HomeMy WebLinkAbout2023-08-241
Palm Desert City Council, Successor Agency to the Palm Desert Redevelopment Agency,
and Housing Authority
Regular Meeting Minutes
August 24, 2023, 3:30 p.m.
Present: Councilmember Jan Harnik, Councilmember Gina Nestande, Mayor
Pro Tem Karina Quintanilla, Councilmember Evan Trubee, and
Mayor Kathleen Kelly
1.CALL TO ORDER - CLOSED SESSION - 3:30 P.M.
A Regular Meeting of the Palm Desert City Council was called to order by Mayor Kelly on
Thursday, August 24, 2023, at 3:30 p.m. in the Council Chamber, City Hall, located at 73-
510 Fred Waring Drive, Palm Desert, California.
2.PUBLIC COMMENT FOR CLOSED SESSION ITEMS ONLY
3.RECESS TO CLOSED SESSION
Mayor Kelly adjourned to Closed Session at 3:30 p.m.
4.CLOSED SESSION AGENDA
The following items will be considered in closed session.
4.a Closed Session Meeting Minutes: July 13, 2023
4.b Conference with Real Property Negotiations pursuant to Government Code
Section 54956.8
4.b.1 PROPERTY DESCRIPTION: 73710 FRED WARING DRIVE, SUITE 135
4.b.2 PROPERTY DESCRIPTION: 45656 MOUNTAIN VIEW AVENUE
4.b.3 PROPERTY DESCRIPTION: DESERT WILLOW LOT PAD A (APN 620-400-
025)
5.ROLL CALL - REGULAR MEETING - 4:00 P.M.
6.PLEDGE OF ALLEGIANCE
Councilmember Harnik led the Pledge of Allegiance.
7.INSPIRATION
Mayor Pro Tem Quintanilla provided words of inspiration.
8.REPORT OF CLOSED SESSION
Assistant City Attorney Shah stated that no reportable actions were taken.
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9. AWARDS, PRESENTATIONS, AND APPOINTMENTS
Mr. Ceja thanked Barbara Blythe for her 18 years of service to the City of Palm Desert, and
announced that her name would be added to the City's plaque in the Administrative
Services lobby which recognizes employees for their enduring excellence. Mayor Kelly
presented Ms. Blythe with a proclamation announcing September 8, 2023, as Barbara
Blythe Day.
9.a PROCLAMATION - DR. VINES DAY
Mayor Kelly presented a proclamation to Dr. Diane Vines in honor of National Health
Clinic Month, and celebrated August 24, 2023, as Dr. Diane Vines Day.
10. CITY MANAGER COMMENTS
City Manager Hileman introduced Sgt. Porras who provided an update to the City Council
on police services and thanked the City Council for their partnership.
Digital Strategies Analyst Penta, Public Works Director Alvarez, and Community Services
Manager Muir narrated a PowerPoint presentation summarizing the City's response and
efforts before, during, and after the recent weather event associated with Tropical Storm
Hilary.
Economic Development Deputy Director Lawrence narrated a PowerPoint presentation
regarding the City's 50th celebration in November 2023.
11. MAYOR/COUNCILMEMBER REPORTS AND REQUESTS FOR ACTION
Councilmembers reported their attendance at various meetings and events, and thanked
City staff for all of their efforts during the storm. Councilmember Harnik reported the
opening of the Community Art Gallery; urged residents to participate in the LifeStream blood
drive. Councilmember Trubee noted that all fourteen self-help homes on Merle Street closed
escrow and provided an update on the library. Mayor Kelly echoed the sentiments of the
Councilmembers regarding the excellent response by City staff; praised the decisions of
City Council members in the 1970's and 1980's to begin a $60 million investment in flood
control; and encouraged the City Council to be as prescient and mindful when faced with
making similar decisions for future generations.
12. NON-AGENDA PUBLIC COMMENTS
Lisa Ford, Palm Desert resident, shared information on an open house for Alzheimer's
Coachella Valley which will include a ribbon cutting for their new building.
