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HomeMy WebLinkAboutCC Minutes 2020-03-11 CITY COUNCIL MINUTES Cathedral City Study Session Wednesday, March 11, 2020 4:00 PM City Council Chambers 68-700 Avenida Lalo Guerrero Cathedral City, CA 92234 • CALL TO ORDER The meeting was called to order at 4:00 PM by Mayor John Aguilar. • ROLL CALL Attendee Name Title Status Arrived John Aguilar Mayor Present 4:00 PM Raymond Gregory Mayor Pro Tem Present 4:00 PM Mark Carnevale Councilmember Present 4:00 PM Ernesto Gutierrez Councilmember Present 4:00 PM Rita Lamb Councilmember Present 4:00 PM • AGENDA FINALIZATION • THE CITY COUNCIL WILL RECESS TO CLOSED SESSION AT 4:00 PM 1. CLOSED SESSION Eric Vail, City Attorney, announced that the City Council will recess to Closed Session to discuss the following items on the agenda. A. Conference with Legal Counsel - Anticipated Litigation Pursuant to Government Code Section 54956.9(d)(2). Number of Potential Cases: Two B. Conference with Labor Negotiator Pursuant to Government Code Section 54956.6 Agency Negotiator: Charles McClendon, City Manager Represented Employees: AFSCME - The American Federation of State, County and Municipal Employees CCPOA - Cathedral City Police Officers Association CCPFA - Cathedral City Firefighters Association CCFMA - Cathedral City Fire Management Association C. Public Employee Performance Evaluation Per Government Code Section 54957 (B) Title: City Manager The City Council recessed to Closed Session at 4:00 pm. The City Council reconvened at 4:30 pm. Eric Vail, City Attorney, announced that the City Council met in Closed Session to discuss item 18. Anticipated Litigation and 1C. Public Employee Performance Evaluation, there was no reportable action taken. Item 1A. will be heard during the Regular Meeting and will be referenced in the Regular Meeting Minutes of March 11, 2020. • STATEMENT OF PARTICIPATION BY THE CITY CLERK 2. PUBLIC COMMENT None 3. STUDY SESSION A. Short-Term Vacation Rental Task Force Progress Report Recommendation: This item is presented for information, discussion and direction only. Boris Stark, Short-Term Vacation Rental Task Force Member, provided the City Council with an update on the Regulations Working Group. He presented the following points: Working Group Members: Boris Stark, Short-Term Vacation Rental Management Ryan Dame, Short-Term Vacation Rental Management Karyn McQueen, Short-Term Vacation Rental Owner Michelle Van Sickle, Desert Princess Country Club Resident Tami Scott, Staff Support-Administrative Services Director Kevin Biersack, Staff Support-Accounting Services Manager Cindy Hansen, Senior Analyst Items Under Review: • Music - Regulations to limit or eliminate outdoor music • Noise - Regulations to restrict all noise at certain times • Occupancy limits - Regulations to reduce maximum occupancy • Parking - Regulations to limit parking • Trash - Regulations to require walk up trash service and two trash and recycle containers; trash containers may not be seen from public view • Age of responsible person - Regulations to increase the minimum age of responsible person who is renting the property Cathedral City Page 2 Printed on 3/19/2020 • • Local contact person - Regulations to require rapid response to issues • Ownership limits - Regulations to limit ownership of multiple units • Education and Guest Check-in - Regulations to require processes to better inform guest of rules • Require rental agreement to include good neighbor brochure • Increase fine amount for violations & operating without a permit, including suspension & revocation of permits • Reporting - Require contract summaries to be submitted to City • Non-rental uses - Require a friends and family list • Multi-family units - Regulations to better define units that fall under the prohibition Next Steps: • Task force will review each possible regulation and make a recommendation on which to include in final report • Music, Trash and Parking were reviewed on March 9 • Others will follow in April Councilmember Mark Carnevale inquired if there are things that were considered that the group did not agree on. He also questioned when the City Council can expect to get all the information on all recommendations considered. Mr. Stark responded that there are many things still being considered at this time. Once the working group has their finalized recommendations that they all agree on they will bring it to the Council for consideration. Ed Emond-Worline, Short-Term Vacation Rental Task Force Member, provided the City Council with an update on the Enforcement Working Group. He presented the following points: Working Group Members: Amanda Hoffmann, Short-Term Vacation Rental Management Bob Ohda, resident w/o Short-Term Vacation Rental ownership Chris Harami, resident with Short-Term Vacation Rental ownership Conrad Corral, resident with Short-Term Vacation Rental ownership Ed Emond-Worline, resident w/o Short-Term Vacation Rental ownership Staff Support: Dane Dickson, Commander Cathedral City Police Department Robert Rodriguez, Director of Planning/Building Tami Scott, Administrative Services Director Role of the Group: • Evaluate current enforcement efforts for effectiveness • Propose improved enforcement methods in concert with the Regulations group Current Status: Cathedral City Page 3 Printed on 3/19/2020 I • Public comments indicate both owners/managers and neighbors want strong enforcement • Trash, Music and Noise, Parking • No single City staff position is dedicated to Short-Term Vacation Rental enforcement. Services are provided by: • Code Enforcement • Administrative Services • Police • Fire • Coordination among departments has historically been a problem Steps Taken to Date: • Hotline procedures and protocol reviewed and improved. • Private security contract to respond to hotline calls from 6pm to 2 am Thurs, Fri, Sat and 10 am to 8 pm on Sunday. • Not viewed as the ultimate solution • Contract for Data Analytics to seek out on-line ads that don't comply with the code and ads for unlicensed Short-Term Vacation Rental • Still viewed as a work in progress Improvements Needed: • Ability to address noise issues heard from a backyard that can't be documented from the street • Improved documentation and reporting from the Data Analytics firm • It appears that the Security contract is not a long-term solution for the evening hours (maybe overnight) • Current staffing and funding levels are not sufficient to run the Short-Term Vacation Rental enforcement program on an on-going basis. • Additional Code and potentially office staff will be needed Next Steps: • Determine recommended staffing needed for adequate enforcement • Determine fees necessary to recover the costs of the enforcement program • Determine what is necessary for code enforcement or security personnel to access neighboring properties to adequately document and cite noise violations • Get the documentation necessary from the