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PRELIMINARY MINUTES
REGULAR PALM DESERT CITY COUNCIL MEETING
THURSDAY, FEBRUARY 23, 2017
CIVIC CENTER COUNCIL CHAMBER
73510 FRED WARING DRIVE, PALM DESERT, CA 92260
I. CALL TO ORDER - 3:00 P.M.
Mayor Harnik convened the meeting at 3:05 p.m.
II. ROLL CALL
Present:
Mayor Pro Tem Jonathan
Councilmember Kathleen Kelly
Councilmember Gina Nestande
Councilmember Susan Marie Weber
Mayor Jan C. Harnik
Also Present:
Lauri Aylaian, City Manager
Robert W. Hargreaves, City Attorney
Rudy P. Acosta, Assistant City Manager
Rachelle D. Klassen, City Clerk
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
Lori Carney, Director of Human Resources
Mark Greenwood, Director of Public Works
Frankie Riddle, Director of Special Programs
Bo Chen, City Engineer
Stephen Y. Aryan, Risk Manager
Cortez, Battalion Chief, Palm Desert Fire/Riverside Co. Fire Dept./Cal Fire
Lt. Coby Webb, Acting Asst. Chief, Palm Desert/Riverside Co. Sheriffs Department
Grace L. Mendoza, Deputy City Clerk
III. ORAL COMMUNICATIONS - A (CLOSED SESSION ITEMS)
None
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IV. ADJOURN TO CLOSED SESSION
Request for Closed Session:
A. Conference with Real Property Negotiator pursuant to Government Code
Section 54956.8:
1) Property: APNs 640-370-018, 640-370-016, 640-370-015
(Entrada del Paseo)
Negotiating Parties:
Agency: Lauri Aylaian/Rudy P. Acosta/Martin Alvarez/
City of Palm Desert
Property Owner: City of Palm Desert
Under Negotiation: x Price x Terms of Payment
B. Conference with Legal Counsel regarding significant exposure to litigation
pursuant to Government Code Section 54956.9(d)(2):
Number of potential cases: 2
With City Council concurrence, Mayor Harnik adjourned the meeting to Closed
Session of the City Council at 3:07 p.m. She reconvened the meeting at 4:00 p.m.
V. RECONVENE REGULAR MEETING - 4:00 P.M.
A. REPORT ON ACTION FROM CLOSED SESSION.
None
VI. PLEDGE OF ALLEGIANCE TO THE FLAG OF
THE UNITED STATES OF AMERICA - Councilmember Gina Nestande
VII. INVOCATION - Mayor Jan C. Harnik
VIII. AWARDS AND PRESENTATIONS
A. PRESENTATION OF PROCLAMATION DECLARING FEBRUARY 2017 AS
"SAFE SURRENDER AWARENESS MONTH" IN THE CITY OF
PALM DESERT.
On behalf of the City Council, Mayor Harnik presented the proclamation to
Battalion Chief John Cortez.
Chief Cortez noted it was a sensitive program, adding that in Riverside
County in the Fire Department, it's less than a dozen children that have been
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surrendered. The latest surrender happened at one of the Desert cities,
stating he couldn't provide more information or status, but the Department
appreciates the City's support of the program.
B. PRESENTATION OF PHOTOGRAPH TO THE CITY COUNCIL BY THE
PALM DESERT POLICE DEPARTMENT.
Sgt. Michael Gaunt stated he came to present a gift to the City Council,
which was near and dear to his heart for two reasons, one being it involved
photography and the other is that it relates to the Palm Desert Police
Department. He recalled for the Council that he was hired as the
Administration Sergeant for the Palm Desert Police Department in January,
and as he walked throughout City Hall he didn't see a photograph of their
great Police Department. One of the Department's goals for 2017, is
community engagement. Therefore, as a way to reach out to stakeholders
and citizens, what better way than to display a photograph of their Palm
Desert Police Department at City Hall. Therefore, on behalf of Capt. Teets,
Lt. Webb, and everyone at the Palm Desert Police Station, he presented a
photograph of the Officers at the Palm Desert Police Department.
Ms.Aylaian added there are a number of pictures throughout the conference
rooms in City Hall that depict different events, activities, and facilities that the
City is proud of, but nothing representing the Police Department. So staff is
very excited to receive this photograph as part its collection.
Mayor Harnik pointed out that the photograph was taken in front of the Palm
Desert Police Station that is a LEED Gold Certified Building.
IX. ORAL COMMUNICATIONS - B
MS. TAMMY MARTIN, Executive Director of Friends of the Desert
Mountains, announced that the Coachella Valley Wild Flower Festival was
taking place March 4. She thanked the City Council for its continued support
and everything it did for their organization as a nonprofit.
Mayor Harnik noted the Wild Flower Festival is on Saturday, March 4 from
9:00 a.m. to 4:00 p.m., located up Highway 74 at the Visitor Center, stating
it was part of the First Weekend Event.
Mayor Pro Tem Jonathan thanked Ms. Martin for the event, stating they are
a wonderful resource for the community.
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X. MAYOR AND COUNCILMEMBER COMMENTS TO THE COMMUNITY
A. 30-Year Anniversary-Mayor Pro Tern Jonathan announced that Palm
Desert had to significant 30-year anniversaries being celebrated this
week. One was the J. W. Marriott and the other is the Cal State
University-San Bernardino Campus, Palm Desert.
B. Roy's Resource Center- Mayor Pro Tern Jonathan reported that the
facility was managed by care provider Jewish Family Services. They
were subsidizing Roy's Center to the tune of more than $100,000 a
year and it finally gave the withdrawal notice effective June 30, 2017.
He said no other providers could be found because it operates at a
loss, primarily due to transportation issues,which cost over$300,000
a year. At the same time, through John Benoit's leadership, the
facility is being re-purposed for something desperately needed,which
is a residential mental health facility. Unfortunately, the program will
lose about 100 beds that its currently providing for the homeless. The
Coachella Valley Association of Governments(CVAG)Homelessness
Committee along with staff is actively searching for replacement beds,
particularly in the west end where they are needed, more specifically
in Palm Springs, Desert Hot Springs, and Cathedral City. A Request
for Proposals (RFP) is in the process of going out, and they are
hopeful in finding a way to replace the desperately needed housing.
