Loading...
HomeMy WebLinkAbout2018-10-11MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING THURSDAY, OCTOBER 11, 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 3:04 p.m. II. ROLL CALL Present: Councilmember Jan C. Harnik Councilmember Kathleen Kelly Councilmember Gina Nestande Mayor Pro Tem Susan Marie Weber Mayor Sabby Jonathan Also Present: Lauri Aylaian, City Manager 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 Tom Garcia, Director of Public Works Anthony Hernandez, Senior Financial Analyst Andy Martinez, Admin. Sgt., Palm Desert Police/Riverside Co. Sheriffs Dept. Grace L. Rocha, Deputy City Clerk III. ORAL COMMUNICATIONS - A (CLOSED SESSION ITEMS) Ms. Aylaian stated she received complaints from people who try to watch the meetings on-line about the ability to hear Councilmember's comments, and staff has a couple of suggestions to offer. Information Systems Manager Clay von Helf reminded Council that these microphones work best if they are a hand -breath away and speaking directly into them. The recordings are used for the City's video, archive, live video, and for City Clerk minutes. The challenge with this room is that the audio is very good, so one MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING OCTOBER 11, 2018 can drop the mic and still have a conversation and be heard within the room, but none of that would be picked up on the video. Mayor Jonathan stated that perhaps options can be explored, because the current system is restrictive and doesn't provide much freedom. Mr. von Helf replied staff can look into the TED Talk style microphones, but that can be restrictive as well, and lapel microphones tend to pick up the noise from Councilmember's garments when moving around. Councilmember Kelly agreed, adding one tends to forget you have it on and start walking away. Therefore, Council should try to make it work with the current system. Mayor Jonathan said he wouldn't mind if some technological breakthrough came about and made it a little easier than being stuck to within an inch of these microphones. Mr. Von Helf noted one of the projects for next year is refresh the AV equipment in the Council Chamber. When the City Council talks to the consultant, it can discuss the options available. IV. ADJOURN TO CLOSED SESSION Request for Closed Session: A. 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 3:04 p.m. He reconvened the meeting at 4:09 p.m. V. RECONVENE REGULAR MEETING - 4:00 P.M. A. REPORT ON ACTION FROM CLOSED SESSION. Mr. Hargreaves stated no reportable action was taken, but direction was given. VI. PLEDGE OF ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA - Mayor Sabby Jonathan VII. INVOCATION - Councilmember Jan C. Harnik 2 w MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING OCTOBER 11, 2018 VIII. AWARDS AND PRESENTATIONS A. PRESENTATION TO RECOGNIZE DOUGLAS BREWER FOR HIS SERVICE TO THE CITY OF PALM DESERT AND ITS ARCHITECTURAL REVIEW COMMISSION, 2017 - 2018. Mr. Brewer was unable to be present for today's recognition, which will be rescheduled for a future meeting. B. PRESENTATION OF PROCLAMATION DECLARING OCTOBER 2018 AS "NATIONAL PRINCIPALS MONTH" IN THE CITY OF PALM DESERT. On behalf of the City Council, Mayor Jonathan presented the proclamation to the school principals in attendance. Palm Desert High School Dennis Zink delivered T-shirts to the City Council for the big game tomorrow, stating he hoped to see them there. The T-shirts say, "PD All In," which meant Palm Desert is all in for excellence in academics, activities, and athletics. He thanked the City Council for the recognition and their support. C. PRESENTATION OF THE GOLD PRESIDENT'S VOLUNTEER SERVICE AWARD TO THE PALM DESERT CITY COUNCIL BY CITIZENS ON PATROL CAPTAIN JEFF ALLEY. Capt. Jeff Alley with the Palm Desert Citizens on Patrol presented the City Council with the Gold President's Volunteer Service Award, the premiere volunteer award program in the United States, which encourages citizens to live a life of service. He noted the City of Palm Desert has a total membership of 31, and last year they contributed more than 12,000 hours of volunteer time, which saved the City over $600,000 in police costs. Without the support of the City who provides extensive training, materials, and equipment, their job would not be possible. He added the City of Palm Desert Citizens on Patrol Program is the program to emulate in the Valley. Mayor Jonathan thanked Mayor Pro Tem Weber who has been a strong supporter for many years and represents the City Council at the COP meetings. He said Council appreciates all the kind words, but the volunteers of the Program give their time and soul to the City, making a difference financially, but most important, the program defines the community. Further, when the City holds events such as Y Be Fit on a Sunday, and so many others, it's the COP who are helping to protect the safety of the participants. The Program is part of the community and part of what makes' Palm Desert so special. 3 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING OCTOBER 11, 2018 D. PRESENTATION TO THE CITY COUNCIL BY DR. JENNA LECOMTE- HINELY OF HEALTH ASSESSMENT & RESEARCH FOR COMMUNITIES (HARC), REPORTING ON THE PATH OF LIFE/CV HOUSING FIRST 1ST YEAR RESULTS. DR. JENNA LECOMTE-HINELY, CEO of HARC (Health Assessment & Research for Communities), thanked the City Council for the opportunity to make a presentation on behalf of HARC to inform Council about the great things accomplished over the first year of CV Housing First. She said HARC used the data that was gathered by the Homeless Management Information System (HMIS), which is a mandated reporting tool of the United States Department of Housing and Urban Development (HUD). When people come into the Path of Life Management Program (POLM), they complete an Intake and an Exit Survey when leaving the program in conjunction with their coordinators. HARC uses that data to assess the impact the program has had. A custom survey was developed with POLM to measure things that were not captured in the HMIS system, and they have three months worth of data on that survey; it's primarily for the Homelessness Prevention Program. In summary, in the first year, CV Housing First served 401 clients. The following is a breakdown: 142 are in homelessness prevention; 90 in street outreach; 84 in emergency shelter; 56 in rapid rehousing, and 29 in permanent supportive housing. More than a quarter (27%)of the participants are children, more than half (53%) are Hispanic/Latino, and 8% were living in poverty when they came to Path of Life. Homelessness is a long-term problem for the majority and 70% have been homeless for more than one year during the last three years. Therefore, this is not something that is transitory. It's important to note that not every participant has exited. Certain programs like Permanent Supportive Housing are meant to be ongoing, stating these are the people that will never be able to live on their own. Rapid Rehousing typically takes two years to complete, so those individuals are not captured in the exit surveys. Of those who are captured in the exit survey, you can see great outcomes. The exit survey indicates 81 % exited to a permanent destination; either a rental without an ongoing subsidy and is self-sustaining. Others exited because they completed the program by going through the Path of Life Program and were able to become sustainable. What's encouraging is that when these individuals came to POLM, they were making an average of less than $629 a month, and by the exit of the program, they are making nearly $1,500. It's still not a lot of money, but their income more than doubled, so this is a definite improvement. She went on to say HARC was also able to get data from Roy's Resource Center, and although their data would not be comparing apples to apples, it does provide interesting information. One of the more important details was that the people being served by CV Housing First, 70% of the clients were homeless for longer than a year where versus the Roy's Resource clients, it was only 28%. One reason for it is that CV Housing First prioritizes those who are most vulnerable and puts them into housing first. 