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HomeMy WebLinkAbout2018-06-28MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING THURSDAY, JUNE 28, 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 3:06 p.m. II. ROLL CALL Present: Councilmember Jan C. Harnik Councilmember Kathleen Kelly Councilmember Gina Nestande Mayor Sabby Jonathan Absent: Mayor Pro Tem Susan Marie Weber Also Present: Lauri Aylaian, City Manager Robert W. Hargreaves, City Attorney Rachelle D. Klassen, City Clerk Lori Carney, Director of Administrative Services Russell Grance, Director of Building & Safety Ryan Stendell, Director of Community Development Martin Alvarez, Director of Economic Development Janet M. Moore, Director of Finance/City Treasurer Tim Jonasson, Interim Director of Public Works Andy Martinez, Admin. Sgt., 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: A. Conference with Real Property Negotiator pursuant to Government Code Section 54956.8: MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 28, 2018 1) Property: NWC Highway 111/San Pablo Avenue (APNs 627-096-004, -015, -016, and -019) Negotiating Parties: Agency: Lauri Aylaian/Martin Alvarez/City of Palm Desert Property Owner: Village Complex LTD Partnership 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 3:07 p.m. He reconvened the meeting at 4:03 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 Jan C. Harnik VII. INVOCATION - Mayor Sabby Jonathan VIII. AWARDS AND PRESENTATIONS A. PRESENTATION OF PROCLAMATION DECLARING THURSDAY, JUNE 28, 2018, AS "CVWD CENTENNIAL ANNIVERSARY DAY" IN THE CITY OF PALM DESERT. On behalf of the entire City Council, Mayor Jonathan presented the proclamation to Mr. Anthony Bianco, who represents Palm Desert on the Coachella Valley Water District Board. He noted agriculture was the Valley's second biggest industry, which was a credit to the water that is available and all that CVWD did in that regard. Mr. Bianco stated this Centennial Anniversary is very special because they are recognizing something that's been in existence for 100 years in the Desert. This day was about what the forefathers and founders did for the entire Valley from Mecca to Palm Springs. Without their insight to bringing water in from the All -American Canal and State Water Project, this Valley would look very different, and the District is set up for another 100 years. He added the District has some of the cheapest water rates in the State of California and there is a good share of water available. He presented the 2 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 28, 2018 Mayor with a copy of their recently published book titled "The Story of the Coachella Valley Water District." The book is online for free or $15.99 for a hard copy. B. PRESENTATION OF INFORMATIONAL REPORT TO THE CITY COUNCIL BY PALM DESERT CHARTER MIDDLE SCHOOL ON ITS PANTHER 5K EVENT. Assistant Principal Chris Geyer said he came to brag about the incredible students at PDCMS and the Panther 5K Event. First, this event couldn't happen without the grace of God, the support of the City of Palm Desert, the PDCMS Foundation, the Parent Teacher Organization (PTO), parents, teachers, and the student volunteers. The Authors, Athletes & Community Action Triathlon is the only triathlon of its kind; it consists of writing, running, and community service for a charitable organization. The event was inspired by Dr. Scott Tinley, who is an author, two-time winner of the Hawaii Ironman, and is a Hall of Fame Triathlete. He went on to describe the number of participants, winners, and sponsors of this successful event, and he displayed photographs and a video as well. He closed by again thanking the City Council. C. PRESENTATION TO THE CITY COUNCIL OF RECAP FROM THE 2018 FASHION WEEK PALM DESERT AND THE FOOD & WINE FESTIVAL BY PALM SPRINGS LIFE. Palm Springs Life Owner Frank Jones noted he and Director of Sponsorships & Community Relations Michael Mathews were here this evening representing Fashion Week on El Paseo and Food & Wine Festival. He said booklets on both events were provided to the City Council, but this evening he would be providing a summary recap. He offered to go over details with the City Council at a later date if it so wished. Overall, the events were a tremendous success. In terms of the numbers, attendance growth was record setting with 13,000 attending Fashion Week alone. The out -of - market attendance was 54% of the 13,000, which was good and heading in the right direct. The economic impact of the event is on the up swing with $4,950,000, which includes overnight stays, hotel rooms, and general spends. They conducted a survey of the ticket holders by providing them with a questionnaire, and they had more than 200 respondents. The results indicated that more than 70% had overnight stays; 91% dined out; 80% shopped or went to El Paseo, and 74% actually made purchases. Additionally, a resounding 84% indicated they would return. Now the statistics for the Food & Wine Festival are slightly different, but generally the same. Attendance again was record setting with more than 5,000 attending, and 68.2% came from out of the area, which is substantially higher than Fashion Week, stating people tend to travel more for food. The economic impact is on the rise with almost $2 million, pointing out that overnight stays 3 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 28, 2018 were slightly higher than Fashion Week. Despite how well people were fed at this event, 80% still dined out; 71 % actually made purchases, and almost 90% promised to return. They are fast at work planning for next year as they already have a number of celebrity chefs signed up. Palm Springs Life will be back in the fall to update the City Council about their progress going into next year. Councilmember Kelly inquired about the 12% that indicated they wouldn't be coming back. Mr. Jones responded they generally like to keep their dissatisfied percentage at 5% or below, but in answering the question about whether they would be returning, it just might mean people won't be coming back at that particular time. Mayor Jonathan commented it was an awesome event. He knew in the past the City Council has had a study session, and if Council wanted one, staff will reach out to Palm Springs Life to do it again. Speaking as someone who doesn't appreciate the fine points of wine, the tent for spirits with tequila tasting was a wonderful addition, so he hoped that will be considered for next year as well. IX. ORAL COMMUNICATIONS - B MR. BRAD ANDERSON, Rancho Mirage, CA, approached the City Council to talk about the Coachella Valley Mosquito and Vector Control District (CVMVC) and West Nile. He believed West Nile is preventable, because all one had to do was keep the mosquito count down to a manageable level, considering what the people in the Coachella Valley pay for that service. He noted he was a past employee of the CVMVC who was terminated from the District for doing a very good job. He brought with him a small catch basin or bubbler boxes for drainage to show that they can be installed incorrectly or backward, thereby, retaining water longer than they should. He suggested placing a screen on them, which brings the trap count down, although he didn't have any scientific data to back it up. He said it's a small aspect of what people in the City can do in monitoring mosquitos around their homes. As far as the reporting of West Nile in Palm Desert and Indian Wells, again when he worked for the District he wasn't allowed to go into neglected swimming pools or sites that haven been seen in four or five months, which might have made a difference. The District is proposing raising the assessment rate, and a meeting will be held on July 11, at the Indio District office, so if you are in favor or opposed, he suggested you attend. 4 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 28, 2018 X. MAYOR AND COUNCILMEMBER REPORTS & REMARKS TO THE COMMUNITY A. Councilmember Jan C. Harnik Committee Reports and General Comments. 1. Joslyn Center Board Meetina - attended in Councilmember Kelly's absence. She announced that a Brain Boot Camp class is coming up that was developed through University of California, Los Angeles (UCLA); it's a 3-hour class. Its goal is to delay or prevent cognitive disorders like dementia and Alzheimer. Another program they are offering is the Aging Mastery Program, and they are entertaining the idea of a Smoking Cessation Class. 2. Palm Desert Area Chamber of Commerce 64th Annual Business Awards - announced that General Manager Gil Reyes won Emerging Leader of the Year. She said it probably wasn't a surprise to anyone who has dealt with Mr. Reyes. She added Hotel Paseo was ranked ahead of the Ritz Carlton in a survey done last month, and the scores for the last 12 weeks showed Hotel Paseo as No. 1 against eight or nine other competitors across the Valley. The hotel is doing well and making the City proud, stating it all had to do with customer satisfaction. B. Councilmember Kathleen Kelly Committee Reports and General Comments. 1. Desert Community Enerav (DCE1 - this new system will become available as a source for slightly lower and slightly greener power, starting August 1. The main point is that the system is on schedule to launch August 1, and by now all Palm Desert residents should have received a letter in the mail which gives an explanation about the program, and it will provide the website and telephone number to get questions answered. More, importantly, the opportunity to opt out if residents want to continue to have Southern California Edison (SCE) supply the power. In either case, everyone will still get their bill from SCE. She explained that half of that bill will still be paid to SCE to pay for the infrastructure that delivers the power. This effort was made to provide residents more flexibility and choices. C. Councilmember Gina Nestande Committee Reports and General Comments. 1. Convention and Visitors Bureau (CVB) - noted the City Council had a one -hour study session with the CVB, and they are tasked with bringing conventions and visitors to the Valley for the purpose of economic growth. She attended an event last week called Global Ready India, and the organization over the last five years has steadily increased spending with International Travel. This particular seminar focused on the Country of India, Europe and other places. They 5 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 28, 2018 really believe India is the next place for a huge growth market. Statistically, they currently have 1.3 billion people and 50 million of them travel. The medium age is 29, and they like to spend a lot of money and enjoy traveling April through July, at a time when June and July are quiet months here in the Valley, so it would be great to tap into this market. She looked forward to talking to Tourism and Marketing Manager Thomas Soule and the CVB to look into this International Travel. D. Mavor Pro Tem Susan Marie Weber Meeting Summaries Report for the Period of May 25 - June 15, 2018. With City Council concurrence, the Meeting Summaries Report was received and filed. E. Mavor Sabbv Jonathan Committee Reports and General Comments. 1. The BrivhtSide Newsletter - called attention to the City's bi-monthly newsletter. He was reminded how useful and comprehensive this document is. He complimented Information Officer David Hermann who single-handedly puts it together every couple of months. As a resident of Palm Desert, you will learn about all the cool things happening in the City, and on the back of the newsletter, is the information on the Desert Community Energy (DCE). He said the DCE system is a great way to save a little bit of money on your bill, but also an opportunity to upgrade to more green energy. You can also opt up, which he did earlier today. He noted that for the same price your paying SCE now, you can go up to 100% carbon -free energy, adding the DCE was all about having choices. 2. Fourth of Julv Celebration - announced that the actual fireworks go off at 9:00 p.m. at the Palm Desert Civic Center Park. He encouraged everyone to arrive early as there will be seven food trucks this year, a wonderful live band, and there is no charge to attend. He thanked the City of Indian Wells for contributing funds to make it happen. F City Council Reauests for Action. None G. City Council Consideration of Travel Reauests/Reports. None 6 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 28, 2018 XI. STAFF REPORTS AND REMARKS A. City Manager 1. City Manager's Meeting Summaries Report for the Period of June 4 - 15, 2018. With City Council concurrence, the Meeting Summaries Report was received and filed. 2. Mark Diercks' Retirement -congratulated and thanked Transportation Engineer Mark Diercks' on 17 years of great service to the City. Today is his last day, stating he has been a stellar and knowledgeable resource and made a difference for those who chose to drive, bicycle, or walk in the City of Palm Desert. 3. Award of Excellence - announced that Principal Planner Eric Ceja received the Award of Excellence this year from the Palm Desert Area Chamber of Commerce. Everyone is very proud of the work he's done in the past year and she thanked him for it. B. City Attorney None C. City Clerk None D. Public Safety 1. Fire Department None 2. Police Department None 7 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 28, 2018 XII. CONSENT CALENDAR A. MINUTES of the Regular City Council Meeting of June 14, 2018. Rec: Approve as presented. B. CLAIMS AND DEMANDS AGAINST THE CITY TREASURY - Warrants Dated 5/31/2018, 6/1 /2018, and 6/8/2018. Rec: Approve as presented. C. CLAIMS AND DEMANDS AGAINST THE CITY/HOUSING TREASURIES - Warrants Dated 6/8/2018 and 6/15/2018 (Joint Consideration with the Palm Desert Housing Authority). Rec: Approve as presented. D. APPLICATION FOR ALCOHOLIC BEVERAGE LICENSE by Haus of Pizza, 72795 Highway 111, Suite G2, Palm Desert. Rec: Receive and file. E. CITY COMMITTEE AND COMMISSION MEETING MINUTES. 1. Parks & Recreation Commission Meeting of April 3, 2018. 2. Public Safety Commission Meeting of April 11, 2018. 3. Youth Committee Meeting of April 9, 2018. Rec: Receive and file. F. LETTER OF RESIGNATION from Wade Tucker - Housing Commission. Rec: Receive with very sincere regret. G. REQUEST to Accept Resignations of Ten (10) Palm Desert Youth Committee Members and Appoint Eight (8) New Members to the Resulting Vacancies. Rec: By Minute Motion: 1) Accept the resignations of Palm Desert Youth Committee Members Matthew Chang, Isaac Cho, Patricia Dan, Olivia Frary, Tacie Johnson, Clare Kim, Tazz Ross, Jenny Schwartz, Uriah Shaw, and Daria Wood; 2) appoint Marco Capobianco, Alan Cho, Hailey Dewegeli, Savannah Duckworth, Erin Kulas, Teana Ross, Jacqueline Scibona, and Todd Shaw to the Youth Committee to fill vacancies in the terms of the former members (to December 31, 2018). 