C. Senior Inspiration Awards - Mayor Harnik encouraged everyone to
attend the Ceremony at the J.W. Marriott on March 24, 2017. She
said the event celebrates those seniors who volunteer hundreds of
hours every year, contributing to the quality of life enjoyed by many in
the community.
D. Proposition 64-The Adult Use of Marijuana Act- Mayor Harnik noted
she and Councilmember Weber and staff have attended many
seminars and conferences on this subject. They are learning and
working through with public safety, code, and others to find the best
way to approach this Act.
XI. CONSENT CALENDAR
A. MINUTES of the Regular City Council Meeting of February 9, 2017.
Rec: Approve as presented.
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B. CLAIMS AND DEMANDS AGAINST THE CITY TREASURY-Warrant Dated
1/31/2017.
Rec: Approve as presented.
C. CLAIMS AND DEMANDS AGAINST THE CITY/HOUSING TREASURIES -
Warrants Dated 2/3/2017 and 2/10/2017 (Joint Consideration with the
Palm Desert Housing Authority).
Rec: Approve as presented.
D. APPLICATION FOR ALCOHOLIC BEVERAGE LICENSE by Desert Fox Bar,
44750 San Pablo Avenue, Palm Desert.
Rec: Receive and file.
E. REQUEST FOR ADOPTION of Resolutions, Setting Forth Findings and
Authorizing the Destruction of Paper Records that Have Been Digitally
Imaged from the Department of Building and Safety, to Rely on the
Electronic Record as the Official Record — Records from December 2015
and January 2016.
Rec: Waive further reading and adopt Resolution Nos.: 1) 2017 - 11 -
December 2015 Records; 2) 2017 - 12 - January 2016 Records.
F. RESOLUTION NO. 2017 - 13 - A Resolution of the City Council of the City
of Palm Desert, California, Setting Forth its Findings and Authorizing the
Destruction of Paper Records from the Department of Community
Development/Planning, to Rely on the Electronic Record as the Official
Record — Records From 1990 through 2010 (Exhibit "A").
Rec: Waive further reading and adopt.
G. RESOLUTION NO. 2017 - 14 - A Resolution of the City Council of the City
of Palm Desert, California, Setting Forth its Findings and Authorizing the
Destruction of Paper Records that Have Been Digitally Imaged from the
Department of Community Development/Planning, to Rely on the Electronic
Record as the Official Record — Records from 1999 to 2014 (Exhibit "A").
Rec: Waive further reading and adopt.
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H. REQUEST FOR AUTHORIZATION to Fund the Annual Fine Arts Collection
Insurance Premium for Art Sculptures Located Within the Eric Johnson
Memorial Garden(Faye Sarkowsky Sculpture Garden)Per Lease Agreement
with the Palm Springs Art Museum.
Rec: By Minute Motion, approve $8,229.95 in funding for the annual Fine
Arts Collection Insurance Premium for art sculptures located in the
Eric Johnson Memorial Garden (Faye Sarkowsky Sculpture Garden),
per the Lease Agreement with the Palm Springs Art Museum—funds
are available in Account No. 1104800-4388500.
Upon a motion by Weber, second by Nestande, and 5-0 vote of the City Council
(AYES: Jonathan, Kelly, Nestande, Weber, and Harnik; NOES: None), the Consent
Calendar was approved as presented.
XII. CONSENT ITEMS HELD OVER
None
XIII. RESOLUTIONS
A. RESOLUTION NO. 2017 - 15 - A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF PALM DESERT, CALIFORNIA, ADOPTING A LOCAL
DEBT POLICY.
Ms. Moore stated that with the recent enactment of Senate Bill 1029,the City
is required to adopt a local debt policy. These are practices the City already
has, but there are a couple of added reporting requirements.
Councilmember Kelly called attention to page A6 of the staff report, Section
D-5 - Tax Increment Financing, where it refers to specific instruments that
exist now, but because the legislator continues to entertain new possibilities,
she wondered if there should be a phrase referring to similar instruments.
Ms. Moore said it was an excellent idea and agreed to make the revision.
She asked the City attorney if staff needed to bring back the Resolution if it
came up with wording to determine that they could ultimately use this policy
for some other form of financing that might become available based on
legislators' actions.
Mr. Hargreaves responded the Resolution can be adopted this evening
subject to wording/language approved by the City Manager and City
Attorney, but if there isn't an urgency, the item can be brought back with the
added wording. Ms. Moore agreed to continue this item to the next meeting.
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Councilmember Kelly added that on page A10, Section H-1, there is a
sentence that states, "The City is committed to maintaining its existing rating
levels." She wondered if it might be important to define what those are in a
parenthetical or attachment, making it clear what the existing rating levels are
as of today, should they be referenced in the future.
Ms. Moore explained that the rating agencies look at the City's debt
frequently, and they currently have ratings, but some are upgraded. When
the Redevelopment Agency was eliminated that debt was downgraded, but
it had nothing to do with the City's debt, adding it was staffs commitment to
keep them level, but they couldn't, because it was out of their control. While
she can understand the request, staff will look to see if they can endeavor to
get the best possible ratings, but she was hesitant in putting them in now,
because they do fluctuate. However, the recent bond rating received when
they did the refunding was an "A," but at the same time, two other issues
were upgraded that were not being refunded to "AA."
Councilmember Kelly stated that because there is fluctuation, she's
persuaded; therefore, the language is fine.
Mayor Pro Tern Jonathan noted that even though Palm Desert's credit rating
wasn't a triple A, the refinancing was snapped up with great urgency and far
excess demand than it had supply. So obviously the investment world
looked at Palm Desert quite favorably.
Ms. Moore agreed, stating it was that view of Palm Desert that helped. She
said it was not just the credit rating they received, because the underwriter
communicated to staff that because Palm Desert is branded highly in the
market, is what actually sold the debt. In some cases, it was 10 times over
subscribed to what the City actually had available, which said a lot for what
has been accomplished here. Although the City's rating was an "A,"
everyone that was looking at it was seeing it as an "A+."
Councilmember moved to, by Minute Motion, continue the item to the meeting of
March 9, 2017. Motion was seconded by Weber and carried by a 5-0 vote (AYES:
Jonathan, Kelly, Nestande, Weber, and Harnik; NOES: None.