4 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING OCTOBER 11, 2018 She went on to provide more comparisons, but in conclusion, POLM served more than 400 clients. Many have not exited so they are not captured in this report, which is why HARC is recommending the evaluation be continued for the duration of the program. Of those who have exited, most have exited to a successful placement, which is to a permanent home. Councilmember Kelly having heard this presentation once before, she knew part of the discussion that has occurred is the fact that since permanent supported housing results in people never exiting, or that the typical client never exits, it has an impact on the data. She asked if the intention is to treat that data separately in the future so a more clear picture of success can be assessed. DR. LECOMTE-HINEL answered yes, stating people who are eligible for permanent supported housing are your stereotype individuals who are standing on the corner shouting out to aliens or whatever, these are the people that are not going to be self-sufficient. The Path of Life placed 29 clients in permanent supported housing this year. One of them left, because you cannot force people to stay in care, but the remaining 28 are housed, which is not captured in the exit data in HMIS. She pointed out that 46 of those 401 clients are from Palm Desert. Mayor Jonathan commented that Palm Desert has always invested, at least its full share, in addressing homelessness. With the Homelessness Committee from CVAG, if it was going to engage with services/contract with POLM, it needed to know objectively from a third -party evaluator if the program is successful. Therefore, he thanked Dr. LeComte-Hinel and HARC for confirming Palm Desert was going down the right path. The evaluation and analysis conducted by HARC have given the City the confidence and understanding that its doing something very effective. Certainly, first year results would indicate that success. DR. LECOMTE-HINEL thanked the City Council for the opportunity, adding that HARC was a nonprofit research organization, so yes they care about the numbers, but most of all using the research to improve quality of life in the community. They are thrilled that the City is taking the information and running with it and doing great things. Councilmember Nestande asked if there was a common thread on how a person gets to be homeless. DR. LECOMTE-HINEL said they asked that question under the custom survey, because it wasn't captured in HMIS. They received very limited data because most of them were in the Homelessness Prevention Program and therefore, were not actually homeless at that time. The most common thread was unemployment and lack of income for housing. There were a few other 5 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING OCTOBER 11, 2018 clients claiming domestic violence or running away, but they didn't have a great sample. She is encouraged that if they continue to collect data with this tool, they will look at that issue more closely. Antidotally, what POLM has shared is that for someone who is living paycheck to paycheck, all it takes is one calamity to become homeless. IX. ORAL COMMUNICATIONS - B MR. DAVID KEYS, Manager of the Palm Desert Aquatic Center, provided a short video of the fun things happening at the Aquatic Center that includes staff training, diving off the diving boards, the recreation swim team conducting group lessons, and water -slide use. For the first time this year they had the Dive -In Movies series with more than 800 people attending overall. He said they have private swim lessons, group swim lessons, and adult swim lessons. He noted the YMCA received grant money to offer free adult swim lessons where they still have room available and funds for it. In conclusion, he believed the Aquatic Center is offering great services to the community of Palm Desert. Mayor Jonathan pointed out that at the Palm Desert Parks & Recreation Commission they also hear about all the things done to utilize the facilities that are not swimming pool based, because it is a very nice facility. X. MAYOR AND COUNCILMEMBER REPORTS & REMARKS TO THE COMMUNITY A. Councilmember Jan C. Harnik Committee Reports and General Comments. 1. Riverside County Transportation Commission (RCTC) - a) reported there were a number of items discussed, one of them was a heated debate on Proposition 6, the Gas Tax Initiative, and whether or not it will be repealed. Whatever happens, RCTC is poised and prepared to respond if it goes forward or repealed. She encouraged everyone to vote to have their voices heard on this issue; b) Truck Climbing Lanes - announced that RCTC will build truck climbing lanes on State Route 60 (SR-60), stating they are currently going out to bid and anticipate construction next year; c) Coachella Valley - San Greaonio Pass Rail Corridor Service Proiect - RCTC has been working on this project for decades. In 2004 it was part of the State Transportation Rail Plan, but in 2018, it disappeared from the plan. In the meantime, RCTC is fighting to get it back in the Plan. It's important, because there are 130,000 trips going through the pass, therefore, a twice daily round-trip rail service would be an asset to the region. 6 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING OCTOBER 11, 2018 2. Coachella Valley Economic Partnership (CVEP) - a) Announced the upcoming annual Economic Summit is coming up on November 8, 2018. She said they will have great speakers, in fact, they just added a gentleman who taught coding to coal minors who lost their jobs, and these people are now working making three times the amount of money. They work out of their homes, and it's a great solution for employment; b) noted that Palm Desert made the decision to invest in a digital iHub and received the go ahead from Cal State University San Bernardino (CSUSB) - Palm Desert Campus. Therefore, CSUSB will be collaborating with CVEP and the City of Palm Desert, taking administrative offices and bringing over their Cyber Security Program to Palm Desert. She said there are 380,000 unfilled jobs for cyber security, so this was an exciting opportunity to make a difference for the entire region with this project. Mayor Jonathan added the City just signed a five-year contract with CVEP for the Valley's second iHub to be located near the CSUSB - Palm Desert Campus. The fact that CSUSB will be co -locating their Cyber Security Program at that facility is very meaningful because it will offset costs, create a synergy, and Palm Desert gets the high -optic fiber cable that is needed for broad band without being charged for it. It wasn't easy to accomplish, because their bureaucracy is massive, but Director of Economic Development Martin Alvarez was persistent and never gave up on this endeavor. He read the following quote from Joe Wallace, the CEO of CVEP: "The potential for transforming the economy in a direction that prepares students and adults alike for high -paying jobs is massive, which is why Palm Desert is pursuing this second iHub Center, including the Cyber Security Program." 3. Southern California Association of Governments (SCAG) - reported they are holding an Economic Summit as well on December 6, 2018, stating one always walk away with a lot of knowledge from these summits. B. Councilmember Kathleen Kelly Committee Reports and General Comments. 1. Dutch Reach - encouraged everyone to become a catalyst for the Dutch Reach being the norm in the City of Palm Desert. The Dutch have figured out that if each and everyone upon exiting a parked car, do not automatically reach to open the door with a closed hand, but instead reach with the far hand, it will cause a person to swivel and turn their head to see if a bicyclist is approaching. Doors opening by parked cars are probably the greatest source of injury to bicyclists, sometimes, including death. This is a simple thing that one can do 7 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING OCTOBER 11, 2018 that has a huge impact on safety. She is counting on everyone to make it a point to share this with their circle of friends. C. Councilmember Gina Nestande Committee Reports and General Comments. None D. Mavor Pro Tem Susan Marie Weber Meeting Summaries Report for the Period of September 17-30, 2018. With City Council concurrence, the Meeting Summaries Report was received and filed. 1. Food In Need Distribution (FIND) - pointed out the City of Palm Desert has a lot of organizations that distribute food, and Bob and Peggy Leo suggested she visit the one located at St. Margaret's Episcopal Church, which she did. They prepare food for 350 households, which could equate to 1,200 to 1,500 individuals, and they do that once a week. The program could not be done without the volunteers that show up and participate. She said Chet Hecht is the person who runs it and Stan Hursh coordinates the case management. She added that people come from all around the Valley, but a significant amount is from Palm Desert. She said people check in and sometimes they just get clothes or advice, and around noon the Program starts distributing food. The food comes from the government, the USDA and FIND, and they receive bread contributions from Panera's and Costco. Here again are a number of volunteers who are making life a little bit easier for others, and it was nice to see it in action. E. Mavor Sabbv Jonathan Committee Reports and General Comments. 