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HomeMy WebLinkAbout1997-03-27MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING THURSDAY, MARCH 27, 1997 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * I. CALL TO ORDER Mayor Kelly convened the meeting at 4:10 p.m. H. ROLL CALL Present: Mayor Pro-Tempore Jean M. Benson Councilman Buford A. Crites Councilman Walter H. Snyder Councilman Robert A. Spiegel Mayor Richard S. Kelly Also Present: Ramon A. Diaz, City Manager David J. Erwin, City Attorney Sheila R. Gilligan, City Clerk John Wohlmuth, ACM/Director of Administrative Services Richard J. Folkers, ACM/Director of Public Works Phil Drell, Director of Community Development Carlos L. Ortega, Redevelopment Agency Executive Director Paul Gibson, City Treasurer/Finance Director Pat Conlon, Director of Building and Safety Mary P. Gates, Deputy City Clerk III. ORAL COMMUNICATIONS - A MR. PETE FREESTONE, 72-761 Tamarisk Street, Palm Desert, stated that several meetings ago the Council had tabled an issue dealing with the Highway 111/Highway 74 corridor and whether or not the City of Palm Desert was going to take it over. He said the biggest problem as he saw it was the traffic signal timing. He said he had discussed this with Public Works Director Dick Folkers who indicated a survey was presently being done by an outside party to determine whether this is a way to synchronize these signals. He said he noticed the light at the intersection of Fred Waring and San Pablo seemed to have a "smart sensor" which meant, for example, that when someone entered the left turn lane to go south on San Pablo and the light was red, it would change to green (if the MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING MARCH 27, 1997 * * * * * * * * * * * * * * * * * * * * * * * * * * * * sensor sensed there was no traffic coming from the east on Fred Waring) without that person having to wait for the light to cycle through. He asked whether that type of sensor could be installed on Highway 111 also. Mr. Folkers responded that this was a possibility and that staff could discuss this with Caltrans. Mr. Freestone also asked that when the City considers the Highway 74/Highway 111 issue, it also consider making the existing Highway 111 an alternate route, with Gerald Ford being made the new Highway 111. He said this would be similar to what the City of Palm Springs did with Highway 111 through that city. Councilman Crites stated that the City Council would look at this issue which came to it from the Executive Committee of the 2010 Steering Committee. He said a report would be coming in the near future on costs and alternatives. Mr. Freestone stated that it would not be very long before the Cook Street overpass is complete and available for use. He said he felt there was a problem at the intersection of Velie and Cook which has a three-way stop, and he asked if there were plans to remove the stop and make it a signalized intersection. Mr. Folkers responded that staff is looking at several different ways to make improvements. MS. BETTY TUMINELLO addressed the Council relative to a recent situation wherein she was sitting under a tree reading her Bible and was suddenly surrounded by police officers with their guns drawn. She said their arrival was in response to a telephone complaint that she was across the street at a clinic on Painters Path pounding on the windows and trying to break down the doors. She said people at the clinic were calling in false police reports. She also noted that one of the police officers threatened that he would do everything he could to arrest her. Mayor Kelly stated that this matter would be turned over to the City Manager who would meet with Ms. Tuminello and the Chief of Police to try and resolve this issue. IV. CONSENT CALENDAR A. MINUTES of the Regular City Council Meeting of March 13, 1997, and the Adjourned Joint City Council/Redevelopment Agency/Desert Willow Committee Meeting of March 18, 1997. Rec: Approve as presented. B. CLAIMS AND DEMANDS AGAINST THE CITY TREASURY - Warrant Nos. 51 and 51(prepaid), and 52. Rec: Approve as presented. 2 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING MARCH 27, 1997 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * C. APPLICATION FOR ALCOHOLIC BEVERAGE LICENSE by Palm Desert Recreational Facilities Corporation for Desert Willow Golf Course, 38-500 Portola Avenue, Palm Desert. Rec: Receive and file. D. RESOLUTION NO. 97-24 - A Resolution of the City Council of the City of Palm Desert, California, Setting Forth Its Findings and Authorizing the Destruction of Files from the Department of Business License & Code Compliance that have been Microfilmed. Rec: Waive further reading and adopt. E. CONSIDERATION OF REQUEST from Paul Johnson, Owner of Desert Patch Inn, for Reimbursement of Overpayment of Transient Occupancy Tax for January, 1996. Rec: By Minute Motion: 1) Direct staff to request an audit of Desert Patch Inn by MRC; 2) if the audit verifies that an error was made when reporting, approve the requested reimbursement of $171.00. F. CONSIDERATION of Letter from Shadow Mountain Golf Club Requesting Paving of Ironwood Street. Rec: Refer to the Department of Public Works for report and recommendation at the City Council meeting of April 10, 1997. G. REQUEST FOR APPROVAL of Beer Concession for SpringFest '97. Rec: By Minute Motion, permit the sale, possession, and consumption of alcoholic beverages on City -owned property in connection with a special event, SpringFest, scheduled to be held April 20, 1997. H. REQUEST FOR ADOPTION of Resolutions Setting Public Hearings for Consideration of Street Right -of -Way Vacation for McMillon Drive Barrier Strips and Palm Desert Drive North (Frontage Road) at Deep Canyon Road. Rec: 1) Waive further reading and adopt Resolution No. 97-25, setting a public hearing to consider the vacation of a portion of right-of-way known as Palm Desert Drive North, westerly of Deep Canyon Road; 2) waive further reading and adopt Resolution No. 91: 2,h, setting a public hearing to consider the vacation of right-of-way known as Lot "D" and Lot "E", being one foot barrier strips on Tract 2915. 3 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING MARCH 27, 1997 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * I. REQUEST FOR AWARD OF CONTRACT for Demolition of Esquire Apartments (Contract No. C11620). This item was removed for separate discussion under Section VII, Consent Items Held Over. Please see that portion of the Minutes for Council discussion and action.. J. REQUEST FOR APPROVAL of Change Order No. 1 to the Warner Trail Street Improvement Contract (No. C12120). Rec: By Minute Motion: 1) Approve Change Order No. 1 to Contract No. C12120 for the additional construction bid items required for the completion of the project in the amount of $2,660.78; 2) authorize the transfer of $2,660.78 from contingency to base. K. REQUEST FOR AUTHORIZATION to Advertise and Call for Bids for the Minor Storm Drain Improvements on the West Side of Washington Street at Hovley Lane East (Contract No. C12390, Project No. 518-97). Rec: By Minute Motion, authorize the City Clerk to advertise and call for bids for the subject project. L. REQUEST FOR AUTHORIZATION to Refund a Portion of Dog License Fee Issued to Linda Kimball. Rec: By Minute Motion, approve the request and authorize a refund to Linda Kimball in the amount of $37.00. M. REQUEST FOR APPROVAL of Consultant Services to Determine Revenue Projections for Project Area No. 2 Pass -Through Agreements in Connection with Proposed School District Boundary Change North of Frank Sinatra. Rec: By Minute Motion, authorize an agreement with Rosenow Spevacek Group for professional services in an amount not to exceed $10,000 for projections and analysis of Project Area No. 2 pass -through agreement with Palm Springs Unified School District (Contract No. C12400). N. CONSIDERATION OF REQUEST from National Multiple Sclerosis Society for Waiver of City Fees in connection with the Society's Annual Walk Against Multiple Sclerosis to be held on April 13, 1997, in the Civic Center Park. Rec: By Minute Motion, approve the requested waiver of City Fees and direct staff to notify the National Multiple Sclerosis Society that said fee is waived as a donation to this event. 4 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING MARCH 27, 1997 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * O. REQUEST FOR RATIFICATION of Councilman Buford Crites' Out of State Travel to Washington, D.C. to Testify Before the House Subcommittee on Mountains Conservancy Funding. Rec: By Minute Motion, ratify the out of State travel to Washington, D.C. and authorize the Director of Community Affairs to process an expense report in the amount of $1,580.00. Mr. Erwin asked that Item I be removed for separate discussion under Section VII, Consent Items Held Over, of the Agenda. Upon motion by Snyder, second by Spiegel, the remainder of the Consent Calendar was approved as presented by unanimous vote of the City Council. With Council concurrence, Mayor Crites suspended the remainder of the Agenda at this time in order to consider Items X-A and XII-A. Please see those portions of the Minutes for Council discussion and action. Note: Mayor Kelly left the meeting at 5:30 p.m. following discussion of Item X-A regarding leaf blowers. V. RESOLUTIONS A. RESOLUTION NO. 97-27 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, AMENDING RESOLUTION NO. 96-47, SECTION I, SALARY SCHEDULE, RANGES AND ALLOCATED CLASSIFICATIONS, AND SECTION II, EXEMPT PERSONNEL, RELATING TO THE CREATION OF A BUSINESS SUPPORT DIVISION OF COMMUNITY DEVELOPMENT AND A REORGANIZATION OF THE FINANCE DEPARTMENT. Mr. Diaz noted the report in the packets and offered to answer any