HomeMy WebLinkAboutAgenda Package - StudySession_Nov14_2024
PALM DESERT CITY COUNCIL
STUDY SESSION MEETING
AGENDA
Thursday, November 14, 2024
2:45 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.
This is a joint meeting of the Palm Desert City Council, Successor Agency to the Palm Desert
Redevelopment Agency, Palm Desert Housing Authority, and Palm Desert Board of Library Trustees.
Pursuant to Assembly Bill 2449, this meeting may be conducted as a hybrid meeting allowing public
access via teleconference or in person, and up to two Councilmembers may attend remotely.
WATCH THE MEETING LIVE: Watch the City Council meeting live at the City’s website:
https://palmdesert.zoom.us/ or on the City's YouTube Channel.
OPTIONS FOR PARTICIPATING IN THIS MEETING:
Send your comments by email to: CityClerk@palmdesert.gov.
Emails received prior to 10:00 a.m. on the day of the City Council meeting will be made part of the
record and distributed to the City Council. Emails will not be read aloud at the meeting.
Pages
1.CALL TO ORDER - STUDY SESSION
2.STUDY SESSION TOPICS
2.a OPTIONS TO ADDRESS RETENTION BASIN OWNED BY THE PALM
DESERT REGENCY ESTATES HOMEOWNERS’ ASSOCIATION
5
RECOMMENDATION:
Consideration of three options to address the deteriorating conditions of the
retention basin owned by the Palm Desert Regency Estates Homeowner
Association.
2.b STUDY SESSION: PUBLIC NOTICING FOR DEVELOPMENT
APPLICATIONS
27
RECOMMENDATION:
Provide feedback on policy amendments for Public Noticing for
development permits.
1.
Direct to staff to present an Ordinance Amendment for Public
Noticing Sections of the Zoning Ordinance in December 2024.
2.
2.c STUDY SESSION: BUSINESS LICENSING EVALUATION 41
RECOMMENDATION:
Provide feedback on the following considerations:1.
Entering a Professional Services Agreement with Avenu
Insights and Analytics (“Avenu”) for Business Licensing
Services.
a.
Establishing an annual fixed date of July 1st for Business
Licensing renewals.
b.
3.ADJOURNMENT
City Council Study Session
2
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, Michelle Nance, Deputy 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/ Michelle Nance
Deputy Clerk II
City Council Study Session
3
4
Page 1 of 4
CITY OF PALM DESERT
STAFF REPORT
MEETING DATE: November 14, 2024
PREPARED BY: Chris Escobedo, Assistant City Manager
Randy Chavez, Deputy Public Works Director
SUBJECT: OPTIONS TO ADDRESS RETENTION BASIN OWNED BY THE PALM
DESERT REGENCY ESTATES HOMEOWNERS’ ASSOCIATION
RECOMMENDATION:
Consideration of three options to address the deteriorating conditions of the retention basin
owned by the Palm Desert Regency Estates Homeowner Association.
BACKGROUND/ANALYSIS:
On August 20, 2023, Tropical Storm Hilary brought severe weather conditions to the Coachella
Valley, leading to historic flooding across Palm Desert, especially along Interstate 10. Since the
storm, the City of Palm Desert (City) has undertaken extensive cleanup efforts, including debris
removal, road repairs, and drainage system maintenance, to restore affected areas and enhance
future flood resilience. Additionally, the City created an Emergency Grant r elief program for
property owners to alleviate some of the costs associated with their personal property damages.
One of the areas still affected by Tropical Storm Hilary is a retention basin owned by the Palm
Desert Regency Estates Homeowners Association (Association). The basin remains filled with
water, debris, and vegetation, and is not functioning properly to facilitate drainage. While the
Association has not adequately maintained the basin over the years, the City shares some
responsibility by not enforcing proper cleanup and maintenance.
Development History
On December 13, 1990, Tract Map No. 25445 was recorded by the County of Riverside, setting
the foundation for the development of Regency Estates. This gated residential community spans
a total of 48 acres, featuring 92 single-family homes with a combination of one- and two-story
designs. The development included an existing 1.80-acre retention basin (Lot 97) for an adjacent
residential neighborhood, Regency Palms, and a new 3.06-acre basin (Lot 95).
On December 12, 1991, the City executed Annexation 28 (Resolution No. 91-138) that formally
incorporated Regency Estates into the City's jurisdiction, ensuring the development was subject
to municipal regulations and services. The Regency Estates completed construction in 1993,
with occupancy occurring thereafter.
Basin Responsibilities
Drainage from this development has been identified as a contributor to the Mid -Valley
Stormwater Project. The Association is responsible for all water management related to the
basin as a condition of approval. This includes the ongoing maintenance of the drainage systems
5
City of Palm Desert
Regency Estates Retention Basin
Page 2 of 4
to prevent flooding on the property and in surrounding areas. Additionally, to further clarify these
responsibilities, the City has requested additional documents from the Coachella Valley Water
District (CVWD) and the County of Riverside.