8 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 28, 2018 H. REQUEST FOR ADOPTION of Resolutions, Setting Forth Findings and Authorizing the Destruction of Paper Records that Have Been Digitally Imaged from the Department of Building & Safety, to Rely on the Electronic Record as the Official Record — Records from August 2016, September 2016, and October 2016. Rec: Waive further reading and adopt Resolution Nos.: 1) 2018 - 42 - August 2016 Records; 2) 2018 - 43 - September 2016 Records; 3) 2018 - 44 - October 2016 Records. I. RESOLUTION NO. 2018 - 45 - 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 Code Compliance, to Rely on the Electronic Record as the Official Record — Closed Cases from 2016 (Exhibit "A"). Rec: Waive further reading and adopt. J. REQUEST FOR AUTHORIZATION for the Information Systems Department to Use the Vendor List for Technology Equipment Purchases in a Total Amount Not to Exceed $150,000 for Fiscal Year 2018-2019. Rec: By Minute Motion, approve the Information Systems Department Vendor List for technology equipment purchases in a total amount not to exceed $150,000 and authorize the City Manager to execute agreements — all vendors have been selected through competitive bidding procedures by the State or Federal Government — funds are available in the Equipment Replacement Fund. K. REQUEST FOR APPROVAL of the Fiscal Year 2018-2019 City -Produced Events Authorized Vendor List. Rec: By Minute Motion: 1) Grant an exception to bidding requirements, as provided for in Sections 3.32.060 and 3.32.065 of the Palm Desert Municipal Code, not to exceed $25,000 for any one vendor during FY 2018-2019; 2) approve the FY 2018-2019 City -Produced Events Authorized Vendor List. 9 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 28, 2018 L. REQUEST FOR AWARD OF PURCHASE for 118,000 Pounds of Grass Seed to Foster -Gardner, Inc., in the Amount of $125,507.20. Rec: By Minute Motion, award purchase of 118,000 pounds of grass seed to Foster -Gardner, Inc., Coachella, California, in the amount of $125,507.20 — funds are available in General Fund Account Nos. 1104610-4332001 - R/M Civic Center Park, 1104610-4337100 - R/M Tri-Cities Sport Facility, 1104611-4332001 - R/M Parks, 1104614-4337001 - R/M Medians, and Account No. 2764374-4332100 - R/M Haystack for the City's portion, and Desert Willow Corporation will fund the balance. M. REQUEST FOR AUTHORIZATION for Desert Willow Golf Resort to Purchase Liquid Fertilizer Products from Crop Production Services During Fiscal Year 2018-2019 in the Amount of $77,666.20 (Project No. 843-19B). Rec: By Minute Motion, authorize the Desert Willow Golf Resort to purchase liquid fertilizer products from Crop Production Services, San Jacinto, California, during FY 2018-2019 in the amount of $77,666.20 — contingent upon approval of the City's FY 2018-2019 Budget, funds will be available in Account No. 5204195-4803100 - Course and Grounds Expenses. N. REQUEST FOR APPROVAL of the 2018 Y-Be-Fit Palm Desert Challenge on Sunday, October 7, 2018 (Family YMCA of the Desert, Applicant). Rec: By Minute Motion, approve: 1) Y-Be-Fit Palm Desert Challenge scheduled for Sunday, October 7, 2018; 2) proposed event route and road closures; 3) temporary waiver of Palm Desert Municipal Code Section 11.01.140 - Amplified Sound for the event. O. INFORMATIONAL REPORT Related to Temporary Sales of Automobiles in the City. Removed for separate consideration under Section XIII, Consent Items Held Over. Please see that portion of the Minutes for Council discussion and action. Mayor Jonathan requested Item 0 be removed for separate consideration. Upon motion by Harnik, second by Nestande, and 4-0 vote of the City Council (AYES: Harnik, Kelly, Nestande, and Jonathan; NOES: None; ABSENT: Weber), the remainder of the Consent Calendar was approved as presented. 10 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 28, 2018 XIII. CONSENT ITEMS HELD OVER O. INFORMATIONAL REPORT Related to Temporary Sales of Automobiles in the City. Mayor Jonathan noticed a couple of months ago there was a used car sale at the south east parking lot at the Westfield Town Center. He was concerned about it because it didn't seem to represent the direction it was going for the vision of the City. He said the staff report included some of the history, but where did staff see this going in the future. Principal Planner Eric Ceja replied that in the past, because it hasn't had traditional auto dealers in the City, outside dealers have been allowed to come in where there is sufficient parking availability like at Westfield and Walmart to bring vehicle stock for citizens to purchase vehicles. In the past aesthetics was looked upon, and site planning is always reviewed for adequate vehicle and emergency access, and they will continue to do so. Mayor Jonathan asked what would be the procedure if Council wanted to be apprised ahead of time if there are potentially sensitive applications, particularly those that might be in conflict with the City's vision for the future. Further, how does the City implement a procedure where it's not looking at a fait accompli, questioning if there was a methodology the City can implement to ensure input is obtained before the permit is issued. Mr. Stendell offered that currently permits are issued at staff level through a Conditional Use Permit (CUP), and because he lived through the previous history on this issue, he would prefer Council provide clear direction as to whether it would like them at this location or not, because staff runs into the same questions about the appropriateness of an event. He asked Council to steer away from asking for data prior to issuing a permit, adding he rather have Council provide staff with updated direction on the issuance of CUP and they will implement accordingly. Mayor Jonathan stated that from his perspective, he didn't think used car events belonged on the Westfield property, particularly when visible from Monterey Avenue and Highway 111. Councilmember Kelly offered the opposite perspective, stating there is nothing enheredly negative about a used car. As a matter of fact, people say it's a wiser purchase, and the prevalence of leasing now means that many high -quality vehicles are now available for sale as used cars. When she saw the tent go up recently, she actually had a happy reaction, because it looked like something was going to be happening in a space that is usually empty. Also, that the event may attract people to do some shopping at the Westfield 11 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 28, 2018 Center, but she was disappointed that it wasn't ponies. Her own perspective is that in 2009, the City Council was influenced by an economic challenge. The Center is still facing some economic challenges, so if there is something that's tasteful and brings the potential dividend by causing more activity to be present, she was all for it. Mayor Jonathan clarified he didn't have an issue with used cars, stating he has purchased used cars and probably will again; this was about the Westfield Mall. He said staff and Council have been working hard to enhance it, as they have reached out to Westfield, went to Las Vegas to meet with them, and there is tremendous effort to bringing Westfield into the 21 ' Century. It is an old aging mall, utilizing the old model of retail, and many are concerned about it. There are efforts to bring the mall into the 21 ' Century in an event -type of place that successful malls are transitioning into, and having a used car event is a step backwards. There is nothing wrong with used car lots, which is why there are zoned areas for them, but Westfield is not a place for them. Councilmember Nestande agreed, stating there is a used car sale every year at Walmart and Sam's Club, which are more conducive areas for them. Mayor Jonathan moved to, by Minute Motion, prohibit permits for used car lots at the Westfield Town Center. Motion was seconded by Nestande. Mr. Hargreaves recommended bringing this issue back as an agenda item, stating Westfield Town Center may have input to offer. Councilmember Harnik moved to, by Minute Motion, continued this item to the meeting of August 23, 2018. Motion was seconded by Kelly. Councilmember Harnik said it's not that Westfield is not generating revenue for the City, because it is, so this is something that needs to be looked into. She understands Council wants to evolve with the change of the Mall, but for about two weeks out of the year that parking lot sits empty. She didn't know who owned that specific parking lot, because they are broken up in parts; Sears owns a part and Westfield owns another part. She agreed it needs to be looked at aesthetically along with signage, but right now it may be generating revenue for the City if its done well. She asked who was entitled to the sale tax from those vehicles. Ms. Moore explained it was based on the location of where the driver lives. It doesn't necessarily mean that it comes to Palm Desert, it means that it goes to Riverside County and then allocated accordingly. Mayor Jonathan pointed out the staff report indicates there was $41,500 received by the City in 2016, and $48,155 in 2017. 12 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 28, 2018 Ms. Moore agreed, stating because that sale occurred in Palm Desert, those sales were attributable to Palm Desert. However, if someone purchases outside of the City at another dealership, but lives in Palm Desert, the City gets a portion of that as well. Councilmember Harnik commented the City should hope there is a time when it's absolutely inappropriate to have use car sales at Westfield, but until that time comes, the City should deal with permits in an appropriate aesthetic fashion. Mayor Jonathan called for the vote and the motion carried by a 4-0 vote (AYES: Harnik, Kelly, Nestande, and Jonathan; NOES: None; ABSENT: Weber) XIV. RESOLUTIONS A. RESOLUTION NO. 2018 - 46 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, APPROVING THE FINAL SUBDIVISION MAP OF TRACT MAP NO. 36793 (Palm Ventures PA-1, LLC, Applicant). Assistant Engineer Christina Canales stated the Resolution is to approve the second phase of a two-phase tract map. Tract Map No. 36793 is located on the northeast corner of Gerald Ford Drive and Portola Avenue. This map is subdividing one parcel into 70 single-family residential lots. Councilmember Harnik moved to waive further reading and adopt Resolution No. 2018 - 46. Motion was seconded by Kelly and carried by a 4-0 vote (AYES: Harnik, Kelly, Nestande, and Jonathan; NOES: None; ABSENT: Weber). XV. ORDINANCES A. For Introduction: None B. For Adoption: None 13 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 28, 2018 XVI. NEW BUSINESS A. REQUEST TO RECEIVE AND FILE 2018 CLASSIFICATION AND COMPENSATION STUDY FINAL REPORT, APPROVE THE PROPOSED CLASSIFICATION SYSTEM, AND ESTABLISH A SALARY POLICY UTILIZING THE 70T" PERCENTILE OF THE DEFINED LABOR MARKET. Ms. Carney stated that in May 2017, the City Council approved a contract with Koff & Associates to conduct a Comprehensive Classification and Compensation Study, and the report before the Council represents the culmination of both of those efforts. The report incorporated hundreds of hours in research and interviews with all employees and managers, and all other levels of the organization. Implementing this revised Classification and Compensation Plan will allow the City to retain and attract a qualified and talented workforce moving forward. It will also allow the City to pay a fair wage and provide a significant savings on salary and benefits going forward. She noted Ms. Alyssa Thompson, representing Koff & Associates was available to answer questions. Councilmember Kelly said it was her understanding that the implementation method is intended to ensure current employees do not experience an adverse financial consequence. Ms. Carney said that was correct, and later in the agenda as part of the budget, is a side letter from the Palm Desert Employee's Organization (PDEO), which also spells it out. Councilmember Kelly called attention to a sentence in Volume II, page 12, where it states, "Overall, the differences between market base salaries and total compensation indicate that the City's benefits package puts the City at a less competitive advantage." This sentence caught her attention, because as indicated by staff, the goal is to ensure the City is competitive when it seeks to fill a vacancy. She asked if there will be follow up to look at the circumstances that this sentence alludes to, to see if revisions are warranted. Ms. Carney answered yes, stating staff will continue to monitor and work with employees to see what the market and neighboring cities are doing. It's a complicated question when we talk about benefits, and the most complicated aspects of it are pension benefits. As you know, pension reform provides a level -playing field for all new employees, but it doesn't provide a level -playing field for what is called "classic members," people moving from agency to agency. The City of Palm Desert's proactive action early on in the financial and pension crisis when it reduced the City's pension formula in 2009 to 2% at 55, other agencies weren't so quick to make that kind of change, which took away their ability to reduce their formulas for employees who are these 14 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 28, 2018 "classic members." While all new employees receive the same formula, the City could be seeing a slight disadvantage to some cities, because of their "classic member" pension formula. Over time, through attrition, it will correct itself. She continues to believe that while some things may be on paper and data, less competitive, Palm Desert offers other intangible benefits that outweigh that issue. In fact, the City conducted interviews yesterday for Director of Public Works, which is a significant position for the City, and received highly qualified candidates who were interested in working for Palm Desert for those intangible benefits it offers and the ability to work in this City. Councilmember Kelly pointed out that this sentence refers to the City's leave benefits, vacation, holiday, etc., as not being competitive, so does the City intend to look at it comparatively. Ms. Carney replied staff is always looking to see what other employers are doing and how they are offering leave benefits, but that's also a changing marketplace. She said Palm Desert and other cities are making changes and negotiating with their employees, and in the future you will see employers providing less generous leave benefits, especially when comparing to the private sector. While neighboring cities have slightly more generous leave benefits for tenure employees, they are making changes as well. However, she didn't think it was making a big difference in the City's ability to attract new employees. Councilmember Kelly urged staff to be particularly alert around this issue since the City paid for the study and it has made this advice. Ms. Carney concurred. Mayor Jonathan offered that the City has invested a great deal of time, resources, and money in this project. He thanked Ms. Carney for doing an amazing job in carrying the ball. He said the greatest asset this City has are its employees, and it has been very fortunate to attract the best and brightest, and the most committed and passionate employees that he's observed. This was all about keeping that going, stating Council recognizes how important it is and appreciates that was the goal and objective, but it's something that will continue to be monitored. Councilmember Harnik added this was a long time coming, and she knew it was a difficult process, but now that the Classification and Compensation Study is complete, some of those vacancies that were put on hold can now be posted. She encouraged those interested to apply. Ms. Carney agreed, stating the City was looking for engineers, analyst, and office specialists. 