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HomeMy WebLinkAboutPrelim - CC - 10-12-2017RECEIVED CITY CLEKOICE P„LN DESERT, 2811 OCT 20 VA 10: 51 REGULAR PALM DESERT CITY COUNCIL MEETING THURSDAY, OCTOBER 12, 2017 CIVIC CENTER COUNCIL CHAMBER 73510 FRED WARING DRIVE, PALM DESERT, CA 92260 PRELIMINARY MINUTES I. CALL TO ORDER - 3:00 P.M. Mayor Harnik convened the meeting at 3:01 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 Rachelle D. Klassen, City Clerk Lori Carney, Director of Administrative Services Russell Grance, Director of Building & Safety Ryan Stendell, Director of Community Development Martin Alvarez, Director of Economic Development Janet M. Moore, Director of Finance/City Treasurer Mark Greenwood, Director of Public Works Frankie Riddle, Director of Special Programs Stephen Y. Aryan, Risk Manager Lt. Coby Webb, Asst. Chief, Palm Desert Police/Riverside Co. Sheriff's Dept. Grace L. Rocha, Deputy City Clerk III. ORAL COMMUNICATIONS - A (CLOSED SESSION ITEMS) None IV. ADJOURN TO CLOSED SESSION Request for Closed Session: DRAFT PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING OCTOBER 12, 2017 A. Conference with Real Property Negotiator pursuant to Government Code Section 54956.8: 1) Property: Lease Property - Henderson Community Building, 72559 Highway 111, Palm Desert Negotiating Parties: Agency: Lauri Aylaian/City of Palm Desert Property Owner: City of Palm Desert Other Parties: Laurie Baldwin/ Palm Desert Area Chamber of Commerce Under Negotiation: x Price x Terms of Payment 2) Property: Lease Property - Parkview Professional Office Complex, 73710 Fred Waring Drive, Palm Desert Negotiating Parties: Agency: Lauri Aylaian/Janet M. Moore/City of Palm Desert Property Owner: City of Palm Desert Under Negotiation: x Price x Terms of Payment B. Conference with Legal Counsel regarding existing litigation pursuant to Government Code Section 54956.9(d)(1): 1) Timothy Lewis Whiting v. City of Palm Desert, et al., U. S. District Court, Central District of California, Civil Action No. 5:17-cv-01395-J G B-KK 2) Kenneth Doran v. City of Palm Desert, Riverside County Superior Court, Case No. PSC 1705265 C. Conference with Legal Counsel regarding significant exposure to litigation pursuant to Government Code Section 54956.9(d)(2): Number of potential cases: 2 Mr. Hargreaves noted that for Closed Session, one of the items Council will be discussing under anticipated litigation, is the letter received on September 15, 2017, from Mr. Kevin Shenkman regarding a California Voting Rights Act challenge. With City Council concurrence, Mayor Harnik adjourned the meeting to Closed Session of the City Council at 3:02 p.m. She reconvened the meeting at 4:08 p.m. 2 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING OCTOBER 12, 2017 V. RECONVENE REGULAR MEETING - 4:00 P.M. A. REPORT ON ACTION FROM CLOSED SESSION. None VI. PLEDGE OF ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA - Mayor Pro Tem Sabby Jonathan VII. INVOCATION - Mayor Jan C. Harnik VIII. AWARDS AND PRESENTATIONS A. PRESENTATION TO RECOGNIZE JIM BUTZBACH FOR HIS SERVICE TO THE CITY OF PALM DESERT AND ITS PUBLIC SAFETY COMMISSION, 2001 - 2017. On behalf of the City Council, Mayor Harnik presented an engraved crystal clock to Mr. Butzbach, honoring his 16 years of service to the City and its Public Safety Commission. Mr. Butzbach thanked the City Council and City staff, stating it was his pleasure and honor to have served the City in a number of capacities these past 16 years. He personally thanked Mr. Stephen Aryan, the City's liaison, for his support, guidance, and friendship over the years. B. PRESENTATION OF PROCLAMATION DECLARING OCTOBER 8 - 14, 2017, AS "FIRE PREVENTION WEEK" IN THE CITY OF PALM DESERT. On behalf of the City Council, Mayor Harnik presented the proclamation to Deputy Chief Dan Talbot. Deputy Chief Talbot thanked the City Council and citizens of Palm Desert for the proclamation. He emphasized that the best fire is the one prevented. He asked residents to be careful in their homes, because most fires are started through people overloading their outlets or carelessness when cooking, etc. He said it was important to have working smoke detectors in the home, because they will alert you and give you time to escape a fire. He encouraged everyone to check the batteries and make sure the smoke detectors are working properly. He offered that if you are unable to change out the batteries, call the Fire Department and schedule an appointment, and they will come out and change them for you. 3 DRAFT PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING OCTOBER 12, 2017 IX. ORAL COMMUNICATIONS - B MS. PAULA SIMONDS, Desert Cancer Foundation, introduced Ms. Sarah Bryant, their new Executive Director. She also thanked the City Council for its continued support of their event, Paint El Paseo Pink, including approving the road closure, because it's helping them ensure it's a safe event. She announced they already had 400 more registered participants compared to last years. She added that it really does take a community to come together to support our Valley neighbors in need, stating Desert Cancer Foundation provides the opportunity for necessary mammograms, diagnostics, and cancer services vital to Palm Desert and surrounding communities. She said the road closure is expanding the event, and thanked City staff, because they have been amazing in support of pulling it together. Lastly, she wished Mayor Harnik a happy birthday. Mayor Harnik welcomed Ms. Bryant to Palm Desert. MR. ROB BALLEW, Executive Director of the YMCA, announced it was the YMCA's 35`h Anniversary, and thanked the City Council for their support in this 35-year journey. He invited the City Council to the YMCA 30' Annual Hoedown at Sundown event at the Agua Caliente Casino -Resort -Spa, which will be held on November 4, 2017, at 6:00 p.m., where they will be honoring the City of Palm Desert. He's hoping the entire City Council will attend, including City staff. In addition, he presented a two -minute video of the recent Y Be Fit Palm Desert Challenge Triahtlon that took place at Civic Center Park, Palm Desert, which was a huge success. He added this event was created four years ago by Mayor Pro Tem Jonathan, and they have kept it going. X. MAYOR AND COUNCILMEMBER REPORTS & REMARKS TO THE COMMUNITY A. Mayor Pro Tem Sabbv Jonathan Committee Reports and General Comments. 1. Parks and Recreation Commission Meeting - at the October 3rd meeting, they were advised of an informational meeting for Tuesday, October 17, 2017, at 5:00 p.m. at the Freedom Park Pickleball courts. The City has heard the request of its residents and is looking at ways to repair, improve, and possibly expand the highly utilized facility. 2. Mini -Muster Program - attended the one held at Washington Charter, noting some of his colleagues were also attending them. He said it was absolutely the 3rd graders favorite school day of their entire school year. He said the program is wonderful and thanked the Palm Desert Historical Society for putting it on, including Mike Lewis, volunteers, and Councilmember Susan Marie Weber who serves on the Board. He added the event is educational and it certainly saved lives. 4 DRAFT PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING OCTOBER 12, 2017 B. Councilmember Kathleen Kelly Committee Reports and General Comments. None C. Councilmember Gina Nestande Committee Reports and General Comments. Reported she met with constituents on a variety of issues from short-term rentals, Desert Willow Golf Course, and the Cannabis Ordinance, adding she wanted everyone to know her door was always open. You can email her or call City Hall for a meeting when it's convenient for both. D. Councilmember Susan Marie Weber Meeting Summaries Report for the Period of September 18-30, 2017. With City Council concurrence, the Meeting Summaries Report was received and filed. She sent a special thanks to the Cultural Resources Preservation Committee and staff for working on the Miles Bates home that was designed by Walter S White; it's located next to the Joslyn Center. The Committee has been working to have it declared as a historical building, stating there are all kinds of tours going on around the building. The home is a one -of -a -kind; it was built with wooden dowels. E. Mayor Jan C. Harnik Committee Reports and General Comments. Mayor Harnik reminded everyone about the road closure this weekend for the Paint El Paseo Pink event. Also, if you have an opportunity, go over to The Living Desert where they are celebrating the 'Year of the Giraffe,' which is worth seeing. She pointed out the City Council attends many meetings, but they don't report on all of them unless there is something to relay that will affect the community immediately. F. City Council Requests for Action. 