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HomeMy WebLinkAbout2018-08-23MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING THURSDAY, AUGUST 23, 2018 CIVIC CENTER COUNCIL CHAMBER 73510 FRED WARING DRIVE, PALM DESERT, CA 92260 I. CALL TO ORDER - 3:00 P.M. Mayor Jonathan convened the meeting at 3:00 p.m. II. ROLL CALL Present: Councilmember Jan C. Harnik Councilmember Kathleen Kelly Councilmember Gina Nestande Mayor Pro Tem Susan Marie Weber Mayor Sabby Jonathan Also Present: Lauri Aylaian, City Manager Carlos Campos, Acting City Attorney Rachelle D. Klassen, City Clerk Lori Carney, Director of Administrative Services Russell Grance, Director of Building & Safety Ryan Stendell, Director of Community Development Martin Alvarez, Director of Economic Development Janet M. Moore, Director of Finance/City Treasurer Tom Garcia, Director of Public Works Stephen Y. Aryan, Risk Manager John Cortez, Battalion Chief, Palm Desert Fire/Riverside Co. Fire Dept./Cal Fire Lt. Matt Martello, Asst. Chief, Palm Desert Police/Riverside Co. Sheriffs Dept. Grace L. Rocha, Deputy City Clerk III. ORAL COMMUNICATIONS - A (CLOSED SESSION ITEMS) None IV. ADJOURN TO CLOSED SESSION Request for Closed Session: MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 23, 2018 A. Conference with Real Property Negotiator pursuant to Government Code Section 54956.8: 1) Property: 73111 El Paseo (SEC El Paseo/Ocotillo Drive) (APNs 627-232-006, -009) Negotiating Parties: Agency: Lauri Aylaian/Martin Alvarez/City of Palm Desert Property Owner: Bernard Debonne Under Negotiation: x Price x Terms of Payment 2) Property: 54330 Ocotillo Drive (NEC Ocotillo Drive/ Tumbleweed Lane) (APN 627-232-006) Negotiating Parties: Agency: Lauri Aylaian/Martin Alvarez/City of Palm Desert Property Owner: City of Palm Desert 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 With City Council concurrence, Mayor Jonathan adjourned the meeting to Closed Session of the City Council at 3:01 p.m. He reconvened the meeting at 4:01 p.m. V. RECONVENE REGULAR MEETING - 4:00 P.M. A. REPORT ON ACTION FROM CLOSED SESSION. None VI. PLEDGE OF ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA - Councilmember Kathleen Kelly VI1. INVOCATION - Mayor Sabby Jonathan VIII. AWARDS AND PRESENTATIONS A. PRESENTATION OF PROCLAMATION DECLARING SEPTEMBER 2018 AS "NATIONAL SENIOR CENTER MONTH" IN THE CITY OF PALM DESERT. On behalf of the entire City Council, Mayor Jonathan presented the proclamation to Mr. Jack Newby, Executive Director of the Joslyn Center. 2 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 23, 2018 Mr. Newby thanked the City Council, stating he appreciated the City's support. He added that even in the heat of the summer, the Center is receiving new members every day. They are promoting their wonderful Wellness Center that offers a lot of activities and health -related educational programs for the community. He encouraged the City Council to take a tour of the facilities anytime. Mayor Jonathan pointed out that the next "Coffee with the Mayor" will be held at the Joslyn Center, featuring Mr. Newby and the organization. B. INFORMATIONAL QUARTERLY REPORT OF ACTIVITIES FROM THE PALM SPRINGS INTERNATIONAL AIRPORT COMMISSION BY CITY OF PALM DESERT'S APPOINTED REPRESENTATIVE MR. ROLF HOEHN. Mayor Jonathan expressed his appreciation for having Mr. Hoehn, the City's representative on the Airport Commission, and for providing a quarterly report. Some of the highlights of the report include: 1) Airport Master Plan - scheduled for implementation in 2020. It's an expansion of the check -in area and airline offices; 2) Air Service Development - United Airlines will add non-stop service to Newark; American Airlines has a second daily flight to Chicago; Delta Airlines will start service to Atlanta this winter; and Jet Blue is adding capacity to New York; 3) Airline Traffic - the number of passengers has increased by 6.9% in the month of June, and 8.9% year to date. With City Council concurrence, the Quarterly Report of Activities from the Palm Springs International Airport Commission by Palm Desert's appointed representative Mr. Rolf Hoehn was received and filed. IX. ORAL COMMUNICATIONS - B MR. WALLY MELENDEZ expressed concern for what is happening in Nicaragua where people are being shot for being out of the house, which is having a domino effect if you consider Cuba, Venezuela, and Bolivia. Currently, everyone was living in a dangerous world and it appeared to him that President Trump was not aware of this fact. He said those of us who live in the west needed to raise our voices to speak against these communist dictators who are committing murders. X. MAYOR AND COUNCILMEMBER REPORTS & REMARKS TO THE COMMUNITY A. Councilmember Jan C. Harnik Committee Reports and General Comments. 1. Et Paseo Improvement Proiect - attended meetings on the Gibbs Study for the possibilities that can be done on El Paseo. It's been great to see the merchants engaged in the process, and later when an item comes before the City Council, they will be seen in the audience. 3 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 23, 2018 2. Coachella Valley Economic Partnership (CVEP) - held the Sustainability Forum recently and it was about the MSHCP (Multiple Species Habitat Conservation Plan) and how it has helped the City and how it came about. She added that CVEP continues to bring forward great forums and opportunities to learn more about how we got here and where were headed. 3. Coachella Valley Association of Governments (CVAG) - Many of the members, engineers, and others from across the Valley went to three Traffic Management Centers in Riverside County. It is amazing what they are doing in creating better traffic flow. All of the communities they visited in Moreno Valley, Corona, and Riverside work with police to be effective and efficient to bring about safer streets and build a foundation for smart cities, which Palm Desert is working on as well with CVEP. It was very interesting to hear the questions asked by the engineers and public works directors versus the ones she, as a Councilmember, was asking. She said Palm Desert will be better for it when it implements its synchronization, and infrastructure for auto -type Internet of Things. B. Councilmember Kathleen Kelly Committee Reports and General Comments. 1. Consortium - attended an information exchange with those whose work touches mental health issues in the Coachella Valley. She and Mayor Jonathan found it extremely fruitful, particularly to identify points of intersection with those efforts and Mayor Jonathan's efforts through the CVAG Homelessness Committee. They learned how that cooperation can be maximized, so it was good to know those conversations are happening. 2. SunLine Transit - reported that SunLine has secured funds to launch a Haul Pass Program for local college students. Starting Monday, College of the Desert students will be able to use SunLine Transit for free to get to and from their classes. She's very excited about that opportunity to maximize services for those who are trying to advance themselves. C. Councilmember Gina Nestande Committee Reports and General Comments. 1. Landscape Issues - has continued to engage with constituents this summer on landscaping issues, which she will bring up at a later City Council meeting to direct staff with City Council approval to get some of these landscaping items on a future agenda. 2. Olive Crest - reported it's a great nonprofit organization, and their main priority is to prevent child abuse while treating and educating 4 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 23, 2018 at -risk youth. Something she learned was that if a child is in the foster care system, once you turn 18 years of age, you are let go and put out on the street unless that particular family wants to keep you without receiving payment. Sadly, it happens, and it's really heart breaking. She was informally asked to serve on the board, which she would be honored to do so, but she hasn't yet been formally asked. D. Mayor Pro Tem Susan Marie Weber Meeting Summaries Report for the Period of July 1 - August 11, 2018. With City Council concurrence, the Meeting Summaries Report was received and filed. 1 Citizens on Patrol (COPs) - reported she and the Mayor attended the COPs luncheon to thank the organization for working the City's Independence Day Celebration (4th of July), which was phenomenal. She said the COPs Program has their own writing pens now, and they have on them "Join Our Organization." She thanked Management Analyst Johnny Terfehr for taking over the COPs Program, because it has dramatically been improved in the last few months. She added the luncheon was held at the wonderful Hotel Paseo, stating that if you haven't been there, you should go see the art and beautiful architecture of the building. Mayor Jonathan commented it would be wonderful if the City had City of Palm Desert coffee mugs. E. Mavor Sabbv Jonathan Committee Reports and General Comments. 1. Palm Desert Area Chamber of Commerce - announced that the Chamber's new CEO was in the audience, and he invited him to introduce himself. Mr. Todd Rhoden said he was the new President CEO of the Palm Desert Area Chamber of Commerce, and he recently moved to Palm Desert on Cook Street, so he is now a proud Palm Desert resident. He thanked the City Council for their support of the Chamber by attending the breakfast events, providing them with a building, and sponsoring the Golf Cart Parade, which is extremely generous. He was available to the Council, stating he will work with the City as much as possible and do whatever he can to work together. 2. First Dav of School - he pointed out that today was the first day of school. He was honored to attend the first day of Palm Desert High School, and noted that enrollment for freshmen is 120 students, which 5 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 23, 2018 was an increase of 20%. He said the quality of education offered by Palm Desert is very special. 