Data Analytics firm to readily issue citations for illegal ads and unlicensed operations Mayor John Aguilar questioned if the City is currently issuing citations for violations. Robert Rodriguez, Director of Planning, responded in the affirmative. Mayor Pro Tern Gregory questioned how many citations have been issued and the type. Mr. Rodriguez responded that he does not have the number of citations with him but he would provide it to Council. He stated most of the citations are related to Cathedral City Page 4 Printed on 3/19/2020 advertising violations. Mayor Pro Tern Raymond Gregory questioned if the citations issued were related to the neighbors being disturbed related to noise, trash and parking. Mr. Rodriguez responded in the affirmative. Councilmember Ernesto Gutierrez asked for statistics on Short-Term Vacation Rental complaint calls received and if the calls noted party advised were completed. Mr. Rodriguez responded that he could not confirm the number at this time, however Allied Security Services is currently getting out to the sites within 7-8 minutes when a call comes in, which was the intended purpose of contracting with them. He indicated that if Allied is not available the Police Department is called out. The problem that is being encountered when they get called out for a noise complaint once they arrive, whether Police or Allied, there is no noise that they can hear. Councilmember Ernesto Gutierrez asked for clarification on the current Short- Term Vacation Rental density map. Mr. Rodriguez responded that the current map of short-term vacation rentals can be found on the City's website. Pattie Hagedorn and Teri Hargreaves, Short-Term Vacation Rental Task Force Members, provided the City Council with an update on the Density Working Group. They presented the following points: Working Group Members: Teri Hargreaves - Panorama resident Pattie Hagedorn - Panorama resident Boris Stark - Short-Term Vacation Rental Manager - Acme Management Company Karyn McQueen - Owner of Short-Term Vacation Rental in Panorama Charlie McClendon - City Manager Research and Information gathered- Current Status of short-term vacation rentals in Cathedral City: • Approximately 400 short-term vacation rentals currently permitted (about 396 as of January 20, 2020 • 33% (128/396), one third are in HOAs • 24% (97/396) one quarter are owned by Cathedral City residents • Number of home-sharing (owner occupied) short-term vacation rentals - unknown • It is unknown how many illegal (unpermitted) short-term vacation rentals are operating • List provided by staff of all permitted short-term vacation rentals • Map showing location of Permitted short-term vacation rentals-on city- ' Cathedral City Page 5 Printed on 3/19/2020 wide website • HOA provided with report Coachella Valley Cities Comparison: • Some have no density restrictions (Indio 787; La Quinta 1,290) • Some have ratio/proximity restrictions (Rancho Mirage 10% per "district" and no "surrounding') • Some have some density related operational restrictions (Palm Springs - restricts the number of contracts a year, ownership limitations • Some prohibit in residential neighborhoods with exceptions/conditions (Indian Wells, Palm Desert) • Note: Members also reviewed trends in other cities in California and nationwide and general articles/studies about the effect of short-term vacation rentals on cities. • La Quinta has formed an ad hoc committee to review current ordinances Findings: • Worldwide issue - the proliferation of short-term vacation rentals is impacting cities worldwide • Every city's approach is unique - No "one-size fits all" solution; each community has its own twist in addressing the issue • Regulations are fluid worldwide - short-term vacation rental regulations are in flux • Divisive - Single most controversial local issue in decades (League of CA Cities 2019 Annual Conference) Two Emerging Approaches: • Proposal#1 - Strong Regulations and Enforcement Elements • Rely on stronger regulations & significant enforcement • Lift moratorium when regulations and enforcement are in place • Cap the number of short-term vacation rentals - (for example allow up to double the current number of licenses) • Put a "placeholder" for density control in regulations - this way the City Council can enact the limitations when they feel they are needed. Those in support offer the following reasons: 1. Strong regulation and enforcement haven't really been tried due to lack of resources so there is no data to show it won't work 2. Short-term vacation rentals seem to cluster only in certain areas, not a pervasive city-wide problem 3. "Bad apples" - poor operators are really the problem, don't penalize the entire industry, instead deal with the poor operators 4. Palm Springs saw a drop in the number of permits when strict rules were passed and enforced 5. Survey respondents pointed out that short-term vacation rentals bring revenue to the City, visitors add diversity, short-term vacation rentals support local jobs, provide income opportunity for homeowners and result in physical improvements to properties Cathedral City Page 6 Printed on 3/19/2020 • Proposal#2 - Phase Out of short-term vacation rentals with exceptions Elements • Prohibit short-term vacation rentals in R-1 and R-2 areas • Adopt a "phase-out" transition period - a number of years as determined by City Council for owners to repurpose their properties to convert into long-term rental property, reside in property, or sell • Allow for hardship extensions - additional time added to transition period if owner shows hardship • Exception: short-term vacation rentals may continue to be allowed for "home-sharing"- Cathedral City residents may host guests in room(s) in their home while the resident is present. Only one short-term vacation rental per resident. • Exception: short-term vacation rentals may continue to be allowed in HOAs with CCRs that allow short-term vacation rentals • During the transition phase, existing short-term vacation rentals are subject to new regulations adopted by the City Council Those in support offer the following reasons: 1. Short-term vacation rentals are a commercial enterprise incompatible with residential neighborhoods 2. Short-term vacation rentals remove housing units 3. Short-term vacation rentals negatively affect residents' quality of life 4. Residents'feeling of security is compromised 5. Documented examples of crime occurring in short-term vacation rentals 6. A phase out is fair to current short-term vacation rental owners by providing time to convert to long-term rentals or sell 7. Survey response: "Do I have to move to escape the nightmare of short-term vacation rentals? Please make this nightmare end." Other Ideas Considered: • Proximity (separation) restrictions • Ratio/Numerical Caps • Crop circles • Geographical Restrictions • Ownership Restrictions - Permanent Residency • Ownership Restrictions - One short-term vacation rental