Current Conditions
As noted, the retention basin does not function properly to facilitate adequate drainage. To
restore the basin, is estimated to require a one-time cleanup cost of $600,000, with an additional
annual maintenance cost of $25,000. The lack of enforcement over the years has exacerbated
the basin's condition, leading to increased deferred maintenance needs. Additionally, the
Association has stated that it does not have sufficient reserve funds to cover the costs of
repairing the basin.
Options
Staff has identified three options for addressing the condition of the basin, considering the
substantial repair costs, ongoing maintenance needs, and historical issues with enforcement.
Option 1: Existing Emergency Grant Program
On March 28, 2024, the City Council approved an emergency grant program (Program) to assist
commercial property owners and homeowners’ associations along Interstate 10 with cleanup,
repair, and restoration efforts following the damage caused by Tropical Storm Hilary. Each
eligible applicant was able to receive up to $200,000, covering a maximum of 35% of costs. This
option would reopen the Program, enabling Regency Estates to apply for assistance. The
Program was funded with $1,500,000 and has encumbered approximately $284,000, while
leveraging $527,000 in private cleanup activities. The Program has an unencumbered balance
of approximately $1,216,000.
Option 2: Revised Emergency Grant Program
This option proposes increasing the grant coverage under the Program to 50 -75% of eligible
costs, up from the original 35% approved. Reopening the Program with these revised terms
would allow Regency Estates to apply for additional assistance, offering more substantial
support for their recovery efforts. If the Council decides to pursue this option, staff recommends
increasing the reimbursement amounts for the four property owners currently receiving grants
under the existing guidelines.
Option 3: Dedication with Ongoing Maintenance Responsibilities
This option proposes to enter into Dedication Agreement that outlines the transfer of property to
the City through a quitclaim deed, with the City taking on the responsibility for initial clean -up
costs. These costs can be covered by grant funds from the Southern California Association of
Governments (SCAG) to improve retention basins along Interstate 10. While this grant cannot
be used for acquisition, it can fund improvements.
Once the clean-up is complete, the City proposes to oversee the ongoing maintenance of the
area to ensure it remains in good condition. In turn, the Association will be required to
compensate the City for the maintenance expenses in perpetuity. Maintenance costs are
6
City of Palm Desert
Regency Estates Retention Basin
Page 3 of 4
estimated to be around $25,000 annually, which breaks down to an additional assessment of
approximately $22 per month for each h omeowner.
Benefit Assessment District
In two of the options provided above, there is a requirement for the HOA to fund a substantial
portion of the capital costs. Regency has indicated there is an insufficient reserve balance to
cover their costs associated with the basin deferred maintenance. In an effort to resolve the
issue and assist Regency homeowners, staff suggests implementing a Benefit Assessment
District (BAD) to fund the needed improvements and maintenance. A BAD is a financing tool
used by local governments to fund public services and improvements for a specific geographical
area.
BAD’s are similar to homeowners' associations in that they fund neighborhood-specific facilities
and work through an annual assessment collected by the County Assessor with collection of
property tax. A benefit assessment is an annual charge that property owners pay for a public
improvement or service that provides a special benefit to their property. The amount of the
assessment is directly related to the amount of the benefit their property receives. Benefit
assessments can finance public projects like flood control, street improvement, streetlights, and
public landscaping.
The BAD requires formation approval by the homeowners and City Council. The steps of
formation include:
1) Petition by Property Owners and Resolution to Form the District;
2) An Engineer’s Report must be completed to determine special benefit assessment;
3) A Public Meeting must be held to present Engineer’s Report and receive comments;
4) Ballots are sent to property owners;
5) A Public Hearing is held to count ballots and approve plan
After adoption of the assessment plan, the City will impose the benefit assessment. The City
may then begin work on the improvements and services immediately. Assessments appear on
a property owner’s annual property tax bill. A cost-of living increase may be included with the
assessment or as new improvements and services become available.
Legal Review:
This report has been reviewed by the City Attorney’s Office.
FINANCIAL IMPACT:
The financial impact will vary based on the chosen option. Currently, the Emergency Grant
Program has $1,216,000 in unencumbered funds available in Account No. 4004159-4219100.
Additionally, the City previously received an $8 million grant from the SCAG to improve retention
basins along Interstate 10. Staff also recommends that whichever decision is selected, a similar
option be extended to Regency Palms to ensure effective maintenance of their basin.
