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HomeMy WebLinkAboutPreliminary Minutes - City Council - August 27, 2015PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING THURSDAY, AUGUST 27, 2015 CIVIC CENTER COUNCIL CHAMBER 73510 FRED WARING DRIVE, PALM DESERT, CA 92260 I. CALL TO ORDER - 3:00 P.M. Mayor Weber convened the meeting at 3:00 p.m. II. ROLL CALL Present: Councilmember Jan C. Harnik Councilman Sabby Jonathan Mayor Pro Tern Robert A. Spiegel Mayor Susan Marie Weber Absent: Councilman Van G. Tanner Also Present: Rudy P. Acosta, Assistant City Manager Robert W. Hargreaves, Assistant City Attorney Rachelle D. Klassen, City Clerk Russell Grance, Director of Building & Safety Lauri Aylaian, Director of Community Development Martin Alvarez, Director of Economic Development Paul S. Gibson, Director of Finance/City Treasurer Janet M. Moore, Director of Housing Mark Greenwood, Director of Public Works Bo Chen, City Engineer Stephen Y. Aryan, Risk Manager John Cortez, Battalion Chief, Palm Desert Fire/Riverside Co. Fire Dept./Cal Fire Bill Sullivan, Asst. Chief, Palm Desert Police/Riverside Co. Sheriff's Department Grace L. Mendoza, Deputy City Clerk III. ORAL COMMUNICATIONS - A (CLOSED SESSION ITEMS) None IV. ADJOURN TO CLOSED SESSION Request for Closed Session: PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 27, 2015 A. Conference with Real Property Negotiator pursuant to Government Code Section 54956.8: 1) Property: Lease Property - Parkview Professional Office Complex, 73710 Fred Waring Drive, Suite Nos. 219 & 220, Palm Desert Negotiating Parties: Agency: John M. Wohlmuth/Paul S. Gibson/City of Palm Desert Property Owner: City of Palm Desert Other Parties: The Altum Group Under Negotiation: x Price x Terms of Payment 2) Property: APN 627-071-013 Negotiating Parties: Agency: John M. Wohlmuth/Rudy P. Acosta/Martin Alvarez/ City of Palm Desert Property Owner: David & Agnes Holtz Under Negotiation: x Price x Terms of Payment 3) Property: APN 620-421-082 Negotiating Parties: Agency: John M. Wohlmuth/Rudy P. Acosta/City of Palm Desert Property Owner: WVC Rancho Mirage, Inc. Under Negotiation: x Price x Terms of Payment B. Conference with Legal Counsel regarding significant exposure to litigation pursuant to Government Code Section 54956.9(d)(2): Number of potential cases: 2 With City Council concurrence, Mayor Weber adjourned the meeting to Closed Session at 3:01 p.m. She reconvened the meeting at 4.05 p.m. V. RECONVENE REGULAR MEETING - 4:00 P.M. _:7�lil:4JKi]i•I_[��[�]���:Z�7�[�l���y��>�y None VI. PLEDGE OF ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA - Councilman Sabby Jonathan VII. INVOCATION - Mayor Pro Tern Robert A. Spiegel 2 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 27, 2015 VIII. ORAL COMMUNICATIONS - B MS. STACEY ESTRADA, Relay For Life Manager from the American Cancer Society, Palm Desert, announced their upcoming Palm Desert Relay on Saturday, October 3, and asked for the City Council's support. She was joined at the podium by City of Palm Desert Senior Office Assistant Janine Judy, who's been involved with Relay for the past eight years and is this year serving as Event Lead for the Palm Desert Relay. Ms. Estrada went on to say that Ms. Judy has organized a City Team, and their fund-raising events at the City have included breakfast buffets, bake sales, chili cook -offs, and silent auctions, raising $4,322 to date, which was a huge impact to the overall goals. Today, Ms. Estrada asked if Council would support the City's team organized by Ms. Judy by making a matching -dollar contribution to make a significant representation at the 2015 event. She also invited Councilmembers to the Palm Desert Relay and provided fliers for posting at City offices. Mayor Weber thanked Ms. Estrada and said Councilmembers were all very familiar with the event. She added that they were also very pleased that Ms. Judy's taking such a lead with the effort and appreciated her tremendous enthusiasm. MS. ESTRADA also made a proclamation request for the City to declare October 2015 as "Palm Desert Relay For Life Cancer Awareness Month" that she would return to a future meeting to accept, and Mayor Weber agreed to consider her request. In response to comment, Ms. Estrada confirmed that this year's event is being held at Southwest Community Church, noting that it had been held at Palm Desert High School in previous years. She said as a non-profit they have to watch costs, and this year Southwest was donating use of their lawn space for the event. RONALD S. LEVEY, M.D., said he was an orthopedic surgeon in practice for 45 years and today was asking City Council to consider changing its tobacco retail licensing regulation to increase the purchasing age from 18 to 21 years. He noted that he had a great deal of documentation and statistics to back up his request, highlighting that most people who initiate smoking in their teens become addicted within 5-10 years. People who are addicted to tobacco products have significant health issues, even at a young age; and the amount of money spent for medical care on these people is staggering. He said it's very difficult for these people to be weaned from using tobacco products — approximately 90% of them cannot. However, if people initiate tobacco use on a daily basis after age 20-21, it's easier to convert them to non-use. Further, illnesses associated with tobacco use are well known — heart attack, stroke, lung cancer, COPD, throat and mouth cancer. He said the cost in these areas to the general public and to insurance companies is billions of dollars nationally. Some cities have already invoked the increased purchase age regulation, and he requested City of Palm Desert considerthis course K PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 27, 2015 of action as well. He presented hand-outs for Council's reference of his position and that of the National Institute of Health and offered to answer any questions that they may have by contacting him at the number on his business card. He acknowledged that it's not a simple issue, as it's a matter of deciding between personal choices and limiting them for the benefit of the public. He reiterated that it was a staggering to know how much smoking affects the general population and the cost of medical care across the nation, asking for Council to contact him with their feedback about his request, particularly if they were opposed to it. MS. WENDY JONATHAN, President of the Board of Education, Desert Sands Unified School District, addressed the City Council to express sincere appreciation for the City's support of programs at Palm Desert schools. She said at their recent Board Meeting, they voted on three agreements with the City on their agenda. One was City of Palm Desert giving $25,000 to the Early Childhood Development Program, another was $75,000 to the After School Program (ASES) at Lincoln Elementary School, and lastly was $75,000 to the ASES Program at Palm Desert Charter Middle School. She added that ASES Program helps students do their homework after school, along with providing enrichment programs like Robotics and Art, and such programs may not exist without the City's generous contributions. MS. NIKOHL VANDEL, Desert Hot Springs, CA, acknowledged Ms. Jonathan's kind words of appreciation to the City for its support of Palm Desert students. She said it wasn't often that she witnessed such cooperation between government agencies to make the community stronger, and she applauded it. This brought her back to the topic of the City's housing — being of a nature that it creates houses for those coming out of extreme realities that are unimaginable by most. She said really encompassing the family concept here is going to be very important for the entire region in dealing with this problem. She thanked City Council for allowing her to share herthoughts and suggestions and thanked CounciImembers for their service. MR. MARTY HARTLEY, Habitat For Humanity, provided a brief update about the project they're undertaking on San Benito with property donated by the City by first expressing a big thanks for donation of this land. He said they're getting ready to build on the land, committed to being dedicated to two Veteran Homes as the City requested, and helping Habitat meet its objective of providing safe, affordable homes in Palm Desert. He went on to announce and invite Councilmembers to be part of their kickoff celebration where the Home Depot Foundation is going to be partnering with Habitat by bringing 125 of their vendors to the site on September 16. They'll be raising the walls of the two homes that day, as well as providing desert landscaping on the properties, along with four other homes in the neighborhood to help beautify it. He said the program would begin at 7:30 a.m. and go for around four hours to end up with two framed homes that day, and there will be speaking opportunities provided there. Due to timing issues, they were unable to do a formal groundbreaking prior to the upcoming event. He then made a special point to thank City of Palm Desert staff for the tremendous amount of help they've provided. After 0 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING working with a number of cities in complimentary of Palm Desert staff and them through the necessary processes. Councilmembers had. AUGUST 27, 2015 the Coachella Valley, he was highly appreciated all their attention in walking He offered