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HomeMy WebLinkAboutPrelim - City - 09-28-2017DRAFT PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING THURSDAY, SEPTEMBER 28, 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 3:00 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 Lt. Coby Webb, Asst. Chief, Palm Desert Police/Riverside Co. Sheriffs Dept. M. Gloria Sanchez, Records Technician III. ORAL COMMUNICATIONS - A (CLOSED SESSION ITEMS) None IV. ADJOURN TO CLOSED SESSION Request for Closed Session: A. Conference with Real Property Negotiator pursuant to Government Code Section 54956.8: DRAFT PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING SEPTEMBER 28, 2017 1) Property: 74537 King Fisher Circle (APN 624-441-007), Palm Desert Negotiating Parties: Agency: Lauri Aylaian/Janet M. Moore/City of Palm Desert/ Palm Desert Housing Authority Property Owner: Terence J. Gillespie and Kellye J. Gillespie Under Negotiation: x Price x Terms of Payment 2) Property: 74600 King Fisher Circle (APN 624-440-014), Palm Desert Negotiating Parties: Agency: Lauri Aylaian/Janet M. Moore/City of Palm Desert/ Palm Desert Housing Authority Property Owner: Alicia K. Eades Under Negotiation: x Price x Terms of Payment 3) 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 4) 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 significant exposure to litigation pursuant to Government Code Section 54956.9(d)(2): Number of potential cases: 2 Prior to City Council adjourning to Closed Session, Mr. Hargreaves announced that one of the items to be considered there, under Item B - Potential Litigation, refers to a letter the City received from Mr. Kevin Shenkman regarding alleged violation of the Voting Rights Act. With City Council concurrence, Mayor Harnik adjourned the meeting to Closed Session at 3:01 p.m. She reconvened the meeting at 4:03 p.m. 2 DRAFT PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING SEPTEMBER 28, 2017 V. RECONVENE REGULAR MEETING - 4:00 P.M. A. REPORT ON ACTION FROM CLOSED SESSION. Mr. Hargreaves stated that direction was given during Closed Session but no reportable action was taken. VI. PLEDGE OF ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA - Palm Desert Youth Committee Member Patricia Dan VII. INVOCATION - Councilmember Kathleen Kelly VIII. AWARDS AND PRESENTATIONS A. PRESENTATION OF UPDATE TO THE CITY COUNCIL ON PALM DESERT YOUTH COMMITTEE ACTIVITIES BY MEMBER PATRICIA DAN. Ms. Dan reported that the Youth Committee is happy to be back at work, conducting their first meeting of the school year on Monday, September 11, where they discussed many future events at which they'll participate. First one is the Y-Be-Fit Palm Desert on Sunday, October 1, followed by Relay For Life on Saturday, October 7, and then the Palm Desert Golf Cart Parade on Sunday, October 29. She said they're also planning to upscale the Committee's Anti -Bullying Subcommittee with Lincoln Elementary and looked forward to a successful season. Mayor Harnik thanked Ms. Dan and added that the Youth Committee does great things for the community. B. PRESENTATION OF PROCLAMATION DECLARING SEPTEMBER AS "PAIN AWARENESS MONTH" IN THE CITY OF PALM DESERT. On behalf of the entire City Council, Mayor Harnik presented the proclamation to Dr. Heather Gilmore, who graciously accepted and extended sincere appreciation for the recognition on behalf of the U. S. Pain Foundation. She herself was afflicted with a neurological chronic pain disease, which is the highest pain -rated disease over that of stage four cancer, amputation, etc. There are 100 million Americans living in chronic pain (1 in every 3), and while some people say they "suffer" with chronic pain, she preferred to say she "lives" with it. She has been disabled for over 10 years but currently works as a professor of public speaking at College of the Desert. She went on to describe the conditions of chronic pain and how it is rated by medical doctors. She commented that as with people afflicted with other conditions, such as cancer, those with chronic pain are looking for 3 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING SEPTEMBER 28, 2017 compassion and the same understanding. She further pointed out that the current opioid addiction epidemic that is receiving a lot of attention does not include chronic pain patients; however, they're being lumped together in that fight — they feel very strongly that they are patients, not addicts. Lastly, she announced that there is a fund-raiser being held for their organization this evening 5:00 - 8:30 p.m. at the local Haus of Poke off of Bob Hope Drive in Rancho Mirage, and she hoped to see everyone there. C. PRESENTATION OF PROCLAMATION DECLARING OCTOBER 2017 AS "FIRE PREVENTION AND MINI -MUSTER MONTH" IN THE CITY OF PALM DESERT. On behalf of the entire City Council, Mayor Harnik presented the proclamation to Mr. Mike Lewis, on behalf of the Historical Society of Palm Desert and as coordinator for this year's Mini -Muster program. He went on to provide some background on the very unique program, brought to Palm Desert from Tucson, Arizona, by the late Mrs. Jan Holmlund in 1983. Mini -Muster is active in five local schools where 3rd graders learn fire safety and awareness, mostly through field exercises. He thanked the City, City Councilmembers, and the many volunteers who help put on the program. Additionally, he extended thanks to Fire Station No. 33, the firefighters, the elementary school principals and teachers, the parent -teachers organization, and two Palm Desert Rotary Clubs. He said the children absolutely love the program, and he's proud to be part of it. Mayor Harnik observed that most current City Councilmembers have had the opportunity to watch the students during Mini -Muster, and it really is a great program that they all seem to love. She knows there have been a lot of positive results, adding that Councilmember Weber is very involved with it each year. If they haven't done so already, she urged the rest of her colleagues to go out and see it. Responding to comment, she asked Mr. Lewis to be sure and send a 2017 schedule to the City Council, which he agreed to provide. D. PRESENTATION TO THE CITY COUNCIL BY THE AMERICAN CANCER SOCIETY RELAY FOR LIFE. On behalf of the local American Cancer Society's (ACS) Relay For Life (RFL), City of Palm Desert Senior Office Assistant Janine Judy offered that she is a 10-year volunteer for the event, which she thoroughly enjoyed. She noted that RFL is the ACS's premier fund-raiser, with funds being raised for local free programs in the Coachella Valley, including rides to treatment, the wig bank, breast cancer support, the "Look Good, Feel Better" program, and the call center that provides 24/7 support all 365 days of the year — 1-800-227-2345. She thanked the City Council for its generous donation this past year to fund these local programs. Further, she thanked City 4 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING SEPTEMBER 28, 2017 DRAFT employees for their generosity in donating toward various fund-raisers held at the City; employees have raised almost $9,000 since 2012. This year's RFL event is being held Saturday, October 7, in Civic Center Park, and she invited the public to this free event. The day begins with a Survivor Breakfast at 9:00 a.m. followed by the event kickoff at 10:00 a.m. Ms. Jennifer Heggie, ACS Community Development Manager, reiterated Ms. Judy's sentiments. She went on to also thank the City Council for its support over the many years, adding that many weren't aware that there is a local ACS office near City Hall on Fred Waring Drive that is open five days/week. She wanted to be sure Councilmembers knew the doors were open there and re-emphasized that the services of transportation, lodging, and wig bank at the Lucy Curci Cancer Center at Eisenhower Medical Center are all free. Because of RFL and donations to it, those funds work right here for everyone locally. She presented an engraved plaque to the City Council in honor of their longstanding support and looked forward to seeing everyone on October 7 at RFL. PRESENTATION TO THE CITY COUNCIL BY THE FIRST TEE OF THE COACHELLA VALLEY EXECUTIVE DIRECTOR TIM SKOGEN. On behalf of The First Tee of the Coachella Valley, Board Member, volunteer coach, and Palm Desert resident Jim Kane addressed the City Council. He related that 2017 marked the 10t' anniversary of the chartering of The First Tee at the Cook Street Golf Center, an idea that originated with the late Dick Kelly, former Palm Desert Councilmember and Mayor. He and Fund Development Coordinator (liana Thomas presented a brief video illustrating program benefits. Mr. Kane said the program had come a long way in 10 years. In fact, this past year two young ladies, First Tee participants, Madison Rincon and Dana Condon, who are students at Palm Desert High School, not only qualified for the National Tournament at Pebble Beach, California, to play alongside legendary members of the senior tour, they made the cut and both finished in the top 10 in their pro -am competition. While golf is the attraction, he went on to say, it's not the main focus at The First Tee. It's character development, applying the nine core values of honesty, integrity, sportsmanship, respect, confidence, responsibility, perseverance, courtesy, and judgment. He remarked that First Tee knows very well that the City Council has a lot of work before it and many agencies vying for their attention and support, but today First Tee wanted to offer a reminder that the facility on Cook Street is a very valuable local resource committed to developing future Palm Desert citizens — not just as good golfers but as better people. He closed by thanking City Councilmembers for their past and future support and the opportunity to be here today. 5 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING SEPTEMBER 28, 2017 IX. ORAL COMMUNICATIONS - B MR. ED WALSH, Vice President of the Joslyn Center Board, Palm Desert, came forward to introduce new Executive Director Jack Newby. First, he wanted to thank the City of Palm Desert for its continued support of the Joslyn Center, which means so much to the Board; they treasure and value the longstanding relationship greatly. Without funding like received from the City of Palm Desert, the Center would not be able to provide the array of services and programs for the older adult residents of the City. He went on to say that Ms. Aurora Wilson, Board President, was unable to be at today's meeting, as she was away on College of the Desert Board business. She sent some remarks, which he read for the record. The Center received more than 50 applicants for the Executive Director position to replace the former Executive Director and dear friend Lee Vanderbeck. A selection committee was formed, and we would like to thank both Councilmember Kathleen Kelly and your City Manager for their participation on the committee and your Human Resources Director for her assistance in the process. We narrowed the applications to five finalists, and Jack was selected. He has an outstanding background, including his last position as the Director of Development and Marketing at the Mizell Center. We are so pleased that Jack has come in and just absolutely hit the ground running. MR. JACK NEWBY, Executive Director, Joslyn Center, Palm Desert, expressed how impressed he was by the interest and advocacy of the Members of the Palm Desert City Council in the Joslyn Center and its mission. He, too, related how much the City's support was appreciated for all the programs and services. He said that so often now while researching the subject, words like `avalanche' or 'a tsunami of seniors' come up; already in Palm Desert they're seeing about 40% of the population being over age 60. The Joslyn Center's purpose is to serve that very population — find out how best they can be served as the baby boomers (from age 55 to in their 70s) age. They're finding new programs and services for the Joslyn, particularly the Wellness Center in the works right now. He thanked City Council both for the confidence shown in him and was most honored in being selected as the new Executive Director and for all the support. MR. C. ROY ARGALL, Deep Canyon Road, Palm Desert, came forward to relate a personal experience and to ask for consideration of a new regulation. As a full- time resident, he'd previously signed up for a program with Southern California Edison that during peak power use times in the region, his air conditioning system could be deactivated to reduce drain on the grid. However, it happened recently when he was in a great deal of pain and ordered to rest in bed, and the issue was compounded by having his air conditioning shut down, per his prior agreement, as the temperature inside his home continued to climb to nearly 90 degrees. Meanwhile, he'd also observed during the summer months that stores on El Paseo leave their entry doors wide open with cold air flooding into the street. When he 6 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING SEPTEMBER 28, 2017 inquired about this occurrence to both the power company and the stores he observed, the stores were empathetic to the issue and had him close the door; Edison's response was that as long as the parties could pay their electric bill, it didn't matter how low they set the thermostat or whether or not they left the doors open while they did so. He moved here seven years ago from New York City, which has a regulation prohibiting store doors being left open and wasting power. He could abide restaurants using this tactic but was very opposed to retail stores doing so, especially when residential customers are asked to conserve. He implored Palm Desert's City Council take up a regulation to prohibit retail stores from leaving their doors open and wasting energy. X. MAYOR AND COUNCILMEMBER REPORTS & REMARKS TO THE COMMUNITY A. Mayor Pro Tem Sabbv Jonathan Committee Reports and General Comments. Following are the events highlighted by Mayor Pro Tem Jonathan at this meeting: 1. Coachella Valley Mountains Conservancy - filled in for Councilmember Weber at the Conservancy's September 11 meeting. Learned that the Conservancy awarded City of Coachella several hundred thousand dollars to assist with their master drainage plan. Poll was taken amongst members, and no other city has received funding from the Conservancy; they all pay for such projects on their own. Representing City of Palm Desert, he voted against the motion, but it still passed. 2. Palm Desert Area Chamber of Commerce - attended monthly breakfast held at La Quinta High School's Culinary Arts facility. Delicious meal was served and was very interesting to participate there. 3. Leaaue of California Cities Annual Conference - attended along with Councilmember Kelly and a good representation of City staff where all learned a lot. Results of the attendance was shared at a City Council Study Session on Friday, September 22, and the knowledge gained will be used to the City's betterment. 4. Utility Underaroundina Ad Hoc Subcommittee - got together primarily as a courtesy to members who spent about a year developing a recommendation. Met with consultant, who is underway with a study; Council authorized up to $250,000 for consultant to develop a plan on how to move forward with undergrounding utilities in the remainder of the City. Consultant wanted to get some feedback and shared where 7 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING SEPTEMBER 28, 2017 DRAFT he was going. Hopefully, the whole City Council will receive his report in January. 5. Palm Springs "State of the City" Event - attended along with some of his colleagues; always interesting to see Mayor Moon and the entertainment he brought along. 6. CVAG Homelessness Committee - this Coachella Valley Association of Governments Committee met on September 20. Of note is that CVAG is recommending its Executive Committee enter into contract with Path of Life Ministries for $1.3 million, which he was happy to report instead of the original anticipated funding of about $865,000. Particularly of interest to City of Palm Desert is that because of the increased funding, services provided by Path of Life will be expanded both in quantity and geographically. That meant Path of Life will have a presence in Palm Desert and is already meeting regularly with the City's Police Department/Sheriff's Department to develop a working relationship. 7. BIA (Building Industry Association) — participated as a panelist during their recent standing -room -only lunch meeting where the discussion centered on homelessness. Helped spread the word and created some networking opportunities to address this very important and complex issue. 