HomeMy WebLinkAboutPrelim - CC - 11-15-2018PRELIMINARY MINUTES
REGULAR PALM DESERT CITY COUNCIL MEETING
THURSDAY, NOVEMBER 15, 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 3:00 p.m.
II. ROLL CALL
Present:
Councilmember Jan C. Harnik
Councilmember Kathleen Kelly
Councilmember Gina Nestande
Mayor Pro Tem Susan Marie Weber
Mayor Sabby Jonathan
Also Present:
Lauri Aylaian, City Manager
Robert W. Hargreaves, City Attorney
Rachelle D. Klassen, City Clerk
Lori Carney, Director of Administrative Services
Russell Grance, Director of Building & Safety
Ryan Stendell, Director of Community Development
Martin Alvarez, Director of Economic Development
Janet M. Moore, Director of Finance/City Treasurer
Tom Garcia, Director of Public Works
Bo Chen, City Engineer
Stephen Y. Aryan, Risk Manager
Brian White, Battalion Chief, Palm Desert Fire/Riverside Co. Fire Dept./Cal Fire
Lt. Matt Martello, Asst. Chief, Palm Desert Police/Riverside Co. Sheriff's Dept.
Grace L. Rocha, Deputy City Clerk
III. ORAL COMMUNICATIONS - A (CLOSED SESSION ITEMS)
MR. VAN TANNER congratulated third term elect Councilmember Jan Harnik and
second term Councilman/Mayor Sabby Jonathan, stating he looked forward to the
next four years with the two of them still serving on the City Council.
DRAFT
A
PRELIMINARY MINUTES
REGULAR PALM DESERT CITY COUNCIL MEETING NOVEMBER 15, 2018
IV. ADJOURN TO CLOSED SESSION
Request for Closed Session:
DRAFT
A. Conference with Legal Counsel regarding existing litigation pursuant to
Government Code Section 54956.9(d)(1):
1) Four Green Gold, LLC, et al., v. City of Palm Desert, Riverside County
Superior Court Case No. PSC 1806472
B. Conference with Legal Counsel regarding significant exposure to litigation
pursuant to Government Code Section 54956.9(d)(2):
Number of potential cases: 2
C. Public Employee Performance Evaluation pursuant to Government Code
Section 54957:
Title of Position: City Manager
With City Council concurrence, Mayor Jonathan adjourned the meeting to Closed
Session of the City Council at 3:02 p.m. He reconvened the meeting at 4:11 p.m.
V. RECONVENE REGULAR MEETING - 4:00 P.M.
A. REPORT ON ACTION FROM CLOSED SESSION.
Mr. Hargreaves reported that direction was given, but no reportable action
was taken.
VI. PLEDGE OF ALLEGIANCE TO THE FLAG OF
THE UNITED STATES OFAMERICA- Honorary Mayor For the Day
Maximilian Karcher
VII. INVOCATION - Mayor Sabby Jonathan called for a moment of silence for the
eleven worshippers slaughtered at the Tree of Life Synagogue
in Pittsburgh, the twelve people gunned down in Thousand
Oaks, including a police officer, and for those that have
perished or lost homes and businesses as a result of the
various wild fires still raging throughout California.
2
PRELIMINARY MINUTES
REGULAR PALM DESERT CITY COUNCIL MEETING NOVEMBER 15, 2018
VIII. AWARDS AND PRESENTATIONS
DRAFT
A. PRESENTATION OF PROCLAMATION TO RECOGNIZE AND HONOR
WORSHIPPERS AND THOSE LOST AT THE TREE OF LIFE SYNAGOGUE
IN PITTSBURGH, PENNSYLVANIA, ON OCTOBER 27, 2018.
On behalf of the City Council, Mayor Jonathan read out loud the
proclamation, recognizing those lost at the Tree of Life Synagogue in
Pittsburgh, Pennsylvania. He said the City has a long tradition of being
supportive of all residents in the Coachella Valley and the United States
regardless of religion, ethnicity, gender, and sexual preference, because
were all people and were all neighbors. The City Council has issued a
proclamation in support of the temple and of the City of Pittsburgh, which will
be mailed to them.
B. PRESENTATION OF PROCLAMATION TO DECLARE THURSDAY,
NOVEMBER 15, 2018, AS "MAXIMILIAN KARCHER DAY" IN THE CITY OF
PALM DESERT.
On behalf of the City Council, Mayor Jonathan presented the proclamation
to Master Maximilian Karcher, a student of Palm Desert Charter Middle
School. The Mayor explained the City supports education and it does that
by supporting the schools, colleges, and universities. As part of an annual
fundraiser, the City allowed Charter Middle School to bid an item, which is
"Mayor for a Day," and Max Karcher was the winning recipient.
C. PRESENTATION TO RECOGNIZE DOUGLAS BREWER FOR HIS
SERVICE TO THE CITY OF PALM DESERT AND ITS ARCHITECTURAL
REVIEW COMMISSION, 2017-2018 (Continued from the meeting of
October 11, 2018).
Mr. Brewer was unable to attend today's meeting for this recognition. His
engraved crystal clock will be sent to him separately.
D. PRESENTATION TO RECOGNIZE STAN SPERLING FOR HIS SERVICE
TO THE CITY OF PALM DESERT AND ITS AUDIT,
INVESTMENT & FINANCE COMMITTEE, 2013-2018.
On behalf of the City Council, Mayor Jonathan presented an engraved
crystal clock to Mr. Sperling for his service. He noted the City has 17
Committees and Commission that are populated by Palm Desert residents,
and the City Council and staff relies on their input when making major
decisions. He said the City depends on its volunteers like Mr. Sperling who
is committed to his community.
3
PRELIMINARY MINUTES
REGULAR PALM DESERT CITY COUNCIL MEETING NOVEMBER 15, 2018
DRAFT
E. PRESENTATION OF PROCLAMATION DECLARING NOVEMBER 24,
2018, AS "SMALL BUSINESS SATURDAY" IN THE CITY OF
PALM DESERT.
On behalf of the City Council, Mayor Jonathan presented the proclamation
to Chamber of Commerce Board Member Wendy Jonathan.
Ms. Jonathan thanked the City Council for calling attention to Small Business
Saturday in the City of Palm Desert.
IX. ORAL COMMUNICATIONS - B
MS. JANICE PINZA, Palm Valley Country Club, approached the City Council
to express her disappointment over the removal of the Tamarisk Trees by the
Union Pacific Railroad. These trees that have stood for 82 to100 years
acting as a barrier to the sand and noise from passing freight trains, yet they
stand no more. These same trees caused the street to be named Tamarisk
Road, allowing home buyers into the false belief that they were special, a
landmark that would stand in perpetuity. The removal has caused an
exponential increase in noise and vibrations from passing freight trains. Air
quality has been negatively impacted as the winds now pollute the air with
sand and exhaust particles. Passing freight trains run on tracks elevated
above street and privacy wall levels, which has turned their once lush tree
line fairways into an unsightly freight yard. In short, the noise and landscape
pollution has destroyed their living environment, and residually, their home
values are plummeting. The health of the community is in jeopardy, stating
studies show train noise causes hearing loss, elevate blood pressure, and
stress on the immune systems and loss of sleep. In contacting the City, she
was told by an employee that the trees belonged to the railroad, and it was
their right to cut them, and residents that chose to live by the tracks would
have to live with the residual effects, which she thought was ludicrous.
When she bought her home the trees buffered the noise and landscape
pollution, and they had no idea the trees belonged to the railroad. She added
that a nuclear power plant would not be allowed to spill their nuclear waste
into the surrounding terrain and an eminent domain does not give the
railroads the right to pollute. In contacting the railroad, she learned the trees
were removed because they harbored homeless camps, which the railroad
and the City of Palm Desert failed to control. She was told the camps posed
a fire hazard, yet they left the tree cutting remnants to dry alongside the
tracks. Adding insults to injury, she was told the railroad no longer needed
the trees, because the homes were abating the sand on the tracks. She said
the community pays dearly in property tax and special assessments, and in
turn, they have a right to a safe and healthy living environment. It was
incumbent upon the City of Palm Desert to enjoin the railroad to abate the
pollution, and in the absence of such abatement, the City needed to do it.
4
PRELIMINARY MINUTES
REGULAR PALM DESERT CITY COUNCIL MEETING NOVEMBER 15, 2018
DRAFT
She provided a petition with signatures to the City Clerk, stating she will
continue to collect more signature.
MR. NEAL VICTOR, President of the Homeowners Association at the Gallery
of Homes, stated they are located on Gerald Ford Drive between Portola
Avenue and Gateway. He said Ponderosa Development is building a new
subdivision next to their complex on Dinah Shore Drive and Dick Kelly. It is
a totally separate community and nothing to do with the Gallery. At one time
they were to be connected, but they are not. He understands that
Emergency Vehicle Access (EVA) points are required for communities over
a certain size unless there is a waiver. However, the location of these points
is not mandated by code or regulation. He was told by Planning staff that the
location was mandated by the Fire Department. Ms. Sonia Cooley from the
Fire Marshal's Office said other locations are acceptable. The current
proposed site is at the end of Raphael, which is unacceptable because the
gate would be ugly and they want a solid wall around their community. Often
emergency vehicles leave gates open and must be called back to close
them, stating the key is left in the open position. Ponderosa Development
chose the Dinah Shore gate for a fire entrance, however, they decided to
install a fire gate at Raphael Street without any input from The Gallery
Community. There are other possible locations for EVA Points. The Fire
Department has stated the chosen site is not the only site possible and the
location can be moved. The HOA is in communication with Ponderosa
Development, but he wanted to express their opposition to this project. The
Gallery opposes the current EVA site and he's requesting the City require
Ponderosa Development to submit amended plans with a different EVA point
for approval.
MS. ANN TONSIGNANT, Nasturtium Way, Palm Desert, stated that after
spending five months up north, immediately upon entering her driveway she
noticed the trees were gone, and it's horrific. The removal of the Tamarisk
Trees without any kind of public notice was hard to understand as a resident
and taxpayer. She believed the railroad should have pulled permits to cut
down the trees, because it was the barrier to the dust and noise. She wants
the City Council to know what a profound impact this has had on their quality
of life, stating she couldn't leave her windows open anymore, and it has
destroyed the value of their home. She said trees naturally absorb carbons,
which protected them from particulate matter, diesel engines, and noise.
She questioned if any studies were done, because typically there are
requirements to study the impacts and/or alternatives. She's asking the City
Council to look for options to mitigate the noise so they can continue to live
in their homes.
MR. EDWARD HOLZHAUER, Goleta Avenue, Palm Desert, noted he would
address a couple of items: 1) He claimed the Retreat Project was already in
the process of being built and the City accepted a fee in lieu of providing
5
PRELIMINARY MINUTES
REGULAR PALM DESERT CITY COUNCIL MEETING NOVEMBER 15, 2018
DRAFT
affordable housing in the amount of $270,000. He went to the website of
The Retreat and read the following, "We all like the idea of living in a relaxing
environment, but an age -restricted community with shuffle board and ...,
basket weaving, has little to no appeal." He didn't believe the City should be
allowing projects in the City that want to exclude senior citizens that cannot
afford to live in Palm Desert; 2) The San Pablo Project is estimated to cost
$10 million, and the plan indicates it's for public safety and business
development, but he felt it was just another vanity project. He added it was
a costly $10 million to put an expensive pair of drapes in front of City Hall, yet
it does nothing to promote the growth of this City or affordable housing.
Lastly, on the eve of the election, Council decided to move forward with a
$600 million plan to underground utility lines. In looking at that program,
$20,000 to $50,000 will be assigned to every homeowner in Palm Desert,
which again was another vanity project. If homeowners don't pay that fee,
it becomes a lien on that home, questioning how this helped senior citizens
who live below the poverty level. In this City, 16.7% live below the poverty
level, and the City Council needs to stop with the bomb fire of the vanities
and work for the constituency that lives here, stating the City has been
stagnant for ten years. He said Palm Desert used to be the leader in the
Coachella Valley, but not no more, because Highway 111 is horrible, and El
Paseo and businesses are not growing. He asked Council to consider
different projects that will bring up the welfare of the people in Palm Desert.
MR. CARLOS PINEDA noted that on election night, it became evident to him
that Councilmember Harnik and Mayor Jonathan would be reelected and
therefore, continue on the City Council. However, it didn't mean he will go
away, because later this evening he will be addressing two items on the
agenda.
MR. BOB SUCHEN(Sp?),Palm Valley Country Club, stated the City Council
has already heard the Tamarisk Trees along the railroad have been
removed, and he worries the ones on the left-hand side will also be cut
down. He asked the City Council to intervene if that's what the railroad was
intending to do, because then they too would be impacted by the noise from
the freeway.
X. MAYOR AND COUNCILMEMBER REPORTS & REMARKS TO THE COMMUNITY
A. Councilmember Jan C. Harnik Committee Reports and General Comments.
1. Father's Heart Ranch for Children - attended their luncheon and
learned a lot about the ranch. She said they help boys ages 5 to 13
who have seen the darkest side of life. These boys stay at the ranch
for about two years, and they currently have 24. Therefore, the City
of Palm Desert should feel very good about donating the playground
equipment to this ranch, because now these boys have somewhere
6
PRELIMINARY MINUTES
REGULAR PALM DESERT CITY COUNCIL MEETING NOVEMBER 15, 2018
DRAFT
to play. She added it was very encouraging being at that luncheon
and seeing how the City Council's actions impact others.
2. Recruitment for the Dean of the Cal State University. San Bernardino
- Palm Desert Campus - reported the search continues, and it's on
track for hiring someone by the February 2019 deadline.
3. Riverside County Transportation Commission (RCTC) - it was noticed
that a lot of the sales tax proceeds were delayed from Sacramento.
It turns that when RCTC transferred from the Board of Equalization to
California Department of Tax & Fee Administration (CDTFA), which
is a new system, it crashed, which is what caused the delay. The
City's tax and proceeds from the 1st and 2nd quarter from 2018 will
come in later than usual. Fortunately, RCTC and the City of Palm
Desert are fiscally conservative, so it doesn't negatively impact
operations.
4. Wavfair Supreme Court Case - the ruling came down in favor of
imposing online sales tax across state lines - everyone is looking
forward to seeing how it will play out.
5. "Taming the Wild West" art piece - the piece was relocated to the
corner of Haystack Road and Portola Avenue, stating it looks perfect
at the new location.
6. Coachella Valley Association of Governments (CVAG) - Traffic Signal
Synchronization Proiect - the project is moving forward. One of the
benefits of the project is that it's creating infrastructure for smart cities.
The importance of this project was highlighted at the CVEP Economic
Summit, adding there a lot of benefits from these two entities working
together. Further, when you have educational institutions, private and
public sectors working together, you get great results.
B. Councilmember Kathleen Kelly Committee Reports and General Comments.
1. Wellness Center for the Joslyn Center - attended the ribbon cutting
event. She said the Joslyn Center serves those who have achieved
the age of 50 or better, and the new Wellness Center is a broadly
funded initiative that helps many to age well physically, emotionally,
vocationally, and with a range of interests. She encouraged everyone
to learn about the new programs being offered.
C. Councilmember Gina Nestande Committee Reports and General Comments.
She welcomed the audience to this evening's City Council meeting, stating
she looked forward to listening to staff and colleagues on the important
7
PRELIMINARY MINUTES
REGULAR PALM DESERT CITY COUNCIL MEETING NOVEMBER 15, 2018
DRAFT
issues on the agenda, because she knew they were very important to the
residents.
D. Mayor Pro Tem Susan Marie Weber Meeting Summaries Report for the
Period of October 15 - November 4, 2018.
With City Council concurrence, the Meeting Summaries Report was received and
filed.
1. Coachella Valley Animal Campus - reported that in the past it was
called "the pound" and some referred to it as the "kill area." However,
they have now increased the live release from 50% to 80%, meaning
80% of the animals get adopted out. The goal is to reach 93%, so
she encouraged everyone to visit the campus, because it has
changed and has improved. At a future agenda the City Council will
be considering an opportunity for reimbursement to those who adopt
from a nonprofit organization.
E. Mayor Sabbv Jonathan Committee Reports and General Comments.
1. Festival in the Fields - October 26. 2018 - a symposium was held at
Cal State University, San Bernardino - Palm Desert Campus that was
focused on healthcare for the Latino Community. He was asked to
speak because he developed some experience through the
Homelessness Committee. As it turns out, 52% of the homeless
population are Latinos. The discussion and exchange of information
with other panel speakers were very informative.
2. Palm Desert Golf Cart Parade - congratulated and thanked all the
volunteers, the YMCA, the Berger Foundation, and the City's Corp
Yard who put together the City's golf cart entry, for doing an amazing
job.
3. Grand Opening for the Crossroads of Conservation at The Living
Desert (TLD) - reported TLD is going through a complete
transformation of their site. He noted they have displayed a
photograph of their first beginnings, which was just a hut in the middle
of the desert, and it has become an awesome destination.