15 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 28, 2018 Councilmember Harnik moved to, by Minute Motion: 1) Receive and file final report for the 2018 Classification and Compensation Study; 2) approve the proposed position classification system; 3) establish a salary policy targeting the 70'h percentile of the defined labor market for benchmark position salaries. Motion was seconded by Nestande and carried by a 4-0 vote (AYES: Harnik, Kelly, Nestande, and Jonathan; NOES: None; ABSENT: Weber). B. REQUEST FOR AWARD OF CONTRACT TO IDEAPEDDLER, LLC, TO PROVIDE MARKETING SERVICES FOR FISCAL YEAR 2018-2019 (CONTRACT NO. C37180). Tourism & Marketing Manager Thomas Soule stated the City was required to go out for a Request for Proposals (RFP) for the next fiscal year. The RFP elicited 20 responses from around the Country with an excellent showing. After a thorough review, the Marketing Committee met with the three finalist agencies and unanimously agreed to recommend Ideapeddler, LLC, for City Council consideration, and staff concurred with that assessment. Councilmember Harnik said she was fortunate enough to take part in the selection process, and Ideapeddler gave such a clear, concise, and creative presentation, making it easy for the Marketing Committee to make their decision. Councilmember Harnik moved to, by Minute Motion: 1) Concur with the Marketing Committee's recommendation and award subject contract to Ideapeddler, LLC, Austin, Texas, for marketing services from July 2018 through June 2019 in the amount of $92,560.80, which includes $68,560.80 for marketing services plus reimbursement in an amount not to exceed $24,000 for travel costs; 2) authorize the City Attorney to make non -substantive changes to the contract and the Mayor to execute same on behalf of the City —funds are available in Professional Other, Account No. 1104417-4309000 FY 2018- 2019. Motion was seconded by Nestande and carried by a 4-0 vote (AYES: Harnik, Kelly, Nestande, and Jonathan; NOES: None; ABSENT: Weber). C. REQUEST FOR APPROVAL OF PROPOSED SPECIAL EVENTS FOR FISCAL YEAR 2018-2019. Management Analyst Amy Lawrence stated this request is for approval of City produced events for Fiscal Year 2018-2019. Attached to the staff report is the worksheet that was presented to the City Council during the Budget Study Session in May. Councilmember Kelly moved to, by Minute Motion, approve/authorize: 1) Proposed Special Events for FY 2018-2019; 2) City Manager to take any necessary action to facilitate the Special Events, including adjustments to funding amounts or events, provided the total does not exceed $202,000; 3) City Manager to execute any agreements associated with 16 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 28, 2018 events, if applicable; 4) City Manager to award contract to a consultant to be determined for production of the Swing 'N Hops Street Party in an amount not to exceed $56,000 — funds for these purposes will be available in Account No. 1104416-4306101. Motion was seconded by Nestande and carried by a 4-0 vote (AYES: Harnik, Kelly, Nestande, and Jonathan; NOES: None; ABSENT: Weber). D. REQUEST FOR APPROVAL OF PROPOSED SPONSORSHIPS FOR FISCAL YEAR 2018-2019. Management Analyst Amy Lawrence stated this item is a request for approval of the City's sponsorship for Fiscal Year 2018-2019. Attached to the staff report is the worksheet that was presented at the Budget Study Session in May. Mayor Jonathan stated the staff report is asking for authorization for the City Manager to make minor changes to the proposed sponsorship list at her discretion, and to approve miscellaneous sponsorships and vendors during the fiscal year. It struck him as open ended in that he didn't know what minor changes are, and they could be subject to interpretation. Ms. Lawrence explained that the $30,000 miscellaneous sponsorships are referring to the table sponsorships for the Nine Cities Challenge or United Way that come before the City. Mayor Jonathan said he was more concerned about approving the proposed sponsorship list and later finding out that the City is actually sponsoring some other list. Ms. Lawrence said that under miscellaneous sponsorships is the First Weekend events, such as the Live Well Festival, which is where the City Manager would have the authority to approve $5,000 for that event. Mayor Jonathan posed the question in a different way, in that these organizations have an expectation that they will be funded as indicated, so Council is not granting the City Manager discretionary authority to change it. Ms. Lawrence said that was correct. Ms. Aylaian added it was for unexpected opportunities that come up through the course of the year typically in the form of tables and lunches. Occasionally, things come up that requires tweaking in the vendors, and rather than coming back to the City Council each time, this will allow her to address it. 17 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 28, 2018 Councilmember Harnik noted the Nine Cities Challenge (blood donation) was coming up July 2, 2018, at the Desert Recreation District, stating last year the City came close to getting first place. Councilmember Harnik moved to, by Minute Motion, approve/authorize:1)Proposed sponsorships for FY 2018-2019; 2)City Manager to make discretionary changes as needed; provided the total does not exceed $536,000; 3) City Manager to approve miscellaneous sponsorships during FY 2018-2019; 4)City Manager to approve vendors for each sponsorship; 5) City Manager to execute sponsorship agreements, if applicable — funds for these purposes will be available in Account No. 1104416-4306201. Motion was seconded by Kelly land carried by a 4-0 vote (AYES: Harnik, Kelly, Nestande, and Jonathan; NOES: None; ABSENT: Weber). E. REQUEST FOR APPROVAL OF A THREE-YEAR AGREEMENT FOR ANIMAL CONTROL FIELD AND SHELTER SERVICES TO THE COUNTY OF RIVERSIDE DEPARTMENT OF ANIMAL SERVICES IN AN AMOUNT NOT TO EXCEED $240,000 ANNUALLY (CONTRACT NO. C37190). Mr. Stendell noted the staff report regarding continuation of ongoing services with Riverside County Animal Control Services. Councilmember Nestande stated she had constituents tell her they are concerned about wildlife going into their back yards and taking their pets, asking if staff was aware this was happening. Mr. Stendell replied he hadn't heard about any recent incidents, but if he can get the contact information on the constituents, perhaps, staff, animal control, parks, or code compliance can assist. In the past they have addressed coyotes. Mayor Jonathan said he couldn't resist the temptation to say that some people perceive that we have actually invaded their territory. Councilmember Nestande agreed, because the City has built homes in their habitat. Councilmember Kelly offered that for the most part, Animal Control does not get involved with wildlife, but she's heard staff has been creative in cobbling together responses that are helpful. Mayor Jonathan concurred, stating staff has spoken to neighborhood groups and explained ways they can protect their pets as well. Councilmember Kelly moved to, by Minute Motion: 1) Award subject three-year Agreement for Animal Control Field and Shelter Services to County of Riverside in an amount not to exceed $240,000 annually - said contract shall renew automatically in one-year increments from July 1, 2018, to June 30, 2021, subject to final review and 18 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 28, 2018 approval of the City Attorney; 2) authorize the Mayor to execute subject Agreement; 3) approve exception to bidding requirements, as provided for in Section 3.30.160(J) of the Palm Desert Municipal Code for this purpose — funds will be available in the proposed FY 2018-2019 Budget, Professional Services - Account No. 1104230-4309000, and funding for subsequent years will be appropriated during the annual budget process. Motion was seconded by Harnik and carried by a 4-0 vote (AYES: Harnik, Kelly, Nestande, and Jonathan; NOES: None; ABSENT: Weber). F. REQUEST FOR REVIEW AND RATIFICATION OF FITNESS PASS FEE INCREASE FROM $25.00 TO $50.00 PER YEAR BY THE DESERT RECREATION DISTRICT, AS ALLOWED BY CONTRACT NO. C32410, SECTION 5.1.1. Management Analyst Johnny Terfehr stated this item is for the City Council's ratification of a fee increase of the Fitness Pass, which is allowed per the Agreement with the Desert Recreation District. The District has voted to increase the fee and are asking for City Council approval. Responding to question, he confirmed the Parks & Recreation Commission approved the increase on a 7-1 vote. Councilmember Harnik commented she would like to hear Commissioner Housken's reasons for voting against. Mr. Stendell said the minutes reflect she was in favor of the $4+ a month increase, because it was a good deal for the Fitness Pass, adding that her dissent had more to do with procedure in nature. Councilmember Harnik agreed, but the increase is twice as much as last year. During the Budget Study Session, Council was talking about being a "Wellness City" and it just seems abrupt to double the fees. She asked if the users of the Fitness Pass knew it was coming and were they notified, because the increase is significant. MR. KEVIN KALMAN, General Manager for Desert Recreation District (DRD), explained that the DRD started this process over a year ago and it had been tabled by the Palm Desert Parks and Recreation Commission last October, and they finally heard it in April. The increase was scheduled to go into effect January 1, 2018, with a six months notice. It was also an opportunity to purchase next year's pass early so they can get the old fee rate. Now the intended start date is January 1, 2019, giving six months notice before the increase takes effect. This is the first increase since 2006, and the second increase since the facility opened its doors. This is in response to the 225+ part-time employees that are making almost minimum wage, and by the year 2022, it will increase by 50%. This year alone, the DRD saw a $250,000 increase in part-time salaries, and that's not adding any new services. When the year 2022 rolls around the increase will be 19 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 28, 2018 $1.3 million. The proposed increase is one small piece to help mitigate the extra expense. The DRD did a Comprehensive Classification and Benefit Study and they actually reduced all of the full-time employee benefits to help offset the cost. Again, these are small steps to stay ahead and keep the organization going. Councilmember Harnik offered that the City is also seeing everything being impacted by minimum wage, and she doesn't doubt it has impacted the DRD. Her only concern was that the cost was being doubled and it's significant. MR. KALMAN agreed, stating it hasn't just affected employees, but also all their contracts for every service. Mayor Jonathan pointed out that Mr. Kalman's report of April 2, 2018, provided a comparative chart, which indicated that even at $50, it was still the lowest option available for recreation and fitness opportunities. MR. KALMAN concurred, stating on average it cost $240 a year, and the DRD is $50 for the entire year. Further responding, he explained Palm Desert residents currently pay $25 annually and Indio resident pay $25. The way that came about is that the DRD put an assessment district in Indio that pays the debt service, so the special benefit is a reduced rate in Indio. When the Palm Desert Center was built, there was a handshake agreement with the City that because they were paying the debt service on the building, Palm Desert would never pay more than the Indio residents, which is how it evolved. In La Quinta, they just raised it to $75, because it doesn't have that special benefit that Indio and Palm Desert have. Councilmember Kelly was fine with the increase, stating most people prefer a thoughtful analysis like this that gets the rate where it needs to be rather than facing nickel and dime increases year after year. She felt this was clearly well thought out and well documented for the Parks and Recreation Commission, and it sounds like the implementation method will be as considerate as it possibly can be. Councilmember Kelly moved to, by Minute Motion, ratify the Fitness Pass fee increase from $25.00 to $50.00 per year by the Desert Recreation District, as allowed by Contract No. C32410, Section 5.1.1. Motion was seconded by Harnik and carried by a 4-0 vote(AYES: Harnik, Kelly, Nestande, and Jonathan; NOES: None; ABSENT: Weber). 