Donald Ziegler, Palm Desert resident, urged the City Council to consider local backup
power capabilities and other heat mitigation measures in the event of extreme climate
conditions.
Brian Kim, Palm Desert High School senior, introduced his Artificial Intelligence (AI) fitness
project, a fundraising project for Los Angeles Children's Hospital. Mayor Kelly referred the
project to City Manager Hileman for additional follow-up.
Alex spoke of the impacts of greenhouse gasses on the desert.
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13. CONSENT CALENDAR
City Clerk Mejia announced an urgency item relative to the recent weather event, stating the
matter arose after the posting of the agenda and needed to be considered urgently.
MOTION by Councilmember Harnik, second by Councilmember Trubee to add the urgency
item to the agenda as Item 13.p, unanimously approved (5-0).
City Clerk Mejia clarified that if Item 13.j were approved, the expenditure would come from
Mayor Pro Tem Quintanilla's individual budget.
Motion by: Councilmember Harnik
Seconded by: Councilmember Trubee
Motion Carried (5 to 0)
13.a APPROVAL OF CITY COUNCIL, SUCCESSOR AGENCY, AND HOUSING
AUTHORITY MINUTES
Approve the Minutes of July 13, 2023.
13.b APPROVAL OF WARRANTS
Approve the warrants issued for the period 4/17/2023 to 8/11/2023.
13.c RECEIVE AND FILE APPLICATIONS FOR ALCOHOLIC BEVERAGE LICENSES
Receive and file the applications for Alcoholic Beverage Licenses for the following
businesses:
1. MR BS SUBS, LLC. 74600 HIGHWAY 111 Ste F
2. LA PRO Visions, Inc; LA PROVENCE PATISSERIE 72785 Hwy 111 Ste B1
3. CEC Entertainment; Chuck E Cheese's 72513 Hwy 111 Ste H
4. Palm Desert Harmony, Inc.; Pokehana 73405 Hwy 111 Ste 104
13.d ACCEPT RESIGNATIONS FROM THE CIVIC ENGAGEMENT COMMITTEE,
CULTURAL ARTS COMMITTEE, AND PARKS AND RECREATION COMMITTEE
With regret, accept the resignations of Anyse Smith from the Civic Engagement
Committee; Debra Norby (Alternate) from the Cultural Arts Committee; and James
Henderson from the Parks and Recreation Committee.
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13.e HOUSING AUTHORITY: RESOLUTION NO. HA-118 AUTHORIZING EXECUTION
AND DELIVERY OF A HOUSING AND LOAN AGREEMENT WITH A0358
MONTEREY, L.P., APPROVING A LOAN IN THE AMOUNT OF $7,235,000 FOR
CONSTRUCTION OF 176 AFFORDABLE HOUSING UNITS AND RELATED
ACTIONS
1. Approve Resolution No. HA-118 authorizing the execution and delivery of a
Loan Agreement, Deed of Trust, Secured Promissory Note and Housing
Agreement, in substantial form, between the Palm Desert Housing Authority
and A0358 Monterey, L.P., a California Limited Partnership, and approving a
loan in the amount of Seven Million Two Hundred Thirty-Five Thousand
Dollars ($7,235,000.00) from the Authority’s Low and Moderate Income
Housing Asset Fund to fund the construction of One-Hundred Thirty Nine
(139) of the One-Hundred Seventy Four (174) affordable housing units
comprising the proposed apartment project.
2. Authorize the Chairman and/or Executive Director, in consultation with legal
counsel, to execute as appropriate and deliver, for and in the name of the
Authority, the Loan Agreement, Deed of Trust, Secured Promissory Note and
Housing Agreement presented to the Authority Board at this meeting, as the
same may be modified by the Executive Director in consultation with legal
counsel to the Authority, provided such modifications are materially consistent
with the purpose of the Resolution.
3. Authorize the Chairman, the Executive Director, or their respective
designees, in consultation with legal counsel to the Authority, to execute and
deliver, for and in the name of the Authority, all other necessary or proper
documents and instruments, and to do all things which they may deem
necessary or proper to effectuate the purposes of the Resolution.