3. Desert Community Enera_ v (DCE) - he reported the program was to launch in August, but it didn't. He and Councilmember Kelly had partnered in representing the City, and at the last meeting, there was a decision to delay the launch to 2020. There were unique and unexpected market conditions in that very strangely, the price of gas spiked considerably. He said a lot of energy is produced via natural gas, so the cost of energy is anticipated to go up 3%, while Southern California Edison, inexplicably, announced they will be reducing their delivery charge cost by 6%. The City had presented the DCE to the public and residents, partially on the basis of very modest cost savings, but it appears those savings would not materialize. Therefore, the decision was made to delay the launch, primarily for that reason. F. City Council Reauests for Action. None G. City Council Consideration of Travel Requests/Reports. None XI. STAFF REPORTS AND REMARKS A. City Manager 1. City Manager's Meeting_ Summaries Report for the Period of July 2 - August 10, 2018. With City Council concurrence, the Meeting Summaries Reportwas received and filed. 2. Appointment of City Councilmember Alternate to the Coachella Valley Animal Campus Commission. Ms. Aylaian explained the City had an unusual arrangement previously wherein there was an elected official as the representative to the Commission, but as the alternate it had a staff member, which was former Director of Special Programs Ms. Frankie Riddle who has retired. Staff is looking to replace that alternate vacancy with an elected official. 6 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 23, 2018 Mayor Pro Tem Weber agreed to represent the Council on that Commission. Councilmember Harnik, moved to, by Minute Motion, appoint Mayor Pro Tem Susan Marie Weber as the Alternate representative on the Coachella Valley Animal Campus Commission. Motion was seconded by Nestande and carried by a 5-0 vote (AYES: Harnik, Kelly, Nestande, Weber, and Jonathan; NOES: None). 3. Personnel Update: Introduced Tom Garcia, the new Director of Public Works. She said he comes to Palm Desert with a deep history in public works and engineering. He has experience at both the County and City level, having been the Director of Public Works for Calaveras County, the City of Temecula, and has served with CalTrans, and in the private sector. He said Mr. Garcia has a lot of good ideas and enthusiasm, and he has dived into the San Pablo Project and others. Mayor Jonathan said the City was fortunate to have him, and he as well landed in the best City on the planet, adding he looked forward to working together. B. City Attorney None C. City Clerk 1. Reminder of Next Regular City Council Meeting on Thursday, September 6, 2018, in Place of the Thursday, September 13, 2018, Meeting (League of California Cities Annual Conference). Ms. Klassen reminded the City Council of the upcoming change in schedule of its City Council meeting for the month of September as duly noted in a Resolution adopted earlier this year. The meetings for September will be held on September 6 and September 27. Councilmembers noted the reminder. D. Public Safety 1. Fire Department Battalion Chief Cortez thanked the City Council for their support of the firefighters working in the current fires. Responding to question, he said the fires have reached containment and have turned a corner, which was good news. Further responding, he said wild fire season doesn't end, its year round. 7 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 23, 2018 2. Police Department None XII. CONSENT CALENDAR A. MINUTES of the Regular City Council Meetings of July 12, July 26, and August 9, 2018. Rec: Approve as presented. B. CLAIMS AND DEMANDS AGAINST THE CITY TREASURY - Warrants Dated 6/29/2018, 7/6/2018, 7/13/2018, 7/23/2018, and 7/27/2018. Rec: Approve as presented. C. CLAIMS AND DEMANDS AGAINST THE CITY/HOUSING TREASURIES - Warrants Dated 6/29/2018 - 2, 7/6/2018, 7/13/2018, 7/20/2018, 7/27/2018, and 8/3/2018 (Joint Consideration with the Palm Desert Housing Authority). Rec: Approve as presented. D. APPLICATION FOR ALCOHOLIC BEVERAGE LICENSE by La Fe Wine Bar, 73900 El Paseo, Suite 2, Palm Desert. Rec: Receive and file. E. APPLICATION FOR ALCOHOLIC BEVERAGE LICENSE by Sapporo Ramen & Grill, 73759 Highway 111, Palm Desert. Rec: Receive and file. F. REQUEST FOR ADOPTION of Resolutions of the City Council of the City of Palm Desert, California, Setting Forth Findings and Authorizing the Destruction of Paper Records from the Office of Building & Safety that Have Been Digitally Imaged, to Rely On the Electronic Record as the Official Record - November 2016, December 2016, January 2017 Records. Rec: Waive further reading and adopt Resolution Nos.: 1) 2018 - 63 - November 2016 Records; 2) 2018 - 64 - December 2016 Records; 3) 2018 - 65 - January 2017 Records. 8 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 23, 2018 G. RESOLUTION NO. 2018 - 66 - A Resolution of the City Council of the City of Palm Desert, California, Setting Forth Its Findings and Authorizing the Destruction of Records from the Office of the City Clerk, as Indicated on the Records Retention Schedule (Adopted September 28, 2017) — Records Dated 1985 - 2015 (Exhibit "A"). Rec: Waive further reading and adopt. H. RESOLUTION NO. 2018 - 67 - 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 Community Development/Planning, to Rely on the Electronic Record as the Official Record — Records Dated 1974 - 2010. Rec: Waive further reading and adopt. I. RESOLUTION NO. 2018 - 68 - 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 Community Development/Planning, to Rely on the Electronic Record as the Official Record - Youth Committee Applications/Reference Letters - 2005 - 2014 (Exhibit "A"). Rec: Waive further reading and adopt. J. RESOLUTION NO. 2018 - 69 - 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 - Parcel Map and Tract Map Files from 1989 - 2008 (Exhibit "A"). Rec: Waive further reading and adopt. K. REQUEST FOR ACCEPTANCE OF WORK — Contract No. C36720 — Citywide Palm Tree Pruning (Project No. 931-18) (Reliable Tree Works, Inc., Coachella, CA). Rec: By Minute Motion, accept the work as complete and authorize City Clerk to file a Notice of Completion for the project. 9 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 23, 2018 L. REQUEST FOR APPROVAL of Mills Act Contract for 72451 Willow Street, Unit #1213 (APN 640-210-013) - Sandpiper Condominiums Circle 12 (Gregory Wilson Thompson and Sandra Colbert Thompson, Trustees of the Thompson Family Trust u/d/t June 4, 2003). Removed for separate consideration under Section XIII, Consent Items Held Over. Please see that portion of the Minutes for Council discussion and action. M. REQUEST FOR APPROVAL of Two (2) Permanent Mural Sites at the Palm Desert Aquatic Center. 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 APPROVAL of the 2018 Palm Desert Golf Cart Parade, October 28, 2018 (Palm Desert Area Chamber of Commerce, Applicant). Rec: By Minute Motion, approve: 1) Palm Desert Golf Cart Parade scheduled for Sunday, October 28, 2018; 2) El Paseo and Larkspur road closures for the event; 3) Consumption/Possession of Alcoholic Beverages on Public Property pursuant to Palm Desert Municipal Code Section 9.58.040; 4) sponsorship of in -kind Public Works services. Mayor Pro Tem Weber requested Item L be removed for separate discussion on Section XIII, Consent Items Held Over, and Mayor Jonathan requested Item M. Upon motion by Kelly, second by Harnik, 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 L. REQUEST FOR APPROVAL of Mills Act Contract for 72451 Willow Street, Unit #1213 (APN 640-210-013) - Sandpiper Condominiums Circle 12 (Gregory Wilson Thompson and Sandra Colbert Thompson, Trustees of the Thompson Family Trust u/d/t June 4, 2003). Mayor Pro Tem Weber requested this item to be pulled in order to recognize the hard work that Director of Building and Safety Russell Grance and staff have done on the Cultural Preservation Committee. The Committee has been very involved in the past couple of years, and by their participation and Mr. Grance's hard work, they are having more homes and places being considered for designation for a historical category. This requires 10 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 23, 2018 Mr. Grance and his team to compile a lot of paperwork in order to comply with the Mills Act for the City to have historical buildings in Palm Desert. Mayor Pro Tem Weber moved to, by Minute Motion: 1) Approve subject Mills Act contract for the Sandpiper Condominiums located in Circle 12, in accordance with Section 29.70.030 of the Palm Desert Municipal Code; 2) authorize City Manager and City Attorney to execute said contract. Motion was seconded by Kelly and carried by a 5-0 vote (AYES: Harnik, Kelly, Nestande, Weber, and Jonathan; NOES: None). M. REQUEST FOR APPROVAL of Two (2) Permanent Mural Sites at the Palm Desert Aquatic Center. Mayor Jonathan said he wasn't understanding what was being approved, because the contract didn't have a dollar amount attached to it. Management Analyst Deborah Glickman replied Council was approving sites for potential murals. For consideration is the two locations on the west side of the building to the Aquatic Center; they will be permanent murals. She has been communicating with a group of artists who are interested in the project. She's hoping that by the time the artists have an opportunity to come to Palm Desert, the sites will have already been approved. Mayor Jonathan inquired about the next step in the process and whether the proposed artist will be presented to the City Council for approval. Ms. Glickman said staff is looking at a group of five artists from Columbia who are working through an organization in Boston. At this time she didn't have the timeline for those approvals, which is why she would work with the City Manager for approval at that level. Mayor Jonathan asked if that would be for the selection of the artist and the funding. Ms. Glickman explained the artist was actually a packaged team, and they are considering coming to Palm Desert in October. If the proposed sites are approved and designated, then she can move forward in conversations with them to paint the murals. Mayor Jonathan offered that the point he was trying to get at is that the examples presented in the staff report didn't represent an aquatic theme. Ms. Glickman agreed, stating those were samples of the artist's work. She would be receiving proposals for the locations in advance, and she and the City Manager would be reviewing and approving them internally. She will try to obtain a timeline to see if she could get them into a City Council meeting, 11 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 23, 2018 but the problem is that in order for artists to prepare, the City needs to give them enough time. Mayor Jonathan suggested circulating the proposed renderings as soon as they are available with the City Council, so that if