8. City Audit, Investment & Finance Committee - attended meeting this week, noting City is on course with this year's budget and doing quite well. 9. Desert Willow Golf Resort Advisory Task Force - City Council voted to form this task force to give, particularly residents and others, an opportunity to provide feedback on the operations, specifically on the resident card, pricing, and availability of tee times for residents, etc. First meeting recently held, expecting to hold two or three more meetings and then report any recommendations to the entire City Council. 10. All-Vallev Mayors Lunch - sponsored by the Greater Coachella Valley Chamber of Commerce and held today at Fantasy Springs Resort. Mayor Harnik did a great job for the City. 11. Short -Term Rentals (STRs) - met with numerous people regarding Short -Term Rentals (STRs), including concerned homeowners as well as industry representatives. 8 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING SEPTEMBER 28, 2017 DRAFT 12. Parks & Recreation Commission - Responding to Mayor Harnik's request later on the agenda, Mayor Pro Tem Jonathan reported he attended the Commission Meeting earlier in the month where Pickleball was addressed. Staff had developed a Capital Improvement Plan for the Pickleball Courts, but he believed the City was taking a short time-out before proceeding to make sure that the long-term needs were being addressed along with short-term. The project is in motion. B. Councilmember Kathleen Kelly Committee Reports and General Comments. 1. League of California Cities - a tremendously important organization that keeps cities alert to potential State legislation that can impact at the city level — our primary advocacy tool. It also accomplishes some tremendous workshops and training where best practices and common problems can be addressed. She was privileged to attend this year's Conference, commending Ms. Aylaian for making sure that key staff was able to also attend and noting that it enabled Councilmembers to interact with staff immediately after sessions and strategize over context. She attended sessions regarding economic development, free hospital emergency medical/ambulance services, and homelessness, which is becoming a Statewide crisis and a top priority for the League. 2. CVAG Homelessness Committee - also attending CVAG's Homelessness Committee meetings as the City Council's appointed Alternate and noted that everyone should be extremely thankful and proud of the leadership provided there by Mayor Pro Tem Jonathan, vital to the creation of a program that holds great promise. She said the well -researched premise is that putting people into housing first generates much better results in addressing the challenges of addiction or mental illness, or other contributing issues. She reiterated her gratefulness for Mayor Pro Tem Jonathan's leadership, along with the Committee's itself, which has just re-elected Mayor Pro Tem Jonathan Committee Chair for another year. 3. Short -Term Rentals (STRs' — noted that some people here at today's regular City Council Meeting were also in attendance yesterday for the subject Study Session. She reminded public about the two upcoming occasions for public hearings where people can share their experience and perspective: Tuesday, October 3, at 6:00 p.m. - Planning Commission; Thursday, October 26, at 4:00 p.m. - City Council. Constituents have been encouraged to submit their experience and perceptions in writing, and she further encouraged the public to come out to the public hearings and participate there — it 9 DRAFT PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING SEPTEMBER 28, 2017 does have an impact and is meaningful to hear from the public in a context where follow-up questions can be asked. C. Councilmember Gina Nestande Committee Reports and General Comments. 1. El Paseo Master Planning - met with City's consultant, Gibbs Planning Group, Inc., regarding re -designing the streets, sidewalks; asking for suggestions on the types of shops, restaurants, etc., are desired there. She shared her input and welcomed the public to e-mail her with ideas, suggestions they have for El Paseo. 2. Economic Development Strategic Plan - she, along with her City Council colleagues, met with the Natelson Dale Group, Inc., the City's consultant for an updated Economic Development Strategic Plan. Here again, opinions were being sought regarding the type of economic activity that should be pursued for the City — how can it be made more a year-round community. She welcomed the public's input and ideas for this project too. D. Councilmember Susan Marie Weber Meeting Summaries Report for the Period of August 28 - September 17, 2017. With City Council concurrence, Councilmember Weber's Meeting Summaries Report was received and filed. 1. Councilmember Weber referred to her colleagues' remarks here this afternoon, noting that City Council has been very busy in what would have normally been a relatively quiet summertime. She added that whenever City Council is that busy, City staff is also very busy, because the Councilmembers do everything with the help of staff — research and relevant information for constituent meetings. She reminded the public that City Councilmembers are extremely accessible — available whenever a constituent wants to speak with them simply by calling City Hall and asking for the City Councilmember of their choice. Arrangements will then be made at the constituent's convenience to meet with any Councilmember to discuss any issue of concern. Everyone has been hearing from the community through such meetings, written correspondence, or telephone calls, etc. She observed that Palm Desert is a community of involvement, and she was very honored to be able to serve on a City Council with this level of commitment. She added that her meetings are posted online so they're easily accessible. 2. Building Industry Association (BIA) - she noted that all five Councilmembers were in attendance for the presentation on homelessness, which is a huge issue. She added that all were very 10 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING SEPTEMBER 28, 2017 DRAFT grateful for Mayor Pro Tem Jonathan's contribution to the presentation that was very educational. 3. 29 Palms - 7th Marine Regiment's 100`h Anniversary - she and Mayor Harnik attended the 100th anniversary celebration. She recalled for everyone that the City adopted the Regiment and likes to participate in their activities in whatever way it can. City provided lunch for the event to quite a crowd of attendees. She added that two City staff members also went along to participate in the day, which was most appreciated. E. Mayor Jan C. Harnik Committee Reports and General Comments. 1. 29 Palms - 7th Marine Regiment's 100" Anniversary - agreed that it was a wonderful event, estimating that there were approximately 1,500 people, Marines and their families were able to enjoy a barbecue and a nice night off. 2. Cal State University, San Bernardino - Palm Desert Campus - attended the fourth annual Convocation, which signified the fourth freshman class now starting at CSUSB-PDC. She was so glad to see all the young people energized and ready to go. 3. Citv's First Community Yard Sale - noted the City held it's first Community Yard Sale. People came to purchase used items that would have otherwise ended up in another yard sale. Further, she believed staff had decided to donate proceeds toward relief for Hurricanes Harvey, Irma, and Maria. 4. Convention & Visitors Bureau (CVB) - recent meeting held where the group has really come a long way with a goal of creating the Coachella Valley as the "Outdoor Adventure Capital of Southern California," with more trails, hiking, biking, and outside activities. 5. Student of the Month Breakfasts - with new school year, Student of the Month Breakfasts are back, and it's great to see those students honored for their achievements. F. City Council Requests for Action. 1. Freedom Park Pickleball - Mayor Harnik asked for an update on the facilities, as she's recently received a couple of phone calls about the status. She recalled having something in place so they could be updated; but evidently, it hadn't occurred yet. 11 DRAFT PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING SEPTEMBER 28, 2017 Ms. Aylaian said it was on her list of things to meet with the Mayor and Mayor Pro Tem about tomorrow morning. (Please see also Mayor Pro Tem Jonathan's report above, regarding the Parks & Recreation Commission Meeting for further information.) 2. SprinaHill Suites - Mayor Harnik observed that it seemed like the hotel property across the wash from Whole Foods was moving along then came to a screeching halt. She asked for a report about this project. Ms. Aylaian responded that the project was not halted; they are continuing to progress, and staff will provide a more detailed report at the next City Council Meeting. 3. Donation to Victims of Hurricane Disasters - Mayor Harnik asked if it would be possible to add to this meeting's agenda, by 4/5ths vote, an item to make a donation to hurricane victims. Councilmember Weber pointed out that the City put on its website a link to disaster relief so that individual community members could donate to victims easily rather than the City Council. She added that community members could take it as a tax deduction. Mayor Harnik answered she was well aware of that effort, noting that City staff also conducted a pizza lunch fund-raiser where proceeds were contributed to the cause. Mr. Hargreaves noted that in order to add to the agenda, one of the findings that needed to be made was that an issue arose after posting of the agenda, which may be problematic here. He felt placing an item on the next agenda would be more appropriate. Mayor Harnik asked to make sure the item is on the next meeting agenda. 4. AB 485 - Pet Stores - Councilmember Kelly said she was representing the City at yesterday's Coachella Valley Animal Campus Board Meeting in Thousand Palms and was pleased to learn that the State Legislature has passed AB 485, which, if signed by the Governor, will prohibit pet stores from selling dogs, cats, or rabbits acquired from any source other than rescue groups. She was glad that this was being addressed at the State level, but her cursory review of the matter indicated that implementation does not happen until 2019 if the legislation is signed. She asked staff to assess this legislation and whether or not it may be possible by ordinance to mirror the requirements with earlier implementation. 12 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING SEPTEMBER 28, 2017 DRAFT Ms. Aylaian agreed to take a look at the matter and come back to the full City Council for direction. 5. Broadcasting Council Chamber Meetings - Councilmember Weber asked for staff to investigate the possibility of broadcasting every meeting that occurs in the Council Chamber online and eventually on the City website. This way the community at -large could see what's been going on with everything done by the City — Planning Commission Meetings and yesterday's City Council Short -Term Rentals Study Session. Those unable to come to City Hall in the middle of the afternoon because of their schedules are able to access these meetings; if not live, they can watch the archived video at a later date. She remarked that there have been some instances where some community members do not behave in a very respectable manner, and showing it online will remind them to keep a certain decorum at all times. She understood that there would be costs involved, particularly for closed -captioning; perhaps the sessions could be recorded, kept, then when budgeting starts up again, include those as part of the cost. Ms. Aylaian agreed to look into the request and bring information back to the City Council for action. 6. SB 1 - The Road Repair and Accountability Act - Mayor Harnik reported that there are many millions of dollars generated by SB 1. At RCTC's (Riverside County Transportation Commission) Budget and Implementation Meeting on Monday, they talked about another round of grants that are up for application. She acknowledged that they all come with certain strings, but they are grants that the City would like to benefit from; applications are due by October 15. G. City Council Consideration of Travel Requests/Reports. None XI. STAFF REPORTS AND REMARKS A. City Manager 1. City Manager's Meeting Summaries Report for the Period of August 28 - September 15, 2017. With City Council concurrence, the City Manager's Meeting Summaries Report was received and filed. 13 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING SEPTEMBER 28, 2017 City Attorney DRAFT Mr. Hargreaves reported litigation that the City was involved in over the daycare site at Gerald Ford Drive/Frank Sinatra Drive (WNRA Palm Desert 103, LP, v. City of Palm Desert, et al., Riverside County Superior Court, Case No. PSC 1400549) has been settled. We approved the Settlement Agreement some time ago, it's finally been implemented. So we now have that site; we also have the reimbursement, so that matter is complete. C. City Clerk 1. Announcement of Upcoming City Council Study Sessions. a) Thursday, October 19, 2017 - 2:00 p.m. - Council Chamber, regarding CV/Link. b) Thursday, October 26, 2017 - 2:00 p.m. - Administrative Conference Room, regarding Ambulance Services Cost Recovery. Ms. Klassen called attention to the schedule of upcoming Study Sessions, and City Councilmembers so noted. D. Public Safety 1. Fire Department None 2. Police Department None XII. CONSENT CALENDAR A. MINUTES of the Special City Council Meeting of September 7, 2017, and the Regular City Council Meeting of September 14, 2017. Rec: Approve as presented. B. CLAIMS AND DEMANDS AGAINST THE CITY TREASURY - Warrants Dated 8/24/2017, 8/25/2017 - 2, 8/31/2017, and 9/8/2017. Rec: Approve as presented. 14 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING SEPTEMBER 28, 2017 C. CLAIMS AND DEMANDS AGAINST THE CITY/HOUSING TREASURIES - Warrants Dated 9/1/2017 and 9/8/2017 (Joint Consideration with the Palm Desert Housing Authority). Rec: Approve as presented. D. APPLICATION FOR ALCOHOLIC BEVERAGE LICENSE by Dragon Sushi, 72261 Highway 111, Suite 131, Palm Desert. Rec: Receive and file. E. REQUEST FOR APPROVAL of Afghan by Karen and Tony Barone as the Public Art Component for Barkingham Pet Hotel California Located at 73650 Dinah Shore Drive (Lori Weiner/Barkingham Pet Hotel California, Applicant). Rec: By Minute Motion, approve Afghan by Karen and Tony Barone as the public art component for Barkingham Pet Hotel California located at 73650 Dinah Shore Drive, Palm Desert. F RESOLUTION NO. 2017 - 67 - A Resolution of the City Council of the City of Palm Desert, California, Setting Forth Its Findings and Authorizing the Destruction of Paper Records from the Department of Community Development/Planning, to Rely on the Electronic Record as the Official Record - Records from 1987-1995 (Exhibit "A"). Rec: Waive further reading and adopt. G. RESOLUTION NO. 2017 - 68 - A Resolution of the City Council of the City of Palm Desert, California, Setting Forth Its Findings and Authorizing the Destruction of Paper Records that Have Been Digitally Imaged from the Department of Finance, to Rely on the Electronic Record as the Official Record - Records from 2008/2009 through 2013/2014 (Exhibit "A"). Rec: Waive further reading and adopt. H. CITY COMMITTEE AND COMMISSION MEETING MINUTES. 1. Art In Public Places Commission Meetings of June 14 and July 12, 2017. 2. Marketing Committee Meeting of June 6, 2017. 3. Parks and Recreation Commission Meeting of May 2, 2017. Rec: Receive and file. 15 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING SEPTEMBER 28, 2017 DRAFT I. LETTER OF RESIGNATION from Deborah Hall — Parks and Recreation Commission. Rec: Receive with very sincere regret. J. LETTER OF RESIGNATION from Heather Buck — Oversight Board of the Successor Agency to the Palm Desert Redevelopment Agency. Rec: Receive with very sincere regret. K. REQUEST FOR APPOINTMENT of Robin McCormick, Economic Development Technician, to the Oversight Board of the Successor Agency to the Palm Desert Redevelopment Agency. Rec: By Minute Motion, appoint Robin McCormick, Economic Development Technician, to the Oversight Board of the Successor Agency to the Palm Desert Redevelopment Agency as the City's former Redevelopment Agency employee appointment, filling the vacancy left by the resignation of Heather Buck. L. REQUEST FOR APPROVAL of Portola Community Center Lease Agreement Modifications — Christopher's Clubhouse, Palm Desert Historical Society, and Malka and Jeff Alley. Rec: By Minute Motion, approve Portola Community Center Lease Modifications for Christopher's Clubhouse (Contract No. C35840), Palm Desert Historical Society (Contract No. C29150), and Malka and Jeff Alley (Contract No. C34880). Approved on a 4-0-1 vote (AYES: Jonathan, Kelly, Nestande, and Harnik; NOES: None; ABSTAINING: Weber). M. REQUEST FOR APPROVAL of the Assignment of Contract with Judicial Data Systems, Inc., to Data Ticket, Inc. (Contract No. C33842A). Rec: By Minute Motion, approve the assignment of Contract No. C33840 from Judicial Data Systems, Inc., Costa Mesa, California, to Data Ticket Inc., Newport Beach, California. 