1. Concert in the Parks Series - gave a shout out to Management Analyst Amy Lawrence for her work with the Concerts in the Park Series. He was privileged to attend the first concert of the weekly series the City holds during the month of October. The second concert is this evening starting at 6:00 p.m. at the Civic Center Park. Last week it was a tribute to Santana, and the singer not only sounded like Santana, but certainly looked like him. The concert was well attended and everyone was having a great time. It's a free event to anyone who wants to make a trip to the Civic Center Park. 2. Family YMCA of the Desert - gave another shout out to the YMCA for presenting the 5' Annual Y Be Fit Event. This was another event that attracted well over 1,000 people, some of which, like the City Manager and legal counsel, who compete seriously in the triathlons. Others, children and adults alike ran the Color Run. The event also had about 8 tardy MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING OCTOBER 11, 2018 40 marines from the 29 Palms - 7th Marine Regiment. They had a day off from the base and they were honored by the crowd. The marines also put on a boot camp for the kids, which was very popular. This is a community event, and it's wonderful that it's supported by the City. Mayor Pro Tem Weber pointed out that Mayor Jonathan received an award for the 5K Run. 3. Police Officer and Public Safety (POPS) Luncheon - at this luncheon, Deputy Emil Stan was recognized for his amazing and profound service to the community. He is the shining star in Palm Desert, stating he is an Officer who embodies the kind of police the City wants in the Community. He thanked Deputy Stan for his service. F City Council Reauests for Action. None G. City Council Consideration of Travel Requests/Reports. None .•.-, XI. STAFF REPORTS AND REMARKS 11111...1 A. City Manager 1. City Manager's Meetina Summaries Report for the Period of September 17 - 28, 2018. With City Council concurrence, the Meeting Summaries Report was received and filed. 2. Waiver of Biddina Requirement - advised the City Council that she will be exercising the authority afforded to her under Palm Desert Municipal Code Section 3.30.160, forgoing the bid requirements when performing emergency work. At One Quail Place, a Housing Authority owned property, there was a waterline breakage that poses a clear and imminent danger to the health and safety of the residents. She will proceed to get the work done without going through the formal bidding procedures, and the cost is somewhere in the order of $75,000. 9 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING OCTOBER 11, 2018 3. Personnel Update: Introduced the five Office Specialists that were hired on October 1, 2018: Sandra Ruiz (City Clerk's Office); Cindy Garcia (Finance/Housing); Latisha Marks (City Clerk's Office - Front Desk); Heather Cerhnicki (Tourism & Marketing/Economic Development); and Anthonette Castro (Public Works Department). 4. Event Announcements: a) Paint El Paseo Pink Event, Saturday, October 13, 2018. She encouraged everyone to come out and support a great cause for breast cancer; b) Patriots Ride for Heroes - Saturday, October 20, 2018. There will be a vendor gathering with all kinds of information being provided from different organizations. There will be a ceremony honoring police and fire, and the military. B. City Attorney None C. City Clerk 1. Reminder of City Council Study Session scheduled for Friday, October 12, 2018, at 1:30 p.m. in the Council Chamber for Interviews of Entities Submitting Proposals for the 1.62-acre Parcel at the Southeast Corner of San Pablo Avenue/Fred Waring Drive. Ms. Klassen reminded City Council Members of the Study Session, and Councilmembers so noted. Mayor Jonathan pointed out the Study Session was open to the public. D. Public Safety 1. Fire Department None 2. Police Department None XII. CONSENT CALENDAR A. MINUTES of the Regular City Council Meeting of September 27, 2018. Rec: Approve as presented. 10 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING OCTOBER 11, 2018 B. CLAIMS AND DEMANDS AGAINST THE CITY TREASURY - Warrants •..-. Dated 9/21/2018 and 9/28/2018. Rec: Approve as presented. C. CLAIMS AND DEMANDS AGAINST THE CITY/HOUSING TREASURIES - Warrant Dated 9/21/2018 (Joint Consideration with the Palm Desert Housing Authority). Rec: Approve as presented. D. APPLICATION FOR ALCOHOLIC BEVERAGE LICENSE by The Red Barn, 73290 Palm Desert Drive, Palm Desert. Rec: Receive and file. E. CITY COMMITTEE AND COMMISSION MEETING MINUTES. 1. Cultural Resources Preservation Committee Meeting of January 30, 2018. 2. Parks & Recreation Commission Meeting of June 5, 2018. Rec: Receive and file. F. REQUEST FOR APPROVAL of Change Order to Contract No. C36940 - TPX Communications for Internet and Telephone Service - Equipment Purchase. Rec: By Minute Motion, approve a Change Order with TPX Communications in the additional amount of $1,474.50/month plus usage charges, $7,700 for equipment purchase, and authorize City Manager to negotiate, finalize, and execute the resulting Service Agreement for same — funds are available in Account Nos. 1104190-4365000 and 1104190-4404000. G. REQUEST FOR ACCEPTANCE OF WORK for Contract No. C36690 — 2018 Slurry Seal Project (Project No. 751-18) (Roy Allan Slurry Seal, Santa Fe Springs, CA). Rec: By Minute Motion, accept the work as complete and authorize the City Clerk to file a Notice of Completion for the subject project. 11 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING OCTOBER 11, 2018 H. REQUEST FOR APPROVAL of the Temporary Placement of a Mural Entitled Off the Wonderland Trail by Jacqueline Scibona on the South Walls of the Amphitheater in Civic Center Park. Removed for separate consideration under Section XI I I, Consent Items Held Over. Please see that portion of the Minutes for Council discussion and action. I. REQUEST FOR APPROVAL of the Temporary Waiver of Palm Desert Municipal Code ("PDMC") Section 9.58.010 - Consumption of Alcoholic Beverages on Public Property - for the Sale and Consumption of Alcohol at the Palm Springs Art Museum ("Museum") in Palm Desert, 72567 Highway 111, for Fiscal Year 2018-2019 (Palm Springs Art Museum in Palm Desert, Applicant). Rec: By Minute Motion, approve/authorize: 1) Temporary waiver of Palm Desert Municipal Code Sections 9.58.010 and 9.58.020 - Possession/Consumption of Alcohol on City Property - in conjunction with events related to First Weekend and annually occurring special events at the Museum; 2) City Manager to approve up to five (5) additional temporary event waivers to PDMC Sections 9.58.010 and 9.58.020, as needed, throughout FY 2018-2019; 3) City Manager to execute any California Department of Alcoholic Beverage Control documents, as required. J. REQUEST FOR APPROVAL of the Temporary Waiver of Palm Desert Municipal Code ("PDMC") Section 9.58.010 - Consumption of Alcoholic Beverages On Public Property - for the Sale and Consumption of Alcohol at the Palm Desert Area Chamber of Commerce ("Chamber"), 72559 Highway 111, on November 1, 2018 (Palm Desert Area Chamber of Commerce, Applicant). Rec: By Minute Motion, approve/authorize: 1) Temporary waiver of PDMC Sections 9.58.010 and 9.58.020 - Possession/Consumption of Alcohol on City Property - for special events at the Chamber; 2) City Manager to approve a temporary waiver on a case -by -case basis to PDMC Sections 9.58.010 and 9.58.020 for additional special events at the Chamber through the end of FY 2018-2019; 3) City Manager to execute any California Department of Alcoholic Beverage Control documents, as required. 12 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING OCTOBER 11, 2018 K. REQUEST FOR APPROVAL of the 2018 Miracle On El Paseo Event law (Chartwell Properties/Shops On El Paseo, Applicant). Rec: By Minute Motion, approve: 1) Miracle On El Paseo event scheduled for Saturday, November 17, 2018; 2) two-phase road closure plan on El Paseo from Highway 74 to Sage Lane; 3) consumption of alcoholic beverages on City -owned property pursuant to Palm Desert Municipal Code Section 9.58.040. Item H was removed for separate consideration. Upon motion by Harnik, second by Kelly, and 5-0 vote of the City Council (AYES: Harnik, Kelly, Nestande, Weber, and Jonathan; NOES: None), the remainder of the Consent Calendar was approved as presented. XIII. CONSENT ITEMS HELD OVER H. REQUEST FOR APPROVAL of the Temporary Placement of a Mural Entitled Off the Wonderland Trail by Jacqueline Scibona on the South Walls of the Amphitheater in Civic Center Park. Management Analyst Deborah S. Glickman introduced Miss Jacqueline Scibona, a Youth Committee member who approached staff a few months ago proposing to paint a temporary mural in Civic Center Park. The mural has been reviewed by the Art In Public Places Commission and Parks & Recreation Commission. She displayed a picture of the proposed mural. Miss Scibona stated she intends to paint the proposed mural at the Civic Center Park, because the scenery of a forest would contradict the surrounding desert landscape and emphasizing its beauty. She also wanted to leave her mark before she leaves the area. Responding to question, she said the mural will be painted on a board and then affixed to the structure. Councilmember Kelly thanked Miss Scibona for bringing forward this proposal, because she believed it will inspire other young artist to be proud of their work, so she was a real trailblazer in that regard. Responding to question, Ms. Glickman confirmed the City is required to place a plaque on all artwork, so one will be done for this as well. It will have the artists name and title of the work and explain who created the piece and what it stands for. She anticipates the