Loading...
HomeMy WebLinkAbout1999-07-08MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING THURSDAY, JULY 8, 1999 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * I. CALL TO ORDER Mayor Spiegel convened the meeting at 4:04 p.m. H. PLEDGE OF ALLEGIANCE - Councilman Jim Ferguson III. INVOCATION - Councilmember Jean M. Benson IV. ROLL CALL Present: Councilmember Jean M. Benson Mayor Pro-Tempore Buford A. Crites Councilman Jim Ferguson Councilman Richard S. Kelly Mayor Robert A. Spiegel Also Present: Ramon A. Diaz, City Manager David J. Erwin, City Attorney Sheila R. Gilligan, Director of Community Affairs/City Clerk Carlos L. Ortega, RDA Executive Director Richard J. Folkers, ACM/Director of Public Works John M. Wohlmuth, ACM/Director of Administrative Services Patrick Conlon, Director of Building and Safety Phil Drell, Director of Community Development Paul S. Gibson, Director of Finance/City Treasurer Rachelle D. Klassen, Deputy City Clerk V. ORAL COMMUNICATIONS - A MS. DENA BLUE MOON, resident of the Desert Breezes Community, Palm Desert, said she was concerned about noise that she and many other residents of condominium developments encountered. She said they were frequently backed up to other housing communities that were unregulated, and the noise was sometimes outrageous. On three separate occasions, she had called Palm Desert Police to quiet her neighbors on Warner Trail who were having noisy pool parties, playing basketball, screaming and yelling. She went on to say that each time she went to the Police Department (today being the third time) to see a copy of the file, she'd been told no notes were on file, nor did a file even exist, and she was disturbed by that fact. She cited a chapter of the Municipal Code, 9.24.040, which MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JULY 8,1999 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * specifically addressed the issue of noise pollution that came from sources other than tractors, machinery, etc., noting that was what she was dealing with and hoping to resolve. Mayor Spiegel directed Ms. Blue Moon to provide her telephone and address information to the City Clerk so that Mr. Diaz could contact her for specifics on the situation to determine how best to resolve it. MS. BLUE MOON said her other issue was that in the Code, it talked about the use of decibel meters. When she asked the Police Department for such an item to monitor the noise at her home at various times of the day, as allowed by the Code, she was told the Police had no such meters. VI. CONSENT CALENDAR A. MIN-111 ES of the Regular City Council Meeting of June 24, 1999. Rec: Approve as presented. B. CLAIMS AND DEMANDS A(3AINST THE CITY TREASURY - Warrant Nos. 58, 59, and 58PD Office Complex. Rec: Approve as presented. C. APPLICATION FOR ALCOHOLIC BEVERAGE LICENSE, by William L. Mortz, for Fisherman's Market & Grill, 44-250 Town Center Way, Palm Desert. Rec: Receive and file. D. PORTFOLIO MASTER SUMMARY for the Period Ending May 31, 1999. Rec: Receive and file. E. MINUTES of the City Committee/Commission Meetings. 1. Citizen's Advisory Committee for Project Area No. 4 Meeting of May 17, 1999. 2. Investment Committee Meeting of May 19, 1999. Rec: Receive and file. F. REOUEST FOR AUTHORIZATION to Advertise and Call for Bids Fall Rye Grass Overseeding (Contract No. 16220). Rec: By Minute Motion, authorize the City Clerk to advertise and call for bids for the subject project. 2 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JULY 8, 1999 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * G. REQUEST FOR AUTHORIZATION to Advertise and Call for Bids for Desert Willow Lake Maintenance (Contract No. C16230) and Pump Station (Contract No. C16240). Rec: By Minute Motion, authorize the City Clerk to advertise and call for bids for the subject project. H. RF& LEST FOR AUTHORIZATION to Obtain Parkview Office Complex Tenant Improvement Construction (Contract No. C15510). Rec: By Minute Motion, authorize the City Manager to review and sign lowest responsible bidder for the subject project. I. REOUEST FOR AUTHORIZATION to Purchase Metal Shelving System for Civic Center Storage. Rec: By Minute Motion, authorize staff to negotiate the purchase of metal shelving system for the Civic Center storage area with Shelf Master, Inc., Anaheim, California, in an amount not to exceed $10,000. 3. REOUEST FOR APPROVAL of Contract for Fixed Asset and Infrastructure Inventory (Contract No. C16250). Rec: By Minute Motion, approve contract with Valuation Resource Management, Beverly Hills, California, in the amount of $18,270, for subject project. K. REOUEST FOR APPROVAL of Second Amendment to Management Agreement for Golf Course Operations (Contract No. R11921). Rec: By Minute Motion, approve the Second Amendment to Management Agreement with Kemper Sports Management, Inc., Northbrook, Illinois. L. REOUEST FOR APPROVAL of Change Order No. 1 to Contract No. C13800 -- Engineering Design of Highway 111 and Portola Avenue (Project No. 653-97). Rec: By Minute Motion, approve Change Order No. 1 to subject contract with The Keith Companies, Palm Desert, California, in the amount of $2,500. M. REQUEST FOR ACCEPTANCE OF WORK for Contract No. C13050 -- Pedestrian Safety Improvements at Fred Waring Drive and San Pascual (Project No. 632) (Computer Service Company, Indio, California). Rec: By Minute Motion, accept the work as complete and authorize the City Clerk to file a Notice of Completion for the subject project. 