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HomeMy WebLinkAboutPrelim - CC - 09-27-2018_2DRAFT PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING THURSDAY, SEPTEMBER 27, 2018 CIVIC CENTER COUNCIL CHAMBER 73510 FRED WARING DRIVE, PALM DESERT, CA 92260 I. CALL TO ORDER - 3:00 P.M. Mayor Jonathan convened the meeting at 3:05 p.m. II. ROLL CALL Present: Councilmember Jan C. Harnik Councilmember Kathleen Kelly Councilmember Gina Nestande Mayor Pro Tern 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 Russell Grance, Director of Building & Safety Ryan Stendell, Director of Community Development Janet M. Moore, Director of Finance/City Treasurer Tom Garcia, Director of Public Works Stephen Y. Aryan, Risk Manager Eddy Moore, Division Chief, Palm Desert Fire/Riverside Co. Fire Dept./Cal Fire Andy Martinez, Admin. Sgt., Palm Desert Police/Riverside Co. Sheriff's Dept. Grace L. Rocha, Deputy City Clerk III. ORAL COMMUNICATIONS - A (CLOSED SESSION ITEMS) None IV. ADJOURN TO CLOSED SESSION Request for Closed Session: A. Conference with Real Property Negotiator pursuant to Government Code Section 54956.8: PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING SEPTEMBER 27, 2018 DRAFT 1) Property: Lease Property - 43930 San Pablo Avenue, Palm Desert Negotiating Parties: Agency: Lauri Aylaian/Tom Garcia/City of Palm Desert Property Owner: City of Palm Desert Other Parties: Rob Baliew/Family YMCA of the Desert Under Negotiation: x Price x Terms of Payment 2) Property: Lease Property - 43900 San Pablo Avenue, Paim Desert Negotiating Parties: Agency: Lauri Ayiaian/Tom Garcia/Ryan Stendelll City of Palm Desert Property Owner: City of Palm Desert Other Parties: Kevin Kalman/Desert Recreation District Under Negotiation: x Price x Terms of Payment 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 ad}ourned the meeting to Closed Session of the City Council at 3:05 p.m. He reconvened the meeting at 4:12 p.m. V. RECONVENE REGULAR MEETING - 4:00 P.M. A. REPORT ON ACTION FROM CLOSED SESSION. Mr. Hargreaves reported the City Council has approved by unanimous vote an Exclusive Negotiating Agreement (ENA) with Encore Capital Partners, LLC, for the parcel at 54330 Ocotillo Drive, Palm Desert, for the purposes of developing a parking lot structure there. The Agreement will be available tomorrow morning in the City Clerk's Office. VI. PLEDGE OF ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA - Councilmember Jan C. Harnik VII. INVOCATION - Mayor Sabby Jonathan 2 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING SEPTEMBER 27, 2018 VIII. AWARDS AND PRESENTATIONS DRAFT A. PRESENTATION OF PROCLAMATION DECLARING THE SECOND WEEK OF OCTOBER 2018, AND ANNUALLY THEREAFTER, AS "CODE COMPLIANCE OFFICER APPRECIATION WEEK" IN THE CITY OF PALM DESERT. On behalf of the entire City Council, Mayor Jonathan presented the proclamation to Code Compliance Supervisor Pedro Rodriguez and his staff. He added that asking people to observe the rules are not always easy, in fact. at times challenging, but Code Compliance staff does it on a day-to-day basis for the residents. He said this team is effective and the City Council is proud of them and greatly appreciated. Mr. Rodriguez thanked the City Council and the entire community for all its support, because together they are making a great City to work, live and play in. He said their success couldn't be accomplished without the staff and those out in the field. B. PRESENTATION OF PROCLAMATION DECLARING OCTOBER 7 - 13, 2018, AS '`FIRE PREVENTION WEEK" IN THE CITY OF PALM DESERT. On behalf of the entire City Council, Mayor Jonathan presented the proclamation to Division Chief Eddy Moore with the Riverside County Fire Department/Cal Fire. Chief Moore thanked the City Council and staff for their complete dedication to education of fire prevention for the 26 years that Mini -Muster has been going on. With their theory of kids teaching parents, and parents teaching relatives, thousands to millions of lives can be saved if the message gets out through programs and proclamations like the ones Palm Desert has afforded the Department. C. PRESENTATION OF PROCLAMATION DECLARING OCTOBER 2018 AS "FIRE PREVENTION AND MINI -MUSTER MONTH" IN THE CITY OF PALM DESERT. On behalf of the entire City Council, Mayor Jonathan presented the proclamation to Historical Society Mini -Muster Chairman Mike Lewis and Division Chief Eddy Moore. Mr. Lewis noted that for 26 years they have been doing the Mini -Muster Program at five schools teaching 3" graders about fire safety and awareness. They do this in conjunction with Cal Fire through field exercises at the schools, including having a helicopter land on the school at part of the activities, which is very exciting. 3 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING SEPTEMBER 27, 2018 DRAFT Division Chief Moore thanked Mr. Lewis for his dedicated service with the Historical Society and his involvement with the Mini -Muster Program. He appreciates all the fire fighters for the planning involved in getting everything ready for the upcoming weeks of activities at the schools. Additionally, he thanked Desert Sands Unified School District for allowing Cal Fire to come to the schools to teach this program. IX. ORAL COMMUNICATIONS - B MASTER MATTHEW MACIEL, a student from Palm Desert Carter Elementary School, approached the City Council to talk about the Paim Desert Police Officers. He said they are nice officers who help others find lost dogs, including rescuing cats that are stuck in trees. He added that police officers protect kids and he appreciates them. Mayor Jonathan said it was very special to have Master Maciel attend this meeting, adding that if he was the future, the City was in good hands. DR. BRUCE NEWLIN, Palm Desert, noted he recently spoke at the Rotary Club about the "Blue Zones." Many have heard the term "Blue Zones" and wondered what it is and where it came from. In summary, the Blue Zones came from a study outlined in the Journal of Experimental Gerontology; it identified the geographical areas of the world where people lived the longest. They identified the following five areas as Blue Zones: Okinawa, Japan, where females live the longest; Icaria, Greece; Sardinia, Italy; Nicoya, Costa Rica. The area in the United States is Loma Linda, California. He was involved in a project, which is a spinoff of the Blue Zones, which is why he was here before the City Council. His main purpose for coming to the meeting was to encourage the City Council of Palm Desert to take a leadership role in implementing the ideals of the Blue Zones across the entire Coachella Valley. MS. TERRI BONA, Palm Desert, announced that the YMCA of the Desert Y Be Fit Palm Desert Challenge was corning up on October 7, 2018, at 7:00 a.m., at the Aquatic Center, noting Mayor Jonathan started this event five years ago. They currently have Council and 32 City employees participating, but registration is still open. They added something new this year, which is the "Mayor's Cup." it's a challenge where the fastest male and fastest female in the Reverse Triathalon will get an award. She thanked the City for its support and for this partnership that focuses on healthy living in the Coachella Valley. The event will include a Color Run for children and families starting at 9:00 a.m. Afterwards there will be activities, including a Kids Boot Camp provided by the 7th Regiment Marines from Twentynine Palms. If anyone wishes to participate, they can register at ymcaofthedesert.org. 4 DRAFT PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING SEPTEMBER 27, 2018 MR. WALLY MELENDEZ, related that the public Palm Desert Library (PD Library) was shoddy compared to the one in the City of Rancho Mirage, stating the contrast between both is vast. When walking into the Palm Desert Council Chamber, you notice the magnificent and beautiful architecture, yet the PD Library doesn't reflect the same. Additionally, the PD Library shares its space with College of the Desert (COD), and he believes each deserves their own beautiful space, given they sit in the middle of the entire Coachella Valley. Councitmember Harnik noted COD is building their own library and they are in the midst of that planning. MR. BRAD ANDERSON, Rancho Mirage, concurred with Mr. Melendez comments about the Rancho Mirage Library. However, he had an opportunity to talk to the past director, who is long gone now as he has retired, and he didn't have anything favorable to say about the County Library System. Today he came to talk about the Coachella Valley Mosquito and Vector Control District, in that in the City of Palm Springs eight Aedes aegypti mosquito species were detected. He said it's a new technique for the District to apply chemicals instead of feet on the ground, which is required. As a past employee of the District, he knew that in the east valley they cut resources and now they have a big problem. The District is conducting aerial applications in Mecca for the same problem. At a recent City Council meeting in Thermal, he learned that a grammar school had to keep the kids in class, because the mosquitoes were so bad. He emphasized the District needed to put feet on the ground to combat these invasive mosquitoes, and homeowners can do their part by emptying saucers around potted plants and draining any sitting water. It was very suspicious and unusual for the West Nile Mosquito to show up in Palm Desert and Indian Wells, at which time the District used the chemical Evergreen 5-25. This chemical was never used previously, and Palm Desert was the test for it. The City of Indio was the test for the larval mosquito with truck routed applications, which would make it the second time the District used it, and next was Palm Springs. His point is that cities shouldn't be tested upon. PLEASE NOTE: Several speakers came up to the podium at this time to speak about an agenda item under the Housing Authority Agenda, Section X - Old Business, Item A. Please see that portion of the Minutes for their comments. 5 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING SEPTEMBER 27, 2018 DRAFT X. MAYOR AND COUNCILMEMBER REPORTS & REMARKS TO THE COMMUNITY A. CouncilmemberJan C. Harnik Committee Reports and General Comments. 1. Recruitment for the Dean of the Cal State University, San Bernardino - Palm Desert Campus - reported she was on the Committee and they have 50 applicants, which equated to about 20 hours of reading. Mayor Jonathan asked if Councilmember Harnik was representing the City, because he believed it deserved an official voice on the Committee. However, he couldn't recall seeing the City being invited in an official capacity to be on the committee, which he assumed would be the one making the selection. Councilmember Harnik explained she was representing certain facets of the City and the region, because CSUSB is not just for Palm Desert, in that there are a lot of needs across the Valley. She offered to provide a list of the other members on the Committee. Mayor Jonathan commented he was probably more concerned about the process that was taken. 2. Paint El Paseo Pink Event - announced that it will be held on Saturday, October 13, 2018. 3. Leaaue of California Cities (LOCC) Conference - attended the conference where they covered many topics, everything from homelessness, IT, to community programs. Coachella Valley Economic Partnership (CVEP) Summit - encouraged everyone to attend the Summit, which will be held on Thursday, November 8. The Summit will be informative in that they will be discussing the direction the Valley is going and how important it is that cities respond. B. Councilmember Kathleen Kelly Committee Reports and General Comments. 