4. Greater Palm Springs Pride Parade - attended his first Pride Parade,
which was held on Sunday, November4, 2018, in Palm Springs. He's
proud Palm Desert entered a float for the 2nd year and encouraged
everyone to attend and participate in the coming years.
5. U.S. Army and Field Chorus - attended the performance at the
McCallum Theatre, which is a City -sponsored event and free to the
8
PRELIMINARY MINUTES
REGULAR PALM DESERT CITY COUNCIL MEETING NOVEMBER 15, 2018
DRAFT
residents. He knew it was going to be interesting and fun, but it was
surprisingly interactive. He's proud that Palm Desert supports
veterans and active military.
6. Veteran's Dav Celebration - took part in the event, stating it was
exceptionally special because at 11:00 a.m. on the 11th of November,
was the 100th Anniversary of Armistice Day.
7. BriahtSide Newsletter - encouraged everyone to check out the
newsletter for any and all upcoming City events. The ones he
mentioned this evening were all free to the residents. You can also
go on the City's website to find out about other events happening
during the peak season.
F. City Council Requests for Action.
1. Union Pacific Railroad - requested the City follow-up with the railroad
to address the concerns raised this evening relating to the cutting of
the Tamarisk Trees.
2. Balloon Ordinance expired December 31. 2017 - The Business
Improvement District (BID) requested the City extend the Balloon
Ordinance, stating that at the next BID meeting, they will come up with
suggestions for the City to consider.
G. City Council Consideration of Travel Reauests/Reports.
None
XI. STAFF REPORTS AND REMARKS
A. City Manager
1. City Manaaer's Meetina Summaries Report for the Period of
October 15 - November 2, 2018.
With City Council concurrence, the Meeting Summaries Report was received and
filed.
2. Personnel Update: She introduced Chris Gerry as the Management
Analyst in the City Manager's Office. He worked in Bakersfield in both
the City Manager and City Clerk's Office, spent 61/2 years in the City
of Anaheim where he was in redevelopment and community
development.
9
PRELIMINARY MINUTES
REGULAR PALM DESERT CITY COUNCIL MEETING NOVEMBER 15, 2018
DRAFT
3. Celebratina the Season - December 7. 2018. at The Gardens on El
Paseo. 5:30 to 7:30 p.m. There will be a Santa Clause, photos with
the kids, cookie decorating, and Elvis singing Christmas carols. This
event is free to the public and treats and hot cocoa will be provided.
B. City Attorney
None
C. City Clerk
None
D. Public Safety
1. Fire Department
a) Battalion Chief White reported they are currently looking at
three major fires that are in unified command: 1) The camp fire
in Butte County consumed more than 120,000 acres of brush,
and it has destroyed over 6,400 single-family homes, with 42
confirmed fatalities; 2) The Hill Fires and Woolsey Fires were
combined, and they are pushing 100,000 acres as well.
Currently, the Department has evacuated over 200,000
citizens from their homes in California. In Woolsey, specifically,
there are 57,000 single-family residents under evacuation
orders. These people are in shelters and hotels. The
Department has mobilized resources throughout the State,
including some from the Palm Desert area. Chief Moore's
Incident Command Team was positioned in the southern
region for the anticipated weather events and possible incident
activity.
b) Spark of Love Tov Drive - Fire Stations are accepting
unwrapped toys that will later be passed out to children in need
during the holiday season.
2. Police Department
None
XII. CONSENT CALENDAR
A. MINUTES of the Regular City Council Meeting of October 25, 2018.
Rec: Approve as presented.
10
PRELIMINARY MINUTES
REGULAR PALM DESERT CITY COUNCIL MEETING NOVEMBER 15, 2018
DRAFT
B. CLAIMS AND DEMANDS AGAINST THE CITY TREASURY - Warrant Dated
10/19/2018.
Rec: Approve as presented.
C. CLAIMS AND DEMANDS AGAINST THE CITY/HOUSING TREASURIES -
Warrants Dated 10/19/2018 and 10/26/2018 (Joint Consideration with the
Palm Desert Housing Authority).
Rec: Approve as presented.
D. APPLICATION FOR ALCOHOLIC BEVERAGE LICENSE by Sullivan's
Steakhouse, 73545 El Paseo, #F2600, Palm Desert.
Rec: Receive and file.
E. CITY COMMITTEE AND COMMISSION MEETING MINUTES
1. Citizens' Sustainability Committee Meeting of March 19, 2018.
2. Cultural Resources Preservation Committee Meeting of
September 25, 2018.
Rec: Receive and file.
F. REQUEST FOR DECLARATION of Surplus Property and Authorization for
Disposal — Miscellaneous Computers, Electronics, and Office Equipment.
Rec: By Minute Motion, declare items listed on the accompanying staff
report's Exhibit "A" as surplus property and authorize disposal as
appropriate.
G. REQUEST FOR DECLARATION of Surplus Property and Authorization for
Disposal — Miscellaneous Office Furniture and Art.
Rec: By Minute Motion, declare various pieces of office furniture and art as
surplus and authorize disposal as recommended.
H. REQUEST FOR APPROVAL of a $50,000 Increase to Contract with Willdan
Engineering, Inc., for Temporary Building Inspection Services (Contract
No. C36191B).
Removed for separate consideration under Section XI I I, Consent Items Held
Over. Please see that portion of the Minutes for Council discussion and
action.
11
PRELIMINARY MINUTES
REGULAR PALM DESERT CITY COUNCIL MEETING NOVEMBER 15, 2018
DRAFT
I. REQUEST FOR AWARD OF CONTRACT to Elecnor Belco Electric, Inc., in
the Amount of $81,608 for the Street Light Conduit Installation Project
(Contract No.C37290, Project No. 599-17).
Removed for separate consideration under Section XIII, Consent Items Held
Over. Please see that portion of the Minutes for Council discussion and
action.
J. REQUEST FOR APPROVAL of Final Parcel Map No. 37491 (Palm Ventures
PA-1, LLC, Applicant).
Rec: Waive further reading and adopt Resolution No. 2018 - 82. approving
the final Subdivision Map of Parcel Map No. 37491.
K. REQUEST FOR APPROVAL of the Hotel Paseo's 2018 Airstream Palooza
Event on Saturday, December 1 (Robert A. Leach, Applicant).
Removed for separate consideration under Section XIII, Consent Items Held
Over. Please see that portion of the Minutes for Council discussion and
action.
Ms. Aylaian requested Item H to be removed for separate consideration,
Councilmember Kelly requested Item I, and Councilmember Harnik
requested Item K.
Upon motion by Harnik, second by Nestande, 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
H. REQUEST FOR APPROVAL of a $50,000 Increase to Contract with Willdan
Engineering, Inc., for Temporary Building Inspection Services (Contract
No. C36191B).
Ms Aylaian requested modifying the wording to reflect an increase in the
amount of the contract, as follows: "Request for approval of $120,000
increase to the contract with Willdan Engineering, Inc., for Temporary
Staffing, including Building Inspection and Software Transition support
services." This is a housekeeping item that will allow the City to bring the
issue as written in the original staff report together with several items that
would have been brought forward independently and approve them all at
once. It involves provision of temporary staffing where there would typically
have been full-time staffing that was included in the budget, therefore,
12
PRELIMINARY MINUTES
REGULAR PALM DESERT CITY COUNCIL MEETING NOVEMBER 15, 2018
DRAFT
additional appropriation of funds is unnecessary. It simply allows staff to use
the savings from full-time salaries for temporary services until the positions
are filled.
Councilmember Harnik moved to, by Minute Motion, authorize an additional, not -to -
exceed increase in the amount of $120,000 to the subject Professional Services
Agreement with Willdan Engineering, Inc., for Temporary Staffing, including Building
Inspection and Software Transition support services for the remainder of Fiscal Year2018-
2019 — funds will be available in FY 2018-2019 Budget in Account No. 1104420-4301000.
Motion was seconded by Kelly and carried by a 5-0 vote (AYES: Harnik, Kelly, Nestande,
Weber, and Jonathan; NOES: None).
I. REQUEST FOR AWARD OF CONTRACT to Elecnor Belco Electric, Inc., in
the Amount of $81,608 for the Street Light Conduit Installation Project
(Contract No.C37290, Project No. 599-17).
Councilmember Kelly said this was a proposal to bring safety lighting to
various intersections both on El Paseo and Country Club Drive. This came
about as a result of citizen input about where such additions might be
needed. She commended staff for doing such a good job of responding to
Palm Desert Citizens and also to feature, for residents who are listening, that
Council counts on this kind of input to know how to improve our City. She
encouraged people to utilize all means available to reach out and let the City
know when something needs to be done.
Councilmember Kelly moved to, by Minute Motion: 1) Award subject contract in the
amount of $81,608 to Elecnor Belco Electric, Inc., Chino, California, for the Street Light
Conduit Installation Project; 2) authorize the Director of Finance to set aside a 10%
contingency for the project in the amount of $8,161; 3) authorize the Mayor to execute said
agreement — funds for the project are available in the Capital Project Reserve Fund 400.
Motion was seconded by Harnik and carried by a 5-0 vote (AYES: Harnik, Kelly, Nestande,
Weber, and Jonathan; NOES: None).
K. REQUEST FOR APPROVAL of the Hotel Paseo's 2018 Airstream Palooza
Event on Saturday, December 1 (Robert A. Leach, Applicant).
Councilmember Harnik called attention to this event, because it's another
free event in the City of Palm Desert. This event will be held on December 1
at Hotel Paseo from 3:00 to 9:00 p.m., and it will be a lot of fun. She noted
the YMCA will benefit from the event.
Councilmember Harnik moved to, by Minute Motion, approve: 1) Hotel Paseo's
Airstream Palooza Event scheduled for Saturday, December 1, 2018; 2) road closure on
Larkspur Lane from Shadow Mountain Drive to the north driveway of Hotel Paseo; 3)
consumption of alcoholic beverages on City -owned property pursuant to Palm Desert
13
PRELIMINARY MINUTES
REGULAR PALM DESERT CITY COUNCIL MEETING NOVEMBER 15, 2018
DRAFT
Municipal Code Section 9.58.040. Motion was seconded by Nestande and carried by a 5-0
vote (AYES: Harnik, Kelly, Nestande, Weber, and Jonathan; NOES: None).
XIV. RESOLUTIONS
A. RESOLUTION NO. 2018 - 83 - A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF PALM DESERT, CALIFORNIA, APPROVING AND
ADOPTING AN AMENDED CONFLICT OF INTEREST CODE PURSUANT
TO THE POLITICAL REFORM ACT OF 1974.
Ms. Klassen stated that as the filing officer for all campaign and conflict of
interest filings, also known as Form 700, every two years the City is required
by law to review designated positions and their appropriateness. This is a
joint project between her office, City Attorney's office, and Human
Resources. She said they have gone through the review and it does present
some new titles, amended titles, and elimination of certain titles that are no
longer being used.
Councilmember Kelly moved to waive further reading and adopt Resolution
No. 2018 - 83. Motion was seconded by Nestande and carried by a 5-0 vote (AYES:
Harnik, Kelly, Nestande, Weber, and Jonathan; NOES: None).
XV. ORDINANCES
A. For Introduction:
None
B. For Adoption:
1. ORDINANCE NO. 1342 - AN ORDINANCE OF THE CITY COUNCIL
OF THE CITY OF PALM DESERT, CALIFORNIA, AMENDING
CHAPTER 3.44 OF THE PALM DESERT MUNICIPAL CODE
PERTAINING TO THE COLLECTION OF TRANSPORTATION
UNIFORM MITIGATION FEES (TUMF).
Councilmember Harnik moved to waive further reading and adopt Ordinance
No. 1342. Motion was seconded by Nestande and carried by a 5-0 vote (AYES: Harnik,
Kelly, Nestande, Weber, and Jonathan; NOES: None).
14
PRELIMINARY MINUTES
REGULAR PALM DESERT CITY COUNCIL MEETING NOVEMBER 15, 2018
XVI. NEW BUSINESS
DRAFT
A. REQUEST FOR APPOINTMENT OF PAUL HIETTER TO THE BOARD OF
DIRECTORS OF THE EL PASEO PARKING AND BUSINESS
IMPROVEMENT DISTRICT.
Tourism & Marketing Manager Thomas Soule stated the El Paseo Board at
its October meeting unanimously voted to appoint Mr. Paul Hietter to the El
Paseo Parking and Business Improvement District Board, filling a seat that's
been vacant for quite some time.
Councilmember Harnik noted the staff report provides Mr. Heitter's
background, which is very impressive, and he has been a tremendous asset
on the El Paseo BID.
Councilmember Harnik moved to, by Minute Motion, appoint Paul Hietter, Marketing
Office Manager at Saks Fifth Avenue Palm Desert, to the Board of Directors for the
El Paseo Parking and Business Improvement District for a term ending December 31,
2021. Motion was seconded by Nestande and carried by a 5-0 vote (AYES: Harnik, Kelly,
Nestande, Weber, and Jonathan; NOES: None).
B. REQUEST FOR APPROVAL OF ACTIONS RELATED TO MEMBERSHIP
ON THE CITY'S MARKETING COMMITTEE.
Tourism & Marketing Manager Thomas Soule noted the staff report, which
lists the number of resignations from the Marketing Committee due to people
moving out of the area or onto different jobs, and part of the staff report is to
accept those resignations. Additionally, staff is recommending reducing the
size of the Committee, because during high season, there has been trouble
reaching a quorum and this was an opportune time to reduce it to seven.
Currently, the Committee has six members with one vacancy, but another
position opened up, which traditionally has been held by a representative of
the J.W. Marriott.
Councilmember Nestande asked if staff felt it was left with a well-rounded
group of people.
Mr. Soule answered yes, stating the remaining core members always attend
meetings, and they represent a nice cross section of the City, including the
McCallum Theatre, The Living Desert, Westfield Mall, Marriott, etc.
Councilmember Kelly understood it's been a challenge for a while to secure
the participation of busy people on a regular basis. She asked if staff intends
to reach out on occasion and invite stakeholders affected by a particular
topic to participate in discussions, so as to obtain broad input despite the
small size of the Committee.
15
PRELIMINARY MINUTES
REGULAR PALM DESERT CITY COUNCIL MEETING NOVEMBER 15, 2018
DRAFT
Mr. Soule said the City constantly reaches out for input, because marketing
affects everyone in the City. Staff consistently reaches out, and it has deep
involvement with the Conventions & Visitors Bureau (CVB), Coachella Valley
Economic Partnership (CVEP), and anyone particularly affected by any piece
that goes before the Marketing Committee. Staff is looking at inviting the
CVB and local Realtors to the meeting on a regular basis so they can get a
feel for what is happening in the City.
Mayor Jonathan commented the Committee currently has a membership of
eleven (11), and in general, he's in favor of reducing some of these large
committees. However, he recalled there are positions that represent
different sectors of the marketing and tourism industry, and by going down
to seven (7) members, he wondered if the Committee would be adequately
represented by all sectors.
Mr. Soule explained that given the outreach staff does on a continuous
basis, various sectors will still be given consideration. Additionally, the new
creative agency met with a number of stakeholders from around the City and
the Valley, so the Committee won't be lacking input. Further, Marketing
Committee meetings are public where there is opportunity for public
comment on the various different issues. He added staff goes through great
lengths to ensure everyone is heard and who can offer constructive input on
any issue.
Mayor Jonathan suspected it will work out, but giving input is different from
voting. He asked staff to be sensitive if there is a sector that materializes
that feels inadequately represented.
Councilmember Kelly moved to: 1) By Minute Motion, accept the resignations of
Theresa Maggio, Arlene Amick, and Barb Wagner; and recognize the technical resignation
of Jerry Martin from the Marketing Committee; 2) Waive further reading and adopt
Resolution No. 2018 - 84, amending the bylaws of the Marketing Committee to decrease
the number of members to seven (7). Motion was seconded by Harnik and carried by a
5-0 vote (AYES: Harnik, Kelly, Nestande, Weber, and Jonathan; NOES: None).
C. REQUEST FOR AUTHORIZATION TO PURCHASE AND UTILIZE THREE
(3) AUTOMATED LICENSE PLATE READING (ALPR) SYSTEMS FROM
VIGILANT SOLUTIONS IN THE AMOUNT OF $52,053 FOR USE BY THE
PALM DESERT POLICE DEPARTMENT.