3 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JULY 8, 1999 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * N. REQUEST FOR APPROVAL of a Fee Increase for Legislative Representative. Rec: By Minute Motion, approve a fee for Joe Gonsalves & Associates, Contract No. 299-1, in the amount of $2,600 per month, effective July 1, 1999 O. REOUEST FOR APPROV • of an Art Education Program for Civic Center Park. Rec: By Minute Motion, approve the program recommended by the Civic Arts Committee and as outlined in the staff report. P REQUEST FOR APPROVAL of Final Tract Map 25296-2 (Bighorn Development, LLC, Applicant). Q. Rec: Waive further reading and adopt Resolution No. 99-69, approving Tract Map No. 25296-2. LE11ER OF RESIGNATION from Bernard Kurtz from the Joslyn Senior Center Board of Directors. Rec: Receive with very sincere regret. R. REQUEST FOR APROVAL of Memorandum of Understanding with Retired and Senior Volunteer Program for Palm Desert Visitor Information Center. This item was removed for separate consideration under Item VII, Consent Items Held Over. Please see that portion of the Minutes for discussion and action. Councilman Ferguson asked that Item R be considered separately under Item VII, Consent Items Held Over. Upon a motion by Councilman Ferguson, second by Mayor Spiegel, and unanimous vote of the City Council, the remainder of the Consent Calendar was approved as presented. VH. CONSENT ITEMS HELD OVER R. REQUEST FOR APPROVAL of Memorandum of Understanding with Retired and Senior Volunteer Program for Palm Desert Visitor Information Center. Councilman Ferguson said when reading the subject MOU, he was concerned about the provision which specified mileage and meal reimbursement would be provided to the low income volunteers. He wondered whether the City should provide same for all of its volunteers. 4 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JULY 8, 1999 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * Mrs. Gilligan noted the provision was subject to availability of funds, and the City didn't fund volunteers at the Library or the Visitor Center, adding that the Council could choose to do so; however, it was not presently a policy. Mayor Spiegel commented that after speaking earlier with Mrs. Gilligan, he learned the subject program was something new. He said the MOU was drafted by RSVP. Mrs. Gilligan stated RSVP was funded annually through the City's Outside Agency Funding program, but the services of their volunteers had not been utilized, and she felt this was a good way to do so. Councilman Kelly felt there would be future problems if the City chose to reimburse these volunteers and not any others, when it had available funds. Mayor Spiegel concurred. In response to Mayor Spiegel, Councilman Ferguson said his concern was that the City should be consistent, either funding all or none of its volunteers. Mrs. Gilligan stated Item (e) of the subject MOU could be eliminated, and RSVP would be advised that if they needed to fund those volunteers, they could do so from the Outside Agency Funding already provided by the City. Councilman Ferguson moved to, by Minute Motion, approve Memorandum of Understanding, as amended by eliminating the provision for mileage/meal reimbursement to low income volunteers, advising RSVP that it use funds already provided by the City from its Outside Agency Funding amount to make such reimbursement, and authorize Mayor to execute same. Motion was seconded by Councilman Kelly and carried by unanimous vote. VIII. RESOLUTIONS A. RESOLUTION NO. 99-70 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, MAKING A FURTHER APPROPRIATION TO THE REDEVELOPMENT REVOLVING LOAN FUND (JOINT CONSIDERATION WITH THE PALM DESERT REDEVELOPMENT AGENCY). Mr. Ortega said the subject matter was a housekeeping item; it recognized the loan made to the Agency for purchase of the parcel known as the Ahmanson property. In response to Councilman/Member Ferguson's question about the loan's term, Mr. Ortega said there was no date certain when it needed to be repaid, the Agency just kept paying interest to the City. Councilman/Member Ferguson moved to waive further reading and adopt Resolution No. 99-70. Motion was seconded by Councilman/Member Kelly and carried by unanimous vote. 5 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING DULY 8, 1999 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * B. RESOLUTION NO. 99-71 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, CALLING FOR A REGIONAL AIRPORT PLAN FOR SOUTHERN CALIFORNIA. Mr. Ray Janes, Management Analyst, said the subject resolution was brought to the City at the request of the City of El Segundo, which asked Palm Desert to join the effort to oppose the $12 billion expansion at Los Angeles International Airport (LAX). He said some of their concerns were for traffic, noise, and pollution, in addition to noting that most of the population increases in the next 10-20 years in Southern California would occur in the Inland Empire area. Therefore, the Regional Airport Plan recommended that a majority of the federal transit funds be channeled to Ontario or Palmdale airports, also El Toro, if approved. He said there were currently 65 cities in the coalition, along with some agencies like CVAG and RCTC. Councilman Kelly added that it made no sense to build up an airport in one location when there were many other facilities throughout the region. He said in addition to all the traffic put onto the roads, a great deal of time was consumed by having to travel to LAX. Councilman Kelly moved to waive further reading and adopt Resolution No. 99-71, supporting the City of El Segundo and the Southern California Regional Airport Plan. Motion was seconded by Councilmember Benson and carried by unanimous vote. IX. ORDINANCES For Introduction: A. ORDINANCE NO. 921 - AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, AMENDING SECTION 10.36.010 OF THE MUNICIPAL CODE RELATIVE TO ESTABLISHING SPEED ZONES (Washington Street). Mr. Folkers stated Washington Street was a situation where the City was involved with Riverside County and the City of La Quinta. He said the County conducted an engineering traffic study, and based on the results, it was recommended that both cities increase the speed limit to 50 miles per hour in the section which was currently 45. He went on to say that after meeting with County representatives, staff felt comfortable with the way it was presented and recommended proceeding with establishment of the 50 miles per hour speed limit by passing Ordinance No. 921 to second reading. Mayor Spiegel noted that Washington Street was being widened to three lanes in each direction. Councilman Ferguson moved to waive further reading and pass Ordinance No. 921 to second reading. Motion was seconded by Mayor Pro-Tempore Crites and carried by unanimous vote. 6 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING