HomeMy WebLinkAbout2017-08-24MINUTES
REGULAR PALM DESERT CITY COUNCIL MEETING
THURSDAY, AUGUST 24, 2017
CIVIC CENTER COUNCIL CHAMBER
73510 FRED WARING DRIVE, PALM DESERT, CA 92260
I. CALL TO ORDER - 3:00 P.M.
Mayor Harnik convened the meeting at 3:04 p.m.
II. ROLL CALL
Present:
Mayor Pro Tem Sabby Jonathan
Councilmember Kathleen Kelly
Councilmember Gina Nestande
Councilmember Susan Marie Weber
Mayor Jan C. Harnik
Also Present:
Lauri Aylaian, City Manager
Robert W. Hargreaves, City Attorney
Rachelle D. Klassen, City Clerk
Lori Carney, Director of Administrative Services
Russell Grance, Director of Building & Safety
Ryan Stendell, Director of Community Development
Martin Alvarez, Director of Economic Development
Mark Greenwood, Director of Public Works
Bo Chen, City Engineer
Stephen Y. Aryan, Risk Manager
Veronica Tapia, Senior Management Analyst
Jason Huskey, Chief, Palm Desert Police/Riverside Co. Sheriff's Department
Lt. Coby Webb, Asst. Chief, Palm Desert Police/Riverside Co. Sheriff's Dept.
Andy Martinez, Admin. Sgt., Palm Desert Police/Riverside Co. Sheriffs Dept
Grace L. Rocha, Deputy City Clerk
11I. ORAL COMMUNICATIONS - A (CLOSED SESSION ITEMS)
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REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 24, 2017
IV. ADJOURN TO CLOSED SESSION
Request for Closed Session:
A. Conference with Real Property Negotiator pursuant to Government Code
Section 54956.8:
1) Property: 74016 San Marino Circle (APN 625-064-007), Palm Desert
Negotiating Parties:
Agency: Lauri Aylaian/Mark Greenwood/City of Palm Desert
Property Owner: City of Palm Desert
Under Negotiation: x Price x Terms of Payment
2) Property: 73785 El Paseo (APN 627-271-015), Palm Desert
(SEC San Luis Rey/EI Paseo)
Negotiating Parties:
Agency: Lauri Aylaian/Martin Alvarez/City of Palm Desert
Property Owner: MUFG Union Bank
Under Negotiation: x Price x Terms of Payment
B. Conference with Legal Counsel regarding significant exposure to litigation
pursuant to Government Code Section 54956.9(d)(2):
Number of potential cases: 2
C. Public Employee Performance Evaluation pursuant to Government Code
Section 54957:
Title of Position: City Attorney
With City Council concurrence, Mayor Harnik adjourned the meeting to Closed
Session of the City Council at 3:05 p.m. She reconvened the meeting at 4:06 p.m.
V. RECONVENE REGULAR MEETING - 4:00 P.M.
A. REPORT ON ACTION FROM CLOSED SESSION.
Mr. Hargreaves reported that direction was given, but no reportable action
was taken.
VI. PLEDGE OF ALLEGIANCE TO THE FLAG OF
THE UNITED STATES OF AMERICA - Mayor Jan C. Harnik
VII. INVOCATION - Mayor Pro Tem Sabby Jonathan
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VIII. AWARDS AND PRESENTATIONS
A. PRESENTATION OF PROCLAMATION DECLARING SEPTEMBER 2017
AS "EMPLOYMENT MONTH" IN THE CITY OF PALM DESERT.
On behalf of the entire City Council, Mayor Harnik presented the
proclamation to Mr. Clark Staehle and Mr. Omar Becerra from the State of
California Employment Development Department.
Mr. Staehle graciously accepted the recognition and noted they will be
holding their 22' Annual Valley -wide Employment Expo on September 14
from 9:00 a.m. to 1:00 p.m. at Fantasy Springs. They encouraged anyone
who was looking for employment to attend. He thanked the Mayor and City
Council for their continued support.
IX. ORAL COMMUNICATIONS - B
MS. NOLA COLE, Windflower Court, Palm Desert, stated her home is
located near the new Sheriffs station. She said they are having a problem
with the vacant properties that are adjacent and to the rear of her home,
which are owned by the City. She has contacted the City over the years
many times, because the backyard of her property has a six-foot wall and
there are two -feet of sand above that wall. She added that she and her
husband can no longer clean up ten gallons of sand from their backyard
every time the wind blows. She's been told by City staff that it's a natural
habitat, which she disagrees, because they are the original owners of that
home and watched their home being built, and now the sand is higher than
the six-foot wall that was put there by the builder. She said the City has
come out to remove sand three -feet away from the wall, but it doesn't help
the problem. She understands they live in the desert and it's windy out
there, however, for them to have to clean up ten gallons of sand every time
the wind blows. Additionally, their pool and pool equipment is being
destroyed. She brought photographs for the Council to review to show how
the sand is higher than the wall. She went on to say their beautiful 3,000
square -foot home has been on the market now for three years, and the
negative feedback they have received from three different Realtors is the
same, it's the sand that is above the wall. She said unless the City can come
up with an idea to resolve this problem, or buy her home so that she can take
her feeble husband and move to Arizona to be closer to her only child that
will help her care for him, she wouldn't know what to do. She asked the City
Council to help her resolve the situation.
Mayor Harnik acknowledged receiving the photographs, stating she will make
sure the appropriate staff person receives them.
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MR. TERRY COLLIER, Ajo Lane, Palm Desert, stated that although the
water shortage has recently been declared over, residents are still
encouraged to conserve. However, there seems to be a lot of construction
at the north end of town, and people are wondering how that development
got approved, because construction projects consume a lot of water. He
said whenever there is a shortage and restrictions are necessary, it's the
individual homeowner that gets hits the hardest, whereas developers and
contractors get by with practically nothing in the way of restrictions. He said
the Fire Department is the only entity that should be exempt from any
restrictions, but when the next shortage comes, most would agree tougher
restrictions should be placed on everyone, including businesses, hotels,
restaurants, and special emphasis on contractors and developers.
X. MAYOR AND COUNCILMEMBER REPORTS & REMARKS TO THE COMMUNITY
A. Mayor Pro Tem Sabbv Jonathan Committee Reports and General
Comments.
Mayor Pro Tem Jonathan shared with the public an email received from a
resident, praising the Police Department. The letter included two separate
incidents where Officer Nowecker (sp?) and Officer Austin provided
assistance to this resident. The letter stated these Officers were kind, helpful,
and professional, and they couldn't say enough good things about the Police
Department.
B. Councilmember Kathleen Kelly Committee Reports and General Comments.
None
C. Councilmember Gina Nestande Committee Reports and General Comments.
Councilmember Nestande stated she looked forward to meeting with the City
Manager to discuss affordable housing, because it was an important issue
that Palm Desert faces.
D. Councilmember Susan Marie Weber Meeting Summaries Report for the
Period of July 3 - August 13, 2017.
With City Council concurrence, the Meeting Summaries Report was received
and filed.
1. Atria Senior Livina - Councilmember Weber shared she had the
opportunity to participate in the "Chefs Challenge" over at the Atria
Senior Living. It was interesting to meet the two chefs who were
trying to find out how they could best serve older people who can't
taste or smell, which seems to be an issue.
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2. John J. Benoit Detention Center - Topping -out Ceremony -
Councilmember Weber reported she attended the topping -out
ceremony of the new facility on July 31, stating she had an emotional
experience in listening to all the readings about all the hard work John
Benoit did on this project, adding that it hadn't been a year since his
passing.
E. Mayor Jan C. Harnik Committee Reports and General Comments.
1. Jefferson Street Interchange Ribbon Cutting - Mayor Harnik stated
she and other Palm Desert Councilmembers attended the ribbon
cutting, which was a big deal, sharing it was never easy to navigate
that street, so the $80 million spent on the project was well spent.
2. Welcomed Bicyclist - Mayor Harnik said she had the opportunity to
welcome bicyclists that came to Palm Desert ranging from ages 15 to
18. They started in South Carolina and dipped the wheels of their
bicycles into the Atlantic Ocean and proceeded to ride their bikes
across the country, stopping in Palm Desert overnight, and went on
to San Diego where they again dipped their bicycle tires into the
Pacific Ocean. She said it was great to welcome these youths to
Palm Desert.
3. Tour of Hotel Paseo - Mayor Harnik took a tour of the hotel, which is
under construction, stating it will be exciting to see the project
completed.
4. Las Casuelas Cafe - Mayor Harnik noted the community worked hard
on the Strategic Plan and General Plan Update, focusing on having
Highway 111 come together to have a better presentation. Therefore,
she was happy to report that Palm Desert's iconic restaurant on
Highway 111 is undergoing renovations where they will do something
great there and improve Highway 111.
5. Carter Elementary School - Mayor Harnik said she had the
opportunity to go to Carter Elementary School and welcome all the
little kids back to school. She noted that her 28-year-old daughter
went to Carter Elementary, so it was a little blast from the past for her.
F City Council Requests for Action.
1. CV Link - Councilmember Weber stated that because there has been
so much public interest in the CV Link with letters to the editor, City
Council emails, phone calls, and meetings with people who have
comments about it, she would like the City Manager to obtain from
Coachella Valley Association of Governments (CVAG) the following
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information:
- Schedule of all funds received to date, committed or promised, or
received from grants or other areas;
- Schedule of all expenditures to date, promised or obligated;
- A list of all properties considered for eminent domains.
G. City Council Consideration of Travel Reauests/Reoorts.
None
XI. STAFF REPORTS AND REMARKS
A. City Manager
1. City Manaaer's Meeting Summaries Report for the Period of July 3 -
August 11, 2017.
With City Council concurrence, the Meeting Summaries Report was received and
filed.
2. Consideration of the November 2017 City Council Meeting
Schedule— Possible Rescheduling of Regular Thursday, November 9,
Date to Thursday, November 16, in Order for Participation in the
Southern California Association of Governments (SCAG) Housing
Summit on November 9.
Ms. Aylaian stated that November 9 happens to be the same date that
SCAG is having a Housing Summit and is addressing housing
impacts and possibilities for affordable housing. There are key staff
members that would like to attend, including Councilmembers, so if
there was enough interest, the November 9►h City Council meeting
could be changed to the third Thursday of the month, on
November 16.