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B. RESOLUTION NO. 2017 - 16 - A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF PALM DESERT, CALIFORNIA, ADOPTING A WAIVER
OF DEVELOPMENT IMPACT FEES FOR THE ARC VILLAGE
AFFORDABLE HOUSING DEVELOPMENT LOCATED AT 73-255
COUNTRY CLUB DRIVE, Case No. PP 16-102 (Allied Real Estate Partners,
Applicant).
Principal Planner Eric Ceja stated this item was a request by Allied Real
Estate Partners, the developer for ARC Village at the Desert ARC Campus.
He said Allied currently has approvals and entitlements to construct 36
affordable housing units for special needs adult on the campus. From the
onset of this project, the Applicant has made it clear that financing of the
project is dependent on a 9% tax credit from the State. They did apply for
the tax credit in the last cycle, and they claim to have received a perfect
score, however, they didn't have enough of a tiebreaker to elevate this
project above others at the State level. The Applicant is requesting the City
provide a tiebreaker by showing an additional in-kind support by waiving
certain development impact fees. These fees will include public art, child
care mitigation fees, drainage and signal fees to just over $50,000. The
request before the Council is to provide that tiebreaker for them. To his
knowledge, the City has never waived development impact fees, stating
initially staff was very hesitant to even bring this request before the Council
for fear of setting a precedent. However, this project is very different from
other development proposals it has in the City. First, it's an affordable
housing project designed specifically for special needs adults. The campus
provides support and job services, and whose financing has always been
dependent upon the State tax credit. In addition, the site itself is very difficult
to develop; the land lot is surrounded by an existing development with only
one way in or out. The type of development that it is, actually reduces traffic
impacts that a similar type of development would have. Because the project
is so unique and unmatched by other development proposals in the City,
staff is supportive of a fee waiver for this application. The thinking is that if
any precedent has been set, the bar is raised so high for this particular type
of project, that it would be difficult for any other project to match.
Councilmember Nestande commented that it was a positive project.
Mayor Pro Tern Jonathan called upon his colleagues for input, because he's
certainly on board with the objective of making this project happen and
looked in isolation that $50,000 was palatable. He thanked Mr. Ceja for
providing him with data on the history of this project, stating he learned that
the property was originally owned by Desert ARC and the former
Redevelopment Agency purchased the land, so the City was out a certain
amount of dollars to own the land. The assistance being given to this project
consists of the following: 1)A 55-year lease for$1 per year, which is almost
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equivalent to giving them the land it purchased; 2)the City has taken care of
drainage improvements in the amount of$25,000; 3)the City will contribute
up to $250,000 for housing dedicated to employees working in Palm Desert.
Therefore, when totaling all these items, it's looking like a very significant
subsidy for this project. While he liked to see this project happen, he had
concerns and wondered where the limit was, because it felt like a money pit.
He said he'd like to hear from his colleagues on where they stand on this.
Councilmember Weber asked if Mayor Pro Tern Jonathan had gone out to
see the location to see that it's really land locked. Also, she didn't know
where the art would be located for the public to see, so to waive that item
wasn't a problem. Additionally, because of the difficulty in developing this
particular lot, this project seemed like the logical use for it, which is why she
was in favor. However, she saw his point, in terms of everything the City has
already given and could potentially still contribute; however, the project was
still contingent upon obtaining the 9% tax credit. She inquired as to the
status of that application process.
Mr. Ceja said the next application is due in March, but it will take several
months before the results are known.
Councilmember Nestande said she liked the fact that it was helping the ARC
community and those in need of affordable housing. She said the City
doesn't want the mentally challenged to be homeless, and this project would
provide a solution to them and help the City as well.
Councilmember Kelly said the City was in an environment, which is
increasingly challenging to work out funding for any affordable housing.
Thankfully, there is a proposal for affordable housing that's addressed to a
particular community with special needs. Therefore, it's clearly something
the City Council would like to see happen. What's more meaningful to her
is that the proponents have tried to do it without this extra help and were not
successful. So if this last$50,000 has the potential to get the project started,
it strikes her as something very important to do.
Mayor Harnik asked if staff had an opportunity to see the Applicant's
application to the State.
Mr. Ceja replied the Applicant shared a spreadsheet with staff that showed
their score being in line with other desert applications. Further responding,
he confirmed they got 100% on their application.
Mayor Harnik stated no one could argue this project was a great use for that
land, and Council is aware that the adult clients at Desert ARC need a place
to live. However, she agreed with Mayor Pro Tern Jonathan that the subsidy
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for this project is significant and it's ongoing. She recalled other people were
interested in the project, but it just seems this keeps coming back to Council,
and it's bothersome to her. Although her inclination is to support the project,
her concern is what will happen in the next round if they don't get the tax
credit. She reiterated everyone was empathetic to the project, but Council
just couldn't keep giving to it.
Councilmember Weber said she spoke to the City Manager, because it had
been pointed out to her that this lot was landlocked with only one way in and
out. However,the City Manager informed her there is possibly a way to enter
through the east side.
Mayor Pro Tem Jonathan noted there was a previous alternative proposal
with the housing project adjacent to that lot. He agreed it was an odd lot, but
there are other options. It's always possible that another provider that
probably operates more efficiently or effectively in obtaining the tax credits,
would come along and scoop up this opportunity. He said Councilmembers
comments have been persuasive, recognizing everyone wants to help.
However, if he were to vote in favor, he would be one person sending a clear
message that if there was a line to be drawn, it just got drawn this evening.
He would not want to see the Applicant asking for another tiebreaker. He
said there was so much competition for the City's dollars, and every
organization has a similar story and worthy cause, but it just can't help every
applicant that comes before the City Council
Mayor Harnik stated the project is ideal for that specific piece of land, but it's
how it's being effectuated that is of concern.
Councilmember Kelly moved to waive further reading and adopt
Resolution 2017-16. Motion was seconded by Nestande and carried by a 5-0 vote (AYES:
Jonathan, Kelly, Nestande, Weber, and Harnik; NOES: None).