16 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING SEPTEMBER 28, 2017 DRAFT N. REQUEST FOR AUTHORIZATION for City Manager to Enter Into Agreement with Mr. Wallace V. Baker to Conduct Administrative Review Hearing Services for Contested Parking Citations, Animal Control Hearings, and Administrative Citation Hearings Within the Jurisdiction of the City of Palm Desert (Contract No. C36410). Rec: By Minute Motion: 1) Accept letter of resignation from Mr. James R. Butzbach; 2) authorize City Manager to enter into an agreement with Mr. Wallace V. Baker to conduct administrative review hearings services for contested parking citations, animal control hearings, and administrative citation hearings within jurisdiction of the City of Palm Desert — funds for Hearing Officer expenses are available in the FY 2017-2018 Community Development (4470) operating budget. O. REQUEST FOR AUTHORIZATION to Waive Bid Irregularities and Award Contract for H.V.A.C. Preventative Maintenance for City -Owned Facilities to Desert Air Conditioning, Inc., in the Amount of $51,268 (Contract No. C36370, Project No. 760-18). Rec: By Minute Motion: 1) Waive bid irregularities; 2) award subject contract to Desert Air Conditioning, Inc., Palm Springs, California, in the amount of $51,268; 3) authorize Director of Public Works to approve extra repair work and services in an amount not to exceed 20% of contract amount ($10,253.60); 4) authorize City Manager to execute said Agreement — funds are available in the various building repair and maintenance accounts. P REQUEST FOR RATIFICATION of the City Manager's Authorization for Additional Expenditures; Approval of Change Order No. 1 in the Amount of $13,720.63; and Acceptance of Work for Contract No. C35930 - Intersection Improvements at Bursera Way, Thrush Road, and Mountain View (Project No. 530-17) (All American Asphalt, Corona, CA). Rec: By Minute Motion: 1) Ratify the City Manager's authorization for additional expenditures and approve Change Order No. 1 in the amount of $13,720.63 to subject contract for construction of the Intersection Improvements at Bursera Way, Thrush Road, and Mountain View; 2) authorize the transfer of $13,720.63 from contingency to base for the project; 3) authorize the City Manager to execute Change Order No. 1; 4) accept the work as complete and authorize City Clerk to file a Notice of Completion for the subject project — funds are available in Account No. 2324690-5000450. 17 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING SEPTEMBER 28, 2017 DRAFT Q. REQUEST FOR AUTHORIZATION of Payment of Additional Funds to MSA Consulting, Inc., in the Amount of $38,850 for Continuance of Work on the Preservation of the Horizontal Control Monuments in Conjunction with the 2017 Street Resurfacing Project. Rec: By Minute Motion, authorize payment of additional funds to MSA Consulting, Inc., Rancho Mirage, California, in the amount of $38,850 for continuance of work on the preservation of the horizontal control monuments in conjunction with the 2017 Street Resurfacing Project — funds are available in Account No. 2134311-4332000 - Measure "A." R. REQUEST FOR APPROVAL of the 2017 Miracle On El Paseo Event and Sponsorship — Saturday, November 18 (Warren Jones/The Jones Group, Inc., Applicant). Rec: By Minute Motion, approve: 1) Miracle On El Paseo event scheduled for Saturday, November 18, 2017; 2) two-phase road closure plan on El Paseo from Highway 74 to Sage Lane; 3) consumption of alcoholic beverages on City -owned property pursuant to Palm Desert Municipal Code Section 9.58.040; 4) Sponsorship Agreement with The Jones Group, Inc., in the amount of $15,000 for the 2017 Miracle On El Paseo event (Contract No. C36420);5) expenditure in the amount of $15,000 payable to The Jones Group, Inc., from Account No. 1104416-4306201 for the sponsorship. S. REQUEST FOR APPROVAL of the 2017 Celebrate the Season Event at The Gardens On El Paseo — Friday, December 1. Rec: By Minute Motion, approve/authorize: 1) Celebrate the Season event at The Gardens On El Paseo on Friday, December 1, 2017; 2) Contract No. C36430A with Robert Sanchez, Chula Vista, California, in the amount of $1,500 for live entertainment during the event; 3) Mayor to execute aforementioned contract; 4) City Manager to make change to performer, if necessary; 5) City Manager to sign Promotional Agreement with The Gardens On El Paseo (Contract No. C36430B); 6) miscellaneous expenditures in an amount not to exceed $7,500 payable to various vendors for production of the event from Account No. 1104416-4306101 - City -Produced Events. 18 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING SEPTEMBER 28, 2017 T. REQUEST FOR APPROVAL of the 2018 Palm Desert Livewell Festival and Sponsorship —Saturday, January6 (Seth Cash/MyCityEveryday, Applicant). Rec: By Minute Motion, approve: 1) Sponsorship Agreement with Everydia Collective, LLC, dba MyCityEveryday in the amount of $5,000 for the 2018 Palm Desert Livewell Festival scheduled for Saturday, January 6 (Contract No. C36440); 2) expenditure in the amount of $5,000 payable to Everydia Collective, LLC, from Account No. 1104416-4306201 for the sponsorship; 3) waiver of park rental fees in the amount of $250; 4) temporary waiver of Palm Desert Municipal Code (P.D.M.C.) Section 11.01.140 - Amplified Sound; 5) temporary waiver of P.D.M.C. Section 11.01.080(0) - Placement of Advertising Signage in Parks; 6) temporary waiver of P.D.M.C. Section 11.01.080(Q) - Prohibited Conduct Generally in City Parks -Vendor Sales. Councilmember Weber registered her abstention on Item L, stating she serves on the Board of the Historical Society. Upon motion by Kelly, second by Nestande, and 5-0 vote of the City Council, the remainder of the Consent Calendar was approved as presented (AYES: Jonathan, Kelly, Nestande, Weber, and Harnik; NOES: None). XIII. CONSENT ITEMS HELD OVER None XIV. RESOLUTIONS A. RESOLUTION NO. 2017 - 69 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, REPEALING RESOLUTION NO. 2015-32, AND ADOPTING A RECORDS RETENTION SCHEDULE AND AUTHORIZING DESTRUCTION OF CERTAIN CITY RECORDS FOR THE CITY OF PALM DESERT. Councilmember Kelly moved to waive further reading and adopt Resolution No. 2017 - 69. Motion was seconded by Weber and carried by a 5-0 vote(AYES: Jonathan, Kelly, Nestande, Weber, and Harnik; NOES: None). XV. ORDINANCES A. For Introduction: None 19 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING SEPTEMBER 28, 2017 For Adoption: 1. ORDINANCE NO. 1328 - AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, ADDING CHAPTER 15.36 - ELECTRIC VEHICLE CHARGING STATIONS - TO THE PALM DESERT MUNICIPAL CODE - EXPEDITED PERMITTING PROCEDURES. Councilmember Kelly moved to waive further reading and adopt Ordinance No. 1328. Motion was seconded by Weber and carried by a 5-0 vote (AYES: Jonathan, Kelly, Nestande, Weber, and Harnik; NOES: None). 2. ORDINANCE NO. 1330 - AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, AMENDING PALM DESERT MUNICIPAL CODE SECTION 9.24.070 - RELATED TO WORK HOURS FOR CONSTRUCTION ACTIVITIES. Councilmember Nestande moved to waive further reading and adopt Ordinance No. 1330. Motion was seconded by Kelly and carried by a 4-1 vote (AYES: Kelly, Nestande, Weber, and Harnik; NOES: Jonathan). 3. ORDINANCE NO. 1331 - AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, APPROVING A ZONING ORDINANCE AMENDMENT TO REVISE PALM DESERT MUNICIPAL CODE CHAPTER 25.56 - SIGNS - AND MODIFY SECTION 25.99.020 - LAND USE DEFINITIONS - TO ALLOW FOR FREEWAY -ORIENTED MONUMENT SIGNS ON PLANNED COMMERCIAL DEVELOPMENTS ABUTTING INTERSTATE 10, Case No. ZOA 17-070 (Fountainhead Development, Applicant). Councilmember Kelly moved to waive further reading and adopt Ordinance No. 1331. Motion was seconded by Weber and carried by a 4-1 vote (AYES: Kelly, Nestande, Weber, and Harnik; NOES: Jonathan). XVI. NEW BUSINESS A. REQUEST FOR ADOPTION OF RESOLUTION, AMENDING FISCAL YEAR 2017-2018 FIVE-YEAR CAPITAL IMPROVEMENT BUDGET TO INCORPORATE THE MONTEREY AVENUE REPAVING PROJECT TO BE FUNDED BY SENATE BILL 1: THE ROAD REPAIR AND ACCOUNTABILITY ACT; AND FOR APPROVAL OF RELATED ACTIONS. Senior Management Analyst Heather Horning noted the staff report addressing Senate Bill 1, which will potentially provide additional funding for 20 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING SEPTEMBER 28, 2017 DRAFT road maintenance through the newly created Local Streets and Roads Program. Mayor Pro Tem Jonathan stated these funds were a bit of a windfall, and the recommendation from staff is to use $278,747 for routine road maintenance. Ms. Horning explained the City has to provide a project list to the California Transportation Commission (CTC) by October 15, and the project selected was to re -pave a section of Monterey Avenue that's in need of repair. The City is not married to the project if it finds another with a greater need, which can be changed out, but would need to be reported at the end of the year. Mayor Pro Tem Jonathan said he understood these funds can be used for other purposes such as, bicycle safety projects and pedestrian protection measures, etc., but since these funds were a bit of a windfall, he wondered why not use them for something more creative and special or for something that wasn't budgeted rather than for routine maintenance. Ms. Horning replied that the re -paving of Monterey Avenue was not budgeted, and it is a new project. She added staff did not get creative, because the amount of money received this year was quite small, but moving forward when the City gets more funds, they can get more creative. Councilmember Kelly commented that based on the staff report, she understood there has been some damage to this sector of Monterey from runoff water causing it to need maintenance sooner than expected. Ms. Horning agreed, and the reason this project was not on the Capital Improvement Program, is because the original proposed estimated life was longer than it has lasted. Staff believes the irrigation water that gets on that particular section of the road has deteriorated the pavement faster than originally thought. Councilmember Kelly pointed out that Monterey Avenue was a major thoroughfare, and the City should be grateful these funds will address something that needs to be done. Mayor Harnik asked if there was anything that could be done to mitigate the runoff of landscaping water from causing future damage. Ms. Horning replied staff will see what it can do. Councilmember Nestande moved to:1) Waive further reading and adopt Resolution No. 2017 - 70, amending the Fiscal Year 2017-2018 Five -Year Capital Improvement Program Budget to incorporate the Monterey Avenue Repaving - Whitewater Channel to Hovley Lane West, Project No. 668-18, to be funded by newly created Road Maintenance 21 r.. PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING SEPTEMBER 28, 2017 and Rehabilitation Account; 2) By Minute Motion: a) Appropriate $278,747 from Unobligated Gas Tax Fund to the Road Maintenance and Rehabilitation Account to be established by the Director of Finance; b) amend the FY 2017-2018 Budget to reflect the estimated revenue of $278,747 to the Road Maintenance and Rehabilitation Account. Motion was seconded by Weber and carried by a 5-0 vote (AYES: Jonathan, Kelly, Nestande, Weber, and Harnik; NOES: None). B. REQUEST FOR AUTHORIZATION TO SOLICIT PRE -QUALIFICATIONS FROM DESIGN -BUILD ENTITIES AND TO SOLICIT DESIGN -BUILD PROPOSALS FROM ENTITIES DEEMED TO BE QUALIFIED FOR THE DESIGN AND CONSTRUCTION OF THE SAN PABLO AVENUE CORRIDOR IMPROVEMENTS PROJECT (CONTRACT NO. C35520B). Senior Engineer Joel Montalvo noted the staff report and offered to answer questions. Mayor Pro Tem Jonathan stated there is a portion of San Pablo that will be deferred to Coachella Valley Association of Governments (CVAG), and that portion of San Pablo is important to the creation of additional parking options for the baseball fields. He asked if the City would be losing its authority by handing over to CVAG that portion. Mr. Montalvo responded staff provided the drawings to CVAG and they will be working with them to incorporate the City's concept plan. In fact, CVAG actually changed their concept in that area of design to accommodate the City. Further responding, he confirmed it included Magnesia Falls. Mayor Pro Tem Jonathan recalled entertaining creative ideas as possibilities for Magnesia Falls such as using a portion of that street for CV Link or road diet, so here again, will the City have the ability to provide input and direction and not lose control over that part of the project. Mr. Montalvo said he believed staff will have the opportunity to work with CVAG to give them recommendations on what the City wants to have done on Magnesia Falls. Mr. Greenwood offered that staff is working very closely with CVAG on the CV Link proposals for Palm Desert, and staff will be providing a study session to the Council on that soon. However, the construction of the San Pablo project will be operated and run by the City of Palm Desert, so it will have control. Mayor Pro Tem Jonathan noted Councilmembers have been attending other "States of the City" addresses and hearing they are getting all sorts of grants for making their cities more walkable, bicycle and pedestrian friendly, etc., and he assumes staff continuously explores opportunity for grant funding. 22 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING SEPTEMBER 28, 2017 Mr. Montalvo confirmed staff is always looking for grant opportunities. Mr. Greenwood explained that sometimes the City does projects that would qualify for funding, but they frequently involve delays that are measured in years, and he's not talking about one or two years, it's more like three to five years. Therefore, staff sometimes foregoes those grants in the interest of timeliness. Mayor Harnik stated the City recently qualified for a project, but it still needs to be approved by the Riverside County Transportation Commission (RCTC), and it also got in on a bicycle grant. Mr. Greenwood said the City qualified for SB 821 funding for a project, and Palm Desert is No. 1 on the list. Councilmember Kelly moved to, by Minute Motion: 1) Authorize staff to solicit pre - qualifications from design -build entities and to solicit design -build proposals from entities deemed to be qualified for the design and construction of the San Pablo Avenue Corridor Improvements; 2) appropriate $8.235 million from unobligated Capital Project Funds to Account No. 4514342-4400100 - SARDA Bond Project Funds. Motion was seconded by Nestande and carried by a 5-0 vote (AYES: Jonathan, Kelly, Nestande, Weber, and Harnik; NOES: None). XVII. CONTINUED BUSINESS A. REQUEST FOR AUTHORIZATION TO IMPLEMENT A COMMUNITY CHOICE AGGREGATION PROGRAM AND APPROVE THE DESERT CITIES ENERGY CHOICE JOINT POWERS AGREEMENT FOR SAME (Continued from the meetings of July 13, August 24, and September 7, 2017). Mr. Stendell recalled for the City Council that this item has been on the agenda numerous times, and this evenings recommendation is for Council to pass the Ordinance to second reading, however, there are a couple of items still outstanding. Therefore, staff is asking to hold the second reading of the Ordinance at the November meeting, at which time, staff will hopefully have the information. If it doesn't have the information, Council has full control of the second reading of that Ordinance, but it can't condition an Ordinance. He thanked the City Clerk for her guidance through this process in that she's led staff to this recommendation, which he believed was appropriate. However, the City Council can hold the second reading until the outstanding items are resolved, but it still kept the City at the table and CVAG is understanding of how staff couched this item. He said a memo was provided to the City Council stating CVAG has amended their original memo to clarify a couple of minor items and noted Ms. Katie Barrows from CVAG was available to answer questions. 