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HomeMy WebLinkAboutPrelim Minutes - City 01/23/2020DRAFT PRELIMINARY MINUTES -X. A REGULAR PALM DESERT CITY COUNCIL MEETING THURSDAY, JANUARY 23, 2020 CIVIC CENTER COUNCIL CHAMBER 73510 FRED WARING DRIVE, PALM DESERT, CA 92260 I. CALL TO ORDER - 3:00 P.M. Mayor Nestande convened the meeting at 3:01 p.m. II. ROLL CALL Present: Councilmember Jan C. Harnik Councilman Sabby Jonathan Mayor Pro Tern Kathleen Kelly Councilmember Susan Marie Weber Mayor Gina Nestande Also Present: Lauri Aylaian, City Manager Robert W. Hargreaves, City Attorney Andy Firestine, Assistant City Manager Rachelle D. Klassen, City Clerk Lori Carney, Director of Administrative Services Russell Grance, Director of Building & Safety Eric Ceja, Principal Planner Martin Alvarez, Director of Economic Development Janet M. Moore, Director of Finance/City Treasurer Tom Garcia, Director of Public Works Stephen Y. Aryan, Risk Manager Ty Davis, Division Chief, Palm Desert Fire/Riverside Co. Fire Dept./Cal Fire Mike Beverlin, Battalion Chief, Palm Desert Fire/Riverside Co. Fire Dept./Cal Fire Sgt. Jared Howe, Palm Desert Police/Riverside Co. Sheriff's Department Grace L. Rocha, Deputy City Clerk III. ORAL COMMUNICATIONS - A (CLOSED SESSION ITEMS) None PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 23, 2020 IV. ADJOURN TO CLOSED SESSION Request for Closed Session: A. 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 Nestande adjourned the meeting to Closed Session of the City Council at 3:02 p.m. She reconvened the meeting at 4:14 p.m. V. RECONVENE REGULAR MEETING - 4:00 P.M. A. REPORT ON ACTION FROM CLOSED SESSION. None VI. PLEDGE OF ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA - Mayor Gina Nestande VII. INVOCATION/INSPIRATION - Councilman Sabby Jonathan VIII. AWARDS AND PRESENTATIONS A. PRESENTATION OF PROCLAMATION, DECLARING THURSDAY, JANUARY 23, 2020, AS "PALM DESERT AZTECS VOLLEYBALL TEAM DAY" IN THE CITY OF PALM DESERT. On behalf of the City Council, Mayor Nestande presented the proclamation to the Palm Desert Aztecs Volleyball Team. She congratulated them for making it to the State Playoffs, stating they represented their school and the City well. B. PRESENTATION OF PROCLAMATION, RECOGNIZING RIVERSIDE COUNTY FIRE PERSONNEL AND BATTALION 12 FIREFIGHTERS FOR THEIR HEROISM AND LIFE-SAVING ACTIONS ON A STRUCTURE FIRE AT CALIFORNIA VILLAS APARTMENTS ON SATURDAY, DECEMBER 28, 2019. On behalf of the City Council, Mayor Nestande presented the proclamation to Firefighters Kevin Brown, Travis Thompson, and Fire Captain James Hinkle for their heroism and life-saving action on December 28. She also thanked fire personnel present for their bravery and dedication for the well-being of the community. 2 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING DRAFT JANUARY 23, 2020 Fire Chief Davis is thankful the City supports their program, stating it's an honor to work in the City of Palm Desert, especially around a great group of dedicated, efficient, and professional firefighters that serve the public 365 days a year. He said he and Fire Chief Newman are proud of their team. He extended his thanks to Sgt. Jared Howe with the Riverside County Sheriff's Department and law enforcement partners, because anytime there is a Fire Department response whether it's a structure, hazardous material, or medical emergency, they are providing assistance. C. PRESENTATION TO THE CITY COUNCIL BY QUEEN SCHEHERAZADE AND HER COURT AS AMBASSADORS OF THE 2020 RIVERSIDE COUNTY FAIR AND NATIONAL DATE FESTIVAL. Ms. Kayley Serrano, Queen Scheherazade; Ms. Alexandria Gooray, Princess Dunyazade; and Ms. Analise Ortega, Princess Jasmine, each greeted the City Council and provided background on themselves and personally invited them and all present to visit the upcoming Date Festival, February 14-23, 2020. They thanked the City Council for the opportunity to make this presentation and provided each with a lapel pin and Date Festival brochure commemorating the 2020 event. IX. ORAL COMMUNICATIONS - B MR. ROB BALLEW announced he was the Interim CEO of the Palm Desert Area Chamber of Commerce. He noted he retired from the YMCA in October 2019, and he is now with the Chamber. He said on Friday, March 20, 2020, the Chamber will be hosting the State of the City where Mayor Nestande will share what is happening in Palm Desert and City goals for the future. He thanked the City Council for always supporting the Chamber. MS. MARY HAAS, Highway 74, Palm Desert, stated she's been before the City Council requesting the City purchase vacant lots that are still available and creating small pocket parks. She was told about four years ago this was in the works, but to her knowledge nothing has been done. She lives along Highway 74 where there is no grass area, and although, there is green space at the Civic Center Park, there is none between the two places. She said there are a lot of people that walk their dogs, so she felt creating small parks was an important need for the City and it's a good way for neighbors to get to know each other. Mayor Nestande said her contact information will be forwarded to staff and perhaps the Parks and Recreation Commission to look into it. 3 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING DRAFT JANUARY 23, 2020 MR. WALLY MELENDEZ expressed his appreciation for the Brown Act, which allows him to talk about his three favorite subject, education, housing, and real estate. He heard Council say it doesn't have jurisdiction over College of the Desert, but he disagreed, stating it can influence the college to provide a four-year bachelor's degree program benefitting students of the Coachella Valley. Also, he encouraged young individuals to pursue real estate ownership and getting away from renting and/or buying a condo. X. CONSENT CALENDAR PALM DESERT CITY COUNCIL A. MINUTES of the Regular City Council Meeting of January 9, 2020. Rec: Approve as presented. B. CLAIMS AND DEMANDS AGAINST THE CITY TREASURY - Warrant Dated 12/16/2019. Rec: Approve as presented. C. CLAIMS AND DEMANDS AGAINST THE CITY/HOUSING TREASURIES - Warrants Dated 12/20/2019 and 1/3/2020 (Joint Consideration with the Palm Desert Housing Authority - see Item R below). Rec: Approve as presented. D. APPLICATION FOR ALCOHOLIC BEVERAGE LICENSE by Embassy Suites by Hilton Palm Desert, 74700 Highway 111, Palm Desert. Rec: Receive and file. E. CITY COMMITTEE AND COMMISSION MEETING MINUTES. 