HomeMy WebLinkAbout2019-11-14MINUTES
REGULAR PALM DESERT CITY COUNCIL MEETING
THURSDAY, NOVEMBER 14, 2019
CIVIC CENTER COUNCIL CHAMBER
73510 FRED WARING DRIVE, PALM DESERT, CA 92260
I. CALL TO ORDER - 3:00 P.M.
Mayor Weber convened the meeting at 3:00 p.m.
II. ROLL CALL
Present:
Councilmember Jan C. Harnik
Councilman Sabby Jonathan
Councilmember Kathleen Kelly
Mayor Pro Tem Gina Nestande
Mayor Susan Marie Weber
Also Present:
Lauri Aylaian, City Manager
Robert W. Hargreaves, City Attorney
Andy Firestine, Assistant City Manager
Rachelle D. Klassen, City Clerk
Lori Carney, Director of Administrative Services
Russell Grance, Director of Building & Safety
Ryan Stendell, Director of Community Development
Martin Alvarez, Director of Economic Development
Janet M. Moore, Director of Finance/City Treasurer
Tom Garcia, Director of Public Works
Stephen Y. Aryan, Risk Manager
Ty Davis, Division Chief, Palm Desert Fire/Riverside Co. Fire Dept./Cal Fire
Bryan White, Battalion Chief, Palm Desert Fire/Riverside Co. Fire Dept./Cal Fire
Lt. Matt Martello, Asst. Chief, Palm Desert Police/Riverside Co. Sheriffs Dept.
Grace L. Rocha, Deputy City Clerk
III. ORAL COMMUNICATIONS - A (CLOSED SESSION ITEMS)
None
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REGULAR PALM DESERT CITY COUNCIL MEETING NOVEMBER 14, 2019
O. STATUS UPDATE Regarding Short -Term Rentals (STRs) Within the City of
Palm Desert.
Removed for separate consideration under Section XII I, Consent Items Held
Over. Please see that portion of the Minutes for Council discussion and
action.
P. REQUEST FOR AUTHORIZATION to Accept Improvements to
Monterey Avenue, Release the Faithful Performance and Labor and
Materials Bonds, and Accept a 10% Maintenance Bond for the
California Desert Association of Realtors (CDAR) Project (California Desert
Association of Realtors, Applicant).
Rec: By Minute Motion: 1) Accept the improvements to Monterey Avenue;
2) release $26,686 of the Faithful Performance Bond and $13,343 of
the Labor and Materials Bond for the project; 3) accept a 10%
maintenance deposit in the amount of $2,668.60 for same.
SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY
Q. MINUTES of the October 24, 2019, Regular Meeting of the Board of
Directors of the Successor Agency to the Palm Desert Redevelopment
Agency.
Rec: Approve as presented.
PALM DESERT HOUSING AUTHORITY
R. MINUTES of the Housing Authority Meeting of October 24, 2019.
Rec: Approve as presented.
S. CLAIMS AND DEMANDS AGAINST THE CITY/HOUSING TREASURIES -
Warrants Dated 10/11/2019, 10/18 2019, and 10/25/2019 (Joint
Consideration with the Palm Desert City Council - See Item C above).
Rec: Approve as presented.
Councilmember Harnik requested Item K be removed for separate consideration
and Councilman Jonathan requested Item O.
Upon motion by Kelly, second by Harnik, and 5-0 vote of the City Council (AYES:
Harnik, Jonathan, Kelly, Nestande, and Weber; NOES: None), the remainder of Consent
Calendar was approved as presented.
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XIII. CONSENT ITEMS HELD OVER
K. REQUEST FOR AWARD OF CONTRACT for Engineering and Traffic
Survey Services for Establishment of Speed Zones Citywide to
TJKM Transportation Consultants in the Amount of $90,625 (Contract
No. C39140, Project No. 590-20).
Councilmember Harnik said this item has to do with the traffic survey and
services for the establishment of speed zones, and the City has a couple
more years before it has to do a new study. She suggested holding off,
because there is a committee in Sacramento working on the 80 percentile
rule that says that if 80 percent of the vehicles are going a certain speed,
then that should be the speed. However, there has been enough research
to say that is probably not very safe, especially on Palm Desert streets where
drivers are going 50 or 60 mph near residential. The Valley's representative
on that Committee is Councilmember Lisa Middleton from the City of Palm
Springs, and when asked about it today, she said it would be best to slow
down because in early 2020 there will be legislation changes that may affect
the criteria on how we go about implementing speed limits. She suggested
holding off for four or five months on this item, because the criteria may
change and it would be fiscally prudent to do so.
Mr. Garcia replied there are a couple of caveats on that five to a seven -years
requirement, one of them is if the street has had major modifications to it,
and some have and others have not. Therefore, with the approval of this
contract, staff can proceed with the streets that need the speed survey done.
He offered to have staff come back with a list of the streets that needs to be
done and those that can wait the four or five months pending legislation.
Councilmember Harnik said it sounded like a reasonable solution.
Councilmember Harnik moved to by Minute Motion: 1) Award subject contract for
Engineering and Traffic Survey Services for Establishment of Speed Zones Citywide to
TJKM Transportation Consultants, San Diego, California, in the amount of $90,625;
2) authorize the Mayor to execute said contract — funds are available in General Fund
Account No. 1104250-4309000 - Professional -Other, with staff agreeing to return to the
City Council with a list of affected streets. Motion was seconded by Kelly and carried by
a 5-0 vote (AYES: Harnik, Jonathan, Kelly, Nestande, and Weber; NOES: None).
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O. STATUS UPDATE Regarding Short -Term Rentals (STRs) Within the City of
Palm Desert.
Councilman Jonathan pointed out that December 31, 2019, is quickly
approaching and after that point there will no longer be any permits in the
R1/R2 Zone, other than those that sought and received an extension. He
asked what is the City doing to ensure all those holders are fully aware of the
upcoming deadline.
Associate Planner Kevin Swartz noted that people in the R1/R2 Zones could
still apply for an On -site Owner Short-term Rental Permit. Staff is sending
a letter out next week to all R1 and R2 owners, notifying them that their
permit will expire at the end of the year and if they continue to operate after
the deadline, it will be an immediate $5,000 fine. Further responding, he
confirmed the City tracks the number of current holders/permits in the R1
and R2 Zone, adding there is approximately 218 STRs remaining.
Councilman Jonathan moved to, by Minute Motion receive and file the Short -Term
Rental Update Report. Motion was seconded by Kelly and carried by a 5-0 vote (AYES:
Harnik, Jonathan, Kelly, Nestande, and Weber; NOES: None).
XIV. RESOLUTIONS
None
XV. ORDINANCES
A. For Introduction:
None
B. For Adoption:
None
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XVI. NEW BUSINESS
A. REQUEST FOR APPROVAL OF FISCAL YEAR 2018-2019 FINAL BUDGET
ADJUSTMENTS TO REVENUE AND EXPENDITURES, AND CERTAIN
RELATED EXPENDITURES FOR FISCAL YEAR 2019-2020.
Ms. Moore stated the City will soon be closing the financial records for Fiscal
Year 2018-2019, and as part of that, there needs to be some adjustments.
The budget will be changed to be more reflective of the actual expenditures
for the year. In addition, staff is requesting to make an adjustment and direct
staff to commit $1.4 million of the excess surplus from last year to replenish
the Economic Development Reserve Fund. When Council allocated that
money for a project, it was with the understanding that there would not be
monies available for other projects and programs in Economic Development
until there was a way to replenish the fund. Because there was about
$2.7 million in excess revenues last year, staff is making a recommendation
to replenish the fund and use it for economic development purposes.
Additionally, staff is making a recommendation that in this fiscal year (2019),
the City makes another payment to the pension liability in the amount of
$1.5 million in order to stabilize pensions going forward. The goal is to be
realistic and responsive to what the State has done in reducing their interest
rate or expected rate of return. CaIPERS has reduced the interest rate from
7.5% to 7.0%, and the City will feel the full effects of that change in the
2019/2020 year. Therefore, staff is recommending the additional payment
to CaIPERS. In the future there will be set required payments to be made to
CaIPERS, and by making additional payments now, staff hopes to level them
out to the extent possible. She said attached to the staff report are
adjustments Council authorized the City Manager to make, and those
adjustments net to zero; they are not an excess already approved by
Council. Today's requests are attached to Resolution 2019- 81 as Exhibit A;
they are adjustments to revenue and some appropriations.
Councilmember Kelly stated the revenues over expenditures is $2.7 million
and the request to allocations is $2.9 million, questioning how that works and
where did the extra $220,000 come from.
Ms. Moore replied those funds would come from General Fund Reserves.
When staff first prepared the report it was expected to be $2.9 million, but an
adjustment journal had to be done at the last minute. However, at the same
time, staff relooked at those two requests and still believed they are good
recommendations, because the $1.4 million will replenish the Economic
Development Reserve, which staff knows there are things in the horizon that
the City is working on that's very important. As to the payment to CaIPERS,
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the City Council can reduce that amount, but staff is still recommending a
$1.5 million.
Councilmember Harnik moved to: 1) Waive further reading and adopt Resolution
No. 2019 - 81, approving and confirming the Fiscal Year 2018-2019 final year-end budget
adjustments to revenue and appropriations; 2) by Minute Motion, authorize and: a) Commit
replenishment of the Economic Development Reserve in the amount of $1,400,000;
b) appropriate an expenditure of $1,500,000 for an additional payment to CaIPERS in
Fiscal Year 2019-2020 to reduce the City's unfunded liability from FY 2018-2019 excess
revenues. Motion was seconded by Kelly and carried by a 5-0 vote (AYES: Harnik,
Jonathan, Kelly, Nestande, and Weber; NOES: None).
B. REQUEST FOR AWARD OF CONTRACT TO HF&H CONSULTANTS, LLC,
FOR SOLID WASTE, RECYCLING, AND ORGANICS CONSULTING
SERVICES IN AN AMOUNT NOT TO EXCEED $323,000 (CONTRACT
NO. C39600).
Senior Management Analyst Heather Horning stated this was award of
contract to a consultant for solid waste, recycling, and organic services. The
consultant will sort out upcoming legislation regarding organic recycling and
help the City develop programs and also implement them.
Councilman Jonathan said the amount seemed excessive to have someone
advise the City as to how to implement this upcoming law, adding it was
equivalent to three people working full-time for a year. Although he didn't
know how far apart, dollars wise, the two proposals were, he questions
whether the City made an adequate effort to ensure it was not overspending.
Ms. Horning replied that HF&H Consultants was the cheaper of the two, but
the contract does include more services. The proposed contract includes
three years of ongoing services, in addition to the initial part of developing
the programs that need to be put in place, and also assist with annual
monitoring of the franchise agreement. There will be monthly or quarterly
meetings with staff and Burrtec to ensure the City is complying with the
franchise agreement and reporting to the State. She offered this contract
included more than just developing programs and it will be ongoing, stating
it was a reasonable amount to spend based on the changing of staffing the
City's had in years. Historically, the City had several members of staff
devoted to helping with solid waste and recycling, and it's currently an
expanding task at this point.