DULY 8, 1999 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * For Adoption: A. ORDINANCE NO. 917 - AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, AMENDING SECTION 2.28.010 OF THE CODE OF THE CITY OF PALM DESERT TO ESTABLISH COMPENSATION FOR MEMBERS OF THE CITY COUNCIL EH1k CTIVE SEPTEMBER 1, 1999. Councilmember Benson moved to waive further reading and adopt Ordinance No. 917. Motion was seconded by Councilman Kelly and carried by unanimous vote. B. ORDINANCE NO. 918 - AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, ADOPTING BY REFERENCE WITH CERTAIN ADDITIONS, DELETIONS, AND AMENDMENTS, THE RULES, REGULATIONS, PROVISIONS AND CONDITIONS SET FORTH IN THOSE CERTAIN CODES ENTITLED, "CALIFORNIA BUILDING CODE, VOLUMES 1, 2 & 3; CALIFORNIA PLUMBING CODE; CALIFORNIA ELECTRICAL CODE; CALIFORNIA MECHANICAL CODE; CALIFORNIA FIRE CODE; CALIFORNIA ENERGY CODE" THE MOST RECENT ADOPTED EDITIONS AND ALL FUTURE EDITIONS AS ADOPTED AND AMENDED BY THE CALIFORNIA BUILDING STANDARDS COMMISSION. Councilman Kelly moved to waive further reading and adopt Ordinance No. 91. Motion was seconded by Mayor Pro-Tempore Crites and carried by unanimous vote. C. ORDINANCE NO. 919 - AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, AMENDING ORDINANCE NO. 107, THE PALM DESERT ZONING MAP BY ADDING THE SENIOR OVERLAY DESIGNATION TO 3.38 ACRES ON THE WEST SIDE OF CALIFORNIA AVENUE, SOUTH OF NEW YORK AVENUE, 77-080 CALIFORNIA AVENUE ae No. C/Z 99-1 (Raymond T. Troll, Applicant). Mr. Diaz commented the subject ordinance implemented the Council's decision from the meeting of June 24, approving the change of zone. Councilman Kelly moved to waive further reading and adopt Ordinance No. 919. Motion was seconded by Councilmember Benson and carried by unanimous vote. 7 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JULY 8, 1999 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * D. ORDINANCE NO. 920 - AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, APPROVING A DEVELOPMENT AGREEMENT BETWEEN THE CITY OF PALM DESERT AND RAYMOND T. TROLL AND JO ANN TROLL FOR A 76 UNIT SENIOR (AGE 62 AND OLDER) APARTMENT PROJECT ON 3.38 ACRES ON THE WEST OF CALIFORNIA AVENUE, SOUTH OF NEW YORK AVENUE, 77-080 CALIFORNIA AVENUE (Raymond T. Troll, Applicant). Mr. Diaz noted the subject ordinance effected the development agreement which implemented the change of zone in Ordinance No. 919, just adopted. Councilman Kelly moved to waive further reading and adopt Ordinance No. 920. Motion was seconded by Councilman Ferguson. In response to Councilmember Benson's question, Mr. Steve Smith, Planning Manager, affirmed the agreement specified that the Applicant would provide affordable housing rather than paying the mitigation fee. The motion carried by unanimous vote. X. NEW BUSINESS A. REQUEST FOR APPROVAL OF PROPOSAL FOR UPGRADE OF CIVIC CENTER PARK PLAYGROUND EQUIPMENT AND PORTOLA PARK PLAYGROUND EQUIPMENT TO MEET AMERICANS WITH DISABILITIES ACT REQUIREMENTS AND CONSUMER PRODUCT SAFETY COMMISSION STANDARDS. Mayor Spiegel noted the subject request had been reviewed and approved by the City's Parks and Recreation Commission. Mayor Pro-Tempore Crites moved to, by Minute Motion: 1) Approve the sole source proposal by Coast Recreation, Newport Beach, California, to upgrade the playground equipment at Civic Center Park and Portola Park; 2) appropriate $81,124.03 for purchase, installation and upgrade of related equipment and materials. Funds are available in Parks and Recreation Fund 430. Motion was seconded by Councilman Kelly and carried by unanimous vote. B. REQUEST FOR APPROVAL OF A COOPERATIVE AGREEMENT FOR PARTICIPATION IN THE COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM (CONTRACT NO. C 162601. Mr. Diaz stated this agreement would take the City through the established Block Grant process until it had an updated census, at which time staff would examine the possibility of the City administering its own Block Grant application process rather than utilizing the County's. At this time, he said continuing with the current program was recommended. 8 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JULY 8, 1999 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * Councilmember Benson moved to, by Minute Motion, approve a Cooperative Agreement (2000-2002) with the County of Riverside, Riverside, California, for Palm Desert's participation in the Community Development Block Grant Program. Motion was seconded by Councilman Kelly and carried by unanimous vote. C. CONSIDERATION OF AN AMENDMENT TO THE SIGN PROGRAM AT WARING PLAZA TO PERMIT THE ALLEY TO USE WHITE CHANNEL LETTERS AS OPPOSED TO REVERSE CHANNEL LETTERS CALLED FOR IN THE SIGN PROGRAM Case No. 99-64 SA, (The Alley, Applicant). Mr. Steve Smith, Planning Manager, stated the request was to allow use of white channel letters on burgundy tile versus the existing sign program, which would limit it to reverse channel letters. He said staff recommended denial of the request; all of the remaining uses in the center had reverse channel letters, as had been the City's position over the past several years to approve reverse channel. However, he noted that the City had varied the program for Outback Steakhouse, which utilized exposed neon. MR. RICHARD MAREK, owner of The Alley stores, said there were seven stores in Southern California, and they'd been in the Valley for approximately 25 years. He said they originally planned to utilize back lighting on the sign; but when they started working on the project, they recognized that they had a great deal of dark, wine -colored tile in the front of the building which they considered removing. However, he said the colored tile was not only in the front, but it wrapped around the side of the tower and into the entrance-- a substantial amount of tile. Therefore, they decided to look around and see how back lighting worked on dark tile, finding it absorbed the light and didn't reflect at all; it almost looked as though some of the lights were burned out in the sign. He said in reviewing some of the other businesses which used it, they felt it was worse than what they were proposing. Further, where their sign would be located, it didn't show