XIV. ORDINANCES
A. For Introduction:
1. ORDINANCE NO. 1317 -AN ORDINANCE OF THE CITY COUNCIL
OF THE CITY OF PALM DESERT, CALIFORNIA, AMENDING AND
UPDATING VARIOUS CHAPTERS AND SECTIONS OF THE
PALM DESERT MUNICIPAL CODE — CHAPTERS 2.52 -
PERSONNEL, CHAPTER 3.30 - PUBLIC WORKS CONTRACTS
AND BIDDING, CHAPTER 5.87 - MASSAGE ESTABLISHMENTS,
CHAPTER 5.90 - MASSAGE PRACTITIONERS, CHAPTER 8.40 -
RECREATIONAL VEHICLES ON PRIVATE PROPERTY,
CHAPTER 8.70 - PROPERTY MAINTENANCE, CHAPTER 10.96 -
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RECREATIONAL VEHICLES,CHAPTER 11.01 -PARKS-GENERAL
PROVISIONS, CHAPTER 15.26 - FIRE CODE, AND
CHAPTER 28.06 - FLOOD DAMAGE PREVENTION-GENERAL
PROVISIONS.
Mr. Hargreaves stated times change and nothing is perfect, and as
the City implements its codes, it runs across little anomalies.
Therefore, compilations of those anomalies are brought up to date to
keep the Codes fresh and air free to the extent it can. He added that
little by little staff is doing a comprehensive update of the different
ordinances.
Councilmember Kelly moved to waive further reading and pass Ordinance No. 1317
to second reading. Motion was seconded by Weber and carried by a 5-0 vote (AYES:
Jonathan, Kelly, Nestande, Weber, and Harnik; NOES: None).
B. For Adoption:
None
XV. NEW BUSINESS
A. REQUEST FOR ADOPTION OF RESOLUTIONS, RELATING TO THE
FISCAL YEAR 2016-2017 BUDGET AS A RESULT OF MID-YEAR
ADJUSTMENTS.
Ms. Moore noted the results of the comprehensive review of the mid-year
budget, which includes things that the City Council has seen or were
approved, but there was no appropriation made for actual expenses that
were over what was anticipated. Staff is also making an adjustment of
$1.7 million to revenue for the purpose of two things, both go to Transient
Occupancy Tax (TOT), but$1.3 million is a result of the ballot measure, and
$400,000 is a result of the economic impact of Desert Trip in October, which
was not anticipated. She said in a one-month period that's how much impact
Desert Trip had on Palm Desert. Also, staff is making minor adjustments in
funds that better reflect the nature of the expenditure. The second part of
this request is an adjustment to the Salary Schedule, rescinding and
restating it, which Director of Human Resources Lori Carney will address.
Ms. Carney noted the staff report regarding the rescinding and restating of
the Resolution to capture changes that have been made throughout the year.
However, staff is requesting Council's consideration of two amendments to
the proposed Resolution. Since this document was prepared, she was
informed about the retirement of the Human Resources Technician, which
is going to occur in the near future, March 17. Staff is recommending that
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the vacant position be reclassified to a lower grade as has been done
previously with other positions. She requested the position be re-titled
Human Resources Specialist at Grade 107 versus current Grade 114.
Rather than return to the City Council at a future meeting, she's requesting
Council amend Exhibit A of the Resolution to reflect this change so that
recruitment can be completed as soon as it's practical. She said this item
can be approved in time for her to put someone in that position at the lower
rate. Staff also identified typographical and calculation errors in Exhibit B,
which is the actual salary schedule, but there are no changes to the actual
salary amounts. Staff recommended approval of the amended Salary
Resolution and Allocated Position by replacing Exhibits A and Exhibit B to
reflect the reclassification of Human Resources Technician and the
correction of errors on the Salary Schedule, which were provided to the City
Clerk.
MS. GRETCHEN GUTIERREZ, CEO of the Desert Valley Builders
Association, explained they submitted as part of today's agenda item, a
follow-up letter to some correspondence it had with the City as a result of
their annual review that occurred back in November. She said they had a
meeting with the City Manager and staff on issues it had with the report. City
staff in a very short period of time responded and subsequently reclassified
the items they had concerns with. She also sent a corresponding letter to
City Manager, staff, and Ms. Moore, thanking them for working and meeting
at the initial point of interest and seeing their point of view.
Mayor Pro Tem Jonathan thanked Director of Finance Janet Moore who was
patient with his many questions, stating it was very informative. One of
which was, why is the City paying for park maintenance out of General Fund,
etc. Also, it shouldn't go unnoticed that Human Resources continuously
looks to reclassify positions in such a way that it continues to best serve the
City, but at the same time,with utilization of fewer resources,which is greatly
appreciated. He said Council recognized staff level is getting scarily thin, but
hopefully they can refill the ranks appropriately as soon as possible.
Mayor Pro Tern Jonathan moved to waive further reading and adopt: 1) Resolution
No. 2017 - 17, amending the FY 2016-2017 Budget as a result of Mid-Year Adjustments;
2) Resolution No. 2017 - 18, rescinding and restating the FY 2016-2017 Salary Schedule,
Salary Ranges, and Allocated Classifications to reflect approved changes made during the
year, as amended with the replacement of Exhibits A& B. Motion was seconded by Kelly
and carried by a 5-0 vote (AYES: Jonathan, Kelly, Nestande, Weber, and Harnik; NOES:
None).
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B. REQUEST FOR APPROVAL AND ADOPTION OF THE CITY OF
PALM DESERT INFORMATION TECHNOLOGY MASTER PLAN.
Information Systems Manager Clayton Von Helf stated they started this
process in June 2016, and the whole City has been functioning and working
toward this goal. Adoption of the Plan would provide the IT Department with
a framework for future growth in working through its 5-year Capital Plan. At
this time, staff was not requesting appropriation of funds because that would
be part of the budget process as part of the Capital Improvement Plan. He
added that projects would be brought before the City Council in a normal
procurement manner.
Councilmember Weber thanked Mr. Von Helf for spearheading and
educating the Council on the Information Technology Master Plan.
Mr. Von Helf thanked the Council for their support, stating he was excited
about moving forward.
Mayor Pro Tem Jonathan also thanked Mr. Von Helf, stating it was
heartening to see that the entire staff seemed to be more than ready to get
these upgrades done. He's glad everyone's on the same page and moving
forward.
Mayor Harnik thanked Mayor Pro Tern Jonathan and Councilmember Weber
for all the hard work they did with staff and to have a great product to show
for it.