Mayor Pro Tem Nestande offered that unfortunately, it's another unfunded
State mandate the City has to deal with.
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Councilman Jonathan agreed, stating this was not even the cost of
implementing programs, it was the cost for figuring out what it is the City had
to do.
Councilmember Harnik said the good news is that the funds are currently in
the Recycling Fund and doesn't impact the General Fund. However, once
the programs are implemented, there will be an increase in fees for trash and
recycling, which will soon need to be addressed.
Councilman Jonathan asked if there was the possibility of a lower cost for the
services if the City went out for a more extensive bid.
Ms. Horning said she didn't believe so based on other cities contracts for
similar types of services, which is why she felt this contract was reasonable.
Councilman Jonathan moved to, by Minute Motion: 1) Award subject contract to
HF&H Consultants, LLC, Irvine, California, in an amount not to exceed $323,000 for
Solid Waste, Recycling, and Organics Consulting Services; 2) appropriate $323,000 from
the Recycle Fund to Account No. 2364195-4309000; 3) authorize the Mayor to execute
said agreement and any documents necessary to effectuate the actions taken herewith —
upon approval, funds will be available in Account No. 2364195-4309000 - Recycling
Professional -Other. Motion was seconded by Nestande and carried by a 5-0 vote (AYES:
Harnik, Jonathan, Kelly, Nestande, and Weber; NOES: None).
C. REQUEST FOR APPROVAL OF VxRAIL DATACENTER SOLUTION FROM
ABTECH TECHNOLOGIES FOR $284,898.01.
Information Systems Manager Clayton von Helf said this was a much needed
and enhanced upgrade for the data center that will replace the core servers.
Councilmember Harnik noticed the staff report indicates the host servers are
at the end of the warranty, questioning when they were originally put in.
Mr. von Helf replied it was 2008 when they were originally implemented.
Councilmember Harnik moved to, by Minute Motion, approve the purchase from
Abtech Technologies, Carlsbad, California, of Dell hardware, switches, and services to
install and configure a VxRail datacenter solution in the amount of $284,898.01 — funds are
available in the Equipment Replacement Fund. Motion was seconded by Nestande and
carried by a 5-0 vote (AYES: Harnik, Jonathan, Kelly, Nestande, and Weber; NOES:
None).
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D. REQUEST FOR APPROVAL OF A PROPOSAL FROM THE
MATRIX CONSULTING GROUP IN THE AMOUNT OF $59,000 TO
CONDUCT A JOINT POLICE CONTRACT FEASIBILITY STUDY IN
CONJUNCTION WITH THE CITIES OF INDIAN WELLS AND LA QUINTA
(CONTRACT NO. C39610).
Mr. Aryan stated city government across the United States are spending
much more on policing than they did a few years ago. In fact, over the past
ten years, in Palm Desert, the police service contract has increased
approximately 40%. Whether the nature of police services allows for
Economist Scale to be realized, it's an important question a city should ask,
for both cost and efficiency. In an effort to ascertain such efficiencies and
police services, the cities of Palm Desert, Rancho Mirage, La Quinta, and
Indian Wells contracted with Matrix Consulting Group. Earlier this year they
conducted a workload analysis of the police departments that also serve
under contract by the Riverside County Sheriffs Department. They also
explored the feasibility of all four cities developing a joint contract with the
County for law enforcement services. The consultant found efficiencies in
staffing and programming, and the four communities may realize through a
regional policing model, could also provide additional savings by finding the
level of corrected time officers spend outside of responding to calls. For
consideration before the City Council is a Phase II proposal to conduct an
in-depth study of having a joint contract. The City of Rancho Mirage
indicated they are no longer interested in participating in a joint contract
model, but they may reconsider at any time. The study will take about five
months to complete and will require input and collaboration from both staff
and police administration. Ultimately, the primary goal is to see if a regional
contract model can be both cost effective and effectively provide law
enforcement services as compared to how services are currently provided
today. The total cost of the study is $59,000, which will be shared equally
among three cities; each city will pay just less than $20,000. The Public
Safety Commission reviewed this item in October, but due to one
commissioner being absent, there was a tie vote for moving this forward.
One primary concern, for those that voted no, was the potential reduction of
officers needed dependent upon the level of proactive policing time, as noted
within the report. However, he stressed cities can determine desired levels
of proactive time, and therefore, the overall impact any staffing changes
would have been due to consolidation. Once the study is completed, he
anticipates taking this matter before the Cove Commission and back to the
Public Safety Commission, and ultimately the City Council for further
recommendation.
Councilman Jonathan said this effort started with Palm Desert, Indian Wells,
La Quinta, and Rancho Mirage, and now he understands the City of Rancho
Mirage has changed their mind.
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Mr. Aryan explained the City of Rancho Mirage was concerned with the level
of staffing reductions proposed by the consultant, but again, the cities
individually can determine what that is. He noted there are other efficiencies
through Economists of Scale that are realized that wouldn't have such a
detrimental effect on staffing reduction of patrol officers. He said the City of
Rancho Mirage's future involvement may or may not change based on that
information.
Councilman Jonathan recalled the analysis provided data that focused on
potential reductions that would not impact public safety.
Mr. Aryan agreed, stating those were primarily administrative functions such
as having three to four lieutenants versus two, and the amount of staffing
oversight needed is based on consolidation.
Councilmember Harnik moved to, by Minute Motion, approve a proposal from the
Matrix Consulting Group, Mountain View, California, in the amount of $59,000 to conduct
a Joint Police Contract Feasibility Study in conjunction with the Cities of Indian Wells and
La Quinta, and authorize the City Manager to execute any related documents — funds are
available in Account No. 1104210-4304200, and no appropriation is required. Motion was
seconded by Kelly and carried by a 5-0 vote (AYES: Harnik, Jonathan, Kelly, Nestande,
and Weber; NOES: None).
E. INFORMATIONAL UPDATE AND A REQUEST FOR APPOINTMENT OF
TWO (2) CITY COUNCILMEMBERS TO SERVE ON THE SUBCOMMITTEE
PROVIDING INPUT REGARDING AESTHETIC FEATURES FOR
PROPOSED COUNCIL CHAMBER RENOVATION PROJECT.
Project Manager Emily Roethler noted the staff report acting as an
informational report and request for two Councilmembers to join a
subcommittee in making decisions on aesthetic features such as color
schemes, fabric, and other upgrade that may be needed.
Councilmember Harnik said the last renovation took place 20 years ago and
it stood the test of time, therefore, she felt the City should obtain
professionals to do this type of work. Mayor Pro Tem Nestande concurred.
Mr. Firestine explained the City did retain professionals and an architect that
assisted in selecting several color palettes that would stand the test of time.
Staff also recognizes the Council Chamber is a special place occupied by the
City Council and the public. Therefore, the selection of one of several
palettes is one that may necessitate input from the City Council, whether it
be the color or material, which is the reason for staff's request to have two
Councilmembers join the subcommittee to work through the selections
proposed. The time frame for this project is such that staff would like to get
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moving on to incorporate it into the design, then put out to bid to enable
construction of this project during the off season.
Mayor Weber offered that the subcommittee is not making the final selection,
but narrowing them down so that the full Council can make the ultimate
decision.
Councilmember Harnik and Mayor Weber volunteered to serve on the
subcommittee.
Councilmember Kelly moved to, by Minute Motion: 1) Receive and file the
informational update; 2) appointed Councilmember Jan C. Harnik and Mayor Susan Marie
Weber to serve on the subcommittee and provide input regarding aesthetic features for
proposed Council Chamber Renovation Project, including the selection of paint colors
schemes and finish materials of furniture and other fixtures. Motion was seconded by
Nestande and carried by a 5-0 vote (AYES: Harnik, Jonathan, Kelly, Nestande, and Weber;
NOES: None).
XVII. CONTINUED BUSINESS
A. REQUEST FOR AUTHORIZATION OF A ONE-YEAR LEASE AGREEMENT
WITH ANTHONY WESTERGAARD FOR THE OPERATION OF A
REMOTE -CONTROLLED (RC) RACETRACK ON A VACANT CITY -OWNED
PARCEL (APN 640-091-010) (CONTRACT NO. C39460) (Continued from
the meeting of October 10, 2019).
Management Analyst Jennifer Nelson recalled for the City Council that this
item was continued from the meeting of October 10. This contract is a
one-year lease agreement for a small piece of City -owned parcel located at
the beginning of the Bump and Grind Trail. The Applicant would like to utilize
this parcel for a remote control racetrack to invite enthusiasts to events.
Councilman Jonathan thanked staff and legal counsel for following up and
addressing his issue, because he had concerns for the potential of the City
providing economic benefit to a private business. In his opinion, this is a
wonderful amenity for residents, and staff has built in some safeguards in the
Agreement to ensure this will continue to be a labor of love.
Councilman Jonathan moved to, by Minute Motion, authorize the Mayor to execute
a one-year Lease Agreement with Anthony Westergaard for the operation of an RC
racetrack on a vacant City -owned parcel located on Painters Path (APN 640-091-010).
Motion was seconded by Kelly and carried by a 5-0 vote (AYES: Harnik, Jonathan, Kelly,
Nestande, and Weber; NOES: None)
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XVIII. OLD BUSINESS
None
XIX. PUBLIC HEARINGS
A. REQUEST FOR ADOPTION OF AN ORDINANCE OF THE CITY COUNCIL
OF THE CITY OF PALM DESERT, CALIFORNIA, AMENDING SPECIFIED
CHAPTERS OF THE PALM DESERT MUNICIPAL CODE TO ADOPT THE
2019 EDITIONS OF THE CALIFORNIA CODE OF REGULATIONS,
TITLE 24, AND RELATED CODES WITH SELECTED APPENDICES AND
AMENDMENTS.
Mr. Grance pointed out this was the second reading of Ordinance 1351, for
adoption of the 2019 Edition of the California Building Code. He said this
evening the City is conducting a public hearing and adopting the 2019
Codes.
Mayor Weber declared the public hearing open and invited public testimony on the
matter. With no testimony offered, she declared the public hearing closed.
Councilmember Harnik moved to waive further reading and adopt Ordinance
No. 1351. Motion was seconded by Kelly and carried by a 5-0 vote (AYES: Harnik,
Jonathan, Kelly, Nestande, and Weber; NOES: None).
Mayor Weber called a recess at 5:02 p.m. and resumed the meeting at
5:09 p.m.