Account / Options Funds One-Time
Cost
HOA Cost City Cost Account
Balance
7
City of Palm Desert
Regency Estates Retention Basin
Page 4 of 4
SCAG Grant $8,000,000
Emergency Grant Program (4004159-4219100) $1,216,000
Option 1: Existing Program $600,000 $400,000 $200,000 $616,000
Option 2: Revised Grant Program (up to 75%) $600,000 $150,000 $450,000 $616,000
* Option 3: Dedication with Maintenance $600,000 $ 0 ** $600,000 $1,216,000
* HOA responsible for ongoing maintenance costs
** Cleanup activities to be funded by SCAG grant so program funds will not be impacted
ATTACHMENTS:
1. PowerPoint Presentation
2. Emergency Grant Program Guidelines
8
Tamarisk Row Retention Basin Options: Palm
Desert Regency Estates
N O V E M B E R 1 4 , 2 0 2 4
S T U D Y S E S S I O N
19
Agenda
•Overview
•Basin Review
•Development History
•Responsibilities
•Current Conditions
•Options
210
Overview
3
Event: Tropical Storm Hilary (August 20, 2023) caused severe
flooding, especially along Interstate 10.
City's Response (Public):Completed citywide cleanup efforts,
including debris removal, road repairs & drainage maintenance.
Ongoing Issue (Private): Retention basin at Regency Estates
remains filled with water, debris & vegetation.
11
Basin Review
Basins visually inspected:
1.Good condition with some debris
2.Good condition
3.Excellent condition (Freedom Park)
4.Excellent condition (Mid-Valley Channel)
5.Poor condition (Regency Estates)
6.Poor condition (Regency Palms)
4
1
2
3
4
5
6
12
5
Development History:
Regency Estates
Timeline
•1990: Recorded Tract Map
•1991: Annexed into City
•1993: Completed Construction
Neighborhood Overview
•Size: 48 acres w/92 single-family
homes
•Basin: 3.06 acres
Responsibility
•Ownership: Palm Desert Regency
Estates Homeowners Association
•Basin: Contributes to Mid-Valley
Stormwater Project (CVWD)
13
6
3.06 Acres
Development History:
Regency Estates
14
Responsibilities: Flood Mitigation
•Coachella Valley Water District:
•Flood Control Conditions (11-29-89): Drainage from this area is a contributory to the Mid-Valley Stormwater Project...
Mitigation measures shall be incorporated into the development to prevent flooding of the site or downstream properties.
These measures may include onsite retention of water from rare & unusual storms, dedications of right-of-way for
regional flood control facilities, & payment of drainage fees or other participation in the financing of regional flood control
facilities.
•Office of Road Commission & County Surveyor:
•Letter of Conditions (02-15-90): The land divider shall protect downstream properties from damages caused by alteration
or diversion of flow. Protection shall be provided by constructing adequate drainage facilities including enlarging existing
facilities and/or by securing a drainage easement.
•Letter of Conditions (02-15-90): The land divider shall accept & properly dispose of all offsite drainage flowing onto or
through the site… Should the quantities exceed the street capacity or the use of streets be prohibited for drainage
purposes, the subdivider shall provide adequate drainage facilities as approved by the Road Department.
•Riverside County Planning Department
•Environmental Assessment (02-01-90): Site is subject to flooding according to Mid-Valley Study completed by CVWD.
Required (CVWD) compliance with letters dated 11-29-89 & 1-22-90.
•Conditions of Approval (03-20-90): The land divider shall comply with the flood control recommendations outlined by the
Coachella Valley Water District' s letters dated letters dated 11-29-89 & 1-22-90.715
Responsibilities: Maintenance
•Riverside County Planning Department
•Conditions of Approval (03-20-90): The property owners' association established herein shall manage and continuously
maintain the ' common area' , more particularly described on Tract Map 25445.
•Conditions of Approval (03-20-90): The property owners ' association shall have the right to assess the owners of each
individual lot or unit for the reasonable cost of maintaining the ' common area' and shall have the right to lien the property
of any such owner who defaults in the payment of a maintenance assessment.
•Tract Map 25445
•Tract 25445 (11-26-90): … Lots 93, 95, & 96, indicated as Common Lots…
816
Current Conditions
•Functionality Issue: Basin does not properly facilitate drainage.
•Restoration Costs: Estimated one-time cleanup cost of $600,000 &
annual maintenance cost of $25,000.
•Financial Concerns: Regency Estates has insufficient reserves for
repairs.
•Ongoing Maintenance Issues: Lack of enforcement over the years
has led to increased maintenance needs.
917
10
18
Options
1119
Option 1: Existing Emergency Grant Program
•Approved: March 28, 2024.
•Budget: $1.5 million
•Grant Details: Up to $200,000 per property, covering a maximum of 35% of costs.
•Current Status:
•$284,000 committed (4 properties).