from the side street, nor did it show from Highway 111 except briefly between Outback and the Savings and Loan. He said being almost 600 feet from the Highway, their goal wasn't to be visible from that distance, especially with the buildings that were in front of it. He said their goal was to have an attractive store with lighted facing on it that would show but not be gauche. He went on to say that the center's owner, Andy Weigel, had approved their signage. Mr. Marek said they had also considered the idea of installing white reflective material behind the sign, but after contemplating it, they decided it would probably look worse than what they were trying to solve. He asked for Council's favorable consideration of his request for white channel letters. In response to Mayor Pro-Tempore Crites, Mr. Smith said the subject amendment had not been considered by the Architectural Review Commission because it had just come in last week, and Council had already approved a sign program for the site. Therefore, he said if the program was to be varied, it had to be by Council action, and the Applicant wanted to be open by September. Mr. Smith said given Council's summer schedule, it was brought to Council immediately, and it could still be taken to Architectural Review's meeting next week. 9 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JULY 8, 1999 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * Upon question by Councilmember Benson, Mr. Marek responded JCPenney had signage similar to what he proposed. Additionally, he said Outback Steakhouse had signage which varied substantially from the center's program. Mayor Spiegel asked what Circuit City had for signage when it occupied the subject site. Mr. Marek answered that Circuit City's present building has a maroon front, the sign he looked at, and the back lighting there seemed ineffective-- it appeared as though half of the sign's lights were burned out and was the reason he'd gone to these lengths for an amendment to the sign program. Councilman Kelly commented he favored helping the business owner in whatever way the City could. Mayor Pro-Tempore Crites said he felt the City did not make a good decision with the Outback's signage, it didn't blend well into the center. He believed white was probably the most unobtrusive channel letter color as could be used. Mayor Pro-Tempore Crites moved to, by Minute Motion, approve the use of white channel letters for The Alley's signage at the subject center and refer to the Architectural Review Commission's next meeting the other aesthetic concerns of height, shape, and other such matters under its jurisdiction. Motion was seconded by Councilman Kelly and carried by unanimous vote. D. CONSIDERATIQN OF APPROVAL OF ASSESSMENT LEVY FOR PRESIDENT'S PLAZA BUSINESS IMPROVEMENT DISTRICT FOR FISCAL YEAR 1999/2000. Mr. Gibson reported the subject matter of business was part of the yearly routine. He noted that the District was approved last year, and this was the follow-up action for this year's levy. In response to Councilmember Benson, Mr. Gibson said a public hearing was not required, members of the District already voted for its approval. Further, he said as far as public input was concerned, staff had contacted the El Paseo Merchants for inclusion on one of their meeting agendas so that the business owners or anyone from those businesses could attend the meeting to get more information regarding the District's budget. Mayor Pro-Tempore Crites moved to: 1) Waive further reading and adopt Resolution No. 99-72, ordering the levy and collection of assessments, FY 1999/2000; 2) waive further reading and adopt Resolution No. 99-73, approving the management district plan for President's Plaza property and business improvement assessment district, FY 1999/2000. Motion was seconded by Councilman Kelly and carried by unanimous vote. 10 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING DULY 8, 1999 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * E. REQUEST FOR APPROVAL OF BUSINESS SUPPORT LOAN PROGRAM (JOINT CONSIDERATION WITH THE PALM DESERT REDEVELOPMENT AGENCY). The following is a verbatim transcript of this item. Key: RAS Robert A. Spiegel, Mayor/Chairman RAD Ramon A. Diaz, City Manager RAM Ruth Ann Moore, Business Support Manager JF Jim Ferguson, Councilman/Member DL Dan Lanager, Business Support Technician BAC Buford A. Crites, Mayor Pro-Tempore/Vice Chairman JMB Jean M. Benson, Councilmember/Member RSK Richard S. Kelly, Councilman/Member BP Bill Powers, President, First Community Bank PD Phil Drell, Director of Community Development SRG Sheila R. Gilligan, Director of Community Affairs/City Clerk/Agency Secretary RAS Request for approval of Business Support Loan Program. Joint consideration with the Palm Desert Redevelopment Agency. RAD Yes. Ruth Ann Moore will give this report. RAM Honorable Mayor, Members of the Council, when the Business Support Center was created, one of the goals the City Manager and the Council had was the exploration of a business loan program. Just as the City works with developers of large projects, so a loan program will work toward the success of individual businesses. Before you is a staff report that contains the review for a loan program, goals and general criteria, loan process and performance flow charts, loan descriptions, committee member recommendations, an example of the application we would use for the program, and loan recommendations from both the RDA and City Attorneys. Staff would ask that you act on the recommendations, as outlined in the report, and Dan Lanager, our Business Support Technician, and myself are available for questions. RAS Council have any questions of...Ruth Ann...I should mention that this went before the Finance Committee and was approved by the Finance Committee. JF Yeah. I have a number of questions. RAS Okay. JF Who in your department is qualified to examine loan portfolios? 