per owner • Ownership Restrictions - Natural Person Requirement • Restrict the number of rental contracts or nights per year; Prohibit except during festivals Conclusion: Two Proposals: • Proposal #1 - Use strong regulations and enforcement to weed out poor operators • Proposal#2 - Phase out of short-term vacation rentals to eliminate the use in non-HOA neighborhoods over time, while allowing home-sharing Next Steps: Cathedral City Page 7 Printed on 3/19/2020 • City Council continue to review all documentation provided • Working Group continue gathering information about trends in other cities and review any research/articles that become available • Finalize the recommendations and report to the full Task Force • Task Force as a whole will develop recommendations to report to City Council in June Mayor Pro Tern Raymond Gregory thanked the members of the Short-Term Vacation Rental Task Force for their work. He questioned whether geographical restrictions were more or less receptive in different areas. Pattie Hagedorn responded that no area was universally for or against short-term vacation rentals, although, the Cove was more in favor of them than other areas of the City. Mayor John Aguilar questioned what kind of impact the phase-out approach would have on the real-estate market. Teri Hargreaves responded that other Cities who have adopted a phase-out approach have contracted consulting companies to help with the process and can offer insight on real-estate impact. Pattie Hagedorn responded that it is hard to say, some cities who have adopted this approach have not seen a decline in market values. She stated that there are consultants that can provide statistics. Councilmember Ernesto Gutierrez thanked the Task Force members for all the time they have put into this process. He questioned if the Task Force feels that what they will bring back in a couple of months will be any different than what their recommendation is today. Pattie Hagedorn responded that what the Task Force brings back will depend on the direction Council gives them. Charles McClendon, City Manager, stated that over the next two months the Task Force will be addressing the regulation and enforcement portions of the recommendations to present to the City Council. Councilmember Rita Lamb requested clarification on Home Sharing. Teri Hargreaves responded that the Task Force considers home sharing when someone rents out a room or home while they are living in the home. She stated that ADU's (casitas) are prohibited from being used as a short-term vacation rental. Robert Rodriguez, Director of Planning, presented the short-term vacation rentals citation report to the City Council. Terri Swartz, Cathedral City resident, was called to speak. She stated that she resides in the HOA community of Desert Princess and is a member of the Desert Cathedral City Page 8 Printed on 3/19/2020 Princess HOA Board of Directors and the Chair of their Ad-hoc short-term vacation rentals committee. She expressed their dismay for the Short-Term Vacation Rental Task Force for not soliciting input from the HOA communities. She questioned why HOAs were not surveyed by the Task Force. The City has an obligation to provide City services in HOAs just like other areas of the City. She discussed the two emerging pathways from the task Force for recommendations to the City Council and questioned why HOA and non HOA neighborhoods are being treated differently. She feels that the City should help the HOAs enforce short-term vacation rentals by remitting the license fees directly to the HOAs. She stated that HOA communities are zoned residential and should be operated as such. Jens Mueller, Cathedral City resident, was called to speak. He questioned why the City is allowing short-term vacation rentals in R-1and R-2 zones. He feels it is against the law and there should not be a debate on this issue. Randy Wiemer, Cathedral City resident, was called to speak. He stated that he is here on behalf of the Association of Realtors of Palm Springs who are concerned and monitoring the short-term vacation rental issue. He stated that they can provide any needed data. He stated that they believe better enforcement is the best action. Mike Fish, Cathedral City resident, was called to speak. He stated that he is a part-time resident and part-time short-term vacation rental owner in the Cove. He described an incident recently where his tenants called him to complain about a neighbor, who is a full time resident, playing loud music. He stated that he called the Hotline and was told this wasn't a matter for them, so he called the police. He also expressed his concern about the survey that was sent out, stating that it was a small sample. He feels walk up trash service is a good idea, but he is not in favor of requiring more trash cans. He stated that he owns a small home and hopes that the City Council will distinguish the difference between large and small homes. Ronald Mendiola, Cathedral City resident, was called to speak. He stated that he is opposed to short-term vacation rentals in residential areas. He feels that the City does not have the staff to enforce the short-term vacation rental program. He also stated that he is living next to a business and he does not have the quality of life that he should have. Mike Ziskind, Rancho Mirage resident, was called to speak. He stated that his neighborhood was ruined in Palm Springs by mini hotels. He feels that enforcement is not the answer and does nothing to protect the neighborhoods. He presented a map of short-term vacation rentals in Palm Springs and discussed the problems associated with them. He urged Cathedral City to reject short-term vacation rentals. Julie Baumer, Cathedral City resident, was called to speak. She stated that she is against short-term vacation rentals in neighborhoods. She stated that the long- term rental next door to her home has not been an issue. She feels that if the City is going to allow a short-term vacation rental program, an entire Cathedral City Page 9 Printed on 3/19/2020 administrative staff is needed to manage it. Boris Stark, Property Manager, was called to speak. He stated that his company manages 6 rental properties in Cathedral City. He stated that no one wants a party house next to them and feels everyone wants to be good neighbors. He feels that the City is making big efforts to help ease the issues and he applauded the City's efforts. He also feels that rules in the past have not been properly enforced. He does not want the burden to be placed on taxpayers for better enforcement and is in favor of higher permit fees. He is also in favor of short-term vacation rentals in the City. Kay Medland, Cathedral City resident and short-term vacation rental user, was called to speak. She stated that she purchased a home in Cathedral City after visiting the City while renting a short-term vacation rental. She feels people like short-term vacation