13.f APPROVE SECOND AMENDMENT TO THE EL PASEO PARKING & BUSINESS
IMPROVEMENT DISTRICT CONTRACT NO. C43370 WITH FG CREATIVE
1. Authorize Amendment No. 2 to El Paseo Parking and Business Improvement
District (EPPBID) Contract No. C43370 with FG Creative in the amount of
$250,000 for Fiscal Year (FY) 2023/24.
2. Authorize the City Attorney to make non-substantive changes to the contract.
3. Authorize the City Manager to execute the agreement on behalf of the City.
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13.g APPROVE A HOUSING AGREEMENT BY AND BETWEEN THE CITY OF PALM
DESERT AND A0358 MONTEREY, LP, FOR THE CROSSINGS AT PALM DESERT
APARTMENTS PROJECT
1. Approve the attached Housing Agreement by and between the City of Palm
Desert and A0358 Monterey, a California Limited Partnership, (“Owner”), in
accordance with the conditions of approval of the development, of 176 units
known as The Crossings at Palm Desert Apartments, a multifamily rental
housing project located at the southeast corner of Dick Kelly Drive, Palm
Desert, California (the “Project”).
2. Authorize the City Manager or his designee, to finalize the Housing
Agreement, and the documents described in the Agreement or otherwise
deemed necessary or proper to effectuate the Housing Agreement and
conditions of approval, with such changes thereto as the City Manager or his
designee, in consultation with the City’s legal counsel, may deem appropriate
or necessary and consistent with the purposes of the Housing Agreement
and conditions of approval, with such approval to be conclusively evidenced
by the execution and delivery thereof.
3. Authorize the Mayor and/or City Manager or their designee, to execute and
deliver, for and in the name of the City, the Housing Agreement and other
documents, as described in Recommendation No. 2, and authorize the City
Clerk to record the Housing Agreement.
13.h APPOINT AMY LAWRENCE TO THE COACHELLA VALLEY ECONOMIC
PARTNERSHIP'S BOARD OF DIRECTORS
Appoint Amy Lawrence to the Coachella Valley Economic Partnership’s Board of
Directors.
13.i APPROVE OUT-OF-STATE TRAVEL FOR PUBLIC AFFAIRS MANAGER FOR
STRATEGIC MARKETING PLANNING IN AUSTIN, TX
Authorize out-of-state travel for the Public Affairs Manager to travel to Austin, TX, for
an in-depth strategic planning session with the City’s creative agency, Idea Peddler.
13.j REQUEST FOR MAYOR PRO TEM QUINTANILLA TO PARTICIPATE IN THE 2024
LEADERSHIP COACHELLA VALLEY PROGRAM
Approve an expenditure in the amount of $1,200 for Mayor Pro Tem Quintanilla to
participate in the 2024 Leadership Coachella Valley program.
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13.k CITY COUNCIL AND HOUSING AUTHORITY: APPROVE DOWN PAYMENT
ASSISTANCE LOAN FROM THE LOW-AND MODERATE- INCOME HOUSING
ASSET FUND TO CONTINUE AN AFFORDABLE HOUSING COST FOR THE
HOMEOWNERS AT 75-476 WILDFLOWER LANE
1. Approve the issuance of a silent down-payment assistance loan by the Palm
Desert Housing Authority pursuant to the Desert Rose Sales Program and
standard documents, in the amount of $30,000 to continue an affordable
housing cost for the homeowners at 75-476 Wildflower Lane pursuant to
California Health and Safety Code Section 50052.5 as a qualified low- or
moderate-income household from the Low- and Moderate-Income Housing
Asset Fund.
2. Authorize the release of the City’s Deed of Trust recorded December 7, 2012,
securing the promissory note for the existing silent down payment BEGIN
loan.
3. Authorize waiving the interest on the homeowner’s existing City Loan from
the original date the City’s Deed of Trust recorded on December 7, 2012,
through the date of release.
4. Approve the Palm Desert Housing Authority’s Housing Asset Fund down
payment assistance loan term to be forgivable 30 years from the original City
Loan recording of December 7, 2012, so long as all terms of the loan are met
by the homeowners.
