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HomeMy WebLinkAbout2023-04-13 Supplemental Packet CITY OF PALM DESERT CITY MANAGER’S OFFICE INTEROFFICE MEMORANDUM Date: April 13, 2023 To: Honorable Mayor and Councilmembers From: Anthony J. Mejia, City Clerk Subject: City Council Meeting of April 13, 2023 Below you will find questions received from the Mayor or Councilmembers and answers provided by City staff regarding tonight’s City Council meeting: ITEM 1I: ADOPT RESOLUTION OPTING INTO SETTLEMENT AGREEMENTS WITH DISTRIBUTORS OF OPIOIDS INCLUDING WALGREENS CO., WALMART, INC., AND CVS HEALTH CORPORATION/CVS PHARMACY, INC., AND OPIOID MANUFACTURERS TEVA PHARMACEUTICAL INDUSTRIES LTD. AND ALLERGAN FINANCE, LLC/ALLERGAN LIMITED Q1: Has there been a previous discussion about the allocation? How have other cities managed their funds? Can this be used to fund another social worker? Can this be allocated to provide funds for the Homelessness Taskforce similar to other commissions and committees? A1: Cities were not a party to the allocation formula or discussion. The allocation is based on a statewide formula including population and abatement. The allocations will go to the State, Counties, and cities that elect to receive the funds directly. In our research, the cities that opted in, plan to use their funds to support law enforcement opioid prevention programs or purchase naloxone. Most cities have elected to give the money to the County and have the County administer the programs. We have had discussions with the County over the last few months regarding their program and whether the money went to them. The County still does not have a final program in place for staff to evaluate. With the pending deadline, Staff has worked with the City Attorney’s office and Social Services Coordinator to review the eligible uses for these funds. They are very narrow and strict about their use. In looking at the series of options, the most direct and regulation-compliant use would be to dedicate them to a provider to conduct outreach to the unhoused population, and who could connect them to resources including substance use treatment and housing. This would also support the Homeless Task Force strategic priorities established in 2022. The funding can be used for staff expenses; however, the reporting requirements will be difficult to clear as the City has to show direct impacts with the use of these funds. Lastly, the City could decide to redirect the funds to the County in future years should a Countywide program be established. ITEM 1J: APPROVE AMENDMENT NO 4 TO CONTRACT NO. C41690 WITH HR GREEN PACIFIC, INC., FOR ENGINEERING DESIGN REFERENCE MANUAL AND STANDARDS, NOT TO EXCEED $128,900 For clarification purposes, a table has been added to the contract amendment to clearly reflect all prior amendments and summarize the total contract to date. 04/13/2023 Question & Answer Memo Page 2 of 2 ITEM 2B: PROVIDE STAFF WITH DIRECTION ON MYLAR BALLOON ORDINANCE Q1: How many instances of a power outage or fire related to mylar balloons have occurred in Palm Desert? A1: According to Southern California Edison (SCE), mylar balloons have caused two power outages in Palm Desert within the last five years. Contract No. C41690 Page 1 of 3 Revised 11-2-20 BBK 72500.00001\32445060.1 AMENDMENT NO. 4 TO THE PROFESSIONAL SERVICES AGREEMENT BETWEEN THE CITY OF PALM DESERT AND HR GREEN PACIFIC, INC. 1.Parties and Date. This Amendment No. 4 to the Professional Services Agreement is made and entered into as of this 13th day of April, 2023, by and between the City of Palm Desert (“City”) and HR Green Pacific, Inc., a corporation with its principal place of business at 1260 Corona Pointe Court, S 305, Corona, CA 92879 (“Consultant”). City and Consultant are sometimes individually referred to as “Party” and collectively as “Parties.” 2. Recitals. 2.1 Agreement. The City and Consultant have entered into an agreement entitled “Professional Services Agreement” Contract No. C41690 dated July 1, 2021 (“Agreement” or “Contract”) for the purpose of retaining the services of Consultant to provide on-call services for the Public Works and Development Services Departments. 2.2 Amendment. The City and Consultant desire to amend the Agreement to include additional Engineering Services for Engineering Design Reference Manual and Standards, for a not-to-exceed amount of $128,900. The Parties have heretofore entered into Amendment Numbers (#1) dated June 14, 2022, (#2) October 13, 2022, and (#3) February 16, 2023, respectively. 2.3 Amendment Authority. This Amendment No. 4 is authorized pursuant to Section 3.6.14 of the Agreement. 3. Terms. 