questions. Councilman Crites moved to waive further reading and adopt Resolution No. 97-27 amending Resolution No. 96-47 allocating three new positions -- Business Support Manager, two Business Support Technicians, and Account I (Enterprise Fund) - amending classification and salary range of the Accounting Manager to Finance Operations Manager, and eliminating the allocation of two positions -- Secretary (Code Compliance) and Senior Human Resources Technician. Motion was seconded by Spiegel and carried by unanimous vote. 5 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING MARCH 27, 1997 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * VI. ORDINANCES For Introduction: None For Adoption: A. ORDINANCE NO. 823 - AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, ESTABLISHING A VOLUNTARY CAMPAIGN EXPENDITURE CEILING FOR ELECTIONS TO CITY OFFICES AND AMENDING THE PALM DESERT MUNICIPAL CODE. Councilman Spiegel moved to: 1) Waive further reading and adopt Ordinance No. 823,, establishing a voluntary expenditure ceiling for each election to City elective office in an amount equal to seventy-five cents ($.75) per resident of the City; 2) waive further reading and adopt Resolution No. 97-22, establishing the number of residents of the City for the purpose of determining the voluntary expenditure ceiling for the City elections. Motion was seconded by Crites and carried by a 4-1 vote, with Mayor Kelly ABSENT. Mrs. Gilligan reported, in response to a request from the Mayor, that the City of La Quinta had adopted an expenditure ceiling and that the Cities of Palm Springs and Indio would also be adopting similar ordinances. B. ORDINANCE NO. 828 - AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, AMENDING ORDINANCE NO. 107, THE PALM DESERT ZONING MAP, BY CHANGING THE ZONE FROM R-3 (MULTIPLE FAMILY RESIDENTIAL) TO O.P. (OFFICE PROFESSIONAL) FOR THE EXISTING OFFICE COMPLEX AT 44-875 DEEP CANYON ROAD, THE NORTHWEST CORNER OF DEEP CANYON AND ALESSANDRO DRIVE, rase No. C/Z 97-1, Dennis Godecke, Applicant. Mr. Diaz stated that there had been no changes to this ordinance since its introduction, and he recommended adoption. An attorney representing Mr. Dennis Godecke addressed the Council and recommended approval of the ordinance. Councilman Snyder moved to waive further reading and adopt Ordinance No. 828,. Motion was seconded by Crites and carried by a 4-0 vote, with Mayor Kelly ABSENT. 6 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING MARCH 27, 1997 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * VII. CONSENT ITEMS HELD OVER I. REQUEST FOR AWARD OF CONTRACT for Demolition of Esquire Apartments (Contract No. C11620). Please see verbatim transcript attached hereto and made a part hereof as Exhibit "B". Also attached is a construction completion schedule which was submitted during the City Council meeting (attached as Exhibit "C"). VIII. NEW BUSINESS A. CONSIDERATION OF A REQUEST FROM ELITE RACING FOR FUNDING OF 1997 PALM DESERT 5K RUN. Mr. Diaz noted the report in the packet and offered to answer any questions. Councilman Spiegel moved to, by Minute Motion, approve the request and direct the City Manager to include $55,000 in the 1997/98 Fiscal Year Budget. Motion was seconded by Crites and carried by a 4-0 vote, with Mayor Kelly ABSENT. B. REQUEST FOR APPROVAL of Contracts for 1997 "Haute Nights - Cool Sounds" Summer Concert Series. Mr. Diaz noted the report in the packet. Councilman Crites moved to, by Minute Motion: 1) Approve the following contracts and authorize the Mayor to execute same: a) No. C12410 with Kal David & The Real Deal; b) No. C12420 with Coyote; c) No. C12430 with Navy Band of San Diego; d) No. C12440 with Stan Miller's Big Band; e) No C12450 with Swing Savant; f) No. C12460 with Pandemonium Steel Drum Band; g) No. C12470 with The Ho Dads; h) No. C12480 with Bobby Rodriguez; i) No. C12490 with Franklin Haynes Marionettes; j) No. C12500 with Alive & Pickin; k) No. C12510 with Gregg Young & the 2nd Street Band; 1) No. C12520 with Riverside County Philharmonic Symphony; m) No. C12530 with PyroSpectacular Fireworks Display; and 2) appropriate an additional $19,000 to Account No. 110-4416-414-3061 to provide payment for all costs of the summer concerts such as sound/lighting, insurance, and incidentals and for payment of an additional concert for the Sister City Convention. Motion was seconded by Spiegel and carried by a 4-0 vote, with Mayor Kelly ABSENT. 7 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING MARCH 27, 1997 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * C. REQUEST FOR CONSIDERATION OF OPERATING AGREEMENT BETWEEN THE CITY OF PALM DESERT AND KEMPER SPORTS MANAGEMENT. Mr. Diaz noted the report and recommendation in the packets. Councilman Crites asked when the Council will be able to come back and spend some time on the issue of resident cards. He said the report noted that the Council would consider this policy in November as to who is considered to be a resident; however, he felt something needed to be done in the Spring. He said that in terms of a resident card, someone who lives here for 30 days as a visitor to the community is not the same as someone who lives here for 12 months. He said what we are talking about now is people who lease or rent something for 31 days are considered permanent residents of Palm Desert, and he felt the entire issue needed to be discussed. He added that his initial understanding was that resident cards were for those people who spend a majority of their year in Palm Desert. Councilman Snyder suggested setting up a study session with the City Council and the Golf Course Committee. Councilmember Benson commented that she felt the Promotion Committee should be involved in the operation and promotion of the different events at Desert Willow which is charged with promoting these types of things for the City and have been excluded from as far as the Desert Willow golf course. She said she felt there should be more discussion on who is handling Desert Willow, how it is handled, who will be the ultimate say on promotion, what kind of promotions, etc. With regard to green fees, she said she had been approached by someone who was very irate because they had the resident card and their neighbors told them they were only resident six months out of the year and had gone in and were given a resident card also. Councilman Spiegel stated he had asked staff to prepare a report for him relative to summer rates at other public golf courses. He said that right now a non-resident paying $110.00 Friday through Sunday, June 1 to September 30, will pay $50.00 for summer, which is a 60% decrease. On the other hand, the Palm Desert resident rate goes from $45.00 to $35.00, which is not even 25 % decrease. He said he had not yet received the comparison report he had requested and, therefore, he was not prepared to vote on this issue at this time. Councilman Spiegel moved to continue this matter. Motion died for lack of a second. Councilman Crites agreed that Council needs to look at other cities. He added that staff s report recommended that two Councilmembers be appointed to the Golf Course Committee. Mr. Ortega noted that the agreement requires the operator to promote the golf course as part of the contract to make sure the course attracts people. The Golf Course Committee is also provided for in that agreement. He suggested perhaps appointing a member of the Promotion 8 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING MARCH 27, 1997 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * Committee to the Golf Course Committee, and that person would have input on types of advertising being done. He noted that the Golf Course Committee was an oversight committee that judges whether the operator is complying with terms of the agreement, maintaining the appropriate decorum at the golf course, whether it is being maintained properly, etc. He stated that the agreement requires the main participation on the Golf Course Committee to be two members of the Council, the Golf Course Manager, the Redevelopment Agency Executive Director (perhaps the City Manager instead since it has been transferred to the City), and others as requested by the City. Mr. Diaz stated that staff recommended that those things dealing with promotion of the Golf Course go to the Promotion Committee as informational items for comment and recommendation. This would ensure that the promotion of the course was not out of line with other promotions that are going on at the City. He said a member of the Promotion Committee could be appointed to the Golf Course Committee; however, decisions on the promotion of the Golf Course would not be the only things that would come up at those meetings. Councilmember Benson said she felt this matter should be continued. Councilman Spiegel moved to continue this matter. Motion died for lack of a second. Councilman Crites suggested that the Council liaison to the Promotion Committee be appointed as one of the two Councilmembers on the Golf Course Committee. Because it was important to have input from the Desert Willow Committee, he suggested that Mayor Kelly be the second Council appointee. He also suggested the chair of the Promotion Committee be appointed and that an informational item be included on the Promotion Committee Agenda relative to promotion of the Desert Willow project. Councilman Crites moved to, by Minute Motion, approve recommendation #3 to approve, as recommended, submitted requests for charitable golf tournaments as set forth in the memorandum, with the remainder of the recommendations to be continued to the meeting of April 10, 1997. Motion was seconded by Spiegel and carried by a 4-0 vote, with Mayor Kelly ABSENT. D. INFORMATIONAL ITEMS: 1. Update on Interchanges: a. I-10/Washington Street b. I-10/Cook Street c. I-10/Monterey Avenue Mr. Folkers noted that everyone was proceeding well for these three interchanges. 