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HomeMy WebLinkAbout2017-12-14MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING THURSDAY, DECEMBER 14, 2017 CIVIC CENTER COUNCIL CHAMBER 73510 FRED WARING DRIVE, PALM DESERT, CA 92260 I. CALL TO ORDER - 3:00 P.M. Mayor Harnik called the meeting at 3:02 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 Grace L. Rocha, Acting 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 Janet M. Moore, Director of Finance/City Treasurer Mark Greenwood, Director of Public Works Frankie Riddle, Director of Special Programs Stephen Y. Aryan, Risk Manager John Cortez, Battalion Chief, Palm Desert Fire/Riverside Co. Fire Dept./Cal Fire Lt. Coby Webb, Asst. Chief, Palm Desert Police/Riverside Co. Sheriffs Dept. M. Gloria Sanchez, Acting Deputy City Clerk III. ORAL COMMUNICATIONS - A (CLOSED SESSION ITEMS) None MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING DECEMBER 14, 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: 43705 Kelsey Court (APN 634-241-037-2), Palm Desert (Desert Rose Development) Negotiating Parties: Agency: Lauri Aylaian/Janet M. Moore/City of Palm Desert/ Palm Desert Housing Authority Property Owner: Terri L. McIntyre 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 Mr. Hargreaves stated that one of the items in Closed Session he will be discussing under potential litigation are the potential legal challenges to the Short -Term Rental Ordinance. With City Council concurrence, Mayor Harnik adjourned the meeting to Closed Session of the City Council, Successor Agency, and Housing Authority Board at 3:04 p.m. She reconvened the meeting at 4:02 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 - Councilmember Gina Nestande VII. INVOCATION - Mayor Jan C. Harnik 2 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING DECEMBER 14, 2017 VIII. AWARDS AND PRESENTATIONS A. PRESENTATION OF PROCLAMATION TO RECOGNIZE RETIRED FIRE CAPTAIN JAMES YAZLOFF FOR HIS LEADERSHIP IN DEVELOPMENT OF THE "MINI -MUSTER" PROGRAM FOR ALL PALM DESERT 3RD GRADE STUDENTS IN THE DESERT SANDS UNIFIED SCHOOL DISTRICT. Mayor Harnik on behalf of the entire City Council presented the proclamation to Captain James Yazloff. Captain Yazloff expressed his appreciation for the recognition, crediting the troops for the work they have done for many years. He added that Mini -Muster was a great program and has probably saved countless lives. B. REORGANIZATION OF THE CITY COUNCIL. 1) SELECTION OF MAYOR AND MAYOR PRO-TEMPORE. Mayor Harnik nominated Sabby Jonathan for Mayor of the City of Palm Desert, and Susan Marie Weber for Mayor Pro-Tempore of the City of Palm Desert. Motion was seconded by Kelly and carried by a 5-0 vote. a) Comments by Outgoing Mayor and Mayor Pro-Tempore. Former Mayor Pro Tem/now Mayor Jonathan stated he had learned a lot from former Mayor Harnik, adding that the countless hours, passion, and understanding she always brought to the table, and the respect she showed others, is a standard that is inspirational and one he hoped to follow. He thanked her for all she has done and will continue to do for the City. Former Mayor/now Councilmember Harnik shared this past year included passionate discussions on a number of important issues to the City, and they have been difficult and challenging, but it all comes out well, because it included engaged community members. She said the City welcomes everyone's thoughts and opinions, because they are needed for the Council to come up with the best solutions. Palm Desert has an outstanding team and City Council that works together to seek the best solutions, and although there have been spirited discussions, it doesn't lose sight that it's making decisions about the future of the community, children, and grandchildren. She thanked the team for their guidance, stating she believed Palm Desert had a great City Manager, City Attorney, and staff, and the results are evident in the City. 3 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING DECEMBER 14, 2017 b) Comments by Newly Selected Mayor and Mayor Pro-Tempore. Mayor Pro Tem Weber recalled hearing former Mayor Harnik state that Palm Desert had five individuals serving on the City Council and each have five different opinions, but at the end of the day, they all work as a team. It was such a compliment, because it's true, in that the City Council values each other, the staff, the community, adding she was pleased to see the community very involved during these past few months taking part in the City's process. She thanked fellow Councilmembers for this opportunity to serve as Mayor Pro Tem. Mayor Jonathan thanked his family, many of which braved the freeways of Los Angeles to come to Palm Desert to be part of this moment. He also thanked his office family who was also in attendance, stating they meant the world to him, including his friends from "The Happy Hour Club." In the audience, he recognized so many of his friends, neighbors, and associates with whom he has developed such a supportive network, which he calls his extended family. Lastly, he said he had to thank the two special women in his life, first was his mother, who all day today had been telling everyone she ran into that her son was going to be the next Mayor of the City of Palm Desert, and the other was his wife and best friend, Wendy. He said Wendy has supported him 100% in all his endeavors. He pointed out that behind the scenes are the 113 City employees and the 100+ residents that comprise the various committees/commissions working on behalf of the City. The shaping of the City is a collaborative process from the bottom up, and whether it was developing a strategic plan that charts the City's future for the next twenty years, or addressing specific issues such as cannabis or short-term rentals, the process always begins with input from the residents and ends with a decision that builds on it. He's excited about the future, because the City doesn't just sit back on its success, it's constantly looking to make things better. The City as a whole, was already past the planning stages, which took several years, and it was now in the implementation stage. This coming year, people will see the transformation of San Pablo, which represents the beginning of the re -imagination and re -purposing of the City's core, which he liked to refer to as the Uptown Palm Desert, including the Highway 111 Corridor. With community involvement, the City will build on the success of the past and take Palm Desert to a whole new level. Mayor Jonathan called a recess at 4:20 p.m., and he reconvened the meeting at 4:30 p.m. 4 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING DECEMBER 14, 2017 C. PRESENTATION TO THE CITY COUNCIL ON THE 2017 "PAINT EL PASEO PINK" EVENT BY DESERT CANCER FOUNDATION. MS. SARAH BRYANT, Executive Director with the Cancer Foundation, congratulated the newly appointed Mayor and Mayor Pro Tem. She noted the Foundation's Board President Rob Bernheimer and Board Treasurer Frank Harrison were present. She was excited to share about the success of their 11'h Annual "Paint El Paseo Pink" event held in the City of Palm Desert, and the Foundation's impact in 2017. For the benefit of the audience, she said the Foundation was founded in 1984, a nonprofit organization dedicated to assisting residents in the Coachella Valley and surrounding communities who need financial assistance in obtaining screening, diagnosis, and treatment for cancer and allied diseases. Through the Suzanne Jackson Breast Cancer Fund and Patient Assistance Program, they carry out the efforts of their mission. The Program assists uninsured or under insured patients who cannot afford cancer care through partnerships with local healthcare community and generosity of its supporters. She thanked Council and staff for their leadership and support of the Paint El Paseo Pink event, and applauded the continued efforts to assist with the community's cancer care needs. The Paint El Paseo Pink event was hosted on October 14, 2017, at The Gardens on El Paseo. This event inspires, celebrates, and remembers those affected by cancer, and this year with the support of the City, they obtained permits to close the street of El Paseo for the first time in the event's history, which truly changed the dynamic of the walk, encouraging more than 1,500 attendees, and it raised more than $77,000. For 2017, they funded more than 271 local unduplicated Valley residents with 2,418 cancer care services, and 14% are residents of Palm Desert. She said these services would have cost the Foundation more than $6.2 million in services, but they were able to provide them at an approximate cost of $366,520, thanks in part, to the strategic and generous partnerships with the local medical community. It is clear that without the Foundation, one can only wonder what would happen to the community, because they are only one of five concerned foundations in the Valley, and the only one that provides financial assistance with cancer care screening, diagnostic, and treatment. Their assistance includes things such as paying for premiums, insurance co -pays, and medications. She offered to answer questions. Mayor Jonathan said he knew the City has collaborated with the organization for many years, and he looked forward to doing so again. He asked about the date for 2018. MS. BRYANT replied that the event was generally on the second Saturday of the month of October, however, she's planning on establishing it for February. 5 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING DECEMBER 14, 2017 D. PRESENTATION TO THE CITY COUNCIL OF AN EVENT PREVIEW ON FASHION WEEK EL PASEO SCHEDULED FOR MARCH 17-24, 2018; AND ON THE PALM DESERT FOOD & WINE FESTIVAL SCHEDULED FOR MARCH 23-25, 2018. MR. FRANK JONES, representing Fashion Week El Paseo and Palm Desert Food & Wine. He called attention to the Event Update brochure he provided to the City Council, noting they were approaching their 14th year of working with the events. The brochure highlights the new designers coming to the event, including Ralph Rucci from New York, who will be debuting his first show in two years before taking it to Paris, which was a big deal for Palm Desert. He went on to list the designers and special events that will be held during Fashion Week. On the Food & Wine Event there is a stellar lineup of more than six celebrity chefs that includes, Laura Werline, Zac Young and others. He noted the event includes off -site presentations throughout the City. He hopes to return in February to provide the City Council with a final update and invite them to participate again in this stellar signature event for Palm Desert. Mayor Jonathan commented that these events were the jewels in the City's crown and Council was very appreciative of all the effort that went into it. Further, he appreciated Palm Springs Life willingness to listen to the needs of the City and vice versa, stating he believed it was a great collaboration. IX. ORAL COMMUNICATIONS - B MR. PATRICK KLEIN, Representing the Palm Desert Area Chamber of Commerce as immediate Past Chairman, introduced Ms. Debbie Frazier, the Interim CEO for the Chamber. He said many on the Council already knew Ms. Frazier as she is a longtime resident and a proven successful woman with Mary Kay Cosmetics serving in the Ambassador's capacity for over a decade, and a past Board Member of the Chamber as well. The Chamber has more than 60 years of proven business organization, and it has never been stronger, and Ms. Frazier will help them charge into the future to become bigger and better as they move forward. MS. DEBBIE FRAZIER stated it was a privilege to represent the five-star Chamber of Commerce as the Interim CEO, and she was looking forward to raising the bar to collectively create a friendly business environment and facilitate a greater vitality for the entire Valley. MS. TAMMY MARTIN, Executive Director for Friends of the Desert Mountains, presented outgoing Mayor Jan Harnik with a plaque