1. Leaaue of California Cities (LOCC)Conference - explained this conference is a major event each year where representatives gather from all the cities in the State. It's a huge opportunity for the City to be efficient by learning, both from other cities failures and successes, because there are nonstop panels sharing those insights. Most on the City Council attended, including several key department heads and staff, stating she was proud for how well Palm Desert was represented. Staff followed up by holding a Study Session where those that attended shared key points that should lead to utilization of 6 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING SEPTEMBER 27, 2018 DRAFT the information gained. She and the Mayor attended a session where the City of Berkeley shared about their homelessness program, and the fact she found most meaningful is that if a community has trained outreach workers who have Behavioral Science Training, and if those people make repeated visits to cultivate trusting relationships, 97% of those they outreached end up entering surfaces that can get them housed. Additionally, creating the support necessary to keep them housed. Mayor Pro Tern Weber reported that as the Voting Delegate representing the City of Palm Desert at the LOCC Conference, Council agreed that she would vote a certain way on a resolution. However, there was a small change to the resolution, which was to remove the word "negative." Therefore, the resolution was approved without the word "negative." MayorJonathan added that the Conference is always informative, and it was great there was a Study Session to debrief and discuss the things that will make the City better. As mentioned by Councilmember Kelly, he attended the Homelessness Sessions, stating he represents the City on the Coachella Valley Association of Governments (CVAG) Homelessness Committee. His takeaway is that when he listens to best practices from other cities, Palm Desert is already there and doing the things talked about. It didn't mean the City should sit back on its success, because it won't. The City is examining this past year and looking at ways to making it better. He won't go into the details of the City's first year of the Housing First Homelessness Program, because HARC (Health Assessment & Research for Communities), who conducted an evaluation of the program, will be at the next City Council meeting an October 11 to give a report to the City Council. He said the report was made available on Monday, and it's amazing, stating it will eventually be posted on the City's website. It is a third -party evaluation that is data driven, and the results are astounding, which was a cause for optimism. C. Councilmember Gina Nestande Committee Reports and General Comments. None D. Mayor Pro Tem Susan Marie Weber Meeting Summaries Report for the Period of August 27 - September 16, 2018. With City Council concurrence, the Meeting Summaries Report was received and filed. 7 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING SEPTEMBER 27, 2018 E. Mayor Sabbv Jonathan Committee Reports and General Comments. 1. Audit. Investment, & Finance Committee - reported that in this past fiscal year that ended June 30, 2018, the City had $61 million in revenues, $55 million in expenditures, and the results were in the black by $6 million. He noted the City has never operated in a deficit situation. Ms. Moore agreed, taking into consideration there is a couple of outstanding appropriations that were in the millions based on property acquisitions Council previously approved. 2. Desert Willow President's Committee - the yearend report of June 30, 2018, indicates it was a record year, both in terms of revenues, operations, and customer satisfaction rating. The year ended from a cash flow standpoint positive to the tune of $750,O00. Those funds go into a reserve for possible future deficits, but also for major capital improvements, which is part of the Tong -term sustainability plan for Desert Willow. F. City Council Reauests for Action, 1. ❑esianated Parkina Spaces for Combat Wounded Veterans - Councilmember Nestande noted it was the norm to have handicap parking spaces across the United States, including in Palm Desert. Additionally, the City has designated parking for Low Energy Vehicles and car pool vehicles. It was brought to her attention that the City should consider providing parking spaces for combat wounded veterans, because more and more cities are designating spaces for them. She said there is an organization that will provide the signs for free, and only requiring the City to install them. 2. Review Costs Associated with Producing Documents Relating to Public Records Requests - Councilmember Harnik stated the City receives, rightly so, requests for public records, It currently charges for each copy made, but not for the time it takes staff to produce them, which at times are voluminous. It would be good to know what those costs are for budgeting purposes, and tax payers deserve to know as well. As a standard operating procedure, along with the request, the cost should accompany what the actual associated costs are for having a staff person conduct the research and for the replication of those documents. It seems the City is receiving more and more requests and the costs should be put in the budget. 8 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING SEPTEMBER 27, 2018 DRAFT 3. Naming of the San Pablo Proiect area - Councilmember Harnik stated that historically the name of that area is Palma Village, which made perfect because of the proximity to the park. Therefore, suggested naming it Palma Village. 4. Revisit the El Paseo Overlay - Councilmember Harnik requested revisiting this 1987 Overlay as to not cause any constraints on the suggested goals of the Gibbs Study, which the City Council accepted. She would like for the Overlay to be current, relevant, and an asset to the Gibbs report rather than a hindrance. 5. City of Palm Desert Banner Program - Mayor Jonathan requested staff research it, provide an update to the City Council, and make any recommendations they wish to make for improving the program. He said other cities advertise special events. He said this came up in a discussion he had with The Living Desert, and they have something very special there. He has seen in some communities, at graduation time, they list students from the honor roll, etc., stating there is an opportunity here to create a sense of community. 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 August 27 - September 14, 2018. With City Council concurrence, the Meeting Summaries Report was received and filed. 2. Request for Appointment of Two Councilmembers to Serve on an Ad Hoc Subcommittee for the Review of Proposals Received for the 1.62 Acres at the Southeast Corner of Fred Waring Drive/San Pablo Avenue. Ms. Aylaian stated that the City is endeavoring to sell the property on the Southeast Corner of Fred Waring Drive and San Pablo to a developer. The City solicited proposals and received three. Staff has technically evaluated the proposals and ranked them. The next phase in considering those proposals is to actually interview the three developers and have them explain in greater detail their concepts and what they would propose to do with the property. In order to evaluate 9 DRAFT PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING SEPTEMBER 27, 2018 them, staff would like for the City Council to appoint two Councilmember to participate in the interviews and/or if all Councilmembers wished to participate, a Study Session could be held where the three developers make their presentation. In either case, the entire City Council could have the benefit of the staff ranking and evaluation, as well as information gathered during the interview process. With more than two Councilmembers indicating they wished to participate, the City Council opted to have a Study Session for the Review of Proposals received for the 1.62 Acres at the Southeast Corner of Fred Waring Drive/San Pablo Avenue. B. City Attorney None C. City Clerk None D. Public Safety 1. Fire Department a) Introduction - Division Chief Moore introduced Brian White, who has been with the Department for 17 years, and 14 of those years have been committed to the Cove Communities in various positions at Indian Wells, Rancho Mirage, and Palm Desert. In his final tour here as the Captain on Truck 33, he is now a Palm Desert Battalion Chief. Battalion Chief Brian White said he was honored to have been selected for this position and looked forward to working with the City Council. The support received from the City Council and citizens has been amazing, and he's excited about what the next 14 years will bring. b) Fire Station No. 33 Open House - Division Chief Moore announced that on October 13, 2018, Fire Station No. 33 will hold an Open House for Fire Prevention Week from 9:00 a.m. to 1:00 p.m. Additionally, they will take part in the Paint El Paseo Pink event on the same day. 10 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING SEPTEMBER 27, 2018 DRAFT 2. Police Department None XII. CONSENT CALENDAR A. MINUTES of the Regular City Council Meeting of September 6, 2018. Rec: Approve as presented. B. CLAIMS AND DEMANDS AGAINST THE CITY TREASURY - Warrants Dated 8/17/2018, 8/24/2018, 8/31/2018, and 9/14/2018. Rec: Approve as presented. C. CLAIMS AND DEMANDS AGAINST THE CITY/HOUSING TREASURIES - Warrants Dated 8/31/2018 and 9/7/2018 (Joint Consideration with the Palm Desert Housing Authority). Rec: Approve as presented. D. APPLICATION FOR ALCOHOLIC BEVERAGE LICENSE by Outback Steakhouse, 72220 Highway 111, Palm Desert. Rec: Receive and file. E. LETTER OF RESIGNATION from Douglas Brewer - Architectural Review Commission. Rec: Receive with very sincere regret. F. REQUEST FOR APPROVAL of an Exception to Palm Desert Municipal Code (P.D.M.C.) Section 9.58.010 - Consumption of Alcoholic Beverages on Public Property far the Sale and Consumption of Alcohol at the Joslyn Center, 73750 Catalina Way, for Fiscal Year 2018-2019. Rec: By Minute Motion, approve/authorize: 1) An exception to P.D.M.C. Section 9.58.010 - Consumption of Alcoholic Beverages on Public Property for the sale and consumption of alcohol at the Joslyn Center, 73750 Catalina Way, for FY 2018-2019; 2) City Manager to execute any California Department of Alcoholic Beverage Control documents, as required. 11 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING SEPTEMBER 27, 2018 DRAFT G. RESOLUTION NO. 2018 - 71 - 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 — Files Dated 1974 - 2009 (Exhibit "A"). Rec: Waive further reading and adopt. H. RESOLUTION NO. 2018 - 72 - A Resolution of the City Council of the City of Palm Desert, California, Supporting Proposition 1, the Veterans and Affordable Housing Bond Act of 2018. Rec: Waive further reading and adopt. I. REQUEST FOR AUTHORIZATION to Reject All Bids for the Street Light Conduit Installation Project and Authorize City Clerk to Re -Advertise (Contract No. C37290, Project No. 599-17). Rec: By Minute Motion: 1) Reject all bids received for the subject project; 2) authorize City Clerk to re -advertise and call for bids for same. J. REQUEST FOR APPROVAL of the Purchase of Taming the Wild West 11 by Tim Shockley from the 2017/2018 El Paseo Exhibition in the Amount of $15,000 (Contract No. C37600). Removed for separate consideration under Section XIII, Consent Items Held Over. Please see that portion of the Minutes for Council discussion and action. Mayor Jonathan requested Item J be removed for separate consideration. Upon motion by Harnik, second by Kelly, and 5-0 vote of the City Council (AYES: Harnik, Kelly, Nestande, Weber, and Jonathan; NOES: None), the remainder of the Consent Calendar was approved as presented. XIII. CONSENT ITEMS HELD OVER J. REQUEST FOR APPROVAL of the Purchase of Taming the Wild West II by Tim Shockley from the 2017/2018 El Paseo Exhibition in the Amount of $15,000 (Contract No. C37600). Mayor Jonathan noted this item addresses a work of art that is being purchased. He's concerned about the proposed location at the corner of Portola Avenue and Haystack. What makes this particular work of art amazingly attractive is the contrast between the nature portion of it and where it sits on an urban street like El Paseo. The proposed site is more of 12 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING SEPTEMBER 27, 2018 DRAFT a natural setting, and he's concerned it won't make the same bold dramatic statement as it does in its present location. Management Analyst Deborah Glickman replied that the Art In Public Places (AIPP) Commission is the body that selected the location. She challenged the Commission with that if they wished to purchase a piece from the exhibition, they would have to find a location that made sense. She personally thought it was a nice location, because it's not an area where the City has public art, adding that people going to The Living Desert would be able to