5. Authorize Director of Finance to transfer $30,000 from the Homebuyer Down
Payment Assistance Account No. 8734699-4400100 and reimburse the City
in BEGIN Fund.
6. Authorize the City Manager/Executive Director, or designee, to execute,
release, and finalize any documents necessary to effectuate the actions
taken herewith.
13.l RELEASE GRADING BOND AND REDUCE THE FAITHFUL PERFORMANCE
AND LABOR AND MATERIALS BONDS FOR TR 37993, MONTAGE
1. Reduce the Faithful Performance and Labor and Materials Bonds for TR
37993.
2. Release the Grading Bond in the full amount of $186,906.
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13.m AWARD CONTRACT NO. C46140 TO DESERT AIR CONDITIONING, INC., FOR
HEATING, VENTILATION, AND AIR CONDITIONING PREVENTATIVE
MAINTENANCE IN THE ANNUAL AMOUNT OF $106,028 (PROJECT NO.
MFA00008)
1. Waive any minor proposal irregularities and award Contract No. C46140 to
Desert Air Conditioning, Inc., for the Heating, Ventilation and Air Conditioning
(HVAC) Preventative Maintenance in the annual amount of $106,028.
2. Authorize extra work and services for HVAC repairs and replacements up to
the annual amount of $75,000.
3. Authorize the City Manager or designee to approve up to two, one-year
contract amendments/extensions.
4. Authorize the City Manager or designee to review and approve change
orders for any unforeseen circumstances per Section 3.30.170 of Ordinance
No. 1392.
5. Authorize the City Attorney to make any necessary, non-monetary changes to
the Agreement and the authorize the City Manager to execute said
agreement.
13.n RESOLUTION AUTHORIZING DESTRUCTION OF OBSOLETE RECORDS FROM
THE FINANCE DEPARTMENT AND HUMAN RESOURCES DEPARTMENT
Adopt Resolution No. 2023-039 authorizing the destruction of obsolete records from
the Finance Department and Human Resources Department pursuant to California
Government Code Section 34090.
13.o AWARD ON-CALL CONTRACTS TO MULTIPLE VENDORS FOR PARK AND
FACILITIES REPAIRS AND IMPROVEMENT PROJECTS
1. Pursuant to PDMC Section 3.30.160(I), award Contract No. C44620D to R&R
B Inc. dba Servpro of Chino/Chino Hills, Chino, California and Contract No.
C44620E to Doug Wall Construction, Bermuda Dunes, California for Park and
Facilities Repairs and Improvements, for a period of three (3) years in an
aggregate amount not to exceed $3,000,000 per fiscal year.
2. Authorize the City Manager to review and approve up to two (2) additional
one-year terms per contract for an aggregated amount not to exceed
$3,000,000 per fiscal year.
3. Authorize the City Manager or designee to review and approve change
orders for unforeseen circumstances.
4. Authorize the City Manager to execute said agreements.
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13.p RESOLUTION NO. 2023-040 TO RATIFY THE PROCLAMATION OF A LOCAL
EMERGENCY DUE TO HURRICANE HILARY
Adopt Resolution No. 2023-040 entitled, "A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF PALM DESERT, CALIFORNIA, RATIFYING THE
PROCLAMATION OF A LOCAL EMERGENCY DUE TO HURRICANE HILARY
ISSUED BY THE MAYOR AND CITY MANAGER ACTING AS THE EMERGENCY
CORPS COMMANDER ON AUGUST 20, 2023."
14. ACTION CALENDAR
14.a APPROVAL OF AN AGREEMENT FOR LAW ENFORCEMENT SERVICES
BETWEEN THE CITY OF PALM DESERT AND THE COUNTY OF RIVERSIDE
FOR A THREE-YEAR TERM FROM FY2024/2025 TO FY2026/2027
Emergency Services Coordinator Esqueda provided a staff report and responded to
City Council inquiries.
Alex spoke in opposition to funding police services.
