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HomeMy WebLinkAbout1986-03-13MINUTES ADJOURNED/REGULAR CITY COUNCIL MEETING THURSDAY, MARCH 13, 1986 CIVIC CENTER COUNCIL CHAMBER I. CALL TO ORDER Mayor Kelly convened the meeting at 4 p.m. II. PLEDGE OF ALLEGIANCE - Councilman Walter H. Snyder III. INVOCATION - Councilmember Jean M. Benson IV. ROLL CALL Present: Excused Absence: Councilmember Jean Benson Councilman Walter H. Snyder Councilman S. Roy Wilson Mayor Richard S. Kelly Also Present: Mayor Pro-Tem Phyllis Jackson Carlos L. Ortega, Assistant City Manager David J. Erwin, City Attorney Sheila R. Gilligan, City Clerk Kirby J. Warner, Director of General Services Steven Smith, Acting Director of Community Services Richard J. Folkers, Director of Public Works Mr. Frank Allen, Director of Code Enforcement V. CONSENT CALENDAR A. MINUTES of the Regular City Council Meeting of February 27, 1986. Rec: Approve as presented. B. CLAIMS AND DEMANDS AGAINST THE CITY TREASURY - Demand Nos. 86-083 and 86-085. Rec: Approve as presented. MINUTES ADJOURNED/REGULAR CITY COUNCIL MEETING MARCH 13, 1986 f * * f • s • * * ; * 1 * : * • * ; * f f * * • * C. CLAIM NOS. 012, 013. 014, 015. AND 016 AGAINST THE CITY by Terrance J, Sean Patrick, Maureen, Erynn Marie, and Emily Kyle, respectively, in the Amount of $250.000 each. Rec: Deny the Claim and instruct the City Clerk to so advise the Claimant. D. CLAIM NO. 017 AGAINST THE CITY by Mary McKinney in the Amount of $100.000. Rec: Deny the Claim and instruct the City Clerk to so advise the Claimant. E. APPLICATION FOR ALCOHOLIC BEVERAGE LICENSE by Wade Food Services, Inc. for Numero Uno Pizza, 72-795 Highway 111, Palm Desert. Rec: Receive and file. F. REQUEST FOR FORMATION of Claims Review Committee. Rec: By Minute Motion, approve the Claims Review Process, the formation of the Claims Review Committee and its appointees Carlos Ortega. Kirby Warner, and Sheila Gilligan. G. REQUEST FOR AUTHORIZATION FOR PURCHASE of One -Ton Utility Fiat Bed Crew Cab Truck. Rec: By Minute Motion, authorize the purchase of a crew cab truck appropriated in the mid -year budget, Account No. 4504-406, through the State of California Department of General Services in the amount of $17,500. H. REQUEST FOR AUTHORIZATION TO ADVERTISE AND CALL FOR BIDS for Contract No. 00-098 (1104) -- 1985-86 Street Repair Program. Rec: By Minute Motion, authorize the City Clerk to advertise and call for bids for Contract No. 00-098 (1104). 2 . MINUTES ADJOURNED/REGULAR CITY COUNCIL MEETING MARCH 13, 1986 * * . . * . * . . * * * . . . * * * * * . . * . . I. RESOLUTION NO. 86-29 - A Resolution of the City Council of the City of Palm Desert, California, Recognizing the Coachella Valley Industry Education Council as the Coordinating Agency between Education and Industry in the Coachella Valley. Rec: Waive further reading and adopt. J. REQUEST FOR APPROVAL of Temporary Construction Easement to McBail Company for construction and installation of a crib block wall, etc. Rec: By Minute Motion, approve the request and authorize the City Clerk to record said deed. K. CLAIM NO. 010 AGAINST THE CITY by Raymond G. Yates in the Amount of $1,613.50. Rec: Deny the Claim and instruct the City Clerk to so advise the Claimant. Councilman Wilson asked that Item "I" be removed for discussion under section IX of the Agenda. Upon motion by Snyder, second by Wilson, the Consent Calendar, with the exception of Item "I" was approved as presented by unanimous vote of the Council. VI. ORAL COMMUNICATIONS - A MR. STEVE HUGHES, 47-800 Madison Street, Indio, California, addressed Council as a former resident of Palm Desert Mobile Estates. He stated that the park owners charged a monthly fee of $3.50 for gas service even when the meter had been disconnected for summer absences. He quoted Rule No. 24 of the Public Utilities Commission which prohibited such charges but said that the Gas Company would not enforce i t . He asked if the City could assist him. Mr. Erwin responded that the City did not have any authority in this matter; the Public Utilities Commission did. Mayor Kelly suggested that the City Attorney's office look into it and if possible, the City could send a letter to the P.U.C. Mr. Hughes noted another problem at Palm Desert Mobile Estates wherein the park owner provided storage facilities in the rear 3 MINUTES ADJOURNED/REGULAR CITY COUNCIL MEETING MARCH 13, 1986 • a • • • • • • • • • • • a • • • • • • • • • • • of the park which created a great deal of traffic and noise' problems for the tenants of the park. Mr. Frank Allen responded that Title 24 of the State Housing Code mandated such storage facilities for the park's tenants. He suggested that Mr. Hughes write that office in Santa Ana and offered to provide him with the name and address. MR. VAN TANNER, 40-080 Silk Tree, Palm Desert, addressed Council in opposition to the Beer Hunter being allowed to occupy space in the new shopping development which was just constructed next to the Sagewood homes where he lived. He said it was too close to a residential area with many children. He said he had not been notified of any hearing where this use had been approved. Mayor Kelly stated that while the City was well aware of this concern, it had no authority to act on it. He suggested the gentleman write to the Alcoholic Beverage Control office of his opposition. VI1. RESOLUTIONS None VIII. ORDINANCES For Introduction: None For Adoption: None IX. CONSENT ITEMS HELD OVER I. RESOLUTION NO. 86-29 - A Resolution of the City Council of the City of Palm Desert, California, Recognizing the Coachella Valley Industry Education Council as the Coordinating Agency between Education and Industry in the Coachella Valley. Councilman Wilson asked for more information about why Council was being asked to adopt the resolution as well as about the organization itself. Mrs. Gilligan responded that all Coachella Valley cities had received the same request and 4 MINUTES ADJOURNED/REGULAR CITY COUNCIL MEETING 1* • MARCH 13, 1986 * * . s r * a • * • * offered to obtain more detail if Council chose to continue the request to the next meeting. Upon motion by Wilson, second by Benson, the request was continued to the X. meeting of March 27, 1986. NEW BUSINESS A. REQUEST FOR AWARD OF CONTRACT FOR ENGINEERING SERVICES FOR CONTRACT 