Mayor Harnik said it was important for staff to attend the Housing
Conference, but it would also be more efficient to have the meeting
in the middle of November, rather than just having one at the
beginning of the month.
With City Council concurrence, staff to adjourn the November 9, 2017,
regular meeting date to November 16, 2017, with traditional cancellation of
second meeting in the month due to the Thanksgiving Holiday on Thursday,
November 23, 2017.
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3. Y Be Fit - Ms. Aylaian noted that Palm Desert is one of the proud sponsors
of the event and typically there is a good group from City Hall participating.
She encouraged anyone who was interested in participating to please sign
up; the event is on October 1, 2017.
B. City Attorney
None
C. City Clerk
1. Reminder of Special City Council Meeting on Thursday, September 7,
2017, at 3:00 p.m., to be Held in Lieu of the Regular Thursday,
September 14, 2017, Meeting in Order for Councilmembers to Attend
the 2017 League of California Cities Annual Conference in
Sacramento, September 13-15.
Ms. Klassen reminded the City Council of the Special Meeting and
alerted the public that the next City Council meeting will be on
September 7, and the City will get back on schedule with the
September 28 meeting.
D. Public Safety
1. Fire Department
Mr. Aryan reported Division Chief Eddy Moore was in Sacramento,
but had indicated there were no reportable actions.
2. Police Department
a) Introduction of Newly Appointed Palm Desert Substation
Captain/Palm Desert Chief of Police Jason Huskey.
Capt. Teets announced that at his request, due to his family
relocating to Arizona, he requested to be sent to the Colorado
River Station and his request was honored. He thanked the
City Council and staff, stating it has been an amazing
experience and one of the highlights of his career.
He introduced Captain Jason Huskey who has taken
command of the Palm Desert Substation, stating that
Capt. Huskey began his law enforcement career 27 years ago
in 1990 with the Coachella Police Department before laterally
moving into the Riverside County Sheriffs Department in 1998.
Since that time he has promoted through the ranks and has
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REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 24, 2017
held a number of key assignments to include the Internal
Affairs Bureau, Coroner's Bureau, and others. He possesses
a Jurist Doctorate Degree from Western State College of Law,
Master of Public Administration Degree from California State
University, San Bernardino, and a Bachelor of Science Degree
in Criminal Justice from Cal State University, Long Beach.
Lastly, Capt. Huskey has lived in the Coachella Valley for 24
years with his wife and son.
Capt. Huskey thanked the City Council for the opportunity to
work and live in the same community where he resides with his
family, stating it's very rewarding. In the past three weeks, he
is constantly reminded by people that approach him of the
great relationship between the Police Department and the
community, and this type of recognition is a testament to the
importance that this Council places on public safety. He
looked forward to working with the City Council and City staff.
Mayor Harnik thanked Capt. Teets for his service and for
always being available to answer questions.
Mayor Pro Tem Jonathan concurred, adding that Capt. Teets
is very passionate about what he does and the safety and well
being of the community, which has been greatly appreciated.
He added that Capt. Teets was very creative and helpful in the
budgeting and funding process, in that both the Department
and the City face the same challenges. He wished Capt. Teets
and his family all the best.
XII. CONSENT CALENDAR
A. MINUTES of the Regular City Council Meetings of July 13, July 27, and
August 10, 2017.
Rec: Approve as presented.
B. CLAIMS AND DEMANDS AGAINST THE CITY TREASURY - Warrants
Dated 6/16/2017, 6/23/2017, 6/30/2017, 7/7/2017, 7/14/2017, 7/17/2017,
7/31/2017, and 8/11/2017.
Rec: Approve as presented.
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C. CLAIMS AND DEMANDS AGAINST THE CITY/HOUSING TREASURIES -
Warrants Dated 7/7/2017, 7/21/2017, 7/28/2017, and 8/4/2017 (Joint
Consideration with the Palm Desert Housing Authority).
Rec: Approve as presented.
D. APPLICATION FOR ALCOHOLIC BEVERAGE LICENSE by Burgerim,
72840 Highway 111, FC Unit S345, Palm Desert.
Rec: Receive and file.
E. APPLICATION FOR ALCOHOLIC BEVERAGE LICENSE by Pokehana,
73405 Highway 111, Suite 104, Palm Desert.
Rec: Receive and file.
F RESOLUTION NO. 2017 - 61 - 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 Department of Finance, as Indicated on the
Records Retention Schedule (Adopted May 14, 2015) — Records from
1976 through 1992 (Exhibit "A").
Rec: Waive further reading and adopt.
G. REQUEST FOR DECLARATION of Various Pieces of Office Furniture as
Surplus and Authorization for Disposal as Recommended.
Removed for separate consideration under Section XIII, Consent Items Held
Over. Please see that portion of the Minutes for Council discussion and
action.
H. REQUEST FOR AUTHORIZATION to Reimburse Building Inspection Fees —
Villa Portofino Project (Comstock Crosser & Associates, Applicant).
Rec: By Minute Motion, approve the request for reimbursement to
Comstock Crosser & Associates, El Segundo, California, for Project
Nos. 15-00065925 (4018 Via Fragante) in the amount of $5,420.64,
15-00065924 (4023 Via Fragante) in the amount of $5,420.64,
15-65927 (4438 Via del Pellegrino) in the amount of $4,164.93, and
15-00065296 (4029 Via Fragante) in the amount of $4,164.93 — total
refund in the amount of $19,171.14 for the Villa Portofino Project.
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I. REQUEST FOR APPROVAL of the Assignment of Contracts from Sungard
Public Sector, LLC, to Superion, LLC (Contract Nos. C31700A, C31700B,
and C36010).
Rec: By Minute Motion, approve assignment of Contract Nos. C31700A,
C31700B, and C36010 from Sungard Public Sector, LLC, to Superion,
LLC.
J. REQUEST FOR APPROVAL of Additional Services Quote from Superion,
LLC, for TRAKiT Software Implementation and Authorization for City
Manager to Execute Related Agreement.
Removed for separate consideration under Section XI I I, Consent Items Held
Over. Please see that portion of the Minutes for Council discussion and
action.
K. REQUEST FOR AUTHORIZATION to Purchase Three (3) Type R Traffic
Signal Controller Cabinet Assemblies from Econolite Group, Inc., in the
Amount of $69,046.20.
Rec: By Minute Motion, authorize purchase of three (3) complete Type R
traffic signal controller cabinet assemblies from Econolite Group, Inc.,
Anaheim, California, in the amount of $69,046.20 — funds are
available in Account No. 1104250-4332500 - Traffic Safety - R/M
Signals.
L. REQUEST FOR RATIFICATION of the City Manager's Authorization for
Additional Expenditures, Approval of Change Order No. 1 in the Amount of
$4,545; and Acceptance of Work for Construction of the Joslyn Center
Paving, Accessibility, and Retaining Wall Project (Contract No. C35900,
Project No. 766-17) (G. L. Gayler Construction, Inc., Thermal, CA).
Rec: By Minute Motion: 1) Ratify City Manager's authorization for additional
expenditures and approve Change Order No. 1 in the amount of
$4,545 to subject contract; 2) authorize transfer of $4,545 from
contingency to base for the project; 3) authorize City Manager to
execute Change Order No. 1; 4) accept the work as complete and
authorize the City Clerk to file a Notice of Completion for subject
project — funds are available in Account No. 4004300-4389300 -
Capital Project Reserve.
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M. REQUEST FOR APPROVAL of Events for First Weekend 2017-2018
(Contract Nos. C36380A and C36380B).
Rec: By Minute Motion, approve/authorize: 1) Expenditure in an amount
not to exceed $15,000 for the November 30 - December 4, 2017,
presentation of the sculpture Take Me Home Huey and the related
documentary film in Freedom Park as part of First Weekend,
December 2017 — funds are available in Account
No. 4364650-4309200 ($10,000) and Account No. 1104417-4322200
($5,000); 2) sponsorship in the amount of $2,000 for the December 3,
2017, and $3,000 for the April 8, 2018, First Weekend events entitled
"Coffee In The Park," to be located in Freedom Park and Palma
Village Park, respectively — funds are available in Account
No. 1104416-4306201; 3) staff to finalize negotiations of subject
contracts for Take Me Home Huey and "Coffee In The Park," and
Mayor to execute same, subject to satisfaction of the Risk Manager
and City Attorney; 4) waiving all associated City -based fees for both
events; 5) temporary waiver of Palm Desert Municipal Code
Section 11.01.080(Q) - Prohibited Conduct Generally in City Parks -
Vendor Sales; 6) temporary waiver of Palm Desert Municipal Code
Section 11.01.140 - Amplified Sound.
N REQUEST FOR AUTHORIZATION to Release Cash Deposit in the Amount
of $64,220 for Bike Path Improvements Associated with the Department of
Motor Vehicles Project at 36400 Technology Drive (Sycamore III, LLC,
Applicant).
Rec: By Minute Motion, authorize release of cash deposit in the amount of
$64,220 for bike path improvements associated with the Department
of Motor Vehicles (DMV) Project at 36400 Technology Drive.
O. REQUEST FOR AUTHORIZATION to Release Traffic Signal Bonds for
Parcel Map No. 36792 (Palm Desert University Gateway, LLC, Applicant).
Rec: By Minute Motion, authorize City Clerk to release the Traffic Signal
Bonds for Parcel Map No. 36792.
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P. REQUEST FOR AUTHORIZATION to Issue a Request for Qualifications
(RFQ) Seeking Artists to Create Artwork for the Set of Two (2) Traffic Signal
Cabinets on the Northwest Corner of Fred Waring Drive/Cook Street and the
Set of Two (2) Traffic Signal Cabinets on the Southwest Corner of Fred
Waring Drive/Deep Canyon Road; and for Approval of Six (6) $100
Honoraria for Finalists to Create Proposals for the Artwork (Contract
Nos. C36390A and C36390B).
Rec: By Minute Motion: 1) Authorize staff to issue an RFQ seeking artists
to create artwork for the set of two (2) traffic signal cabinets on the
northwest corner of Fred Waring Drive/Cook Street and for set of two
(2) traffic signal cabinets on the southwest corner of Fred Waring
Drive/Deep Canyon Road; 2) approve up to six (6) $100 honoraria for
finalists to create proposals for the artwork — funds are available for
both sets of traffic signal cabinets in the FY 2017-2018 Public Art
Budget, Account No. 436-4650-4400100.