•$1,216,000 program balance.
•Option: Reopen the Program to enable Regency Estates to apply for assistance.
•City Contribution: $200,000
•Regency Estates Contribution: $400,000
1220
Option 2: Revised Emergency Grant Program
•Program Revisions: Expand coverage to 50-75%, with the maximum cap increased to
$450,000.
•Other Grantees: If pursuing, consider raising the reimbursements for existing grants.
13
50%75%
City Contribution $300,000 $450,000
Regency Estates Contribution $300,000 $150,000
50%75%
Regency Estates $300,000 $450,000
Other Grantees $405,000 $608,000
Grant Program Total:$705,000 $1,058,000
21
Option 3: Dedication with Maintenance Responsibilities
•Dedication Agreement:
•Transfer of property to the City (via quitclaim deed)
•City responsible for clean-up & improvement costs
•SCAG grant to cover costs
•City responsible to manage ongoing maintenance
•HOA to compensate City for maintenance costs
•Maintenance Costs:
•Estimated at $25,000 annually
•$22 per month per homeowner
•HOA responsible for costs in perpetuity
1422
Discussion
23
24
City of Palm Desert / Public Works Department
Emergency Grant Program – Tropical Storm Hilary
Program Guidelines
73-510 Fred Waring Drive • Palm Desert • California • 92260 • (760) 776-6450
Overview
In response to the aftermath of Tropical Storm Hilary, which inflicted significant damage for
commercial property owners and homeowners associations (Properties) in north Palm Desert
along the Interstate 10 corridor, the City of Palm Desert (City) has created an Emergency Grant
Program (Program) to offer financial relief to affected commercial properties that may still have
cleanup efforts.
The grants, with a maximum allocation of up to $200,000 each, aim to facilitate up to 35% of the
external cleanup, repair, and restoration efforts for Properties. Note the eligible Properties shall be
located within 250 feet south of Interstate 10, between Miriam Way and Washington Street.
If you have any questions, please call (760) 776-6450 or email publicworks@palmdesert.gov.
Eligibility & Criteria
• Funds shall be used for external cleanup, repair, and restoration efforts of Properties affected
by Tropical Storm Hilary, and ensure proper functioning of drainage systems in the affected
area.
• Properties shall be located in Palm Desert and within 250 feet south of Interstate 10, between
Miriam Way and Washington Street.
• Eligibility extends to homeowners associations and commercial property owners exclusively.
• Request for completed work is ineligible as the Program is not retroactive.
• Be in good standing with City and the Secretary of State.
• Current City Business License at the time of application.
• Only one-time grant per selected Property.
• No employees, elected officials, agents, nor businesses that have an interest held by any of the
aforementioned, nor those businesses currently under contract with the City of Palm Desert,
may qualify.
Approval & Submittal Process
• Application to be accepted between April 8, 2024 (8:00 a.m.) and May 6, 2024 (5:00 p.m.).
• Following the application period, a Committee will review applications based upon need and
additional criteria, and make recommendations to the City Manager or designee for approval.
• Application available at www.palmdesert.gov/connect/hurricane-hilary.
25
Emergency Grant Program Guidelines
2 | P a g e
• A current business license, copy of most recent taxes, a W-9 and supporting documentation if
established as a corporation (i.e. articles of incorporation or statement of information) must be
provided at time of application; applications that do not provide all of the information requested
will be rejected.
• Approval of funding is at the sole discretion of the City of Palm Desert.
Funding
• Total available funds for Program: $1,500,000.
• No minimum amount per grant; maximum amount not-to-exceed $200,000 per grant.
• Grant funds shall cover up to 35% of the external cleanup, repair, and restoration costs.
• Must submit a formal cleanup plan outlining the scope of work prior to commencing work .
• Disbursement of grant funds will be subject to strict monitoring and auditing procedures.
• Funding may be dispersed in stages as work progresses (25%, 50%, 75% and 100%) on a
reimbursement basis.
• Must provide support documentation sufficient for the City to receive reimbursement.
Notice & Disclaimer
• Use of grant funding is subject to State prevailing wage requirements.
• The City makes no representations as to the tax implications of the loan program.
• The Properties under the Program will receive an IRS Form 1099, if applicable, reporting the
amount of payments as taxable income for federal and state income tax .
• The Properties must provide a completed IRS Form W-9 showing the business social security
number or federal taxpayer identification number before the loan payments can be made .
• The City is unable to provide legal or tax advice to businesses and encourages you to seek
appropriate professional advice on the federal and state tax implications of any funds received
from the City under this program.
• Applications are subject to the Public Records Act.
• Incomplete applications will be rejected and will not qualify for funding.
• The Properties shall indemnify the City of all damages related to Tropical Storm Hilary.