to answer any questions City Mayor Weber said Mr. Hartley should expect to see many of the Council there that day. She agreed that Councilmembers were equally appreciative of City staff and their professionalism. IX. AWARDS, PRESENTATIONS, AND APPOINTMENTS A. PRESENTATION OF PROCLAMATION DECLARING SEPTEMBER 2015 AS "EMPLOYMENT MONTH" IN THE CITY OF PALM DESERT. On behalf of the entire City Council, Mayor Weber presented the proclamation to Mr. Clark Staehle and an associate. Mr. Staehle graciously accepted the recognition and noted that they would be hosting a Job Expo on September 10 at Fullenwider Auditorium at the Riverside County Fair and National Date Festival Grounds in Indio — all are welcome to attend. He went on to announce that they have a website with even more information: www.desertgobexpo.com, along with numerous employment services available at the Workforce Development Center in Indio. He said the process works, noting that he and his associate here today were products of the system, as is the City's own City Clerk's Clerical Assistant Rae Munoz. B. PRESENTATION OF PROCLAMATION DECLARING SEPTEMBER 7 - 13, 2015, AS "SUICIDE PREVENTION WEEK" IN THE CITY OF PALM DESERT. On behalf of the entire City Council, Mayor Weber presented the proclamation to David Muth and Board Members of the local chapter of The American Foundation for Suicide Prevention. Mr. Muth said the Foundation was a volunteer organization and recognized the Board Members here with him today. He thanked Mayor Weber for this recognition, noting that one of the greatest things that people can do to prevent suicide is to bring it out into the open and speak about it — asking if someone's okay, if you can help them, and telling them that they matter to you. He said these simple acts can change the course of someone's life. It was a difficult thing to talk about, but their volunteer organization here in the desert reaches out to anyone affected by suicide through education and community events, including the upcoming fund-raiser at CJ's Mongolian Wok in La Quinta on September 12, a Survivors of Suicide Loss Day on 5 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 27, 2015 September 21, and their annual walk in Palm Desert is on March 26. He invited everyone to attend and become part of the Suicide Prevention Movement. C. REQUEST FOR APPOINTMENT OF MAHASTI ISLAMI TO THE MARKETING COMMITTEE TO FILL THE UNEXPIRED TERM OF SARA O'FLYNN (DECEMBER 2015). Mayor Pro Tern Spiegel moved to, by Minute Motion, appoint Ms. Mahasti Islami of The Gardens On El Paseo to the Marketing Committee to fill the unexpired term of former Member Sara O'Flynn (December 31, 2015). Motion was seconded by Harnik and carried by a 4-0 vote (AYES: Harnik, Jonathan, Spiegel, and Weber; NOES: None; ABSENT: Tanner). X. CONSENT CALENDAR A. MINUTES of the Regular City Council Meetings of July 9, July 23, and August 13, 2015. Rec: Approve as presented. B. CLAIMS AND DEMANDS AGAINST THE CITY TREASURY - Warrants Dated 6/15/2015, 7/7/2015, 7/8/2015, 7/9/2015, 7/15/2015 (2), 7/17/2015, 7/24/2015, 7/28/2015, 7/31 /2015, 8/7/2015, and 8/11 /2015. Rec: Approve as presented. C. CLAIMS AND DEMANDS AGAINST THE CITY/HOUSING TREASURIES - Warrants Dated 7/9/2015 (2), 7/17/2015, 7/24/2015, 7/31/2015, 8/7/2015, and 8/14/2015 (Joint Consideration with the Palm Desert Housing Authority). Rec: Approve as presented. D. COMPLIANCE ANALYSIS AND INVESTMENT REPORTS for the Months of May 2015 and June 2015 (Joint Consideration with the Successor Agency to the Palm Desert Redevelopment Agency). Rec: Receive and file. 101 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 27, 2015 E. AUDIT, INVESTMENT & FINANCE COMMITTEE Minutes for the Meetings of May 26 and June 23, 2015. Rec: Receive and file. F. APPLICATION FOR ALCOHOLIC BEVERAGE LICENSE by Dreamland Liquor, 39615 Washington Street, #A, Palm Desert. Rec: Receive and file. G. APPLICATION FOR ALCOHOLIC BEVERAGE LICENSE by The Hood, 74360 Highway 111, Palm Desert. Rec: Receive and file. Approved 3-0-1. (AYES: Harnik, Jonathan, and Spiegel; NOES: None; ABSENT: Tanner; ABSTAINING: Weber) H. APPLICATION FOR ALCOHOLIC BEVERAGE LICENSE by Walmart Neighborhood Market #3026, 72314 Highway 111, Palm Desert. Rec: Receive and file. APPLICATION FOR ALCOHOLIC BEVERAGE LICENSE by Westin Desert Willow Villas, 75 Willow Ridge, Palm Desert. Rec: Receive and file. J. LETTER OF RESIGNATION from Diane Williams - Marketing Committee. Rec: Receive with very sincere regret. K. REQUEST FOR DECLARATION of Miscellaneous Visitor Center Retail Fixtures, Office Furniture, and Equipment as Surplus and Authorization of its Sale and Disposal As Proposed, and for Transfer of Unsold Retail Inventory to Promotional Items. Rec: By Minute Motion, declare Palm Desert Visitor Center retail fixtures, cabinets, office furniture, equipment, and miscellaneous items as surplus and authorize the sale and disposal as proposed, and transfer any unsold retail inventory to promotional items. 7 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 27, 2015 L. RESOLUTION NO. 2015 - 71 - A Resolution of the City Council of the City of Palm Desert, California, Setting Forth Its Findings and Authorizing the Destruction of Closed Case Files Dated 2012 from the Department of Code Compliance that Have Been Digitally Imaged. Rec: Waive further reading and adopt. M. RESOLUTION NO. 2015 - 72 - A Resolution of the City Council of the City of Palm Desert, California, Setting Forth Its Findings and Authorizing the Destruction of Temporary Use Permits Dated 1991-1997 from the Department of Community Development that Have Been Digitally Imaged. Rec: Waive further reading and adopt. N. RESOLUTION NO. 2015 - 68A - A Resolution of the City Council of the City of Palm Desert, California, Declaring the Results of a Property Owner Protest Proceeding for the President's Plaza Property and Business Improvement District, and Approving Certain Related Actions for Fiscal Year 2015-2016. Rec: Waive further reading and adopt. O. REQUEST FOR ACCEPTANCE OF BID from iColor Printing and Mailing in the Amount of $10,130.40 for Printing of the 2016 City Calendar. Removed for separate consideration under Section XI, Consent Items Held Over. Please see that portion of the Minutes for Council discussion and action. P. REQUEST FOR APPROVAL of Contract with Vision Internet in the Amount of $6,600 Plus 5% Per Year Thereafter — Visionlive Subscription Service Agreement for Hosting, Archiving, and Upgrading City, Police, and Tourism Websites (Contract No. C34710). Rec: By Minute Motion, approve the subject contract with Vision Internet in the amount of $6,600 plus 5% per year thereafter for Hosting, Archiving, and Upgrading City, Police, and Tourism Websites; 2) authorize the City Manager to execute said contract — funds are budgeted in Account No. 1104190-4336000 for FY 2015-2016. PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 27, 2015 Q. REQUEST FOR APPROVAL of Change Order No. 1 in the Amount of $3,600 to Contract No. C32621 — Landscape Maintenance Area No. 7 (Project No. 907-13). Rec: By Minute Motion, approve Change Order No. 1 to increase the subject contract with Kirkpatrick Landscaping, Inc., Indio, California, by the amount of $3,600 for Landscape Maintenance Area No. 7 — funds are available in Landscape and Lighting District Account No. 2774373-4332000. R. REQUEST FOR AUTHORIZATION to Reject All Bids Received forthe Fiscal Year 2015-2016 Tree Pruning Project at Desert Willow Golf Resort (Contract No. C34690). Rec: By Minute Motion: 1) Reject all bids received for the FY 2015-2016 Tree Pruning Project at Desert Willow Golf Resort; 2) authorize staff to re -bid the project. S. REQUEST FOR APPROVAL of Out -of -State Travel for the City's Tourism and Marketing Manager and Public Information Officer to Attend the 2015 City -County Communications and Marketing Association (3CMA) Conference in Atlanta, Georgia — September 9-11. Rec: By Minute Motion, authorize the City's Tourism and Marketing Manager and Public Information Officer to attend the 2015 3CMA Conference in Atlanta, Georgia, from September 9 - 11 — funds are available in General Fund Account Nos. 1104417-4312000 and 1104130-4312000. T. REQUEST FOR APPROVAL of Out -of -State Travel for the Director of Public Works to Attend the American Society of Civil Engineers Continuing Education Event in Las Vegas, Nevada — September 20-22, 2015. Rec: By Minute Motion, authorize out-of-state travel for the Director of Public Works to attend the American Society of Civil Engineers (ASCE) Continuing Education Event in Las Vegas, Nevada, from September 20-22, 2015 — funds are available in Account No. 1 104300-4312000 - Administration Conference/Seminars/Workshops. N PRELIMINARY MINUTES DRAB ai REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 27, 2015 U. REQUEST FOR APPROVAL of the Annual Public Safety Enterprise Communications (PSEC) System's Operational Costs for the Palm Desert Police Traffic Team in the Amount of $26,000. Rec: By Minute Motion, authorize approval of the Annual Public Safety Enterprise Communications (PSEC) System's Operational Costs from the Riverside County Information Technology (RCIT) Department for the Palm Desert Traffic Team in the amount of $26,000 — Supplemental Law Enforcement Services Fund (SLESF-CalCOPS) is available to cover this expenditure. V. REQUEST FOR APPROVAL of Payment in the Amount of $39,915.65 to the Palm Springs Art Museum in Palm Desert