00-100 (1100), WIDENING OF HIGHWAY 111 FROM EL PASEO TO BOB HOPE DRIVE. Mr. Folkers Caltrans for Mirage. He commencement stated that the City would contract with this project, with participation from Rancho said staff continued to shoot for an August of the construction work. Upon question by Councilman Snyder, he said that Riverside County Transpor- tation Commission had already approved funding. Councilman Wilson moved to, by Minute Motion: 1) Authorize the Mayor to enter into a contract with J. F. Davidson Associates in the amount of $110,940 and authorize a ten -percent contingency reserve for the contract in the amount of $11,094; and 2) appropriate $122,034 from the Street Capital Reserves Account. Councilman Snyder seconded the motion. Motion carried by unanimous vote. B. REQUEST FOR APPROVAL OF REVISED FLOOD INSURANCE RATE MAP FOR THE CITY OF PALM DESERT. Mr. Ortega reported that as a result of the issuance of this new map, Palm Desert, with the exception of the areas in the washes, would not be considered "flood prone". In addition, mortgage companies would no longer mandate flood insurance for loans and if property owners still chose to carry this insurance, they would realize a reduction in their rates. Councilman Snyder moved to, by Minute Motion: 1) Approve the Revised Flood Insurance Rate Map dated February 13, 1986, and direct staff to so notify the Federal Emergency Management Agency; and 2) direct staff to prepare an ordinance rescinding Ordinance No. 275 in 90 days if no appeal is filed. Councilmember Benson seconded the motion. Motion carried by unanimous vote. 5 MINUTES REGULAR CITY COUNCIL MEETING MARCH 13, 1986 XI. CONTINUED BUSINESS A. REQUEST FOR COUNCIL DIRECTION RELATIVE TO REQUEST FOR ANNEXATION BY LIONEL STEINBERG FOR AN 88.8 ACRE PARCEL AT THE SOUTHEAST CORNER OF MONTEREY AND GERALD FORD AVENUE. With no objection from Councilmembers or the applicant, Mr. Lionel Steinberg, Mayor Kelly continued discussion of this matter until the 7 p.m. portion of the meeting when Council - member Jackson would be present. B. CONSIDERATION OF AN ORDINANCE DEALING WITH THE HOURS OF OPERATION OF CONVENIENCE STORES. Mr. Erwin presented the Council with a proposed ordinance which would establish a policy whereby the City Council would have the authority, with factual circumstance only, to conduct public hearings and if a public nuisance was proven, limit the hours of operation for any business within the commercial district of the City. Councilman Wilson asked how a public nuisance would be defined, and Mr. Erwin responded that the City Council would have the necessary elements to declare a public nuisance in the hearing process. Upon further question from Wilson as to whether or not the City Council could put a business out of business by restricting the hours of operation, Mr. Erwin said that the Council would have to be reasonable and depending upon the factual circum- stance, there could be a case where these circumstances would warrant closing a business. Councilman Wilson said that the City had laws against public nuisances and felt there was a better way to handle problems than the process proposed. He noted that the proposed ordinance did not refer to a public hearing. Mr. Erwin suggested the words "after a duly noticed public hearing" be added immediately following the word "nuisance" in Section 1 of the ordinance. Councilmember Benson said she felt the ordinance would give the City an ability to correct a problem if needed. Councilman Snyder agreed inasmuch as it was broad enough to give all parties an opportunity to be heard. 6 MINUTES REGULAR CITY COUNCIL MEETING MARCH 13, 1986 • • • • • • • • • • • • • • • • • • • • • • • • • Upon motion by Benson, second by Snyder, Ordinance No. 455, as amended, was passed to second reading by a 3-1-1 vote with Councilman Wilson voting NO and Councilmember Jackson ABSENT. Councilman Wilson explained his vote by stating he disagreed in that he was not convinced the City needed it and would rather see problems taken care of through law enforcement than restricting people's rights to do business under normal regulations. C. REPORT BY CITY MANAGER ON ECONOMIC DEVELOPMENT COMMITTEE. Mr. Ortega stated he was not prepared to make a report in the City Manager's absence. He asked for a continuance to the next meeting. Councilman Wilson said the original recommendation had been made six months prior and was to be much broader than now recommended. He said the original intent was for this committee to be a small one which would review and advise on economic development throughout the City, not just the north sphere. He said there was much to be done; the City is getting projects everyday; the Planning Commission approved a hotel just last week. He felt this committee should already be formed and involved in this now. He said he would agree with the continuance if staff would come up with some preliminary names so these people could be appointed at the next meeting. Councilman Wilson moved to continue the item with specific direction to staff to present some preliminary names for appointments at the March 27, 1986, meeting. Councilmember Benson seconded the motion. Motion carried by unanimous vote. D. REPORT ON COUNCIL DIRECTION RELATIVE TO PALM DESERT COMMUNITY PARK RESTROOMS. Upon motion by Snyder, second by Wilson, the item was continued to the meeting of March 27, 1986, by unanimous vote of the Council. XII. OLD BUSINESS A. CONSIDERATION OF AN ORDINANCE REGULATING FOOD HANDLERS AS REQUESTED BY THE RIVERSIDE COUNTY HEALTH DEPARTMENT. 7 MINUTES REGULAR CITY COUNCIL MEETING MARCH 13, 1986 * * * * * * * * . * * * * * . * ■ * * * * * * .t Mr. Ortega stated that the County Health Department had addressed the Council at the last meeting asking its adoption of this ordinance. Council had directed staff to send a letter to all affected parties advising that this proposed ordinance would be discussed at this meeting and that public testimony was encouraged. Mayor Kelly invited public testimony, and the following spoke against adoption of an ordinance: MR. THOMAS MCLAUGHLIN, R. T. Foods, 75-155 Highway 111, Palm Desert, said the test required under the ordinance had been simplified to the point anyone could pass it, thus making it worthless. He said that the Health Department did not check identification when it gave the test, so one person could be designated as official test taker and then go pass it for everyone. He said the Department could not handle the inspection load it had now as evidenced by his business receiving only one inspection a year instead of several, and it should not consider taking on more. Last he said that the people being charged the $5. 