there are concerns, they can at least have an opportunity for discourse. Also, if there is a price tag attached, he would be interested in knowing that as well. Ms. Glickman replied that based on the group they are considering, the cost will be $12,500 for the two sites, and that includes six different artists. Mayor Jonathan added that the Aquatic Center is a treasure in the City, and although he is being reassured by staff, he wants Council to have an opportunity to review the proposals. Ms. Glickman noted that staff had to get through this process to get to the next step, but she will absolutely drop the proposals off at the City Council's office to be circulated. Mayor Jonathan moved to, by Minute Motion: 1) Approve two (2) permanent mural sites at the Palm Desert Aquatic Center; 2) waive all permit and inspection fees associated with murals for the designated sites. Motion was seconded by Kelly. Councilmember Harnik agreed with Mayor Jonathan that the samples provided in the staff report were more urban, edgy art, and more suitable for the "Street" event, because these didn't have the warm, family -friendly look that would be suitable for the Aquatic Center. Ms. Glickman responded that the artists are already aware of the site location, and once staff is further in the process, she will work with them more closely so they can understand the City's Aquatic Center and the park location. She is well aware that the murals will be visible from the park in general, so she plans to provide the artists with as much information as possible, in order for the proposals to reflect the community. She hopes the murals will add a new style of art that is important to bring into the City's collection. 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 None 12 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 23, 2018 XV. ORDINANCES A. For Introduction: None B. For Adoption 1. ORDINANCE NO. 1340 - AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, ADOPTING A NOTICE OF EXEMPTION UNDER THE CALIFORNIA ENVIRONMENTAL QUALITY ACT; AND A ZONING ORDINANCE AMENDMENT ESTABLISHING PALM DESERT MUNICIPAL CODE SECTION 25.28.130 - OPEN SPACE/RESIDENTIAL OVERLAY DISTRICT, Case No. ZOA 18-0003 (City of Palm Desert, Applicant). Councilmember Kelly recused herself from this item for the reasons stated last month when the Ordinance was introduced. She then left the Council Chamber. Mr. Stendell noted the staff report as it was prepared for the July City Council meeting. This item is for adoption of the Zoning Ordinance creating an Overlay Zone for a golf course conversion as directed by the City Council; this was the second reading of the Ordinance. Councilmember Harnik moved to waive further reading and adopt Ordinance No. 1340. Motion was seconded by Weber and carried by a 4-0 vote (AYES: Harnik, Nestande, Weber, and Jonathan; NOES: None; ABSENT: Kelly). 2. ORDINANCE NO. 1341 - AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, APPLYING A CHANGE OF ZONE FOR THREE PARCELS OF LAND (APNs 637-190-021, 637-190-024, and 637-190-027) FROM R-2 TO R-2 WITH AN OPEN SPACE/RESIDENTIAL OVERLAY DISTRICT AS THEY RELATE TO THE PALM DESERT COUNTRY CLUB PROJECT, Case No. ZOA 18-0003 (City of Palm Desert, Applicant). Mr. Stendell noted this was a follow-up item to the previous item, where the City would be applying the Overlay Zone to the three parcels of land to the Palm Desert Country Club conversion. Mayor Pro Tem Weber moved to waive further reading and adopt Ordinance No. 1341. Motion was seconded by Nestande and carried by a 4-1 vote (AYES: Kelly, Nestande, Weber, and Jonathan; NOES: Harnik). 13 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING XVI. NEW BUSINESS AUGUST 23, 2018 A. REQUEST FOR APPROVAL OF CONTRACT WITH THE COACHELLA VALLEY ECONOMIC PARTNERSHIP (CVEP) IN THE AMOUNT OF $175,000 FOR ESTABLISHMENT AND OPERATION OF THE PALM DESERT iHUB (PD iHUB) FOR FISCAL YEAR 2018-2019 (CONTRACT NO. C37370). Mr. Alvarez stated this particular project aligns with the Envision Palm Desert, the Strategic Plan, Economic Development Strategic Plan, and the 2018 Goals set by the City Council to move forward the establishment of a Palm Desert iHUB (PD iHUB). This contract will allow the City to contract with Coachella Valley Economic Partnership (CVEP) to establish and operate the PD iHUB. The contract is for $175,000 for Fiscal Year 2018-2019. Although the agreement itself is structured as a five-year contract, the City will have the opportunity to renew it every year. As indicated in the staff report, the goals of the PD iHUB is to attract technology - based entrepreneurial startup businesses to promote diversification of the local economy, create higher wage jobs, and partnering with Cal State University, San Bernardino at the Palm Desert Campus (CSUSB-PDC). Partnering with CSUSB-PDC will help in the securement of a High Speed Broadband fiber-optic cable that will allow the City to provide the interconnectedness needed to attract these technology -based businesses. Part of the iHUB goals is to incubate businesses, grow them, provide resources and services to further along their technology and ideas. The last goal is to partner with CSUSB-PDC to provide student internships that could collaborate these new startup businesses and the PD iHUB. The contract will require CVEP to manage and operate all aspects of the Palm Desert iHUB, and it will assign or hire new staff for this purpose. They will assume responsibility for all operations, development of programs and partnerships. They will go out and seek companies to come to Palm Desert and create startup opportunities for them. The agreement also requires quarterly reports to be provided to the City to ensure progress as they move forward in attracting new businesses. Staffs recommendation also calls for a five -member PD iHUB Advisory Board consisting of one (1) City elected official, one (1) CSUSB-PDC, and three (3) representatives from the private sector. The requirements on the City part is to set aside funds to move this project along; partner with CVEP to look for a lease space, fund utilities and facility maintenance to fully launch the iHUB. The City is to work with CSUSB through a Memorandum of Understanding (MOU) to: 1) Secure access to high speed broadband, which is referenced as the CENIC line; 2) Foster Internship Programs. The City had established a Palm Desert iHUB subcommittee consisting of two Councilmembers, staff, CVEP, and a private entrepreneur. Staff is continuing to work through all the moving parts necessary to establish the iHUB by looking at locations, a lease, an MOU with CSUSB, and other components to move this project forward. In 14 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 23, 2018 summary, this agreement will allow the City to contract with CVEP to launch the PD iHUB very soon. The subcommittee met on August 13, and staff is currently exploring office space at The Vineyards, which is across the street from CSUSB-PDC. Staff is also exploring the opportunity to potentially provide portable buildings, custom and unique, on the Palm Desert Campus. By exploring these two options staff will be able to evaluate cost with the ultimate goal of launching quickly. He said CSUSB has indicated they are interested in bringing their Cyber Security Program to the PD Campus, which staff will pursue. He added this was a way to bring them on board, co -locate, and collaborate with them. By having a co -location, there are opportunities to provide faculty office space that is dearly needed for the Palm Desert Campus. Staff recommended approval of the contract with CVEP. Councilmember Kelly was curious about the reason for only recommending one elected official to the proposed Advisory Board when the subcommittee that's been deeply involved in producing this recommendation has two elected officials. Mr. Alvarez replied it's the way it was structured and proposed by CVEP, but they are open to any suggestions that come about. Mayor Jonathan recalled the City allocating $360,000 in the budget toward the iHUB, questioning where or how the $175,000 amount came about. Mr. Alvarez said the City budgetted $464,000 and the $175,000 amount mirrors the iHUB that Palm Springs operates. It's the same model that was used to frame the proposed agreement, which provides for the full scope of services to establish and to launch. Councilmember Kelly commented the City has additional expenses it will be picking up that will be charged against the larger budget figure. Mr. Alvarez confirmed $175,000 will be applied to the $464,000 budget. The City will also have expenses for establishing and moving the broadband from CSUSB to the office space. There will be operation expenses for utilities, maintenance, and potentially the lease as well, which will have to fit within the allocated budget. Mayor Jonathan said the proposed recommendation proposes $175,000, which he believed was a very dynamic number, because at this point, no one knew where the iHUB will be located. He didn't want to create a delay that perhaps the motion should include a higher figure unless it's easier to just come back to the City Council for approval. Councilmember Kelly felt this figure was less dynamic, because it represented what CVEP needed for staffing. 