1. Marketing Committee Meeting of October 1, 2019. 2. Parks and Recreation Commission Meeting of November 5, 2019. 3. Youth Committee Meetings for 2019. Rec: Receive and file. 4 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING DRAFT JANUARY 23, 2020 F. REQUEST FOR ADOPTION of Resolutions of the City Council of the City of Palm Desert, California, Setting Forth Its Findings and Authorizing the Destruction of Paper Records that Have Been Digitally Imaged from the Department of Building & Safety, to Rely On the Electronic Record as the Official Record — Records Dated September, October, November, and December 2018, and January, February, March, and April 2019 (Exhibit "A"). Rec: Waive further reading and adopt Resolution Nos.: 1) 2020 - 02 - September 2018 Records; 2) 2020 - 03 - October 2018 Records; 3) 2020 - 04 - November 2018 Records; 4) 2020 - 05 - December 2018 Records; 5) 2020 - 06 - January 2019 Records; 6) 2020 - 07 - February 2019 Records; 7) 2020 - 08 - March 2019 Records; 8) 2020 - 09 - April 2019 Records. G. RESOLUTION NO. 2020 - 10 - A Resolution of the City Council of the City of Palm Desert, California, Setting Forth Its Findings and Authorizing the Destruction of Records from the Office of the City Clerk as Indicated on the Records Retention Schedule (Adopted September 12, 2019) - Various Records Center Files (Exhibit "A"). Rec: Waive further reading and adopt. H. RESOLUTION NO. 2020 - 11 - A Resolution of the City Council of the City of Palm Desert, California, Setting Forth Its Findings and Authorizing the Destruction of Paper Records that Have Been Digitally Imaged from the Office of the City Clerk, to Rely On the Electronic Record as the Official Record — Various Records Center Files (Exhibit "A"). Rec: Waive further reading and adopt. RESOLUTION NO. 2020 - 12 - A Resolution of the City Council of the City of Palm Desert, California, Setting Forth Its Findings and Authorizing the Destruction of Records that Have Been Digitally Imaged from the Department of Community Development, to Rely On the Electronic Record as the Official Record (Exhibit "A"). Rec: Waive further reading and adopt. J. RESOLUTION NO. 2020 - 13 - A Resolution of the City Council of the City of Palm Desert, California, Setting Forth Its Findings and Authorizing the Destruction of Records that Have Been Digitally Imaged from the Department of Community Development, to Rely On the Electronic Record as the Official Record - Youth Committee Files (Exhibit "A"). Rec: Waive further reading and adopt. 5 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 23, 2020 K. REQUEST FOR RATIFICATION of the Assignment of Contract from GDG to GDG, Inc., for Services to Operate the El Paseo Courtesy Cart Service (Contract No. C38440). Rec: By Minute Motion, ratify the assignment of subject contract from GDG to GDG, Inc., Palm Desert, California, for Services to Operate the El Paseo Courtesy Cart Service. L. REQUEST FOR APPROVAL of Law Enforcement Responsibilities Memorandum of Understanding (MOU) Agreements Between the City of Palm Desert, County of Riverside, California State University, San Bernardino, College of the Desert, and University of California, Riverside. Rec: By Minute Motion: 1) Approve Law Enforcement Responsibilities MOUs Between the City of Palm Desert, County of Riverside, and each of the following: a) California State University, San Bernardino (Contract No. C39810A); b) University of California, Riverside (Contract No. C3981013); c) College of the Desert (Contract No. C39810C); 2) authorize the City Manager to execute all MOU Agreements. M. REQUEST FOR APPROVAL of the 2020 SWING `N HOPS STREET PARTY —Saturday, February8. Rec: By Minute Motion, approve/permit: 1) Road closure on El Paseo between San Pablo Avenue and Larkspur Lane for the 2020 Swing `N Hops Street Party; 2) Consumption/Possession of Alcoholic Beverages on Public Property pursuant to Palm Desert Municipal Code Section 9.58.040. N. REQUEST FOR APPROVAL of the 2020 Palm Desert Half Marathon and 5K Event - Sunday, February 9 (Southland Events, LLC, Applicant). Rec: By Minute Motion, approve: 1) 2020 Palm Desert Half Marathon and 5K scheduled for Sunday, February 9; 2) proposed event route and road closures; 3) temporary waiver of Palm Desert Municipal Code (PDMC) Sections: a) 11.01.140 - Amplified Sound; b) 11.01.080(W) - Possession/Consumption of Alcohol in City Parks, pursuant to PDMC Section 9.58.040; c) 11.01.080(0) - Prohibited Conduct Generally in City Parks - Vendor Sales. A PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 23, 2020 SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY O. MINUTES of the January 9, 2020, Regular Meeting of the Board of Directors of the Successor Agency to the Palm Desert Redevelopment Agency. Rec: Approve as presented. P. CLAIMS AND DEMANDS AGAINST SUCCESSOR AGENCY TREASURY - Warrant Dated 1 /3/2020. Rec: Approve as presented. PALM DESERT HOUSING AUTHORITY Q. MINUTES of the Housing Authority Meeting of January 9, 2020. Rec: Approve as presented. R. CLAIMS AND DEMANDS AGAINST THE CITY/HOUSING TREASURIES - Warrants Dated 12/20/2019 and 1/3/2020 (Joint Consideration with the Palm Desert City Council - see Item C above). Rec: Approve as presented. S. HOUSING COMMISSION MINUTES for the Meeting of December 4, 2019. Rec: Receive and file. Upon motion by Harnik, second by Kelly, and 5-0 vote of the City Council (AYES: Harnik, Jonathan, Kelly, Weber, and