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Home My WebLink About2023-06-22 Supplemental Packet 2 CITY OF PALM DESERT CITY MANAGER’S OFFICE INTEROFFICE MEMORANDUM Date: June 22, 2023 To: Honorable Mayor and Councilmembers From: Anthony J. Mejia, City Clerk Subject: City Council Meeting of June 22, 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 1C: APPROVE AMENDMENT NO. 1 TO CONTRACT NO. C37370 IN THE AMOUNT OF $175,000 WITH THE COACHELLA VALLEY ECONOMIC PARTNERSHIP FOR OPERATIONS OF THE PALM DESERT IHUB Q1: When are the iHUB Advisory Board meetings scheduled? A1: The iHUB Advisory Board meetings are held quarterly, based on the ability to achieve a quorum. The next meeting will be held in September 2023 (exact date to be determined), with the following meeting to be held in December 2023 (exact date to be determined). ITEM 1F: APPROVE A TEMPORARY WAIVER TO PALM DESERT MUNICIPAL CODE SECTIONS 9.58.010 AND 9.58.020 (CONSUMPTION/ POSSESSION OF ALCOHOLIC BEVERAGES ON PUBLIC PROPERTY) FOR THE SALE AND CONSUMPTION OF ALCOHOL AT THE GALEN BUILDING LOCATED AT 72567 HIGHWAY 111 FOR FISCAL YEAR 2023/2024 Q1: What events have they utilized the alcohol consumption permit? A1: The Artists Council serves alcohol at events throughout the year, including its annual opening party and opening receptions for art exhibitions. The dates of the events are currently undetermined, and approval of the staff report allows the City Manager to approve the consumption of alcohol on an event-by-event basis. ITEM 1G: APPROVE A TEMPORARY WAIVER TO PALM DESERT MUNICIPAL CODE SECTIONS 9.58.010 AND 9.58.020 (CONSUMPTION/ POSSESSION OF ALCOHOLIC BEVERAGES ON PUBLIC PROPERTY) FOR THE SALE AND CONSUMPTION OF ALCOHOL AT THE HENDERSON BUILDING LOCATED AT 72559 HIGHWAY 111 FOR FISCAL YEAR 2023/2024 Q1: For which events have they utilized the alcohol consumption permit? A1: The Palm Desert Area Chamber of Commerce serves alcohol at mixers and other special events for its members. The dates of the events are currently undetermined, and approval of the staff report allows the City Manager to approve the consumption of alcohol on an event-by- event basis. 06/22/2023 Question & Answer Memo Page 2 of 4 ITEM 1N: LETTER OF OPPOSITION TO SENATE BILL 584 Q1: If the concern in the Comments section states the housing crisis is exacerbated by STRs, can the City’s lobbyists reach out to Sen. Lemón to address the impact of PACASO? A1: The issues of STRs and Pacaso are being viewed as mutually exclusive pending resolution of how to define Pacaso’s business model in court (St. Helena case). At this point, we are only being asked to take a position on this bill from a funding perspective, as the proposed funding mechanism would be additive to the City’s existing TOT tax and likely dissuade people from patronizing the area due to an almost 30% tax on STR’s ITEM 1P: APPROVE AMENDMENT NO. 2 TO CONTRACT NO. C37610 WITH WILLDAN FINANCIAL SERVICES FOR COMPREHENSIVE USER FEE STUDY AND COST ALLOCATION PLAN Q1: Have any fees been increased considering the 25% completed during the interim of WIlldan Financial Services’ pause? A1: At this time no city fees have been increased as a result of Willdan’s work to date. Because this is a comprehensive study, the process is done incrementally across all fees. At the end of 2019, what had been accomplished had to be rebuilt, as the foundation for the fees includes positions, salaries, contract costs, and costs of doing business (i.e.. computer software, licenses, etc.). We will more than likely have to update that information again given the additional delay. ITEM 1T: APPOINT AND REAPPOINT APPLICANTS TO THE CITY OF PALM DESERT’S ESTABLISHED BOARDS, COMMISSIONS, COMMITTEES, AND