for Installation of Three Sculptures and Associated Lighting Costs. Rec: By Minute Motion, approve funding in the amount of $39,915.65 to the Palm Springs Art Museum (PSAM) for costs related to installation of three sculptures and associated lighting costs — funds are available in the FY 2014-2015 Budget, Account No. 1104800-4388500, for this payment. W. REPORT on the Extension of Lease Agreement with the Palm Springs Art Museum in Palm Desert at 72567 Highway 111 (Contract No. C29860). Rec: By Minute Motion, receive and file the report with Lessee Option to Extend the subject Lease Agreement for the Palm Springs Art Museum in Palm Desert. X. REQUEST FOR AUTHORIZATION for the Mayor to Execute the Agreement to Purchase Tax -Defaulted Property Located in the City of Palm Desert, As Requested by the Coachella Valley Water District (Contract No. C34720). Rec: By Minute Motion, authorize the Mayor to execute the Agreement to Purchase Tax -Defaulted Property located in the City of Palm Desert, as requested by the Coachella Valley Water District. Y. INFORMATIONAL REPORT Related to Water Conservation Efforts. Removed for separate consideration under Section XI, Consent Items Held Over. Please see that portion of the Minutes for Council discussion and action. ius PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 27, 2015 Z. INFORMATIONAL REPORT on the "Swing N' Hops" Street Party for First Weekend February 6, 2016, on El Paseo. Rec: By Minute Motion, receive and file the report. Councilman Jonathan asked that Items O and Y be removed for separate consideration under Section XI, Consent Items Held Over, and Mayor Weber noted she would be abstaining on Item G. Upon a motion by Spiegel, second by Harnik, and 4-0 vote of the City Council (AYES: Harnik, Jonathan, Spiegel, and Weber; NOES: None; ABSENT: Tanner), the remainder of the Consent Calendar was approved as presented. XI. CONSENT ITEMS HELD OVER O. REQUEST FOR ACCEPTANCE OF BID from iColor Printing and Mailing in the Amount of $10,130.40 for Printing of the 2016 City Calendar. Councilman Jonathan commended staff for keeping the cost down and for trending downward. He asked if consideration was given to corporate sponsorship for the printing of the Calendar, which might offset the cost entirely. Management Analyst David Hermann replied staff had not considered that option, but it was something they could for future calendars. Councilman Jonathan said that would be his suggestion, proposing it can be something subtle and professional, i.e., a statement saying "this month is sponsored by Costco." Councilmember Harnik moved to, by Minute Motion, accept the bid from iColor Printing and Mailing, Los Angeles, California, in the amount of $10,130.40 — funds are available in the 2015-2016 Marketing Budget, Account No. 1104417-4309100. Motion was seconded by Spiegel and carried by a 4-0 vote (AYES: Harnik, Jonathan, Spiegel, and Weber; NOES: None; ABSENT: Tanner). Y. INFORMATIONAL REPORT Related to Water Conservation Efforts. Councilman Jonathan advised the Council, as a matter of public record, that he and Councilman Tanner have received a number of comments and emails expressing concerns about the condition of the parks, ball fields, and soccer park. He said Councilman Tanner was and continues to be out of town, but the City Manager, Senior Management Analyst Ryan Stendell, and himself walked the parks and viewed areas that are significantly deteriorated; however, staff is working on a solution. He wants to make sure that people 11 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 27, 2015 are aware that while the City is under a mandate to reduce water usage, staff is aggressively looking for solutions that will minimize the damage to the parks. Particularly with the upcoming season, the City needs to make them as attractive and useable as possible. Councilman Jonathan moved to, by Minute Motion, receive and file the Informational Report related to Water Conservation Efforts. Motion was seconded by Spiegel and carried by a 4-0 vote (AYES: Harnik, Jonathan, Spiegel, and Weber; NOES: None; ABSENT: Tanner). XII. RESOLUTIONS A. RESOLUTION NO. 2015 - 73 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, APPROVING THE FINAL SUBDIVISION MAP OF TRACT NO. 36793-1 (Palm Desert University Gateway, LLC, Applicant). Mr. Greenwood stated this was the first residential tract of the Millennium Development that is situated roughly to the north east corner of Portola Avenue and Gerald Ford Drive. He said everything was in order with the map and staff recommended approval. Mayor Pro Tern Spiegel moved to waive further reading and adopt Resolution No. 2015 - 73. Motion was seconded by Harnik and carried by a 4-0 vote (AYES: Harnik, Jonathan, Spiegel, and Weber; NOES: None; ABSENT: Tanner). B. RESOLUTION NO. 2015 - 74 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, APPROVING TRACT MAP NO. 36816 AND THE IMPROVEMENT AGREEMENT RELATING THERETO (Absolute Partners One, LLC, Applicant). Councilmember Harnik stated she would recuse herself on this item and left the Council Chamber. Mr. Greenwood explained this was a small sub -division on Shadow Mountain Drive in south Palm Desert. He said staff was recommending approval of the map subject to final approval of some details by the City Attorney and City Surveyor. Therefore, staff recommended Council's conditional approval. Mayor Pro Tern Spiegel moved to waive further reading and adopt Resolution No. 2015 - 74, with the map being approved conditionally, subject to the final approval by the City Attorney and City Surveyor. Motion was seconded by Jonathan and carried by a 3-0 vote (AYES: Jonathan, Spiegel, and Weber; NOES: None; ABSENT: Harnik and Tanner). 12 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 27, 2015 C. RESOLUTION NO. 2015 - 75 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, AMENDING AND ADOPTING LOCAL GUIDELINES FOR IMPLEMENTING THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) (PUB. RESOURCES CODE §§ 21000 ET SEQ.). Principal Planner Tony Bagato stated this item was the annual update that's provided by the City Attorney's office. The updates are consistent with changes based on case law. Mayor Pro Tern Spiegel moved to waive further reading and adopt Resolution No. 2015 - 75. Motion was seconded by Harnik and carried by a 4-0 vote (AYES: Harnik, Jonathan, Spiegel, and Weber; NOES: None; ABSENT: Tanner). XIII. ORDINANCES A. For Introduction: None B. For Adoption: ORDINANCE NO. 1288 - AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, ADDING SECTION 15.17 TO THE MUNICIPAL CODE RELATING TO EXPEDITED PERMITTING PROCEDURES FOR SMALL, RESIDENTIAL ROOFTOP SOLAR SYSTEMS. Mr. Grance noted the staff report, stating this was the second reading of the Ordinance. Mayor Pro Tern Spiegel moved to waive further reading and adopt Ordinance No. 1288. Motion was seconded by Harnik and carried by a 4-0 vote (AYES: Harnik, Jonathan, Spiegel, and Weber; NOES: None; ABSENT: Tanner). XIV. NEW BUSINESS A. CONSIDERATION OF FACADE ENHANCEMENT PROGRAM (FEP) FUNDING FOR PROPERTY LOCATED AT 73703 HIGHWAY 111, PALM DESERT (DELROD LLC/Casuelas Cafe, Applicant). Councilmember Harnik stated she would recuse herself on this item and left the Council Chamber. 13 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 27, 2015 Mr. Alvarez stated this item was consideration of a Facade Enhancement Program funding for Las Casuelas Cafe at 73-703 Highway111, which is located on the south side of Highway 111, east of Larkspur Lane, and west of San Luis Rey. The Applicant has gone through a Conditional Use Permit (CUP) process and Architectural Review Commission(ARC) to provide upgrades and facade enhancement to both the front and rear elevations. He displayed the site map with before and after elevations, and views from Highway 111. The majority of the work being proposed is in the frontage road parking lot on Highway 111. The plan is to remove the parking lot to bring the building out to the north to be aligned with the other buildings on Highway 111. There will be an outdoor stage and plaza with a shade structure, including an expansion of drought -tolerant landscaping and added features to enhance the outdoor dining experience. The proposed improvement to the rear elevation is an entry structure that will help identify the entrance by making it more prominent. He showed a diagram of where the stage, patio area, and canopy structure will be located. Staff reviewed this project from a facade enhancement eligibility standpoint, and the 125-foot frontage and rear frontage makes this project eligible for the full $75,000 funding, which is the City's maximum. The improvements being proposed are more than $250,000; therefore, it met the criteria of the 50% matching funds. He noted the Architectural Review Commission approved the item on February 24. Staff felt it was a well -planned project and it brought forth a modernized building, which achieved the City's goals for Highway 111. Staff recommended approval of the proposed FEP. Mayor Pro Tern Spiegel said the improvements will help Highway 111, which are much needed. Mayor Pro Tern Spiegel moved to, by Minute Motion: 1) Approve the Facade Enhancement Program Agreement in an amount not to exceed $75,000 for property located at 73703 Highway 111, Palm Desert; 2) appropriate $75,000 from the Economic Development Fund 425 for subject Facade Enhancement Program Project. Councilman Jonathan noted the