9 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING MARCH 27, 1997 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * 2. Progress Report on Retail Center Vacancies Mr. Drell noted that the Saks project was moving forward. 3. 1997 United Way Campaign Results Mr. Weller reviewed the staff report and offered to answer any questions. IX. CONTINUED BUSINESS A. CONSIDERATION OF REQUEST FROM STUDENTS CREATIVE RECYCLE ART PROGRAM FOR A $10,000 CONTRIBUTION (Continued from the Meetings of January 23 and February 13, 1997). Mr. Wohlmuth stated that he had received a request from this organization to continue this matter to the next fiscal year so that they could request funding from the Charitable Contributions Committee. Councilman Crites moved to, by Minute Motion, deny the request for funding and direct staff to notify this organization of its right to apply next fiscal year for funding from the Charitable Contributions Committee. Motion was seconded by Benson and carried by a 4-0 vote, with Mayor Kelly ABSENT. B. CONSIDERATION OF PETITION FOR STOP SIGN AT PORTOLA/GRAPEVINE (Continued from the Meeting of February 13, 1997). Mr. Diaz noted the report in the packets. Mr. Folkers added that staffs recommendation was that this request be received and filed because the intersection does not meet warrants for a stop sign. MR. PETE FREESTONE, 72-761 Tamarisk, asked how the Council could make a decision that the intersection did not meet warrants when a traffic study has not been done since this item was brought to the Council. Mr. Folkers responded that an analysis of facts was done on January 31, 1997, and that the staff report did not have attached to it a copy of the traffic count for that intersection. He said staff would be glad to bring this back to the Council but that it had gone through the Technical Traffic Committee already. Councilman Crites suggested that the Council hold this item until such time as it has seen the latest data. Mr. Diaz added that the City's Traffic Engineer would contact Mr. Freestone. 10 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING MARCH 27, 1997 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * Councilman Snyder moved to continue this matter to the meeting of April 10, 1997. Motion was seconded by Crites. MR. CURTIS COHEE, Member of the Board of Palm Desert Homeowners Association, addressed the Council and urged it to approve the requested stop sign. Councilman Crites asked that staff also provide the Council with an accident analysis of the intersection. Mayor Pro-Tem Benson called for the vote. The motion carried by a 4-0 vote, with Mayor Kelly ABSENT. C. CONSIDERATION OF CONTINUED CONTRACT WITH BIG BROTHERS & BIG SISTERS OF THE DESERT FOR LEASE OF THE PORTOLA COMMUNITY CENTER (Continued from the Meeting of March 13, 1997). Risk Manager Ken Weller stated that this organization was having difficulty in meeting the requirement for general liability insurance. He noted that at 2:30 p.m. that date, he had received evidence of insurance from St. Paul of Minnesota extending coverage, and he asked that this item be removed from the Agenda. Councilman Crites moved to, by Minute Motion, remove this item from the Agenda. Motion was seconded by Snyder and carried by a 4-0 vote, with Mayor Kelly ABSENT. X. OLD BUSINESS A. REQUEST FOR CONSIDERATION OF LEAF BLOWER ORDINANCE. Senior Code Compliance Office Evelyn Bridges reviewed the staff report, noting that proposed Ordinance No. 829 would prohibit gas -powered blowers while proposed Ordinance No. 830 would prohibit all blowers in the City. Councilman Crites verified with Ms. Bridges that the Council had received copies of all correspondence received relative to this matter. He asked if he would be correct in summarizing the correspondence to say that well over 90% were in favor of one of the two ordinances, and Ms. Bridges agreed.: MR. WILLIAM KILLION, 40-232 Sagewood, Grounds Manager at Marriott Desert Springs, said his employees only used blowers between the hours of 8:00 a.m. and 3:00 p.m. and not on Sundays and that they were used for cleaning of the rock landscape around the hotel. He said he felt this was an efficient and economical way to clean the landscape for the hotel guests. He noted that the debris is blown onto a hard surface, raked up, and taken away. He said he 11 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING MARCH 27, 1997 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * felt a total ban would decrease the quality of their maintenance and increase the budget for maintenance of the resort. He said the Marriott Desert Springs was not opposed to enactment of an ordinance but would like to see a separation of commercial versus residential use. In addition, he said they would like to work with a committee and give input on a draft ordinance. MR. TIM SCOGGIN, 73-102 Skyward Way, Director of Golf at Marriott Desert Springs, stated that restrictions had been placed several years ago on leaf blowers including limiting the time of day they are to be in operation, placing governors on the blowers to make sure the high-pitched whine is eliminated, and using blowers as part of a maintenance program instead of as the first line. He said he felt a committee should be formed to assess the impacts, both from a residential and a commercial setting. The following individuals also spoke in OPPOSITION to a ban on leaf blowers: MR. JOSE SANCHEZ, gardener for the past 17 years, suggested that something be placed on the blowers to silence them similar to silencers on guns. MR. PETE FREESTONE, 72-761 Tamarisk Street, said he was opposed to the ordinance banning leaf blowers. He said there were two issues as he saw them -- air pollution and noise — and eliminating only gas blowers would only take care of the noise problem. He felt weed whackers make just as much noise as the blowers. They cause trimmings to land on the sidewalks and then the blowers are used to blow the debris back on the grass. He said he did not feel this was an issue on which Council should take action and that it should either go to a vote of the citizens in November or the Council should send out cards to all residents requesting input before the Council makes a decision as to whether or not leaf blowers should be allowed in the City. He also felt that if the blowers are to be eliminated, it should apply to everyone, including the City maintenance people in their upkeep of the park and golf courses. MR. RICHARD COOK, 180 Via Madrid Avenue, agreed with Mr. Freestone and said he felt there were a great many things that needed to be considered prior to enactment of an ordinance. He said there were a lot of things that caused air pollution, including golf course construction, City street sweepers, lawn mowers, renovation of the golf courses in the fall, etc. He said he felt the new low -speed electric blowers, if used judiciously, cause few problems for anyone. MR. JACK HEARNS, 76-785 Ascot Circle, owner of Hort Tech and representative of the California Landscape Contractors Association, submitted a report outlining the Association's position on leaf blowers (attached hereto and made a part hereof as Exhibit "A"). He said his business maintains The Lakes Country Club and that he had imposed restrictions wherein leaf blowers are used only from 8:00 a.m. to 3:00 p.m. and not on weekends. He added that an outright ban on blowers would make it necessary for them to go to the Association and ask for higher fees. 12 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING MARCH 27, 1997 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * MS. SHARON HOWARD, 43-866 Adonis Drive, landscape contractor for the last 15 years, asked that the Council withhold a vote on the issue and sit down with some of the professionals in the industry to obtain their input. She said as a whole the contractors did not like blowers but felt they were a necessary part of the industry. She added that she did not remember ever receiving any complaints from clients or neighbors about the misuse of blowers. MR. TED SHOWALTER, 74-254 Aster Drive, owner of a landscape business, said he found it ironic that he tries to install drought tolerant and rock scapes to cut down on water use and now the Council is talking about banning leaf blowers. He asked if weed eaters were going to be banned next. MR. CASEY SORENSON, VIP Landscape, 74-600 Old Prospector, said he had 35 licensed contractors in the landscape business in the Coachella Valley, and they knew how to operate blowers correctly. He said he also employed 40 people, and they were all instructed on the correct use of blowers. He said they used hand-held blowers for better control. He noted that a meeting had been held the previous evening with the California Landscape Contractors Association to discuss this issue, and he asked that they be allowed to sit down with a committee and interact before a decision is made. He added that properly used, leaf blowers are an effective tool for the landscape business. The following individuals spoke in FAVOR of a leaf blower ordinance because of concerns about noise, health, and dust. MS. MARIAN CARTER, 72-692 Pitahaya, spoke in favor of a ban on leaf blowers and asked that the Council also consider amending the noise ordinance and hours of operation. MRS. MARIAN HENDERSON said she felt the blowers should be eliminated until such time as a way is found to silence them. MS. JANICE WRIGHT, 48-114 Silver Spur Trail, owner of apartments at 45-330 Ocotillo. MR. CHARLES SLAUGHTER, 44-605 Monacco Circle, stated he had no suggestions and wished the Council luck in this matter. Councilman Crites