00 fee were the ones who could least afford it when all it did was generate money for the County. MR. MIKE GARCIA, County Health Department, said he was the individual responsible for making at least 3 inspec- tions per year per business. He said that while he had experienced vacancies within his department which was running behind, they were being made. He reviewed the provisions of the ordinance that was proposed and upon question by Mayor Kelly, he answered that Palm Desert, Desert Hot Springs, and Blythe were the only cities not having taken such action. Councilmember Benson moved to continue the matter to the meeting of March 27, 1986, and to direct staff to investigate why other cities adopted this ordinance, how much thought, study, and public input went into their action, and whether or not they have assessed it to determine if it is working or interfering. Councilman Wilson seconded the motion. Motion carried by unanimous vote. B. REQUEST FOR APPROVAL OF AGREEMENTS FOR TROLLEY OPERATION AND RENTAL AGREEMENTS. MINUTES REGULAR CITY COUNCIL MEETING MARCH 13, 1986 Mr. Ortega said that this item had been continued to determine Riverside County Transportation Commission action. He reported that the Commission had recently approved this funding. Councilman Wilson moved to, by Minute Motion, approve Agreement No. 00-090, Trolley/Rental Agreement with Petar Jakovina, and Agreement No. 00-091, Operation Agreement with the Suniine Transit Agency. Councilman Snyder seconded the motion. Motion carried by unanimous vote. Mayor Kelly recessed the meeting at 6 p.m. for dinner, and reconvened the meeting at 7 p.m. He noted for the record that Mayor Pro-Tempore Phyllis Jackson, who was absent in the earlier session, was now present. XIII. COMPLETION OF ITEMS HELD OVER FROM 4:00 P.M. SESSION A. REQUEST FOR COUNCIL DIRECTION RELATIVE TO REQUEST FOR ANNEXATION BY LIONEL STEINBERG FOR AN 88.8 ACRE PARCEL AT THE SOUTHEAST CORNER OF MONTEREY AND GERALD FORD AVENUE. Mr. Steve Smith reviewed the staff report and recommended two options to the City Council: 1) to process proposed annexations and development plans with review by the consultant and specific plan review committee prior to the adoption of the plan; or 2) to withhold all processing until the plan has been completely adopted or a defacto moratorium. MR. LIONEL STEINBERG, applicant, said that with the extension of Monterey Avenue to Interstate 10 and the extension of Gerald Ford Drive, his proposed hotel project would be very important. He said the Planning Commission had approved his design and preannexation zone request. He said he had already waited nine months and to now wait for a consultant to be hired would cause him at least another 13 month delay. He said his project was lovely and in the best interest of the community. Councilman Wilson asked Mr. Steinberg if he was in support of Option #1 and if so, did he see any problem in processing his request and having the consultant say that it was not the proper zoning for this area. Mr. Steinberg 9 MINUTES REGULAR CITY COUNCIL MEETING MARCH 13, 1986 * * * * * * * * * * * * * * * * * * * * * * * * * responded that he had confidence in his request and in the opinion of the Planning Commission which had approved it. Councilmember Jackson said she was in favor of Option #1 as timing was so important, and she was sure Mr. Steinberg was looking at the financing future. She said Mr. Steinberg was a pioneer in the Valley who had shown his interest over the years as being in the best interest of all. Councilmember Benson said she had trouble understanding staff's philosophy when it had been agreed that the consultant hired would have a free hand in determining what should be done out there with no input from Council, staff, or anyone. How could he or she be objective then when shown an approved hotel that should be worked into that corner. She felt it defeated the whole intent of hiring the consultant. She said the City had gone to a great deal of trouble over the last ten years in keeping things the way we want them. Now she felt the City was just letting the area build out when it didn't have to play catch-up with any other city. Councilman Snyder said that while he agreed with all statements made, he felt an obligation to Mr. Steinberg who had worked diligently with the City in the establish- ment of the assessment district which was now providing extension of a great number of streets at no cost to the City. He said he felt Mr. Steinberg had been dealing in good faith, and the City should now do the same. Councilmember Jackson moved to instruct staff to implement Option No. 1. Councilman Snyder seconded the motion. Motion carried by a 3-2 vote with Councilmembers Benson and Wilson voting NO. XIV. ORAL COMMUNICATIONS None 10 1• MINUTES REGULAR CITY COUNCIL MEETING MARCH 13, 1986 * . . . . . * . * . * * . . . * . * * * * * . . * XV. AWARDS, PRESENTATIONS, AND APPOINTMENTS A. CONSIDERATION OF APPOINTMENT to the Park 8 Recreation Commission to Fill Vacancy Created by Resignation of Mr. Frederick Thon. Councilman Snyder moved to continue the appointment to the meeting of April 1 0th and to ask each Counc i l member to submit by Tuesday, March l8th, two names of individuals to be interviewed for this position, said interviews of two individuals to be conducted at 5:30 p.m. March 27th. Councilman Wilson seconded the motion. Motion carried by unanimous vote. XVI. PUBLIC HEARINGS A. REQUEST FOR CONSIDERATION OF APPEAL BY DALE AND PAMELA SMALLWOOD OF A PLANNING COMMISSION DECISION TO REQUIRE AN ENVIRONMENTAL IMPACT REPORT FOR C/Z 85-12, PP 85-47, 572 UNIT SENIOR HOUSING DEVELOPMENT AND POTENTIAL 180 BED SKILLED NURSING FACILITY ON 23 ACRES ON THE NORTH SIDE OF FRED WARING DRIVE, 1400 FEET EAST OF COOK STREET. (Continued from the meeting of February 27, 1986.) Mayor Kelly declared the Public Hearing open and asked for staff's report. Mr. Steve Smith