Q. REQUEST FOR ACCEPTANCE of One Member's Resignation From and
Appointment of One New Member To the Palm Desert Youth Committee.
Rec: By Minute Motion: 1) Accept resignation of Palm Desert Youth
Committee Member Maira Ahmad; 2) appoint Umair Ahmad to the
Palm Desert Youth Committee to fill the remaining one-year term
(to Dec. 31, 2017).
R. REQUEST FOR DIRECTION to the City's League of California Cities Voting
Delegate to Approve the 2017 Annual Conference Resolutions Concerning
AB 109 Reform and Local Control of Emergency Medical Response.
Rec: By Minute Motion, authorize the City of Palm Desert's League of
California Cities Voting Delegate to approve the 2017 Annual
Conference Resolutions.
Mayor Harnik requested item G be removed for separate consideration under
Section XIII, Consent Items Held Over. Mayor Pro Tem Jonathan asked that
Item J also be removed for separate consideration.
Upon a motion by Kelly, second by Nestande, the remainder of the Consent
Calendar was approved as presented by a 5-0 vote (AYES: Jonathan, Kelly, Nestande,
Weber, and Harnik; NOES: None).
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XIII. CONSENT ITEMS HELD OVER
G. REQUEST FOR DECLARATION of Various Pieces of Office Furniture as
Surplus and Authorization for Disposal as Recommended.
Mayor Harnik noticed the surplus furnishing included antiquated equipment
and metal file cabinets, and she and Councilmember Weber thought the
Historical Society could use some the items. She wondered if these items
could be donated or have a community garage sale.
Mr. Greenwood responded that staff could work out a process for a garage
sale type of operation done as a silent auction, and items that have no bids
would then go off to be salvaged to the landfill or scrap yard.
Councilmember Weber said she liked the idea and questioned how the
community would be notified about the community garage sale or silent
auction.
Mr. Greenwood suggested putting it on the City's website and have it
advertised in the newspaper.
Mayor Harnik move to, by Minute Motion, declare various pieces of office furniture
as surplus and authorize staff to explore different methods of disposal. Motion was
seconded by Weber and carried by a 5-0 vote (AYES: Jonathan, Kelly, Nestande, Weber,
and Harnik; NOES: None).
J. REQUEST FOR APPROVAL of Additional Services Quote from Superion,
LLC, for TRAKiT Software Implementation and Authorization for City
Manager to Execute Related Agreement.
Mayor Pro Tem Jonathan stated the staff report indicates the TRAKiT
Software was delayed from June 26 to October 23, 2017, and as a result, the
contract with the consultant increased by $38,480, which is no small change.
He believed there was a good reason for it, but he couldn't discern it from the
staff report.
Information Systems Manager Clay Von Helf explained that staff
implemented the delay late in the "Go Live" preparations, stating the City had
already expended the contract services up to that point. He added there was
a trainer on site for almost a full week, the data conversion, and services
from Superion had already been used up when staff made the decision to
day the "Go Live" event. Therefore, this request is to replenish those
services, including a new trainer on site and support for when the City
actually does goes live in October.
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Mayor Pro Tem Jonathan moved to, by Minute Motion, approve additional services
from Superion, LLC, for TRAKiT implementation and authorize City Manager to execute
related agreement for same — $38,480 is available within Account No. 5304190-4404000 -
no additional appropriation is requested. Motion was seconded by Weber and carried by
a 5-0 vote (AYES: Jonathan, Kelly, Nestande, Weber, and Harnik; NOES: None).
XIV. RESOLUTIONS
None
XV. ORDINANCES
A. For Introduction:
None
B. For Adoption:
1. ORDINANCE NO. 1324 - AN ORDINANCE OF THE CITY COUNCIL
OF THE CITY OF PALM DESERT, CALIFORNIA, APPROVING A
COMPREHENSIVE ZONING ORDINANCE AMENDMENT TO
CHAPTER NOS. 25.02, 25.04, 25.10, 25.16, 25.22, AND 25.28 OF
THE CITY'S ZONING ORDINANCE TO BE CONSISTENT WITH THE
GENERAL PLAN, Case No. ZOA 17-105 (City of Palm Desert,
Applicant).
Principal Planner Eric Ceja recalled for the City Council that
Ordinance No. 1324 was considered at the July 13 meeting. A
memorandum was presented with the changes made, and this was
the second reading of the Ordinance.
Councilmember Kelly moved to waive further reading and adopt Ordinance
No. 1324. Motion was seconded by Nestande and carried by a 5-0 vote (AYES: Jonathan,
Kelly, Nestande, Weber, and Harnik; NOES: None).
2. ORDINANCE NO. 1325 - AN ORDINANCE OF THE CITY COUNCIL
OF THE CITY OF PALM DESERT, CALIFORNIA, APPROVING
CHANGES TO THE CITY'S ZONING MAP TO BE CONSISTENT
WITH THE GENERAL PLAN, Case No. CZ 17-105 (City of
Palm Desert, Applicant).
Councilmember Nestande moved to waive further reading and adopt Ordinance
No. 1325. Motion was seconded by Kelly and carried by a 5-0 vote (AYES: Jonathan,
Kelly, Nestande, Weber, and Harnik; NOES: None).
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3. ORDINANCE NO. 1326 - AN ORDINANCE OF THE CITY COUNCIL
OF THE CITY OF PALM DESERT, CALIFORNIA, AMENDING
PALM DESERT MUNICIPAL CODE SECTION 10.48.040(B)
PERTAINING TO NO -PARKING AREAS.
Councilmember Kelly moved to waive further reading and adopt Ordinance
No. 1325. Motion was seconded by Nestande and carried by a 5-0 vote (AYES: Jonathan,
Kelly, Nestande, Weber, and Harnik; NOES: None).
XVI. NEW BUSINESS
A. REQUEST FOR APPROVAL OF AN ALTERNATIVE WORKWEEK
SCHEDULE (9/80) POLICY FOR CITY EMPLOYEES.
Ms. Carney stated this request is to revise the City's policy to provide an
alternative workweek schedule, also known as a 9/80, to City employees.
The proposal is before the City Council as a result of negotiations with the
Palm Desert Employee Organization, in which the Council agreed to consider
an alternative workweek schedule and bring forth a policy. She explained
that in a traditional workweek, employees work eight (8) hours per day, five
(5) days per week for a total of 80 hours in a two -week period. In a 9/80
workweek schedule, employees work nine (9) hours a day for eight (8) days,
and one eight (8)-hour day, with a flexible day off in a two -week work period.
It's still 80 hours in a two -week period, but it's distributed over nine days
instead of ten. In considering this policy, staff formed a task force involving
employees from every department at all levels. The committee researched
other organizations, cities, counties, and the State, for their policies and on
how they were operating alternative workweek schedules. The proposed
policy has been reviewed by the City's labor attorneys, Liebert Cassidy
Whitmore (LCW), and their suggestions have been incorporated within the
policy.
Councilmember Weber stated she was pleased the City was getting into the
21st Century, because it's a different world now and difficult to work 8 to 5
and still take care of the many things one is called to do, so she appreciated
staff coming up with this alternative workweek.
Councilmember Weber moved to: 1) Waive further reading and adopt Resolution
No. 2017 - 62, authorizing the adoption of an Alternative Workweek Schedule (9/80) Policy
for City employees; 2) By Minute Motion, authorize City Manager to make non -substantive
modifications necessary for the Policy's implementation. Motion was seconded by
Jonathan.
Mayor Pro Tem Jonathan said he knew this was something staff wanted and
they have been so reasonable and understanding of Council's needs that the
least they could do was reciprocate. He asked if the policy applied to all City
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staff, including employees at the Corporate Yard.
Ms. Carney answered yes, stating that as long as it worked for the
Department. The policy will apply to all the departments and employees.
Employees can apply for an alternative workweek, and the request will be
reviewed by their department head. She didn't anticipate more than half the
employees taking advantage of the alternative workweek, at least initially.
However, even if the City has 50% of the employees taking advantage of it,
the City is offering four different flex days with alternating Monday's or
Friday's, so the specific impact should be minimal in any given department.
Mayor Pro Tem Jonathan pointed out that City hours of operation will not be
changed as a result of the alternative workweek schedule.
Ms. Carney agreed, stating the City will maintain it's current operating hours
with City Hall continuing to be open 8:00 a.m. to 5:00 p.m., and the
Corporate Yard will still provide service five days a week.
Mayor Pro Tem Jonathan inquired about the tracking mechanism for when
employees should be at work nine hours versus eight hours.
Ms. Carney responded that initially there will be a spreadsheet -based
tracking system, but simultaneously to this, staff has been working to adopt
an automated time -keeping system. She recalled for the City Council that
it approved the purchase of ExecuTime, an attendance time -keeping
software. She said staff is having the system set up to work with the
alternative workweek schedule as part of the City's automated system by the
end of the year.
Councilmember Kelly expressed her appreciation to staff for the process
followed in developing the policy, and for addressing the endless number of
ramifications, which were addressed dealt within the proposal, adding she
was impressed with the thorough preparatory work.
Mayor Harnik said she appreciated the wisdom in exploring flexibility to
keeping a good working environment and staff as productive and as happily
as possible. She thanked Ms. Carney for assuring Council that this won't
negatively impact the public when they need assistance from City Hall.
Mayor Harnik called for the vote and the motion carried by a 5-0 vote (AYES:
Jonathan, Kelly, Nestande, Weber, and Harnik; NOES: None).
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B. REQUEST FOR AWARD OF CONTRACT FOR THE 2017 CITYWIDE
STRIPING PROJECT TO CAL STRIPE, INC., IN THE AMOUNT OF
$221,315 (CONTRACT NO. C36350, PROJECT NO. 564-17).
Mr. Greenwood stated this was the annual street striping project and funding
is in the budget. A map is attached to the staff report listing all the streets
that will be impacted.
Councilmember Weber commented she is always pleased on how the City
focuses on maintenance and keeping assets in operating order instead of
waiting until they have totally deteriorated, which can cost the City more
money.