15 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 23, 2018 Mayor Jonathan agreed, but wondered if the other costs were already approved or in the budget. Mr. Alvarez confirmed that the additional costs were already included in the budget. Of course those numbers are estimates, but staff is hoping to stay within that $464,000 amount for the entire project. Further responding, he said the $175,000 was for CVEP staffing and operations of all the programs. Councilmember Kelly pointed out that $175,000 is what CVEP needs for the services they will be providing under this contract, but the City is committed to paying other variable expenses out of that remaining budget. Councilmember Nestande asked if Cal State had plans to attract future students. She recalled hearing they might move a small percentage of students from the main campus, questioning if it was important to actually have students already enrolled that would take advantage of the iHUB. Mr. Alvarez agreed, however, it was like the chicken and egg scenario. You need to have a program in place with staffing, in terms of faculty, and room available to attract students. In the interim, Cal State has indicated they can bring down some of their students from the Cyber Security Program, stating there might be some local students that can be fostered from the local schools. Councilmember Harnik pointed out that Desert Sands Unified School District (DSUSD) is looking for cyber security type of program in competition. She was in favor of having students from their main campus come to Palm Desert, but her greatest hope is to create opportunities for Coachella Valley regional students and eventually provide well -paying jobs for them. Councilmember Nestande stated that in terms of startup companies coming to Palm Desert, she asked if there were any potential ones showing interest. Mr. Alvarez replied there is one that actually started, which he believes is called SecoSys that is an Internet of Things (IOT) type of business. It is trying to establish itself in the Coachella Valley, and it's the perfect opportunity to have a business incubated and launched. Councilmember Harnik added that the SecoSys Program started in the Palm Springs iHUB, and because of the opportunity of the fiber and bandwidth, it's ready to move to a digital iHUB for research and development in Palm Desert. The owner is rearing to go and he's also working with COMCAST for the wireless technology for communication through Desert Hot Springs. There are a couple of other companies that have already approached about going into this digital iHUB. Additionally, going back to Councilmember Kelly's point about the five -member iHUB Palm Desert Advisory Board, she 16 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 23, 2018 agreed that two elected officials should continue to be on the board, but the committee couldn't be an even number. She suggested including someone from CVEP and Joe Wallace would be the obvious person, since he had so much knowledge about this topic. Mayor Jonathan agreed, stating he would suggest two (2) Palm Desert elected officials, one (1) from Cal State, three (3) from the private sector, and one (1) from CVEP, which makes it a committee of seven. Having two elected officials from Palm Desert provides a little more influence on the committee, which he felt was important. Councilmember Kelly said her only hesitance was that the advisory board would be advising CVEP, so she didn't know if it made sense to have Mr. Wallace on the advisory board to advise himself, but she can be persuaded. Councilmember Harnik offered that Mr. Wallace is the expert in this, and he really understood iHUBs and those sorts of work situations. She recalled for everyone that he is quite the engineer head. Whether or not he becomes a voting member, this was strictly an advisory board. The difference in CVEP in the last three years is a credit to Mr. Wallace, because he genuinely understands what the City is trying to develop and achieve. She believed the committee will fall short by not having Mr. Wallace's input. In the end the advisory board may love his ideas, but it didn't mean the City was going to pay for whatever the case may be. Councilmembers Kelly and Nestande agreed Councilmember Harnik was very convincing in her comments. Councilmember Kelly recalled everyone on the Council expressed enthusiasm for this at the goal -setting session, so she thanked and commended staff and Councilmembers on the subcommittee for moving this along so expeditiously and constructively. She sees this as having more potential for transformation in the community than anything else she has seen, both because it can diversify employment opportunities and CSUSB-PDC can enhance offerings to local students and have alternative career paths they can train for globally. It impresses her as an extremely well thought-out venture, and she is enthusiastic moving forward. Councilmember Harnik concurred, stating she has seen the incubator do great things with businesses and believed this will provide great opportunities for education, benefitting the entire region. She added that it couldn't always be about the hospitality industry, stating this iHUB will broaden the economic base. She said staff at times had hit some low points, but they were tenacious and got this moving again, which is greatly appreciated. She believed that once the broadband is installed, things will move quickly. 17 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 23, 2018 Mayor Jonathan reiterated that with regard to the budget, it will be very fluid because there will be a location that will have to be built-in if Cal State does co -locate where the City could end up paying for half the rent. He brings it up, because he doesn't want to see things postponed. Secondly, he loves the idea of locating on the campus, because there are many positives, especially with the co -location, cyber security, faculty spaces, the almost adjacent access to the cable, ample parking, etc., and primarily to develop that synergy between the two organizations. He hopes staff continues to look at that option very strongly. He recalled hearing Mr. Wallace indicate there are 235,000 unfilled cyber security jobs, which is within the wheelhouse of the iHUB. He likes that staff will keep their feet to the fire and look at this annually, because if it's not performing, the City shouldn't continue for five years, adding he appreciates it was built into the agreement. Finally, he would like to appoint the two elected officials at this point to avoid delays. Councilmember Kelly agreed, stating her presumption was to keep the subcommittee representatives on the advisory board. Mayor Jonathan replied it made sense, but if there was a meeting scheduled soon, it should have Council representation. Ms. Aylaian said there wouldn't be a meeting in the immediate future, because the rest of the committee has to be put together. However, she wasn't opposed to appointing the elected officials at this time. Councilmember Harnik commented that the current subcommittee has the bones of a good advisory committee, but wondered if it should include a staff member. Mayor Jonathan pointed out that staff will always be present. Mr. Alvarez agreed, stating staff can provide the resources and information and leave the decision making to the board. Mayor Jonathan and Councilmember Harnik expressed their desire to be on the advisory board. Councilemember Harnik moved to, by Minute Motion: 1) Approve subject five-year contract with CVEP, funded for FY 2018-2019 in the amount of $175,000, to establish, operate, and manage the Palm Desert iHUB; 2) authorize City Manager to execute said agreement — funds are available in the approved FY 2018-2019 Economic Development Department Budget; 3) establish a seven -member Ad Hoc PD iHUB Advisory Board, membership consisting of two (2) City of Palm Desert Elected Officials, one (1) CSUSB, Palm Desert Campus, three (3) private sector representatives, and one (1) CVEP representative; 4) Appointed Mayor Sabby Jonathan and Councilmember Jan C. Harnik to the Ad Hoc PD iHUB Advisory Board. Motion was seconded by Nestande and carried by a 5-0 vote (AYES: Harnik, Kelly, Nestande, Weber, and Jonathan; NOES: None). 18 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 23, 2018 B. REQUEST FOR APPROVAL OF A CONTRACT WITH BUXTON IN THE AMOUNT OF $50,000 TO PROVIDE PROFESSIONAL ECONOMIC DEVELOPMENT CONSULTING SERVICES, INCLUDING DEVELOPMENT OF A RETAIL AND RESTAURANT RECRUITMENT STRATEGY (CONTRACT NO. C37380). Mr. Alvarez stated this item is to hire a consultant that is versed in economic development in providing opportunities to produce and engage a recruitment and attraction strategy to fill vacant retail and restaurant spots. He noted the City has come across some interactions on El Paseo and some of the vacant buildings on Highway 111. This was an opportunity for the City to work with Buxton who is nationally recognized as an economic development consultant. They work specifically with consumer data gathering analytics and providing a profile that matches Palm Desert's community spending habits that include where money is being spent, how it's spent, and where the dollars are coming from with other retail and restaurants throughout the country that is looking to expand. The goal of the proposal is to assist staff in understanding the current retail and restaurant economic condition, which is exactly what Buxton would do. Again, to create that community consumer profile. There is a lot of data out there that at staff level don't have access or preview to that Buxton does. In the many years they have been in business, they have compiled a large data base throughout the country. In identifying Palm Desert's consumer trade areas, it will show how far visitors or tourist are coming from. In other words, are they coming from the drive market or other states. The data is driven by Visa view and the spending of credit cards in the City of Palm Desert specifically. It will have very detailed information, which will help staff identify the top 20 retailers and restaurants staff should go after. He said Buxton has more than 5,000 retail and restaurant vendors they work with on the opposite end in trying to create their own profiles and going after those specific markets that match the criteria. It will also help create marketing materials to go after those top restaurants and retailers. Additionally, through the Buxton business model, they have connections to a variety and all the site selectors that work with these companies throughout the country. They will be able to put the City right to the top of the person that makes decisions on selecting sites to move into. The contract is for $150,000 for one year. If the City sees results, the contract has the option of renewing for a couple of years if it wants to continue with the goal of filling the gaps and vacant retail spaces. Councilmember Nestande asked if Buxton will also be looking at the Envision San Pablo to see what might be the best use of restaurants and retail. Mr. Alvarez responded staff will certainly provide them information the City is focusing on which includes San Pablo, El Paseo, and Highway 111 Corridor, which will help set the framework for the types of businesses the 19 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 23, 2018 City will try to attract. Responding to question, he said the scope of work for this contract did not include hotels, but they do have that capability. Mayor Jonathan offered that he and Mr. Alvarez met with the representatives in Las Vegas and again in Palm Desert. He said their work is not site specific, but when staff goes to them with the need for information