Nestande; NOES: None), the Consent Calendar was approved as presented. XI. CONSENT ITEMS HELD OVER None XII. RESOLUTIONS None 7 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING XIII. ORDINANCES A. For Introduction: None B. For Adoption: None XIV. NEW BUSINESS DRAFT JANUARY 23, 2020 A. REQUEST FOR ESTABLISHMENT AND IMPLEMENTATION OF THE "INVEST PALM DESERT" ECONOMIC DEVELOPMENT INCENTIVE PROGRAM. Senior Development Analyst Wayne Olson said staff will be providing an overview of the proposed incentive program and its guidelines. The Incentive Program consists of six categories that applicants will be able to apply for from the City. He noted he and Director of Economic Development Martin Alvarez have been working on this together for more than a year as it was one of the City's established goals for 2019. They have packaged a very good program for Council to review. The 2019 goal was "Design an effective, transparent and marketable incentive program that targets a diverse economy and spurs economic development." In order to inject a diverse economy, staff ensured the incentives were diverse as well, which will be illustrated in the menu of options being proposed. Since the April 2019 study session with the City Council, staff has presented the program to the Economic Development subcommittee in December where it received helpful and fruitful comments, and incorporated into the package. He said the work being presented was a team effort that included Tourism and Marketing Manager Thomas Soule. By incorporating comments received at the April 2019 study session, and as part of the Incentive Program Overview, staff targeted transformative areas of the City and tied it back to the General Plan by identifying certain geographies within Palm Desert where you can apply for these incentives. The program includes six categories and a two-year "kick start" that has a sunset date of June 1, 2022. This will be an application -based program in order to implement a transparent process. There is State law that requires any city contribution of over $100,000 to be reported in AB561 format. Staff will be requesting $2 million from the Economic Development Reserve Fund. Guidelines for participation in the program require that the applicant must be a business, business owner, lessor, developer or real property owner within the boundaries of the City of Palm Desert, with one exception under the High Wage "Move In" Incentive category where they can be outside City boundaries. Additionally, State law E:3 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 23, 2020 mandates that applicants express financial need and public consideration and acknowledge prevailing wages. Staff worked diligently with the legal team to create program categories that wouldn't trigger prevailing wage, but failed at that effort. Therefore, every proposed category an applicant applies for will trigger prevailing wages. He noted this wasn't a problem unique to Palm Desert as it was a Statewide issue every jurisdiction face in situations likes this. Applicants must be located within the following zoning districts: Desert Willow and University Park Area; Downtown; Downtown Overlay; Downtown Edge; Planned Commercial; and Service Industrial. Best practices indicate the incentive should be tied to a job/position. Most cities when they employ an incentive, they have some sort of job measure based on a per dollar volume. In our case, staff is proposing one (1) job per $100,000 of City investment or create one full-time employee (FTE) paid position at 100% of median income. The median income this year is $48,800. There is also a provision to create two FTE at 90% of median income per $100,000. Again, this ties the incentive back to jobs, and another way to think about this, if an applicant applies for $100,000, they have to retain one job for the term of the incentive. In addition, the applicant will have to obtain their regular entitlements, policy approval, and permits the way they typically would apply for as a project. The program has to commence by June 1, 2022, in order for the incentive to employ $2 million in aggregated funds for the program. Direction from Council was for the opportunity to review authority on many of the projects, if not all. Therefore, staff set a threshold of $25,000 for City Manager review and approval, with an aggregated amount of $250,000 total on a given year. Anything over and above $25,000 would appear before the City Council to qualify for the program. The program consists of the following six categories: Development & Plan Check Fee Rebate; Capital Improvements Grant; High Wage "Move In" Incentives; Site Specific Revenue Sharing; New Development Project Assistance; and Ongoing Incentives. He went on to review each of the categories as follows: Development & Plan Check Fee Rebate is targeted toward local businesses looking at renovation and expansion. Eligible fees are planning application fees, development services and plan check fees, and certain development impact fees. In this program category, the applicant would pay the fees and upon completion of the project be rebated. Capital Improvements Grant is a remaking of the very successful Facade Enhancement Program (FEP) that was offered by Palm Desert for many years. The target here is local and new businesses, existing buildings, capital improvements, and facades. Staff heard from the business community that this is an ongoing desired category. For example, restaurants that are trying to open a new facility in the City have the onerous task of providing a grease trap, which can be costly to a restaurant and prohibitive to opening a new business. The �67 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 23, 2020 grant can be limited to tenant improvements, HVACs, roofs, and parking. It's an expansion of the former FEP. Staff proposed Citywide in the proposed zoning areas described earlier would be a one