26
Page 1 of 2
CITY OF PALM DESERT
STAFF REPORT
MEETING DATE: November 14, 2024
PREPARED BY: Nick Melloni, AICP, Principal Planner
SUBJECT: STUDY SESSION: PUBLIC NOTICING FOR DEVELOPMENT
APPLICATIONS
RECOMMENDATION:
1. Provide feedback on policy amendments for Public Noticing for development permits .
2. Direct to staff to present an Ordinance Amendment for Public Noticing Sections of the Zoning
Ordinance in December 2024.
BACKGROUND/ANALYSIS:
At the October 10, 2024, City Council meeting, Mayor Pro Tem Harnik requested City staff
research options to increase the minimum public notification requirements for development
projects. Councilmember Nestande voiced support of the request.
Proposed updates for public notification requirements for projects which affect zoning, general
plan, or propose development include:
1. Increased Radius to 500’- Increase minimum notification radius requirements for public
notice for development projects from 300’ to 500’ for projects less than 5 acres. Existing
notification radii of 1,000’ and 4,000’ for developments of 5 -acres or greater, and hillside
development applications, respectively, will be preserved.
2. Homeowner’s Association Notification - Require mailed notices be provided to all
homeowner’s associations within a project notification radius, in addition to property
owners.
3. Pre-Application Neighborhood Meeting - Require a mandatory neighborhood meeting
prior to the submittal of an application for certain development entitlements including
projects greater than 5-acres, or which propose structures that exceed a height of 24’-0”
above existing grade of a site. This meeting will occur between a project applicant and
surrounding neighbors. The applicant shall present an overview of the project to
surrounding interested property owners and receive comments and feedback. The
applicant will be required to provide a list of all input provided by neighbors, and how and
why it was or was not incorporated into the application for project design.
4. On-site Notice Posting - Require for sign postings for public hearings on project s ites
for all development applications.
5. Design Review Notice - Require public notice for Design Review cases by the
Architectural Review Commission, which includes landscaping plans.
City staff recommends that the City Council provide input on the proposed policy updates and
direct staff to prepare an ordinance amendment to be brought forward later this year.
27
City of Palm Desert
Public Noticing Study Session
Page 2 of 2
These changes will affect Title 25 of the Palm Desert Municipal Code (PDMC), also known as
the Zoning Ordinance, and will require consideration by the Planning Commission.
Increases in notification radius will also require consideration of amendments to the
Development Services Fee Schedule Resolution to address cost of postage for development
applications.
Legal Review:
This report has been reviewed by the City Attorney’s Office.
ATTACHMENTS:
1. Study Session PowerPoint
28
Study Session: Public
Noticing Requirements
PALM DESERT CITY COUNCIL
NOVEMBER 14, 2024
11/14/2024 CITY COUNCIL STUDY SESSION 1
29
Overview
On October 10th, Mayor Pro-Term Harnik requested staff research options to
increase public notification radius for projects. Council -member Nestande also
voiced support for this.
Intent of the study session is to:
1.Provide the City Council with overview of existing state and local
requirements for public notice
2.Present 5 proposed policy updates and additional considerations
3.Receive input and feedback from Council on these proposed amendments
11/14/2024 CITY COUNCIL STUDY SESSION 2
30
General and State Law Notice
Requirements
When deciding upon a permit,variance or subdivision,a City must ensure that the
property owner and affected citizens receive adequate notice of all hearings.
California Government Code (GC)Sets minimum standards for contents and
procedures (e.g.method,timing,etc .)
GC 65091 establishes requirements that:
Written notice be mailed to all owners of real property within 300 feet of the
property
10 days prior to the hearing
Allows for Cities to expand on requirements:
“In addition to the notice required by this section,a local agency may give
notice of the hearing in any other manner it deems necessary or desirable.”
11/14/2024 CITY COUNCIL STUDY SESSION 3
31
Current City Notice Requirements
Palm Desert Municipal Code Section 25.60.060 –Public Hearing and Notice
Complies with state law minimums:
Written notice be mailed to all owners of real property within 300 feet of the
property (less than 5 -acres)
10 days prior to the hearing
More expansive noticing in certain cases:
Projects 5-acres or greater: 1,000-foot noticing radius + Community Engagement
Meeting (PDMC 25.60.160)
Hillside Development Projects : 4,000 -foot noticing requirement + Notice to all
Homeowners Associations (HOAs) south of Haystack Road (PDMC 25.78.020(C))
11/14/2024 CITY COUNCIL STUDY SESSION 4
32
Notice Requirements -Other Local Agencies
11/14/2024 CITY COUNCIL STUDY SESSION 5
Cities most commonly notify at minimum 300’ radius
as required by State Law.