23 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING SEPTEMBER 28, 2017 DRAFT Councilmember Kelly asked if the City anticipates the initially participating cities having a meeting between now and November 16, and if the City's representative may request amendments to the Joint Powers Agreement. Additionally, if it was possible for the City Council to give instructions to that representative, because she got confused when she heard the Ordinance couldn't be conditioned. She said it was her understanding Council can pass the Ordinance to second reading and still give some instructions to the designated representative. Mr. Stendell apologized for the confusion, but the answer is yes. Councilmember Nestande shared she enjoyed her conversation with Ms. Barrow's yesterday, as it was very informative. She said many of her constituents are asking how much of a savings will be on their energy bill, which she understands will be minimal, but one of the biggest benefits of the CCA is that people will have the option of having more green energy, but not necessarily saving the consumer money. In looking at her own bill, she noticed it's divided in two parts, questioning if the delivery charges and line charge will still be going to Edison, which is about 2/3 of the bill, and the 1/3 is for the energy itself. MS. KATIE BARROWS, CVAG's Director of Environmental Resources, confirmed that was correct. Councilmember Nestande said it was admirable the City was giving residents more options to go solar, but it's not necessarily going to lower energy bills. Mayor Pro Tem Jonathan responded that a modest reduction of three to five percent is expected, but the number depends on the negotiated contracts. He pointed out that savings is not the driving issue for most people, but for those that have $700 energy bills, it could turn into a $300 to $400 a year savings, but it's nominal. Also, the green energy option is not limited to solar, because there are all kinds of other options to improve the environment. Councilmember Nestande said she just wanted to have confirmation that the more green somebody tries to go, the less savings they will have on their energy bill. MS. BARROWS added that with the CCA, there will be a line item on the Edison Bill because they will continue to do the transmission, distribution, customer service and billing, but there would be a generation charge, which would be attributed to Desert Community Energy here in the Coachella Valley. Further, existing programs have a three to five percent savings, and in some cases more. The opportunity for savings is a choice and there would be at least two options for a customer where they could choose the 24 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING SEPTEMBER 28, 2017 lower -rate option, which is the driving force heard from all of the members, including Palm Desert's representative on the Ad Hoc Committee, in that they want lower rates. There could be another option that could cost more, and in some cases $10 more a month, where residents can choose to get more green energy. Councilmember Kelly remarked that those were terrific goals, but she wanted everyone to move forward with eyes wide open, stating there are some circumstances that may make it difficult to match those historic savings in the future, since those savings were garnered largely because Edison was committed to long-term contracts and the market price fell. However, those might not be conditions in the future. MS. BARROWS agreed it's difficult to predict the market in the future, and the essential point is that now is a good time for this because energy prices are low and that might not always be the case. The other aspect is that Edison will also see increases in price on those rates, so the goal of the CCA is to give local officials the opportunity to try to beat those rates. At this time, the CCA couldn't ensure the rates, but there is a provision that allows the customer to opt out and go back with Edison. However, based on historic trends, Edison rates will likely increase, and that's where the savings opportunities could come. Mayor Pro Tem Jonathan said it's unprecedented that Edison would be lower in their rates, because they have long-term contracts, etc., but the possibility exists. In that event, residents would have the choice of opting out of the CCA and going back to Edison. Councilmember Kelly asked if there were charges that apply for opting to go back and forth. MS. BARROWS explained that before a local Community Choice agency starts offering or providing electricity, CVAG would be required to provide four different notices. There would be four different notices, two 60 days in advance and two 60 days after. In that time period, a customer could opt out and go back to Edison at any point. Once that's done, there is an annual opportunity, because either way you can't have people flipping back and forth, but there wouldn't be a charge in either case associated with the opting in or out. Councilmember Weber remarked that residents and businesses of Palm Desert initially have no choice if the City Council decides to join the JPA, stating everyone is immediately signed up. Then they will receive the notices mentioned by Ms. Barrows indicating that if they don't want to participate, they have to go through paperwork to be removed from what the City Council has voted them to be a part of. 25 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING SEPTEMBER 28, 2017 DRAFT MS. BARROWS clarified that as the Community Choice Aggregation Program starts, Edison customers within each participating city would be put into the program, however, they would have advance notice and a follow-up notice, and the customer can opt out by making an easy telephone call. Councilmember Weber disagreed it would be that easy, and as stated by Mayor Pro Tem Jonathan, savings is not the driving force. She said there are a lot of people determined that we need to go green, and she can appreciate them wanting solar or renewable energy, but wasn't it true that whatever option is selected, it won't be at 100% MS. BARROWS explained it wasn't possible for every customer to be 100% green today, because if a customer chose that option, it would come at a cost. The idea behind Community Choice Aggregation is for people and communities that are concerned about the environment that have goals for improving air quality and reducing the use of energy. She said it tends to promote and drive development for more renewable energy, which could also be an economic development benefit. Mayor Pro Tem Jonathan reminded everyone the JPA hasn't been formed, but once formed and operational, it will make decisions where the City has about 35% of the vote. It will make decisions about what options to offer residents, in terms of percentages of green energy in that it may off 75%, stating he knew of one CCA that gave a choice of going 100% green. MS. BARROWS agreed, stating it's fairly typical of existing programs to offer a choice for 100%, but it's not an option most people would choose, because it comes at an increased cost. She added that transparency is part of the process for going 100% green energy, and it would require public input and a public process to arrive at that goal. Mayor Pro Tem Jonathan further clarified that Palm Desert residents would have multiple choices, in that they can elect to stay with Edison, but if they join the CCA, they have further choices. He said customers can choose to go with at least one or two levels of higher green energy and forego the savings of money. Mr. Stendell believed there is a cost associated when a customer jumps between a CCA and Edison, because they are out there negotiating power agreements based on the load they believe they have, and if a customer leaves Edison, the California Public Utility Commission (CPUC) is allowing that cost to be offset to that customer. Therefore, as you leave the CCA to go to Edison, there is an "exit" fee. In some scenarios the cost is one cent or half a cent, but it has the ability to be problematic. If the City gets to the point where it's looking at an implementation plan, staff will look at the implications with regard to rates here in the Valley. 26 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING SEPTEMBER 28, 2017 MS. BARROWS stated there is a standard fee that Edison would charge, likewise, the Community Choice entity could charge that exit fee from customers as well; it went both ways. Councilmember Weber said it wouldn't apply at the beginning, because the City was technically forcing everyone in Palm Desert to participate. Mr. Stendell clarified that if a customer opted into the CCA, Edison is allowed to impose a pass through a fee, because it's intended to make Edison whole for the power they negotiated on your behalf over the long-term. Responding to question, he believed that in spite of an exit fee, there would still be a cost saving in the first year. Councilmember Kelly stated it just goes to show the importance of the steps yet to be taken, in terms of securing input from a consultant. Mayor Pro Tem Jonathan asked Ms. Barrows to clarify further, because the comment was made that the City was forcing its residents to join the CCA, which would trouble him if that were true. Ms. Barrows explained the way the law is written with Community Choice Aggregation, is that when a CCA is formed and starts delivering electricity, every customer in Edison territory becomes a Community Choice participant, However, in advance of that start date, they have an opportunity to choose to stay with Edison, and they have opportunities after that date as well. From her perspective, the CCA provides multiple choices, including options for greener energy than what's required, and without the CCA you are forced to only use Edison. Councilmember Nestande asked about the notification process, because she has a feeling that most people are going to be surprised by it or thinking it's junk mail. She said Palm Desert has 50,000 residents, and at least half of them don't even know who sits on the City Council, so there was the potential for a lot of surprised residents. MS. BARROWS agreed it was an important point, and a key role of the CCA would be to work with the City to ensure that residents are reached. One required mechanism is that residents get a piece in the mail, which is required by law, and they will be looking at all kinds of ways to communicate with residents, adding that the opt -out option will be available to them in a number of ways, i.e., by going on the website or making a telephone call. Additionally, Edison's bill will provide a telephone number referring them to the Community Choice entity. She said CVAG has a great team of consultants who are doing this type of work throughout the State, and they have call centers. She said they will work with the City to make sure residents understand their options and choices. 27 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING SEPTEMBER 28, 2017 DRAFT Councilmember Weber stated Ms. Barrows mentioned to her there is going to be a contact person available to answer questions, but Palm Desert has a history of people calling City Hall for their first questions. She wondered if incoming calls on this matter would roll over to the contact person at CVAG, because she's not counting on residents noticing the information on the Edison bill. Ms. Aylaian replied that anyone who calls City Hall will be referred to the contact at CVAG, but the customer will have to make a separate call. She went on to say she anticipates there would be a volume of calls when the system first goes into effect, but she doesn't see this as a long-term impact and it would probably be equivalent to the City considering a Cannabis Ordinance or Short-term Rental Ordinance where there is currently a lot of activity. Councilmember Weber went on to inquire about Item No. 5 with regards to bonds relating to risk, questioning how many CCAs have invested in electricity infrastructures. MS. BARROWS said she didn't have an exact number, but there are about eight Community Choice Agencies working in California now, and the City of Lancaster is involved in a public/private partnership for the construction of a solar facility. Councilmember Weber expressed her concern that Palm Desert was at the whim of other cities who would voted to do such a thing, but the City of Lancaster wasn't a good comparison to what it's considering here. She noted she was aware of Marin County. MS. BARROWS stated Marin and Sonoma County have a longer program with a longer track record, and most of the other programs are within a year or two from launching, so they are not at the point where they are considering electricity infrastructures, but they are run by a Joint Powers Agency. The JPA provides that no city has any financial obligation to this program unless the City chose to participate, adding that essentially, the funds for that type of investment would come from the revenues generated, and again, it would be a decision of the local board. Councilmember Weber said this presentation is too vague with no numbers, and there is no outline of the steps involved if this is passed, including how people will be informed that they will be automatically enrolled and what one will have to do to opt out, and explaining who will be voting on their JPA. She went on to say she shared Mayor Pro Tem Jonthan's enthusiasm on this, in that it sounds really great, but the comment that so many people are interested in going green, is nice; however, the people she's spoken to have 28 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING SEPTEMBER 28, 2017 DRAFT no idea the City is doing this. She's more interested in letting residents and businesses know this is what the City is proposing in order to get more input. MS. BARROWS offered that if the City Council chooses to participate, the next step is to do community outreach and work with stakeholders. Council's decision would give residents and businesses that choice to possibility participate in the CCA, and an important aspect of what they anticipate doing is making sure residents understand the program and have an informed choice. Councilmember Kelly stated she thought the next step was an implementation plan based on the consultant's report, which would come back to the City Council to make sure it's still on board, and the plan would contain the details that Councilmember Weber mentioned. MS. BARROWS agreed the implementation plan is a critical next step that is required to be submitted to the Public Utilities Commission and also to Southern California Edison. It will provide the data with the best estimate with available information on market rates, rates that could be charged, and exit fees that would be factored in to verify any rate savings. With respect to the public aspect, because this issue is before Palm Desert and other cities throughout the Valley, CVAG wants to make sure information starts to become available. Mayor Pro Tem Jonathan stated that when and if the JPA is formed, it's contemplating a contract that would include significant public relations and public outreach. MS. BARROWS added the team is anticipating a contract with a marketing and outreach firm that is familiar with Community Choice and has worked on this program in other communities and can anticipate the kinds of questions community members would have. MR. KARL TWOMBLY, Matisse Drive, Palm Desert, expressed his support for implementing a Joint Powers Agreement and a Community Choice Aggregation Program. His understanding is that if this structure allows publicly owned power plants to be built or other infrastructure like a power grid, there may not be much of a savings initially. However, it's the legal entity by which there can be public generation like Los Angeles Department of Water and Power who has their own electricity generating plants, allowing for more substantial savings down the line. He admitted he didn't entirely understand all the laws relating to the JPA and CCA, but he understood this was the first step toward allowing local cities in the Valley to enter into an entity that could potentially allow for publicly -owned generating plants; in his view, a public -owned transmission grid or a new smart grid. The savings rates compared to an area that has publicly -owned infrastructure is 29 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING SEPTEMBER 28, 2017 DRAFT substantially lower than the three to five percent savings. The Bonneville Power Administration, for example, provides much lower wholesale power. In fact, they sell power to California, and without that publicly -owned infrastructure, the rates would be much higher. If for no other reason other than to get some competition, but initially, this community can have a choice to go somewhere else if Edison starts jacking up their rates as it seems to be occurring. He reiterated he was advocating in favor of Community Choice Energy. MR. KIM FLOYD, Sorrento Court, Palm Desert, shared he was a volunteer with the Sierra Club and has been elected by the Club to speak on environmental related issues. In Palm Desert, they have approximately 250 members and 1,500 in the Coachella Valley, and they are strong