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IV. ADJOURN TO CLOSED SESSION
Request for Closed Session:
A. Conference with Real Property Negotiator pursuant to Government Code
Section 54956.8:
1) Property: Desert Willow Golf Resort - Overflow Public Parking Lot
(Portion of APN 620-400-008 and APN 620-420-024)
Agency Negotiator: Lauri Aylaian/Martin Alvarez/City of Palm Desert
Other Party Negotiator: Desert Wave Ventures, LLC
Property Owner: City of Palm Desert
Under Negotiation: x Price x Terms of Payment
2) Property: 44911 Cabrillo Avenue (APN 625-082-022), Palm Desert
Agency Negotiator: Lauri Aylaian/Ryan Stendell/City of Palm Desert
Other Party Negotiator: Family YMCA of the Desert
Property Owner: City of Palm Desert
Under Negotiation: x Price x Terms of Payment
B. Conference with Legal Counsel regarding existing litigation pursuant to
Government Code Section 54956.9(d)(1):
1) Lorraine Salas and Karina Quintanilla v. City of Palm Desert,
Riverside County Superior Court, Case No. PSC 1903800
C. Conference with Legal Counsel regarding significant exposure to litigation
pursuant to Government Code Section 54956.90d)(2):
Number of potential cases: 2
With City Council concurrence, Mayor Weber adjourned the meeting to Closed
Session of the City Council and Successor Agency at 3:01 p.m. She reconvened
the meeting at 4:03 p.m.
V. RECONVENE REGULAR MEETING - 4:00 P.M.
A. REPORT ON ACTION FROM CLOSED SESSION.
Mr. Hargreaves stated direction was given, but no reportable action was
taken.
VI. PLEDGE OF ALLEGIANCE TO THE FLAG OF
THE UNITED STATES OF AMERICA - Councilmember Kathleen Kelly
VII. INVOCATION/INSPIRATION - Councilman Sabby Jonathan
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B. CONSIDERATION OF THE APPROVAL OF A SPECIFIC PLAN,
PRECISE PLAN, TENTATIVE TRACT MAP 37639, AND DISPOSITION
AND DEVELOPMENT AGREEMENT, INCLUDING APPROVAL AS TO
FORM OF ASSOCIATED TRANSIENT OCCUPANCY AGREEMENT AND
ACQUISITION AGREEMENT FOR DSRT SURF, A RESORT
DEVELOPMENT INCLUSIVE OF A SURF LAGOON AND SURF CENTER
FACILITY (RESTAURANT, BAR, RETAIL, AND SUPPORT FACILITIES), UP
TO 350 HOTEL ROOMS, AND 88 RESIDENTIAL VILLAS ON A VACANT
17.69-ACRE SITE; CERTIFICATION OF THE ENVIRONMENTAL IMPACT
REPORT (EIR) FOR THE DSRT SURF PROJECT LOCATED ON THE
WEST SIDE OF DESERT WILLOW DRIVE; AND CONSIDERATION OF
CORRESPONDING AB 562 ECONOMIC DEVELOPMENT SUBSIDY
REPORT, WHICH DESCRIBES $36.6 MILLION IN SUBSIDIES FOR THE
PROJECT Case Nos. SP 18-0002. PP 18-0009. EA 18-0002. and
TTM 37639 (Desert Wave Ventures, LLC, Applicant).
Principal Planner Eric Ceja stated he would be presenting the planning side
of the application like the California Environmental Quality Act (CEQA) and
the Environmental Impact Report (EIR), including some planning approvals
to effectuate this development. He noted Senior Management Analyst
Wayne Olson will discuss the Disposition and Development Agreement
(DDA), the sale of the land, and some business terms. The Master Plan for
this site was approved in 1994 with the intent for Desert Willow Resort to be
an economic tool for the City, and it was envisioned with a number of hotels
and resort style development. Today there are two golf courses at the site
with the Desert Willow Clubhouse, two hotels, and 400 timeshares. The
proposal for the DRST SURF Resort (DSR) will be the first -of -its -kind,
professional -grade surfing experience in the United States. It will include a
resort style component of an upscale hotel with associated amenities, a
restaurant and entertainment. The Applicant today is Desert Wave Ventures,
LLC. He said this was a 17.69 acre site, and Phase I of the development
includes a surf center, the surf lagoon itself, improvements to support the
lagoon, the wave machine control towers, and the resort component for
potentially up to a four-story hotel with a maximum of 350 rooms. Phase II
of the development, as written into the Specific Plan, could include up to 88
residential villas. The entitlements from a planning perspective include a
Specific Plan that outlines the development standards and appropriate land
uses for the 17.69 acre site. The Precise Plan, which follows, establishes the
site design and architectural standards forwhat is being proposed in Phase I.
At this time, for the resort component, there is no architecture to be shown.
If approved, the Applicant would be conditioned to come back with
architecture plans for review by the Architectural Review Commission (ARC).
There is also a Tentative Tract Map that subdivides the parcel into five
separate parcels, and in the EIR, which reviews the project for environmental
impacts, identified appropriate measures to mitigate those impacts, and a
Statement of Overriding Consideration (SOC) for two specific items. The
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surf center itself will function as the project entry, and it will be two-story in
height at approximately 33 feet. It will include a number of uses from a
gallery, check -in, surf shop, restaurants, dining room and event space. It's
approximately 24,000 square feet in size with an expansive outdoor patio.
There is also a subterranean parking structure below the surf center. This
Center is envisioned to be opened seven days a week from 6:00 a.m. to
2:00 a.m. The surf lagoon is bifurcated with a long pier and apparatus that
houses the wave machine. The Applicant anticipates that no more than 75
surfers will be in the lagoon at anyone time, but they will be looking to
increase that number to 95 surfers during events. The Surf Lagoon is quite
different from the Surf Center, because the Surf Center houses the
restaurants and entertainment uses, which is why the Surf Center will be
open until 2:00 a.m. As proposed, the Surf Lagoon will operate on weekdays
until 10:00 p.m. and on weekends til midnight. To accommodate the early
morning and nighttime use, there is surf lighting proposed around the lagoon.
He went on to display and describe all the areas and features of the project.
As proposed in the Specific Plan and analyzed in the EIR, and as
conditioned in the Resolution, this site could host up to15 special events
throughout the year. In order to host them, the Applicant would need to
prepare and obtain approval for a Parking Management Plan that would
identify parking strategies and traffic control for event days. The Applicant
actually got in front of this issue by securing letters of support for outside
parking from both the Indian Wells Tennis Garden and Cal State University,
San Bernardino, Palm Desert Campus, where spectators for the event would
be bussed in. There is also a nightclub component for the Surf Center where
they would use amplified music indoors and potentially outdoors as well.
The Noise Study has been able to show there would be no impact to
surrounding areas. A portion of the site will develop over an existing
overflow parking lot for the Desert Willow Clubhouse where there is currently
130 stalls, and with the improvements to this area, there will be 248 stalls to
be shared between the Surf Center and Desert Willow. As already
mentioned, the Center would be open to 10:00 p.m. on weekdays, so the
Applicant came prepared to show renderings and studies, showing there will
be minimal impacts to surrounding residential areas. The Line -of -Site Study
shows that the Montecito Development is approximately 2,100 feet away
from any of the Tight sources, and it would be difficult to see any of the DSRT
SURF buildings. The light poles around the lagoon range from 40 to 80 feet
in height, stating the light orientation is shined directly into the lagoon itself.
The Applicant submitted the Light Plan to the International Dark Sky
Association, and in their review, they certified the Plan as a community
friendly facility. He displayed renderings that were provided in the draft EIR
that further show the project anticipated build -out from different perspectives
like Montecito, the Retreat, and the Westin. One of the first things staff
addressed was water usage for the site, so there was a water supply
assessment performed for this project. The assessment determined there
is enough water to support the project today as well as 20 years in the future.
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The Plan was submitted to Coachella Valley Water District and they have
accepted and approved it saying there is enough water to support the
project. However, the Applicant worked with staff, and is conditioned to
participate in the City's Turf Reduction Program, which will require one
million square feet of turf removal at Desert Willow's two golf courses. The
square foot reduction offsets the water usage at the lagoon itself, and the net
increase of water use will come from the villas, hotel, and other ancillary
buildings. As part of the EIR, the Mitigation and Monitoring Reporting
Program that is attached as an Exhibit, identifies mitigation measures to
lessen those environmental impacts. The Statement of Overriding
Consideration (SOC) shows that even with mitigation measures, it cannot
mitigate all the air quality and greenhouse gas issues with the project, at
least for air quality, because there is a non -attainment area. There are some
specific project impacts related to air quality where the project can't meet the
standards set forth by the South Coast Air Quality District. The EIR was
reviewed by the Planning Commission in October and voted to recommend
approval of that document to the City Council.
Sr. Management Analyst with Economic Development Wayne Olson stated
he would be covering the land transaction and attachments to the staff report
regarding the Development Agreement (DA). There are three parcels
involved with the project, and one is a previous Redevelopment Agency
owned parcel, which is Parcel B of 14.65 acres, and two parcels owned by
the City referred to the Desert Willow Golf Resort Overflow Lot. Two option
agreements control those properties, the first is the Purchase Option
Agreement (POA), and the fair market value of that land has been appraised
at $2,050,000. A second City POA controls the sale of the second two
parcels for $455,000 at fair market value. It should be noted the DDA that's
being reviewed this evening displaces the City's POA and becomes a
controlling document for the disposition of those two parcels. The City land
contribution is considered as part of the incentive package. There are four
agreements in City Council packet, attachments 14-15, which he will review
briefly. The first attachment is No. 14, the Disposition and Development
Agreement (DDA), and this document covers the disposition of land, the
terms, various milestones, a schedule, and requirements for both the
developer and City until close of escrow, which will be found in Exhibit 9 of
the DDA. Under Section 3.1 of the DDA, is the "Term," which is 12 months
for close of escrow. The developer has a number of requirements needing
to be met prior to close of escrow. In addition to the 12 months, there are
two six-month extensions, and a third six-month extension that is optional;
a total of 18-months of extensions is possible after the initial 12 months.