to one (1:1) match not to exceed $500,000. For a project of $1 million, the owner would contribute $500,000 and the City would contribute $500,000. It's a higher amount than the former FEP, but staff wanted to spur economic development in a meaningful and effective way. If the program is over subscribed, it's a good problem to have. In conversation with Community Development, staff felt strongly to leverage the $8 million infrastructure investment made along San Pablo Avenue by providing a specialized program specific to the San Pablo Commercial Corridor. Those dollars would be matched two to one (2:1), so for every dollar contributed, the City would match it up to $2, but not exceed $200,000 for a total project cost of $300,000. The idea here is that San Pablo has smaller businesses and the hope is to kick start development and also prepare the platform for future development. He displayed a map of the San Pablo area that would be eligible for the 2:1 match. Responding to question, he said the Fresh Agave would be eligible for the 1:1 match program up to $500,000. High Waae "Move In" Incentive category was generated out of the Economic Development Strategic Plan. One of the key factors identified indicated a desire to incent high -wage employers. This incentive is directed at new tech and high -wage employers that would move their headquarter (HQ) operation from another jurisdiction outside the City into Palm Desert. One exception is that businesses coming out of the iHub would be eligible as well. As an attachment to the staff report is NAICS (North American Industry Classification System) Code List as a platform for which staff would filter headquarter locations, stating it's a technology list developed by Coachella Valley Economic Development (CVEP). The incentive here is $25,000 to the business for each employee they employ at $150% of a median income wage (median wage $48,800 x 150% _ $73,200). They are to keep their headquartering location and maintain their employment base for five years, and this is paid in arrears. If the HQ was to move or close, the pro rata share would be calculated and reduced across time. Site Specific Revenue Sharing targets the hospitality, tourism, entertainment and retail developments. The City has practiced this a couple of times in the past, most likely with hotels. It's a performance -based rebate program and it doesn't impact the $2 million requested for implementation of the program. Again, this is performance based, and like Transient Occupancy Tax (TOT), they would get paid if they perform. This option is on a case -by -case basis with proforma, consultation by an outside party, typically KMA (Keyser Marston Associates) and would appear before the City Council. it$] PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 23, 2020 New Development Proiect Assistance targets commercial, mixed use, new build, and new construction. This can be a broad category, because staff has a variety of tools at its disposal and economic development finance. Again, this will be on a case -by -case basis and it barely impacts the dollars staff will be requesting for the program. Onaoina Incentives option is to help the business community remain in the City. In his 20 years of experience in economic development, Palm Desert is one of the most business friendly with its very efficient plan review and development services, including a business concierge service in the form of a Business Advocate in the Economic Development Department. Another incentive made by the City is the Palm Desert iHub, which has over $1 million in investment on technology. Staff will connect businesses to other utility incentives, including County, Regional and State incentives. He said staff hopes to have a thorough website to help navigate people through the process, but it will also do it through the Business Advocate. He said these are ongoing incentives where staff is already helping businesses obtain. He said the above described categories are being proposed by staff as the entirety of the "Invest Palm Desert Incentive Program." His final slide illustrated the Incentive Program process, which would need to be finalized. If the program is approved, it will authorize the City Manager to administer and implement the program. This program fulfills the goals of the Economic Development Strategic Plan. The key to this, which he heard in multiple sessions, both the study session and the subcommittee, is that the City will have to market the program in order to be successful. He had many conversations with Tourism and Marketing Manager Thomas Soule about this issue, therefore, Council will see a request for funds for marketing this program in a future meeting. If the City Council approves the program this evening, he expects it will be up and running by the first quarter of this calendar year. In summary, the request by staff is to appropriate $2 million to the "Invest Palm Desert" Incentive Program from the Economic Development Reserve Funds, along with other administrative items. Mayor Nestande asked about the current balance in the Fund. Ms. Moore responded there is currently $4 million in the Economic Development Reserve Fund. Councilman Jonathan thanked Mr. Olson and Mr. Alvarez and the Economic team for a great job and looking forward to its implementation. One area of concern is where a business must create or retain one job for every $100,000 of City investment. He asked if this particular guideline applied to all six categories. 