Councilmember Weber moved to, by Minute Motion: 1) Award subject contract to
Cal Stripe, Inc., Colton, California, in the amount of $221,315; 2) authorize Director of
Finance to set aside an additional 10% contingency for the project in the amount of
$22,131.50; 3) authorize City Manager to execute said contract — funds are available in
Measure "A" Fund Account No. 2134315-4332000 - Citywide Striping and in Unobligated
Measure "A." Motion was seconded by Nestande.
Mayor Harnik stated Grapevine was recently slurry sealed, and a couple of
residents informed her there was some unevenness on the road.
Mr. Greenwood said he will look into it.
Mayor Harnik called for the vote and the motion carried by a 5-0 vote (AYES:
Jonathan, Kelly, Nestande, Weber, and Harnik; NOES: None).
C. REQUEST FOR APPROVAL OF AN EXEMPTION TO THE BIDDING
REQUIREMENT, AS PROVIDED IN PALM DESERT MUNICIPAL CODE
SECTION 3.32.090, TO ALLOW SOLE -SOURCE PROCUREMENT FROM
GREENDAY, LLC; AND AUTHORIZATION FOR PURCHASE OF
REPLACEMENT PLANTER BOXES FOR THE SAN NICHOLAS
COMMUNITY GARDEN IN THE AMOUNT OF $78,876 (PROJECT
NO. 997-18).
Mr. Greenwood stated this was the third phase of the San Pablo Community
Gardens Renovation. He said these planter boxes have been very
successful, and the community has appreciated them. Staff recommended
using this vendor as a sole -source procurement, stating staff tried using
other vendors with a similar product to no avail. The renovation of this
garden is one phase, and there will be future contracts to redo the irrigation
and similar work for this same phase.
Councilmember Weber commented she was pleased with the planters
because they are not only functional, but they are lovely aesthetically, adding
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they are made of recycled glass.
Mayor Harnik agreed, stating it fits in with the City's Strategic Plan and Palm
Desert values, stating it's a recycled product and made locally in Indio.
Councilmember Kelly moved to, by Minute Motion: 1) Approve an exemption from
the bidding requirement, as provided in Palm Desert Municipal Code Section 3.32.090, to
allow sole -source procurement from Greenday, LLC, Indio, California, of replacement
planter boxes; 2) authorize purchase of 42 garden planter boxes from Greenday, LLC, for
the San Nicholas Garden area of the San Pablo Community Gardens in the amount of
$78,876; 3) authorize Director of Finance to set aside a 10% contingency for said project
in the amount of $7,887 — funds are available in Account No. 2364618-4400100 -
Recycling Fund. Motion was seconded by Nestande and carried by a 5-0 vote (AYES:
Jonathan, Kelly, Nestande, Weber, and Harnik; NOES: None).
XVII. CONTINUED BUSINESS
A. REQUEST FOR AUTHORIZATION TO IMPLEMENT A COMMUNITY
CHOICE AGGREGATION PROGRAM AND APPROVE THE DESERT
CITIES ENERGY CHOICE JOINT POWERS AGREEMENT FOR SAME
(Continued from the meeting of July 13, 2017).
Mr. Stendell recalled for the City Council that staff requested continuing this
item to this date in order to conduct a meaningful risk analysis, including
posting a survey on the Townhall Forum on the City's website. Staff
completed both activities with staff assessing both the Joint Powers
Agreement (JPA) with the California Joint Powers Insurance Authority
(CaIJPIA) and legal counsel, Best, Best & Krieger (BB&K). The outcome has
been positive, in that CalJPIA submitted a letter indicating there is an
acceptable amount of risk. The also stated they would love to continue
working with the City and Coachella Valley Association of Governments
(CVAG) to ensure there is a robust package with any potential Community
Choice Aggregation (CCA) Program. Secondly, he was aware there was
concern with the Joint Powers Agreement with regards to anyone coming
after the City's reserves, but legal counsel has reviewed the Agreement and
agrees the risk is always there, but it's reasonable, adding that the risk stops
at 1/6 or however many number of agencies are involved. Additionally, that
the City couldn't always eliminate every risk, but it can mitigate it under
certain programs. Therefore, staff and legal counsel are comfortable moving
forward with the JPA. With regards to the survey that was posted for 30
days on the City's website, staff received 36 responses, and of those
responses, 23 or 64%, was very interested in purchasing power from the
CCA other than the current utility. The factors that help them determine their
priorities were ranked as follows: No. 1 - Potential savings; No. 2 - Increased
opportunities for purchase of renewable sources of energy; No. 3 - Local
control over the profits from energy sales; No. 4 - Other. Generally speaking,
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most were interested in ways of lowering their utility bill. At this point, staff
recommended approval of the proposed Joint Powers Agreement, which
essentially keeps Palm Desert at the table with the CVAG process. The City
has a free look until December, at which point, a decision has to be made on
whether the City is in or out. After December, the CCA would start
purchasing and negotiating long-term power deals. He added that CVAG's
consulting team is busy creating the first documents required to submit to the
California Public Utilities Commission (CPUC) for formation. The document
will include potential savings and how many options will be provided, stating
that answers to the many questions will be provided by October 2017.
Staffs recommendation will include an augment that it will report back at the
November meeting leaving adequate time for the December decision. He
noted he and Mayor Pro Tem Jonathan have been attending many meetings
of the CCA, and Ms. Katie Burrows from CVAG was available to answer any
questions.
Councilmember Nestande disclosed her husband works for Riverside County
and that County is considering their own CCA plan. If the County decides to
move forward, she would like Palm Desert to weigh in on both plans.
Currently, CVAG is aligned with Western Riverside County, which is separate
from Riverside County, so there are two competing CCA models. It's her
understanding that WRCOV and CVAG plan to carve out between $20 and
$50 billion from the rate payers and millions more per year for various capital
costs, and the County plans to direct all savings to rate payers with no
up -front capital costs. She didn't know if that was accurate, because she
didn't have the information with her. Secondly, as more people switch to
solar over the next five or ten years, the CCA may become obsolete and the
City will be locked into long-term contracts.
Councilmember Weber said she will be voting NO on this item for the
following reasons: 1) Palm Desert has already implemented a very
successful program to reduce energy consumption through the use of solar
and other activities it has sponsored; 2) Palm Desert residents and the City
have already been successful at reducing energy consumption; 3) With
regard to competitive costs under Section 4 of the Ordinance,
Councilmembers were advised during a study session that there will not be
any savings with this program. She believed this was strictly an emotional
thing of feeling good to purchase green energy; 4) Section 5.3 talks about
recovery of costs as listed on page 13 of the Joint Powers Agreement, which
states there will be additional costs to the City as a result of this program.
She said there will be up -front cost to the City, including down the road;
5) On page 55 of Appendix G, it states the JPAwill be able to issue Revenue
Bonds by ordinance, without a vote of the elected officials. For the reasons'
states, she will be voting NO.
Councilmember Kelly noted some of her questions were answered prior to
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the meeting, but it was important that the questions and answers are on
record. She said the provision on page 14 of the JPA under Section 6.1.3 -
The Riaht to Withdraw Prior to Program Launch. calls for a first step of a
report from a consultant which would do two things, compare definitively
what the expected rates of the CCA are compared to Edison, and to also
forecast whether the CCA will be able to achieve improvement in the ratio of
renewable energy. She asked if the cost of this consultant would be
recouped from those who become customers of the CCA.
Mr. Stendell answered yes, stating the consultant already on board with
CVAG, The Energy Authority, is funding the up -front costs until that point
with a reimbursement agreement from future CCA rate payers.
Councilmember Kelly asked if the report was questionable as to whether the
CCA should move forward, and if Palm Desert and other cities make the
decision that the CCA should not move forward, then those costs would be
paid by the cities involved.
Mr. Stendell said he wasn't sure that was the case. However, worst case
would be that Palm Desert would be on the hook for some of those
consulting fees from now to December.
Councilmember Kelly said it would be appropriate to know what the costs
are, including knowing what the City will potentially be responsible for before
she could vote yes on this item. Additionally, this clause indicates that once
the cities see that report, Palm Desert has the ability to withdraw within 15
days after receiving it, which she thought was impractical. She understood
other jurisdictions have already approved this JPA, but again, she wasn't
comfortable unless CVAG is pressed to improve that clause.
Mr. Stendell stated he had asked for clarity on that clause, and the response
was that if a city was in, it can take those issues to the first board meeting of
the JPA and request those items be handled at that time. However, it
doesn't satisfy the concern of having certainty before buying into the
Agreement. The other option is to go back to each member agency with an
additional agenda item to amend the previous approval.
Councilmember Kelly agreed with comments made that it was important for
the City to do a thorough job of comparison, because clearly everyone wants
to see residents enjoy the lowest utility rates possible. She's also concerned
that when the City engages in the comparatives' process that it is thorough
and not superficial, because the ones she has seen don't give Edison credit
for hydroelectric power, which arguably more environmentally friendly than
other alternatives. She said the items she has brought up give her
discomfort about moving forward at this time.
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Mayor Pro Tem Jonathan stated there are multiple benefits of being part of
a CCA, noting he represented the City on the CCA Ad Hoc Working Group,
and at this week's meeting they were developing a grid of the goals and
benefits, which was provided to the City Council as part of the packet. The
document shows that the cost -savings is only one of the benefits/goals, and
it's nominal. Therefore, if that is the only concern, then one wouldn't want to
be part of the CCA, but if one values the increase of green energy, reducing
gas emissions, local control, and providing residents with a choice then the
CCA was a good thing. He pointed out that being part of the CCA doesn't
mean all the residents sign on, it means the City is giving them an
opportunity to sign on or not. Also, if one values modest cost savings, which
may mean modest to one, but significant to another, than those people may
be more prone to wanting the City to be part of the CCA. He believed this
endeavor was on the cutting edge, even though 8 cities already have a CCA
and 19 others are in the process of doing so. He is very excited about the
CCA, even though the Palm Desert has already implemented several
programs as mentioned by Councilmember Weber, however, when it comes
to reducing gas house emissions and protecting Mother Earth, one can never
do enough. He is excited for the City to continue its rich legacy of being
environmentally proactive. On the other hand, he would be concerned if
Palm Desert wasn't taking part in the CCA, because the City would be
perceived, rightly so, as missing the boat and an opportunity offer residents
a choice. Lastly, there is a lot of discussion around risk, and he too
embraces that concern, but very few meaningful and significant things are
accomplished without some level of risk. What distinguishes Palm Desert's
risk here, is that it's manageable. He is confident that whatever level of risk
exists to Palm Desert, it is nominal, but manageable. He said Palm Desert
has a history of taking risks, stating prior Council's developed the concept of
Desert Willow in creating an economic driver, or when deciding on the
Aquatic Center, which was an $8.5 million project, adding those were risks,
but fortunately and thankfully, they have paid off. He said the risk associated
with joining the JPA, having a seat at the table, having local control, and
creating choices for residents, is a modest and manageable risk and one that
the City should take.
