAG) is located here in the Civic Center Park area, where you can stop by and ask questions about the 8 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 14, 2018 DRAFT DCE. Fundamentally, it's a choice of whom you receive your power from, in terms of who purchases the power and the mix. Customers now have an opportunity, for the first time, to have greener energy than SCE provides, and the City anticipates an extreme modest savings in the area of 1.5% to 3% savings. He noted Councilmember Kelly also served on the DCE as an alternate. Councilmember Kelly added the key message is that there are telephone numbers and a website to obtain answers to questions. Senior Management Analyst David Hermann announced there will be a story in the next edition of the BrightSide Newsletter on the DCE. It will be the first thing you will see in the July/August Newsletter, stating it will include the telephone numbers and the website information. F. City Council Requests for Action. 1. Assembly Bill 1405 - Advance Digital Network Act - Councilmember Harnik requested adding AB1405 to today's City Council agenda. She was just made aware of this issue yesterday at the Riverside County Transportation Commission meeting, and the League of California Cities is recommending cities oppose the bill and it will be up for a vote on June 19. She said the City can respond prior to June 19 or it will be left out of this decision. Responding to question, she explained AB 1405 provides for advertising displays, as defined, within view of public highways. She said Palm Desert is not in favor of billboards and it comes down to retaining local control. Responding to question, Mr. Aryan confirmed it's not one of the pieces of legislation that has been reviewed by the Legislative Committee. Councilmember Nestande asked for clarification on how these bills get placed on the agenda. Mayor Jonathan explained the City has a legislative committee with the Mayor, Mayor Pro Tem, and staff, and they get updates from all legislation that potentially impacts Palm Desert. Sometimes the League of California Cities weighs in with their recommendation, and that Committee makes its recommendation to the City Council for taking action, which is the City's process. However, this bill is urgent and is coming up for a vote on June 19, stating it was a "gut and amend," which is why it didn't go through the City's Legislative Committee 9 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 14, 2018 DRAFT.. Councilmember Harnik moved to add Request for Consideration of Assembly Bi111405 (Advance Digital Network Act) and place under New Business - Item J. Motion was seconded by Kelly and carried by a 5-0 vote (AYES: Harnik, Kelly, Nestande, Weber, and Jonathan; NOES: None). 2. Affordable Housina In -Lieu Fee Policy - Mayor Jonathan requested a staff report regarding this policy as he's been receiving comments about it. The concern is always if it's effective, efficient, and fair. It's been about four years since that's been reviewed, so it would be appropriate to look at it now. Specifically, how does Palm Desert's policy compare to other cities in the Coachella Valley. Secondly, looking at the fees imposed, and what is its history, and has it been applied consistently. Thirdly, is the policy effective or is it deterring development. Fourth, is there a better procedure, whether that is setting a specific fee or rate. In other words, is Palm Desert's policy the best given those goals and objectives. Fortunately, there is no huge rush for this, because he knew staff was already overloaded. 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 May 14 - June 1, 2018. With City Council concurrence, the Meeting Summaries Report was received and filed. 2. City of Palm Desert Internship Program - she welcomed and recognized the following two new Interns at City Hall: Justus Swaiian attended Palm Desert High School, College of the Desert, University of Southern California, and next year he will be attending University of San Diego to study law. He will be an intern in the Community Development Department this summer. Councilmember Harnik noted that in Mr. Swajian's years in school, Kindergarten through 12th grade, he never missed a single day of school. 10 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 14, 2018 B. City Attorney None C. City Clerk DRAFT Miguel Navarette attended Coachella Valley High School, and is the son of one of the City's employees. He is in his second year at Cal State University, San Bernardino - Palm Desert Campus studying Business Administration. He will be an intern in the Finance Department. 1. Consideration of the Designation of Voting Delegates and Alternates to the League of California Cities Annual Conference to Be Held September 12-14, 2018, in Long Beach. Mayor Jonathan noted there are four Councilmembers attending the conference, questioning if it was traditional for the Mayor and Mayor Pro Tem to act as the designees. Ms. Klassen replied it has in the past, or it was dependent upon who was actually attending. Councilmember Harnik stated that in the past years she participated in the League of California Cities on the Board, so whoever is very engaged and knowledgeable would be a good candidate. Councilmember Kelly said she had the privilege of being the Alternate last year, so if there is someone else interested in being the voting delegate they can have that spot. Mayor Pro Tem Weber agreed to serve as the Delegate. Councilember Harnik moved to appointed Susan Marie Weber as the City of Palm Desert Voting Delegate and Kathleen Kelly as the Alternate to the League's Annual Conference in September 2018, and authorize City Clerk to provide the required notice thereof. Motion was seconded by Nestande and carried by a 5-0 vote (AYES: Harnik, Kelly, Nestande, Weber, and Jonathan; NOES: None). D. Public Safety 1. Fire Department None 11 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 14, 2018 2. Police Department DRAFT Mayor Jonathan commented that Lt. Martello has been everywhere connecting with the residents, and he appreciated it. XII. CONSENT CALENDAR A. MINUTES of the Regular City Council Meeting of May 24, 2018. Rec: Continue to the next meeting. B. CLAIMS AND DEMANDS AGAINST THE CITY TREASURY - Warrants Dated 5/4/2018, 5/7/2018, 5/8/2018, 5/11/2018 - 2, 5/18/2018, 5/25/2018, and 6/1/2018. Rec: Approve as presented. C. CLAIMS AND DEMANDS AGAINST THE CITY/HOUSING TREASURIES - Warrants Dated 5/18/2018 and 5/25/2018 (Joint Consideration with the Palm Desert Housing Authority). Rec: Approve as presented. D. AUDIT. INVESTMENT & FINANCE COMMITTEE Minutes for the Meeting of March 27, 2018. Rec: Receive and file. E. COMPLIANCE ANALYSIS AND INVESTMENT REPORTS for the Months of March 2018 and April 2018 (Joint Consideration with the Successor Agency to the Palm Desert Redevelopment Agency). Rec: Receive and file. F. RESOLUTION NO. 2018 - 32 - 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 - Exhibit "A" - Documents from 1984 - 2007. Rec: Waive further reading and adopt. 12 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 14, 2018 DRAFT G. REQUEST FOR AUTHORIZATION to Review the City's Conflict of Interest Code, As Required by the Political Reform Act of 1974. Rec: By Minute Motion, authorize staff to make a formal review of the City's Conflict of Interest Code, pursuant to the Political Reform Act, and if necessary at the appropriate time thereafter, prepare a resolution to be adopted by the City Council to effect the required amendments. H. REQUEST FOR AUTHORIZATION to Streamline the Use of Vendors for the Public Works Department by Granting Exception to Bidding Requirements and Approving the Original Equipment Manufacturer (OEM) Vendor List and the Maintenance Services Division's Various Vendors and Qualified Service Providers Lists for Fiscal Year 2018-2019. Rec: By Minute Motion: 1) Grant an exception to the bidding requirements, as provided for by Chapter 3.30 of the Palm Desert Municipal Code, not to exceed $50,000 for any one vendor during FY 2018-2019, as further provided by Chapter 3.30 of the Palm Desert Municipal Code; 2) approve the OEM Vendor List, the Building and Street Maintenance Divisions' Various Vendors and Qualified Service Providers List, and the Landscape Services Division's Vendor and Service Providers List for FY 2018-2019. I. REQUEST FOR APPROVAL of the Purchase of Gas and Diesel Fuel for the City's Fleet and Equipment and for Desert Willow Golf Resort Maintenance Vehicles and Equipment from Beck Oil, Inc., for Fiscal Year 2018-2019 in an Amount Not to Exceed $220,000. Rec: By Minute Motion, approve the purchase of gas and diesel fuel from Beck Oil, Inc., for FY 2018-2019 for: 1) City's fleet and equipment in an amount not to exceed $120,000; 2) Desert Willow Golf Resort Maintenance Facility in an amount not to exceed $100,000 — funds are available in General Fund Account Nos. 1104331-4217000 - Auto Fleet -Supply Automotive Gas and 5204195-4803100 - Desert Willow Maintenance Facility. J. REQUEST FOR AUTHORIZATION to Streamline the Use of Vendors for the Desert Willow Golf Resort by Granting Exception to the Bidding Requirements and Approving the Operating Expense Vendors List for Fiscal Year 2018-2019. Rec: By Minute Motion: 1) Grant an exception to bidding requirements, as provided for by Section 3.30.160(K) of the Palm Desert Municipal Code, not to exceed $50,000 for any one vendor during FY 2018-2019; 2) approve the Desert Willow Golf Resort's Operating Expense Vendors List for FY 2018-2019. 13 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 14, 2018 DRAFT K. REQUEST FOR AUTHORIZATION to Purchase Golf Course Irrigation Supplies from High Tech Irrigation, Inc., for the Desert Willow Golf Resort During Fiscal Year 2018-2019 in an Amount Not to Exceed $80,000. Rec: By Minute Motion: 1) Grant an exception to bidding requirements, as provided for by Section 3.30.160(J) of the Palm Desert Municipal Code for FY 2018-2019; 2) authorize purchase of Rain Bird Golf Course Irrigation Supplies from High Tech Irrigation, Inc., Indio, California, during FY 2018-2019 in an amount not to exceed $80,000 — contingent upon approval of the City's Annual 2018-2019 Budget, funds will be available in Course and Grounds Expenses Account, No. 5204195-4803100. L. REQUEST FOR AWARD OF CONTRACT for the 2018 Catch Basin and Drain Cleaning Project to United Storm Water, Inc., in the Amount of $89,200 (Contract No. C35780, Project No. 501-18). Rec: By Minute Motion, award/authorize: 1) Contract for the 2018 Catch Basin and Drain Cleaning Project to United Storm Water, Inc., Industry, California, in the amount of $89,200 for the base bid items; 2) Director of Finance to set aside a 10% contingency for the contract in the amount of $8,920; 3) City Manager to execute said agreement — funding is available from Storm Drain Maintenance Reserve Account No. 4204314-4332000 and the Benefit Assessment District Account for the Section 29 Retention Basin, No. 2894374-4332100. M. REQUEST FOR AWARD OF CONTRACT for Desert Willow Golf Resort Pump Panels Project to Huntington Beach Electric in the Amount of $149,964 (Contract No. C37000, Project No. 861-18). Rec: By Minute Motion, award/authorize: 1) Contract for Desert Willow Pump Panels Project to Huntington Beach Electric, Huntington Beach, California, in the amount of $149,964; 2) Finance Director to set aside a 10% contingency for the contract in the amount of $14,996.40; 3) City Manager to execute said contract — funds are available in Account No. 4414195-4809200 - Desert Willow Golf Capital. 14 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 14, 2018 DRAFT N. REQUEST FOR AUTHORIZATION to Utilize Willdan for Swing Shift Code Compliance Staffing Services for Fiscal Year 2018-2019 in an Amount Not to Exceed $125,000. Rec: By Minute Motion, authorize: 1) Willdan for contracted swing shift Code Compliance staffing services for FY 2018-2019 in an amount not to exceed $125,000; 2) City Manager to execute any agreement necessary to effectuate the above action — if approved, funds will be available in the proposed FY 2018-2019 Budget. O. REQUEST FOR AWARD OF CONTRACT for Conversion of Microfiche Building Department Records to ViaTRON Systems, Inc., in an Amount Not to Exceed $58,916 (Contract No. C37120). Rec: By Minute Motion, award/authorize: 1) Contract for Conversion of Microfiche Building Department Records to ViaTRON Systems, Inc., Los Angeles, California, in an amount not to exceed $58,916; 2) Mayor to execute said contract — funds are available in General Fund Account No. 1104420-4361000, as set forth in the FY 2017-2018 and FY 2018-2019 Budgets (this is a two-phase microfiche conversion project). P. REQUEST FOR EXTENSION of Professional Service Agreements with Scott Fazekas & Associates, Willdan Engineering, and Interwest Consulting Group for Building Plan Review Services — Fiscal Year 2018-2019. Rec: By Minute Motion, approve extension of Professional Service Agreements for Building Plan Review Services, FY 2018-2019 with Scott Fazekas & Associates (Contract No. C36191A), Willdan Engineering (Contract No. C36191 B), and Interwest Consulting Group (Contract No. C36191C) in a total amount not to exceed $100,000 — funds will be available in FY 2018-2019 Budget Account No. 1104420-4301000. Q. REQUEST FOR AUTHORIZATION to Release Bond for the Millennium Project Rough Grading in the Amount of $444,503, Case No. PM 36792 (Palm Desert University Gateway, LLC, Applicant). Rec: By Minute Motion, authorize release of the bond for Millennium Project rough grading in the amount of $444,503. 