11 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 23, 2020 Mr. Olson explained it would be a general program guideline for all six categories. If a business is below $100,000, there is no job requirement, but if the public contribution is beyond $100,000, it would require that one FTE position. Councilman Jonathan questioned how that would work in the case of a lessor of a property owner that would not directly create a new job. Of course, indirectly, reduce vacancy and add to the local economy and employment. Mr. Olson stated that presumably, a property owner that would apply for $200,000 would be able to account for at least two jobs in that building. Of course this is a proposed guideline, but Council can strike it. Mayor Nestande commented that a restaurant owner might not generate a high -income job but might need $100,000 to do a facade enhancement. Therefore, she questioned if this might be an issue. Councilman Jonathan concurred, stating he viewed this as potentially problematic, because you could have a lessor wanting to invest a significant amount, in a place the City wants to improve, but a property owner applying under Capital Improvement may not have access to his lessee's employment records. Also, there could be an existing job, but not necessarily create a new position. He believed this required further analysis by staff before committing to an overarching requirement. Mr. Olson clarified the requirement is to create or retain a position. Also, this specific guideline serves as a catch all for public consideration, in that there is an economic development function. However, the City Council could find it too onerous for certain applications and can remove it. Councilman Jonathan referencing the San Pablo Corridor where properties defined in that area would qualify for a 2:1 investment, asked if staff would consider applying the 2:1 ratio to the Downtown City Core, specifically El Paseo. Mr. Alvarez explained he worked closely with Community Development and determined that San Pablo specifically is really the City's transformative area. One can see the investment that's happening there now, and staff followed up by creating an incentive to kick start development. Of course staff is open to considering the same application to other areas of downtown. However, the intent here is to create a focus point or ground zero to initiate this program. 12 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 23, 2020 Councilman Jonathan called attention to the High Wage Incentive category where it requires a five-year retainment of the headquarters and employees, and here again he is sensing problems, because very few companies stick around for five years. He asked if the business had to retain the same employees or the positions. Mr. Olson explained this program was imagined with the dollar amount to be calculated and prorated across the five years. If the headquarters was to leave earlier, the pro rata share would go down. In other words, this is accounted for in arrears, so if an employer provides evidence of four jobs that pay 150% of a median wage in year one, and in year two they can do the same, he didn't think the public would have an interest necessarily that they are the same person, as long as they are providing the same job. Staff selected five years because it wanted an effective tool, but obviously they can be honed and sharpened over time. In this case, staff felt for the dollar volume they are describing, it would be important to have the longevity with a headquartered location. It's no small order to move a headquarters, so staff would hope the move would be considered as a natural course of business and remain longer than five years. If they don't, they wouldn't receive the eligible benefit. Councilman Jonathan said he heard staff say it didn't have to be the same employee, but that the position would have to continue. He also heard that even though this is being proposed as a two-year program, the duration of this element may go five years, because it will be paid in arrears annually. Mr. Olson concurred. Further responding he clarified that if there are four businesses that qualify for $500,000 under the High Wage Incentive category, the City would be at the maximum fund for incentives as proposed to be appropriated. He noted there was a maximum of $500,000 per business. Councilman Jonathan agreed with staff's comment that the marketing of the program is critical, particularly to the High Wage Incentive Program, because the City is trying to draw new high tech businesses. Having the High Wage Incentive category without marketing the program would negate the efforts. He asked if there was funding for the marketing of the program. Mr. Olson answered no, but there may be funds in this fiscal year to start marketing. In the upcoming budget study sessions, a request in the form of a White Paper for marketing will be made in addition to the $2 million for implementation of the program. He agreed with Councilman Jonathan it's important to have a marketing component. Councilmember Harnik thanked staff for the great work done. She pointed out there is currently a project on the overlay zone staff just identified, on the 13 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 23, 2020 corner of Fred Waring Drive and San Pablo Avenue on the southeast corner, and she wondered if staff thought about how these incentive programs might impact those contracts. Mr. Olson said yes, stating staff included those parcels specifically within this program element in the event the developer would seek funds under a new development assistance program. Of course they would have to come up with a structure for it and show a financing gap. Currently, that is not the current proposal. Staff wanted to include it, because there will be a retail component for mix -use projects. A retailer in that environment with the need for tenant improvements would be eligible to apply. Councilmember Harnik commented she appreciated all the options for existing and local businesses, because she believed the City should help them. She asked if there was a differentiating aspect between a large corporation, where the corporation is not here versus local and entrepreneurship. Mr. Olson responded that the way the process is contemplated, is that applications will come to the Economic Development