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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