Palm Desert meets minimum state law
Many Cities notify at a radius of 500’
On-site sign postings
Neighborhood meetings
Local Agency Notification Radius Other Requirements?
Coachella Valley
Desert Hot Springs 300'No
Palm Springs 500'
Neighborhood Meeting
On-site posting
Cathedral City 300'No
Rancho Mirage 500'No
Palm Desert 300'
Expanded Notification
Neighborhood meeting
Indian Wells 300'
Notice to tenants, property
managers, HOAs
La Quinta 500'No
Indio 500'On-site posting
Coachella 500'No
County of Riverside 300'On-site posting
Other Cities
Irvine 500'On -site posting
Temecula 600'On -site posting
Chino Hills 300'No
Ontario 300'On-site posting
Newport Beach 300'On-site posting
33
Policy #1 –Increased Radius to 500’
Amend PDMC 25.60.060 -Increase the standard minimum notification radius to
500’
11/14/2024 CITY COUNCIL STUDY SESSION 6
Example –300’ Radius = 32 parcels Example –500’ Radius = 78 parcels
34
Policy # 2 –Homeowner’s Association
Notification
Notices are currently only sent to property owners of record per the assessment.
City staff is conducting outreach with Homeowner’s Associations and establishing contacts.
Amend PDMC 25.60.060 to include homeowner’s associations as a part of notification, in
addition to property owners.
11/14/2024 CITY COUNCIL STUDY SESSION 7
Below: Screen Capture of Draft HOA Communities Map (Internal)
35
Policy #3 –Pre-Application Community
Meeting
Amend PDMC 25.60.160, and relevant sections, to establish requirement for permit applications
going to Planning Commission and/or City Council to submit a pre-application submittal, prior to
formal land use application.
Intended to resolve concerns early in process and prior to public hearings (5 hearing rule)
Require applicants conduct a community outreach meeting to engage with residents, property
owners, and interested community members as part of pre-application submittal.
Outline minimum guidelines for community engagement meetings.
11/14/2024 CITY COUNCIL STUDY SESSION 8
36
Policy #4 –Onsite Sign Posting
Amend PDMC 25.60.060 to include requirement for a sign to be posted on the site, providing notice of
upcoming public hearing.
Require one sign per street frontage, with discretion for Director to require additional signs if necessary
Require affidavit for proof of posting
11/14/2024 CITY COUNCIL STUDY SESSION 9
Below: Examples of on-site signage postings and example affidavit.
37
Policy #5 –Design Review Notice
Zoning Ordinance is not explicit in requiring notice for Design Review Cases
subject to action by the Architectural Review Commission.
Amend 25.60.060 to explicitly require Public Notice for Design Review cases
associated with an entitlement that will require Planning Commission, and/or
City Council action.
This would also include HOA’s of new residential communities when changes are
requested after the initial approval.
11/14/2024 CITY COUNCIL STUDY SESSION 10
38
Other Considerations
Consider adopting resolution for fees associated with notification included with
applications.
Increased notification requirements results in increases on:
Staff hours for projects (staff prepares notices, and prepares notice envelopes for mailing)
Cost of postage (USPS Sets fees –as of 10/24 First Class Postage is $0.73 for domestic and
$1.65 for international).
Sign posting for certain projects
Enter into contract with qualified local sign vendors for on -site postings,
establish standardized specifications and requirements for affidavit, and ensure
consistent coordination
Amend development applications with updated, clear instructions for noticing
11/14/2024 CITY COUNCIL STUDY SESSION 11
39
Conclusion
Questions?
Provide input and feedback on policies:
1.Increase radius to 500’
2.Notify HOAs within radius of projects
3.Pre-application neighborhood meeting
4.Require on-site sign postings of hearing notices
5.Require notice for ARC design review cases going to Planning Commission,
or amendments thereto
11/14/2024 CITY COUNCIL STUDY SESSION 12
40
Page 1 of 5
CITY OF PALM DESERT
STAFF REPORT
MEETING DATE: November 14, 2024
PREPARED BY: Richard D. Cannone, AICP, Development Services Director
SUBJECT: STUDY SESSION: BUSINESS LICENSING EVALUATION
RECOMMENDATION:
1. Provide feedback on the following considerations:
a. Entering a Professional Services Agreement with Avenu Insights and Analytics
(“Avenu”) for Business Licensing Services.
b. Establishing an annual fixed date of July 1st for Business Licensing renewals.
BACKGROUND/ANALYSIS:
In 2020, the City Manager, through the authorities granted by City Council for emergency
provisions during the Pandemic, authorized Contract No. C41450 with Hinderliter De Llamas
and Associates (HdL) to outsource the City’s business license functions in response to the
backlog of licensing duties and local business needs for PPE loans, which required active
business licenses. HdL took over all business licensing func tions including new applications,
renewals, and the pursuit of delinquent accounts. Staff is currently in the final year of the agreed
upon agreement term.