Department and staff will review for qualification. It's likely staff will bring most, if not all, applications before the City Council. In cases where there is an absent corporation and they have employees in Palm Desert, staff would have to consider the application, and Council will have the opportunity to review it. If that headquarters operation wanted to move to Palm Desert, staff would point them toward the High Wage Move In Incentive program Each request for funds will appear before the City Council, so at the end of the day, it will decide how those dollars will be distributed. Councilmember Harnik said she mentions entrepreneur and local businesses, because she's wondering if they get extra bonus points for contributing to the El Paseo brand, adding these businesses have hired local marketing firms, designers, certified public accounts, and attorneys. She asked staff to consider this aspect and perhaps include some guidelines to address this issue. Mr. Olson thought it was a wonderful suggestion, however, no local business would be ineligible for any of the programs mentioned. If the City Council wishes to prioritize local businesses with a certain definition, staff can add it as a guideline. He reminded the City Council that these programs are tools, and although more can be added, these are the first six categories staff came up with as a starter kit. As the City develops new programs and new tools, more can be added. Responding to question about the current applicant/developer on San Pablo, he confirmed they are potentially eligible to apply if the City Council approves the proposed program. However, that 14 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 23, 2020 developer hasn't made any indication that they want City contribution, adding the incentive is tied to the land and not the applicant in that case. Councilmember Weber asked for clarification on who would be reviewing the application, and if this would be on a first -come, first -served basis. Also, what is the time frame for submitting the applications and the cutoff date. Mr. Olson replied that once the program is approved by the City Council and staff has ironed out functional administrative issues and printed out the guidelines, it contemplates starting by the first quarter of this calendar year, and it sunsets' June 1, 2022. It's a two-year program, so staff hopes it motivates folks to act quickly to take advantage of the current economic conditions. The applicant has a two-year window in which to perform once qualified for the program. He said applications will be submitted to the Economic Development Department, and he and Director Martin Alvarez will review the applications and provide reports to the City Council as they come in. If they come in all at once, the whole bundle will be brought before the City Council and staff will assist Council in prioritizing the applications, or in the case of the City Manager for applications less than $25,000. Staff wanted to avoid a first -come, first -served process, because there are sensitivities around it. Councilmember Weber noted that if four applications are submitted all at once, each for $500,000, it would eat up the $2 million, so it could result in a first -come, first served. Mr. Olson agreed. Mayor Pro Tern Kelly said she understood requests under $25,000 are decided by the City Manager, but applications more than $25,000 will be reviewed by staff if it's the kind of project its trying to incent and bring before the City Council. If early in the process there is an application for 25% of what the City has to spend, Council would then have to make a decision as to whether it's efficiently in love with the proposal to spend that much of the piggy bank. She added the City should anticipate having those kinds of issues if the program is successful and garners some interest. Mayor Nestande asked if someone, for example, wanted to open up a little restaurant, a grease trap costs $50,000 and a facade enhancement is another $50,000 resulting in an application of $100,000. This restaurant owner may hire a few waiters but it may not meet the $48,800 median income required. She wondered how the program would work for those trying to incent on San Pablo. Mr. Olson said Council should keep in mind that the requirement is one full-time employee created or retained. If the owner of the restaurant makes 15 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 23, 2020 the median wage, they would be able to qualify. If it's a partnership and each of the partner's make $48,800, they would qualify for the two retained or created jobs. Responding to question about incentivizing on San Pablo, he said staff felt the 2:1 investment the City would make was generous, because most of these programs are 50% matches. In some options they are 1:1-match, which is a valuable contribution to make. On San Pablo, applicants can get $2 of public money for every $1 spent, which is a strong way to incent local businesses. In other words, if an applicant spends $25,000, the net from the City can be $50,000. Councilman Jonathan stated that in the scenario mentioned by Mayor Nestande, the applicant would qualify under the Capital Improvements Grant and nothing to do with high -paying jobs, because the High -Wage Move In Incentive Program stands on it's own and is separate and targeted toward the tech industry. Mr. Olson concurred, however, the scenario Mayor Nestande mentioned reached $100,000 with the grease trap and facade enhancement, so they would have to account for one created or retained position. If the application is under $100,000, there is no job requirement. He explained that part of the design of this program is aligning with the Strategic Development Plan, and it's clear that high -wage jobs are the focus. The principal behind it, is that if you someone a high wage, they will support local restaurants and retail establishments. It will also