15 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 14, 2018 DRAFT R. REQUEST FOR APPROVAL of Partial Improvements to Dinah Shore Drive and Portola Avenue, Releasing Portion of Securityforthe Millennium Project, and the Subdivision Improvement Agreement Relating Thereto, Case No. PM 36792 (Palm Desert University Gateway, LLC, Applicant). Rec: By Minute Motion: 1) Accept partial improvements to Dinah Shore Drive and Portola Avenue; 2) release a portion of security for the Millennium Project in the amount of $841,816 for Faithful Performance and $420,908 for Labor and Materials; 3) approve the Subdivision Improvement Agreement relating thereto. S. REQUEST FOR APPROVAL of Martha's Village & Kitchen's 2018 Thanksgiving Day 5K (Martha's Village & Kitchen, Applicant). Rec: By Minute Motion, approve: 1) Martha's Village & Kitchen's Thanksgiving Day 5K scheduled for Thursday, November 22, 2018; 2) road closures on El Paseo between Highway 74 and Portola Avenue for the event; 3) consumption of alcoholic beverages on City - owned property, pursuant to Palm Desert Municipal Code Section 9.58.040. T. REQUEST FOR APPROVAL of Palm Desert Charter Middle School's 2019 Panther 5K (Palm Desert Charter Middle School, Applicant). Rec: By Minute Motion, approve: 1) Palm Desert Charter Middle School's Panther 5K scheduled for Sunday, January 20, 2019; 2) road closures on El Paseo between Highway 74 and Portola Avenue for the event. U. CONSIDERATION of a Letter of Support for SB 930 (Hertzberg) - Financial Institutions - Cannabis. Rec: By Minute Motion, approve a letter of support for SB 930 (Hertzberg). V. CONSIDERATION of a Letter of Opposition for AB 1912 (Rodriguez) - Public Employees' Retirement - Joint Powers Agreements - Liability. Rec: By Minute Motion, approve a letter of opposition for AB 1912 (Rodriguez). 16 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 14, 2018 DRAFT W. INFORMATIONAL REPORT Related to the Draft Desert Community Energy Operating Budget. Rec: By Minute Motion, receive and file the report. Upon motion by Harnik, second by Weber, and 5-0 vote of the City Council (AYES: Harnik, Kelly, Nestande, Weber, and Jonathan; NOES: None), the Consent Calendar was approved as presented. XIII. CONSENT ITEMS HELD OVER None XIV. RESOLUTIONS A. RESOLUTION NO. 2018 - 33 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, MODIFYING THE RESIDENT CARD CRITERIA AND GOLF RATES AT DESERT WILLOW GOLF RESORT. Mr. Alvarez stated the proposed Resolution is a followup to what was discussed at the May 24, 2018, City Council Study Session, at which time staff considered recommendations made by the Desert Willow Resident Advisory Task Force. As part of his presentation he will highlight the items discussed, the Task Force recommendations covering the Resident Card criteria, summer rates, resident access, and the Dynamic Pricing Model (DPM). The purpose of the Task Force Committee was to address concerns that had been raised by a group of resident golfers and other users at Desert Willow. In particular, peak season access, resident rates, and resident card criteria. In discussing all these items with the Task Force Committee, staff also took a comprehensive look at the benefits currently being offered at Desert Willow. One of the main goals was to review the benefits as they currently exist and provide opportunities to enhance, protect, but also keep in mind that the ultimate goal was for Desert Willow to operate at a revenue neutral with no impact to the City's General Fund. The composition of the Task Force included two (2) residents that are golfers, two (2) residents that are non -golfers, one (1) representative from the golf industry, one (1) representative from the hospitality industry, and one (1) Councilmember. The Task Force Committee was approved by the City Council on June 22, 2017, which is when members were appointed. Over the last year, the Task Force held four meetings with the last one in March 2018, and a Study Session in May 24, 2018. One of the top three items addressed by the Committee was the Desert Willow Resident Card criteria. He displayed the existing policy that has been in place since the opening of Desert Willow in 1996/1997, by which the criteria was set by the City Council at that time; it has not been modified since the 1990's. The current guidelines allow a 17 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 14, 2018 DRAFT resident to access the benefits at Desert Willow by providing a California Driver's License or a California Identification Card issued by the Department of Motor Vehicles (DMV) with a Palm Desert address as their residence, in conjunction with proof of a utility bill (gas, water, or electric) with the same matching address along with their name. Over the course of decades now, staff occasionally runs into issues where residents are not able to access the card by virtue of either having a second residence here and/or living out of the State or city. They are in Palm Desert temporarily or during a large part of the season. Staff has also encountered issues with those folks that come from out of the country, typically the Canadian market and such. From 2009 to 2017, on average the City has 3,500 resident cards issued, and the rounds played by residents have averaged 20% to 25% of the total rounds, which is about 80,000 between both courses. The recommendation of the Task Force was to provide two options to meet the eligibility criteria. The first option matches the current criteria as already mentioned, and the second option would allow for property owners to have access to the Desert Willow Resident Card, including those that have a long-term lease and/or a minimum of one-year in length leases. The modification opens it up to allow for a government issued identification card such as a passport, driver's license, or a military identification card. The utility bill remains part of the criteria to prove the location of the resident and the matching address on that utility bill. The second item the Committee was to review was the resident golf rate during the summer. The rates during the summer go down, because demand decreases as the weather temperature increases. Unanimously, the Committee recommended a summer resident golf rate that would run from June 1 to September 30, at $35 per round during peak, which is the early part of the morning. Then $25 per round during the twilight, which is typically after 12:00 noon or in the evening. Also as a recommendation, there is a provision to allow residents up to three guests that would be provided a discount rate of $45 for peak and $35 during non -peak periods. There wouldn't be any booking window or loyalty card to access this benefit. Councilmember Harnik inquired about the booking window. Mr. Alvarez explained that a resident can book 60 or 30 days out, stating that typically when you are in that window of summer, the demand is low so there is quite a bit of availability. Mayor Jonathan pointed out that 60 days out provides the maximum market rates and residents are currently getting three days. Mr. Alvarez stated the booking window is 72 hours for residents, which is three days. A nonresident booking window at market rates can book up to 60 days out, and then of course, any resident can book up to that 60-day window if they pay the market rates as well throughout the year. The major 18 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 14, 2018 DRAFT item that was discussed was access. He displayed the Dynamic Pricing Model (DPM) - Exhibit B, which would eliminate the $50 booking rate, but would also have a fluctuating price structure based on a percentage discount on the actual market rate. As an example he noted that during the Peak Season Period of January 22 - April 8, you can get a 30% discount as shown in the far right columns. The minimum discount price would be $87 and the maximum would be $130. The way this works is the further out you book, similar to airline or hotel industries, you are afforded the ability to book at a lower rate, which is an example of obtaining that $87 rate. As you get closer to the day you plan to play, demand is going to be increased, which is where you will see a rise in the rate price. In terms of the other periods of the year, there is a 40% discount during the Spring, and during the Summer Periods you can obtain a 60% discount of the market rate, etc. The rates he just mentioned allow greater access at a range of pricing that is fluctuating based on market demand. The Committee voted for approval on a 4-2 vote with one member absent. The two members that voted against were the resident golfers that were on the Committee. Staff has received a lot of interest via comments, letters, and emails concerning the Dynamic Pricing Model, and this evening is another opportunity to hear from the residents and receive input. Before concluding his presentation he called attention to the Summer Rates, because there was a recommendation to lower the rates and allow further access during the summer. In staff's opinion, the resident rates are well accommodated for in the summer DPM at the 60% discount. Although the Committee has recommended those rates to be implemented independently, staff felt the resident rates were accommodated in the DPM for the summer periods. Councilmember Nestande said it was her understanding that rarely did anyone ever pay the published $185 rate, and the actual rate is $136 during peak season, and wholesalers are paying a lot less. MR. DEREK WHITE, General Manager at Desert Willow, explained that the deal with DPM is that $185 is a reach price, because it's a revenue management concept. Therefore, when the tee sheet is completely empty, they will start with the minimum rate at any particular range. As the tee sheet fills up, the closer you get to the reach price of $185. However, very few rounds ever get advertised at $185, because you have to be almost completely maxed out to even get to that level. When they do approach that level, they are getting closer to the three-day booking window and that $185 advertised round on the website will be taken up at the resident rate or other market segments. Councilmember Nestande said she was given financial data that seemed to indicate otherwise, and she met with financial staff members who helped her review the numbers. In crunching the numbers, the true rates that people 19 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 14, 2018 DRAFT are paying during peak season between 8:00 a.m. and 12:00 noon is $136.00 during January through April; the sweet spot. MR. WHITE replied that the other beauty of DPM is that it's changing month by month and hour by hour. So when you look at static monthly statistics or static statistics over multiple months, it doesn't really pan out to what the actual average might be in a specific time frame. It's one of the things that gets missed in the translation with the DPM. He's seen it in some of the emails where a number is used that's been an average over ten months or an average on multiple months, which isn't a true measure for obtaining an average. Councilmember Nestande provided the data she had from January to April to Mr. White to review. Mayor Jonathan asked if the rate on a particular day and time is $140, under the DPM, will the resident pay 70% of that rate. Further, whatever the rate happens to be, whether it's $185 or $140 on a particular day, the residents during peak season will get 30% off that prevailing market. MR. WHITE answered yes, stating that's the overall concept, because it's looking to find the best market rate it can sell during a time frame and then residents would get 30% off that price. The rates displayed are not set, they are samples of what Desert Willow has