reviewed the report and recommendation. Mayor Kelly invited testimony from the applicant. MR. PAUL SELZER, Best, Best 8 Krieger Law Firm, spoke on behalf of Dale and Pamela Smallwood and against the Planning Commission's requirement of an environmental impact report. He described the CEQA guidelines concerning when an EIR is required. He said it was only when there is substantial evidence submitted indicating that there will be a significant adverse impact for which there is no known mitigating measure. He said that Indian Wells had raised several questions -- drainage, widening of Fred Waring Drive, a bridge which were opinions and not evidence. He concluded his remarks by stating that his client could mitigate all concerns raised. Mayor Kelly invited testimony in FAVOR of the request: 11 MINUTES REGULAR CITY COUNCIL MEETING MARCH 13, 1986 a • a * f • ■ • r • a a f r f t ■ s s s s r s s s MR. ALAN MARTINI spoke in favor in that residents initially lived in apartment units but could be moved to the care facility if needed. MR. VAN CADENHEAD, Executive Director of the Senior Center, said this type of facility was badly needed in the community. He said the Center received about 100 inquiries a month, and they had to respond that not much was available. He encouraged Council's support. A representative of the Seniors Legislative Group, 873 San Lupas, Palm Springs, who did not give her name spoke in favor and said that senior housing should be a top priority in Palm Desert. Mayor Kelly invited testimony in OPPOSITION, and none was offered. He declared the hearing closed. Councilman Wilson said he felt Mr. Selzer's point a valid one that the environment is not affected. He said perhaps a more: focused EIR such as on traffic should be required and that maybe it should be sent back to the Planning Commission asking it to evaluate it with input from Indian Wells and citizenry as to whether or not this is what we want on this site. Councilmember Benson said she was concerned about the whole area as it was another entrance into our city. She felt the Commission should review the request as a project. Councilman Snyder moved to grant the appeal and send the matter back to the Planning Commission for further consideration and study on the facts presented to the City Council. Councilmember Benson seconded the motion. Councilman Wilson asked if granting the appeal would close the door to a focused EIR. Mr. Drell responded it would not; the Commission could require it. He stated, however, that there was a 45-day limitation in which the City Council must act. Mayor Kelly asked if the applicant was willing to waive the 45-day limitation. Mr. Selzer responded the applicant was not. Upon Mayor Kelly reopening the public hearing, MRS. PAMELA SMALLWOOD addressed Council saying the Commission had 12 MINUTES REGULAR CITY COUNCIL MEETING MARCH 13, 1986 i i f * * * * * * i f i * i f * 1 i * i i f f ; i sufficient time in which to make a decision in that the application had been filed in November. Councilman Snyder withdrew his motion, and Councilmember Benson withdrew her second. Councilman Wilson asked the applicant if she understood the motion would allow the Commission to review the project itself as well as consider a more focused EIR such as a traffic study. After conferring with his client, Mr. Selzer said she had reconsidered and was willing to waive the 45-day limitation. Mayor Kelly declared the hearing closed. Councilman Wilson moved to refer the matter to the Planning Commis- sion for reconsideration of its original decision with regard to the requirement of an Environmental Impact Report in light of the additional information brought to the City Council. Councilmember Benson seconded the motion. Motion carried by unanimous vote. B. REQUEST FOR CONSIDERATION OF AMENDMENTS TO THE PALM DESERT MOBILEHOME RENT REVIEW ORDINANCE (NO. 329) AND ADOPTION OF A REGISTRATION PLAN AND FEE SCHEDULE. Mayor Kelly declared the public hearing open and asked for staff's report. Mr. Patterson said that the Rent Review Commission had been considering these ordinance amendments since last August and had held several public hearings in the process to make sure that anyone wishing to give testimony had the opportunity. He noted that the primary questions deliberated by the Commission had dealt with: 1) whether or not the ordinance should continue in effect which resulted in Commission recommendation for deletion of the expiration date; 2) revisions to the ordinance and its guidelines to deal with several problems and difficulties that have come up over the last three years as well as changes in the law which can now be applied. He reviewed each such amendment as recommended by the Commission as well as its justification for each; 3) whether or not to change the allowable automatic increase from 75% of CPI to 100% which the Commission recommended be changed to 100% in accordance with testimony and arguments it had heard; 4) whether or not to change the percentage of CPI in the Net Operating Income Theory from 509. of CPI to 1007. of CPI which again the Commission recommended be raised to 100% 13 MINUTES REGULAR CITY COUNCIL MEETING MARCH 13, 1986 * • • • • • • • * • • • • * • • a • * • * • • • • because of arguments or testimony that convinced the Commission members it should be. Mr. Patterson reviewed each recommended revision to the ordinance and guidelines as well as the proposed Registration Fee Schedule. He recommended Council's adoption of same. Mayor Kelly invited public testimony, and the following spoke: MR. SABBY JONATHAN, Chairman of the Rent Review Commission, said the Commission had worked with the ordinance and guide- lines for three years and the recommendations were made based on the experience gained during that time. He said the intent of the Commission was to carry out the provisions of the ordinance with equity to all. He said the recommendations made would eliminate the gray areas of the law and make it easier to work with. He concluded by stating that many hours of consideration had gone into the recommendation and he urged Council's adoption of same. MRS. RUTH WALLIS, 27 Flying F Drive, Palm Desert, spoke on behalf of Golden State Mobile Owners League and asked that Section 9.50.060 of the ordinance be amended to limit park owners