3.1 Scope of Services and Term. Section 3.1.1 of the Agreement is hereby amended to read as follows: Original Agreement, Amendments No. 1, 2, and 3 with their respective Exhibits, now with Amendment No. 4 Exhibit “A” attached hereto and incorporated herein by reference. Additional Engineering Services for Engineering Design Reference Manual and Standards Summary of Compensation Agreement Contract Amount C41690 $ 590,000 Amendment #1 N/A Amendment #2 $ 121,500 Amendment #3 $ 44,375 Amendment #4 $ 123,900 Grand Total $ 879,775 Supplemental Item 1J-1 Contract No. C41690 Page 2 of 3 Revised 11-2-20 BBK 72500.00001\32445060.1 3.2 Continuing Effect of Agreement. Except as amended by this Amendment No. 4, all other provisions of the Agreement remain in full force and effect and shall govern the actions of the parties under this Amendment No. 4. From and after the date of this Amendment No. 4, whenever the term “Agreement” or “Contract” appears in the Agreement, it shall mean the Agreement as amended by this Amendment No. 4. 3.3 Adequate Consideration. The Parties hereto irrevocably stipulate and agree that they have each received adequate and independent consideration for the performance of the obligations they have undertaken pursuant to this Amendment No. 4. 3.4 Severability. If any portion of this Amendment No. 4 is declared invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions shall continue in full force and effect. 3.5 Counterparts. This Amendment No. 4 may be executed in duplicate originals, each of which is deemed to be an original, but when taken together shall constitute but one and the same instrument. [SIGNATURES ON FOLLOWING PAGE] Supplemental Item 1J-2 Contract No. C41690 Page 3 of 3 Revised 11-2-20 BBK 72500.00001\32445060.1 SIGNATURE PAGE FOR AMENDMENT NO. 4 TO PROFESSIONAL SERVICES AGREEMENT BETWEEN THE CITY OF PALM DESERT AND HR GREEN PACIFIC, INC. IN WITNESS WHEREOF, the Parties have entered into this Amendment No. 4 to the Professional services agreement as of the day and year first above written. CITY OF PALM DESERT By: L. Todd Hileman City Manager ATTEST: By: Anthony J. Mejia City Clerk APPROVED AS TO FORM: By: Best Best & Krieger LLP City Attorney HR GREEN PACIFIC, INC. By: Its: Vice President Printed Name: Timothy J. Hartnett By: Its: Secretary Printed Name: Jason Poppen QC: _____ Insurance: _____ Initial Review _____ Final Approval Supplemental Item 1J-3 DESERT WILLOW RESIDENT PROGRAM CONSIDERATION April 13, 2023 Supplemental Item 2A-1 CURRENT PROGRAMS OFFERED Resident Card Resident Cards are available to Palm Desert residents at a nominal $40 fee to access the course for $52 with a 3-day booking window Champions Club Offers a League Play opportunity for the Residents of Palm Desert.Currently,52 players are blocked every Wednesday morning for members of the Champions Club to compete in organized events from October through May. Membership is limited so that players can compete each week of the 32-week season Platinum Card Desert Willow’s version of a loyalty/frequent player program with a 21-day booking window.It is designed for golfers who want to make Desert Willow their primary playing location for the year.In return for their membership purchase and loyalty to Desert Willow,card holders receive discounts on tee times,pro shop purchases, restaurant dining and academy programs Supplemental Item 2A-2 FINANCIAL SNAPSHOT 2018-2019 2019-2020 2020-2021 2021-2022 2022-2023 OPERATIONAL INCOME STATEMENT Actuals Actuals Actuals Actuals Estimated Beginning Cash Balance 3,327,774 3,596,022 2,374,599 3,817,067 4,911,679 REVENUES Green Fees & Cart Fees 7,080,240 5,582,594 7,481,139 9,060,713 9,565,069 Merchandise 809,498 713,947 785,205 1,060,234 1,079,626 Other Pro Shop 501,340 517,703 491,579 482,003 455,829 Range 43,827 35,476 67,454 77,941 74,616 Food & Beverage 2,869,768 2,216,719 2,181,902 3,975,953 4,492,967 Academy Merchandise 92,285 76,911 77,263 64,932 58,762 Other Academy 216,465 173,351 268,967 323,023 338,125 Other G&A Income 24,542 28,722 14,504 37,621 40,205 Transfer in from GF - - - - - TOTAL REVENUE 11,637,965 9,345,423 11,368,013 15,082,421 16,105,200 EXPENDITURES Cost of Good Sold 1,355,396 1,121,263 1,200,530 1,719,241 1,948,800 Payroll 5,264,339 5,171,186 5,410,712 6,661,711 7,544,605 Operating Expenses 3,086,672 2,954,736 2,918,415 3,624,504 4,083,774 Equipment/Leases 636,885 450,384 469,030 988,548 720,000 Other Expense 609,758 513,878 557,776 518,614 495,398 Loan Repayment from City ($1M still outstanding)- - - 500,000 500,000 Capital Improvement Plan Firecliff Golf Course Renovation - - - - 3,500,000 Annual DWGR Capital Replacement Expenditures 658,476 271,100 459,151 414,346 490,000 Annual Perimeter & DW Drive Expenditures 142,881 182,157 187,417 190,454 400,000 Total CIP 801,357 453,257 646,568 604,801 4,390,000 TOTAL EXPENDITURES 11,754,407 10,664,704 11,203,031 14,617,418 19,682,577 Net Surplus/(Deficit)(116,442) (1,319,281) 164,982 465,003 (3,577,377) Transfer in from Capital Reserve 657,435 367,697 577,065 464,767 700,000 Accrual to Cash Basis Adjustment (272,745) (269,839) 700,421 164,842 OPERATIONS RESERVE PLAN/ANALYSIS Ending DW Cash Balance/Reserve 