11 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JULY S, 1999 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * RAM Dan is...qualified for that. He...came from the banking world with us. He was...manager of a...with VIB. JF Okay. And would that include assessing moral risk, business risk, noncontrollable factors, and business plans, both before, during, and after the loan? RAM Yeah. Dan, would you like to come up front, please, and speak on that? JF Thank you. RAS Page nine has the committee that will approve the loans. JF I read the staff report. DL In reference to your question, Councilman Ferguson, we do anticipate...forming the loan review committee with specific people in our community to...to look over the moral risk...the credit risk, and also the pro formas, and that's one of the reasons why we're requesting to form this review committee. JF Okay. So when we say moral risk, even if something fits within our existing zone, we'll be taking a second moral review of whether or not we want to loan them money? Or am I just reading this... DL No...that's going to be written in the criteria, and we find that to be most important that when we stipulate criteria, that we're going to follow what's already...considered for moral risk. JF And as I understand this, none of these expenses can be used for operating expenses or capital equipment? So are we really talking about tenant improvements and building improvements? RAM Our suggestion would be that that would...that's our recommendation to write within the criteria. JF Well there's a letter from our Agency Counsel that, in fact, says we're prohibited by law from doing anything but, essentially, building improvements. RAM That's the Redevelopment money? JF Yeah. RAM The City money you can actually use for other purposes. JF So you would envision subsidizing operating expenses? RAM That would not be our envisioning, just because you can. JF Okay. So back, are we back to... 12 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING DULY 8, 1999 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * RAM We wouldn't want to set that...it wouldn't be our staff recommendation to set that within the criteria, and the criteria would be coming back to Council for review prior to enacting it. JF So are we talking about tenant...? RAM No. In my...as the staff recommendation, mine would be no. JF All right. What are we funding, then, I guess is more the way to... BAC Let me just throw a quick comment in that might help, Jim. When this was discussed at the Finance Committee, there was, I think, broad conceptual support for it. But, as an example, should we choose to go ahead this evening, I would suggest that we, rather than appropriate monies, that we reserve monies until we look at the design loan criteria and purposes that really we don't have yet, and those are the kinds of issues that I think you're addressing. JF Ah...no, I'm more at a philosophical level on why on earth good government needs to get involved in the banking business, and if we are talking about financing building improvements, why the private sector can't take care of it. And if we're talking about funding it with a million dollars, I'm wondering if this is the road we ought to even be embarking on, and if I wasn't a part of discussions about that previously, I apologize, but I still have the same questions. JMB It's my understanding that this kind of parallels the HIP program, the home improvement one, that we loan money to the people to fix up their homes, their fences, their roofs, and all that, and that's what this was an answer to the business community to fix up buildings, et cetera, like along the north side of 111 that needed cosmetic work, and all that. JF Yeah. As I understand the housing program, the HIP program is a County program that we help administer and help applicants qualify for a County program. I think it's different than us undertaking...I guess the correct analogy would be us... JMB But we do have Redevelopment money in the HIP program. JF Pardon me? JMB We have Redevelopment money in the HIP. JF No, I understand that, and we have grants and a whole series of things, but...I guess I would draw the distinction between those two would be if our Business Support Center helped work with commercial lenders, Small Business Administration, loan guarantees for minority and women -owned businesses and assisted them using private market and other governmental entities for business support, as opposed to funding it ourself, staffing it ourself, and running a loan program, and basically becoming a bank to the tune of a million dollars. I just...open up those questions. I'm not passing judgment on it. 13 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JULY 8, 1999 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * JMB Yeah. I know. Yeah. RSK You have a philosophy disagreement with that. JF Perhaps. RSK Me, too. RAS Well...from my standpoint, there are commercial parts of Palm Desert that we'd like to see improved from an appearance standpoint, primarily. And where the owner of these businesses does not have the ability to go to one of our banks and get a loan because there's not enough there, but if that owner then puts together a proposal that is reviewed by two Palm Desert commercial lenders, a member of the Palm Desert Small Business Finance Corporation, a member of the Inland Empire Lenders Community Development Corps, a member of the California Small Business Development Corporation, and our City Finance Director, and then they feel that from a lot of reasons it makes sense to loan the money to this person even though his assets don't really warrant it, and there is some collateral there, and that would be up to them to make the decision, it could help improve the...way the City looks. And it would also give us more of a hammer when it comes to Code Enforcement. We have areas in our City that, in my opinion, are substandard, and it's difficult to go in and tell a commercial business that you've got to do something when they don't have the money to do it. And so I look at this as...an asset to the City and an asset to our small businesses. We happen to have a member of the banking community that is with us tonight, I don't know that he's there for that reason, but...maybe Mr. Powers would like to come forward and give us his thoughts on...the program. RSK I'd like to hear them. JMB Jim, I might, before Bill speaks, I was just going to say that on that Inland Empire Lenders Community Development Corps, they made a presentation the same, similar program, if I'm not mistaken, to Riverside County at one of Roy's breakfasts. A lot of our own local banks put money into that program, so they're helping that program along and not being a bank, but the bank's giving them money. BP I was just walking by. RAM He didn't plan it, I swear. BP One of the issues that you may want to consider, because we participate in these throughout the Valley and in the High Desert, and what they usually do is you'll set up a pool of funds, like the million dollars you're talking about, and use that as a guarantee. And then the bank can go ahead and make the loan, and then we keep you out of the banking business and just as a friendly guarantor, just in case the borrower would default or something, we'd have something to fall back on. RAS You got a partner. 