Therefore, the total between date of execution and close of escrow is 30
months, but when you add 24 months of construction, the total term of the
DDA is 54 months or about 41/2 years from execution of the DDA. If the City
Council deems approval of the DDA, staff believes the execution of the
document would occur in the next few weeks. He called attention to
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Section 3.1(b), which includes about a dozen implementing agreements that
need to occur prior to the close of escrow. Staff will work with Project
Attorney Seth Merewitz with Best Best & Krieger (BB&K) on the documents
before close of escrow, and for the Gap Analysis, the City used a third party
consultant Keyser Marston Associates (KMA). He said KMA reviewed the
development proforma and conducted a Gap Feasibility Analysis where they
used a Return on Cost Methodology. The project that was analyzed by KMA
is the Surf Center and the Surf Lagoon, but it includes 164-key rooms and
62 villas. Mr. Ceja's presentation is a representation of the Specific Plan,
which is the maximum allowed on the site. The current proposal that has
been analyzed by KMA is for a project of 164 key rooms and 62 villas. As
a result of the incentives that were proposed, the developer is required to
pay prevailing wages. The project development costs are in the table shown
on Page 5 of Attachment 19. The Hotel Development Cost is $113,596,000,
which includes the $2 million in land, and the Surf Destination Cost is
$76,612,000, therefore, total development cost is about $190 million. The
source being proposed this evening to bridge the gap for the development
of the project is in the form of $20 million in bond funds for acquisition of
project improvements, and a Transient Occupancy Tax Rebate of
$16.1 million, along with the City land contribution of $445,000; total sources
match the total feasibility gap of $36.6 million. He said Attachment 15 in the
DDA refers to the Acquisition Agreement, and Exhibit A was updated and
distributed to the City Council a few days ago by the City Clerk's Office,
referring to the $20 million of the POA. If you refer to Exhibit A, the
Acquisition Agreement, there is a list of public improvements and their costs.
The limit that the City will reimburse for the public improvements would be
$20 million regardless of the cost, so if the developer's costs are $21 million,
the City will only reimburse $20 million. The bond proceeds are a one-time
capital fund with no impact to the General Fund. Attachment 16 is the
Transient Occupancy Tax (TOT) Agreement, which is a rebate agreement
that is performance based. The proposed structure is $16.1 million over 20
years or whichever occurs sooner. He said the intent is to rebate 50% of the
hotel keys and 75% of the villa revenue, adding this structure is proposed
primarily because it accelerates the City's receipt of 100% of the TOT. Staff
estimates it could accelerate as fast as 15 years rather than 20. Attachment
17, the City's Cost Reimbursement Agreement is for the developer to provide
$50,000 of City costs related to consultants on the project. If the project is
approved, the cost will be tabulated and begin to incur after this evening's
meeting. He called attention to the typo in the staff report that indicates a 30-
year projection, but it should be 20 years. He wants to be clear that he is
talking about 20-year projections of revenues as analyzed by KMA. The
TOT is $41.7 million, along with sales tax and property tax, for a total
revenue of $45.3 million of revenues over the next 20 years. Of course you
have to deduct the $16.1 million from the TOT, therefore, the total potential
revenue to the City over 20 years is $29.2 million for this project. The project
benefit is that this will be a year-round destination and the facility is
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contemplated to operate both in the summer and in season. He said other
project benefits are jobs, as the developer estimates 350 full-time, part-time,
temporary construction jobs, and associated City fees as a result of this
project. Enhanced revenues will come from entertainment and leisure
activities for both the City of Palm Desert and the regional area, as well as
increased health benefits for those interested in using the facility.
Mr. Ceja said there is a lot to consider in this project with all the attachments
and agreements. In summary, for City Council consideration this evening
from the Planning Department is a Resolution for approval of the Specific
Plan, Entitlement Package for the Architecture and Site Design Plan, and
Tentative Tract Map. Also, a separate Resolution to certify the
Environmental Impact Report (EIR), condition for the Turf Reduction
Program, Mitigation Monitoring Program (MMP), and Statement of Overriding
Conditions (SOC). Like any project, this went before the Architectural
Review Commission in April, and they were very complimentary to the
architectural quality shown in the drawings and recommended approval. In
October, the Planning Commission reviewed the project and found this was
an appropriate land use for the Desert Willow Golf Resort and recommended
the City Council approve this project. Some of the concerns brought up at
the Planning Commission hearings were specific to lighting of the facility.
Staff and the Applicant have done an adequate job to show the project
impacts should be minimal beyond the perimeter of the project itself and
should not impact beyond the boundaries of this project or Desert Willow.
Additionally, there are also Minute Motions for approval of the Disposition
and Development Agreement (DDA) and other agreements that are subject
to that document. Lastly, in staffs review of the project, they found this
project advances many of Palm Desert's goals and policy related to the
Envision Palm Desert Strategic Plan and it expands tourism, which will help
shoulder the off season for hotel occupancy. He said this is a resort and
entertainment land use designation for Desert Willow Golf Resort, and the
resort component with the recreational opportunity of a surf lagoon, definitely
fits into the goals and policies of the General Plan. There is also an
Economic Development Strategic Plan that is further advanced by this
project proposal. Documents like the Specific Plan and EIR analyzed the
impacts of this project and adequately addressed some of the concerns
during the public comment period. He pointed out this was a public hearing
item and staff has received public comments both in support and others who
had concerns with the project. He noted the Applicant also had their own
presentation.
Councilman Jonathan stated Council spent a lot of time gaining an
understanding of this project by having a couple of study sessions, meeting
with the developer, and meeting with citizens. He asked for clarification on
the parking arrangement as staff indicated there are currently 130 spaces at
the Desert Willow overflow lot, and after the project is completed, there will
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be 248 stalls to be shared with the proposed project. He asked if the project
had other parking spaces exclusive of that shared 248 spaces.
Mr. Ceja answered yes, stating the public parking, the 248 shared spaces,
is a combination of some new surface spaces around the Surf Center, as
well as about 150 that are subterranean. He said those are shared spaces
open to the public, and as the hotel develops it will have its own parking, and
as the residential villas develop they will have their own parking as well.
Councilman Jonathan said his next question has to do with the traffic
circulation, ingress and egress. He said Council has been told before there
is a single point of access and that's at Desert Willow Drive. He knows there
will be discussions about future projects and future developments and what
that will do to Desert Willow Drive, but as far as this project, he questioned
if staff concluded that Desert Willow Drive can accommodate the anticipated
volume of traffic.
Mr. Ceja replied there was a Traffic Impact Analysis prepared that analyzed
peak traffic demand for the project itself inclusive of a more intensive
development, because the Specific Plan was set up for up to 350 hotel
rooms and it analyzed that type of project. The Traffic Impact Analysis shows
that Desert Willow Drive can accommodate this project, as well as future
development of the vacant parcels at Desert Willow.
Councilmember Kelly understands that part of the proposal includes a new
signal at Cook Street and Market Place, just north of the shopping center so
that there would be two points of entry converging onto Desert Willow Drive.
Mr. Ceja agreed, stating one of the conditions is that a new signal will be
installed on Market Place and Cook Street that will allow for northbound
traffic access onto Market Place, and also a better exiting place from Market
Place onto Cook Street. He said both entries come back into Desert Willow
Drive and take people to the Desert Willow Clubhouse and Surf Center. On
behalf of the Applicant, a two -minute video of the Wave Garden located in
Spain, which is a smaller scale project using similar technology, was shown
to show the City Council and the public what the intent is with this project.
MR. DOUG SHERES, Developer with Desert Wave Ventures, LLC,
Applicant, stated he knows this is a large and complicated project, so he
wanted to thank staff because there has been a lot of work done on both the
City's end and their side as well. He thanked the community for the amount
of support received from community members, organizations, YMCA, Desert
Sands Unified School District (DSUSD), Chamber of Commerce, local
businesses, and adjacent neighbors to the project, which has really been
incredible. The core groups of people that started this project are all surfers
and passionate about surfing. As surfers, we are passionate about the
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ocean and raising families in the water, and we've seen the benefits of it,
because it's an outdoor sport, it's healthy, and brings community together.
Surfers travel the world looking for opportunities to surf good waves and
have these experiences with family and friends. Secondly, the advent of
technology, like so many things, has affected surfing. For the first time now
there is technology that can create ocean -like, high -quality waves outside the
ocean. He said waves can be created for advance and beginners, stating it's
truly a multi -generational activity that has opportunity for everybody to
participate, and in combining those two, they started looking for a place to
build a facility that had the right aesthetic and feel. He always tells people
this is not a water park nor does he want to build a hole in the ground next
to a freeway, but sought to build something that felt natural and paid homage
to the ocean, and be able to provide a premium experience. He said him
and John Luff, 21/2 years ago drove down Desert Willow Drive and looked at
the native vegetation, which is fantastic, including the lakes, greens, and the
mountain vistas, and they literally went straight to City Hall to meet with the
City Manager. And now here they are 21/2 years later before the City Council
presenting their project. He introduced his partners, John Luff, Dave Likins,
Don Rady, and Marco Gonzalez. The people who have been working on this
project and have been invaluable are Michelle Rivas from Douglas Wilson
Companies, Nicole Criste and Kelly Clark from Terra Nova, James Bazua
from The Altum Group, William Duncanson from BAR Architects,
John Vuksic from Prest Vuksic Architects, Ron Gregory and Jarvis Payne
with RGA Landscape Architects, and Marco Gonzalez from Coast Law Group
who is both a partner and land use attorney.
MR. MARCO GONZALEZ stated he was with Coast Law Group, a boutique
law firm in Encinitas, California, representing environmental interests and
responsible developers around California. The team comes to this project
with a unique perspective, as they are really a surfing -based law firm,
creating the first surfing destination resort. He and Mr. Sheres have known
each other for about 20 years and the opportunity to work on this project was
a culmination of a lot of experienced people, including his entire firm. Having
heard the great presentation of staff, he will focus on things staff has not
covered. He said the team spent a lot of time with City Staff on many aspects
of this project. In particular, this past month, they negotiated the large packet
of agreements that are before the City Council. He thanked City staff,
specifically, Director of Economic Development Martin Alvarez, Senior
Development Analyst Wayne Olson, Principal Planner Eric Ceja, and City
Manager Lauri Aylaian, adding he was proud of what has been accomplished
thus far and looking forward to the next phase. He said Mr. Sheres talked
about the company, so he will talk about DSRT SURF and what some of the
architectural objectives are going forward, including direct and indirect
community benefits and concerns. The notion of being the first four -season
destination surf resort in North America is a big deal as it would put Palm
Desert at the nexus between resort living and beach culture. He said surfing
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is unique, because there is no other sport, hobby, or lifestyle where there is
clothing, surf equipment, music, and art; the entire surf industry is a
multimillion dollar fashion industry. Under all that, there is also an
environmental component to it, because as a surfer you learn that if the earth
isn't protected, you lose your resource, the fun, and the lifestyle. In looking
at the technology that has been made available, with our partner Wave
Garden out in Spain who started this process with that one -acre surf lagoon,
they knew conceptually and engineering wise they could build something
bigger. Up until recently, in the last month, they have seen two lagoons built.