TASKFORCES Q1: Will the bylaws be adjusted for the committees and commissions to reflect the addition of alternate members? A1: Pursuant to Palm Desert Municipal Code 2.34.060(B) the City Council may expand the number of alternate members on any appointed body by ordinance, resolution, or minute order. By virtue of appointing new alternate members which will be reflected in the minutes, the City Council is taking the necessary steps to expand the number of alternate members on an appointed body. ITEM 1X: APPROVE A THIRD AMENDMENT TO THE AGREEMENT FOR LAW ENFORCEMENT SERVICES BETWEEN THE CITY OF PALM DESERT AND THE COUNTY OF RIVERSIDE FOR THE ADDITION OF A SCHOOL RESOURCE OFFICER Q1: Are the 2 School Resource Officers, Violent Crime Gang Task Force and Coachella V alley Narcotics Taskforce paid by the County of Riverside? Why are those positions indicated as Unsupported? A1: The City and DSUSD pay 50/50 of the School Resource Officer costs and the City pays 100% of the two task force positions. They are all unsupported positions because they do not require dispatch services, Sheriff’s support services, and RCSD overhead, therefore, less expensive than supported positions that require all those services. 06/22/2023 Question & Answer Memo Page 3 of 4 ITEM 2B: PROVIDE STAFF DIRECTION TO PROCEED WITH ALTERNATIVE DESIGN OPTIONS FOR LUPINE PLAZA PROJECT (PROJECT NO. CST00015) Q1: Can a reduced size shade structure be added? Will mature trees be planted to provide shade? A1: Yes, the “slow street” option will mimic improvements along the San Pablo Avenue corridor and will include space for new shade tree planting. Tree varieties have not been selected and planting sizes are typically 36-inch box. This box size allows for a relatively mature tree to be planted and the size is better suited for tree acclimation to the site. Q2: Will permanent lighting be dark sky compliant? A2: Yes, all lighting improvements will be dark sky compliant. Q3: The Staff report discusses Option 1 ("Slow Street") and previously approved Option 2. The attachments present "Concept 1" and "Concept 3." Is Option 1 the same thing as Concept 1? If not, how do the two relate? Is Concept 3 the same thing as previously approved Option 2? If not, how do the two relate? A3: Option 1 – “slow street” is the same as concept 1 of the attachment to the report. Option 2 – “Full permanent closure” is the same as concept 3 of the attachment. The previously prepared options/concepts for Lupine Plaza included a third option; however, that option, which maintained one-way traffic, did not make it out of the Lupine Subcommittee and was never presented to the full city council. ITEM 2C: REQUEST FOR DIRECTION REGARDING THE PALM DESERT LIBRARY Q1: What will increased levels of service include? Will this be provided in writing? A1: Generally, they would include increases in staffing, hours, materials, and programs in the library. The City would need to gain input from the community and submit that to the County who will then return a service increase proposal to the City for review and approval. The Library Task Force will also be asked to weigh in on service-level enhancements. Q2: Toward the bottom of page 2, first bullet point, why would only 2.6 million of the 4.6 million be redirected to the City rather than the whole 4.6 million? A2: When the City entered into the various redevelopment agreements with the County, higher property tax (redevelopment pass thru) allocations were negotiated specifically to support the library improvement. If the City withdraws then that funding arrangement goes away, the State takes a percentage due to the Educational Revenue Augmentation Fund (ERAF), which was created by the State legislature to shift