help local businesses that may not be able to employ people at high wages, by providing that threshold of under $100,000. If a local business wants a $75,000 grant under this program, they wouldn't have a job requirement. Councilmember Weber commented she liked that the City was finally doing this. Mayor Pro Tem Kelly agreed, stating this was not giving away public funds. The criterion touched upon with all these categories, is that the applicant has to demonstrate a feasibility gap, which means the City is working with businesses that would not come to Palm Desert or would not make the enhancement discussed without this kind of incentive. It's a carefully thought out effort to incent economic development for the benefit of the whole community. She is exceedingly well pleased, but she would not extend the 2:1 ratio incentive beyond San Pablo, stating the 1:1 ratio is quite generous. She understands staff is proposing a special and direct investment to San Pablo where the City really wants to be transformative and the 2:1 ratio is appropriate. She also understands the job creation requirement is separate and apart from the High Wage incentive above $100,000, but her own perception is that it might complicate the process and it's administratively unnecessary. Quite frankly, it's hard to image any project meeting the criteria that wouldn't inheritedly create at least one job at the median income. 16 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 23, 2020 Councilman Jonathan said the program fits into the City's Strategic Plan and this was absolutely an investment that will come back to the City and it's residents; it's not a giveaway. However, he's concerned with the High Wage Move In expanding out five years, and since this is a two-year program, he wondered how his colleagues felt about limiting to two years. Administratively, it would be difficult to check on these businesses and see if positions and the headquarters still exist after five years, including rolling out funds after two years. He asked Council to think about tweaking this requirement. Additionally, responding to the comment about not generalizing the 2:1 ratio match to other parts of the City, he felt that if you take a step back, the San Pablo Corridor and El Paseo together is a very small part of the whole City. He felt the San Pablo Corridor is part of the Downtown City Core, and part of the strategy is to develop both. It's great to highly incentivize San Pablo, and he's not sure he wants to do the same for all applications on El Paseo, but he's equally not sure that it's wise to preclude Council from that ability. He recalled for Council this started with a consultant who informed the City that the vacancy rate on El Paseo was significant and trending in the wrong direction. Therefore, if the City can turbo charge its efforts to both San Pablo and El Paseo, it would be the appropriate target in terms of the City's vision of the Downtown City Core. Councilmember Harnik asked if there was anywhere in the City where you would not qualify to get a facade improvement. Mr. Olson replied that as long as the applicant was within the zoning areas as described in the previous slide, people should be able to at least apply for the program. Further responding, he said the program includes the University area. Mr. Ceja stated there are a number of commercial properties that would fall under Planned Commercial (PC) and Service Industrial (SI) properties around the University, stating much of that land is vacant and available for incentives. Councilmember Harnik noted the City has previously offered facade enhancement programs to businesses that provided a return on investment, adding she's seen those dollars come back to the City. She said the proposed incentive plan is great and she would like to see local and new businesses apply. Mayor Pro Tern Kelly believed that what happened in the evolution of this proposal is that it started as a one-to-one match, which is quite generous. Then Community Development had the bright idea to incent developers to come to San Pablo and spur a complete transformation by making a more generous 2:1 ratio. Of course the City wants to help the El Paseo merchants, but a total transformation is not needed there. Therefore, the two 17 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 23, 2020 situations are completely distinguishable and it's her view the special added ratio should simply apply to San Pablo to achieve its purpose. She is happy to shorten the five years to two years for the High Wage Move In if other Councilmember felt it was sensible. The issue of local versus conglomerate, is one issue staff can work within the context of individual proposals, because there might be some local sighting of a large corporation that would support local businesses. Further, she was prepared to move for adoption of the proposal with deletion of subpart 4 of the Exhibit D, which refers to the creation of one full-time job. Mayor Nestande agreed with striking the subpart 4 requirement, and going with a five-year period to a two-year time frame for the High Wage Move In category, and to put the City's focus on San Pablo with the two -to -one ratio. She added the City was on the line, because San Pablo has already been torn up and it's a major construction project and a big expense that now citizens are expecting spectacular results. Therefore, the City needs to make sure it draws development on that street. She believed the $2 million proposed by staff will go quickly, but Council can revisit looking at extending it to El Paseo. Councilman Jonathan said he was persuaded by Mayor Pro Tern Kelly and is now in agreement. Mr. Olson pointed out there is a typo in the proposed Resolution where the commencement date of March 1, 2022, is sited and it should be June 1, 2022, wherever it appears, and asked the City Council to note the correction in the motion. Mayor Pro Tern