view it. Councilmember Kelly asked if it was reasonable to expect there will be signage for it. Ms. Glickman answered yes, stating the piece will have signage and a pad, it will receive the full public art treatment, which is a requirement for all artwork whether it is developer or City placed. Mayor Pro Tem Weber added that the pictures didn't make it clear this artwork was going to be very visible or that it fit well at the location, because of the nature of the artwork, which is a tumbleweed. Mayor Jonathan moved to, Minute Motion, approve/authorize: 1) Purchase of Taming the Wild West 11 by Tim Shockley from the 2017/2018 El Paseo Exhibition in the amount of $15,000, exclusive of taxes; 2) Mayor to execute a contract for said purchase — funds are available in the FY 2018-2019 Budget in Account No. 4364650-4400100. Motion was seconded by Weber and carried by a 5-0 vote (AYES: Harnik, Kelly, Nestande, Weber, and Jonathan: NOES: None) XIV. RESOLUTIONS A. RESOLUTION NO. 2018 - 73 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, AUTHORIZING THE CITY MANAGER TO ESTABLISH A RESERVE POLICY. Ms. Moore noted this item is on the agenda in order to discuss the Reserve Policy for the City of Palm Desert. In 2008, during one of the worse financial crisis in the history of the nation, the City of Palm Desert enacted a Memorandum Policy for reserving 100°Io of its General Fund Operating Budget as adequate reserves. During that particular event, the City lost 20°I0 of its revenues, but it had a flexible policy that allowed the City to weather that storm, including the next ten years. However, the Government Finance Officers Association (GFOA) recommends looking at the needs and risks to the City's fund balance to make sure you have adequate reserves. Adequate reserves means that you have reviewed things that you don't anticipate happening and things you do. Therefore, staff looked at the City's 13 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING SEPTEMBER 27, 2018 DRAFT unique circumstances, which was the direction given by the GFOA, which is to identify the things that are unique to our City. They do not give a recommendation or a specific number or percentage, because they want to make sure ifs based upon where you are, location, and things that happen in your city are taken into account. Basically, staff is looking at service delivery if it were to have something happen that it didn't anticipate such as operating cash flow, capital projects, facilities, maintenance and equipment replacement. Staff also looked at things such as economic uncertainties like what happened in 2008 or any kind of an emergency. Staff considered an earthquake, but there are all types of emergencies that are not necessarily a catastrophic event nationally or even locally. For example, earlier today in the Study Session, Risk Manager Stephen Aryan mentioned the disastrous wild fires in northern California. Because of what happened, their general fund reserve was almost depleted by that event in a very short amount of time. The other thing that a Qualified Reserve Policy ensures is that it can demonstrate to outside parties the financial health of Palm Desert. While Senator Moorlach conducted an assessment of all cities in California, Palm Desert ranked in the upper top 50, which was a good sign. Palm Desert ranked 36 out of 455 cities. Staff wants to make sure it stays that way, but recognizes it has to identified things it needs going forward. The primary goal of the Reserve Policy is to make sure there are monies available for operational liquidity and to cover anything that might happen immediately. Staff reviewed many types of things that maybe other cities don't, and took into account things Palm Desert has done for the last 30 years. Staff came up with nine categories, which are listed on page 8 of the staff report, and it also identified reserve amounts based on the criteria set for each of the categories. Also included in the staff report is the Reserve Policy itself, shown as Exhibit "1." Exhibit "A" is a summary of all the City's facilities; Palm Desert maintains more than 35 facilities. The City has never done a study to determine what it would need for those 35 facilities going forward, but it was part of this process. As shown in the summary, staff is recommending $30 million+, which is a sizable amount, for those facilities. Many of those reserves are already established and existing, and they are not in the General Fund. Therefore, this amount is not as great as it could have been, if the City had not been prudent in past years. Exhibit "B" was included with the staff report, because one of the reserves talks about employee benefits' reserve. The City has things for current employees that have benefits such as vacation and sick leave, but it also includes post -employment benefits, healthcare and/or pension cost. Exhibit "B" is what is provided to the City Council every year, but it's about two years behind. It's an Amortization Schedule within the Actuarial Report for CaIPERS. The Amortization Schedule is for 30 years, 15 years, and 10 years. It's just a one -page sheet, which can be found behind the Facilities Maintenance Summary. This schedule gives Council an idea of what the numbers would be if the City were to accelerate pension payments and what type of savings it could realize. There is the ability to call CaIPERS and 14 DRAFT PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING SEPTEMBER 27, 2018 change the assumptions, but that's not staff's recommendation at this time. However, she would like Council to consider the fact that a change in the pension discount rate can have a significant impact on the City's annual budget. Throughout the next few years when the City has a surplus, staff will request paying down some portion of pension debt, but it would be brought back to the City Council for consideration and action. The last report, Exhibit "C" is a sample report of the reserve studies conducted for each facility. She only provided a sample of one, because the entire study is about two binders thick. In summary, on page 8 of the staff report, a recommended reserve is shown to be allocated from the General Fund on assigned balance. Also, for illustration purposes, it provides a 75°Io-funded amount and a 50%-funded amount. This would be in the event Council would have wanted to see how much of a change there would be in those assumptions. The first two categories, the General Fund Operating Reserve and Emergency Contingency Reserve would not be recommended to be less than what the policy states, because they are not something you can fluctuate. The City will need 25% in operating cash to start the year, because revenues fluctuate greatly the first part of the year. She said it's three months before the City starts to generate revenue after the first part of the year. The Audit, Investment, & Finance (AIF) Committee reviewed the policy and were very supportive of it, but they did request looking at this policy a year from now to ensure it balances and meets the needs of the City at that time. Mayor Jonathan commented this was an important policy issue with a great de& of depth. Because he has so many questions, he thought a study session may be warranted, even if it meant waiting a month or two, because this lends itself to dialogue and going over charts. He felt this setting was not conducive to that deeper dive and understanding of what exactly the policy is and what the ramifications will be. He asked if Counciimembers would consider continuing this item until a study session was done before taking action on the policy. Councilmember Nestande concurred. Councilmember Kelly said she thought the staff report was extremely clear, and she met with Ms. Moore with her specific questions. However, if her colleagues felt they would benefit from a study session, she would defer. Mayor Jonathan replied he didn't mean to infer the staff report wasn't clear, because it was amazing. In fact, he couldn't thank Director of Finance enough for the great work that was done. It's not about the report itself, but about the issues being addressed. 15 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING SEPTEMBER 27, 2018 DRAFT Mayor Pro Tem Weber recalled a study session where Council reviewed and discussed the importance of this reserve and outlining very similar percentages. Ms. Moore agreed, staff had a study session as part of the Budget process that took place in May. There were discussions about the reserve, but the Policy was not finalized. Staff gave illustrations of the categories and the numbers being anticipated, so it was part in combination with the Budget. The one thing staff would want direction on is the policy and the timing, at least at this point. if the Policy is approved, staff would implement these changes for the Fiscal Year 2017/2018 Financial Statements. If postponed for a study session, which is fine, those would be implemented in the 2018/2019 Financial Statements. Mayor Pro Tem Weber added the Audit, Investment & Finance Committee (AIF) didn't have a lot of time to look at this, but they support it and passed it onto the City Council. However, they wanted the item brought back in a year, because they did not want to delay allocating this into the reserve. Mayor Jonathan stated their vote was to pass this item onto the City Council, essentially without comment. because they didn't have time to study it. Councilmember Kelly asked if there were consequences as to what is implemented for the 2017/2018 year. Ms. Moore responded the only consequences in the Comprehensive Annual Financial Report (CAFR) is that it will be designated differently. Right now when you look at unassigned fund balance, the total listed on page 8, it would show most of the those categories being committed. She said Council would essentially commit those monies to a savings account for those purposes with the exception of operating cash. Otherwise, they will show again as unassigned. Councilmember Kelly questioned if there were any specific consequences if this was postponed. Mayor Pro Tem Weber offered that one of the consequences could be that the State of California keeps confiscating cities funds, and if Palm Desert doesn't designate its funds into a reserve account, they can take it away. She was supportive of passing the proposed policy as soon as possible to eliminate that risk as an immediate action. A study session could be done at a later time, in terms of what was passed, talk about it, and figure out if the City wants to continue with the policy, while involving the AIF Committee, because they want to participate in the discussion. 