to one raise per year in that one was enough. MR. KEN PAYNE, 49-305 Highway 74, Palm Desert, spoke against recommended increase in percentages of the CPI in that they were reasonable now. MR. HAROLD FONT, 22 Diamond Street, Silver Spur Mobile Manor, addressed Council as a CPA and submitted a proposed amendment to Section 105 of the Guidelines as follows: "Schedule of Increase in Operating Expenses: Where scheduling of rent increases, or other calculations require projections of income or expenses, it shall be assumed that operating expenses shall be the same as the immediately preceding year. Increases in individual expenses must be justified on an item by item basis and in no event may an expense be increased by more than 1 07., except property taxes, which is limited to an increase of 27., and management fees which are limited to 57. of gross income." MR. RON NEHRENZ, 27 Pampas Lane, Palm Desert, read a prepared statement (attached hereto as Exhibit "A") arguing against the increase in percentages of CPI. He noted that Mrs. Wallis had, 14 MINUTES REGULAR CITY COUNCIL MEETING MARCH 13, 1986 * . * * * * * * . * . . . . . * * . . * . . * . . prior to the meeting, presented the City Council with copies of a published argument against it (attached hereto as Exhibit "B"), and he hoped Council would concur with this argument. MR. FRANZ FISHER, Realsearch Corporation, referred to his letter of January 3, 1986, (attached hereto as Exhibit "C") which supported raising the percentages of CPI to 100% in both the ordinance and its guidelines. He presented his argument in support. MR. JAMES GOLDSTEIN, owner of Indian Springs Mobile Home Park, said he had received two increases in two years which totaled $40 per space. He said his expenses had increased beyond that which he had been allowed to increase his rent and the proposed increase in the allowable percentages of CPI would offset this. He urged Council's adoption of the recommendations made by the Commission. Upon question by Councilmember Benson, Mr. Goldstein said that approval of the increased percentages would not preclude his coming in for a hardship rent increase annually. MR. JIM JOFFE, Property Manager of Leasco, which manages Silver Spur Mobile Manor and Portola Mobile Estates, named several other cities he felt allowed the 100% of CPI in both cases. Such cities were Laverne, Ventura County, Chino, San Jose, Oceanside, Westminster, and San Bernardino. He said that most other cities having rent control did not limit the number of increases per year. He urged Council's adoption of the recommendations made by the Commission. MR. CHRIS BLAISDELL, 76-200 Fred Waring Drive, Palm Desert, spoke against the Council's adoption of the proposed registra- tion fee schedule in that he felt the City should provide rent control as one of its services. With no further testimony offered, Mayor Kelly declared the hearing closed and ordered a five-minute recess. Upon reconvening the meeting, he complimented everyone involved with this review process. He said the Rent Control Commission was to be highly commended for its time and effort in a most difficult task. He appreciated the concise and orderly presentation made by Mr. Patterson. 15 MINUTES REGULAR CITY COUNCIL MEETING MARCH 13, 1986 * * * * * * * * * * * * * * * * * * * * * * * * * The following amendments (indicated by ** preceding them) were suggested and subsequently included in Council's motion for introduction of Ordinance No. 456. * * Councilman Snyder suggested that Section E of Section 9.50.040 be amended to include "subject to the approval of the City Council" at the end of the first sentence. Councilmembers individually concurred. Council member Benson said she had attended almost all of the Commission meetings as Council liaison. She had been present for testimony and arguments both for and against the increase in CPI percentages. She said she agreed with the arguments presented against the increase. Councilman Wilson concurred and stated that while the Rent Review Commission did not have the benefit of the most recent argument against the increase as presented to Council by Mrs. Wallis, it could review it at a future meeting and if it still felt strongly about the increase, make a subsequent recommendation for ordinance amendment in the future. Mayor Kelly said he felt that hardship increases should be granted only in the case of extraordinary circumstances such as hurricane damage, increased insurance rates, etc. He felt the percentages as proposed should remain as originally written in 1983 as they reflected equity and fairness. ** Council member Benson suggested that Section 9.50.060 of the ordinance be left at "shall not exceed three-quarters (3/4ths) of the increase in the cost of living as indicated in the Consumer Price Index." Councilmembers individually concurred. ** Councilmember Benson suggested the following amendment to Section 9.50.040 of the ordinance: " Terms of office be established for the Commission of four years each." She suggested that the entire Commission be subject to review in January, 1987, with the stipulation that the City Council will reappoint at least two of the current members and at the time of these appointments, with the provision that staggered terms will be given so as to preclude terms of a majority of Commissioners expiring at any one time. She said this had been overlooked in the original formation of the Commission and this amendment would bring it in line w ith all other City committees and commissions. Councilmembers individually concurred with Mayor Kelly noting that all Commissioners could conceivably be reappointed. 