local tax revenues from cities to the education fund to support schools, and the remaining amount left is library property tax and former redevelopment pass thru. 06/22/2023 Question & Answer Memo Page 4 of 4 ITEM 2D: CITY COUNCIL AND HOUSING AUTHORITY - JOINT CONSIDERATION FOR APPROVAL OF ACTIONS RELATED TO THE CONVEYANCE OF THE PARCELS IDENTIFIED AS APN 694-120-028 AND A PORTION OF 694-120-029 AND APPROVING TWO LOAN IN THE AMOUNTS OF $3,425,000 AND $3,330,000 RESPECTIVELY FROM THE CITY AND FROM THE AUTHORITY’S LOW AND MODERATE INCOME HOUSING ASSET FUND FOR THE ACQUISITION AND CONSTRUCTION OF 239 AFFORDABLE HOUSING UNITS AND 2 MANAGER’S UNITS PURSUANT TO AN AMENDED AND RESTATED DISPOSITION, DEVELOPMENT AND LOAN AGREEMENT Q1: Will the determination of who is selected for permanent housing for victims of domestic abuse made by management or by the selected agency? A1: The Service Provider/Agency will make the determination of the program participants that are ready to transition to permanent housing. ITEM 3B: CITY AND HOUSING AUTHORITY – APPROVAL OF RESOLUTIONS RELATED TO THE ADOPTION OF THE FISCAL YEAR 2023/2024 FINANCIAL PLAN AND CAPITAL IMPROVEMENT PROGRAM Q1: Will there a budget item for League of Cities, or is Palm Desert not attending any of them? A1: Yes, $9,000 is budgeted under City Council Conferences/Seminars for attendance at the League of California Cities Annual Conference. This does not appear on page 37, as this page is a list of out of state travel. ITEM 3C: APPROVE FY 2023/24-2028/29 FIVE-YEAR CONSOLIDATED PLAN, ANALYSIS OF IMPEDIMENTS TO FAIR HOUSING, FY 2023/24 ANNUAL ACTION PLAN, AND FUNDING AWARD RECOMMENDATIONS Q1: Should the description of the item be updated to 2023-2024, instead of 2021-22 listed? A1: The incorrect recommendation was listed on the agenda. The agenda has since been updated to reflect the correct recommendation as presented in the staff report. Recommendation: 1. Conduct a public hearing and receive public testimony. 2. Adopt amendment to Annual Action Plan Fiscal Year 2021-22 Community Development Block Grant. 3. Approve the project amendment to Annual Action Plan Fiscal Year 2021-22 Community Development Block Grant. Palm Desert Library JUNE 22, 2023 Supp 2C-1 Background May 2nd - Parks & Rec Committee recommendation to Council May 11th - Council directed staff to further research municipal library June 8th – Council established library task force June 22nd – staff seeking direction from staff Supp 2C-2 Financial Comparison COUNTY s County will work with City to increase service levels s City does not have to pay additional; Existing library revenue to be used s $4M reserved by County from former RDA library pass through funds s County willing to partner with the City to use $4M for a new library with public, private,partnership (P3) model. City s Estimated $2.6M annual revenue would be redirected to City s County staff supportive of transferring $4M to City for a new library Supp 2C-3 Financial Breakdown Remain with County System Current Library Revenue $4,600,000 Current Library Expense $1,500,000 Withdraw from County System Estimated Library Revenue to City $2,600,000 Current Library Expense $1,500,000 Supp 2C-4 Capital Funds Capital Funds Former Redevelopment Funds for Library Facility Improvements (Held by County) $4,000,000 Amount held by City Library Maintenance Fund $674,000 $4,674,000 Supp 2C-5 What’s Next and Timeline REMAIN WITH COUNTY s Library is now fully staffed (Met with LS&I on service improvements) s Develop plan with task force and community on program enhancements s Agreement with County to clarify funding s Restructure lease with College of the Desert for deferred maintenance Supp 2C-6 What’s Next and Timeline