Mr. Aryan explained that an Automated License Plate Reading (ALPR)
System consists of either pole or vehicle -mounted cameras that
automatically take photos of vehicle license plates. The data is then
compared to existing law enforcement data base, and it helps in assisting the
Police Department in identifying stolen vehicles, vehicles used in a crime, or
used in any abduction of seniors, children, and adults. He pointed out that
16
PRELIMINARY MINUTES
REGULAR PALM DESERT CITY COUNCIL MEETING NOVEMBER 15, 2018
DRAFT
in July 2018, the City Council held a public hearing on the use of the ALPR
Systems, and during that time, no public comment was received. The Police
Department requested to purchase three new units to be affixed onto patrol
vehicles as the new vendor was selected by the County. The Public Safety
Commission reviewed this item on October 2018, and they had various
inquiries on the warranty options of these units and the success rate. Those
inquiries were identified and answered in the staff report. The Commission
heard this item again yesterday at their meeting and unanimously
recommended approval of the purchase.
Mayor Pro Tem Weber asked staff to explain the warranty options, which
were discussed with the Commission at great lengths.
Mr. Aryan explained staff reviewed the warranty options, and found that it
was cost prohibited to warranty the units for four years at a cost of $2,500.
Typically, with the previous units, they didn't find any type of maintenance
issue within the first year. The City has the option within the first year to go
back to the warranty if new issues come up, but staff is opting out of the four-
year warranty, because it has an existing one-year warranty.
MR. CARLOS PINEDA, Palm Desert, expressed concern over the cost of the
system, because the total cost is $52,000, and not too long ago there was
the purchase of cameras. He's concerned, because statements have been
made that the City was paying too much for public safety. He's confused as
to whether the City has the money or not, because comments have been
made that half of Palm Desert's budget goes toward public safety. Also, he
questioned whether or not the ALPR Systems were legal, and many times
they malfunction, just like what happened in the City of Cathedral City where
they had to be removed. His main concern was the cost, stating that instead
of spending $52,000 on the units, why not employ more officers to patrol,
because where he lives, he witnesses many people driving erratically.
Mayor Jonathan called attention to the Fiscal Analysis portion of the staff
report, which indicates restricted funds will be used for this purchase, without
going into the General Fund.
Mr. Aryan concurred. In order to ease the concerns about protocol and
security, the ALPR data is purged every two years after being collected and
can only be used for official law enforcement purposes. The Sheriff's
Department policy on ALPR is attached to the staff report, and it's been
made public. He said anyone that comes in contact or uses the system is
required to go through four hours of training, and is made aware of the
County's policy on the system as well. Further, the Sheriff's Department
conducts an internal audit on the system to ensure privacy and to address
liability concerns.
17
PRELIMINARY MINUTES
REGULAR PALM DESERT CITY COUNCIL MEETING NOVEMBER 15, 2018
DRAFT
Councilmember Kelly pointed out this expense didn't come out of General
Funds, but even if it did, she would be prepared to support it because the
cost is comparatively modest for the enhanced efficiency that it accomplishes
for officers. She appreciates the Commission's diligent and detail review.
Bottom line, the City has to provide officers with the best tools to ensure
efficiency so they can react as quickly as possible, and the use of technology
is absolutely essential.
Mayor Jonathan added Council shares the concern about escalating safety
costs, which has more to do with the contract with Riverside County Sheriff's
Department, and not the equipment. He commended staff for doing an
amazing job of eliminating certain positions that have proven to be not
necessary, because public safety itself has remained strong. The City
continues to explore all options for maintaining public safety, while at the
same time, getting a handle on reducing public safety costs. Councilmember
Harnik concurred.
Councilmember Harnik moved to, by Minute Motion: 1) Authorize the purchase and
use of three (3) Automated License Plate Reader (ALPR) systems in the amount of
$52,053 from Vigilant Solutions, Livermore, California, for installation on marked Palm
Desert Police vehicles and use within the City's jurisdictional boundaries; 2) authorize the
City Manager to execute any related contract documents (Contract No. C37840);
3) declare the three previous ALPR units as surplus to be traded in to Vigilant Solutions for
a reduced cost on the purchase of three (3) new ALPR units; 4) authorize the use of
Riverside County's vendor, Vigilant Solutions under Palm Desert Municipal Code Section
3.30.160(1) - Best Interest of the City; 5) appropriate $52,053 from Unobligated Fund 229
to Account No. 2294210-4391400 for this purpose. Motion was seconded by Nestande
and carried by a 5-0 vote (AYES: Harnik, Kelly, Nestande, Weber, and Jonathan; NOES:
None).
D. REQUEST FOR ACCEPTANCE OF THE CITY'S CITIZENS OPTION FOR
PUBLIC SAFETY/SUPPLEMENTAL LAW ENFORCEMENT SERVICES
FUND (COPS/SLESF) EXPENDITURE PLAN AND FUNDING FOR FISCAL
YEAR 2018-2019.
Mr. Aryan reported this item ties in with the previous item approved, which
is the funding source for the cameras. This is an annual State grant the City
receives to be used primarily for the identified Expenditure Plan by the Chief
of Police for the purchase of front-line services, supplies, and equipment to
supplement existing services. These funds primarily fund the City's Holiday
Theft Suppression Program each year, which starts next Friday, a day after
Thanksgiving. He's happy to say the Sheriff's posse is coming again, which
is a good community outreach for the City. City Council approval this
evening is to accept the award and the Expenditure Plan as provided by the
Chief of Police. Responding to question, he clarified the Fund currently has
$176,000, and the City is using $45,900 for the Holiday Theft Suppression
18
PRELIMINARY MINUTES
REGULAR PALM DESERT CITY COUNCIL MEETING NOVEMBER 15, 2018
DRAFT
Program, leaving a balance of $130,000. Further responding, he confirmed
the funds being utilized are State funds and not City funds.
Councilmember Kelly moved to, by Minute Motion: 1) Approve the Citizens Option
for Public Safety/Supplemental Law Enforcement Services Fund (COPS/SLESF) Program
Expenditure Plan, as provided by the Chief of Police; 2) accept the FY 2018-2019
COPS/SLESF funding, resulting in an unencumbered balance of $130,740 (as of
10/31/18). Motion was seconded by Nestande and carried by a 5-0 vote (AYES: Harnik,
Kelly, Nestande, Weber, and Jonathan; NOES: None).
E. REQUEST FOR AUTHORIZATION OF THE PURCHASE OF A WATER
TRUCK FROM TRANSWEST TRUCK CENTER IN THE AMOUNT OF
$112,073.75.
Mr. Garcia stated this new purchase will replace an existing water truck that
has been retired. At this time the City is renting water trucks when available.
Not having one has impacted the City's ability to respond to construction and
maintenance projects. The City went out for multiple bids, and even looked
on the State list because this is a specialty item, but was unable to secure
one off that list. Staff went out to solicit vendors and secured the best price
possible.
Councilmember Harnik inquired about the age of the last truck and their life
expectancy, because she understands it was used until it was done.
Ms. Aylaian replied she understood the water truck was roughly about 20
years old.
Councilmember Kelly believed the staff report substantiates exhaustive
analysis of all the options and proposes the best.
Councilmember Harnik moved to, by Minute Motion, authorize the purchase of a
water truck from Transwest Truck Center, Fontana, California, in the amount of
$112,073.75 — funds are available in Account No. 5304195-4404000 - Equipment
Replacement. Motion was seconded by Kelly.
Mayor Jonathan commented he appreciated staff's efforts of exploring
alternatives such as leasing, but he was concerned the City only received
one proposal, which seems to be an increasing pattern. He knew nothing
about water trucks, but he did Google it and the bid appears to be within the
price range.
Mayor Jonathan called for the vote and the motion carried by a 5-0 vote (AYES:
Harnik, Kelly, Nestande, Weber, and Jonathan; NOES: None).
19
PRELIMINARY MINUTES
REGULAR PALM DESERT CITY COUNCIL MEETING NOVEMBER 15, 2018
DRAFT
F. REQUEST FOR DIRECTION IN THE IMPLEMENTATION OFA WOUNDED
WARRIOR RECOGNITION PARKING PROGRAM.
Traffic Engineer Randy Bowman requested Council direction on the
proposed Parking Recognition Program for Wounded Warriors. At the
September 27, 2018, City Council meeting, Councilmember Nestande
requested the City consider parking spaces for combat wounded veterans.
Since that meeting, staff has researched this, including having conversations
with people who have experience with the program in other cities. Staff
looked at the program in the City of Temecula and borrowed some of the
aspects of their program; the draft procedure is attached to the staff report.
For the applicability and eligibility in the draft procedure, staff is proposing
the signage program, which would acknowledge wounded warriors with
purple heart designation to be eligible for a parking space through
businesses or owners of a parking lot within the City of Palm Desert. The
requirements drafted in the program include a number of rules of the road,
listing A through F. The program could provide a limited number of
Wounded Warrior Parking signs available each year, and the City is looking
at a potential budget of $5,000 annually. The level of interest is unknown,
which is why staff is estimating a $5,000 allotment. Signs would be provided
at no cost to approved applicants, and it will be on a first come, first serve
basis. The City will have a certain amount allotted every year, and they will
be issued to approved applicants until that supply is exhausted. The City
acknowledges that it has parking codes establishing minimum parking
requirements for businesses, and this program would not play against them,
but rather use any extra spaces. This Program would not supplant or
replace Americans with Disabilities Act (ADA) designated parking stalls. In
addition, staff is proposing the signs will be supplied to the owner of the
parking or business if they don't own a business themselves. The sign
recipient or successful applicant would then be responsible for maintaining
the sign as well as installing it on the business owner's property. The
procedures drafted provides flexibility to the applicant in that the application
can be submitted in person, mailed or emailed. Staff is planning on providing
the application on the website for downloading and completion. As already
mentioned, staff is estimating a $5,000 allotment, which will come out of the
City's General Fund, at least for the first year, and staff can propose
adjustments to that figure for subsequent years. Lastly, staff is also
requesting City Council direction on the proposed program, which will result
in approval of a resolution to implement the program. He displayed a sample
of a wounded warrior parking sign, which included the "thank you" sign
below; it was obtained from the City of Temecula. It's very similar to a sign
that has been given out by the Wounded Warrior's Program. Responding to
question, he confirmed staff was requesting direction on the program as staff
did not prepare a resolution for approval at this time.
20
PRELIMINARY MINUTES
REGULAR PALM DESERT CITY COUNCIL MEETING NOVEMBER 15, 2018
DRAFT
Mayor Pro Tem Weber asked if all wounded warriors receive a Purple Heart,
because some people have license plates identifying them as a wounded
warrior. She also questioned if a placard will be placed on their window.
Mr. Garcia clarified the Wounded Warrior Program is who designates parking
spaces, the only thing the City would be providing would be the parking
signs, and it would be up to the businesses to erect them. The City would
not be designating who is and who isn't a wounded warrior.
Mayor Pro Tem Weber wondered if Code Compliance would be looking for
some type of placard on the window.
Mr. Garcia said that was not the intent.
Forthe audience's benefit, Councilmember Harnik explained the City of Palm
Desert supports the military to the point that it has adopted the 7th Regiment
in Twenty -Nine Palms. She went on to say these parking spaces would be
on private property and not on public streets.
Mr. Garcia concurred.
Councilmember Harnik said she didn't believe everyone that is wounded
receives the Military Order of the Purple Heart. She was concerned over
having these signs and having parking stalls sit empty if the City didn't have
a wounded warrior. She asked if these signs can be placed on existing
handicap spaces.
Mr. Garcia answered no, because handicap spaces are mandated.
Councilmember Kelly said the requirements under Section V - "D," where it
states, "To be eligible, the City's minimum parking requirements must be
met," and she heard staff to say the intention is for minimum parking spaces
are to be met without accounting those designated for this program.
Mr. Garcia agreed, stating this program cannot allow the merchant to fall
below the minimum parking required.
Councilmember Kelly suggested making that requirement more clear by
saying, "Must be met apart from spots allocated to this program,"because
the City would then be ensuring adequate spaces without reference to one
that might be left empty as a function of this program at any particular time.
Mayor Jonathan stated that when a project is approved, it's approved with a
certain number of parking spaces, some of which are designated handicap.
If a property owner walks into City Hall requesting a wounded warrior plaque,
staff will need to ensure there is overage of parking spaces, adding it will
21
PRELIMINARY MINUTES
REGULAR PALM DESERT CITY COUNCIL MEETING NOVEMBER 15, 2018
DRAFT
require staff time and analysis. In other words, someone just couldn't walk
in nor order online one of these signs, because they may not have overage
spaces available. If the City moves forward, this was not just about handing
out plaques.
Mr. Garcia said staff is aware of that issue, noting he worked in the City of
Temecula managing this type of program, and it was not for every merchant
or every vendor. It had to be for a vendor who made a request, where the
city evaluated whether they met the minimum parking standards, and if they
did, one sign was allowed per merchant. There was one vendor who wanted
to apply a blanket to the parking lot to show their patriotism, but that would
be a disservice to the rest of the city's residents as it would limit parking.
Mayor Jonathan offered that in Palm Desert it wouldn't just be merchants, it
would also include offices, medical, etc. He added the $5,000 estimate
struck him as a low if it will require staff to pull up approvals and ensure there
is adequate parking.
Mr. Garcia stated Public Works will work with Planning to see if there is an
expedited way to review the application process.
Councilmember Nestande believed there was already data from other cities
regarding costs that could be obtained and hopefully staff will learn it's not
more than $5,000.
Mr. Garcia explained the City of Temecula had the signs donated by the
Wounded Warrior Program, and the only sign not paid for is the one below
that states, "Thank you for your service," which the City provided at a
reduced rate. The property owner is responsible for erecting the sign, pole,
and straps, so it truly is a minimal expense.
Councilmember Harnik knew there wasn't a person in the Chamber that
wasn't a patriot, but she's concerned about excluding veterans that are
experiencing PTSD (Posttraumatic Stress Disorder) that wouldn't apply to
this program. Also, there are police and fire that get hurt while on duty, so it's
one of those things where you place restrictions on something and exclude
others. She loves the idea as she has a lot of veterans in her family, but the
program doesn't make her feel that the City is being totally inclusive of those
who have been wounded.
Mayor Jonathan is also concerned that spaces may go unused for a long
time, because in the overall population, thank goodness, there are not many
wounded warriors. However, for the few that do exist, everyone wants to
support in any way they can. He asked if there was any data from other
cities that demonstrate this is an effective program, because it would be
useful to him to have that type of data.
22
PRELIMINARY MINUTES
REGULAR PALM DESERT CITY COUNCIL MEETING NOVEMBER 15, 2018
DRAFT
Mr. Garcia offered to contact other agencies to inquire about their usage.
Councilmember Harnik suggested continuing the item until the City Council
has more information.
Mayor Pro Tem Weber suggested coming up with a sign that merchants and
businesses can post in their window that thanks veterans for their service,
but without tying up parking spaces. It was her understanding that wounded
warriors have access to the blue ADA placards, and what the City is trying
to do is say thank you in a special way.
Mayor Jonathan liked that idea, which is something he had not considered.
If the Wounded Warriors already have access to the blue placards parking
permits, there wouldn't be a conflict with at least showing something that
showed the City's appreciation. For him, he wants to know if the Program is
actually effective, because if it isn't, it can explore other avenues such as
Uber rides, etc.
Councilmember Harnik liked the idea of a placard at the window saying the
City supports its military.
Councilmember Nestande believed the Wounded Warrior Program was a
good way to show that Palm Desert expresses a big thank you to its veterans
who have fought for this Country. It seems in this day and age, they are not
held up in high esteem as they did in years past. It's unfortunate that even
on Veteran's Day, people are not giving them a second thought, however,
she understands more data is needed.
Mayor Jonathan said he would like further clarification on what is considered
wounded and what distinguishes them from a Purple Heart.
Councilmember Kelly added that in large part, this is a symbolic program.
It's not an effort on the City's part to examine people's condition and
determine who's qualified for what. She sympathized with the motives that
caused Councilmember Nestande to bring this forward, because it's a simple
way in which the City as a community can do something that communicates
general appreciation. She also heard Councilmember Harnik's concerns
about others who have served or have served as first responders. She
believed that upon seeing this, even if the parking privileges didn't apply to
them, they would feel a sense of appreciation that the City has identified
those who have sacrificed most and are still with us. She supports the
proposal of moving forward with the research of the good questions raised.
Further, the program has a lot of protections built in and many provisions to
assure City staff is not overburden, because it's essentially a user -driven
program. Property owners make the initiative and property owners make the
23
PRELIMINARY MINUTES
REGULAR PALM DESERT CITY COUNCIL MEETING NOVEMBER 15, 2018
DRAFT
choice. She said the Program was well structured, but she certainly supports
the added research.
Councilmember Harnik agreed this was a very symbolic program, because
she certainly didn't want to assume she knew what veterans are going
through, such as what someone with PTSD is thinking when they see a
placard for a wounded warrior, which may have an adverse effect if he/she
felt excluded. She wants the program to be inclusive, so more information
would be appreciated, but Councilmember Nestande is right in wanting to
show appreciation to veterans. Perhaps the City could place something at
the entrance of the City that indicates veterans are welcomed.
Mayor Jonathan commented that if staff finds spaces are underutilized,
perhaps the City can consider expanding their use to veterans, active
military, police, and first responders. He believed there is a consensus to
honor veterans, but the question is what is the best way to do it.