16 MINUTES REGULAR CITY COUNCIL MEETING MARCH 13, 1986 • • • • • • • • • • • • • • • • • • • • • • • a • * * Mr. Patterson noted that all items underlined in the proposed ordinance were being added and all sections showing an overscore were being deleted. Councilmembers individually noted their understanding of these markings. Upon motion by Wilson, second by Benson, Ordinance No. 456, as presented by the Rent Review Commission and amended as set forth above, was passed to second reading by a 4-0-1 vote with Councilmember Jackson ABSENT. The following amendments (shown by being preceded by **) were suggested and ultimately included in Council's motion to approve the recommended revised Guidelines: * * As a result of previous discussion under consideration of the new ordinance, Councilmembers individually stated they saw no justification to increase the current 50%. of CPI in the Net Operating Income Theory to 1 009.. Mr. Patterson presented justification for inclusion of an amortiza- tion schedule for capital improvements. * * Councilmembers individually agreed with the addition of an amortiza- tion schedule to Section 102, C-1-i, of the Guidelines. * * Mr. Patterson noted that all items underlined in the proposed guidelines were being added and all sections showing an overscore were being deleted. Councilmembers individually noted their understanding of these markings. ** Mr. Patterson stated that Section 106 of the Guidelines had originally been included because the NOI Theory was being challenged in the Supreme Court and thus the City had to provide other alterna- tives. He said since then, the Supreme Court had ruled the NOI Theory to be fair and just return; thus the recommendation from the Commission for deletion of this section. Councilmembers individually concurred with the deletion of Section 106 of the Guidelines as recommended by the Commission. Councilmember Benson moved to approve the recommended revisions to the Guidelines with the additional amendments by Council as set forth 17 MINUTES REGULAR CITY COUNCIL MEETING MARCH 13, 1986 • a a a a • • • • • • • • • • • • • a • a a a a • above. Councilman Snyder seconded the motion. Motion carried by a 4-0-1 vote with Councilmember Jackson ABSENT. Councilmember Benson moved to waive further reading and adopt Resolution No. 86-30 establishing a Registration Fee Schedule. Council- man Wilson seconded the motion. Motion carried by a 4-0-1 vote with Councilmember Jackson ABSENT. C. CONSIDERATION OF REQUESTS FOR USE OF COMMUNITY DEVELOPMENT BLOCK GRANT MONIES. Mayor Kelly declared the public hearing open and asked for staff's report. Mr. Ortega distributed a letter from the Riverside County Coalition for Battered Women requesting assistance for a home they were trying to provide in the community. He then reviewed staff's report and recommendation. Mayor Kelly invited public testimony, and none was offered. declared the public hearing closed. Councilmember Benson moved to, by Minute Motion, confirm the City's use of 1986/87 Community Development Block Grant entitlement monies for payment of the Public Facilities Loan to the College of the Desert's Child Care Center and Training Facility and consider any other requests which may qualify for the program's economic development and housing loan's fund. Councilman Snyder seconded the motion. Motion carried by a 3-1-1 vote with Councilman Wilson ABSTAINING because of his professional association with the College of the Desert and Councilmember Jackson ABSENT. Councilman Snyder said that while he voted for the motion, he felt that in other years Council had been given more than one option. XVI. ORAL COMMUNICATIONS - B None XVII. REPORTS AND REMARKS A. CITY MANAGER 1. INSURANCE FOR CITY VEHICLES 18 0 MINUTES REGULAR CITY COUNCIL MEETING MARCH 13, 1986 • • • • • • • • • • • • • • • • • • • • • • • • • Mr. Warner advised that Lewis and Hannon had notified the City that its insurance on vehicles would be cancelled on March 15th. At the same time, a quote was received for similar coverage at a 300% increase in cost from another carrier. He recommended that the City Council authorize self-insurance and that claims be paid from existing self-insurance reserve fund. Councilman Wilson moved to authorize the self insurance of City vehicles for comprehensive and collision coverage and payment of claims from the existing self-insurance reserve fund established for liability coverage. Councilman Snyder seconded the motion. Motion carried by unanimous vote. 2. BUDGET PHILOSOPHY SESSION Mr. Ortega announced that the Council would meet in adjourned session on Thursday, March 20th, at 4 p.m. for the purpose of reviewing and setting a budget philosophy for the 1986-87 fiscal year. 3. CIVIC CENTER MASTER PLAN PROPOSALS Mr. Ortega reported that proposals for consulting services to plan the 62-acre site of the Civic Center had been received. He recommended that a committee be formed to review these proposals and select three or four for interview. He recommended that he, Dave Yrigoyen, his assistant, the City Manager, the Director of Community Development, a City Councilmember, and a Planning Commissioner be appointed to this committee. Upon concurrence of the City Council to the formation of this committee, Mayor Kelly volunteered to serve and asked Mr. Diaz to have the Planning Commission select a member to do the same. B. CITY ATTORNEY None 19 MINUTES REGULAR CITY COUNCIL MEETING f * * f * * * * C. MAYOR AND MEMBERS OF THE CITY COUNCIL 1. DESERT FALLS COUNTRY CLUB LANDSCAPING MARCH 13, 1986 Mayor Kelly asked it there was anything the City could do to get the landscaping of this project along Country Club reinstalled and subsequently maintained until such time as a new owner takes over. Mr. Erwin responded that his research had shown that all bonds for public improvement were still in force. He said that as far as he could tell, the City had never accepted any of the improvements for maintenance; thus the bonds were never released. While they were not for maintenance, he, said the City did have the ability to insist it be reinstalled by the bonding company, and he was prepared to write a letter to that affect. Upon question by Councilman Wilson, Mr. Erwin responded that this was not part of an assessment district but that it could be annexed after such time as it was brought to acceptable standard. Councilman Wilson moved to direct the City Attorney to write a letter to the bonding company with a demand that the landscaping be brought up to an acceptable standard. Councilmember Benson seconded the motion. Motion carried by unanimous vote. 2. CHASEN CENTER Councilmember Benson said that motorists had trouble getting out of the Safeway Shopping Center, Phase 2 of the Chasen project, and she felt that better signage should be provided by the developer. Mr. Folkers responded that staff had already requested this, and the developer was going to put signs in. 3. CAPITAL IMPROVEMENT PROJECT SIGNS Councilman