Councilmember Weber stated that while she appreciated Mayor Pro Tem
Jonathan's comments, her understanding is that Edison gets their electricity
from hydro power and natural gas, so they have already restricted how many
green house emissions they are creating for electricity. And with regard to
this emotional thing about wanting to save Mother Earth and so forth, she
believed electricity is changing dramatically and quickly, that this would
eventually be a moot point. Additionally, for the City to come up with money
to get involved in something that will be a nonissue in as little as five years,
was a bigger risk than she would care to take in order to keep Palm Desert
involved, and while the risk is manageable, she is not willing to take it at this
point and time. Also, it appears the City is being asked to vote on something
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now and read about it later, because this Council doesn't have all the facts
at this point. It was pointed out to her that this was not about saving money,
but about doing the right thing. She said residents can make their own
decisions about doing the right thing without the City getting involved. She
said a vote should be based on facts with the City Council knowing exactly
what it will cost, how it can get out of the Agreement, and what will be the
complications involved if the City signs up for it and then wants to pull out.
Also, she read the JPA will have authority to do things without City Council
comments, which she found very frightening. At this point and time, she was
very uncomfortable with the whole premise of it.
Mayor Pro Tem Jonathan responded he didn't want to debate
Councilmember Weber's comments, but for the record, there was a series
of misstatements of facts that she cited. First, one being that decisions are
made without City Council input, which is not true and not how the JPA
functions. In fact, Palm Desert would have a weighted vote giving the City
a significant voice at the table. Any decision that the JPA makes, would not
be done without the City's input. He explained that the Board is composed
of a representative of each City, and if there is a significant matter, he would
hope the City's representative on the JPA would come before this City
Council and seek guidance. Therefore, the representative of the City would
take part on any vote that the JPA makes.
Councilmember Weber replied that the City could be out voted by the other
five cities. On page 55 of the JPA, it states, "A JPA may issue revenue
bonds by ordinance subject to a vote of its constituents, but without a vote
of the elected officials with the cities or counties comprising the JPA." She
went on to say that on a vote of 5 to 1, Palm Desert's representative could
be out -voted and this JPA could vote for Revenue Bonds without City
Council input.
Mayor Pro Tem Jonathan said they were going around in circles on this
issue, but No. 1, it's clear the City would have a voice by being on the Board;
No. 2, it's clear that Palm Desert could be out -voted on any vote; No. 3, Palm
Desert doesn't just get one out of six votes, because it's a weighted process
where consideration is given to the number of residents, power consumption,
etc., so Palm Desert would have a larger voice. He agreed Palm Desert
could get out -voted on any issue, which is the nature of a JPA, and this City
is part of other JPAs. He said one can either favor that process or not, but
to set the facts straight, Palm Desert would have a vote and a voice at the
table. The other statement made by Councilmember Weber is that residents
have a choice on what they want to purchase, which is not true. The portion
of green energy versus non -clean energy is determined by Edison, not by the
resident. A CCA gives Palm Desert local control and individual control,
meaning the CCA starts by determining what portion of the power it
purchases. The CCA's role is only to purchase power, and residents that
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choose to be part of the CCA will continue to get their billing from Edison.
The CCA doesn't bill lines, it just procures the energy/electricity, and when
it does, it will make a decision about what portion of those purchases will be
clean energy versus non -clean energy, so there is definitely a choice there.
Secondly, residents who choose to be part of the CCA, and historically more
than 90% do, will have at least two choices, but it's actually favoring three
choices. One is the default, the next one is a higher level of clean energy,
and the third choice will likely be 100% of clean energy that some of the
cities have implemented, but it hasn't been set yet, it will be up to the JPA.
He said each individual resident will be able to choose how much clean
energy they consume, so the statement that residents will not have a choice
is inaccurate. He added that Hydro Electric and Geo Thermal is clean
energy and it's all part of what is considered clean energy and can be
procured both by the CCA and individual customers if they are part of the
CCA.
Councilmember Weber asked for clarification on that last part, because the
City would then be directing the CCA to purchase clean energy because it
wants to go green, but it's all going into a grid. So when we instruct the CCA
to only purchase green energy, it will cost more and it's still going into the
grid, which means it could be coming from anywhere. Therefore, she felt
Palm Desert would not be controlling where it's getting the energy, the only
way it could do that, is if the City decided to put solar on every house and
every complex, which she would support, and that would be local control.
Mayor Pro Tem Jonathan said yes and no, in that the City was absolutely not
directing the residents about how to choose. In fact, the City would be doing
quite the opposite, it would be giving residents the freedom that they
currently do not enjoy. Right now, Edison tells them what portion of their
power will be clean energy and what portion will not. But by joining the JPA,
the City would be giving them a choice they currently don't have, and the
default provision would be similar to what Edison is providing. The yes part,
which is a very good point and he agreed, if he's a resident and he chose to
use more clean energy, by using wind turbine, a solar plant, hydro electric,
or geo thermal, those molecules are not going directly to his house, but he
is paying for them, which means that the manufacturer of that clean energy
will sell that clean energy into the grid, whereas if he didn't make that choice
or someone else didn't make that choice, it wouldn't. So while the exact
molecule isn't going to his house, he is effectuating a greater purchase and
greater use of clean energy.
Councilmember Weber said she understood the City would be using
pressure to get all energy companies to go green by using its voice and
dollars to say what it preferred, which sounds like a great idea.
Mayor Pro Tem Jonathan explained that the increase of solar panels is
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something that is being addressed by the industry as well as CCAs. But if,
as a society, it wants to get to the point where every home and business is
wired into solar energy or clean energy, it may be appropriate to terminate
the CCA and JPA, because one reason CCA's have cost savings, is that
they tend to purchase from the spot markets on shorter and medium -term
contracts versus Edison, which has to recapture the cost of plants and tends
to buy long-term contracts. If it becomes disadvantageous to be part of the
CCA or lacks an advantage, then the JPA will likely form to terminate in an
appropriate manner.
Councilmember Weber said it could take up to six months to terminate.
Mayor Pro Tem Jonathan responded it could take longer because one still
had to fulfill the obligations of the contract, which may be a medium -term
contract.
Councilmember Nestande asked how long was an average contract.
MS. KATIE BARROWS, Director of Environmental Resources with CVAG,
said contracts can vary, and they can be as long as 20 years, but there can
be spot -market purchases made in the three to five-year range. The
essential point here is that local decision makers would make that decision,
but certainly, one reason they are higher is because of long-term contracts.
Mayor Pro Tem Jonathan stated that in response to Councilmember
Nestande's point earlier, the Committee looked at joining other CCAs,
including Riverside and WRCOV, but the reason they opted not to was for
local control, which is one of the benefits of forming this CCA. Otherwise,
Palm Desert would be a smaller player in a much larger field. It was felt that
the region's needs were different, and being part of a larger CCA would have
no additional benefits nor result in having a reduced cost. In fact, it may
result in higher cost, because they are looking at using some of the savings
instead of giving it back to the residents at a lower cost and using some of
the savings to build plants. In the preliminary budget, and every CCA does
this, part of the savings goes into a reserve, and in the first year it's $4.2
million and will continue. Therefore, some of the risk will be mitigated by the
reserve, which is the intent of the reserve.
Councilmember Nestande added that Riverside County, WRCOV, and
others are buying energy from basically the same sources across State lines.
In other words, when you say "local," Palm Desert is not going to be buying
all its energy from the Coachella Valley.
Mayor Pro Tem Jonathan explained the CCA can basically make the
decision to physically buy local energy. For instance, it can go to these
winter turbines and buy their energy, which is another goal and advantage
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for local economic development. There are other things the CCA can do to
promote the local economy, assuming local providers can be cost
competitively. However, when he talks about "local control," he's talking
about the local members of the JPA making decision that are in the best
interest of their cities in the Coachella Valley as opposed to being part of a
CCA in Riverside or elsewhere. In those other CCAs, Palm Desert would be
a small fish in a large sea. Additionally, when he talks about local control,
he's not talking about the ability to buy local energy, but about charting its
own course for the local community.
Councilmember Kelly expressed her appreciation for the work done by Mayor
Pro Tem Jonathan in representing the City to this point, and she is extremely
proud that Palm Desert has always been a leader in regional collaborations.
Therefore, she would like to come to this with a positive disposition, but the
difficulties with the current draft Agreement she mentioned previously are
real impediments for her, because the City is being asked to approve
exposure to a potential financial responsibility for the consultant without
knowing the scale of that cost. It's also troublesome to her to be asked to
approve a cost, which she considers impractical, stating that just because a
couple of other cities have already approved it wasn't sufficient. Another
thing, the portion of clean energy currently being delivered is not exclusively
determined by Edison, it's largely determined by State mandates and by the
year 2020, they will be required to be delivering 40% renewable energy
before they are given credit for hydro electric power. The gradual
progression of State mandates really does influence the comparative
benefits of the CCA today or five years from now, which will changes the
landscape of comparative benefits. Lastly, if Palm Desert proceeds, she
would like a thorough analysis of that, which is why she is so focused on the
consultant's report and in making sure there is certainty about what will be
in it and what its potential costs are.
Mayor Pro Tem Jonathan said they were all valid points and he could
appreciate it. With regards to the cost of the consultant, he believed the
estimate was around $200,000.