rentals because they are homes away for home. She would like the City Council to use fairness and reason in their final decisions. John Curran, Palm Desert resident, was called to speak. He stated that he was actively involved in the same issue that took place in Palm Desert. He discussed some of the issues his City had in the past with short-term vacation rentals. He stated that Palm Desert fines were too low and once the fines were raised there was some impact made. He suggested raising fines and fees if the City decides to keep the short-term vacation rental program. Bruce Poyuter, Palm Desert resident, was called to speak. He stated that he is speaking on behalf of Cathedral City residents that reside next to short-term vacation rentals. He stated that he has seen a trend to eliminate short-term vacation rentals. He feels that short-term vacation rentals are a target for crime and he referenced articles on violence at short-term vacation rentals. He feels 700 plus units cannot be handled and the tide has turned on this business model. Timo Leonhaeuser, Cathedral City resident, was called to speak. He stated that this City use to be a quiet place to live but now his home is surrounded by short- term vacation rentals and noise. He stated that a home sharing property near him has been ok so far, although they have had renters come in and out late at night. He feels that renters don't care about the neighbors and something needs to be done to control the issue. Henry Bagumyan, part-time Cathedral City resident and part-time short-term vacation rental owner, was called to speak. He stated that no one wants a renter that is going to cause problems in the neighborhood. He expressed his concern with false complaints made and stated that there have been calls made when his property was unoccupied. He agrees with stronger enforcement. He also feels that the upgrades and work he has put into his property has raised home values. Michael Hagedorn, Cathedral City resident, was called to speak. He feels that the Short-Term Vacation Rental Task Force has done a wonderful job. He believes that there is no amount of enforcement that will ever work. He suggested raising the permit fees extremely. He feels that the Task Force is taking on a lot of work and would like to see the Council provide direction and shorten the timeframe for Cathedral City Page 10 Printed on 3/19/2020 the Task Force to complete their recommendations. Elaine Taylor, Cathedral City resident, was called to speak. She stated that she has a home in the Cove with a casita, which they rent out to supplement her income. It is a great opportunity and she doesn't see any problems with doing that. She stated that she has other short-term vacation rentals near her that have not been problematic. She also stated that she has had noise issues with residents near her and the Police Department was able to help in those situations. James Scott, Cathedral City resident, was called to speak. He stated he has a home in the Cove. He feels that there are rentals during the Stagecoach and Coachella festivals that are flying under the radar and not paying permit fees. He encouraged the City Council to be smart with regulations and increase fees to better regulate. Doug Evans, Cathedral City resident, was called to speak. He commended the resident members on the Short-Term Vacation Rental Task Force, stating their attendance at meetings has been great. He stated that the residents are very unhappy, and the bad apples are still operating. He also stated that the revenue from short-term vacation rentals even if doubled would only go towards enforcing them. He stated that at a recent City Hall at Your Corner event, he asked the City Manager if there is any other land use that needs to be managed like short-term vacation rentals, and City Manager responded that there is not. Jeff Bergen, Cathedral City resident, was called to speak. He feels that short- term vacation rentals are for profit businesses and weekend rentals of homes are not good for the neighborhood. He feels that if short-term vacation rentals would not be allowed in the City, the housing values would increase. He stated that he has had conversations with a fellow neighbor who is too scared to make complaints and are living in fear. He stated that if the City Council decides to allow short-term vacation rentals to continue they will be hindering their ability to enjoy their own neighborhoods. Lorena Ritchey, Cathedral City resident, was called to speak. She stated that she is opposed to short-term vacation rentals. She expressed her concern with the Ordinances and fees associated with short-term vacation rentals. She feels that the security company contracted by the City is not aware and knowledgeable of local Ordinances. Having a full-time Code Enforcement Officer on duty, that knows the codes, would be more beneficial. She suggested that short-term vacation rentals have ordinances and regulations separate from the rest of the City Ordinances and that the City Council address administrative fines. A motion was made by Mayor Pro Tern Gregory and seconded by Councilmember Carnevale to continue discussion on the Short-Term Vacation Rental Task Force Progress Report to the Regular City Council meeting on March 11, 2020, at 6:30 pm. prior to Public Comment. The discussion will be reflected in both sets of minutes. Cathedral City Page 11 Printed on 3/19/2020 I RESULT: APPROVED [UNANIMOUS] MOVER: Raymond Gregory, Mayor Pro Tem SECONDER: Mark Carnevale, Councilmember AYES: Aguilar, Gregory, Carnevale, Gutierrez, Lamb The following discussion took place during the Regular City Council meeting of March 11, 2020. Councilmember Ernesto Gutierrez feels that there is not enough revenue generated from short-term vacation rental licenses to manage the program. He stated that he receives numerous complaints related short-term vacation rentals. He is unsure that the Short-Term Vacation Rental Task Force will come to a different conclusion in the next few months and supports proposal number 2. He would like the Task Force to work on recommendations to phase out all short-term vacation rentals including HOA's. Councilmember Rita Lamb requested further clarification on accessory dwelling units (ADU) and the licensing. City Manager Charles McClendon responed that a new State law prohibits any new ADUs from being used as a short-term vacation rental. All existing ADUs being used as a short-term vacation rental require the same licensing and fees as other units. Mayor Pro Tem Raymond Gregory requested clarification on whether or not a resident renting out a casita is considered home-sharing if they reside on the property. The Short-Term Vacation Rental Task Force confirmed casitas are being considered as home-sharing if the owner resides on the property. Councilmember Mark Carnevale questioned if HOAs are governed differently than other residential areas. City Attorney Eric