HomeMy WebLinkAboutPost-Meeting Agenda Package - StudySession_Feb15_2024
PALM DESERT CITY COUNCIL,
SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT
AGENCY,
AND HOUSING AUTHORITY MEETING
REGULAR MEETING POST-MEETING AGENDA
Thursday, February 15, 2024
3:00 p.m.
Council Chamber, City Hall
73-510 Fred Waring Drive
Palm Desert, California
NOTICE IS HEREBY GIVEN that the purpose of the Study Session is to review the items listed on the
agenda. No action will be taken.
Pages
1.CALL TO ORDER - STUDY SESSION
2.STUDY SESSION TOPICS
2.a STUDY SESSION: ARTICLE 34 OF THE CALIFORNIA CONSTITUTION 3
RECOMMENDATION:
Receive and file a presentation related to City’s authority under Article 34 of
the California Constitution and status.
2.b STUDY SESSION: PALM DESERT VISITOR SERVICES 15
RECOMMENDATION:
Receive and file a presentation relative to Palm Desert Visitor Services.
3.ADJOURNMENT
4.PUBLIC NOTICES
NOTE: Pursuant to Assembly Bill 2449, this meeting may be conducted by
teleconference. Study Session is accessible in person or on the City’s website:
www.palmdesert.gov under the Council Agenda link at the top of the page.
Agenda Related Materials: Pursuant to Government Code §54957.5(b)(2) the
designated office for inspection of records in connection with this meeting is the
Office of the City Clerk, Palm Desert Civic Center, 73-510 Fred Waring Drive,
Palm Desert. Staff reports for all agenda items considered in open session, and
documents provided to a majority of the legislative bodies are available for
public inspection at City Hall and on the City’s website at www.palmdesert.gov
by clicking “Council Agenda” at the top of the page.
Americans with Disabilities Act: It is the intention of the City of Palm Desert to
comply with the Americans with Disabilities Act (ADA) in all respects. If, as an
attendee or a participant at this meeting, or in meetings on a regular basis, you
will need special assistance beyond what is normally provided, the City will
attempt to accommodate you in every reasonable manner. Please contact the
Office of the City Clerk, (760) 346-0611, at least 48 hours prior to the meeting to
inform us of your needs and to determine if accommodation is feasible.
AFFIDAVIT OF POSTING
I, Níamh M. Ortega, Assistant City Clerk of the City of Palm Desert, do hereby
certify, under penalty of perjury under the laws of the State of California, that the
foregoing agenda for the Palm Desert City Council, Successor Agency for the
Palm Desert Redevelopment Agency, and Housing Authority, was posted on the
City Hall bulletin board and City website www.palmdesert.gov no less than 72
hours prior to the meeting.
/S/ Níamh M. Ortega
Assistant City Clerk
City Council Study Session
Page 2 of 22
Page 1 of 1
CITY OF PALM DESERT
STAFF REPORT
MEETING DATE: February 15, 2024
PREPARED BY: Jessica Gonzales, Housing Manager
REQUEST: STUDY SESSION: ARTICLE 34 OF THE CALIFORNIA CONSTITUTION
RECOMMENDATION:
Receive and file a presentation related to City’s authority under Article 34 of the California
Constitution and status.
BACKGROUND/ANALYSIS:
City staff will provide information on Article 34 of the California Constitution, an update on the
City’s existing authorization, and future steps.
Legal Review:
This report has been reviewed by the City Attorney’s office.
FINANCIAL IMPACT:
There is no financial impact.
ATTACHMENTS:
1. Presentation
Page 3 of 22
Page 4 of 22
Report on Authorization Under California Constitution Article 34
By: Jessica Gonzales, Housing Manager, City of Palm Desert
Page 5 of 22
Article 34 Background
•Article 34 is a provision in the California Constitution that requires voter approval
before a public body can develop, construct, or acquire a low rent housing project.
•State legislation implements Article 34 through Health and Safety Code Section 37000
et seq.
•Section 37001 excludes certain projects from the definition of “low rent housing project.”