16 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING SEPTEMBER 27, 2018 DRAFT Mayor Jonathan said when a resolution of this nature is passed that's when funds become restricted. Ms. Moore concurred, stating the funds would be committed. Mayor Jonathan added that by postponing action on this item for a month or two, it wouldn't push this item back a year or two. Ms. Moore agreed, but they won't show in the financial statements. Mayor Jonathan said the City wouldn't be taking a one year risk, it would only be a month or so. He will defer to what the entire City Council wants, but he's warning Council he had a lot of questions, because this policy has so much depth. He commented that he would rather do it right than do it quickly. Councilmember Nestande suggested a study session in two weeks. Responding to question, Ms. Moore clarified that as soon as the City Council takes action, it will show up in the financial records, but it won't show in the Comprehensive Annual Financial Report (CAFR), because staff is getting ready to close those books. This policy was one of the only things they were waiting on. Mayor Pro Tem Weber said it's the CAFRs the State government looks at when they want to take money and just borrow it. Ms. Moore replied she didn't know if that's what they did, because there are various ways that they do it. She could recall they used the Triple Flip, the elimination of redevelopment, and they'll be much more crafty than just looking at the City's fund balance. Most likely they will say that a portion of the Department of Motor Vehicle (DMV) fees will not be paid to the City and withhold those funds for a specific purpose or withhold something else, which wouldn't necessarily have an impact on anything today. Let's say the City adopts this policy three months from now, it would have no impact except it would have to come back to the City Council to consider using monies that are in the Reserve Policy, if in fact there was a large taking from the State. She went on to say there is a fair amount of concern by members of the City Council to hold a study session, stating the policy does not have to be adopted. She brought this forward because staff was directed to make sure it reviewed the policy, which they have, and this was the draft policy. Councilmember Harnik agreed Council has had a lot of concern with having a large reserve, and she appreciates the comments made. And as mentioned by Ms. Moore, Sacramento is crafty and they continually take the cities money to fill the hole they continue to dig. She did a lot of reading and 17 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING SEPTEMBER 27, 2018 came prepared to pass the policy this evening, stating it can always be fine tuned later. She heard from a member on the AIF Committee who is very impressed with this document and went out of their way to say so. If there is some level of discomfort, she will take a step back, but she would feel better if funds were designated. Councilmember Kelly said she was extremely impressed with the work that went into this policy, and it could be that Mayor Jonathan's series of questions would totally reverse things, but the Resolution could be changed at any point. She came to this meeting prepared and is comfortable and enthusiastic about making this allocation the City's starting point. She studied this in some detail and asked specific questions that occurred to her. She wondered if it might achieve everyone's purposes if Council takes action this evening, assuming it's adopted, and plans a study session six months from now to hear whether the utilization of the policy has proceeded as expected. At that time, facilitate any questions about how it might be improved upon. Mayor Jonathan said he liked the suggestion, but he has a lot of questions, and there are items to consider, including taking this step, which he supports. He added there are consequences that Council needed to understand and address, which is why he's looking at that study session. If there is a sense that Council needs to move forward now to protect the assets, he was willing to do that, but he would like to negotiate for something far less than six months. He's not asking staff to do additional work but to be available for a study session to answer questions. At the latest, he would like to have that study session in three months and revisit the resolution. Councilmember Kelly said she would agree if it would help. Councilmember Hamik added that in three months, the City will have a little bit of a track record that may help in answering some of the questions and do some massaging of the different funds. Mayor Jonathan moved to, waive further reading and adopt Resolution 2018-73, with the commitment to revisit this issue via a study session and placed on the Agenda as being requested by the City Council within three months. Motion was seconded by Weber. Mayor Pro Tem Weber extended her sincere thanks to the Finance Department for putting together a document of which Council is very proud of. As mentioned, the AIF Committee was equally impressed with the document. Mayor Jonathan noted this was a subject he enjoyed, but he had to say there are moments, and they are frequent, that make him so proud of the City. It's odd to say the City is cutting edge when talking about finances, but it is. Not 18 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING SEPTEMBER 27, 2018 DRAFT many cities have the luxury of having a reserve that has been build up over 45 years. Ms. Moore pointed out that it was a credit to this Council and past City Council's, including the former Director of Finance and its staff as they have been helpful in the whole process. She said the Finance Department always wants to make sure their policies are up-to-date, and this is a good start. Mayor Jonathan agreed. stating he recently made the comment that this Council stands on the shoulders of giants when it comes to the City's finances. Councilmember Kelly offered it was clear to her that while this effort has been led by the Finance Department, there had to be a lot of participation from staff throughout the City to collect the information about facilities, equipment, and maintenance, so cheers to everybody. Mayor Jonathan called for the vote and the motion carried by a 5-0 vote (AYES: Harnik, Kelly, Nestande, Weber, and Jonathan; NOES: None). Mayor Jonathan called a recess at 6:02 p.m. He resumed the meeting at 6:10 p.m. XV. ORDINANCES A. For introduction: None B. For Adoption: None XVI. NEW BUSINESS A. INFORMATIONAL STATUS UPDATE REGARDING SHORT-TERM RENTALS WITHIN THE CITY OF PALM DESERT AND A REQUEST FOR DIRECTION ABOUT THE INITIATION OF CLARIFICATION TO PALM DESERT MUNICIPAL CODE SECTION 5.10.120(E) - RELATIVE TO IMPOSITION OF FINES. Mr. Stendell recalled for the City Council that at the meeting of December 14, 2017, with enactment of the new policy requirements for the Short -Term Rental (STR) Operations, staff was directed to report back within nine months with a performance evaluation. After covering some of the data collected, staff will be asking for direction if it wished to proceed with one 19 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING SEPTEMBER 27, 2018 DRAFT minor cleanup to the Ordinance. During the public hearings for STRs staff indicated to the City Council it had 36,000 total housing types within the City of Palm Desert. At that time, the City had 1,228 active STR permits. The permit activity year-to-date since reopening the permit process that began in the middle of January 2018, staff has issued 204 new STR permits, which are not in the R-1 and R-2 Zones; issued 30 on -site owner permits that could be located in other zones, but staff confirmed they are within the R-1 and R-2 Zones; lost 97 units due to inactivity or homeowner selling with no new permit being issued. The grand total as of today, the City has 1,365 active STR permits. There has been discussion about how the Planned Residential Zoning District would work, and Council has received correspondence from residents who live in the PR neighborhoods that operate and look identical to an R1 Zoning District. The City has issued 23 permits within the PR Zones since reopening the process. The following is a brief summary on the enforcement strategies and the new STR Ordinance: The City has stricter fines than previously approved. For operational violations there are $1,000, $3,000. and $5,000 fines, up to a $5,000 fine for being unlicensed for STR use, and a three (3) strikes and your out policy where you could lose your permit for an entire 12-month calendar year; implemented a new Swing -Shift Code Compliance Officer who is on duty from 4:00 p.m. to 1:00 a.m. He said Council appropriated adequate funds to enhance the services with two Swing -Shift Officers staggered through the Festival season. He said the City has funds allocated for that purpose; a Professional Services contract with a third -party vendor who essentially scans the Internet 24/7 looking for unlicensed units being advertised. They also host a 24-hour hotline and manage that initial customer intake and then immediately emails out to staff resources. Mayor Jonathan inquired about the calls that come in after 1:00 a.m. Mr. Stendell replied there is someone answering the hotline 24 hours a day. The complaint will be taken, it then goes into an email batch that goes into the hotline email, and it's addressed the next business day. There is a script that the person on the other end of the phone will also let them know that if it's a noise complaint to please call the police. There is a function where you can still call the Sheriff's if you need to, but if it's something other than one of those noise complaints, it will get handled the next business day by a Code Officer. Responding to question, he clarified Code Compliance has staff available seven days a week. On the enforcement side, the City has handled 229 STR cases, issued 59 citations, and 21 of them have been dismissed, suspended, or modified by the hearing officer. The total administrative fines issued have been in excess of $281,000, and $70,000 has been collected to date. Additionally. fourteen liens have been placed on properties for either failure to comply or pay. From the 229 cases, some were legitimate, some were unfounded. and others were case closed, which meant the issue was taken care of. In some cases a citation was issued. 20 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING SEPTEMBER 27, 2018 1RAFT Councilmember Nestande inquired as to the number that were unfounded and how many were for not having a permit, not necessarily creating a noise disturbance. Mr. Stendell replied he didn't have the specific data with the difference between operational and unlicensed, but the lion share has been due to unlicensed use. He believed that in the 59 citations, there was one or two that were actual operational violations. Most of the operational violations, to the credit of the legitimate permit holders, have been handled appropriately. In other words, the City made contact in 30 minutes or less and they remedied the situation, which then goes into the closed case pile. He offered to report back with an informational report. Mayor Pro Tem Weber commented that notice of lien for failure to pay is a public record. Mr. Stendell concurred. Mr. Stendell is requesting a modification to the Ordinance, which is related to the "up to" that is in the Unlicensed Short -Term Rental Permit section. Field staff, Code Compliance Supervisor, and to some extent, the Community Development Director is uncomfortable with that much leeway as far as the range from $1,000 to $3,000 to $5,000. He believed staff found a more appropriate tool, which lies with the hearing officer. The contracted hearing officer has been doing a very good job of hearing each case and making reasonable assessments of each case. In some cases, he left penalties in place, others are suspended with a clause that if there are any operational violations within the next 12 months, not only will the new fines be applicable, but the old ones will come back to the table. The hearing officer is a better tool for looking at how egregious the fine will be. Staff is seeking direction from the City Council about whether or not to remove the "up to" from the City's unlicensed permit for the STR section. Responding to question, he explained that when staff is out in the field, and at the point of contact, staff will say the fine is $5,000, which is appealable to a third -party hearing officer. Mayor Jonathan asked about repeat offenders who are probably thumbing their nose at the City and continuing to operate unlicensed. He asked if they were only subject to a one-time $5,000 total. Mr. Stendell explained there are a couple of situation were that is the case. In fact, one home racked up $50,000 or $60,000 at one point. The homeowner was notified and formal letters were sent. At some point, the City will catch up to them, and there are probably less than five of those type of situations. One of which, staff appears to have a handle on. Every time there is a legitimate reason to go to someone's home, they will confirm whether it's licensed or unlicensed. He agreed some people will try to be sly 21 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING SEPTEMBER 27, 2018 DRAFT about the whole thing. Responding to question, he said anytime staff can make a case that there was a violation, a $5,000 fine can be imposed. Mr. Hargreaves added every day there can be a separate fine, and there have been instances where that is the case. For comparison purposes, in Miami Beach, the fine is $20,000 per incident. People have incurred fines for hundreds and thousands of dollars, which includes litigation. This is a problem that's not only happening in the United States, it's happening ail over the world. Mr. Stendell reiterated staff was only making one actionable item relating to the "up to" language being removed, and the third