Councilmember Nestande moved to, by Minute Motion, continue this item to date
uncertain. Motion was seconded by Weber.
Mayor Jonathan thanked Councilmember Nestande for bringing this matter
to the City Council's attention, because whatever the result, it's good Council
was trying to implement a program.
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 5:59 p.m. He resumed the meeting at
6:08 p.m.
G. REQUEST FOR AUTHORIZATION TO DEVELOP AN EXCLUSIVE
NEGOTIATING AGREEMENT FOR THE SALE AND DEVELOPMENT OF
THE CITY -OWNED PROPERTY LOCATED AT THE SOUTHEAST
CORNER OF SAN PABLO AVENUE AND FRED WARING DRIVE
(CONTRACT NO. C37850).
Mr. Alvarez stated the subject property is owned by the City of Palm Desert
and is located at the southwest corner of San Pablo Avenue and Fred
Waring Drive. He displayed a map that identified the five parcels that were
purchased in 2014 by the City. This is a critical piece of property and a
catalyst corner to the growth of the City, and it is also part of the Envision
Palm Desert, Economic Development Strategic Plan, and General -Plan to
create a vibrant downtown corridor. This new corridor is to tie the
commercial and shopping areas along Highway 111 and El Paseo to the
future plans of the San Pablo street designs, the Civic Center, College of the
Desert, and the future CV Link, which will all be concentrated near the
24
PRELIMINARY MINUTES
REGULAR PALM DESERT CITY COUNCIL MEETING NOVEMBER 15, 2018
DRAFT
subject property. The City started the process by requesting proposals from
respondents and developers to develop the site as Mix -Use Project that will
be the catalyst to start the improvements on the San Pablo Corridor. Staff
sought proposals that would be consistent with the General Plan, the
Highway 111 Development Code, and the San Pablo street designs that are
currently underway. On August 10, 2018, the City received four proposals,
which were reviewed by a team consisting of City staff from different
departments, and this team recommended three respondents to be
interviewed. There was one respondent that was non -responsive due to
missing information. On October 10, a Study Session was held before the
City Council, at which time, the three respondents Chandi Group USA,
Coachella Valley Housing Coalition, and Desert Rock Development had an
opportunity to propose their vision for the site and provide additional details
that may not have been included in the written proposals. As part of the
evaluation criteria, staff reviewed developer experience, qualifications,
conceptual site plan, elevations, compatibility to current City plans,
compatibility to San Pablo, and a vision for land uses that were being
proposed. Other items included, access, parking, sustainability design, and
cost proposals that culminated with the study session presentations. Staff
looked at everything collectively as a team and ranked the respondents
initially with the written proposals and collectively with both the written and
the presentations. After the review process, staff ranked Desert Rock
Development as the top responding developer. The evaluation table is part
of the staff report. The next step here, if the City Council chooses to go with
Desert Rock Development, is to allow staff to develop an Exclusive Right to
Negotiate Agreement (ENA), which allows staff to look into greater detail
what is needed for the next steps. Those particular steps will be developed
and identified in the ENA along with a negotiated sales price at or above
appraised value, a due diligence period, scope of project, and include
milestones to achieve entitlements and a deposit. This process allows the
developer to fine tune the concepts, the plans, and provide a final plan of
action. Ultimately, the process will turn into a Purchase and Sale Agreement
whereby the City opens up escrow, open up the entitlement process, and
property will not be sold until entitlements are in place. Staff will also look at
other checks and balances to make sure the project is moving forward before
the property is turned over to the developer from a real estate transaction
standpoint. He noted the City Council reviewed the site plan at the Study
Session, and Desert Rock's proposal is 29 units and provides 1,100
square -feet of ground floor retail with some flexibility to increase it. In
general, it's a three-story Mix -Use Project configured in an L-Shape. Staff
recommends Desert Rock Development be awarded the opportunity to
develop an ENA with the City and return to the City Council for final approval.
Mayor Pro Tem Weber questioned what would be the next steps if the City
Council did not agree with staff recommendation.
25
PRELIMINARY MINUTES
REGULAR PALM DESERT CITY COUNCIL MEETING NOVEMBER 15, 2018
DRAFT
Mr. Alvarez replied staff would have to reevaluate a different direction, and
certainly the City Council had the ability to choose a different developer,
because this evening was strictly staff's recommendation based on its
analysis of the information presented both in written format and as presented
at the Study Session.
Ms. Aylaian added if Council were to select a different high-ranking
developer this evening, the steps going forward would be the same as
outlined this evening, but just with a different developer. Responding to
question, she said the City could not have to start over if it chose to go with
a different developer.
Councilmember Kelly noted she has received revised architectural
renderings from the Chandi Group USA, questioning if those were
considered by staff in arriving at their recommendation.
Mr. Alvarez said it was not, because staff only evaluated what was originally
presented at the August 10 deadline.
Councilmember Nestande inquired about the scoring system, because it
seemed a little subjective to her. For example, if modern architecture, roof
decks, and good interior design were top priorities for ranking purposes,
because for Desert Rock, those were the first two items listed as most
important, which she thought would be the easiest to remedy if staff didn't
like a design. In her opinion, greater overall development experience is the
most important and more difficult to replace. Also, she went back and
watched the recorded Study Session on this issue, and 2 hours and 12
minutes into it, the Mayor asked questions about the design, because the
Chandi Group originally felt it was better to do a collaborative design. So
whoever is chosen, whether its Desert Rock or the Chandi Group, they could
partner with the City and come up with the best design. She said the Mayor
asked a couple of great questions about it and Mr. Alvarez said the City
could absolutely collaborate with the design with whoever is chosen. Based
on the recommendation, it seems the City is not doing that in terms of
ranking. She's not saying Desert Rock doesn't deserve to be the chosen
one, but she just didn't see it in the report.
Mr. Alvarez called attention to the last page of the staff report where you will
find a Proposal Score Sheet that identifies the criteria across the top
columns. Staff did give a large ranking to the land -use concept and design.
Of course, experience, qualifications, experience with entitlements, and other
items in terms of compatibility with the General Plan, San Pablo, and
Highway 111 Code, were considered, but there was a larger ranking for the
land -use concept and design that was identified. Staff is open to whichever
direction the City Council is wanting to go, stating staff will work with any
developer selected. He said staff would and wants to be in collaboration with
26
PRELIMINARY MINUTES
REGULAR PALM DESERT CITY COUNCIL MEETING NOVEMBER 15, 2018
DRAFT
whomever the City Council chooses, adding the Community Development
Department will also be involved with that design process.
Councilmember Nestande noted Desert Rock provided a realistic scheduled,
but noticed the Chandi Group appears to move more quickly in opening
escrow and closing escrow with fewer restrictions.
Mr. Alvarez said Councilmember Nestande was probably looking at the Pros
and Cons identified in the staff report. Staff spent quite a bit of time
reviewing all these different components, some subjective and others
objectively.
Councilmember Nestande replied that based on her notes, Desert Rock is
requiring 12-months due diligence and the Chandi Group was asking for 3-
months due diligence. Also, Desert Rock will only close escrow once they
have all approvals and a 30-day escrow, and the Chandi Group will close
escrow within 45 days without the need for all approvals to close escrow,
asking if they were all equal and/or how did staff rank them.
Mr. Alvarez explained it was not an apples to apples comparison because
some developers are wanting to take quicker action than others, but staff
knows what is realistic from a development entitlement standpoint, and it felt
Desert Rock's approach, which was to obtain the entitlements and then close
escrow, is what the City would recommend. The City wouldn't want to close
escrow on this property without those certainties that a project is going to be
approved and is also ready to be developed.
Councilmember Nestande said the Chandi Group is putting up their own
money, so she felt they would be the best judge of a realistic schedule.
Mr. Alvarez responded staff did not look into financial capabilities of
developers at this point. However, staff would not recommend selling a
property ahead of entitlements, because it would then lose complete control
of the site. Further responding, he said entitlements could be negotiated.
Mayor Jonathan understood both applicants had wiggle room to what
actually will be built and the current renderings are preliminary designs. He
asked staff when will the City Council see the final design and know what
kind of activity it will house.
Mr. Alvarez said staff takes the ENA period, which is typically a six-month
process, conducting due diligence, looking at additional concepts and
designs, and at the end of that period, require the developer to meet a
milestone of providing a development application. At that time, the City
would have a certain design that would be submitted to the Planning
Department who starts the entitlement process by going through Department
27
PRELIMINARY MINUTES
REGULAR PALM DESERT CITY COUNCIL MEETING NOVEMBER 15, 2018
DRAFT
reviews, Architectural Review Commission (ARC), the Planning Commission,
and ultimately the City Council.
Mayor Jonathan asked if the use was also defined at that time, because
there was discussion about the first floor on whether it was residential, retail,
creative retail, etc., which is very important to some on the City Council.
Regardless of who is selected, when is the design and use pinned down.
Mr. Alvarez replied that during the six -months ENA period, under the project
scope, staff has the ability to pin down and identify the square footage for
retail, the number of apartments, and then require the entitlement package
to be submitted, and then moving to the next step, which is the Purchase and
Sale Agreement. At that point, the City will have a project fully designed and
fully submitted. Further responding, he confirmed the Purchase and Sale
Agreement is subject to City Council approval. Additionally, through the
entitlement process, Council has an opportunity to review the ultimate design
and use of that project.
Ms. Aylaian reminded the City Council that what was put forward in the
proposals by each developer is what they offered, but during the negotiating
period staff can still seek and negotiate specific conditions or items on behalf
of the City Council. She said those items are discussed under Closed
Session and then staff works with the developer to make them part of the
project. She said this was not a situation where a developer puts forward a
project and that's the end of it, because the City Council will continue to be
able to express concerns through ongoing negotiating periods, but it's done
under closed session.
Mayor Pro Tem Weber stated that on the advice of the City Attorney and for
the record, she met with the Chandi Group a couple of weeks ago.
Councilmember Kelly noted she did as well, and Councilmember Nestande
disclosed she met with both Desert Rock and Chandi Group within the past
two months.
MS. TONI MERRIHEW, Chief Financial Officer for Chandi Group USA,
recognized staff recommended another bidder for this project, however, she
asked the City Council to still give consideration to awarding the
authorization to develop an ENA with Chandi Group USA. In reviewing the
staff report, it was noted and acknowledged that Chandi Group has greater
overall development experience than any other applicant, which they do.
Their deep development experience has taught them that working side by
side with cities is critical to achieving an overall design that compliments a
city's vision. She said Palm Desert wants a successful project and they do
too, so it's in their best interest to work with the City to achieve it. She
commented that getting it right matters to them. In addition to their deep
development experience, Chandi Group USA has the financial resources to
28
PRELIMINARY MINUTES
REGULAR PALM DESERT CITY COUNCIL MEETING NOVEMBER 15, 2018
DRAFT
not only close escrow on the acquisition, but to complete the development
in a realistic time frame, all of which would be laid out in the negotiating
agreement. Quite frankly, if the City wants to go slow, tying up money in
escrow, they are okay with it as well. She said Chandi Group USA was given
low scoring in the area of architectural design, but for Council to keep in mind
this period was to award an opportunity to negotiate for the purchase of the
property. The designs presented by their firm and other applicants were
concepts, and it's not uncommon for designs to go through several
alterations when brought before the Architectural Review Commission and
Planning Commission before the final design is approved. As staff noted,
their intent is to go through a six-month ENA process before a plus or minus
due diligence entitlement process. Therefore, there is plenty of time to work
together to get the design right. It's important to understand, and what really
matters, is who has the experience and financial capacity to do what is
promised collaboratively with Council to bring its vision to life, and they do.
They have the same vision and passion for this project that both staff and
City Council has for the vitalization of the San Pablo Project. They remain
committed to bringing unique retail businesses to the entire first floor. They
are looking at 6,000 to 8,000 square feet of new businesses, and they are
open to establishing milestones and other parameters within the negotiating
agreement as to the nature of the retail tenants sought after. They have
continued to refine and enhance their original design as submitted in an
effort to demonstrate their enthusiasm and commitment to the project. They
have been able to share those designs with some Councilmembers, but for
those that weren't able to get the email, she had them available. Ultimately,
she believed the Chandi Group was the right choice for the City of Palm
Desert to create a project that both the developer and the City will be proud
of for years to come. She said experience, capacity, collaboration, passion,
and delivery is their promise.
MR. NACHHATTAR SINGH CHANDI, Chandi Group USA, Applicant, stated
they offered the right price on the property for more than the appraised
value. Secondly, the Chandi Group never said their design was the best
when they made their presentation, because they said they will work with
City staff on the design together. He is appealing to the City Council once
again, because he loves the site on the corner of San Pablo, which will be
his first project with Palm Desert, and he wants to make sure the City will not
regret granting the project to the Chandi Group. He wants to make an
example of their project for other developers that follow.
MR. BILL SANCHEZ, Representative of Desert Rock Development, thanked
the City Council for the opportunity to review their proposal. He noted their
President, Michael Meade wished he could be here this evening, but he's at
the hospital for the birth of their third child. He thanked staff for putting
together a Request for Proposal (RFP) that was very clear on the
expectations of the City. When they saw it and reviewed it, they knew it was
29
PRELIMINARY MINUTES
REGULAR PALM DESERT CITY COUNCIL MEETING NOVEMBER 15, 2018
DRAFT
something Desert Rock wanted to pursue and assembled a team of
consultants to review the City's General Plan, San Pablo Corridor, and based
on those two documents, they put together a project they strongly felt met
the criteria and vision of the City. As mentioned by staff, it will be the catalyst
for the San Pablo Corridor, and he believed they demonstrated their project
can achieve it. They designed their concept based on the City's vision.
Responding to a comment made earlier by one Councilmember regarding
the financial capacity, which was not a criteria and/or requested information.
They are financially sound, ready, and eager to move forward with this
project. Councilmember Nestande pointed out they have a 12-month due
diligence in their schedule, but they actually have three months as well, and
it was included in the package they submitted.
Councilmember Nestande apologized, stating she misspoke.
Mr. Sanchez went on to say their team includes an architect that has over 30
years of experience in both retail and commercial projects, a general
contractor who has built high -end projects worth more than $300 million, and
himself. He currently is a Planning Commissioner for the County of
Riverside, stating he understands entitlements as he has processed them,
and has been on both sides of the podium. He fully understands there will be
negotiations with staff and the project will go through the ARC, and if there
is something that doesn't fit the vision, that is the time to address it and
modify the project to achieve the City's vision. They are excited to move
forward, and if selected as staff recommended, Palm Desert will not be
disappointed. The last team member is Michael Meade, who has a
Commercial Real Estate Brokerage Firm, so he has the pulse on the
commercial market and understands the types of retail that would be willing
and able to move into a project such as this one. He believes they have the
team, the vision, and passion. He believed both applicants had the passion,
which is why they were both here this evening fighting for the project,
however, staff has evaluated the applicants and made the right choice in
selecting Desert Rock Development. He hoped the City Council will affirm
staff's recommendation.
MR. EDWARD HOLZHAUER, Palm Desert, CA, noted the subject property
is in his neighborhood, and as someone who has lived in Palm Desert for two
years and drives by it every day, he wondered why the City wasn't doing
something there. He spoke earlier this evening about the San Pablo Project
and Council being focused on business. Hearing that it's proposed to be
zoned multi -levels, he encouraged the City Council to also take into
consideration that just down the street is College of the Desert. Every
Tuesday and Thursday morning, there is a myriad of traffic down Fred
Waring from people out of the area having to come to the college. He works
at Westfield Mall, so he sees the traffic patterns and understands the area.
He felt Council needed to look at providing affordable housing in this project,
30
PRELIMINARY MINUTES
REGULAR PALM DESERT CITY COUNCIL MEETING NOVEMBER 15, 2018
DRAFT
especially for students, because they are the future. In looking at this
proposal and looking at the three issues and three developers, he sees the
Coachella Valley Housing Authority was not recommended, yet they work on
behalf of affordable housing. He said Council should select a project that
works for the City and is inclusive of everyone in the community instead of
just another vanity project.
Councilmember Harnik inquired if staff had received the new renderings
submitted by the Chandi Group.
Mr. Alvarez said he received it this afternoon via email from the City Manager.
Councilmember Kelly said she wanted to articulate the case for the
Coachella Valley Housing Coalition (CVHC) to see if it resonated with any of
her colleagues, even thought some distinct Pros were outlined compared to
the other two proposals. Before doing that, she wanted to express she saw
nothing but happy endings here, because all firms are superb. It's her
sincere hope that whatever outcome is reached, the remaining two
applicants will look for other suitable opportunities in the City, because they
have all shown excellent qualifications and commitment to City objectives.
What she sees as the beneficial picture for the CVHC commitment, as the
corner develops is that Council knows it's going to create restaurant sector
and retail jobs, and the City can expect that many of the employees who fill
those jobs will be at income levels that qualify them for affordable housing.