20 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 28, 2018 XVII. CONTINUED BUSINESS A. REQUEST FOR DIRECTION RELATIVE TO THE DESERT HEALTHCARE DISTRICT'S EASTERN COACHELLA VALLEY EXPANSION PLAN (LOCAL AGENCY FORMATION COMMISSION [LAFCO] NO. 2017-02-4) (Continued from the meeting of May 24, 2018). Management Analyst Johnny Terfehr stated staff is asking for direction from the City Council on the implementation of the expansion of the Desert Healthcare District (DHD). There are two representatives from the District that will provide Council with a presentation. DR. LES ZENDLE, MD, Board President of Desert Healthcare District/ Foundation (DHD), noted that with him was Alejandro Espinoza who is the Program Officer and Director of Outreach. He said his presentation is on the proposed expansion of the DHD to the eastern Coachella Valley. The mission of the DHD is to achieve optimal health for all its residents. They do that by connecting residents to health and wellness services. The DHD does not provide any healthcare services, it connects people to others that already exist whether it is hospitals, medical offices, or community organizations that seek to improve health. The District was founded in 1948 when the State Legislature gave permission to rural areas without local hospitals to set aside a portion of the property tax paid to the County, to then have it returned to the District to build hospitals; originally it was called Desert Hospital District. The money was used to build Desert Hospital in Palm Springs. Right now the current cities of Desert Hot Springs, Palm Springs, Cathedral City, Rancho Mirage, and part of Palm Desert west of Cook Street, pay the same property tax. However, because of this arrangement made in 1948, only the west residents get the tax back for the use of the DHD. As you know, Proposition 13 made it so that nobody else can go forward and say they want this to happen to a portion of their property tax, stating it would have to be negotiated with the County. He said DHD is one of the largest contributors of health and wellness in the Coachella Valley. They have provided more than $70 million to community -based organizations, hospitals, providers, school districts, and other services and programs that benefit community members who live in the west Coachella Valley. As you know, DHD built Desert Hospital and ran it for a long time. When the consolidation of hospitals and health care organizations occurred in 1980, it became very difficult to operate a community hospital profitably or even balance the budget. Therefore, as they build more and more debt, they had to look for someone to run it and lease it, and since 1997, it has been leased to Tenet Health Care who has a 30-year lease that expires in 2027. Two years ago they went through a strategic planning process and looked at what it wanted to do for the next five years and identified three strategic priorities. The first priority was to focus on providers, facilities, programs, and services across the entire Coachella Valley, because they came to realize there is disparity 21 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 28, 2018 between the east and west in terms of hospitals and providers. The second priority is to implement a One Coachella Valley. He said there are things that are best done by the entire Coachella Valley rather than by individual cities such as transportation, homelessness, and healthcare are good examples. People who live on one side of Cook Street do a lot of things on the other side the street, one of them being getting healthcare. He said 30% of the patients seen at Desert Regional Hospital come from east of Cook Street, so you can see the Valley needs to take a One Coachella Valley approach. He displayed a map that illustrates the current district boundary that goes up to Cook Street in Palm Desert, and they are proposing expanding the map to deal with the entire Coachella Valley. The reason the boundary goes further across the Salton Sea, is because it's still in Riverside County and within the school district. There are very few people that live in that area and it was just easier to use existing borders. The third priority is to focus on Community Health and Wellness. With the money they get back from the County, which is about $6,000 a year, they run the District, but they also provide about $4 million worth of grants to community organizations. What has happened in the past, an organization comes to DHD with a good idea, and if determined that it's a good one, they grant the money. They now want to focus on the areas that they're funding, so that DHD sets the priorities, and encourages organizations to come forward to address those priority areas. The four priorities for these focused areas are: 1) Homelessness; 2) Primary Care and Behavioral Health Access; 3) Healthy Eating, Active Living; 4) Quality, Safety, Accountability, and Transparency. The main healthcare disparities between the east and west Coachella Valley are access to hospital beds, primary care providers, etc., and DHD wants to address them, especially access to mental health care. The social determinants to seeing a doctor or access to a hospital have to do with income, education, food security, and transportation, which are desperately affecting people who live in the east versus the west. A brief history of what has happened is that Assemblyman Garcia introduced Assembly Bill 2414 that was passed in 2016, to expand the District, which included specific criteria as to who could vote on it, and it was submitted to LAFCO (Local Agency Formation Commission) in 2017. There has been extensive public engagement all over the Coachella Valley in obtaining input. He said DHD tried to negotiate with the County on getting an increment of property tax revenue paid by the eastern Coachella Valley in order to help fund the expansion. However, because they are having financial problems, the answer was no. The DHD set a goal of spending $4 million in the east similar to what they spend in the west, but rather than delay the expansion until it secures funding, they asked the community if they wanted to delay the expansion until it had the funding or have a say in how the funds would be spent when received. Therefore, the DHD went ahead and allocated $300,000 a year of the $4 million it wants to spend, which comes from non -tax revenue from the west. It also doesn't come from funds set aside for seismic issues for Desert Regional Hospital, it comes from investment accounts, grants, and foundations. They hope to 22 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 28, 2018 expand it by looking at new things that are coming up, for instance, there are a lot of initiatives around the Salton Sea that deal with health issues, and there is going to be funding for it. He hopes to secure some of those funds to use for health related issues. The expansion was approved by the Board of Supervisors and sent to LAFCO who approved it in April 2018, and it will be on the November 2018 ballot. They spoke to the people in the east valley and they indicated that representation was more important than how much money would be spent. In other words, they want to have a say when the funds are received on how it's spent, and the only way to accomplish that is by expanding the District, giving people the opportunity to elect their representatives. He displayed a list of the many organizations they support. One of them being Volunteers in Medicine, which is the only free clinic in the Coachella Valley. He has seen patients there since he retired in 2000 from Kaiser Permanente. The clinic gets funding from the DHD, along with Eisenhower Medical Center, Desert Regional Medical Center, and JFK Hospital, and they raise money outside as well. The money received from DHD can only be used for the people that live west of Cook Street who come to the free clinic. They can't get any money from DHD to help people that live east of Cook Street, and yet 90% of the people they service are east of Cook Street. He added they have to do this prorated formula that takes a lot of time and really is not productive in being responsive to the needs to the community. Finally, there are two key initiatives important to highlight. First there is the $2 million collaborative/collective fund that supports programs and infrastructure to address the homeless crisis in the Coachella Valley through Coachella Valley Association of Governments (CVAG) where they match cities contributions. What started out hoping it would reach$700,000 to $800,000, is now $1.4 million, which has proved to be a wonderful model. They plan to do it again, this time with Behavioral Healthcare, where funds will go out to organizations that have a role to play in improving access to behavioral healthcare. He believes everyone recognizes there is a huge need for behavioral health resources in the Coachella Valley. For example, there are no inpatient site beds anywhere, in that you have to go to Loma Linda or Redlands for inpatient care. He added that people are taken by the police to the Emergency Room at Desert Regional, JFK, or Eisenhower, and they sit there until there is a bed available, which might be in Riverside, Redlands, Riverside, Corona, or Orange County. Meanwhile the patient is sitting there, and people with acute medical problems who need to be seen are delayed, which is a big problem. He said to have inpatient beds in the community is one of the things they are working on. In response to the concern about raising taxes on the people on the east, the answer is that they are not. He said the people on the east pay the same taxes as the people in the west. Unfortunately, DHD doesn't get back some of the east property taxes to spend on healthcare, but it wants to go ahead with this expansion anyway. 23 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 28, 2018 Councilmember Nestande said she understood the DHD was formed in the 1948's and part of the County property taxes was diverted to pay the bond for the public hospital. DR. ZENDLE replied that bonds are handled separately, but the money given to the District was used to run the District and to partially pay back the bond, which they borrowed. Further responding, in 1990 when Tenet purchased it, DHD had $150 million in debt. Therefore, in lieu of a yearly lease, they prepaid the lease for 30 years and erased the debt, and they also gave the District another $50 million to put into a seismic upgrade facility's emergency type of fund. So now, the money they get back from the County is used just to run the District and $4.5 million is used for community grants. Councilmember Nestande commented the County was also administering healthcare, and she didn't see in the report if there were any duplication of services. DR. ZENDLE clarified the DHD doesn't provide any healthcare, but they have used some grants to help the County deliver healthcare in some of their situations, whether it was Roy's Resource Center or a mental health clinic that just opened in Palm Springs. The County has a few family community health clinics that operate here that DHD doesn't contribute to. He added people who have to go to a County hospital, go to the one in Moreno Valley, which is a transportation issue. He said they sometimes help with transportation, but they don't supplement what the County is doing. Councilmember Nestande said she was curious if there was duplication of services once the grant monies are sent out. In order words, is that service something the County could already be doing. DR. ZENDLE responded the County certainly could do it, but they don't. There are Federally Qualified Health Clinics (FQHC) around the Valley, Borrego is one of them, and DHD helps fund some of them. He said they probably receive some County funds, including medical and federal funds, but DHD is not paying to duplicate County services. He said DHD exists because the County is not fulfilling all the healthcare needs of the indigent low-income population of the Coachella Valley, and it's the reason they need to do more. Councilmember Harnik noted everyone she has spoken with supports the expansion of the DHD, because it makes sense. However, she thought that in 1948 the community members who are west of Cook Street voted to tax themselves. DR. ZENDLE clarified the people voted for the County to give them back some of the property tax they were already paying, but they did not increase 24 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 28, 2018 their property tax. Further responding, he said the people have not voted on any additional taxes, the only thing that's been voted on is board members and the lease agreement with the hospital, stating it had to be approved by the residents of the District. There was a vote in 1997 when they did the lease, and in 2027 when the lease expires, whatever the DHD decides to do, it will have to be voted upon by the members of the District. If the expansion passes in November, when the lease expires in 2027, whatever is determined to be done with Desert Regional Hospital will have to be voted by the members of the entire Coachella Valley. He's not an expert on Proposition 13, but since it passed, the ability for healthcare districts or anybody to encumber property taxes has not been allowed. Mr. Hargreaves agreed, stating limits were placed on property taxes and you have to go through a process where you have to obtain the vote of the people to increase any property tax. The situation became much more restrictive and complicated. Mayor Jonathan offered that based on information obtained by Mr. Herb K. Schultz, Chief Executive Officer of the Desert Healthcare District/Foundation, he gained some understanding. He explained that when residents pay their property taxes there is a base rate and some add on lines like for College of the Desert District, bond repayment, Desert Sands, etc., and the money received by the DHD is not an add -on item on a property tax bill. It is part of the basic 1 % paid by all residents, which goes to the County, and the County has an agreement with DHD to fund it out of the proceeds it receives. DR. ZENDLE concurred, stating the County has an agreement with the voters that voted in 1948 to do it, and they are required to do it. Mayor Jonathan said it was not an add -on tax where it pays beyond the normal taxes. If the DHD expands, it doesn't mean west residents are now paying for services in the east. These are funds already received by the County and then distributed to the District. DR. ZENDLE said they have approached the County asking them that as property taxes increase over time with property values, if they could have a small percentage of it. Unfortunately, the County is not in a position to do so in their current financial situation. The DHD hopes that with things coming from the State and Federal, often having to do with the Salton Sea and medically under served areas, he believed they can get grants from them and other foundations to help fund the $4 million. Mayor Jonathan recalled asking Mr. Schultz how they would provide services in the east. The response was they will accumulate $6 million out of earnings on other investments that won't detract from funds that are 25 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 28, 2018 available to the west side. In the meantime, DHD will also seek other funding sources that will become