expressing their appreciation for her support to the organization. She also recognized the City of Palm Desert for its contribution to their mission of conservation, 6 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING DECEMBER 14, 2017 preservation, and education, stating they appreciated the City's continued support. Mayor Jonathan added he liked that this evening everyone was starting to see all the components that make Palm Desert special, and if anyone has not been to the Visitor Center on Highway 74, you owed it to yourself to do so, because there are nice and easy scenic hike trails there, and residents should take advantage of all the resources the City has to offer. A member of the public approached the City Council about an incident involving the Sheriffs Department, requesting that the City look into their protocols. MS. JACKIE DAMRON, Silver Canyon Lane, Palm Desert, congratulated the City Council on the peaceful passage of power, stating it was because of the City Council that she decided to make Palm Desert her forever home, adding it was the most stable city in the Valley. Her issue was about the abandoned business buildings that continue to decay. She is particularly dismayed with those on the Highway 111 Corridor between Monterey Avenue and Fred Waring Drive, because it is one of the most heavily traveled sections in Palm Desert. It connects Highway 74 to Interstate 10, north and south, and runs through the very heart of the City. Visitors enter the City from both directions, yet the former Denny's restaurant has been vacant for years and is located just one building west of Monterey Avenue on Highway 111. The other was the former Holiday Inn that is east of the Walmart Neighborhood Market on Highway 111 and directly across the major entrance to the beautiful Desert Crossing Center. The building has been vacant for at least seven years after a fire nearly destroyed it. She asked the City Council to review its policies and regulations to ensure these owners are required to maintain and upkeep their buildings, and if not, why not. She added that these abandoned and vacant buildings don't convey the message of a vibrant and thriving City, and owners should not be allowed to ignore their responsibilities. MR. DAVE THORNTON, Habitat for Humanity, thanked the City Council for being wonderful to Habitat, stating that most recently they had a dedication for a family in Palm Desert, and they are getting ready for their dedication of two more homes. It was also a monument to the generosity of the City, including being able to partner with an agency like Habitat to build a home and provide affordable housing to low-income families, which was a wonderful thing. He noted these two homes will be dedicated to two veteran families, and thanked the City, contractors who have donated materials, volunteers, and the goodness of others who have made it possible. 7 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING DECEMBER 14, 2017 MR. WALLY MELENDEZ, confessed he was proud to be an American and to witness this peaceful and democratic transition of political influence, power, and responsibility. In looking at what's happening in Venezuela, Honduras, etc., he commended this City Council for how it transitions. X. MAYOR AND COUNCILMEMBER REPORTS & REMARKS TO THE COMMUNITY A. Councilmember Jan C. Harnik Committee Reports and General Comments. 1. WorldQuest Competition - she announced that Palm Desert High School won the competition by one point, and they will be traveling to Washington, D.C. to represent the Valley in a competition. 2. Riverside County Transportation Commission (RCTC)- she reported that they are arranging for trains to come into the Valley for the music festivals this year on a trial basis to see how it works. 3. Wild Lights at The Living Desert - she invited everyone to go see the sparkling winter wonderland, which will end on December 24, 2017. 4. "Take Me Home Huev" at Freedom Park - she said it was a wonderful exhibition with a wonderful message about the Vietnam Veterans, and she thanked Management Analyst Debra Glickman for making it possible to have this piece of art and event at Freedom Park. Mayor Pro Tem Weber concurred, and she too thanked Ms. Glickman for rounding up all the students from nearby schools to participate, and they eventually brought their parents back as well. Mayor Jonathan commented he was very pleased that more than 500 students participated and then later brought their parents. B. Councilmember Kathleen Kelly Committee Reports and General Comments. 1. SunLine Transit - she said there will be some changes to the transit schedule after the first of the year, and some of those affect routes that pass through Palm Desert. The goal is to reallocate some resources to better serve students, particularly those who are trying to get to the Cal State University campus in keeping with the class schedule. Therefore, if you are a SunLine Transit user, you can go to the website to review the changes, and if the changes impact you in ways that give you concern, let her know so she can relay that message. 8 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING DECEMBER 14, 2017 C. Councilmember Gina Nestande Committee Reports and General Comments. 1. Neighborhood Watch Program - she and Deputy Sheriff Stacie Austin, who coordinates the Neighborhood Watch Program, had a meeting where they had a good turnout of neighbors. They looked at how they can work together with law enforcement to keep the neighborhood safe. She said if anyone was interested in establishing a neighborhood watch to please contact Ms. Austin at the Sheriff's Department, or email her. D. Mayor Pro Tem Susan Marie Weber Meeting Summaries Report for the Period of November 6 - December 3, 2017. With City Council concurrence, Mayor Pro Tem Weber's Meeting Summaries Report was received and filed. 1. Shop with the COD Event - she said the event will take place this Saturday at Walmart where a certain amount of children have an opportunity to get to know Sheriff Deputies on a one-on-one basis, and the children get to experience sitting in a police car. The Deputies assist the children in picking out toys for themselves, and their brothers and sisters, which is a memorable experience for all of them. Additionally, the Citizens on Patrol also show up and participate, stating it was community in action. Mayor Jonathan pointed out that members from the Sheriffs Department volunteer their time to be part of that function. E. Mayor Sabbv Jonathan Committee Reports and General Comments. 1. Blue Light Ceremony - he thanked the Riverside County Sheriffs Department for hosting one of the two Blue Light Ceremonies in Palm Desert at City Hall. He said it was such a special event where those that have made the ultimate sacrifice in the line of duty, as police officers, are honored. He was proud that Palm Desert is so supportive of its Police Department, Fire Department, the Marines, the "Take Me Home Huey" exhibit, which is all part of the fabric of the community. F City Council Reauests for Action. None G. City Council Consideration of Travel Requests/Reports. None 9 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING DECEMBER 14, 2017 XI. STAFF REPORTS AND REMARKS A. City Manager 1. City Manager's Meeting Summaries Report for the Period of November 6 - December 1, 2017. Rec: Receive and file. With City Council concurrence, the City Manager's Meeting Summaries Report was received and filed. 2. City Employee Retirement Announcements - she thanked and congratulated the following City employees who will be retiring before the end of this year: Building Inspector Darin Wilcox, Administrative Secretary Beth Longman, and Director of Public Works Mark Greenwood. She wished them well in their endeavors beyond City Hall. B. City Attorney None C. City Clerk None D. Public Safety 1. Fire Department Battalion Chief John Cortez reported to the City Council that Cal Fire lost a fire engineer from the San Diego Unit in the Thomas fires in Ventura. He is saddened to have to report this and the details are still to follow, adding that flags will fly at half-staff at the fire house. Mayor Jonathan commented that Council talks often about those that risk their lives every day to protect its citizens, and once and a while, the ultimate sacrifice happens. Chief Cortez added that personnel from Battalion 12 of Palm Desert is assisting with the fire, but the City is fully staffed. 2. Police Department None 10 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING DECEMBER 14, 2017 XII. CONSENT CALENDAR A. MINUTES of the Regular City Council Meetings of November 9 and 23, 2017, and of the Adjourned Regular Meeting of November 16, 2017. Rec: Approve as presented. B. CLAIMS AND DEMANDS AGAINST THE CITY TREASURY - Warrants Dated 11 /6/2017 and 11 /17/2017 - 2. Rec: Approve as presented. C. CLAIMS AND DEMANDS AGAINST THE CITY/HOUSING TREASURIES - Warrants Dated 11/9/2017 and 12/1/2017 (Joint Consideration with the Palm Desert Housing Authority). Rec: Approve as presented. D. APPLICATION FOR ALCOHOLIC BEVERAGE LICENSE by Dragon Sushi, 72261 Highway 111, Suite 131, Palm Desert. Rec: Receive and file. E. APPLICATION FOR ALCOHOLIC BEVERAGE LICENSE by Hibachi City Buffet, 72600 Dinah Shore Drive, Palm Desert. Rec: Receive and file. F YOUTH COMMITTEE MEETING MINUTES for May 1, June 5, September 11, and October 2, 2017. Rec: Receive and file. G. RESOLUTION NO. 2017 - 77 - A Resolution of the City Council of the City of Palm Desert, California, Setting Forth Its Findings and Authorizing the Destruction of Paper Records that Have Been Digitally Imaged from the Department of Public Works, to Rely On the Electronic Record as the Official Record — Various Parcel and Tract Map Files 1991 - 2009. Rec: Waive further reading and adopt. H. REQUEST FOR AUTHORIZATION of Payment to CDW-G for Adobe Acrobat Annual Subscription in the Amount of $13,252.75. Rec: By Minute Motion, approve payment to CDW-G, Inc., in the amount of $13,252.75 to provide Adobe Acrobat software for one year —funds are available in Account No. 1104190-4336000. 11 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING DECEMBER 14, 2017 I. REQUEST FOR APPROVAL of Geographic Information Systems (GIS) Services from Rancho Cucamonga Enterprise GIS (REGIS) Connect in an Amount Not to Exceed $42,300 (Contract No. C36560). Rec: By Minute Motion, approve the GIS services proposal from REGIS Connect in an amount not to exceed $42,300 and authorize City Manager to negotiate, finalize, and execute agreement, subject to City Attorney approval — funds are available in FY 2017-2018 Account No. 5304190-4404000. J. REQUEST FOR AWARD OF CONTRACTforthe Washout Facility Recycling System Located at the Corporation Yard to Tri-Star Contracting II, Inc., in the Amount of $67,021 (Contract No. C36490, Project No. 715-18). Rec: By Minute Motion: 1) Award subject contract for the Washout Facility Recycling System to Tri-Star Contracting II, Inc., Desert Hot Springs, California, in the amount of $67,021; 2) authorize Finance Director to set aside an additional 10% contingency for the project in the amount of $6,702; 3) authorize City Manager to approve any Change Orders within the contingency amount; 4) appropriate $38,723 from Unobligated General Account funds to Account No. 4504330-4400100; 5) authorize City Manager to execute said contract — following appropriation, funds will be available in Account No. 4504330-4400100. K. REQUEST FOR AUTHORIZATION for City Manager to Execute the Riverside County Transportation Commission Agreement for Funding Under SB 821 Bicycle and Pedestrian Facilities Program (Contract No. C36570). Rec: By Minute Motion, authorize the City Manager to execute the Riverside County Transportation Commission (RCTC) Agreement for Funding Under SB 821 Bicycle and Pedestrian Facilities Program — funds for this project are available in Account Nos. 2134315-4332000 and 2134544-4400100. L. REQUEST FOR APPROVAL of Amendment No. 2 to Contract with Richards, Watson & Gershon for Legal Services for the Successor Agency to the Palm Desert Redevelopment Agency, Palm Desert Housing Authority, and City of Palm Desert (Contract No. SA28881) (Joint Consideration with the Successor Agency to the Palm Desert Redevelopment Agency and the Palm Desert Housing Authority). Rec: By Minute Motion, approve Amendment No. 2 to subject contract with Richards, Watson & Gershon, Los Angeles, California, for the Successor Agency to the Palm Desert Redevelopment Agency, Palm Desert Housing Authority, and City of Palm Desert through June 30, 2018. 