supporters of the idea of a CCA Program and encourage the cities of the Coachella Valley to join in on this effort. They appreciate the work the City is doing, because from their perspective, not only is there an opportunity to get green energy beyond what Edison might propose and deliver, but it will be based on local decision making. As already mentioned, what choice did residents have with Edison, and by adding a CCA, residents will be given some options. Additionally, overtime, the opportunity to make investments to bring clean energy production into local communities has a high value, and those decisions will be made by city councils that represent local residents. He said it can drive jobs into local communities and provide more options on how to spend the energy conservation money that currently goes to Edison who decides with the CPUC how that money will be spent. Councilmember Kelly commented she positively wants to see the CCA have a chance, stating Council just heard from eloquent speakers who represent additional members of the community who would like to see the City Council give this a chance, but at the same time, there are big questions that haven't been answered. It's understandable, because you have to find out who's participating before moving forward to answer those questions. As she understands it, there will be a consultant's report that will speak to the current conditions, what savings can actually be expected that can be promise to the residents by way of lowering green house emissions, and following that report, development of an implementation plan. She said Council should seek the right to withdraw if there's information in that consultant's report or implementation plan that is not to their liking. The current JPA provides for a right to withdraw upon limited conditions within 15 days, which is way too tight given the usual agenda sequence. At the appropriate time, she will support staff's recommendation to pass the Ordinance to second reading at the November 16th meeting. However, she would like to include in the motion, instructions to the City's representative to seek an amendment to Article 6.1.3, that will afford participating cities the opportunity to withdraw with impunity during 30 days after issuance of the implementation plan. The current thought is that it will happen before the 30 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING SEPTEMBER 28, 2017 end of the year, and there is another clause allowing for withdrawal before the end of the year, but schedules often have to be adjusted. She felt the City Council would be doing a better job for its citizens if that instruction is included. Councilmember Kelly moved to: 1) Waive further reading and pass to second reading at the November 16, 2017, adjourned regular City Council Meeting Ordinance No. 1327, authorizing the implementation of a Community Choice Aggregation (CCA) Program and approving the Desert Cities Energy Choice Joint Powers Agreement (JPA) (Contract No. C36400), subject to the following: a) Requesting CVAG (Coachella Valley Association of Governments) facilitate amendment of Section 6.1.3 of the draft JPA, allowing 30 days for review of the draft CCA Implementation Plan as required by the California Public Utilities Commission (CPUC); b) providing the City Council a copy of the draft CCA Implementation Plan prior to the November 16, 2017, meeting for further review and direction; 2) by Minute Motion, authorize the City Attorney, if necessary, to make non - substantive modifications to the Joint Powers Agreement (JPA) prior to its execution, as amended to include: (1)© instructing City Council's representative to the initial meeting of the Joint Powers Authority to seek an amendment to the draft Joint Powers Agreement in Section 6.1.3 so as to provide for the right to withdraw within 30 days of receiving the draft CCA Implementation Plan with impunity. Councilmember Weber recalled Ms. Barrows mentioning the City needed to determine if it was opting out of the JPA by December 17, and questioned if that was the 30 days Councilmember Kelly was referring to. Councilmember Kelly answered no, stating there are two different clauses defining the City's right to withdraw. One of those allows participating cities to withdraw at the end of the year, and the other one provides for some withdrawal rights after issuance of the consultant's report. A best case scenario is for the report to be out in the next six weeks, but best case scenarios don't always happen, so she's asking that the City's representative seek adequate protection in case the issuance of the implementation plan is delayed. Councilmember Nestande concurred. Mayor Pro Tem Jonathan noted that the advantages with moving forward with the CCA are as follows: 1) Local control, which is something that everyone advocates for; 2) it provides choices for residents. If residents like Edison, they can stay with Edison, if they want to go with the CCA, they will have further choices on saving money or going green; 3) a modest cost savings, which might be significant to some; 4) continue to promote the City's historical leading efforts in protecting the environment. He thank Councilmember Kelly for slowing things down and calling attention to things that will bring about a better City decision, and in the long run, a better CCA. 31 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING SEPTEMBER 28, 2017 Mayor Pro Tem Jonathan seconded the motion. Councilmember Weber said she appreciated all of Mayor Pro Tem Jonathan's belief's in the CCA, but everything's she's studied has not convinced her to be in favor of it. Also, when people say local control, to her "local" means her City or at least within her community. For example, she doesn't consider the City of Blythe as local nor would she believe they would care about what is going on in Palm Desert. However, if the City Council was considering a City of Palm Desert CCA, she would be on board. A greater concern was the City's 35% vote with a whole bunch of other cities that can put residents in debt for future construction or future rate changes, which she was not in favor. Mayor Harnik said she was in favor of local control and the City of Blythe is currently part of CVAG, so including Blythe as part of the CCA made perfect sense. Although the CCA may not provide a major cost savings, it gives Palm Desert local control, allowing the City to ask for the types of energy it would want, and City decisions can often drive the market and determine what type of energy will then be generated. She said the City is reviewing and studying this for the community, much like it did when it selected Burrtec Waste Management for being a great company. One thing not talked about is that Southern California Edison applies for special projects and programs, in that if they have customers who suffer with multiple sclerosis, they get a discounted energy cost, which she believed Palm Desert would then be able to ask for those same types of programs. Additionally, the City could ask to use those funds to start new green programs or subsidize programs for energy generation in the community. Councilmember Weber shared that's the type of information she would have liked to have seen been included in the report, and with respect to the selection of Burrtec, the City had a lot of input from residents via letters and conversations, including public participation in that decision making. Mayor Harnik commented that when the City has a program ready for a presentation to the public, there will be optimum opportunity for community input. Councilmember Kelly restated the motion to adopt staff's recommendation and pass the Ordinance to second reading at the November 16, 2017, City Council Meeting, and additionally, to instruction the City Council's representative to the initial meeting of the Joint Powers Authority to seek an amendment to the draft Joint Powers Agreement in Section 6.1.3 so as to provide for the right to withdraw within 30 days of receiving the draft CCA Implementation Plan with impunity. Motion was seconded by Jonathan and carried by a 4-1 vote (AYES: Jonathan, Kelly, Nestande, Harnik; NOES: Weber). 32 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING SEPTEMBER 28, 2017 D kfr.t MS. BARROWS thanked the City Council, specifically, Councilmember Kelly for all the questions. She added staff did a great job of asking questions that everyone needed answers to, and applauded the significant effort made on this by the City. Councilmember Weber likewise thanked Ms. Barrows for taking the time to meet with all Councilmembers, providing detailed information, and following up with additional information. MS. BARROWS said it's a complicated project, but she felt it was going to be an exciting opportunity. XVIII. OLD BUSINESS None XIX. PUBLIC HEARINGS A. REQUEST FOR APPROVAL OFAZONING ORDINANCE AMENDMENT — PALM DESERT MUNICIPAL CODE SECTION 25.34.120 - CANNABIS USE AND REGULATIONS; CHAPTER 25.16- COMMERCIAL AND INDUSTRIAL DISTRICTS AND CHAPTER 25.18 - DOWNTOWN DISTRICTS, AND TO ESTABLISH CHAPTER 5.101 - COMMERCIAL CANNABIS REGULATORY PERMITS, AND CHAPTER 8.38 - PERSONAL USE OF CANNABIS, TO ESTABLISH A COMMERCIAL AND PERSONAL CANNABIS REGULATORY STRUCTURE AND ALLOW FOR CANNABIS BUSINESSES WITHIN THE CITY, SUBJECT TO A CONDITIONAL USE PERMIT, Case No. ZOA 17-027 (City of Palm Desert, Applicant) (Continued from the meetings of August 24 and September 7, 2017). Mayor Harnik recused herself from this item due to a potential financial conflict and left the Council Chamber. Councilmember Nestande also recused herself and left the Council Chamber. Principal Planner Eric Ceja stated this item was a Zoning Ordinance Amendment to establish regulations for Personal Cannabis Use in the City of Palm Desert. He noted there was an Ad Hoc Committee that was established over a year ago and they reviewed the potential Ordinance and made recommendations to the City at the meeting of August 24. Staff recommended continuing the item to allow separating the Ordinance into various sections throughout the Municipal Code, and it has been accomplished; the Ordinance was broken down into five separate chapters. Staff also received direction from the City Council to establish a merit -based system for review of the applications, as well as limiting the total number of applications for retail dispensaries. There are now five separate chapters, each one with its own importance to regulate cannabis within the City of 33 rqt PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING SEPTEMBER 28, 2017 Palm Desert. He said all commercial cannabis uses require approval and review of a Conditional Use Permit (CUP) by the Planning Commission, and the Ordinances themselves distinguish between retail, testing, manufacturing, cultivation, and distribution. Retail cannabis use is limited to the City's Commercial Zoning Districts, and other uses such as manufacturing and cultivation are limited to the City's Service Industrial areas, and testing facilities are limited to Service Industrial and Office Professional Zones. The Ordinance as written, includes a 1,500-foot separation requirement between Commercial Cannabis Uses, including a 600-foot radius from schools, day cares, and youth centers. He added that no commercial uses would be permitted along properties that abut residential or public parks. With Council's direction at the last meeting to look at limiting commercial retail uses, staff has revised the Ordinance and proposed a limit of six (6) total Conditional Use Permits for commercial/retail uses and is also proposing that no more than three (3) allowed to locate on any one street. The Ordinance addresses various nuisance issues by including a business plan, access control plan, and odor control plan as part of the review through the Conditional Use Permit. Staff believes the Ordinance limits the amount of commercial/retail cannabis uses it will see in the City of Palm Desert, adding they have been excluded from the Downtown Overlay Zone and limited to no more than six (6) permits throughout the City. Staff would like to return to the City Council with a separate resolution to review the merit criteria it has identified and to propose an amendment to the Ordinance to allow an opportunity for centers with CC&R's to weigh in on commercial cannabis uses in a center. Additionally, staff would like to make an amendment to expand the definition for testing facilities to ensure it includes research. He emphasized staff wished to make more amendments to the Ordinance as State law continues to change and evolve. He noted there is still an issue that is not up for consideration this evening, which is whether or not the City wished to impose its own tax on cannabis. Councilmember Kelly asked about the structure of the regulatory framework, because Chapter 25 defines the process for securing a CUP and Chapter 5 defines the process for receiving a regulatory permit, stating it was not clear to her how this worked logistically. Mr. Ceja explained that Chapter 25 is the Zoning Ordinance for the City, and staff included land -use regulations to identify the zoning districts where cannabis use would be appropriate, and established some land use regulations for the regulation of commercial cannabis. Chapter 5 has to do with business regulations on how a business obtains a business license, a renewal, and follow-up information that needs to be provided on an annual basis. Further responding, he said the Conditional Use Permit under Chapter 25 should be sought first, and in Title 25, staff recommended there be a total of six (6) conditional use permits, adding that the CUP happens before receipt of the regulatory permit. 34 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING SEPTEMBER 28, 2017 DRAF1 Councilmember Kelly said she was having trouble with this, because at the regulatory stage the Applicant is to submit the security plan, the business operation plan, the diagram of the facility, so if the City wants to have a merit -based system that considers the quality of any of those things, the City would have to have the information prior to selecting the six that will be allowed. Mr. Ceja responded that those things will be requested as supplemental requirements for the CUP, and staff will obtain that information in the initial review. Mr. Hargreaves said staff was still a little undecided, because at this point, the proposal is to go forward with the general structure that there is a limit of six (6), and exactly how the City will accomplish it and what the structure and criteria looks like, will need to come back to the City Council in the form of a resolution at a subsequent date. Keeping the process moving gives people some idea of the target they are going to be looking at. He said the criteria only applies to dispensaries, because there are other business regulations here that don't apply to dispensaries. As far as what the criteria is and what the selection process is going to look like or be implemented, is still subject to discussion between staff and the City Attorney, stating it's not all sorted out yet. Councilmember Kelly recalled there being constituent input about research facilities and thought staff's assessment was that it would make sense to include them in the same category as testing facilities, but she didn't see that addressed in the Ordinance. Mr. Ceja agreed, noting that in his initial oral presentation he mentioned staff would like to expand the definition of testing facilities to include research. It was omitted from the proposed Ordinance, but staff would like the City Council to approve expanding that definition to include research. Councilmember Kelly stated the facilities are foreclosed within 600 feet from schools, etc., but they are foreclosed in Chapter 5 from promoting cannabis within 1,000 feet of schools, etc. She questioned why the difference in measures, because it would be kind of hard to exist without being able to promote it. Mr. Ceja said staff will have to ask the State since they are the ones that drafted those separation requirements, but the way staff looked at it, a commercial business couldn't be 600 feet outside a school, with a 1,000 feet advertising restriction. There are limitations on how they can promote that business, including on the exterior. Further responding, he said the State has allowed for a lot of local control, so if the City wished to increase the separation from school, it would be up to the City Council to decide. 