piece will be in place for six months to a year, depending on how it stands up to the weather. swift When asked about the timeline, Miss Scibona said she thought the process .r would take about four months, and it did. 13 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING OCTOBER 11, 2018 Mayor Jonathan thanked Miss Scibona for taking the initiative, stating she will certainly leave her mark on the community. He wished her well and stated he hoped she will consider coming back to Palm Desert. Councilmember Nestande added she's known Miss Scibona since she was five or six years old, and she's been a wonderful student; she wasn't surprised she was doing this wonderful thing. Councilmember Harnik moved to, by Minute Motion, approve the temporary placement of a mural entitled Off the Wonderland Trail by Jacqueline Scibona on the south walls of the Civic Center Park Amphitheater. Motion was seconded by Weber and carried by a 5-0 vote (AYES: Harnik, Kelly, Nestande, Weber, and Jonathan; NOES: None). XIV. RESOLUTIONS A. RESOLUTION NO. 2018 - 74 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, APPROVING THE FINAL SUBDIVISION MAP OF PARCEL MAP NO. 37347 - CIVIC CENTER (City of Palm Desert, Applicant). Management Specialist II Cora L. Gaugush noted the staff report and offered to answer questions. Councilmember Kelly asked if there was anything controversial about this item. Ms. Gaugush said there wasn't, it was a straightforward item that should have been cleaned up earlier; it's a housekeeping item. Councilmember Kelly moved to waive further reading and adopt Resolution No. 2018 - 74. Motion was seconded by Harnik and carried by a 5-0 vote (AYES: Harnik, Kelly, Nestande, Weber, and Jonathan; NOES: None). B. RESOLUTION NO. 2018 - 75 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, DECLARING A SHELTER CRISIS PURSUANT TO SB 850 (CHAPTER 48, STATUTES OF 2018 AND GOVERNMENT CODE § 8698.2). Mr. Stendell stated this item was in response to State funding that's making its way down to the cities. The Homeless Emergency Aid Program (HEAP) funding grant cycle is only available to cities that declare a Shelter Crisis via a resolution. Upon approval of the proposed Resolution, staff intends to submit an application through Riverside County for Palm Desert's portion of the HEAP funds. These funds can be used for the operation of the draft program being put together for homelessness within the City of Palm Desert. 14 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING OCTOBER 11, 2018 Mayor Jonathan noted Coachella Valley Association of Governments (CVAG) initiated this request in hopes that all cities will pass the Resolution giving the Coachella Valley a greater voice in obtaining funding it has previously not received. Mr. Stendell concurred. Councilmember Harnik questioned what exactly was the City declaring. Mr. Stendell replied he wasn't sure there was a nuance or any implication for the City to declare an emergency crisis on the shelter, stating this was a requirement of the funding. If Palm Desert wants eligibility for this funding stream, Council needs to pass the proposed Resolution. He understood many sat through a League of California Cities Webinar on this process, and step one was to declare a crisis. Councilmember Harnik expressed concern, because there have been discussions in Sacramento about declaring an emergency on housing. If that happens, the result is, and it will most likely happen after the election, Palm Desert could lose local control and giving it over to the State. She's wondering if this was a step in that process, which was scary to her. Councilmember Nestande agreed, stating anytime there is money involved, there could be strings attached. Ms. Aylaian pointed out this was an independent issue, in that it deals with the number of people that are homeless and the rapid rate at which the population is increasing. There is a 51 % increase in the number of unsheltered people in Palm Desert in the last year. Approval of the Resolution sets the City up for taking advantage of programs that are available for financing. The City does not advocate any control to any outside agency. Approval of the Resolution will allow Palm Desert to be eligible and to participate with the County or with CVAG in soliciting funds. Councilmember Harnik clarified she didn't the City would relinquish control, but thought it was a step in the process. If the narrative in Sacramento becomes there is a crisis occurring throughout the cities and they must declare a housing emergency, she questioned whether Council was feeding into it. Her concern may not be valid, but she couldn't help but connect those dots. Mr. Stendell stated he would be concerned if the declaration of an emergency on this issue was being lead by a State Housing and Community Development. Also, their departments don't always communicate well with each other. He believed Councilmember Harnik was giving too much credit to that thought process, but he couldn't provide her with a solid yes or any answer to the question. 15 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING OCTOBER 11, 2018 Ms. Aylaian said Councilmember Harnik was right to have a healthy sense of skepticism, and she understood the concern, but at staff level, it's not prepared to speak to political issues at a Statewide level. Mr. Stendell offered that if Council wanted more information, it can continue the item. Councilmember Harnik said the City wants the funds and nothing will occur until after the election. A lot will depend on election results and how the Governor's race turns out. Councilmember Kelly believed Council had to play the game based on the rules given thus far, and if something changes the rules, than the City can cry foul. Therefore, declaring the crisis is essential to tap into these State funds. In good conscience, the City can declare a shelter crisis with the 33% increase in the homeless count. Councilmember Harnik moved to waive further reading and adopt Resolution No. 2018 - 75. Motion was seconded by Kelly. Mayor Jonathan believed all Councilmembers were concerned about Sacramento and their continuous attacks on local control, which is valid. However, this is a State grant of $500 million, and it's anticipated that the County will be allocated $9.8 million, which will then be allocated by the Continuum of Care Board of Governance where the City has representation. Therefore, in order to be considered for funding in the Coachella Valley, Palm Desert has to declare the emergency. The only alternative is to not qualify for any funding. The other reason for declaring the emergency is that CVAG intends to submit an application on behalf of the entire Coachella Valley to the extent that each City declares an emergency, giving the City a stronger voice and hopefully gain some funding. Mayor Jonathan called for the vote and the motion carried by a 5-0 vote (AYES: Harnik, Kelly, Nestande, Weber, and Jonathan; NOES: None). Mayor Jonathan pointed out that Greg Rodriguez who represents the County in this matter is an excellent source of information, as is Cheryl Dahlin at CVAG. XV. ORDINANCES A. For Introduction: None 16 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING OCTOBER 11, 2018 B. For Adoption: None XVI. NEW BUSINESS A. INFORMATIONAL REPORT ON AFFORDABLE HOUSING STRATEGIES WITHIN THE CITY OF PALM DESERT, AND A REQUEST FOR ANY DIRECTION RELATING THERETO. Mr. Stendell stated this presentation is a continuation from the Study Session that started at 2:00 p.m. At the June 14, 2018, under Request for Action, Mayor Jonathan requested staff answer four specific question relating to affordable housing. Additionally, the staff report, which can be found on the City's website, provides a brief description and background on Housing Element Law and policies in place. First Question: "How does the City's current policy compare to other Valley cities." Staff made extensive calls and emails to other Valley cities and found that none are doing any specific incentivizing of affordable units at this time. Most Valley cities are using their zoning authorities to up -zone properties that need to accommodate affordable units. They are also working with developers through incentives to use appropriately zoned lands. None of the cities staff talked to had any in -lieu fees, inclusionary housing ordinances, or policy memos related to exactions in this realm. He said deep conversations often come up at the Technical Planners Group, because there are just no good answers. With the loss of redevelopment, most cities are doing the best job they can with the resources available. Second Question: "Is the City's policy consistently applied." The answer is yes, but with varying results. One comment made in the Study Session is that staff had been a little bit inconsistent. Staff looks at every project uniquely as to the need for affordability, and it applies a negotiation and strategy based on that. From the development world, it can read as inconsistent, which is understandable, which is one of the reasons for having this discussion. On the project side, with the Ponderosa