In the packet you can see a picture of the one in Bristol, England, which was
the first lagoon that showed what the waves would look like on 5-acres, and
then there is URBN Surf in Melbourne, Australia that has recently made
headlines with some of their PR videos. The waves have been phenomenal
and surfers, kids, and grandparents are saying this is a new paradigm. He
added that Palm Desert is going to be the first in North America and really
the first in the world to have a surf pool matched up with the destination
resort. There are a couple of other technologies out there, but Wave Garden
and the Cove, have the best technology. With these large pools now open,
they have learned this is the most commercially viable and most successful
technology available on the market today. This creates a new resort model
where they can start to look at synergies between traditional resorts and the
surfing aesthetic. He said the team looked over the entire country for the
right place to start this venture, and there was none better than the
Coachella Valley, and in the Coachella Valley there was nowhere better than
Palm Desert, and within Palm Desert, there was nowhere better than Desert
Willow. The stars were aligning too perfectly, they had to pinch themselves,
because here they have an amazing facility that was zoned for resort
development and it was the right size in the right location, with the right
climate. It's incredibility important that this location also provide an
opportunity to meet water sustainability goals. In other places they looked,
they couldn't make the same claims with their Turf for Surf Program. He
wanted to clarify that Planning Area 1 is the Surf Center and Surf Lagoon,
because there was a confusing slide in the City's presentation about Phase
I development included the hotel. He intends to build them at the same time,
but in terms of the approvals they are seeking today, the Specific Plan
covers the entire project, but the Precise Plan and Phase 1 Planning Area
is the Surf Center and Surf Lagoon. Prior to speaking to the City, they spent
a lot of time architecturally on how to make this project feel like the beach
and pay homage to the desert aesthetics. They wanted more Baja than Bali,
because they are seeing an emergence of food culture and sustainability in
the Valle de Guadalupe. The architecture and products used there provided
an amazing palette to start their conceptualization as they want the project
to be contemporary and clean with the availability of sustainable materials.
Lastly, there is the goal of creating the surf experience. Having traveled the
world and seeing how they do it in Hawaii, Tahiti, and South America, they
want to make sure that when folks come to Palm Desert, they know what
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barefoot luxury really means. People won't feel like they have to be walking
around with a collard shirt or shoes, because people will be in flip flops and
walking around barefoot at the beach, but in Palm Desert. As seen in the
renderings, they have put a lot of effort in architecture and matching up with
what's already in the desert, Desert Willow, and the adjacent Westin, in order
to fit seamlessly. With respect to community benefits, they are looking
beyond the TOT and tax revenues, because they believe this project will be
a boom for tourism in Palm Desert, the restaurants, and shopping. Frankly,
there are things they can't even anticipate, for instance, today in the parking
lot they saw the Coachella Valley Surf Club, which they didn't start. There
are folks already looking at surfing in the desert and saying they can do a lot
with this, and he's already seen a great response from local residents,
schools and the Chamber of Commerce, all who are very excited about the
project. This project will provide the perfect venue for everyone to get wet
and have a great time. He said DSRT SURF will be a year-round destination
and hopefully it will boost hotel occupancy during the shoulder season. He
felt Mr. Olson did a great job of going through the financials, so he will go on
to the community concerns. The team recognized they had to address the
water concerns, so they went to Coachella Valley Water District (CVWD) to
understand the Aquifer. They had to arrive at a place where he could face
the families and the environmental groups he's represented for more than 20
years, and be able to say he felt good about the project, because they came
up with a plan to mitigate the water use in the lagoon. The analysis
conducted indicated the average user of the surf lagoon per session will
require 162 gallons of water compared to approximately 7,000 gallons per
round of golf at Desert Willow. The total lagoon usage will be 73 acre feet
per year, which is 1/27th of water consumed by Desert Willow Golf in a year.
Their plan is to mitigate 100% of the surf lagoon use through a three-tier
program. The first is the Turf for Surf Program, and the Aquifer Recharge
Fee from CVWD that will more than mitigate the total use combined with the
Turf for Surf. Additionally, they will have a long-term Endowment Funding.
Every person that comes to surf will pay a surcharge of $1 to $3, which will
go into a non -waste fund that will allow to create grants throughout Palm
Desert and Valley, so that others who might convert their turf or come up
with other conservation opportunities, will have a source of funding that goes
beyond CVWD or the Metropolitan Water District. The City for a long time
has looked for opportunities to reduce the water use at Desert Willow
through a nonessential turf reduction, but they didn't have a way to pay for
it, which is what they will be doing. They will pay for it by taking more than
a million square feet of existing turf outside of the play areas and replacing
it with desert sensitive drought tolerant landscape. They will actually save
106.8 acre feet, which is 40% more than the evaporative and maintenance
loss that will experience from the surf lagoon. When they do the
maintenance on the lagoon and have to empty the pool, they will discharge
that water onto the on -site lakes where they can be used for golf irrigation or
for percolation into the Aquifer, or into the back flow. He said they heard
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concerns of noise, so they did a noise study and as the EIR found, there are
no significant impacts expected outside the boundaries of the property. The
way that the site will be built up and the pool dropped down, it's going to be
naturally bermed and buffered by some of the structures. The ultimate
confidence they have on their sound attenuation is shown on the fact that
they will locate their luxury villas and hotel immediately adjacent to the pool.
They are confident that the Montecito, Retreat, and the Westin
developments will be well -taken care of with their site design. He believes
staff covered the parking, and as noted, they will be contributing to a new
signal light at Market Place Drive and Cook Street, adding they were happy
the Traffic Study found no additional significant impact at the Desert Willow
Drive intersection. Now the dark sky is a big issue, so at the very onset they
looked for a lighting partner that was at the forefront and world class,
providing an opportunity to do something unique, and they are willing to go
the extra mile to do so. He displayed photographs from Musco Sports
Lighting, their lighting partner, showing the difference between what they are
proposing and what is being used today. They are proposing a slimmer
profile with poles ranging from 80 feet in height, and others ranging from 40
to 70 feet. These light enclosures are selected to minimize impacts to
neighbors and onsite hotels. He said it was important to project the long-
range view of the mountains, horizon, and blue skies. They are excited to
move forward with this project and hope the City Council moves for approval
this evening. He believes they will be great partners to the community,
creating direct and indirect benefits. Additionally, they have done the work
to be sensitive to neighbors and create a sustainability story that all can be
proud of here in the Desert.
Mayor Weber declared the public hearing open and invited public testimony
FAVORING or OPPOSING this project.
MR. KERRY BERMAN, Narcissus Drive, Palm Desert, admires this project
as he thinks it's incredible, and he's conflicted because Desert Willow has
been an exemplary example of a golf course for setting the tone for
conservation of water. He said the developer has stated there are 100 acre
feet of water per year that was used by the golf course, and the lagoon will
only use 73.04 acres, thus saving water. A one -acre foot is 326,000 gallons
of water, so with that said, the total amount of water is going to be
somewhere between 52 million plus gallons. Also, is that 73 acres going to
be in addition, because it's not replacing the golf course water usage. He
said there has been overdrafting of the Aquifer by 15% to 30% per year, and
there is a State of Emergency regarding the Salton Sea, which is on the brink
of a health, environmental, and economic disaster. There will be no need for
future economic development if no one can breathe the air containing fine
particular matter causing health problems. Surfing in the current
environment that does not meet acceptable air quality standards is a public
and health concern for sports enthusiasts and children. He loves the fact
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VIII. AWARDS AND PRESENTATIONS
A. PRESENTATION TO RECOGNIZE BRIAN HOLCOMBE FOR HIS SERVICE
TO THE CITY OF PALM DESERT AND ITS FINANCE COMMITTEE,
2016 - 2019.
On behalf of the City Council, Mayor Weber presented an engraved crystal
clock to Mr. Holcombe recognizing his three years of service to the City and
its Finance Committee.
Mr. Holcombe graciously accepted the recognition and said it was an honor
to have served in this capacity, adding that from his perspective the City is
in excellent fiscal condition and its citizens can be rest assured.
IX. ORAL COMMUNICATIONS - B
MR. PATRICK KLEIN, Chair of the Golf Cart Parade Committee, thanked the City
Council for its continued sponsorship, which allowed them to hold their 55th Annual
Golf Cart Parade on Sunday, October 27. He said the committee worked together
under the feedback received from the Councilmembers, the public, and Chamber
members. They gathered all the comments and put them into action, which resulted
in a vibrancy that the parade hadn't seen in a while. The parade included more
than 100 entries, a car show procession, beer garden, and great partners, such as
Bright Rentals, who helped elevate the elegance and the aesthetics of the event.
The committee was also hard at work in discussing the future of the parade and
Ms. Tammy Martin and Ms. Mel Robertson will be helping in that effort going
forward.
MS. TAMMY MARTIN stated the Committee conducted a survey and the thought
is to go forward with a night parade in the future. The Committee believes there
needs to be a change to the parade, and she and Ms. Mel Robertson believe they
can make it happen by working with City staff. They are also looking at making this
a week-long event by incorporating the new San Pablo, but for next year, they will
start with looking at a three-day event. She said they want to incorporate the
seniors into the event and possibly doing a barbeque contest, and the list goes on.
Their goal is to incorporate the new San Pablo and the Civic Center park. They will
continue with the parade on El Paseo until the construction on San Pablo is
completed, and eventually turning the parade onto San Pablo and leading into the
park.
MR. WALLY MELENDEZ stated his objective this evening, as he makes his rounds
at the cities of Rancho Mirage and Palm Desert, including the COD trustees
meeting, is for public officials to use their influence to get COD to offer four-year
degrees. He noted he has taken two courses (Business Law and Financial
Accounting) this past semester at COD, and he didn't care whether Cal State
offered a bachelor program, because his focus was on COD. He said COD has a
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that they are volunteering to mitigate and address water conservation, but
water can't be replaced. He's concerned out the Aquifer, environment,
pollution, and the State of Emergency that Imperial County has recently sent
to the Governor regarding the Salton Sea, combined with using more of our
water is going to be challenging.
MR. DAVID MIDDLETON registered his opposition to DSRT SURF for the
misuse and waste of water, environmental consequences, and adverse
effects to the community with no clear benefits. He believes the sacrifices
are to benefit visitors and out-of-town businesses, which he felt was a
disservice to the residents of Palm Desert and the Coachella Valley. He
added he didn't think the average Palm Desert household will be able to
afford the likely admission price for the DSRT SURF Resort. In his review
of other surf parks, businesses in close proximity to the parks have
benefitted, but others further away not so much. Water used to irrigate a golf
course should be non -potable and hopes Desert Willow is not using drinking
water to keep the lawn green, but water for the lagoon will have to be clean
water. It doesn't seem that using potable water for one resource means that
you save using non -potable water for another. Therefore, water savings will
evaporate when the hotels open. Other cities with underused golf courses
are working with focal land trusts to convert them into open spaces and
reserves, stating these uses truly conserve water and sustain the
environment. Any increase lighting, no matter where it's pointed, will have
an adverse effect on human health and endanger desert wildlife. The hotels
and restaurants will be producing a lot of trash, including non -recyclable and
non -degrading plastic, and increased traffic will create vehicle emissions.
Other surf parks have 8,000 visitors a day, which are a lot of vehicles
spewing a lot of emissions. He believed everyone should be working to
improve the environment and address climate change at the local level. He
urged the City Council to vote for the community and environment and reject
this project.