Motion by: Councilmember Harnik
Seconded by: Councilmember Nestande
1. Approve Agreement No. C46170 for Law Enforcement Services with the
County of Riverside for a three-year term effective from July 1, 2024, through
June 30, 2027.
2. Authorize the City Attorney to make any necessary, non-monetary changes to
the Agreement.
3. Authorize the Mayor to execute the Agreement and any documents
necessary to effectuate and implement the actions taken herewith.
Motion Carried (4-0-1, MAYOR PRO TEM QUINTANILLA ABSTAIN)
14.b PALM DESERT REDISTRICTING 2023 - REVIEW OF THE SCHEDULE OF
PUBLIC HEARINGS/WORKSHOPS AND PUBLIC EDUCATION AND OUTREACH
PLAN – OPTIONAL PROCESSES FOR ESTABLISHING DISTRICT BOUNDARIES
City Clerk Mejia narrated a PowerPoint presentation and responded to City Council
inquiries.
Motion by: Councilmember Trubee
Seconded by: Councilmember Harnik
1. Approve the Public Education and Outreach Plan & Schedule of Public
Hearings/Workshops.
2. Move forward with the Council-Driven option for boundaries.
Motion Carried (5 to 0)
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14.c INTRODUCTION OF ORDINANCE NO. 1399 UPDATING CHAPTER 8.20 OF THE
PALM DESERT MUNICIPAL CODE UPDATING PUBLIC NUISANCE ABATEMENT
AND COST RECOVERY PROCEDURES, AND MAKING A FINDING OF
EXEMPTION UNDER CEQA
Director of Development Services Cannone provided a staff report and responded to
City Council inquiries.
Motion by: Councilmember Nestande
Seconded by: Councilmember Harnik
Waive full reading and introduce Ordinance No. 1399 entitled, “AN ORDINANCE OF
THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, UPDATING
CHAPTER 8.20 OF THE PALM DESERT MUNICIPAL CODE REGARDING PUBLIC
NUISANCE ABATEMENT AND COST RECOVERY PROCEDURES, AND MAKING
A FINDING OF EXEMPTION UNDER CEQA”
Motion Carried (5 to 0)
14.d REQUEST FOR FEEDBACK AND DIRECTION REGARDING UPDATING
CHAPTER 5.04 REGARDING MODIFICATION, SUSPENSION, OR REVOCATION
OF BUSINESS LICENSES
Director of Development Services Cannone provided a staff report and responded to
City Council inquiries.
The City Council directed staff to revise the language of the ordinance to retain the
City Council as the appeal body for a business license suspension, and bring the
ordinance back for consideration at an upcoming City Council meeting.
15. PUBLIC HEARINGS
15.a JOINT CITY COUNCIL AND HOUSING AUTHORITY PUBLIC HEARING TO
CONSIDER REMOVAL OF BLAIR ARMSTRONG FROM THE PALM DESERT
HOUSING COMMISSION IN ACCORDANCE WITH HEALTH AND SAFETY CODE
SECTION 34282
Mayor Kelly opened the public hearing.
City Clerk Mejia provided a staff report.
There being no one desiring to speak, Mayor Kelly closed the public hearing.
Motion by: Councilmember Harnik
Seconded by: Mayor Pro Tem Quintanilla
1. Pursuant to Health and Safety Code Section 34282, conduct a hearing on the
removal of Blair Armstrong from the Palm Desert Housing Commission.
2. Find Blair Armstrong to be in neglect of duty of his obligations as a Housing
Commissioner and remove him from the Palm Desert Housing Commission,
effective immediately.
Motion Carried (5 to 0)
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15.b RESOLUTION NO. 2023-041: APPROVE A PROPOSED PLAN FOR BOND
ISSUANCE BY THE CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT
AUTHORITY FOR THE CROSSINGS AT PALM DESERT APARTMENT PROJECT
Mayor Kelly opened the public hearing.
Housing Manager Gonzales narrated a PowerPoint presentation.
There being no one desiring to speak, Mayor Kelly closed the public hearing.