12 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING DECEMBER 14, 2017 M. REQUEST FOR APPROVAL of The Airstream by David Winick as the Public Art Component for Hotel Paseo Located at 45400 Larkspur Lane (Hotel Paseo/West River Inc. Real Estate, Applicant). Removed for separate consideration under Section XIII, Consent Items Held Over. Please see that portion of the Minutes for Council discussion and action. N. REQUEST FOR AUTHORIZATION of the Hotel Co-op Program. Rec: By Minute Motion: 1) Approve the Hotel Co-op Program, according to criteria described in the staff report; 2) authorize City Manager, per the purchasing ordinance, to approve individual requests for funding up to $25,000 — funds are available in Advertising Special Co-op, Account No. 1104417-4322201. Ms. Aylaian requested that Item M be removed for separate consideration. Upon a motion by Harnik, second by Nestande, and 5-0 vote of the City Council (AYES: Harnik, Kelly, Nestande, Weber, and Jonathan; NOES: None), the remainder of the Consent Calendar was approved as presented. XIII. CONSENT ITEMS HELD OVER M. REQUEST FOR APPROVAL of The Airstream by David Winick as the Public Art Component for Hotel Paseo Located at 45400 Larkspur Lane (Hotel Paseo/West River Inc. Real Estate, Applicant). Management Analyst Debra Glickman stated The Airstream is being proposed for Hotel El Paseo. There is a small change that the Applicant requested to be addressed with the City Council. The Applicant took note of one of the Art In Public Places Commission recommendations, which was for The Airstream to not have early check -in. The Airstream will actually function as a room, but the art portion is the exterior and the area around it. The area around The Airstream has been designed by the artist, including the reconstruction of the trailer. The Al PP Commission is very excited about this project, in that they like the idea of bringing an art that will be open 24/7 for the community to come and view. The Applicant was concerned about that one requirement of not allowing for early check -in, which doesn't change any part of the recommendation nor did she believe it will make much of a difference on the project, but she wanted to bring that to Council's attention. Councilmember Kelly said she was curious about it, questioning what was the Commission's thinking behind it. 13 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING DECEMBER 14, 2017 Ms. Glickman replied that the Applicant had brought it up as a possibility, but through further discussion, it won't make much of a difference. If there are art people in The Airstream, people will be able to walk into it, but Council is not considering the interior as part of the artwork, because the artwork is the full exterior experience. Mayor Pro Tem Weber moved to, by Minute Motion, approve The Airstream by David Winick as the public art component for Hotel Paseo, subject to staffs receiving a detailed maintenance plan, additional information on the artist and his past artwork, and further information on the area surrounding the Airstream trailer, detailing its design and confirming that it was developed by an artist — no funds are required to be expended at this time; once the artwork is installed and the above requirements are satisfied, staff will return to City Council with a request for reimbursement of the applicant's Art In Public Places Fee, as amended with the elimination of the requirement that "The Applicant not allow for early check -in from the trailer." Mayor Pro Tem Weber complimented the AIPP Commission because they were extremely diligent in going over this extraordinary piece of art, and to be thinking of this project as an art in public places is totally a different conception. She said the Commission paid a lot of attention to the City's requirements, reviewed it very professionally, going over each line item, adding that the artwork will bring an interesting ora to the hotel. Mayor Jonathan noted he was actually planning on pulling this item, because the AIPP Program is to create art that is viewable by the public, and the developer either pays a fee or provides the actual art for a similar amount or more. It was his understanding that this trailer was a substitute for a room that was lost because of the expansion of the fitness area. He questioned why this was being called art and why wasn't the developer separately providing an art piece. Ms. Glickman explained that it's the Applicant's responsibility to illustrate that the art is a separate line item. Therefore, the Applicant is required to prove to the City that it was money spent on top of what they would have already spent for the restoration of The Airstream. She said the Applicant could have gone with a new airstream as a room and not create the area around it. It's about how this piece has been restored, using an artist that works regularly with airstreams, and then his purview over the entire area. The area around it, which is the seating area, is styled within the time frame of the artwork. When the Applicant files the Public Art Application and Public Art Agreement with the County, which goes on record with the property, so if it's ever sold, the new owner will know that the artwork needs to stay there. The area around the airstream is also part of the artwork and it cannot change; however, they can replace something, but it can't change in spirit. 14 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING DECEMBER 14, 2017 Mayor Jonathan recalls that the trailer is inside the property to the rear, so he wondered how that was viewable to the public. The City's policy requires that the public be able to view it and the hotel is open 24/7, stating anyone can walk through, because there are no restrictions in walking to that side of the property. It was something she thought about and it was discussed by the Commission; however, it follows the spirit of the policy, in that anyone should be able to view the artwork at any time, adding it wasn't behind locked gates. During the day, there will be a docent talking about the artwork, so it was publicly accessible. Additionally, there is a 24-hour cafe in the hotel, which encourages people to come through at all hours to see the artwork. Mayor Jonathan stated that policies of businesses change and there may not be a 24-hour cafe there in one or ten years, and it may be under different ownership, etc., questioning if the City had any instrument in place that would assure the artwork is available to the public. Ms. Glickman responded the Public Art Agreement is filed with the County, which solidifies and codifies the City's policy in relationship to that particular artwork at that particular site. The Ordinance has the ability for the City Council to pull a Certificate of Occupancy if the artwork is in violation of its policy. Councilmember Harnik seconded the motion. Mayor Pro Tem Weber commented that for Modernism Week, visitors will be excited to see this in place, drawing many visitors in the next few months. Mayor Jonathan called for the vote and the motion carried by a 5-0 vote (AYES: Harnik, Kelly, Nestande, Weber, and Jonathan; NOES: None). XIV. RESOLUTIONS A. RESOLUTION NO. 2017 - 78 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, APPROVING THE FINAL SUBDIVISION MAP OF TRACT NO. 37292 (Mi Casa Property, LLC, Applicant). Mr. Greenwood stated this was Mr. Ron Moreno's first presentation to the City Council. Senior Engineer/City Surveyor Ron Moreno noted Tract Map No. 37292 is located about a quarter mile north of Shadow Mountain Drive and is on the east side of Highway 74. It is a six -lot subdivision of .042-acre and it allowed for ingress and egress through the rear of the six Tots, including easements 15 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING DECEMBER 14, 2017 and otherwise associated with the map. The map conforms to the Subdivision Map Act and all City ordinances. Councilmember Kelly moved to waive further reading and adopt Resolution No. 2017-78. Motion was seconded by Nestande and carried by a 5-0 vote (AYES: Harnik, Kelly, Nestande, Weber, and Jonathan; NOES: None). B. RESOLUTION NO. 2017 - 79 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, APPROVING THE FINAL SUBDIVISION MAP OF PARCEL NO. 37349 (Chuck Spinelli/Spinelli Homes, Inc., Applicant). Mayor Jonathan noted he would be recusing himself, because he has property that is nearby to the site in question. Senior Engineer/City Surveyor Ron Moreno stated Parcel No. 37349 is a 2.79 acre parcel for condominium purposes over the existing parcel that went with the original map. It was approved by the Planning Commission on November 7, 2017, and it complies with City ordinances and the Subdivision Map Act. Councilmember Harnik moved to waive further reading and adopt Resolution No. 2017-79. Motion was seconded by Kelly and carried by a 4-0 vote (AYES: Harnik, Kelly, Nestande, and Weber; NOES: None; ABSENT: Jonathan). C. RESOLUTION NO. 2017 - 80 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, ESTABLISHING THE CANNABIS COMPLIANCE FUND AND COMMITTING THE MONIES WITHIN THE FUND FOR THE PURPOSE OF COMPLIANCE AND ADMINISTRATIVE EXPENDITURES FOR ACTIVITIES RELATED TO REGULATION OF THE PRODUCTION, DISTRIBUTION, AND SALE OF CANNABIS AND CANNABIS -CONTAINING PRODUCTS. Assistant Finance Director Jose Luis Espinoza noted the Resolution is to establish the Cannabis Fund and to commit the fund for specific purposes. Councilmember Nestande moved to waive further reading and adopt Resolution No. 2017 - 80. Motion was seconded by Kelly. Mayor Jonathan stated the staff report indicates that the fiscal impact is unknown and whether it will cover all expenditures for cannabis -related activities. Mr. Espinoza agreed, but even if money doesn't come in, the City still has to fund it somehow. 