stated that the Council had received more calls and letters on this one issue than on almost any other issue that has come before it. Most are opposed to leaf blowers and are asking for a ban on all of these devices due to the perceived noise and dust problems. He suggested, since passage of an ordinance would require two readings, that the Council, before second reading of an ordinance, sit down with the Desert Contractors Association and talk about these issues with them. 13 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING MARCH 27, 1997 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * Councilman Snyder stated that people have pointed out the PM10 problems and the fact that this is not helping the problems. He said he would like to see the Council take action and set up a program in the immediate future to sit down and discuss this issue with the Contractors Association and landscape professionals so that they realize the number of people who are upset about the problem and to try to find a solution. He agreed with Councilman Crites' suggestion to meet with representatives and discuss the issue prior to second reading of an ordinance. Councilman Spiegel stated that he had received 25 telephone calls that day regarding leaf blowers, with 21 opposed and 4 in favor. He said there were 45 cities in California that have either partially or totally banned leaf blowers. He felt the recommendation to sit down with the Contractors Association would also apply to the California Landscape Contractors Association, and he recommended that the Mayor assign two Councilmembers plus staff to meet with these groups and come back with recommendations. Councilmember Benson agreed and said this is the Palm Desert way to do things. She felt in addition to the two groups mentioned by Councilman Spiegel, input is also needed from the hotel industry. Mayor Kelly said he would be inclined to go along with the idea of passing one of the ordinances to second reading, with the second reading to be in 30 days. Councilman Crites addressed a comment from one of the speakers relative to City street sweepers and stated that the City had spent a lot of money to make sure the City's sweepers are now vacuum trucks that collect most of the debris off the street instead of blowing it. Councilman Crites moved to waive further reading and pass Ordinance No. 829 to second reading, eliminating all gas -powered blowers but allowing electric and vacuum blowers for property maintenance. Motion was seconded by Spiegel. Mayor Kelly asked if the motion could be amended to include appointment of two members of the City Council to work with representatives of the various groups as discussed above. Councilmen Crites and Spiegel agreed to amend their motion and second to include this appointment. Councilmember Benson expressed concern with passing either of the two ordinances to second reading until a report and recommendation are received. She felt electric blowers were just as noisy as gas -powered, and if the Council is going to have a ban, it should include all blowers, not just those that are gas -powered. She suggested postponing action until the next meeting and then make a decision as to which ordinance should be adopted. 14 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING MARCH 27, 1997 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * After additional discussion, Councilmen Crites and Spiegel withdrew their motion and second. Councilmember Benson moved to waive further reading and pass Ordinance No. B30 to second reading, prohibiting all leaf blowers within the City, with the stipulation that a meeting be held with staff, two Councilmembers, and representatives of the Desert Contractors Association, California Landscaping Contractors Association, and hotels between now and second reading of the ordinance, said second reading to take place in 30 days. Motion was seconded by Kelly. Councilman Crites asked whether it would be possible to amend the ordinance if after the stipulated meeting it is decided that electric blowers should be allowed, and Mr. Erwin stated that the ordinance could be amended. Mayor Kelly called for the vote. Motion carried by a 4-1 vote, with Councilman Crites voting NO. XI. REPORTS AND REMARKS A. CITY MANAGER 1) Discussion and Recommendation Relative to Withdrawal from County Library System. Mr. Diaz stated that he would not at this time recommend that the City withdraw from the County Library System. He said staff was still studying this issue and would bring additional information back to the Council at a later date. B. CITY ATTORNEY Mr. Erwin requested a Closed Session at an appropriate time to discuss items listed on the Agenda and Agenda Addendum as follows: 1) Report and Action on Items from Closed Session Made at This Meeting. 2) Request for Closed Session Conference with Legal Counsel - Anticipated Litigation pursuant to Government Code Section 54956.9: Significant exposure to litigation pursuant to subdivision (b): Number of potential cases: 15 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING MARCH 27, 1997 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * Conference with Real Property Negotiator pursuant to Section 54956.8: Property: APN Nos. 771-050-003, 004, and 771-060-002 Negotiating Parties: Agency: City of Palm Desert Property Owner: C.C. Meyers Under negotiation: Price Terms of Payment Conference with Real Property Negotiator pursuant to Section 54956.8: Property: Southeast corner of Hovley Lane West and Monterey Avenue Negotiating Parties: Agency: City of Palm Desert/Richard J. Folkers Property Owner: Morris Cohen Under negotiation: _2L_ Price x Terms of Payment C. CITY CLERK None D. MAYOR AND MEMBERS OF THE CITY COUNCIL o City Council Requests for Action: 1. Consideration of Letter to the Riverside County Board of Supervisors Relative to City Donation of $10,000 to Indio Date Fair in Relation to County's Acceptance of $25,000 from Marlboro Cigarettes (Mayor Pro-Tem Jean M. Benson). Mayor Pro-Tem Benson stated that she would like the Council to consider sending a letter to the County of Riverside, in the event it requests another donation in the future. She said Palm Desert was the only City in the Coachella Valley, with the exception of Indio, to make a contribution, and she asked that the Council support her request that no future funding be given to the Date Festival from the City of Palm Desert if they take money from Marlboro. Councilman Crites moved to, by Minute Motion, authorize the Mayor Pro-Tem to send a letter to the County of Riverside expressing sentiments as outlined above. Motion was seconded by Snyder and carried by a 4-0 vote, with Mayor Kelly ABSENT. 2. Councilman Crites stated that on April 24, 1997, the Boys & Girls Club would be holding a fund raiser and that Alibaba Farzaneh was one of the honorees. 16 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING MARCH 27, 1997 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * He said that while the Council could not attend due to the function being held at the same time as a City Council meeting, he felt the City should purchase a table and have several City staff members attend to act as representatives of the Council. Councilman Crites moved to add this item to the Agenda for discussion. Motion was seconded by Spiegel and carried by a 4-0 vote, with Mayor Kelly ABSENT. Councilman Spiegel suggested that the Council proclaim that day in honor of Alibaba Farzaneh. Councilman Crites moved to, by Minute Motion: 1) Direct the City Clerk to prepare a resolution for that day in honor of Alibaba Farzaneh; and 2) direct staff to purchase a City table and ask several staff members to donate their time to attend this fund raiser on behalf of the Council. Motion was seconded by Spiegel and carried by a 4-0 vote, with Mayor Kelly ABSENT. o City Council Committee Reports: None XII. AWARDS, PRESENTATIONS, AND APPOINTMENTS A. APPOINTMENT TO THE JOSLYN COVE SENIOR CENTER BOARD OF DIRECTORS TO FILL THE VACANCY CREATED BY THE EXPIRATION OF TERM OF FRANK LAIACONA (Continued from the Meeting of February 13, 1997). Councilman Crites moved to, by Minute Motion, appoint Mr. Bernard Kurtz to the Joslyn Cove Senior Center to fill the vacancy created by the expiration of term of Frank Laiacona. Motion was seconded by Spiegel and carried by unanimous vote. XIII. PUBLIC HEARINGS None XIV. ORAL COMMUNICATIONS MR. CHRISTOPHER BLAISDELL, 72-687 Rolling Knoll, addressed the Council relative to the Golf Course and summer green fees. He said it was his understanding that the issue was that because there are so many more residents in Palm Desert than in Indian Wells, our one municipal golf course might get too much play by local residents and affect the bottom line, which would not be the case in Indian Wells because of its population. He suggested that other golf courses in Palm Desert be approached, such as Palm Desert Country Club and Palm Desert Resorter to see if they would honor 17 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING MARCH 27, 1997 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * the resident card, and this would create three golf courses that would be available to City residents, and this would spread the load of reduced fees over three courses and lessen the impact on the City course as the sole provider of discount fees. He said he felt the other operators might think this was good public relations. XV. ADJOURNMENT Councilman Crites moved to adjourn the meeting to Closed Session at 6:25 p.m. Motion was seconded by Snyder and carried by a 4-0 vote, with Mayor Kelly ABSENT. Mayor Pro-Tem Benson reconvened the meeting at 6:50 p.m. and immediately adjourned with no action announced from Closed Session. ATTEST: II/ !