WITHDRAW FROM COUNTY (City would commence July 1, 2024) s Conclude legal analysis of all agreements s Approve notice to withdraw and adopt ordinance establishing municipal system s Negotiate withdrawal agreements with County s Negotiate a short-term lease with College of the Desert (by December 2023) s Develop staffing and services plan with task force and community input (By December 2023) s Identify a potential new location and funding source for a City owned and operated library Supp 2C-7 Policy Questions Does the Council… Remain with the County Library system Stay at Current location or find new one in partnership with County Enhancing existing service levels Withdraw and establish City Library system Short Term lease with College Develop full staffing model with task force and community input Build new library and operate or stay at current location Supp 2C-8 PALM COMMUNITIES Amended and Restated Disposition, Development, and Loan Agreement APN 694-120-028 & A PORTION OF 694-120-029 Supp 2D-1 Supp 2D-2 Villas at Millennium APPROVED - LAND SALE PROPOSED – LAND SALE Project •City land sold at FMV ($3,425,000) •241 Units - (239 affordable, 2 Managers) •Two Phases •Parcel Map Approval •72 Extremely Low, 121 Very Low and 46 > 80%AMI Moderate •55-year Affordability Term •241 Units - (239 affordable, 2 Managers) •One Phase •Parcel Map Approval •72 Extremely Low, 24 Very Low and 143 Low •24 Reserved for Victims of Domestic Violence •55-year Affordability Term Financial Impact •City receives FMV, $3,425,000 •Authority Loan, $6,755,000 •City provides $3,425,00 carryback loan for purchase price •Authority Loan, reduced to $3,330,000 •Developer to pay $10,000 Annual Monitoring Fee Funding Sources •Tax Exempt Bonds •Tranche B Loan, 60 PBV •Federal Tax Credit Equity •State Tax Credit Equity •County Loan •Deferred Developer Fee •Tax Exempt Bonds •Tranche B Loans, 120 PBV •Federal Tax Credit Equity •HCD MHP •County Loan •Deferred and Contributed Developer Fee DDLA Term •Escrow Closing by June 30, 2024 •Escrow Closing by June 30, 2026 - With the City Manager’s right to terminate should Palm Communities fail to secure proposed funding sources by December 30, 2024.Supp 2D-3 From:SUZANE WILBUR To:CouncilMeeting Comments Subject:Five Districts Needed Date:Wednesday, June 21, 2023 8:54:37 PM To the Palm Desert City Council- I live in Palm Desert. I want to be in a District that has a representative that lives in the same District, but geographically near me. This is the only way to assure appropriate representation. This is the only way to have representation that understands the local issues impacting people where they live. The voters have already said that five districts are needed. No amount of studies will change this vote. Respectfully, Suzane Wilbur Supp 2E-1 City of Palm Desert FY 2023/24 Financial Plan and Five-Year Capital Improvement Program June 22, 2023 Supp 3B-1 FY 2023/24 Goals and Priorities GOALS DESCRIPTION LEAD TEAM COMMITTEE/SUBCOMMITTEES INVOLVED Cal State University Palm Desert Campus Advocate for the creation of a Cal State University Palm Desert Campus or other education related uses on the land donated by the City for this purpose. Economic Development City Manager’s Office CV Priority One Desert Willow Strategy Develop a strategy for the disposition and development of the remaining Desert Willow properties . Economic Development Development Services Economic Development Subcommittee Business Recruitment Develop a plan to identify and recruit retail, entertainment, and other business that will contribute to Palm Deserts existing unique shopping and entertainment offerings . Economic Development Economic Development Subcommittee North Sphere Planning Analyze the