16 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING DECEMBER 14, 2017 Mayor Jonathan called for the vote and the motion carried by a 5-0 vote (AYES: Harnik, Kelly, Nestande, Weber, and Jonathan; NOES: None). XV. ORDINANCES A. For Introduction: None B. For Adoption: 1. ORDINANCE NO. 1327 - AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, AUTHORIZING IMPLEMENTATION OF A COMMUNITY CHOICE AGGREGATION PROGRAM AND APPROVING THE DESERT CITIES ENERGY CHOICE JOINT POWERS AGREEMENT (CONTRACT NO. C36400) (Continued from the meeting of November 16, 2017). Mr. Stendell noted this item has been continued on numerous occasions, and at this point, the Ordinance has complied with Council's original direction which was to request some changes to the Joint Powers Agreement (JPA) that were taken on a December 5, 2017, action. Since then, he has provided subsequent memos to the City Council alerting them to the draft Implementation Plan, which has been provided by Coachella Valley Association of Governments (CVAG), including answering a few minor questions about rate assumptions. At this time, if there are more detailed questions, both CVAG staff and The Energy Authority's (TEA) consultant were available to answer questions. Staff recommended approval of Ordinance No. 1327. Councilmember Nestande inquired about the exit fee that will be decided in the summer, asking what will happen if financially everything went the wrong way to make the Community Choice Aggregation (CCA) Program viable. Mr. Stendell replied that the exit fee will be an issue today, tomorrow, and next year, because the CPUC (California Public Utilities Commission) sets the exit fee at the beginning of each year and adjustments can be made at midyear. It is something to keep a vigilant eye on, because it can be a budget buster for the CCA. It that happens, the JPA allows the program to pull the plug and to cease all operations, which takes about six months to unwind and everybody can go back to Southern California Edison (SCE), eliminating further exit fees from being charged at that point. He said the exit fee is challenging and it will continue to be, so it's important for the Desert 17 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING DECEMBER 14, 2017 Cities Energy Choice (DCEC) to monitor, including any future CCA in the State. Councilmember Kelly stated some on the Council have asked a lot of questions about the exit fee, and in part, assuming the City moves forward, because residents will automatically be enrolled into this CCA unless they opt out, which meant it can expect questions. In that process of Q & A, she has the impression that things can change significantly as the City moves forward toward implementation. Recognizing the City will have great representation on the DCEC board, would it be feasible to identify a couple of key markers to ensure the full Council receives a status report. The key markers that occurred to her were the following: a) once the exit fee is fixed; b) the time between the PUC and registration of the new CCA; c) when the draft budget is available. These markers will be of interest to residents, so she's hoping it will be feasible for the City Council to receive a status report at those key points. Mr. Stendell agreed, and it could be incorporated into the motion. Councilmember Nestande concurred with including that verbiage to the motion. Mayor Pro Tem Weber stated she still has not seen any evidence from staff that the City has notified residents about this matter, and she has asked about it previously. She said 100% of the people she has spoken with don't know anything about it, and they are very annoyed that they have not been made aware. Mr. Stendell replied that outreach to the community thus far has been fairly mild. Staff posted some topics through the City's social media. However, there are four mandatory notifications for public input that occur before implementation of the CCA, which will start in the spring. It wasn't to say it was enough, because he didn't know how much would be enough, but at this point, Mayor Pro Tem Weber was correct, the City has not gone far and wide with outreach on this project. MS. KATIE BARROWS, Director of Environmental Resources with Coachella Valley Association of Governments, noted Consultant Jeff Fuller from The Energy Authority was present. She said Mr. Fuller is the lead of the excellent team that will be working with CVAG. The Energy Authority is a nonprofit agency that's involved in public power throughout the Country, and they bring a tremendous amount of expertise to the efforts. She is pleased with the due diligence and the thoughtful consideration that this Council has made, which was great, 18 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING DECEMBER 14, 2017 because it's a big learning experience. She said when the City Council asks questions, it's an opportunity for everyone to learn more, and she was grateful for it. She said CVAG has put together an Implementation Plan, which is a required process, and it has a lot of steps in it. That Implementation Plan provides information that identifies that it has an opportunity to provide to the community cost savings on their electricity bill, including choices, which is really what this was all about. She said the JPA was about adding options to have a choice about where the electricity comes from. She appreciated the help from Councilmember Kelly for helping them shape the language that was requested by the Palm Desert City Council in their JPA, which was approved by the Board on December 4, 2017. With respect to outreach to the community, it's a challenge to decide when you actually start going out to the residents before knowing which cities will be participating, but they do have a local marketing team that is starting to reach out to stakeholders, and they will be doing more of it. As mentioned, there is a time frame, and CVAG's goal is to launch the program in the summer of 2018. For the submittal of the Implementation Plan, there is a six-month time period for SCE, and they will provide two notices, 60 days prior to that date, and two notices after. Those are the periods where the resident can decide to stay with the CCA or opt out. But in advance of that, well before those notices go into people's mailboxes, CVAG will be reaching out to the community and working with City staff to get the word out and holding workshops to have residents understand that this was an opportunity and a choice so they can be fully informed. After the first of the year, they will have a website, which is almost ready to be launched, where residents will be provided with the different methods to use to stay in or opt out, such as calling it in, going on online, etc., adding it will be an easy step. Additionally, using examples of other communities and other CCA, the opt -out rate so far is in the neighborhood of 5% or Tess. Therefore, most people like and choose to stick with a CCA program. Responding to the exit fee, she agreed with Mr. Stendell that it's something they are monitoring closely. In fact, last week they attended a SCE hearing about it, and there is a whole proceeding that is going on, and they are engaged in that effort, but at this stage, the exit fee is unlikely to change. Once the amount is announced in January, that's the fee CVAG will be working with for the year, but it's adjusted on an annual basis. She said the fee has not changed for the last couple of years, because the CCA is taking off, adding there are a lot of communities now in the coast like Laguna Beach and Orange County considering the same option, and because of that, SCE is making adjustments with their power purchases. She said there are many changes going on with the exit fee, because it's an issue, including at the State level, in terms of how this whole program 19 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING DECEMBER 14, 2017 is managed to ensure that both customers that stay with Edison and those who participate in a CCA are treated fairly. Additionally, there have been some proposals coming out from the CPUC that might result in some delays in the implementation of these programs, but Palm Desert is in a good position, compared to other communities, because of the work already done in considering this for the City. The fact that the Implementation Plan is drafted and ready for consideration by the CPUC places the Valley in a good position. There again, the local board will have the ability to make decisions that are best for its residents. Mayor Jonathan stated he was very impressed with Mr. Fuller's knowledge and experience in this area, and he has been a huge assistance. He went on to say that if Palm Desert moves forward, the City will have a vote on the JPA, and it's weighted based on population and energy consumption, but he assumes the City will have a representative on that board. If the City chose to have an alternate, he wondered if both the representative and alternate can attend the meetings. Ms. Barrows responded that they would be public meetings that anyone could attend, but the City will be asked to name an alternate in the event that the representative is unable to attend, adding they welcome the participation. Further, in respond to the comment of the weighted vote, she said it is rarely used and it's not going to be the typical case. Councilmember Kelly inquired about the notice that will go to the public, asking if Council will be able to see those while they are in draft form. Ms. Barrows answered yes. Mayor Jonathan added that in addition to the notices, there is marketing firm already engaged, so they will be actively marketing via social media, radio, t.v., etc., to make the public aware that this is coming up. Ms. Barrows explained that by the time they are asked to opt out, residents will have had many opportunities, and they will be working with City staff to tailor the notices to the needs of Palm Desert. Mayor Pro Tem Weber clarified she was not concerned about the CCA's notices to the residents, she was concerned about the City's lack of notice, because residents have no idea that this Council is making a decision on their behalf without them being aware of it, and 20 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING DECEMBER 14, 2017 then they will be required to make a decision on whether to opt out if they don't want to participate. As mentioned previously, all the people she's talked to, of course it's on a billion people or every resident, don't like the idea of Council signing them up for something where they have to late make the time to opt out. She also talked to people who have solar and what they thought about it, but they have already carried out implementing a program to reduce energy consumption, and now the City is signing them up for a program where they will receive a charge that will be distributed among everyone to pay for the consultant. Another item of concern is that the City will have non- elected individuals making decisions on their behalf to go into debt. She said this CCA can vote to have infrastructure or other things, which will then appear on the electric bill as part of their cost, when some have already made efforts by installing solar, smart meters, or other things. Additionally, there is no savings, and it's been spelled out in the paperwork, so really, the City would be buying a choice. The choice is organic, similar to going to a grocery store, where residents are willing to spend more for organic foods to do the right thing, so now the City was trying to spend more so it can have a choice in electricity to reduce greenhouse gas emissions. Again, Palm Desert has already made huge efforts to reduce greenhouse gas emissions, and it has already done its part. She added that because of public pressure, SCE is also purchasing energy from air, water, etc., so the City didn't need to form a CCA to pressure residents even more. Further, she believed it was disingenuous to imply there will be a savings, because the facts have shown and CVAG has commented there won't be a savings. Down the road there may be a savings, but clearly up front, there won't. She said the concept is great, and if it was run solely by Palm Desert where people could face the Council directly, she would be on board, but to have another board making financial decision on behalf of the residents is unfair. She asked if it was the City or the resident that would be required to pay the exit fee. Councilmember Nestande replied that as a homeowner, if she decided to opt out, the exit fee would be on her bill. Councilmember Kelly stated she had some of the same qualms that Mayor Pro Tem Weber has expressed. However, the only way that the City can provide consumers this choice, is through this particular methodology. The CCA has some unquestionably laudable goals, lower expense, and a better and higher percentage of sustainable power, and if that can actually be accomplished, chances are that everyone will be ecstatic. The only question for her, is if it's really practical to expect this to happen. Right now, the paperwork that Council received is predicting that the initial rate for power, which will have a better mix, in terms of the quantity that is sustainable, the 21 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING DECEMBER 14, 2017 initial rate will beat SCE by a narrow margin of 7.1 cents per kilowatt's hour as compared to 7.4. Again, it's a narrow margin, which is why she would like to make sure that if the City moves forward with