� SHEILA R. G1LLIGAN, CI I* CLERK CITY OF PALM DESERT RIC 18 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING MARCH 27, 1997 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * EXHIBIT "A" CLCA Positions on Leaf Blowers I, tj\tc,;, • The California Landscape Contractors Association (CLCA) opposes across- the-board bans on gasoline -powered leaf blowers, such as the 1996 Los Angles ordinance which prohibits their use within 500 feet of a residence. CLCA believes these bans are unnecessary, bad public policy, and extremely harmful to the landscape industry. • Leaf blowers are essential for landscape maintenance professionals. This is because these machines are very efficient tools for cleaning up leaves and other small debris from landscape sites. Since their development in the 1970s, leaf blowers to a large extent have supplanted brooms, hoses, and rakes. Leaf blowers even perform functions that no other tool can handle effectively, such as cleaning areas covered by rock, gravel, bark, or mulch. • Leaf blowers save enormous amounts of time. Most landscape industry estimates suggest that it takes at least five times as long to clean a typical landscape site with a broom and rake than it does with a power leaf blower. A similar estimate was provided in 1994 by the City of San Luis Obispo for its parks and public buildings; the city's maintenance supervisors estimated that their crews would take 50 hours to do work that took 10 hours with leaf blowers, and that much of the work would require the use of water. Some estimates substantially exceed the five times one rule -of -thumb: in a 1992 labor efficiency comparison report, the City of Whittier concluded that a job that took 2.25 labor hours with a backpack leaf blower took 76 labor hours with a hose and 282 with a broom. The bottom line is that without leaf blowers, public agencies and private owners would have to spend more time on outdoor work or accept a lower level of upkeep. • Time is money. CLCA members estimate that their costs (and therefore their charges) would increase from twenty to forty percent if they must perform the same functions without the leaf blower. • CLCA believes many clients can't afford or are not willing to pay for the additional costs of performing landscape maintenance without the leaf blower. They would either allow their landscapes to deteriorate, do the work themselves, or flaunt the law by using leaf blowers or hiring gardeners willing to do so. The last option is a possibility because leaf blower bans have been difficult to enforce in municipalities that have passed an ordinance to date. That option would adversely affect our members because we play by the rules by the very nature of the way our businesses are organized. CLCA members are all state -licensed contractors. • California Landscape Contractors Association • 2021 N Street, #300, Sacramento, CA 9S814 (9l6) 448-CLCA 19 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING MARCH 27, 1997 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * EXHIBIT "A" CLCA Positions on Leaf Blowers Page 2 Pg° We have a license bond on file with the Contractors State License Board, and we pay workers' compensation as well as liability insurance. We deduct federal and state income taxes from payrolls. Most of our members offer health insurance for employees and their families. Unfortunately, we compete against a vast underground economy of unlicensed operators which does not play be the rules. It would flaunt a leaf blower ban if given the chance, and consequently it would be able to underbid our members for landscape maintenance contracts. Legitimate landscape contractors could go out of business and their employees would lose good paying jobs. • The leaf blower is an alternative to hosing down walks and driveways with water. Using water in this manner is unreasonable, especially in drought - prone California. • Leaf blowers make no more noise than most other types of power equipment. Nor does the hum of these tools dwarf the decibel output of other gasoline -powered equipment such as the automobiles we drive and trains we ride. • High decibel noise exposure can be severely damaging to hearing. However, to provide some perspective on the issue of leaf blower noise and hearing loss, it should be pointed out that the U.S. Department of Labor Occupational Safety & Health Administration (OSHA) does not require a hearing protection program for employees unless noise exposures equal or exceed an eight -hour, time -weighted average sound level of 85 decibels. Although this regulation should not be taken to imply that lower decibels are always safe, compare it with the noise from a typical leaf blower. Most of the newer machines are rated at somewhere between 65 and 75 decibels at 50 feet at full throttle. And, unlike leaf blower users, who need hearing protection because of their long hours of exposure to noise coining from a machine a few feet away from their ears, residents and homeowners are exposed to leaf blower noise for only a few minutes a week at much greater distances. • CLCA acknowledges that leaf blowers can be a nuisance. However, we believe the culprits are old technology and improper use. Both problems can be remedied by means other than indiscriminate bans. • CLCA strongly encourages leaf blower manufacturers to place a high priority on noise reduction improvements. However, credit should go where credit is due. Today's leaf blowers are significantly more quiet than their predecessors of 10 years ago. Manufacturers have steadily reduced noise levels, and in recent years most have voluntarily adhered to a maximum of 70 decibels (dBa) at full -throttle at 50 feet from the source. In • California Landscape Contractors Association • 2021 N Street, 8300, Sacramento, CA 95814 (916) 448•CLCA 20 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING MARCH 27, 1997 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * EXHIBIT "A" CLCA Positions on Leaf Blowers Page 3 1996 one manufacturer introduced a revolutionary leaf blower that generates a mere 65 dBa at full throttle at fifty feet from the source -- without sacrificing performance. Manufacturers can be expected to make future noise reduction improvements, if given the chance. • Although CLCA prefers other methods of dealing with leaf blower noise, our association does not oppose efforts to prohibit outmoded equipment -- as long as the standards are not unreasonable in light of the existing technology on the market. We suggest that efforts to prohibit outmoded equipment be accompanied by buy-back programs such as the one instituted by the City of Redondo Beach in 1994. At a minimum, bans on outmoded equipment should go into effect at least one year after a decision is made. This would give users crucial lead time to phase out their equipment. • CLCA believes the vast majority of commercial operators use their leaf blowers responsibly. Nevertheless, we acknowledge that improper use is a problem. It is caused chiefly by lack of knowledge, but, regrettably, it is sometimes a result of lack of courtesy for others. • Cities, municipalities, and the CLCA should partner together to educate the public as well as the landscape industry about proper use of leaf blower equipment. Educational programs should include the following information: - Generally speaking, leaf blowers should be run at half throttle most of the time. Low throttle speeds not only significantly reduce noise, but they also provide the operator with maximum control. Full throttle is seldom necessary. - Leaf blowers should not be used in residential areas at unreasonable hours -- early in the morning or late at night when people are likely to be disturbed. - Debris should never be blown onto adjacent property, the street, vehicles, people, or pets. - Leaf blowers should not be used within ten feet of doors or windows. - Crews should operate only one leaf blower at a time on small residential sites. - Rakes or brooms should be used to loosen heavier debris. • Caljjornia Landscape Contractors Association • 2((1I221 t Street, #300, Sacramento, CA 95814 (916) 448-CLC,A 1 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING MARCH 27, 1997 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * EXHIBIT "A" �.. : rowno s on :,eai powers Page 4 The full nozzle extension should be used so the air stream can work close to the ground. The muffler, air intakes, and air filters should be routinely checked to make sure they are working properly. Leaf blowers should not be used to move large debris piles from one spot to another. If conditions are very dry and dusty, mister attachments should be used. ('LCA believes that informed citizens and landscape maintenance workers are likely to be more considerate. For the few bad apples who may lack common courtesy even with increased knowledge, city ordinances to require proper use under penalty of a steep fine may be necessary. CLCA does not oppose ordinances that mandate common sense rules of leaf blower courtesy. • Electric -powered leaf blowers are not an acceptable substitute for gas - powered machines. Most landscape maintenance professionals estimate that electric leaf blowers reduce efficiency by 50 percent. They tend to be less powerful than gas leaf blowers, and they are limited by the need for an xtension cord that must be continually plugged in and unplugged. In addition, they can be hazardous to operators. Swimming pools, spas, garden ponds, and moisture from garden irrigation make for a potential electric shock problem. Finally, the heavier duty electric leaf blowers, which are comparable in power to gas leaf blowers, do not reduce noise that significantly. Plus, the electric leaf blower's noise is compounded by the noise produced by a generator if electrical outlets aren't