3,596,022 2,374,599 3,817,067 4,911,679 2,034,302 Restricted for Outstanding Operational Loan 2,000,000 2,000,000 2,000,000 1,500,000 1,000,000 90 Day Operations Reserve 2,738,262 2,552,862 2,639,116 3,378,154 3,698,144 Reserve Surplus/(Deficit) *(1,142,240) (2,178,263) (822,049) 33,524 (2,663,843) Desert Willow Golf Resort Budget and Cash Flow Analysis Supplemental Item 2A-3 CURRENT INFLATION FACTORS IMPACTING BUDGET DWGR Product Price Examples 2019 2023 % Increas e Ryegrass Seed (per pound)$ 0.89 $ 2.20 147% Calcium Nitrate Granular (per bag)$ 15.05 $ 25.50 69% Liquid Fertilizer (per gallon)$ 1.48 $ 2.90 96% Bunker Sand (per ton)$ 44.00 $ 64.00 45% Supplemental Item 2A-4 COMMON THEMES FROM RESIDENT MEETINGS Availability of tee times Platinum Card Membership –access to course Resident Card Membership -access to course Time of booking window (12:00 AM) Champion Club Membership –Additional slots necessary/access to course/prioritization Willingness to pay more in exchange for increased opportunities for play Supplemental Item 2A-5 STAFF RECOMMENDATIONS Resident Card •No changes identified •Remains $52/outing with 3- day booking window •Resident cards will continue to be sold through Desert Recreation District Champions Club •Expand program to 72 players •Offer an additional 28 memberships to be waitlisted and prioritized to fill weekly vacancies •Increase play rate to $65/outing to cover associated opportunity costs •Initial sale of memberships will be prioritized for loyalty members with a “first right of purchase” offer. Platinum Card •Continue to offer reduced rates for membership cards for residents and discounted green fees •Offer 800 cards, half of which will only be available to residents through December 1st •Extend booking window to 60-days •Implement non-refundable booking fee for cancellations Booking times for all programs will change from 12:00AM to 7:00PM. Supplemental Item 2A-6 To: Palm Desert City Council 73510 Fred Waring Drive Palm Desert, CA 92260-2578 Dear Palm Desert City Council Members, A recent article in the "Coachella Valley Independent" reported the following: -- On election day last November, the City of Palm Desert asked residents whether the city should ... be divided into five districts, each with its own representative. The final tally of the advisory Measure B: 53.24 % of voters chose the five-district option, while only 46. 76% of voters chose to maintain the two-district status quo. Palm Desert should stop wasting time on deciding whether to implement anything other than 5 districts! The voters have spoken. Divide Palm Desert into 5 districts and allow us to vote for our representative. Yours truly, ~6)~ Suzane Wilbur 95 Camino Arroyo Place Palm Desert, CA 92260 swilbur55@aol.com - CHARLIE ARA: April 12, front page of Desert Sun GUNMAN IN LOUISVILLE SHOOTING LEGALLY BOUGHT AR-15 RIFFLE Also, Page 4A, April 12 Desert Sun Louisville Mayor, lawmakers push Ky. to take action on guns I might suggest that the Mayor of Palm Desert meet with Congressman, Ken Calvert, on what can be done to ban the sale of Assault weapons in Palm Desert and surrounding areas. Could the Council brainstorm on what other actions might be taken to protect our children and other citizens. Charlie Ara 760-341-4301 Palm Desert resident. JOAN SPEER: I like it! Joan �� RALPH PERRY: I support Charlie’s vision of striving for unity. Could we also spread the responsibility around? All fair-minded people, no matter the party, realize that AR rifles are a problem in our country. I do believe in a consensus approach. Suggestion: A venue can be picked out for a local “town hall meeting.” The venue could be the PD Council Chambers or bigger. It’s a non-partisan space. People could rise and voice their thoughts while not becoming emotional or political. A code of conduct can be read. Mr. Calvert can be invited so he can hear from everyone. Finding solutions is about reaching for positive relationships. It’s time to find comprehensive points of agreement on how to address guns. We can relate to each other in person and get unified for forward momentum. It’s a first step in the process. A committee needs to be formed. Fresh ideas can lead to good works, such as coming together for a collective gun buy-back program in the Coachella valley. Gun shops in the valley need to be incentivized to stop having AR rifles for sale. We could invite Captain Dean Agnoletto and other police chiefs. We could all sign a petition for the gun buy- back for Sheriff Bianco and then follow-up with him. That and this town-hall meeting would garner positive press. We need to give our residents hope. We also have tens of thousands of LGBTQ residents with pride events and churches. These are targets for extremists. We can also hear what school districts are doing locally to secure their schools. Ralph Perry, President, PDG Democratic Club ELLEK1450: Good idea Charlie!!����