this, that it stays on top of how the circumstances are changing to see if it continues to make sense. For this evening, she's prepared to give it a chance. Councilmember Nestande offered that the CCA will enter into some Tong -term contract, and if energy prices go down and the City signed up for a $1,000 policy, but now it's only costing $500, the CCA holds the bag for that differential. However, if the City decides to get out of the contract, there will be a lost, so there is a risk. Mayor Jonathan replied there is risk to energy if it's bought on the spot market. The reason CCA's are more competitive, is that they are not tied into Tong -term contracts like utilities that must recover their capital cost. Therefore, that is a competitive advantage for the CCA, and they mostly enter into shorter contracts, but of course, there is always a risk. The cost savings that is projected, historically has materialized. The analysis is conservative and it projects about a 5% cost savings. If it doesn't materialize, and if consumers can get it cheaper through SCE, they can opt out of the CCA and go back to Edison, so he didn't see it as a risk. At the end of the day, if this whole thing went south, the City can pull out of the JPA, adding there is fail -saved mechanisms with regard to cost savings. The voters' representation is an issue that everyone embraces, but he's not as concerned as others, because it is a technique utilized throughout the City's business. He serves on the CVAG Homelessness Committee where he is the City's representative and he makes decision there, just as other Councilmember serve on committees that are regional in nature where the City has a vote by one of its representatives. At the end of the day, this body is answerable to its voters and that representative is answerable to the Council. This process is a good example of it, where there is no formal action that can be taken that bind the City without the City Council's approval, which is why it's discussing it this evening. He said that type of methodology is not at all unusual, not an exemption, in fact, it's the normal mode of doing business. What he loves about the concept, and he's absolutely in agreement with Councilmember Kelly, in that it hopes that all these expectations will materialize, but at the end of the day, this is what the City is going for with the JPA. First, it will provide a choice, in that if they like Edison, they can stay with them. The City is providing the residents with a choice that they currently don't have, which is to go with the CCA. Secondly, there is a modest cost savings. To some people that have an electric bill of $400, $500, $600, or more, a 5% savings is meaningful. Thirdly, the City gets local control, where it has 22 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING DECEMBER 14, 2017 the opportunity to make a variety of choices. Finally, it's an opportunity to increase the use of green energy for those that choose to do it. Consumers will have the choice of going with the same energy mix and having the cheaper savings or choose to not have those cost savings but instead utilize a greater level of green energy than what Edison is using. For those four reasons, he is willing to give it a shot and then proceed very cautiously. He said that at some point Council can consider having an alternate, and because of all the work and research Councilmember Kelly has done on this matter, he would be very pleased if she would accompany him to those board meetings in the future. Mayor Pro Tem Weber disagreed, stating the comparison provided by Mayor Jonathan on voter representation was not apples to apples. She said Mayor Jonathan represents the City on the Homelessness Committee, but this Council voted to spend a certain amount of money on the homeless issue, and the Council is accountable for it, but this JPA organization is a non -elected board. Mayor Jonathan will be representing Palm Desert there, and he was coincidentally elected to the City Council, but the rest of the board members are non -elected by Palm Desert residents, which is a totally different thing, and it was not fair to make that comparison. Secondly, it aggravates her to keep hearing about a savings, when CVAG's own paperwork, at the very beginning indicated there won't be a savings, and when the story keeps changing, she loses confidence in the whole thing. Thirdly, when talking about local control, it's not talking about Palm Desert residents, because it will be controlled by non -elected people who can put the City into debt. She added that once the City commits them to the JPA, then it's between the residents and the CCA residents. In the past Palm Desert talked about starting its own electric company, which she was in favor, but to turn the control of her electricity to other people from other cities made her very uncomfortable. Councilmember Kelly replied that the most current forecasting projects a small savings and when percentages are thrown around, it's important to understand that the percentage applies to approximately half of the electric bill, because half of the bill is for the cost of delivering the power, and that goes to SCE. Therefore, if there is some savings in the power acquisition, the travels of the wires, the percentage applies to that half. The most current forecasting projects a small savings, and it's because of that savings that she was prepared to move forward, but she wants to make sure the City Council continues to get information to stay engaged with the process. The reality is that as the City progresses, if it starts to look like it will be impossible to achieve a savings, there won't be the will to move forward, because everyone comprehends that the vast 23 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING DECEMBER 14, 2017 majority of consumers would not be supportive and would opt out. However, she wants to make sure that as a City, it's current with the information in order to be good participants in that decision making. Responding to question, Mayor Jonathan explained that the board of the JPA is composed exclusively of elected officials from the participating cities, and the simple voting process is one vote for city, but if there is a need to do so, there is a vote based on a weighted energy consumption and calculation. Councilmember Harnik stated she believed the JPA was very similar to the SunLine Transit Committee, the County Transportation Commission, and so many other entities where a city participates to look at things from a regional standpoint, and sometimes the best results are not achieved when the approach is done in a very parochial fashion. She was in agreement with the City Council receiving updates. She added that even if the City was just breaking even, the local control and influence Palm Desert may have in doing the right thing, was worth pursuing. Although this City has already done many great things for the environment and clean energy, it's not the time to stop, because the City can influence power generation through this JPA and CCA process. It's also nice knowing that on your electric bill, you will see a section that indicates grant funds that the City will be able to use for people who have special needs and may need to have their costs offset. That is just one example of how those funds can be used. If joining the JPA winds up being something that is not in the best interest of the community, there is no question that the City will opt out. Mayor Pro Tem Weber said she understood why Councilmember Harnik was trying to tie this to SunLine, in that they decide on the best buses for the community, but SunLine didn't make all of the residents sign up without their knowledge to anything where they have to pay. She asked for further clarification, on whether it was true or not that the CCA, as an organization or board, can vote to go out and create an infrastructure to produce better electricity, subjecting everyone in the CCA to that debt. Mr. Stendell concurred, stating it was issue addressed in a previous staff report. He said the CCA does have bonding capacity subject to the approval of the DCE Board. Mayor Pro Tem Weber remarked that SunLine didn't do that to the residents, and the CCA would. Again, without the residents being able to elect those people serving on that board. She understood Councilmembers were minimizing that aspect, but it's a significant 24 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING DECEMBER 14, 2017 part of this whole thing, because the CCA can put the residents in debt, which she thought was inappropriate. Even though residents may be in favor, she believed they had the right to know before the fact. Councilmember Kelly moved to waive further reading and adopt Ordinance No. 1327, with instruction to staff to ensure the City Council receives a status report at major milestones, including: a) When the exit fee is determined; b) after the Public Utilities Commission (PUC) Certification, but before registration as the CCA; c) when the draft budget becomes available. Councilmember Harnik stated Mayor Pro Tem Weber's concerns should be addressed, suggesting that the City Council have discussions before those meeting at the JPA, and talking about how the representative will be representing the City. Councilmember Kelly replied she appreciated the intention, but she wasn't sure it could be accomplished with the current language in the Ordinance. Perhaps, as a team, it had to acknowledge this was a topic of interest and to look to the designated representative to keep the City Council informed beyond the list she provided. Frankly, she didn't know how it would be feasible for the designated representative to present all agendas to the City Council prior to a meeting. Councilmember Harnik agreed, inquiring how often would this JPA meet. Mayor Jonathan responded that initially it's monthly. He proposed revisiting this topic and perhaps even requiring that any binding vote that would create debt would have to come before the full City Council for approval, but all these concerns can be addressed separately. He suggested adding a fourth item that includes any other threshold or markers the City may warrant. Councilmember Kelly agreed, stating she's counting on the City's representative working with staff to identify any other major steps for which new information comes to Tight that warrants the City Council's attention, adding her list was a minimal list and not a maximum one. Councilmember Harnik seconded the motion, including Mayor Jonathan's suggested addition: d) any other thresholds or markers that warrant the City Council's attention. Mayor Jonathan called for the vote and the motion carried by a 3-2 vote (AYES: Harnik, Kelly, and Jonathan; NOES: Nestande and Weber). 