action was to take any final direction on this matter. He pointed out the staff report included matrixes, and correspondence from residents who are in the PR Zoning Districts. Staff indicated in the staff report that while there have been some new permits issued in the PR Zoning Districts, there hasn't been an extreme amount of calls for service in those areas. At this point, staff is recommending a wait and see approach with the non -gated PR Zones and continue to monitor. If there is an increase in permit issuance, staff will bring back for the City Council to review. Councilmember Nestande referencing the 59 citations, she understood staff couldn't break them down between the R1 and R2 versus Planned Residential, Mr. Stendell replied he couldn't do it this evening, but he could bring back a report to the City Council with those data points. Mayor Jonathan addressing the comment about the STR in the neighborhoods that function as R1 and R2, but are zoned Planned Residential, questioned what option did the City have if it wished to remedy that situation. The Ordinance currently allows STRs in Planned Residential and Council wouldn't want to wholesale and say they are no longer allowed because that would eliminate all of them. Mr. Stendell responded there are a few options, which is why staff is suggesting waiting to see, and maybe it won't be an issue. Council could certainly exercise zoning authority, but it's not a recommended action by staff, because there maybe some unintended consequences. Within the PR District, Council would have to define a non -gated PR Zoning District and limit the STRs to only the gated communities, but that too could have unintended consequences, because there are other PR Districts that don't have gates. It's a tough one, and there are no great answers from staff's perspective. Additionally, staff was not seeing a high -volume of complaints drive out of there, so at this point, he doesn't want to over complicate things. 22 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING SEPTEMBER 27, 2018 DRAFT Councilmember Kelly stated one of the factors influential for her when Council decided to treat Planned Residential neighborhoods differently, was the expectation on her part that typically PR neighborhoods have a homeowner's association through which they can self -regulate. She asked if the four neighborhoods listed in the staff report have an HOA. Mr. Stendell responded that a few do and others have a Landscape & Lighting Assessment (LLA). It's one of the complicating factors, because on Shepherd Lane there are a few that have their own unique HOA. Further responding, he wasn't certain whether the homes in The Grove or Lavender Way had an HOA. Councilmember Nestande offered that Lavender Way is a Landscape & Lighting District, recalling the issue with the Palm Trees where the City had to decide whether to cut them all down or have the neighbors vote to have a special assessment. Councilmember Kelly said it was her perception that with the RI neighborhood, Code has tried to identify some properties where there are recurring problems and taking the initiative to follow up on those during the course of a regular shift instead of waiting for a complaint. Mr. Stendell concurred. Councilmember Kelly wondered if staff had contacted the individuals who have communicated with the City from the Shepherd Lane neighborhoods to identify any properties that should be added to that list. Mr, Stendell answered yes, stating staff keeps adding to the list and including them in their route when monitoring homes. Further responding, he confirmed that if there are individuals who have contacted the City, staff has followed up with them. Councilmember Kelly inquired about the total percentage of STRs in each of the four neighborhoods, because with Shepherd Lane, the new permits are getting close to matching the existing permits, and there appears to be a surge compared to some of the others. Mr. Stendell offered to come back with a map on each one of the specific areas, because on Shepherd Lane it might appear the increase is high, but in each one of the five acre parcels is16 homes, and it's replicated about ten times. Because this is an informational item, staff can follow up with a memo to these outstanding items or bring back at a future City Council meeting. Mayor Pro Tem Weber asked about the 59 citations, and if some of those were from these four districts. 23 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING SEPTEMBER 27, 2018 DRAFT Mr. Stendell explained that the citations can be from anywhere throughout the City in various locations. Councilmember Nestande added there is more Planned Residential beyond these four districts. Councilmember Harnik questioned what causes those four districts to be zoned Planned Residential, because if she was at The Grove, she's not going to think that neighborhood was an R1 Zone, so she's trying to figure out how the City could apply it. Mr. Stendell said it was a color on the map, it was pre -zoned at some point as a PR District, and a lot of the north area of the City was originally conceptualized under a Planned Residential District, which was really the best answer he could give in that regard. Further responding, he said Palm Desert didn't have the uniqueness of this situation occurring elsewhere in the City. if you do, it's going to be on a couple of small parcels. Mayor Jonathan invited public testimony. MS. RENEE MONTANTE, Chinook Circle, Palm Desert, stated she lived in the Shepherd Lane neighborhood. She said many on the City Council have probably already received her letter regarding this issue. As a Palm Desert resident, on and off, since 1970, she's witnessed a lot of changes and growth, and most of it has been very good. However, more STRs seem to be popping up more frequently in her neighborhood, and she and others are becoming increasingly frustrated. Every weekend she is making calls to the hotline, but she doesn't know why it's not being reflected. She has a system where she calls the hotline, and if in 30 minutes nothing is done, she will call again. She would be supportive of an amendment that would include non -gated Planned Residential in the R1 and R2 designation, because it implies stricter enforcement, which may better equip Code Compliance when responding to complaints. She moved into her homes because of the peacefulness of it, but now she and her husband are calling the hotline every weekend because of the loud noise coming from next door. She is not saying Code Enforcement hasn't come out, because when they cal! the Vacation Hotline, they are responsive and there is a difference. Therefore, something is getting done, but she's not sure why their calls are not being logged. Additionally, she supports the removal of the "up to" language to the fines as recommended by staff in the hopes that it will alleviate some of the issues. She urged the City Council to amend the non -gated Planned Residential areas into the R1 and R2 designation, so that they too can get some relief. Responding to question, she said her neighborhood, which is referred to The Sundance Neighborhood, does not have an HOA. She explained there are about 10 to 12 streets in the Shepherd neighborhood, and every couple of streets is a different developer. Over the years, different 24 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING SEPTEMBER 27, 2018 DRAFT developers came to develop either half or the entire street, but when she moved into the neighborhood there were vacant areas that are now fully developed. Currently, there are no vacant lots between Frank Sinatra and Julie Drive off of Shepherd Lane. She understands there are a couple of streets that do have an HOA, but where she lives is still non -gated. MR. GREG BALL offered that he was a writer and lawyer from Canada. He thanked the City Council for the opportunity to address them directly, stating he hoped Council will entertain a global comment about the sunset clause that will go into effect in 2019. He implored that Council considers some changes, because it will effectively mean he would have to sell his vacation home. In summary, nine years ago he purchased a home that was in foreclosure, he invested $1 00,000 into the home, and obtained a rental license. He said he runs a tight ship, never has had a compliant, and he pays his taxes, and is happy to do so. He did his part to refurbish his home and his guests/tenants know not to cause any violations. He felt he has done everything right, but he will have to sell and leave the home he absolutely loves, because this was a question of math. He respects and understands those who have a bad neighbor, and maybe the City has to be stricter. He suggested that instead of three strikes, it could be two strikes and/or increase the fine. He asked the City Council not to drive responsible people out of this beautiful City. MS. NICOLE ZAMBON, Verba Santa Drive, Palm Desert, stated she manages 35 vacation rentals in the area with only a couple in the R1 and a couple in the PR that are single-family homes with a pool. Every summer she tries to plot her escape from the heat, and is shocked in the amount of inquiries and booking she receives for five nights, a week, or two weeks, even in the summer. She has a lot of Canadian guests who come with their families, and they are good guests. She was not in favor of the absolute ban that will go into effect in 2019, proposing existing STRs be grandfathered. She also suggested increasing the nightly minimum to four or five nights, stating they will lose a lot of bookings, but the City won't get the party crowds. However, the City didn't need to shun the guests that are being good and staying for a week or two, Additionally, during the months of November and December, not everyone stays for an entire month, so she didn't think it was necessary to make it so strict. MS. LOUISA DAVIS, Palm Desert, requested Council take a second look at the ban as she was not in favor of it. Last week a City employee was asked if they thought what had happened in Palm Springs will impact what will happen in Palm Desert, and the employee said "We don't care what happened in Palm Springs." That response really disturbed her, because the City of Palm Springs really believed their citizens wanted to get rid of the vacation rentals, but that's not what happened. She hopes the Palm Desert City Council doesn't reflect their employee's sentiment, because just maybe, 25 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING SEPTEMBER 27, 2018 DRAFT 68% of the residents might feel the same way as the ones in Palm Springs. As a team, she hopes the City Council will look at the numbers and the data and recognize that vacation rentals contribute to the vibrancy of El Paseo, the community, and tourism. She said every business has a problem, but it's how you solve it. She went on to say the Palm Springs City Council was shocked to find out that when the final numbers came in, 70% of its residents were in favor of vacation rentals, and maybe 70°I0 of Palm Desert residents will vote the same way. MS. DEBBIE HOUSTON, Scotland, Palm Desert, as a homeowner with a STR in the R1 and R2 neighborhood, in nine years, she has never had a complaint. She has invested more than $1.5 million in the home and City economy. She has done things correctly from the very start in obtaining a license, took part in the STR discussion in 2012, receives five-star reviews, and she is loved and welcomed by the neighbors, stores, and restaurants, because she promotes staying locally. On December 31, 2019, a quarter of the STR visitors in the R1 and R1 Zones will no longer be welcomed in Palm Desert. Based on 306 permits in the R1 and R2 zones, 1,800 people per day will not be visiting El Paseo, restaurants, entertainment, etc., stating it was a disaster. Although she doesn't go to Palm Springs very often, she recently went to have brunch, and boy do they have it going on over there. It was buzzing and full of energy, and it felt new, exciting, and fresh. When she came home along El Paseo, she felt Palm Desert was in trouble if it follows through with the ban. She asked the City Council to consider what is best for Palm Desert and the City as a whole. She added that all residents need to be asked about how they will be affected, otherwise Council