14 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JULY 8, 1999 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * BP Yeah. And nine times out of ten, these folks that are trying to, or you would like to see them fix up their businesses, whoever made the comment, they probably don't qualify for a bank loan. RAS Dick. RSK Rather than just...because that's basically kind of like securing a loan. Rather than securing a loan, could we consider subsidizing part of the interest rate so it would be more affordable, and that way we wouldn't be sticking in there and securing the loan and wind up paying. RAD It's also in... RAM Councilman Kelly? RSK I can see where a citizen might criticize us doing that. Where there would be no criticism, I wouldn't think, in subsidizing part of the interest so that they could afford to get the loan. Council/ Agency Members That's part of the program. RSK Well that's the part that I would rather do, that. JF I don't disagree with the Mayor. I would love to help these businesses. There's a State program called the Storefront Abatement Program that helps communities help small businesses put new facades on their businesses and clean them up. As I read the report, it looked to me like it was mostly building improvements, which owners of property ought to be responsible for. If they need a little incentive to do the storefronts, there's existing programs for it, and if we want to buy down some of the interest, just on a straight assistance program, that's great. But when we have our staff going out, monitoring business plans, and telling them how to run their business to secure our loan and taking their equipment out of their store when our loan doesn't get repaid, that to me is just an uncomfortable involvement for a small community, like ours, with business. RAM And that may be an idea not to go with the revolving loan fund, because that's actually what the revolving loan fund would do versus setting up the guarantees that Mr. Powers was talking about... JF And if I were a bank, I'd love the City of Palm Desert to guarantee my loans. RSK Well...generally speaking, where you see these used, it's some, they have some reason for a block, or two blocks, or something where they're redoing the whole thing and trying to bring the city up to a better level. It's not usually a store here and a store there, and so I'm inclined to agree with Councilman Ferguson that... BP If I could, one other point, my experience in these kinds of loans, the default rate is very, very low. People take pride in what they're doing, they do everything they can to pay it back. And I haven't 15 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JULY 8,1999 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * seen one yet that defaulted with the first payment, ever. So by the time it moves on through the process, your exposure, you know, goes down every single month. JF Yeah, but Bill you're asking us to guarantee loans that your bank would reject, otherwise. BP Not necessarily. But it's easier if there's a guarantee. JF Well, of course. RSK (Unclear) BP Of course, some people just absolutely no...no way to do it. I mean, it's up to you. PD If I can add a little bit here. In terms of the philosophical question of why we would participate in loans where the banks don't, and that is, very simply, that banks loan money to receive income off repayment of loan. That is their sole reason for doing it. If they feel the risks outweigh their financial...direct financial return for repayment of the loan, they don't do the loan. We have a much broader goal-- we're, in essence, a partner with all our businesses. We receive one percent of the gross, in terms of sales tax. We receive the visual benefits of a successful business. So we have a much broader objective to see the improvements that successful businesses bring to the City, and that's why a marginal loan, which a banker would not participate in purely based on the financial return of the repayment, while when we take it into our broad objectives, that tips the balance. We're talking about nearly bankable loans; ones which almost make sense to the lender but don't because of their narrow objective. We have this much broader benefit from successful businesses, and therefore, that would tip the balance, and that would justify our participation. RAS Any other questions of staff? BAC One other thing, at least when I was in the meeting that I asked for is, I believe, or intended to, was to bring to us some examples. I remember, you know, I had palpitations about the potential nonpayment rates that are tucked into here, and so on, and so you were going to go look at examples of programs...that were successful that did not have default, or whatever, rates that approached some of the issues of 20% a year, and so on, and so forth. RAM We did...look at some of those programs, and what we found was that they did not have a criteria written out prior to it. In other words, they were not looking, they did not decide ahead of time how much they wanted to risk on a high risk loan. For example, if we had a certain set fund, we may only want to put aside 20% of that fund to loan to what would be defined as a high risk, typically a restaurant is considered a high risk, various products like