Wilson said that someone suggested a long time ago that signs be put up by our major capital 20 MINUTES REGULAR CITY COUNCIL MEETING MARCH 13, 1986 improvement projects that say "Your Tax Dollars At Work -- Sorry for the Inconvenience." He said he thought it was a good idea when it was first brought up and still did. He suggested something be written into the City's contracts requiring contractors to provide same. Council concurred, and Mr. Folkers said staff would comply. XVIII. ADJOURNMENT Upon motion by Wilson, second by Snyder, and unanimous vote of the Council, Mayor Kelly adjourned the meeting to 4 p.m. on Thursday, March 20, 1986. ATTEST: SHEILA R. GiLLIGAN, Y CLERK CITY OF PALM DESERT CALIFORNIA 21 RICHARD S. KEELLY, MAYO MINUTES REGULAR CITY COUNCIL MEETING MARCH 13, 1986 EXHIBIT "A" Mayor Kelly and Members of City Council ; My name is Ronald W. Nehrenz. I live at 27 Pampas Lane, Silver Spur Mobile Manor. I have had the opportunity to carefully review the revisions in the Proposed Rent Control Ordinance. I concur with all the statements of the former speakers for the Homeowners. In addition I feel that one of the strongest arguments in favor of retaining the 3/4% and 50% of the CPI clauses in Ordinance and Guidelines is that under the present law the Park Owners have maintained a net operating income of well over 50% and a fair return on their investment. In March of 1983 my base rent was $229.00 and under rent control it is now $254.75. During this time the pass- throughs have increased from $9.00 to $12.50. These increases do not provide for capital improvement. Also CPI increases are not limited to the Owner. We property holders are also faced with the same increases and the same type of expenses. If Owner does not credit us for any of these expenses neither should we have to absorb the full amount of his increases. As an operating business Park Owner receives many tax benefits we are not permitted; for instance the $5.33 insurance raise which was not introduced at the time of our hardship hearing but was added on day decision was rendered and was incorporated in a raise which was made retroactive five months before the actual increase. However, the Owner did not refund the $10,000 he collected from May to August, 1983 when rents were ordered rolled back under rent control. These are now ex post facto items but do point up the Page 2 Mayor Kelly and Membt of City Council EXHIBIT "A" fact that as many loopholes as possible should be addressed in our Law and Guidelines rather than left to the discretion of personal judgements by Rent Review Board Members. To do less places an unfair burden on citizens who are willing to serve on the Rent Review Board because their decisions affect the livelihood of many people. Capital Improvements is defined in the Law as all expenditures which are required to be "capitalized" rather than 'expensed" for state or federal income tax purposes. We feel definite Guidelines should be established for allowable Capital Improvements. We are a shared community of two property owners. There is no reason why we should pay for all Capital Improvements which have an extreme tax advantage to park owners in that they can be depreciated. Homeowners or residents receive absolutely no tax benefit. In addition, Capital Improvements always improve the condition of the property and park owner recoups his investment many times over his initial cost when he sells the property. Granted, these improvements also increase the value of our homes but inasmuch as rents are also increased because of them we in essence pay for them more than once with no actual tax benefit. Section 102-C (i) of Guidelines as now proposed guarantee that the cost of these installions will be passed to the homeowners. To do this without permitting homeowner to vote on improvements or portion of s&ne to be paid by homeowners is tantamount to giving the park owner a Carte Blanche credit card to use for improvements to be paid for by Homeowners. REGULAR CITY COUNCIL MEETING EXHIBIT "A" Page 3 Mayor Kelly and MEmbers of City Council Ha!u,f I J, We believe Capital Improvements should be established as "Capital Expenses necessary for the health or safety of the homeowners shall be permitted. They shall be amortized over the useful life of the improvements. No other capital improvements shall be allowed unless approved by a majority vote of the homeowners, which vote shall encompass portion of improvement to be accepted by homeowner." We sincerely appreciate the time and effort you have expended in our behalf and will appreciate your further careful perusal of -all material submitted for your consideration re the Amendment of this Ordinance. Thank you. r &-ioeteed `7770,4,/ / / 9 ef-' g6 m• /-,- - t1PRpN �3' A 3 s• `., s3 x -6 0� n G- " .6 O£ 4�, W .. • 7 9i .t �jr tgh W BI %x� ^ W f G, Z• O, N 4n,, i r f 0 :, � SSLzrrr .+ �+ y y �} . 3 ? C; T ING : c• •r N V �. ' '� n J % j� G A *. U�ES ,� pppNpZL '10 .. �. ets 3 3 cvAv 'co G- n Ot �4 0 p^ '� 'r• S O A n J�?'J.,Pp •A^ N d J• 0.1) n ." A ;i •l Z W ry y > •' i x, p'• �.. i r ^ W W n W '-� ✓ 'v .t v V• O w . ", ' 't .. �^ ^✓ r W O S. W S. N i V. O' .p n ' r O n "t W✓ j j, 0 ..i ^+ i S' i N A �•f A'3• Ar} 3 Oi tf a„„ N i G r �j n "J i �•, i rt n G n •:n •' r n W n Qtr, �� O. 0 ti y G A L ^ ..! ... . r. ✓ i ? .p �i et • . yr co `, a, v' G 9 n P N Wi �'0.r.✓�i f . A "Q 7 •• ell ^ aj Wr. n �j ^ ^ •n N S 1 � y' n 0. 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'q n o s y a 3 141 i• g p y 'n,�Si x? y v •-sc n i y , fi▪ _ oCODO 'a Z o la a• ., y ,-•- n"R 1 = 0 ^ C N 7 7' c 1 7a H "C n- 1- • _ o � • ? ; R ' - • .� ' ?C 51 r O _ ^ - •--•' '0 .may? ;.4,‹r y 4' ' _ ▪ - V ' I t, • �.. Ja n Z !C m x 101 4 g • i f i • I i f .., . . - 1 f • 3 • a i 1 i Of W N N • 3 p �. N O IC x x x x x x x x W m ca at 8 O cn N 11 II II 11 11 !1 11 1OH1NO0 1N3b MARCH 13, 1986. m EXHIBIT „g,�, n e17' °' A A sty, •, A A INUTE5 Iwo le ��•,C:-�Aya• f•1EET I PdG y w °i o�, CITY COUNCIL C^ �' .GULAR m+ off' 3 Ta _� K ='�.0 3' a �, N S. s'�o n o > �. tt)7 0 ��=� o{' 3 �3o a-;cam-��=��^33. ?=°r°-yw�'° N J :. '� f' A 74 n c. y r' y �3 r A % C1 y L'S y O �. ty •C� n 3 O 4• : S ?' A es 7 A �' O• � Ctz. •n y' O. 9 �' �•t 7 d +♦.. C. .fir. A `'� A 3 A -- �- 7 tic A rr • cn 1 y +/ ;It f '� �, =. ► A� ^, ',y V� O. n w �, n ..O �, A U' y t H 7 : n 7.i. r A .) O x' A= y A ..4 IA O C 3 S P O O 3 '' 24 0 Z. 7 p7i ~ C1,.. Y. as ? ' w..