available. DR. ZENDLE agreed, pointing out there is the District and the Foundation. The Foundation over the years has received bequests and donations, which can be used in the east Coachella Valley, and that's where the yearly $300,000 will come from. Councilmember Harnik inquired about solar income. DR. ZENDLE replied that DHD has installed solar panels in the parking lot at Desert Regional Hospital, which generates money that goes to the District. However, that lease will end this year and that item won't be part of the budget anymore. Councilmember Harnik offered that this Council wants to see the healthcare issues of the west addressed, but she's not hearing about sustainable funding sources, which is bothersome. The DHD Plan of Services Report talks about taking an advisory measure to dedicate some of their taxes currently allocated to affected local agencies, it also states as follows: "In this instance, should negotiations of the voluntary contributions of taxes from these entities to the District for healthcare services in the Annexation Area not be successful, the District could pursue mediation with the cities and County to attempt a resolution and meet the conditions of expansion." DR. ZENDLE believes that meant the DHD will keep talking to the County over time to get some more money. An example that may explain it better is that there are big foundations like The California Endowment, The Wellness Foundation, etc., and insurance companies that went not for profit to poor profit, they have a lot of money and they want it to go toward healthcare. However, it's very difficult for them to look at a small organization with a small dollar amount budget to conduct these grant processes in order to give them money. On the other hand, they might be willing, and have, funded things through the DHD, knowing it has a grant process where the grant monies are monitored to ensure they are spent appropriately, including looking at outcomes. The Foundation, which is not local, can't necessarily do that, but with the infrastructure the DHD has created over the years and with the relationships it has with many of the east side organizations, they will be able to give money to those organizations. The residents' DHD spoke with said they rather have some help versus no help. The need is so great, and they want to have a say in what will be funded, and they will as members of the District. Councilmember Kelly divulged she started with a similar concern about long-range funding, but now she's hearing some things that speak to her concerns. As she understands this, the plan is to start with a commitment 26 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 28, 2018 of $300,000 a year, which sounds small in response to the need. But, would it have this ramification that currently the District makes grants to, for example, Martha's Village & Kitchen (MV&K), but you have to go through some accounting to verify funds are being spent for the benefit of folks west of Cook Street. What she is hearing is that if you can get the expansion in place, even with this minimal funding commitment, it gets rid of all the red tape making it easier to make grants to entities which are serving people both east and west. DR. ZENDLE agreed, stating using MV&K as an example, the District gives them money only for residents who have listed an address west of Cook Street, but now they will be able to give them more money. Even if it's just $50,000, it's money they need and will appreciate. He added they hope to acquire even more funds once it approaches foundations and others that really do care about healthcare in the Coachella Valley as a whole. Councilmember Kelly commented that's the second thing that is becoming more clear to her, is that if the District can get the expansion, it will have a lot more information to present about greatly under served communities who would benefit from the award of funds. She asked if that was part of the reason for pushing this expansion forward. DR. ZENDLE explained that if MV&K wanted to apply for a grant from The California Endowment, it's an onerous and complicated process; they would need to have grant writers. Will now, DHD will be applying for funds for homelessness, for example, which they will get from the endowment and be able to spend them in the east. It will no longer require them to segregate the funds. Councilmember Kelly said she hoped the DHD Board will continue to think of ways that all in the Coachella Valley cities, in partnership with the District and other constituencies, can increase the pressure on the County to give up a small part of that property tax they receive for the east. In recognizing the County has budget problems, it really sounds like preposterous penny wising and foolish. If they are using Sheriff Deputies to transport 5150 patients or whomever all the way to Palm Springs, it's about the most expensive possible way to address issues. Hopefully through collaborations, a demonstration can be made that is actually more fiscally prudent to deploy the Districts proven model and get better results. DR. ZENDLE agreed, stating one of the reasons why JFK Desert Regional and Eisenhower help fund Volunteers and Medicine, is that if you take care of primary care problems when they are small, like treating hypertension and diabetes, they don't develop the complications and end up in the ER Hospital with uncompensated care, which we all pay for. Not to mention the ER and 27 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 28, 2018 Beds being crowded. He hopes to apply pressure to the County to provide more funds as they become available and they have the ability to do so. Councilmember Harnik agreed pressure on the County is part of what will make this work, stating they need to step up and help. She also agreed in taking care of health issues early as an investment, stating it pays off greatly for the health of those people that need the care and costing less later on. DR. ZENDLE said one can just look at the issue of the County Hospital, there is only one in Moreno Valley, so the people that live in Indio have to go there for care. Mayor Jonathan pointed out that it was yet one more reason for continuing to help the homeless, which the DHD does in such an innovative and aggressive way, because if nothing else, it's a money saver. It's cheaper to help the homeless have a home than it is to be treated in an emergency room. He said the District has gone far in taking the lead in the homelessness issue. It's not just the funding of the cities that participate through CVAG, because Palm Desert is going through its own process of matching funds through the District to Behavioral Specialists, and it's working. Councilmember Harnik recalled Dr. Zendle saying only the east valley residents would be voting on the expansion. DR. ZENDLE answer yes, because that's the way the legislation was written and passed by the Governor. Honestly, the people in the west weren't particularly happy about it, but that's the law. Councilmember Harnik agreed, stating it didn't ring with logic to her, but appreciates the answer. DR. ZENDLE replied that one of the things he points out to the people in the west is that the people in the east are paying the exact same rate for property tax. Councilmember Harnik said she understood, which is why she is having such an issue with the County grabbing the money and not using the funds as effectively as the DHD uses them west of Cook. Mayor Jonathan addressing the concern about sustainable funding, he believed there was sustainable funding, because the District is not committed to spending a million dollars in the east valley and they only have $300,000. There is a great team at the District, in that they are not going to spend what they don't have. He didn't think they were setting themselves up for financial failure, they are going to proceed cautiously and in a financially responsible 28 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 28, 2018 way, and aggressively seek out additional funding specifically for the east Valley. He said the District is in a unique position to obtain additional funds as opposed to other organizations in the east valley. He was equally concerned about sustainable funding, but then he understood the plan. Also, Palm Desert as a City has embraced its responsibility for One Coachella Valley, taking the lead with transportation, homelessness, and other regional issues. To him, this was another one of those issues where there is an under served population in the eastern part of the Coachella Valley and the City has a responsibility to reach out and do what it can. Beyond that, Palm Desert has a responsibility to its residents, and there is an inequality, the City is cut down the middle on Cook Street. Some of the residents of Palm Desert are not part of the District and some are, so for both of those reasons, he would personally favor the first option offered by staff to actively support the expansion. Mayor Jonathan moved to, by Minute Motion, select Option 1 - Support the DHD Eastern Coachella Valley Expansion Plan. Councilmember Nestande appreciated everything Dr. Zendle was doing for the DHD, but she would like to hear from the County of Riverside and learn about what they say about this proposal. She said Council was assuming the County of Riverside could not do some of this or do it as good or better. She suggested postponing the vote for a study session that includes the County, because healthcare is such an important issue, and she wants it to be done effectively. DR. ZENDLE pointed out that the County Board of Supervisors voted 5-0 to support the expansion. They had some issues having to do with the lease with Tenet, with regard to the exclusive relationship and the District not being able to fund things that might be in competition. So Tenet actually waived that exclusive relationship, and the County Board of Supervisors is fully on board. Councilmember Kelly was prepared to support Option 1 with the understanding that the letter drafted on behalf of the City would underscore what has been discussed here that the full potential of this expansion can't be achieved unless the County looks thoughtfully at the best possible way to deploy property tax dollars for health benefits. She would encourage continued discussions in that regard. While it's possible to launch the expansion without more ambitious funding, in response to the need, Palm Desert does want to see that growth in capacity. Councilmember Kelly seconded the motion. Councilmember Harnik offered that not for one second did she think DHD would spend money recklessly, but in looking at the reserve and lease, there 29 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 28, 2018 are $4.5 million that are secure. However, Tenet has options to terminate the lease, and they could do it now because of the seismic issues. She reiterated that it was important for the County to step up, but they are already having significant issues at the Riverside Hospital, so she wasn't sure they will be quick to release those tax increments to the DHD. The report includes great things, but it also has things that cause her to be apprehensive. It also includes other financing options such as voluntary dedication of existing monies from cities/county, a community facility's district, and a parcel tax, which she doesn't see happening. The tenet/hospital lease income, might go away or it might not. There are a lot of issues that make it difficult and worrisome, but the health issues are a greater worry. Mayor Jonathan reiterated the DHD will start with the funding they have and will continue to make the funding grow. It would be nice if they started on day one with a commitment of $5- or $6 million for the east valley, but it's not going to happen, so they start small and build up. He has no problem with making the point in the letter that Palm Desert is in full support of the expansion, and at the same time, encouraging the County to look at funding sources for the expansion, and grateful the District will continue looking for additional and new sources going forward. He said the City can express its concern in the letter, but at the same time express its support. Councilmember Harnik stated the letter needs to make an emphasis on the fact that if the County does not help in investing in the east valley, it will be a greater cost to them in the long run. Councilmember Nestande commented that Councilmember Harnik was stating some of the reasons why she would like to hear from the County first before voting on this. Mayor Jonathan agreed it was a good point, but this evening Council heard that the Board of Supervisor voted 5-0 in support. Councilmember Nestande added she would still like to hear from the people that are below the Board of Supervisor's. Mayor Jonathan amended the motion to include a letter indicating the City of Palm Desert is in full support of the Desert Healthcare District (DHD) Eastern Expansion Plan. Additionally, encourage the County to explore funding sources to deploy property tax dollars for the expansion and success of the DHD and its mission. Motion was seconded by Kelly and carried by a 3-1 vote. For purposes of clarification the motion is as follows: 30 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 28, 2018 Mayor Jonathan moved to, by Minute Motion: 1) Selected Option 1 - Support the DHD Eastern Coachella Valley Expansion Plan; 2) prepare a letter indicating the City of Palm Desert is in full support of the Desert Healthcare District (DHD) Eastern Expansion Plan. Additionally, encourage the County to explore funding sources to deploy property tax dollars for the expansion and success of the DHD and its mission. Motion was seconded by Kelly and carried by a 3-1 vote (AYES: Harnik, Kelly, and Jonathan; NOES: Nestande; ABSENT: Weber). With City Council concurrence, a recess was observed from 6:06 p.m. - 6:18 p.m. B. MINUTES OF THE REGULAR CITY COUNCIL MEETING OF MAY 24, 2018 (Continued from the meeting of June 14, 2018). Councilmember Harnik moved to, by Minute Motion, approve as presented the Minutes of the Regular City Council meeting of May 24, 2018. Motion was seconded by Kelly and carried by a 4-0 vote (AYES: Harnik, Kelly, Nestande, and Jonathan; NOES: None; ABSENT: Weber). XVIII. OLD BUSINESS A. REQUEST FOR ADOPTION OF A RESOLUTION INCREASING THE DESERT WILLOW RESIDENT GOLF RATE TO $52.00 BASED ON CONSUMER PRICE INDEX (CPI), AND TAKING RELATED ACTION. Mr. Alvarez stated that at the June 14, 2018, City Council meeting, Council directed staff to come back with a proposal at increasing the Desert Willow Golf Rate by using last year's CPI (Consumer Price Index). Using