However, the other two applicants might not make that affordable housing
aspect accessible. The City's grand vision is to support a walkable lifestyle,
so it struck her that it would be an immense advantage to have housing
nearby that is geared toward jobs being created by a corridor, so that people
working on the corridor could enjoy that walkable lifestyle with housing,
education, and all the amenities of the Civic Center as well. She offered that
as an option to test how that plays with others as Council balances the pros
and cons of each of the proposals.
Councilmember Nestande said she has narrowed it down between the
Chandi Group and Desert Rock.
Mayor Jonathan agreed with the objectives stated by Councilmember Kelly
to create affordable housing near the workplace, stating it would be walkable
and reflects the needs of the community. However, this particular corner is
a very important note, and it can be the initiator to the vision the City has for
San Pablo and the downtown City core. There is a great opportunity here to
create a reason for people to go to the City core and downtown, creating a
synergy and making it a go -to -place. But he also believed, the City can have
its cake and eat it too, because just a couple of blocks down on Catalina
Way, is a lot the City owns that can and should be developed for affordable
housing. The City also owns other properties that are not walkable, but is
31
PRELIMINARY MINUTES
REGULAR PALM DESERT CITY COUNCIL MEETING NOVEMBER 15, 2018
DRAFT
working toward making them affordable housing. He pointed out Palm
Desert has more than 1,100 affordable housing units already, but it can and
should do more, but he didn't believe this was the parcel to accomplish that
goal.
Councilmember Harnik concurred, because within that area, a lot of
affordable housing already exists. Those on the Council who have had an
opportunity to take a Housing Authority Tour have learned how well
affordable housing units are integrated into the community, which she
believes another one was due. She said the City has tasked the San Pablo
corner property to set a tone for that entire area, and it's not meant to just
have something pretty there, but to generate revenue for the future of Palm
Desert. It's meant to ensure revenue to support public works and public
safety, and create a walkable space. The project that ends up at this corner
will drive what the San Pablo Corridor will look like, and what it will attract to
that corner. The City worked on this in the General Plan Update and the
Strategic Plan. She noted she had a long discussion with the Executive
Director of the Joslyn Center regarding the empty property near the Center,
because he was approached about putting senior/affordable housing there,
and she mentioned to him the City may be going out for a RFP for that
property as well.
Mayor Pro Tem Weber said the City Council started working on the San
Pablo Corridor several years ago when it hired the consultants to establish
procedures for the Envision Palm Desert, which started this whole thing
rolling of setting the tone. She said this particular corner has to have a huge
punch to it and send the message that Palm Desert is here. Council also
wanted to have more retail than housing, stating the City has far exceeded
its fair share of affordable housing, compared to other cities. She believed
Palm Desert has met the affordable housing criteria, and now it needs to
have a place where people hang out, have something to eat, provide retail
and draw excitement to the Corridor. She said the current staff team that's
been working on this project will be pleasantly surprised 15 years from now,
to see the part they played in setting the tone for this part of the City. She
is looking forward to a project that will shout out to the community and make
itself known, including meeting the needs of the City. Staff mentioned that
one of the proposals will provide 1,100 feet of retail, and the City wants more
retail and excitement to the corner. With new plans allowing for higher
heights, the City is allowing a developer to meet the requirements and still
meet the requirements for housing. During the study session, she heard
different aspects of the proposals and has also narrowed it down to two,
because the other project clearly is more suitable in another area of the City
for affordable housing.
Responding to comment, Councilmember Kelly agreed she heard enough
comments on the issue of affordable housing, and she's not going to press
32
PRELIMINARY MINUTES
REGULAR PALM DESERT CITY COUNCIL MEETING NOVEMBER 15, 2018
DRAFT
an outcome that has no other support. Therefore, Council can move on to
compare the remaining two proposals.
Councilmember Nestande noted she misspoke when stating Desert Rock
needed a 12-month due diligence period, but she left off "and entitlement,"
in her statement.
Mayor Jonathan stated that in the perfect world, Council would have liked the
remaining two applicants to join forces to create something better than each
can individually, but that's fantasy. He said both applications are very
compelling and each has strengths, which is what was meant by an earlier
comment that the outcome will be a happy ending, in terms of the City, but
not so much for one of the applicants. This is a situation where the City can
only pick one of the two applicants.
Councilmember Nestande concurred, stating she too would have liked to
pick both applicants.
Mayor Pro Tem Weber sincerely hopes the applicant that is not selected
return to the City for another project and doesn't give up on Palm Desert,
because the City Council respects what has been presented by all.
Mayor Jonathan said he was focused on which applicant can bring the pop
/punch to the San Pablo Corridor, which is what is needed, because the
corner is the catalyst to jumpstart the downtown City core. The City now has
Hotel Paseo and AC3 Restaurant that started the buzz and Council needs
to keep that going by providing very attractive residential projects. In his
opinion, both applications have it, but then there has to be a reason to come
to San Pablo and downtown, and not necessarily to go to a certain store, but
just to hang out. He floated the idea of a Liberty Station market -type of thing,
but whatever configuration it takes, not only did he believe retail is needed
on the ground floor, but it has to be special and unique. If it were to be a
charcuterie (deli) or local chocolatier where people want to hang out because
they have something cool and even walk further to see some buskers (a
street entertainer). In his mind, as close as these two applications are, he
had a slightly higher level of confidence that the Chandi Group will bring that
to the first floor.
Councilmember Nestande concurred.
Councilmember Harnik stated that for the record, she received campaign
consideration from both entities. She concurred both applications are
outstanding and both look great. However, on October 12, she repeatedly
heard one applicant say they would come back to the City if they couldn't
provide retail and/or come back and ask for a different use, which concerned
her greatly, because the City made it abundantly clear it wants outstanding
33
PRELIMINARY MINUTES
REGULAR PALM DESERT CITY COUNCIL MEETING NOVEMBER 15, 2018
DRAFT
retail. She wasn't able to get beyond it and for that reason, she had
concerns with the Desert Rock Group.
Councilmember Kelly also gave a slight edge to the Chandi Group USA,
because the score sheets used placed considerable weight on the study
session presentations. What she heard from the Desert Rock Group
reflected excellent experience, excellent sourcing of information to the
project that could generate return within an acceptable time, and what she
heard from the Chandi Group was a commitment to be a little reckless and
do things that data and past experience might not convincingly demonstrate
quick return, but reckless in a thoughtful way that supports the City's vision.
In other words, she heard commitment to go out on a limb with the City to do
something bold. Both entities have the finances to perform, but if Council
was making a choice between the two, she is persuaded to give the edge to
the Chandi Group who also demonstrated a commitment to using the highest
quality of materials to be responsive to guidance to architectural design, and
she saw confirmation of it with the most current renderings they submitted.
Mayor Jonathan disclosed he too received financial support for his reelection
campaign from both applicants. From the beginning of this to the end, he has
had discussions either by person or by phone with all the applicants. As part
of their jobs, Council has to open their offices, minds, and be open to
discussions with residents and applicants. It's so difficult to have to make a
decision, because it is a small town where everyone knows each other and
likes one another. In terms of slightly tipping the scale, it was Mr. Chandi's
representation of making this project special, and he's going to take him at
his word. When someone like Mr. Chandi says he's putting his personal
worth behind the project and understands what the City wants, and that he's
going to make it happen, it speaks volumes. He's making the comments for
the record, not just as a compliment, but to be able to open up the minutes
to point out to Mr. Chandi's own promises. He can see the buzz that this
new project will generate and he's looking forward to it.
Councilmember Nestande offered she knew the Meade family and they have
been just wonderful, and to the Sacred Heart School and church, she would
say they are generous in their donations, so it comes with a heavy heart that
she is leaning and voting for the Chandi Group. She congratulated the
Meade family on the birth of their new baby.
Councilmember Harnik added, she appreciated the sustainable component
of the project by the Chandi Group, because it's important to her and the
City.
Mayor Jonathan stated that for the applicant that is not successful, he
emphasized there will be more opportunities to do this kind of development
in Palm Desert, particularly in the City Core and University Park Village. The
34
PRELIMINARY MINUTES
REGULAR PALM DESERT CITY COUNCIL MEETING NOVEMBER 15, 2018
DRAFT
City really wants to work with quality developers, which is what has been
seen here this evening. He sincerely hopes they won't give up on Palm
Desert.
Councilmember Nestande moved to, by Minute Motion, authorize staff to develop
an Exclusive Negotiating Agreement (ENA) with the Chandi Group USA for the sale and
development of the City -owned property located at the southeast corner of San Pablo
Avenue and Fred Waring Drive, and return to the City Council for approval of same.
Motion was seconded by Weber and carried by a 5-0 vote (AYES: Harnik, Kelly, Nestande,
Weber, and Jonathan; NOES: None).
Mayor Jonathan congratulated Chandi Group USA, stating he had nothing
but good things to say. Further, he looked forward to doing business with
both of the other applicants in the future.
H. INFORMATIONAL REPORT AND REQUEST FOR DIRECTION RELATED
TO AMENDING THE EL PASEO OVERLAY DISTRICT AND THE
ONE ELEVEN DEVELOPMENT CODE REGARDING ALLOWABLE AND
NON -ALLOWABLE LAND USES.
Associate Planner Kevin Swartz stated this is a follow-up item to the recently
adopted El Paseo Master Plan and at the request of Councilmember Harnik
at the October 11, 2018, meeting to look at additional land uses for El Paseo.
During the Gibbs Planning Group (GPG) Study, Mr. Gibbs stated the main
commercial corridor of El Paseo of one mile is too long, and as part of the
Master Plan, he recommended creating distinct districts. During this
process, Mr. Gibbs pointed out that if the City allows for offices on the ground
floor, the ideal location would be in District 3, the Mix -Use -Village. He
recently spoke to Mr. Gibbs regarding this topic and he had two additional
recommendations: 1) If Council allows for office use along the one -mile
corridor, to consider percentages within blocks to avoid over concentration
at one location; 2) Not allow office use on the corners, stating they should be
used to engage the street with restaurant gathering places, such as creating
the bulb -outs. Mr. Gibbs further noted that on the corner of Monterey
Avenue and Highway 111, there are two banks and a future bank, and in the
back is retail, which doesn't lend itself to creating a civic gathering place or
vibe. In other words, this was an example of what not to do on the main
corners. Staff is seeking direction from the City Council on whether or not
office uses and similar uses should be allowed on the ground floor of El
Paseo, which would require a Zoning Ordinance Amendment.
Councilmember Nestande asked if staff received input from the El Paseo
Business Improvement District.
35
PRELIMINARY MINUTES
REGULAR PALM DESERT CITY COUNCIL MEETING NOVEMBER 15, 2018
DRAFT
Mr. Swartz replied that during the year -long conversations they did, and they
were spirited discussions where a consensus was not reached. Some were
in favor and others were not.
Councilmember Harnik recalled there were a lot of comments made about
it, but not necessarily that sides were taken.
Councilmember Kelly had a question about the feasibility of one approach.
She noted the phrase in the Overlay District description stating compatible
businesses which attract and sustain pedestrian interest. Would it be
feasible to provide office use via the Conditional Use Permit (CUP) process
with a showing that this criteria is met. In other words, to gear a response so
that the City can accommodate office uses that sustain pedestrian interest.
Mr. Swartz agreed it could be one approach, but this is actually language
from the El Paseo Overlay District (EPOD), so under Background Analysis
of the staff report, item B is correct, you do have personal services,
restaurant, and retail. However, Item A has wording that if a building is
constructed prior to July 1, 1987, it will be grandfathered and office uses will
be allowed outright. Therefore, if someone wanted to go that direction, he
would recommend amending the language in this section.
Mr. Stendell understood the question was that in a broad sense, a CUP
would be a good use to ensure a pedestrian compatibility of an office use.
Councilmember Kelly answered yes.
Mr. Stendell said the answer would then be yes.
Mayor Jonathan asked if Mr. Gibbs provided advice or encouragement for
office use on El Paseo.
Mr. Swartz said Mr. Gibbs did not provide a direct response, but he did say
that in the mix use area, it could be compatible toward the section on the
east end.
Councilmember Harnik added Mr. Gibbs suggested a percentage cap if the
City Council wished to move in that direction.
Councilmember Nestande asked about the vacancy rate on the east end,
because it seems something is better than an empty space, and it's been
vacant for a long time.
Mr. Swartz replied that the percentages were not broken down, but it was
11.5% for the entire street. He offered to provide the data to the City Council
at a later date.
36
PRELIMINARY MINUTES
REGULAR PALM DESERT CITY COUNCIL MEETING NOVEMBER 15, 2018
DRAFT
Mayor Pro Tem Weber asked if there have been requests to put offices in
those areas.
Mr. Swartz answered yes, stating the most recent one was Raymond James
Financial Services who was hoping to relocate to the Presage Building,
which would fit with that mix use in the eastern area.
Councilmember Harnik stated that at the October 11, 2018, City Council
meeting she requested staff look into the existing overlay, but she had
brought it up for years, but nothing had been done. She said the City has
evolved and yet this 1987 El Paseo Overlay had remain in place. She
recalled Councilmember Nestande a few meetings ago questioned the data
provided that people will only walk a certain distance, stating it may be
antiquated data. Instead of latching onto or complaining that El Paseo is too
long, it should embrace the fact that it has a one -mile long of wonderful
shops, restaurants, and art. She didn't believe it was too long, because it's
very walkable. The City's goal has been to create a pedestrian friendly area,
and decades ago in 1987, we became dependent on vehicles. However,
people are no longer that dependent on cars and the City is trying to create
a different feel on El Paseo. The El Paseo Business Improvement District
(EPBID) did not support creating districts, but she believed they would be
amendable to percentages and certain types of businesses that are currently
not included, unless the City uses the broad overlay language mentioned by
Councilmember Kelly. Continuing to allow spaces to sit empty when there
is opportunity for good business to go in to create pedestrian traffic, is
irresponsible. Everyone has seen retail evolve and the City has to grow along
with it. Needless to say, she has strong feelings about revisiting this overlay,
especially when there is opportunity for a good client like Raymond James
Financial Services to go into the soon to be empty Presage Building, and if
a CUP process through percentages can afford it, she was fully in favor.
Mayor Jonathan wants to be careful here, because Council was currently not
considering Raymond James going into that building, today was about a
conceptual issue. He didn't want to dive too deep into a specific property or
potential tenant, because this was a general discussion about zoning.
Councilmember Harnik explained she was using a great example for this
particular discussion.
Mayor Jonathan added that's what he wants to be careful about because
that may or may not happen and today Council is not here to address such
a situation.
Responding to question, Councilmember Harnik clarified that the EPBID did
not look at districts favorably.
37
PRELIMINARY MINUTES
REGULAR PALM DESERT CITY COUNCIL MEETING NOVEMBER 15, 2018
DRAFT
Councilmember Kelly agreed there was a lot of push back on districts, but
she felt the City could do something around this issue that might ultimately
allow districts to naturally evolve. She couldn't embrace the idea that any
tenant is better than an empty building, because some tenants can
discourage businesses from locating in the vicinity, so an overly permissive
policy could cause some deterioration in the character of the street. She
encourages staff to come back with a proposal that allows use of the CUP
process to permit offices with a showing that the nature of the office attracts
or sustains pedestrian interest with the parameters that Mr. Gibbs suggested
in terms of percentage cap and none on the corners. The reality is that there
are upscale offices that would attract people to the street and become
patrons of the retail businesses and restaurants. She said the City needs to
be adaptable to conditions as they change, and it would be preferable to
have that kind of policy in place, positioning Council to respond to proposals,
instead of just opening the door blindly.
Mayor Pro Tem Weber understood that in the meantime, a business could
approach the City with a CUP request regardless of what the City Council did
at this moment and/or only if Council allows it.
Mr. Stendell explained that offices are currently prohibited. The suggestion
he's hearing from Council is to allow by a CUP in the future if it met a certain
threshold criteria. In other words, the door is shut now, but Council can
slightly open it.
Councilmember Kelly agreed, stating that's the direction she would offer.
Responding to question, Mr. Stendell said the 1987 Zoning is in place, and
Council is taking a chance to strike things from the Code that's old and
irrelevant, which might be debatable, but a CUP process is available.