•For example, a common exclusion is for projects that have no more than 49% of the
units restricted for low-income households, provided other conditions are met.
•Section 37001.5 excludes certain activities from “develop, construct, or acquire.”
•For example, Article 34 does not apply if a public entity is providing assistance and
monitoring construction to the extent the public entity is carrying out governmental
functions, performing conventional activities of a lender, or imposing constitutional
or statutory mandates of funding.
•Other definitions and exclusions apply and projects should be evaluated individually.
Page 6 of 22
Current Authorization Under Article 34
In 1978, the City voters provided authorization for purposes of Article 34, subject to the limit that
low rent housing does not exceed 5% of the total dwelling units within the City. Below is a summary
of the City's capacity under the voter-approved Article 34 limit (as of November,2023).
Total Dwelling Units (Based on 2020 census)39,751
Current Article 34 Cap (5% of 2020 census)1,988
Units Built Subject to Article 34 1,267
Units Under Construction Subject to Article 34 266
Units In Pre-Construction Phase Potentially Subject to Article 34*478
Projected Article 34 Units (assuming all 2,012 potential units included)2,012
*The City evaluates whether a project is subject to Article 34 at various phases of the project depending on
information about financing, affordability requirements, and other relevant factors, as information becomes
available. Thus, it is possible that some of these units are not ultimately counted towards the Article 34 limit.
Page 7 of 22
Next Steps
•California voters will decide whether to repeal Article 34 at the November, 2024 General Election
(this was originally scheduled for March,2024, but moved during the last state legislative session)
•If voters do not repeal Article 34, then the City will likely exceed voter approved limits for projects
subject to Article 34
•The City may authorize a ballot measure for the November, 2024 General Election that requests
approval of increased Article 34 authority. City staff intends to return to the City Council in March
seeking authorization to propose this measure and call an election. This authorization would be
necessary if Article 34 is not repealed in the statewide election.
Page 8 of 22
Report on Authorization Under California Constitution Article 34
By: Jessica Gonzales, Housing Manager, City of Palm Desert
Page 9 of 22
Article 34 Background
Article 34 is a provision in the California Constitution that requires voter approval
before a public body can develop, construct, or acquire a low RENT housing project.
State legislation implements Article 34 through Health and Safety Code Section 37000
et seq.
•Section 37001 excludes certain projects from the definition of “low rent housing project.”
−For example, a common exclusion is for projects that have no more than 49% of the
units restricted for low-income households, provided other conditions are met.
•Section 37001.5 excludes certain activities from “develop, construct, or acquire.”
•For example, Article 34 does not apply if a public entity is providing assistance and
monitoring construction to the extent the public entity is carrying out governmental
functions, performing conventional activities of a lender, or imposing constitutional
or statutory mandates of funding.
Other definitions and exclusions apply and projects should be evaluated individually.
Page 10 of 22
Current Authorization Under Article 34
In 1978, the City voters provided authorization for purposes of Article 34, subject to the limit that low
rent housing does not exceed 5% of the total dwelling units within the City.
Below is a summary of the City's capacity under the voter-approved Article 34 limit (as of November 2023).
Total Dwelling Units (Based on 2020 census)39,751
Current Article 34 Cap (5% of 2020 census)1,988
Units Built Subject to Article 34 1,267
Units Under Construction Subject to Article 34 266
Units In Pre-Construction Phase Potentially Subject to Article 34*478
Projected Article 34 Units (assuming all 2,012 potential units included)2,012
*The City evaluates whether a project is subject to Article 34 at various phases of the project depending on
information about financing, affordability requirements, and other relevant factors, as information becomes
available. Thus, it is possible that some of these units are not ultimately counted towards the Article 34 limit.
Page 11 of 22
Next Steps
•California voters will decide whether to repeal Article 34 at the November, 2024 General Election
(this was originally scheduled for March,2024, but moved during the last state legislative session)
•If voters do not repeal Article 34, then the City will likely exceed voter approved limits for projects
subject to Article 34
•The City may authorize a ballot measure for the November, 2024 General Election that requests
approval of increased Article 34 authority. City staff intends to return to the City Council in March
seeking authorization to propose this measure and call an election. This authorization would be
necessary if Article 34 is not repealed in the statewide election.