35 DRAFT PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING SEPTEMBER 28, 2017 Councilmember Kelly noted she and Mr. Ceja heard from a property owner in the edge of the Downtown Overlay Zone who wanted to present a potential site that's well suited for this, but under the current approach, it would be foreclosed because it's in the Downtown Overlay. Is there any potential remedy for that situation apart from going back and amending the Downtown Overlay District. Mr. Ceja replied the City has not provided for an exception outside or around any of the regulations that are being proposed. In fact, the direction staff heard at the last City Council meeting was to be more restrictive to where these facilities will be permitted and also limit the number. Therefore, staff became very hesitant to finding exceptions that could potentially expand the locations for cannabis. Councilmember Weber stated Council was wanting to be restrictive because it wanted to start off small and expand more facilities later. However, she didn't see anything that outlined the steps or what would be entailed. She asked if there was anything that very succinctly stated the process, because the Ordinance is overwhelming. Mr. Ceja responded that should the Ordinance, pass, the goal is to create a handout that explains the steps clearly, rather than providing five separate ordinances. However, the Planning Department is not ready to accept applications for commercial businesses until the Ordinances are passed. Councilmember Weber questioned how staff responded to potential applicants when inquiring about the number of dispensaries allowed, the merit system, etc., at this point and time. Mr. Ceja explained that most prospective business operators in the City of Palm Desert are very in -tune with laws of the State, and they are very familiar with the Ordinances being proposed, including being familiar with what other cities have used for a merit system. Mayor Pro Tem Jonathan recalled there was discussion about limiting retail dispensaries on El Paseo to one, which he didn't believe was in the proposed Ordinance. Mr. Ceja said that was correct, stating staff will leave it up to the City Council, because at this time there isn't a consensus. Mayor Pro Tem Jonathan said there was also some discussion about allowing vertically integrated businesses, meaning that in one building you could have a retail dispensary in the front and growth and cultivation in the back; however, he didn't see any of it being addressed in the proposed Ordinance. 36 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING SEPTEMBER 28, 2017 Mr. Ceja believed the Ordinance is open enough to allow for vertical integration without having to address it specifically, because the State allows for it with their licensing structure, and staff can address it through a CUP. Mayor Pro Tem Jonathan said the natural area in Palm Desert that lends itself for that type of operation is the Service Industrial Zone in the north sphere on Dinah Shore Drive where retail is not permitted. Mr. Ceja clarified that with vertical integration the primary use in an industrial area would have to be manufacturing, cultivation, and distribution. The State will allow for a small percentage of the floor area to be dedicated to retail. So if staff can address that through a CUP, staff believes it can regulate it appropriately. Mayor Pro Tem Jonathan said he understood the proposed Ordinance would not preclude incidental retail sales in a primarily growth facility because the State permits it. Mr. Ceja agreed. Mayor Pro Tem Jonathan called attention to the section where the proposed Ordinance places a limitation of six (6) retail dispensaries, but there is no limitation on the overall or other types of commercial cannabis businesses, stating he recalled discussing a limit of thirty (30). Mr. Ceja recounted that initially staff thought there could be a total of 20, but it has been reduced to six (6) retail, and all other uses, given their separation requirements and distances, the City could probably permit another eight (8). He said they are really restricted to the industrial area, once the City limited the commercial, so it's very limiting to how many permits will be issued, and it includes testing, which is a bit more open. Mayor Pro Tem Jonathan questioned why the City would want to create further limitations on testing and research with the 500-foot separation, because the testimony offered sees them more like a scientific lab that contains very small sample quantities of cannabis, adding there is no selling or cultivation. He sees it as expanding the City's economic base and reaching out into desirable industries and economic sectors, stating it seems that scientific research is something the City would want to promote. Mr. Ceja shared staff tried to be more open for testing by allowing them in the Office Zone and Service Industrial, because it's the only use that has that ability. Based on discussions with the Committee, and as stated by Councilmember Weber, the intention was to start small. However, if staff finds that these facilities are nearly invisible to the community and there is no impact, it can be opened up for additional permits in the future. 37 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING SEPTEMBER 28, 2017 D RA F T Mayor Pro Tem Jonathan noticed there is a requirement to provide the exterior facade, renderings, etc., but he didn't see any provisions for the interior, particularly for retail dispensaries, because he thought it was just as relevant as the exterior for maintaining the quality and standard of the City. Mr. Ceja agreed, stating staff is also very concerned and wants to address the interior, and the CUP requires an applicant to submit floor plans for the interior space, but it was not reiterated in the Ordinance. Councilmember Kelly pointed out that Chapter 5.101 d calls for a completed and detailed diagram of the proposed premises, including interior partitions, walls, windows, and doorways. Mr. Stendell asserted what is not being presented here is the section in Chapter 25 that is already set up and governs Conditional Use Permits. It's existing, standardize, and it requires certain submittals, adding that Chapter 5 is for other purposes. He said the City has the ability through the CUP to ask for those drawings and demand the best through the Architectural Review Commission (ARC). Further, the cannabis section in the Ordinance refers and leans on the CUP Ordinance that's already in place, which gives the City the authority to ask for certain documents and has the ability for staff to condition. Mayor Pro Tem Jonathan called attention to the application fee, which looks to recover various costs, including but not limited to attorney's fees, consultant's fees, etc., but does not list public safety costs, which can reasonably be expected to increase. He asked if that was because it would be in the form of a tax rather than a permit fee. Mr. Ceja replied that when staff takes in a permit, they are reviewing the application and identifying its appropriateness in terms of land use. When it comes to recuperating public safety cost, he believed a tax would be more appropriate. Further responding, he said in terms of imposing a tax, that would require a separate action, but staff is willing, able, and excited to take City Council's direction. Councilmember Kelly recalled constituents urging a 250-foot buffer for residential properties, and since the City was starting slow to get some experience under its belt, she asked if there was any reason for not including it as part of the Ordinance. Mr. Ceja pointed out that any buffer around residents eliminates El Paseo and Highway 111, because there are neighborhoods in such close proximity. 38 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING SEPTEMBER 28, 2017 DRAFT Councilmember Kelly noted at least one Planning Commissioner bought up the issue of including community colleges in the schools, etc., since they too have underage students. Mr. Ceja confirmed he had a discussion with the Planning Commission on that issue and the Commission voted not to include those secondary schools, because they recognized there are bars and restaurants that serve alcohol in the same proximity. Councilmember Weber expressed how impressed she was with all the details provided, stating the City Council was trying ensure it covered everything, while being respectful of the community that wants to participate in this. Mayor Pro Tem Jonathan declared the public hearing open and invited public testimony FAVORING or OPPOSING this matter. MR. CHRIS CRANFILL, California Best, stated he was an operator of a local delivery service that used to operate in Palm Desert until the City banned them. Unfortunately, he is relinquished to the cities of Rancho Mirage and La Quinta, because they have permits in place. In response to Mayor Pro Tem Jonathan's public and health safety concerns, he said cannabis is the only schedule 1-ranked drug with no LD50 (lethal dose, 50%) or LD100 (lethal dose, 100(3/0). He said LD50 is the amount of an ingested substance that kills 50% of a test sample, and LD100 kills the entire group. LD50 is also measured for the inhalation of toxic substances that creates fumes such as bleach. He reiterated that cannabis has been found to have no LD50 or LD100, which means that cannabis is 100% non -toxic; it is safer than aspirin and does not have LD50 or LD100. Unless there is a preexisting health condition or allergy to a substance found in cannabis, there is little to no risk. A New York Times reporter also found that in 1999 to 2010, an annual rate of opioid overdoses decreased by 25% following the passage of cannabis laws compared to states that still had bans; the information was compiled from hard data using death certificates. This research was published in June 2016, which found that states that legalized medical cannabis and had recommended it for symptoms like chronic pain, anxiety, or depression, saw declines in the number of medicare prescriptions for drugs used to treat those conditions, including a dip in spending by Medicare Part D, which covers the cost on prescription medications; it saved the people and the government money. It was learned that cannabis could be a replacement for prescriptions drugs such as opioid, pain killers, and antidepressant. The research said it appears likely legalization lead to a drop in prescription, because prescriptions didn't drop for medications given as blood thinners like Warfarin for which cannabis is not an alternative. The study, which appeared in Health Affairs, examined data from Medicare Part D from 2010 to 2013, stating it was the first study to determine whether legalization of 39 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING SEPTEMBER 28, 2017 cannabis changed doctors clinical practice and whether it curbed public health costs. The study found those national overall reductions in Medicare Program Part D enrollee spending was estimated to be more than $165.2 million savings per year. He said there are more states now legal for cannabis use, nearly 30 states. He went on to say cannabis has the true potential to not only save lives, but also save money, and those funds can be earmarked for other needed medical treatments, community programs, and put back into the local economy. He said the Country is in the midst of an opioid epidemic and it's up to everyone to come together as a community and provide options for others on all fronts. He urged the City Council to pass the Ordinance to help the community achieve a better quality of life and be free of opioid and other pain killers. MR. MARK MORAN stated he was the Chairman of the Board of Directors for the Regional Access Project (RAP) Foundation, and they are seeking a buffer, because he learned their area was being targeted for cultivation. He said they see children and families every day, but they are not a school, they are a nonprofit organization that houses organizations that bring in families and children. Last week they held a preschool graduation with 50 children and their families. On average, they see approximately 100 children and their families, because everything from Autism to helping children understand disabilities is happening in their building. Therefore, they are asking for a buffer just like it's being applied for certain schools, parks, and youth facilities. They are asking for a 600-foot buffer from the property line. The reason he's asking for the buffer is because there is a beautiful facility that no longer has anyone in it, which is the Time Warner building. There is approximately 2,000-square-feet there, and if he was in the cannabis business in Palm Desert, he would want that building, because that would make a great growth facility, but it's next to their building. He understands there are a lot of ways that odors can be contained, but you can't hide it and the odor doesn't go away. He represents folks that have facilities in Desert Hot Springs, Palm Springs, and Cathedral City, and he can guarantee that if you stand out in front of a dispensary, you will smell the marijuana. He said the Foundation was neutral on the Ordinance and wished the City well, but they would like to make certain they are buffered so that children and families are not exposed to it. MS. NANCY CARTER DORIA, Representing Erickson Management, a property management company that handles commercial property management. She is representing her constituency, which are commercial owner associations. Currently, they are currently located in the Country Club Business Park where there are five different associations. She said Country Club Business Park abuts to Freedom Park, so their area would be completely out of the realm of possibility for cultivation or for sale. She studied the materials that are available and noticed there is one issue that does not seem to be addressed, and she's had an opportunity to talk to 40 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING SEPTEMBER 28, 2017 DRAFT Mr. Stendell and Mr. Ceja from the Planning Department to get a better understanding of what the City's requirements are. When you have a CUP and associations are involved, associations have their own Covenant, Conditions and Restrictions (CC&Rs). She said that within the CC&Rs there are designations for different types of businesses that can or cannot be used, and as staff pointed out to her, the City of Pam Desert is not in the business of interpreting CC&Rs, which she understood. However, the owners she represents want to have a say in what goes on in their particular situation. The Country Club corridor that was recently zoned to General Commercial Use, where she sees kids every single day during the school year, allows for dispensaries fronting Country Club Drive. She asked if there was some kind of action that could be done, because when someone applies for a CUP as an owner, meaning selling or leasing their property, and they don't disclose they are within an association and a permit is authorized, it creates a situation where it's not a business type that's allowed by the association. She understands that if there is a CUP, there is a requirement to notify the businesses within 300 feet of where the dispensary will be located and all the owners/agents will be allowed to attend a public hearing for providing input. However, some owners are very concerned about what's going to be allowed within their associations and it's their job as a property management company to ensure the owners voice is heard. She asked for staff's help in explaining the proposed changes, and to find a way to address the owners' associations, stating they are business owners and homeowners in the City of Palm Desert. MR. FRED FERN, The Shops on El Paseo, Palm Desert, thanked the City Council for the time given in understanding the public's concerns. He shared he has been very involved with El Paseo since 1984, and he has the Shops on El Paseo, which includes about ten buildings on the street, and they are very worried about having cannabis stores on El Paseo. He said that when they signed Gucci and other luxury stores in their leases, they include a co -tenancy clause, so they are concerned about the types of tenants that will surround them, because it's important to them to be solid so that customers know they will continue to be there. He added that El Paseo is a unique street that must be maintained with a high degree of true identity and excellence. He said a compromise can cause a disaster, because if they lose credibility in the transition and take a big risk, it could become a nightmare. He has been in the investment business for more than 54 years, and he enlarged the scope of his industry on the financial side to real estate a number of years ago, but you learn in life that you can't be experts in everything. Therefore, the first expert he brought in is Mr. Houman Mahboubi, who is on the board of the Rodeo Drive Committee, stating he is very involved there and in the Beverly Hills area. MR. HOUMAN MAHBOUBI, Beverly