Mayor Jonathan was concerned about taking a step backwards when talking
about allowing offices on El Paseo. He almost rather let vacancies occur and
keep confidence in the City's dream and goal for El Paseo and let it have an
opportunity to develop in a way that is envisioned, which is now in the
General Plan. There are many good office locations in Palm Desert, and
frankly, he not getting why the City needs to add El Paseo to that mix. If
offices will be allowed, he could probably envision them on the second floor,
where retail doesn't always do well. However, he's having a hard time
embracing offices taking up potential retail, restaurants, or bar from the
ground floor, which are the kinds of things Mr. Gibbs said attracts people to
El Paseo, especially when there are plentiful locations in the rest of the City
for them
Councilmember Kelly remarked that not all offices are created equal. Her
point in adding that consideration was to open the City to offices that might
38
PRELIMINARY MINUTES
REGULAR PALM DESERT CITY COUNCIL MEETING NOVEMBER 15, 2018
DRAFT
add some punch for the general public. Maybe it's an office that appeals to
makers of a 3D printer where people can come in and be creative. What
she's trying to do is free the City from the stereotype that all offices are
necessarily boring, because as the world changes there is potential for
offices to offer that punch. Responding to question, she said if Palm Desert
wants a dynamic street, the City needs to be open to the idea that
businesses are going to come up tomorrow, but not on a system that's overly
ridged.
Mayor Jonathan said he would concur, but today is today, and if it happens
tomorrow, Council would have to react. He is very challenged in thinking of
an exciting and crowded office. The one thing that comes to mind where
there is a line of people was the DMV (Department of Motor Vehicle), and
he's not sure they belong on El Paseo. He's kind of open to it, because
there are wise minds here at work, and if that is the direction, he likes the
idea of using the CUP process, percentage, and he likes the concept of
districts. He agreed Council needs to hear from the El Paseo Merchants, but
that didn't mean it had to lockstep with what they feel, because they've been
wrong in the past. He wants the City to be careful in opening that can of
worms, but if it does, be very limiting, provide an application process that
defines what it will do to enhance El Paseo. Frankly, he would be hard
pressed to allow it other than on the second floor.
Councilmember Kelly offered an analogy for Council to think about. Ten
years ago if she proposed in having a car dealer on El Paseo, someone
would have said it was a terrible idea, but today, Tesla looks pretty good on
El Paseo. Therefore, she is suggesting the City be prepared to be the
shopping district where the next idea comes to, stating she's trying to create
some nimbleness in the Code.
Mayor Jonathan agreed 100%, but it might be premature to say it will allow
offices, which might send the wrong message.
Mayor Pro Tem Weber understands that if office use is allowed through a
CUP, it would invite someone very brave that thinks they can come in with
their exciting idea, so as not to completely shut them out. Also, she's not
sure she would restrict office use to the second floor. She agreed offices
usually belong in the second floor, but what's coming down the road is
unknown.
Mr. Stendell noted the Overlay permits offices on the second floor, but
restricts them on the first floor. He said Mayor Jonathan mentioned starting
in a limited fashion; conservatively. If directed to move forward as
suggested, staff would look at a very small percentage to ensure it did not
unbalance the scale.
39
PRELIMINARY MINUTES
REGULAR PALM DESERT CITY COUNCIL MEETING NOVEMBER 15, 2018
DRAFT
Councilmember Harnik agreed, stating it was also the recommendation of
Mr. Gibbs to look at percentages. She doesn't want to restrict the City, just
because it hasn't been done before. She appreciates the example provided
of Tesla on El Paseo, because when talking about exciting businesses, she
felt that was subjective. For example, something like a tutoring center where
parents drop their children for classes, they can go shopping while the child
is being tutored, which would be exciting to retailers. Another would be a
high -end investment group, such as Raymond James Financial Services,
where they have clients going in and out that may want to shop before or
after their meeting or be taken to lunch by their financial advisor. However,
today the City Council was providing staff direction to look at the overlay for
the future, stating she liked the idea of using percentages and starting out
slow. She made the remark that Council had to recognize that retail has
evolved.
Mayor Jonathan agreed Council has to have an open mind, so he's
persuaded, but the devils in the details. Part of the challenge is how you
define the businesses, especially office use that enhances El Paseo. Some
might think a brokerage firm may enhance El Paseo and others might view
it as a deadbeat. He said he liked Mr. Gibbs suggestion for placing them in
the eastern area.
Councilmember Harnik noted there are retailers in the eastern area, so the
City had to be careful, because there may be some opposition.
Mr. Stendell requested Council formulate a motion that actually provides
direction to staff to prepare a Zoning Ordinance Amendment with specific
bullet points that are most important such as no offices on corners,
percentage basis in the Mix -Use Village section of the eastern side of El
Paseo. If that is the directive of the City Council and/or if those are
unimportant items, that's fine, but staff needs formal direction to start a
Zoning Ordinance Amendment.
Mayor Jonathan suggested something more conceptual so as not to tie staff
down, because the concerns have been expressed. The main one is that if
there is going to be office use, it needs to enhance the viability and success
of El Paseo and not detract from it, and find a limited process for doing it.
Council has not yet determined if it should be in one particular section or
throughout, stating he would be interested in getting staff's feedback in this
regard.
Councilmember Kelly stated she was not enamored with trying to define a
section to which this is limited, because it ignores the potential push back
the City will receive on districts.
40
PRELIMINARY MINUTES
REGULAR PALM DESERT CITY COUNCIL MEETING NOVEMBER 15, 2018
DRAFT
Councilmember Harnik asked staff to consider the CUP as a process that
would help Council determine what would work on the street.
Councilmember Kelly moved to, by Minute Motion: 1) Receive and file an
informational report related to Palm Desert Municipal Code (PDMC) Section 25.28.040 -
El Paseo Overlay District (EPOD) and the One Eleven Development Code (OEDC);
2) provide direction to staff related to a potential Zoning Ordinance Amendment to PDMC
Sections 25.28.040 - EPOD and 25.18.040 - Land Use and Permit Requirements within
the OEDC, with direction to staff to prepare a proposed Ordinance which would permit
limited office use on El Paseo through the Conditional Use Permit (CUP) process when
showing enhancement to pedestrian interest and some limitations such as percentage
caps or corner exclusions.
Mayor Jonathan requested amending the motion to include feedback from
the Gibbs Planning Group on the issue of office use on the eastern section
of the street. Councilmember Harnik added the motion should include input
from any other resource.
Councilmember Kelly amended the motion to include staff bringing back any
formula, including input from the Gibbs Planning Group and/or any other resource for
consideration. Motion was seconded by Nestande and carried by a 5-0 vote (AYES:
Harnik, Kelly, Nestande, Weber, and Jonathan; NOES: None)
I. REQUEST FOR RATIFICATION OF THE CITY MANAGER'S APPROVAL
OF EXTRA WORK WITH IDEAPEDDLER, LLC, FOR THE CITY'S
MARKETING PROGRAM FISCAL YEAR 2018-2019 AND FOR
AUTHORIZATION OF FURTHER ADDITIONAL WORK THEREON
(CONTRACT NO. C37180).
Marketing & Tourism Manager Thomas Soule noted the staff report that
relates to expenditures with the City's creative agency IdeaPeddler, in order
to execute the Marketing Program throughout the fiscal year.
Mayor Jonathan asked if this additional expenditure strictly targeted
marketing Palm Desert and not the Coachella Valley or support for the
Convention & Visitors Bureau.
Mr. Soule answered yes, stating it's the same sort of work the previous
creative agency did.
Mayor Pro Tem Weber moved to, by Minute Motion: 1) Ratify the City Manager's
approval of extra work for Ideapeddler, LLC, Austin, Texas, in the amount of $62,600;
2) authorize an additional $77,402.42 to be used at the City Manager's discretion for extra
work that may arise during the year, as defined and provided for in said contract with
Ideapeddler, LLC. Motion was seconded by Nestande and carried by a 5-0 vote (AYES:
Harnik, Kelly, Nestande, Weber, and Jonathan; NOES: None).
41
PRELIMINARY MINUTES
REGULAR PALM DESERT CITY COUNCIL MEETING NOVEMBER 15, 2018
XVII. CONTINUED BUSINESS
None
XVIII. OLD BUSINESS
None
XIX. PUBLIC HEARINGS
DRAFT
A. REQUEST FOR APPROVAL OF HISTORIC LANDMARK DESIGNATION
FOR 47869 SUN CORRAL TRAIL, Case No. CPRC 18-01 (Gary Bindman,
Applicant).
Mr. Grance noted the proposed Resolution requests Council consideration
for approving Landmark Designation for the property located at 47869 Sun
Corral Trail. On September 25, 2018, the Cultural Resources Preservation
Committee at its regular meeting conducted a public hearing as required per
Palm Desert Municipal Code Section 29.40.070 and unanimously
recommended nominating the subject property with Historic Landmark
Designation. This property was directly related to the beginnings of Silver
Spur Ranch. It can be comfortably argued that since it was the first occupied
house on Sun Corral Trail, it played the largest cumulative visual role in
impacting future owners in this development. This 1956 private residence
exhibits many stylistic markers, which place it directly in the Coachella
Valley's modern period. This residence is largely intact and is a superb
example of mid-century modernism. The property is eligible for designation
as a City Historic District in accordance with the following City's Ordinance:
Item A - is associated with an event or events that have made a significant
contribution to broad patterns of history; Item C - embodies distinctive
characteristics or is one of the few remaining examples of style, type, period,
or method of construction and possess high artistic value; or Item F -
Reflects distinctive examples of community planning or significant
development patterns, including those associated with different eras of
settlement and growth agriculture, or transportation. He noted the owners
were in the audience.
Councilmember Kelly said she went to see the house and she's not seeing
how it came to be called the "Owl House."
Mr. Grance deferred to the Applicant to answer that question, which can be
done once the public hearing is open.
Mayor Jonathan called attention to the staff report where it states there is no
definite proof that a master architect designed the house, questioning if it
was a prerequisite for historic designation.
42
PRELIMINARY MINUTES
REGULAR PALM DESERT CITY COUNCIL MEETING NOVEMBER 15, 2018
DRAFT
Mr. Grance replied it could be a prerequisite, but it's not an impediment.
MayorJonathan stated that in trying to understand exactly what obtaining the
designation meant, Mr. Grance was kind enough to provide him with related
material. In reviewing it, there is one regulatory provision that troubles him
that he's fully not understanding. The provision states, "The contributing
properties that retain their historic structures are eligible for 30% additional
lot coverage of development." He asked if that was an automatic right that
once there is Historic Landmark Designation the property owner can build up
to an additional 30% to the rear of the existing structure.
Mr. Grance replied that if the property had sufficient room, it was correct.
Mayor Jonathan requested further clarification, because generally there are
setbacks, lot coverage, etc., so he didn't know why that was included if that
right exists anyway.
Mr. Grance explained it would be similar to the recent Miles Bates House the
City nominated and named Historic Landmark Designation, in that not only
are they preserving the existing residence by removing the additions, but
there is a future possibility to do future development on the back of the
property, subject to zoning provisions, setbacks, etc.
MayorJonathan is concerned, because if someone has a 10,000 square -foot
lot and a 1,000 square -foot structure, they have a right to build more,
because they are within the existing Zoning Ordinance. However, this
language appears to create an exception beyond the normal Zoning
Ordinance, giving automatic right to build 30% additional lot coverage of
development, and it doesn't indicate restrictions. He's reading it from the
Historic Landmark Pros and Cons list.
Mr. Grance said he didn't believe it was part of the City's Ordinance.
Mr. Stendell offered he wasn't aware of the language mentioned, and if there
is any concern, perhaps the City Attorney, Mr. Grance, and himself can
review it and return with a clarification.
Councilmember Kelly offered that rather than this being a benefit of extra
potential development, it's an exception from the usual limits upon
modification of a historic structure.
Mr. Hargreaves said he has not reviewed the mentioned language, but it may
be like with affordable housing, developers get density bonuses. Maybe with
the historical designation, they essentially get a density bonus with respect
to any future development that may occur on that lot, but they would still
have to go through the Planning process and having to meet all the other
43
PRELIMINARY MINUTES
REGULAR PALM DESERT CITY COUNCIL MEETING NOVEMBER 15, 2018
DRAFT
requirements. He's not familiar with this lot, but guessed there isn't potential
for additional development.
Mayor Jonathan stated that for now that question remains unanswered and
waits to see if it plays into this application. The concern is that if there is an
exception to the normal setback coverage, all of a sudden a neighbor can
see a structure going up at his dividing wall, potentially, and be surprised by
it. He's trying to understand what rights are given from a development
standpoint.
Councilmember Harnik asked the Applicant if they had a personal
interpretation of the language mentioned.
Mayor Jonathan declared the public hearing open and invited public testimony
FAVORING or OPPOSING this matter.
MR. GARY BINDMAN, Applicant, thanked Mr. Grance for all his efforts,
stating he has been amazing. In response to his personal interpretation of
the language and also part of the process, the question that have been
asked of him is if he would change the nature of the home. He understands
the City wants to maintain the representation of the house, and of course, he
has made them, but somebody else might not be as outstanding. Because
he has been told he couldn't change the look, and in trying to control the
homeowner's ability, he is allowed to some change to the rear of the house,
but only allowing 30%. It's a limitation, not an opportunity to expand,
because the house is not to be changed. It will be up to the City to make
that call on this issue. With regard to the "Owl," he explained it was all in
caps "OWL," so when the plaque is made it will all be in caps. Prior to
becoming a Superior Court Judge in Los Angeles, he spent 10 years in the
spiritual life. When he got back from the spiritual life, he used the fewest
possible words to describe his entire experience of the ten years, which was
to "Observe With Love," meaning to observe life with love. It's their mantra
and it's what they would like to see this house live by for future generations.
It will be a testament to observe life with love.
Mayor Jonathan said there was no intention of holding up this application,
because there will be a leap of faith that Mr. Bindman will not build a high
rise in the back yard, but it is something he will ask staff to clarify for the
future.
Councilmember Kelly pointed out that the Cultural Resources Preservation
Committee reviewed this item very carefully, and the Mayor has raised
questions to explore, but agreed it shouldn't hold up this application.
With no further testimony offered, Mayor Jonathan declared the public hearing
closed.
44
PRELIMINARY MINUTES
REGULAR PALM DESERT CITY COUNCIL MEETING NOVEMBER 15, 2018
DRAFT
Mayor Jonathan requested the City Manager direct staff to come back and
clarify what that 30% language really means and what it entitles an applicant.
Councilmember Kelly moved to waive further reading and adopt Resolution
No. 2018 - 85. reaffirming the action of the Cultural Resources Preservation Committee,
designating 47869 Sun Corral Trail with Historic Landmark Designation, in accordance with
Section 29.40.010 of the Palm Desert Municipal Code. Motion was seconded by Harnik
and carried by a 5-0 vote (AYES: Harnik, Kelly, Nestande, Weber, and Jonathan; NOES:
None).
Mayor Pro Tem Weber pointed out that Mr. Bindman had thanked
Mr. Grance many times during this process. The Cultural Resources
Preservation Committee has placed a lot of work on Mr. Grance these past
couple of years, and she is very grateful for his attention to detail and
knowledge of all the facts. She valued his efforts in working with the public
to bring these items to the City Council. She added that Mr. Bindman's house
is now a cultural resource for the City of Palm Desert and thanked him for it.
B. CONSIDERATION OF AN APPEAL OF PLANNING COMMISSION
RESOLUTION NO..2738, APPROVING A CONDITIONAL USE PERMIT
(CUP) AND CANNABIS REGULATORY PERMIT FOR A 10,820
SQUARE -FOOT CANNABIS MANUFACTURING AND DISTRIBUTION
BUSINESS FOR P & S VENTURES, LLC, LOCATED AT 77700 ENFIELD
LANE, Case No. CUP 17-0030 (P & S Ventures, LLC,
Applicant/Saint Mary Magdalene Coptic Orthodox Church, Appellant).
Principal Planner Eric Ceja stated this is an application to appeal a Planning
Commission Resolution that approved a Conditional Use Permit (CUP) and
Cannabis Regulatory Permit for P&S Ventures, LLC, at the proposed location
of Enfield Lane, which is in one of City's three main industrial corridors. This
facility happens to be located off Washington Street and Country Club Drive.
He said the City Council doesn't see the CUP or Cannabis Regulatory
Permits staff has been working on as those applications get public hearings
at the Planning Commission level, so he will provide a brief outline of what
the Applicant is proposing to do. At this location, P&S Ventures is looking at
11,000 square -feet of lease space where they would do manufacturing and
distribution of cannabis products out of this facility. Both the manufacturing
and distribution require separate State licenses with the Bureau of Cannabis
Control, which an applicant is unable to pursue unless they have City
approval. With their proposal, there are offices, quarantine rooms, walk-in
coolers, but because this is a manufacturing and distribution area, they have
a kitchen, packaging, production room, and a distribution facility at the back
of the building. The Applicant originally had proposed operating hours
between 10:00 a.m. and 10:00 p.m., and will potentially have 12 to 15
employees on the site. The Applicant completed the City's CUP and
45
PRELIMINARY MINUTES
REGULAR PALM DESERT CITY COUNCIL MEETING NOVEMBER 15, 2018
DRAFT
Regulatory Permit process, background check, reviews of odor control plans,
security plans, and community and neighborhood plans as part of their
application. They are located in the Service Industrial Zoning District. Again,
the City only has three types of these zones where cannabis related
businesses can locate, so it's pretty limited as to where these uses can go.