1. Committee/Commission Applications - Councilmember Kelly stated she has been reaching out to members of the community to encourage participation in the City's committees and commissions. However, it's been called to her attention that the current application requires interested folks to verify they have attended two meetings of any committee for which they are applying. She gathered the requirement was inserted administratively for very good reasons, which is to make sure folks know exactly what they are getting into and are not applying for a committee thinking the scope or emphasis 5 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING OCTOBER 12, 2017 is different from what it actually is. A couple of people have raised a concern to her that it foreclosed them from expressing interest if the current meeting time happens to be impossible for them. She asked staff if it would be feasible to simply add a sentence for folks in that situation, to verify they have reviewed the agenda and minutes for two meetings. Mayor Harnik commented it might be important for them to also verify they can meet at those scheduled times. Councilmember Kelly stated her point was that by fixing a mobile meeting time, it might be foreclosing the service of some terrific people, and if terrific people come forward for whom current meeting times don't work, the City might actually think about changing meeting times. However, the City was not at that point, stating she was just trying to loosen up the process to make it more inviting for people to at least express their interest. Mayor Pro Tem Jonathan suggested changing the wording from "required to attend" to "encouraged to attend." Therefore, when going through the interview process, the applicant can be asked if they can attend the meetings, and if they say they can't due to scheduling conflicts, the City Council can then take that into consideration. Mayor Harnik said the schedule for meetings can also be included with the application. Ms. Klassen replied it already was part of the application. Ms. Aylaian pointed out this was not something that required formal action of the City Council, because it's not a codified requirement, but administratively, staff can open up the application process by indicating they are encouraged to attend two meetings. Responding to question, Ms. Klassen said the application has been amended as time goes on, most recently, the Conflict of Interest Code was added, because applicants' are surprised by that requirement. She said it was somewhat onerous, which it can be, but its part of the process, because they are public officials and they would be making recommendations on things that could have a financial bearing on their interest. She has also added committees to the application and other small changes, but there hasn't been a complete overhaul of the application. She said staff accepts applications year round, because there is no specific deadline, unless it advertises for a specific vacancy, like it did for the Planning Commission where the City made a targeted solicitation. 6 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING OCTOBER 12, 2017 Mayor Harnik offered for the City Council to take a look at the application to see if there are any other changes it might want to add. Ms. Klassen noted the City has always accepted applications without the questionnaire, stating staff doesn't hold anyone's application up if it's not attached. She said applicants are encouraged to submit the questionnaire, because it then provides the applicant the understanding of what they are entering into and what the commitment will be. 2. Scalping of the Civic Center Baseball Fields - Councilmember Nestande shared that last week around 5:00 p.m., there were maintenance people scalping the fields with machines, and there was dust spewing everywhere. She said there were people exercising that were covered in unhealthy dust. She asked if the City could somehow trap that from happening or put up a sign alerting the public. Ms. Aylaian responded the City generally makes the practice of following the Smart -scalping Guidelines produced by the Coachella Valley Association of Governments (CVAG), but unfortunately, this year there were a couple of incidents where the City did not do a stellar job in making sure the vendor complied with all the requirements, and she vowed to do better next year. G. City Council Consideration of Travel Requests/Reports. None XI. STAFF REPORTS AND REMARKS A. City Manager 1. City Manager's Meeting Summaries Report for the Period of September 18-29, 2017. With City Council concurrence, the Meeting Summaries Report was received and filed. 2. Update on the SpringHill Suites by Marriott Property on Highway 111 by Director of Building & Safety Russell Grance. Mr. Grance reported it's been more than three years since the fire partially destroyed the former Fairfield Inn. He said a project of this size and caliber usually goes through the process much quicker, but for whatever reason, the resources aren't there on the owner's side. Staff reached out to see some milestones when they were getting 7 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING OCTOBER 12, 2017 DRAFT permanent power, elevator inspections, subsequent Certificate of Occupancy, but the City hasn't received any feedback. On a good note, the building at least looks like there's progress, noting the entire third floor had to be taken down due to water damage and it has now been reconstructed. They are installing windows, and all three levels are getting mechanical, electrical, and plumbing put in, as well as the fire sprinkler system. He reiterated there is progress, but not as fast as the City would like. Mayor Harnik was happy to see the windows going in. Mayor Pro Tem Jonathan agreed it was getting better, but wondered if the City had any legal recourse or mechanism in place to encourage or motivate them to get the project completed. Mr. Grance explained the Code states that if there is no progress within 180 days between inspections, the City can cancel or void the permit. The City has granted one extension early on, but they are roughly calling in two inspections a week, which is not much. He believed the delay had to do with the owner's resources, but there are about eleven workers on site. B. City Attorney None C. City Clerk None D. Public Safety 1. Fire Department None 2. Police Department None 8 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING OCTOBER 12, 2017 XII. CONSENT CALENDAR DRAFT A. MINUTES of the Regular City Council Meeting of September 28, 2017. Rec: Approve as presented. B. CLAIMS AND DEMANDS AGAINST THE CITY TREASURY - Warrants Dated 8/31/2017, 9/22/2017, 9/22/2017-9/30/2017, and 9/29/2017. Rec: Approve as presented. C. CLAIMS AND DEMANDS AGAINST THE CITY/HOUSING TREASURIES - Warrant Dated 9/15/2017 (Joint Consideration with the Palm Desert Housing Authority). Rec: Approve as presented. D. COMPLIANCE ANALYSIS AND INVESTMENT REPORTS for the Months of June, July, and August 2017 (Joint Consideration with the Successor Agency to the Palm Desert Redevelopment Agency). Rec: Receive and file. E. APPLICATION FOR ALCOHOLIC BEVERAGE LICENSE by Amanda's Shabby Chic Tea Room and Boutique, LLC, 73625 Highway 111, Suites B & C, Palm Desert. Rec: Receive and file. F. APPLICATION FOR ALCOHOLIC BEVERAGE LICENSE by Wildest Greens, 72990 El Paseo, #3, Palm Desert. Rec: Receive and file. G. AUDIT, INVESTMENT & FINANCE COMMITTEE Minutes for the Meeting of June 27, 2017. Rec: Receive and file. H. LETTER OF RESIGNATION from James Butzbach - Public Safety Commission. Rec: Receive with very sincere regret. 9 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING OCTOBER 12, 2017 DRAFT I. LETTER OF RESIGNATION from Mahasti Islami - Marketing Committee. Rec: Receive with very sincere regret. J. REQUEST FOR ACCEPTANCE OF WORK for Contract No. C36330 — Desert Willow Clubhouse Carpet Replacement (Project No. 856-18) (Temalpakh, Inc., d/b/a The Works Floor & Wall, Palm Springs, CA). Rec: By Minute Motion, accept the work as complete and authorize City Clerk to file a Notice of Completion for the subject project. K. REQUEST FOR APPROVAL of an Exception to Palm Desert Municipal Code Section 9.58.010 - Consumption of Alcoholic Beverages on Public Property for the Sale and Consumption of Alcohol by The Joslyn Center, 73750 Catalina Way. Rec: By Minute Motion: 1) Approve an exception to Palm Desert Municipal Code Section 9.58.010 - Consumption of Alcoholic Beverages on Public Property - at The Joslyn Center, 73750 Catalina Way, for an event on November 16, 2017; 2) authorize City Manager to sign the Daily License Application from the California Department of Alcoholic Beverage Control for this event. 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. XIII. CONSENT ITEMS HELD OVER None XIV. RESOLUTIONS None XV. ORDINANCES A. For Introduction: None B. For Adoption: None 10 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING OCTOBER 12, 2017 XVI. NEW BUSINESS DRAFT A. REQUEST FOR APPROVAL OF FISCAL YEAR 2016-2017 FINAL BUDGET ADJUSTMENTS TO REVENUE AND EXPENDITURES, AND AUTHORIZE CERTAIN RELATED EXPENDITURES FOR FISCAL YEAR 2017-2018. Ms. Moore stated the City was in the process of closing it's financial records for the year ending June 30, 2017. She said it was necessary to make some year-end adjustments, and the details are attached to the resolution that's attached to the agenda packet. As an overview, staff is requesting an increase of $2.7 million to revenue and an increase to overall reallocation of appropriations of $1.3 million, leaving a net available to be transferred to reserves once the books are closed. The other request is to make a payment to CaIPERS in recognition of additional increases to unfunded liability due to the rate reduction and discount rate up to $1.7 million, stating it will only go up to the amount the City would transfer to reserves, but instead make a payment to CaIPERS. Councilmember Kelly commented it was nice to see expenses coming in lower than projections. Mayor Pro Tem Jonathan said he understood the adjustment to last year's budget is an increase of $2.7 million in revenue, and an increase to expenditures of $1.3 million, which provides a net increase to the bottom line of $1.4 million. However, staff is recommending an additional unplanned contribution to CaIPERS of $1.7 million. Ms. Moore agreed, but only to the extend that it would transfer to reserves. The reason is that the City doesn't make adjustments to every expenditure line item, it makes adjustments to accounts that are significantly over what was originally budgeted. She added that the expenditures were approved by the City Council, but they may also exceed a specific line item. For example, if Public Works Department budgeted a certain amount for contract services, but the actual line item may have been at the Civic Center Park and charged to Civic Center Park, there could be an overage. Staff would then request an adjustment for that specific overage and a reduction to the public works budget. She said there may be cases where expenditures are Tess than what was budgeted, but if it's not a significant amount, staff would not make a request to reduce those, although, there will be some. Mayor Pro Tem Jonathan said he understood the $1.4 million is a net surplus to the bottom line for 2016-2017 fiscal year, and the request for $1.7 million to CaIPERS is for year 2017-2018. He asked if that transfer would throw the 2016-2017 fiscal year into a deficit. 