FEP was established in 2013 with $800,000 and staff's budget for the year is $250,000, questioning what was left in the account. Mr. Alvarez explained the City had only utilized $150,000 for two projects on El Paseo for $75,000 each, leaving $650,000 for Highway 111. Councilman Jonathan seconded the motion and it carried by a 3-0 vote (AYES: Jonathan, Spiegel, and Weber; NOES: None; ABSENT: Harnik and Tanner). Mayor Weber commented everyone will benefit from the FEP. 14 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 27, 2015 B. CONSIDERATION OF A BACKYARD BEEKEEPING ORDINANCE IN R-1 SINGLE-FAMILY RESIDENTIAL ZONES. Principal Planner Tony Bagato recalled for the Council this item was a discussion matter where staff was directed to decide whether to pursue a beekeeping ordinance in residential yards. Currently, the City only allows them in the Residential Estate (RE) Zone, which are 40,000 square -foot lots or larger and in a Hillside Planned Residential (HPR) Zone, which also tends to be larger lots. He noted smaller lots are spread out throughout the hillsides and not close to residential areas. Currently, beekeeping is not allowed in the rest of the City. Recently, a homeowner put in two backyard beehives and is requesting the City look at adopting an Ordinance. Staff provided sample ordinances from other jurisdictions such as Santa Barbara and San Diego as examples of a model ordinance. Staff recommended further discussion and potentially a committee to review. He discussed this issue today with Riverside County Agriculture Commission where concerns were raised about introducing it, just because there is increasing population of Africanized honey bees in this area and they can mix into the hive and cause an aggressive hive. Therefore, staff was requesting some direction. Councilmember Harnik stated that given the information staff received today and having the opportunity to discuss the matter with Mr. Bagato, she felt it was in the City's best interest to explore it further. She said there have been a couple of deaths from bee stings, and she understood that domestic bees were not the issue, but when there is Africanization of domestic bee hives, it's a problem and deserves further discussion. Therefore, she was in favor of putting a committee together. Councilman Jonathan concurred, and if Councilman representation was needed, he would be glad to be a part of it. However, there is definitely a trend in urban areas for backyard things such as growing vegetables, fruits, and even keeping chicken and having their own eggs. Further, there are tremendous benefits from bees as the pollination crisis is very serious, so beekeeping would help. The literature and staff report indicates that honeybees actually reduce the Africanize bee population, reduces the carbon footprint, creating honey that can alleviate allergies, and the list went on and on. He recognized the benefits, but understood there were potential concerns of residents, particularly bee stings, even though honeybees tend to be docile. He was hopeful that by putting a committee together, soliciting public input, and going through the process, perhaps a reasonable revision can be found to balance the two competing concerns. 15 PRELIMINARY MINUTES DRAR REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 27, 2015 Mayor Pro Tern Spiegel moved to, by Minute Motion: 1) Continued the issue to a date uncertain; 2) appointed Councilmembers Harnik and Jonathan to a subcommittee with staff to research the issue and provide recommendation back to the Council. Motion was seconded by Jonathan. Mayor Weber pointed out that former Councilmembers kept bees, stating she was sure they would really like to participate. She recalled receiving advice from them about the bees that visited her. Councilmember Harnik noted they lived in the hillside area. MS. ANN OLESNICKY stated it was her husband who brought the proposal before the Council and they spoke for the bees. She hoped the Council will approve an amendment to the Ordinance, but understood this item will go on to a subcommittee. She said that properly kept domestic bees reduced Africanized colonies, because it kept them in check. Councilman Jonathan said a suggested format for a revision to the Ordinance was provided to Mr. Bagato by Mr. Olesnicky, so with their knowledge and experience with bees, perhaps staff will consider one of them for being part of that committee. Councilmember Harnik suggested that Ms. Olesnicky to provide her information to the Council in advance so that it can be reviewed. Ms. Olesnicky agreed to provide it. MS. MONICA ALVARADO stated she was from Desert Resort Management and she represented the Portola Pointe HOA, which is where the Olesnicky's live. She said the Board and the homeowners do not want bees. Perhaps if the lots were large, but this was a little cul-de-sac street with sixteen (16) single-family homes where the proximity of the backyards is very close. Further, on both sides of the Olesnickly's there are people with pools. She said she had pictures of bees that are seen in the pool, they have a lot of people allergic to bees on that street, and there is a senior residential hospice house where there are a lot of elderly people with different kinds of issues. The Board, per the CC&R's, is going to fight, penalize, and do whatever they can to stop this Ordinance in this particular street, because the backyards are not big. Responding to question, she confirmed the Olesnicky's lived in an HOA where CC&R's exist, stating they didn't particularly speak specifically to bees, but believed it addressed the issue. She offered to email a copy of the CC&R's to staff. Councilman Jonathan stated he didn't want her point to be lost, which is that regardless of City regulations where there is a homeowner association, the 16 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 27, 2015 association is free to regulate themselves. He was not saying the Ordinance will be modified or that bees will be allowed in R-1 Zones, but even if the City did, an HOA can have different rules. MS. ALVARADO agreed, stating she believed the HOA trumped the City's rules. She said the HOA just wanted to provide their input on the matter to the Council. MS. NIKOHL VANDEL stated everyone needed to understand the bees, because the integration is very complex. To know what bee hives are doing in an urbanism reality is very important as one goes to Europe, Africa, or Asia, where the Africanized bees are way more integrated into the system. She highly supported the continuance for the formation of a subcommittee. Mayor Weber called for the vote and the motion carried by a 4-0 vote (AYES: Harnik, Jonathan, Spiegel, and Weber; NOES: None; ABSENT: Tanner). C. REQUEST FOR APPROVAL OF A PROFESSIONAL SERVICES AGREEMENT IN THE AMOUNT OF $36,000 WITH JMA ARCHITECTURE, INC., FOR CREATION OF CONSTRUCTION DOCUMENTS FOR THE EL PASEO MULTI -USE COMMUNITY CENTER PROJECT (CONTRACT NO. C33970A). Senior Management Analyst Ryan Stendell offered a point of clarification, in that the El Paseo Multi -Use Community Center is also known as the Entrada Pavillion. He apologized if that was confusing for some, but the Bond Proceeds Funding Agreement that was previously approved is in the El Paseo Multi -Use Community Center name. Mayor Pro Tern Spiegel moved to, by Minute Motion, authorize the Mayor to enter into an agreement in the amount of $36,000 with JMA Architecture, Inc., Palm Desert, California, for creation of construction documents for the El Paseo Multi -Use Community Center, subject to final review and approval by the City Attorney — funds are available in Account No. 4004679-4400100 for this purpose. Motion was seconded by Jonathan and carried by a 4-0 vote (AYES: Harnik, Jonathan, Spiegel, and Weber; NOES: None; ABSENT: Tanner). Councilmember Harnik commented she saw many types of uses and so much room for activities there. 17 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 27, 2015 D. REQUEST FOR AUTHORIZATION FOR MAYOR TO EXECUTE A GRANT OF EASEMENT TO MONTEREY SHORE, LLC, FOR A MONUMENT SIGN, FOR INCIDENTAL AND LANDSCAPE MAINTENANCE PURPOSES, LOCATED AT THE NORTHWEST CORNER OF MONTEREY AVENUE AND DINAH SHORE DRIVE, SUBJECT TO THE APPLICANT CONVERTING THE EASEMENT AREA FROM TURF TO DROUGHT - TOLERANT DESERT LANDSCAPING (Monterey Shore Plaza Association, Applicant). Mr. Greenwood said the Dinah Shore Plaza was commonly known as the Costco Center, and this sign easement would be on the corner near the gas station. Mayor Pro Tern Spiegel moved to, by Minute Motion, authorize the Mayorto execute a Grant of Easement to Monterey Shore, LLC, for a monument sign for incidental and landscape maintenance purposes, located at the northwest corner of Monterey Avenue and Dinah Shore Drive, subject to the Applicant converting the easement area from turf to drought -tolerant desert landscaping. Motion was seconded by Harnik and carried by a 4-0 vote (AYES: Harnik, Jonathan, Spiegel, and Weber; NOES: None; ABSENT: Tanner). E. REQUEST FOR AUTHORIZATION TO CONVEY CERTAIN REAL PROPERTY LOCATED AT 73697 SANTA ROSA WAY (ASSESSOR'S PARCEL NO. 627-102-019) FROM THE CITY OF PALM DESERT TO THE SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY (JOINT CONSIDERATION WITH THE SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY). Economic Development Manager Ruth Ann Moore stated this was related to the property located at 73697 Santa Rosa