MR. JOHN VUKSIC, Prest-Vuksic Architects, stated he had the privilege of
spending time with the owner and the design team for 1'/Z years now
discussing and critiquing the design work, which has been a fun process. He
said the design team for this project is extremely talented and the owner has
a keen sense of design. He added the owner is determined to create a
project that has the right feel, and he has witnessed nothing but
professionalism at every turn from the development team. He believes this
is an outstanding design and a real opportunity for the City of Palm Desert,
stating he hopes the City Council approves the project.
MR. DAVID HILTS, Salt Cedar Street, Palm Desert, noted he was a surfer
and is involved in the surfing industry; he owns a small clothing company and
sells surf ware. Most recently, he started a nonprofit surf club called the
Coachella Valley Surf Club, because he saw an opportunity to get young
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people involved in surfing. He has surfed for more than 50 years, stating it's
the kind of sport you get excited about that it becomes a lifestyle, which also
happens to be a healthy one. He said there is not a lot to do in the Valley for
young people, especially in the summer, and this is a great opportunity to get
them exposed to surfing and hopefully it will carry into their lives. He shared
that at the last meeting he met a young lady by the name of Krysten Gonda,
and she got "stoked" about surfing. She is a teacher at Desert Mirage High
School in Thermal, California, and she started a surf club. They have
partnered to get equipment for the club, and the lagoon isn't even here yet,
but they are getting positive results. He strongly recommended approval of
the project and thought this was totally forward thinking.
MR. DAVID LUDWIG, Apache Road, Indian Wells, noted he was the pastor
of the Presbyterian Church on Highway 74. At his best, he doesn't speak
selfishly, but in this case, he believes this technology and amenity will
provide a great deal of joy for himself and his family. The idea of friends and
neighbors being pulled together would be great. In the video, there was a
mother that spoke about the family interaction that takes place in the water,
which he experienced growing up and he wishes that for his kids. Selflessly
speaking, he thinks about the countless kids, particularly at the two high
schools that might not participate in traditional or organized sports; this was
an opportunity for them to participate in a life-long sport. He urged Council
to approve the project, because he believes it will bring a lot to the
community.
MR. GORDON JOHANSEN, Retreat Circle, Palm Desert, stated he lives in
a 112-unit project that is 1 % years old, and it's on Portola Avenue. He is also
a member of the homeowners association board, but he's here as a resident.
He is a 14-year resident of the Coachella Valley and is retired. He has met
with the DRST SURF principals, and they have addressed the concerns,
which were both lighting and noise. The project contributes strong to the
Palm Desert foundation of TOT and further supports the City's fathers and
City staff commitment to activities combined with good financial stewardship.
In his opinion, Palm Desert is the best run City in the Coachella Valley, and
it's one of the major reasons he relocated here 1 % years ago. He strongly
endorses this $150 million project in Palm Desert. He went on to say his
HOA conducted a survey and 90% of the residents that responded approved
of the project.
MR. DENNIS BREALEY, Covington Drive, Palm Desert, offered he was
President of the Montecito Homeowners Association. He has been in
contact with the principals of Desert Wave Ventures since February of this
year. He appreciates City staff putting him in contact with them, because it's
made the entire process go so much smoother. In his initial meeting with the
developer he voiced his concerns of noise, water usage, traffic, and lighting.
He was in regular contact with the principals, and at all times they have been
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willing to listen, and if appropriate, offered to meet directly with the
community. He admitted being baffled by CVWD, who recently paid him
$1,000 for converting to drought tolerant landscaping, yet approving a 50
million gallons per year water usage project. However, given CVWD has
approved the project, they are obviously confident they can supply water. He
has no doubt the Surf for Turf Program is a big part of it. As a very frequent
Desert Willow golf user, he will be watching that issue closely. He pointed
out a million square feet of turf is equivalent to 12'/2 national football
stadiums of grass. With regard to the noise concern, the developer has
assured him the wave making equipment is the quietest in the industry, and
any noise from the nightclub and patio areas, they advise they will be able
to address with state-of-the-art speakers and directional applications. He is
confident traffic studies have been done, because it is a concern as there is
only one ingress/egress onto Cook Street, and they already have issues
getting out of the community with existing traffic flows. He called on the City
to continue to monitor this as the additional developments go into the Desert
Willow area. Lighting became a serious concern when he attended the
Planning Commission meeting when he learned of the 80-foot tall poles. He
understood they will be using state-of-the-art lighting with a downward focus
and it was approved by the Dark Sky community. Based on his meeting with
the developer and hearing about their solutions to his concerns, he was
pleased to offer his full support to the project, stating the design and style will
make it a beautiful addition to the Desert Willow Resort properties complex
and the City of Palm Desert.
MR. IAN OSUR, Covington Drive, Palm Desert, stated he came late to this
project with some concerns. The first concern is the lighting projection,
because one views the site survey and takes into consideration the Turf for
Surf, but he's not convinced the project will be fully shield. He believed the
site survey was completed before most of the vegetation has begun to be
removed and it's a great concern to residents of Montecito. Secondly, the
original plans called for a 164-room hotel and somehow it's been expanded
to 350, and the villas were supposed to be 66 and now they are 88, so they
are greatly concerned about the increase of traffic this will cause. He asked
that staff continue to monitor the traffic in the area. Additionally, he is
concerned the nightclub will be open to 2:00 a.m. and the restaurants
opened until midnight, which he didn't find compatible with the lifestyle here.
He retired here from Miami, Florida to be near the grandchildren, so he felt
Council needed to reconsider having these amenities open til late at night,
because it will impact so many peoples way of living.
MS. CAMILA RODRIGUEZ, Coachella, California, stated she was a Desert
Mirage High School student and President of the East Valley Board Riders.
They are a very proud surf club based in Thermal, and they are here this
evening in support of the project. When they were introduced to surfing it no
longer became an activity they knew about and never experienced, it has
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become a way of life. Honestly speaking, it was a struggle the first few
thousand times, but when she finally got it, she was in disbelief. The Club
hopes that DSRT SURF can be a place that exposes the community to the
wonders of surfing.
MR. OSCAR SALAZAR, Thermal, California, a member of the East Valley
Board Riders, believes the surf project will be a benefit to the Coachella
Valley. Initially, the Club was low in funds, so fundraising was a priority in
order to find the means for transportation to get to the beach. His first trip
was life changing and he learned that surfing is not only an activity, but a fun
experience. He said surfing can be expanded across the Valley to create a
new culture, perhaps even adding it as a new sport or making it part of the
school curriculum.
MR. DAVID PAUL stated he represented Save Our Mojave, which is a
nonprofit organization that raises public awareness about environmental
threats to California deserts and desert communities. The organization
doesn't oppose surfing or economic development, but they do oppose
recreating the ocean in the middle of the desert. They oppose building a
giant concrete hole that will be filled with water borrowed from the Colorado
River. He feels the EIR failed to address the law that President Trump
signed earlier this year, which is the Colorado River Drought Contingency
Plan. They have reclamations to begin limiting the allocations of water to the
states under the Water Pack, including California. He said those allocations
will be limited any time the water levels in both Lake Powell and Lake Mead
drops below a predetermined mark. This community relies heavily on
source substitution. Proponents have pointed out that since the 1980's some
of the water tables have been rising, but that's a sore substitution. Because
the EIR failed to address the Colorado River Drought Contingency Plan, it
fails under CEQA standards. The EIR identified a significant unavoidable
impact, and those include increased greenhouse emissions and a decrease
in air quality. It's known the Coachella Valley is already in violation of the
Ozone levels and this project will only add to it. The option proposed by the
Planning Commission is to adopt a Statement of Overriding Consideration,
and the benefit to the community outweigh any harm. However, he doesn't
believe it presents all sides of the coin to the community. As adults in the
room, he believed we have an obligation to teach our children to surf and not
fear the ocean, which is literally two hours away. Using 53 million gallons for
the project is not a good idea, and Save Our Mojave thinks the Turf for Surf
in not a good analysis.
Councilmember Harnik read out loud a letter from President and CEO of the
Palm Springs Convention and Visitors Bureau (CVB) Scott White in support
of the project, which states, "Our 2016 Development Plan and recent
Destination Nexus Study supports the new attraction. An attraction of this
kind is important for the long-term health of our tourism economy. If tourism
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did not exist to the level it does today, each household would have to
contribute an additional $3, 700 in taxes for local government to deliver the
current level of services. Our research indicates this project is an important
attraction. Visitors are looking for outdoor adventure and water is a key
component. A unique water experience is a critical component that we are
missing in the Coachella Valley. We understand you have many factors to
consider, but from a tourism perspective, this attraction will elevate our
destination and support our economy. It is a wonderful opportunity for the
City of Palm Desert and hope you can work out all the details." She said the
Development Plan and Destination Nexus Study can be found on their
website at
MR. ADAM SMITH, Regency Palms HOA President, stated everyone in his
community are in support of the project and they are also excited. He shared
he has a four -year -old daughter who is extremely active, who loves water
sports, and they can only get to the ocean once a month, adding they would
go daily to DSRT SURF if they are able to afford it. He gave high marks to
the Applicant and City staff on their presentation, stating that as a senior
mechanical engineer he has a great understanding of most of the technology
being used, and in his opinion, the developers are doing an amazing job.
The big concerns they had were lighting and use of water. The water
reduction techniques being proposed are impressive. He understands the
reasons for going higher with LED lighting and pointing downward with the
higher technology. He said their community is 100% in favor of the project,
and as a father and homeowner, he is a big proponent.
MS. ANGELINA (Last name spelling ?), Mecca, California, a student at
Desert Mirage High School in Thermal and a member of East Valley Board
Riders, stated she fully supports this project, because it would be beneficial
to their club. They are currently at 40 members, and they have a waiting list.
She said driving for 2'/2 hours with only three vans available once a month
is difficult, because they have to find drivers to go to New Port or Huntington
Beach. Having a location nearby to go surfing would be very helpful to
students that want to experience it.
With no further testimony being offered, Mayor Weber declared the public hearing
closed.
Councilman Jonathan sent a shout -out to the students of Desert Mirage High
School, thanking them for making the drive out to Palm Desert to provide
their input. He said the City opens its arms to them and they are always
welcomed here. With regard to this project, he said the public support for this
project is not lost to him. Clearly this is a unique amenity that will appeal to
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visitors and residents of the Coachella Valley, all the way to Mecca. He
recognizes this is an opportunity not just in this area or around the country,
but in the world. This project is also consistent with the City's vision for Palm
Desert, and as stated by the CVB President, adding to healthy activities and
being outdoors, is part of its vision for the Coachella Valley. The economic
benefits are clear, which he felt have been understated this evening.