for attracting hotels, part of the data they will compile is what it can present to an interested developer and it will be on point. It won't be site specific, and it's the same thing with retailers. For example, it won't be finding something for this lot on El Paseo or Desert Willow, but they will provide the data and tools to talk to interested developers and give them the information they need. He said Buxton will also pre -match so that the City is not wasting their time and they aren't wasting their time, both parties will know what they're after. If their criteria meet what the City offers, they will let us know. Mr. Alvarez agreed, stating it was a very important point, because if Palm Desert wants one particular retailer or restaurant, but if they are not expanding in the market, there's no way they will come to Palm Desert. Secondly, if Palm Desert doesn't meet their consumer profile, it's not a good starting point. Mayor Jonathan added that Buxton offered to come out on a quarterly basis and meet with the City's Realtors, developers, businesses, the Chamber, and community to provide an update on the kinds of businesses that might fit the City's profile. At the end of the day, it's the realtor who is trying to lease these vacant spaces or sell lots. Mr. Alvarez concurred, stating the City will be able to provide this data to its brokers and agents to help them make their decisions easier. Councilmember Harnik stated the staff report indicates Buxton has thousands of unique retailers, but the ones they chose to list, many of them are already in Palm Desert. Her greatest concern, based on years with ICSC (International Council of Shopping Centers) and what is happening with E-commerce, is the evolution of retail, because retail is not the same old thing; it's shifting and being redefined. She wondered if the City was going to keep doing the same thing, because there are overlays on El Paseo with strong restrictions that were put there in the 1980's. She said it was 2018 and the City needed to shift or morph. She hopes the City will change and redefine things, because the staff report only mentions retail and restaurants. Doing more of the same is a great concern to her. Mayor Jonathan believed this contract with Buxton will change the paradigm and take the City into the 21st Century. He attended ICSC at the urging of Councilmember Harnik, and she was right, it was very productive. At the conference, Mr. Alvarez aligned key appointments. Some of the people they 20 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 23, 2018 met were the Westfield Center folks, and staff scheduled a follow-up appointment in Palm Desert. That meeting took place two weeks ago, and one of the things that came up is that the City needs to demonstrate to them, and they need to demonstrate to their decision makers, that what they do will attract the tenants and the kinds of rents that justifies that investment. When staff mentioned Buxton to them, they were on board and asked that the data be shared with them. They indicated they needed the data to make their case to upper management. He said Buxton represents a mechanism to help the City realize the vision, because they are not going to go after retailers, they are match makers. They create the data that companies look for, then they evaluate it against their thousands of potential matches. It will be up to the City to decide what it wants to do with the information. He sees this as an important tool to do exactly what Counciimember Harnik was talking about. Counciimember Harnik pointed out that Westfield is a regional mall and Council is not trying to change its MO (Method of Operation), because she didn't think it should. Just last week she participated in the fashion show, and you see families from all over the region from Blythe to Riverside to use the mall. It has a great profile and it appeals to families, stating it's a regional asset. When talking about El Paseo, that a different issue, which is what she was referring to when she mentioned the Zoning Overlay that was put in the 1980's. We keep talking about retail in that they have to sell something. She's not saying Buxton couldn't help Palm Desert, but wondered if there was work to do before going to them and saying this is what we want. She said retail has been redefined and it has shifted. Again, she's not saying Buxton couldn't help, but is the City providing them with the appropriate guidelines. Mr. Alvarez said it was a valid point. As an example, the Gibbs Study, which is almost complete, is setting the stage for the next generation of El Paseo. The study has given staff key ideas, requiring consideration of policy decisions and things to change to set the table for attracting that next generation of business. He agreed it didn't have to be retail, it could be something else that is in the market today. However, the data staff is trying to gather with this particular contract is going to be a valuable tool to move forward in that arena. Councilmember Kelly said retail is changing and there are some great success stories. The news today was that Target had the best quarter of its existence, because it adapted to changed conditions, affording a better experience for current consumers. She views this contract as just a piece of the puzzle. These successful entities and businesses affording the experience to go along with the shopping, depend upon these kinds of analytics to make their choices. She believed these types of analytics is what the City needed to even be in the game and then it will have to be 21 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 23, 2018 attentive to the kinds of issues Councilmember Harnik is raising, once the City is in the game. The analytics is an essential starting point in putting together a future. Councilmember Harnik agreed that it will be these adaptive types of entities that will survive. On El Paseo were seeing soft surroundings that for years were a catalog, but have recognized they need brick and mortar to really be successful. However, based on the staff report, it's not telling her that staff is providing them with guidelines, because a lot of what Buxton is offering, the City has most of it. She wants Buxton to look at El Paseo differently, because the City is not asking them to offer another Trader Joe's. She said it was critical to allow them to do the geo-fencing, the analytics from the geo-fencing, and the City will learn who is spending what and where those credit cards are based, which is all important. She just wants to make sure it's not doing the same old thing, because the City needs to do something different. Mayor Pro Tem Weber commented the City already knew what's going on, but then what. If Buxton is going to say here's what's going on and how money is being spent, the City's goal is to bring in other spenders to say what can be spent. Councilmember Harnik imagined the Gibbs Study will help provide information and guidance to Buxton. Councilmember Nestande asked if Buxton was already looking at other areas to see what's popular for the drive -by market. Mr. Alvarez offered that Buxton will also explore what's happening around the Valley, so duplication of businesses won't happen. It will take a broader perspective both regionally and the drive -market. Responding to question, he confirmed that he will be in conversations with Buxton at all stages of the work. Councilmember Harnik remarked that she wasn't opposed to the contract, stating she loved that Council was talking about business retention tools. However, she wants to make sure the City is providing Buxton the input that's valuable, recognizing it has put rules, regulations, and overlays in place. Mayor Jonathan suggested Councilmembers meet with Ms. Lisa McCoy, Buxton's representative. He was confident they will walk away with the complete opposite point of view and comfort level that this was the very tool that will enable the City to escape the 1980's and move Palm Desert into the 21st Century. 22 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 23, 2018 Councilmember Kelly moved to, by Minute Motion, approve subject contract with Buxton, Fort Worth, Texas, in the amount of $50,000 to provide professional economic development consulting services, including development of a retail and restaurant recruitment strategy — funds are available in the FY 2018-2019 Economic Development Budget. Motion was seconded by Harnik and carried by a 5-0 vote (AYES: Harnik, Kelly, Nestande, Weber, and Jonathan; NOES: None). Mayor Jonathan requested staff coordinate some meetings with Councilmembers and Ms. McCoy so they can get a sense of what Buxton has in mind, and perhaps they can name some of the cities where they've done this work. C. REQUEST FOR EXTENSION OF CONTRACT WITH GLYN DONALD GRAY (GDG) FOR OPERATION OF THE EL PASEO COURTESY CART PROGRAM FOR FISCAL YEAR 2018-2019 (CONTRACT NO. C35632). Mr. Alvarez stated this item was for an extension of the El Paseo Courtesy Cart Program that's operated by GDG (Glyn Donald Gray). This year's contract extension is the final year of a three-year process. The City went through a Request for Proposal (RFP) three years ago for this service. The contract mirrors what the City has had in the past, but there is an increase in the amount of $15,000 to allow for a specific auto liability insurance required as a City, since those are City -owned vehicles. The insurance will be provided by the vendor, but funded by the City. In essence, the contract is for $110,500 for the daily operations and special events. The Courtesy Cart service runs from October 12, 2018, through May 27, 2019, 11:00 a.m. to 6:00 p.m., seven days a week. Staff is very satisfied with the work that GDG has done and is recommending approval of the extension. In the staff report he provided research information he conducted on an alternate transportation shuttle service that has popped up nationally, including California. The Program is known as Free Ride Everywhere Downtown (FRED), and it offers free electrical vehicle shuttle service. The Program is currently in San Diego, Santa Monica, Marina Del Rey, Venice, and Long Beach. The uniqueness of the Program is that it's geographically based in the downtown area that is identified. Within that identified area, you can use a mobile application/device to see where FRED vehicles are located and request a pickup. The vehicle will pick you up and drop you off anywhere within the identified geographical downtown