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HomeMy WebLinkAboutPrelim - CC - 04-13-2017Draft PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING THURSDAY, APRIL 13, 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 3:07 p.m. II. ROLL CALL Present: Mayor Pro Tem Sabby 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 William W. Strausz, Successor Agency Counsel 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 Stephen Y. Aryan, Risk Manager Lt. John Shields, Acting Asst. Chief, Palm Desert Police/Riv. Co. Sheriff's Dept. Grace L. Mendoza, Deputy City Clerk III. ORAL COMMUNICATIONS - A (CLOSED SESSION ITEMS) None PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING IV. ADJOURN TO CLOSED SESSION Request for Closed Session: Draft APRIL 13, 2017 A. Conference with Real Property Negotiator pursuant to Government Code Section 54956.8: 1) Property: Southeast Corner - Fred Waring Drive/San Pablo Avenue (APNs 627-101-002, -017, -033, -038, -039) Negotiating Parties: Agency: Lauri Aylaian/Martin Alvarez/City of Palm Desert Property Owner: City of Palm Desert Under Negotiation: x Price x Terms of Payment 2) Property: 42218 Verdin Lane (APN 624-440-008), Palm Desert Negotiating Parties: Agency: Lauri Aylaian/Janet M. Moore/City of Palm Desert/ Palm Desert Housing Authority Property Owner: Angie Foster Under Negotiation: x Price x Terms of Payment 3) Property: 42225 Verdin Lane (APN 624-431-018), Palm Desert Negotiating Parties: Agency: Lauri Aylaian/Janet M. Moore/City of Palm Desert/ Palm Desert Housing Authority Property Owner: Francisco and Lorena Rodriguez 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 C. Conference with Labor Negotiator pursuant to Government Code Section 54957.6: Agency: Lauri Aylaian/City of Palm Desert Employee Organization: Palm Desert Employees Organization With City Council concurrence, Mayor Harnik adjoumed the meeting to Closed Session of the City Council, Successor Agency, and Housing Authority at 3:07 p.m. She reconvened the meeting at 4:05 p.m. 2 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 13, 2017 V. RECONVENE REGULAR MEETING - 4:00 P.M. A. REPORT ON ACTION FROM CLOSED SESSION. Draft Mr. Hargreaves reported that no action was taken on the Desert Willow surf park item, but Council directed staff to move forward under the Exclusive Negotiating Agreement and continue to analyze the project with respect to economic and environmental impacts. He reiterated that no definitive approval was taken at this time. VI. PLEDGE OF ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA - Palm Desert Charter Middle School ASB Members Faith Loutsenhizer and Aidan Clark VII. INVOCATION - Mayor Jan C. Harnik VIII. AWARDS AND PRESENTATIONS A. PRESENTATION OF PROCLAMATION DECLARING THURSDAY, APRIL 13, 2017, AS "CORPORAL TROY LAWRENCE DAY" IN THE CITY OF PALM DESERT. On behalf of the entire City Council, Mayor Hamik presented the proclamation to Corporal Troy Lawrence. Mr. Lawrence thanked Lt. Baur as he was the one that spearheaded the proclamation idea, which he appreciated very much. He also thanked his colleagues for the show of support this evening, stating it has taken him 27 years to reach this point and he was on to his next chapter. Mayor Pro Tem Jonathan thanked Mr. Lawrence for everything he's done to keep the community safe, adding that his wife Amy Lawrence was proud of him as well. IX. ORAL COMMUNICATIONS - B MS. CHEYENNE ROBINSON-GREER, Desert Elite Mavericks, stated they are the All -Star Cheer Team in Palm Desert. She said the Senior Renegades and Rebel Teams have both earned the amazing privilege of competing at the D2 Summit in May at Disney World in Orlando, Florida. It's the World Championships and a very select few are invited. The teams conduct fundraisers on the weekends to help pay for this trip, because the cost for each member is $1,400. They are asking businesses and 3 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 13, 2017 Draft professionals fortheir consideration in sponsoring the team. She said Desert Elite is a recognized 501(c)(3) nonprofit organization, so any and all contributions are tax deductible. The teams are representing the City of Palm Desert and the Coachella Valley, and they hope to bring back this prestigious award. She had flyers for donations or sponsorship, including information on their upcoming bake sales/fundraising events. This Friday, April 14, they will be at the Albertson's stores on Monterey Avenue and Country Club Drive and Washington Street and Hovley Lane from 12:00 noon to 3:00 p.m. and on Saturday, April 15, from 1:00 to 3:30 p.m. Additionally, they are also selling raffle tickets for amazing prices like a big screen T.V., one -week trip to Cancun, Mexico, Dodgers versus Cubs tickets, and gift cards valued at $50 or more. MR. WALLY MELENDEZ, Thousand Palms, suggested to the City Council to consider the annexation of Thousand Palms, stating the County can only do so much to address tenant/landlord issues, adding there wasn't even an office to address them. He said many of the mobile homes in the Tri-Palms Mobile Home Park were built in the 1960's, so they are in a decrepit state, and eventually there will be slum lord issues. He said Thousand Palms is located north of Interstate 10 on Monterey and it's in a big hole, a flood plate. He said Thousand Palms is in need of a lot of improvements. Additionally, when there is fog, it tends to roll down hill with all its pollutants causing an unhealthy situation there as well. His main point was for Palm Desert to take into consideration the annexation of Thousand Palms and think about the property taxes it can collect. MS. ERICA FELCI, Governmental Projects Manager for Coachella Valley Association of Governments (CVAG), stated CVAG was the lead agency for CV Link. She wanted to update the City Council on the momentum that's building behind the project. First, in the next couple of weeks they anticipate ground to be broken on the Cathedral City bike path. This is a project that the City of Cathedral City is spearheading, which is legally separate from the CV Link, but it's being built to CV Link standards and will ultimately connect to the rest of the CV Link. She noted the City of Palm Desert has allowed them to use the Council Chambers for the Environmental Impact Report (EIR) Certification Meeting. This special meeting with the Executive Committee is set for Monday, May 15, 2017, at 6:00 p.m. in the Council Chambers at Palm Desert City Hall. They expect a large turnout, so they greatly appreciated that the City was able to accommodate them. The draft EIR is available for public review, stating they are currently going through all the comments received during the public comment period, and they're legally required to respond. She said some of the comments are quite lengthy, noting the City of Rancho Mirage submitted 92 pages. At this special meeting is where the Executive Committee will be asked to certify the EIR, which will be a major milestone for the project and they are very excited. Another milestone to report on is that at a March 15th meeting in Los 4 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 13, 2017 Draft Angeles, the California Transportation Commission (CTC) unanimously voted to commit $5.584 million for the project, which is part of the 2017 Active Transportation Program. She said CV Link was one of 66 projects awarded funding in that round, adding it had received support from both the Riverside County Transportation Commission (RCTC) and the Southern California Association of Govemments (SCAG) before going to the CTC MR. MICHAEL STEARNS, Executive Director of CV SPIN, Inc., facilitator of two bike rides, Tour de Palm Springs and The Patriot Ride. He said the weather was an issue in January for the Tour de Palm Springs event, but he was grateful for the amazing City employees for their assistance. Specifically, Amy Lawrence and her husband, and Deputy Brad Stone, who was his contract for this past year's tour. He said Amy continues to be a true professional in every manner as she conducts her business, and Deputy Stone worked late into the evening hours dealing with route changes to ensure officers were in the proper positions. He added that both employees were incredible to work with as they brought the Tour to life even in the rain. In addition to City staff, he's proud of the volunteers that were willing to work through the rain and street flooding. He thanked law enforcement agencies and their representative for working with him on those route changes on such short notice, stating many worked while off duty and well into the night. He said each of these fine men and women have shown him why the Coachella Valley works so well, and he was fortunate to be part of this community that has the drive to showcase its best to the rest of the world. On behalf of the 90+ charities that benefit from the Tour de Palm Springs and The Patriot Ride, please pass along CV Spin's appreciation of staff's efforts. The following five speakers spoke against the Desert Willow Project, for which there was a Study Session held prior to this City Council meeting. MR. DENNIS BREALEY, Covington Drive, Palm Desert, stated he was a 14-year full-time resident of Palm Desert. He said they recently became aware of the Desert Willow project, and as noticed in the Study Session, there is a great deal of interest from the community, because they believe this project will seriously impact them. Their objection was not to the building of a hotel or a resort at Desert Willow, because for more than 20 years it's been long understood one would be built. However, they were shocked and dismayed that the City would consider building a water park in the middle of residential communities. He said the City should find a developer to build a resort, in fact, they encouraged a four-, five-, or even a six -star resort as had been discussed previously. He had every confidence in the City to work closely with Planning for a first-class facility that would fit with the environment and enhance the value of their homes rather than a water park that would destroy their communities. The most shocking part of the Quiksilver proposal is the water -based amusement park, which was wrong in every scenario they can imagine. He said the City and Coachellla Valley 5 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 13, 2017 Draft Water District (CVWD) have worked with everybody to reduce its water consumption for the past five years, and now the City was considering five million gallons of water a year on a guzzling entertainment park. There are important questions to be answered like where is the water going to come from; will they be taking it from the Aquifer, because CVWD just announced the installation of two ponds to recharge the Aquifer in the Central Valley; and where this resort expects to be built happens to be at the lowest point in the Aquifer in the Valley, which doesn't make sense. In a recent presentation to the Urban Land Institute, the CEO of Quiksilver touted their environmental and sustainability commitment to all things being green, and in the next breath talked about putting a water park in Palm Desert, which was a complete contradiction. In the same presentation, the CEO acknowledged the issues of crime and security in their facilities, fully aware of the number of vehicles and crime to any environment they built, which was fine, but what about the surrounding communities. He questioned who will be focusing on reducing crime from the thousands of vehicles and visitors coming from outside the area that will affect their community. Mayor Harnik noted there will be ample opportunity for the City Council to hear from everyone, in not at this meeting, at upcoming public hearings on this matter. MAUREEN BREALEY, Covington Drive, Palm Desert, asked the Council to consider the other numerous negative impacts from this project such as noise from hundreds of screaming kids for 13 hours a day, bright lights at night, and the volume of traffic. She said this project will bring about the collapse of property values and the loss of quiet enjoyment by the people in the neighborhood for miles around this development, adding that Palm Desert didn't have the infrastructure to support the impacts, and what will be the cost to implement it. She questioned how far away from the corner of Country Club and Cook Street do you have to be to not be negatively impacted by the noise or lights. She said they chose to live in Palm Desert for the quality of life, it's quietness, safe neighborhoods, and its dark sky community, which is all at risk with this Quiksilver project. She wondered how many residents will see their property values decline, and for some, their life savings wiped out by allowing this amusement park to locate in the middle of an existing residential area. She asked the City Council if it really wanted to be the one to set Palm Desert on a path to becoming an Anaheim, Santa Clarita, or a Buena Park known for their amusement parks, questioning if that was the legacy it wanted to leave on Palm Desert. She said the primary difference between these other communities and Palm Desert is that those amusement parks existed before the residents moved in, adding they accepted the inconvenience of the lights and noise in trade for much lower home value. In this case, the City is considering dropping a major environmental and social disaster in the middle of a residential community, which she thought was inconceivable. She said Palm Desert is 6 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 13, 2017 Draft the City of El Paseo, the McCallum Theater, the Symphony, and The Living Desert, questioning how a water park with screaming children, noisy equipment, and traffic on a 12-hour basis fit into that equation. MS. DEDE MERRILL, Covington Drive, Palm Desert, stated that if the City Council truly believed Palm Desert would be enhanced by a water park, there are hundreds of acres of undeveloped land in the University area where it can be located. She said the Montecito community is passionately objecting to this project, as they are a small, gated, beautiful quiet community of 98 custom-built homes, and it will be the first community on Cook Street that this development will destroy, because it will be enveloped by a giant water park literally within feet of their backyards. Adding that it will be equivalent to living adjacent to Coachella 365 days a year. Since this project was brought to the public's attention, she has spoken to her neighbors who have already canceled home improvements, including herself, stating there was no point in investing in a home if the values are going to be destroyed considerably. She said people are distraught and worried to the point of not sleeping that some are trying to sell their homes and get out. Of course now that this concept has been made public, the chances of anyone selling their home is greatly reduced, which is what the residents are dealing with now that the City was considering this monstrosity. This project will impact Montecitio, Desert Falls, The Lakes, Belmont, Vista Del Montanas, Silver Sands, The Estates at Desert Springs and others - anyone within earshot or night sky visibility of the water park. She went on to say the longer the City considered this project, the more damage it caused to the surrounding communities. She said they are begging and imploring the City Council to kill this whole project and not drag it out, because it was already doing immediate and real damage. She asked the City Council to show it indeed cared and encourage the