25 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING DECEMBER 14, 2017 Councilmember Kelly stated she liked the idea suggested by Mayor Jonathan that the City's representative would not authorize any debt without bringing the issue back to the full Council, asking if that was something that will be pursued separately. Mayor Jonathan answered yes, stating he believed Council was asking staff to consider some of the issues and concerns that were brought up this evening and return with a staff report on how it might proceed. Ms. Aylaian replied that when the City Council appoints their liaison in the annual process, there can be discussion about the role and tasking for this particular representative. Mayor Jonathan added that separately from the appointments of the alternate and liaison to the JPA, staff can address some of these other concerns that have been discussed that are not directly related to the representation. Ms. Aylaian agreed to address them. Mayor Jonathan congratulated everyone, in that the City was now a member of the JPA, and he looked forward to hopefully realizing some of the hopes and expectations. He thanked Mr. Stendell for being at every meeting and for going through all sorts of technical documents, stating it was appreciated. Mayor Jonathan called for a dinner recess at 6:11 p.m., and he reconvened the meeting at 6:45 p.m. 2. ORDINANCE NO. 1332 - AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, APPROVING AMENDMENTS TO PALM DESERT MUNICIPAL CODE CHAPTER 5.10 - SHORT-TERM RENTALS IN REGARDS TO ENFORCEMENT, OPERATIONAL STANDARDS, COMMUNICATION, AND ZONING REQUIREMENTS FOR SHORT- TERM RENTALS WITHIN THE CITY OF PALM DESERT, INCLUDING ELIMINATION OF CERTAIN SHORT-TERM RENTALS IN R-1 AND R-2 ZONES. Associate Planner Kevin Swartz noted this was the second reading of the Ordinance, and the only change from the last meeting was in regard to the sunset date for all existing permits within the R1 and R-2 Zones from July 1, 2019, to December 31, 2019, and that change has been made. If the second reading is adopted, the Ordinance will take 26 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING DECEMBER 14, 2017 affect on January 13, 2018. Staff recommended adoption of the second reading. Mr. Hargreaves stated he would like to explain the process going forward should the City Council adopt the proposed Ordinance this evening. The Ordinance will become effective in 30 days, and at that point, people with a short-term rental permit in the R1 and R2 Zones, would sunset on December 31, 2019. The City also put in place a process to ensure that property owners have an opportunity to recoup reasonable investment in their property, so it could be that those two years are not long enough depending on circumstances, and that process is referenced in the Ordinance about additional renewals based on unconstitutional takings. He added that if the Ordinance is adopted, staff will come back to the City Council early next year with a more detailed procedure for making those applications and going through that process. The process will entail making or showing a certain amount of investment in the property and not having the opportunity to recoup it in the next two years. There will be a hearing process, so property owners have an opportunity to make an argument to the City for a longer period than the two years. Mayor Jonathan called for public testimony at this time. The following individual spoke in OPPOSITION to Ordinance No. 1332 to eliminate and phase out short-term rentals in the R1 and R-2 Zones for various reasons that included not giving enforcement a chance; STRs are revenue generators; retaining the City of Palm Desert's image as a world class City destination; absence of an Economic Impact Study on STRs, Ordinance punishes good operators; illegal rentals are the ones causing problems; City will lose Transient Occupancy Tax (T.O.T.), ban will impact the City and residents financially, make STRs go underground, affect their business, and affect good guests that have visited Palm Desert for years; improvements to a STR increase property value; STRs add value to communities; unfair to take -away licenses from people who invested in their home in good faith; City will lose tourism dollars, should provide enforcement by pulling permits from violators; ban affects the people they employ; sunset clause is unfair; lack of proper notification; sunset clause is draconian, Ordinance does not grandfather existing permits, and the City let residents down by not enforcing its rules and regulations and is now punishing responsible operators and business owners: MR. BRETT MITCHELL, Wise Investments, Wilshire Blvd., Los Angeles MR. FRED PORT, Masson Street, Palm Desert MR. DEAN SCHUMAN, Beavertail, Palm Desert MR. DANIEL O'BRADY, Tampico Drive, Palm Desert MS. ATHENA MARTINEZ, Tampico Drive, Palm Desert 27 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING DECEMBER 14, 2017 MS. MEG FIRESTONE, El Paseo, Palm Desert MS. MARGIE THOMAS, Ilinois Street, Palm Desert MS. GALINA JOVOVIEN-LOGINOVA, Homestead Road, Palm Desert MR. PATRICK TAYLOR PERCOSKI, Juniper Street, Palm Desert MR. CRAIG JACOBSON, Juniper Street, Palm Desert MS. LESLEY MILLER, Goldflower Street, Palm Desert MR. JORDAN ARMITAGE MS. TRACEY JACKSON, Juniper Street, Palm Desert MS. MARY REPP, Florida Avenue, Palm Desert MR. ED BORQUEZ, Golden Court Drive, Indio MS. LAURIE LANG, Skyward Way, Palm Desert MS. KATHERINE KAY, Palm Desert MR. DUKE WYATT, Palm Desert MR. GERRY WASHACK, Pitahaya Street, Palm Desert MS. SHANYCE WASHACK, Pitahaya Street, Palm Desert The following individuals spoke IN FAVOR of Ordinance No. 1332 to eliminate and phase out short-term rentals in the R1 and R-2 Zones for various reasons that included protecting residential neighborhoods; elimination of party houses; enforcement didn't work; City Council found a solution that was both fair and balanced at the last meeting; preserving the quality of life; restoring residential neighborhoods; City's hotline and enforcement were not sufficient to deal with STRs; dealing with strangers on a weekly basis; STRs are not compatible with R1 and R-2 Zones, City Council reached a true compromise, Ordinance will prohibit STR business/industry in residential areas, STRs are a violation of their zoning; interruption of the peace and quiet of their neighborhood; STRs devalue properties, difficult to sell a home next to a STR; too many STRs in one area, Tong -term residents become STR enforcers, STRs created unintended consequences; over booking of guests; residents are tired of the harassment that STRs are causing, and they support the sunset clause: MR. JIM KANE, Skyward Way, Palm Desert MS. CHRISTEL M. PROKAY, Siesta Trail, Palm Desert MR. TIM SULLIVAN, Deergrass Drive, Palm Desert MS. DONNA AULT, Haystack Road, Palm Desert MR. BRUCE POYNTER, Calliandra Street, Palm Desert MR. JOHN CURRAN, Somera Road, Palm Desert MS. CATHY FORRISTER, Calliandra, Palm Desert MR. VAN TANNER, Cricket Cove, Palm Desert MS. JANN BULLER, Somera Road, Palm Desert MS. DEBRA VOGLER, Shadow Mountain Drive, Palm Desert MR. DAVID TOLTZMANN, Bursera Way, Palm Desert MR. PAUL MURPHY, Skyward Way, Palm Desert MR. SHERYLEN YOAK, Siesta Trail, Palm Desert MS. SUSIE PEAT, Willow Avenue, Palm Desert 28 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING DECEMBER 14, 2017 MS. DENISE TOLAND, Buckboard Trail, Palm Desert MS. PATTY KAISER, Grapevine Street, Palm Desert MR. CARL KAISER, Grapevine Street, Pam Desert MR. TIM SKOGEN, Skyward Way, Palm Desert MR. ROBERT KANE, Skyward Way, Palm Desert MR. STEVE NASH, Willow Street, Palm Desert MR. SAM HOOVER, Palm Desert MR. ROBERT AULT, Via Arecio, Palm Desert MR. VINCE HEURING, Pinyon Street, Palm Desert MR. ARTHUR MICHIE, Silver Spur Trail, Palm Desert MR. JIM PEARCE, Country Club Drive, Palm Desert MR. SHERRELL SUTHERLAND, Broken Arrow Trail, Palm Desert Mayor Jonathan called a recess at 8:29 p.m., and he reconvened the meeting at 8:36 p.m. Mayor Pro Tem Weber stated she was not against restoring the residential areas, the issue for her is not providing the people who purchased their property that hold a short-term rental permit to be grandfathered, giving them an opportunity to do whatever they want to do. She said it's been noted that complaints were caused by people who did not have permits, so they were already law breakers. Therefore, law breakers will be determining what the City Council will decide this evening, and she didn't think it was an appropriate way to handle it. Also, the definition of short-term rentals is either 27 or 28 days, which will exclude people that want to rent for one, two, or three weeks, adding that Council heard testimony from people who rented for weeks and then decided to purchase a home. The proposed Ordinance includes a sunset ending on December 31, 2019, and she would like Council to consider changing it to grandfathering existing permits, because she firmly believed that with the changes going on in today's world, hotels will take over these weekender groups, and after a short period of time, STRs will phase out. She believed many residents weren't even aware they had a STR next door, because those are the ones that are successful. She added that the City was not enforcing, so when she hears people say it doesn't work, that's because it didn't exist. She couldn't make a decision for the future based on something that was not in place in the past. Therefore, she would rather make a decision on something the City is going to enforce with a heavy hammer by issuing a fine and/or shutting them down. It won't be a matter of five years of suffering anymore, it's a matter of one or two weekends of violations, and then they are out, which is something the City can do and it should be doing. Councilmember Nestande pointed out that the City Council represents 50,000 residents of Palm Desert and clearly not all of them are 29 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING DECEMBER 14, 2017 present or submitted letters. However, she is doing her best to try to find a middle ground where all can coexist. There is no perfect world or utopia, and her definition of a neighbor might be different from others, and as a Councilmember, she couldn't make that definition of what a neighbor is for all. However, she will try her best to make sure the City doesn't let the residents down, because what she's hearing is that it has, in terms of enforcement. She said the City has allowed bad STR operators ruin it for everybody. She noted she sat on the Task Force since January, and it came up with a really good plan where there was going to be strict enforcement, best neighbor practices and policies that many speakers mentioned, and the City was going to implement some type of density cap. She even recalled the City Attorney saying it could be done based on a census tract and determined a 5% density on STRs. She believed those were great ideas and the City was moving in that direction and suddenly that changed somewhere along the line. Bottom line is she thought the City was going to give enforcement a try, including limiting the number of STRs so that neighborhoods would not be overrun by them Councilmember Kelly acknowledged there are very good people on both sides of this issue, which was clearly evident, but her job was to also be future looking and responsive to today's citizens, including how to plan for Palm Desert residents 10, 20, or 50 years down the road. She remains convinced that the solution struck by the City Council at the last meeting is the best way to plan for Palm Desert's future. She simply heard, not just this evening, but as she takes her morning walk where too many terrific people in the R-1 and R-2 neighborhoods insisting they will flee if this situation doesn't change, and they will do so because it's no longer an attractive place for them to live. The City doesn't have the capacity to become full-time property managers to make STRs compatible with the use in the R-1 and R-2 neighborhoods. In looking to the future, striving to make sure the City has a good choice of housing options for tomorrow's residents, for the people it wants to attract to live and work in a broader -based economy full time, she's convinced this is a step it needs to take. As the City Attorney explained, the City will have a process to try to deal with the impacts as fairly as possible. Councilmember Kelly moved to waive further reading and adopt Ordinance No. 1332. Motion was seconded by Harnik. Councilmember Harnik stated that Councilmember Kelly made great points, and in listening to both sides, it made her sad that there are sides, in that some residents have taken barricades on roads, yet these are neighbors that you may have to borrow a cup of sugar or ask to call 911. She has listened to the Shuman's and Washack's 30 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING DECEMBER 14, 2017 who are responsible individuals and have done their best to make a good living for themselves in Palm Desert and have been responsible STR owners. This is a tough decision, and to Councilmember Kelly's point, staff cannot be full-time property managers, because that's not