area. The Program is funded through the sale of ads, which are displayed on the vehicles. He noted examples of these advertisements are included in the staff report, but he also displayed the one from Santa Monica who chose to sponsor the vehicle using their brand and their name. Funds generated from the advertisements are used to offset costs of operating the program. Therefore, there are opportunities to partner with a vendor to share the funding and offset the operations. The operator would own and maintain all the vehicles. The staff report includes a chart outlining preliminary estimates by mirroring and 23 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 23, 2018 matching the current City's program schedule, hours, and seating capacity, and duplicating it with the FRED system. There are two options, Option 1 includes two courtesy carts, circulating within the City's designated geographical area, and Option 2 includes three courtesy carts. The City can have as many carts as it wants, but ultimately, it becomes a funding issue. The chart includes maximum annual funding for both options, projected ad sales, and the percentage of revenue share, which gives the Maximum Annual Funding of $165,630 for two carts, or $228,122 for three carts. He's introducing the concept and idea at this time to get feedback from the City Council. If Council wished, staff can pursue the opportunity for next fiscal year, because there is still a lot more information staff had to gather. Councilmember Harnik shared that the El Paseo Business Improvement District is supportive of the current program, because it's so important, and they want to make it even better. Councilmembers agreed to take a vote on staffs recommendation for the contract extension with GDG and discuss the FRED Program separately. Councilmember Nestande moved to, by Minute Motion, approve/authorize: 1) Subject contract with GDG, Palm Desert, California, in an amount not to exceed $130,277.16, including scheduled and special event hours, vehicle maintenance/repairs, and insurance for operation of the El Paseo Courtesy Cart Program during FY 2018-2019; 2) Mayor to execute said contract, allowing City Attorney to make non -substantive changes, if necessary — funds are available in the approved FY 2018-2019 Budget, Account No. 1104416-4368100 - Courtesy Carts. Motion was seconded by Kelly and carried by a 5-0 vote (AYES: Harnik, Kelly, Nestande, Weber, and Jonathan; NOES: None). Councilmember Kelly pointed out that Palm Springs attempted the Free Buzz Trolley, and more recently, is contracting with SunLine to provide that service. That sequence has led SunLine Board to look at the existing GPA to see if it's adequate to really encourage them to be the regional coordinators, not just for buses but for transit alternatives. She strongly expects that within the next four months there will be a proposal for all the jurisdictions that are part of the SunLine GPA. The intent is to strengthen it to achieve good regional coordination of transit alternatives that takes advantage of SunLine's grant capacity and expertise. Therefore, the City may not want to get too far ahead of that process in trying to create its own transit option. Mayor Jonathan asked if SunLine was trying to provide this type of shuttle service to individual cities, because they're regional. Councilmember Kelly said the point is that because SunLine has transit expertise and grant writing receiving capacity, the presumption of the board 24 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 23, 2018 is that it's preferable to have central thinking and participation, at least by way of coordination when it comes to transit options. Councilmember Nestande asked if the City could share what it was thinking with SunLine and see what they think, and see if they could duplicate it or giving the City a grant. Councilmember Kelly replied that would assume the City likes it and wants to do it. Obviously, more steps of exploration would be warranted. She was just featuring this framework issue so that the City didn't get too far ahead of itself. Councilmember Harnik noted she didn't know SunLine was doing this, but she was aware they got involved with the Buzz Trolley in Palm Springs. It would probably be best to wait to see what SunLine had to say and incorporate that with a study session given any other transportation alternatives the City may be looking at. Mayor Jonathan expressed a desire to explore both at the same time, because he absolutely loved the concept of the free ride. Council has been talking about moving out of the 1980's and into today's type of environment, suitable for future generations, because millennials are into this. If the City was going to be serious about evolving from the way it does business, then it meant Council had to accept change. This to him was simply a shuttle on steroids. The shuttle is there and it does the same thing as the old one, except that you have this real cool app. It's not a radical concept, it's taking what it currently has and making it better, bringing the City into the millennials' frame of thinking. Palm Desert needs to recognize the needs and patterns of the next generation, because they exist and it's what's going to expand their presence. He didn't want to wait on whomever, because they may move slowly, so he was in favor of exploring both options at the same time. Staff is proposing to explore FRED and other options. He suggested letting staff loose to explore and come back with a study session on this topic. Councilmember Kelly said she had no objection to progressing simultaneously, but she wanted to make sure the full City Council was aware of the SunLine developments since they are eminent. She doesn't necessarily see this FRED system as an alternative to the El Paseo Shuttle, because there is something very appealing about a shuttle that's on El Paseo itself that you don't have to pull out any technology for it. It's a shuttle you see and hop on, which enhances the shopping experience on that street. In an environment where this might happen in multiple cities, the current one gives Palm Desert its distinctiveness. She wants to plant the thought that FRED didn't have to be an alternative, because the more transportation options for people the better. 25 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 23, 2018 Mayor Jonathan confessed he had not considered it, and agreed it was a great idea. Mayor Pro Tem Weber understood the app would be used to find out the shuttle's location so she can estimate how long she would have to wait and not necessarily to order it all the time. The advantage of using a private company as opposed to being involved in a government entity, is that private entities can turn on a dime, depending on what is going on with shopping. She too agreed in moving forward simultaneously, instead of waiting on SunLine for a response. She said a year will pass quickly, and in order for Council to discuss this topic it would have to know ahead of time to have a study session and so forth. Therefore, she would like to get moving on this to move Palm Desert into the 21' Century. She thanked staff for bringing this item to the Council's attention. Councilmember Harnik concurred with Councilmember Kelly to not look at this FRED Program as an alternative, because El Paseo has a certain echelon that should be maintained. She's not convinced the FRED Program fits with El Paseo, but it may with other areas of the City like the college, Westfield Center, and other shopping centers. At this point, she's not sure she sees it as a replacement for the current transportation. However, she liked the idea of the app device on the El Paseo cart. Mayor Jonathan added that the good news is that Council didn't have to make that decision today, but it's interesting enough and it has potential. He said staff can explore and have a study session where Council can take a deeper dive. He pointed out that the app will allow someone to see its location, but you can also order it for a pick up. Ms. Aylaian interjected to say the issue this evening was to renew the contract for an extension of the courtesy cart service where staff recommended approval. On the secondary issue, she suggested waiting and establishing it as a goal for next year, because there was no way for staff to get a secondary shuttle up and running this season, and it would be smart to hear from SunLine. She recognizes there are other options staff should be exploring, including what parts of the City to service such as San Pablo, including where it can be scheduled, etc. This is a big deal, which cannot be done in short order. It would be appropriate for staff to be more deliberative and not try to do anything for this season with a second type of transportation. Mayor Jonathan believed the intention was that when this extension expired in May, if the City was going to implement a change, it will be ready to go to Plan B. 26 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 23, 2018 Ms. Aylaian replied that with the current goals, she didn't believe staff could be looking at this until the next calendar year, which would be in 2019 if established as a goal. To think that an alternative option could be up and running at the expiration of this contract, which will be in May of 2019, is doubtful. Mayor Pro Tem Weber clarified Council wasn't asking for it to be done now, and it could be in conjunction with the other one, but it's not until staff starts looking and examining everything. Councilmember Harnik requested staff seek a legal opinion on the first amendment on whom the City can allow to advertise, because she certainly didn't want to advertise Old Town La Quinta, stating dispensary shops may come into play as well. Ms. Aylaian concurred. Mayor Jonathan said it was disconcerting to hear the City wouldn't be ready with an alternative by May 2019 when the contract expires, because that's nine months from now. When it comes to technology and making change that's in response to the market, and the City couldn't be making changes in terms of decades, it needs to do it in terms of months. He understands the City didn't have unlimited resources and he's sensitive to that, but if something else needs to be bumped to make room for this, he would like to know what that will be so Council can make an evaluation. He said the City needed to be ready by the end of May in order for Council to understand the options, including being ready to implement