Homes, many years ago the City entered into an agreement to reserve eight acres of raw land with 140 total units with 10% to remain affordable housing. The Retreat at Desert Willow and Palm Desert Country Club were both assessed a condition for in -lieu fees. The Millennium Specific Plan was a partnership where there was land swapped and affordability built into that project, including affordable units required of the apartment complex that's in this specific plan. The Sands Project, which was recently approved at the City Council was afforded a Density Bonus utilizing State legislation allowing cities to relax certain development standards for affordable projects. It was an 80/20 project where 80% is at market rate, and 20% is at very low and low. This was a great use of public/private partnership as far as getting units constructed in the City. Responding to question, he said 400 units are 17 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING OCTOBER 11, 2018 proposed for The Sands. Currently, the City is under negotiations with a developer who is looking to mask the specific plan with raw land in the north sphere for a 20% inclusionary within the project, which is the concept of the negotiation. This was just another topology staff has encountered over the last 10 to 15 years. Third Question: "Is the City's policy effective or is it deterring development?" The answer is that it's very hard to determine, but staff is seeing and hearing financial implications as reported back by the development community. There is definitely additional time spent when these issues come up. Some projects have sped through this process and get through negotiations fairly quick, and others can take 12 months or more before both parties are willing to move forward. Fourth Question: "Is there a better way to do this?" In reality this is a policy question staff is trying to obtain input from the City Council. The 2013 policy memo indicates the City should refresh the policy from time to time as new legislation is passed, and since five years have passed, it would be appropriate to revisit now in 2018. What staff hears most often from the development community is that it's seeking a fair and certain process. Therefore, staff is seeking direction or guidance on what Council's expectations would be with regard to affordability and staff can research and prepare a draft policy for it's review and approval. Councilmember Harnik inquired about the Ponderosa Development. Mr. Stendell replied that the policy was amended in 2013, and the Ponderosa Development was initiated around 2004 or 2005. Councilmember Harnik asked what was accomplished with the amendment change. Ms. Aylaian said it entitled the last eight acres of land. When the project was originally approved, land was set aside as part of the agreement. No parcel maps or architecture was developed, because there was an understanding then that the means and desires of home buyers were changing, and they didn't want to commit to a product. They wanted to remain flexible for developing future phases, and this was that future phase. Mayor Jonathan commented that after the Study Session his understanding has been crystalized. He understood that the City's basic policy, with regard to encouraging affordable housing, is that residential developments over five acres in size are required to deed over 20% of the units to qualify, which is the starting point. Mr. Stendell added that it also included asking for discretionary approval, a zone change, specific plan, or something outside the norms that zoning provides them. 18 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING OCTOBER 11, 2018 Mayor Jonathan went on to say that if the developer was not asking for any 'W exceptions, they were not subject to the low income requirement. elm NMI ow Mr. Stendell answered yes, because that's how staff has interpreted the memo for the past three years. Mayor Jonathan stated that in addition, for any commercial development there is $1.00 per foot charge. On occasion, developers who prefer not to have affordable housing units within their residential development, the City has entered into discussions, negotiations, and agreements for them to pay a fee in lieu of creating the actual affordable housing. Mr. Stendell agreed it has been done on occasion. Further responding, he confirmed other Valley cities don't have a policy that requires the creation of affordable housing for payment to mitigate the need for affordable housing, with the exception of Coachella when someone is requiring a development agreement. He added most cities are absorbing the obligation on their side, in that they are not looking to the exactions on the development community. They are trying to partner with private developers like Palm Desert did with The Sands Project. They are looking at CVHC (Coachella Valley Housing Coalition) and working with the tools they can without looking at exactions on the private development side of the books. In other words, they are keeping it at what they can control and not asking the development community for anything additional. Councilmember Kelly asked if they are having success. Mr. Stendell said they were in some cases. He explained there are federal funds available in the east valley that certain communities can tap into that Palm Desert wouldn't qualify for. Further, there are developers out there like The Sands, but they are in short supply. He believed every community in the State is being challenged with this specific topic. Councilmember Nestande stated the City of Rancho Mirage is building a new Sun City with 2,000+ homes, questioning if they were exempt because it's for people 55+ housing. Mr. Stendell said it wasn't. Councilmember Nestande wondered how that development was working, because in Palm Springs they have several housing developments starting, and she was curious to know if they have a housing component. Mr. Stendell responded he wasn't aware, but there again, they are trying to take developers in that arena and teaming them up with State programs and 19 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING OCTOBER 11, 2018 attempting to find available lands. He believes staff there is coordinating the deal/projects. Further responding, he confirmed the City of Palm Desert is doing the same thing. He went on to say success looks like The Sands, because it fulfills one entire category for the City with about 72 units; Palm Desert got all of its units for seven years in one project. He said there is a lot of success out there, just not the speed at which it comes. Councilmember Kelly asked what was in the City's control that produced that success. In other words, she didn't want to chalk it up to good luck, because the City wants to be able to duplicate it again. Mr. Stendell said that if you spoke to Mr. Lee Newell, Applicant for The Sands Project, and many other developers of private development, it's the total package of what the City of Palm Desert provides, the well -maintained streets, and park settings. The landscaping throughout town is what often brings the development community to Palm Desert, because you get a level of service you don't get elsewhere. For Mr. Newell, he indicated to staff that he had been keeping an eye on that property for over 20 years, and this was his business model of the 80/20. This was just one developer, but staff has heard these types of stories year after year. Mayor Jonathan offered it would be fair to say, from a financial standpoint, the density bonus that Mr. Newell received as a result for providing the required number of affordable housing likely factored into a financial decision for him to proceed in that direction. Mr. Stendell agreed. Responding to question, he couldn't say that the density bonus was the defining component in The Sands Project, because it takes a multitude of things to come together. He said private developers need to have a performa that yields a good return, and the density bonus in pure numbers probably made it work. Additionally, with The Sands, the package included State funding and tax credits. Councilmember Harnik said she understood the east valley qualified for things that Palm Desert doesn't, so she's trying to understand the bag of tools that Palm Desert developers may have. Mr. Stendell explained there are many and they are ever changing. A lot of it is legislative, and the granting pots change. This is a big emphasis at the State right now, so there is a lot of funding, but the challenge is getting that funding drawn out to the eastern Riverside County and Coachella Valley, which has been difficult. However, given the high priority for housing in the State of California, staff is always keeping an eye on the bag of tricks and expanding and adding things to the tool kit. Between the Planning Division, 20 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING OCTOBER 11, 2018 Housing Department, and Finance staff, efforts are made to stay on top of .r. what is out there. 