recommendations of the CBRE study for potential changes in land use patterns in the North Sphere. Economic Development Development Services Economic Development Subcommittee Mall Redevelopment Conduct market and land use planning studies to evaluate options for adaptive re -use of the Mall resulting in a Mall Master Plan. Economic Development City Manager’s Office Economic Development Subcommittee Broadband Master Plan Develop a Broadband Master Plan that assesses whether and how the City can enhance connectivity for businesses and residents, while working with, and factoring in the work accomplished by federal, state, and regional resources . Economic Development Public Works Economic Development Subcommittee North Sphere Parks Gather community input, design, and build a community and regional park in North Palm Desert Public Works Parks & Recreation Committee Public Safety Improvements Explore new technology, review budgets, and gain efficiencies for improved public safety services . Conduct a review of current law enforcement contract and fire services . City Manager’s Office Public Safety Committee Active Transportation Projects (ATP) Analyze relevant studies to develop a 5-year Active Transportation Project plan that includes opportunities to enhance CV Link, PD Link/bike lanes, and incorporate these projects into the 5-year CIP budget. Capital Projects ATP Subcommittee Supp 3B-2 FY 2023/24 General Fund Proposed Budget GF Operations Proposed Budget Revenue 75,554,467 Expenditures 75,353,985 Revenue over (under) Expenditures 200,482 Supp 3B-3 FY 2023/24 General Fund Revenues Revenue Type FY 2023-2024 Proposed Sales Tax 26,623,447 Transient occupancy tax includes Short Term Rentals*21,005,000 Property Tax Secured & Unsecured 8,746,728 Franchises (Cable/Gas/Electric/Waste)3,200,000 Timeshare mitigation fee 1,711,324 Business license tax 1,300,000 Transfers In (AIPP, Traffic Safety, Parkview, Housing, Cannabis)1,852,700 Permits/Fees 3,296,768 State Payments (VLF, Parking Bail, MV lieu)5,029,000 Interest and Rents 871,000 Reimbursements/Other Revenues 1,918,500 TOTAL GENERAL FUND 75,554,467 Supp 3B-4 FY 2023/24 General Fund Expenditures Department FY 2023-2024 Proposed Budget 4110 City Council 310,856 4111 City Clerk 1,098,834 4112 Legislative Advocacy 40,845 4114 Elections 317,500 4120 - 4121 Legal 631,808 4130 City Manager 1,371,083 4134 Capital Projects 1,761,809 4150 Finance and Audit 2,533,261 4154 Human Resources 914,392 4159 General Services 5,791,317 4190 Information Technology 2,369,979 4191 Unemployment Insurance 10,000 4192 Insurance 1,149,000 4199 Interfund Transfers 8,906,074 4210 Police Services 21,519,523 4211 Community Safety 135,000 4212 Homelessness Service 353,000 4230 Animal Regulation 362,000 4250 Traffic 1,247,105 4300 Public Works 1,748,112 4310 Streets 2,363,505 4311 Street Resurfacing - 4312 ADA Improvements 25,000 4313 Parking Lot Improvements 200,000 4314 Street Resurfacing - 4315 Street Resurfacing - 4330 Corp Yard 225,200 4331 Fleet 337,500 4340 Building Maint 1,334,051 4344 Portola Community Ctr 194,500 4396 NPDES 85,000 4416 Community Promotions 504,700 4417 Marketing 1,963,471 4419 Visitor Services 12,930 4420 Building and Safety 1,505,143 4421 Permit Center 589,439 4422 Code Enforcement 847,877 4430 Economic Development 1,848,981 4470 Community Development 2,693,078 4610 Parks and Recreation 1,971,200 4611 Park Maintenance 1,289,500 4614 Landscape Services 3,048,691 4618 Citywide Park Imps 120,000 4674 Civic Center Park Imps 30,000 4800 Contributions 1,592,721 4950 Property Acquisition - Total General Fund 75,353,985 Supp 3B-5 Five-Year CIP Summary Est. FY 22/23 FY 23/24 FY 24/25 FY 25/26 FY 26/27 FY 27/28 Carryover Year 1 Year 2 Year 3 