hundreds, if not thousands, of negatively impacted citizens to invest in their homes and neighborhoods, and allow the people to once again sleep comfortably. MR. GARY EWASKA, Covington Drive, Palm Desert, stated the proposed amusement park will not bear positive contributions to the community or the City of Palm Desert other than to potentially line the City's coffers. He said this project will destroy their community, quality of life, and the enjoyment of their homes. He asked how much money did Quiksilver offer the City to overlook the extreme negative impacts it will bring to the Montecito community and numerous others as well. He said some Councilmembers ran on the platform of social awareness and sensitivity to the community, asking them to demonstrate it with more than just words, because the community needed their support urgently. He added that the community was not opposed to development at the site, stating it has known for more than 20 years there would be a resort type of hotel, preferably a five-star to complement the crown jewel of the JW Marriott, however, he couldn't imagine they would be in favor of this project. He asked the Council to 7 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING Draft APRIL 13, 2017 consider the extreme negative impacts this project would have on the Desert Willow golf course, stating the beautiful desert area would be covered by ugly water slides and parking lots, and no one would want to play the Mountain View Golf Course if the charm and beauty is destroyed by this huge monstrosity of a water park. He said Palm Desert was known for its quietness, elegance, and sophistication as envision by the founders of this City, adding this was not Anaheim, Buena Park, or Santa Clarita. Additionally, Palm Desert is known for El Paseo, the McCallum Theater, the symphony, fine dining, and art galleries. In closing, he asked if this monstrosity was proposed within a few hundred feet of Councilmembers back yard, how would they vote. He asked the Council to give them the same consideration and do the right thing, urging them not to betray its fellow citizens over the money being offered and to just say no, and do it quickly. MR. JAMES WESTLOW, Covington Drive, Palm Desert, stated he was a permanent resident of Palm Desert. He had the pleasure this week of spending a few hours reading the Palm Desert General Plan where he found two tenants of the Plan as to why Palm Desert is such a special place to live. First, under the Guiding Principals - Human Scale Design, it states, "The impetus of the Plan should be on planning and designing Palm Desert with people as the first primary focus to endure as a community with a high -quality of life. Secondly, that the City of Palm Desert, as a guiding principal, create neighborhoods that provide a high -quality of life, and neighborhoods must provide, safe, attractive, and comfortable places to live. He said Montecitio is classified as a golf course and resort community, and the proposed project will not support a high -quality of life or provide for a comfortable place to live. He and his wife retired and moved to Palm Desert in 2011 for the serenity and tranquility of the neighborhood, which was the attraction of the area without urban sprawl elements and minimal traffic congestion. Relative to noise, occasionally when they are in their back yard, they can hear the music from JW Marriott on Country Club Drive when they have outdoor events, but that's only a few times a year, which was quite acceptable. However, the potential noise from a DJ blasting music toward an amphitheater, the wonderful serenity they now find will be broken beyond repair. He went on to say the General Plan identified Cook Street as a major connector between University Park and Highway 111, and the traffic and its associated noise are manageable up to this point, but this project as planned will compound traffic and density on Cook Street. A third concern is water, which has already been addressed. The fourth concern is the lighting that will be needed to illuminate the property and water park that will destroy the most beloved feature of living in Palm Desert, which is the beauty of the night sky. He and his wife strongly support consideration of these issues by the City Council, committee, or agencies reviewing it on behalf of the City. He reminded the City Council that the mission of the City is to first provide for the highest quality of life for its people by creating neighborhoods that support the two premises, which this project does not support. 8 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 13, 2017 X. MAYOR AND COUNCILMEMBER COMMENTS TO THE COMMUNITY A. Short -Term Rental Task Force Draft Councilmember Nestande reported she and Councilmember Kelly have been moving forward making good progress, stating they have been listening to the community and will meet again next Thursday; hopefully they will come up with some solutions. Councilmember Kelly added they continue to receive input, so if anyone had a perspective they wanted to share, they can check the City's Website to learn how to offer that information, because they are staying on a fast timetable to complete the work. B. Farewell to Assistant City Manager Rudy Acosta Councilmember Weber thanked Mr. Acosta for the job he did and the work done with the Dissolution of Redevelopment, which was a thankless job, but she appreciated it. Another big thank you to him for taking her on a tour of Desert Willow, because in driving around she was able to see through his eyes the concept visualized of how this golf course would be laid out to its present status. She said Mr. Acosta explained how former Councilman Buford Crites worked on getting a mold of the rocks in Indian Canyon, and those are the rocks in all the water features. He also explained where and why every plant was placed, etc. Therefore, she met with the City Manager to propose doing a history booklet of Desert Willow, because there is a background story to each and every design element. She added that Mr. Crites had indicated he would like to work on such a booklet, adding that at the 20th Anniversary of Desert Willow, she hopes to have guests and people that worked on the project to be interviewed in order to include it in the booklet. She thanked Mr. Acosta for putting his heart and soul into the project and allowing her to see Desert Willow through his eyes back to when it was all just sand. C. In -Touch ADD Mayor Pro Tem Jonathan shared that leaving his house the other day there was a little pot hole in the street, and by the next day it got bigger, and so forth. Therefore, he pulled out his smart phone and he used the City's In -Touch App, which was incredible. He took a picture, the app knew where he was, and he sent it to City Hall. He kept getting updates such as your concern has been received, the fix is in process, and within 48 hours he received the final message that it was fixed. The purpose of him sharing this story is to inform the 9 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING Draft APRIL 13, 2017 audience that the City has this application that is available on Apple and Android devices. The application can be used to report pot holes, graffiti, or other things that need fixing, and the wonderful City staff will attend to it promptly. Mayor Harnik concurred, stating she has used the application several times and staff kept her apprised of the progress, adding it's a great tool for the City. D. Fashion Week El Paseo Mayor Harnik shared it was great for Councilmembers to take the behind the scene's tour for Fashion Week, because there is a better understanding of what it takes to put the event together E. Veterans Expo at the Indio Fair Grounds Mayor Harnik reported the Veterans Expo was outstanding, stating there were a lot of booths representing services they provide to veterans. F. Annual Riverside County Sheriff's Department's Award Ceremony Mayor Harnik noted that Deputy Joshua Robertson from the Palm Desert Station received the Life -Saving Medal. The story of how he saved someone's life was impressive, but more impressive is that it was the second time he has received the award. Also, the Community Service Medal went to volunteer Russell Campbell who currently serves on the City of Palm Desert Audit, Investment & Finance Committee, and has served on the Planning Commission as well. G. Proposition 64 - The Adult Use of Marijuana Act Mayor Harnik reported she and Councilmember Weber have been working on the ad hoc committee with a diverse group of stakeholders on Proposition 64 issues. She thanked Principal Planner Eric Ceja for an outstanding first draft ordinance. The Committee is still accepting any information or feedback in order to come up with the best ordinance possible for the City of Palm Desert. 10 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING Draft APRIL 13, 2017 XI. CONSENT CALENDAR A. MINUTES of the Regular City Council Meeting of March 23, 2017. Rec: Approve as presented. B. CLAIMS AND DEMANDS AGAINST THE CITY TREASURY - Warrants Dated 3/10/2017, and 3/24/2017. Rec: Approve as presented. C. CLAIMS AND DEMANDS AGAINST THE CITY/HOUSING TREASURIES - Warrants Dated 3/17/2017, 3/24/2017, and 3/31 /2017 (Joint Consideration with the Palm Desert Housing Authority). Rec: Approve as presented. D. APPLICATION FOR ALCOHOLIC BEVERAGE LICENSE by Barbeau LLC, 73750 El Paseo, Palm Desert. Rec: Receive and file. E. YOUTH COMMITTEE MINUTES for the Meetings of January 9 and February 6, 2017. Rec: Receive and file. F. INDEPENDENT ACCOUNTANTS Agreed -Upon Procedures Reports for Various Palm Desert Hotel Operator's Transient Occupancy Tax (T.O.T.) Compliance Reviews. Rec: Receive and file. G. REQUEST FOR ADOPTION of Resolutions, Setting Forth Findings and Authorizing the Destruction of Paper Records from the Department of Human Resources. Rec: Waive further reading and adopt: 1) Resolution No. 2017 - 31 - Records that Have Met/Exceeded the Retention Schedule (Adopted May 14, 2015) - Records Dated June 1999 - March 2014 (Exhibit "A"); 2) Resolution No. 2017 - 32 - Digitally Imaged Records, to Rely on the Electronic Record as the Official Record - Records Dated 2000-2011. 11 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING Draft APRIL 13, 2017 H. REQUEST FOR AUTHORIZATION to Purchase Employee Time and Attendance Software from ExecuTime and for City Manager to Execute a Contract for Purchase, Installation, and License Fees (Contract No. C36010). Rec: By Minute Motion, authorize the purchase of Employee Time & Attendance Software from ExecuTime in the amount of $33,825, and City Manager to execute a contract for purchase, installation, and license fees for same — funds are available in Account No. 5304190-4404000. I. REQUEST FOR AUTHORIZATION to Release a Portion of Security for Legends Gardens, 73685 Catalina Way, and Acceptance of a 10% Maintenance Deposit (Prospect Companies, Applicant). Rec: By Minute Motion, authorize release of a portion of the Improvement Security for Legends Gardens, 73685 Catalina Way, Palm Desert, and accept a 10% Maintenance Deposit in the amount of $1,862. J. REQUEST FOR AUTHORIZATION to Release a Portion of Security for Parcel Map No. 36792 (Millennium) (Palm Desert University Gateway, LLC, Applicant). Rec: By Minute Motion, authorize release of $1,453,288.50 of the Faithful Performance Bond and $726,644.25 of the Payment Bond (Labor & Materials) for the completed improvements to Dinah Shore Drive for Parcel Map No. 36792. K. REQUEST FOR APPROVAL of Out -of -State Travel for the Director of Community Development to Attend the 2017 Congress for the New Urbanism (CNU) Conference in Seattle, Washington. Rec: By Minute Motion, authorize Out -of -State Travel for the Director of Community Development to attend the 2017 CNU Conference being held in Seattle, Washington, the first week of May — funds are available in Account No. 1104470-4312000. Upon motion by Weber, second by Kelly, 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 12 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 13, 2017 XIII. RESOLUTIONS Draft A. RESOLUTION NO. 2017 - 33 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, AUTHORIZING SUBMITTAL OF APPLICATIONS TO THE CALIFORNIA LEAGUE OF CITIES FOR THE HELEN PUTNAM AWARD FOR EXCELLENCE IN THE CATEGORIES OF HOUSING PROGRAMS AND INNOVATIONS, PLANNING AND ENVIRONMENTAL QUALITY, PUBLIC SAFETY, AND THE EXECUTION OF ANY RELATED DOCUMENTS NECESSARY FOR THE APPLICATION. Principal Planner Eric Ceja stated the Helen Putnam Award recognizes and promotes outstanding efforts and innovative solutions by city governments. Staff has identified three potential applications to submit for the Carlos Ortega Villas, General Plan Update 2033, and Public Safety for the "Pit Crew" CPR Program. In order to apply for the Helen Putnam Awards, it requires the City Council show its support by adopting a Resolution. Councilmember Kelly moved to waive further reading and adopt Resolution No. 2017 - 33. Motion was seconded by Nestande and carried by a 5-0 vote (AYES: Jonathan, Kelly, Nestande, Weber, and Harnik; NOES: None). B. RESOLUTION NO. 2017 - 34 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, AMENDING PORTIONS OF RESOLUTION NO. 2017-18, EXHIBIT "A," - SALARY RANGES AND ALLOCATED CLASSIFICATIONS — HUMAN RESOURCES DEPARTMENT - CLERICAL ASSISTANT. Ms. Carney stated that whenever there is a vacancy the position is reviewed to see if it can be filled at a lower cost when appropriate and timely, which it is. Therefore, it will be filled as a clerical assistant position. Councilmember Nestande moved to waive further reading and adopt Resolution No. 2017 - 34. Motion was seconded by Kelly and carried by a 5-0 vote (AYES: Jonathan, Kelly, Nestande, Weber, and Harnik; NOES: None). XIV. ORDINANCES A. For Introduction: None 13 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING B. For Adoption: Draft APRIL 13, 2017 1. ORDINANCE NO. 1319 - AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, AMENDING CHAPTER 2.52 OF THE PALM DESERT MUNICIPAL CODE - PERSONNEL SYSTEM, BY AMENDING SECTIONS 2.52.305 - EMPLOYMENT TYPES AND 2.52.700 - HOLIDAYS. Ms. Carney noted the City Council reviewed the proposed Ordinance at the last meeting, stating this is to make changes for part-time employees and the language has been amended as requested by Councilmember Kelly. Mayor Pro Tem Jonathan moved to waive further reading and adopt Ordinance No. 1319. Motion was seconded by Kelly and carried by a 5-0 vote (AYES: Jonathan, Kelly, Nestande, Weber, and Harnik; NOES: None). 