historically placed and what the ranges have been. He has to look at what the market is yielding, which is the beauty of DPM, stating it's what makes them flexible during season. If the economy is not quite booming, then the rate doesn't grow and it stays where it needs to be so that it can be attractive to customers. He realizes there are a lot of numbers on the chart, but the real concept is that they will afford the residents a 30% discount in that particular season and then they have unlimited access to the tee sheet and/or the same access to all of the markets. Mayor Jonathan pointed out that if anyone books sooner rather than later, instead of waiting until three days prior, typically the price will be lower. MR. WHITE replied that was correct, because they wouldn't have to book as many tee times at that point. Councilmember Nestande said the characteristics of the resident golfer, in general, doesn't book two months out. MR. WHITE agreed, stating only 50% between October and April is booked by that three-day cutoff, so during season it's probably brushed out to where a much larger of the tee sheet is booked outside of the three-day period. He has statistics that show people book up to seven days out. 20 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 14, 2018 DRAFT Councilmember Nestande said the concern is that resident golfers will not be paying the $130 rate even seven days out, and they will go elsewhere. Councilmember Kelly asked if staff made any effort to try to estimate how many golfers could potentially be added with the proposed expansion on how the City defines a resident. Mr. Alvarez replied staff has been unsuccessful in obtaining hard data to analyze and estimate what impact it would have to open up the resident card to property owners that perhaps have second homes in Palm Desert. He noted U.S. Homeland Security has changed, making it harder for Canadians and others out of the country to get the Desert Willow Resident Card because of their residency status. However, in 2009 the City had 3,700 cards issued, but there has been a dip to as low as 3,000, so there is a fluctuation there. Therefore, staff couldn't say for sure that it would gain another 500 or 1,000. MR. WHITE responding to Councilmember Nestande's data, he said her data is based on a four-month's average and it takes into consideration sunrise time, prime time, and twilight time, which is factored into the rack rate. The data is accurate, and he didn't know that you can compare it to the $130 rate. Mayor Pro Tem Weber asked the City Attorney if she could make a motion to split the proposed Resolution into A and B options, because staff split it into Exhibit A and Exhibit B, stating Council can then vote on these two items separately and discuss them separately; the Resident Card versus the Dynamic Pricing Model. She asked if it would be appropriate to make a motion at this time or did Council need to hear the speakers first. Mr. Hargreaves explained he understood where Mayor Pro Tem Weber wanted to go with this, and it would be up to the City Council how it wanted to deal with the Resolution. However, if the City Council is clear about what their action is, in terms of the different options and resolutions, staff can generate resolutions later that reflect Council's desire, so that it wouldn't have to be brought back. Mayor Jonathan interjected, stating that from a point of order, he wasn't comfortable having a motion before it had opportunity to ask questions of staff and receive comments from the public. He questioned if it was even appropriate or legal to even do that at this point. Mr. Hargreaves said Mayor Jonathan's point is well taken and it made more sense to wait until Council heard all the speakers. In any case, this isn't a final action, because this is a procedural way of posturing it. It's helpful to 21 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 14, 2018 DRAFT have the issue on the table now so people can be processing the information. Mayor Pro Tem Weber clarified the motion isn't to vote for it, but to split it into two resolutions. Mr. Hargreaves recommended waiting, because people understand the issue now. Councilmember Harnik added she understood Mayor Pro Tem Weber's issue, but in the end the motion could reflect two different thoughts. Rather than bifurcating the Resolution at this time, she preferred to hear from the speakers first. Mayor Jonathan stated that originally when Desert Willow started in 1996, the resident rate was $45, and at one point, the Task Force was asked what that rate would be today if there were annual inflation adjustments. Mr. Alvarez displayed a chart that reflected the CPI (Consumer Price Index) over the years and calculated that the resident rate today would be $75, and it's currently $50. Responding to question about the discount received by residents based on the 15,000 rounds, Mr. White said it would be about $80,000 to $90,000 annually. To calculate the average per round savings, he took the average from all the market categories for each of the particular months and then took the number of resident rounds played. At that point, he assumed full assumption of those rounds, and it can be debated on whether that was at 80% or 50%, etc., and calculated the average rate of all the other markets, including the various time segments. Therefore, the average rate per month of all the other segments balanced against the resident rate, he came up with an opportunity cost of $776,000 total for the 12 months, if he assumed all those rounds at the other market average rates. Mayor Jonathan said he wanted to see what the total discount provided to residents was annually, and what he heard is that its roughly under $800,000 per year. MR. WHITE concurred, adding that it included negative numbers from the summer, because summer rates are lower than the resident rate, which was all factored in his analysis. Mayor Jonathan called attention to Exhibit B, because currently during peak periods residents pay $50, and if he's understanding the chart correctly, potentially residents can pay $46 if they are willing to play during the peak season but after 12:30 noon. 22 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 14, 2018 MR. WHITE said that was correct. DRAFT Mayor Jonathan noted that during the summer period, residents can receive 60% off, which can be $40 to $50 during the sunset time, and/or as little as $16 a round under the DPM. MR. WHITE replied that if residents are willing to play in the heat, the answer was yes. Councilmember Nestande understood that golfers that start at 2:30 p.m. don't have enough time to finish the 18-holes, so playing 11 holes is not the passion or the way the game is played. Mayor Jonathan invited public testimony at this time. MR. TODD LATER, Covington Drive, Palm Desert, opposed the DPM, because it would not be competitive in the immediate market, noting the City's of Indian Wells and Rancho Mirage offer resident rates in the general $50 range during high season, including access to their fitness center services and up to 20% discounts at restaurants. As a realtor, he promotes the Desert Willow Resident Card as one of the City's overall perks, so retaining the current $50 during prime times is a fundamental factor in keeping Desert Willow competitive as it impacts volume of resident golfers and residential home sales. MR. STEVE COULTER, Via Venezia, Palm Desert, expressed his concerns about the rates themselves and the flaws in the DAM, mainly having to book 60-days out and the difficulty in getting the bottom rates during the peak season. Therefore, the minimum and maximum rates were not valuable to him, because at most he books 7-days out, and he won't book unless he gets 16-holes of golf. He believed an excessive burden is being placed on the resident, stating the DAM is geared more to resort people and he's here year-round. He urged the separation of the two items and votes on the resident card portion, but do more research and get more input before making a decision on the DAM, because it will dramatically impact the residential play. MR. ELLIS FLUET, Calle La Brisas, Palm Desert, believed the DPM would price him out and he won't be able to play, because he's on a fixed income. Based on the model, he won't be able to get in, stating it's probably geared toward those that can pay the big bucks. MR. DON SUMMERS, Carla Court, Palm Desert, asked the City Council to consider the promises made when Council's predecessors originally agreed to develop Desert Willow using redevelopment dollars. In getting support from its residents, they promised low-cost access to golf at Desert Willow. 23 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 14, 2018 DRAFT The DPM will price him out and it will be the end of the Desert Willow Golf Resident Program. As a realtor he sells to golfers, mainly because of the Resident Card Program, and if destroyed, it will affect real estate prices compared to the other cities in the Desert. He said Desert Willow should not be considered as a profit center, stating it attracts people from all over the whole to shop, dine, and lodge, generating sales tax and Transient Occupancy Tax (T.O.T.). He added Desert Willow is a first-class golf resort and it should be maintained, but he didn't see anywhere that the Task Force challenged Kemper Sports to cut expenses. He urged Council to vote against the DPM. MR. DENNIS REALEY, Covington Drive, Palm Desert, urged Council to reject Kemper Sport's DPM. The plan is ill advice and carries a huge financial risk to the City and Desert Willow. He said the City must maintain a competitive resident card to attract new residents and business to the City, and this DPM will end the program. The proposed $130 rate will end resident participation and golfers will go elsewhere, stating the exodus has already begun. The average golfer will pay $130 for prime time at Desert Willow compare to the current $50 rate paid today by residents. The twilight rates are not a factor, because they account for less than 10%, and the Platinum card holder's play is not included in the current proposal. He questioned how Council can vote on a total revenue package for next year when 33% of the rounds and revenue are not being considered. MR. LOUIS GONZALES, Mariposa, Palm Desert, asked the Council to vote against the DPM, stating it will turn everyone off from playing at Desert Willow. He noted he was a member of the Task Force and a lot of the items discussed were not the main issues, and it conceded a lot on the Resident Card, which was good because it provided increase access to residents. However, pricing it up to $130 a round during season will make him and many other golfers go elsewhere. MR. FRED JOHNS, Sarazen Way, Palm Desert, stated the presentation and data can be presented in so many ways, and it's very confusing. Nobody really understands what they will pay and when they will pay it. The data was like a cat catching its tail where you will never be able to catch a tee time. The data was all about rack rates, and no one will ever know what the market rate is because it changes daily and hourly. Another issue is the CPI, which is a macro index used nationwide for general items, which has local inflationary measures. He looked at the local inflationary numbers and it's 24% compared to the 78% talked about, so raising the rate would be $58.50 today, not the $78 quoted. He disagreed that Desert Willow was needed to attract tourists and golfers, which in turn brings T.O.T revenue to the City, because there are 120 other golf courses in the Valley. The unique and real attraction for Desert Willow are the buyer of real estate, because of 24 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 14, 2018 DRAFT reasonable fees and access to the golf course, but with the DPM, it will no longer be the case or the City of choice for golfers. MR. DAVID NEWMAN, Via Venecia, Palm Desert, strongly opposed the DPM. In addition to the Resident Card, he has purchased the Platinum and Champion card, participates at golf charity events, clinics, and has taken private lessons at Desert Willow. Residents want more than a 3-day window offered in season at the $50 rate, but $130 for prime time is unacceptable and unreasonable. He said if the window could be extended to 7 or 10 days during season, residents would play more than the reported 7,500 rounds in season to support Desert Willow. He said this Council has shown to be sensitive to issues of affordable housing and density bonuses, so surely it can find compassion for seniors and retired residents. He heard Desert Willow provided 30,000 comp rounds, and if that is true, he