will be doing a great disservice to the City. Lastly, she said Council should work together for a compromise to avoid irreparable damage to the City. MS. TRACY JACKSON, Pinyon Street, Palm Desert, noted she had five STR properties operating with a permit and following all the rules. She didn't want to be forced to be in a position where she had to sell them, requesting Council reconsiders the concept of grandfathering existing STR. She recalled that when Councilmember Harnik was the Mayor, she mentioned this whole situation would calm down after nine months and it turns out she was right. She's hoping that the experience of the past nine months will have some kind of an impact on the City Council to acknowledge that enforcement has improved the circumstances for the R1 and R2 neighbors and residents. She was pleased to hear there was only one licensed STR operator who was issued a citation out of the 59 citations; the rest were from unlicensed rentals, which no one wants. Therefore, those operating above board and paying their Transient Occupancy Tax (T.O.T.) will be penalized and forced to sell, and it will be a hardship despite the presence of the Hardship Extension Application. The Hardship Extension Application is the most onerous document she has ever seen, in terms of complying with all the information, and it's about 150 hours worth of work, which can cost 26 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING SEPTEMBER 27, 2018 DRAFT $10,000 to $15,000; it's extremely taxing on staff as well. For the reasons mentioned, Council should reconsider extending the deadline to see if the enforcement will continue to improve over time. MS. LESLIE MILLER, Gold Flower, Palm Desert, supported the previous speaker's comment. She said she has two rental properties, but she has a master landlord, so she doesn't deal with the day-to-day tasks. She said they obey all the rules, and she too would like Council to reconsider the ban. She participated in the City's 20-year Plan, and the San Pablo Development for another corridor, and it's clear to her, everyone wants Palm Desert to the center of the Valley to attract more business and the merchants want that as well. However, the STR ban is a dent in that idea. She made the following five points: 1) The west of the City is going in the direction of increased rentals and revenue in all areas; 2) last year she suggested that enforcement was the answer, and she's delighted to see that it's working. Enforcement will continue, whether or not all the new applications and new permits are cancelled, so it doesn't get rid of that revenue; 3) revenue for the City has never been identified. She noticed the City's website now includes OpenGov, showing revenue and expenditures, but she hasn't seen an itemization on how much money is actually attributable to STRs. Also, how is the City proposing to make up for the deficiency brought upon this Ordinance; 4) the City may consider rewarding STR homeowners that comply by grandfathering them in, because they will eventually disappear through attrition; 5) suggested a meeting with those in favor and opposed to STRs with a representative of the City to iron out all the issues. Mayor Jonathan noted staff has data with regard to T.Q.T., specifically from STRs. In fact, it has gone up year-to-year modestly. In the first seven months of this year compared to the first seven months of last year, the increase is about 1 %. Mr. Stendell said he would contact Ms. Miller to provide her with the data. MS. TAMMIE BAKER extended her sympathies to those having difficulty with their neighbors and agreed it cannot be ignored. She asked Council to grandfather responsible homeowners. She and her husband determined it was difficult for them to maintain a lifestyle in Palm Desert year round because he was in the service industry. Because they struggled every summer, they accepted a position in Washington. The minute they obtained their permit, they invested more than $150,000 into their home for a STR. A short three years later, they were informed they could no longer operate once the sunset clause sets in. They have tried twice to sell their property for the amount its worth, but they may have made their house too nice for the neighborhood. She agrees that the process by which they have to prove their hardship is absolutely daunting and devastating to her family. They have a management company that greets the guest at the front door, and if 27 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING SEPTEMBER 27, 2018 DRAFT there are any problems they are to be contacted, but they have never had one complaint. She added that she vets her guests, she knows them personally, and she pays the T.O.T. She has the blessing in written consent from every single neighbor. She said she could lose the STR in Palm Desert and her home in Washington, because some of the income from there helps pay for the one in Palm Desert, so she could lose both. She reiterated that they have tried to sell their home twice now, and it's currently listed, and if it doesn't sell it's a great hardship for her family. She asked that the City Council grandfather those that are following the rules. MR. JIM KANE, Skyward Way, Palm Desert, thanked the City Council for doing a remarkable job with the passing of last year's Ordinance, adding it was ongoing, because it was a work in progress. He urged Council to stay the course. He can sympathize with those who requesting to be grandfathered and/or granted an extension, but Council needs to be careful with those requests. He just came back from the Monterey Peninsula, and every city there is dealing with the same thing. Their arguments are the same ones he heard debated here in Palm Desert last year. He said Council needed to be alert to a scam within the industry, in that many of the homes that have been renovated are being occupied by friends and family. He said there will always be bootleggers, so the City is to double its efforts with code enforcement. He thanked the City Council for their efforts on this matter. MR. JOHN CURRAN, Somera Road, Palm Desert, rioted he wasn't prepared to speak this evening but he heard a few things this evening that compelled him to make a couple of remarks, He pointed out the vote in Palm Springs was not exactly 68% of the voters, it was 68% of the people that voted, which was relatively a small number of the total voters registered. Secondly, everyone probably knows how much money Airbnb gave to those who advocated STRs, which was about $750,000. The residents fighting it only had a few thousand dollars and couldn't buy television time. Further, the ads were bogus and untrue. They frighten people to vote in favor of keeping STRs. Also, he happens to know that Ms. Tracy Jackson owns four or five lovely houses in Palm Desert, and he's sure they are beautifully managed and probably no complaints there. However, the irony of going to Vancouver, British Columbia where she lives, Airbnb and Uber are not permitted. The regulations in her own hometown are much tougher than the ones here. The issues of grandfathering is a tempting thing to look at, but a lot of these houses are owned by a Corporation, and they don't die. Some of these people who live in STRs will institute dodges, so that when they pass away, the ownership doesn't. If Council is tempted to consider a grandfather clause, it should rely on the City Attorney to make sure it means what it states. 28 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING SEPTEMBER 27, 2018 DRAFT MR. BRUCE POYNTER, Calliandra Street, Palm Desert, thanked the City Council for the STR Ordinance the City passed last year, stating it's greatly appreciated. His three person friends from Palm Springs have told him their neighborhood has been destroyed, and that it was a disaster. One elderly woman said she was scared every weekend. Therefore, on behalf of the Palm Desert residents, he thanked the City Council, Councilmember Nestande stated that with regard to the 59 citations, if most of them were because they didn't have permits, it tells her that enforcement and the stricter penalties are working. She understands Council was not revisiting the Ordinance, but she felt she needed to speak to it. Last year, she and Councilmember Kelly met with all interested parties on STRs, and they met for months. She believed they came up with a good compromise that would limit STRs in the R1 and R2 to a 7% or 8% density, and it seemed like a good policy that everybody was happy with, but somehow it went sideways to a complete ban. She respects her colleagues on the City Council on how they voted, so she wasn't trying to get them to change their mind, but perhaps this issue needs to go to the voters. Therefore, if people want to put this issue on the ballot, they would need to obtain about 2,000 signatures to get it on the ballot for the 2020 election. She believes there are good people on both sides, and Council is in a very difficult situation sitting here. Councilmember Kelly said she will not recount all her thoughts about STRs, because Council was not here to revisit the issue, and everyone has acknowledged it was a very difficult process, which produced three public hearings with very late night sessions and complete deliberation. Her perception is that the greatest gift Council can give everyone at this point, is complete certainty and predictability, which is accomplished by staying the course and folks can order their lives accordingly. On a personal level, she hears what the folks are saying about the impacts. This past year, Council has heard from countless people about impacts. Council made a difficult decision and struck a balance as best they could. Therefore, at this time she is supportive of staff's recommendation with the change to the language by removing the "up to" with regard to the fines. Councilmember Harnik agreed with Councilmember Kelly's comments, and it's a matter that will continue to be monitored. Three years ago this never would have been an issue, and three years from now who knows what the issue will be. Council will continue to try to make the best balance possible. She said the City has spent more money and time on this, and it's been a success. In fact, she will go as far as saying that more money has been spent on enforcement than is generated by it. She was supportive of staff's recommendation. 29 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING SEPTEMBER 27, 2018 DRAFT Councilmember Nestande asked for clarification on the comment just made that the City is spending more on enforcement than it's generating on T.O.T on STRs. Mr. Stendell replied he would have to do an analysis of staff time, but he did pull out preliminary numbers as mentioned by the Mayor, the City does take in about $1.35 million annually. He doesn't believe staff spends that kind of money on enforcement, but there is a significant effort at all levels at City Hall that deals with STRs. Councilmember Harnik pointed out that costs included police services. Councilmember Nestande added the City had to factor in those people that are shopping and frequenting businesses, so we have that as added income not in the STR column. Mr. Stendell recalled for the City Council that when the City first started this conversation, it talked about looking at this from a community development standpoint and not in dollars and cents. If you are looking at this from a community development lens, the finance side is secondary. It's about what's best for the community irrespective of the financial side of it. Councilmember Nestande said she was thinking about all the businesses along El Paseo and elsewhere that tells her they have such a hard time making profitability, especially during the four months that are hot, May through October. Many of those people live and work here in the Desert, so it is about community. Councilmember Harnik said people shouldn't forget that Palm Desert has been a seasonal community since the inception, and protecting the integrity of neighborhoods was one of the goals, and leaving 80°Io of the housing stock open to STRs was a very laudable balance. Mayor Pro Tem Weber interjected, stating that if Council was going to discuss this issue, she would like it to be noticed on a Council agenda. She's under the impression this evening was only about clarification of the Municipal Code relative to the imposition of the fines. Discussing an issue where other people have not been noticed so they can provide input seems inappropriate. She supports staff's recommendation, and if staff needs a motion to come back with a resolution, she approves that as well. Mayor Pro Tem Weber moved to, by Minute Motion: 1) Receive and file a status update regarding Short -Term Rentals (STRs) as directed by the City Council at its regular meeting of December 14, 2017; 2) direct staff to prepare a Zoning Ordinance Amendment (ZOA) to Section 5.10.120(E) of the Palm Desert Municipal Code, removing language "up to" five thousand dollars. Motion was seconded by Kelly. 