how the City was set up, adding it did not have the capacity or the ability, yet that's what's expected. She believed this was not the end of this process or the ultimate ordinance, because there will be little changes, polishing, etc., needing to be addressed. Her greatest hope is that in nine months they will learn things to make it better. When the City Council is presented with a stack of pink and blue papers representing those in favor or against this issue, to her they are just papers, because this City Council has met with so many individuals, read hundreds of emails and letters, and has heard hours of testimony. Everyone has heard this was a worldwide issue and it's not just happening in Palm Desert, but she believed she had to respect and uphold the City's sanctity and the fabric of the residential neighborhoods, stating they will become a premium. This evening she was prepared to move forward with a vote. Mayor Jonathan thanked Mr. Swartz for doing an admiral job of navigating this issue for the City and engaging the residents and moving this through the process. Secondly, he spoke earlier about committees/commissions, stating this was a process that started with an ad hoc committee, so he wanted everyone to know the City Council will be conducting its annual committee/commission interviews in January, and if anyone was interested and wants to remain engaged, he invited them to apply. The challenge with this issue of STRs, is that none of the comments heard were unreasonable, because they all resonated with him. It's a challenge, because there is no way that everybody is going to get what they want, and no matter what is decided this evening, someone is going to be adversely affected. He said he had to step back to take the 20,000-foot view, and in looking at this issue, not so much from a personal level but from a policy standpoint. By moving forward with the proposed Ordinance, the City will be accomplishing two things: 1) Striking a reasonable balance, because it's only eliminating about 20 to 22 percent of the STRs in the City, leaving nearly 80% of them intact. It may also eliminate about 100% of the problems or issues, because the City is not receiving complaints from Planned Residential Zones about STRs; 2) whether you agree or not, Council is defining its City. In spite of modern developments, which he embraced, because he utilizes short-term rentals, they do impact and shape the community in which they are in. The City Council is taking a step this evening to define the City, and to say it's antiquated, residents like traditional neighborhoods. Therefore, Council would be protecting the traditional neighborhoods in the R-1 and R-2 Zones, while allowing 31 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING DECEMBER 14, 2017 80% of STRs to remain. He said this was an Ordinance, from a City policy standpoint, that makes a lot of sense. Councilmember Nestande noted she serves on the Marketing Committee and the emphasis is always on El Paseo, and what the City can do to make it a more high -profile destination area. It's where the City spends thousands of dollars for Fashion Week and Food & Wine events, to put it on a world stage, because tourism is the City's economy. She wished the City could build an Amazon out here in the Desert instead of New Mexico or Texas, but that's more of a State issue and tax policy than it is a City issue. However, Palm Desert does have tourism, which is the backbone. She's wondering what will happen to the City's identity and what it will do to El Paseo. She's not saying that the City should allow south Palm Desert or allow R-2 neighborhoods to be taken over by STRs, she was suggesting a 5% density, which could be livable, but getting rid of the bad apples first. Even if the City adopts the Ordinance this evening, it's still putting the residents through a long two years if it's not going to correct the enforcement, because it's not capable. She reiterated the City needed to give enforcement a chance and it should have good -neighbor policies in place. Councilmember Kelly stated that any enforcement was dependent upon neighbors, and once there is a bright line indicating that there are no new STRs that are permissible and that existing ones are phasing out, it becomes much easier for neighbors to know when there is something that warrants contacting the City. She wasn't contending the City doesn't have a role to play in enforcement or that it didn't have the capacity to engage in enforcement, only observing the it couldn't add a department so as to assure the proper reign of STRs into the future indefinitely, because it was impractical. She added that every person here this evening knew how important El Paseo is to Palm Desert, and they support taking steps to maximize the effectiveness of El Paseo Merchants. She went on to say the City spends a lot of its time focused on how to do it, but she didn't want to be perceived that this is a case of some people caring about El Paseo and others not, because there can be legitimate differences of opinion about how to most effectively nurture the tourism and how to nurture an environment for full-time residents who will also frequent the businesses. Mayor Pro Tem Weber responding to Councilmember Kelly's comment that she was future looking, but the 2012 Council did exactly that when they had homes that were in trouble and sitting empty. They looked to the future and considered what to do about the economic problems and decided to allow STRs. It would have been 32 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING DECEMBER 14, 2017 very nice if a sunset was placed on them at that point, and this Council would not be facing this issue, including enforcement, fees, or fines. Today, Council is listening to emotional experiences due to lack of enforcement, which she couldn't apologize enough for it, because it was the City's fault, it failed. The City now plans to have enforcement in place, but it hasn't been tried. She agreed the City couldn't be full-time property managers, but again, enforcement was not in place. It's very shocking to operators the first time they do something wrong and have to pay a giant fine, and then they realize they can lose a permit, which she believes will get their attention. It can't make up for the pain and suffering that residents have gone through, which she understood, but it can implement enforcement for these nuisances to stop. Out of respect to those people who purchased property and improved them, and planned for their future for retirement, it seems the City should at least give them the opportunity to grandfather out. She has no problem restoring the areas to residential, but as a courtesy to the ones who took the time to improve the property, the City should at least allow them to grandfather out, instead of saying to them to sell their property and move on. She added that STRs is a phenomenon that will go away, because Airbnd and VRBO are building their own areas, but in the meantime, it's disrespectful to those owners who planned ahead based on what the City promised them in 2012. However, she understood that if she made an amendment to the motion, it will change everything. Councilmember Harnik replied there is not a motion that will fix everything where everybody is going to be happy. She agreed there will be two difficult years as STRs phase out, but hopefully, the City will see enforcement take effect and ease some of the problems moving forward. Additionally, the City has not taken away the ability in the R-1 and R-2 Zones to rent for 28 days or greater, so that option still exists. She shared she has lived in this Valley for a long time, and it is a retirement community, second -home community, and also to many young families, which is represented well by the number of schools and colleges. Therefore, it's not only tourism that Council is basing its future, as pointed out by Ms. Vogler or as mentioned in an article in The Desert Sun, the City needs to broaden its economic base. She said the City cared about tourism, the Westfield Mall, events, parks, etc., stating they are all important and Council doesn't want to see any of those things fail. Mayor Jonathan called for the vote and the motion carried by a 3-2 vote (AYES: Harnik, Kelly, and Jonathan; NOES: Nestande and Weber) 33 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING DECEMBER 14, 2017 3. INTERIM URGENCY ORDINANCE NO. 1333 - AN INTERIM URGENCY ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, MAKING FINDINGS AND EXTENDING A TEMPORARY MORATORIUM ON THE ISSUANCE OF SHORT-TERM RENTAL PERMITS ONLY IN R-1 AND R-2 ZONES FOR UP TO AN ADDITIONAL YEAR, Case No. ZOA 16-364. Associate Planner Kevin Swartz stated that based on City Council action of adopting the new Short-term Rental Ordinance, which becomes effective January 13, 2018, and with the existing moratorium that's been in place since January 2016 for not issuing any permits and expires January 10, 2017, it leaves a three-day gap. Part of the new Ordinance is to prohibit new Short -Term Rentals (STRs) within the R1 and R-2 Zones, so this Urgency Ordinance would cover that gap. He went on to say that individuals could come in on January 10, 2018, and obtain a short-term rental for all other zones, but not within the R-1 and R-2 Zones, which is consistent with the new Ordinance. Staff recommended the City Council adopt the Urgency Ordinance. Mayor Pro Tem Weber asked if staff was extending the moratorium from January 10 to January 13. Mr. Swartz answered yes. Mayor Jonathan said he thought the recommendation was broader and could be extended for a period not exceeding one year. Mr. Swartz explained that staff inserted the one-year clause in case the last item on the agenda went back and forth, but since Ordinance No. 1332 was approved and becomes effective January 13, this Urgency Ordinance would end when the new Ordinance goes into effect. Mr. Hargreaves added that the recommendation is to extend until Ordinance No. 1332 becomes effective or a maximum of one year. The concern is that if there is litigation or a filing for an injunction, it could block implementation of the current ordinance and there wouldn't be a moratorium in effect to block any new STRs in the R-1 and R-2 Zones. Therefore, the Moratorium is focused on new STRs in the R-1 and R-2 Zones, and it will be in place up to a year or until the new Ordinance goes into effect on the anticipated date of January 13, 2018. Mayor Pro Tem Weber pointed out that January 13 is a Saturday. Mr. Hargreaves replied that the City would not be issuing permits on a Saturday or Sunday. 34 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING DECEMBER 14, 2017 Mr. Stendell added that the City would not want to certify a piece of mail that lands on the doorstep on January 13 or leave any windows open, stating the Urgency Moratorium will cover the three-day gap or any potential litigation. Responding to question, Councilmember Kelly noted that the language that Mayor Jonathan was looking for was on page two of the Interim Urgency Ordinance, Section 1(a). Councilmember Kelly stated that unless something unforeseen happened, this Urgency Ordinance was a back-up plan. Mr. Hargreaves stated that if there was a citizen referendum where people go out and collect enough signatures, and they have a 30-day window to do it, it would put the new Ordinance on hold until it went through that process, leaving that gap open. If the Moratorium expires and the new Ordinance isn't in effect, then there is a window there where people could arguably get new permits in the R-1 and R-2 Zones. Mayor Pro Tem Weber offered that the Urgency Ordinance is going to be extended until such time that Ordinance No. 1332 goes into effect, and if it doesn't, the Interim Urgency Ordinance No. 1333 extends it to at least a year. Mr. Stendell concurred. Councilmember Harnik moved to waive further reading and adopt Interim Urgency Ordinance No. 1333. Motion was seconded by Kelly and carried by a 4-1 vote (AYES: Harnik, Kelly, Weber, and Jonathan; NOES: Nestande). Later in the evening, just prior to adjourning the meeting, Councilmember Nestande requested to change her vote to a "Yes," to show solidarity, and with City Council concurrence, the vote was changed to 5-0 (See Section XX - Adjournment). For the purpose of clarification the motion is as follows: Councilmember Harnik moved to waive further reading and adopt Interim Urgency Ordinance No. 1333. Motion was seconded by Kelly and carried by a 5-0 vote (AYES: Harnik, Kelly, Nestande, Weber, and Jonathan; NOES: None). 