couldn't phantom justification for it and encouraged Council to spend time and effort to replace Kemper Sports, which should be considered even if the rumor is not true. In Resolution No. 2018 - 33 dated June 8, 2018, on page 6 the specific wording states. "Whereas the City of Palm Desert has certain obligations in accordance with management to establish set green fees and benefits to provide for reasonable rates and access to the golf courses for its residents," and the present proposal does not meet those written representations. MR. STEVE GOODFRIEND, Carrot Court, Palm Desert, recalled that what drove this conversation was that some golfer complained about lack of access. Therefore, he will assume there is no revenue issue at Desert Willow and the goal was to address those golfers who claimed they had trouble with access, which he doubted and none of them have spoken here this evening. Secondly, there were two golfers on the Task Force that voted no on the DPM. He asked Council to leave in place the current $50 charge, because if some golfers are motivated to pay more in exchange for access, it's not fair for those residents not willing to make that exchange. Desert Willow is a town facility and it has an obligation to serve its residents, but he understands it's a business and it must be run as such. Since there is no issue with Desert Willow's current business liability, the next consideration must be the residents of Palm Desert. By eliminating the $50 fee, the City creates a problem that didn't previously exist, placing the burden on its residents. He urged the City Council to vote against the DPM. Councilmember Harnik asked what would happen to the Platinum Members if the DPM is approved. MR. WHITE explained that Platinum and wholesalers would have to fit within that 30% discount and 100% within that market price. They are guaranteeing that residents will always have the best rate at the time, so the Platinum card would fit somewhere between 30% and 0% whatever the rack rates are at the time. One of the main benefits would be to both nonresident 25 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 14, 2018 DRAFT and residents, is that it's a vehicle to offer some guest -rate access, including other discounts that go with that program. Councilmember Kelly said she understood a new Platinum Card Member would have a rate higher than the Resident Rate in DPM. MR. WHITE answered yes. Councilmember Harnik asked about the number of rounds generated through the Westin and Embarc. MR. WHITE replied he didn't have the information, but believed that out of the 12,000 rounds, it would be 6,000 rounds with Westin and Embarc combined, as they are the on -property partners. He said they have extended a similar on -property partnership to the Ritz -Carlton. Councilmember Nestande was told that one wholesaler this year put 4,500 rounds and the average price was $73 a round during peak season/peak time. MR. WHITE said he didn't believe that to be the case, specifically, at that line item. When he looks at the twelve -months data, the wholesale category during the months of January, the average rate was $97, in February it was $106, and March was $103, so it's unlikely that a large wholesaler of that caliber and size would get that number significantly lower. He said the $70 number mentioned could have been an average for the whole year. Mayor Jonathan called a recess at 6:17 p.m. He resumed the meeting at 6:22 p.m. MR. WHITE confirmed that the combined rounds for Westin and Starwood was 6,000, and the annual golf rate of $73 provided by Councilmember Nestande was based on an annual average, but again it does vary by time frame depending on what they're selling. Councilmember Nestande stated the sequence of events going back about a year, she was somewhat new on the City Council and was getting to meet residents and groups. One of the groups was the resident golfers who supported her into forming a task force to help them get more access to golf, which ultimately happened last June. However, it seems every golfer she talks to now doesn't like the decision of the Task Force, and they are not happy with this Dynamic Pricing Model. She's hoping Council can take another look and take another stab, if not this evening, postpone to get more discussion going on this DPM and the $130 potential rate, and consider keeping the $50 Resident Card and/or raising it to $60. Additionally, 26 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 14, 2018 DRAFT reserving 10% of resident access at a certain price that is affordable to resident golfers. Mayor Pro Tem Weber said that's why she wanted to separate the resolution into two motions to at least vote on the resident card and then do something different about the DPM. Councilmember Nestande is suggesting discussing this further, and the whole purpose was to discuss access and now we have a price increase, so she's baffled how it reached this point. Mayor Jonathan said he could address that comment, because he's the City's representative on the Task Force. The process of taking a new look at the pricing structure for residents started with a request for greater access. However, the Task Force quickly realized that the more access you give to residents, more rounds would be played at the discounted price, and therefore pricing became part of the discussion. For that reason, the two issues are connected and impact each other, and to consider one part independently from the other is inappropriate. He said the two issues of price and access affect each other, the greater the access the more it impacts the bottom line, and the main objective continues to be to not use General Fund monies to subsidize the course. Therefore, you have to look at the pricing in conjunction and with the access. He's not saying what the results should be, but the two are joined at the hip. Councilmember Kelly stated this was a helpful and tremendous process, because it helped many realize that maybe the status quo is okay. She heard several speakers asking to keep it the same, and sometimes you have to have an alternative before appreciating the benefits of what you currently have, which appears to be working well. If residents want the opportunity to play on a regular basis with a group of friends or make new friends, the Champion Club accomplishes that goal. If residents want to be able to entertain guests, they can use the Platinum Card for that purpose at a reduced and attainable rate. And as stated, when you just use the website, more often than not, you can find a useful time. She totally gets the elegance of DPM from a Certified Public Accountant perspective about doing something that would allow everything to be settled, but it's universally unpopular, and she understands why. Everyone is told to sit down and make budgets, and golfers want to sit down at the beginning of the season and forecast what expenses will be and do some comparison shopping. However, people need predictability and the DPM doesn't afford that for residents or the real estate agents the convenience to describe in a simple way the benefits of living in Palm Desert. She couldn't support the DPM or expanding the definition of a resident. The City has no idea how much added demand, or the cost it will take to go with the proposed change on the definition of the resident. Antidotally, it's her perception, it could be significant because the vast majority in her own neighborhood are second -home owners who have made a conscious decision to preserve their 27 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 14, 2018 DRAFT original home in the northwest as their primary resident where they vote and keep it as their primary for income tax purposes. They haven't sought a Desert Willow Resident Card, because they understand it was intended for folks who primarily are domiciles in Palm Desert. Therefore, it's her perception this could substantially expand a bowl of people seeking the Desert Willow Resident Card, which will only put a great deal more pressure on access. She reiterated it was a fruitful exercise, but the City should keep things the same. Councilmember Harnik agreed the process was very valuable, in fact, she saw this as "Be careful what you wish for," situation. She understood how the DPM and access connect and balance each other, so she was opposed to opening up the Resident Card to a greater expanse of the population. In fact, many work at not being residents of Palm Desert to avoid paying taxes here. There is great incongruity for Council to be expanding who will receive the Resident Card and expanding access to the course, because it will create conflict. She saw that speakers were emotionally charged about this issue, both negatively and positively. One speaker said people will go elsewhere and there will be a mass exodus, which she doubted, but understood it was an emotional statement. When Desert Willow was first introduced to the residents, the Resident Card was $45, which is a special amenity. She recalled discussions about raising it to $47 and there was an outcry, and that was just a couple of years ago. Also, the City doesn't use the National CPI, it uses the Riverside County CPI. Today that rate is at $50, and if Council reviews the rate, it's likely that it will go up given the rise in cost for food, transportation, gas, water, grass seed, and minimum wages, which are projected to escalate. Since the inception, it wasn't about offering competitive prices, it was about offering an amenity to Palm Desert residents. However, it was also meant to be an economic generator to attract timeshares such as the Westin and Embarc, which generate 6,000 rounds of golf annually, and that's a big deal, because that population generates T.O.T., dines and shops in Palm Desert. In fact, the City is looking at the remaining parcels hoping to create an economic generator type of situation there as well. Another thing, Kemper Sports Management has worked hard to reduce costs, so to insinuate otherwise is inaccurate. She said Council has gone through the Investment and Audit Committee meetings and watched them work hard to reduce costs and they've done a great job. Most that golf at Desert Willow are still looking at the flowers rather than weeds, stating the courses are beautiful. Kemper tries to keep fees down, and they are well aware of the mandated minimum wage increases and how that's going to impact operations. In reading the stack of letters from the public, there were statements made that there is collusion between the City and Kemper Sports. She said those statements are inaccurate and very unproductive, but the process was very important to have gone through. Residents wanted more access and the Task Force came up with a formula, but it doesn't seem to appeal to anyone. She said 28 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 14, 2018 DRAFT the Platinum and Champion Clubs provide greater access and opportunity for Palm Desert residents, and Kemper has tried a number of programs to provide great opportunities for the residents. In the end $50 is a great deal even if you don't have access all the time or as far in advance as one would like it. It's a great amenity, and the $50 fee will go up at some point, but Council didn't have to do it today. With regard to the definition of a resident, it's best to keep as is. Mayor Pro Tem Weber responding to Councilmember Harnik's comment that second -home owners don't pay taxes, she disagreed, stating they pay sales tax and property taxes. They might not pay State Income Taxes, but they do feel like part of the community, because that's where they chose to live and buy property. She understood they don't vote and don't really live here, but they do feel like they are part of the community. Councilmember Harnik said that's warm and fuzzy, but they work hard not to pay State Income Tax and they make sure this is not their residence as defined by the law. She understands these folks are here and they are embraced as guests. Perhaps there can be another type of card for those community members who are part-time, but haven't made the commitment to residency. There are many who own property in other cities, but they don't expect the amenities that are talked about at Indian Wells where they get free access to exercise equipment at the Hyatt. Councilmember Nestande asked about those who live in California, but have a second home in Palm Desert that do pay State Income Taxes. Councilmember Kelly offered that this program has been in effect for 22 years and it's very clear from the way a resident was described in 1996 and what the intent was. It's important to know what the