that. We tried to talk to a bank about, the banks about getting a listing, and we did not receive that from them prior to this. BAC So we still don't have examples of those? RAM No. 16 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JULY 8, 1999 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * BAC Okay. RAS Comments? DL If I could just make one more comment, Councilman Crites. One thing we found with talking with other cities as far as the risk and involvement, they strongly suggest that we piggyback with the financial institutions and work with the financial institutions. For instance, we wouldn't be writing the business plan, telling them how to run their business. But doing adminis-...the banks would actually do the administration, as Mr. Powers had mentioned, when you work with the banks, and they're doing the administration, number one, that alleviates an extensive amount of cost to the City. And number two, we...we are not a bank, and we don't anticipate being set up as a bank but working with the resources that are available to us within the City to assist in different areas, and we would look at each business and each criteria very specifically once we have the standard criteria set to complement the objectives of the City of Palm Desert. BAC Let me rephrase my question, then. Who in this Valley operates a kindred program that you would consider a worthy model? DL To be honest, what we found... JF Please do. DL ...for a program, none. The City of Palm Desert, or excuse me, Palm Springs actually has specific programs, but what they use are in conjunction with the other banks in a HUD program which they haven't done any loans with as of this time. JF Can I follow up on that, then? You say in your staff report that you've contacted various California cities, and if we're going to embark on this road, I would at least like to have the opportunity to take a look at several other cities' programs, how they...what their definition is of moral fitness for a loan -- there's just a lot of questions I have in it. DL Right. And what I've found, we found that the City of Long Beach has a very good program, a very successful program. JF Can we consider, perhaps, continuing this for a little bit so we can get some more information? RAS Anything you want. JF That would...and I'll tell you where I'm coming from; if this is like, as Councilmember Benson said, like a HIP program where you aren't funding a business, but you're trying to assist marginal operators to do marginal improvements to make it look better, that's one thing. It's another thing to have a million dollar revolving loan program where, you know, basically, we're in a lending function, and I'll be the first to admit it's my learning curve that needs to get a little steeper. But 17 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JULY 8, 1999 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * based on what I got with this report, I didn't get very far along, and I'd like to get some more information. RSK Was that a motion? JF That was a motion to continue. RSK I'll second that. BAC Also it would be, I think, useful if you had, let's say, four, say you had four different arenas in which you wish to do this...this type...this type...this type...to give us an example or two of the kind of application that you think would be reviewed favorably. You know, what...what are we going to look at, say yes to, the kinds of amounts, and what do we believe, then, that we'll have four years later, two years later as a result of it. Does that...? RAS Councilman Kelly. RSK Well, you know, I'd be in favor of loans that would clean something up, existing business, but it doesn't make sense to me to help somebody start a business. If it's that marginal, maybe they'd better not start one. JMB Yeah. I would be in favor of the existing rehabilitation and to see something, but not to have...(unclear). JF Well and along those lines, I, it would be breathtaking to use Redevelopment money to actually do redevelopment with older neighborhoods that need it, and... RAS No, we don't want to do that. JF ...I'm not wild about taking a million dollars of General Fund money and supplying it to this program. RAS Well why don't we do this, I haven't commented yet. Why don't we do this, after hearing what everybody said, suggest that the Business Support Center do a little more homework on, you've mentioned Long Beach, let's find three or four other cities out there that have successful programs, and if it's necessary to take a trip, take a trip; come back and show us some applications that were successful; show us some of the things that they've been able to accomplish with the program, and then come back to us with your recommendations. RSK You have a motion and a second already. RAS Yes we do. Yes we do. Please vote. I just wanted to... SRG Motion carries by unanimous vote. Are you continuing this until the information's ready, no specific date? Thank you. 18 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JULY 8, 1999 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * For purposes of clarification, Councilman/Member Ferguson moved to continue consideration of the Business Support Loan Program to a date uncertain. Motion was seconded by Councilman/Member Kelly and carried by unanimous vote. F. CONSIDERATION OF THE ELECTRONIC MAIL/INTERNET POLICY. In response to Councilman Ferguson, Mr. Janes said prohibition of the use of new business software had been deleted from the policy. Further, he responded that with regard to e-mail, confidential information would be as determined by a supervisor. Additionally, he said it would be the Information Systems Management Department that would be monitoring usage, and if it felt there was any controversial usage or any area meriting the City Attorney's review, it would only be sought at that time. Mayor Pro-Tempore Crites moved to, by Minute Motion, approve the City's new Electronic Mail/Internet Policy. Motion was seconded by Councilman Ferguson and carried by unanimous vote. G. CONSIDERATION OF A PROPOSAL TO JOIN WITH THE CITY OF PALM DESERT'S SISTER CITY OF GISBORNE, NEW ZEALAND, TO PARTICIPATE IN ITS CELEBRATION OF "MILLENNIUM