35 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING DECEMBER 14, 2017 XVI. NEW BUSINESS A. REQUEST FOR ADOPTION OF RESOLUTIONS, INITIATING PROCEEDINGS TO LEVY PROPOSED NEW OR INCREASED ASSESSMENTS, APPROVING THE ENGINEER'S REPORT, AND DECLARING INTENTION TO BALLOT PROPERTY OWNERS FOR THE PROPOSED NEW OR INCREASED ASSESSMENTS WITHIN PALM DESERT LANDSCAPING AND LIGHTING DISTRICT NO. 1, LOCAL LANDSCAPING ZONE 8, PALM GATE, FOR FISCAL YEAR 2018-2019. Landscape Supervisor Randy Chavez noted the staff report, which was a culmination of work done by staff with property owners of the Palm Gate Assessment District. The District is underfunded, so staff found a way to mitigate the issue to essentially get them back on track to a level where the City could perform maintenance to a standard level. A formal survey was sent out to engage the interest of the owners, and the majority of them responded in favor of an increase. Approval of the proposed resolutions allows staff to formally ballot the property owners. Councilmember Harnik moved to waive further reading and adopt: 1) Resolution No. 2017 - 81, initiating proceedings to levy proposed new or increased assessments for Palm Desert Landscaping and Lighting District No. 1, Local Landscaping Zone 8, Palm Gate, and ordering the engineer to prepare and file an Engineer's Report; 2) Resolution No. 2017 - 82, approving the Engineer's Report regarding proposed new or increased assessments within the Palm Desert Landscaping and Lighting District No. 1, Local Landscaping Zone 8, Palm Gate, for FY 2018-2019; 3) Resolution No. 2017 - 83, declaring intention to ballot property owners for proposed new or increased assessments within Palm Desert Landscaping and Lighting District No. 1, Local Landscaping Zone 8, Palm Gate, for FY 2018-2019, setting a time and place for a public hearing, and authorizing staff to proceed with the balloting procedures. Motion was seconded by Weber. Councilmember Kelly noticed that 15 or 16 property owners responded to the informal survey out of 37. In the context of formal voting, will there be some communication to ensure the owners understand what's at stake. Mr. Chavez replied staff received late surveys' from owners, and they indicated they were in favor of the increase. Additionally, if staffs recommendations are approved, they plan to have another community meeting with the owners to bring them up to speed. He has received a couple of emails asking where they were in the process, but the Engineer's Report took some time. Councilmember Kelly thanked staff for all their efforts. Mayor Jonathan called for the vote and the motion carried by a 5-0 vote (AYES: Harnik, Kelly, Nestande, Weber, and Jonathan; NOES: None). 36 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING DECEMBER 14, 2017 B. REQUEST FOR APPROVAL OF PAYMENT TO THE COACHELLA VALLEY WATER DISTRICT (CVWD) FOR CONSTRUCTION OF THE FOURTH DOMESTIC WATER WELL SITE AT DESERT WILLOW GOLF RESORT, PURSUANT TO THE 1996 DOMESTIC WATER AND SANITATION AGREEMENT. Mr. Alvarez noted the staff report, stating approval will allow the City to fulfill the requirements of the 1996 Domestic Water and Sanitation Agreement entered in by the former Redevelopment Agency. Prior to the dissolution of the Redevelopment Agency, these funds and bond funds were set aside. The City now has the ability to move forward, and this will be for the fulfillment of the fourth well site required under the Agreement. The other well sites have already been constructed and paid for, and this merely fulfills the requirement for moving forward. In the staff report, there is a map that shows the locations of existing wells and the one being constructed, stating these wells will facilitate the current development center there along with future developments that occur for the Master Plan for Desert Willow. Councilmember Kelly moved to, by Minute Motion: 1) Approve payment to CVWD in the amount of $667,245 for the construction of the fourth domestic well within the Desert Willow Master Plan; 2) appropriate $667,245 to Fund 451 - Capital Projects (Bond Funded). Motion was seconded by Nestande and carried by a 5-0 vote (AYES: Harnik, Kelly, Nestande, Weber, and Jonathan; NOES: None). XVII. CONTINUED BUSINESS None XVIII. OLD BUSINESS None XIX. PUBLIC HEARINGS A. CONSIDERATION OF MAKING CERTAIN FINDINGS PURSUANT TO GOVERNMENT CODE SECTIONS 66000-66008, RELATING TO THE DEVELOPMENT IMPACT FEES ANNUAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2017. Ms. Moore explained that every year the City is required to file a report that includes the Development Impact Fees collected during the year, expenditures against those fees, make findings for any moneys that is still on deposit, and after a period of five years, make findings that are required for future expenditures. 37 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING DECEMBER 14, 2017 Mayor Jonathan stated the report shows an ending balance of various restricted funds, their intended uses, and commitments, but he didn't see that on page 4 of 8, the New Construction Tax Fee, stating all others show what's in them and what the commitments are, which is the purpose of this exercise. Ms. Moore agreed, but only if the commitment is older than five years. On page 4 of 8, the New Construction Tax, the City doesn't have anything that's greater than five years. She confirmed the City was not required to disclose or quantify commitments and/or justify the amounts in those funds. Mayor Jonathan called attention to page 6 of 8, where part of the commitment is the skate park conversion to a pavilion. Ms. Moore replied it was for the skate park at Freedom Park, and it's the remainder of some of the work that needs to be done, which was still in progress. Mr. Stendell added it was part of the retrofit of the pickleball facilities, which has been morph into one big project. Mayor Jonathan declared the public hearing open and invited testimony on the matter. With no public testimony offered, he declared the public hearing closed. Councilmember Harnik moved to waive further reading and adopt Resolution No. 2017 - 84, accepting the report and making certain findings pursuant to California Government Code Sections 66000-66008. Motion was seconded by Nestande and carried by a 5-0 vote (AYES: Harnik, Kelly, Nestande, Weber, and Jonathan; NOES: None). B. REQUEST FOR COMMENCEMENT OF THE COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FISCAL YEAR 2018-2019 GRANT APPLICATION PROCESS AND FOR DEVELOPMENT OF THE FIVE-YEAR CONSOLIDATED PLAN FOR FISCAL YEARS 2018-2019 TO 2022-2023 AND ONE-YEAR ACTION PLAN FOR FISCAL YEAR 2018-2019. Ms. Riddle stated this year the City needed to develop the Five-year Consolidated Plan for the Community Development Block Grant (CDBG) Program, which is the long-range plan to identify objectives and goals for the City to carry out to address the needs within the community. Primarily, the CDBG Program is to address the needs of low-income, blight, emergency disasters, and things of that nature. In addition, the City needs to undertake the Action Plan for Fiscal Year 2018-2019, which specifically identifies programs and projects the City chooses to fund to meet those identified goals and objectives within the Consolidated Plan. 38 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING DECEMBER 14, 2017 Councilmember Harnik shared that every year the City goes through this exercise where it's not sure if it's going to get the funds, stating that it wasn't unique to the current President, but it just keeps happening. Ms. Riddle replied it appeared it will continue, however, last year it did receive an increase, which was very surprising. Mayor Jonathan declared the public hearing open and invited testimony on the matter. MS. BEVERLY GREER thanked the City Council for the support its given to the Stroke Recovery Center over the years and now the Neuro Vitality Center. They will be celebrating their 40'h birthday in March where they have been serving low-income and seniors over the years. They are now moving toward Parkinson's and other more devastating neurological diseases and including them in their rehabilitation, and they support Palm Desert homebound seniors through the Meals on Wheels Program at the Joslyn Center. They are deeply entrenched in Palm Desert, and they appreciate all the help they receive from the City over the years. The City awarded them some monies to do some renovations, and for next year, they will be asking for a smaller amount to continue that project to do the painting in the amount of $20,000. MS. LAURA NACHISON, Senior Grant Writer for Desert Aids Project, stated that as a resident of Palm Desert, it was impressive to watch the City Council address important issues this evening and to observe the process. The Desert Aids Project (DAP) commends the City for its commitment to develop a Needs Assessment and for implementing the CDBG Program. It's well known that the Coachella Valley has one of the highest HIV rates in Riverside County, and through DAP and Department of Social Services, communities benefit from the health and well-being of the entire Coachella Valley, including Palm Desert. She said DAP is grateful for the support of the CDBG Program on many of their projects, including their latest one, as they move into the second to the last phase of their Emergency Preparedness Generator Project. It's been a pleasure to work with the City's Department of Special Programs, and this is the year they will plot the generator. This project required a lot of electrical work and when she brings forth their proposal, she will provide a beautiful schematic. With an emergency generator and as a Federally qualified health center, DAP is capable of providing disaster related medical care and shelter to the general community. This generator project will help implement Palm Desert's City Plan to assure access to affordable healthcare and to implement the Emergency Preparedness element to minimize damage and loss. Mayor Jonathan opened the CDBG application Process for FY 2018-2019, and left the public hearing open. 39 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING DECEMBER 14, 2017 C. CONSIDERATION OF THE ESTABLISHMENT OF CERTAIN EMERGENCY MEDICAL SERVICES COST RECOVERY FEES IN THE CITY OF PALM DESERT. Ms. Carney requested continuing this item to the meeting of January 11, 2018. Mayor Jonathan declared the public hearing open and invited testimony on the matter, and left the public hearing open. Councilmember Harnik moved to continue the item to January 11, 2018. Motion was seconded by Nestande and carried by 5-0 vote (AYES: Harnik, Kelly, Nestande, Weber, and Jonathan; NOES: None). XX. ADJOURNMENT Councilmember Nestande stated she wished to change her vote to a "Yes" on the Urgency Moratorium to avoid chaos and to show solidarity in the event the City receives a lawsuit. Mr. Hargreaves requested that the record show a 5-0 vote as requested by Councilmember Nestande. Mayor Jonathan asked if there were any objections, and there were none. Ms. Rocha duly noted the change and agreed to make the revision accordingly to Item XV-B3 Interim Urgency Ordinance No. 1333 to reflect a 5-0 vote. With City Council concurrence, Mayor Jonathan adjourned the meeting at 10:03 p.m. ` ATTEST: SABBY JONATHAN, MAYOR GR CE L. ROCHA, ACTING CITY CLERK CITY OF PALM DESERT, CALIFORNIA 40