Hills, California, shared that when he was approached by Mr. Fern and his group to assist with their high -end 41 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING SEPTEMBER 28, 2017 DRAFT luxury street retail spaces on El Paseo, they were very enamored by the idea because they love this area and know how unique it is. Having been raised in Beverly Hills and having worked there as well, they compared this City, specifically El Paseo, as the Rodeo Drive or the Beverly Hills of the Desert. In do so, they wanted to implement the same vision/image or class that this area really deserves, so they came up with a game plan to bring the right tenant mix in order to create it. When you deal with high -end luxury, one of the most important factors for these tenants is knowing who their neighboring tenants are, to the point that they even want to have a say as to who would be filling any vacancies, adding you won't see a doctor's office or pharmacy near these tenants, because they just don't go hand -in -hand. By the way, they have nothing against cannabis businesses, because he understood thre is a need to serve people with medical situations, but perhaps not in the area of a high -end street with luxury retail companies. Therefore, in order to preserve El Paseo's prestige and continue to grow it, bringing in a cannabis user into the foray of such a thing, could paralyze the street's plan, growth, and image. MR. FRED FERN added he has a very good friend who ran the Irvine Company and ran Fashion Island and built the Irvine Spectrum, and he too is very alarmed, because they don't allow cannabis stores in those luxury areas. He noted that in 1984 when he bought the first building where the Daily Grill Restaurant is located, half of the street was desert with cactuses, and now look at it. MS. LINDA WEST, Founder of Nurses for Safe Access, approached the Council to say they are truly in the cannabis business for research. She hopes to bring awareness to State Measure M that permits non -brick and mortar, meaning you are able to dispense cannabis by bringing it to the home. In her case, the cannabis will be dispensed to a registered nurse that will dispense it to her patients, making sure it is the right dose and right delivery. She said if the City was looking at only permitting six (6) businesses, she urged the Council to please ensure they are truly for medical purposes and are educated in medical cannabis, and not recreational users looking to utilize the term medical cannabis to get a permit. Also, allow for at least half of them to be strictly for cannabis in order to help the City's constituents that have medical issues. MR. ROB BERNHEIMER, Manitou Drive, Indian Wells, stated he represented a number of interests involved with this Ordinance. He believed there were a couple of places in the Ordinance where it states "testing," where he believes "research" should be added, which can be done this evening very simply. In response to what goes on in a research facility, he said there is some growing of the plant, because you have to grow it to conduct the research of it. There is no commercial activity, but there is some growing that takes place at a research facility. With regards to the new 42 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING SEPTEMBER 28, 2017 proposal of allowing six (6) retail dispensaries, which he thought was a good limit, but there is also the suggestion of only three (3) per street. The way the Ordinance is drafted, it allows three of any licenses, which he didn't think should apply to all licenses. If that is the case, a better number is two dispensaries, stating two per street allows them to be spread around the City a little better. He went on to say he disagreed with the comment that cultivation areas will have an odor, because he has stood outside very large groves and outside their door, and with proper air filtration and odor control, you could have no odor even if your standing a foot or two outside the facility, adding that it's going to be kind of innoxious to the people that are there. In response to Mr. Fern's comments, he offered that two of his tenants offered letters of support for dispensaries on El Paseo. He noted he submitted a number of maps that are in the Staff Report that show high -end retail in a number of jurisdictions around the Country and they haven't been impacted. He reiterated that it was very important for the research component to be added to the Ordinance. MR. RICK PANTELE, Cobb Road, Rancho Mirage, noted this was his second time before the City Council, stating he came here 12 years ago when Lanny Swerdlow called him to speak on medical marijuana for the City of Palm Desert, and he did. At that time, he shared about his mom and bag of medications, but today was historic for him, because Palm Desert is moving forward and it's his second time speaking. Today he is speaking as a patient, stating he is a three -time Hodgkins Lymphoma survivior, he has 28 years with HIV and 1,000 "C" Cells, and he's had a bone -marrow transplant at UCLA. He is speaking for patients that can't be here this evening, stating this issue is all about safe and affordable access. He asked that the City Council be flexible when it comes to zoning, but he personally didn't want one on El Paseo, because he doesn't want to pay those rents in his medication. Secondly, with respect to limiting it to six (6), he would like to have the Council look into the fact that the State will have a proposition where you could have a "Delivery License," which would be the seventh license, but it would be for no public use and it allows for delivery. Lastly, he urged the City Council to tax for the use, because otherwise, the City will not be able to regulate his medical cannabis. For 90 years everyone has been told not to touch this product and that it was illegal, and on January 1, people will be allowed to touch it and the outcome is yet to be seen. However, if the City continues to move slow but is flexible, it will be able to control it, stating patience is the key. He said in Palm Springs they had an issue where there was a dance school and the dance studio was upset, because their students were going to see what was happening, but he says, get used to it, because it's the future. MR. DAN BALL, Peppergrass Street, Palm Desert, stated he represented parties that would like to have a dispensary in Palm Desert. He shared a personal story involving his brother who was a fire fighter who was diagnosed 43 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING SEPTEMBER 28, 2017 DRAFT with Stage 4 Bone Cancer. At that time, he proposed the use of marijuana to his brother, but his doctors told him it would interfere with his treatments. Everyone now knows that was a bunch of garbage and propaganda. Because he and his partners are interested in a property on El Paseo, he wants to address it, questioning how many times had Gucci been robbed, which were many, and whether it brought crime to the street. He didn't know if a dispensary would bring more crime or problems to El Paseo, but 33% to 37% of the stores there are vacant, and there are medical doctors and small nail salons there as well that are not high -end like Gucci, so he has an issue with that argument. Also, there was a dispensary in 1996 on El Paseo when California legalized medical marijuana about 10 or 12 years ago, and he couldn't recall there being major problems, except when the "Feds" came to bust it up. He understands the criteria is going to be considered after the Ordinance is adopted, but he would implore this Council to understand this was about making medicine available at an affordable rate, it was not about making a lot of tax money or having people come from out of town to open up a dispensary and make a million bucks. He said a top criteria should be experience and a proven track record of following the State's regulations for more than a year, and making sure it's organic, so that a person with Parkinson's, HIV, or cancer, is not putting poison back into their body. MR. TERRY COLLIER, Ajo Lane, Palm Desert, shared he understood the need for cannabis for particular groups relating to their health, but he was concerned for young teenagers who will have it growing in their yard and out of sight. In Vietnam, from experience, while under the influence of marijuana, you slow down in that you are not fast or quick enough. He understands many may not have died from smoking marijuana, but they certainly did from being under the influence of it. He is concerned for regulating and controlling the home grower who will be out of control, stating it will lead to many people getting hurt out in public. He's finding people cruising down Highway 111 after working hours sipping beer, and the only reason he sees it, is because he's not in a patrol car. The use of cannabis is going to be uncontrollable, and it will lead to a lot of serious public safety concerns and problems. Lastly, if a police officer finds someone driving while under the influence or using, the City should impose very strict and harsh penalties for doing so. MS. TANYA PHILLIPS, California Drive, Palm Desert, stated she delivers medicinal creams, lotions, and oils to cancer patients. She shared one of her clients doesn't want to do chemo or radiation, and instead asked for the cream. The cream is $50 and chemo is $500 and up to $1,500, so it's helping people that can't afford treatments. She said this was not about getting high, it's a service that is highly needed, including getting people off the opioid or medicines for pain. Also, she asked what bank will they be able to use. 44 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING SEPTEMBER 28, 2017 MR. MARK PHILLIPS, Florida Avenue, Palm Desert, said the City is going to need a lot more than six dispensaries, stating they have CBD (Cannabidiol) oil that is curing people with cancer, epilepsy, etc., and it's doing so much good. He said you can look up Rick Simpson's, where you can find out how you can cure yourself of cancer. He went on to say there have been over 5,000 documented cancer cured people. He reiterated the City will need a lot more than six dispensaries, especially those with CBD oils, stating it doesn't have any of the THC (Tetrahydrocannabinol) in it. MS. JULIE MONTANE, Owner of PSA Organica in Palm Springs, expressed the need for more education, because the reason you have dispensaries is to serve the patient. She said her patient base is between the ages of 30 and 92; she takes care of many seniors and many are tourists. She said she sits down with them, educates them, and finds out what is needed. She agreed there are many oils that are curing, and yes you can look up Rick Simpson's Oil. As far as El Paseo is concerned, almost 30% of the buildings are vacant and dispensaries bring in people and make businesses thrive, whether they are local or tourists. She said dispensaries are better than banks, in that there is zero crime rate when is comes to dispensaries. There are more robberies in banks and higher echelon stores than there are in dispensaries, because of all the cameras and security. With a respect to a license dispensary, it should come from within the dispensary. So if someone wants to dispense in a delivery service, they should be working with a licensed dispensary that has the proper medication delivered to whoever needs it. Lastly, testing is done from the growth facilities, noting she pays $5,000 a month to test all of the products as it goes through. Basically, with testing labs, you don't need a testing lab, because someone comes and picks up the product, they test it, and provide a report. The report is then left with the medicine that you are giving out to your patients. She said Organic is number one, which is why you want to have licensed dispensaries, so they can control what is going on and how the product is grown. MS. ELYSSA GOLDBERG, B.G.'s Eclectic on El Paseo, stated she was a tenant with Chartwell Management Properties for a very long time, and she's been on El Paseo for more than 28 years. She's in favor of having dispensaries on El Paseo, stating she was not a high -end luxury store, but she has maintained her business for a very long time. She knows of people and customers in favor of dispensaries, and if done in the right way, she's sure the City will have them follow rules as she has. MS. HEIDI HEXOM, Circle A Drive, Palm Desert, offered a compromise for those who are concerned about children walking near a dispensary, in that minimizing signage to having them blend into the surroundings, so that students and children could walk right by it and not have any idea of what's inside. She believed that if the place is made very discreet, stating that people who are looking for it will know where to find it. With respect to the 45 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING SEPTEMBER 28, 2017 DRAFT merit criteria, which she has not seen, believes local people should have preference, because they can control what's going on in their city. With no further testimony offered, Mayor Pro Tem Jonathan declared the public hearing closed. Councilmember Kelly stated that when thinking about entities like RAP or secondary schools that may not easily meet the definition for a buffer, would it seem possible and desirable to take that into account when it selects the six, including taking into account the neighborhood compatibility in some respect. She understood staff is working very hard to come up with a criteria that will be as objective as possible, but is it possible to deal with those issues at that step, because it doesn't feel easy for her to deal with it at the Ordinance step. Mr. Ceja reported any CUP that the Planning Department receives, there are specific findings staff has to make. One of the things they look at is land use compatibility, so they will be looking at neighborhood uses to determine the appropriateness for the location and whether or not it's compatible with adjoining uses. Mayor Pro Tem Jonathan pointed out the concern from RAP was growth and cultivation facilities. Mr. Ceja confirmed the CUP process will address both situations. Councilmember Kelly requested staff reach out to RAP and give them the assurance that there is a place where their concern can be considered. She added that she really appreciates the work that has been done, including the desire to move it along by getting the Ordinance established because the merit -based criteria is a complex challenge. However, she questioned whether the Ordinance was ready to move to second reading, because this awkwardness of some submissions coming through the CUP and others coming through a regulatory permit is holding her up, and her reaction is that it might be more efficient to wait until Council knows what the merit -based criteria is and that the Ordinance supports that conclusion. Mr. Stendell explained staff structured this similar to how other CUPs are handled with regard to submission under Chapter 5 versus Chapter 25. He takes ownership over the merit -based portion of this and the collaborative group of the City Attorney's office. He may not score any points with his following comment, but he believes strongly that the merit -based criteria has no business in the actual Ordinance, stating it's actually an implementation tool that hasn't been developed. Staff drew this line that there is the Ordinance and then there is implementation, and to keep those clear, staff will return to the City Council in the form of a resolution establishing the 46 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING SEPTEMBER 28, 2017 DRAFT policy. It was not staff's intention to cause confusion, because they have been saying from the beginning there will be challenges along the way. He said cities all over are inventing an industry, but it was staff's intention to keep the merit -based system aside from the Ordinance. Councilmember Kelly responded she's completely persuaded that it's a good idea, but she would guess that some of the things submitted in support of a regulatory permit are things you would want to have prior when making the merit -based assessment. Therefore, she's struggling with whether it made sense for the City to move along the Ordinance before staff has completed this other track, stating it would be more efficient to complete the other track to ensure the Ordinance gives staff the information needed. Councilmember Weber asked if staff heard anything this evening where it felt it needed to make further tweaks or adjustments during the second reading. Mr. Ceja responded there were several recommendations made during the public comment, which staff suggested incorporating, including reviewing CC&Rs and expanding the definition for testing to include research facilities. Mayor Pro Tem