11 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING OCTOBER 12, 2017 Ms. Moore answered no, because the funds would be transferred to reserves for the year -ending 2016-2017, and in 2017-2018, staff will only request from reserves the same amount that it transferred from the prior year. Further responding, she confirmed it will not result in a deficit for the 2016-2017 year. Mayor Pro Tem Jonathan moved to: 1) Waive further reading and adopt Resolution No. 2017 - 71, authorizing the Fiscal Year 2016-2017 final year-end budget adjustments to revenue and expenditures; 2) By Minute Motion, authorize and appropriate an additional payment to CaIPERS in an amount up to $1,700,000 for Fiscal Year 2017-2018 to reduce the City's unfunded liability. Motion was seconded by Weber and carried by a 5-0 vote (AYES: Jonathan, Kelly, Nestande, Weber, and Harnik; NOES: None). B. REQUEST FOR APPROVAL OF A VEHICLE LEASING AND REPLACEMENT PROGRAM WITH ENTERPRISE FLEET MANAGEMENT, AND RELATED ACTIONS FOR MANAGEMENT OF THE CITY'S FLEET. Mr. Greenwood stated the idea of leasing the City's fleet instead of purchasing it was previously discussed, and staff was directed to look into it. After an evaluation, staff recommended transitioning from owning the fleet to leasing it. The proposal is to roll the fleet into a leasing program with equaled segments of the fleet being transferred over a three-year period. He called attention to the staff report, pointing out that a correction needed to be made on page 2 of the staff report, under Background Analysis, it states, "The average annual lease cost per vehicle is $13,507." Instead it should reflect that the cost is for the entire fleet as opposed to "per vehicle." Lastly, he thanked Accounting Technician Bertha Gonzalez for the great deal of work done on this project. Mayor Pro Tem Jonathan thanked staff for following through with Council's request on this, adding that it was very well done. It is something that will result in cost savings, but also ensure the City's fleet is more up-to-date and better maintained than it has been in the past; it was a win -win. Councilmember Weber moved to by Minute Motion, approve/authorize: 1) Vehicle Leasing and Replacement Program with Enterprise Fleet Management for City vehicles; 2) City Manager to declare various City -owned vehicles as surplus and sell vehicles at such times as disposal is deemed appropriate; 3) proceeds from sale of surplused vehicles to be applied toward cost of the annual leasing program; 4) City Manager to take any actions necessary to facilitate new vehicle leasing process during the three-year replacement program; 5) City Manager to execute a Master Equity Lease Agreement and a Maintenance Management and Fleet Rental Agreement (Contract Nos. C36460A-B) — Capital Project Reserve Funds for leasing of the vehicles are available in Account No. 5304310-4403000 - Equipment Replacement, and funds for the maintenance portion are available in General Fund Account No. 1104331-4334000 - R/M Fleet. Motion was seconded by Nestande and carried by a 5-0 vote (AYES: Jonathan, Kelly, Nestande, Weber, and Harnik; NOES: None). 12 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING OCTOBER 12, 2017 C. REQUEST FOR AUTHORIZATION OF CITY OF PALM DESERT'S PARTICIPATION IN THE COACHELLA VALLEY ASSOCIATION OF GOVERNMENTS' (CVAG) HOUSING FIRST HOMELESSNESS PROGRAM IN THE AMOUNT OF $103,000. Ms. Riddle stated that participation in the Housing First Homelessness Program was in lieu of the City's previous participation with Roy's Desert Resource Center, which was a shelter -based program. The Housing First model is based on placing the homeless client into housing first with support of services coming in after housing has been established. It is also based on a scattered site model as opposed to a shelter system. If Palm Desert, joins, there will be five communities participating, Palm Springs, Cathedral City, Desert Hot Springs, Coachella, and the County of Riverside, including the Desert Healthcare Foundation who is also offering a 100% match. With all these cities and organizations participation, the approximate budget would increase to $1.5 million for the program. Mayor Harnik stated she thought the City of La Quinta split their contribution between Coachella Valley Association of Governments (CVAG) and the Coachella Valley Rescue Mission (CVRM). Mayor Pro Tem Jonathan recalled it was the City of Rancho Mirage that split its contribution between the Coachella Valley Rescue Mission and $30,000 to Path of Life Ministries directly, so the cities of Rancho Mirage, La Quinta, and Indio did not get the matching funds. Further responding, he confirmed the City of La Quinta did not contribute into the CVAG program, stating those three cities are investing in homelessness, but in their own and different way. However, there is an ongoing effort with CVAG and the Desert Healthcare District to work with those cities, in particular, the City of Indian Wells, whereby if those cities contributed their $103,000 directly to CVAG, an agreement would be worked out with Path of Life Ministries for CVAG to contract directly with them, so they would not be out any funds. In addition, Path of Life would have a presence at their facility, which the CVRM needs when their clients exit. He thought they had worked out a win -win -win situation, but as mentioned by another city's councilmember who said, "politics is a factor." In his mind, other considerations stood in the way of the best possible decision to address homelessness in the Coachella Valley on a regional basis. However, the staff report, which has been augmented, indicates a total funding of $1,080 million. Since that time, the cities of Desert Hot Springs, and Palm Desert if it commits, which would include the matching funds, would add another $400,000 for a total of $1.5 million. Initially, the proposed contract with Path of Life was estimated at $835,000. Therefore, not only have they reached twice that amount, but for the first time the cities of Cathedral City, Coachella, and Desert Hot Springs are 13 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING OCTOBER 12, 2017 DRAFT funding the full amount. The expanded amount of the contract with Path of Life Ministries enables them to do more and in more places, including the City of Palm Desert. Councilmember Weber expressed her appreciation to Mayor Pro Tem Jonathan for spending so much time on this issue. She believed so many cities got on board because of the scattered sites concept as opposed to the model of a shelter. She said a lot of homeless people don't want to be in a shelter and the situations for each are very complex, so she really appreciates the time, effort, and research invested to come up with a viable solution, which has changed the pattern for how things have been done in the past. Councilmember Kelly clarified that the contracting party is Path of Life Ministries, and despite the use of the word "Ministries," she assured everyone that this organization is not pushing any religion, stating it just happens to be their name. She hopes people don't get the wrong impression from the title of the organization. She is excited about this regional collaboration and by all the work that's gone into it, and she joined her colleagues in thanking Mayor Pro Tem Jonathan for his work, because it's one of the most significant things that has happened regionally in recent years and hopefully there can be a real impact. Councilmember Weber moved to: 1) Waive further reading and adopt Resolution No. 2017 - 72, approving participation in the CVAG Housing First Homelessness Program; 2) By Minute Motion, authorize expenditure of $103,000 for the CVAG Housing First Homelessness Program — funds are available in Dues, Account No. 1104159-4363000 - this is a one-time commitment. Motion was seconded by Kelly and carried by a 5-0 vote (AYES: Jonathan, Kelly, Nestande, Weber, and Harnik; NOES: None). D. REQUEST FOR APPROVAL OF $5,000 DONATION TO ONE AMERICA APPEAL TO ASSIST VICTIMS OF THE RECENT HURRICANES HARVEY, IRMA, AND MARIA. Ms. Aylaian recalled for the City Council that at the September 7 meeting, staff was directed to look into a financial contribution to the hurricane victims from Hurricanes Harvey, Irma, and Maria. Staff looked at possible organizations and set up on the City's website a link