Vail responded that the City Council has the authority to zone any or all areas in the City to prohibit or allow short-term vacation rentals including HOAs. Councilmember Mark Carnevale questioned why the Short-Term Vacation Rental Task Force did not survey the HOAs. Pattie Hagedorn responded that the Short-Term Vacation Rental Task Force did not consider HOAs because they govern themselves and there have been little to no complaints related to short-term vacation rentals in HOAs. City Manager Charles McClendon stated that the Short-Term Vacation Rental Task Force had considerable discussion on whether to include HOAs in their recommendations to Council. The consensus of the Short-Term Vacation Rental Task Force was to exclude them from the recommendations, as HOAs can outlaw short-term vacation rentals at any time. Cathedral City Page 12 Printed on 3/19/2020 Councilmember Mark Carnevale feels that HOA's should be included. He also feels that the City Council is well advised on the short-term vacation rental situation and he would like to see the recommendations brought back to the City Council for consideration before June. Mayor Pro Tem Raymond Gregory thanked those who are working on the Short- Term Vacation Rental Task Force. He feels that there is still work that needs to be done. He discussed the Geographic approach. He suggested that the Short-Term Vacation Rental Task Force look at an option for prohibiting short-term vacation rentals in R1 and R2 zones with an option for a community to opt their R1 or R2 back in. He feels that the regulation piece needs to be addressed and moved forward. He stated that if the City allows any short-term vacation rentals better rules and enforcement are needed. He expressed his concern with the interim measures not producing substantial change or improvement. He feels that there is still some time but also feels that we need to start moving forward to possibly prohibiting short- term vacation rentals. Councilmember Rita Lamb would be opposed to modifying or overriding HOAs. Councilmember Ernesto Gutierrez would like the Short-Term Vacation Rental Task Force to work on what type of regulations are needed if Council goes with option number 2. Mayor John Aguilar stated that he has had the opportunity to sit in on most of the Short-Term Vacation Rental Task Force meetings. He has been conflicted with the quality of life issues that have arisen because of short-term vacation rentals. He expressed his concerns with the regulatory and enforcement issues and the potential costs associated with them. He would like more information on the impact of the real-estate market, which he feels is important. He also feels that they are almost there but there is more information needed that the Council can benefit from before any final decisions are made. Councilmember Ernesto Gutierrez requested that the Short-Term Vacation Rental Task Force look into how other cities regulate short-term vacation rentals in HOAs. City Manager Charles McClendon stated that the Council's comments will help the Task Force to focus on options for what regulations and enforcement will be needed under any scenario as well as a phase out option of the short-term vacation rentals program for the City Council to consider. They will also compile information on how other cities regulate short-term vacation rentals in HOAs. ADJOURN Mayor John Aguilar adjourned the Study Session meeting at 6:20 pm. Cathedral City Page 13 Printed on 3/19/2020 _ Mayor, �'_y o a'lora ity City Clerk, ity of athedral Cit Cathedral City Page 14 Printed on 3/19/2020 CITY COUNCIL MINUTES Cathedral City Regular Meeting Wednesday, March 11, 2020 6:30 PM City Council Chambers 68-700 Avenida Lalo Guerrero Cathedral City, CA 92234 • CALL TO ORDER The meeting was called to order at 6:30 PM by Mayor John Aguilar. • PLEDGE OF ALLEGIANCE Councilmember Rita Lamb led the Pledge of Allegiance. • INVOCATION (MOMENT OF REFLECTION) Councilmember Ernesto Gutierrez asked for a moment of silence to honor Councilmember Mark Carnevale's mother, Emilie Carnevale, who recently passed away. He also offered the Invocation. • ROLL CALL Attendee Name Title Status Arrived John Aguilar Mayor Present 6:30 PM Raymond Gregory Mayor Pro Tern Present 6:30 PM Mark Carnevale Councilmember Present 6:30 PM Ernesto Gutierrez " Councilmember Present 6:30 PM Rita Lamb Councilmember Present 6:30 PM Mayor John Aguilar gave an update on COVID-19 and what the City is doing to keep the residents and City safe. He stated that all information given and further updates can be found on the City's website. He announced that the State of the City has been rescheduled to May 28, 2020. He also announced that LGBT Days is canceled and all City Hall at Your Corner events have been canceled until further notice. • AGENDA FINALIZATION Item 6E. Mikes Hard Lemonade Pop-Up April 2020, was pulled from the agenda. Item 3C. MOU City of Indio, was pulled from the Consent Agenda for separate consideration. • SPECIAL RECOGNITION - FIRE DEPARTMENT RECOGNITION OF RESCUERS OF STUDENT ATHLETE Fire Chief Paul Wilson and Fire Captain Robert Williams presented a Life Saving Commendation to Jose Macias and Michael Guzman for performing life saving CPR on patient Mia Castillo, a student from Cathedral City High School. • STATEMENT OF PARTICIPATION BY THE CITY CLERK 1. PUBLIC COMMENT Brad Anderson, Rancho Mirage resident, was called to speak. He commended the City for the visual agenda displayed on the screens. He suggested page numbering be placed on the Agenda of where the items can be found in the agenda packet. He stated that he attended the Coachella Valley Mosquito and Vector Control meeting and he was the only resident attendee. He expressed his concern with the public not having access to going up the stairs to enter the City Council Chambers. • Short Term Vacation Rental Task Force Progress Report The City Council continued discussion on Study Session Item 3A. Short-Term Vacation Rental Task Force Progress Report. Councilmember Ernesto Gutierrez feels that there is not enough revenue generated from short-term vacation rental licenses to manage the program. He stated that he receives numerous complaints related short-term vacation rentals. He is unsure that the Short-Term Vacation Rental Task Force will come to a different conclusion in the next few months and supports proposal number 2. He would like the Task Force to work on recommendations to phase out all short-term vacation rentals including HOA's. Councilmember Rita Lamb requested further clarification on accessory dwelling units (ADU) and the licensing. City Manager Charles McClendon responed that a new State law prohibits any new ADUs from being used as a short-term vacation rental. All existing ADUs being used as a short-term vacation rental require the same licensing and fees as other units. Mayor Pro Tem Raymond Gregory requested clarification on whether or not a resident renting out a