30 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING SEPTEMBER 27, 2018 Councilmember Harnik concurred. DRAFT Mayor Jonathan agreed that Council was not here to debate the wisdom of the substance of the Ordinance, because it's been done. However, with regard to the financial impact, the City is doing an update. It's interesting to note, because Council did hear doom and gloom predictions that El Paseo will be empty and it will lose all its STRs and T.D.T. revenue, but in fact, the data does not support it and it's quite the opposite. As indicated in the staff report, the number of STRs permits, in spite of the transition in the R1 and R2 Zones and the elimination of STR permits, the total number of permits has gone up. Therefore, there are more STRs in the City before adopting the Ordinance in January 2018. Additionally, the revenue has gone up, so if there are El Paseo shop keepers or other businesses crying ghost town, etc., they are just wrong. There are more STR permits and more T.O.T. revenue from STRs, which is what the data illustrates. In terms on how the Ordinance is working, the number of permits has gone up, revenue has gone up, and problems have gorse down. Mayor Pro Tem Weber pointed out that there was nothing in the staff report that talks about the revenue. It only addresses the number of permits issued, so if Council wishes to discuss finances, she would ask that it should be noticed so that other people can comment. Mayor Jonathan said he prefaced his comments by saying Council was here to discuss the current status of the STR Ordinance and all its ramifications. The current status indicates to him that the intent of the Ordinance is working as hoped for and in some ways even better. The tweaking that's being recommended by staff is acceptable. However, he believed staff needs to look at those residential zones that actually appear, look, and function as R1 and R2 and further tweaking may be needed. The issue presents challenges, because making a change there has certain ramifications. He doesn't have a solution, but it's been brought up as an issue and worthy of further consideration. Councilmember Harnik stated that as the City goes forward with the Black Rock property and planning, let's be aware of this issue with the Planned Residential and R1 and R2 to avoid running into these issues with any new developments. Councilmember Kelly noticed that staff was asked quite a few questions about the four neighborhoods listed in the staff report, and she heard an assurance that staff would investigate further, so it doesn't need to be included in the motion. Mayor Jonathan said he was okay in not amending the motion, he just hopes staff studies it and Council hears back, particularly addressing questions like 31 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING SEPTEMBER 27, 2018 DRAFT how many homes are we talking about, how many of them already have HOA's that can govern their own destiny on STRs. Further, if there is going to be a change, how will it be accomplished. Mayor Pro Tem Weber asked for clarification from the City Attorney, because MayorJonathan is bringing up issues and couching them in funny little terms, which is not really fair. She said Council doesn't have facts or figures and grabbing numbers out of the air didn't seem fair. Although, staff is getting it from their computer. She's very uncomfortable when Council digresses from what it's suppose to discuss and starts bringing in their own comments, because it doesn't allow the public the opportunity to come in with their own. She is also uncomfortable when Mayor Jonathan asks her to listen, because she was listening, which is why she made her comments about how he slides things into the conversation. It's very creative, and she appreciates learning from the Mayor, but she didn't care for that part very much at all. Again, if Council is giving direction to staff to do other things, then it needs to be noticed. She said this item was merely an informational status and about the fines. Mr. Hargreaves explained that the update is pretty much open ended, but if you look at the recommendation, the third item is to provide additional directive to staff relative to STRs. The intent this evening was to open it up and find out where people want it to go. It's not teed up for Council to take action this evening other than initiate exploration in a different direction. Before any action is taken on whether its changing these neighborhoods, there will need to be noticed hearings, etc. If there is going to be an ordinance change, there will be two hearings and an elaborate process. There will be Tots of opportunities for people to offer their comments. It's his understanding that this evening was about having an open discussion and finding out where Council stood and where the community was at, and gets an idea of the changes people might want to try to make. Mayor Jonathan and Mayor Pro Tem Weber continued to debate and express themselves regarding the issue of discussing topics that may appear to be outside the confines of what was noticed and staffs recommendation. Mayor Jonathan called for the vote and the motion carried by a 5-0 vote (AYES: Harnik, Kelly, Nestande, Weber, and Jonathan; NOES: None). 32 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING SEPTEMBER 27, 2018 DRAFT B, REQUEST FOR AUTHORIZATION TO ISSUE A REQUEST FOR PROPOSALS (RFP) FOR A USER FEE AND FULL COST ALLOCATION FEE STUDY (CONTRACT NO. C37610). Ms. Moore stated the last Cost of Service Study was done in 2004. Since then the City has been updating the fee about every other year based on a model, which had been done up until 2012. At that time, Council's desire was to hold many of the fees constant because they felt it had some impact in the development in Palm Desert. Therefore, since that time the City has not changed its fees or updated them. Whether they are high or low, staff has done nothing to them. A goal for 2018 was to look at the commencement of the process fora fee study. The proposed request this evening is for the City Council to authorize staff to go out for a Request for Proposal (RFP) to get a consultant to conduct the study. The staff report includes all of the City's existing fees, and the last few pages were provided by the Desert Valleys Builders Association (DVBA). She contacted them about helping the City with this information that summarizes other Valley cities' fees. It provides context for where Palm Desert stands among other cities. It also notes what Palm Desert's fees were in 2007 versus 2017. This study will take a fair amount of time to conduct, and if Council approves going out for RFP, it will come back for award of contract. Because so many departments are involved, one of the goals is to consider streamlining or consolidating the fees. There are many fees that are only pennies different. Staff found that with the new City's software for the Community Development Department, some of the fees were difficult to implement, because there were many different fees for similar services. Going back to Government Finance Officers Association (GFOA) best practices, they recommend a study to be done from time to time to avoid a big change in fees. Based on her conversation with the DVBA, Palm Desert is right in line, but going forward it will try to streamline. Staff is looking for direction in going out for a RFP, but it will take some time to complete the study once a consultant is hired, because it will require going through every single fee in every department. Mayor Pro Tem Weber recalled adjusting the user fees in 2010 and 2012, but when people tell her the City makes a lot of money off the fees, she's always quick to remind them that it's only trying to recoup cost. Is she correct in thinking that the City is not making a profit but actually just trying to recoup its cost. Ms. Moore agreed, stating staff looks at what it would cost to provide a service to the public when a citizen comes up to the counter, but also making sure they don't have to pay for a service if not needed. Mayor Jonathan noticed that in the Development Impact Fee of the staff report, it looks like the study will include developer impact fees, but then the last sentence of that paragraph indicates otherwise. 33 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING SEPTEMBER 27, 2018 DRAFT Ms. Moore explained that Developer Impact Fees (DIF) are not included in this study. The consultant will conduct a review of them for the purpose of providing the City a comprehensive idea of what the total fees are when getting a permit over the counter, but those are already set by resolution. The only fee that may be looked at is the Fire Fee, which is a fire inspection fee. The City does have a DIF that is for fire facilities. Again, the consultant will look at those fees, but it's not intended to be a study on DIF. Mayor Jonathan thought DIF are the lion share of the fees paid by a developer when processing an application. Ms. Moore agreed it was a fair amount of the fees, but DIF are dedicated to specific things like parks, drainage, traffic safety, signalization, etc. Those are actual cost that have been identified. This study is for services that a City staff member provides when someone walks in the door over the counter. Mayor Jonathan asked when was the last time staff compared the fees to the actual need, cost, etc., stating there has to be a nexus for the fees that are being charged. Ms. Moore offered that some fees have not been looked at in quite some time, and others are independent single fees that are adopted at one time. She has reviewed several of the resolutions and they go back to when they were initiated. It may be something that could be looked at, but that would be looking at different things beside cost allocation of City staff. Mayor Jonathan said it just struck him to do a wholesale review of all the fees that developers pay, because he knew it was a hot button issue for the development community through the ❑VBA and Builders Industry Association (BIA) as well. He said there is recent legislation that mandates certain reviews. He asked if staff felt it didn't need to do the whole thing at this time and just focus on the ❑nes ❑utlined for the RFP. Ms. Moore recommended only looking at the staff allocation. The City's ❑evelopment Impact Fee Report will be coming to the City Council in the next couple of months for the year. She added staff does its best to utilize those fees, but in some, the project is larger than the fee will generate over a period of time. As an example, with the park fee, it will take significant monies in the DIF in ❑rder t❑ create a park or put one ❑ut in the north area. However, there are no rooftops to support that park yet. Overtime, rooftops are expected to come in at the current fee that will help develop that park. Mayor Jonathan stated that on the other hand, when Council went through the budget process, there were funds that hadn't been utilized and under pressure to disburse or have to refund them, stating a little tweaking might 34 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING SEPTEMBER 27, 2018 DRAFT be in order. However, if staff is saying DIF will be reviewed in a couple of months separately rather than incorporating them into a single contract, he will defer to staff's recommendation. Ms. Moore offered that in the meantime, staff will look at those accounts to see if there is a reason to revisit those fees at this time. Further responding, she said her estimation of the cost of the study will be somewhere between $75,000 and $100,000, but if the amount is out of that range, staff will be asking the City Council to consider it as an appropriation. However, at this time, she believed that $75,000 or $100,00 can be covered by the savings that is within the budget that everyone is already aware of, such as the many vacant positions that are still not filled. Currently, the City is going through the process of filling them, but the positions have been vacant for three months. Mayor Jonathan asked if the City has a policy for expenditures that are not part of the budget and/or does it just come as a separate item when staff requests appropriation. Ms. Moore explained that staff will come to the City Council for an appropriation when funds are needed. The budget is actually an estimate by department, and if that department can cover the expenditure, it won't come to Council, but will then fall within the City Manager's responsibility. At this point, there was savings across the board that can be used toward the proposed study if Council wishes to undertake it. Mayor Pro Tem Weber asked if staff was studying the fees with a consultant because it doesn't have the staff to do it, questioning if this now becomes part of the cost of those fees it has to cover. Ms. Moore explained that staff would have given a general and broad review of what it takes to provide a level of service. They would not have included the cost of the study because that would represent a spike in the cost. Counciimember Kelly moved to, by Minute Motion, authorize issuance of a Request for Proposals (RFP) for a User Fee and Full Cost Allocation Fee Study. Motion was seconded by Nestande. Councilmember Harnik commented she appreciated staff saying they will be simplifying the fees. Mayor Jonathan called for the vote and the motion carried by a 5-0 vote (AYES: Harnik, Kelly. Nestande, Weber, and Jonathan; NOES: None). 