Certainly there will be TOT revenue, which is important, but it should also be
important to the residents. We've heard this evening how the City is so well
managed, but parks and streets are not free, and all the things that are
provided to Palm Desert residents come from the revenue the City is able to
collect. Having a sustained source of revenue is meaningful, not just from
a dollar amount, but from a quality of life standpoint. He said this type of
resort can serve as a trigger for other developments, because it will attract
other hotels, restaurants, and other businesses, including other residents.
The concerns raised by residents that the developer addressed are the same
ones he had when he initially looked at the project. He is impressed with the
mitigation for each of the concerns that the developer was able to put in
place. What is sometimes lost when you look at Desert Willow and those
empty pads or other bare land, is that they will not remain vacant. Therefore,
when you look around and see empty pads, it's not a question of whether or
not those pads will be developed, but how they will be developed. In his
mind, he weighs the proposed development against other potential
developments, and this one comes out a positive. He sees this project as
transformative, and he rarely says this, but he wished to express his
appreciation and gratefulness to the developer for choosing Palm Desert to
undertake this project as they have been terrific partners.
Councilmember Kelly stated Palm Desert has long been a leader in
environmental sensitivity that when Desert Willow was first constructed, the
universal uses of grey water to sustain the golf course was sufficiently
innovative that the golf course appeared on the cover of the Smithsonian
Magazine. It represented the City's commitment to avail itself of the best
technology to balance essential development with environmental sensitivity.
This project comes with so much thoughtfulness in the plan for water
utilization, mitigation of light and noise factors that it truly represents a bold
next chapter in Palm Desert's respect for environmental concerns.
Therefore, she wholeheartedly embraces the project, because it represents
a perfect example of Palm Desert patiently waiting for the right project, and
this one is unquestionably right for the location. She said this project brings
the best technology and architecture she's seen, including the best
communal benefits to accompany the very positive economic impact. She
thanked the students of Desert Mirage for being participators in government,
and City staff and the Applicants for working so diligently on something that
is completely ready to be approved.
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Mayor Pro Tem Nestande concurred with her colleagues comments. In
serving on the Chamber of Commerce committees and having family and
friends that are restaurant or business owners, the summer months are
tough to get through financially. She knows people that actually close shop
during the summer, because it's more expensive to stay open. Therefore,
from everything she has reviewed and seen, this is an economic game
changer as mentioned by Scott White from the Convention and Visitors
Bureau. Also, this is a great benefit for the youth, stating she's happy to see
students here from Desert Mirage, because that will include all the other
schools around the Valley who are yearning for something like this. She
thanked everyone involved for all their hard work.
Councilmember Harnik agreed with Scott White's comment that this project
is wonderful for tourism. She asked Mr. Sheres to explain how he came
about finding Desert Willow.
MR. SHERES responded they had been looking for a site for about a year
and had visited numerous sites. In fact, they were actually under contract on
several properties in southern California. They were interested in finding
something in the desert, because of the weather and the destination appeal,
but in order to make the project successful, they wanted to provide a resort
component to it. They looked at different sites here locally, and in one
particular day they looked at a site down the street on the other side of
Interstate 10, but they didn't like it, so as they were driving back they drove
down Desert Willow Drive and thought the place was unbelievable. He said
John Luff was familiar with the project that was previously proposed, and he
didn't know what happened to it, so they drove to City Hall and spoke with
City Manager Lauri Aylaian who explained why the previous project didn't
happen.
Councilmember Harnik recalled meeting with Mr. Sheres and Mr. Luff who
looked at the different pads at Desert Willow, and part of the reason they
chose the one they did, is because it provided more opportunity for noise and
lighting mitigation by not being next to Montecito. It was discovered with the
previous project that it would be an issue, so they picked the pad that would
be better for the project and the surrounding neighbors. As already
mentioned by Councilman Jonathan, those pads are to be used for economic
development, so the question was whether it was going to be high -density
hotel rooms or something like what is being proposed today. Earlier today
on the agenda, everyone heard that public safety costs 40% more than it did
a few years ago, so the City needs to generate funds to cover those
expenses. She asked staff to elaborate on what Mr. Ian Osur brought up
about the study being done before the vegetation was taken down.
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Mr. Ceja explained that Mr. Osur's comment was related to the Light Study
being done prior to the removal of the vegetation.
Councilmember Kelly thought he meant the the vegetation was changed
prior to the Study with the red lines.
Mr. Hargreaves offered that Mr. Usur thought the turf reduction would
somehow remove existing landscaping, but that's not the case.
Mr. Ceja pointed out that more layering of landscape is coming in with this
project along its perimeter.
Councilmember Harnik understood that the water discharged from the surf
lagoon is to be returned to dry wells for infiltration and recycled to the lakes
for golf course irrigation, stating the developers found ways to mitigate and
be prudent with the use of water. She offered there are a number of other
wave parks planned and some are in the works, and "first to market" is an
advantage, even though they will not be of the same caliber as DRST SURF.
However, she's concerned about what the City's wave park will be called,
because she would hate for Palm Desert's to be confused with others. She
asked how this can be avoided, adding she would like to see the name "Palm
Desert," associated with DRST SURF when it's googled.
Mr. Olson said it was a great question and directed her to Section 1.3 of the
DDA where there is a naming rights agreement as one of the implementing
agreements to be negotiated before the close of escrow. Further responding,
he said it's one of the agreements the City Manager and City Attorney will
have an opportunity to review and approve.
Councilmember Harnik said she heard a caveat and she wants to hear a yes
that Council will have an opportunity to have a satisfactory name on DSRT
SURF before close of escrow.
Mr. Olson replied that it's one of the agreements that hasn't been discussed,
so if the City Manager and City Attorney deemed they wanted to bring it back
to the City Council, it's certainly an option.
Mr. Hargreaves said he heard clear direction from the Council.
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Councilman Jonathan offered that naming a project is very important and
very sophisticated, so he's not sure that having the name Palm Desert
advances the City's cause. He totally endorses City staff looking at it, but he
would expand that Palm Desert is featured on the website or marketing
materials so that people will know where it's located. He suspects the
developer will want people to know where to find it. While he endorsed
looking at the issue, he didn't want to give specific direction as to what the
name should be.
Councilmember Harnik agreed, but she's asking that it be explored,
because the City has spent a significant amount of money in marketing and
focus groups, and she's learned a lot in those efforts. She went on to say
she didn't want to lose an opportunity without further exploration.
Mayor Weber asked the Applicant if he wished to address any of the
questions raised.
MR. GONZALEZ explained that naming was a big issue, even just coming
up with "DSRT SURF," because they had put so much thought into the vibe
and architecture. Within the team they did a marketing exercise, because
everyone on the development team has worked in the surfing industry in
various capacities from clothing, nonprofits, events, and other facilities.
There is a facility in Melbourne, Australia called URBN Surf, so they started
looking at the desert and its location. They understand this project is not in
Palm Springs, and the reason they didn't consider "Palm Desert Surf," was
because they didn't want to give "palm," that much credence. He said there
are so many opportunities to partner with the community, and yes it was
Doug and John who drove down Desert Willow Drive, and that was talked
about as well, but at the end of the day, the serendipity that put them here
linked them. They talked about how they will merchandise DSRT SURF in
the surf shop and put in on the map with international media in the surf
industry, because there is no question they will be partnering with Palm
Desert for the next 30 or 40 years. Now with respect to "first to market," he
pointed out Palm Spring's surf club project is coming forward with technology
that's untested, and it's only a quarter of the size of what DSRT SURF will
be, additionally, it's not a destination surf resort. Frankly, it's a theme park
being reconditioned to a play area, and there are other proposals in the
Valley that will try to mimic what they are proposing, but DSRT SURF will be
built quicker than the others. He said this project will be the flagship for North
America and actually the first in the world to put resort and surfing
opportunities together in the desert. He said they bantered back and forth
with City staff, and it came down to having trust in the City's Marketing
Department and basically unity of interest in coming up with a name and
brand that serves all of the needs. He is confident that this won't be an issue
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or a problem. In response to Mr. David Paul's comments about the overdraft
of water from the Colorado River, he said this project will be getting its water
from the Aquifer, and while he knew they are sore substitution issues, the
EIR is clear that they will be drilling a well at Desert Willow to provide water
just as the golf course does. When he brought up the Statement of
Overriding Considerations, it called into question the legality of the CEQA
compliance. He reminded everyone that CEQA doesn't mandate an
outcome, only a process. It required them to look at all the environmental
impacts and come up with feasible mitigation measures, and only in those
circumstances where there are none, you go to Statement of Overriding
Consideration. As Council has already duly noted, they have done the best
they can, and he is very confident, as a CEQA practitioner his whole career,
that he and the City have dotted all the is and crossed all the t's.
Councilmember Harnik thanked the Desert Mirage students for being here
this evening and taking part. She added that her concern with first to market
was not that those other would be better, but she didn't want a project that
would be Tess than to ever be confused with this project. She also didn't
want the developers to think she wanted it named "Palm Desert Surf," stating
she gets the coolness in the URBN and DSRT. She added that she's lived
in the Valley for more than 40 years, so she knows about the confusion that
occurs when tourist come here. Her suggestion is that the developers work
with the City's group who has done a lot of marketing research about Palm
Desert, and its positioning in the Coachella Valley in order to obtain the best
results.
Councilman Jonathan moved to: 1) Conduct a public hearing to accept testimony
regarding subject project; 2) Waive further reading and adopt: a) Resolution No. 2019 - 82,
approving Case Nos. SP 18-0002, PP 18-0009, EA 18-0002, and TTM 37639 for the DSRT
SURF Project, subject to the conditions of approval; b) Resolution No. 2019 - 83, certifying
the EIR and adopting a Statement of Overriding Considerations for the DSRT SURF
Project; 3) By Minute Motion, approve/authorize: a) Disposition and Development
Agreement (DDA) between City of Palm Desert and Desert Wave Ventures, LLC;
b) Transient Occupancy Tax (TOT) Agreement, as to form, with Desert Wave Ventures,
LLC, in an amount not to exceed $16.1 million for the operation of a 164-room upper
upscale or luxury hotel and 66 villas located on Parcel B within the Desert Willow Golf
Resort; c) Acquisition Agreement, as to form, between the City and Desert Wave Ventures,
LLC, in the amount of $20 million for acquisition of the public improvements;
d) City Manager to make non -substantive changes to the DDA, the TOT Agreement, the
Acquisition Agreement, and authorize legal counsel to finalize and the Mayor to execute
same; e) City Manager to make non -substantive changes and to execute the DDA's sub -
agreement, City Cost Reimbursement Agreement, and other implementing agreements
and easements necessary to implement the project; f) appropriation of $20 million of bond
proceeds from Fund 451 for costs associated with the public improvements described in
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great impact on the young residents of the Coachella Valley, and he's looking for
leaders to help him in his endeavor.