context was, because back in the 1990's it was difficult to have access to a golf course without paying a stiff initiation fee. Part of the motivation in creating resident rates at Desert Willow, was to afford a place where the year round folks, upon whom our tourist industry depends, could also play golf. When folks can afford second homes and play often in other country clubs, these folks have not been crying that they don't have access to golf, and in today's world, there are countless opportunities to play golf without a stiff initiation fee. She doesn't see a problem that needs to be solved by potentially doubling the pool of people who are trying to gain access to Desert Willow at resident rates. Mayor Jonathan pointed out there are other cities that provide resident cards to any property owner, but he's not advocating for it, he's just mentioning that it's done both ways. If Council was going to bring up the affordability issue, by talking about people that can afford second homes, he didn't believe Council was in a position to make financial judgments. He suspects many in 29 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 14, 2018 DRAFT the audience live in nice homes and Council didn't want to question to what extent they have affordability. He heard comments made that it wants to remain competitive with other golf courses, and often Indian Wells is used as an example. In his opinion, the last thing Palm Desert wants to do is follow the path of Indian Wells to have to subsidize the golf course to the tune of $700,000 a year from the General Fund. Therefore, that comparison is not appealing. Councilmember Harnik added that Indian Wells has 5,000 residents and Palm Desert has 50,000 - it's not a fair comparison; it's an apple to oranges. Mayor Jonathan said that from a policy standpoint, he felt Council had a greater responsibility to the 50,000 residents and not just the 3,500 golfers. It also has an additional responsibility to the business community, because there are other golf courses in the community. When Palm Desert sets the rate too low, it causes significant financial issues for the other golf courses. He also heard that if the fee is raised, it's going to be a burden on the residents. He's not sure about that, because the total discount awarded to residents when you compare the rates they pay to market rates, it approaches $800,000 a year, so this City is already subsidizing golf for the 3,500 individuals that choose to take advantage of it. He also disagreed that if the rate is raised they will be priced out, stating those folks can be directed to aolfnow.com. You can find rounds cheaper than at Desert Willow. Those that golf have many other options, but they don't necessarily view those as viable options because Desert Willow is a country club for a day experience. When he plays at Desert Willow, he feels that experience from the first person that greets you, to the quality of the course, to the golf carts themselves with GPS, to the food and beverage operations, and the facility itself, stating he could go on and on. If you want cheaper golf, you can get it, if you want country club for a day, you will be subsidized, but there is a limit. He noted the five-year projections that were reviewed at the Task Force meetings and at the Study Session, is that the current path is unsustainable. He sits on the Desert Willow President's Committee, the committee that oversees Kemper and Desert Willow operations. They have over cut costs, to the point that some of that quality suffers because staff went way down, but gradually they are coming back up. The biggest impact to the operational performance is the increase in minimum wages. Not only to the people that earn minimum wage, but more importantly to the compaction that occurs. He reiterated the current path is unsustainable that they will be looking at ways to subsidized Desert Willow out of General Funds to the tune of $1 million+ by the end of that five-year period unless something is done. He said it was expensive to run a golf course, not only because of daily operations, but because of the expensive equipment that has to be replaced periodically, including pump panels. The City just recently approved $700,000 in expenditures, and that list is somewhere around $10 to $12 million overtime, which comes out of special funds of the 30 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 14, 2018 DRAFT City. He's open to discussions about the resident card, because the City has both the full-time and part-time residents. Other cities have chosen to provide a discount to both types of residents, because they have invested in the City by purchasing property and living in the community. On the other hand, from a financial standpoint, it does expand the base. He said there are 3,500 residents that take advantage of the card, and Council received testimony from about nine individuals, so it was dangerous to shape policy based on what might be a loud minority. It could be that 3,491 people didn't show up this evening because they are okay with what's being proposed. Going forward, Council needed to take into consideration the bigger picture, in that any tinkering with resident rates will impact on operations at Desert Willow and the General Fund. He heard it was best to keep it the same, which he wasn't opposed to, but the discussion started with greater access. So if Council decides to keep it the same, it will remain at the 3-day out booking, and he's not sure that will solve everyone's wishes. If Council expands access, then there will be more resident discounts rounds instead of market rate rounds. He said the City failed to apply CPI increases, which was a mistake. The City has actually reduced the price of golf by not keeping up with inflation, so if the City was going to keep things the same, there needs to be an increase to the resident rate to about $70. Councilmember Harnik asked when was the City due for the next CPI increase. Mr. Alvarez recalled that in 2013 it reached the $50 mark, and staff had been looking at it annually. Councilmember Harnik believed the City started it in 2013 and it went to $47 and inched its way up. Perhaps it should look at it at budget time and find out what the CPI is for Riverside County or look at it more locally. Mr. Alvarez said Council's policy was to look at it annually and once it reached a whole dollar, it can consider increasing it. He called attention to the chart he displayed that shows when it went from $45 to $48. It started the evaluation of the CPI in 2012/2013, and it reached the $50 mark in 2015/2016. Councilmember Harnik recalled there was an outcry when the rate went from $45 to $48, yet it was inevitable that change and increases would come. She appreciated the Mayor's comment that Council has a responsibility to the 50,000 residents not just the 3,500 to ensure it didn't enter the red. The City has other amenities like the parks and aquatic center that are not money makers, which is why it has to look at Desert Willows ability to be an economic generator. 31 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 14, 2018 DRAFT Councilmember Nestande said that if she's hearing everyone correctly, everyone can live with keeping the status quo for now and revisiting it. Currently, Desert Willow is doing very well, so she would advocate keeping everything the same for now, in terms of the resident rate and agree it couldn't stay at $50 forever. When comparing to the City of La Quinta that has a larger population, they are charging $60, stating it was something to consider at another time. Councilmember Kelly believed there was some impetus to try to spare the City Council from looking at this on an annual basis, because it garners a lot of public attention. However, it should perform that responsibility of looking at this on an annual basis or at least every other year, because the economy is going to change. Demand for golf changes, so it's really not possible to know what the resident rate should be five -years from now. She concurred that the prudent thing to do this evening is to reject the two recommendations, acknowledge that it's been an extremely fruitful process, and continue to monitor the rate with respect to the conditions. Councilmember Harnik believed this issue should be part of the budget study, because the golf industry has been going down and there is no reason to believe the $185 rate is going to be in demand. The budget adoption is coming up in two weeks, so she didn't know if that puts too much pressure on staff to come up with a recommendation at that time for a CPI increase. Mayor Jonathan is very persuaded by what he's heard this evening, including the emails received, but whatever is decided this evening, not everyone is going to be happy. Given the discussions, he was in favor of no change in the resident definition, which limits the resident cards. Secondly, keep the current resident structure in place, in that you get a discount when you book 3 days out or less. Third, he suggested catching up with inflation, which the City failed to do. Part of the reason he wants to do this is because the current path is unsustainable, and costs are going up. If Council gave full recognition to the CPI, it would change the resident rate from $50 to $74, so he suggested splitting that increase and going to $62 immediately or on July 1. He suggested as a City policy revisiting this every year to have the annual CPI increased based on Riverside County or Urban Wage Earners, or something that's more realistic to the area. Councilmember Harnik instead suggested using the $50 rate and building on it using the CPI going forward and looking at it annually. However, at some point the residents will have a higher rate than what the market rate will be if it only uses the CPI as the formula. She said Council had to look at this issue in a broader way instead of in a reactive way. Mayor Jonathan concurred, but it should be adjusted as appropriate, but he would still make the case that the rate was way behind the curve, because 32 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 14, 2018 DRAFT if it had been looking at this annually, it would be at $75. Starting at $50 as the base, financially, it's not the best place to start given what was heard this evening. He suggested $62, because he didn't want to keep it at $50 for another year. Mayor Pro Tem Weber clarified this was an amenity and the Mayor was talking about a CPI that is suppose to be keeping up with costs, etc. The goal was not to keep up with cost but to provide an amenity for the residents. Council keeps talking about a rate in order to cover it all, which wasn't the point. She's not comfortable with voting on increasing the rate this evening without it being posted, stating it deserved a more sincere study and input. She said this was a public amenity that was no different from the pool or pickelball courts the City keeps subsidizing all over the place by lighting them, paving them, and giving them benches, etc. She asked why they were so special and the golfers aren't. She said things needed to be put in perspective as to what's an amenity. She herself has commented several times that golf is silly, but the City has a lot of golfers. Councilmember Kelly agreed on the process and observation just made in that the staff report didn't address making a CPI adjustment at this time, and she's not comfortable doing that off the cuff without there being a full opportunity for the affected community to speak to a specific recommendation. Councilmember Kelly moved to reject the two proposals this evening and requested staff bring back a recommendation pertaining to an annual adjustment of the resident rate. Councilmember Harnik seconded the motion. Councilmember Harnik was adamant that the primary reason Desert Willow was built was so that it complied with Redevelopment Agency standards in order for the City to have an economic generator. The parks and aquatic center are pure amenities to increase the lifestyle and the attractiveness to the community; they are not perceived as economic generators. In other words, the City doesn't expect to turn a profit with the parks or the aquatic center. The City works hard in trying not to subsidize the aquatic center as much. She reiterated Desert Willow is an economic generator, which is the reason for the adjacent parcels there. Desert Willow is to provide opportunities for the residents, but there needs to be a balance there. Mayor Jonathan expressed he couldn't embrace the motion, because sometimes Council can get too deep into analysis paralysis. It was Council's job to make a decision, there's