NOTE:
With this authorization the City is NOT committing any funding, guaranteeing new units will be
built, and permits, environmental reviews, and City Council approval are still required for any
developments.
Page 12 of 22
Proposed Article 34 Ballot Measure
OPTIONS to CONSIDER for INCREASING CAPACITY
STATUS QUO INCREASE by QUOTA INCREASE BY %INCREASE WITH NO
LIMIT
•No further capacity
available.
•Increase by a set
quota amount such
as the RHNA
allocation or a
specific number.
•Increase by a
percentage,
potentially 8%
•Unlimited capacity
Page 13 of 22
Proposed Article 34 Ballot Measure
PRO/CONS OF OPTIONS
STATUS QUO INCREASE by QUOTA INCREASE BY %INCREASE WITH
NO LIMIT
PRO •None.
•Allows for construction of
low-income housing units
up to the quota
established.
•The use of a specific
number or an allocation
such as RHNA provides a
threshold for community.
•Provides the City with the
ability to address the need
for additional affordable
housing.
•Allows for construction of
low-income housing units to
continue based on the City’s
growth.
•The % that is established
would be based on total
dwelling units within the City
allowing a proportionate
amount of affordable
housing to the City’s growth.
•Provides some limit that
requires community input.
•Allows option to
construct limitless
number of low-
income housing
units.
CONS
•Without additional capacity, it is
possible the construction of low-
income housing units with
government financing or assistance
could be halted in the City.
•Limits the City in meeting it’s General
Plan goals under the Housing Element
and RHNA.
•Limits Housing Opportunities to Low-
Income Households.
•This option may limit
capacity per quota
established.
•Will require more frequent
request for ballot measures
to be approved, depending
on quota established.
•Limited by % established.
•Removes voter
participation
If article 34 is repealed, then the City will have no restrictions.Page 14 of 22
Palm Desert
Visitor Services
Page 15 of 22
Where are we now?
Palm Desert Visitor Services annually provides
in-person information to 6,572 people at City
Hall. Though not ideal, this location has been
sufficient for the past eight years.
Discussion about the future home of Palm Desert
Visitor Services has recently focused on the new
Library building currently in the pre -planning
phase. One of the many advantages of housing
Visitor Services at the library includes the ability
to assist visitors seven days a week.
Page 16 of 22
What’s Being Proposed
The renovation of the current library building planned for May/June offers an excellent
opportunity to move Visitor Services to the existing library as it becomes a City facility. This move
would take immediate advantage of the synergy between the library and Visitor Services in
advance of any future construction, providing a higher level of customer service to our visitors
than is available in its current location.
Page 17 of 22
Questions
and
Feedback
Page 18 of 22
Palm Desert
Visitor Services
Page 19 of 22
Where are we now?
The Palm Desert Visitor Services annually
provides in-person service to 6,572 people at
City Hall,and responds to 1,549 phone calls.
Visitor Services has been located at City Hall for
the past 8-years.
Customer Service
Pros Cons
Civic Center Location Limited to Weekday Hours
Support Staff in Proximity Limited Space
City Business vs. VS. Conflicts
No Ability/Room for Merchandise
Current Location
Page 20 of 22
What’s Being Proposed
Opportunity: The renovation of the current library building planned offers an excellent
opportunity to move Visitor Services to the building as it becomes a City facility. This move would
take immediate advantage of the synergy between the Library and Visitor Services in advance of
any future construction, providing a higher level of customer service to our visitors than is
available in its current location.
Pros Cons
Open Seven (7) days a week Staffing plan options for expanded operations
In design phase: spacing can be determined now
Ability for Merchandise
Trial too determine spacing needs in a new facility
Training Opportunity for Library/VS Staff
Library Location
Page 21 of 22
Questions
and
Feedback
Page 22 of 22