Councilmember Weber moved to, by Minute Motion, approve and adopt the City of
Palm Desert Information Technology (I.T.) Master Plan. Motion was seconded by
Nestande and carried by a 5-0 vote(AYES:Jonathan, Kelly, Nestande,Weber, and Harnik;
NOES: None).
C. REQUEST FOR APPOINTMENT OF FOUR (4) MEMBERS TO THE
PALM DESERT YOUTH COMMITTEE TO FILL THREE (3) VACANT
POSITIONS AND REPLACE APPOINTEE SARAH LAUER.
Management Analyst Deborah Glickman noted there are three vacant spots
and the alternates are excited to fill them.
Councilmember Kelly moved to, by Minute Motion, appoint Maira Ahmad, Olivia
Frary, Tazz Ross, and Jennifer Schwartz as Members of the Palm Desert Youth
Committee to fill three vacant positions and replace appointee Sarah Lauer, each for the
balance of the current one-year term ending December 31, 2017. Motion was seconded
by Nestande and carried by a 5-0 vote (AYES: Jonathan, Kelly, Nestande, Weber, and
Harnik; NOES: None).
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XVI. CONTINUED BUSINESS
None
XVII. OLD BUSINESS
None
XVIII. PUBLIC HEARINGS
A. REQUEST FOR APPROVAL OF AN INTERIM URGENCY ORDINANCE,
MAKING FINDINGS AND EXTENDING A TEMPORARY MORATORIUM ON
THE ISSUANCE OF SHORT-TERM RENTAL PERMITS CITY-WIDE FOR
AN ADDITIONAL 10 MONTHS AND 15 DAYS, Case No. ZOA 16-364
(City of Palm Desert, Applicant).
Mr. Stendell stated this item was a request for extension of time of the
existing short-term rental moratorium, which was put in place a couple of
meetings ago by the City Council. The 101/z month requested by staff is the
time needed to conduct stakeholders' meetings and hear from the
community. He's always being asked if it will really take staff that long to go
through the process, and his response is that it's too early to tell, because he
needs to hear from the residents, constituents, and property owners before
making any assumptions on time. However, he has a reputation of doing
things with expedience and taking the appropriate amount of time. He noted
this was a noticed public hearing, which is required for the City Council to
take action, and it also requires a 4/5 vote.
Councilmember Nestande wondered how staff came up with 10 months and
15 days, because there is a meeting scheduled for March 2, which she
believes will be an eye opener to see how this Committee of 20 will do. She
hopes to have a handful of meetings in a public forum and be done.
Mr. Stendell stated Government Code Section 658.58 allows the City to act
on the moratorium up to one full year, and since Council has already taken
action on 45 days, the 10 months and 15 days is the balance of the 12
months allowed. Additionally, staff had to be back at this meeting to make
sure the moratorium stayed in place. Not knowing what will happen with any
of the community meetings, it was best to ask for the maximum extension,
understanding staff is shooting for a goal that is much shorter than the 101A
months. He's willing to work with whatever term the City Council directs, but
if he's asked how much time he needs, he didn't have a good answer.
Ms. Aylaian noted for the benefit of anyone in the audience who might have
made an application during the period from when the original Urgency
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Ordinance was passed to now,she acknowledged having received about two
dozen applications for exemptions. She said staff has completed reviewing
them, so if anybody was waiting to hear, they should be notified within the
next couple of days on whether their application was approved. She
explained that the City does have an exception process that is meant to
protect people who have already invested in their property for short-term
rental. That process requires that they submit an application at City Hall,
which is reviewed by staff and approved at the City Manager level.
Councilmember Jonathan stated that the recommendation before the
Council is to extend the temporary moratorium on the issuance of short-term
rental permits, and the summary notes that the moratorium would still allow
existing permitted short-term rental properties to continue to operate and
allow for the City Manager to grant new permits. Then the proposed
Ordinance indicates that annual renewals will be permitted, but that new
short-term rental permits will be issued only to operators or potential
operators who submitted an application to the City by February 10, 2017.
The date has clearly passed, but if the City extends the moratorium on new
permits, why does the Ordinance allow for the issuance of new permits.
Mr. Stendell recalled that staff was trying to establish a cut-off date to protect
people who were clearly making investments, but may have gotten caught
up in the timing, stating staff was being sensitive to that aspect.
Ms. Aylaian said the intention was to provide a reasonable period of time
during which people could file for exemptions and not prolong the process.
The City was allowing those who have actually been operating illegally
without a permit to apply for one during that moratorium period, which
essentially is an amnesty period for them to apply. Staff didn't want to
perpetuate the process so that people could continue to operate without a
permit or until they were caught.
Mr. Stendell added that the intent was that by February 10, the community
would know that the City had issued a moratorium. So if somebody applied
on the 11 th, they've been forewarned of what was happening.
Councilmember Kelly said she understood the reason for the exception
clause was the fear that there might be people who are just about to put in
their application and were surprised by the initial moratorium, which is the
reason for the February 10 deadline. So at this point, no one should be
surprised because it's been in place for 45 days, and staff is simply trying to
extend it to make sure it does the job right. She believes everyone involved
wants to do this expeditiously, but doing it only once.
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Mayor Pro Tern Jonathan asked if it was fair to say that after February 10,
2017, under the moratorium, no new permits would be issued.
Mr. Hargreaves clarified that applications need to be in by February 10,
2017, because there are still some permits working through the process and
would be issued going forward. Additionally, even if applications are
submitted now, it didn't mean they will never be approved, they will just have
to wait until the City goes through its process.
Mayor Harnik declared the public hearing open and invited public testimony
FAVORING or OPPOSING this matter.
MR. DOUGLAS BOUCHE, Candlewood, Palm Desert, stated he and his wife
have owned a home in Palm Desert for 33 years, and they raised their
children here. In 1991 he was transferred overseas for ten years and he
took his family with him. From that time until September 2016, their home
was on a long-term lease, but on September 23 their house caught fire and
was substantially destroyed. As part of the reconstruction effort, they made
a number of repairs and upgrades to make the house suitable for short-term
renting. They borrowed $59,000 from their retirement savings because
these particular repairs and upgrades were outside the scope of their
insurance coverage. These expenditures were acceptable to them because
they were confident they could recover it in an acceptable time frame once
construction was complete. Their decision to short-term rent was also
influenced by their desire to spend more time in Palm Desert to reacquaint
themselves with old friends and neighbors. On January 16, 2017,they came
to City Hall to apply for the permit and was advised of the 45-day
moratorium. They were told they may be granted an exemption if they
provided documentation, which they did on January 2017, but they are still
waiting for a response. However, he understands it may be forthcoming. He
suspects the moratorium affects members of society in a variety of different
way, but he could only speak for himself. Their plan is to use the Palm
Desert home as their second home; it is not their intent to damage the home
or upset the neighbors. The revenue gained from short-term renting will
allow them to recover their$59,000 expenditure in an acceptable time frame
and also allow them to use their home, which is how he and his wife want to
enjoy their golden years, stating he certainly hopes they are given that
opportunity.