� A O n r ? y ��, ... ta Cr n 9Z n 2. 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',' o ^ 3 3• 03 dit1.0 r7 N n I r �. /; i• 7 n 36 s . y, eI 7j . 3 ...1 = 4.r T+ -• K % t i 7 A00, i• % i 0* 4 I ry • ...• i ^ r"i ♦ • r- I r n r r %. inG :" • I .0 •..f f „, ,G • i . • U t: • -. „• • r •Is. r .. % n• '. t.� i Op. w3 I B K r 1 11 11 EXN� 8--- MACH 13, 1986 7• N .E.h 4 r R 3 -,. r p. y i. ... diin. 0 A 7' 0.0 ... s 7 n Nei :. 3Y• y .� �+Q� A "G �j n �y to• ♦ ♦• 0 lc «• i G�' �`JjO v D; a 0. yC 't '^y � •sr -•-•i_� Yvrt nenii Af... V- G. n^d i?Jn . ♦ � A. ..n 4. 7 Aj, n ; . - y 0.5 O�nl Sif a'i +..•'1 Y. � y •.i 0 7 „ r'LA '" r j 'A y I yA r n yI,, ,,., ni A A r•- .7, in GA yr.S t ♦• A :a n r. I %, .% .. , tJ` V G ar. n Y C '3n d y y C .G wr„ �1 i '� 3 i G ,. ^.� ..., % "� .J4 '+� -G N G^ �. +' N ,P 'L %�.♦ •. ..0 ••y r .... '' .' A i•• ^ G. S i j..^..Gn1n ych, t i. iYj7!nv� i i" ^y%n ii nn ?- ra �'•A n a G 0.nr!A 70- 0 y.• /,- a i';1 .f. ?wIt n✓dp-^ . 0. Yyn^ . i0 ri 'U .:. y . .� q. 1� yi H ' • N. n G O. ^ 77A'. r I :$ . i+ rw . .i • "CA.t „ .♦ r r 0- : -O i S. r ♦„ r ♦ , t I n y r Jo .S .- .y S O '? i. • n A h j �j d r i i 70 G 3 �.�' or i 1 el or I• t 7 r•• n ' .. y IA '.� . ' ' ' 0. ..'• • G r • G r y•I r a ♦onn „ • ` i y—, ..ti, v 3 If'„r- y i; �. ..� 'T y q� '� oc CY 93 �. '�' ti v S. .! '� rj i r1 '� i . .p r N, ♦ 1 l� r / j ! i iI i n . ^ / 7 ct la 7'0. 0. ,' �- 74 J • ..... I.• .♦•. Y.A. t A • i h .s A i• 'Sri, I -� N i t.i. ' r.'. .' •• .q I .' %- i .1 140. f • 'r �♦.. yN .� a .- A ; • .. . •� • r� - n �' ,• 7� r N ti '�" IA ..' .4 G ^ CI i .' •� S. 7 t•.7 '`. X Ii.' ,'.,.. so, 7 '. i .".. n 7� .r i ti 7�; ♦^. 'r M 1A la n • r •` i r• ✓ i G r: •s02. ^ i y i + r= i ' r. A ♦ i r 'r. A 7 r i• 73 A i V Ii A. • i ,� ,f�•• =a !• r- r i r• •. ^. .j r_ r 'JG yt •„., a„ :• • � c •♦ = .2 (`:i'.% •^•ems f - • ,. I •f >; •- i i ce•► .. ` 7 i • % ~ ii "• •�. A %� '. ♦ C'. '• .: n i I ♦ ... yp ¢ i t ♦ 0., .0 i • A. i ♦ x • ..•• .. ... ti . I ♦ „ i i :t :. ,.• ✓ Cor :n .i jr y Ate, r: i N G `.t i '� r• " •p i, ! i ! r: J ,. I mo. ,� �,. ^• I 'i !� r ..• .+ v .+ / I: Z.• -.t, y ^ .• r1 < ♦ '.t•'� i, 't .. ♦.• i : .; •p-, � '1. r i i N A 01 J+ r r i ti ✓ '► V. 3 • n "'mi) •w 7'Q . ♦ 7„ r ?`. '� y i eY r i .' ♦ • „ w i • •.' A• �1 i I. y i }? A . G A n A i 9 w :. v ' 7ad : 't 74 r. r r 'i ... w+ �• C 'M,j, ', A„tr „ 'n ^ / '7L+ �.... �•i p. so Is LA s i .+ A �. i• .� i r� i "� .4. ..c An it 7 0 r �' 7 A> ^ r y. o .° �p b J '�' 3^ i S I. A r i .i ir. i i . % A 0 „ / T. r� r . ' i• A t r r, r • n h Rt yam% • 3 6 1 /y y r: aG ♦ r , -ss ..s x - 0.5•?n Coo 9.-t'C i 3 ---''�n • 14 • - tt t2 tt � r- .,--- REALSEARCH CORPORATION REAL [STATE !RECEIVED APPRAISAL CONSULTATION. FINANCE • INVESTS JAN 13 p(I 3 20 January 3, 1986 Mr. Jeff Patterson City Attorney 74090 El Paseo Palm Desert, CA 92260 CITY CLERKS OFFICE Res Application of the Consumer Price Index to Net Operating Income Maintenance Formula Dear Jeffs It is ray understanding that at one of the previous Palm Desert rent control hearings the modification of the net operating income maintenance formula for mobile home parks was discussed and that you made reference to my name with regard to the appli- cability of a percentage of the C.P.I. to the net operating income. Based on the third hand information before me, your statements were incorrect and I would like to, therefore, state what I have proved several times in various hearings to you and other hearing officers and boards. Applying less than 100% of the C.P.I. to the net operating income in a net operating inccome maintenance formula would be resulting in an "automatic taking" from the park owner. The several ex- amples worked through for you in the past indicated that inten- tionally or inadvertently any formula that allows less than the full C.P.I. application to the rent or net operating income provides that allowable rent increases will lag further and further behind increases in the cost of living. This can be demonstrated by example. Suppose that the C.P.I. increases 5% per year over a 10 year period. If the owner's Net Operating Income (N.O.I.) is also allowed to increases at 100% of the C.P.I., then his true N.O.I. in REAL dollars will remain the same, as shown in example *1 belows GIBMP1.E IL Sags eslaustmtnti CPI N.O.I. in Profit in Inflated Dollars REAL Dollars Year * 1 Year *10 REAL Change 100 163 f 10,000 $ 16,300 t 10,000 $ 10,000 s=:a= (0) .100 SILVER SPUR ROAD. SUITE 310. ROLLING HILLS ESTATES. CA 90174. 12111 $A1.11 12 EXHIBIT "C" r MARCH 13, 1986 i IEALSEARGI CORPORATION. Mr. Jeff Patterson Page 2 January 3, 1386 However, if the owner's N.O.I. is adjusted by only 50% of the C.P.I., then his true profit in REAL dollars will have decreased substantially over. the 10 year period, as shown in example *2 below: gX 1PL.g S ift e iM8t am t )- C.P.I. N.O.I. in Profit in Inflated Dollars REAL Dollars Year * 1 Year *10 REAL Change 100 163 g 10,000 1� 12,800 ! 10,000 f 7, '900 �sss�ssssss <% 2, 1003 Thus the owner's N.O.I., in REAL dollars, will decrease 21% over a 10 year period, if he is permitted only 50% of the inflationary increases (assuming 5% annual inflation). It is my understanding that the purpose of the net operating income maintenance formula is to maintain the property owner in as well a position as he was at the start of the rent ordinance. This could only be achieved if the net operating income were indexed by the full C.P.I. and not any percentage of the C.P.I. Any shift from 100% of the C.P.I. to a lesser amount would make the property owner progressively worse off and the coach owner resident progressively better off. Any partial indexing would, to my understanding, also be in conflit with the California Supreme Court decision Fischer vs. Berkeley, which requires com- plete indexing. For any further assistance I may give you in analyzing the true economic impacts of a new ordinance for Palm Desert, please do not hesitate to contact me. Very truly yours, REALSRCH CORPORATION Fr#z E. Fischer Pr ident cc: Ms. Patty Power Mr. Mike Isbell/ M. Lois Graham Mr. Joe Gibbs Ms. Sabby Jonathan BOO f1LVt111 SPUN ROAD. SIJITt 340. Roww10 MILLS ts7ATt$. CA 1110274. 1211111141•2111 EXHIBIT "C"