been a process, it's been analyzed, there's been a staff report, and there is more data than necessary to make a decision this evening. To ask staff to then come up with a recommendation about cost is advocating its responsibility to them. Staff will try to figure out and incorporate the various comments, and Council will have another debate 33 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 14, 2018 DRAFT about what it should be. If that's what's going to happen, fine, but he needed to explain why he couldn't embrace the motion. Councilmember Harnik added she was not a big fan of continuing items because the tough job was to make decisions, which is why she asked that it be brought back at budget time and incorporate the CPI on the $50 base. Ms. Aylaian responded if it were nothing more than a CPI increase, staff can do that calculation in short order and provide it. If Council was going to address bigger issues, she would suggest leaving it as is for now and bringing it back for the next budget study session for next year. Councilmember Harnik asked for a friendly amendment to the motion, to come back in two weeks with the CPI increase, using the dollar standard format. Councilmember Nestande and Councilmember Kelly agreed to support that as part of the motion. Ms. Aylaian asked if Councilmember Harnik was asking for a CPI increase since it was last increased, because the CPI changed. Councilmember Harnik replied it would be based on the $50 rate, plus what it will be for Fiscal Year 2018/2019. Mayor Pro Tem Jonathan offered that based on other analysis done, using the CPI, the index is 2.8%, therefore, the increase would be $1.40, so if you rounded down, the new rate will be $51 dollars, which was silly. He believed Council had to step this up and find a number it can live with, recognizing it has been derelict for so many years by not applying the CPI. He said a broader look needed to be taken because of the impact it has or will have, if it doesn't start at a higher base for future operations. Adding that the five-year forecast is unsustainable at this level. He said this item didn't have to be postponed when you are talking about going to $51. Councilmember Kelly responded that it may be true, but it should be supported by appropriate documentation and it's not in the current staff report. Councilmember Harnik added it should be noticed on the agenda as well. Mayor Jonathan disagreed, because the issue of rates is on the agenda and there is documentation on CPI rates, because it's been addressed. Councilmember Kelly said that was not her perspective, stating she accepted all the friendly amendments. 34 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 14, 2018 DRAFT Mayor Jonathan questioned why not have an open mind and enable staff to utilize their resources and expertise to make a broader recommendation instead of tying their hands and say it had to start at $50. Councilmember Kelly replied that her thinking informed by the City Manager is that it can happen leading into the next budget process, but given the timing of where we are right now, doing this makes the most sense. Mayor Jonathan couldn't understand how this issue was related to the budget, because whatever it's considering here will only improve operations. The current budget adopts the current model, and there won't be an adverse impact. He wants to continue the discussion, giving staff the opportunity to utilize their experience and insight into this subject and not tie their hands and let them address the issue of pricing and return with a recommendation. The City Council can then discuss and make a decision by not preempting them to go to $51. He's asking for this Council to deliberate this issue unfettered by its restrictions. Councilmember Kelly reminded Mayor Jonathan that's where she started, but he convinced her she had all the information already. Mayor Jonathan believed Council had the information, but if it's not going to deliberate on a rate, it should not confine staffs recommendation, instead give them a blank canvas. Councilmember Nestande said she was not comfortable raising the rate to $62. Mayor Jonathan replied he was not suggesting Council do that, but to allow staff to do their process where Council can then debate it. If the majority then wants to keep it at $50 or go to $51 that's what's going to happen. He was not suggesting going to $62, but in asking staff to make a recommendation, it should not confine them. Councilmember Harnik agreed that a staff recommendation is supposed to be based on their best knowledge. She would like for then to have an option A and B. Therefore suggested that for 2017-2018, the rate will increase to $50 plus the CPI or another option that staff felt was right. She's not looking to tie hands, but can she please have the information on the CPI increase, and if they feel there is a better solution, they can provide that as well, then Council can have a friendly discussion. Councilmember Kelly asked the City Manager if there was time available to support an expectation of a study option. 35 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 14, 2018 DRAFT Ms. Aylaian said there was not. Further responding, she said this issue can be addressed at any time, not necessarily prior to the budget. Mayor Jonathan said countless hours have been devoted to this by staff, the volunteers, the task force, and the folks who have written and spoken this evening, and now to try to do this quickly and in the process predetermine the recommendation, is short-changing the results. He said this issue can be addressed at any time as stated by the City Manager. He liked the friendly amendment suggested by Councilmember Harnik and he would be in favor. Councilmember Nestande asked if the Desert Willow Resident Card was going to be separated out, because she was in favor of expanding the resident pool. Councilmember Kelly said she will stay with her original amended motion. Mayor Jonathan commented that the motion was restricting staff to an analysis of CPI applied to the $50 rate. He took exception to the motion, calling it a recommendation. He could not assume that was a recommendation of staff, it was strictly a mathematical analysis process and he suspects it will come out to $51. Councilmember Nestande said it will be part of the record that she was in favor of expanding the resident card, but opposed to the DPM, thereby voting no on the motion. Mayor Jonathan called for the vote and the motion carried by a 3-2 vote. • For clarification purposes the motion was as follows: Upon a motion by Councilmember Kelly, second by Councilmember Harnik, and 3-2 vote of the City Council (AYES: Harnik, Kelly, and Weber; NOES: Nestande and Jonathan): 1) Rejected both proposals set forth in Resolution No. 2018-33 (Resident Card Policy and Dynamic Pricing); 2) requested staff return to City Council to coincide with consideration of the FY 2018-2019 Budget on June 28, 2018, with a recommendation to adjust the present $50 Resident Rate based on CPI (Consumer Price Index) rate change for the last 12 months in the Southern California -Riverside County Region, rounded to the nearest dollar. 36 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 14, 2018 XV. ORDINANCES A. For Introduction: None B. For Adoption: None DRAFT With City Council concurrence, Mayor Jonathan suspended the agenda at this point in order to take up the Housing Authority agenda. Following that agenda, he resumed the regular City Council agenda order. XVI. NEW BUSINESS A. REQUEST FOR APPROVAL OF FIVE-YEAR AGREEMENT WITH WITTMAN ENTERPRISES TO PROVIDE EMERGENCY MEDICAL SERVICES (EMS) BILLING SERVICES (CONTRACT NO. C36730). Mr. Aryan recalled for the City Council that this item was discussed previously at a study session last year and earlier this year at a public hearing. Responding to question about the black pages in the staff report, he explained that those pages were redacted, however, the Review Committee did have an opportunity to see the entire proposal as part of the recommendation. Mayor Jonathan commented that it did not go unnoted that this will result in approximately $3 million annually in cost recovery, which is wonderful. Councilmember thanked Mr. Aryan for heading this process very efficiently, which lead to an excellent result. Councilmember Harnik moved to, by Minute Motion: 1) Approve subject contract with Wittman Enterprises, LLC, Rancho Cordova, California, to provide EMS Billing Services; 2) City Manager to execute said agreement, subject to finalization and any non - substantive modifications by the City Attorney; 3) appropriate $110,000 for administration fees in Fund 230 - Fire Tax Fund; 4) authorize City Manager to take any steps necessary to effectuate the actions approved herein. Motion was seconded by Nestande and carried by a 5-0 vote (AYES: Harnik, Kelly, Nestande, Weber, and Jonathan; NOES: None). 37 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 14, 2018 DRAFT B. REQUEST FOR AWARD OF CONTRACT FOR ONE YEAR TO WATERLINE TECHNOLOGIES, INC., IN THE AMOUNT OF $109,230 FOR MECHANICAL MAINTENANCE AND CHEMICAL ACQUISITION AT THE PALM DESERT AQUATIC CENTER (PDAC) (CONTRACT NO. C36850). Management Analyst Johnny Terfehr noted the staff report and offered to answer questions. Councilmember Nestande moved to, by Minute Motion, award/authorize: 1) One- year agreement with Waterline Technologies, Inc., Santa Ana, California, in the amount of $109,230 for Mechanical Maintenance and Chemical Acquisition at PDAC; 2) additional repair work and services at the specified contract amount not to exceed 20% thereof ($21,846); 3) City Manager to execute said agreement — funds are available in the following Accounts, Nos. 2424549-4211100 - Supplies - Pool Chemicals and 2424549-4331101 - Contracted Pool Maintenance. Motion was seconded by Weber and carried by a 5-0 vote (AYES: Harnik, Kelly, Nestande, Weber, and Jonathan; NOES: None). C. REQUEST FOR AWARD OF CONTRACT FOR SERVICES RELATED TO THE CITY OF PALM DESERT SEASONAL LIGHTING AND DECOR PROGRAM TO THE CHRISTMAS KINGS IN AN ANNUAL AMOUNT OF $86,645 PLUS A ONE-TIME MATERIALS COST OF $46,680 (CONTRACT NO. C37130, PROJECT NO. 775-19). Management Analyst Heather Horning stated this award of contract is for the City's Seasonal Lighting and Decor Program to -the Christmas Kings. The staff report includes photographs of the proposed program. Councilmember Harnik said she appreciated the effort brought forth. She noticed the lights will be back up on El Paseo on October 5, stating its earlier than it has been, because a couple of years ago they were going up in November. She loves what is being proposed and is looking forward to seeing it. Mayor Jonathan noted he had previously asked Ms. Horning how this contract compared to previous years, and she indicated prior cost was $90,000 compared to $86,000. So the City is getting a better product for less money, which he liked very much. Councilmember Harnik moved to, by Minute Motion, approve/award/authorize: 1) Waiving cost proposal irregularity; 2) contract to The Christmas Kings, Lake Elsinore, California, in the annual amount of $86,640 for services related to the City of Palm Desert's Seasonal Lighting and Decor Program; 3) one-time expenditure of $46,680 for purchase of lighting; 4) City Manager's approval of unforeseen expenses of up to 10% of the annual contract amount ($8,664.50) in the form of a Change Order with staff recommendation; 5) one-time credit of $675 toward contract for the 35 holiday wreaths declared as surplus 38 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 14, 2018 DRAFT on September 7, 2017; 6) declaring various lighting and decor formerly used in the City's program as surplus and disposal as recommended; 7) City Manager to execute the agreement and any documents necessary to effectuate the actions taken herewith — funds are available in various accounts of the proposed FY 2018-2019 Public Works Budget. Motion was seconded by Weber and carried by a 5-0 vote (AYES: Harnik, Kelly, Nestande, Weber, and Jonathan; NOES: None). D. REQUEST FOR AUTHORIZATION TO INITIATE PROCEEDINGS TO LEVY THE ANNUAL ASSESSMENT FOR FISCAL YEAR 2018-2019 FOR CITY OF PALM DESERT BENEFIT ASSESSMENT DISTRICT NO. 1. Ms. Moore stated that annually the City Council must adopt a Resolution with its intent to levy the property owners for the Benefit Assessment District. This is an administrative task to consider. With regard to the specifics, Willdan Financial Services is available to answer questions about the process. Councilmember Harnik moved to waive further reading and adopt Resolution No. 2018 - 34, declaring the intention to levy the annual assessment for FY 2018-2019 for City of Palm Desert Benefit Assessment District No. 1, pursuant to The Benefit Assessment Act of 1982, and appointing a time and place for a public hearing on these matters. Motion was seconded by Kelly and carried by a 5-0 vote (AYES: Harnik, Kelly, Nestande, Weber, and Jonathan; NOES: None). E. REQUEST FOR AUTHORIZATION OF THE LEVY OF A SPECIAL TAX IN COMMUNITY FACILITIES DISTRICT NO. 2005-1 (UNIVERSITY PARK) FOR FISCAL YEAR 2018-2019. Ms. Moore stated the City Council is required to adopt a Resolution noticing its intent to levy the taxes. Councilmember Harnik moved to waive further reading and adopt Resolution No. 2018 - 35, authorizing the levy of a special tax in Community Facilities District No. 2005-1 (University Park) for FY 2018-2019. Motion was seconded by Nestande and carried by a 5-0 vote (AYES: Harnik, Kelly, Nestande, Weber, and Jonathan; NOES: None). 