Kelly moved to: 1) Waive further reading and adopt Resolution No. 2020 - 14, authorizing establishment and implementation of the "Invest Palm Desert" Economic Development Incentive Program; 2) By Minute Motion, authorize: a) City Manager to implement "Invest Palm Desert" Program, including execution of agreements required to meet all program administrative requirements; b) Finance Director to appropriate $2 million from the Unobligated Economic Development Reserve Fund to the City's Economic Development Fund for the Program, amending the Resolution as follows: a) Correcting the date of March 1, 2022 to June 1, 2022, wherever it appears; b) deleting subpart A-4(a) from Exhibit A of page 1; c) modifying subpart B-3(a), the language from five years to two years in places where it appears. Motion was seconded by Jonathan and carried by a 5-0 vote (AYES: Harnik, Jonathan, Kelly, Weber, and Nestande; NOES: None). IN PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 23, 2020 B. REQUEST FOR APPROVAL OF THE 2020 CITY COUNCIL LIAISON ASSIGNMENTS ROSTER. Councilman Jonathan moved to, by Minute Motion, approve the 2020 City Council Liaison Assignments Roster as proposed, or as may be modified during discussion at the meeting. Motion was seconded by Weber and carried by a 5-0 vote (AYES: Harnik, Jonathan, Kelly, Weber, and Nestande; NOES: None). XV. CONTINUED BUSINESS None XVI. OLD BUSINESS None XVII. PUBLIC HEARINGS A. REQUEST FOR APPROVAL OF A SPECIFIC PLAN AND TENTATIVE PARCEL MAP 37234 TO SUBDIVIDE 32+ ACRES INTO FOUR (4) PARCELS BOUNDED BY EAST OF MONTEREY AVENUE, SOUTH OF DICK KELLY DRIVE, NORTH OF "A" STREET, AND WEST OF GATEWAY DRIVE; AND ADOPTION OF A MITIGATED NEGATIVE DECLARATION OF ENVIRONMENTAL IMPACT IN ACCORDANCE WITH THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA), Case Nos. SP 16-342 and TPM 37234 (MC Properties, LLC, Applicant). Principal Planner Eric Ceja stated staff sent out a public notice for this Public Hearing, but once the notice was sent, the Applicant requested a continuance of this item to the meeting of February 13, 2020. He asked the City Council to open the public hearing and continue it to that date. Mayor Nestande declared the public hearing open and invited anyone wishing to address the City Council on his matter to come forward at this time. With no testimony being officer, she left the public hearing open. Councilmember Harnik moved to, by Minute Motion, continue this matter to the meeting of February 13, 2020, motion was seconded by Kelly and carried by a 5-0 vote (AYES: Harnik, Jonathan, Kelly, Weber, and Nestande; NOES: None) 19 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 23, 2020 XVIII. MAYOR AND COUNCILMEMBER REPORTS & REMARKS TO THE COMMUNITY A. Councilmember Jan C. Harnik Committee Reports and General Comments. 2020 Goal Settina Studv Session - reported the City Council and staff met to set goals for the coming year, stating she's excited about what the City will be working on. 2. Riverside Countv Transportation Commission (RCTC) - their annual workshop is coming up next week where they will be discussing Countywide projects, including those specific to the Coachella Valley and Palm Desert. 3. The Desert Sun - "Your Voice" Article - she wrote an article encouraging feedback from the residents on the El Paseo Improvement Project, and the City is not short on ideas, opinions, and comments on this matter. 4. Courtesv Cart Sianaae - commented that the new signage is great and an asset to the courtesy cart program; they make a difference. B. Councilman Sabbv Jonathan Committee Reports and General Comments. None C. Mavor Pro Tem Kathleen Kellv Committee Reports and General Comments. None D. Councilmember Susan Marie Weber Meeting Summaries Report for the Period of December 28, 2019 - January 10, 2020. With City Council concurrence, the Meeting Summaries Report was received and filed. E Mavor Gina Nestande Committee Reports and General Comments. Committee/Commission Studv Sess wants to make sure they are doing community outreach and to let Pal commissions. m NE PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 23, 2020 F. City Council Reauests for Action. None G. City Council Consideration of Travel Reauests/ReDortS. None XIX. STAFF REPORTS AND REMARKS A. City Manager Citv Manager's Meetina Summaries Report for the Period of December 28, 2019 - January 10, 2020. With City Council concurrence, the Meeting Summaries Report was received and filed. 2. Committees/Commission Ad Hoc Committee - requested two volunteers from the City Council to continue the dialogue from today's Study Session. Councilmembers Harnik and Weber volunteered. 3. Second Public Open House on District Votinq - reported that the first public forum on District Voting was held on January 15. The second one is scheduled for Wednesday, February 12, 2020, 6:00 - 7:30 p.m., at the Palm Desert Community Center; food and child care will be available. She invited participation and input from Palm Desert residents, stating this was an educational opportunity and a time for dialogue back and forth between staff and the community as opposed to a formal public hearing. At upcoming public hearings, the public will be invited to speak in front of the City Council in an agendized formal meeting, whereas in the public forum, it's informal and informational. Things learned from the first forum are that the City can work on the logistics and improve on communications. Staff plans to take advantage of the information received and have a more meaningful conversation with the community. B. City Attorney None 21 DRAFT PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 23, 2020 C. City Clerk None D. Public Safety 1. Fire Department None 2. Police Department None XX. ADJOURNMENT With City Council concurrence, Mayor Nestande adjourned the meeting at 5:45 p.m. ATTEST: RACHELLE D. KLASSEN, CITY CLERK CITY OF PALM DESERT, CALIFORNIA GINA NESTANDE, MAYOR 22