Way. The property was a Successor Agency property that was approved for government use in the Long -Range Property Management Plan, which was then transferred to the City. The property consists of a single-family home along with a three -apartment structure directly behind the home on the north side of the property, and a vacant lot that stretched across on the south side of the property. It was determined that the vacant lot would be used for the future expansion of the Joslyn Center, so the property was then divided into two parcels. She said Parcel One being the one with the structures on it and Parcel Two being the vacant lot. She said Parcel Two will remain with the City for the expansion of the Joslyn Center. Therefore, the motion before the Council is to transfer Parcel One back to the Successor Agency, stating that the Long -Range Property Management Plan will then need to be amended and approved by the Oversight Board and the Department of Finance before it went out for sale on the market. IN PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 27, 2015 Mayor Pro Tem/Vice Chair Spiegel moved to: 1) Waive further reading and adopt Resolution No. 2015 - 76, authorizing and approving the conveyance of certain real property from the City to the Successor Agency to the Palm Desert Redevelopment Agency; 2) waive further reading and adopt Resolution No. SA -RDA 047, accepting the conveyance of real property from the City; 3) by Minute Motion, authorize the City Manager/Executive Director to execute any and all documents necessary for the conveyance of said property. Motion was seconded by Jonathan and carried by a 4-0 vote (AYES: Harnik, Jonathan, Spiegel, and Weber; NOES: None; ABSENT: Tanner). F. CONSIDERATION OF CITY COUNCIL TEAM -BUILDING AND GOAL -SETTING WORKSHOP. Mr. Acosta stated the request is for allocation of funds for the purpose of facilitating a team -building and goal -setting workshop to be provided and facilitated by Dr. Bill Mathis. Both he and the City Manager had an opportunity to meet at length with Dr. Mathis to discuss the merits of such a program, and both were in agreement that this may be very helpful, not only for staff identified in the staff report, but most importantly for the City Council. Mayor Pro Tern Spiegel asked if the workshop can be held some day other than Saturday. Mr. Acosta replied it can be held on whatever day worked best with everyone's schedules. Councilmember Harnik explained this was something that came from the last League of California Cities meeting she attended, which was suggested to her by Mayor Pro Tern Spiegel. It resulted in being the best League meeting she's attended, and she and Councilman Tanner agreed this was something they should do and the Mayor agreed at that time. The workshop can address a lot of issues, one of them being, that for the first time in 30 years of Palm Desert History there will be a totally new Council, because Mayor Pro Tern Spiegel has indicated this was his last year. Without the institutional and historical knowledge, the Council wouldn't be as strong. She said this would be an opportunity to work with Mayor Pro Tern Spiegel, learn from him, and become more effective for the community. Councilmember Harnik moved to, by Minute Motion: 1) Approve a contract with Dr. Bill Mathis of The Mathis Group in the amount of $6,000 for a Council Goal -Setting and Team -Building Exercise/Retreat to be scheduled (Contract No. C34730); 2) appropriate $6,000 from the Unobligated Budget Reserve to the City Council Local Meetings Account for this purpose, Account No. 1104110-4312500. Motion was seconded by Jonathan and carried by a 3-0-1 vote (AYES: Harnik, Jonathan, and Weber; NOES: None; ABSENT: Tanner; ABSTAINING: Spiegel). Mayor Weber commented that the date and time will be set for when all Councilmembers can attend. 19 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 27, 2015 XV. CONTINUED BUSINESS None XVI. OLD BUSINESS None XVII. PUBLIC HEARINGS A. REQUEST FOR APPROVAL OF A NEGATIVE DECLARATION OF ENVIRONMENTAL IMPACT, DEVELOPMENT AGREEMENT, CHANGE OF ZONE TO ESTABLISH A HIGHER DENSITY, PRECISE PLAN OF DESIGN, AND TENTATIVE TRACT MAP 36874 TO SUBDIVIDE 15.52 ACRES INTO 112 CONDOMINIUM UNITS AND COMMON AREAAMENITIES LOCATED AT 38400 PORTOLA AVENUE, Case Nos. DA/C-Z/EA/PP 15-15 and TTM 36874 (Portola PD, LLC, Applicant) (Continued from the meetings of June 11 and July 9, 2015). Councilman Jonathan noted he would recuse himself from this item and left the Council Chamber. Assistant Planner Kevin Swartz stated the 15.52 acre site is located south of Frank Sinatra Drive on the east side of Portola Avenue adjacent to the Desert Willow Golf Resort. Adjacent to the site is a City owned 4.2 acre retention basin. The proposed product will drain into the retention basin and the Applicant is responsible for maintaining it. The product is designed with one access point, which is a right turn in a right turn out along Portola Avenue. There is a secondary emergency access located on the site, which will be gated. The Applicant is also proposing to install a median for a left turn lane for southbound travelers. The product consists of 28 two-story buildings with each building maintaining four units totaling 112 units. Each unit has a two -car garage for a total of 220 parking spaces, plus 56 guest parking spaces throughout the site. The development maintains two main common area amenities, the first area consists of a clubhouse, exercise room, a lap swimming pool. The second area is directly south of the clubhouse with a resort style swimming pool, fire pits, cabanas, bocce ball courts, barbeque area, spa, and shaded patio areas. He displayed renderings of the site and main entry gate. He said the main entry is seven feet above grade, so as one enters the facility the idea was to overlook all of the amenities. There is a six-foot high block wall along Portola Avenue that will match the existing wall of Desert Willow. The landscape design consists of a desert theme with species requiring minimal water usage. The main entry way, pool decking, walk ways, guest parking spaces, and numerous parking areas within the street are lined with pavers. Overall, the landscape 20 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 27, 2015 design provides a resort appearance while maintaining low water usage. He said there are four planned units, with each having two architectural styles, a modern and a contemporary. Each architectural style has two elevations, stating Plans I and II will be located on the ground floor and they ranged from 2,000 to 2,200 square feet. Plans III and IV are located on the second floor and ranged from 2,500 to 2,600 square feet. He went on to display and explain the different elevations and styles. The clubhouse is a single story 2,500 square foot building, 20 feet in height, and maintains a modern style. Approval of the project includes a Development Agreement (DA) between the City of Palm Desert and the Applicant. The objective of the DA is to provide the City with a development of high quality and a well -designed project that creates synergies with Desert Willow Golf Resort. Homeowners automatically become the equivalent of Academy Golf Members and Platinum Club Members at Desert Willow Golf Resort for a monthly fee of $75.00, which will be part of their HOA. Also within the DA is an Affordable Housing In -Lieu Fee, which the developer agreed to pay $1.00 per square foot of living area. Based on the Applicant's proposed square frontages and number of planned units, the total Affordable Housing In -Lieu Fee totals $262,114. The Applicant proposed to install a 12-foot wide golf cart path through the retention basin for golf cart access. The proposed project density of 112 units results in 7.2 dwelling units per acre, which is more than the base of five dwelling units per acre allowed. The request for eight units per acre met the intent of the Planned Residential Zone by providing a mixture of residential densities in the surrounding area. Staff believes that the proposed project, "The Retreat at Desert Willow," establishes a land use pattern that provides upscale resort style housing as well as open space and recreation uses. The architectural design with upscale amenities blends with Desert Willow Golf Resort. Staff recommended approval of the Development Agreement, the Change of Zone, and the proposed Resolution for the project. He offered to answer questions. Mayor Weber declared the public hearing open and invited public testimony FAVORING or OPPOSING this matter. MR. RUDY HERRERA, Principal of Family Development, stated he lead the entitlement process on this wonderful project. He said this was one of the most pleasant experiences in entitling the project he has ever had in his career. He had to credit staff from the City Manager's office to the Planning Department and Engineering Department, stating they worked very well together on any issue as they were able to solve and work them out, which is why he was in total support of the staff report and Development Agreement. Councilmember Harnik congratulated Family Development on their Merit and Gold Nugget Awards. 