39 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 14, 2018 DRAFT F. REQUEST FOR AUTHORIZATION TO INITIATE PROCEEDINGS TO LEVY AND COLLECT ANNUAL ASSESSMENTS WITHIN, AND TO GRANT PRELIMINARY APPROVAL OF THE ENGINEER'S ANNUAL LEVY REPORT FOR, CONSOLIDATED PALM DESERT LANDSCAPING & LIGHTING MAINTENANCE DISTRICT NO. 1 FOR FISCAL YEAR 2018-2019. Ms. Moore stated this assessment is for the Consolidated Palm Desert Landscaping & Lighting Maintenance for all of the Districts. Responding to question, Mr Hargreaves confirmed Councilmembers were allowed to vote on this item as it was going with the generally accepted process. Councilmember Harnik moved to waive further reading and adopt: 1) Resolution No. 2018 - 36, initiating proceedings to levy and collect the annual assessments for Consolidated Palm Desert Landscaping & Lighting Maintenance District No. 1 for FY 2018- 2019; 2) Resolution No. 2018 - 37, declaring the intent to levy and collect annual assessments within, and granting preliminary approval of the Engineer's Annual Levy Report for, Consolidated Palm Desert Landscaping & Lighting Maintenance District No. 1 for FY 2018-2019. Motion was seconded by Nestande and carried by a 5-0 vote (AYES: Harnik, Kelly, Nestande, Weber, and Jonathan; NOES: None). G. REQUEST FOR REVIEW AND APPROVAL OF OUTSIDE AGENCY FUNDING (CHARITABLE CONTRIBUTIONS) FOR FISCAL YEAR 2018-2019. Administrative Secretary Niamh Ortega stated this was a request to approve the recommendation of the Outside Agency Funding Committee to award charitable contributions in the amount of $134,400, including making some minor modifications to the guidelines. The applications were made available in January on the City's website. Staff did some extra outreach this year by contacting the Regional Access Project Foundation (RAP) and solicited applications from many nonprofit organizations in the area. A total of 37 applications were received and staff is requesting to approve 21 for funding. Councilmember Kelly asked if staff knew historically why the requirement existed for matching funds from school recipients. Ms. Ortega replied that originally when the City awarded funding to school organizations, the Parent Teacher Organization (PTO), is not the school itself, staff runs into a lot of difficult with groups relying on the City to fund their entire program and not doing their own fundraising to help assist their own students. 40 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 14, 2018 DRAFT Councilmember Kelly asked if that problem no longer exists, in light of the proposal to change that requirement. Ms. Ortega explained the City used to award the funding up front. For example, funding could be awarded July 1, and organizations would receive their funding, spend the funds and not remit any receipts showing what they spent those funds on. Therefore, the proposal is to award the funding after they have spent their allotment, so they will submit their receipts and then the City will issue the payment. Organizations will still have to do their own funding. For example, for one of the elementary schools, the recommendation is to award $3,000, yet the program being funded is substantially more than $3,000, stating the Aesthetic Education Program cost $15,000, so they will be required to do some of their own fundraising. Councilmember Harnik recalled always having to provide receipts. For years she filled out the application for the Palm Desert High School Foundation. She thought it was a good process because of the way it was done, and there was always a need for fundraising. More importantly, there was always tremendous assistance from staff at the City, and they were able to get through it. She knew schools were contacted, and it's unfortunate that Lincoln Elementary did not respond, but she understood the issue. In the past when there was a formidable grant offered from Walmart, she reached out to Lincoln to help them fill out the application and they just ignored it. However, it's one of the schools that needs funding the most, because they are at 94% at free or reduced lunches. They don't have a vibrant Parent Teacher Organization (PTO), because these are working families, so they get left behind. She made an impassioned request to put monies aside and offered to reach out to Lincoln Elementary and follow-through with an application. She asked if there was a way to make an exception to help out this school. Mayor Jonathan noted the Committee did address that issue, because there was'a concern, and he reached out to the school as well. He agreed they are not blessed with an organized PTO, but the Committee felt it would be unfair and inappropriate to those that went through the process and were denied. Councilmembers discussed the request and alternative options were discussed on how to get Lincoln Elementary engaged and to be part of the process going forward. They concluded that at this time it was best to bifurcate the current recommendation for the Charitable Contributions from doing what it could for Lincoln Elementary. Councilmember Harnik indicated she will pursue a meeting with the City Manager asking for discretionary funds for Lincoln Elementary for a specific item. 41 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 14, 2018 DRAFT Mayor Pro Tem Weber registered her abstention on Line Item 35, the Historical Society of Palm Desert. Councilmember Kelly moved to, by Minute Motion: 1) Approve the award of charitable contributions in the total amount of $134,400 to the agencies listed in the accompanying staff report, with associated restrictions and conditions; 2) accept the modifications to the Outside Agency Funding Guidelines for FY 2019-2020; 3) pending approval of the FY 2018-2019 City of Palm Desert Financial Plan, authorize City Manager to execute any documents necessary to effectuate the actions taken herewith. Motion was seconded by Harnik and carried by a 5-0 vote (AYES: Harnik, Kelly, Nestande, Weber, and Jonathan; NOES: None), with the exception of Line Item 35 - Historical Society of Palm Desert, which was a 4-0-1 vote (AYES: Harnik, Kelly, Nestande, and Jonathan; NOES: None; ABSTAIN: Weber). H. REQUEST FOR APPROVAL OF ACTIONS RELATIVE TO THE 2018 GENERAL MUNICIPAL ELECTION TO BE HELD IN THE CITY OF PALM DESERT ON TUESDAY, NOVEMBER 6. Ms. Klassen stated that as required by the Palm Desert Municipal Code and the State of California, the City is required to hold General Municipal Elections, which is coming up on November 6, 2018, and that process begins at this time by calling the election. The Candidate Nomination Period begins July 16 and runs through August 10, and then there are financial reporting requirements and such that go on throughout the rest of the season, which are handled through the City Clerk's Office. Councilmember Harnik moved to waive further reading and adopt: 1) Resolution No. 2018 - 38, calling for the holding of a General Municipal Election to be held on Tuesday, November 6, 2018, for the election of certain officers as required by the provisions of the Laws of the State of California and the Charter of the City of Palm Desert; 2) Resolution No. 2018 - 39, requesting the Board of Supervisors of the County of Riverside to consolidate a General Municipal Election to be held on Tuesday, November 6, 2018, with the Statewide General Election to be held on the date pursuant to § 10403 of the Elections Code; 3) Resolution No. 2018 - 40, adopting regulations for candidates for elective office pertaining to candidates' statements submitted to the voters at an Election to be held on Tuesday, November 6, 2018. Motion was seconded by Kelly and carried by a 5-0 vote (AYES: Harnik, Kelly, Nestande, Weber, and Jonathan; NOES: None). With City Council concurrence, a recess was observed from 7:55 p.m. - 8:02 p.m. 42 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 14, 2018 DRAFT I. REQUEST FOR APPROVAL OF ACTIONS CALLING FOR PLACEMENT OF A GENERAL TAX MEASURE ON THE BALLOT FOR THE NOVEMBER 6, 2018, GENERAL MUNICIPAL ELECTION FOR SUBMISSION TO THE QUALIFIED VOTERS OF A PROPOSED ORDINANCE ESTABLISHING A TAX ON CANNABIS BUSINESSES OPERATING WITHIN THE CITY OF PALM DESERT. Councilmember Harnik and Mayor Pro Tem Weber recused themselves from this item. However, a 4/5 vote is required to place this measure on the ballot. Therefore, the City Attorney selected the random drawing of straws to see which Councilmember would remain to consider and take action on the item. Mayor Pro Tem Weber drew the stick that qualified her to participate, at which time, Councilmember Harnik left the Council Chamber. Mr. Stendell noted the staff report prepared by Management Analyst Deborah Glickman who is attending the American for the Arts Conference and will be back next week. The Resolution and Ordinance sets forth a taxation structure for proposed cannabis uses within the City of Palm Desert. Staff tried to develop a structure that was comparable to other Valley cities to not incentivize or deincentivize cannabis uses. Under the Fiscal Analysis staff generated an analysis based on the 11 businesses that have been selected and prioritize to move through the process. The numbers appear high, but staff did use the numbers that have been submitted by actual applicants, so they were comfortable listing them in the Fiscal Analysis. If approved this evening, it simply puts the measure on the ballot for the November 2018 election. Mayor Pro Tem Jonathan said he understood this measure will go to ballot, but at the proposed not to exceed rates, and is Council also approving the starting rates indicated in the staff report. Mr. Stendell answered yes, as proposed. However, the rates are subject to action by the City Council. So say if the voters approve the maximum rates, the City Council can at any time adjust the rate. Staff is suggesting a rate to start at, and it was staffs intention to have those acted on this evening, but it could be revisited in December after the ballot. Mayor Pro Tem Jonathan asked if the ballot measure indicate the starting rate. Mr. Stendell answered no, stating the voter will be voting on a maximum rate, and there's a section in the Resolution and Ordinance that talks about the ability to go to amounts lower, but never exceed the maximum without the vote of the people. Mayor Pro Tem Jonathan asked if there was a compelling reason to set the 43 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 14, 2018 starting rate this evening and/or are the operators asking. DRAFT Mr. Stendell replied staff set those rates to be comparable with other Valley cities, stating what's critical was the maximum amount for voting. Mr. Hargreaves added that technically the tax is enacted when the voters vote, so it would be helpful if the City Council acted prior to the vote in order to specify the rate. Mayor Pro Tem Weber called attention to the 4th Whereas of proposed Resolution No. 2018 - 41, stating the phrase where it states ". proceeds of which are deposited into the general fund to be spent on unrestricted general revenue purposes." She questioned why it said general revenue purposes instead of general expense purposes. Ms. Moore said staff went over it, and basically it's to be used as any other general revenue of the general fund could be used. MayorJonathan offered an altemative, because you are referring to the fund. It could be stated as follows: "Proceeds of which are deposited into the general fund to be spent on unrestricted general revenue fund purposes." Additionally, if Council votes to put this measure on the ballot, and by Ordinance set a starting rate, what is being proposed for cultivation facilities, Palm Desert would be at $13 to start compared to $15, $25, and $10 and shown in the table in the staff