Motion by: Mayor Pro Tem Quintanilla
Seconded by: Councilmember Nestande
1. Conduct the public hearing under the requirements of Tax and Equity Fiscal
Responsibility Act (“TEFRA”) and the Internal Revenue Code of 1986, as
amended (the “Code”) in connection with the proposed issuance in one or
more series of revenue bonds by the California Statewide Communities
Development Authority (“CSCDA”), a joint exercise of powers authority and
public entity of the State of California, in an amount not to exceed Sixty
Million Dollars $60,000,000.00 (the “Bonds”), to finance the acquisition,
construction and development of the 176-unit Crossings at Palm Desert
Apartments, a multifamily rental housing project located at located at the
southeast corner of Dick Kelly Drive & Gateway Drive, Palm Desert,
California (the “Project”) and receive public comments.
2. Adopt Resolution No. 2023-041 in the form attached hereto approving the
issuance of the Bonds by CSCDA for the benefit of A0357 Palm Desert, L.P.,
a California Limited Partnership (the "Borrower") a partnership of which
Urban Housing Communities, LLC (the "Developer") or a related person to
the Developer is the general partner, to provide for the financing of the
Project. Such adoption is solely for the purposes of satisfying the
requirements of TEFRA, the Code and California Government Code Sections
6500 et seq.
Motion Carried (5 to 0)
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15.c ORDINANCE NO. 1398 TO CHANGE THE ZONING DESIGNATION OF PARCEL 1
OF PARCEL MAP NO. 36614, LOCATED APPROX. 500 FEET FROM NW
CORNER OF HWY 111 AND FRED WARING DR. FROM RESORT COMMERCIAL
CENTER (PC-4) TO DISTRICT COMMERCIAL CENTER (PC-2) - CEQA FINDING
Mayor Kelly opened the public hearing.
Principal Planner Melloni narrated a PowerPoint presentation.
There being no one desiring to speak, Mayor Kelly closed the public hearing.
Motion by: Councilmember Nestande
Seconded by: Mayor Pro Tem Quintanilla
Waive full reading and introduce Ordinance No. 1398 entitled, “AN ORDINANCE OF
THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, ADOPTING
A NOTICE OF EXEMPTION PURSUANT TO CALIFORNIA ENVIRONMENTAL
QUALITY ACT (CEQA) AND APPROVING A CHANGE OF ZONE FROM PC-4 TO
PC-2 FOR THE PROPERTY LOCATED ON PARCEL 1 OF PARCEL MAP NO.
36614 AT 72221 HIGHWAY 111 (ASSESSOR'S PARCEL NUMBER 640-020-054)”
Motion Carried (5 to 0)
15.d CONSIDER APPROVAL OF A TRANSIENT OCCUPANCY TAX SHARING
AGREEMENT NO. C46160 BETWEEN THE CITY OF PALM DESERT AND
NEWAGE DESERT SPRINGS, LLC
Mayor Kelly opened the public hearing.
Economic Development Director Ceja narrated a PowerPoint presentation.
Scott White, CEO of Visit GPS, spoke in favor of the agreement.
Nusrat Mirza, General Manager of JW Marriott Desert Springs Resort, spoke in favor
of the agreement.
There being no one else desiring to speak, Mayor Kelly closed the public hearing,
Motion by: Councilmember Trubee
Seconded by: Councilmember Harnik
1. Approve the Transient Occupancy Tax (TOT) Sharing Agreement No. C46160
between the City of Palm Desert and Newage Desert Springs, LLC remitting
50% of incremental TOT generation not to exceed $10 million to the property
owner for the development and expansion of conference/ballroom space at
the JW Marriott Desert Springs.
2. Authorize the City Attorney to make non-substantive changes to the
Agreement.
3. Authorize the City Manager to execute said Agreement.
Motion Carried (5 to 0)
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16. INFORMATION ITEMS
None.
17. ADJOURNMENT
The City Council adjourned at 6:06 p.m.
SUBMITTED BY:
_________________________
Níamh M. Ortega
Assistant City Clerk/Assistant Secretary
ATTEST:
_________________________
Anthony J. Mejia, MMC
City Clerk/Secretary
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