the Los Angeles/Long Beach/Riverside Region CPI, it turned out to be a 3.7% increase, which calculates to $1.96. Therefore, staff recommends increasing the Desert Willow Golf Rate from $50 to $52. Mayor Jonathan pointed out that staff was also recommending establishing policy to make annual increases based on CPI and not necessarily require City Council approval, because it would be approving that policy at this point. Mr. Alvarez concurred. Councilmember Nestande asked staff to clarify the policy it has with The Retreat and second homeowners, including benefits to second homeowners that do not live in The Retreat but live in Palm Desert. Mr. Alvarez explained The Retreat is adjacent to Desert Willow that includes 112 condominium units. When the project was going through the entitlement process there was a Development Agreement (DA) negotiated which entitled 31 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 28, 2018 the residents of those units, up to two residents, to receive The Retreat Card. In essence, it's access to the Golf Academy through an easement that was created from their project onto Desert Willow. Also negotiated was a $75 per unit/per month fee ($900 a year) that would be given to the City in exchange for access to Desert Willow, the Golf Academy, and a discount that equate to 25% of the posted rates. This discount is similar to the concept discussed at the last meeting, which was the Dynamic Pricing Model (DPM). Also included are other benefits similar to the Platinum Card, which gets discounts at the club house, establishment of a handicap, handicap index, etc. Further responding, he said second homeowners who purchase the Platinum Card, resident or nonresident, benefits would be very similar. The Platinum Card is $319 for residents and $369 for nonresident. Councilmember Kelly said she didn't realize how complicated the CPI is, although Mayor Jonathan did, because he's alluded to it previously. The information she was able to access suggested there is no longer a Los Angeles/Long Beach/Riverside Index. As of last December it was split to create a Los Angeles/Long Beach/Anaheim Index and a new index for Riverside/San Bernardino/Ontario. Therefore, if it was split as of March and no longer publishing a Los Angeles/Long Beach Riverside Index, what did staff use for March 2018. Sr. Financial Analyst Anthony Hernandez replied that if you go to the CPI Website, you can call up the data and create a report. Staff continued to use the Los Angeles/Orange County CPI Index, because the Riverside Index is currently not available. Mayor Jonathan added he had to search a little harder than usual, but he was able to access the Los Angeles/Long Beach/Riverside Index and the rate was 3.8%. The reason the Riverside/San Bernardino is not available, is because they don't have data going back to March 2018, but it will in the future. MR. FRED JOHNS, Sarazen Way, Palm Desert, stated golf is a major economic driver for the Valley. Many housing developments were built based on golf, including the hotels, restaurants, and retail stores. Golf creates thousands of jobs, supports Eisenhower Hospital and all other hospitals in the Valley, so it's key on how policy is set. He studied and put together a chart for the City Council. It's a comparison of the golf rates for the past 12 years compared to the CPI, and based on his calculation, that golf rate increase is 2.47% versus the CPI of 18%. He said golf has never been included in the CPI for any service or any basket item, and no one in the Valley uses it. He asked the City Council not to use the CPI to establish the golf rate. Now the 2.5% that has increased over the past 12 years was due to all the competition in the Valley. During that same period, Resident Rates have increased 11 % and now they are going to increase another 4%. 32 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 28, 2018 Next year the rates are projected to go down, stating he just looked at the market rates. There is simply no correlation to using the CPI for golf, and if the City wants to come up with a way to increase rates, it needs to come up with a more logical and better means to do it. Further, when looking at Desert Willow, it shows a loss. However, in totality with all the revenue generated from all the hospitals, hotels, restaurants, and retail shops, Desert Willow is a very big winner. He questioned if the City was ever going to look at all the fees together to see what is really there. He asked Council to put everything on the table, look at it, and make a decision that benefits everyone. As for the matter of rates for residents, they are low and they affect memberships at the other country clubs. He said probably 1 % of the people that play golf at Desert Willow joins a country club for several reasons. First, the initiation fees are extravagant, in that they are any where from $1,500 to $250,000. If you join a country club, husband and wife have to play in order to get enough rounds in to meet the monthly fees, which are usually $1,000 to $1,800 a month. He said this was a municipal course to give those people who can't join a country club the opportunity to play golf or they couldn't do it otherwise. In summary, he's saying that Desert Willow is a big-time winner. He added that some of the information Council reviewed was inaccurate, because residents don't have 20,000 rounds anymore, stating they have gone down to 13,000 this year, and it was 15,000 last year; rounds have fallen almost 40%. Councilmember Nestande noted that when she cast her vote two weeks ago, she voted no in part because she did not want the Dynamic Pricing Model or having the rate tied to the CPI, so she voted for the lesser of two evils. Now Council is here again, and she doesn't support tying it to the CPI, stating the last speaker gave valid input and she tends to agree. She said every time the City tries to tweak one component of rates at Desert Willow, it affects another rate. She said the City didn't look at the Platinum or Champion Club Cards for residents, and there are so many other factors involved. She went on to say she's never been able to sit down with fellow Councilmembers and actually discuss Desert Willow in any great detail. There have been discussions about whether it's an economic driver or an amenity, and there are varying opinions. She's of the opinion that there is room for it to be both. For example, the Aquatic Center is basically an amenity, and if she's correct, the City subsidizes $700,000 a year. She asked about the numbers of residents versus nonresident who use the facility, and for 2017, there were just over 15,000 residents who use the facility, and 42,000 nonresidents. She believed the City owed the residents first right to any money it wants to give out as an amenity. She suggested Council sit down in the fall and look at the different programs at Desert Willow and then figure out how much it's willing to contribute. She said Kemper Sports staff is doing a great job, so it's not about them, they are only reacting to City Council direction just like staff is. She would advocate for the City Council to get together in the fall and discuss this matter in more detail and leave the rate as is for now. Also, 33 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 28, 2018 place on the agenda a reduced summer rates for residents, because two weeks ago that option was killed, it was caught up with the Dynamic Pricing and defining who was a resident. Councilmember Harnik inquired about the current summer rates for residents. MR. DEREK WHITE, General Manager at Desert Willow, said they offer a summer VIP Card, which then gives reduce rates for residents for the summer. Councilmember Kelly understands that for $49 residents can obtain access to those reduce rates. MR. WHITE replied that was correct, adding it's a summer VIP Card and it's kind of an extension of the Platinum Card Program. Mayor Jonathan offered that for $10 you can get a Resident Card and then there is a price differential for residents to playing in the summer versus nonresident. MR. WHITE agreed, stating that with rack rates, for instance, it can be $95 or somewhere in the Dynamic Pricing capping out at $95, so the $50 rate would be a discount off of that rate, if that's what Mayor Jonathan was referring to. Further responding, he confirmed that with a VIP Card it can be as low as $20. The price for the VIP Resident Card is $79, and the VIP Nonresident Card is $40. He agreed there is a series of rates from the rack or the published rates that are dynamic pricing, adding rates go down as weather temperatures go up. He said there was a dramatic discount for those card holders. The VIP Card runs from June 1 through September 23. Councilmember Nestande commented it seems high, because in the proposal shown two weeks ago it was going to be $30 for residents and $35 for nonresident in the summer. Councilmember Kelly clarified that the $49 is not the rate to play, it's a one-time charge to get the benefit of lower summer rates. Councilmember Nestande asked about the summer rates for someone who purchased the $49 Card. MR. WHITE replied there were three rates available between $35 and $20. There is also one additional program that was added where you pay $899 for nonresident or $699 for residents to have access to unlimited play from May 1 through September 23. If you do the math, if you play a couple times a week, it can be as low as $20 a round for playing any time. 34 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 28, 2018 Councilmember Harnik asked how far out in advance can one book. MR. WHITE said he wasn't sure there was a restriction, because the sheet is fully available. Councilmember Harnik inquired on the number of rounds for Desert Willow as a whole. MR. WHITE responded it was around 90,000 for Fiscal Year 21017-2018, stating for last year it was much more reduced, but that was due to the renovation. Mayor Jonathan pointed out that the staff report indicates there were 85,000 rounds in total, of which 20,000 are from residents. Councilmember Harnik responding to the comment that Desert Willow is an economic driver, recalled it was thought of as an economic development tool. And to Mr. John's point, because the City was using Redevelopment Funds, the intent was for Desert Willow to generate revenue, which is why it's surrounded by timeshares and hotels. The intent was to build Desert Willow as an economic development tool, not necessarily as an economic driver specifically, and the amenity for residents was a bonus for those who otherwise wouldn't be able to afford it. Councilmember Kelly offered she was not comfortable establishing increases to the Resident Rate on autopilot and/or connected to CPI for a couple of reasons. First, CPI is a squirrelly statistic, because you have controversy about whether it should be regional or core CPI. There is not a single statistic that's potentially available. She had conversations with Mr. White to try to identify some alternative benchmark, but they didn't come up with one that seemed to fit the bill. At some point, the City needs to take a study to look at whether there is a better benchmark that could be put on autopilot. Frankly, next fall is too soon, stating that through the course of next season, more will be learned about economic conditions and golfing demands. This season it appeared that golfing demand was stabilizing and a second year will provide more information. She believed the City should give this topic a rest and come back to it next year in time to take account of next year's season and incorporate some considered attention to alternative benchmarks. The City and Desert Willow's finances are not going to sink or swim these next 12 months based on whether it adds $2 to the Resident Rate, but a lot of resident sentiments will be dramatically affected, adding that was her perception on emails and correspondence received. There are many times when Council has to push forward with something that's unpopular to achieve an appropriate purpose, but in this case, she didn't see the necessity for adjusting the rate. It would be preferable to engage in a study as suggested after Council is better informed by another year of data. 35 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 28, 2018 If Council returns to the CPI as the appropriate yardstick, at least by that time, there will be comparative information for this specific region. One thing that is dramatic in looking at the CPI is that the category included Los Angeles, and not surprising, it has the highest rate increases in the Country because it's a much larger metropolitan area with different cost pressures than the Valley. Therefore, for all the reason's stated, Council should hold back for now. Mayor Jonathan said he has a vastly different perspective, because this was a luxury, and a $2 increase for a luxury without initiation fees, what a deal. He couldn't believe there was any kind of resistence to a $2 increase. In 1998, 20 years ago, it was $45, and 20 years later it's $50. Giving this topic a rest would be the last thing he would want to do, because it would be kicking it down the road and going through this whole process again. From the very start, in representing the City on the President's Committee, this has been a painful process for everyone involved. Sinking into analysis paralysis would be a mistake, stating Council needs to do their job. Frankly, he didn't favor a $2 rate increase either, because it should be set at $74, which is what it would have been if the CPI was applied all along. The CPI is not an arbitrary number, it's the best measure it has of the increase costs to Desert Willow, because if the City looked at costs, it would be far higher than the CPI. He said the City is subsidizing the rate at $560,000 a year. He gets that amount by calculating that the average cost per round is $78 and residents are paying $50, so it's a $28 per round subsidy multiplied by 20,000 rounds, which adds up to $560,000. He suggested going to the full $78 per round to avoid subsidizing it. The intent of Desert Willow was not meant to provide a highly reduced luxury, it was a side benefit, because the main objective was to create an economic driver and it has worked. The reason it has worked, is because it has attracted full market rate rounds from the hotels and timeshares. To allow that economic driver to continue to work, the City cannot continue to substitute full -market rate rounds with highly subsidized rounds. Just because there is resistance to a $2 increase, Council should not continue analyzing it, stating that returning a year from now would be a policy error. He suggested approving the