1110.0. Councilmember Nestande recalled The Sands Project was on the agenda a couple of times and caused a lot of controversy. In large part, because the only way that project was going to move forward, was if it had the density bonus and it didn't matter what other funding mechanism the City had at its disposal. She said the catalyst was the density bonus, which the City shouldn't rely on for all projects moving forward. Ms. Aylaian offered that the greatest tool for providing affordable housing in our area is Tax Credit Financing, and that is something all of the projects rely upon, including The Sands. She explained that award of a tax credit depends upon many things, including the location, density, number of units, access to public services, transportation, schools, etc. Palm Desert projects typically do not score as well for Tax Credit Financing compared to project in the east end of the Valley or projects that are in more urban area. Palm Desert is also not on a metro system or mass transit, which helps to award points for competitive Tax Credit Financing. Therefore, the current primary tool is Tax Credit Financing, but it's not easily obtained, and it can take a half a dozen application cycles before the financing is awarded, if at all. ►.. Councilmember Harnik remarked it was similar to the Arc Project. Councilmember Kelly said there is the noncompetitive 4% tax credit, which all the City's proposed projects would be eligible. Ms. Aylaian agreed, adding she failed to mention cities could also waive fees or financially participate by donating the property. There are other things the City can do to make projects more likely to get funded, all of which would require the investment of City resources. Mayor Jonathan stated Palm Desert has had a number of projects that privately have constructed affordable housing. In addition, through the Housing Authority, the City owns and operates around 1,200 units. He's curious if any of the other cities own and operate affordable housing units. Mr. Stendell replied he could get those statistics, because there are other cities that have more units than Palm Desert. Nonetheless, Palm Desert's portfolio is impressive. '"" Ms. Aylaian added that Palm Desert is unusual in that the City manages most of its units. Iwo 21 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING OCTOBER 11, 2018 Mayor Jonathan would like to know if other cities owned and operate their own inventory of low-income housing, and if the answer is yes, he was curious if they don't have an exaction, how did they finance the creation of those units. Mr. Stendell believes it happened during the redevelopment era, but he will research it and bring back the data. Mayor Jonathan learned the City of La Quinta has had some measure of success in attracting private developers in recent years to create low-income housing within their city. He asked if staff was aware of the reasons for their success in attracting the private industry. Mr. Stendell said he will dive deeper into it, but he believed they were fortunate in obtaining remnant funds in their housing mitigation through the dissolution of redevelopment by using the 20% stream for the Wolff Waters Place. MR. CLINT LORIMORE, Building Industry Association (BIA) - Riverside County Chapter, stated he sat through the Study Session earlier this evening and found it informative. This discussion raises the heartbeats of those in the development community. The City's current policy is of concern to the members and how its being applied. In lieu fees, exactions, inclusionary zoning, and negotiation of 20%, etc., stops development on its tracks, because it hinders projects from penciling out. The development community wants to have clarity, but through incentives of what the City wants to see brought forward as opposed to 20% off the top and what it has to dedicate to low-income housing. Just this morning, he was at an economic conference in Riverside, and the discussion revolved on the cost of housing, affordable housing, inclusionary zoning, and how to get there, which he felt was certainly not the answer. The reality is, because of the shortage in the State, you can build 180 units a year, but it needs to build 180,000, yet it hasn't been doing it for ten years. The shortage is adding to the cost of housing, because rents continue to go up. He recommends not imposing the requirements mentions on any of the projects in the pipeline. Councilmember Harnik asked about the incentives. MR. LORIMORE replied he had a list that he will forward to the City Council and staff this evening. Partnering with developers is one of them, and the City's Policy reference in the memo is not what partnership feels like. MR. CHRIS CHAMBERS, Consultant for the Monterey Specific Plan, divulged that after consulting for more than 30 years, this was the most uncomfortable appearance he has ever made. The MCP Specific Plan, of 22 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING OCTOBER 11, 2018 which he is the applicant's consultant, which he has been processing through the City for the past 2% years. It's not his intention to present his case, because that's the genesis for his uncomfortableness. He came as a member of the community responding to this issue. It's very important for Council to understand from the development community's standpoint, an exaction can only occur when there is value to a project. Therefore, he would encourage Council to reexamine the first discretionary act of every single one of the projects that were put on the board to determine if there was value added to the project. Ponderosa, for example, action was taken that significantly increased the density of the project. The exaction by the City was for the developer to set aside a site for affordable housing, and included 10% of his project as moderate housing. Moderate housing is very close to market rate in most economic cycles. With The Sands Project, the genesis of the approval, which was done during the redevelopment agency days, it was a significant change of zone for the property. His recollection was that it was open space and converted to high -density residential. The most recent action, the development and the project came into the City already having an affordable housing requirement on the property. Therefore, the developer, a subsequent to the first action, had another action in front of the City Council which was to award a density bonus. At every turn, the density has been increased on a project that was approved during the redevelopment agency days. In other words, the project was already burdened by an affordable housing condition. He could take more time on this, but he encouraged Council to look at the value that is really being added by the discretionary action. His definition of value added is something that would occur when there is a change of zone, a variance to a zoning ordinance, or when there is some other action that takes it outside the realm of what the current zoning is and the current status of the project is in the City. He said it was important to investigate those facts. Lastly, the MCP Specific Plan was identified as Monterey Specific Plan, and there is no agreement for 20%, and he looked forward to coming before the City Council soon on that project. MR. JAMES BROWNYARD, Desert Valley's Builders Association, stated the State screwed up the situation and now everyone is living with the impacts, which is what they see with other cities and other agencies. In 2011, the State took funds that used to get recycled throughout the community and provided affordable housing at varying levels. It continued to draw out from the community and make money, thereby, using those funds over and over again. However, that no longer exists. The industry has some tools, and one of them is a density bonus; it's cheap and easy. It may push a project over the edge to where it meets the margins, but there are other issues. The total fee input that a developer pays, were looking at an average of $40,000 per unit, all fees included. The fee includes the school districts, water, sewer, etc. Therefore, when looking at the total package, there are different things this body can do. The City Council can defer fees until Certificate of 23 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING OCTOBER 11, 2018 Occupancy to avoid the developer from carrying the charges. In other words, a developer wouldn't have to put up the money six months before it sells the product, which helps, but these are small things. With the 80/20 program, there are colors of money like grants and State monies. There are other investors smarter than he who are trying to put together something that is affordable that can meet the demand. The industry knows that any kind of inclusionary requirement or fee doesn't work at any level, because it doesn't produce more homes than without it. In fact, without it, a free market actually produces more homes on the whole spectrum of housing cost. If he has to pay a 20% fee to make it part of his project, he will have to carry that cost or lost over to the other units in that development, which doesn't pencil out at the end of the day. If a developer comes up with a $200,000 home for 20%, it now