report. Councilmember Kelly pointed out that Palm Springs is $25 for the first 3,000 square -feet, and then $10. Mayor Jonathan agreed, and then the City would be proposing a rate for Dispensaries and Delivery, which will be based on gross receipts at a rate of 10% in Palm Desert compared to the other cities shown to the right columns of the table. He said Palm Desert would not be in the middle, but more at the same rate as other cities, and higher than one city. Further, the Tax Rate for Manufacturing, Testing, and Distribution, which is based on gross receipts, the City is proposing 10% Mr. Stendell explained staff was looking to be approximately in the same ball park as other Valley cities. He added staff was having a hard time comparing apples to apples, so they looked at everything in an aggregate. Further responding, he confirmed those were the three taxes being proposed, stating Resolution, Section III, speaks to what is actually on the ballot measure, which lists the absolute maximum amounts, which is what will be voted on. The City and the City Council reserve the right to set it lower but never higher without the vote of the people. Further responding, he explained he came up with the estimate of $3.6 million by totaling the square 44 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 14, 2018 DRAFT footage anticipated as listed in the applications and what they believed their annual receipts would be, using the proposed rates. Mayor Jonathan suggested addressing the starting point in the ballot measure. He asked staff if they consulted or asked for feedback from the industry. Mr. Stendell replied he didn't, because they have had plenty of discussions about staying consistent with other cities. Councilmember Nestande asked about the State's initiative that may get on the ballot, if it passes, how will it affect the City's vote. Mr. Hargreaves replied that this particular Ordinance is designed to withstand the initiative, assuming it gets a 2/3 vote, then the City is fine. There are a lot of questions about that initiative, because essentially it's designed to be retroactive, and whether or not it's constitutional under the circumstance, it's an open question. The way it would actually play out is not entirely clear, but this is the best the City can do under the circumstances to move the tax forward. Councilmember Kelly offered that the proposed starting places are reasonable and she would move to approve. Councilmember Kelly moved to waive further reading and: 1) Adopt Resolution No. 2018 - 41, calling for the placement of a General Tax Measure on the ballot for the November 6, 2018, General Municipal Election for the submission to the qualified voters of a proposed ordinance establishing a tax on cannabis businesses operating within the City of Palm Desert; 2) Pass Ordinance No. 1339 to second reading, adding Chapter 3.50 to Title 3 (Revenue and Finance) of the Palm Desert Municipal Code, establishing a tax on cannabis businesses operating within the City of Palm Desert (pending voter approval), as amended to change language to the 4th Whereas to read "...to be spent on unrestricted general fund purposes," to Resolution No. 2018-41. Mr. Stendell asked Council to allow staff the ability to make sure that total revenue amount is based on the total amounts. So if there was a final revision to the number, it would be reflected at the higher amounts and not the lesser amounts in the resolutions. Councilmember Kelly concurred and amended her motion to reflect staff's request.. Mayor Jonathan said the City wants to base the approximation on the ballot measure based on the starting rate. Mr. Stendell said that wouldn't be a true statement, so he would ask for the ability of the City Attorney to review this and make sure staff is being correct. 45 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 14, 2018 DRAFT If you are asking the voter to vote on the higher amount, the City should tell them the total amount it's going to generate. Mayor Jonathan said that was his concern, because if the City is going to do that, it's very important not to mislead the public and say it's going to generate $5 million and then it only generates $2 million. Maybe the wording needs to be worked out, but he wants to make sure the message in the ballot measure is clear, and perhaps it needs to say "an amount not to exceed' if the higher amount will be used. In order words, he doesn't want to mislead the public by selling them a bill of goods and then doing a bait and switch. Councilmember Kelly amended her motion further to include authorizing staff to finalize the details consistent with the discussion held this evening. Mayor Jonathan asked staff to share the wording of the General Tax Measure on the ballot with Council prior to the next meeting. Ms. Aylaian stated she wasn't sure Council could make any changes at the next meeting, because it has been identified that the City needs a 4/5 vote, and one Councilmember will be missing at the next meeting, which may need to be delayed until the July meeting. Although, her understanding from the City Clerk is that time wise it was still adequate to place the measure on the ballot for the General Election in November. Mayor Jonathan was willing to move these items forward, if he could just have staff share the wording with Council prior to the next meeting. Mr. Hargreaves agreed. Councilmember Nestande seconded the motion, and Mayor Jonathan called for the vote and the motion carried by a 4-0 vote. For clarification purposes, the Motion was as follows. Councilmember Kelly moved to waive further reading and: 1) Adopt Resolution No. 2018 - 41, calling for the placement of a General Tax Measure on the ballot for the November 6, 2018, General Municipal Election for the submission to the qualified voters of a proposed ordinance establishing a tax on cannabis businesses operating with in the City of Palm Desert; 2) pass Ordinance No. 1339 to second reading, adding Chapter 3.50 to Title 3 (Revenue and Finance) of the Palm Desert Municipal Code, establishing a tax on cannabis businesses operating within the City of Palm Desert (pending voter approval), as amended: 1) Change language to the 4th Whereas to read "...to be spent on unrestricted general fund purposes," to Resolution No. 2018-41; 2) authorize staff to finalize the details consistent with the discussion held at this evening; 3) staff to share the wording of the General Tax Measure on the Ballot with City Council prior to the next meeting. Motion was seconded by Nestande and carried by a 4-0 vote (AYES: Kelly, Nestande, Weber, and Jonathan; NOES: None; ABSENT: Harnik). 46 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 14, 2018 DRAFT NOTE: ITEM J WAS ADDED TO THE AGENDA BY 5-0 VOTE EARLIER IN THE MEETING (Section X - F1). J. CONSIDERATION OF ASSEMBLY BILL 1405 - ADVANCE DIGITAL NETWORK ACT. Councilmember Harnik read the following information from the League of California Cities: Assembly Bill 1405 (AB1405), which allows for commercial advertising on the State Highway right-of-way. Content displayed on digital signs on the public right-of-way have been rightfully limited to public safety messages and directional traffic alerts as to not degrade the effectiveness of those signs during emergencies (Amber alerts, vehicle accidents, natural disasters, weather warnings, and construction related activity). Not only would commercial advertising would become a layer of distraction on the highways, it will also lead to drivers ignoring critically safety information from over saturation of the signage systems. Digital and static signage placed on local government property within close enough proximity to be visible from the State right-of-way, requires both state and local permitting approval. Under existing law, local governments insure public input from their residents regarding the design, size, and location of these signs to mitigate aesthetics and environmental impacts. Unfortunately, AB1405 would cut local communities out of this process. She believe the passing of this law would take local control away and it's an important issue to oppose. Councilmember Harnik moved to, by Minute Motion, approve letter of opposition for AB1405 - Advance Digital Network Act. Motion was seconded by Kelly and carried by a 5-0 vote (AYES: Harnik, Kelly, Nestande, Weber, and Jonathan; NOES: None). Ms. Aylaian confirmed Mr. Aryan had already drafted a letter and will have it mailed out tomorrow. XVII. CONTINUED BUSINESS A. MINUTES OF THE REGULAR CITY COUNCIL MEETING OF MAY 10, 2018 (Continued from the meeting of May 24, 2018). Councilmember Harnik moved to approve as presented the Minutes of the regular City Council Meeting of May 10, 2018. Motion was seconded by Kelly and carried by a 5-0 vote (AYES: Harnik, Kelly, Nestande, Weber, and Jonathan; NOES: None). 47 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 14, 2018 DRAFT B. REQUEST FOR AUTHORIZATION TO PROCEED WITH REQUEST FOR PROPOSALS (RFP) FOR ARCHITECTURAL, LANDSCAPE ARCHITECTURAL, AND STRUCTURAL ENGINEERING SERVICES FOR THE PARKVIEW PROFESSIONAL OFFICE COMPLEX BUILDING RENOVATION PROJECT (CONTRACT NO. C37070, PROJECT NO. 726-17) (Continued from the meeting of May 24, 2018). Senior Engineer Joel Montalvo stated that after discussion with the City Attorney, it was decided to move away from the previous staff report and move forward with a Request for Proposals (RFP). Councilmember Harnik stated that by taking this action it would not preclude JMA Architecture from submitting a bid. Mr. Montalvo said that was correct, stating staff will reevaluate the needs of the building and look at it as a new project and send it out for RFP. Councilmember Harnik asked if it was likely or advisable to separate landscape from the structural engineering or architecture. Mr. Montalvo said he didn't see a reason to do so, because it can all be done under one design contract. Mayor Jonathan offered that architects can hire a subcontractor to provide different aspects of the projects. Councilmember Harnik moved to, by Minute Motion, authorize staff to proceed with an RFP for architectural, landscape architectural, and structural engineering services for the Parkview Professional Office Complex Building Renovation Project — funds are available in Account No. 5104361-4400100 - Parkview Office Enterprise Fund. Motion was seconded by Weber and carried by a 5-0 vote (AYES: Harnik, Kelly, Nestande, Weber, and Jonathan; NOES: None) XVIII. OLD BUSINESS A. REQUEST FOR APPROVAL OF THIRD AMENDMENT AND RESTATEMENT OF THE JOINT POWERS AGREEMENT OF THE COACHELLA VALLEY ASSOCIATION OF GOVERNMENTS (CONTRACT NO. C003653) (Continued from the meeting of April 12, 2018). Senior Management Analyst David Hermann requested approval of the Third Amendment and Restatement of the Joint Powers Agreement (JPA) of the Coachella Valley Association of Governments (CVAG). At its April 30, 2018, the CVAG Executive Committee voted unanimously to approve a Third Amendment to the JPA. The most significant change is the agreements inclusion of the Agua Caliente Band of Cahuilla Indians and the Cabazon 48 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 14, 2018 DRAFT Band of Mission Indians as formal CVAG members. Both tribes pay CVAG dues and have been considered voting members, but until now, CVAG's JPA had not been formally revised to include them. Both tribes support amending the agreement to formalize their membership with CVAG. Other changes in the Agreement are enumerated in the staff report, adding Erica Felci from CVAG was available to answer questions. Mayor Jonathan pointed out that at the Executive Committee meeting there was extensive discussion about cities autonomy when it comes to eminent domain and any other decisions by CVAG, and the ability for the cities to then take it as a recommendation, but not be bound. There were assurances given that cities retain the option and autonomy. Mr. Hermann concurred, stating there was an addition to the language in Section 1.2.2(1), providing veto authority to any jurisdiction in which CVAG intends to exert eminent domain. Councilmember Harnik moved to, by Minute Motion: 1) Approve Third Amendment and Restatement of the Joint Powers Agreement of the Coachella Valley Association of Governments (CVAG); 2) authorize Mayor to execute said agreement. Motion was seconded by Nestande and carried by a 5-0 vote (AYES: Harnik, Kelly, Nestande, Weber, and Jonathan; NOES: None). XIX. PUBLIC HEARINGS None XX. ADJOURNMENT With City Council concurrence, Mayor Jonathan adjourned the meeting at 8:48 p.m. ATTEST: RACHELLE D. KLASSEN, CITY CLERK CITY OF PALM DESERT, CALIFORNIA SABBY JONATHAN, MAYOR 49