MR. JEREMY OGUL, Public Affairs Coordinator for Home Away, stated that
in general he always supports efforts to review and potentially revise short-
term vacation rental policies, and that's because peaceful, safe, friendly and
pleasant neighborhoods are in the business interest of Home Away just as
much they're in the public interest of the community. They are especially
pleased to see that the City has set up a large and diverse task force to
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explore and evaluate potential policy changes. However,they are concerned
with the moratorium because it appears there is no strong rationale for it at
this time. The original justification was a concern that the draconian new
ordinance in Palm Springs would drive a flood of vacation rental interest into
Palm Desert, but as you know Palm Springs repealed their ordinance last
week, putting that city back into its status quo position. He said a
moratorium is not necessary to study and revise the policy, because that
review can happen whether or not a moratorium is in place. Given that there
is no clear or immediate threat to the public's health safety or welfare, an
urgency ordinance is not appropriate for addressing this issue. Having said
all of that, he wanted to be clear that Home Away wants to be forward
thinking and collaborate partners with the City of Palm Desert, and to that
end, he looked forward to working with the task force and City staff. He
added they would like to assist the process in any way possible, whether
that's by providing data, feedback, or information on practices in other cities
across the country, or whatever the case may be. He noted he would leave
his business card with the City Clerk.
Mayor Pro Tern Jonathan asked if he can conclude that Home Away is an
advocacy group for property owners who favor short-term rental.
MR. OGUL apologized for not clarifying that at the beginning. He said Home
Away is a vacation rental platform online, which is owned by Expedia and is
part of the VRBO Network.
MR. MARK GREEN, Old Prospector Trail, stated he was a resident and
homeowner. He suggested having a partial lifting of the ban, noting that
Palm Springs has rescinded its ban on vacation rentals. He said if the City
Council lifted the ban on people just renting a room or a casita, because it
wasn't the same as a vacation rental that is usually for parties of six people
renting an entire house that may use amplified music, which doesn't happen
when you have an individual or couple renting a casita. He said it would be
a good way to allow some business to come to Palm Desert, especially with
all these extraordinary events being held instead of finding a very overpriced
hotel room. At the same time, allow homeowners to use their empty rooms
or casita and raise a little money for themselves. It just seems like a prudent
and intermediate way to allow some visitors to come to Palm Desert and still
avail themselves of this extraordinary community, which still remains
unknown to many around the country without it being a risk to the quality of
life here. It will also give everyone a little bit of an experience going forward
over the next ten months to see how a partial lift would do.
MS. NICOLE ZAMBON, Owner of Palm Desert Vacation Properties, stated
she managed 28 vacation rental properties, and one of the reasons she
purchased the business is because she likes the demographics that come
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to Palm Desert, which is very different from Palm Springs. In Palm Desert,
guests want to relax and enjoy their time, they are not rowdy or disturbing the
neighborhoods. Everyone that books through her company and is a
customer of Home Away, even when booking online, she establishes a good
rapport by the time they show up and are checked in. They also personally
check in guests to ensure they are the 25-year-old age minimum. Especially,
for the festivals, ID's are requested ahead of time. She said a ban would be
detrimental to her business, even though she understood it was just a
moratorium. However, there is always turnover, so not being able to pursue
new homeowners that want to rent their properties in the shorter season is
detrimental to her business and the property owners' income as well. She
questioned why the City would want to prevent great guests coming from Los
Angeles and San Diego in the off season to spend good money here in Palm
Desert.
With no further testimony offered, Mayor Harnik declared the public hearing closed.
Mayor Pro Tem Jonathan stated that based on what has been shared, he
understood Mr. Bouche's application is in the process and could potentially
qualify under the moratorium.
Ms. Aylaian answered yes.
Responding to question, Mr. Stendell stated that short-term rental is defined
as rental of property less than 28 days, so it's the term of the rental that
determines its status, so anything long-term is fine. Further responding, he
said the existing 1,208 permits continue to operate as they do today.
Mayor Pro Tern Jonathan said Council heard some concerns that seem to
have merit and some of them maybe partially alleviated if the extension on
the moratorium was shortened. He asked staff how problematic it would be
to shorten the extension on the moratorium.
Mr. Stendell responded that as a facilitator of the process, he changes the
way he looks at managing the meetings, but it can be done. However, he
cautioned the City Council he may be back at its doorstep if he gets a curve
ball. He said Council can define the terms and staff will facilitate the process
as swiftly as it can.
Mayor Pro Tem Jonathan said if Council was to shorten the moratorium, his
expectation if staff requested more time, there would be a good reason for
it, so he didn't see that as problematical.
Mr. Hargreaves noted the ad hoc committee will be meeting soon and it can
take additional suggestions for exceptions into the moratorium for Council to
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consider. The other issue is that by law the City is only allowed to do two
extensions on a moratorium and this would be the first; there are limits on the
amount of time a moratorium can be extended. He suggested going with
staff's recommendation, with the expectation that some of these issues are
no brainers and can be brought back quickly to modify the moratorium.
Councilmember Kelly offered her assurance that she and Councilmember
Nestande,as Council's representatives on task force, intend to press forward
as expeditiously as possible. She added that no one had to be apprehensive
about anyone dragging their feet, but the Committee is committed to hearing
from all the stakeholders. Personally, she felt staff's proposal will get the
Committee going to be productive. She commented that she didn't want to
spend longer packing for the trip, but actually taking the trip. Therefore, she
would like to get this piece wrapped up in order to get to the substance.