In addition to the Cannabis Ordinance, there are a couple of separation
requirements: 1) Cannabis Facilities cannot be within 1,000 feet of a school.
In this particular site, there is Ronald Reagan Elementary, and the facility
exceeds the 1,000-foot separation requirement. The City also has a 1,500
foot -separation between cannabis businesses, and there is one near the
intersection on Washington Street and Country Club Drive. He said both
uses are greater than the 1,500-foot separation. They are within the right
location, and they meet the City's separation requirements per the Palm
Desert's Cannabis Ordinance. This item was considered by the Planning
Commission at their September meeting and approved the proposed use
subject to additional conditions. At that public hearing, the church, which is
adjacent to the site, spoke in opposition and cited a number of concerns with
the operation being adjacent to the church. Upon hearing the concern, the
Planning Commission added a few conditions. First, they wanted to ensure
there is no retail operation at this location. They also placed a condition that
there be no business activity at this facility on Sunday's to avoid any conflicts
with the Church. The church indicated they provide evening programming
with the youth during the week, so the Planning Commission also
conditioned that business activity would seize at 5:00 p.m. on all other days.
The Planning Commission added conditions that there be no exterior
signage that would identify cannabis being processed at this facility. In order
to provide some additional security, the Applicant was conditioned to
construct a block wall along the property line that abuts the church. Staff
recommended Council uphold the Planning Commission decision to approve
this use at this location. The findings in the CUP can be made in support of
this use, stating it's compatible with the City's General Plan and Zoning
Ordinance and its regulatory permit. The CUP, in addition to what the
Planning Commission has added, includes strong language related to having
on -site security, specific odor control methods, and compliance with State
and City's Ordinances. Staff thanked the Applicant and the Appellant,
because this has been a long process, noting this was their third public
hearing. Both parties have remained engaged and very respectful, and staff
is appreciative of that aspect.
Councilmember Kelly called attention to Conditions of Approval No. 12 that
reads, "From the public right-of-way, no exterior evidence other than a
building sign to identify the retail operation of cannabis products is
permitted." It sounded to her like it's permitting a sign.
Mr. Ceja replied there is no retail operation with this application, so that
language shouldn't be there. The intent is that P & S Ventures would be
46
PRELIMINARY MINUTES
REGULAR PALM DESERT CITY COUNCIL MEETING NOVEMBER 15, 2018
DRAFT
allowed to have a business sign, but it's not to advertise or infer cannabis in
any sort of way. They are allowed a professional sign that has "P & S
Ventures," which is the Applicant's name.
Mr. Ceja pointed out that Condition No. 16 negates Condition No. 12.
Further responding, he confirmed Condition No. 12 would be stricken, and
with regard to Condition No. 16, he said there could be window -mounted
signage, which many tenants have, but staff did not write that restriction in,
but to cover all basis that condition could be expanded.
Mayor Jonathan offered there could be freestanding signs, so why not just
strike the words "building -mounted," from Condition No. 16.
Mayor Pro Tem Weber asked about those signs that indicate delivery.
Mr. Ceja replied those types of signs may still work, because its not inferring
cannabis.
Councilmember Kelly believed the goal of the Planning Commission was to
identify the name of the business, but not to infer cannabis.
Councilmember Harnik pointed out that Condition No. 16 refers to exterior
signage, but some tenants can place signage in the window through the
interior, so perhaps the language needs to be broadened.
Councilmember Nestande thought a six-foot wall would be built, so one
wouldn't be able to see the sign.
Mr. Ceja explained the six-foot wall is on the property that abuts the side
property line, so it wouldn't be in the front or tall enough to block out a
building sign.
Mayor Pro Tem Weber stated that on the advice of the City Attorney, she
disclosed she met with six members from Saint Mary Magdalene Coptic
Orthodox Church to discuss this issue.
Mayor Jonathan declared the public hearing open and invited public testimony
FAVORING or OPPOSING this matter.
MR. JASON BECK, P & S Ventures, stated he is the longest continuous
retail operator of cannabis in the United States. One of the things he's
always been about is making sure the location works and integrates within
the community, and it's always their focus. They have been working with the
church and making numerous concessions for a variety of reasons, because
they want to be good neighbors. He said he has Cerebral Palsy and suffers
from seizure disorders, so cannabis is important to him, as far as lifestyle, in
47
PRELIMINARY MINUTES
REGULAR PALM DESERT CITY COUNCIL MEETING NOVEMBER 15, 2018
DRAFT
order to maintain his personal mobility. A lot of the misconceptions and
concerns are based around retail, and this place is only going to be a
distribution and manufacturing facility. As a license manufacturer, you can
only purchase products from licensed cultivators, and you can only sell
products to licensed distribution companies. As a distribution company, you
can only sell products to licensed retail cannabis facilities, which there will be
many in Palm Desert. He encouraged the City Council to think about it,
because they won't have any type of traffic, it's not a delivery service. They
are strictly a distribution facility that is a wholesale retailer.
MR. SCOTT LAMBERA, P & S Ventures, Applicant, thanked the City Council
for taking the time to hear this case. He said they went through a rigorous
process in order to obtain the approval and they followed the Ordinance. He
said there is very little leasing space available for this type of business, so
they went out of their way to follow the guidelines and follow the spirit of the
law. They are committed to working with the neighborhood and community,
adding he has reached out to the church on many occasions to address their
concerns. He believes the concerns come from misconceptions about the
business, but the fact that they are not doing retail or cultivation, should limit
all or most of the concerns. He said cannabis is one of the most regulated
industries in the United States, so most of the church's concerns should be
eliminated just knowing they have to go through so much regulatory before
opening. Additionally, he has to make sure their equipment is checked by the
Fire Department before getting approved. He said the City has done an
incredible job of putting together an Ordinance that protects the residences
to make sure they are doing things in a safe manner. They will be offering
24-hour security, which would be a benefit to the local area. He doesn't have
any signs at any of his distribution and manufacturing facilities for safety
reasons, and there is no need for them. The only way anyone would know
what they are doing inside the facilities, is if they are employed there or they
are trespassing. He said P & S Ventures agreed to build a six-foot partition
for added security and privacy. What's great about their industry that's not
talked about often, beside the medical benefits, is that they create and bring
incredible paying jobs to the City. They have done it in Cathedral City, West
Hollywood, and Santa Ana. Where minimum wage is $10, $11, or $12 per
hour, none of his employees make less than $15, and at this particular
facility, they will make somewhere between $15 and $35 an hour, which is
exceptional for this area. In conclusion, he wants everyone to understand
that cannabis is legal and they aim to do it in a way that is very cooperative
with the community and neighbors.
MR. PATRICK GOLDBERG MCMAHON, P & S Ventures, LLC, Applicant,
pointed out he was the "P" in P & S Ventures, and the previous speaker
represented the "S." Sometimes people don't understand how their industry
works, but the only places where customers can buy a cannabis product
from are from retailers. As Mr. Lambera mentioned, there will be no retail at
48
PRELIMINARY MINUTES
REGULAR PALM DESERT CITY COUNCIL MEETING NOVEMBER 15, 2018
DRAFT
this facility, so there will no in and out customers at the location. It is simply
a windowless building in which business will be conducted inside. No one
will know what's going on inside the building unless they are told. They have
gone out of their way with these concessions to the church, and to build a
six-foot partition between the two properties is a lot of money. They offered
to close on Sunday's and at 5:00 p.m., which is limiting their revenue ability
by operating under those hours, but that's how excited they are and how
much they are looking forward to operating in Palm Desert. If you go to City
Hall in Cathedral City or West Hollywood, you will learn they have an
impeccable reputation in this industry, and they take pride in it. They have
done everything that has been asked of them, and they operate within the
law, stating he looked forward to the opportunity to move forward.
MR. ANTHONY CORONNA, Commercial Real Estate Agent with Wilson
Meade Commercial, stated he worked with P & S Ventures in helping them
acquire their Cathedral City location, and they have been professional since
day one. Their landlord is extremely happy with them and loves having them
as a tenant. It just shows how they can act with other people in the
community to really make a good business, and he knew this will translate
into Palm Desert. He knew Palm Desert wants the most qualified applicants,
and he can speak from personal experience that P & S Ventures is so.
MS. NANCY SAMAAN, Owner of Saint Mary Magdalene Coptic Orthodox
Church, stated she has served at the Church since 1999, they are the
owners of the existing building since 2011, and they have a permit as a
church from the Planning Department. She is opposed to this project for
several reason. They have 95 kids that attend school on Saturday's, they
offer summer camps from 9:00 a.m. to 4:00 p.m., offer bible studies, and
they have 55 Sunday School teachers. They serve many kids in building
them up spiritually so they can serve the community better. Having this
project right next to the church went against their spiritual mission.
Additionally, there is a gymnastic a few steps away from the church and they
too have plenty of kids there as well. She checked the Riverside County
Planning Department website that indicates a 600-foot buffer from schools,
daycare centers, or youth centers, and they are just a few steps away from
this cannabis business. She also looked under San Diego County which
requires 1,000-foot buffers from churches, public, parks, child care,
playgrounds, etc. Therefore, other communities and counties oppose
cannabis adjacent to churches. She felt that if this facility was next to a
bigger church like Sacred Heart or St. Francis, the Planning Department
would never approve this project. She urged the City Council to review this
case carefully for the 95 kids at their church from the ages of 2 to 18 years
old.
49
PRELIMINARY MINUTES
REGULAR PALM DESERT CITY COUNCIL MEETING NOVEMBER 15, 2018
DRAFT
IMAD GUIRGUIS, Saint Mary Magdalene Coptic Orthodox Church,
commended the City Council for how it articulates in its deliberation on the
various issues heard this evening, stating he noticed it went against staff's
recommendation on a previous agenda item. He wished to make a few
points in that at their church they try to teach their kids about smoke free and
drugs free environments. However, when you have a cannabis
manufacturing facility, they know exactly what will be in there, so they don't
have any misconceptions. He said P & S Ventures is very famous in
Cathedral City and everyone knows the type of business they operate,
regardless of the conditions placed. He disclosed he met with Mayor Pro
Tem Weber and other members. He claimed he spoke to staff about their
recommendation to approve this CUP, and he directly asked them if they
were aware of the adjacent church. This staff member said he wasn't aware,
which is surprising when you are dealing with this complicated code and
buffers. Maybe church was not spelled out in the code, but the intent of the
law is to keep cannabis away from kids whether you are selling it or not. It's
also against the church's mission, and more important, to them it's a school
because of the kids that attend Sunday School. Further, eventually, they will
have a day camp. He said the City approved their CUP to have a church
there to accomplish their mission, and part of their operation is a day camp.
He said ,if the City approved this business, it is essentially restricting them
from doing a day camp at the school, which conflicts with the mission of the
church. It was mentioned that there are limiting places for their business, but
he had a list with at least five other places where they can lease that are not
adjacent to a church. The common property line has a chain -link fence, so
the Planning Commission placed a condition to build a wall, stating it was not
part of the Applicant's original proposal, but was required to build it. The
business hours of operation were also restricted, as their operation is in
direct conflict with the church hours and its mission.
MR. AMIR IBRAHIM, Saint Mary Magdalene Coptic Orthodox Church,
approached the City Council in support of the church. He is an
anesthesiologist at Eisenhower Medical Center and at John F. Kennedy. He
is the Secretary of the Board at Saint Mary Magdalene Church. He added
he's been in the desert for 35 years, and thanked the City Council for hearing
them out on this issue. From a church standpoint, they teach their children
to stay away from alcohol, cigarettes, and other things that are permitted and
can legally purchase. The mission of the church is to teach individuals to be
the best they can be. They are not disputing the benefits of any business
that is approved either by law or on a voter ballot. He's a scientific man, and
everything he does is based on studies, milligrams, micrograms, stating that
in his line of work everyone has to wake up otherwise he doesn't get paid.
It's a bad day when someone doesn't wake up, but 65,000 anesthetics later
they have all woken up. He believed that in legalizing cannabis, the State
was experimenting without the data. He's not going to call cannabis a drug,
because it doesn't qualify as one under the DEA (Drug Enforcement
50
PRELIMINARY MINUTES
REGULAR PALM DESERT CITY COUNCIL MEETING NOVEMBER 15, 2018
DRAFT
Administration) Guidelines and under FDA (Food & Drug Administration)
approvals, but its out there to see what happens. However, the State is
experimenting with his children by having this business right next door. From
his experience, he knew for sure that cannabis is harmful, but he's not here
to tell the State of California that it shouldn't have approved it. He said when
people are under anesthesia, he can tell whether that person takes drugs or
drinks based on his heart beat. There is no question in his mind that these
substances are harmful, but he doesn't want to experiment with his children.
He said look what happened with the tobacco industry where initially it was
advertised as something cool and good, but 50 years later millions are dying,
and today smoking is prohibited everywhere, which was an experiment that
failed.
MR. BRAD CABBOT, Rancho Mirage, CA, stated he was the owner of the
proposed building. He said when landlords rent out a building they want to
make sure they get a very solid tenant, and P & S Ventures has shown they
are a good operator and tenant. He pointed out that Service Industrial Areas
are the only areas where cannabis businesses can go in, and the church
chose to be in there, and it could have been worse, because they could have
been next to a body shop, spray booth, or a welder and metal shop.
With no further public testimony offered, Mayor Jonathan declared the public
hearing closed.
Mayor Pro Tem Weber inquired about the 1,500-foot buffer and whether it
applied to all cannabis related businesses or only retail.
Mr. Ceja said applied to manufacturing, distribution, retail, cultivation, with
the exception of testing and research facilities, which are exempt.
Councilmember Kelly asked for clarification on youth centers and if they were
defined in the Ordinance.
Mr. Ceja replied the Ordinance does not define youth centers, it was a
requirement under the State's provision, and staff refers to those definitions.
He said he can recall the child care facility definition and that they have to be
licensed by the State, but he couldn't remember the language on youth
centers.
Mayor Pro Tem Weber wondered if the 1,500 square -foot buffer was
precluded from the church because it's located in a service industrial area.
Mr. Ceja explained the 1,000-foot separation requirement around churches
and childcare centers, is applied to places that meet the State's definition.
The State recognizes licensed facilities and schools K-12. When it comes
to churches that are not discussed in the Ordinance itself, staff does not use
51
PRELIMINARY MINUTES
REGULAR PALM DESERT CITY COUNCIL MEETING NOVEMBER 15, 2018
DRAFT
them as a requirement to be separated. Further responding, he confirmed
there is no mention of youth facilities.
Councilmember Kelly heard the concerns from the church representatives,
and the City needs to apply the Ordinance as written, and she is persuaded
that the Planning Commission did a good job of stretching to impose several
conditions to be as protective as possible of their interest. If Council makes
the changes discussed in the draft Conditions of Approval listed on page 7,
there is an assurance of having odor control, no signage that identifies the
facility as one dealing with cannabis, and there is a wall to prevent sight from
being drawn in that direction. In a setting where we celebrate coexisting
despite differences of opinion and perspectives, she believed what is being
proposed does a good job of protecting all interests.
Mayor Jonathan agreed that based on the current Ordinance, this is a
permitted use, all the requirements have been adhered to and there really is
no basis for disallowing it. The reason why there is a perceived conflict, and
he's not sure there is a real conflict, is because we are talking about
manufacturing and distribution; it's not a dispensary or retail. Part of the
reason there is at least a perceived conflict between the two uses is that this
is a Service Industrial Zone (SI Zone). Manufacturing and distribution of any
kind of product is legal, normal, and typical for this zone, but what is not, is
a church. The church required a CUP to be located there. He went back to
review the church permit and discussion that took place in 2011, at the
Planning Commission to allow the church to locate in a Service Industrial
Zone. He said there were repeated pledges by the church recognizing they
were in a SI Zone and pledging to be good neighbors, specifically with
parking and services, etc. In fact, at that time, Commissioner Lemont stated,
"She would love to see the church locate here, but also realizes this area is
not set up for this type of use, it is more of an industrial area, but recognized
the church was more than willing to work with their neighbors." He believed
the burden here, a square peg and a round hole, is the church, because this
location is a SI Zone. While he thought it was appropriate to allow the
Applicant to operate there, it was inappropriate to burden them with these
additional requirements. Having exterior signage is normal, and it's a legal
business, so why should they be restricted in their freedom of speech in their
advertising. Additionally, the Applicant is being required to build a six-foot
wall bearing the financial burden and not allowed to operate on Saturday and
Sundays in a zone that permits it. If the wall is wanted, the church should
pay for it. Finally, in his opinion, asking the Applicant to seize activity by 5:00
p.m. is also an unfair burden. Therefore, he would favor allowing the
Applicant to operate there, but also favor eliminating the additionally imposed
Planning Commission conditions.
Councilmember Kelly understands the Applicant accepted these conditions.