21 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 27, 2015 MR. VINCE BARBATO, Principal of Family Development, expressed his excitement about the project, "The Retreat." He thanked Councilmember Harnik for the acknowledgment of their awards, stating one of them was for a community they built in Scottsdale, Arizona. He said that project was the inspiration for this project, because of the same demographics, topography, and characteristics where it was near a golf course with outstanding views, and similar population. He said there are people that own a single-family home that didn't want the maintenance or upkeep of a pool and landscaping, and this was a perfect option. Further, there is a strong demand for these types of homes, and these will be relatively affordable. He said the recent recession has taught everyone they can learn to live with a lot less and do just fine. Responding to question, he said the price range will be what the market dictates, but the homes are projected to be in the high $300,000 to $400,000, which is what the market survey supports. He said the award winning architecture was Scottsdale's hot selling project, so they took it and patterned it off the Desert Willow architecture for it to become synergistic with the Desert Willow Golf Resort. MS. NIKOHL VANDEL questioned what kind of energy reality will this project have and was there a guarantee to the City that it will only draw a certain amount of energy. She said going forward into such a big project of 112 units, it was important to know exactly how much energy it will be pulling and putting into the system. MR. JAMES HENDERSON, Deep Canyon, Palm Desert, noted he loved the project, but wondered if there was a traffic study done on Portola Avenue, and would a traffic light be required, and if so, who paid for it. Mr. Greenwood responded there was no traffic study done because this development conformed to the General Plan; there is no traffic signal proposed. He said the street network as designed can accommodate traffic from this project. He explained that the left turn is controlled with the medians limiting left turns out of the site, which eliminates the need for a traffic signal in the future. With no further testimony offered, Mayor Weber declared the public hearing closed. Mayor Pro Tern Spiegel pointed out that normally buildings this high weren't allowed in the City, but in this particular case it didn't affect anyone because of the golf course in the back. Mayor Pro Tern Spiegel moved to waive further reading and: 1) Pass Ordinance No. 1285 to second reading, approving Development Agreement No. 15-15; 2) pass Ordinance No. 1286 to second reading, approving Change of Zone No. 15-15; 3) adopt Resolution No. 2015 - 55, approving a Negative Declaration of Environmental Impact, Precise Plan of Design, and Tentative Tract Map No. 36874, subject to conditions. Motion was 22 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 27, 2015 seconded by Harnik and carried by a 3-0 vote (AYES: Harnik, Spiegel, and Weber; NOES: None; ABSENT: Jonathan and Tanner). Councilmember Harnik commented the project was in keeping with the Strategic Plan and where the City was heading in the future. B. REQUEST FOR APPROVAL OF AN AMENDMENT TO A DEVELOPMENT AGREEMENT FOR STARWOOD VACATION OWNERSHIP LOCATED AT 39500 PORTOLA AVENUE, Case Nos. DA 96-1 Amendment 2/HTE 15-200 (WVC Rancho Mirage, Inc., c/o Starwood Vacation Ownership, Applicant). Principal PlannerTony Bagato noted the proposed Development Agreement (DA) to Development Agreement 96-1. It was previously amended as part of an approval in 2006 that took over remaining entitlements from Intrawest. Intrawest sold off 215 units to Starwood Vacation Ownership, and the City approved the DA with a Precise Plan for the timeshare project known as Startwood for about 300 units. At that time, the DA set up an aggressive timeline for construction and then related to a secondary Development and Disposition Agreement (DDA), there was a Project Amenity Fee (PAF) payment that was based on that aggressive time schedule on the number of units being built. Unfortunately, due to the economy downturn in 2007/2008, Starwood has not constructed as quickly as they had hoped. This Amendment focuses on two (2) items: First, a time extension, because the project is set to expire in 2016. Therefore, the Applicant is seeking a DA Amendment for an additional ten (10) years. The second change addresses the current PAF payment that was in the DDA. Instead of making a payment on an anticipated number of units, it would move to actual constructed number of units. He said the City has granted exceptions and waivers to that DDA to allow Starwood to make those payments. He said this amendment would be consistent with what the City has previously done over the last several years. Staff has included a fiscal analysis showing a delayed income to the City's General Fund related to Desert Willow expenses. However, staff believed it was in the City's best interest to keep the project moving so that Starwood can continue to build units. At this time, Starwood is anticipating one building per year for 18 units. Mayor Weber declared the public hearing open and invited public testimony FAVORING or OPPOSING this matter. MS. EMILY HEMPHILL, Local Counsel for Starwood, stated her office was in Rancho Mirage. She said that in the past couple of years she has spoken to the Council about the whole PAF situation, and she had indicated that Starwood would be looking at the project to see if there were changes they wanted to make and eventually return with a plan to avoid coming back every year. She said Starwood started this project in 2007 and established the DA 23 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 27, 2015 and the DDA at that time, and shortly thereafter the whole world changed when the economy changed. When the PAF was originally put together, the fee was intended to reimburse the City for the impacts that are happening to the golf course from their residents and units. At the time, the schedule for calculation of the PAF was based on number of units constructed, but it made no adjustments for the said number of units not built. She said the City has cooperated with Starwood for the past few years in limiting the payment of the PAF to those units that are actually built. Adding that it has been a tremendous assistance to the project and they appreciated the City's understanding. She said Starwood has reviewed the project and decided they will not be making physical changes. They will be moving forward with the project as approved, because it will allow them to bring it forth in a qualitative way and not further burden it from a fiscal standpoint. The difficulty with this project has been the economy, which meant they weren't able to sell units as quickly as anticipated. But with a project such as this one, the amenities had to be built in the first phase in order to sell units at all. So they did that, but they didn't have the unit sales that were designed to support those amenities. Therefore, Starwood has subsidized the project, keeping it at a quality level despite not having the units. She said it has been financially difficult, so the adjustment has truly been an assistance that the City has offered in the past and hoped it will continue. Despite the bad economy, the PAF they have paid to date has been about $3.3 million. For this year they will bring on a new building that has 22 units, so the PAF payment this year will be close to $900,000. She pointed out that neither the DA or the DDA addressed the Transient Occupancy Tax (TOT) that might be generated from this project, and they are generating much more than anticipated. In reviewing this, between 2010 and 2014, they have paid $1.3 million in Transient Occupancy Tax. This year they expect for it to be closer to $500,000, because they have had a lot more transient rentals. She said when one looked at the impact of what they are requesting, while it is a reduction in the PAF, the DA and DDA didn't consider the TOT they are paying to the City; therefore, the reduction was not as great as one might anticipate. She said they have put in about $350,000 worth of improvements into the golf course. She said they have a good relationship with Desert Willow staff and they hoped to continue to work in a cooperative way. She also pointed out, that while payment of the PAF on unbuilt units would not be coming to the City, it would also not be incurring the impacts that those units would have otherwise brought forward, in terms of the golf course. She reiterated that while there is some reduction in revenue, there was some reduction in expenditures because they are not creating those impacts. She went on to say their request was a fair one, because they are willing to pay for all the units that are complete. She hoped the City will continue to understand and not require them to pay for units that didn't exist and are not having impacts. The ten-year term they are requesting was in keeping with their current pace of development, which has been one building per year, 24 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 27, 2015 and they have nine buildings left. They would like to go with the ten years, because when you look at the stock market and how uncertain everything is, including just this past week, they don't want to have to come back and ask for another extension. She hopes Council will go along with what they have proposed today. Councilman Jonathan pointed out Starwood didn't actually pay for the TOT, but rather collected the TOT from it's guests. MS. HEMPHILL agreed, stating she should have said the project generated. Councilman Jonathan