brings up that $350,000 home into the $400,000 housing market. For every $1,000 price increase, per the NHBC (National Housing Building Council) standards, it's 14,000 families that are out of the eligibility to get funding for that home. Councilmember Nestande appreciated the comments made by the speakers, because they have valuable input and wisdom. She would like to have a dialogue with the building industry, elected officials, and staff to come up with great solutions. She understands the situation everyone is in because of the State mandates, so as a City, it can start looking at ways to partner with developers. Because of the Toss of redevelopment monies, the City can look for ways to help financially. She doesn't know where that pot of money would come from, but she believed it's something to look into. Mayor Pro Tem Weber concurred, especially about what the City can do differently. Councilmember Nestande added that just hearing Mr. Brownyard talk about the fees and how it causes the price of a home to rise exponentially, making housing unaffordable, was valuable input. Councilmember Kelly pointed out staff was asking the City Council how it ranked its desire to create new affordable units. She personally ranked it very high for the following reasons: The City's economy creates Tots of service sector jobs, and many of those jobs do not currently pay enough to enable those Palm Desert employees to afford market -rate housing in the City. One of the paramount objectives Council talks about when developing transportation plans is to reduce miles traveled to have a positive impact on emissions, because the climate and environment are the City's bread and butter. Without a beautiful environment, Palm Desert doesn't have a basis for a tourism driven economy. The single most effective way to reduce vehicle miles traveled is to afford housing close to where people work, it's just that simple. If the City is serious about reducing vehicles miles traveled 24 PPM MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING OCTOBER 11, 2018 and vehicle emissions, Council absolutely has to rank this issue high. However, she's a lot less clear on how to achieve it. Of course, this issue has to be done collaboratively with the development community, because the City doesn't build houses, and the funding landscape is increasingly complex after the loss of redevelopment. What she would like to see next is more action and activity at the staff level and potentially utilizing consultants. Perhaps a proposal needs to come back to the City Council to authorize for a consultant, because she believes in-depth collaboration is needed with developers, such as Mr. Newell, to learn how the City can position itself to have the greatest impact. In the Study Session there was discussion about consistency, which affords predictability. She said Mayor Pro Tem Weber made the comment that each of the City's affordable housing properties has some unique dimension, and Palm Desert doesn't have very much vacant property left. Before making decisions, it might be helpful to the City Council to have a study session where it looks at what vacant property is left and what visions' staff has for key parcels. Councilmember Harnik concurred, stating she believed this needed to be put on fast forward, because there are developers that want to work in Palm Desert, but they can't make a budget without the numbers. However, when the City finally comes up with a result, not everyone will be 100% happy, but that's compromise. She would like to see the list of incentives and be able to work with them. She keeps hearing about inclusionary zoning, but the City has found that it happens to work well. When the City integrates different levels of housing, people rise together, which is important, because Council wants a well-rounded community in Palm Desert. It's something the City has been working on and it's part of the Strategic Plan. Also, there were some great ideas mentioned in the Study Session on how the City can help developers, and in order to do this right away, Councilmembers may have to carve out time from their schedule to focus on this. Councilmember Kelly offered that since study sessions are not decision -making sessions, if staff can gather information from a variety of sources prior to the study session, it may create faster progress. To her way of thinking, information is what is most needed from both profit and nonprofit developers for affordable housing, to learn how the City can adjust its policy to prompt their selection of some of the opportunity that still exists in Palm Desert. Councilmember Harnik agreed, stating Council will need to know about all the unique properties still available, formulas being used, and whatever other options there are, because Palm Desert wants to attract good developer. __ Mayor Jonathan was in agreement in large part with all the comments. However, staff is asking for direction with regard to potential strategies 25 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING OCTOBER 11, 2018 concerning housing affordability within the City. It's a very broad task, and he finds Council is focused exclusively in encouraging the development in a fair manner. Yet, it occurred to him there is another side to the equation. Creating low-cost housing is one side, but enabling people to afford housing is the other side. He's proud that Palm Desert is taking several steps in that direction with its investment in the second iHub and partnering with Cal State University San Bernardino with regard to cyber security, because creating high -paying jobs is another way to getting people into market -rate housing. He said Council should never lose sight of that, because the argument can be made that solving the problem through enabling people to be educated and earn higher income is a much better solution than creating housing that is below market. With regard to the current policy, the question is whether it's effective in terms of encouraging the creation of affordable housing. He has serious reservations, and there is data that indicates that when you increase fees associated with building housing, it creates unintended consequences. In his opinion, the policy is broken. It is consistently applied, but it consistently produces inconsistent results, which is not fair and inappropriate. It's a broken policy that needs to be fixed. He personally couldn't make any decisions until he understood where the City fits in. Palm Desert has a lot of affordable housing units and wondered if it's enough for a community of this size. There is an untold number of affordable units that have gone through a private process, so those units could be unaccounted. He didn't know how Palm Desert equates to other communities or the needs of this community. He believed those questions had to be answered before saying what the City needs to do. He agreed input from the development community was needed, but the City wasn't going to blindly eliminate fees of any nature. He would like to hear their reasoned analysis and gain from the benefit of their experience, Council can then draw from it and make an informed conclusion. He believes staff heard the kinds of data he is interesting in having. In summary, be believed the City needed to move forward quickly, it has a policy that needs attention or modification, and Council owed it to the development community and residents to do something if its serious about creating affordable housing. Councilmember Harnik agreed Council couldn't have a narrow focus on this issue, because it's not that the community didn't have enough homes, it's that there are not enough high -paying jobs to afford them, which is why the City made the decision to invest in the iHub. She emphasized the importance for moving quickly, but with staff providing as much information in order to make the best decisions. Councilmember Kelly pointed out that Palm Desert has 1,100 affordable units and the wait list is between 8,000 and 9,000, which is a strong indicator that demand is greater and currently not being met. She is a huge proponent of the iHub and the work its doing as a City to diversify the economy to 26 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING OCTOBER 11, 2018 create high -paying jobs. However, Council had to keep in mind that as it creates high -paying jobs and as it creates market -rate housing, based on the Nexus Study, there is a consequence in creating more service sector jobs to accommodate that growth. Therefore, until service sector jobs pay more, there will be a continued need for affordable housing. Mayor Jonathan reiterated it was important to understand what other cities are doing to encourage private development of affordable housing, because it appears some cities are successful in that regard. In his previous comments, he wasn't implying there isn't a need for more affordable housing, and he's also not saying Councilmember Kelly was suggesting Palm Desert had to build 9,000 more units because of the waiting list, because there could be people from New York who are putting their name on the list. His comments were directed to the question of whether or not Palm Desert has fulfilled its obligation as a City. Obviously, Palm Desert is not going to fulfill or solve the need for affordable housing for the entire Valley, County, State, or nationally. The real question is whether the City has done enough or should it do more. It's a question that should be on the table when considering moving forward. Responding to question from staff about direction, Mayor Jonathan said there was a consensus by the Council that once staff finds out what is involved, it can exercise judgement and make a recommendation to the City Council on how to proceed whether that is through a formal City Council action, a study session, or a staff report. Councilmember Kelly agreed, stating it can be in memo format with a proposed process or process options. Councilmember Harnik invited Mr. Brownyard and Mr. Lorimore to provide any information they deemed helpful Councilmember Nestande moved to, by Minute Motion: 1) Receive and file informational report related to the City's current policy on affordable housing; 2) directed staff to collect data and provide recommendation on how to move forward. Motion was seconded by Harnik and carried by a 5-0 vote (AYES: Harnik, Kelly, Nestande, Weber, and Jonathan; NOES: None). 