to three different organizations Americares Foundation, The American Red Cross, and One America Appeal, so that constituents can find an easy way to provide assistance to the victims. Staff also recommends appropriating and contributing $5,000 from the City of Palm Desert to One America Appeal, which is an organization founded by the five living United States Presidents and have asked for assistance to help the victims and cities devastated by the hurricane. Also, the City also had a garage sale of gently used office furnishings and equipment, including holiday decor that had passed its useful 14 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING OCTOBER 12, 2017 life, and raised $357. Staff recommended those funds be directed to One America Appeal as well. Councilmember Kelly expressed support forstaff's recommendation, stating the last item on the agenda illustrates that Palm Desert has been a leader in acting regionally, and these tragedies which have happened in recent weeks, has expanded the City's concept of region as their hearts break for so many people. Therefore, she's confident Palm Desert citizens would want its Council to act on the collective behalf of the community to show solidarity with these areas that have been tragically affected. Mayor Pro Tem Jonathan said he was struggling with this on two levels and invited his colleague's opinion, because he wondered to what extent was it the City's responsibility to use its resources for something that is so far from Palm Desert. He said the Council is steward of the City's resources, so he was troubled with what is being proposed, however, he understood the goal. Sadly, there are so many tragedies in the Carribean, Florida, Puerto Rico, including La Vegas, and now Northern California with the fires causing loss of people, homes, and schools, etc. He questioned where will Council stop once it starts down this road. The final issue is the $5,000 donation, because the City has a lot of charitable organizations asking for less and the City Council has said no. Councilmember Nestande agreed, stating it was a great point, because through her church and her children's schools, her family has been donating voluntarily. She questioned what role does City government play, and whether it was the place of the City to spend tax payer dollars. Councilmember Weber added that's why she requested staff place on the City's website a link to where concerned residents can make donations. She agreed there will always be another tragedy and soon it will be Palm Desert's turn when "the big one" hits. She suggested discussing this issue during the budget study sessions, in terms of setting aside funds to help other areas. She said it was her intention to abstain on this item, because she felt it should be the decision of individuals to donate to charities. Councilmember Kelly pointed out it was rare to have the five living past presidents, who represent very different political objectives, come together to urge a particular action. She believed they came together feeling it was such an important time for everyone to express unity and compassion. The hurricane season this year was dramatically worse than most can remember, adding it was not every day something so historic happens, including not every day that the five living presidents call upon communities to respond. She has a high level of confidence that Palm Desert residents would feel good about the City taking this action in response to that appeal to show it 15 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING OCTOBER 12, 2017 D RA -- was a compassionate community supporting those who are suffering at this time. Councilmember Nestande asked what about the people in Napa, California, who also need the help. Mayor Harnik commented she was sure no one would deny they need help, but an ink line on a map didn't determine who the City helps, and to Councilmember Kelly's remarks, this was about extreme devastation. She said this was a time for the City to step up and help, believing it was Council's responsibility as citizens and community members to do so. And in response to Councilmember Weber's remark, she's right, the City may experience a big earthquake and she would certainly hope that members and citizens elsewhere in America will step up to help. She went on to say that five past living presidents came together because it was so important, and this Council has an opportunity to help and lift others. She said these hurricanes destroyed walls, homes, and the people affected don't even have electricity, adding that $5,000 can help a lot of people. She reiterated these were extreme disasters not seen in decades. Mayor Pro Tem Jonathan stated his colleagues remarks are persuasive, and the City does have an obligation, in terms of social responsibility, which it recognizes when it gives to various charitable organizations and schools, etc. He offered moving forward with the proposed donation, and in the future during the budget, build -in a reserve for whatever amount in case there is some incident that rises to the scale and magnitude of what the Country has witnessed these past few months, so that then, the City has the funds available and it's not much of an issue. Mayor Harnik requested the motion include the donation of the garage sale proceeds to One America Appeal, and at the next budget cycle, consider a reserve for such contributions. Councilmember Kelly, moved to, by Minute Motion: 1) Authorize the one-time contribution of $5,000 to One America Appeal to assist victims of the recent Hurricanes Harvey, Irma, and Maria, including the donation from the City's Garage Sale proceeds; 2) appropriate $5,000 from the Unobligated General Fund to Account No. 1104800-4388000, and consider a reserve at the next budget cycle for such contributions. Motion was seconded by Harnik and carried by a 4-0-1 vote (AYES: Jonathan, Kelly, Nestande, and Harnik; NOES: None; ABSTAINED: Weber) 16 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING OCTOBER 12, 2017 XVII. CONTINUED BUSINESS DRAFT A. ORDINANCE NO. 1329 - AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, APPROVING A ZONING ORDINANCE AMENDMENT TO PALM DESERT MUNICIPAL CODE SECTION 25.34.120, CHAPTERS 25.16 AND 25.18, TO ALLOW COMMERCIAL CANNABIS OPERATIONS IN THE CITY, SUBJECT TO A CONDITIONAL USE PERMIT; AND ESTABLISHING CHAPTER 5.101 - COMMERCIAL CANNABIS REGULATORY PERMITS AND CHAPTER 8.38 - PERSONAL USE OF CANNABIS, Case No. ZOA 17-027 (City of Palm Desert, Applicant) (Continued from the meeting of September 28, 2017). Mayor Harnik recused herself from this item due to a potential conflict of interest and left the Council Chamber. Councilmember Nestande also recused herself and left the Council Chamber. Principal Planner Eric Ceja noted the Ordinance was before the City Council on September 28, where Council continued the item and directed staff to review six different items; the Ordinance was updated based on those requests. Staff updated the following: 1) definitions for testing to include research; 2) limiting dispensaries to six (6) in the City, with one (1) being on El Paseo; 3) provided language for CC&Rs for compliance with the land owners and proposed cannabis use; 4) expanded the separation requirements from 600 feet to 1,000 feet around schools, daycare centers, etc.; 5) staff is also reviewing the criteria for a City -merit system. With regards to the CC&Rs. He provided the City Council with the modified language, stating it was in two different paragraphs, but they were consolidated to one and was simplified. The new proposed paragraph reads, "No. 6. No Conditional Use Permit will be issued where commercial cannabis businesses are prohibited by covenants, conditions, and restrictions (CC&Rs) that clearly prohibit such use. For buildings located in any area governed by CC&Rs, the applicant must additionally submit a statement certifying that any applicable CC&Rs do not prohibit the use for which the applicant is seeking approval." He said staff recommended approval of the Ordinance as presented. Mr. Hargreaves pointed out that this paragraph replaces the language in Section 25.34.120(E) (6) and (7). Councilmember Kelly asked staff to explain the reason for the substitute language, because the previous one required a letter from the property owners' association, which at least assured that the property owners association was aware of the request, whereas the substitute one leaves it up to the applicant to vouch for the CC&Rs. 17 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING OCTOBER 12, 2017 DRAFT Mayor Pro Tem Jonathan replied he had asked Counsel to prepare this alternate language for Council's consideration, but he didn't realize staff was actually recommending it. The goal in the revised language was to take the City out of the equation and not insert itself between the association and the applicant. Also, in some instances, the associations, similar to residential homeowner associations, are not always well organized or responsive. If the applicant fails to do his part, the City has the mechanism to deny or revoke the permit, which is a much simpler approach. Councilmember Kelly asked if there was something else that would assure that the association is noticed of the Conditional Use Permit (CUP) application, because it would be hard for them to challenge it if they don't get noticed. Mayor Pro Tem Jonathan responded it would be similar to any other activity of a member of a property association, in that if they violate the CC&Rs, then they self govern and deal with