35 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING SEPTEMBER 27, 2018 DRAFT C. REQUEST FOR AWARD OF CONTRACT TO GREAT WESTERN RECREATION, LLC, FOR REPLACEMENT OF THE JOE MANN PARK PLAYGROUND EQUIPMENT IN THE TOTAL AMOUNT OF $215,179 (CONTRACT NO. C37620). Mr. Garcia stated that in late 2017, the City received a $75,000 grant under the housing related parks program for rehabilitation of parks and equipment. Joe Mann Park was selected as a top priority as the equipment in the park was about 20 years old. The new equipment is designed to be inclusive and for children in the 2- to 5-year-old age ranges. It will have rubber surfacing for wheelchair access and include shade structures. The existing equipment will be donated to Father's Heart Ranch in Desert Hot Springs. Councilmember Harnik inquired about the donation, questioning if the City was going to pay for part of it to be moved and installed. Mr. Garcia explained the City will pay for the disassembly and Father's Heart Ranch will pay for the moving and re -assembly. He added that there is a $17,000 cost involved, but it's reduced by $4,000, which will be credited to the City for not disposing of the equipment. Councilmember Harnik stated she loved the concept of donating it to Father's Heart Ranch, but questioned whether the City was spending public dollars on a religious institution. Mayor Jonathan offered that he went onto the website and it's clearly a religious -based institution. Mr. Hargreaves pointed out that the City has made other contributions to other organizations that have religious purposes, and the analysis ends up focusing on what is the purpose of that equipment. If it's a non -secular purpose and for kids to play, then it's not such a problem. If it's to provide a place for worship on play equipment, then that becomes a problem. Councilmember Harnik said that worked for her. Mr. Hargreaves added there are different examples here in Palm Desert where the City has provided facilities and equipment to churches. For example, if you look at the YMCA (Young Men's Christian Association), it's right there in its name. It's not so much the characterization of the organization as it is to the use of the equipment and whether that facilitates a religious purpose. There is another aspect on whether the City becomes entangled with a religious organization. Mayor Pro Tem Weber questioned how the City selected Father's Heart Ranch. 36 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING SEPTEMBER 27, 2018 DRAFT Mr. Garcia replied that Father's Heart Ranch approached the City with a proposal to take the equipment. Ms. Aylaian explained that staff went through an exhausted process in looking for an organization that could use it, take it, and would indemnify the City. Staff looked at donating to one of the Sister Cities, Martha's Village, and other organizations in the eastern end of the Valley. In the end there were two interested, but ultimately only one accepted to pay to have it moved, reinstalled, and would indemnify the City from any potential accidents that might occur on it, because it no longer meets the current guidelines for playground equipment for children. Councilmember Nestande said it was a worthy cause. Councilmember Nestande moved to, by Minute Motion: 1) Award subject contract to Great Western Recreation, LLC, Logan, Utah, for the installation of `inclusive' playground equipment at Joe Mann Park in the total amount of $215,179 under the U.S. Communities Agreement (Contract No. 2017001134), pursuant to Section 3.30.160(H) of the Palm Desert Municipal Code; 2) authorize the Director of Finance to set aside an additional 20°Io contingency for the project in the amount of $43,036; 3) appropriate $226,693 from Unobligated General Fund to Account No. 1104618-4400100 for this project; 4) authorize use of $31,522 from Park Fund Account No. 2334618-4400100; 5) authorize use of $17,063 from the CIP Park and Recreation Facility Fund 430 for removal of the existing equipment; 6) authorize use of Housing Related Parks Grant in the amount of $75,000; 7) declare existing playground equipment as surplus and authorize its donation to Father's Heart Ranch in Desert Hot Springs, California; 8) authorize the Mayor to execute the Notice of Completion upon satisfactory completion of said work — recommendation includes funding from a variety of sources, including the General Fund and a $75,000 grant. Motion was seconded by Harnik. Mayor Jonathan noticed recommendations 1-6 includes a lot of amounts, and he wants to understand what amount will come out of the General Fund. The Fiscal Analysis indicates the cost would net out $200,000, so he wanted to make sure what Council was authorizing. Mr. Garcia responded it was authorizing the total amount minus the grant, which nets at $200,000. Further responding, he said Item 3 is to appropriate $226,693 from the Unobligated General Fund. Ms. Moore added that Council will be budgeting that amount by taking action on item 3. Further responding, she confirmed it was not in the current budget. Mayor Jonathan expressed concern, because it's the month of September, the third month of the fiscal year and in one day it's taking out $300,000 out of the General Fund that is not budgeted. He's not necessarily opposed, but 37 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING SEPTEMBER 27, 2018 DRAFT just for this reason, he believed the City had to be careful. It's not a practice he wants to adopt in a cavalier manner. It may be that these things are hitting all at once, but $300,000 is some serious change. Ms. Moore offered that considerable discussion took place between the Planning, Public Works, and Finance Departments, because it does have a grant that is expiring and this work has to get done. In the event the Redevelopment Agency and City loans are approved in the next two years. the City might see repayment. If they are approved, those monies would go back into a City Park Fund and staff could request reimbursement. If the money was not available, staff did not want to give the impression that it would not touch the general fund at some point, which is why its being done now with the potential that it can be reimbursed. Mayor Jonathan couldn't recall if this item went through the Parks & Recreation Commission. Ms. Aylaian said it did on several occasions. In fact, when it was originally proposed it was taken to the Parks & Recreation Commission as an item to be donated to the Sister City, and it has taken this long to explore all options. Councilmember Harnik commented that Joe Mann Park has reaped a lot ❑f concern because it serves a large area, and for years it hasn't lived up to the Palm Desert standard. She said that area deserves upgrading. Mayor Pro Tem Weber asked if there was a reason for not saying the cost is $215,000 instead of $200,278. Mr. Garcia explained that $215,179 is the actual cost of the equipment. Mayor Jonathan suggested Mayor Pro Tem Weber go over items 1-6, which clarifies that $75,000 will come back into the General Fund, and when you add all the items together, you end up with the same Fiscal Analysis. When all the dust settles, the net expenditure out of the General Fund is $200,278. Mr. Garcia pointed out that the potential credit won't be available until the City executes the change order for the dismantling of the equipment. Mayor Jonathan called for the vote and the motion carried by a 4-1 vote (AYES: Harnik, Kelly, Nestande, and Weber; NOES: Jonathan). 38 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING SEPTEMBER 27, 2018 DRAFT D. REQUEST FOR APPROVAL OF THE MEDIA PLAN FOR FISCAL YEAR 2018-2019. Tourism & Marketing Manager Thomas Soule noted the proposed Media Plan for Fiscal Year 20 18-2019. which was also reviewed by a subcommittee of the Marketing Committee. Further responding, he confirmed it was a budgeted item. MayorJonathan commented that staff is keeping it edgy, which he loved, and Councilmember Nestande thought the Plan was very impressive. Councilmember Harnik noted she sits on both the El Paseo Business Improvement District and Marketing Committee, and everything was well received, it's high quality, and beautifully done. IdeaPeddler talked about their strategy, goals, objectives, and they are measurable. Mayor Jonathan moved to, by Minute Motion, approve/authorize: 1) Fiscal Year 2018-2019 Media Plan; 2) media buy expenditures with IdeaPeddler, LLC (Contract No. 37180), Austin, Texas, in an amount not to exceed $409,000; 3) an additional $15,000 to be used at the City Manager's discretion for extra work that may arise during the year, as defined and provided for in aforementioned contract with IdeaPeddler — funds are available in Advertising Media Buys, Account No. 1 104417-4322100 and in Professional - Other, Account No. 1104417-4309000. Motion was seconded by Harnik and carried by a 5-0 vote (AYES: Harnik, Kelly, Nestande, Weber, and Jonathan; NOES: None). E. REQUEST FOR APPROVAL OF RECOMMENDED FIRMS TO BE PLACED ON A PRE -APPROVED LIST OF UNDERWRITERS/PLACING AGENTS FOR POTENTIAL FUTURE DEBT ISSUANCE OR REFUNDINGS (JOINT CONSIDERATION WITH THE SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY, PALM DESERT FINANCING AUTHORITY, AND PALM DESERT HOUSING AUTHORITY). Senior Management Analyst Veronica Tapia stated that after the 2017 refunding, staff realized the underwriter's list was grossly delinquent. In order to update the list, staff requested qualifications from various firms and received six. Each firm was deemed qualified and staff is requesting that they be included in the list. In the event a financing opportunity presents itself, staff will come back and ask a subcommittee to choose a firm most qualified to do the deal. This item went to the Audit, Investment & Finance Committee and they approved it. Councilmember/Director Harnik moved to, by Minute Motion, approve the recommended firms to be included in a pre -approved fist to provide underwriting and placement agent services for future debt issuance or refundings. Motion was seconded by Kelly and carried by a 5-0 vote (AYES: Harnik, Kelly, Nestande, Weber, and Jonathan; NOES: None). 39 PRELIMINARY MINUTES REGULAR PALM ❑ESERT CITY COUNCIL MEETING SEPTEMBER 27, 2018 DRAFT XVII. CONTINUED BUSINESS None XVIII. OLD BUSINESS None XIX. PUBLIC HEARINGS None XX. ADJOURNMENT With City Council concurrence, MayorJonathan adjourned the meeting at 8:37 p.m. ATTEST: RACHELLE D. KLASSEN, CITY CLERK CITY OF PALM ❑ESERT, CALIFORNIA SABBY JONATHAN, MAYOR 40