went on to say that the PAF paid to date was about $3.3 million, which was significantly less than what would have been paid if the Development Agreement had not been amended for the last five years. MS. HEMPHILL again agreed, stating that certainly there would have been more PAF paid had not the City given Starwood the waiver for the last few years. MR. JAMES MORAN, General Manager at Westin Desert Willow Villas, Palm Desert, stated he was a 34-year resident of the Coachella Valley. He said that with the talk of synergies, along with it was the power of on -going partnerships as they continue to work with the City. As stated by Ms. Hemphill, they work with the City and the golf course, noting he knew Desert Willow's General Manager Derek White very well. He said they have worked together on a number of things to put more guests on the golf course every year. They worked out Desert Willow's Golf Resort first "Stay and Play," and they are able to compete with the Marriott Desert Springs for Stay and Play. Additionally, they worked with the Golf Academy for Golf & Balance for kids and adults together; they worked on the easement so they can go door to door with their guests, taking them over to the Desert Willow golf facility in golf carts; they work with Director of Catering Ashley Lewellen, as weddings are becoming a big draw for the golf resort. He said Westin wants to be their home resort in terms of staying overnight, and they are marketing that together. From an experience perspective, they offer more than just a stay or the use of their three-story water slide and having fun, it was about a cultural experience on how you make people feel when they leave. He said they take people out to El Paseo for dining, an Art Tour, or take kids to The Living Desert so they can feed the giraffes. When they go back to the resort, they paint picture frames and they go on the mantle at home, then you have friends and neighbors ask where did that happen, and they say it happened in the City of Palm Desert at The Living Desert. Further, their TOT contribution has been more than what was expected, and that's because of their business model. For example, this summer they are at 92% occupancy and 55% of that occupancies was rental guests. They 25 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 27, 2015 anticipate that at build out guests will contribute more than $1 million in TOT. He noted he applied for the City of Palm Desert Hotel and Signature Events Committee, stating he served on the Tourism Committee for the City of Rancho Mirage as a General Manager of Mission Hills Villas. Again, going back to the power of partnership, he believed that together they can do more, so hopefully he will have the opportunity to serve on the City's Committee. He said they will continue to work with the golf resort, because the synergies are there. He was proud of what they have done today and in the past, and believed theywill continue to elevate the situation for everyone. Councilman Jonathan thanked Mr. Moran for the tour of the facility a few months back. He said Councilmember Harnik and he have said the same thing, which is that Westin Desert Willow Villas was Palm Desert's little treasure because it was a wonderful asset. MR. DENIS EBRILL stated he was responsible for the development of the Starwood Vacation Ownership back in balmy Orlando Florida. To clarify, he said the business they run is dependent on the pace of sales of the units. As a following up to Councilman Jonathan's point, the PAF is also something that is paid by the individual owners, and it was never the intent that it be an expense for the developer, which is why they are asking that the PAF be on the units built so that it reflects the actual occupancy. He said Mr. Moran has done an outstanding job as General Manager as they have great guest satisfaction comments, the transient business runs at a premium with the level of occupancy, but also the average rate, which is one of the reasons their TOT is coming in at high levels. He noted his colleague Troy Aikman (sp?) and himself were available to answer any questions. MR. ROB BERNHEIMER stated he too was representing the Applicant. He said over the last five months he's had many discussions with staff about how to bring an amendment forward. He noted Starwood was in full support of the last staff report; however, in the past few days, some nuances have been brought up that have created discussions. In fact, he met with staff just yesterday. His focus was on two areas: 1)The ten-year term of the agreement; 2) prorating the PAF payment in the year that a unit comes on-line. The ten-year period is needed because there are nine buildings left after today, as they were informed that one of the buildings that was under construction will probably get its Certification of Occupancy today, leaving nine more buildings. Therefore, if one building is built per year, the project could be completed in eight or nine years, but the ten years provide a cushion in case one of them is delayed. With regards to the issue of the PAF and prorating it in the year in which a unit is complete, and he understood staff ran some calculations in that if the units are always completed in December, the City only gets one month in that year. Well, first of all if a building is on line today, the PAF will start in August, so the City we PRELIMINARY MINUTES DRAFT" REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 27, 2015 gets quite a few months a year and not just one month, if it's done on a monthly proration. More importantly, when looking at the size of the PAF, it's somewhere around $6,500 per unit, and the Average Daily Rate in these units in November and December is $160, so that means they would have to be at 100% occupancy for 40 days just to generate the $6,500 to pay the PAF. If units were to come on line in the 4th quarter of the year, it would behoove them to just hold off on getting the Certificate of Occupancy, because they can't run that unit at 100% just to have the revenues go to the Cityjust to pay the PAF and not have any revenues to support the operations of the facility. He said it didn't make sense to create a disincentive to finish that unit as quickly as possible. He said this was not a small issue, because it helps in the development and programming to actually expedite the construction of these units. Getting them built as soon as possible meant prorating for the year it comes on line. Therefore, if the City wants to create the incentive to get the buildings built on time, you prorate the PAF for the year in which the building is built to the month that it was built, which was the most fairness, because the units are not creating impacts forthe months that the units are not built. He said the City had financial projections based on assumptions, yet some of them were made in the DDA, which was in the mid -nineties, and some were done in the DA ten years ago. He said assumptions changed, and it was good to look at what's really happened here, unlike other developers that went away when the market crashed and projects were disintegrated, this developer slowed down and kept constructing a building per year even through the bad times. He said Starwood has been a good partner for the City and he hoped the Council will consider that when making its decision. With no further public testimony offered, Mayor Weber declared the public hearing closed. Councilman Jonathan said he appreciated Mr. Bernheimer's comments, because a partnership such as this one, between the City and Starwood, is like any partnership or marriage where there are give and take. He said the City is being asked for a ten-year extension and a proration of the PAF. He said staff conducted an analysis of the project from 2015 moving forward, and without the modification to the Agreement, the PAF payment would be about $18.8 million. However, with the Amendment the amount Starwood would pay is about $15.2 million, which was about a $3.6 million give by the City for the reasons discussed that made sense. Nevertheless, the impact of amending the Development Agreement is a $3.6 million reduction to the City. The City is further being asked to consider a reduction by making a change to the fee, which initially was to be charged upon completion of a building. Starwood is asking for the City to prorate it monthly instead of charging a full year's fee. Part of the reasoning given was to provide an incentive to build it sooner. However, he viewed it the other way, in that 27 PRE=LIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 27, 2015 Starwood was responsible for a full year's payment; therefore, the building should be completed by January rather than in August. In other words, get it done in January to get the full value of a full year's fee. From his perspective, in terms of give and take, the ten-year extension would be a $3.5 million give, which he thought was enough for a fair give and take relationship. Councilmember Harnik questioned that if Westin's occupancy was at 92%, why wouldn't Starwood hold that building until January, since they didn't need it, because there was only 8% unfilled. She said the Council needed to create the incentive for them to come forward as soon as possible rather than creating an issue of holding the building until January. For example, let's say the building is complete in November, they can fill it, but in order to avoid paying