staff report, although he didn't like it, but he could live with it. He likes that there would be automatic increases so that the City doesn't have to go through this painful procedure year after year. There was a comment made earlier about the increase to the Desert Recreation District from $25 to $50, which was, "they liked the increase because it would not nickel and dime people and they will know what the rate is." He wished that sentiment applied to this issue, which he viewed as similar. He would be fine if the City set the rate at $74 and leaving it at that for a while, but looking at this every year is a mistake. Councilmember Harnik agreed this issue has been difficult for everyone involved, stating since she's been on the Council this has been an ongoing 36 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 28, 2018 issue. However, residents have superior golf at a superior price, and so anytime there is talk about an increase, there is an outcry. She comes from the golf business and a country club, and she knew how painful this superior rate at Desert Willow is to them; it financially negatively impacts the country clubs. She said this issue is not going to go away, because it's part of the fabric of this City since the date Desert Willow was built. The problems associated with Desert Willow will continue until something radically changes. She said the increase should not be attached to the CPI, because at a certain point, given the trend of golf, the City will be asking residents to pay more for golf than the rack rate. She does, however, support the $2 increase, stating it helps offset costs, but something needs to be figured out for the future, so Council is not spending a huge amount of staff, resident, and Kemper Sport's time reviewing this issue. She believed a different approach had to be taken in order to come up with a different solution. She suggested approving the $2 increase to help offset increases to minimum wages, which affects everything done at Desert Willow. She said Council should let this season shake out, allowing residents to depend on that $52 rate. Councilmember Nestande agreed, but she wants to be more involved in the dialogue and process. In her opinion, it's most efficient if resident golfers, who the City has faith and trust in their judgment, to be included in an open dialogue with Mr. White and a few staff members sometime in the future. Mayor Jonathan replied that already happened, which is what the Committee did for almost a year. Councilmember Nestande offered that based on emails and conversations she has had, including people on the Task Force Committee, they are just not happy with the results, stating they feel shut out. Mayor Jonathan said he didn't disagree with what she said, but they had an opportunity to be part of the decision -making process by providing input, which they did very articulately. Councilmember Nestande recalled a study session, but it was only one -hour long and Council had to digest a binder full of information, and she still had many questions. She prefers to sit around a table to look at data and discuss it with resident golfers, and asking them for their take. She wants to get that back and forth dialogue going. Councilmember Kelly said she fully embraced what Mayor said about the central purpose for Desert Willow, which is why she did not support any major revisions to the structure for resident privileges. It's hard to tinker with that without unexpected ramifications. For this evening, she could vote for a motion to increase the resident rate to $52 if it's simply explained as a 37 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 28, 2018 recognition of the increase costs caused by the minimum wage changes, which she believed was preferable than basing it on the CPI. She said resident players fully appreciate everything Councilmember Harnik said that golf rates don't move with the CPI; it causes needless irritation. If the City doesn't come back with a superior alternative, it might have to return to the CPI, but this evening she could vote for an increase of $52 as an adjustment to the minimum wage and its impact on operating costs. Councilmember Kelly moved to: 1) Waive further reading and adopt Resolution No. 2018 - 47, as amended, adjusting the Desert Willow Resident Golf Rate from $50 to $52, effective July 1, 2018; 2) By Minute Motion, approve an increase to the Desert Willow Resident Golf Rate from $50.00 to $52.00 for Fiscal Year 2018-2019. Motion was seconded by Harnik. Councilmember Harnik said it wasn't just that simple to say it was due to the impact of minimum wages, but because of all the increased costs per say. Councilmember Kelly said she was trying to phrase the motion in a way she thought people can understand, embrace, and accept, because everyone knows that minimum wage is rising dramatically, and it has an expected impact on Desert Willow. Mayor Jonathan explained that the impact is more than people are typically seeing. To Councilmember Harnik's point, on the Desert Willow Committee they learned that every cost is going up, not just the labor, because then you have wage compression. It also impacts contracts for seed, fertilizer, etc., stating those contract increases are due to the minimum wage, affecting all costs to go up. He is reluctant to support the motion because an adjustment of $52 is low, in that he was at $74, but he's ready to make a huge compromise. He said the City so vastly subsidized and artificially deflated the cost of rounds at Desert Willow, and it's hurting business partners who are now having to compete with "Country Club fora Day Experience," which is so underprice. As everyone knows, the City's business partners are having a hard time competing, and Palm Desert is only adding to their challenges. The other reason is that when he was elected to Council in 2014, the first increase to the resident rate was $50, and he and Councilmember Harnik recall going through the same thing and it was painful, and here Council is going through it again. The result now is that it's not learning from the past, because it's only considering a $2 increase, and whether its one or five years from now, this Council or a future one will endure this same painful process. While he's ready to support the increase, he believed Council needed to compromise on this issue. He just hopes staff will take the initiative and think on it, have another study session, get other input, and create increases that are automatic. He disagreed that scheduled increases would spiral out of control, because he has faith that a future Council will know the intent was not to have residents' pay more, but to 38 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 28, 2018 subsidize. He's hoping for some mechanism that includes predicable increases that will benefit residents and the process. Councilmember Harnik didn't want to tie staffs hand by saying there needs to be an automatic mechanism. She supports taking a step back and looking at this in a new way. She said this process took a lot of Kemper Sport's time in asking them to assure residents are provided a good rate and demanding they have a certain profit, while maintaining a standard at Desert Willow. Mayor Jonathan clarified he didn't mean to say an annual increase mechanism, stating he meant he hopes to have some approach that would preclude Council from having to go through this painful procedure. He said the last time Council took a break from this issue was three years ago, and maybe this break will only be one or five years, but it has done nothing in terms of changing the process to spare going this again. He was suggesting that if staff had spare time, they think about some other mechanism that doesn't result in this same type of painful process. Mayor Jonathan called for the vote, and the motion carried by a 3-1 vote (AYES: Harnik, Kelly, and Jonathan; NOES: Nestande; ABSENT: Weber). Mayor Jonathan thanked Mr. Alvarez and Mr. White for carrying the weight on this matter. XIX. PUBLIC HEARINGS A. REQUEST FOR APPROVAL OF THE ESTABLISHMENT OF A FEE FOR SERVICE RELATED TO REVIEWING SHORT-TERM RENTAL HARDSHIP EXTENSION APPLICATIONS. Mr. Stendell noted the staff report, stating this was an ongoing discussion related to Short -Term Rental Hardship Extension Applications. Staff is recommending a fee totaling $1,500 with $500 collected up front. The balance to be paid after the application is deemed complete and the review begins. Mayor Jonathan declared the public hearing open and invited public testimony FAVORING or OPPOSING this matter. With no public testimony offered, he declared the public hearing closed. Councilmember Kelly moved to waive further reading and adopt Resolution No. 2018 - 48, establishing a fee for service related to reviewing Short -Term Rental (STR) Hardship Extension Applications. Motion was seconded by Harnik and carried by a 4-0 vote (AYES: Harnik, Kelly, Nestande, and Jonathan; NOES: None; ABSENT: Weber). 39 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 28, 2018 B. REQUEST FOR APPROVAL OF THE FINAL ENGINEER'S ANNUAL LEVY REPORT FOR, AND ORDER THE LEVY AND COLLECTION OF ASSESSMENTS WITHIN, CITY OF PALM DESERT BENEFIT ASSESSMENT DISTRICT NO. 1 FOR FISCAL YEAR 2018-2019. Mayor Jonathan recused himself from this item, because he has ownership interest and property in this District and left the Council Chamber. City Treasurer Thomas Metz noted the staff report, stating Landscape Supervisor Randy Chavez and representatives from Willdan & Associates were available to answer questions. Acting Mayor Harnik declared the public hearing open and invited public testimony FAVORING or OPPOSING this matter. With no public testimony offered, she declared the public hearing closed. Councilmember Kelly moved to waive further reading and adopt Resolution No. 2018 - 49, approving the Final Engineer's Annual Levy Report for, and ordering the levy and collection of assessments within, City of Palm Desert Benefit Assessment District No. 1 for FY 2018-2019, pursuant to provisions of The Benefit Assessment Act of 1982. Motion was seconded by Nestande and carried by a 3-0 vote (AYES: Kelly, Nestande, and Harnik; NOES: None; ABSENT: Weber and Jonathan). C. REQUEST FOR APPROVAL OF THE FINAL ENGINEER'S ANNUAL LEVY REPORT FOR, AND THE LEVY AND COLLECTION OF ANNUAL ASSESSMENTS WITHIN, CONSOLIDATED PALM DESERT LANDSCAPING & LIGHTING MAINTENANCE DISTRICT NO. 1 FOR FISCAL YEAR 2018-2019. Mayor Jonathan recused himself from this item, because he has ownership interest and property in this District and left the Council Chamber. City Treasurer Thomas Metz noted the proposed Resolutions for approval and offered to answer questions. Acting Mayor Harnik declared the public hearing open and invited public testimony FAVORING or OPPOSING this matter. With no public testimony offered, she declared the public hearing closed. Councilmember Kelly moved to waive further reading and adopt: 1) Resolution No. 2018 - 50, approving the Final Engineer's Annual Levy Report for Consolidated Palm Desert Landscaping & Lighting Maintenance District No. 1 for FY 2018-2019; 2) Resolution No. 2018 - 51, ordering the levy and collection of annual assessments within Consolidated Palm Desert Landscaping & Lighting Maintenance District No. 1 for FY 2018-2019. Motion was seconded by Nestande and carried by a 3-0 vote (AYES: Kelly, Nestande, and Harnik; NOES: None; ABSENT: Weber and Jonathan). 40 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 28, 2018 D. REQUEST FOR APPROVAL OF THE MANAGEMENT DISTRICT PLAN FOR, AND ORDERING THE LEVY AND COLLECTION OF ASSESSMENTS WITHIN, THE PRESIDENT'S PLAZA I PROPERTY AND BUSINESS IMPROVEMENT DISTRICT FOR FISCAL YEAR 2018-2019. City Treasurer Thomas Metz noted the proposed Resolutions for approval and offered to answer questions. Mayor Jonathan declared the public hearing open and invited public testimony FAVORING or OPPOSING this matter. With no public testimony offered, he declared the public hearing closed. Councilmember Kelly moved to waive further reading and adopt: 1) Resolution No. 2018 - 52, approving the Management District Plan for President's Plaza I Property and Business Improvement District for FY 2018-2019; 2) Resolution No. 2018 - 53, ordering the levy and collection of annual assessments within the President's Plaza I Property and Business Improvement District for FY 2018-2019. Motion was seconded by Nestande and carried by a 4-0 vote (AYES: Harnik, Kelly, Nestande, and Jonathan; NOES: None; ABSENT: Weber). E. REQUEST FOR APPROVAL OF THE MANAGEMENT DISTRICT PLAN FOR, AND ORDERING THE LEVY AND COLLECTION OF ASSESSMENTS WITHIN, THE PRESIDENT'S PLAZA III PROPERTY AND BUSINESS IMPROVEMENT DISTRICT FOR FISCAL YEAR 2018-2019. City Treasurer Thomas Metz noted the proposed Resolutions for approval and offered to answer questions. Mayor Jonathan declared the public hearing open and invited public testimony FAVORING or OPPOSING this matter. With no public testimony offered, he declared the public hearing closed. Councilmember Harnik moved to waive further reading and adopt: 1) Resolution No. 2018 - 54, approving the Management District Plan for the President's Plaza III Property and Business Improvement District for FY 2018-2019; 2) Resolution No. 2018 - 55, ordering the levy and collection of annual assessments within the President's Plaza III Property and Business Improvement District for FY 2018-2019. Motion was seconded by Kelly and carried by a 4-0 vote (AYES: Harnik, Kelly, Nestande, and Jonathan; NOES: None; ABSENT: Weber). 