X. MAYOR AND COUNCILMEMBER REPORTS & REMARKS TO THE COMMUNITY
A. Councilmember Jan C. Harnik Committee Reports and General Comments.
1. Southern California Association of Governments (SCAG) - reported
SCAG is comprised of the six southern California counties, excluding
San Diego, and they are releasing the Regional Transportation Plan
for public comment. She said notices will be sent out from the City
and other sources about this Plan, which is important to our
community and our region. Additionally, they have been working on
the Regional Housing Needs Allocation (RHNA), having to do with the
number of homes each city has to build in their communities. The
housing requirement is similar to what the City has put forth in the
General Plan Update, which is good news for Palm Desert.
Councilman Jonathan offered that this afternoon Council learned that
an agreement was struck between Los Angeles and Eastern
Riverside to transfer some of the RHNA obligation from us to them.
Councilmember Kelly noted she and Councilmember Harnik serve on
the SCAG Regional Council where this happened. She explained the
SCAG Regional Council is tasked with taking the allotment of housing
that comes down from the State and then having to decide how to
divide that up. After staffs recommendation was proposed, there was
substantial push back from Riverside and San Bernardino Counties
to the effect that the vast majority of unmet current needs for housing
is in Los Angeles and Orange County where jobs exceed affordable
housing. Therefore, the final result, which was passed by SCAG with
her and Councilmember Harnik's help, changed the formula to shift
some of the allotment from the Inland Empire to Los Angeles and
Orange County. SCAG was able to pass it, because the
representatives from Los Angeles stepped up and acknowledged the
wisdom of doing so; it was a formal action of the full Regional Council.
Unfortunately, SCAG has not yet updated their excel system that
calculates the allotment for individual cities, but hopefully by
December 12 it can be shared.
2. Veteran's Dav Event - the City's event was outstanding. She thanked
Management Specialist Vanessa Mager for the great job she did,
adding this event was growing every year.
Mayor Weber agreed, stating this year there was a lot of booths
added to provide more information and services to local veterans.
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the DDA and the Acquisition Agreement to the project account; g) City Manager, in
consultation with legal counsel, to take any actions necessary to effectuate these actions,
provided such action is not inconsistent with the actions taken herewith. Motion was
seconded by Nestande and carried by a 5-0 vote (AYES: Harnik, Jonathan, Kelly,
Nestande, and Weber; NOES: None)
XX. ADJOURNMENT
With City Council concurrence, Mayor Weber adjourned the meeting at 7:08 p.m.
ATTEST:
RACHELLE D. KLASS CITY CLERK
CITY OF PALM DESERT, CALIFORNIA
SUSAN MARIE WEBER, MAYOR
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She also thanked Ms. Mager, including other City staff members
contributing to such a successful event.
3. Coachella Valley Economic Partnership (CVEP) Summit - reminder
to everyone the Annual Economic Summit is on Tuesday,
November 19 at the Palm Springs Convention Center. She said
CVEP is making a difference in their efforts in education and providing
amenities that businesses need for attracting and excelling in the
region.
4. Behind a Miracle (BAM) Event - announced the event will take place
on November 23, 2019, on the western end of El Paseo. She said
this was a holiday celebration and a ton of fun.
B. Councilman Sabbv Jonathan Committee Reports and General Comments.
Refer to Section X - Al .
C. Councilmember Kathleen Kelly Committee Reports and General Comments.
Refer to Section X - Al .
D Mayor Pro Tem Gina Nestande Committee Reports and General Comments.
1. Palm Desert Businesses Postcard Survey - encouraged business
owners to respond to the survey as the City really wants to hear from
them and/or potential business owners, and if you missed it, you can
go online to the City's Website to provide feedback. She said local
business owners can express what the City is doing right or what
areas it can improve upon.
E. Mayor Susan Marie Weber Meeting Summaries Report for the Period of
October 12 - November 1, 2019.
With City Council concurrence, the Meeting Summaries Report was received and
filed.
F. City Council Requests for Action.
1. Desert Community Energy (DCE) - Mayor Susan Marie Weber stated
that on August 22, 2019, she had requested information on the DCE,
which is a Community Choice Aggregation (CCA) formed from a Joint
Powers Authority (JPA). It was agreed that questions would be
reviewed at a future study session, which is set for another couple of
months. She wished to add to the list a request that Council be given
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information on what procedure would be followed in order to remove
Palm Desert from the actual JPA.
Ms. Aylaian agreed to provide the requested information at the study
session.
Councilmember Harnik noted a number of Councilmembers sat in on
a webinar from the League of California Cities notifying cities about
the legislation that has been passed. On the CCA issue, she felt that
Senate Bill 520 should be addressed as well at the study session.
G. City Council Consideration of Travel Reauests/Reports.
None
XI. STAFF REPORTS AND REMARKS
A. City Manager
1. City Manager's Meetina Summaries Report for the Period of
October 14 - November 1, 2019.
With City Council concurrence, the Meeting Summaries Report was received and
filed.
2. City Council Meeting Reminder: Due to the Thanksgiving Holiday, the
2' meeting in November will not be held. The next City Council
meeting is on Thursday, December 12, 2019.
3. Shout Out to Businesses on San Pablo Avenue. Due to the very
active construction on San Pablo, you may not know that businesses
there are still open, but you can still make your way in. Also, there is
parking available behind the businesses on San Gorgonio or you
could follow the signage. She encouraged everyone to support local
businesses there, because construction will continue for another five
months.
B. City Attorney
None
C. City Clerk
None
6
MINUTES
REGULAR PALM DESERT CITY COUNCIL MEETING NOVEMBER 14, 2019
D. Public Safety
1. Fire Department
Division Chief Ty Davis reported on the following: a) as the colder
weather approaches, he encouraged residents to inspect their smoke
detectors for carbon monoxide poisoning to ensure they are working,
including furnaces. He said 36% of deaths occur due to carbon
monoxide poisoning, because it's odorless and colorless; b) a shout
out to the Palm Desert Area Chamber and the City for supporting the
Police Officer & Public Safety (POPS) Awards Luncheon; c) Fire
Department started their "Spark of Love" Toy Drive. If you wish to
participate you can drop off unwrapped toys at your local fire station.
2. Police Department
Lt. Martello explained that thanks to Sheriff Bianco's support, many
in the Department have been growing beards as part of an off -duty
fundraising for charities. It's the first time he's done it in uniform, and
he's getting used to it and liking it. Secondly, he thanked the City
Council for their support of the POPS Awards. Lastly, the Palm
Desert Aztec's will be representing the City of Palm Desert this Friday
for the second round of football playoffs against a team from the City
of Santa Barbara.
XII. CONSENT CALENDAR
PALM DESERT CITY COUNCIL
A. MINUTES of the Regular City Council Meeting of October 24, 2019.
Rec: Approve as presented.
B. CLAIMS AND DEMANDS AGAINST THE CITY TREASURY - Warrants
Dated 10/4/2019, 10/18/2019, and 10/28/2019.
Rec: Approve as presented.
7
MINUTES
REGULAR PALM DESERT CITY COUNCIL MEETING NOVEMBER 14, 2019
C. CLAIMS AND DEMANDS AGAINST THE CITY/HOUSING TREASURIES -
Warrants Dated 10/11/2019, 10/18/2019, and 10/25/2019 (Joint
Consideration with the Palm Desert Housing Authority - See Item S
below).
Rec: Approve as presented.
D. APPLICATION FOR ALCOHOLIC BEVERAGE LICENSE by Desert Falls
Country Club, 1111 Desert Falls Parkway, Palm Desert.
Rec: Receive and file.
E. CULTURAL RESOURCES PRESERVATION COMMITTEE Meeting Minutes
for March 26, 2019.
Rec: Receive and file.
F. RESIGNATION of Tommy Edwards — Citizens' Sustainability Committee.
Rec: Receive with very sincere regret.
G. RESIGNATION of Lynn Bixen — Parks & Recreation Commission.
Rec: Receive with very sincere regret.
H. REQUEST FOR DECLARATION of Surplus Property and Authorization for
Disposal — Miscellaneous Computer Equipment and Electronics.
Rec: By Minute Motion, declare items listed in the accompanying staff
report's Exhibit "A" as surplus and authorize disposal as appropriate.
I. REQUEST FOR APPROVAL of Side Letter Agreement 2 to the
2017 Memorandum of Understanding (MOU) with the Palm Desert
Employees Organization (PDEO) for Year -End Holiday Considerations.
Rec: By Minute Motion: 1) Approve Side Letter Agreement 2 to the 2017
MOU with the PDEO (Contract No. C36180) to: a) Close City Hall all
day (instead of half -day closures) on Tuesday, December 24, 2019,
and Tuesday, December 31, 2019; b) provide employees with an
additional eight (8) hours (total) of paid Holiday Leave to
accommodate the closure; 2) authorize the Mayor to declare said
dates as Holidays in accordance with Section 2.52.700 of the
Palm Desert Municipal Code and the approved Side Letter
Agreement 2 to the 2017 MOU — no direct budget impact from this
request, total annual salary expenditures would be the same.
8
MINUTES
REGULAR PALM DESERT CITY COUNCIL MEETING NOVEMBER 14, 2019
J. REQUEST FOR AWARD OF CONTRACT in the Amount of $61,390 to
International Line Builder, Inc., for Washington Street Intersection Re -Wiring
and Controller Cabinet Assembly Upgrades (Contract No. C38550A, Project
No. 551-17).
Rec: By Minute Motion, authorize: 1) Award of subject contract in the
amount of $61,390 to International Line Builder, Inc., Corona,
California, for Washington Street Intersection Re -Wiring and
Controller Cabinet Assembly Upgrades Project; 2) Director of Finance
to set aside a 10% contingency in the amount of $6,139;
3) City Manager or designee to review and approve written requests
for the use of contingency change orders for unanticipated conditions,
per Section 3.30.170 of the Palm Desert Municipal Code;
4) City Manager to execute said contract — funds are available in
Measure A Fund, Account No. 2134617-4400100 - Washington Street
Improvements / Capital Project.
K. REQUEST FOR AWARD OF CONTRACT for Engineering and Traffic
Survey Services for Establishment of Speed Zones Citywide to
TJKM Transportation Consultants in the Amount of $90,625 (Contract
No. C39140, Project No. 590-20).
Removed for separate consideration under Section XI II, Consent Items Held
Over. Please see that portion of the Minutes for Council discussion and
action.
L. REQUEST FOR APPROVAL of the 2019 Miracle on El Paseo Event.
Rec: By Minute Motion, approve: 1) Miracle on El Paseo Event scheduled
for Saturday, November 23, 2019; 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.
M. REQUEST FOR APPROVAL of the 2020 Y-Be-Fit Palm Desert Challenge.
Rec: By Minute Motion, approve use of City property for the 2020 Y-Be-Fit
Palm Desert Challenge scheduled for Sunday, October 4.
N. INFORMATIONAL REPORT for the First Year of Commercial Cannabis
Business Operations in the City of Palm Desert.
Rec: Receive and file.
9