them whether that is a contract with SunLine, FRED, or something else that enters the marketplace. Councilmember Kelly added that SunLine isn't interested in being the operator of every transit service, but interested in being a place of coordination, housing the necessary expertise. In the next few months, it will be a topic of discussion, and Council might find that SunLine can actually be helpful in taking some of the work off staff in doing the research, so let's see how that plays out. She noted that the biggest part of the motivation for SunLine entering the Joint Powers Agreement (JPA), is so that member jurisdictions don't have to duplicate transit expertise that SunLine can provide. Mayor Jonathan called for a recess at 5:45 p.m., and resumed the meeting at 5:55 p.m. 27 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 23, 2018 D. REQUEST FOR APPROVAL OF 2018 PATRIOT RIDE FOR OUR HEROES BIKE RIDE EVENT, OCTOBER 19-20, 2018 (CVSPIN, Inc., Applicant). Management Analyst Amy Lawrence stated the request is from CVSPIN to hold their 6th "Patriot Ride For Our Heroes" Charity Cycling Event at the Civic Center Park in October. She noted the Applicant Michael Stearns was available to answer questions. Councilmember Nestande commented it was a great event and hopeful Council will agree to sponsor it. Councilmember Harnik said Palm Desert is a great supporter of all things veterans and military. She asked how much money was raised for the charities, because it was ambiguous, additionally, she questioned how the organizers determine who gets the proceeds from the event. MR. MICHAEL STEARNS, Applicant, replied that in May 2018, they gave away $192,000 to various charities in the Coachella Valley. One of the things they pride themselves on is that every dollar raised locally stays in the Coachella Valley. The money they had raised was via both rides, The Tour de Palm Springs, and Patriot Ride For Our Heroes. The organizations that receive funds are the American Legion Riders, American Legion Posts, VFW, Disabled Veterans, and first responders' organizations. Councilmember Harnik asked who determines who receives those funds. MR. STEARNS explained organizations have the ability to raise funds through the event itself by selling raffle tickets or Rider Registrations. Organizations come to him and ask to use the event to raise money. Raffle tickets sell for $1 a piece and Rider Registrations can sell for $34 to $80. If it's a CV organization, those funds stay in the Coachella Valley. If someone was to sign up through The Disabled Veteran's Association for an $80 Ride, those funds are given directly to them. Tourists' dollars that come from the drive market or potentially Canada or somewhere else, those funds are used to pay for expenses for the two rides and year-round expenses. Further responding, he said the charities that come to them are signed up, there is nothing that holds an organization back from taking part. Councilmember Harnik asked how involved is Palm Desert in the results of the Ride, and if CVSPIN would share their event financials. MR. STEARNS replied that their financials had not been requested, but he would be happy to provide it. 28 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 23, 2018 Mayor Jonathan expressed he had similar concerns, and one requirement he would want in place is to see financial results for this specific event, segregated from Tour de Palm Springs or anything else CVSPIN does. He wants to ensure that Palm Desert funds are being put to good use, while ensuring transparency and financial propriety. MR. STEARNS said he had no issues with that request, adding that none of the board members or the founder is compensated; they are all volunteers. Mayor Jonathan offered it wasn't that he was trying to impugn CVSPIN or all the great things they have done in the past, but this is a separate event coming to Palm Desert where sponsorship was requested, and Council's responsibility is to ensure its partnering with an organization that's transparent and has financial integrity, specific to the Palm Desert Event. Councilmember Harnik agreed, stating Palm Desert is adding its name to the event, so it wants to make sure of what it's accomplishing. Further, she asked if CVSPIN was a new name. MR. STEARNS replied it was not a new name, it was actually an acronym for Coachella Valley Serving People In Need, and they have been around for 20 years. Previously it was "Different Spokes for Different Folks" dating back to 1999. He hoped Council will go out and join the celebration, adding this was not just about a bicycle ride, because the Country was losing 22 veterans a day, and these funds can make a difference in these folk's lives, so this was very important to him. Councilmember Harnik moved to by Minute Motion, approve: 1) Patriot Ride For Our Heroes Bike Ride scheduled for Friday -Saturday, October 19-20, 2018, at Palm Desert Civic Center Park; 2) event sponsorship in the amount of $5,000; 3) temporary waiver of Palm Desert Municipal Code (P.D.M.C.) Sections: a) 11.01.140 - Amplified Sound in City Parks; b) 11.01.080(0) - Placement of Advertising Signage in City Parks; c)11.01.080(Q) - Vendor Sales in City Parks; d) 11.01.080(R) - Remain Overnight in City Parks; e) 11.01.080(W) - Possession/Consumption of Alcohol in City Parks, pursuant to P.D.M.C. 9.58.040 — funds are available in Account No. 1104416-4306201, with the condition that the City will receive a Profit and Loss Statement on this event. Motion was seconded by Harnik and carried by a 5-0 vote (AYES: Harnik, Kelly, Nestande, Weber, and Jonathan; NOES: None). Mayor Jonathan thanked Mr. Stearns for working with the City, and he looked forward to a successful and awesome event in October. Councilmember Harnik suggested getting some of the 29 Palms Marines to Palm Desert for the event. 29 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 23, 2018 E. REQUEST FOR AWARD OF CONTRACT FOR THE TRAFFIC SIGNAL HARDWARE UPGRADE PROJECT TO BEAR ELECTRICAL SOLUTIONS, INC., IN THE AMOUNT OF $374,707.50 (CONTRACT NO. C35770, PROJECT NO. 569-17). Management Specialist Cora Gaugush stated this contract was for the upgrade of hardware for 59 intersections throughout the City. She said staff has vetted BEAR Electrical Solutions, Inc., because they had not worked in Palm Desert before, so their references were extensively checked out. They are prepared to do to the project for $374,707.50. She pointed out that the City was going from 5-year bulbs to 15-year bulbs, which are recently available in all colors, adding that green had been available for a number of years, but now they include yellow and red. Councilmember Harnik moved to, by Minute Motion, award/authorize: 1) Subject contract for the Traffic Signal Hardware Upgrade Project to BEAR Electrical Solutions, Inc., Alvizo, California, in the amount of $374,707.50; 2) Director of Finance to set aside a 10% contingency in the amount of $37,470.80; 3) Mayor to execute said contract — funds are available in Account Nos. 2134250-4400100 - Measure "A" -Street Light/Traffic Capital Projects and 2344250-4400100 - Street Light Maintenance. Motion was seconded by Kelly and carried by a 5-0 vote (AYES: Harnik, Kelly, Nestande, Weber, and Jonathan; NOES: None). Mayor Jonathan said he's always amazed to see the range of bids, because one of them is over and twice as much as the low bid. Ms. Gaugush agreed, stating it's one of the reasons she made a call to the contractor to make sure they were accurate in their bid. F REQUEST FOR AWARD OF CONTRACTS FOR ON -CALL TRAFFIC/TRANSPORTATION ENGINEER CONSULTANT SERVICES TO ADVANTEC CONSULTING ENGINEERS, INC., AND INTERWEST CONSULTING GROUP, INC., EACH FOR A TERM OF ONE YEAR IN A TOTAL AMOUNT, IN AGGREGATE, NOT TO EXCEED $100,000. Mr. Garcia stated the goal of having these contracts in place is to mitigate not having these services available in-house due to recent retirements. Staff plans on revisiting this once the vacancies are filled. Further, the City has extended an offer, which has been accepted, to Mr. Randy Bowman who will be starting in the Public Works Department as a Senior/Traffic Transportation Engineer on September 4. He is from out-of-state, so it may take him some time to get up to date with California regulations, but these on -call services are greatly needed until the City is up to speed. 30 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 23, 2018 Mayor Jonathan commended Mr. Garcia on utilizing two vendors in this particular instance, which was novel and creative, it will be interesting to see how it will work out. Councilmember Harnik moved to, by Minute Motion: 1) Award subject contracts for On -Call Traffic/Transportation Engineer Services to Advantec Consulting Engineers, Inc., Irvine, California (Contract No. C37390A), and Interwest Consulting Group, Inc., Palm Springs, California (Contract No. C37390B), each for a term of one (1) year in a total amount, in aggregate, not to exceed $100,000; 2) authorize Mayor to execute same — funds are available in Public Works Administration Account, utilizing salary savings. Motion was seconded by Nestande and carried by a 5-0 vote (AYES: Harnik, Kelly, Nestande, Weber, and Jonathan; NOES: None). G. REQUEST FOR AWARD OF CONTRACT FOR THE 2018 CITYWIDE TREE PRUNING TO GEORGE SALINAS TREE PRESERVATION IN THE AMOUNT OF $362,100 (CONTRACT NO. C36980, PROJECT NO. 932-18) (JOINT CONSIDERATION WITH THE PALM DESERT HOUSING AUTHORITY). Landscape Supervisor Randy Chavez stated this contract is for the yearly hardwood pruning of the trees for the Housing Authority properties and City parks and medians. Additionally, staff is including Desert Willow Golf Resort as part of this contract. Councilmember/Member Harnik moved to, by Minute Motion, award/authorize: 1) Subject contract in the amount of $362,100 (City-$257,900; Desert Willow Golf Resort- $60,000; Housing Authority-$44,200) to George Salinas Tree Preservation, Yorba Linda, California; 2) Director of Finance to set aside a 10% contingency in the amount of $30,210 (City-$25,790, Housing Authority-$4,420) and 20% contingency for Desert Willow Golf Resort ($12,000), for a total of $42,210; 3) Mayor/Chairman to execute the contract; 4) City Manager to execute change orders in an amount of to exceed contingency amounts — funds are available for portion of the contract relative to City and Assessment Districts in Parks and Recreation Account Nos. 1104610-4332001, 1104610-4337100; Repair/Maintenance Medians Account No. 1104614-4337001; Desert Willow Account No. 4414195-4332000; and Assessment District Fund 200 Accounts; Housing Authority funding for the contract services is identified in the 2017-2018 and 2018-2019 Housing Authority Operating Budgets. Motion was seconded by Nestande and carried by a 5-0 vote (AYES: Harnik, Kelly, Nestande, Weber, and Jonathan; NOES: None). 