Jonathan stated he thought RAP had purchased property and are leasing to non -profits who operate primarily administrative functions in those offices and hold board meetings, etc. He said staff may want to think about how the City defines youth oriented businesses, child care, etc. For example, if there is mix use where a building has occasional activity with children, which may or may not be the case with RAP, does that rise to the level of the 600-foot buffer. He commented that he sympathized with staff and the City Council, because this was new to everyone, adding he heard staff say it wanted to do its best, get the information, and move forward with an ordinance. However, Ordinances were made to be amended when items or issues are not anticipated. Another item is matter of medical care, this evening Council heard a lot of testimony on it, so he wanted to be clear, because this Ordinance doesn't distinguish between medical and recreational. So when discussing retail dispensaries, it's up to the marketplace to determine if it's medical, recreational, or both, which is allowed if all the criteria is met. The other item was to add the word "research" wherever "testing" occurs, which staff has already indicated it will address it. His next question was on the comment that three of any kind would be allowed on one street. Councilmember Kelly said it was three (3) retail stores on one street. Mayor Pro Tem Jonathan stated that in theory if a street qualified somewhere for commercial, it could have other cannabis businesses, but no more than three retail stores. In moving onto comments, the thing that came to his attention was El Paseo. He knew there are retailers on both sides of 47 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING SEPTEMBER 28, 2017 -xmr the issue, and he comes down on the side that it's okay if done property, but only if it elevates the street rather than diminishes it, and based on what he has heard and seen, he believed it was entirely possible. However, he would start with a limit of one, because if it doesn't work, he wouldn't want to create more of a problem. Therefore, out of the six (6) that will be selected, he suggested El Paseo be limited to one (1) retail dispensary, at least initially. Councilmember Kelly stated there are folks that are very resolved that this would harm the high -end character of the street, and others that it will help business, which tells her that if a dispensary is allowed on El Paseo, the City is basically experimenting to see who's right. The high -end character of El Paseo is so critical to our economy and the character of the community that she doesn't see it as a place to experiment. She said the City is going to be making a slow start at a variety of locations in the City, so she suggested waiting to see how that goes to see if it's a positive force, such that we may begin to see some unanimity of opinion from El Paseo merchants. Since the City is starting slow, she just couldn't be persuaded to experiment on El Paseo, so she would prohibit a dispensary there. Councilmember Weber asked what Councilmember Kelly thought would happen, because the City wouldn't let a bad business go in there. The City will have guidelines and obviously, it will be expensively done because of the nature of El Paseo. She asked Councilmember Kelly what were her fears to make her think something would go wrong. Councilmember Kelly responded it was not an issue of her fears, stating it was based on the public's testimony from those who maintain relationships with high -end retail that this could damage retention of high -end retail merchants. She's not in that business, so she's inclined to be deferential of those who do strive to retain relationships with high -end retail when they tell her this could be potentially harmful to retaining those relationships. Councilmember Weber pointed out there was public opinion on both sides of the issue where one speaker said it was harmful and another said it wasn't. Councilmember Kelly agreed, which is why she considers it an experiment. Mayor Pro Tem Jonathan added that Councilmember Kelly's comments resonated with him, but he would offer that this whole Ordinance is an experiment, stating the City has never had retail recreational cannabis in California, much less in the Coachella Valley or Palm Desert. Therefore, he felt the City was experimenting whether it liked it or not, and El Paseo is part of the variation of that theme. The other observation he would offer is that some may recall when it didn't have the Palm Desert Town Center, when it was originally proposed, there was great concern by the El Paseo 48 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING SEPTEMBER 28, 2017 DRAFT Merchants. They objected saying a mall would drive business away and that there would be lower priced goods, and others said it would bring customers to El Paseo, and it turned out to be the case. His hope is that by bringing the right kind of business to El Paseo that compliments the streets, the City will have a repeat of that event. He suspects that when higher rents have to be paid combined with staff's oversight, he is hopeful and optimistic that the dispensary will complement El Paseo. Councilmember Weber added that people that shop at Gucci's and likewise will appreciate being able to obtain their cannabis nearby. Councilmember Kelly said there will be plenty of time to add to El Paseo if the City doesn't start there, and it's not quite the same as building a mall, stating you couldn't experiment with a little mall to see how it goes, you either build the mall or not. She said this was a different scenario and the City has the opportunity to start in other places to gain experience and build some unanimity of opinion. Mayor Pro Tem Jonathan said the next item is on the testing and research facilities where there is a 500-foot separation. He gets the objective there, but it has the potential to be a fledgling industry where the City can in fact become a scientific research center, which is not far flung. He said there is already a lot of growing and there are millions of square feet of growth in the Coachella Valley. He said the City has an education center in Palm Desert and it has an opportunity to have a science -based industry. Therefore, to have a 500-foot separation zone will present an obstacle rather than an invitation to that industry. He said it would make sense to increase the separation or eliminate it, but only for research and testing facilities. Councilmember Weber said she would support eliminating it, because she agreed with Mayor Pro Tem Jonathan that the City prides itself on education and research falls right into it. Councilmember Kelly commented that her opinion was moot. Mayor Pro Tem Jonathan stated the two mentioned items were the only two tweaks he felt needed to be addressed, including the ones that staff discussed. He said it's been a difficult process and again commends the team for going through this process and obtaining incredible amount of input from all stakeholders and then coming up with something that meets the requirements of the State and hopefully it will reflect the vision of Palm Desert and its residents. Councilmember Kelly offered for discussion that the buffer for Conditional Use Permits and cultivation around schools is a 600-foot buffer, but it has a 1,000-foot prohibition for promotion. She would like making those consistent 49 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING SEPTEMBER 28, 2017 D, with a 1,000-foot buffer for CUPs and cultivation around schools, etc. Responding to question, she said College of the Desert didn't meet the definition criteria for school. The definition for school is limited through 12th grade. Mayor Pro Tem Jonathan asked if Councilmember Kelly was referring to growth, cultivation, and retail, and was she also wanting to include any kind of cannabis business. Councilmember Kelly replied the current buffer refers to CUPs for commercial cannabis business, which she would take to be all inclusive. Further responding, she said the current revision creates a buffer of 600-feet for schools providing instruction in kindergarten grades 1 throughl2, day care centers, youth centers, etc., pursuant to State law, but there is also a revision which prohibits the promotion of cannabis or cannabis products within 1,000 feet of those same locations. Therefore, she suggested a regulatory approach would be more consistent if the City made that CUP buffer 600-feet. Mayor Pro Tem Jonathan offered it only applied to retail dispensaries, because there was testimony that growth, research, and testing facilities, are fairly innoxious. Perhaps a 600-foot buffer for those would be adequate. In other words, leave the 600-foot buffer for research and testing, but have a 1,000-foot buffer for both location and advertising. Councilmember Weber said she understood it would be a1,000-feet buffer for retail around schools, and the others would be 600-feet. Mayor Pro Tem Jonathan added those would still be subject to the 1,000-foot advertising requirement, acknowledging there is a little inconsistency there, but that would be their issue. Councilmember Weber pointed out that even though there is an Ordinance that would allow certain things, staff would still use common sense when examining each request. Councilmember Kelly stated the Ordinance was not ready to move to second reading based on the number to tweaked being made to it, and it needed to come back with the changes in order for the City Council to verify what has been done. Mr. Hargreaves agreed, stating the Ordinance cannot be tweaked between first and second reading. Staff can make non -substantive corrections, but a substantive tweak would have to be done this evening before adopting. 50 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING SEPTEMBER 28, 2017 DRAFT Mayor Pro Tem Jonathan said he thought the purpose of this meeting was to develop an Ordinance, and all that is in writing is a proposed Ordinance, so if it's tweaked this evening, can it be adopted. Mr. Hargreaves responded the City Council can pass the Ordinance if it comes up with the exact language that will be used. Mayor Pro Tem Jonathan expressed his desire to do so, because he believed the Council owed it to the community. He said the community has struggled through this along with Council and staff long enough. Also, January 1 is almost here, and if the State delays the issuance of permits, that's on them, but he didn't want the City to be the delay. Councilmember Kelly suggested giving the Ordinance back to staff to fine tune the language, because it's not going to delay the point of when the City goes live, and staff still has work to do on the merit -based selection criteria. If the Ordinance is brought back at the second meeting in October with all of the corrections made, Council will be in a position to adopt it in November. Mr. Hargreaves added staff has the issue of the selection criteria, which will need to come forward any way. He reminded the City Council this was a consensus effort, because the City needs three votes to get the Ordinance adopted. Mayor Pro Tem Jonathan commented he understood, which is why he was hoping to draft a motion, stating the question of the criteria issue is a policy issue and doesn't touch on legal issues. However, if Mr. Hargreaves was giving the Council legal advice that it would be unwise to do a first pass and inappropriate from a legal standpoint, than it would be imprudent not to follow the advice from Counsel. Mr. Hargreaves responded he wouldn't provide a bright red line about what Council can or can't do between first and second reading, but there are concepts that have come up this evening that will require some thought. For instance, this idea of reviewing CC&Rs, stating staff went through that with the short-term rentals, and it's not a non -trivial exercise. Further responding, he confirmed that in order to pass the Ordinance, it will need a total vote of three, but tonight if all its doing is giving direction to staff, Council can move forward with two votes. Mayor Pro Tem Jonathan suggested reviewing some of the changes, in an effort to move forward, to see if there was a consensus. Items discussed this evening are as follows: 1)The first would be to allow retail dispensaries on El Paseo, but limited to one; 2) eliminate the separation buffer for research and testing facilities; 3) modify the buffer with regards to schools and youth activities for retail dispensaries to 1,000 feet; 4) He recalled 51 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING SEPTEMBER 28, 2017 DRAFT hearing staff say they are going to modify the research and testing language. Councilmember Kelly said she hasn't changed her mind about El Paseo, but if Mayor Pro Tem Jonathan and Councilmember Weber won't change their minds, she will endorse the limitation of dispensaries to one on El Paseo so not to hold up the Ordinance. Councilmember Weber added she was uncomfortable with limiting it to one, because there are a lot of vacant spaces on El Paseo and she suspects there are a few businesses that would like to have the opportunity to rent out. Again, she didn't believe it will be a problem, stating she wholeheartedly supports and trusts the Architectural Review Commission and Planning Commission to not allow anything negative to happen on El Paseo. Mayor Pro Tem Jonathan agreed, but he came up with a reasonable compromise, stating it can always be modified at a later time if things are working well and there is a demand. Mr. Hargreaves interjected stating staff has the CC&Rs on the list of things it has to review and it can go different ways, which makes him nervous, because he doesn't want to get between associations. He said it may have to approach it like it did with the short-term rentals, which is that it has to be clear that its prohibited or the City will leave it to them to sort it out, adding that staff or the City Manager will make that decision. Mayor Pro Tem Jonathan said the review of CC&Rs will be the fifth item. Responding to question, he said the fourth item was adding research, in that research and testing were synonymous. Councilmember Kelly suggested it was a matter of word smithing and it could probably be done in the definition. Mr. Hargreaves stated that in terms of the buffers for child -related uses, staff is going to leave those definitions the same, they are not going to expand on it. Mayor Pro Tem Jonathan believed the definition needed to be tightened, because his concern is that for mix -used properties you can have a building that has a day care, but also offices. So if a building has 20% daycare, would that be a restricted area and/or subject to the buffer. Councilmember Kelly said she didn't believe Council could put that on the list if it wanted clarity this evening, but it would fall back on the fact that the City is going to start with six (6) and staff will look for the optimal locations. 52 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING SEPTEMBER 28, 2017 DRAFT Mayor Pro Tem Jonathan replied he was trying to address the comments he heard from RAP at this meeting and the last one, but if his colleagues were comfortable with the way it is, then fine, but it's an issue that may pop up. Councilmember Kelly recalled an exchange with staff in which she was assured that land -use compatibility is a standard consideration for issuance of a CUP, so the presence of RAP could be taken into account. Mayor Pro Tem Jonathan reiterated there are five areas that need to be tweaked as discussed, and he heard a consensus on the Council for staff to move forward with it and return with a revised Ordinance at the first meeting in October. Mr. Hargreaves offered it would be best to re -open the public hearing and continue it to a date certain; however, Council is not required to re -open it. Councilmember Weber moved to close the public hearing and CONTINUED to the meeting of October 12, 2017, in order to present an amended Ordinance No. 1329, as proposed. Motion was seconded by Kelly. Mayor Pro Tem Jonathan commented he enjoyed the process the City went through for gathering public input, listening to excellent staff, having constructive discussions, asking each other questions, changing of the mind when it hears something it hadn't heard before, and it's not lost on him that most cities don't have it. He thanked everyone for being part of the process. Mayor Pro Tem Jonathan called for the vote and the motion carried by a 3-0 vote (AYES: Kelly, Weber, and Jonathan; NOES: None; ABSENT: Nestande and Harnik). XX. ADJOURNMENT With City Council concurrence, Mayor Harnik adjourned the meeting at 7:50 p.m. ATTEST: RACHELLE D. KLASSEN, CITY CLERK CITY OF PALM DESERT, CALIFORNIA JAN C. HARNIK, MAYOR 53