the consequences. He was reluctant to insert the City in that equation to avoid having the City embroiled in conflicts it should stay out of. Mr. Ceja added that all CUPs require public hearings with the Planning Commission, so typically, owners within 300 feet of the property will be notified. In many instances, it includes property owner associations. Councilmember Kelly commented that the City would then be reliant on neighbors who would be subject to the same CC&Rs to speak up if they felt they were prohibited. Mayor Pro Tem Jonathan asked how many establishments could the City expect, both in terms of retail and other uses, based upon the proposed Ordinance in its present iteration. Mr. Ceja responded that combined between retail and cultivation, the number is around ten (10), but when talking about testing, it would be hard to tell. Further responding, out of the total ten (10), there would be four (4) retail and six (6) cultivation; those were approximate numbers. Councilmember Weber stated Council discussed starting conservatively, but it was open to increasing it to more shops if the demand was there, especially if they are respecting the City's criteria. She asked about the cultivation areas. Mr. Ceja said staff was limiting cultivation to industrial areas, of which there is very limited space, and given that the radius was increased to 1,000 feet around schools, it has eliminated certain portions of it, and there is also a 18 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING OCTOBER 12, 2017 1,500-foot separation between uses. Therefore, the applicability of where cultivation can be located is very small. Mayor Pro Tem Jonathan noted the public hearing was closed at the last meeting, but Council was willing to hear any further public testimony at this time. MR. KEVIN PACHACKI, Del Coronado Court, Palm Desert, stated the Palma Village Park located at 44554 San Carlos, near San Pablo, is zoned as open space, and it was not included in the buffer zone for the Cannabis Ordinance. He said this was a park with playground equipment where children are at play and it requires City maintenance. However, if this were to be included, as it should, and the radius was expanded to 1,000 feet as newly proposed from the original 600-foot radius, which has been adopted by cities such as Santa Barbara and other cities in California, it would further limit potential real estate locations viable for cannabis dispensaries, especially along Highway 111, San Pablo, and possibly El Paseo areas. He said this park poses no possible viewing for cannabis advertisements from the park. Additionally, the early childhood education center at 44-991 Cabrillo Way and Alessandro, if expanded by 1,000 feet, would negate all the buildings to the east and El Paseo buildings for potential cannabis dispensaries that fit the medicinal model. In that area, children under the age of 18 are rarely seen crossing Highway 111 independently on foot or on a bike, as it's a busy street. He said the best solution to this problem is to reduce the radius of any park or daycare around Highway 111 back to 600 feet as an exception. By doing this, it will encourage more real estate locations, which are very hard to find, and it would provide a pathway to less opposition. Mr. Ceja noted the City did not include parks as part of the buffer. However, it did include certain daycare centers that were off Highway 111. Councilmember Kelly pointed out the requirement around parks is that facilities cannot abut to them. Mr. Ceja concurred. Mayor Pro Tem Jonathan said he was curious if the 1,000-foot buffer would impact all the way to the south side of Highway 111 and onto El Paseo from that blue tin roof facility by the oil lube on Alessandro and Cabrillo. Mr. Ceja replied he would hate to guestimate or provide something false. MR. MIKE QUIRK, Wimbledon Drive, Rancho Mirage, stated he knew Council has been working on this issue for a while and wondered what the City was going to do about taxing cannabis, given that surrounding communities Coachella, Palm Springs, Cathedral City, and Desert Hot Springs were exercising a retail tax per square footage. Secondly, based on 19 DRAFT PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING OCTOBER 12, 2017 a merit system, he questioned how exactly that was going to work. As a real estate developer he knew that most CC&Rs, whether industrial or commercial, did not address cannabis, and most would have to be amended and recorded. However, they may cite things such as nuisance clauses, etc. Mayor Pro Tem Jonathan explained that at this time, the City has not imposed a new tax on cannabis as other cities and jurisdictions have done, but Council has directed staff to explore that option. With regard to the merit -based system, staff is in the process of developing that criteria. MS. MELISSA JAHRIES, Heliotrope Drive, Palm Desert, shared she just became aware the City was considering this issue last week, and is concerned because she has children that attend Washington Charter School, and they take field trips. She asked if the dispensaries will be selling gummy bears, lollipops, brownies, and cookies. She expressed shock that the City was considering dispensaries in Palm Desert. Although she knew the law had passed, she questioned what will be done to avoid having dispensary's sell to kids, adding she believed they will be advertising to children. She noted she had a five, ten, and twelve year old, and one in middle school. She finds herself having big talks about not taking candy from their friends. She heard one Councilmember earlier say she was worried about scalping and people breathing in the dust because it's bad for their health, yet there will be children in the community that will be exposed to all these candies filled with drugs. She asked Council if they were protecting the kids, because 1,000 feet was not a great distance, adding she couldn't believe she was the only mom in attendance voicing her opposition. Mayor Pro Tem Jonathan said the Council appreciates her perspective, and he wasn't going to enter into a debate, but he advised Ms. Jahries that the State is in the process of looking at modifying restrictions about cannabis that looks like candy, which is a State issue and the City is bound by those rules. He added there was a minimum age requirement of 21 to enter a cannabis dispensary. Mr. Ceja said there are different things going on with the State. First, dispensaries can't market toward children and they can't even create products that advertise to children. The State limits' cannabis dispensaries within 600-feet of schools, and the City extended that to 1,000 feet. Additionally, you have to be 21 years of age to enter into the store, and the City's Ordinance allows for review of the exterior of the store to ensure it is not advertising or creating an atmosphere that advertises toward children. MS. JAHRIES reiterated that Washington Charter School takes field trips and they do art walks off El Paseo. She wondered if that made a difference to the 1,000-foot buffer. She said as a community this needed to be looked at again, because she felt the City was opening up a pandora's box. 20 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING OCTOBER 12, 2017 DRAFT MS. CHERYL MENA, Wisconsin Avenue, Palm Desert, said she heard about the cannabis stores on KPSP Local 2, and when she went on line and learned about everything that was going to be happening, she learned that people will be allowed to have six plants in the house or the back yard. She said they live in a country club where some people have gates and others don't, adding that children and dogs can fit through them. She was concerned that children and dogs don't know what they eat, because they put things in their mouths all the time. She wondered if this Council would allow this to be happening when they were raising their kids and what would they have done. She doesn't hold anything against people that smoke cannabis, but she learned that the City of Cathedral City has six stores, so if people really want it, they can go to Cathedral City, because it's not needed here. MR. DAN BALL, Peppergrass Street, Palm Desert, addressed the issue of one dispensary on El Paseo. He knew Mr. Fern spoke against having a dispensary located within the prime shopping district, which would be considered Portola Avenue to Monterey Avenue. He wondered if an adjustment could be made in the future to only allow them east of Portola Avenue and west of Monterey on El Paseo. MR. FRED FERN, The Shops on El Paseo, Palm Desert, expressed concern in having the luxury retail stores impacted negatively. He requested that the one retail allowed on El Paseo be located east of Larkspur Lane, because the stores in The Gardens all the way down to The Shops on El Paseo have more of a luxury image and they're very demanding of their co -tenancy. MS. JULIE MONTANE, Owner of PSA Organica, Palm Springs, responding to comments by the two mothers that spoke, she said that in Colorado there is a medicine called Charlottes Web that takes care of epilepsy, seizures, etc. In fact, a lot of mothers have moved to Colorado due to the fact that they can't get the medicine for their children here in California. With regards to candies, first of all one has to have a State Card, and when using for recreational, one still has to have an identification card. She said this issue was no different from walking by a 7-Eleven Store that sells liquor and other cigarettes, stating she was more inclined to see a child pick up a cigarette off the