2. ORDINANCE NO. 1320 - AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, APPROVING AN AMENDMENT TO A DEVELOPMENT AGREEMENT FOR MARRIOTT SHADOW RIDGE (DA 98-1) LOCATED AT 9003 SHADOW RIDGE ROAD, Case No. DA 98-1 Amendment No. 1 (Marriott Ownership Resorts, Inc., Applicant). Principal Planner Eric Ceja noted this was the second reading of the Ordinance for an Amendment to a Development Agreement for Shadow Ridge. Councilmember Nestande moved to waive further reading and adopt Ordinance No. 1320. Motion was seconded by and carried by a 5-0 vote (AYES: Jonathan, Kelly, Nestande, Weber, and Harnik; NOES: None). XV. NEW BUSINESS A. CONSIDERATION OF AN APPEAL OF AN ORDER TO ABATE A PUBLIC NUISANCE DATED MARCH 15, 2017, FOR VIOLATIONS OF PALM DESERT MUNICIPAL CODE SECTION 8.20.020(L) - NON -PERMITTED STRUCTURE, Case No. 16-00001341 (James Johnson, Appellant). Code Compliance Officer Johnny Terfehr stated this item is an appeal of an Order to Abate a Public Nuisance. He said when somebody violates the City's Code, they have a right to appeal to the City Council to review it. He explained this was a concrete structure that was built in the rear yard without permits and is also in the rear property line setback. The City worked with 14 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING Draft APRIL 13, 2017 the Appellant for almost a year trying to figure out his options and whether the structure was ever permitted. The Appellant went through the HOA records and staff went through City records and neither found records that showed the structure was permitted. Therefore, the structure has to be removed, so staff initiated an Order to Abate, and the Appellant is appealing that Order. Councilmember Nestande stated she was not sure of the legality and perhaps her question was for the City Attorney. She said she pulled a property history report revealing this property has changed hands few times, so she wondered if this property owner is left holding the bag. Mr. Terfeher responded that if you buy a property, you are stuck with whatever improvements were made that were unpermitted, which is typically how it operates. Councilmember Nestande questioned if whoever the realtor was in the transaction is at fault for not disclosing the structure at the point of sale, adding she didn't know if any of this evidence should be considered. Mr. Hargreaves explained there may be fault somewhere, in terms of the disclosure statement, but that's really not a City issue at this point. He said the City was not in charge of enforcing State laws with respect to real estate transactions, but it does have to enforce laws with respect to City codes. Councilmember Weber asked if there was any way to block the view with plants of any sort, because the wall was already six -feet high. Mr. Terfehr said the issue wasn't about the view, it's about an unpermitted structure that was built within the setback. Whether it's visible or not, it violates the Building Code and the Zoning Ordinance. Councilmember Kelly said she understood one of the options presented to the Appellant, which would or could have brought this into compliance, was to remove the roof of the structure. Mr. Terfehr answered yes, because that would only leave the walls, and walls can be built within the property line setback. Councilmember Kelly stated that without the roof, the structure could remain, but it just wouldn't be useful and whatever is in it would be exposed to the elements. Mayor Pro Tem Jonathan said it was interesting the Code addresses the setback as it relates to the walls, but if the roof is not on the walls, it's not longer a violation. 15 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING Draft APRIL 13, 2017 Mr. Terfehr explained that at that point it's no longer considered a structure, but rather a perimeter wall. Mayor Harnik asked staff to help the Council understand the intent of the Code, and Councilmember Weber asked if the wall would have required a permit if it's over three feet. Mr. Ceja said there are a couple of different ordinances in play here. One is an Accessory Structure Ordinance, which states that for an enclosed structure, even a playground structure that's open has certain setback standards. So by having a roof over a structure, it becomes an enclosed building and requires certain standard setback on the property line. Without the roof, it's just a wall, and the City doesn't have specific setbacks in the rear yard for wall structures. There are several situations where you have walls that may have enclosed trash cans or used as retaining walls. By defaulting to the wall ordinance, staff is saying the wall needs to be at least six -feet high, and that's the difference by not having a roof. Further responding, he confirmed the structure is six -feet high, and if the roof is removed, the Appellant can apply for a special inspection to permit those walls. Councilmember Weber questioned why this item was called a public nuisance, if staff has indicated this was not a visual issue. Mr. Terfehr stated that the City defines any violation of its ordinance as a public nuisance. Further responding, he said that the Building Department has indicated that they don't see any reason why the walls couldn't be permitted, but they would have to do the inspection. Councilmember Weber inquired if umbrellas would be okay within the walls, stating it might be a silly question, but as she understands it, it's the roof that's causing this to be an issue. Mr. Ceja replied he wouldn't get too much into the weeds, but depending on the umbrella and whether it's affixed to the ground is what could make it a violation, but if it's something that's collapsible and can be removed, it may be allowed. Mayor Harnik recalled for the Council it has dealt with playground equipment as an issue, and most recently a guest house because of it's positioning. MR. JAMES JOHNSON, Appellant, stated has been a resident of Palm Desert since 1984, and he happily moved to the Summit in 2008. He's been asked if the structure was there when he purchased the property, and the answer is that it was. He claimed the structure has existed for more than 30 years, stating it was there when the property was built, in 1986-87. 16 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING Draft APRIL 13, 2017 Indications are that the structure was bult at the same time as the house, because he hasn't heard or seen anything that disputes his findings. He said the structure has a floor drain that is connected to the other drains in the deck, and the back of the house is 100% deck with no grass. The structure has electricity and a phone line that runs under the deck, and it was built using the same materials as the outer walls. As a matter of fact, the east side of the structure is the back wall of the yard, and the north side of the structure wall supports a gate that protects the swimming pool as shown in Exhibit A. Additionally, the structure has an intercom system that was connected to the main system in the house, which is approximately 60-feet away, and the lines for it go under the two -level concrete deck, under the slab and into the house, and up into the kitchen wall. He said every contractor he has spoken to has said it's unlikely that the work could have been done after the house was built. He said the house has changed hands numerous times and everyone that's owned it, including him, didn't have a problem with the structure there. He said you almost couldn't see the structure, because it blends into the wall. As a side note, he said Mr. Terfehr and the people at the City have been terrific in working with him on this matter, adding that Mr. Finley in the Building Department did a magnificent job of researching through microfiche and handwrite records to try to find something on the structure. Mainly, because it was kind of logical to assume the structure was built at the same time the house was built based on the physical evidence and in him talking to contractors about it. He tried to find the people that built the house, but two of them had passed away and one gentleman was in a home unable to communicate. He went on to say the structure was not visible to the homes north or south, and to the east is a vacant lot, which has been split in two. He said each half of the lot has been deeded to the owners to the north and south of that vacant lot, and they are about 15-feet below his lot line. As shown on picture 6 of Exhibit A, you can see the wall behind the structure, which is almost as high as the roof of the structure, stating it was almost invisible with the foliage that's there. Additionally, that structure existed before his neighbors bought their homes and they never questioned it. When he purchased the home, he had a title search done and learned the house had changed hands several times, so there was no reason to think anything about the property was non -conforming. He said the structure is well -maintained, and as mentioned in the staff report, it presents no danger to anyone. With all this in mind, he asked the City Council to consider making an exception and grandfather the structure as part of his home. He appreciated the opportunity to address the City Council. Councilmember Kelly asked how the Appellant used the structure. MR. JOHNSON replied that it seemed to him it was designed as a garden house, because it has a work bench, shelves, and a drain. He uses it 17 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING Draft APRIL 13, 2017 primarily to store pool equipment and thing the grand kids use, adding that without the roof the structure becomes useless. Councilmember Kelly said she noticed Mr. Johnson appeared to be at least six -feet tall that she was having difficulty picturing him making considerable use of the structure given it's dimensions. MR. JOHNSON said the interesting thing is that the floor is recessed and slopes toward the drain, which is at the center of the floor, but he is very close to the top when entering, but he can get in there. Responding to question, he confirmed the Summit has an HOA, and he went through their records, but he really didn't find much information. The HOA has no objection to the structure and it's out of their purview, because the City has jurisdiction. Mr. Terfehr explained homeowner associations CC&Rs (Covenants, Conditions & Restrictions) can be more restrictive, but in this case, if the Summit's CC&R's don't prohibit the structure and the City's Ordinance does, the City can enforce it. Councilmember Kelly asked the Appellant if he ever had any conversations with the neighbors when the vacant lot was split in two. MR. JOHNSON said there was no conversation at any time about the structure. However, his back wall has sections of wrought iron, which his neighbors proposed to fill in so they wouldn't have to build a wall in their property, which he agreed. They also asked him if they could add a couple of forces of block to the south wall, because the land tiers down from south to north, and he agreed to that as well. However, one morning he found them digging trenches to build their walls, which is when they told him they changed their minds. Responding to question, he confirmed the wall next to the structure belongs to the neighbor, adding that in order to see the structure, you have to be at a certain narrow angle to see it. Mayor Harnik asked what caused this to become an issue. MR. JOHNSON said one of the neighbors that divided that vacant lot filed a complaint, but he was never approached about it. He said this matter caused him and his wife a lot of stress. He thanked Mr. Terfehr for his understanding, because while he was going through this, his wife got ill and within 21 weeks she passed away, which is when Mr. Terfehr gave him a six -months extension to deal with this matter. He didn't want to criticize the neighbors, but he sees them walking their dog, and they had talked about the back wall they wanted to build, but they never said a word about the structure. He learned from another neighbor that the wife told her she didn't like the look of the vent on the structure. If that's the case, he said he would 18 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING Draft APRIL 13, 2017 be glad to remove it and replace it with a flat cap, if the City was to allow him to keep the structure. He knew full well the structure doesn't meet the City's Code, and he wasn't arguing that point, but it's been there for 30 years and it never seemed to bother anyone. When his neighbor bought the house, the lady that filed the complaint, the structure already existed, in fact it was more visible at that time, because it was before they put up their wall. Mayor Pro Tem Jonathan thanked Mr. Johnson for his civility, understanding, respect, and the compliments he gave to staff, which is noted and appreciated. Mayor Pro Tem Jonathan asked staff what options were available and if a variance could be granted or if the structure can be designated as legal, non -conforming grandfathered type of use. In other words, did the Council have any options. Mr. Hargreaves answered yes, stating appeals come before the City Council as the ultimate authority and enforcement of City Codes, and it has the option of exercising its prosecutorial discretion in terms of remedies that are fair and just under the circumstances. Mayor Pro Tem Jonathan stated he didn't want to ignore the codes, because that is a dangerous precedent and slippery slope, and Council has had this situation come up. He asked if the Council as a body had a finding that this appears to have been part of the original structure, and even though the records don't exist for the permit, it appears that it may have been permitted, thereby concluding that it wants to grandfather this structure. He asked if Council can get to that point based on conclusions rather than just arbitrarily. Mr. Hargreaves stated he believed Council can make the findings to that effect. He said the records are unclear, but given the length of time and lack of complaints, it appears to be a legal, nonconforming pre-existing use grandfathered in. Councilmember Weber commented that if the view is part of the issue, as mentioned and suggested by Mr. Johnson, the vent would have to be removed and replaced with something else. Councilmember Kelly shared she went out to Shady View Drive vantage point, because that's the only place you can try to get a peak at this structure. She said you couldn't see it from the front of the property, but from the parallel street looking over at what was a vacant lot, it truthfully hard to see the structure, except for the vent. At the heart of the story, the complaint was probably made because the vent is ugly, and it's too bad this wasn't figured out sooner. Therefore, she would support the outcome that Mayor Pro Tem Jonathan was alluding to with the condition that everyone has 19 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 13, 2017 Draft assented to, which is to replace the existing vent with something less prominent. Mayor Harnik said she was sympathetic to Councilmember Kelly's comment, but if staff couldn't find a permit for the structure, did that mean that the plumbing and electricity has not been permitted or inspected. Mr. Terfehr replied it would be a good assumption, but he couldn't' say that for certain. Presumably if a building inspector is out there, and he's inspecting, he's going to look at the structure. However, it's been his experience in Code Enforcement that once the home is built, a subcontractor is hired to build stuff like the structure, and then after all the inspectors are gone, the project is finished, which is a possibility. Mayor Harnik said it concerned her to have a structure that has not been inspected, asking if it can be remedied to ensure the electricity and plumbing is safe. Mr. Grance indicated it can be done. Mayor Pro Tem Jonathan said he was very sympathetic to the situation and believed there was honest and sincere intent with all parties. Also, he had to congratulate Mr. Terfehr, because he didn't know how many cities had a Code Enforcement Officer that the person that's being tag is saying he's a great guy, so well done. He was comfortable with this Council concluding that there is a reasonable possibility that the structure was part of the original home, subject to inspection and approval as indicated, lowering or removing of the vent, and the structure be deemed legal, non -conforming, and the proposed Order to Abate be rescinded. Mayor Pro Tem Jonathan moved to, by Minute Motion, based on findings and subject to inspection, approve the structure as legal, non -conforming, conditioned upon replacement of the existing vent with a flat -type design, and rescind the Order to Abate. Motion was seconded Kelly. Councilmember Weber stated this case really points out that the City of Palm Desert is all about compliance and not about punishing people, because the goal is to try to do everything possible to solve the problem. However, she is disappointed that Council is having to review things that didn't get inspected properly. She thanked the Appellant for taking the time and the patience to explain the situation to the City Council with photographs, etc. Mayor Harnik stated she believed there was no wrongdoing on the part of the Appellant, because he bought a home with no indication on the title report that stated the structure was not permitted. However, the dilemma is that the City has ordinances in place that it then asks its Code Enforcement and 20 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING Draft APRIL 13, 2017 Building Department to enforce. Then Council encounters a situation such as this one, after Officers have gone through their process and enforced the Ordinance as requested, where Council then determines that after hearing everything it finds a way to create a variance, which is a difficult thing to do. She added there isn't a motion that could be made that would make Councilmembers feel 100% good about, because this was a difficult issue. Mayor Harnik called for the vote and the motion carried by a 5-0 vote (AYES: Jonathan, Kelly, Nestande, Weber, and Harnik; NOES: None). B. REQUEST FOR AWARD OF CONTRACT TO HEPTAGON SEVEN CONSULTING, INC., IN THE AMOUNT OF $99,710 FOR PREPARATION OF THE PALM DESERT UTILITY UNDERGROUNDING MASTER PLAN (CONTRACT NO. C36020, PROJECT NO. 880-17). Mr. Greenwood stated that one of the major recommendations of the City's Utility Undergrounding Ad Hoc Committee was that the City create a Utility Undergrounding Master Plan. Because there lies specialized and technical work, staff issued a Request For Proposals (RFP) for consultants to develop that plan for the City. Unfortunately, staff recently discovered that one of the key elements wasn't included in RFP, which is to seek creative funding sources beyond what the typical city does in a typical situation. Additionally, the City received only one proposal from a formal request. Therefore, staff changed its recommendation to reject the bid and allow staff to revise the RFP to include a more detailed financial funding mechanism and conduct a broader solicitation to get more proposals, and bring back to the City Council for subsequent approval. MR. ROLAND ALDEN, Candlewood Street, Palm Desert, stated he's been in Palm Desert since 1995. Prior to staff changing the recommendation, he was prepared to support the recommendation. However, while hiring this firm might be a good first step, it's not sufficient. In 1995 when he purchased his home, he inquired with the City about the process of getting the utility poles removed, figuring that it would be a relatively heroic thing, but doable. A gentleman named Patrick Conlon went to his home with a map and explained the process and why it would be virtually impossible to get it done, which was disappointing. His wife then started circulating petitions to try to do something, and five years later in 2000, Mr. Conlon led the effort that came to the City's current process for undergrounding, which basically enshrines in policy the impossible process. He noted Mr. Conlon lives in his neighborhood and he attempted to underground the homes around his house and failed. No one was surprised, because it's the process used by most cities, stating it wasn't exclusive to California, and it's the process that doesn't work. Programs that are working well do not use Palm Desert's process. He shared that Palm Desert's has underground 418 homes, and when looking at that mathematic rate, it has 152 years to go before all the 21 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING Draft APRIL 13, 2017 homes are undergrounded. He said Palm Desert has a current project in the process for 101 homes, and if successful, the City would still have 3,000 homes left to underground, which would take 60 years to underground at that rate. Meaning that in the year 2025, 1,500 people will be waiting an average of 30 years to get their homes undergrounded. He said the firm that responded to the RFP has done work in Indian Wells and they may be well qualified in many dimensions, but the hard part is the process and financing, so he didn't think this step alone would address the hard questions. Mayor Harnik pointed out that there was nothing that would prohibit the City from doing districts concurrently. Mr. Greenwood agreed. Mayor Pro Tem Jonathan noted the City did have a very active and dedicated committee that met about ten times over the course of about a year. It did great work and Mr. Alden was part of it. The committee recognized the challenges, but is proud that the City embraced the recommendations of that committee and has made undergrounding throughout the City a priority under the General Plan Amendment. The issue that staff is referring to is that the current proposal looks at Rule 20A and 20B programs, which are two funding options. The directive of the prior City Manager in moving this ball forward, which came from the committee was as follows: The Committee's consensus is that the City should further investigate and rely on a virtual tool box of funding mechanisms, including existing resources such as Rule 20A Funds, Redevelopment Agency Bond Proceeds, the formation of assessment districts under Rule 20B, as well as potential new funding sources, including the purchase of Rule 20A credits from other public agencies, enhance infrastructure financing districts, and the possibility of placing a utility tax on the ballot with proceeds dedicated exclusively to utility underground. He said the Committee felt it lacked the expertise and therefore needed to retain a consultant to create that virtual tool box of funding. He said the City of Rancho Mirage did it with Redevelopment Funds, but that is no longer available. He supports the revised recommendation, which is to send this out to a new RFP that makes it very clear it's not limiting the consultant to Rule 20A and 20B, but in fact is searching for that virtual tool box of funding mechanisms. He said once the Committee completed its work to get to this point, which took a long time and there were valid reasons for it, but he's hoping this time around, the City can expedite the RFP process. Mayor Harnik pointed out the City Council agreed unanimously that the Utility Underground Master Plan is included as a goal set for 2017, and as the City moves forward, it needs to recognize that some residents are currently paying on their tax roll for their undergrounding. Therefore, the City needs to ensure they don't pay again for others undergrounding. She too wants her 22 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 13, 2017 Draft home to be undergrounded, but she wouldn't want others to have to pay for it. Additionally, there are developments that have been undergrounded where the buyer paid for it in the cost of the home, which also has to be considered. Mayor Pro Tem Jonathan moved to, by Minute Motion, reject the bid received, and direct staff to revise the Request For Proposals (RFP) to include more detailed financial funding mechanisms, a broader solicitation for the RFP, and return to the City Council for the subsequent approval. Motion was seconded by Kelly and carried by a 5-0 vote (AYES: Jonathan, Kelly, Nestande, Weber, and Harnik; NOES: None). C. REQUEST FOR AWARD OF CONTRACT FOR LANDSCAPE MAINTENANCE AREA NO. 2 TO URBAN HABITAT ENVIRONMENTAL LANDSCAPES IN THE AMOUNT OF $103,201.80 PLUS AN AMOUNT NOT TO EXCEED 20% OF THE CONTRACT FOR EXTRA REPAIR WORK AND SERVICES (CONTRACT NO. C35660, PROJECT NO. 902-18). Mr. Greenwood stated this item and the next two on the agenda are routine landscaping contracts, which are rebid every several years. Councilmember Nestande moved to, by Minute Motion: 1) Award subject contract for Landscape Maintenance Area No. 2 to Urban Habitat Environmental Landscapes, La Quinta, California, for a one-year term in the amount of $103,201.80; 2) include extra repair work and services in an amount not to exceed 20(3/0 of contract amount ($20,640.36); 3) authorize Mayor to execute said contract —funds are available in General Fund Account No. 1104614-4337000 - Repair/Maintenance Medians. Motion was seconded by Weber and carried by a 5-0 vote (AYES: Jonathan, Kelly, Nestande, Weber, and Harnik; NOES: None). D. REQUEST FOR AWARD OF CONTRACT FOR LANDSCAPE MAINTENANCE AREA NO. 4 TO KIRKPATRICK LANDSCAPING SERVICES, INC., IN THE AMOUNT OF $125,196.00 PLUS AN AMOUNT NOT TO EXCEED 20% OF THE CONTRACT FOR EXTRA REPAIR WORK AND SERVICES (CONTRACT NO. C35670, PROJECT NO. 904-18). Councilmember Kelly moved to, by Minute Motion: 1) Award subject contract for Landscape Maintenance Area No. 4 to Kirkpatrick Landscaping Services, Inc., Indio, California, for a one-year term in the amount of $125,196; 2) include extra repair work and services in an amount not to exceed 20% of contract amount ($25,039.20); 3) authorize Mayor to execute said contract — funds are available in General Fund Account No. 1104614-4337000 - Repair/Maintenance Medians. Motion was seconded by Nestande and carried by a 5-0 vote (AYES: Jonathan, Kelly, Nestande, Weber, and Harnik; NOES: None). 23 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING Draft APRIL 13, 2017 E. REQUEST FOR AWARD OF CONTRACT FOR LANDSCAPE MAINTENANCE AREA NO. 7 TO KIRKPATRICK LANDSCAPING SERVICES, INC., IN THE AMOUNT OF $102,387.84 PLUS AN AMOUNT NOT TO EXCEED 20% OF THE CONTRACT FOR EXTRA REPAIR WORK AND SERVICES (CONTRACT NO. C35680, PROJECT NO. 907-18). Councilmember Nestande moved to, by Minute Motion: 1) Award subject contract for Landscape Maintenance Area No. 7 to Kirkpatrick Landscaping Services, Inc., Indio, California, for a one-year term in the amount of $102,387.84; 2) include extra repair work and services in an amount not to exceed 20% of contract amount ($20,477.57); 3) authorize Mayor to execute said contract — funds are available in the respective Landscape and Lighting District Accounts. Motion was seconded by Kelly and carried by a 5-0 vote (AYES: Jonathan, Kelly, Nestande, Weber, and Harnik; NOES: None). F. REQUEST FOR APPROVAL OF PROFESSIONAL SERVICES AGREEMENT WITH ASSOCIATION RESERVES, INC. (ARI), FOR A REPLACEMENT RESERVE STUDY / CAPITAL PLAN (CONTRACT NO. C36030). Senior Management Analyst Veronica Tapia explained that the management of the reserves and appropriate reserve levels are critical aspects of the City's strategic financial plan and Tong -term financial sustainability. One aspect staff needed to consider the replacement reserve study and capital needs as far as infrastructure, recreational facilities, City buildings, including Desert Willow. The City went out for Request for Proposals (RFP) and received two, EMG and Association Reserves, Inc. (ARI). The proposals by appearance were vastly different, so it was important for a panel to review to make the ultimate decision. On the panel were the Directors, City Manager, and Councilmember Weber, and they interviewed the two companies on their product and services. Following the interviews, the panel deliberated and determined that ARI had the best product for the City's needs at this time. Therefore, staff recommended award of contract to ARI, Inc. Councilmember Weber added that it was a great process, stating ARI was clearly the best choice without a doubt. Councilmember Weber moved to, by Minute Motion: 1) Approve subject Professional Services Agreement with Association Reserves, Inc., Ontario, California, for Replacement Reserve Study/Capital Plan Services in an amount not to exceed $118,500; 2) authorize City Manager to execute same; 3) appropriate $118,500 from the Unobligated General Fund Reserve to Account No. 1104159-4309000 for this purpose. Motion was seconded by Nestande and carried by a 5-0 vote (AYES: Jonathan, Kelly, Nestande, Weber, and Harnik; NOES: None). 24 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 13, 2017 Draft G. REQUEST FOR APPROVAL OF CONTRACT RENEWAL WITH D & B VISIONS FOR CONSULTING SERVICES RELATIVE TO THE CITY'S SOLID WASTE AND RECYCLE PROGRAMS (CONTRACT NO. C32594). Ms. Riddle stated this was for the approval of renewing consulting services with D & B Visions. They primarily assist the City in educating business on solid waste and recycling programs, including the education program on the plastic bag ban. They are very instrumental in helping the City in the community with the various programs on recycling and sustainability. Responding to question, she confirmed the $7,000 savings to the eight businesses represented a total for the year for all eight businesses. Mayor Pro Tem Jonathan recalled for the City Council that in the past he has questioned whether this contract brought a return on investment, and the staff report clearly indicates that it does. He thanked staff for anticipating his question, and as stated, there has been savings to City businesses, along with the education component. It looks like the investment is achieving what it was intended to do. Ms. Riddle added that the consultant is very active. Councilmember Kelly moved to, by Minute Motion, authorize: 1) Mayor to enter into an Agreement with D & B Visions, Temecula, California, for Consulting Services Relative to the City's Solid Waste and Recycle Programs; 2) expenditure of funds in an amount not to exceed $65,000 from the Recycle Fund, Account No. 236-4195-454-3090. Motion was seconded by Weber and carried by a 5-0 vote (AYES: Jonathan, Kelly, Nestande, Weber, and Harnik; NOES: None). H. REQUEST FOR APPROVAL OF EXTENSION TO CONTRACT FOR ON -CALL CITY SURVEYOR SERVICES TO MICHAEL BAKER INTERNATIONAL, INC., FOR AN ADDITIONAL NINE (9) MONTHS IN AN AMOUNT NOT TO EXCEED $90,000 (CONTRACT NO. C35071). Mr. Greenwood stated the City surveyor retired last year and the City has been using this staff augmentation service while it recruited for a new surveyor. The recruitment has taken longer than anticipated, so the expiration on the contract triggered the need to have it extended. The good news is that there is a good candidate, and he hopes to fill the position within two months. Responding to question, he said the current contract surveyor would finish his projects out, while the new surveyor takes over the new, and there will be some crossover training as well. He said it would be a matter of months before terminating the current contract. Mayor Pro Tem Jonathan moved to, by Minute Motion: 1) Approve Contract Extension for On -Call City Surveyor Services to Michael Baker International, Inc., Palm Desert, California, for an additional nine (9) months from April 1, 2017, to December 31, 2017, in an amount not to exceed $90,000; 2) authorize the Mayor to execute said 25 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING Draft APRIL 13, 2017 contract. Motion was seconded by Nestande and carried by a 5-0 vote (AYES: Jonathan, Kelly, Nestande, Weber, and Harnik; NOES: None). I. REQUEST FOR AUTHORIZATION TO ACCEPT ELECTRONIC FORMS OF PAYMENT, INCLUDING CREDIT AND DEBIT CARDS FOR PAYMENT OF CITY -IMPOSED FEES, CHARGES, FINES, PERMITS, AND LICENSES, AND AUTHORIZING THE CITY MANAGER TO ESTABLISH POLICIES AND PROCEDURES NECESSARY TO EFFECTUATE THE ACCEPTANCE OF ELECTRONIC FORMS OF PAYMENT. Ms. Moore reported that at this point and time, the City does not accept credit cards at City