41 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 28, 2018 F REQUEST FOR APPROVAL OF RESOLUTIONS RELATED TO ADOPTION OF THE FISCAL YEAR 2018-2019 BUDGET AND CAPITAL IMPROVEMENT PROGRAM (JOINT CONSIDERATION WITH THE PALM DESERT HOUSING AUTHORITY). Ms. Moore stated that in May the City Council met for two fascinating study sessions about the budget. Staff is asking for approval of the Annual Budget, General Fund, the Five -Year Capital Improvement Budget, and all the other City funds. The primary fund used to fund the City's operations is the General Fund, and it is balanced as it stands with approximately $58 million in anticipated revenues and slightly less for estimated expenditures with a small surplus. Both revenue and expenditures increased approximately 3% over Fiscal Year 2017-2018. The largest portion of the General Fund Budget is the public safety portion, which is $35.5 million of the budget this year. The Budget also includes a five-year capital improvement budget and the first year's program budget is estimated at $23 million. Funding is identified for all of the projects. Staff has a couple of informational items to bring to Council's attention with respect to the Reserves. She recalled for the City Council that at the study session there was extensive conversations about the Reserves and methods by which the City would allocate to certain funds. Staff will bring forward a report with comprehensive information on those reserves at a future meeting in August or September. Secondly, another item staff will bring forward for Fiscal Year 2018-2019 is a request for the City Council to consider whether or not it would like to go out for Request For Proposals for a fee study. She concluded her presentation by stating there were no other substantial changes to the Budget from what was presented at the study session. She offered to answer questions. Ms. Aylaian called attention to two additional items as follows: 1) The Palm Desert Employee Organization Memorandum of Understanding (MOU) was supposed to have been included in the packet, but it was not. However, it was provided to the City Council today, stating she hoped they had an opportunity to read it. Essentially, the MOU reflects that a Cost of Living Allowance (COLA) will be provided in the amount of 2% this year, and 2% for next year, with the Consumer Price Index (CPI) not revisited until the following year; 2) A memorandum was provided to the City Council regarding requests made by The Living Desert and the McCallum Theatre for partnership with them and the programs they provide for the City, residents, and visitors. Their programs were discussed at the study session, but were not resolved at that time. The Living Desert request includes a $200,000 per year for each of the next five years. Additionally, the McCallum Theatre requested $200,000 per year for each of the next six years. Both of these requests are included in the Capital Improvement Program Budget. If the City Council approves the Budget as presented, these two items will come 42 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 28, 2018 back with specific agreements regarding how the money would be used. It will also be the opportunity for Council to have greater discussion and consideration on the two allocations. For now, those two allocated amounts are included in the Budget as proposed. Mayor/Chairman recalled that the initial request from both entities was for Capital Improvement Projects, but it was determined that because it was for a capital improvement project, it would trigger prevailing wage requirements. He asked if the memo indicates the benefit of its donation might be exceeded by an increase cost resulting in prevailing wages. Therefore, he believed the City needed to come up with a Plan B. He said ideas were floated at the study session, and he understands parties will come up with an agreement for the recognition the City will receive in exchange for the donation, but what if it doesn't. He questioned if by approving the proposed budget this evening, did it commit the City to the contribution. Ms. Aylaian answered no, stating approval allocates the money should the City Council approve an agreement in the future. Councilmember/Member Kelly inquired about the allocation for a new Palm Desert iHub, questioning if discussions and research were ongoing for the City to make that happen. Ms. Aylaian said it was very actively being pursued. Councilmember/Member Kelly asked staff to share some information about Palm Desert's current posture on Unfunded Pension Liability, because it's a topic the public always seems to be interested in. Ms. Moore stated last year at the end of Fiscal Year 2016-2017, Council authorized a one-time payment. In addition, Council has taken a different stand with regard to paying on an ongoing basis on Unfunded Liability. The City will now pay it up -front in July prior to July 31, which brings a fair amount of savings to the City. However, with all of those new things the City has done, and the payments that have been made, Unfunded Liability is approximately $34 million, established by an Actuary she just received. At this time, she only had a draft report, but it places the City at 71% funded, which is significantly up from a prior year funding, which was at 66%. Therefore, staff has seen an increase by making those payments. Staff has not seen the effects of the reduction of the discount rate from 7.5% to 7%, but it is being watched as staff tries to make every effort to mitigate that by making extra payments when it can. The Actuary report provided the City some options with respect to amortization, which she will include in the packet when Council receives the Reserve Study. One of the reserves identified was employee benefits' stability, so it's one of the things Council might see as an option. By increasing payments throughout the next several 43 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 28, 2018 years, the City could see significant savings from that Unfunded Liability. Although, staff will not be making a recommendation as to any future contributions, it wanted Council to have the information so it could see there could be a savings if the City pays on a routine basis for the next few years up -front for that pension. She has looked at the rates for the next several years, and the normal rate will continue to go up, which was a little over 11 % this year, and she saw an estimate of 13%. Those rates are not related to the Unfunded Liability, those are only the normal rates, but those will go up as well. Mayor/Chairman recalled that a couple of years ago at the Audit, Investment & Finance Committee, there was discussion whether it would make financial sense to pay down the liability significantly or completely, and at that time, there was an elaborate explanation that it was not financially beneficial. He asked if staff was periodically reviewing that question, and was it still not to the City's benefit financially to make a significant or complete pay down of the Unfunded Liability. Ms. Moore replied she wasn't sure what context that discussion was about, and she's not positive that not paying the Liability is to the City's benefit. Keep in mind the discount rate being 7%, 7.38 %, or 7.5% is also the rate the City is paying on that money it owes CaIPERS, which is a fair amount. It's a little bit of a misnomer to say you could pay off the pension liability, because a neighboring city attempted to do so, and within a year they had an unfunded liability, which was due to the changes in CaIPERS and the actual assumptions it makes every year. Again, she would not say that it would not be beneficial to the City to pay it off, but that it should make efforts toward it, and it has to the extent possible. Her concern continues to be, in what she would call, a consistent payment over a period of time. She is concerned about the normal pension rate going up, because it's also impacted by new salary plans, which also affects the employer rate. Mainly, because CaIPERS is expecting a minimum amount to be paid toward the amount due to pay pensions in the future. At the end of the year, she and Assistant Finance Director look to see if there are monies available for the City Council to consider as a payment to CaIPERS. Mayor/Chairman Jonathan declared the public hearing open and invited anyone wishing to address this matter to come forward at this time. MR. ALLEN MONROE, President/CEO of The Living Desert (TLD), stated they have been proud members of the community for almost 50 years. They are grateful for the support received from the local community both the residents and City government. They have been growing in recent years, finishing their fiscal year with their fourth year in a row of record setting attendance with more than 450,000 guests; this includes all age groups. They are especially proud of the more than 100,000 school -aged children 44 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 28, 2018 that have an opportunity to visit the park and learn about the natural world. He said TLD is a critical part of the tourism infrastructure in the Valley that supports local hotels, restaurants, resorts, and local businesses. It generates almost $50 million a year in economic development back into the local business community. To improve the park and care for the next 50 years, they are currently investing $30 million into their facility to improve the guest experience. The first phase includes the new entry complex that will vastly improve ticketing and membership services, and a new gift shop and garden space, which will open this fall. Of course, the City Council will receive an invitation to that opening on November 2, 2018, at 11:00 a.m. The second phase of construction will include new habitats for lions and rhinos to help tell the conservation stories of those critically endangered species. They are asking the City of Palm Desert to help them continue their tradition of excellence by supporting their programs and ensuring the world is a better place. It's an investment that pays real dividends to the City. The money will be spent wisely, because TLD is the only nonprofit in Palm Desert that receives a four -star rating from Charity Navigator, a third -party impartial service that looks at overhead costs, transparency, and success in accomplishing their mission. He hopes the City Council will continue to give them the support they need to build toward a brighter future. Mayor/Chairman Jonathan noted that part of TLD is physically situated in the City of Indian Wells, stating he assumed Mr. Monroe has spoken to those folks requesting their level of support. MR. MONROE replied they have made a request and they are still working on the details. Mayor/Chairman Jonathan thanked Mr. Monroe for all the hard work and the contribution in making Palm Desert so special. With no further testimony being offered, Mayor/Chairman declared the public hearing closed. Councilmember/Member Harnik stated she talked to the Director of Finance regarding the following issue she is proposing for consideration. She noted that a couple of weeks ago the City Council received from the City Manager a report on the Jacqueline Cochran Regional Airport Authority. She said this was the first year she has been a representative on that Joint Powers Authority (JPA), and she went back and looked at the bylaws and slowly but surely, all power from that JPA was taken from the participants. To the point now that Palm Desert or any other member of that JPA is strictly advisory. When you attend meetings, you are informed as to what is going to happen. She suggested not joining the JPA, stating the City of Indian Wells is also making that consideration. There may come a time when that airport is really important to the growth of the east valley and perhaps members of that JPA 45 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 28, 2018 have some power in the direction of development, but at this point it doesn't. If it changes, the City can review it at that time. She requested $12,500 be taken out of the General Services line item and use it elsewhere, because she doesn't see a return on investment. Secondly, the City sponsors Coachella Valley Economic Partnership (CVEP) with $50,000 every year. She requested staff get the check out to them as soon as possible, adding they did a remarkable job of getting the check to them last year, and it would be great if they could do it again this year. Councilmember/Member Kelly questioned if it might be more seamless to request that the City's continued participation in the Jacqueline Cochran Authority be agendized as a specific topic rather than just deleting the budget line. Councilmember/Member Harnik replied it wasn't a budget line, it was a piece of a specific budget line. At this time, she requested not to renew for this year. If Council wants to revisit for next year that would be fine, but for this year she was suggesting the City not give them the $12,500, stating there are better uses for those funds. Councilmember/Member Kelly asked if Council will need to separately address at some point whether it will continue to be part of the JPA. Mr. Hargreaves said he hasn't reviewed the agreement, so he didn't know exactly what commitment was made there, but typically the JPA adopts an annual budget and then they go back to constituent cities for approval of their budget. At this point, if the City deletes that item from the budget, it can notify the JPA. If they have a response, they can always be added to the agenda at a subsequent time. Approval of today's budget is not necessarily a definitive action and/or the alternative can be to leave it in the budget, but not act upon it, and schedule the topic at a subsequent meeting to figure out what the whole situation is about. Councilmember/Member Harnik reiterated the City had absolutely no power in it and it didn't strike her as well -spent funds. She said this issue can be reviewed every year if there is a change or need. Mayor/Chairman Jonathan said he liked the fact that if the JPA had an objection, they still have the ability to come to the City Council, and Council could change its mind as well. He thanked Ms. Moore and the finance team on a balanced budget that is a substantially a work of art. He added that every year the City gets audited and everything is clean, and it gets awarded with a badge of excellence. Councilmember/Member Harnik, moved to: 1) Waive further reading and adopt: a) Resolution No. 2018 - 56, adopting the Budget and Capital Improvement Program (CIP) 46 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 28, 2018 for the Fiscal Year of July 1, 2018, through June 30, 2019, as amended with deletion of the Jacqueline Cochran Regional Airport Authority Dues ($12,500); b) Resolution No. 2018 - 57, establishing the Appropriations Limit for the Fiscal Year 2018-2019; c) Resolution No. HA - 86, adopting a Palm Desert Housing Authority Budget for the Fiscal Year of July 1, 2018, through June 30, 2019; d) Resolution No. 2018 - 58, the Staffing Allocation and Salaries Resolution, setting the FY 2018-2019 Salary Schedules, Salary Ranges, and Allocated Classifications; 2) By Minute Motion: a) As unanimously approved by votes cast by the Palm Desert Employees Organization (PDEO) Members, approve a side letter, dated June 28, 2018, to the Memorandum of Understanding (MOU) with the PDEO dated June 8, 2017; b) approve Out -of -State Travel, as listed in the attached memorandum of the same name. Motion was seconded by Nestande and carried by a 4-0 vote (AYES: Harnik, Kelly, Nestande, and Jonathan; NOES: None; ABSENT: Weber). XX. ADJOURNMENT With City Council concurrence, Mayor Jonathan adjourne eeting at 7:39 p.m. ATTEST: RA HELLE D. KLASSEN, _ ITY CLEK CITY OF PALM DESERT, CALIFORNIA SABBY JNAMAN, MAYOR 47