available. • The dust issue is spurious. Brooms create dust too. Properly used leaf blowers do not raise an inordinate amount of dust. No scientific documentation whatsoever exists on the health impacts of airborne particulate matter from leaf blowers. • The air emissions issue is likewise spurious. Standards that were put in place by the California Air Resources Board (CARS) for 1995 have been met, and in most cases, exceeded by all leaf blowers sold in the state today. Air pollution issues are being addressed, and should be addressed, by CARB, the federal Environmental Protection Agency (EPA), and the regional air quality districts -- not cities and counties. Moreover, the frequently used criticism that leaf blowers produce emissions greater than automobiles should be placed in proper perspective. Actual emissions • Caljjornia Landscape Contractors Association • 2021 N Street, #300, Sacramento, CA 95814 (916) 448-CLCA 22 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING MARCH 27, 1997 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * LLI.H rotations on Leaf blowers Page 5 EXHIBIT "A" fi from leaf blowers are few because of the equipment's intermittent use. For example, one year of volatile organic compound (VOC) emissions from automobiles compares to 21 years of emissions from portable lawn and garden products. Portable lawn and garden equipment contributes only 0.8 percent of all U.S. VOC emissions, 0.6 percent of carbon monoxide emissions, and no nitrogen oxide emissions. (This comparison comes from an analysis of EPA emissions inventory data prepared for the Portable Power Equipment Manufacturers Association by Heiden & Associates of Washington, DC.) • CLCA members are always willing to work constructively with city and county public officials to find win -win solutions to this increasingly prominent issue. • California Landscape Contractors Association • 2021 N Street, #300, Sacramento, CA OS814 (916) 448-CLCA 23 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING MARCH 27, 1997 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * Esquire Apartments EXHIBIT "B" CondenseItTM March 27, 1997 Pace 1 13 :4 .5 16 17 18 19 20 21 22 23 24 25 26 PALM CESERT CITY COUNCIL MEETING DATE THURSDAY, MARCH 27, 1997 TIME 4:00 P.M. LOCATION cENTER FRED COUNCIL NGCHAAMBEERS PALM DESERT, CALIFORNIA REPORTED BY NO —AMARA A. . 66ON C.S.R. PRq. 2 1 APPEARANCES: 2 3 JEAN M. BENSON, MAYOR PRO TEM 4 ROBERT A. SPIEGEL, CITY COUNCIIJNIN 5 BUFORD A. CRITES. CITY COUNCILMAN 6 WALTER SNYDER. CITY COUNCILMAN 7 DAVID J. ERNIN, CITY ATTORNEY 8 RAY DIAL. CITY MANAGER 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 Page 3 PALM DESERT, CALIFORNIA, MARCH 27. 1997 2 4:00 P.M. 3 4 MAYOR PRO TEM BENSON: THE NEXT ITEM IS CONSENT 5 ITEMS HELD OVER, L 6 CITY ATTORNEY IRWIN: MADAM MAYOR I WOULD ASK 7 THAT IT COME OFF THE AGENDA. I BELIEVE THERE ARE 8 PEOPLE HERE TO SPEAK ON IT. MR. CONLON HAS A REPORT 9 IN YOUR PACKET UNDER THE CONSENT CALENDAR IF 10 COUNCIL HAS ANY QUESTIONS, WE WILL ATTEMPT TO ANSWER 11 THE.'M. 12 MAYOR PRO TEM BENSON: YES. 13 MR. CONLON: YES, MADAM MAYOR, MEMBERS OF THE 14 COUNCIL, MAYOR PRO TEM OF THE COUNCIL. AN UPDATE ON 15 WHERE WE STAND TODAY WITH THE ESQUIRE APARTMENTS. 16 YOU HAVE A COPY OF THE STAFF REPORT IN YOUR AGENDA. 17 THE BUILDING PERMITS FOR THAT REMODEL TECHNICALLY 18 EXPIRED. THEY DID CALL FOR AN INSPECTION TODAY, THIS 19 AFTERNOON, FOR A PARTIAL INSPECTION OF THE GROUNDWAY 20 SYSTEM ON TO THE APARTMENT UNITS. THE CITY ATTORNEY 21 AND I WALKED THROUGH THE APARTMENT COMPLEX TODAY TO 22 GET DAVE'S OPINION ON EXACTLY WHAT HE FELT 23 CONSTITUTED COMMENCEMENT OF WORK 24 THE UNIFORM BUILDING CODE SECTION THAT 25 TALKS ABOUT WHEN A PERMIT EXPIRES IS RATHER VAGUE IN 26 THE CONTEXT OF EXACTLY WHAT CONSTITUTES A Yates & Associates Pace 4 1 COMMENCEMENT OF WORK. THE WAY THE CODE IIAS BEEN 2 ENFORCED, ADMINISTRATIVELY THROUGH MY DEPARTMENT, IS 3 THAT THE APPLICANT HAS TO CALL FOR A COMPLETE 4 INSPECTION, THE FIRST INSPECTION NECESSARY IN THE 5 PROJECT. 6 IN THIS CASE ITS A REMODEL OF THE 7 APARTMENT COMPLEX. THAT COMPLETE INSPECTION HAS TO 3 BE APPROVED FOR THE PERMIT TO REMAIN ACTIVE IT'S 9 DIFFERENT IN THIS CASE. THEY DID NOT CALL FOR A 10 COMPLETE INSPECTION, ONLY A PARTIAL INSPECTION. 11 WITH THAT IN MIND, I'M SURE THAT THESE 12 FOLKS HERE WOULD LIKE TO ADDRESS THE ISSUE. I WILL 13 STAND BY FOR ANY QUESTIONS. 14 CITY COUNCILMAN CRITES: MR. CONLON. DO YOU 15 STAND BY THE STAFF RECOMMENDATION TO APPROVE CONTRACT 16 FOR DEMOLITION? 17 MR. CONLON: YES. 18 CITY COUNCILMAN CRiIES: AND THAT POINT OF VIEW 19 IS CONSISTENT WITH HOW YOU HAVE ENFORCED THESE ISSUES 20 WITH OTHER CONTRACTORS IN THE PAST? 21 MR. CONLON: WELL, WE'VE NEVER HAD A CONTRACT 22 GET TO THIS POINT WHERE WE'VE HAD A PENDING 23 DEMOLITION ORDER FOR PUBLIC NUISANCE. WE'VE HAD 24 OTHER CONSTRUCTION PROJECTS THAT HAVE HAD THEIR 25 PERMITS EXPIRE, BUT NOTHING WITH A COURT ORDER 26 AUTHORIZING DEMOLITION. 1 CITY COUNCILMAN CRITES: BUT IN TERMS OF HOW 2 THIS FITS WITH OTHER PAST ISSUES IN TERMS OF WHAT WE 3 CALL COMPLETE, FIRST, PARTIAL, AND SO ON, YOU ARE 4 DOING THIS IN A CONSISTENT FASHION? 5 MR CONLON: THAT IS THE UNIFORM WAY TO DO IT. 6 CITY COUNCILMAN CRITES: SO YOU ARE COMFORTABLE 7 THEN WITH THE STAFF'S RECOMMENDATION? 8 MR CONLON: I AM COMFORTABLE WITH THE STAFF'S 9 RECOMMENDATION. 10 THE ISSUE THAT I WOULD LIKE TO POINT 11 OUT — AND I THINK DAVE WILL HAVE AN OPINION ON IT 12 AND CERTAINLY THESE FOLKS WHO WILL SPEAK BEHIND ME 13 TONIGHT WILL HAVE AN OPINION ON IT — IS 14 RECOMMENDATION NO. 3, WHICH SAYS, "UPON EXPIRATION OF 15 THE BUILDING PERMIT, PURSUANT TO THE COURT ORDER 16 AUTHORIZE DEMOLITION OF THE SUBJECT PROPERTY." I 17 THINK DAVE WILL GIVE US SOME GUIDANCE IN THAT AREA. 18 CITY COUNCILMAN CRATES: THANK YOU. 19 CITY COUNCILMAN SPIEGEL: MR. CONLON, CAN I ASK 20 ONE QUESTION? YOU HAD NINE BIDS TO DO THE 21 DEMOLITION? 22 MR CONLON: YES. SIR. 23 CITY COUNCILMAN SPIEGEL: THEY RANGE FROM 24 S23,900, WHICH IS THE ONE YOU'RE RECOMMENDING. TO 25 $168,580. WHAT IS THE DIFFERENCE? 26 CITY MANAGER DIAZ: THE GRIP ON THE HAMMERS. Page 5 Page 6 1 CTY COUNCILMAN SPIEGEL: ARE THEY ALL GOING TO 2 DO THE SAME THING? ONE IS GOING TO CHARGE S23,900, 3 AND THE OTHER ONE IS GOING TO CHARGE — 4 MR CONLON: I THINK NO.9 IN THE UST MIGHT 5 HAVE BEEN CONFUSED. MAYBE THEY THOUGHT WE WANTED 6 THEM TO REMODEL THE PROPERTY. 7 MAYOR PRO TEM BENSON: THEY WERE PROBABLY GOING 8 TO CLEAN THE LOT. 9 MR HOMME: GOOD AFTERNOON. MY NAME IS MARC 10 HOMME I'M AN ATTORNEY IN PALM DESERT AND I 11 REPRESENT GENEVIEVE PROPERTIES, LLC, WHO IS THE OWNER 12 OF THE PROPERTY. 13 BEFORE I COMMENT ON WHAT MR CONLON SAID, 14 I THINK ITS - IT WOULD BE GOOD FOR THE COUNCIL TO 15 GET A HISTORICAL BACKGROUND OF WHATS HAPPENED HERE. 16 I THINK MR CONLON — WHO I RESPECT VERY DEEPLY, I'VE 17 IGNOWN HIM FOR MANY YEARS — IS KIND OF MISSING WHAT 18 THE REAL ISSUE IS BEFORE THE COUNCIL TODAY. 19 THIS PROPERTY WAS BOUGHT OUT OF A 20 FORECLOSURE. WE BOUGHT THE PROMISSORY NOTE AND 21 PURCHASED THIS PROPERTY ABOUT A YEAR AGO. THIS 22 PROPERTY WAS IN A DEPLORABLE CONDITION BEFORE WE 23 PURCHASED THE PROPERTY OUT OF THE FORECLOSURE. WE 24 DID NOT CAUSE THE CONDITION OF THAT PROPERTY. 25 WHEN WE BOUGHT THE PROPERTY, THERE WAS A 26 DEBT ON THE PROPERTY AS A RESULT OF A PRIOR ABATEMENT 24 Page 1 - Page 6 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING * * * * * * * * * * * * * * * * * * * * EXHIBIT "B" �luirc Apartmcnts Condcnseltrm PaRe 7 1 ACTION AGAINST THE OLD OWNER. NOT AGAINST US. WE 2 WENT FORWARD AND NEGOTIATED WITH THE CITY. AND 3 THROUGH MR. CONLON'S GOOD EFFORTS AND DOUG PHILLIPS' 4 GOOD EFFORTS. WE NEGOTIATED A DEAL WHERE WE PAID THE 5 CITY S16,000 TO CLEAR UP THAT DEBT FROM THE PRIOR 6 OWNER. 7 SINCE THE TIME WE PURCHASED THIS PROPERTY 3 WE HAVE SPENT 85 - NO, STRIKE THAT - $97,000 ON 9 THIS PROPERTY. THIS INCLUDES OVER 57,000 FOR 10 ASBESTOS REMOVAL IT INCLUDES 39.000 THAT WE HAVE I 1 SPENT ON DEMOLITION AND CLEANUP WORK AT THE SITE. IT 12 DOES NOT INCLUDE WORK WHICH '7E'VE RECENTLY DONE ON 13 DOING PLUMBING WORK ON THE OPERTY. 14 THE REASON FOR THE DEL.. ON THIS 15 PROPERTY - WELL. LET ME GIVE YOU SOME MORE HISTORY 16 ON THIS. WHAT HAPPENED IS, WE MADE A STIPULATION 17 WITH THE CITY IN THAT ACTION. AND IN THAT ACTION 13 CERTAIN PARTIES WERE DISMISSED AND WE PAID THE 19 S16,000. AND WE'VE ALSO PAID TO GET A BUILDING 20 PERMIT ON THAT PROPERTY. WE'VE PAID THE CITY FOR 21 THAT. 22 WE, WE BELIEVE, HAVE COMMENCED THIS 23 CONSTRUCTION AND MOVED FORWARD IN GOOD FAITH. WHY 24 THE DELAY OF NOT GOING FORWARD AS FAST AS WE WOULD 25 ALL LIKE TO GO FORWARD? IT ISN'T A LEGAL ISSUE, IT 26 IS AN EMOTIONAL ISSUE. THE REASON IS, WE'VE HAD Page 8 1 DIFFICULTY OBTAINING FUNDING FROM LENDERS FOR THIS 2 PROPERTY. AND WHAT THE LIKELIHOOD IS, WE WILL HAVE 3 TO SPEND THE 5440,000 OUT OF OUR OWN POCKET TO BUILD 4 THIS PROPERTY. NOW PUT YOURSELF IN OUR POSITION. S440,000 IS A LOT OF MONEY VERSUS A LOAN FROM THE BANK. WE'VE APPLIED TO SEVERAL BANKS ON THAT LOAN. AND YOU KNOW WE'VE ALREADY PUT $97,000 INTO THE PROPERTY. .-� WHERE WE HAVE THE ISSUE TODAY IS, TWO DAYS 10 AGO WE APPLIED FOR AN INSPECTION. IT WASN'T JUST 1 I TODAY. IT WAS TWO DAYS AGO. THE CITY INSPECTED THE 12 PROPERTY; SAID THERE WERE A FEW CONDITIONS THEY 13 WANTED TO HAVE MET. THEY CAME BACK TODAY AND THEY 14 ISSUED A - THEY SIGNED OFF ON ONE OF THE ISSUES OF 15 WORK. 16 THE CODE ITSELF SAYS THAT WE HAVE TO, 17 QUOTE. "COMMENCE CONSTRUCTION." IT DOESN'T SAY ON 18 SOME UNILATERAL ACTION BY THE CITY BUILDING 19 DEPARTMENT THAT, WELL YOU HAVE'I'O HAVE EVEN AN 20 INSPECTION. THE CODE DOESN'T SAY THAT, AND THE CITY 21 CAN'T - THE BUILDING DEPARTMENT JUST CAN'T MAKE ITS 22 OWN RULES. 