street than they would a joint. She said only adults are to enter a store and the products are well packaged, adding it was on the parent to keep it in a safe place at home. However, she pointed out that cannabis is medicine for many people. MR. ROB BERNHEIMER, Manitou Drive, Indian Wells, offered that Mr. Fern's suggestion was an interesting compromise. However, he reminded Council that the idea was to limit one on El Paseo and reviewing it in the future for the opportunity to opening up another. Further, if Council 21 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING OCTOBER 12, 2017 was looking at limiting it to east of Larkspur Lane, it would increase foot traffic where it currently isn't as robust as other parts of El Paseo. He reiterated it was a good compromise. MS. STEVIE KUHN, Fred Waring Drive, stated she recently opened up an adolescent intensive outpatient for teenagers that struggle with issues pertaining to substance abuse and mental health. She can share that they have been overwhelmed with the demand for teenagers that need help in this area. She offered that while 1,000 feet seemed like a lot, it's not very difficult to obtain these substances, so she would like the Council to consider how the City would crack down on making these substances readily available to teenagers. MR. CHRIS CRANFILL, Owner of California's Best, shared that cannabis is 100% safe and non -toxic. It is the only drug that does not have LD 50 (a lethal dose, 50%) or LD100 (lethal dose, 100%), meaning no overdose. He said no amount or dose of cannabis could ever cause an overdose, unlike many prescription medications. He noted he has a 21 year old, so at the same time, he too, is trying to find a preschool that has a 600- or 1,000-feet buffer, so he understood the concerns. However, other States and cities have not reported any overdoses or had any problems. He said the State of Oregon started a great campaign called "Try 5," where everyone was encouraged to try 5 milligrams. They also limited the sale of candies and edibles for the first year. In Colorado, they are looking at a bill that will ban any edibles that are shaped or look like candies, and they have to be clearly labeled. Lastly, it becomes the responsibility of the parent to keep things safe and away from children, just like medication or alcohol. Councilmember Kelly asked staff if it had taken a look at the suggestion of limiting the single El Paseo location to east of Larkspur Lane. Mr. Ceja replied it had, but since the Ordinance excludes the Downtown Overlay Zone, which excludes properties like The Gardens and many others west of Larkpur Lane, there wasn't a need to be specific, adding most of the locations are east of Larkspur. Councilmember Kelly said she understood staff to say that most of what's west of Larkspur would already be foreclosed. Therefore, if Council wanted to respond to the suggestions by explicitly providing east of Larkspur Lane, it wouldn't adversely affect much. Mr. Ceja concurred. Councilmember Kelly said there are two places in Chapter 25 that refers to the El Paseo limitation in Part C and D, where she suggested the language could be changed where it states, "El Paseo," to insert east of Larkspur 22 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING OCTOBER 12, 2017 DRAFT Lane. Therefore, it would read, "No more than one (1) retail cannabis business may locate on El Paseo, which must be located east of Larkspur." Mayor Pro Tem Jonathan stated a specific question raised this evening was about cracking down, so what happens when a retail establishment, similar to a liquor store, is found selling to minors. Mr. Ceja explained there are consequences at the State level where they will have their license revoked. In other cases, the City has the power to revoke a Conditional Use Permit (CUP) as well. Further responding, he said the Ordinance includes guidelines regarding violations, where violators will go through the normal Code Compliance Procedures and Planning Procedures to revoke a CUP. Mayor Pro Tem Jonathan said he wanted to be on solid ground here, because all this was new to the State and the City, so he wanted some reassurances. He said if the City finds shortcomings, like let's say the City doesn't have specific revocation guidelines for selling to minors, but it wants to have it, Council would have an opportunity to modify the Ordinance to account for any shortcomings it discovers as it moves through this process. Mr. Ceja answered yes, and he apologized for not emphasizing that staff expects to have several ordinance amendments coming before the City Council in the future, as it learns how cannabis impacts Palm Desert. Staff is also committed to report to the City Council every six months to provide a status update on how cannabis is working in the City. Mayor Pro Tem Jonathan noted that would be a public report at a City Council meeting, making it available to the public by either attending the meeting, watching it live steaming, or later via the website. Councilmember Weber thanked staff for reminding the Council that it doesn't always lists everything in the Ordinance that's already covered by another Code or State law. She went on to say she appreciated the passion that people come with to share their stories and concerns, which is similar to what they have experienced with other issues in the past. She said the City has in place ordinances and codes to rely on for the City to enforce, and these cannabis stores are not going to be businesses that have flashing lights to entice children. She believed children get just as enticed when they go to a grocery store where they see magazines and liquor, and what does a parent do in that situation. Another thing, nobody wants to lose their license by enticing a child into their shop. Also, everyone in this room is well aware that this City bends over backwards to listen to complaints. Therefore, once the Ordinance is in place, if anything goes wrong, the City will followup immediately. As mentioned by staff, they will enforce the codes and may even tighten up the Ordinance if there's any problem. She understood the 23 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING OCTOBER 12, 2017 DRAFT parent's concerns, but as a Councilmember, she had the absolute confidence that Palm Desert will keep its high standard by keeping it safe for everyone, including children walking up and down the streets. Councilmember Kelly noted that clearly there are new folks in the audience who has not participated in the process, who have a difference of opinion about whether cannabis is a good thing or not. However, Proposition 64 passed and the mid -Valley cities have become a continuum, stating there is no discreet barrier from city to city, and that means it will have impacts in Palm Desert. The City expects that some State funds will be available to cities to assist with the impacts, but it wouldn't be eligible for them if it didn't have an ordinance of this type, of which, allows for some facilities within the City. Therefore, the City's objective was to start slowly to be responsive to the many people that have testified and encouraged the Council to at least make a beginning. Additionally, by starting slow, it allows for Council, staff, and citizens to see what the ramifications are, and Mr. Ceja has encouraged everyone to give input about what is being experienced once an Ordinance has passed. She appreciates the modifications made since the last meeting, and she can get on board with the suggested alternate language for CC&Rs and with the further amendment she described of limiting El Paseo to facilities east of Larkspur Lane. Mayor Pro Tem Jonathan concurred with what's been said, and it made sense to limiting locations, at least initially, to east of Larkspur Lane. However, his hope and expectation is that whatever facility is located there, it will elevate the street and increase foot traffic, and if it doesn't, Council will have to consider whether it's a good idea to locate facilities on El Paseo at all. He said everyone understood that El Paseo is a special resource as an economic driver for the City, so the last thing Council wants to do is impact it adversely. He said if State funds become available, the City would only be eligible if Palm Desert allows cannabis establishments in its City, and those funds would enable the City to deal with the impacts, but they would be restricted toward education and prevention measures. He agreed with Councilmember Kelly's comments that there are no physical barriers to Palm Desert, and it will be dealing with the impacts of cannabis whether it allows establishments or not, and it was better to have funding to address any impacts. Finally, he supports what is happening here, because it's not restricting free trade, but at the same time, it threading very carefully and stepping into the water gently to see how it will all work and what the impacts will be, and then be prepared to respond accordingly. Responding to question, Councilmember Kelly stated that on page 3 of Exhibit A, under item C - Conditional Use Permit, the second sentence should read, "No more than one (1) retail cannabis business may locate on El Paseo, which must be located east of Larkspur Lane." The same change would happen on the next page under item D-1(a). 