Hall, but there are ancillary businesses that do. Looking forward with the new IT Master Plan, it will include upgrades in that area and things that people can do online. In anticipation of that, staff is asking authorization to accept credit cards at City Hall and ultimately be on-line where people can renew business licenses, apply for permits, etc. Mayor Pro Tem Jonathan said he would commemorate this day as the day the City of Palm Desert officially entered the 21st Century. Mayor Harnik recalled discussing this and not wanting to put a service fee for the use of credit cards, but she didn't know why it couldn't just be added now, because she didn't think people would object to paying a small service fee of 2% to be able to pay it over the phone or on the computer, instead of taking time out of their day to drive to City Hall to take care of it. Ms. Moore noted the City Manager actually had some input on this issue, but it was the cost of doing business, adding that in California, retail establishments can't add that fee, but government entities and possibly school districts could. Staff believes it will be a beneficial service for people in that they will be able to pay online, but staff doesn't know, in this first year, what it will generate. However, it will provide the ability once a year look at this issue again. Mayor Pro Tem Jonathan stated staff could probably negotiate the fee down from 2% to 1.25%, but if the City incurs the fee, it's a lot lower than the cost for staff time to process a check, or God forbid cash. From his perspective, even if the City absorbs the fee, it's actually saving money over the current practice. Ms. Aylaian explained that the objective was to kind of walk the fine line between providing convenience and current financial damage. If the City were to accept credit cards for all transactions without charging a fee, then it will look at some fees such as Transient Occupancy Tax (T.O.T.) Or assessment district fees that are larger and paid once a month or once a year, where the City would absorb a large hit. At the same time, you want 26 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING Draft APRIL 13, 2017 people to process their transaction or routine business regularly without cost. She said that when she thinks about it, the only place that she can't use her credit card without incurring a fee is with the Internal Revenue Service (IRS), adding it's the one institution she didn't like doing business with because they don't accept credit cards without imposing a large fee, and she didn't want to emulate them, but staff is open to suggestions. Mayor Harnik said they were all good points and everyone is happy to get this done. She commented that former Mayor/Councilman Robert A. Spiegel will be giddy with delight over this. Councilmember Weber agreed that any business paying a fee to any government agency is accustomed to paying a 2% fee, stating the Board of Equalization came to mind. She wasn't opposed to charging a fee, because most businesses are accustomed to doing so, it's one of the privileges of not having to drive somewhere to pay it. She asked what would an individual be paying online. Ms. Aylaian replied that individuals would be paying for a business license, home occupancy permit, temporary use permit, etc. Ms. Moore explained staff looked at several things, stating this wasn't taken lightly. They even considered a $250 threshold, but with the current system, it would be difficult to impose one. She said staff looked at different things and there wasn't a simple solution, but then they looked at the savings of staff time, as mentioned by Mayor Pro Tem Jonathan, which may offset the cost of those fees. Staff has decided to look at this every year and monitor how many transaction there will be. With the City's new system starting in July, it may have a slow start, but staff will conduct an annual review of it as appropriate. Mayor Pro Tem Jonathan added that as staff considers the imposition of the fee, there is a matter of public perception, because when someone uses their credit card to pay the City for something, its like adding salt to the wound when it charges one to pay them, which is why the IRS has such a low approval rating. Mayor Harnik said that was a good point, but there are very few things she paid online with a credit card where there wasn't a fee for that convenience, but she didn't mind it. However, the City will see in a year the results on which to base a good decision on. Councilmember Weber moved to: 1) Waive further reading and adopt Resolution No. 2017 - 35, authorizing the acceptance of electronic forms of payment, including credit and debit cards for the payment of City -imposed fees, charges, fines, permits, and licenses; 2) by Minute Motion, authorize: a) City Manager to establish policies and 27 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING Draft APRIL 13, 2017 procedures necessary to effectuate the acceptance of electronic forms of payment; b) City Manager or Director of Finance to execute agreements with banks and/or third parties for electronic payment processing that may include fees for such processing. Motion was seconded by Nestande and carried by a 5-0 vote (AYES: Jonathan, Kelly, Nestande, Weber, and Harnik; NOES: None). XVI. CONTINUED BUSINESS A. CONSIDERATION OF THE APPLICATION FOR REIMBURSEMENT OF ART IN PUBLIC PLACES FEE IN THE AMOUNT OF $17,500 FOR TH-225 CUPIDS ON DOME BY JACOB DAGAN FOR THE VENUS DE FIDO BUILDING LOCATED AT 73600 ALESSANDRO DRIVE, PALM DESERT (Lindi BiggiNenus de Fido, Applicant) (Continued from the meeting of March 23, 2017). Ms. Aylaian reported that two days ago, the Applicant contacted the City Clerk and asked that this item be removed from the Agenda. Therefore, staff is recommending that it be continued to a date uncertain. Mayor Harnik recused herself from this item and left the Council Chamber. Ms. Aylaian added that it was standard practice that when an applicant or appellant requests a continuation, staff grants it in order to provide them every opportunity to schedule the item at a time more convenient for them. In this case, the Applicant didn't indicate a preferential date in the near future or distant future. The City Clerk did provide the Applicant with information about upcoming meetings where the item can be calendared, but the City has not had any response beyond that. Councilmember Nestande stated the Applicant communicated to her that she does not want this case continued. Ms. Aylaian added that Council can decide whether it wants to hear the staff report, because there is some additional information to be provided. Councilmember Nestande reiterated that Ms. Biggi communicated with her via email that she did not want her case continued, and she wasn't advocating to the Council one way or the other. Responding to question, she said Ms. Biggi was unhappy with the decision made two weeks ago. She asked Ms. Biggi to reconsider, but she basically said no. Councilmember Kelly stated the original materials for this evening, included an examination of the materials the Applicant brought to the last meeting. It also provides an analysis where the Council could find substantial compliance with the applicable requirements. Her personal preference would be to take up the issue on its merits and grant the appeal so as to 28 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING Draft APRIL 13, 2017 achieve closure. There seems to be difference of opinion as to the status of the case, and she was sure the Applicant would not object to the appeal being granted, but she wouldn't want to take up the case and end up denying it. Councilmember Nestande stated she voted to give the Applicant a refund, so she would be voting the same way. Councilmember Weber said it was kind of awkward to discuss something when the Applicant has said she didn't care any more and wouldn't be here. It's also not appropriate that if the AIPP Commission was following the instructions of the City Council and very clearly saying to the Applicant certain documents are needed, and to return for a second time for a second chance, and the documents submitted were still not completed. Then again at the last City Council meeting, Council offered to assist her in completing the paperwork. If Council ignores its instructions to the Commission by waiving this appeal, it would be sending out the wrong message that City guidelines can be ignored, which was not appropriate. She believes Council has bent over backwards for the Applicant, and is considering doing so by continuing the item. She said the right thing to do is to continue to give her every opportunity, because there isn't a problem with the artwork and no one has objected to it. She said this Council was asking the Applicant to help the Council by providing the proper paperwork so it can authorize a legitimate refund. Mayor Pro Tem Jonathan said that Councilmember Weber's comment resonated with him. He asked Councilmember Kelly what would be the disadvantage of following staffs recommendation to continue to a date uncertain. Councilmember Kelly replied that there wouldn't be closure, and because, according to the analysis received, sufficient information was submitted at the last meeting to support the granting of the appeal. She personally felt it would be to the City's benefit to accomplish that closure in favor of the appeal. Mayor Pro Tem Jonathan suggested that a compromise would be to continue to a date certain, but it may come to the Council as a continued item once again. Ms. Aylaian was hesitant to continue the appeal to a specific date only to find out that the Applicant wouldn't be able to attend. Mayor Pro Tem Jonathan wondered if a limit could be placed on how long the matter is continued, because he was trying to address Councilmember Kelly's concern of having the matter open. 29 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING Draft APRIL 13, 2017 Councilmember Kelly responded the suggestion offered doesn't meet her concern, because the Council has an analysis which states the Applicant really doesn't need to submit anything further and what it has is sufficient to establish substantial compliance. Councilmember Weber said she's not reading it the same way Councilmember Kelly was reading it, because there is a section that states, "...considering the aesthetic quality and harmony ..." that the Council states it agrees that the artwork complies. However, this was not about the artwork, it's about the paperwork, and the City has offered to help the Applicant get it done and completed correctly, which was not a big deal. She reiterated that no one disagreed that the artwork is wonderful, but this was not about the artwork. Councilmember Kelly said she was looking at page two of the report that was in Council's packet that itemizes the issues that were previously unaddressed and explains how each of those can be found to have been substantially satisfied by the submission at the last meeting. It's the basis upon which she made her own conclusion, and it would be preferable for all concerned to reach a definitive outcome in the Applicants favor. Ms. Aylaian added that if Council was not going to continue the item, she could provide a staff report. Mayor Pro Tem Jonathan said he was hearing the following two things, first, it appears that staff has concluded the application is now in substantial compliance, but on the other hand, Councilmember Nestande has indicated that the Applicant apparently wishes to withdraw her appeal. He wondered if it would make more sense to continue the matter to give staff an opportunity to clarify from the Applicant if she still wishes to Appeal the findings of the AIPP Commission, which is what this is about. He said if the Applicant wants to withdraw her appeal than this matter is done, and if not, Council can then hear the staff report regarding whether there is now substantial compliance. And to Councilmember Kelly's point, if that is the finding and the Applicant still wishes to appeal, then Council can consider the refunding of the fee. He asked if it was acceptable to continue the matter and direct staff to inquire from the Applicant if she wished to withdraw her Appeal of the AIPP Commission. Councilmember Nestande said she couldn't read the Applicant's mind, so she didn't want to be on record for saying or taking responsibility for not continuing with the Appeal, instead she would direct staff to confirm the Applicant's intent. 30 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 13, 2017 Draft Ms. Aylaian offered that after the last meeting, staff attempted on several occasions to communicate with the Applicant, but she has indicated she would not like to discuss it further and asked staff not to contact her. Mayor Pro Tem Jonathan stated that if that was the case, then the City has an Applicant who has indicated, essentially, to withdraw the Appeal, which he was willing to accept. Mr. Hargreaves suggested the City get something in writing confirming that the Applicant is withdrawing the appeal. He said the City could provide notice that unless the Applicant agrees to meet or allow staff to go forward in her absence, within 30 days, it will be construed as a withdrawal of the appeal. He said the City could pursue something like that so that this matter is not left hanging. Mayor Pro Tem Jonathan said that would work for him, and Councilmember Weber commented that it would bring closure to the matter. Councilmember Kelly moved to, by Minute Motion, continue the item to the meeting of May 25, 2017, to allow staff time to create a clear record of whether the Appellant is withdrawing the Appeal. Motion was seconded by Weber. Councilmember Nestande commented she wasn't sure how to vote, because she wants the Applicant to be refunded the AIPP Fee, stating she didn't want to vote in any way that would prohibit that outcome. Mayor Pro Tem Jonathan said he wouldn't want to influence her thinking, but his interpretation of the motion would not preclude the refunding of the fee, because Council was giving this matter another 30 days for staff to get clarification to their satisfaction on whether the Applicant wishes to continue the appeal. The City Council will then address this matter at the second meeting in May and make a final decision based on what staff has determined with regard to the Applicant's wishes. Councilmember Nestande thanked him for the clarification. Mayor Pro Tem Jonathan called for the vote and the motion carried by a 4-0 vote (AYES: Kelly, Nestande, Weber, and Jonathan; NOES: None; ABSENT: Harnik). 