23 NOW YOU RAISED AN EXCELLENT POINT. ARE WE 24 APPLYING THE RULE CONSISTENTLY WITH OTHER 25 CONTRACTORS? THIS RULE DOESN'T HAVE ANYTHING TO DO 26 WITH THIS ISSUE TODAY ABOUT DEMOLITION. THE ISSUE Page 9 1 IS, CAN THE CITY GO AND REVOKE OR ALLOW A PERMIT TO 2 EXPIRE WHEN WE'VE COMMENCED CONSTRUCTION? THATS THE 3 SOLE ISSUE. IT CAN'T. WE HAVE SUBSTANTIAL PROPERTY 4 RIGHTS ON THIS PROPERTY. THE EXPOSURE TO THE CITY 5 AND THE LIABILITY IN A LAWSUIT - WHICH WE CERTAINLY 6 DON'T WANT, WE WANT TO PUT OUR MONEY INTO THE 7 PROPERTY. IT'S THAT SIMPLE 3 WHAT I'M SAYING HERE IS WE HAVE A 9 CONSTRUCTION SCHEDULE THAT WE ARE, YOU KNOW - THAT 10 WILL TAKE US ABOUT A YEAR 70 COMPLETE CONSTRUCTION OF 11 THIS PROPERTY. I DON'T THINK THATS NECESSARILY 12 UNUSUAL TO CONSTRUCT. WHEN I BUILT MY HOUSE IT TOOK 13 MY HOUSE OVER A YEAR TO BUILD. 14 IF YOU GO AND LOOK AT THE PROPERTY TODAY, ` t LADIES AND GENTLEMEN, THI: PROPERTY HAS BEEN PARTIED. AND, ACTUALLY, THAT'S FROM ME. CONLON'S GOOD EFFORTS. THERE'S BEEN A MAJOR CLEANUP OF THE PROPERTY. ITS CLEAN. THERE'S A CONSTRUCTION FENCE AROUND THE PROPERTY. 1 REPRESENT TO YOU THAT WITHIN THE NEXT 71 SLX WEEKS WE ARE GOING TO DO A COMPLETE - OR 22 COMPLETE OUR DEMOLITION ON THE PROPERTY, WHICH IS 23 GOING TO COST L'S OVER S20,000. THAT ENTRYWAY, WERE 24 GOING TO TEAR DOWN. WE HAVE TO REMOVE THE FLAP WORK 25 OUTSIDE WE HAVE TO DO SUBSTANTIAL INTERIOR 26 DEMOLITION. MARCH 27, 1997 * * * * * * * * * * * * March 27, 1997 Fage 10 1 SO WHILE I UNDERSTAND THE FRUSTRATION. I'M 2 JUST SAYING HIS IS NOT A DEMOLITION ISSUE WE 3 ARE -• WE ARE NOT EVEN THE PARTIES THAT WERE THERE 4 FOR THE ORIGINAL DEMOLITION PERMIT THAT GOES BACK. I 5 THINK, ACTUALLY TWO OR THREE YEARS ON THIS PROPERTY. 6 WE STARTED CONSTRUCTION, AND ALL WE WANT IS OUR 7 RIGHTS. WE PAID FOR A CONSTRUCTION PERMIT. WE PAID 3 S16,000 TO THE CITY. WE HAVE ACTED IN GOOD FAITH. 9 AND WE JUST WANT TO GO FORWARD AND CONTINUE BUILDING 10 ON OUR PROPERTY. 11 ARE THERE ANY QUESTIONS? 12 MAYOR PRO TEN BENSON: YOU SAID IT WAS 450,000 13 THAT YOU NEED TO FINISH THE PROJECT. DO YOU HAVE 14 THAT MONEY? 15 MR HOMME WELL, WE HAVE THE MONEY, BUT IT'S 16 NOT THROUGH A LOAN. AND WE HAVE ALREADY - OF THAT 17 TOTAL, WE HAVE ALREADY PROBABLY PUT IN DIRECTLY IN 18 CONSTRUCTION COSTS ABOUT S20,000 INTO THE PROPERTY. 19 JUST THE ASBESTOS REMOVAL ON THE PROPERTY, AS I 20 INDICATED, WAS OVER S7,000. HOW THIS CAN BE 21 CONSTRUED AS NOT COMMENCING CONSTRUCTION IS AN 22 AMAZEMENT TO ME. 23 THERE'S SO MANY CONTRACTORS - I AM A 24 DIRECTOR OF THE DESERT CONTRACTORS ASSOCIATION. 25 THERE IS A LOT OF SLACK THE art CUTS WITH 26 CONTRACTORS AS FAR AS WHAT INVOLVES COMMENCEMENT OF Page 11 1 CONSTRUCTION TO GIVE A CONTRACTOR OR DEVELOPER A 2 BREAK BECAUSE THEY DO HAVE PROBLEMS WITH THEIR 3 FINANCING. THE PROBLEM HERE ISN'T COMMENCING 4 CONSTRUCTION. THE PROBLEM IS THE BUILDING DEPARTMENT 5 HAS PUT UP WITH A LOT OF HEAT BECAUSE OF THIS 6 BUILDING, AND ITS BAD BLOOD FROM BEFORE ON THIS 7 BUILDING. 8 CITY COUNCILMAN CRITES: MR. HOMME, YOU'VE HAD 9 NO CONTROL OVER IT THIS LAST YEAR? 10 MR. HOMME: WE'VE HAD CONTROL OVER IT AND WE'VE 11 ACTED - 12 CITY COUNCILMAN CRITES: WELL, I JUST - 13 MR HOMME: RIGHT, WE'VE - 14 CTIY COUNCILMAN CRITES: THE ISSUE IS NOT FROM 15 WAY BACK WHEN. 16 MR HOMME: WELL, NO, WHAT I'M TALKING ABOUT - 17 CITY COUNCILMAN CRITES: I SEEM TO REMEMBER IT 13 BEING IN THE DESERT SUN A SHORT TIME AGO, DIDN'T I? 19 MR. HOMME: PARDON ME? 20 CITY COUNCILMAN CRITES: I THINK I REMEMBER SOME 21 THINGS DURING THIS LAST YEAR ABOUT THAT PROPERTY AND 22 ABOUT SOME OF THE WAYS IN WHICH IT'S BEEN TREATED AND 23 WHAT HASN'T HAPPENED. SO WHILE YOU MAY OR MAY NOT 24 HAVE AN ISSUE ABOUT THIS. TO SUGGEST THAT ALL OF 25 THESE ISSUES ARE BACK IN THE OLD DAYS BEFORE YOU WERE 26 THERE IS, I THINK, SOMETHING THAT YOU'RE ILL-ADVISED Page 12 1 SAYING. AND I THINK EVEN YOU KNOW THAT'S NOT TRUE 2 MR. HOMME: WELL NO, WHAT I WAS REFERRING TO, 3 COUNCILMAN, IS THE PROPERTY WAS PUT INTO ITS 4 CONDITION PRIOR TO US OWNING THE PROPERTY. I'M NOT 5 SAYING WE'RE NOT - WE HAVEN'T BEEN IN CONTROL OF THE 6 PROPERTY IN THE LAST YEAR. THATS ALL I'M SAYING. 7 CITY COUNCILMAN CRITES: AND THE ISSUES THAT 8 HAPPENED DURING THE LAST YEAR HAVE BEEN WHILE YOU 9 HAVE BEEN IN CONTROL OF THAT PROPERTY. 10 MR. HOMME: ABSOLUTELY. NO QUESTION. 11 ABSOLUTELY. 12 MAYOR PRO TEM BENSON: DO YOU HAVE ANY 13 QUESTIONS? 14 CITY COUNCILMAN SPIEGEL: YEAH, I HAVE ONE. 15 FIRST OF ALL, DO YOU HAVE THE BILL TO SHOW 16 THE S95,000 YOU HAVE REINVESTED? 17 MR. HOMME: I WILL BE HAPPY TO SUBMIT THAT FOR 18 THE RECORD. HERE'S THE COMPUTER - 19 CITY COUNCILMAN SPIEGEL: I APPRECIATE THAT. 20 AND SECONDLY. YOU SAID THAT YOU'LL NOW 21 HAVE EVERYTHING PRETTY WELL UNDER CONTROL IN 22 APPROXIMATELY A YEAR. 23 MR HOMME: ABSOLUTELY. 24 CITY COUNCILMAN SPIEGEL: IS THERE ANY KIND OF A 25 TIME FRAME THAT THE CITY CAN SEE, AND IF YOU DON'T 26 LIVE UP TO THAT TIME FRAME. THEN WE WOULD GO AHEAD Yates & Associates 25 Page 7 - Page 12 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING * * * * * * * * * * * * * * * * * * * * EXHIBIT "B" Esquire Apartments Condenselt"'I Page 13 1 WITH THE COURT ORDER? 1 2 MR. HOMME: WELL, THAT'S A MULTI -PART QUESTION. 2 3 FIRST, WE HAVE A CONSTRUCTION SCHEDULE 3 4 THAT I'D BE HAPPY TO SUBMIT THAT WE PREPARED. 4 5 I MEAN, TECHNICALLY THE ISSUE IS, HAVE WE 5 6 COMMENCED CONSTRUCTION? AND YOU'RE RIGHT, WILL WE 6 7 KEEP TO THE SCHEDULE OR NOT? BUT I'D BE HAPPY TO 7 3 CONTINUE THIS MEETING UNTIL MAY 15 AND SHOW TO YOU 3 9 OUR GOOD FAITH THAT WE PUT OVER 22,000 JUST DOING 9 10 DEMOLITION ON THE FIRST PART OF THE CONSTRUCTION 10 II SCHEDULE. 1'D BE HAPPY TO DO THAT. 11 12 CITY COUNCILMAN SPIEGEL: YOU'VE ALREADY CHANGED 12 13 APRIL THE 30TH TO MAY 15TH. 13 14 MR. HOMME: THE REASON I DID THAT IS BECAUSE I'M 14 15 NOT GOING TO STAND UP AND MAKE A PROMISE FOR MY 15 16 CLIENT THAT I DON'T THINK WE CAN KEEP. THE 16 17 CONTRACTOR IS HERE AND HE SAID, MARC, IT WILL TAKE AT 17 13 LEAST SIX WEEKS TO COMPLETE THAT. AND IT'S THAT 18 19 SIMPLE. 19 20 MAYOR PRO TEM BENSON: WHAT GUARANTEE DO WE 20 21 HAVE, THOUGH, AFTER THAT BIT IS DONE, WHICH IS JUST 21 22 TAKING CARE OF THE IMMEDIATE, THAT YOU'RE GOING TO 22 23 CONTINUE AND FINISH IT ON SCHEDULE? DO WE HAVE ANY 23 24 FINANCIAL BOND OR ANYTHING THAT YOU'RE WILLING TO PUT 24 25 UP TO SHOW? 25 26 MR. HOMME: WELL, WHAT YOU COULD DO IS YOU COULD 26 Page 14 1 CONTINUE YOUR HEARINGS AND WE COULD HAVE REVIEWS OF 2 IT AS WE GO. AND IF YOU — AND THE CITY COUNCIL IS 3 FREE TO TAKE — TO ATTEMPT TO TAKE ANY ACTION THEY 4 WANT IF THEY DON'T THINK WE'RE GOING TO COMPLY WITH 5 THAT SCHEDULE BUT I BELIEVE WE WILL COMPLY WITH THE 6 SCHEDULE. 7 CITY COUNCILMAN CRITES: I WOULD LIKE TO ASK THE 8 CITY ATTORNEY WHETHER OR NOT HE'S COMFORTABLE WITH 9 STAFF RECOMMENDATION, OR DOES HE BELIEVE WHAT 10 MR HOMME HAS SUGGESTED? 11 CITY ATTORNEY IRWIN: I HAVE NOT SEEN ANY OF 12 MR HOMME'S DOCUMENTS. 'THEY'RE BEING PASSED AROUND. 13 I DID GO WITH MR. CONLON THIS AFTERNOON TO 14 THE APARTMENTS. THE COUNCIL SHOULD BE AWARE THAT 15 THEY HAVE PUT INTO TWO OF THE APARTMENTS SOME GROUND 16 PLUMBING. IT IS — IF IT IS COMMENCEMENT, IT IS A 17 BARE COMMENCEMENT, IN MY ESTIMATION. 18 AND I GO BACK AND RELY UPON COUNCIL'S — 19 AT LEAST ONE MEMBER OF THE COUNCIL, I THINK WILL 20 RECALL THE EXERCISES THAT THIS CITY WENT THROUGH IN 21 1973 WHEN THE QTY INCORPORATED, WHEN WE HAD A NUMBER 22 OF ISSUES LIKE THIS DEPENDENT UPON WHETHER THE COUNTY 23 PERMITS THAT HAD BEEN ISSUED, WHETHER CONSTRUCTION 24 HAD BEEN COMMENCED UNDER THOSE OR NOT. IF I WERE TO 25 COMPARE THIS WITH WHAT WE DID AT THAT TIME, THIS 26 WOULD NOT BE A COMMENCEMENT OF CONSTRUCTION. Page 15 l CITY COUNCILMAN SPIEGEL: HAVE YOU READ THE 2 COURT ORDER? 3 CITY ATTORNEY IRWIN: YES, I HAVE A COPY OF THE 4 COURT ORDER HERE, IF COUNCIL WOULD LIKE TO SEE IT. 5 BASICALLY IT STARTS WITH THE STIPULATION THAT REALLY 6 EXTENDS THE DEMOLITION ORDER WHICH WAS TO BE 7 ACCOMPLISHED OCTOBER 1 OF '96. IT EXTENDS IT FOR 8 THIS PERIOD OF TIME. 9 THE CONSTRUCTION THAT HAS BEEN DONE, THERE 10 HAS BEEN A START OF SOMETHING. I DO NOT BELIEVE IT 11 IS SUBSTANTIAL CONSTRUCTION. 12 CITY COUNCILMAN CRITES: IT MIGHT BE APPROPRIATE 13 TO MOVE THE STAFF RECOMMENDATION ONLY ALLOWING THE 14 MAYOR TO SIGN OR TO SO CERTIFY AFTER VISITING WITH 15 THE CITY ATTORNEY AND MAKING SURE THE CITY ATTORNEY 16 IS SATISFIED — 17 CITY ATTORNEY IRWIN: I THINK THAT'S 18 APPROPRIATE- 19 CITY COUNCILMAN CRITES: — WITH THE CITY'S 20 LEGAL POSITION. 21 CITY COUNCILMAN SPIEGEL: I'LL SECOND. 22 MAYOR PRO TEM BENSON: ANY OTHER DISCUSSION? 23 VOTE ON THE MOTION. 24 CITY CLERK GILLIGAN: HAS EVERYONE VOTED? 