24 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING OCTOBER 12, 2017 Councilmember Weber stated Council was in agreement with making the applicant responsible when it came to the CC&Rs and keeping the City out of it. Councilmember Kelly moved to waive further reading and pass Ordinance No. 1329 to second reading, as amended to limit El Paseo facilities to east of Larkspur Lane, and using the alternate CC&R's language as presented at the meeting. Motion was seconded by Weber and it carried by a 3-0 vote (AYES: Kelly, Weber, and Jonathan; NOES: None; ABSENT: Nestande and Harnik). Councilmember Weber thanked Mr. Ceja for all his work, stating he had been working on the Ordinance for 18 months, and she really appreciated all the involvement by staff. Mayor Pro Tem Jonathan concurred. XVIII. OLD BUSINESS A. REQUEST FOR DIRECTION REGARDING THE ALESSANDRO WEST CORRIDOR IMPROVEMENT PROJECT WITHOUT UNDERGROUNDING OF THE OVERHEAD UTILITIES. Project Administrator Ryan Gayler noted that at the request of Council, staff was directed to explore the idea of including the undergrounding of overhead utilities with the street and parking improvements for the Alessandro West Corridor. The staff report discusses a couple of different alternatives for the undergrounding, along with estimated costs, and ultimately, staff recommended proceeding with the project without the undergrounding component due to budget constraints. Mayor Pro Tem Jonathan pointed out that the staff report states it was due to budget and time constraints. Mr. Gayler agreed. Mayor Harnik said the undergrounding could add 1 to 11 years to the construction schedule of Alessandro West. Responding to question, Mr. Gayler said the cost could go up to $6.4 million if it did the section over San Pablo. Councilmember Nestande stated the undergrounding of the utilities is important and something that has to be done, but she wished it would cost less money. Councilmember Kelly believed the questions that Council should be asking are, if it thought the undergrounding needed to be done at some point and time, and is it ever going to cost less. 25 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING OCTOBER 12, 2017 DRAFT Councilmember Weber replied the undergrounding would need to be done eventually, and Councilmember Nestande stated she believed the cost would go up. Mayor Harnik shared, she didn't believe undergrounding needed to be done, but when looking at the Strategic Plan and General Plan Update, those plans include undergrounding throughout the City. She wondered if this was a need or something that would be aesthetically more pleasing. Councilmember Kelly asked about the status of developing the City's Master Plan for Undergrounding. Mayor Pro Tem Jonathan reported the City obtained a consultant, and he is doing his analysis and expects to have a report in January that would address the long-term undergrounding throughout the City of Palm Desert. He said the Undergrounding Committee met with him and conveyed to him their thoughts, history, etc. He believed there will be alternative ways for undergrounding those line, including others; however, he didn't think it was prudent to spend City funds right now until those options are explored. He sensed the City could move forward with Alessandro West, which has been in process for about 20 years and not compromise the City's ability to underground at a later time without a significant difference in cost. He said it will cost whatever it's going to cost whether the street is in or not, or it may be at a higher cost, but it won't be significant. Councilmember Nestande asked what other types of technology might be there in the future for undergrounding utilities. Mayor Pro Tem Jonathan replied there may be other technologies for delivery of electricity or other energy sources. Further responding, he said it was possible that there would be no need for transmission lines, but the industry wasn't there yet with energy, but as solar and storage of electricity, including the use of batteries increases in popularity, it could be that there would be less use. He said the City may not need to move forward with undergrounding until that variable is taken into consideration. Councilmember Weber agreed, stating things are changing with electricity very quickly that one day the Council will look back and laugh that it was worried so much about the silly lines in the air. She said all one needed was a battery invented over night and the playing field would be changed. She questioned what would happen if the City didn't move forward with this project, because people along this area are waiting for this change to happen and the City has been dealing with it for 20 years. Therefore, she would have to agree to move forward with the project. 26 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING OCTOBER 12, 2017 DRAFT Mayor Harnik said it didn't make sense to keep waiting, because this was not only about cost, in that she wouldn't want to rip out the street surface after it's been constructed, and there is a time issue there as well. If the consultant's report will be done by January, she questioned why not wait until then to make a decision, because it may contain a solution it can incorporate into Alessandro West. She said the area was very unsightly, so she felt Council needed to get more information before moving forward. Mayor Pro Tem Jonathan asked staff if they could move forward with aspects of the project without addressing the undergrounding. In other words, if Council waits until January to address undergrounding, would that slow down the progress with Alessandro West. Mr. Gayler said it would to a certain degree, because if it's decided to underground the utilities, there would need to be revisions to the design to accommodate the above ground transformers and other infrastructure. Further responding, he said the design and plans for the project are substantially complete at this point. Mayor Harnik said it would be prudent to wait four months to see if the City would be spending $5 million. Mayor Pro Tem Jonathan requested staff contact the consultant to ensure he specifically addresses the Alessandro lines in his analysis. Ms. Aylaian interjected, stating she didn't want to hold out any false hope, because the City has a goal of undergrounding of utilities, which is something it aspires to do, and it would probably be the only city in the United States that is willing to do it. However, staff is focusing on funding mechanisms, such that undergrounding can be accomplished by business districts or residential neighborhoods who band together to tax themselves. There has never been any vision that the City would pay or be able to pay, or come up with a program with Edison that would allow city public funds to cover the undergrounding of utilities everywhere. Therefore, if Council is holding out hope that the Master Plan will identify some way that this can be done along the Corridor, she didn't want to mislead the Council to thinking that would be true. It would be either the City pays for it all or the business owners or property owners will form an assessment district to tax themselves to pay for at least a portion of it. Councilmember Nestande shared that on her electricity bill it shows she pays $60 to Edison and they get to decide how to spend those funds for the community. She asked if it was possible to negotiate with Edison to use those taxpayer funds to underground the utilities. 27 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING OCTOBER 12, 2017 DRAFT Mayor Harnik pointed out that if the City went to a Community Choice Aggregation (CCA) Program, Palm Desert automatically gets to decide how that money would be spend, which is the beauty of a CCA. Ms. Aylaian stated that Edison has undergrounding programs and Palm Desert has participated with them in the past, in that it has already used all the monies available to Palm Desert. The discretionary funding available to negotiate with Edison or a CCA, will probably take a number of years to reach a master amount that would allow the City to do projects. It was not impossible, but she didn't want the Council to take a four -month delay and think it would be on its way with a simple solution. Councilmember Kelly asked if it was within the consultants scope of work, or has the question been asked, if there are priority locations for undergrounding within the City it might choose to fund, because of the visibility or proximity to key areas it wants to develop. Part of what is troublesome, is that this issue has cropped up for one location and the potential price tag for undergrounding is very big. Mayor Pro Tem Jonathan responded that the answer is no, stating the main issue with undergrounding is funding. The main objective for the consultant is to identify methodologies and options with regard to funding. The scope of work did not involve prioritizing the expenditure of City funds, because that was not an option; the price tag is very high. He said not to take exception to what the City Manager ever says, but there are cities that have undergrounded completely, such as the cities of Rancho Mirage and Indian Wells, and San Diego is going through that process, including others. He believed that if other could do it, so could Palm Desert. However, he agreed that if the City identifies a mechanism, it may involve assessment districts, utility taxes, etc., but it would be a very long-term process. What Council was considering today is separate from the consultant's work, which is to identify sources other than City funds for undergrounding utilities throughout the City, and the analysis may not be applicable to the issue before the City Council this evening. Mayor Harnik stated that if the City ever wanted to create a poster image of what bad