Year 4 Year 5 General Fund - 865,000 1,406,000 862,000 799,000 799,000 Special Revenue Funds 8,758,168 26,457,238 20,089,135 10,825,135 8,369,135 8,199,135 Capital Project Funds 3,578,361 45,366,260 7,361,212 2,750,932 1,428,463 4,609,099 Debt Service Funds - 1,585,336 349,344 - - - Internal Service Funds 799,083 1,303,562 636,783 560,655 460,072 340,183 Enterprise Funds 1,749,551 3,302,583 969,692 1,029,428 773,568 1,756,098 Unfunded - - 10,000,000 24,000,000 15,000,000 - Totals 14,885,163 78,879,979 40,812,166 40,028,150 26,830,238 15,703,515 Supp 3B-6 FY 2022/23 Revenue Updates Sales Tax •Q1 Sales Tax Projection for 2023/24 shows a decline in projected revenues of ($500,000) as compared to Q4 Projection used for budget TOT •Transient Occupancy Tax receipts are anticipated to reach $23.5M at FYE 2023. •This exceeds the FYE 2024 projection at $21M, but budget anticipates softening as it typically trends Sales Tax. Interest •Interest Rates have increased substantially (FYE 2022 Combined Int Rate = .58% Current Combined Int Rate = 4.2%). Anticipated increases to interest earnings should offset the projected decrease in sales tax. Monitoring Plan •Staff will continue to monitor GF revenues closely given the current economic factors and return to Council if any major changes are identified. Supp 3B-7 Questions? Supp 3B-8 FY2023-2028 Consolidated Plan/ Analysis of Impediments & FY2023-24 Annual Action Plan June 22, 2023 Supp 3D-1 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) OVERVIEW The City of Palm Desert receives an annual allocation of funds from the U.S. Department of Housing and Urban Development (HUD). CDBG Funds are Intended for the Purposes of: ➢ Providing Decent Housing ➢ Creating a Suitable Living Environment ➢ Expanding Economic Opportunities National Objectives Requirements: ➢ Benefit Persons who are Low -Mod Income ➢ Eliminate Blight ➢ Address Urgent Threat to Health & Safety Supp 3D-2 FYE 2023- 2028 Palm Desert Consolidated Plan •The Consolidated Plan (ConPlan ) is a guide for the City on how the funds will be allocated for the next 5 years. •The Analysis of Impediments (AI) is designed to aid the City by making data- driven, place-based investment decisions for the next five years, July 1, 2023 through June 30, 2029 •The Annual Action Plan provides a list of the priorities for the CDBG program for the current fiscal year Supp 3D-3 ELEMENTS OF A 5 -YEAR CONSOLIDATED PLAN •Citizen Participation Plan •Action Plan •Strategic Plan •Housing & Homeless Needs Assessment •Housing Market Assessment •Monitoring Plan •Certification •Analysis of Impediments to Fair Housing Supp 3D-4 THE CITY’S PRIORITY NEEDS FOR THE NEXT 5 YEARS Priority #1 Prevent and Eliminate Homelessness Priority #2 Improve Neighborhoods, Public Facilities, and Infrastructure Priority #3 Economic Development Priority #4 Broadband needs Priority #5 Provide Public Services for low-income residents Priority #6 Affordable Housing Preservation Supp 3D-5 Recommended Action Plan for Program Year 2023/2024 Supp 3D-6 Recommended Action Plan for Program Year 2023/2024 Supp 3D-7 Staff Recommendations 1.Conduct a public hearing and accept public comment related to the FY 2023/24 - 2028/29 Community Development Block Grant (“CDBG”) Program and related items . 2.Approve the City’s FY 2023/24-2028/29 Consolidated Plan, Analysis of Impediments to Fair Housing (AI), and 2023/24 Annual Action Plan and subrecipient funding allocation (Annual Plan) as recommended by the Outside Agency Committee and authorize staff to submit to Housing and Urban Development (HUD). 3.Authorize the City Manager to execute any documents and/or amendments necessary to effectuate the actions taken herewith. Supp 3D-8 Questions Supp 3D-9