MS. BARROWS stated CVAG hasn't actually signed a contract with the
entity that has been selected, and it will be one of the actions that will be
taken by the CCA Board. Those contractors who have been selected by the
Energy Authority Team have basically offered to up -front the cost of all the
work they will do. It will include a $500,000 up -front cost, because they will
not bill the CCA organization until revenues start to come in. She said they
have worked with other CCAs in the State of California, and they view it as
a good business decision to make that investment. But in terms of the cost
of the consultant's report, she couldn't say to the Council that there won't be
a cost to the City, but there is some indication by the consultants that they
may not invoice the cities for whatever funds, whether that be $200,000 or
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other. There is some uncertainty there, but the other side sees it as a good
business decision, they have already stated they will essentially cover those
up -front cost until the CCA is launched and several months beyond as an
investment in the community. Obviously, that won't be permanent, and as
revenues come in, they will cover those cost. There is a provision that
ultimately the City, the member agency, could be responsible for a limited
sum, and she would put it in the hundreds and thousands of dollars range.
Mayor Pro Tem Jonathan stated the City's exposure prior to December or
prior to pulling the trigger and saying the CCA is moving forward, he believed
the cost could be 1/6 or in the $30,000 to $40,000 range; however, the
amount wasn't pinned down yet. He said Councilmember Kelly made a good
point that Edison is mandated by the State to increase the energy it
purchases to 40% by 2020 with additional increases to follow, and if one is
satisfied with that option and sees no benefits, then so be it. However,
others would say that 40% by the year 2020 is not good enough, and the
CCA could get more clean energy faster. He went on to say he appreciated
the lawyer in Councilmember Kelly, because she certainly makes up for
areas he lacks in. Therefore, he suggested that any kind of approval, should
there be any this evening, could be conditional upon modification to the JPA
that would meet with the City's approval, because the Agreement is a draft
that would be voted on at the first CCA meeting. He noted staff will return to
the City Council in November for a vote on whether the City is joining or not.
Mayor Harnik pointed out that on an earlier item on the agenda, they talked
about the Joint Powers Insurance Authority (JPIA), which is the City's
insurance authority, and here Council's is talking about the Joint Powers
Agreement and referencing a governing Board, it's constituents, and elected
officials, which is rather ambiguous, so it was worth clearing up the language
and definitions. As far as the cost, she too would like to know the amount,
but if it's in the $30,000 to $40,000 range, it's an amount that is typically
spent to do a study, adding that sometimes Council learns that what sounded
like a good idea, wasn't, and others turn out to say it's a good investment.
She said it sounded like a risk worth taking, but she would still like to know
the dollar figure of the risk the City would be taking. The comment that
Edison is mandated by the State to provide 40% clean energy, could be a
way to cause Edison to work harder toward the best direction, and if the City
participates in the CCA, it could cause them to work even harder. However,
there has been a time or two when Sacramento has changed its direction,
so the City couldn't always count on those sorts of things. The only thing the
City was voting on this evening was a seat at the table and to explore more.
She asked if there would be a negative impact by the JPA to the City if it
waited until September 7 to make a decision.
Mayor Pro Tem Jonathan replied he didn't think so, because it was only two
weeks and hopefully staff can get answers to some of the questions raised.
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MS. BARROWS noted the City of Indian Wells will have a study session on
September 7, and the City of Cathedral City will consider this item on
September 19. As discussed with the Ad Hoc Committee, they would like to
have a decision by the end of September, because the Implementation Plan
that needs to be submitted has to identify who will be a partner.
Mayor Harnik said more information will help Council make an informed
decision.
Mayor Pro Tem Jonathan moved to, by Minute Motion, continue this item to the
meeting of September 7, 2017, and in the interim, staff to work with CVAG on questions
and concerns raised at this meeting. Motion was seconded by Kelly and carried by a 4-1
vote (AYES: Jonathan, Kelly, Nestande, and Harnik; NOES: Weber).
XVIII. OLD BUSINESS
None
XIX. PUBLIC HEARINGS
A. REQUEST FOR APPROVAL OF AMENDMENT TO PALM DESERT
MUNICIPAL CODE, ADDING CHAPTER 15.36 - EXPEDITED PERMITTING
PROCEDURES FOR ELECTRIC VEHICLE CHARGING STATIONS.
Mr. Grance stated the proposed Ordinance creates a standardize and
expedited permitting process for electric vehicle charging stations, which is
mandated per AB 1236. The City currently has most of those processes in
place with the exception of State mandates where it has ordinances to make
it more legal. He noted the staff report and offered to answer questions.
Mayor Pro Tem Jonathan asked for clarification on Assembly Bill 1235,
where it states, "AB 1236 also clarified that a jurisdiction may not condition
approval of a permit for an electric vehicle charging station based on the
approval of a homeowner, or property owner association."
Mr. Grance explained the City couldn't hold up any approval of that type of
system based upon an HOA turning it down, because staff has no authority
to disapprove an application.
Mayor Pro Tem Jonathan asked that if an HOA objects, the City still has to
move forward.
Mr. Grance answered yes, stating the City is obligated to move forward with
an application.
Mayor Harnik declared the public hearing open and invited public testimony
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FAVORING or OPPOSING this matter. With no public testimony offered, she
declared the public hearing closed.
Councilmember Kelly moved to waive further reading and pass Ordinance No. 1328
to second reading, adding Chapter 15.36 - Electric Vehicle Charging Stations - to the Palm
Desert Municipal Code. Motion was seconded by Nestande and carried by a 5-0 vote
(AYES: Jonathan, Kelly, Nestande, Weber, and Harnik; NOES: None).
B. REQUEST FOR APPROVAL OF A ZONING ORDINANCE AMENDMENT —
PALM DESERT MUNICIPAL CODE SECTION 25.34.120 - CANNABIS USE
AND REGULATIONS; CHAPTER 25.16 - COMMERCIAL AND INDUSTRIAL
DISTRICTS AND CHAPTER 25.18 - DOWNTOWN DISTRICTS — TO
ALLOW FOR CANNABIS BUSINESSES WITHIN THE CITY, SUBJECT TO
A CONDITIONAL USE PERMIT; AND ESTABLISHMENT OF
PALM DESERT MUNICIPAL CODE CHAPTER 5.101 - COMMERCIAL
CANNABIS REGULATORY PERMITS, Case No. ZOA 17-027 (City of
Palm Desert, Applicant).
Mayor Harnik and Councilmember Weber both recused themselves from this
item due to a potential conflict of interest.
Principal Planner Eric Ceja stated the proposed Zoning Ordinance
Amendment is to establish Cannabis Use and Regulations, and establishing
Chapter 5 to the Business Code for Cannabis Regulatory Permits. He
recalled for the City Council that last year Council established a Cannabis Ad
Hoc Committee, and it spent the year looking at cannabis and Proposition 64
- Adult Use of Marijuana Act (AUMA), which was passed by the voters. Staff
researched the two laws that are applicable at the State level, Medical
Marijuana Regulation and Safety Act (MMRSA), and Proposition 64. He
displayed the provisions that are afforded under each of those laws. At the
direction of the Council, staff looked at drafting an ordinance that would
reasonably be open to cannabis businesses and operators, but also
establish regulatory criteria for them. During the time staff was researching
existing laws and trying to establish an ordinance, the State took action to
merge these two laws under one State law, which was actually helpful with
respect to the proposed Ordinance. The Cannabis Committee met sever
times over a 10-month period, and the proposed Ordinance is a
recommendation from that Committee. The proposed Ordinance
distinguishes between personal and commercial uses of cannabis. In
accordance with State law, a private resident may grow or cultivate up to six
plants at a private resident at the rear or side yard. Staff has established a
criteria for a Conditional Use Permit (CUP) for all commercial cannabis
operators and a separation requirement for cannabis businesses. He said
the State would allow the City to ban outdoor cultivation, but it can't ban
indoor cultivation. There has been a lot of discussion with fire safety and
building code issues with indoor cultivation, and the Committee was open to
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allowing cultivation to the rear or side yard, subject to it being screened, but
prohibiting use of volatile solvents: butane, propane, etc. In the Ordinance
itself, staff made matching building code requirements, so if someone is
making modifications, they will be notified to come to City Hall to obtain a
Building Permit. For commercial uses, staff is requiring a CUP where it can
be reviewed by the Planning Commission. The Ordinance distinguishes
between six different types of cannabis businesses: retail, testing,
manufacturer, cultivation, delivery, and distribution. For each of these types,
staff has established which zones they can be located. Retail can be located
within most of the City's commercial centers with the exception of the
Downtown Overlay Zone, with limited manufacturing, cultivation, distribution,
and delivery to the City's Service Industrial areas. Staff is more open to
testing and research facilities, because these are professional operations
that fall in line with existing testing labs, and don't sell products to a
consumer directly, so they are allowed to operate in Office Professional
Zones. With each of these cannabis uses, there is a 1,500-foot separation
requirement to avoid a concentration of cannabis businesses in any one
location of the City, and there is also a separation requirement imposed by
the State that uses are not allowed within 600-foot of a school, daycare, or
youth center. Also, staff included prohibitions that would limit properties that
abut a public park or private residence for having cannabis use. If a CUP is
issued to an operator, they would have to show that they have a State
License to operate. With a CUP process and with what is established in the
Ordinance, there are supplemental requirements for someone that wants to
establish a business, which would be reviewed by the Planning Commission
that includes how they are going to address noise, order, security plans,
business plans, an exterior facade plan, community relations plan, etc. He
displayed a map of the City's Downtown Core Overlay, stating the red areas,
primarily along Highway 111 at major intersections, including properties
along San Pablo and El Paseo, cannabis uses would not be allowed,
including properties along Shadow Mountain that abut residents or along
Alessandro Alley. Attached to the staff report is a map outlining potential
cannabis locations for retail, testing, cultivation, manufacturing, etc. Again,
anywhere you see red, there is either a school, child care, or youth center
that the City is aware of and placed a 600-foot radius buffer. He said there
is potential for up to 30 Conditional Use Permits to be issued, and that's
across all cannabis uses. The approximate CUPs that can be issued for
retail or cultivation is less than 20, stating the City has already adopted things
proposed by the State, including the buffer and separation requirements.