transmission and utility lines looked like, it could take a picture of the Alessandro West alley. She said the City wants the Highway 111 Corridor to look good, so she questioned if the City was going to help and be part of the solution, or is it going to step back and wait for others to get it together. She reminded everyone that this project involved partners of utilities of different sorts, and at a certain point, the City needed to take a step forward. Additionally, the City encourages businesses to fix up their corridor, yet there is this mess behind them. 28 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING OCTOBER 12, 2017 Mayor Pro Tem Jonathan agreed, stating Mayor Harnik's comments resonated with him, and he wondered if the City needed to expand this issue to the Highway 111 Corridor and to the City Core, and as suggested, prioritize the areas, but first it needs to find out how much it will cost. It would be an appropriate thing for the City to do, however, he would hate to delay this project. Councilmember Weber said the City couldn't pay for everyone's undergrounding, and she's mindful of it every time she drives down Portola Avenue, north of Fred Waring. She recalled the City voted to underground that small section, and it was never done, stating that area is tragically ugly. She said there are several unsightly areas around town, but as a City, to pay for it all, there needs to be some assurances that the cost would be recovered with all the influx of business. Mayor Harnik agreed, but she wasn't suggesting that the City pay for it all, it was in addition to other funding mechanisms. Councilmember Kelly suggested proceeding with the project as recommended by staff, and when it comes time to setting goals for next year, it should put on the table taking a comprehensive look at sites that should be prioritized for undergrounding, even if that includes a City investment. If it becomes a goal for next year, it can incorporate whatever it learns from the consultant's report. After this evenings full discussion, it doesn't make sense to completely hold up this project, and as pointed out by staff, if they have to tear up some pavement at a later time, that's what they'll do. Councilmember Weber said it wasn't just about the pavement, it will also include the redesign and other items. Mr. Gayler added there would have to make room for the infrastructure for the transformers and other boxes. Mayor Pro Tem Jonathan explained that Councilmember Kelly was talking about the incremental cost that if it didn't do it now, all those things would take place anyway. The only thing that would be incremental work would be that the road was already laid down and it would have to be brought up in order to facilitate the undergrounding. Councilmember Nestande asked if Councilmember Kelly was suggesting moving forward, and in a year if Council decides to underground, the City would tear up everything again. Councilmember Kelly replied that the tearing up wouldn't happen in a year. She explained that this was a big potential expense, and she couldn't justify taking an extraordinary step of funding it without stepping back to look at the 29 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING OCTOBER 12, 2017 DRAFT whole picture to see if there is a higher priority location in the City, even though she is a fan of undergrounding. Councilmember Nestande asked if that could be decided sooner rather than later, to see if this project truly warrants the priority. Councilmember Kelly said she was truly mindful that the City has already defined quite a few goals for this year, which is quickly disappearing. Ms. Aylaian was in agreement with Councilmember Kelly's suggestion, and encouraged the Council to broaden the goal a little bit more. As Council defines its goals, and if its thinking of locations where the City wants to spend $4 million to upgrade the Highway 111 Corridor or provide incentives for new businesses or development, those funds could produce a visible difference to the front door of businesses rather than to the back door, which is seldom seen. Looking at this in context, not only with other undergrounding projects, but with what the City is trying to accomplish, which originally was to provide more parking so that those businesses could expand, the City might be able to apply the money to facilitate expansion of businesses or redevelopment of an area, by looking at this issue more broadly. Mayor Harnik reiterated, she wasn't suggesting that the City pay for undergrounding, which some how has been picked up as the message, because she didn't think that was the answer. However, there may be a portion of it that the City could pick up as it has when going through the study and engineering reports. Her concern was about doing a project and later ripping it up, because undergrounding is one of the City's goals, which she believed the entire City Council voted in favor of adopting. Therefore, if the City was adopting a plan that it's not going to use, then shelve it. Additionally, the City has a Master Plan Update that includes undergrounding, so how does the City best use those tools and come up with a viable answer. She's not sure about doing a project and later digging it up, which not only cost money, but it takes time and creates an inconvenience. Councilmember Kelly asked Mayor Harnik if she was suggesting that the City engage the property owners to flip part of the bill. Mayor Harnik said that wouldn't be a bad idea. However, she thought the consultant would be providing information that would be significant to this discussion. Mayor Pro Tem Jonathan explained that potentially it could, but the consultant is analyzing all viable options for funding the undergrounding throughout Palm Desert that will likely utilize some City funds, but for the most part it will not. However, he believed the City was moving forward with 30 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING OCTOBER 12, 2017 DRAFT the Strategic Plan and Master Plan with the goal of undergrounding, which was more of a side note. The process of undergrounding will take many, many years, and it will involve complicated funding mechanisms, such as assessment districts, potential utility fees, potential taxes, etc. The question was whether the City wanted to do something at this location now. The reason he was in agreement with Councilmember Kelly and the City Manager, in that by jumping in now at this location, it was not looking at the bigger picture or the City's vision. He said if the City decides to invest $4 million, $10 million, or $30 million in order to move the vision forward, perhaps undergrounding utility lines is best or expanding the Facade Enhancement Program is a more viable option, or building parking lots is more effective. He agreed it would not be ideal to come at a later time and rip everything out, but there's nothing ideal about this situation or that it has been going on for 20 years. Mayor Harnik said the City's waited 20 years, so would it be bad to wait one more year. Mayor Pro Tem Jonathan responded that if you asked those shop owners, they would say yes. Mayor Harnik said she thought they had a lot of parking already. She said the City is also partners with Southern California Edison and Spectrum or Frontier in this project, questioning if there was a way to run a conduit that could be used a later time. Mr. Greenwood replied that would be wishful thinking. It's a good idea, and it should be possible, but it's not, because of the standards that utilities hold, which change and are unpredictable. He added that without a specific design, half of what they try to do would go to waste. Mayor Harnik shared in the desire to see these projects completed, but spending the money twice was very troubling to her. Councilmember Kelly agreed, stating she started out where Mayor Harnik is, but what has moved her is the following. To approve staff's recommendation didn't mean the Council was ignoring the Strategic Plan, it meant the Council recognizes there are a lot of pieces within the Strategic Plan and it needs to step back before it spends $5 million to figure out which part of it most warrants those funds. She would not hold up the proposed improvements while it continues to investigate and learn more. Mayor Pro Tem Jonathan concurred, stating he was ready to move forward with staff's recommendation in hopes of looking at this issue in a broader picture as part of the budget and goal setting for next fiscal year. 31 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING OCTOBER 12, 2017 DRAFT Councilmember Kelly moved to, by Minute Motion, direct staff to proceed with the Alessandro West Corridor Improvement Project (Alessandro West) without the undergrounding of overhead utilities — project is included in FY 2017-2018 Capital Improvement Project Budget and will be reimbursed by restricted funds set aside for this purpose. Motion was seconded by Jonathan. Mayor Harnik said it was a difficult thing to spend $1.4 million, knowing it may later have to rip it apart and have to spend another $1.4 million, and there is a good chance the amount will go beyond, because that's generally the case with these kinds of projects. Mayor Harnik called for the vote and the motion carried by a 4-1 vote (AYES: Jonathan, Kelly, Weber, and Harnik; NOES: Nestande). XIX. PUBLIC HEARINGS None XX. ADJOURNMENT With City Council concurrence, Mayor Harnik adjourned the meeting at 6:30 p.m. ATTEST: RACHELLE D. KLASSEN, CITY CLERK CITY OF PALM DESERT, CALIFORNIA JAN C. HARNIK, MAYOR 32