PAF for ten months, they will hold off until January. She didn't want to lose the PAF for the whole year, but a compromise would be to prorate at six months ratherthan annually. Although she understood the City was giving, she felt Starwood was giving as well, because they could have put people in the vacancies, but instead they have come forward to work out something where they have a Certificate of Occupancy. She said the Council wants to support them so they can have the best business possibe and wouldn't it be great if they had 100% occupancy. She said the amendment of the ten years made sense, so they can get their financing, and instead of prorating annually, a six-month proration made more sense. Mayor Pro Tern Spiegel expressed his full support, stating Westin was a real asset to the City and something to be proud of. He said they have a fine facility that he's viewed when it open, and I've been there since, and he was proud to have it in Palm Desert. With that, he was willing to approve all their requests, because they are good neighbors and they provide revenue to the City of Palm Desert. Mayor Pro Tem Spiegel moved to waive further reading and pass Ordinance No. 1289 to second reading, approving Development Agreement 96-1 Amendment 2, as amended to provide a 10-year time extension and the payment schedule of the Project Amenity Fee to be prorated monthly. Councilmember Harnik offered an amendment to the motion to modify the payment schedule of the PAF to be prorated every six months. Mayor Pro Tern Spiegel amended his motion to waive further reading and pass Ordinance No. 1289 to second reading, approving Development Agreement 96-1 Amendment 2, as amended to provide a 10-year time extension and modifies the payment schedule of the Project Amenity Fee to be prorated every six months. Motion was seconded by Harnik. PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 27, 2015 Councilman Jonathan pointed out that staff had calculated that if the City went with the complete annual proration, Starwood would save an additional $1 million and the City would be deprived an additional $1 million, and the proposed proration would perhaps cut that in half. He felt that giving Starwood $3.5 million was enough, but he recognized they are great partners and he would be willing to compromise further with regret. For further clarification, a six-month proration meant that if there was a Certificate of Occupancy issued in the first six months, the payment is for the full year, and if it's issued in the second six months, the payment is for half the year. Councilmember Harnik agreed this wasn't an easy decision, but it was a great property, stating more people needed to know about it. However, they have been great partners, it's a great property, and the City needs to help them succeed. Councilman Jonathan concurred, however, the reason Starwood was in Palm Desert was because it was the greatest City on the planet. Mr. Acosta posed the question if it was beneficial to set a six-month threshold date, i.e., June 30. Councilman Jonathan agreed and reiterated that if the Certificate of Occupancy is issued between January 1 and June 30, there is a full -year's payment required. If the Certificate of Occupancy is issued between July 1 and December 31, there is half a year's fee that is payable. Mayor Weber called for the vote and the motion carried on a 4-0 vote. For the purpose of clarification the motion is as follows: Mayor Pro Tem Spiegel moved to, waive further reading and pass Ordinance No. 1289 to second reading, approving Development Agreement 96-1 Amendment 2, which provides a 10-year time extension and modifies the payment schedule of the Project Amenity Fee to be prorated on a six-month schedule for units during the year in which they are built: Units completed during the period of January 1 - June 30 paying the entire annual PAF; those completed during the period of July 1 - December 31 paying one-half of the annual PAF. Motion was seconded by Harnik and carried by a 4-0 vote (AYES: Harnik, Jonathan, Spiegel, and Weber; NOES: None; ABSENT: Tanner). 29 PRE=LIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 27, 2015 XVIII. REPORTS AND REMARKS A. CITY MANAGER 1. City Manager Meeting Summaries for the Period of June 29 - August 14, 2015. Mr. Acosta noted the report provided by Mr. Wohlmuth contained in the agenda packets. With City Council concurrence, the City Manager Meeting Summaries were received and filed. B. CITY ATTORNEY None C. CITY CLERK None D. PUBLIC SAFETY 1. Fire Department None 2. Police Department None E. MAYOR AND MEMBERS OF THE CITY COUNCIL 1. Mayor's Meeting Summaries Report for the Period of July 5 - August 15, 2015. Mayor Weber noted her Meeting Summaries Report contained in the agenda packets. With City Council concurrence, the Meeting Summaries were received and filed. PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 27, 2015 2. Council Requests for Action/Committee Reports/Comments: a) Councilmember Harnik Comments/Reports: i) "Valley Voice" Letter to the Editor of The Desert Sun by Mayor Pro Tern Spiegel that was published, extolling the fine work of the City's crews after the micro -burst storm and emergency situation on the evening of July 30. She said it was very nice to hear all the positive remarks on broadcast news, in the newspaper, on Facebook, phone calls, and in person. She visited the site the morning after the storm, it was really a mess, but City workers were there, along with Southern California Edison, and everyone was pitching in to clean things up and get order restored as quickly as possible. Mayor Pro Tern Spiegel appreciated the kind remarks, and for the record, publicly thanked the City's Public Information Officer David Hermann for his help with that letter. ii) "Nine Cities Challenge" Blood Drive on Saturday, August 1 — great to see so many staff members donating; 59 units were collected, saving and positively impacting a lot of lives. iii) CVAG (Coachella Valley Association of Governments) — working on updating the Transportation Uniform Mitigation Fee (TUMF) and the nexus study. iv) Assemblyman Jim Frazier, Chair of the Assembly Transportation Committee —group of Coachella Valley officials met with him regarding a lot of transportation issues here, infrastructure (prompted by failure of the Tex Wash Bridge on eastbound Interstate 10 on Sunday, July 19), and related funding issues that are not keeping up with constituents' needs. v) CV Link Project — participated in many Operations and Maintenance Meetings on the proposed project. vi) SCAG (Southern California Association of Governments) — several meetings attended and still working on the Regional Transportation Plan and the Sustainable Communities Strategy. Additionally, there have been numerous meetings on Cap and Trade Funds and disparity in the amount given to Southern California, particularly Riverside County. They are looking at a different way to address the guidelines so that the 31 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 27, 2015 area can reasonably apply for and receive some of those grants. vii) Riverside Division of the League of California Cities General Meeting — attended in Lake Elsinore on July 27. viii) College of the Desert — yesterday opened the Staff Technology Innovations Center, which was funded by The Berger Foundation. ix) Westfield "Back To School" Fashion Show — emceed the Fashion Show on Saturday, August 15, with Manny The Movie Guy. b) Councilman Jonathan Comments/Reports: i) Food Trucks — as directed by Council at the July 9 meeting, met with Mayor Pro Tern Spiegel, City Manager, and staff regarding Food Truck Ordinance. Item will be on the September 10 agenda. ii) Utility Undergrounding Committee — upcoming meeting being scheduled after the summer break. Hope to be back to Council with results and recommendations by the end of 2015 or early 2016. iii) Public Works/Corporation Yard Kudos — heartily congratulated the Public Works Department for the fine work they did on July 30 and afterward, putting the City in such a great light following the emergency situation that occurred after the storm. iv) Portola Avenue Right -turn at Fred Waring_ — today made a right-hand turn from Portola onto Fred Waring Drive without having to worry about anything, sailing right through on the newly constructed turn lane. He commended Mr. Greenwood for meeting the goal of having the lane open by the time school started yesterday. v) Hotel & Signature Events (HSE) Committee — referring back to Mr. Moran's comments under Section XVII - Public Hearings, Item B, earlier today, noted that he'd applied for service on the HSE Committee. If there's a vacancy there, he felt Mr. Moran would be a tremendous asset. 32 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 27, 2015 Mr. Alvarez responded that Mr. Moran submitted his application that he would be forwarding to the City Clerk's Office. Further, he said there are actually two (2) vacancies currently on the HSE Committee —1 for 100 rooms or greater, 1 for 100 rooms or less, agreeing that Mr. Moran would be a very good candidate for appointment. Staff will be doing some further outreach as well. 3. Council Consideration of Travel Requests and Reports: None XIX. ADJOURNMENT With City Council concurrence, Mayor Weber adjourned the meeting at 5:49 p.m. ATTEST: RACHELLE D. KLASSEN, CITY CLERK CITY OF PALM DESERT, CALIFORNIA SUSAN MARIE WEBER, MAYOR 33