The current Ordinance is silent on the issue, and since the State will be
issuing licenses starting January 2018, staff felt it was important to have an
Ordinance that has been reviewed by the City Council and have it be
established by January. The proposed Ordinance incorporated language
from the City's existing Smoking Ordinance that prohibits the use of cannabis
at public parks or anywhere that is visible from the public, and at senior
housing developments. In summary, the proposed Ordinance was reviewed
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by the Cannabis Committee, and there was much discussion on how this
Ordinance came together and why it's been written in such a way that
addresses separation, supplemental requirements, and CUP. His response
is that staff received general direction to address cannabis uses, and to be
open but limited. The Ordinance addresses personal cultivation and
commercial uses, but he would emphasize that because things continuously
change at the State level, the City Council will likely see amendments to this
Ordinance within a very short period. One thing the proposed Ordinance
does not discuss, is the tax issue, stating the State allows the City to
establish its own tax for cannabis, but it has to be voter approved. Staff
recommended a continuance of this item to the meeting of September 7, to
allow staff to better separate the Ordinance between its regulatory permits
on the Business Code, including sections it had for Title 5 of the Zoning
Ordinance.
Councilmember Nestande noted her questions were answered at the Study
Session that was held prior to the meeting.
Mayor Pro Tem Jonathan stated this was such a broad and in-depth subject
with so many moving parts, and Mr. Ceja's did a great job of explaining the
Ordinance that even a simpleton could understand.
Mayor Pro Tem Jonathan declared the public hearing open and invited public
testimony FAVORING or OPPOSING this matter.
MR. CHRIS CRANFILL, La Quinta, CA, stated he had a delivery service until
Palm Desert banned them, but he currently has a permit with the City of La
Quinta and City of Rancho Mirage to deliver cannabis, adding he has a
Masters in Health Care Administration. He said the past 20 years in
cannabis has been an interesting case study, and with the many moving
parts, the implementation of things may take a very long time. He hopes the
City will allow for some of the operators to figure the ins and outs, get their
systems in place, stating Palm Desert will have three months to see where
the inflow is, where the excess funds are going to be, and where there may
be possible health concerns, so that in November when the City presents the
imposed tax to the residents, it will be a proper tax that will cover the City's
taxes and expenses. He said there is a tax on cannabis, but medically, the
only people that will be exempt are those that hold a State card, which is
actually ending soon. Therefore, medical cannabis will be taxed along side
recreational cannabis, but at a lower rate. He noted there was actually less
than 5% of the cannabis population that actually holds that State Card
License, and the State is getting rid of that system because it doesn't contain
enough of the PHI, which is the Protected Health Information to verify the
individual, which essentially just a name and number. He urged the Council
to consider some of the implementation processes, because the City will be
dealing with a lot of influx of applicants at the same time. Although staff
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provided a map to the Council of the potential locations, from personal
experience, there are only so many landlords that are willing to do it, which
he believed will be a greater issue.
MR. MARK MORAN, Chair of the Regional Access Project Foundation,
stated they have been tenants of Palm Desert for a long time, but they
purchased a building at 41-550 Eclectic, Palm Desert, over by the old Guthy
Renker area. He asked the City to work with the Planning Department to
come up with a buffer zone around their building, because they have the
Community Foundation for Riverside County, SMART (Science, Math, Art,
Robotics, & Technology), Voices for Children, El Sol Neighborhood
Education Center, Integrated Learning Centers, the Carreon Foundation,
One Future Coachella Valley, First 5 of Riverside, and Coachella Valley
Autism Society, which are all tenants in their building. He would like to do a
500-foot buffer around the building, so that the abandoned Time Warner
building doesn't become the largest cultivating or manufacturing facility next
to their building. They are not opposed to what the City is doing, stating he
would be here in another capacity representing clients he knew will probably
come to Palm Desert and participate, but that was not his role today. He
appreciated the City Council listening to his request and hopefully Council
will agree they need to work with staff to come up with a buffer that meets
everyone's needs.
MR. NOEL RAMOS, St. Thomas Place, Rancho Mirage, his role today was
as a Commercial Real Estate Agent with Wilson Johnson Commercial Real
Estate. He said they are heavily involved with tenants, landlords, buyers,
and sellers of commercial property in the City of Palm Desert. On behalf of
a select few, he was before the Council to address a topic with this
Ordinance, but on a personal note, he supported Council's approval of the
Ordinance. He believed that five years from now, the work of Council and
staff, specifically Eric Ceja, will be widely recognized for what he sees as a
natural extension of natural remedies and cures for pain and ailments, but
it takes time for that transition for respect versus the stigma to happen. He
specifically wants to address the cultivation portion of the Ordinance, stating
that allowed areas will be in the Industrial Zones of the City. He felt the
language was to broad and too general, which he believed would do more
harm than good in the long run, because he sees the potential for
overreaching. He explained that cultivation is the complete oppositive of the
retail component, which are the dispensaries that are similar to a Walgreens,
Rite -Aid or a CVS Pharmacy; they are highly accessible and in frontage
areas. Cultivation on the other hand is a very discreet private use, requiring
skill and expertise with an enclosed area for the growth of the plants with
cycles of darkness, light, and watering. For anyone and everybody to go in
and out would be detrimental to that product, so it's a highly controlled
environment. These cultivation facilities usually have less than ten
employees at the site, so there really isn't high activity. The reason he brings
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this issue up, is that this kind of use doesn't want signage. Operators may
not want anyone to know they are there for security purposes. The
Ordinance prohibits uses within 600-foot of a school or youth center, which
to him means Palm Desert High School, Palm Desert Middle, Washington
Charter, YMCA, Boy's Club or Girl's Club. However, if you work in the
industrial areas of any city, you learn that it attracts a lot of other uses, simply
because of one thing. He explained that industrial rental rates and prices are
cheap in comparison to retail and office locations. For example, you may
have something called a school, but it may be for gymnastics or a school for
cheerleading, and they have limited hours of use. Yet, by its location in an
industrial area, it can knock out that cultivation use completely. He said
cultivation plays an important role, because if Council allows what this
Ordinance allows, it has to meet a legal element, including standards, which
is very important to the supplier and dispensaries, which is what a consumer
would want. The more this City eliminates cultivation use or the possibility
for it to exist, then you have to question where the supplies come from. He
requested flexibility when it comes to cultivation, which is his
recommendation for Council to consider.
MR. HARVEY ENGLANDOR, Via Bellagio, La Quinta, thanked Mr. Ceja for
the work he has done, stating he has worked with a number of cities on this
issue, and he has just been terrific in his research and his communication
with all of the people involved. He is the founder of an organization called
United Cannabis Business Alliance, comprised of 60 legal dispensaries in
Los Angeles County, and is also a developer of an 82-acre cultivation
manufacturing complex in Los Angeles County in the City of Lancaster,
stating he has been involved in this industry for a few years. With respect to
the implementation, he heard the City was thinking about a lottery system.
He predicts the City will have hundreds of people apply for these licenses
based upon what he has seen in other cities. Back in January, he provided
Mr. Ceja a point merit criteria that has been used in a number of cities to
help establish best practices for deciding who will get these licenses. He
advised against going with the minimum requirements that the State allows,
but to go further, like looking at expertise and experience, regulatory
compliance history, community engagement, financial security, requesting
local hiring, requiring $500,000 or $1 million in liquid assets. In Lancaster he
signed a development agreement with the City to pay 9.5% of their revenue
in taxes, because they wouldn't be having another election for another two
or three years, and why lose out on that amount of revenue. He said there
are a number of things that can be looked at, both in the Ordinance or
follow-up. Requirements that exceed the State's minimum are extremely
important, because Palm Desert is a very desirable location, and a merit
system is more relevant than a lottery system. Other cities have hired
qualified consultants or the City can use its own criteria relating to a point
system. He said it was critically important that Palm Desert have the best
operators.
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MR. TERRY COLLIER, Ajo Lane, Palm Desert, confessed that after he
returned from his Vietnam duty in 1969, he lived in the City of Sierra Madre
where he cultivated plants of his own and they were exceptionally high
grades. He had people all over the City wanting to get in touch with him for
the purpose of obtaining marijuana. Those days are way behind him now,
in that his son who is now a police officer has expressed to him that when he
pulls people over and suspects there is unusual activity going on from driving
erratically, officers have no way of knowing if that person is under the
influence of marijuana. He said alcohol is a difference substance to test for
and detect, but for marijuana, there is no available system to find out if the
person has THC in their blood. He understood the need for the use of
marijuana for medical purposes, as years ago his wife was given permission
to take it for health reasons, but at the same time it rendered her unfit for
driving or making decision on anything. He was not in favor of the advocation
of wide spread usage of marijuana by people, because it will inflict serious
implications on the health care system, especially if consumed by young
people for recreational use.
MR. ROB BERNHEIMBER, Manitou Drive, Indian Wells, stated he
represented clients who are interested in the Cannabis Ordinance. He
thanked the City's leadership and staff for going through this process, stating
this Ordinance was done in a good fashion, it has community input, staff has
been topnotch as far as understanding that it's an ever -changing landscape
and difficult to follow. He didn't think a lottery system on who gets the first
permits was the way to go, believing Palm Desert can set a higher standard
to obtain the best operators, and it can be accomplished by setting an
objective criteria, because a subjective criteria is not always the best way to
go and it can be very challenging. Ultimately, it will create more work for the
City at the front-end, and a lottery system will probably not get the City the
best operators, causing more problems for a long time to come.
Mayor Pro Tem Jonathan thanked Mr. Bernheimer for his input and asked
if he could provide samples of an objective criteria that has been used and
utilized by other cities, stating staff would be happy to take a look at those.
MR. DAN BALL, Peppergrass Street, Palm Desert, he recalled for the
Council he was a local journalist for all three TV stations, but right now he is
working as Director of Development at Parkinson's Research organization
located on El Paseo, and at Capitalist Real Estate in La Quinta. He shared
that several years ago he lost his brother to cancer. His brother was an Air
Force veteran and fire fighter, and during that time when he was suffering for
eight months with stage four cancer, he discussed medical marijuana with
him, but he wouldn't touch it, stating this was in 2008. At that time, Andy
Anderson from Texas told him it would interfere, which was propaganda.