casita is considered home-sharing if they reside on the property. The Short-Term Vacation Rental Task Force confirmed casitas are being considered as home-sharing if the owner resides on the property. Councilmember Mark Carnevale questioned if HOAs are governed differently than other residential areas. Cathedral City Page 2 Printed on 3/19/2020 City Attorney Eric Vail responded that the City Council has the authority to zone any or all areas in the City to prohibit or allow short-term vacation rentals including HOAs. Councilmember Mark Carnevale questioned why the Short-Term Vacation Rental Task Force did not survey the HOAs. Pattie Hagedorn responded that the Short-Term Vacation Rental Task Force did not consider HOAs because they govern themselves and there have been little to no complaints related to short-term vacation rentals in HOAs. City Manager Charles McClendon stated that the Short-Term Vacation Rental Task Force had considerable discussion on whether to include HOAs in their recommendations to Council. The consensus of the Short-Term Vacation Rental Task Force was to exclude them from the recommendations, as HOAs can outlaw short-term vacation rentals at any time. Councilmember Mark Carnevale feels that HOA's should be included. He also feels that the City Council is well advised on the short-term vacation rental situation and he would like to see the recommendations brought back to the City Council for consideration before June. Mayor Pro Tern Raymond Gregory thanked those who are working on the Short- Term Vacation Rental Task Force. He feels that there is still work that needs to be done. He discussed the Geographic approach. He suggested that the Short-Term Vacation Rental Task Force look at an option for prohibiting short-term vacation rentals in R1 and R2 zones with an option for a community to opt their R1 or R2 back in. He feels that the regulation piece needs to be addressed and moved forward. He stated that if the City allows any short-term vacation rentals better rules and enforcement are needed. He expressed his concern with the interim measures not producing substantial change or improvement. He feels that there is still some time but also feels that we need to start moving forward to possibly prohibiting short- term vacation rentals. Councilmember Rita Lamb would be opposed to modifying or overriding HOAs. Councilmember Ernesto Gutierrez would like the Short-Term Vacation Rental Task Force to work on what type of regulations are needed if Council goes with option number 2. Mayor John Aguilar stated that he has had the opportunity to sit in on most of the Short-Term Vacation Rental Task Force meetings. He has been conflicted with the quality of life issues that have arisen because of short-term vacation rentals. He expressed his concerns with the regulatory and enforcement issues and the potential costs associated with them. He would like more information on the impact of the real-estate market, which he feels is important. He also feels that they are almost there but there is more information needed that the Council can benefit from before any final decisions are made. Councilmember Ernesto Gutierrez requested that the Short-Term Vacation Rental Cathedral City Page 3 Printed on 3/19/2020 Task Force look into how other cities regulate short-term vacation rentals in HOAs. City Manager Charles McClendon stated that the Council's comments will help the Task Force to focus on options for what regulations and enforcement will be needed under any scenario as well as a phase out option of the short-term vacation rentals program for the City Council to consider. They will also compile information on how other cities regulate short-term vacation rentals in HOAs. 2. COUNCIL REPORTS Mayor John Aguilar reported that he has engaged in weekly calls with the Governor's Office of Emergency Services, California Health and Human Services, Governor Newsom's Office, the California Department of Public Health and Supervisor Perez's office to discuss the state of the Corona Virus in our County and what measures are being taken to ensure the safety of the community. He stated that a summary of this information has been provided to Christopher Parman, Communications and Events Manager to publish on the City's website. Councilmember Mark Carnevale thanked Staff and members of the public for the condolences for the loss of his mother. He reported that he attended the Citizens on Patrol Pancake Breakfeast, which was very delicious. He along with Stone James, Economic Development Director, met with some potential new developers. Mayor Pro Tem Raymond Gregory reported that he had the opportunity to attend a few events. As part of the State of the City presentation, he spent time with Christopher Parman and the homeless liaisons with the Police Department. He felt that it was very informative and good to see them in action. He attended the Date Palm Country Club Pancake Breakfast for Public Safety. He along with Interim Police Chief Crum and Commander Luna attended the ERICA Board meeting. He also attended the League of California Cities, Riverside County Division meeting at the Indio Polo Grounds. He also attended the Riverside County Transportation Committee meeting in Riverside where they discussed their annual goals and the 91 and 15 interstate issues. He announced the movies in the park is still on. Councilmember Rita Lamb reported that she attended the Sound the Alarm event at Tram View Mobile Home Park, which was sponsored by the local Red Cross. She also attended the Noon Rotary at JAX restaurant, where Stone James gave a great presentation. She attended the Senior Center for an update on the Corona Virus provided by Congressman Ruiz. She stated that she attended many of the same events as her fellow Councilmembers. Councilmember Ernesto Gutierrez reported that he and Councilmember Mark Carnevale met with Sylvia and Tony, who are responsible for the Taste of Jalisco event. They expressed their interest in becoming the promoters for that event. He also met with residents who are interested in running for City Council. He along with Councilmember Mark Carnevale also met with Police Chief Crum on how to beautify the City and enforce the Municipal Code. He stated that he also attended the California League of Cities meeting at the Indio Polo Grounds. 