31 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 13, 2017 XVII. OLD BUSINESS Draft A. REQUEST FOR APPROVAL OF THE MANAGEMENT AGREEMENT BETWEEN THE CITY OF PALM DESERT, KEMPER SPORTS MANAGEMENT, INC., AND THE PALM DESERT RECREATIONAL FACILITIES CORPORATION TO OPERATE AND MANAGE THE DESERT WILLOW GOLF RESORT; AND FOR APPROVAL OF AN INCREASE IN THE LOAN AMOUNT FROM THE CITY TO DESERT WILLOW. Mr. Acosta stated that before the City Council is the recommendation to approve the Agreement that has been negotiated with Kemper Sports Management. He recalled for the Council that at the December 8 meeting, staff was authorized to proceed with support for the Request for Proposals/Request for Qualifications (RFP/RFQ) Committee's recommendation to negotiate with Kemper Sports Management. He said he would go over some highlights and explain what was changed and what was new. As Council may know, this was the first time in over 20 years that this exercise was conducted, adding that Legal Counsel Bill Strausz and himself were the only ones who had recollection of the original Agreement with Kemper. He acknowledged the efforts by Legal Counsel Bill Strausz, Director of Finance Janet Moore, Risk Manager Stephen Aryan, Senior Financial Analyst Anthony Hernandez, and the folks at Kemper, especially Executive Vice President for Kemper Sport Jim Stegall, who was in the audience this evening, and General Manager of Desert Willow Derek White, in accomplishing a fair and reasonable Agreement. The proposed Agreement will include updated language to the insurance, stating that as late as this morning, the language was refined and will be made part of the final Agreement before signature. A key element to note is that over the history of Desert Willow, the City's IT staff has been providing support for computer issues, which will no longer be the case; it will free up IT staff to work on City Hall issues. The other item is somewhat related, in that the Management Fee was discounted from the previous years from $300,000 to $250,000 a year, which was tied into a practice it was employing for quite some time with respect to the Operating Account. Due to recent Internal Revenue Service (IRS) tax laws dealing with permitted businesses that had management contracts such as the one at Desert Willow, it's not a practice it can continue. Therefore, what was created was an account, which is part of the recommendation, which is to provide $2 million as a separate account to offset some of the operating challenges that accrue with running a golf course operation in the desert. He pointed out the City starts its fiscal year in July, and it's very seasonal out here in the desert, that most operations don't start to generate revenue until January. In fairness to Kemper Sports Management, the City agreed to set such an account for them to handle as an operational account. Kemper will still be required to submit their statements for staff review prior to payment, stating this was a significant change in what was negotiated. Staff managed to retain the 20-mile radius restriction, stating Kemper has agreed to not seek the operations of competing properties within a 20-mile radius, which was an important factor in the Committee's recommendation. The rest he will leave it to what's in the staff report. He 32 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 13, 2017 Draft thanked the City Council for the opportunity to be a part of this process, stating he wished the Agreement had been for a longer period, but the City issued the RFP for a three-year term with two 1-year extensions. Mayor Pro Tem Jonathan thanked Mr. Acosta for his hard work on this Agreement and his long history with Desert Willow. He also thanked him for all he's done for the City. With regard to the $2 million Operating Account, he was glad to see it included in this contract, because the funds are currently in the General Reserve earning .2 of 1%, which was virtually nothing, and by loaning the funds to the Desert Willow account, the City is saving $50,000, making that a 2.5% a year versus zero, which was a smart move. He registered his satisfaction with the process and happy the City went through it. Right from the start, the City indicated how highly it valued Kemper Sport and what great care they take of the City's precious resource of Desert Willow. He added that Kemper set the bar and they were the ones to beat, but it was important to go through the process for transparency and opportunity for anyone else interested. He wasn't at all surprised with the outcome, stating he looked forward to the continued collaboration and success with Kemper. Councilmember Nestande inquired about the contract with Food & Beverage, questioning if it was based on net or gross profit, because she understood there were some years where it lost money, yet the bonuses still calculated on it. Ms. Moore replied it was based on gross profit, because net profit couldn't be used. She said there are a few things that are removed from that calculation, but it does take into consideration just the sales at Desert Willow and not whether or not that particular month provided a profit. Councilmember Nestande asked if that was a concern in terms of the liability the City takes on if it's paying a bonus based upon gross profit of food and beverage versus net profit. Ms. Moore answered no, stating staff looked at that issue and considered what the percentage should be as well as whether it would be on gross or net, which is how they off set that and placed the maximum fee there. It was easier to calculate the fee on gross instead of net, because of the fact that they looked at it from the perspective that food and beverage operations are for the 12-month period. Staff was consistent with what it had done in the past with this, and when staff looked at it from any other way, they were looking for the amount of money, but also encouraging Kemper to increase gross sales. Whether or not the expenses that would offset those gross sales would net the Desert Willow Golf Resort more, they get a percentage of that, but it is up to the maximum amount. The liability is that there is a maximum amount for the percentage management fee, in addition to their set fee, and that hasn't changed. She believed it was at $6.5 million. Mayor Pro Tem Jonathan added he had the same concerns, because to him, incentive fees should be based on profits so that everyone is on the same page, 33 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING Draft APRIL 13, 2017 and not just trying to raise the top line because you can sell for very low prices and increase gross revenues. However, he was edified in that there are IRS regulations that if the payment is based on the net, then the City is transferring the risk of that operation to the vendor, and due to IRS regulations, the City is prohibited from doing that. While it might have made sense, it was not an option for the City. Mayor Harnik commented that she was glad to see the IT issue be addressed. In this regard, she understood that staff knows what it has to monitor. Further, there are analytics the City needs to know going forward as far as usage so it can make better decisions with its programs at Desert Willow. She looked forward to receiving such statistics in reports presented at the Audit, Investment & Finance Committee meetings to see how they can be maintained or improved upon to do the best job possible there for residents and all patrons. Mayor Pro Tem Jonathan moved to: 1) by Minute Motion, approve the Management Agreement, substantially as to form, between City of Palm Desert, Kemper Sports Management, Inc., and Palm Desert Recreational Facilities Corporation to operate and manage Desert Willow Golf Resort (Contract No. C35730); 2) waive further reading and adopt Resolution No. 2017 - 36, authorizing an increase to the loan to Desert Willow from the City up to an additional $2,000,000 from the Unobligated General Fund Reserves; 3) by Minute Motion, authorize: a) City Manager and legal counsel to finalize the Agreement; b) Mayor to execute the Agreement and the City Manager and Director of Finance to take actions necessary to effectuate the actions taken herewith. Motion was seconded by Kelly and carried by a 5-0 vote (AYES: Jonathan, Kelly, Nestande, Weber, and Harnik; NOES: None). XVIII. PUBLIC HEARINGS A. REQUEST FOR AUTHORIZATION TO VACATE A PORTION OF A SHORT, DEAD-END STREET KNOWN AS ANGLEWOOD DRIVE LOCATED IN SOUTH PALM DESERT (Ken Blair and Doris J. King, Applicants). Mr. Greenwood stated Anglewood Drive is approximately a 125-foot long street in south Palm Desert that doesn't lead anywhere. It was built when the area was in the County foreseeing future subdivision further to the south, but that division didn't come to be as originally envisioned. The City has been maintaining this useless piece of road since the City was formed in 1973. Recently, the City was approached by the adjoining residents with the idea of vacating the right-of-way to them so that they could incorporate it into their properties. Seeing that there was no public benefit to continuing with this being a public street, Council approved the initiation of a public hearing a couple of weeks ago, which is what this is today, a public hearing for that item to be considered. Since that time, part of the process for establishing this public hearing is to post the facility and notify the neighbors of the impending action. Staff has heard from a number of residents in the area who are unanimously concerned about the vacation. This morning he spoke with one of the applicants and they are aware of the concerns, but they do 34 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING Draft APRIL 13, 2017 wish to proceed. Should there come to be any kind of issue that couldn't be resolved this evening, they would ask for a continuance so that the neighbors can work together to try to resolve this. He noted one of the applicants was present this evening, along with others who wished to speak on the matter. Mayor Pro Tem Jonathan asked what exactly was a vacation and who gets the property. Mr. Greenwood explained that because the property was dedicated to the County at no fee, it was essentially a gift to County, which later transferred to the City when it incorporated. Therefore, in order to vacate it, it goes back to the property that it came from, which are the two adjoining parcels. Further responding, he said the City is specifically prohibited from selling the property because it was gifted to the City. Mayor Harnik declared the public hearing open and invited public testimony FAVORING or OPPOSING this matter. Mayor Harnik noted the City Council did receive several letters today, stating she hoped everyone had the opportunity to review them, because it's difficult to read them when you get them at the last minute. MS. DONA DEBARDI, Tamarisk Street, expressed her objection to the vacation, because this 125-foot-long property has become a parking lot, particularly on one of the Applicant's who applied to acquire it. They have cars, truck, and trucks with trailer sitting there for weeks, which has been reported to Code Compliance. One of them was moved yesterday onto the guy's front yard. She said if this was a vacant lot and somebody wanted to put a yard in, which is what she believes these owners want to do. If that is the case, then a variance or plans would be required, rather than letting it become blight in the neighborhood, which will hurt property values for everybody else in the neighborhood. She said the best thing to do, if the City wants to entertain this idea, is to get a proposal with plans and something that ensures it won't continue to be the parking lot that it is today. MR. CHARLES ASHBY, Tamarisk Street, thanked the City Clerk for distributing his email along with the three photographs. He said the pictures demonstrate the problem that Ms. DeBardi just mentioned, in terms of contractors using the area as a parking lot. His concern is that the owners of the two lots are contractors and they could compound the problem of parking, because they can easily move their materials and commercial vehicles into this area. Additionally, there is a sidewalk that goes all the way around the Angelwood Drive, and his concerns goes back to having plans for what they plan to do. He said the City is giving these people a clean slate to do anything they want, which he objects, stating there are probably City utilities under the street, although no one has actually done a mapping of 35 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 13, 2017 Draft what utilities are there. Therefore, he strongly recommended this item be tabled and request plans from the property owners to have Public Works review them. Responding to question, he explained there is a full sidewalk on Tamarisk Street that connects to Angelwood Drive into this cul-de-sac. MR. CLARK HENRY HAHNE stated he was one of the Applicants; he is on the east side of the property. He said there are a couple of misconceptions in that the sidewalk doesn't go all the way around and the utilities have been marked out. He shared that his company has been maintaining the landscape at the end of the property, and he has no intentions of parking vehicles there. In fact he would be in favor of a variance that prohibits it there, because he had the same concerns with the neighbors on the other side. He apologized for not being more prepared with photographs, but he has been maintaining the property anyway, and if the sidewalk is a concern, he would be happy to remove it because he had the equipment to do it. However, he has no intentions of parking there and if the City wants plans, he can submit them. He's been working with a landscape architect already, but he didn't know where the dedication started and ended. Responding to question, he confirmed his intention is to extend his yard and possibly add a master bedroom, and it would no longer be a street. MS. PATRICIA ASHBY, Tamarisk Street, stated Mr. Hahne was being very honest and he has good intentions, but she would like to see some plans, because what one owner is planning on one side, the other Applicant may not. As of today, the other side is being used as a construction site, and when he's not using that strip of property, he parks his vehicle on the grass in front of his house. She said promises are wonderful, and good intentions are great, but since the City is altering something that will affect the neighbors, it should ask for plans. She added that she and the lady that had to leave the meeting to go home, have just completed their landscaping to keep property values up, and now they are going to be looking at this road. However, when she did her landscaping, she had to submit plans to the City. She reiterated that plans should be requested instead of going on good intentions. Also, it's unknown whether there are gas lines underneath that property. Mayor Harnik stated the property has been mapped out, so the City did know what was or wasn't underneath. She asked Code Compliance if people were allowed to park their cars on the lawn. Code Compliance Officer Johnny Terfehr said it would be a code violation, and it would also be a violation to park commercial vehicles or trailers. He said they have responded, and they can get vehicles out of there. Further responding, he explained that a detached trailer couldn't be parked on the street at all, and if attached to a vehicle, it's allowed up to 24 hours, but after that time has elapsed, they have to get a permit. 