Fast forward now eight or nine years, everyone knows it was propaganda
and now were all moving forward. He commends the City and staff for getting
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this going. He is also partner with PSA Organica, stating Julie Montane
owns it, and they have been open for about 20 months in the City of Palm
Springs. He implored the City Council to talk to Julie and Palm Springs
Councilmembers about how they went about improving the different
dispensaries and cultivation operations, because he's seen other cities that
have had some problems. Also, he agreed with previous speakers in that
the City should implement some sort of criteria. When his brother was dying
of cancer and him being on the journalist side of things reporting marijuana
is bad then later learning it was all false, but you do have to be careful of
what one is putting in their body. He recognizes cannabis will generate
revenue and bring sale tax to the City, but this was a medicine that will
replace tons of pills that people are addicted. He believed the criteria should
include that the applicant already has an established business, is local, and
that they be100% organic, stating that a lot of the edibles, lotions, and gels
don't have strict regulation and can contain chemicals that would add insult
to injury. He urged the City Council to tour one of the several dispensaries
in Palm Springs, because they did a good job. He also, encouraged them to
talk to fellow councilmembers in Palm Springs about how it's going, adding
they have no violations. He said they have used PSA Organica as the top
level to look at and other to meet as well.
Mayor Pro Tem Jonathan requested Mr. Ball provide the addresses of the
facilities, because he would be interested in visiting them.
MR. DON ZORNES, La Quinta, CA, stated he was also a Washington State
resident. He said Washington and Colorado have now been in the
recreational and medical cannabis business for four years. Initially, there
was a lot of trepidation, but four years later, it's just like any other business.
For the most part, he has seen positive things coming from the cannabis
industry out of the state of Washington. He agreed that the medical aspect
is the most important part, because it gives people an alternative to pharma,
and he's certainly not anti-pharma, but medical cannabis is very powerful
and positive system. In response to the concern raised earlier about people
driving while under the influence, he said California has the same strict laws
when it comes to Driving Under the Influence (DUI) law as Washington and
it's called a blood test. He said that if you are pulled over and an officer can't
smell alcohol, but your acting a little out of sort, that's where a blood test
comes in.
MS. LINDA WEST, Mansanita, Palm Desert, stated she owned California's
first nonprofit nurse cannabis organization. She said they are registered
nurses that are trained in medical cannabis, and they are actually nurse
advocates that will be working in western medicine and alternative
treatments. They have entered this arena to address the opioid crisis.
Studies have shown that up to 86% of people have substance use disorders
with opioids are they are delving in at looking at cannabis to complement or
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address their pain. As nurses, especially through a teller medicine portal,
this crisis can be addressed. They are looking to place their home in Palm
Desert to help address the population that is suffering from opioid addiction.
He thanked staff, specifically Mr. Ceja for his assistance on this matter. She
noted she also owns a property in Lake Arrowhead, stating San Bernardino
County is not permitting medical cannabis, just the six plants.
MR. TOM NOBLE, Gateway Drive, Palm Desert, stated he was not opposed
to the concept of providing places for cannabis operations, understanding
there are regulations. However, he does have a problem with the original
ordinance that came from the Committee, because it didn't have any
restriction with facilities being adjacent to residential properties. The
proposed Ordinance is recommending that they not abut residential
properties, but he felt it wasn't enough. The other ordinances he has
reviewed have a 250-foot buffer from a cannabis business to a residential
property. It's not clear to him that if the Ordinance is dealing with existing
residences or residentially zoned properties, which he thinks needs to be
clarified. He is mainly concerned with the Gateway Drive and industrial park
area off Dinah Shore Drive and Monterey Avenue, stating he developed that
project and his office is there. Adjacent on two sides are residential
properties, one is a condominium project and the other is a zoned property.
He didn't think it's appropriate to have these types of operations within
250-feet, which seems to be the standard, which he didn't think was enough.
He said the Ordinance should include a provision that the location is subject
to CCR's of neighboring developments as part of the CUP process.
Additionally, the language in the Ordinance could be more clear and he
would be happy to provide it if anybody wants it.
MS. JULIE MONTANTE, Owner of PSA Organica in Palm Springs, stated
she lived in Palm Desert and has been in the cannabis industry for 15 years.
She came from nothing to an amazing industry that helps people get off of
opioid and hard drugs and are able to stabilize people, veterans, HIV and
cancer patients. She also works with the Parkinson Center and their patients
for their medicine. She employs more than 150 people that never had jobs
before, stating they do trimming to manufacturing, and work in the
dispensaries. She has seen outsiders from Orange County and other areas,
locking up six or seven properties, in other words, they are hoarding. She
said this industry is about experience and what people know about the
business. She went on to say that Mr. Ceja has done a great job with the
Ordinance, and invited the Council to visit her facility and offered to take
them to grove and manufacturing facilities as well.
Mayor Pro Tem Jonathan thanked all the speakers and those in the
audience for taking some of their personal time to come to City Hall to
provide input, because it's very helpful to the Council in making its decision.
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With no further testimony offered, Mayor Pro Tem Jonathan declared the public
hearing closed.
Councilmember Kelly asked if the CUP process was adequate to protect any
issues such as the Regional Access Project that is not a youth center per
say, but is frequently visited by youth.
Mr. Ceja explained that the CUP process will allow staff to evaluate
surrounding uses to ensure any cannabis usage is outside the 600-foot
radius, but he would have to look up the definition of a youth center and
whether or not any of the programs or offerings at the RAP building would
qualify.
Councilmember Kelly asked if the proposed process allows for staff to look
at such a program and making a discretionary disapproval.
Mr. Ceja responded it didn't.
Councilmember Kelly asked if it was feasible to add a criteria that would
allow some assessment of the surrounding area.
Mr. Ceja stated that with Council's direction, staff can add any criteria, but it
will make it tough to work with surrounding property owners and each
individual property owner asking for their own separation.
Councilmember Kelly addressing Mr. Noble's concern about properties that
abut public parks or private residential properties, questioned if staff looked
at language that would include vacant properties, disowned, or reserved for
those purposes.
Mr. Ceja said staff has included vacant residential properties, as well as
parks and vacant school sites, adding that if zoned residential, a cannabis
permit would not be issued for a property that abuts it.
Councilmember Nestande stated that based on what she has been hearing
from the Study Session and speakers, she felt it was important to try to
balance a lottery with a merit -based objective system, taking into account
what the City Attorney has said that it's hard to have an objective criteria, but
he didn't say it was impossible. She suggested adding one or two objective
criteria in choosing who gets a permit.
Councilmember Kelly concurred, stating the City ought to strive to get the
best provider for both retail and commercial. There were other suggestions
offered that she felt qualified as objective criteria, and she believed City staff,
specifically Mr. Ceja, could come up with a good objective merit -based
criteria.
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Mayor Pro Tem Jonathan stated he heard City Attorney say there is a legal
risk whenever the City diverts from a straight lottery, but they are paid to
inform the City of what the risks are, but as discussed in an earlier item,
some risks are worth taking and this was one of them. The reason for it, is
that this is an opportunity to get the best operators for Palm Desert, and an
opportunity may not present itself again if the City chooses to go random.
This was an opportunity to set a standard that this fine City is accustomed
to, which is the highest standard possible. He challenged staff to come up
with an objective criteria, but at the same time obtains the best possible
businesses into Palm Desert. He would also like to see maps and the
calculations, but he was not comfortable with the potential of 19 retail
establishments nor was he sure they were needed. From a consumer
standpoint, he would be more comfortable with ten by whatever methodology
that would entail. Therefore, he would be interested in having this Council
discuss the possibility of creating limitations in the Ordinance that would
bring down the number of retail establishments. Interestingly, and he may
be the only one, he didn't have a problem with growth, research, testing,
stating those are quiet uses, and researching and testing went hand in hand
with Palm Desert being an education center. He said cannabis is here and
eventually the Federal Government will see the light where businesses will
be able to use actual banks, and this was an opportunity for Palm Desert to
be at the forefront. Finally, there will be an increase to public safety cost, so
this Ordinance needs to address it with either the business license rate,
permit fee, or the annual renewal, because cities shouldn't bear the initial
burden in allowing this new industry into their city, adding it should at least
be a break even on the budget. The sales tax is a separate issue, and he's
not sure that he favors one, but this City hasn't even gone there yet.
Councilmember Kelly agrees with the concern about the total number of
retail establishments, and she also shared the perception that the number
of other commercial businesses is Tess problematic, particularly because it's
a guess as to the impacts will be. She said the City wants to learn from
experience without making commitments that it can't take back. She would
like the Ordinance to set initially set a cap with the total number of retail
establishment, which can be proportionate to the total potential, adding that
eight or ten was a good place to start and allow time to assess the impacts
of law enforcement and otherwise. She said there could be impacts on the
cost of retail space that would influence the City's ability to achieve other
objectives.
Mr. Hargreaves said he would be happy to look at an objective criteria to the
extent that people in the audience could provide them and a step in the right
direction. On the separation requirement, specifically in respect to RAP, he
knew the City of Cathedral City had a definition in their ordinance with
respect to youth oriented uses that are broader than the one in the State's
Ordinance. The result of that, is that it significantly reduced the opportunity
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for placement. He agreed to look at including those types of definitions and
possibly reduce the sites that are available.
Mayor Pro Tem Jonathan said that while he's sympathetic to RAP's concerns
and all the good things they accomplish in the community, his understanding
based on their use at the Parkview Building, is that it's not children or
children's activities being held at the building, it's the entities themselves
conducting their administrative work and facilitating board meetings.
Furthermore, they made a choice to move into a service industrial area, and
it's a case of "caveat emptor," and he's not sure that others should pay for
that decision. Therefore, he's not sure the Ordinance needs to be modified
just for them.
Councilmember Nestande stated the point was well taken in that Mayor Pro
Tem Jonathan's comments were persuasive.
Mr. Hargreaves added that given the limited time, he suggested appointing
another subcommittee with two Councilmember to continue the dialogue with
staff. Councilmembers Kelly and Nestande agreed to continue to work with
staff on this Ordinance.
Mayor Pro Tem Jonathan re -opened the public hearing.
Councilmember Nestande moved to continue this item to the meeting of September
7, 2017. Motion was seconded by Kelly and carried by a 3-0 vote (AYES: Jonathan, Kelly,
and Nestande; NOES: None; ABSENT: Weber and Harnik).
XX. ADJOURNMENT
With City Council concurrence, Mayor Harnik adjourned the meeting at 6:47 p.m.
f: /cam , �A c /��,`'-
JAN C. HARNIK, MAYOR
ATTEST:
RA HELLE D. KLASSE ; CITY CLER
CITY OF PALM DESERT, CALIFORNIA
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