31 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 23, 2018 H. CONSIDERATION OF A REQUEST BY ALLIED AFFORDABLE HOUSING, LLC, TO EXTEND CONTRACT AND ENTITLEMENTS FOR PROPOSED DEVELOPMENT OF ARC VILLAGE PROJECT AT THE HOUSING AUTHORITY VACANT PROPERTY KNOWN AS APN 622-020-096 (JOINT CONSIDERATION WITH THE PALM DESERT HOUSING AUTHORITY). Principal Planner Eric Ceja pointed out this was a joint consideration item with the Housing Authority. Two years ago Allied Affordable Housing, LLC, received entitlement approvals to construct an affordable housing complex at Desert Arc on Country Club Drive. Project entitlements are valid for two years, and the Applicant may apply for an extension. Because this project also has a lease agreement with the Housing Authority, staff decided to move the project entitlements to the City Council for its consideration along with the request for the lease extension. This project was considered for an extension by the Planning Commission and recommended approval of extending the entitlements for another year to May 2019. One of the actions for the Housing Authority is to also extend the lease for this land. The lease will expire on January 2019, but the project entitlements are valid until May 2019. Therefore, staff is asking to extend and align both the lease and entitlements to expire at the same time in May 2019. He noted Management Analyst Jessica Gonzalez and the Applicant were available to answer questions. Councilmember/Member Harnik asked if this project went out for a Request for Proposal (RFP). Mr. Ceja indicated it did not. Councilmember/Member Harnik said it's an important project and its been stalled, which she found disappointing, but she wasn't going to stand in the way of an extension. Mayor Pro TemNice Chairman Weber pointed out that the City was not holding it up, but if the extension wasn't approved, it would end this project. She asked if it was ever resolved on how they were going to go in and out from Country Club back to the project. Mr. Ceja replied staff is in constant communication with the Board of Desert Arc in discussing various options for access, stating the other concern raised was security. Councilmember/Member Kelly recalled the real hold up was the attempt to qualify for State Tax Credit Allocations, which was kind of a long shot, but worth taking. At this point, they are moving on to other sources of funding. 32 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 23, 2018 Mr. Ceja agreed, stating he may ask the Applicant to come up and explain the different sources of funding they have been pursuing. They did apply for the State Tax Credit, but they haven't been able to secure it. Instead of pursing that single source, they are now taking the approach of seeking multiple funding. Councilmember/Member Harnik asked that someone explain how this all came about if there was no RFP. Ms. Moore explained that back when this parcel was acquired by the Housing Authority, staff worked with Desert Arc in identifying things that would work with their community and clients they serve. Staff had local developers come in, and because of the strategic location of the property and the fact that it would only allow ingress and egress through the Desert Arc parking lot, two developers said it wouldn't work for them. The third developer, Allied Affordable Housing, LLC, approached staff about their option and talked to Desert Arc about the project they were proposing. At that time, Desert Arc representatives supported the project and brought that forward. She reminded Council this was happening right around when Redevelopment was eliminated. Because of the uniqueness of the parcel and with no other developers interested, the parcel is landlocked. Staff looked at every option to access that property through another mechanism, but then ended up with drainage issues due to the location and how it's situated. From this perspective, the City secured a drainage easement to the homeowner to the south in anticipation of a project such as this, but Allied was the only one that came forward with a compatible project for the location. As stated previously, staff worked with a couple of developers and suggested they look to secure financing in other ways, and another developer wanted to actually expand the project. She said the City owns the property to the east, Las Serenas, so staff considered an expansion of Las Serenas, but because the wall would have to be opened up, it would have created a different problem. It didn't appear that without significant amounts of money, and having to cross properties that go all the way down to Villa Portofino, that an adjustment could be made. Given the land lock, and the fact that Allied's project would help support the clients that Desert Arc serves, at that time, staff felt it was probably the best suggestion to the City Council for approval. Councilmember/Member Harnik recalled that at one time Desert Arc was opposed to having anyone use their parking lot for ingress and egress, so she's glad they chose to look at it differently. Ms. Moore added she received communication from Richard Balocco that he was okay with the extension. However, she's had conversations with him in the past where he has indicated discussion will need to take place, whatever 33 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 23, 2018 the project is, relating to the best solution for access, because it will be challenging. Councilmember/Member Harnik agreed, because at one time he was absolutely opposed, adding the City needs to make sure ingress and egress is acceptable to everyone. Mayor/Chairman Jonathan asked who owned the property. Ms. Moore said the Housing Authority owned the property. Further responding, she said originally the property was owned by Desert Arc and the Redevelopment Agency acquired/purchased the property for the Housing Authority with the idea that it would create something similar, expand Las Serenas, or provide a housing option. Mayor/Chairman Jonathan asked if the property would be given to Allied if they can put this project together. Ms. Moore explained that Allied will actually have a land lease, and they have asked that if certain conditions are met that it be extended as well. Therefore, the City does have a land lease with them and they do have control of the site. Mayor/Chairman Jonathan said he was hearing that if this particular operator is not able to make this happen, then the City needs to move to Plan B. He personally didn't have a problem with the extension, but it gets to a point where the City couldn't just have Allied keep on trying. He suspected this formula would work for others. Once Desert Arc gives access, then it becomes a very usable lot. Ms. Moore added that Mr. Balocco indicated to her months ago that his acceptance in a situation with this project designed the way it is and for the clients it's designed for, that access will be very limited. She said some of the clients do not drive, so they would not have access except pedestrian access. A lot of the access for ingress and egress would be for employees, and that would be at the community itself. Mayor/Chairman Jonathan replied he understood and recalled that conversation, but his point was that if this operator can't make it a reality, there are others who can. There has to be a point where there is a better alternative, and in his mind May 2019 would be that point. Councilmember/Member Kelly stated Council didn't want to prejudge, because it could be in a situation where there has been substantial progress. What seems meaningful to her is that an extension is being sought to afford 34 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 23, 2018 an opportunity to build one thing without the tax credit, so that option needs to be exhausted. Councilmember/Member Harnik believed everyone wants to see this project get done, but it has gone on for a long time. Councilmember/Member Kelly moved to, by Minute Motion: 1) consider a request by Allied Affordable Housing, LLC, Santa Monica, California, to extend Contract No. HA34970 and Case No. PP/CUP 16-102 entitlements through May 17, 2019, for the proposed development of the Arc Village Project at the Authority's vacant property known as APN 622-020-096; 2) authorize legal counsel to prepare and finalize an extension contract; 3) authorize the Chairman and/or Executive Director, or designee, to execute any necessary actions, including executing the negotiated extension contract and any and all documents necessary to facilitate the contract and the Arc Village Project. Motion was seconded by Harnik and carried by a 5-0 vote (AYES: Harnik, Kelly, Nestande, Weber, and Jonathan; NOES: None). XVII. CONTINUED BUSINESS A. INFORMATIONAL REPORT RELATED TO TEMPORARY SALES OF AUTOMOBILES IN THE CITY (Continued from the meeting of June 28, 2018). Principal Planner Eric Ceja stated staff met after the last City Council meeting with the representatives from Westfield Mall and explained what the City was looking at for Temporary Use Permits for automobile sales on site. They felt it was an important part of their operations and staff emphasized to them that it will be vetting those requests more closely. Mayor Jonathan said he didn't want to rob Westfield of additional revenue opportunities, but he certainly didn't want to do it to the detriment of the City. He said he still struggles with the image he saw in the past, stating he rather see a University Town Center, today's kind of mall, and not one that has a used car sale on a prominent corner such as Monterey Avenue and Highway 111. He asked that the City Council be notified when an application is received from Westfield for a car sale. Mr. Ceja agreed to do so. With City Council concurrence, the informational report related to temporary automotive sales events in the City was received and filed. XVIII. OLD BUSINESS None 35 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 23, 2018 XIX. PUBLIC HEARINGS None XX. ADJOURNMENT With City Council concurrence, Mayor Jonat ATTEST: RA ELLE D. KLASSEN'tITY CL CITY OF PALM DESERT, CALIFORNIA r ed • - ..eeting at6:23 p.m. , MAYOR 36