27 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING OCTOBER 11, 2018 B. REQUEST FOR AUTHORIZATION TO PURCHASE 51 GARDEN PLANTER BOXES FROM GREENDAY, LLC, FOR THE SANTA ROSA COMMUNITY GARDENS IN THE AMOUNT OF $105,366 (CONTRACT NO. C37690, PROJECT NO. 997-18). Landscape Supervisor Randy Chavez noted the staff report and offered to answer questions. Mayor Jonathan stated staff is requesting an exemption to the bidding requirements, and while he generally shies' away from those types of exemptions, it's amply justified in this case. Councilmember Harnik moved to, by Minute Motion, authorize: 1) An exemption to the bidding requirements, as provided for in Palm Desert Municipal Code Section 3.30.160(J) to allow sole source procurement from Greenday, LLC, Indio, California; 2) purchase of 51 garden planter boxes from Greenday, LLC, for the Santa Rosa Community Gardens in the amount of $105,366 — funds are available in Account No. 2364618-4400100 - Recycling Fund. Motion was seconded by Weber and carried by a 5-0 vote (AYES: Harnik, Kelly, Nestande, Weber, and Jonathan; NOES: None). C. REQUEST FOR APPROVAL OF A COOPERATIVE AGREEMENT FOR THE DESIGN AND CONSTRUCTION OF TRIPLE LEFT -TURN LANES AT THE INTERSECTION OF FRED WARING DRIVE AND WASHINGTON STREET (CONTRACT NO. C37700). Project Administrator Ryan Gayler pointed out this Cooperative Agreement is between the cities of Indian Wells, La Quinta, and Palm Desert. This is for construction of a triple left -turn lane. The City of La Quinta will be the lead agency for the project by doing all the work for the administration of the contract and construction. Palm Desert's portion is $116,000 of the $1.8 million contract, adding that Coachella Valley Association of Governments (CVAG) will be picking up 75% of the cost. Councilmember Nestande said she finds those triple left -turn lanes dangerous, but assumed staff did a study on the traffic patterns to warrant them. Mr. Gayler replied that traffic gets backed up when there are big events at the Tennis Garden and surrounding area. It's anticipated that over time the level of service will drop to where it's unacceptable. Councilmember Kelly noted the City's portion was actually a third of that 25% shared by all the cities. 28 01111101. MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING OCTOBER 11, 2018 Mayor Jonathan stated the City's budget provides for up to $250,000, but it's .r only going to pay $116,000. Councilmember Kelly moved to, by Minute Motion, authorize the City Manager to execute a Cooperative Agreement for the Design and Construction of Triple Left -Turn Lanes at the intersection of Fred Waring Drive and Washington Street — funds are available for the project in Measure "A" Project Account, No. 2134617-5000501. Motion was seconded by Nestande and carried by a 5-0 vote (AYES: Harnik, Kelly, Nestande, Weber, and Jonathan; NOES: None). D. REQUEST FOR ADOPTION OF RESOLUTIONS BY THE CITY COUNCIL (AS THE DEFINED LEGISLATIVE BODY) AND HOUSING AUTHORITY (AS SUCCESSOR HOUSING ENTITY TO THE FORMER PALM DESERT REDEVELOPMENT AGENCY), EXTENDING THE PERIOD FOR RETENTION OF APN 627-122-013 AND 627-122-003 (A.K.A. SAGECREST EXPANSION - SANTA ROSA WAY) FOR AN ADDITIONAL FIVE-YEAR PERIOD AND REAFFIRMING THE AUTHORITY BOARD'S INTENTION THAT THE PROPERTY SHALL BE USED FOR THE DEVELOPMENT OF AFFORDABLE HOUSING TO PERSONS AND FAMILIES OF LOW AND MODERATE INCOME, PURSUANT TO HEALTH AND SAFETY CODE SECTION 34176.1 (JOINT CONSIDERATION WITH THE PALM DESERT HOUSING AUTHORITY). lime Senior Management Analyst Veronica Tapia stated staff was asking for an extension in order to out for a Request for Proposal (RFP) to get this property developed for affordable housing. She noted this item went before the Housing Commission and they are happy to see this go forward. Mayor/Chairman Jonathan was unclear about the next step, asking if the plan was to move forward with a RFP in the near future. Ms. Tapia replied staff has been working on the RFP for the past few month, and the plan is to send it out once it's been through legal counsel in defining what it needs to get the ideal proposal back. In short, yes, the next step is to go out for RFP. Mayor/Chairman Jonathan asked if the RFP was for the purpose of a developer to purchase the property into development, and if staff expected that to be for low-income housing. Ms. Tapia answered yes. Moo Or 29 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING OCTOBER 11, 2018 Councilmember/Member Harnik commented this was a perfect example where the Density Bonus could be applied. Ms. Tapia agreed, stating she understands it has the potential for 16 units. Mayor/Chairman Jonathan asked if it would be possible for a developer to create something that's free of any City involvement and create entirely affordable housing targeted for seniors, but through tax credits and other incentives. Ms. Aylaian said it's unlikely for a developer to be able to produce affordable housing units for seniors, because the City has met its quota for senior units. Although, this is strategically located for senior development, and if someone wishes to build a senior complex, it wouldn't help the City meet any of its goals. Mayor/Chairman Jonathan asked if it would be possible to convert some of the existing senior housing stock, given the proximity to the Joslyn Center, to non -senior housing, so that it would benefit the City, in terms of achieving the goal. Ms. Aylaian replied it was possible, but it's expensive, because you are talking about different number of bedrooms and different sizes of uses. Councilmember/Member Harnik moved to waive further reading and adopt: 1) City Council Resolution No. 2018 - 76, reaffirming its intent that affordable housing be developed on Authority -owned vacant lots known as APN 627-122-013 and 627-122-003, and extending the time period for retention of such property for an additional five (5) years, pursuant to Health and Safety Code Section 34176.1; 2) Housing Authority Resolution No. HA - 87, reaffirming its intent that affordable housing be developed on Authority -owned vacant lots (as Successor Housing entity) known as APN 627-122-013 and 627-122-003, and extending the time period for retention of such property for an additional five (5) years, pursuant to Health and Safety Code Section 34176.1. Motion was seconded by Nestande and carried by a 5-0 vote (AYES: Harnik, Kelly, Nestande, Weber, and Jonathan; NOES: None). XVII. CONTINUED BUSINESS None 30 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING OCTOBER 11, 2018 XVIII. OLD BUSINESS A. REQUEST FOR APPROVAL OF CONTRACT AMENDMENT NO. 1 TO CONTRACT WITH DOKKEN ENGINEERING FOR THE SAN PABLO IMPROVEMENTS PROJECT (CONTRACT NO. C35520B). Management Specialist II Cora L. Gaugush noted the subject change order regarding the application for the Active Transportation Program (ATP) grant for the San Pablo Improvement Project. The potential is $3.2 million and the cost to prepare the report was $14,260. She said Dokken Engineering has completed the work under the authority of the City Manager. This was an administrative item to pay the vendor. Councilmember Kelly moved to, by Minute Motion, approve/authorize: 1) Amendment No. 1 to subject contract with Dokken Engineering, San Diego, California, for additional work in conjunction with the San Pablo Improvements Project; 2) authorize Mayor to execute same - cost benefit of receiving grant for the project will well justify cost involved with complex preparation of same. Motion was seconded by Nestande and carried by a 5-0 vote (AYES: Harnik, Kelly, Nestande, Weber, and Jonathan; NOES: None). XIX. PUBLIC HEARINGS None XX. ADJOURNMENT With City Council concurrence, Ma ATTEST: LLE D. KLASSEIct, CITY CLER F PALM DESERT , CALIFORNIA CITY O SA han adjourned the meeting at6:22 p.m. AN, MAYOR 31