25 MOTION CARRIES BY UNANIMOUS VOTE. 26 (END OF PROCEEDINGS.) Yates & Associates 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 MARCH 27, 1997 * * * * * * * * * * * * CERTIFICATE STATE OF CALIFORNI1 SS COUNTY OF RIVERSIDE ) March 27, 1997 Page 16 I, TAMARA A. BARON, C.S.R. NO. 6874, A CERTIFIED SHORTHAND REPORTER IN AND FOR THE STATE OF CALIFORNIA, DO HEREBY CERTIFY: THAT THE SAID PROCEEDINGS WERE TAKEN BEFORE ME AT THE TIME AND PLACE THEREIN STATED, AND WAS THEREAFTER TRANSCRIBED INTO TYPEWRITING UNDER MY DIRECTION AND SUPERVISION, AND I HEREBY CERTIFY THE FOREGOING IS A FULL, TRUE AND CORRECT TRANSCRIPT OF MY SHORTHAND NOTES SO TAKEN. I FURTHER CERTIFY THAT I AM NOT OF COUNSEL OR ATTORNEY FOR EITHER OF THE PARTIES HERETO OR IN ANY WAY INTERESTED IN THE EVENT OF THIS CASE AND THAT I AM NOT RELATED TO EITHER OF THE PARTIES THERETO. WITNESS MY HAND THIS 7TH DAY OF APRIT., 1997. Z-11~5 ON CERTIFIED COPY CERTIFICATE Page 17 I, TAMARA A. BARON, A CERTIFIED SHORTHAND REPORTER, NO. 6874, HEREBY CERTIFY THAT THE ATTACHED TRANSCRIPT IS A CORRECT COPY OF THE ORIGINAL TRANSCRIPT OF THE PROCEEDINGS TAKEN BEFORE ME ON MARCH 27, 1997, AS THEREON STATED. I DECLARE UNDER PENALTY OF PERJURY THAT THE FOREGOING IS TRUE AND CORRECT. EXECUTED AT PALM SPRINGS, CALIFORNIA, THIS 7TH DAY OF APRIL, 1997. TAMARA A. BARON C.S.R. NO. 6874 Page 13 - Page 17 26 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING * * * * * * * * * * * * * * * * * * * Esquire Apartments $16,000 [3] 7:5 AMAZEMENT [1] 7:19 10:8 10:22 $168,580pi 5:25 ANSWER pi 3:10 $20,000 [2] 9:23 APARTMENT p1 10:18 3:20 3:21 4:7 $23,900 [2] 5:24 APARTMENTS pi 6:2 3:15 14:14 14:15 $440,000 [2] 8:3 APPEARANCES p1 8:5 2:1 $7,000 [21 7:9 APPLICANT p1 10:20 4:3 $9,000 [1] 7:10 APPLIED [2] 8:6 $95,000 pi 12:16 8:10 $97,000 [2] 7:8 APPLYING [11 8:24 8:7 APPRECIATE P1 '96 [11 15:7 12:19 00 [2] 1:12 3:2 APPROPRIATE (2] 1 [11 15:7 15:12 15:18 15 (1) 13:8 APPROVE [1] 4:15 15TH [1] 13:13 APPROVED (1] 1973 p] 14:21 4P 1997 pi 1:8 3:1 ��' p1 13:13 16:19 17:11 16:19 17:7 17:11 AREA [1] 5:17 22,000 (11 13:9 ASBESTOS [2] 7:10 3:1 10:19 ASSOCIATION [1] 10:24 ATTACHED (11 17:4 ATTEMPT P] 3:10 14:3 ATTORNEY (11] 2:7 3:6 3:20 6:10 14:8 14:11 15:3 15:15 15:15 15:17 16:16 AUTHORIZE p] 5:16 AUTHORIZING (1] 4:26 AWARE p] 14:14 ACCOMPLISHED p1 BACKGROUND [11 15:7 6:15 10:8 BAD (1] 11:6 BANK [1] 8:6 BANKS pi 8:6 BARE [11 14:17 4:8 BARON [s] 1:21 16:6 16:22 17:3 17:17 BEHIND (1] 5:12 BENSON [s1 2:3 3:4 3:12 6:7 10:12 12:12 13:20 15:22 BIDS [11 5:20 BILL (1] 12:15 BIT [1] 13:21 BLOOD [11 11:6 12:26 BOND (1] 13:24 9:1 BOUGHT p] 6:19 6:20 6:25 BREAK [11 11:2 BUFORD [1] 2:5 ?7 [31 1:8 17:7 3 (11 5:14 30TH [11 4 (21 1:12 450,000 [11 6874 [s] 1:22 16:22 17:4 73-510 (1] 7TH [2] 16:19 85 p1 7:8 9 p] 6:4 ABATEMENT [11 6:26 ABSOLUTELY p] 12:10 12:11 12:23 ACTED p1 11:11 ACTION pi 7:17 7:17 14:3 ACTIVE [11 ADDRESS [11 13:13 3:2 10:12 16:6 17:18 1:17 17:11 7:1 8:18 4:12 ADMINISTRATIVELY [11 4:2 AFTERNOON p1 3:19 6:9 14:13 AGAINST p1 7:1 7:1 AGENDA [2] 3:16 AGO (416:21 8:11 11:18 AHEAD (11 ALLOW [11 ALLOWING [11 15:13 3:7 8:10 EXHIBIT "B" CondenseIt�' BUILD [21 8:3 9:13 BUILDING 11613:17 3:24 5:15 7:19 8:18 8:21 10:9 11:4 11:6 11:7 BUILT p1 9:12 C [21 16:1 16:1 C.S.R (4) 1:22 16:6 16:22 17:18 CALENDAR [1] 3:9 CALIFORNIA (s7 1:17 3:1 16:3 16:8 17:10 CARE [11 13:22 CARRIES (1] 15:25 CASE [3) 4:6 4:9 16:17 CENTER p] 1:16 CERTAIN (1] 7:18 CERTAINLY [2] 5:12 9:5 CERTIFICATE (1] 17:1 CER111(1hD p] 16:6 17:1 17:3 CERTIFY pi 15:14 16:8 16:12 16:15 17:4 CHAMBERS (1] 1:16 CHANGED (1] 13:12 CHARGE [2] 62 6:3 MARCH 27, 1997 * * * * * * * * * * * * * $ 16,0 COMMENCE pi 8:17 COMMENCED [4] 7:22 9:2 13:6 14:24 COMMENCEMENT [61 3:23 4:1 10:26 14:16 14:17 14:26 COMMENCING 121 10:21 11:3 COMMENT p] 6:13 COMPARE [11 14:25 COMPLETE [ii 4:3 4:7 4:10 5:3 9:10 9:21 9:22 13:18 COMPLEX (2) 3:21 4:7 COMPLY [21 14:4 14:5 COMPUTER (11 12:18 CONDITION [3] 6:22 6:24 12:4 CONDITIONS p] 8:12 CONFUSED [1] 6:5 CONLON (13] 3:8 3:13 4:14 4:17 4:21 5:5 5:8 5:19 5:22 6:4 6:13 6:16 14:13 CITY (s41 1:4 2:4 2:5 2:6 2:7 2:8 3:6 3:20 4:14 4:18 5:1 5:6 5:18 5:19 5:23 5:26 6:1 7:2 7:5 7:17 7:20 8:11 8:18 8:20 9:1 9:4 10:8 10:25 11:8 11:12 11:14 11:17 11:20 12:7 12:14 12:19 12:24 12:25 13:12 14:2 14:7 14:8 14:11 14:20 14:21 15:1 15:3 15:12 15:15 15:15 15:17 15:19 15:21 15:24 C1TY'S p] 15:19 CIVIC (1] 1:16 CLEAN p] 6:8 9:18 CLEANUP PI 7:11 9:17 CLEAR [11 7:5 CLERK (1] 15:24 CLIENT (1] 13:16 CODE [4] 3:24 4:1 8:16 8:20 COMFORTABLE p] 5:6 5:8 14:8 CONSTRUED [1] 10:21 CONTEXT p1 3:26 CONTINUE [4] 10:9 13:8 13:23 14:1 CONTRACT (2] 4:15 4:21 CONTRACTOR [2] 11:1 13:17 CONTRACTORS (5] 4:20 8:25 10:23 CONLON'S [2] 7:3 9:16 CONSENT (2] 3:4 3:9 CONSISTENT (21 4:19 5:4 CONSISTENTLY (11 DAVE [2] 8:24 5:17 CONSTITUTED p] DAVE'S pi 3:23 CONSTITUTES (1] DAVID [11 3:26 CONSTRUCT pi 9:12 CONSTRUCTION [2o1 4:24 7:23 8:17 9:2 9:9 DECLARE [11 9:10 9:18 10:6 DEEPLY [11 10:7 10:18 10:21 DELAY [2] 11:1 11:4 13:3 7:24 13:6 13:10 14:23 00 - DEPLORABLE 10:24 10:26 CONTROL [5] 11:9 11:10 12:5 12:9 12:21 COPY [41 3:16 15:3 17:1 17:5 CORRECT p] 16:13 17:5 17:9 COSTA] 9:23 COSTS p] 10:18 COUNCIL pit 1:4 1:16 3:10 3:14 3:14 6:14 6:18 14:2 14:14 14:19 15:4 COUNCIL' S (11 14:18 COUNCILMAN [271 2:4 2:5 2:6 4:14 4:18 5:1 5:6 5:18 5:19 5:23 6:1 11:8 11:12 11:14 11:17 11:20 12:3 12:7 12:14 12:19 12:24 13:12 14:7 15:1 15:12 15:19 15:21 COUNSEL [1] 16:15 COUNTY [2] 14:22 16:4 COURT [51 4:25 5:15 13:1 15:2 15:4 CRITES [1s] 2:5 4:14 4:18 5:1 5:6 5:18 11:8 11:12 11:14 11:17 11:20 12:7 14:7 15:12 15:19 CUTS pi 10:25 DATE p] 1:7 5:11 3:22 2:7 DAYS [3] 8:9 8:11 11:25 DEAL (11 7:4 DEBT (2] 6:26 7:5 17:8 6:16 7:14 14:26 15:9 15:11 DEMOLITION (131 4:16 4:23 4:26 5:21 7:11 9:22 9:26 10:4 13:10 5:16 8:26 10:2 15:6 DEPARTMENT [4] 4:2 8:19 8:21 11:4 DEPENDENT p] 14:22 DEPLORABLE [11 6:22 Yates & Associates 27 Index Page 1 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING * * * * * * * * * * * * * * * * * * * Esquire Apartments DESERT [6] 1:4 1:17 3:1 6:10 10:24 11:18 DEVELOPER pi 11:1 DIAZ [2] 2:8 5:26 DIP1-hRENCE p] 5:25 DIFFERENT p] 4:9 DIFFICULTY p] 8:1 DIRECTION p] 16:12 DIRECTLY p] 10:17 DIRECTOR p1 10:24 DISCUSSION p] 15:22 DISMISSED p] 7:18 DOCUMENTS p] 14:12 DOESN'T [3] 8:17 8:20 8:25 DONE p] 7:12 13:21 15:9 DOUG p] 7:3 DOWN p] 9:24 DRIVE (1] 1:17 DURING [2] 11:21 12:8 E [2] 16:1 16:1 EFFORTS [3] 7:3 7:4 9:17 EITHER [2] 16:16 16:18 EMOTIONAL p1 7:26 END p] 15:26 ENFORCED (2] 4:2 4:19 ENTRYWAY p] 9:23 ERWINpi 2:7 ESQUIRE pi 3:15 ESTIMATION p] 14:17 EVENT p1 16:17 EXACTLY [2] 3:22 3:26 EXCELLENT p] 8:23 EXECUTED p1 17:10 EXERCISES (i1 14:20 EXPIRATION p] 5:14 EXPIRE [2] 4:25 9:2 EXPIRED p] 3:18 EXPIRES p1 3:25 EXPOSURE p] 9:4 Yates & Associates EXTENDS [2] 15:6 15:7 Fp] 16:1 FAITH [3] 7:23 10:8 13:9 FAR pi 10:26 FASHION p1 5:4 FAST p] 7:24 FELT pi 3:22 FENCE p] 9:18 FEW pi 8:12 FINANCIAL p] 13:24 FINANCING [i] 11:3 FINISH [2] 10:13 13:23 FIRST [s] 4:4 5:3 12:15 13:3 13:10 FITS (u 5:2 FLAP p] 9:24 FOLKS [2] 4:12 5:12 FORECLOSURE[2] 6:20 6:23 FOREGOING [2] 16:13 17:9 FORWARD [s] 7:2 7:23 7:24 7:25 10:9 FRAME [2] 12:25 12:26 FRED [i] 1:17 FREE p] 14:3 FRUSTRATION p] 10:1 FULL p] 16:13 FUNDING p] 8:1 GENEVIEVE p] 6:11 GENTLEMEN p] 9:15 GILLIGAN p] 15:24 GOES p] 10:4 GOOD [a] 6:9 6:14 7:3 7:4 7:23 9:16 10:8 13:9 GRIP pi 5:26 GROUND p] 14:15 GROUNDWAY [i] 3:19 GUARANTEE pi 13:20 GUIDANCE p] 5:17 HAMMERS [i] 5:26 HAND p] 16:19 HAPPY [4] 12:17 13:4 13:7 13:11 HEARINGS p] 14:1 HEAT (i] 11:5 HELD p] 3:5 EXHIBIT "B" CondenseItr` ' HEREBY (3] 16:8 16:12 17:4 HERETO p1 16:16 HISTORICAL [I] 6:15 HISTORY p] 7:15 HOMME [16] 6:10 10:15 11:10 11:13 11:19 12:2 6:9 11:8 11:16 12:10 12:17 12:23 13:2 13:14 13:26 14:10 HOMME'S p1 14:12 HOUSE [2) 9:12 9:13 ILL-ADVISED p] 11:26 IMMEDIATE [1] 13:22 INCLUDE p] 7:12 INCLUDES [2] 7:9 7:10 INCORPORATED p] 14:21 INDICATED p] 10:20 INSPECTED p] 8:11 INSPECTION [9] 3:18 3:19 4:4 4:4 4:7 4:10 4:10 8:10 8:20 INTERESTED p] 16:17 INTERIOR pi 9:25 INVOLVES p] 10:26 IRWIN [41 3:6 14:11 15:3 15:17 ISSUE p3] 4:12 5:10 6:18 7:25 7:26 8:9 8:26 8:26 9:3 10:2 11:14 11:24 13:5 ISSUED [z] 8:14 14:23 ISSUES [6] 4:19 5:2 8:14 11:25 12:7 14:22 ITEM p] 3:4 ITEMS p] 3:5 ITSELF p] 8:16 J p] 2:7 JEAN p] 2:3 KEEP [2] 13:7 13:16 KIND [2] 6:17 12:24 KNOWN p] 6:17 LADIES p] 9:15 LAST [4] 11:9 11:21 12:6 12:8 LAWSUIT p] 9:5 LEAST [21 13:18 14:19 LEGAL [2] 7:25 MARCH 27, 1997 * * * * * * * * * * * * * 15:20 LENDERS p] 8:1 LIABILITY (i] 9:5 LIKELIHOOD p] 8:2 LIST p] 6:4 LIVE p] 12:26 LLC p1 6:11 LOAN [3) 8:5 8:6 10:16 LOCATION (q 1:15 LOOK p1 9:14 Mp] 2:3 MADAM [2] 3:6 3:13 MAJOR p] 9:17 MANAGER [2) 2:8 5:26 MARC [2] 6:9 13:17 MARCH [3] 1:8 3:1 17:7 MAY [4] 11:23 11:23 13:8 13:13 MAYOR p2] 2:3 3:4 3:6 3:12 3:13 3:14 6:7 10:12 12:12 13:20 15:14 15:22 MEAN pi 13:5 MEETING [2] 1:4 13:8 MEMBER pi 14:19 MEMBERS p] 3:13 MET p] 8:13 MIGHT [2] 6:4 15:12 MIND p] 4:11 MISSING [i1 6:17 MONEY [4] 8:5 9:6 10:14 10:15 MOTION [2] 15:23 15:25 MOVE p] 15:13 MOVED p] 7:23 MULTI -PART p] 13:2 NAME p] 6:9 NECESSARILY [11 9:11 NECESSARY p] 4:4 NEED p] 10:13 NEGOTIATED [2] 7:2 7:4 NEVER p] 4:21 NEXT [2] 3:4 9:20 NINE ri] 5:20 NOTE p] 6:20 NOTES pi 16:14 NOTHING p] 4:25 NOW [3] 8:4 28 DESERT - PRO 8:23 12:20 NUISANCE p] 4:23 NUMBER p] 14:21 OBTAINING p] 8:1 OCTOBER pi 15:7 OFF pi 3:7 8:14 OLD [21 7:1 11:25 ONE m 5:20 5:24 6:2 6:3 8:14 12:14 14:19 OPINION [3] 3:22 5:11 5:13 ORDERm 4:23 4:25 5:15 13:1 15:2 15:4 15:6 ORIGINAL [2] 10:4 17:5 OUTSIDE p] 9:25 OWN [2] 8:3 8:22 OWNER [3] 6:11 7:1 7:6 OWNING p] 12:4 P.M [2] 1:12 3:2 PACKET p] 3:9 PAID [6] 7:4 7:18 7:19 7:20 10:7 10:7 PAINTED p] 9:15 PALM pi 1:4 1:17 3:1 6:10 17:10 PARDON p] 11:19 PART p] 13:10 PARTIAL [3] 3:19 4:10 5:3 PARTIES (4] 7:18 10:3 16:16 16:18 PASSED p] 14:12 PAST [2] 4:20 52 PENALTY [I] 17:8 PENDING p] 4:22 PEOPLE 11 3:8 PERIOD 1] 15:8 PERJURY 11 17:8 PERMIT m 3:25 4:8 5:15 7:20 9:1 10:4 10:7 PERMITS [3] 3:17 4:25 14:23 PHILLIPS' 1] 7:3 PLACE 1] 16:10 PLUMBING (2] 7:13 14:16 POCKET p] 8:3 POINT [4] 4:18 4:22 5:10 8:23 POSITION [2] 8:4 15:20 PREPARED p] 13:4 PRETTY p] 12:21 PRO [v] 2:3 3:4 Index Page 2 EXHIBIT "B" O v_, 00 M _M _N /� ,O N •-. _ _ d' 0 _N Vl N Tr h 00 -. 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""d ^da: oLaoEoC aC �a` �o4`�acG� i Yates & Associates MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING * * * * * * * * * * * * * * * * * * * * * * * * * * MARCH 2* * * *, *9*7 EXHIBIT "C" Mar-27-97 04:18P GENEVIEVE COURT APARTMENTS 73-555 San Gorgonio Way Palm Desert, CA 92260 CONSTRUCTION COMPETION SCHEDULE Complete Demolition Ground Plumbing and Electrical Complete Framing Air Conditioning Prep Work Rough Plumbing and Electrical I.a th Roofing Drywall Plaster Finish Carpentry Paint Cabinets Concrete Decks and Flatwork Finish Plumbing and Electrical Complete Air Conditioning Pool Equipment and Pool Plaster Floor Coverings Landscaping soV, 1997 June 15, 1997 August 1, 1997 September 1, 1997 September 15, 1997 October 1, 1997 November 1, 1997 December 1, 1997 January 15, 1998 January 20, 1998 January 25, 1998 February 1, 1998 February 15, 1998 March 1, 1998 March 1, 1998 March 15, 1998 March 15, 1998 April 1, 1998 P.O1 30