3. CONSENT AGENDA Cathedral City Page 4 Printed on 3/19/2020 A motion was made by Mayor Pro Tern Gregory and seconded by Councilmember Lamb to approve the following Consent Agenda items: RESULT: APPROVED [UNANIMOUS] MOVER: Raymond Gregory, Mayor Pro Tern SECONDER: Rita Lamb, Councilmember AYES: Aguilar, Gregory, Carnevale, Gutierrez, Lamb A. Minutes Approval Brad Anderson, Rancho Mirage resident, was called to speak. He feels that the minutes did not reflect the comments that he made at the January 25, 2020 Special Meeting. M.O. 2020-38 1. City Council - Special Meeting - Jan 25, 2020 8:00 AM 2. City Council - Study Session - Feb 26, 2020 4:00 PM 3. City Council - Regular Meeting - Feb 26, 2020 6:30 PM B. Receive and file Payment of Claims and Demands for February 2020 Recommendation: The City Council acting in its capacity for the City, the Successor Agency to the former Redevelopment Agency, the Housing Successor Agency, and the Cathedral City Public Finance Authority Board receive and file payment of claims and demands in the aggregate sum of$7,128,971 for the month of February 2020. M.O. 2020-39 C. 2098 pulled from Consent This item was pulled for separate consideration. D. 2020 Agua Caliente Band of Cahuilla Indians Grant Awards Recommendation: To approve grant awards from the Agua Caliente Band of Cahuilla Indians in the amounts of$25,000 to the police department and $28,654 to the fire department. M.O. 2020-41 E. Cannabis Distribution Taxes Recommendation: To adopt a resolution providing for an exemption to the tax on cannabis distribution for businesses that distribute product that was cultivated and taxed in Cathedral City or manufactured and taxed in Cathedral City. Reso 2020-05 F. D. R. Horton and other development in the Rio Vista-Verano area: Authority for the City to grant various easements, approve agreements and licenses, and to approve other actions on City owned land, as needed during the development and construction in this area. Cathedral City Page 5 Printed on 3/19/2020 Recommendation: To authorize the City Manager to approve and execute various easements, on behalf of the City, across and through City owned land for water, sewer, gas, electric, access, utilities, drainage and other uses, as needed in the furtherance of development in the Rio Vista-Verano area. M.O. 2020-42 G. Grant of Easements to Southern California Gas Company on City-Owned Park Lots in the Rio Vista (Verano) Development Recommendation: To approve Grants of Easement to Southern California Gas Company for utility easements on City-owned park Lots 271, 272, 287 and 288 of Tract 28639-1, in the Rio Vista (Verano) development; and, authorize the City Manager to execute the Grants of Easement on behalf of the City. M.O. 2020-43 4. ITEMS PULLED FROM CONSENT C. Memorandum of Understanding with the City of Indio for Off-Duty Personnel at Special Events Recommendation: To approve a Memorandum of Understanding (MOU) with the City of Indio for the reimbursement of the cost of utilizing off-duty personnel and/or equipment at Special Events and authorize the City Manager to execute the document. Councilmember Ernesto Gutierrez would like to agendize a Study Session item to discuss this item to ensure that we are getting full recovery of costs. He also expressed his concern with the lack of benefit to our City. Interim Police Chief Crum stated that the MOU is designed to ensure we are getting full recovery of costs. We are able to bill the fully burdened rate for personnel and equipment. City Manager Charles McClendon explained that the personnel staff will be paid via Cathedral City payroll and the City of Indio would then reimburse the City for those costs. Mayor Pro Tern Gregory feels that this is a matter of Public Safety and the entire Valley benefits from having these events. Councilmember Mark Carnevale thanked both Councilmember Gutierrez and Mayor Pro Tern Gregory for their comments. He feels as long as this is not a demand on our Police Department he is in favor of moving forward with this item. M.O. 2020-40 A motion was made by Mayor Pro Tem Gregory and seconded by Councilmember Lamb to approve a Memorandum of Understanding (MOU) with the City of Indio for the reimbursement of the cost of utilizing off-duty personnel Cathedral City Pa g e 6 Printed on 3/19/2020 and/or equipment at Special Events and authorize the City Manager to execute the document. RESULT: APPROVED [UNANIMOUS] MOVER: Raymond Gregory, Mayor Pro Tern SECONDER: Rita Lamb, Councilmember AYES: Aguilar, Gregory, Carnevale, Gutierrez, Lamb 5. PUBLIC HEARINGS 6. LEGISLATIVE ACTIONS A. Second Reading of an Ordinance Adopting the 2019 Building and Fire Codes Recommendation: To conduct a second reading and approve an Ordinance adopting the 2019 editions of the California Building and Fire Codes with the requisite findings in support of local additions and amendments to the codes. Mayor Pro Tem Raymond Gregory stated that he is not opposed to the proposed ordinance, however, he is opposed to making the ordinance effective April 13, 2020. A motion was made by Mayor Pro Tern Gregory to table this item to be heard at the June 10, 2020 Regular City Council meeting. The motion died due to lack of a second. Ord 834 A motion was made by Councilmember Gutierrez and seconded by Councilmember Carnevale to approve the second reading of an ordinance, by title only, amending Title 8 of the Cathedral City Municipal Code by adopting by reference the 2019 California Building Standard Codes and certain specified appendices thereof, including the 2019 California Building Code, 2019 California Electrical Code, 2019 California Mechanical Code, 2019 California Plumbing Code, 2019 California Fire Code. 2019 California Energy Code, 2019 California Green Building Standards Code. 2019 California Residential Code, 2016 California Existing Building Code, 2016 Historical Building Code, 2018 International Swimming Pool and Spa Code, 2015 International Property Maintenance Code and making certain findings in support of specific additions, deletions and/or amendments thereof, adopting specified portions of the 1997 Uniform Housing Code. Cathedral City Page 7 Printed on 3/19/2020 RESULT: APPROVED [4 TO 1] MOVER: Ernesto Gutierrez, Councilmember SECONDER: Mark Carnevale, Councilmember AYES: John Aguilar, Mark Carnevale, Ernesto Gutierrez, Rita Lamb NAYS: Raymond Gregory B. Repeal and Readopt Chapter 5.80 of Title 5 of the City of Cathedral City Municipal Code Eliminating Safe and Sane Fireworks Recommendation: To introduce and provide first reading of an Ordinance, by title only, repealing Chapter 5.80 [Sale and Discharge of Safe and Sane Fireworks] (Sections 5.80.010 through 5.80.180) of Title 5 of the Cathedral City Municipal Code, readopting Chapter 5.80 of Title 5 as Reserved". Brad Anderson, Rancho Mirage resident, was called to speak. He stated that he is opposed to the City banning fireworks. Alan Carvalho, Cathedral City resident, was called to speak. He thanked the City Council and supports moving forward with the ordinance. M.O. 2020-04 A motion was made by Councilmember Gutierrez and seconded by Councilmember Carnevale to approve the first reading of an Ordinance, by title only, repealing Chapter 5.80 [Sale and Discharge of Safe and Sane Fireworks] (Sections 5.80.010 through 5.80.180) of Title 5 of the Cathedral City Municipal Code, readopting Chapter 5.80 of Title 5 as Reserved". RESULT: APPROVED [UNANIMOUS] MOVER: Ernesto Gutierrez, Councilmember SECONDER: Mark Carnevale, Councilmember AYES: Aguilar, Gregory, Carnevale, Gutierrez, Lamb