Starting in August 2023, Development Services staff began a comprehensive evaluation of the
business licensing services provided by HdL. This evaluation revealed several significant
challenges that have impacted the effectiveness of the program. A primary issue identified was
the limited access City staff had to the HdL software system, which has created difficulties in
assisting customers in a timely and efficient manner. As a result, staff have been dependent on
HdL for even basic tasks, such as providing printed copies of business licenses.
Under HdL’s service model, City staff have minimal capacity to fully address customers' business
license needs. For example, when a customer visits the Development Services Center to request
a printed copy of their business license, staff are required to direct the customer to log into their
personal portal to access and print the document themselves or send an email request to HdL
asking them to provide a link for the customer to print it. This lack of customer service has caused
frustration for both staff and customers, who expect a more responsive customer service
experience. A summary of the key findings include:
1. Limited Access to HdL Software
o One of the primary concerns raised by staff was the lack of access to the HdL software
system, which has restricted the staff’s ability to assist customers effectively.
o Customer frustration has increased because of this limited access. Customers expect
to be able to receive the necessary services directly from City s taff, but instead they
are being redirected to the online portal, which has caused inefficiencies and
dissatisfaction.
41
City of Palm Desert
Business Licensing Evaluation
Page 2 of 5
2. Inconsistencies and Complaints from Local Businesses
o Over the past six months, staff from both Development Services and the Finance
Department have held numerous meetings and calls with HdL to address the lack of
access and continued complaints from local businesses. These complaints primarily
centered on communication issues, inconsistent service delivery, and confusion over
how the City’s business license program was being administered. Despite these
discussions, the issues persisted, and local businesses remained dissatisfied with the
service.
3. Compliance Program Suspension
o In May 2024, the City launched the compliance component of the con tract with HdL
to address unlicensed and delinquent businesses in the City. This compliance
program aimed to improve enforcement and increase license renewal compliance.
o The compliance program officially launched in July 2024 but was suspended in August
2024 after it became clear that there were significant issues with how the program
was being executed by HdL. Among the reasons for suspension were:
Inconsistencies in the implementation of the program.
Ongoing complaints from business owners regarding how they were being
handled.
Misinterpretations of the City’s business license ordinance that had not been
properly communicated to City staff.
4. Lack of Clear Communication and Policy Alignment
o Another major issue that became evident was the misalignment betwee n HdL’s
interpretation of the City’s business license ordinance and the City’s actual policies.
This lack of clear communication led to confusion among local businesses, with some
businesses being incorrectly informed about their license status, fees, and renewal
requirements.
To date, we have identified over 50 unresolved concerns related to intake processes,
documentation, client services, the online portal, fee assessments, and fee collection. The
service model provided by HdL has significantly limited the ability of City staff to assist customers
effectively. Given these persistent challenges, we believe it is time to pursue a new vendor that
can better meet our needs.
Considerations:
1. Enter into a contract with Avenu Insights and Analytics (“Avenu”) for Business
Licensing.
In 2021, Avenu was ranked second in a competitive selection process for managing the City’s
business license operations. The contract was ultimately awarded to HdL, in part due to their
ability to supplement staff in the field for follow-up on delinquent or unlicensed businesses.
However, as noted earlier, the compliance services offered by HdL were suspended in
August 2024 due to emerging issues, including inconsistencies in service delivery, limited
staff access to critical data, and complaints from business owners regarding the handling of
renewals and customer service. Given these challenges and the City’s positive long-term
42
City of Palm Desert
Business Licensing Evaluation
Page 3 of 5
history with Avenu, staff is recommending that the City amend the current professional
service contract with Avenu to include the management of business license operations.
The City has had a successful and long-standing relationship with Avenu for sales tax
consulting services. Over the years, the City has been pleased with Avenu’s responsiveness,
customer service, and their ability to provide accurate and relevant data that supports
decision-making and program management. Additionally, given the City’s previous
experience with Avenu, transitioning to their business license management services could
be done more smoothly and quickly than with a completely new vendor. Avenu’s familiarity
with the City’s operational needs, data systems, and customer service expectations would
facilitate smooth integration and faster implementation of the business license program. Staff
has reviewed the 50 unresolved concerns with Avenu to address the current gaps in business
license operations, and believe those gaps will be closed upon implementation, including:
Business License Management: Avenu would take on the management of business
licenses within the City, including:
o Issuance and renewal of business licenses.
o Compliance monitoring and enforcement of the City’s business license ordinance.
o Tracking and follow-up on delinquent or unlicensed businesses.