36 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING Draft APRIL 13, 2017 Mayor Pro Tem Jonathan asked if City Codes would still apply once the street is vacated. Mr. Terfehr explained the only way a utility trailer can be parked there is by a permit, and it would have to go through a process with the Planning Department to ensure it is screened from neighboring properties. Mayor Harnik pointed out the City Council received an email from Mr. Blair where he states his intentions are to install a solid gate or wall across the front, including landscaping, which would require plans and approval by the City. MS. PATTY REED, Tamarisk Street, stated her property is directly across from Angelwood, and her concern is that this matter came up with so little prior knowledge, in that they didn't realize an application had been submitted to the City until the signs went up across the street announcing this meeting. They were not notified when the Resolution was first presented to the Council. She said she hoped the City Council received the email she sent on Monday. Mayor Harnik asked if the neighborhood was notified. MS. REED replied that nobody was notified that Council would be voting or deciding on this issue at this meeting until the signs were posted. Mr. Greenwood agreed, stating the notice that was posted was for this meeting, which is the Streets & Highways Code process. Mayor Harnik noted the City Attorney indicated it was noticed correctly. MS. REED stated that Mayor Harnik had mentioned Council likes to see neighbors work things out, but the lack of notice made it difficult to do so. She has very good relationships with the two Applicants, stating they are honorable people, but if the property is vacated without plans being submitted and financing checked into, the best plans in the world may not come to fruition. She said they could be left with a view of a deteriorated black top, adding there has been instances with the water main leaking on Tamarisk Street, and if that were to happen on Angelwood and the pavement is deteriorated, what then. She and her husband are not opposed to the vacation, but they would like to see plans in place, including financing to ensure they will follow through before it's approved by the City. Additionally, she understands Code Compliance will come out and enforce its codes, but she would hate to create an adversarial relationship, because no one will want to report it. Mayor Harnik pointed out that when a resident reports something to Code, 37 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING Draft APRIL 13, 2017 the identity doesn't have to be given out, so she didn't have to worry about that aspect. With no further public testimony offered, Mayor Harnik declared the public hearing closed. Councilmember Kelly asked if it was possible to make the vacation subject to some defined conditions, and if so, would the item be continued to afford the opportunity to discuss conditions with the affected property owners. Mr. Hargreaves said it's been done before, but the City has ordinances and property maintenance standards that will probably address most of the concerns. He said Council may want to check with Code to make sure they have what they want, but it wouldn't hurt to give people the time to talk to each other and come up with proposals, which can then be wrapped into a Resolution so that everyone is on the same page going forward. Mayor Pro Tem Jonathan questioned what would happen if there are plans or improvements that are acceptable to everybody but are not followed through. Can the property deteriorate to an unacceptable level, and if the City vacates the property, it no longer has responsibility or authority to maintain. Mr. Greenwood replied that at that point it would fall under the City's Property Maintenance Standards, which are very strict. Also, if there are plans submitted, the Planning Department will be an integral part of the approval process that includes wall setbacks, wall locations, etc. Responding to question, he confirmed the City has the capacity to enforce the standards on private property to ensure the landscape doesn't get overgrown or for the asphalt to deteriorate. However, that was his opinion, stating he would defer to Code Compliance Supervisor to speak to the matter. Code Compliance Supervisor Pedro Rodriguez stated that if the driveway becomes deteriorated, the City has ordinances in place to address it and/or ask the property owners to restore the driveway. However, staff prefers to see landscape and/or improvements, but the Planning Department will play a big part with regard to the setbacks and aesthetics, stating it may even go through the Architectural Review Commission (ARC) to approve the aesthetics of the project. He believed the City has mechanisms in place or it can put them in place, for Code to enforce. If nothing is done, Code can still address the upkeep of the vacant street. Councilmember Weber said she understood that once the City vacates the property, it becomes the responsibility of the property owner to pay the taxes to Riverside County and maintain the property. At that point, Code Compliance does what it normally does with properties that are not 38 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING Draft APRIL 13, 2017 maintained. This evening the City was vacating the property and deeding those two pieces of property to the two Applicants. Mr. Greenwood agreed, stating that in the short term, the property will become a very short private street. In the Tong -term, both property owners have indicated they intend to make improvements, and those improvements would start with presenting plans to the City and staff will work through that process. Mayor Harnik noted the City has high standards with landscaping and aesthetics in Palm Desert. However, she didn't think Council could require proof of financing, which was certainly going over the City's purview. Ms. Aylaian asked the City Attorney if the City can require that the property owner post a bond to ensure that the work gets done. Mayor Harnik said it felt like the City was overstepping its authority, especially when both property owners have indicated they want to make improvements, which requires City approval, and all the utilities have been mapped. Additionally, the property owners have indicated they want privacy as well. Councilmember Kelly stated the source of the authority is that this is currently the City's property, and to receive a chunk of property for free, is a pretty big deal. So if there are potential ramifications for neighbors, then the City would want to protect the interest of the neighbors by attaching some conditions to the free grant of property, which did not strike her as overstretching. She would prefer to have the item continued to give staff the opportunity to facilitate a conversation so that the City can vacate. There can be a high level of assurance on everyone's part for a happy outcome. Mayor Harnik said she was not opposed to continuing the item, however, the City already has strong guidelines and standards in the ordinances and Code Compliance enforces them all the time. It wasn't like the City was giving something away and asking them to do whatever they want, because they will be required to maintain the property standards and pay the taxes to Riverside County. Mayor Pro Tem Jonathan concurred, stating he was assured that the City was not simply giving land away for free, because the original property granted/deeded it over to the County, who then deeded it over to the City, and now the City is completing the circle by giving it back to the property owner. It appears that the property owners have certain intentions for that street, and if they move forward, it will go through the approval process with the City. If they don't, he received assurances from Code Compliance that the vacated street will not fall into disrepair. He said the concerns of the 39 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING Draft APRIL 13, 2017 neighbors and residents are and will be addressed, adding that they were all valid concerns. In an attempt to alleviate the concerns about the vehicles currently on the street, Mr. Rodriguez reported that staff contacted the vehicle owner and they have come to City Hall to obtain a permit, which is valid until April 31. Once the permit expires, then the vehicles will have to be moved and Code will address that issue at that time. He said the vehicles are not over the weight, so if the property owner decides they want to enclose the area and park a vehicle there, the vehicle cannot exceed the weight limit of 10,000 pounds in a residential area. The vehicle the City Council has a picture of is a Ford pickup truck, which doesn't exceed the weight limit. He said the property owner, just like any other resident, has the right to park a trailer there, but with a permit, and there is a process through Planning and ARC to make sure its in compliance and not visible from adjoining properties. He said Code Compliance has mechanisms in place to address the vehicles even if they are relocated to the front yard. Mayor Harnik said she felt assured by staff that it won't allow blight to exist, and she understood the thoughts of the neighbors that the property owners are in the construction industry. However, they are probably hard working people who sometimes have their vehicles out there, but it certainly didn't mean they were going to have a blighted lot. She was prepared to move forward with the assurance that the public hearing was noticed appropriately. Mayor Pro Tem Jonathan moved to waive further reading and adopt Resolution No. 2017 - 37, vacating a portion of a short, dead-end street known as Anglewood Drive located in south Palm Desert. Motion was seconded by Weber and carried by a 4-1 vote (AYES: Jonathan, Nestande, Weber, and Harnik; NOES: Kelly). With City Council concurrence, Mayor Harnik called for a recess of the meeting at 7:01 p.m. The meeting was reconvened at 7:06 p.m. B. REQUEST FOR APPROVAL OF AN ORDINANCE AMENDMENT TO SECTION 25.34.030 - ACCESSORY DWELLING UNITS - AND TO SECTION 25.99.020 - DEFINITIONS - OF THE ZONING ORDINANCE TO COMPLY WITH RECENTLY ENACTED STATE LEGISLATION RELATED TO ACCESSORY DWELLING UNITS, Case No. ZOA 17-018 (City of Palm Desert, Applicant). Principal Planner Eric Ceja stated the State legislator is considering numerous bills regarding housing and development in the State of California. Two of them have recently passed and became effective January 1, dealing with Accessory Dwelling Units. The Ordinance Amendment before the City Council is to make the City's Ordinance consistent with the State's. The City currently has a Second Dwelling Units Ordinance, which has been changed 40 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING Draft APRIL 13, 2017 to "Accessory" to comply with State law. Staff also included a few new standards, one is the maximum dwelling size where the Code currently allows for 35% and it will go up to 50%, and that parking will still be provided with the exceptions allowed under the State law. The proposed Ordinance complies with those provision, and the Planning Commission reviewed this Ordinance last month and recommended approval. Responding to question, he confirmed the additional Accessory Dwelling Unit would still be subject to maximum lot coverage, setbacks, height limitation, etc. Mayor Harnik declared the public hearing open and invited testimony in FAVOR or in OPPOSITION to this matter. With no testimony offered, she declared the public hearing closed. Councilmember Kelly moved to waive further reading and pass Ordinance No. 1321 to second reading, approving Zoning Ordinance Amendment 17-018 to amend Section 25.34.030 - Accessory Dwelling Units - and to Section 25.99.020 - Definitions - of the Zoning Ordinance to comply with recently enacted State Legislation related to accessory dwelling units. Motion was seconded by Nestande and carried by a 5-0 vote (AYES: Jonathan, Kelly, Nestande, Weber, and Harnik; NOES: None). C. REQUEST FOR APPROVAL OF ZONING ORDINANCE AMENDMENT TO PALM DESERT MUNICIPAL CODE SECTION 25.16.040(H) - SPECIFIC USE STANDARDS - FOR COMMERCIAL AND INDUSTRIAL DISTRICTS TO ALLOW DRIVE -THROUGH RESTAURANTS ON ARTERIAL STREETS WITH A FREEWAY INTERCHANGE (OR PLANNED INTERCHANGE), Case No. ZOA 17-028 (Lumar Devco, LLC, Applicant). Assistant Planner Heather Buck stated the proposed Zoning Ordinance Amendment is to consider the locations where drive -through restaurants may be permitted. When the City embarked on the General Plan Update, it adopted the policy for Auto -oriented Uses, and it may consider uses that serve occupants of vehicles such as drive-throughs and discourages uses that serve vehicles in places that are clearly automobile oriented ensuring it doesn't disrupt pedestrian flow, etc. The history on this item, in February staff received an application for a drive -through restaurant at the former Casey's Restaurant site. Currently, the City's Ordinance only allows drive -through restaurants in Freeway Commercial Overlay Zones (FCOZ) subject to a Conditional Use Permit (CUP). Staff is preparing to update the Zoning Code and intended to wrap this into that discussion, but the City received an application from the Applicant that is working on the Casey Restaurant site to see if they can move forward with this. The Planning Commission recommended approval of the ZOA as amended and as presented in the staff report. She displayed a map of the current FCOZ shown in blue, stating those are the only areas where drive -through restaurants are permitted. Staff's goals in developing this ZOA are to keep drive -through restaurants out of the City's center and resort areas and locate them in areas that are clearly vehicle oriented and to incorporate some additional development standards. The existing FCOZ are located adjacent to Interstate-10 Freeway, 41 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING Draft APRIL 13, 2017 and they are on the following streets: Monterey Avenue, Cook Street, and Washington Street. The amendment would expand on this concept and basically drag the boundary down south. She said Commercial, Industrial, and Freeway Commercial Overlay Zone properties are the only ones this Amendment would potentially apply to. If approved, the Applicants would still be required to return to the Planning Commission for a CUP approval of any proposed drive -through so it can consider items such as pedestrian use, impacts to adjacent development, traffic, and environmental concerns. Figure 25.10-2 shows the extent of the arterial streets proposed. It was originally proposed as a 11/2 mile on Monterey, Portola, and Washington, and the Planning Commission requested further amendment to end them at arterials that are adjacent to the extent of the properties that could be impacted. For example, on Washington Street there are no commercial or industrial properties south of that line that could be impacted. The potentially affected parcels that may allow a drive - through restaurant are identified in a shaded color on the map, which will include the FCOZ and the potential commercial and industrial properties. She displayed a couple of maps outlining the areas where a drive -through could be permitted, the boundaries, and potential impacted areas. Responding to question, she said the only impacted areas on Washington Street would be the Albertson's Shopping Center and the property where the former Casey's Restaurant was located. She reiterated that if this Amendment is approved, it will expand on the original concept that is currently in the Ordinance that drive-throughs are on vehicular oriented streets located generally close to the Freeway Interchanges where there may be more of that type of traffic only on industrial and commercial properties. She went on to say that any project, including the current Applicant that submitted for this Zoning Ordinance request, would still have to go through the standard process for a CUP, which is done through the Architectural Review Commission (ARC) and Planning Commission. Mayor Pro Tem Jonathan inquired as to why staff would not extend the boundary on Cook Street. Ms. Buck explained that when staff originally prepared the staff report, it was included, because they started with 11 miles as it encompassed all of the commercial and industrial properties, and they are closed to the freeway. However, during discussions with the Planning Commission, there was concern that so much time was spent on the General Plan Update in developing this concept and idea for the University neighborhood to being pedestrian friendly. In the end, there