C. Agreement with the Palm Springs Unified School District for Operation of the Cathedral City High School Swimming Pool for Public Use during the Summer Months of 2020 Recommendation: To authorize the City Manager to execute an agreement between City of Cathedral City and the Palm Springs Unified School District for operation of the Cathedral City High School Swimming Pool for Public Use, during the Summer Months of 2020. M.O. 2020-45 A motion was made by Mayor Pro Tem Gregory and seconded by Councilmember Lamb to authorize the City Manager to execute an agreement between City of Cathedral City and the Palm Springs Unified School District for operation of the Cathedral City High School Swimming Pool for Public Use, during the Summer Months of 2020. Cathedral City Page 8 Printed on 3/19/2020 RESULT: APPROVED [UNANIMOUS] MOVER: Raymond Gregory, Mayor Pro Tern SECONDER: Rita Lamb, Councilmember AYES: Aguilar, Gregory, Carnevale, Gutierrez, Lamb D. Contract for Services - 2020 Tejano Music Fest Recommendation: To approve a Contract for Service with Jay and Josie Diaz of Diaz Enterprises for the 2020 Tejano Music Fest. M.O. 2020-46 A motion was made by Councilmember Gutierrez and seconded by Mayor Pro Tem Gregory to approve a Contract for Service with Jay and Josie Diaz of Diaz Enterprises for the 2020 Tejano Music Fest. RESULT: APPROVED [UNANIMOUS] MOVER: Ernesto Gutierrez, Councilmember SECONDER: Raymond Gregory, Mayor Pro Tern AYES: Aguilar, Gregory, Carnevale, Gutierrez, Lamb E. Mike's Hard Lemonade Pop-Up April 2020 Recommendation: Staff recommends the approval of Special Use Permit#20- 007 with conditions. This item was pulled from the Agenda. F. Approval of Amendment Number One to the Reimbursement Agreement with CVAG for Ofelia Bringas Memorial Bridge (aka Cathedral Canyon Drive Bridge) Recommendation: To approve Amendment Number One to the Reimbursement Agreement with CVAG for the Ofelia Bringas Memorial Bridge (aka Cathedral Canyon Drive Bridge) Project which provides additional funding from CVAG for Project improvements in the amount of $681,272.58; and, authorize the Mayor to execute the Amendment. Alan Carvalho, Chairman of the Public Arts Commission, was called to speak. He suggested that the Public Arts Commission be allowed to give their input on projects of this size to help find ways to beautify them. M.O. 2020-48 A motion was made by Mayor Pro Tem Gregory and seconded by Councilmember Lamb to approve Amendment Number One to the Reimbursement Agreement with CVAG for the Ofelia Bringas Memorial Bridge (aka Cathedral Canyon Drive Bridge) Project which provides additional funding from CVAG for Project improvements in the amount of $681,272.58; and, authorize the Mayor to execute the Amendment. Cathedral City Page 9 Printed on 3/19/2020 RESULT: APPROVED [UNANIMOUS] MOVER: Raymond Gregory, Mayor Pro Tern SECONDER: Rita Lamb, Councilmember AYES: Aguilar, Gregory, Carnevale, Gutierrez, Lamb G. Approval of Contract Amendment 16 with CNS Engineers for the Ofelia Bringas Bridge Project Recommendation: To approve Amendment No. 16 to the Design Professional Services Agreement with CNS Engineers, Inc. to provide additional design services on the Ofelia Bringas (aka Cathedral Canyon Drive) Bridge Project at the Whitewater River in the not to exceed amount of$125,239.51; and, authorize the City Manager to execute Amendment No. 16. M.O. 2020-49 A motion was made by Councilmember Gutierrez and seconded by Mayor Aguilar to approve Amendment No. 16 to the Design Professional Services Agreement with CNS Engineers, Inc. to provide additional design services on the Ofelia Bringas (aka Cathedral Canyon Drive) Bridge Project at the Whitewater River in the not to exceed amount of $125,239.51; and, authorize the City Manager to execute Amendment No. 16. RESULT: APPROVED [UNANIMOUS] MOVER: Ernesto Gutierrez, Councilmember SECONDER: John Aguilar, Mayor AYES: Aguilar, Gregory, Carnevale, Gutierrez, Lamb H. Street Sign Blade Topper Policy Recommendation: To approve the Street, Neighborhood and/or District Identification Street Sign Blade "Topper" Policy. Alan Carvalho, Cathedral City resident, was called to speak. He feels that allowing Street Sign Blade Toppers allows for a sense of neighborhood pride. M.O. 2020-50 A motion was made by Mayor Pro Tern Gregory and seconded by Councilmember Lamb to approve the Street, Neighborhood and/or District Identification Street Sign Blade "Topper" Policy and direct staff to bring back a resolution establishing fees for the actual costs of the toppers at that time. RESULT: APPROVED [UNANIMOUS] MOVER: Raymond Gregory, Mayor Pro Tern SECONDER: Rita Lamb, Councilmember AYES: Aguilar, Gregory, Carnevale, Gutierrez, Lamb I. Reject Proposals for Cathedral City Community Amphitheater Sound System Cathedral City Page 10 Printed on 3/19/2020 Recommendation: To reject the proposals to furnish and install a sound system for the Cathedral City Community Amphitheater and request new proposals. M.O. 2020-51 A motion was made by Councilmember Gutierrez and seconded by Mayor Pro Tern Gregory to reject the proposals to furnish and install a sound system for the Cathedral City Community Amphitheater and request new proposals. RESULT: APPROVED [UNANIMOUS] MOVER: Ernesto Gutierrez, Councilmember SECONDER: Raymond Gregory, Mayor Pro Tem AYES: Aguilar, Gregory, Carnevale, Gutierrez, Lamb 7. CLOSED SESSION Eric Vail, City Attorney, announced that the City Council completed discussions on item 78. Conference with Labor Negotiator and AFSCME, CCPOA, CCPFA and CCFMA, and item 7C. Public Employee Performance Evaluation, during the Study Session portion of the meeting and will be reflected in the Study Session minutes of March 11, 2020. The City Council will return to Closed Session to discuss item 7A on the agenda. A. Conference with Legal Counsel - Anticipated Litigation Pursuant to Government Code Section 54956.9(d)(2). Number of Potential Cases: Two B. Conference with Labor Negotiator Pursuant to Government Code Section 54956.6 Agency Negotiator: Charles McClendon, City Manager Represented Employees: AFSCME - The American Federation of State, County and Municipal Employees CCPOA - Cathedral City Police Officers Association CCPFA - Cathedral City Firefighters Association CCFMA - Cathedral City Fire Management Association C. Public Employee Performance Evaluation Per Government Code Section 54957 (B) Title: City Manager The City Council recessed to Closed Session at 8:26 p.m. The City Council reconvened at 8:45 pm. Eric Vail, City Attorney announced that the City Council met in Closed Session to discuss item 7A. Conference with Legal Counsel-Anticipated litigation for two cases, there was no reportable action. ADJOURN Cathedral City Page 11 Printed on 3/19/2020 Mayor John Aguilar adjourned the Regular City Council Meeting at 8:45 pm. Mayor, Ci"+•�, ath:•ral City ity Clerk,Q of CaPhedral City Cathedral City P a g e 12 Printed on 3/19/2020