System Access: Avenu would grant full access to staff to ensure seamless data sharing
and real-time access for City staff. This would include taking payments, assisting in
processing applications at the lobby, and the ability to print a license for a customer.
Customer Service: Avenu would provide dedicated customer support for business
owners, assisting them with the application process, renewal procedures, and addressing
any issues related to their business license.
Reporting and Data Analytics: Avenu would provide the City with comprehensive
reporting tools and data analytics to improve decision-making, streamline enforcement
efforts, and ensure transparency in the business license process.
2. Establish an annual fixed date of July 1st for Business Licensing renewals.
The City currently has approximately 5,500 active business licenses, each with its own
unique renewal date. This lack of standardization has contributed to several operational
challenges, including inefficiencies in renewals, follow-up, and enforcement.
To address this, Development Services proposes a policy change to establish a fixed renewal
date of July 1st each year for all business licenses. This change is designed to standardize
operations, improve efficiency, and enhance service delivery, benefiting both City staff and
business owners. Below are the key reasons for this proposed change:
1. Streamlined Operations and Allocation of Staff Time
o A fixed renewal date will allow for better alignment of internal processes, making it
easier to plan and allocate resources throughout the year.
43
City of Palm Desert
Business Licensing Evaluation
Page 4 of 5
o It will reduce the need for constant adjustments to renewal schedules, which can
cause confusion and administrative burdens.
o Staff will be able to prepare more effectively for the peak period leading up to July 1st
and ensure that all renewal activities are handled within a set timeframe.
2. Improved Customer Experience
o It ensures that all businesses renew on the same schedule, preventing discrepancies
in expiration dates and minimizing confusion among business owners.
o A standard renewal date makes it easier for the City to communicate with businesses.
Renewal notices will be sent on a fixed schedule, ensuring all businesses receive
timely notifications well in advance of their renewal deadline. This improved
communication reduces the number of customer inquiries and ensures that
businesses are better informed about upcoming deadlines.
3. Easier Enforcement and Compliance
o A set renewal date will make it easier for Development Services to track non -
compliance and focus enforcement efforts on one annual cycle. It will help avoid gaps
in where businesses might be overlooked or unknowingly operate without a valid
license.
o Enforcement actions can be planned and executed more effectively with a fixed
renewal date, ensuring all businesses renew their licenses in a timely manner.
4. Efficient Fee Assessment and Collection
o With all renewals occurring on the same date, the fee collection process will be more
predictable and streamlined.
o A standardized renewal period allows for better tracking of revenues, more accurate
budgeting, and improved financial reporting for the City.
o It will eliminate the complexity of managing multiple renewal dates for different
businesses, making the tax and fee collection process more efficient.
5. Improved Data Management and Reporting
o A fixed renewal date will allow for easier tracking and reporting of renewal activity. The
City can use data to monitor compliance rates, identify trends, and make data -driven
decisions to improve the program.
o It will also support better coordination with other City departments and services that
rely on business license data, such as planning, code compliance, and economic
development.
o Improved budget estimations for business licensing and the El Paseo parking and
business improvement area.
6. Alignment with Best Practices
o Many cities and municipalities have successfully implemented fixed renewal dates to
improve the efficiency of their business license programs. Establishing a fixed date for
renewals would align the City with best practices in business license management and
help standardize operations across various work groups within the city that interact
with business license data (e.g., code enforcement, planning, finance, economic
development)
If the City Council is supportive of the change, Development Services will develop a detailed
transition plan to move all businesses to the July 1st renewal date. This plan will involve:
o Communicating the new renewal date to all business owners well in advance.
44
City of Palm Desert
Business Licensing Evaluation
Page 5 of 5
o Providing clear instructions for businesses regarding the transition and what they need to
do to comply.
o For businesses that have already paid or are due to renew outside of the July 1st window,
a system for prorating fees or adjusting renewal periods will be developed that will provide
a credit on the July 1st renewal invoice. This will ensure fairness and minimize disruption
for businesses during the transition.
Legal Review:
This report has been reviewed by the City Attorney’s Office.
FINANCIAL IMPACT:
In the previous fiscal year, the cost for the HdL contract was $150,972, with a budget allocation of
$180,000 for the current fiscal year. For comparison, the projected cost for Avenu is estimated at
approximately $114,000. This amount includes a one -time implementation fee of $15,000, with the
anticipated annual fee for subsequent years being around $99,000 (subject to adjustments based
on the Consumer Price Index, or CPI). Additionally, Avenu's fees will be $18.00 per renewal or new
business transaction.
Like HdL, Avenu will charge a 35% rate for Discovery Services. This rate is consistent with industry
standards for consulting services related to business license management. A more detailed
estimate of these charges will be provided should the City Council agree with the staff’s
recommendation.
ATTACHMENT:
1. Presentation
45