52
PRELIMINARY MINUTES
REGULAR PALM DESERT CITY COUNCIL MEETING NOVEMBER 15, 2018
Mr. Ceja said the Applicant reluctantly accepted the conditions.
DRAFT
Mayor Jonathan added these were compromises agreed to by the Applicant
in order to hedge their bet for approval, which is what he meant when he said
an unfair burden.
Councilmember Kelly commented that Council agrees that these two entities
will be side by side into the future, and she wants to strongly urge that the
compromise the Planning Commission struck has the best promise to assure
they can enter that relationship happily and successfully. After others have
had a chance to express themselves, she will move to adopt the
recommendation with the deletion of Condition No. 12, and removal of the
three words from Condition No. 16, "Exterior -building mounted."
Councilmember Kelly moved to, waive further reading and adopt Resolution
No. 2018 - 86, with the deletion of Condition No. 12, and modifying Condition No. 16 with
the removing of three words, "Exterior -building Mounted." Motion was seconded by
Nestande.
Mayor Pro Tem Weber said Mayor Jonathan gave her a lot to think about,
because she agreed with everything he said. She believed the business has
bent over backward to try to get along with their neighbor, but in this case,
the neighbor is the odd man out. She asked if there was a way to waive
these restrictions and/or do it for a period of time to see how it goes. When
she met with members of the church, she mentioned to them it would be a
good opportunity for the children to know that even though people are doing
business that might not agree with their church's belief, they can still live in
the same area and get along, but they don't have to participate in that
business. She felt it was unreasonable to ask a business not to locate near
them because it conflicted with their particular belief, when the church is in
a location not zoned for them. She couldn't support these conditions forever,
but perhaps maybe for a short period of time. It's already been stated the
City has strict controls on any businesses relating to cannabis, and the
minute staff receives complaints, the City will investigate it.
Councilmember Harnik said she didn't meet with either side, because this
was an appeal case, and she wanted to hear both side fresh without any
prejudices. From her view, Mayor Jonathan comments are correct. There
is a CUP for the church for being in a Service Industrial Zone, and
manufacturing and distribution is service industrial. This is a tough deal, and
she hears strong emotions and passion on both sides. She commends the
Planning Commission for coming up with ways to make it work, and she
encouraged both sides to be the best neighbors, but without the additional
restrictions imposed. If there is an odor issue or a violation of other
conditions, the City will be on top of it, because they will be monitored. Her
feeling is that the Applicant was given a permit and complied with the
53
PRELIMINARY MINUTES
REGULAR PALM DESERT CITY COUNCIL MEETING NOVEMBER 15, 2018
DRAFT
rigorous process, so she was in favor of going ahead with the initial permit
granted. Again, if it doesn't work, Council will hear from Code or Planning
and the right adjustments will be made.
Mayor Pro Tem Weber agreed, stating she didn't like the restrictions. It's
nice the Applicant agreed to them, but it's unfair to dictate how to run their
business, because it almost sets them up for failure.
Responding to question, Mr. Stendell confirmed that if the current motion
does not pass, Council can provide an alternative that includes striking
conditions.
Councilmember Kelly amended her motion to include a provision to review the
Conditions of Approval six months after operations commence. Motion was seconded by
Nestande and the motion FAILED on a 2-3 vote (AYES: Kelly and Nestande; NOES:
Harnik, Weber, Jonathan).
Mayor Jonathan moved to waive further reading and adopt Resolution No. 2018-86,
denying the appeal filed by Saint Mary Magdalene Coptic Orthodox Church and removing
the additional Conditions of Approval placed on the property by the Planning Commission
(restriction on building signage, installing a six-foot high wall, limitation of no business
activity on the site on Sunday's, and limiting the business to seize operations by 5:00 p.m.).
Councilmember Harnik needed clarification on exactly what was the motion.
Mayor Jonathan explained that his motion is to deny the appeal, including
the additional Conditions of Approval he listed that the Planning Commission
placed on the project. Responding to question, he said he wasn't concerned
with the condition of "No retail operation at the site," which he felt was
superfluous, because this was not a permit for retail.
Mr. Stendell suggested leaving it in, because the Applicant can apply for
multiple stacked permits from the State.
Mayor Jonathan agreed to leaving it in, because it's a point of clarification,
adding P & S Ventures is permitted at the City and State level simply for
manufacturing and distribution.
Mayor Jonathan amended his motion to waive further reading and adopt Resolution
No. 2018 -86, denying the appeal filed by Saint Mary Magdalene Coptic Orthodox Church
and removing the additional conditions of Approval placed on the property by the Planning
Commission (restriction on building signage, installing a six-foot high wall, limitation of no
business activity on the site on Sunday's, and limiting the business to seize operations by
5:00 p.m.), with the exception of "No retail operation at the site." Motion was seconded by
Harnik.
54
PRELIMINARY MINUTES
REGULAR PALM DESERT CITY COUNCIL MEETING NOVEMBER 15, 2018
DRAFT
Councilmember Harnik offered she understood there are moral and ethical
feelings in opposition to cannabis, but a law was passed, and Council
doesn't get to impose their personal feelings one way or the other, stating it's
their job to uphold the law.
Mayor Pro Tem Weber noted the church meets on Saturday and Sunday,
questioning if staff will be able to respond immediately if there is a problem
or will they have to wait for staff to respond during the City's hours of
operation.
Mr. Ceja responded the City has swing -shift officers working on the
weekends.
Mr. Stendell added the City has day time and swing -shift officers working
seven days a week, so there are plenty of opportunities to have Code
respond.
Councilmember Kelly asked if the condition relating to odor control will be left
in place, which is standard for such operations.
Mayor Jonathan answered yes.
Mayor Jonathan called for the vote and the motion carried by a 4-1 vote (AYES:
Harnik, Nestande, Weber, and Jonathan; NOES: Kelly).
C. REQUEST FOR APPROVAL OF A CHANGE OF ZONE, PRECISE PLAN
OF DESIGN, AND TENTATIVE PARCEL MAP 37512 TO CONSTRUCT A
SENIOR LIVING PROJECT OF 164 UNITS, INCLUDING A CLUBHOUSE
BUILDING, LOCATED AT 74300 COUNTRY CLUB DRIVE; AND
ADOPTION OF A MITIGATED NEGATIVE DECLARATION IN
ACCORDANCE WITH THE CALIFORNIA ENVIRONMENTAL QUALITY
ACT (CEQA), Case Nos. CZ 18-0002/PP 18-0003/TPM 37512
(The Wolff Company, Applicant).
Associate Planner Kevin Swartz stated the vacant site is located on the north
side of Country Club Drive, east of Portola Avenue and west of Cook Street.
The property is 8.4 acres, and Coachella Valley Water District (CVWD)
currently owns 1 acre of well site. Adjacent to the site is a church, and
around the site is skilled nursing, Desert Willow, and Marriott Desert Springs.
He displayed the site plan that shows the one main entrance at the middle
of the property. The second access is for emergency vehicles only that will
have a gate with a lock box. The Applicant is proposing 164 units, consisting
of 20 single -story cottages located at the front of the building, to the rear is
a single -story clubhouse with amenities such as a pool and open lawn area.
The property is zoned Planned Residential where the height limit is 40 feet.
The project will include two three-story buildings with the height limit of
55
PRELIMINARY MINUTES
REGULAR PALM DESERT CITY COUNCIL MEETING NOVEMBER 15, 2018
DRAFT
39-feet to the tallest element. The property is zoned 5 units per acre, and as
part of the application, the Applicant is requesting a change of zone to 20
units per acre. The City's policy when asking for discretionary approvals such
as a Change of Zone (C/Z), is that you provide affordable housing or an
in -lieu fee. Staff worked with the Applicant in determining the in -lieu fee and
arrived at $9.86 of net rentable space, which comes to $1,350,000. He
noted the Applicant submitted a written letter acknowledging that agreement.
He went on to display the landscape plans and explained the elevations,
parking, number of studio apartments, bedrooms, square footage, carports,
and noted all cottages will have a single garage. The project will include
desert warm colors and the Architectural Review Commission (ARC)
approved the design, and the Planning Commission approved the land use.
He noted the Applicant and architect were available to answer any questions.
In conclusion, staff recommended approval.
Councilmember Nestande recalled a study session on October 12, 2018,
where staff agreed to research and compare what other cities were doing in
terms of affordable housing, density, etc., and Council has not received that
data.
Mr. Swartz agreed, stating staff was still working on that issue. He said the
Applicant was made aware of the process and he still wished to proceed.
Councilmember Nestande felt it was premature to approve this project
without having the data requested by the City Council.
Councilmember Kelly understands this project intends to have units for rental
as opposed to purchasing.
Mr. Swartz said that was correct.
Councilmember Kelly called attention to page 5 of the staff report where it
indicated 234 parking spaces is required, but staff is allowing 182 total
believing that is adequate. She asked if the City has other experiences at
other locations that can convince Council 182 spaces will be adequate
and/or explain the basis for that number.
Mr. Swartz explained this was similar to Villa Portofino where it's a 55+
community and they were right around 1.1 parking spaces per unit. The
Applicant has the same model in Arizona and Colorado where they found
this formula to work for their occupants.
Councilmember Kelly said she understands when an in -lieu fee of this nature
is paid, those funds become part of a restricted account to be used in the
future to support affordable housing.
56
PRELIMINARY MINUTES
REGULAR PALM DESERT CITY COUNCIL MEETING NOVEMBER 15, 2018
Ms. Moore confirmed that was correct.
DRAFT
MayorJonathan inquired about the current zoning and the need fora change
of zone.
Mr. Swartz responded the current zoning is Planned Residential-5 units per
acres, and the Applicant is requesting to change it to Planned Residential-20
units per acre. The current density has a cap of 5 units per acres.
Mayor Jonathan recalled hearing that when the City has an exaction with
regard to affordable housing, it's based on a request for something different,
which is a change of zone. In other words it's a quid pro quo type of situation,
which is what precipitated the in -lieu fee. The fee was triggered because the
Applicant asked for something that is not entitled without the change of zone.
Mr. Swartz concurred.
Mayor Jonathan asked about the impact to Desert Willow on the north with
regard to the height of the building and/or is there a height differential.
Mr. Swartz displayed a photo simulation from the parking lot of Desert Willow
that illustrates the views. Further responding, he said he didn't speak to
anyone at Kemper Sports, but they were noticed. He pointed out that this
project will sit lower than the Desert Willow timeshares that are on the
Mountain View Course.
Mayor Jonathan assumed there will be a six-foot wall between the proposed
project and Desert Willow.
Mr. Swartz said there was a wall there now.
Mayor Jonathan declared the public hearing open and invited public testimony
FAVORING or OPPOSING the proposed project.
MR. CARLOS PINEDA, Palm Desert, CA, thanked the City Council for
voicing their opinions and working together to make things work. While he
was campaigning for a seat on the Palm Desert City Council, he received a
lot of calls and emails with regard to zoning, and affordable housing is one
of the issues he ran on. He thanked Councilmember Nestande for bringing
up that October study session, because what he heard at that meeting is that
there is an Ordinance in place that for every five acres, 20% will be allocated
for affordable housing, and with The Retreat Project, it did not happen. He
wants to ensure Council abides by its Ordinances on any future development
or he will submit a request for a repeal of the Ordinance, because it appears
this Council is going against its own policies. He heard Mayor Pro Tem
Weber say affordable housing is not needed or that it has met the quota, but
57
PRELIMINARY MINUTES
REGULAR PALM DESERT CITY COUNCIL MEETING NOVEMBER 15, 2018
DRAFT
he personally knew of a single mother who slept in the car at the Civic Center
for three nights, because she couldn't find a place to go. He agreed with
Councilmember Harnik's comment that Council needed to revisit the needs
of the community, and he challenged them to start asking people some
questions.
Mayor Jonathan explained the City Council was not here at this time to
address affordable housing in general and encouraged Mr. Pineda to get
some facts and a deeper understanding of what the City does, including
other projects, in terms of affordable housing, and he would be happy to
participate in that discussion. He said affordable housing is a subject that's
very important and a high priority for all at the City.
MR. EDWARD HOLZHAUER, Palm Desert, CA, pointed out he was at that
affordable housing meeting, and Mr. Pineda (an earlier speaker) heard
correctly. The City allows for an in -lieu fee of affordable housing. At that
meeting, The Retreat was allowed to do the in -lieu fee, because there are no
grocery stores, schools, retail, or businesses for someone of low income to
be able to work. Council again is making that consideration, and Mayor
Jonathan has stated that if the City continued to do this in -lieu fee, it should
not be the precedence. To reiterate Mr. Pineda's point, why have an
Ordinance if Council is always going to choose the in -lieu fee. The proposed
project backs up to Desert Willow just like The Retreat, and if it generates
revenue for the City, residents need to know the City is making money off the
project. Affordable Housing is a strong issue, because the single mother
Mr. Pineda spoke about that was sleeping in the car is one of his employees.
It was one of his worse days to find out she slept in the car with her
five -year -old. People that are homeless cannot afford housing, and they are
among us. Therefore, Council needs to promote affordable housing with
every development, which is what Council claimed it would do, but here we
are again accepting an in -lieu fee. He and Mr. Pineda are educating
themselves and getting involved, and they will continue to speak for those
that cannot speak for themselves. Lastly, he said Council needed to follow
its Ordinance or change it, because Council will be held accountable.
MR. DAVE TODD, The Wolff Company, Applicant, stated the project is an
independent living facility, and it is unique in that they provide housing and
other services, including meals, which was part of their discussion with City
staff in arriving at this affordable housing in -lieu fee. He explained that
affordable housing provides challenges in operations and in renting out the
units at affordable rate, which were key points in their discussions. They are
excited about the project and appreciates staff and their efforts. Responding
to question, he said they have a standard operating partner that works with
them on all of their facilities, which is Clear Water.
58
PRELIMINARY MINUTES
REGULAR PALM DESERT CITY COUNCIL MEETING NOVEMBER 15, 2018
DRAFT
With no further public testimony offered, Mayor Jonathan declared the public
hearing closed.
Mayor Jonathan noted these types of facilities can place a greater burden on
emergency response and wondered where the City was with the cost
recovery situation.
Ms. Aylaian replied the City has commenced recovery cost in billing
insurance and getting revenue from it, and it started in September 2018.
Mayor Jonathan commented that until this facility is built and operating, the
cost recovery will already be in place.
Councilmember Kelly disclosed she met with the Applicant some time ago
and believed this was an excellent proposal which will afford an asset by way
of additional housing units in the community. The project offers an option,
in terms of environment and rental versus purchase, which will add to the mix
of the choices that people will have, and it's beautifully designed. She
wished to make a point to the members of the public who have spoken on
this item. The in -lieu fee is a tremendous helpful part of the City's overall
strategy in supplying more affordable housing, because developers of
affordable housing today have a much more challenging time piecing
together all of the necessary funding since the elimination of redevelopment,
which was a source of funding. Therefore, as the City's restricted account
grows, Palm Desert will have the opportunity to be a participant in the total
funding and financing that's necessary or developers like Coachella Valley
Housing Coalition to provide additions to the City's affordable housing stock.
She commends the Applicant for working with staff in coming out with an
outcome that made sense for both.
Councilmember Harnik added the in -lieu fee helps put those little pieces
together for developers to build affordable housing in their project.
Assistance from a city helps a developer's application when they approach
the State for a grant or tax credit, showing the city is a participant. She
agreed the proposed project is great looking, and she thought the rental mix
will create a good community for people that need the social engagement.
Councilmember Nestande again stated she thought it was premature for the
City Council to be voting on this project until it received a report back from
staff on where the City stood with housing.
Mayor Jonathan agreed with his colleague that this was an attractive project,
which was compatible with adjacent land uses. The developer is taking
advantage of the current policy, with regard to the in -lieu fees, and he
wouldn't want to hold up the project just to see how that issue resolves itself
59
PRELIMINARY MINUTES
REGULAR PALM DESERT CITY COUNCIL MEETING NOVEMBER 15, 2018
DRAFT
down the line. Therefore, he looked forward to having this project as part of
the community. He thanked Mr. Wolff for investing in Palm Desert.
Councilmember Kelly moved to: 1) Waive further reading and: a) Pass to second
reading Ordinance No. 1343, approving Change of Zone 18-0002; b) Adopt Resolution
No. 2018 - 87, approving a senior living project of 164 units, including a clubhouse building,
and adoption of a Mitigated Negative Declaration in accordance with the California
Environmental Quality Act (CEQA), subject to the conditions .of approval. Motion was
seconded by seconded by Weber and carried by a 4-1 vote (AYES: Harnik, Kelly, Weber,
and Jonathan; NOES: Nestande).
XX. ADJOURNMENT
With City Council concurrence, Mayor Jonathan adjourned the meeting at 9:20 p.m.
ATTEST:
RACHELLE D. KLASSEN, CITY CLERK
CITY OF PALM DESERT, CALIFORNIA
SABBY JONATHAN, MAYOR
60