Responding to question, Mayor Pro Tem Jonathan said he was questioning
whether Council might be able to alleviate some of the concerns it heard this
evening by shortening the period of the extension. However, based on Legal
Counsel's comments and his colleagues, if the consensus is to go with staffs
recommendation for the 101/2 month extension, he would be fine with it.
Councilmember Nestande said she's in the minority, because she's on the
Committee and is looking forward to the March 2 meeting. However, she has
a huge concern that it's detrimental to the community to have this ban that's
101/2 months long. When the City Council was first presented with this ban,
it was trying to nip it in the butt and avoid having an issue like Palm Springs
trickle to Palm Desert, and now that city has rescinded its ban. She said it
hurts businesses and the City, because it affects the Transient Occupancy
Tax revenue. She believed Councilmembers, staff, and Committee can work
together expeditiously and not need the moratorium in place. She suggested
not extending the moratorium, given the Committee is meeting on March 2,
because she didn't want this issue to go into the next season.
Mayor Harnik clarified there was nothing that said the extension had to be for
101/2 months.
Mr. Hargreaves agreed, stating that as soon as the Committee is ready, it
can return to the City Council with recommendations to implement.
Councilmember Weber said it made it difficult for people to make plans if
they don't know at what point the Committee will be finished.
Mayor Harnik stated that providing the public a guarantee that by March 2
something will be in place, it would be more detrimental if that wasn't the
case.
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Councilmember Nestande responded she was not making guarantees, but
as stated by Mr. Ogul from Home Away, you don't have to have a
moratorium to come up with a good sound policy.
Mr. Hargreaves cautioned the Council about expectations that this will be a
quick process, because there is a lot of feedback from many different angles,
which will require balancing, weighing, and a lot of options to consider. They
are currently in the process of collecting ordinances from different
jurisdictions, adding that cities have gone different ways depending on the
community. Additionally, it's a large Committee, so this was not going to be
a quick and easy fix, because there are a lot of things to weigh.
Councilmember Kelly added that the word ban has been used quite a lot, but
it's important to feature that no one is talking about a ban. The current topic
is extending a moratorium on issuance of additional permits, leaving all
current permits in place and allows for a great deal for hopeful commerce.
The reality is that there are hot spots within the City where the density of
short-term rental permits is significant. Also, Council does hear from citizens
who are concerned about any increase in that density and having a
substantial impact on their sense of community and quality of life. Therefore,
it's extremely appropriate to try to maintain the status quo while the City is
figuring out what will be the best possible accommodation for all interests.
She said if the City Council doesn't extend the moratorium, it could inspire
a higher level of permit applications in fear of what's ahead, and that's the
last thing they want to inspire at this time. She strongly favored staff's
recommendation as a means of maintaining the status quo long enough to
come back with a good result.
Mayor Pro Tern Jonathan said he could understand the narrative of both
arguments and offered a compromise of extending the moratorium for six
months. He said there is a reasonable chance that the process being taken
by the Committee will have been completed, and if nothing else, it sends a
message that the process will be concluded by then but also knowing that it
needs the process to take its full course in order for all interested parties to
participate. In six months time, legally the City can and might impose a
further extension for the additional four '/2 months.
Councilmember Kelly said she would support that recommendation.
Ms.Aylaian pointed out that if Council was considering six months, it puts the
Committee at August 23, but the City Council meetings will likely be dark
from July 14 until the first week in September. Therefore, Council may want
to consider a shorter or longer period.
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Responding to question, Mr.Hargreaves explained that the moratorium could
be extended twice, and once the City has exhausted its extensions, the City
is not allowed to impose a new moratorium. The second extension can be
up to a year.
Mayor Harnik said she can go along with the suggested compromise, but she
also doesn't have a problem with operating in an abundance of caution. She
said she hadn't seen anything that would indicate to her that staff would take
longer than needed, and she's convinced that Councilmembers Nestande
and Kelly would work expeditiously. She said if something should come up
where more time was needed, the Committee can make that request, but
why go through this process again. She added there are representatives
from all different facets of this issue, so this was not just about those people
who are renting and want to rent their house out, this was also about the
ones that don't, and finding a balance between the two. She recognized the
other municipality repealed their ordinance, but that is only temporary. She
said it was important to do this right the first time around, and if needed, she
will go along with the six months, but staff will work quickly and effectively to
come up with the best possible product. She reminded everyone that this
was not about helping one side or the other, but about finding a balance on
the issue and remaining true to the values of the community.
Councilmember Weber said the six-month definition allows people to make
plans so they don't feel like they have to wait for ten, because it's anticipated
that the Committee will be able to finish sooner and/or get another extension.
As stated by Mayor Pro Tem Jonathan, it is a compromise to do this. Also,
these meetings are public, so anybody can follow along on the process.
Mr. Stendell shared that what they learned with the Proposition 64 Cannabis
Committee, is that staff created a second page on the City's website with
FAQ's (Frequently Asked Questions)where it can post updates of what the
committee is doing. He reminded the Council that the Short-term Rental
subcommittee is an ad hoc committee and is not publicly noticed the same
way that the City Council meeting is, however, if someone called up and
asked to sit in, it would be fine.
Mayor Pro Tern Jonathan asked if the cannabis meetings were posted,
because he couldn't find it on the City's calendar, suggesting they at least be
posted there, including the meetings for the vacation rentals.
Mr. Stendell explained that the purpose of an ad hoc committee is for the
City Council to have an internal working group set up of stakeholders, and
the goal is to use those stakeholders at the table, followed up with a series
of public hearings, which will affect that information.
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Mayor Pro Tern Jonathan said there are two City Council representatives on
the Committee, so he will leave it up to them and the Committee, but the
more transparency, the more opportunity for members of the public to at
least observe the proceedings. He added that he keeps vacillating on the
recommendation based on staff and Councilmembers comments, stating he
was trying to figure something out to move the ball forward.
Mayor Harnik said that if Council determines to extend for six months, it has
been said that people can make plans, but not really, because the
Committee might not be done in six months. Therefore, a six-month
extension was not giving anybody any assurances, because this was a
process to hear all voices and find the best decision. In response to a
question, she explained there are very strong voices on the Committee who
are dedicated and motivated to find the product that will be best for Palm
Desert, and telling someone that the extension is going to be six- or ten-
months is going to make them behave differently.
Councilmember Nestande agreed that six- or ten-months still caused
uncertainty to the short-term rental industry, including those opposed to
renting.