was only a small parcel that could potentially be impacted on Cook Street that it didn't feel it was something worth fighting for. Mayor Pro Tem Jonathan said if the boundary was extended to Frank Sinatra, he didn't believe it would encroach on pedestrian encouragement. However, the areas shaded for potential drive-throughs, if an application is submitted, it would still be subject to a CUP, enabling staff to control the quantity, quality, etc. Ms. Buck agreed, including the speakers, location of the vehicle view, etc. 42 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING Draft APRIL 13, 2017 Mayor Harnik declared the public hearing open and invited testimony in FAVOR or in OPPOSITION to this matter. With no testimony offered, she declared the public hearing closed. Mayor Pro Tem Jonathan invited his colleagues to share their thoughts on extending the boundary on Cook Street. Mayor Harnik recalled for the Council that the City worked long and hard on the Strategic Plan, and many on the dais worked on it as well, including adopting the Plan. The Plan made emphasis to pedestrian oriented communities, walkability, sustainability, and clean air in general. Additionally, she just came back from the California Council of Governments and they discussed that when there are high rates of death related to respiratory issues, one of the first things looked at, is if it happened near or adjacent to a drive -through. This City has worked hard to create a walkable community, a college and university village, including a road diet, to now be considering drive-throughs in areas where it will create fumes and erratic traffic, which was not the intent of the Strategic Plan or General Plan Update that took more than a year to adopt. So when looking at Policy 2.10 Auto -oriented Uses, she could show the Council about 30 to 50 points in the General Plan that talks about creating communities that are pedestrian friendly. Therefore, she wouldn't support the Cook Street amendment. Additionally, she understood the change on Monterey and Portola, but not where the City's Carlos Ortega Villas (COV) is located, because everyone worked hard to make it nearly a Net -Zero Community to increase the quality of life for that senior community. The City is currently attempting to get a Helen Putman Award because the place and concept are so great. She added the City has so much pride in that project that it was named after former City Manager Carlos Ortega who was a well revered man in the City of Palm Desert. She said there are other areas such as across the street where there are drive throughs. She was adamant about preserving the community feel for the Carlos Ortega Villas as intended. Another thing, the policy states drive throughs are for vehicles oriented uses; therefore, she couldn't support a drive -through restaurant next to the senior community where the City tried to create a high quality of life environment and safe pedestrian -oriented community. She also doesn't support drive -through restaurants in the College District when the City has been talking about road diets and slowing traffic down so that people can walk around. Councilmember Kelly agreed with Mayor Harnik comments, but if for some reason a year or two from now, the state of the world caused the City to revisit the Cook Street issue, that would be fine with her. But as of today, she believed Council had to support the plan of a different division for that part of the City. However, if they don't extend on Washington Street, is there an alternative ending point on that street. Ms. Buck explained there are only two areas where there could be a drive through, which is at the Albertson's Shopping Center and the former Casey's Restaurant site. 43 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING Draft APRIL 13, 2017 Mayor Harnik pointed out Avenue of the States, off Washington Street, is also the ingress and egress to Palm Desert Country Club, which is a highly traveled area where the City just added a roundabout. She would hate to create more traffic there and less of a safe, pedestrian -friendly community. Councilmember Weber stated that when the City considers drive throughs, it doesn't just plot them "willy nilly." She said vehicles are to go into the parking structure area, circle around, and then back into the street, so she didn't think anyone would be dodging cars. And to address the issue of seniors and their walkabouts, to her, people would be walking west as opposed to east, unless they were crossing the street, which is a scary street to cross, but that didn't have anything to do with drive throughs. She recalled there was discussion of two or three restaurants that would go into the Casey's site, and one of them was going to be a sit-down restaurant, questioning whatever happened to those plans. Mr. Acosta replied that they have evolved in their process. The developer has run the financing based upon what restaurants they could attract. Staff was pushing for a corner bakery type of restaurant that would lend itself to the COV demographic. The challenge to the developer had to do with the economics of the land cost versus the attraction of a sit-down restaurant. He said the trend is moving toward drive -through restaurants. Councilmember Weber made the remark that this is where we are, back to the 21 t Century. Mayor Harnik clarified she wasn't talking about people going for strolls on the vacant Casey's site, but instead that they would be able to go to a restaurant where they can sit and dine. She noted there is a Starbucks on Washington Street that is not a drive through, and it's always busy. Additionally, this particular area is high in density. She reiterated that she couldn't support putting a drive -through where the City wants people to walk. Councilmember Weber questioned what will the City do if developers can't find a feasible restaurant to put there, because it's already been attempted, but the projects don't pencil out. She asked if staff had tried again to get somebody else. Mr. Ceja shared that the Planning Department is reviewing an application for development at the Casey site, and in talking with the developer, they are looking at incorporating restaurant use, including sit-down restaurants with patio spaces. Further responding, he said they are also designing it for a potential drive through, so if there is an answer for them this evening, they will know which way to go. Councilmember Kelly asked the Council to stay focused, which is to decide what is appropriate use, and of course, potential commercial developers are going to test the water to see if Council will make changes they would find attractive. 44 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING Draft APRIL 13, 2017 However, first and foremost, Council has to do its job of determining what is appropriate in that space. She is persuaded by Mayor Harnik comments of the proximity of senior housing, which is defined to afford a true 20th Century lifestyle in which the environment is managed toward sustainability. She would like to hear alternative proposals for Washington Street, because she is not personally familiar enough with the existing development to know what might be logical. Mr. Ceja stated that if Council was not interested in expanding drive throughs along Washington Street, it should just be omitted from the proposed Ordinance, because the Freeway Commercial Overlay will not change. The only expansion Council was considering this evening was to incorporate Albertson's Shopping Center and the Casey's site. When staff looked at Washington Street in relation to Carlos Ortega Villas, they found that Avenue of the States is very auto dominated, because nearby is a gas station, Jiffy Lube, car wash, and drive throughs for banks. He said that from the Carlos Ortega Villas there really isn't direct pedestrian access into the shopping center, because residents there would have to get out of the Villas, access the public sidewalks, and enter Avenue of the States to get to the shopping center. Responding to question about Avenue 44, he said there were no potential areas on the west side of Washington Street for drive -through, because it was all residential. Councilmember Weber stated that by passing the proposed Ordinance, it didn't mean there would be a fast food restaurant in the Casey site, it just meant developers can present plans to discuss whether it would be feasible, because the project would still have to comply will all the City's requirements for that location. Further, a developer may be able to come up with a restaurant excluding a drive -through, but it may not pencil out, so they may propose a drive through instead. Mr. Ceja agreed, stating all applications have to go through a review process. Councilmember Kelly suggested adopting the proposal, but amending the language under Section 25.16.040 - Specific Use Standards excluding reference to Washington Street, leaving only "Generally on the following streets and as indicated in Figure 25.10-2; Monterey Avenue and Portola Avenue from the northern city boundary to the north side of Gerald Ford Drive." Councilmember Kelly moved to waive further reading and pass Ordinance No. 1322 to second reading, approving Zoning Ordinance Amendment 17-028 to Palm Desert Municipal Code Section 25.16.040(H) - Specific Use Standards - for Commercial and Industrial Districts to allow drive -through restaurants on arterial streets with a freeway interchange (or planned interchange), as amended to exclude Washington Street and have it reflected in Figure 25.10-2 as indicated. Motion was seconded by Harnik. Responding to question, Mr. Ceja clarified that staff provided the entire Specific Use Standards, but only Item H, dealing with restaurants and drive through was being considered this evening. 45 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING Draft APRIL 13, 2017 Mayor Harnik reiterated the City worked hard on the Strategic Plan and General Plan Update, which was adopted by three Councilmembers on the dais, where they addressed sustainability, walkability, road diets, and creating community -oriented areas. She added that 21 st Century communities looked to clean air and a better way of life, including leaving a better Palm Desert to live in, and this was not one of those times to be flexible about it. Mayor Harnik called for the vote and the motion carried by a 3-0 vote (AYES: Jonathan, Kelly, and Harnik; NOES: Nestande and Weber). XIX. REPORTS AND REMARKS A. CITY MANAGER 1. City Manager's Meeting Summaries Report for the Period of March 13-31, 2017. With City Council concurrence, the Meeting Summaries Report was received and filed. 2. Request for City Council to Appoint Two (2) Members to an Ad Hoc Subcommittee with Coachella Valley Water District Board Members Regarding Water Issues. Ms. Aylaian reported the City received a request from Coachella Valley Water District who is interested in forming a 2 by 2 committee with two members of their board and two members of the City Council. She said it would be an ad hoc subcommittee meeting on an as needed basis to discussed general water issues. Councilmembers Nestande and Kelly expressed their interest in serving on the ad hoc committee. Mayor Harnik moved to, approve the appointment of Councilmembers Kathleen Kelly and Gina Nestande to serve on an Ad Hoc Subcommittee with Coachella Valley Water District Board Members regarding water issues. Motion was seconded by Jonathan and carried by a 5-0 vote (AYES: Jonathan, Kelly, Nestande, Weber, and Harnik; NOES: None). 3. Auditor Selection Ms. Aylaian reported staff is going through five proposals received for Auditing Services. She asked if any Councilmembers wished to sit in on the interview process, it was tentatively scheduled for Monday. 4. Personnel Update 46 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING Draft APRIL 13, 2017 Ms. Aylaian announced that Shawn Kilpatrick, who is a 27-year City employee, will be retiring from the City at the end of the month. He is a Code Enforcement Officer who is very involved in the community, particularly in the Palm Desert Country Club community where residents there flag him down to discuss issues. She thanked him for his years of service to the City. 5. Farewell Reception for Assistant City Manager Rudy Acosta Ms. Aylaian said Mr. Acosta will be leaving the City and Friday is his last day. Over the course of 13 years, he served in two different stints with the City, serving in a number of capacities and ending up as Assistant City Manager. He delivered a number of projects ranging from landscape, recreation, public works and economic development projects during his tenure with the City of Palm Desert. Tomorrow around 2:00 p.m. staff will be getting together to say goodbye to Rudy. She thanked him for his time and service to the City Councilmember Kelly expressed her personal appreciation to Mr. Acosta, stating she greatly valued his capacity to be both pragmatic and imaginative, which is a rare combination, and she hoped he will continue to put those skills to use for the public good. Mayor Pro Tem Jonathan concurred, stating there may be a third stint and hopefully Mr. Acosta won't be a stranger. 6. Class and Compensation Study Ms. Aylaian reported the City received proposals for a consultant to conduct the Class and Compensation Study for the City. Staff will be interviewing the top ranked firms on Tuesday, April 25. If any Councilmember was interested in serving on the selection or interview committee, she would like to know. Both Mayor Harnik and Councilmember Kelly expressed their interest in serving on the selection and interview committee. B. CITY ATTORNEY None 47 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING C. CITY CLERK Draft APRIL 13, 2017 1. Announcement of City Council Study Session on Thursday, April 27, 2017, at 2:00 p.m. in the Administrative Conference Room — Presentation by the Palm Springs Desert Resorts Convention & Visitors Authority. Ms. Klassen noted the upcoming Study Session by the Convention & Visitors Authority, adding that they requested this back at the end of the year, and this was the first date available for them to make their presentation. D. PUBLIC SAFETY 1. Fire Department None 2. Police Department None E. MAYOR AND MEMBERS OF THE CITY COUNCIL 1. Councilmember Susan Marie Weber's Meetina Summaries Report for the Period of March 13-26, 2017. With City Council concurrence, the Meeting Summaries Report was received and filed. 2. City Council Reports/Comments: a) Audit. Investment & Finance Committee Mayor Pro Tem Jonathan was happy to report that the Committee met on March 28, and the City is on track to meet or exceed projected net income for the current fiscal year. b) Hotel & Sianature Events Committee Mayor Pro Tem Jonathan reported the Committee met and there were good reviews of Street, BAM, and Fashion Week, stating there is expectations to repeat next year and looking to add a spring event, which is being explored. 48 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING c) Brew at the Zoo Event Draft APRIL 13, 2017 Mayor Harnik said Brew at the Zoo Event at The Living Desert Reserve was extremely successful this year and it keeps getting better. She said hopefully it's one of those events that can come along and made better. 2. City Council Reauests for Action: None 3. City Council Consideration of Travel Requests and Reports: None XX. ADJOURNMENT With City Council concurrence, Mayor Harnik adjourned the meeting at 7:55 p.m. ATTEST: RACHELLE D. KLASSEN, CITY CLERK CITY OF PALM DESERT, CALIFORNIA JAN C. HARNIK, MAYOR 49