Councilmember Kelly moved to waive further reading and adopt, by four-fifths vote,
Interim Urgency Ordinance No. 1318, extending the temporary moratorium on the issuance
of Short-Term Rental Permits(STR)for an additional 10 months and 15 days. Motion was
seconded by Jonathan and carried by a 4-1 vote (AYES: Jonathan, Kelly, Weber, and
Harnik; NOES: Nestande).
Mayor Pro Tern Jonathan stated this was a good discussion and the best
resolution is that the Committee will do its work well, efficiently, and quickly.
Councilmember Weber agreed,stating the information will be available to the
public as the Committee moves along, which she appreciated.
Mayor Harnik said she had faith in staff and stakeholders who are part of this
process to move as quickly as possible.
XIX. REPORTS AND REMARKS
A. CITY MANAGER
1. City Manager's Meeting Summaries Report for the Period of
January 30-February 10, 2017.
With City Council concurrence, the Meeting Summaries were received and filed.
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Ms. Aylaian made the following announcements:
2. Employee Update-Congratulations to Human Resources Technician
Del Walker who will be retiring. She has been a dedicated employee
of the City for a number of years, and she is sorry to see her go.
3. State of the City Luncheon-The Palm Desert Chamber of Commerce
will be sponsoring this luncheon on Friday, March 3, 2017, at J.W.
Marriott Resort and Spa at 11:30 a.m., with Mayor Harnik as the
keynote speaker.
B. CITY ATTORNEY
None
C. CITY CLERK
1. Announcement of Upcoming City Council Study Session - Thursday,
March 9, 2017 - 2:00 p.m. - Administrative Conference Room,
regarding the Desert Willow Golf Resort Lot Pads and a Quiksilver
Resort.
Ms. Klassen noted the upcoming Study Session for Councilmembers, and they so
noted.
D. PUBLIC SAFETY
1. Fire Department
None
2. Police Department
a) "Every 15 Minutes" Program at Palm Desert High School -
Lt. Webb announced they have already started preparing for
this event, which will be held on Thursday and Friday, March 2
and 3.
b) National Prescription Drug Take-Back Day - Lt. Webb
announced that April 29 is the National Prescription Drug
"Take-Back Day," event at the Palm Desert Sheriffs Station.
Luckily, at the Palm Desert Station, prescription drug drop off
is available daily.
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E. MAYOR AND MEMBERS OF THE CITY COUNCIL
1. CouncilmemberSusan Marie Weber's Meeting Summaries Report for
the Period of January 30-February 12, 2017.
With City Council concurrence,the Mayor's meeting Summaries were received and
filed.
2. City Council Comments:
a) Donate Blood - Mayor Harnik stated the City of Palm Desert
will be hosting a Mobile Blood Drive on Friday, March 3, 2017
from 8:00 a.m. - 12:00 p.m. You can call Life Stream to
schedule your appointment or go online to:
https://giftoflife.lstream.org
3. City Council Requests for Action:
a) Request for Consideration of Updating City Council Liaison
Assignments List.
Councilmember Kelly and Mayor Harnik proposed the following
changes:
- CVAG Energy & Environmental Resources Committee
Councilmember Nestande as the Liaison with Mayor Pro
Tem Jonathan as the Alternate;
- Historical Society of Palm Desert - Councilmember
Nestande as the Liaison and Councilmember Kelly as the
Alternate;
- Joslyn Center Board - Councilmember Kelly as the Liaison
with Mayor Harnik as the Alternate.
- Palm Desert Sister Cities Foundation - Councilmember
Kelly as the Liaison and Councilmember Nestande as the
Alternate.
Councilmember Kelly moved to, by Minute Motion, approve and adopt the proposed
changes to the City Council Liaison Assignments List accordingly. Motion was seconded
by Nestande and carried by a 5-0 vote (AYES: Jonathan, Kelly, Nestande, Weber, and
Harnik; NOES: None).
b) Analyze - Community Outreach Resource Program (CORP1-
Mayor Pro Tem Jonathan stated that the other side of the
equation to the CVAG's Homelessness Committee is adopting
a public safety measure that results in outreach to the
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homeless that is more effective than the standard paradigms,
which is to arrest, book, take up four hours of deputy time, and
release. The Program that is working its way through
recommendation by CVAG is known as CORP, which is
already in place and developed in large part by Chief Richard
Twiss in the City of Indio. He said the Program was adopted
by the City of Indio and has been in place since 2013. It's an
incredibly effective and successful program as they have had
91 participants and graduating 89 to leave homelessness with
zero of them returning to homelessness. He said a former
participant spoke to CVAG and is enrolled in the local law
school in Indio and ready to take the mini-bar exam next
month. The thought occurred to him that CVAG's process will
take a while, so he would like to expedite their
recommendation and ask staff to analyze the benefits and
advisability of adopting the Community Outreach Resource
Program in the City of Palm Desert. He offered to provide the
City Manager with the draft resolution CVAG has developed for
adopting the Program to see if it made sense in Palm Desert
and addressing the cost.
c) Analyze - Allocation of Affordable Housing Units - Mayor Pro
Tem Jonathan stated this item is separate but related to The
Community Outreach Resource Program (CORP). He's
informally requested, but today he is formally asking staff to
analyze the feasibility of allocating a limited number of units in
the affordable housing inventory and prioritize them towards
participants in the CORP should it be needed.
Councilmember Nestande said it was a great idea.
Ms.Aylaian agreed to look at both issues and return to the City
Council for action.
Mayor Harnik recalled Chief Twiss provided a presentation at
the League of California Cities Conference, stating the
Program that was developed in the City of Indio is wonderfully
successful. She noted that in the County of Riverside there are
2,000 homeless, so to hear 89 success stories is tremendous.
Mayor Pro Tern Jonathan added that in the County of
Riverside, homelessness amongst veterans has been
eliminated, which is something no other County in this Country
can say, adding that progress is possible.
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4. City Council Consideration of Travel Requests and Reports:
None
XX. ADJOURNMENT
With City Council concurrence, Mayor Harnik adjourned the meeting at 5:35 p.m.
JAN C. HARNIK, MAYOR
ATTEST:
RACHELLE D. KLASSEN, CITY CLERK
CITY OF PALM DESERT, CALIFORNIA
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