LIGHTS." Mrs. Gilligan reported that the subject item of business started out as a challenge to the City's advertising agency to develop a way of celebrating the new millennium with Palm Desert's Sister City of Gisborne. She went on to say Gisborne would be the first city to see the new millennium, and Palm Desert was its only U.S. Sister City; therefore, it seemed like a good tie. She said as initially proposed, the celebration's cost was $15,000; however, in order to move forward, as there were travel arrangements to consider and airline tickets were rapidly being sold out, a special meeting of the Promotion Committee was called for its consideration prior to City Council's. When the proposal reached Promotion Committee, she said it had been more thoroughly defined and was estimated at the high end cost of $48,400. After reviewing the proposal, she stated the Promotion Committee voted 6-2 to approve, expressing considerable enthusiasm for it; she noted minutes of that meeting were included in the information distributed to Council. Mrs. Gilligan said following the special Promotion Committee meeting, she met with the advertising agency regarding her concern over the proposal's cost, challenging them to return with a significant reduction. Earlier today, she met with Gary Goodsell, Erika Byrd, and Mr. Diaz to review the event's cost, and it was reduced to $20,000. She reported the reduction resulted from eliminating the need for a tent, because the intent now was not to have an event in the park, but to hold it at a local business venue, such as Keedy's, removing $5,400. Further, she said the rental of two large screen televisions at $3,500 would be replaced by donations from, for example, Circuit City; refreshments at $8,000 were eliminated, and $7,000 for the trip for two to Gisborne, a prize giveaway at the celebration, was deleted, as it was felt that could be donated, too; a reduction of $28,400 with continued enthusiasm from KESQ, which would be a cosponsor of the event. She clarified that KESQ's 19 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JULY 8, 1999 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * role as cosponsor included their sending a two -member crew to Gisborne with the City picking up the trip's cost while KESQ paid salaries of the news crew, produced promotional ads to be aired three or four weeks in advance, worked with regional and national stations for coverage, and worked with "Good Morning America" to secure coverage of the event in Gisborne and in Palm Desert. After speaking with Mr. Evans of KESQ, she said he felt confident that the coverage could be secured. She commented that because of the Promotion Committee's enthusiasm, staff continued to recommend approval of the event in an amount not to exceed $20,000. She offered that Promotion Committee Chairman Bill Powers was in attendance to provide information, as well as representatives of KESQ, Mr. Murphy and Mr. Leinhard, who were present to answer questions of their organization. MR. BILL POWERS, Chairman of the City's Promotion Committee, also noted the amount of enthusiasm generated at the Committee's special meeting, and he wished to emphasize that it was the magnitude of the millennium's significance that the Committee considered. Additionally, he said after speaking to Mr. Evans, he felt Palm Desert would probably receive international recognition; the revised cost of $20,000 was minuscule compared against the value of the exposure to be received. He felt other funded programs had been approved with substantially less coverage-- Golf Cart Parade, tennis tournament, 10K Run, even The Skins Game; the millennium would only occur once in this lifetime. After talking with several Committee members, he said there was still broad support; the two who voted against it did so because of the cost, and he felt they would now support it with the lower figure. He noted Promotion Committee members took their responsibility very seriously, many programs and events were considered each year, and great care was used when recommending ways to spend taxpayers' money; it was held very tightly. Councilman Ferguson said one of the big difficulties he had in comparing the event to The Skins Game and the Senior Cup, other large dollar promotional activities done both when he was a member of the Promotion Committee and currently, was that there was some form of up -front guarantee of exposure and some idea of the estimated impression to be made through that exposure, whether it was a print ad, a television ad, or a commercial. Whereas, he said this event seemed to be a roll of the dice, hoping to get picked up by somebody other than KESQ. MR. POWERS said that was not accurate, as ABC, noting his other affiliations with the broadcaster, would jump on such an opportunity. He said while there were no guarantees in life, he felt assured that this was something worthy of international coverage. He said ABC planned to provide 27 hours of millennium coverage, and when comparing the 30-second Skins Game ad to the clock striking midnight on the year 2000 at the first location on the globe, he believed everyone would be looking at that spot, and it would be played over and over-- it was Palm Desert's Sister City. Councilman Ferguson said he did some Internet research about the international date line and Gisborne's relationship to other cities and towns, noting he stumbled across dozens and dozens of events taking place in New Zealand at or about 11:59 p.m. on December 31. He 20 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JULY 8, 1999 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * said there were cruise ships with celebrations, planes dropping parachutists, and he had no doubt that the international focus would be on that part of the world, which he felt was only a small part of the overall millennial celebration occurring worldwide during that 26 hours. Therefore, he believed the small city of Gisborne's odds of being picked up within the focused region, not to mention the additional odds of highlighting her Sister City Palm Desert within that coverage, were small, obtuse without any guarantees from ABC, even if only for $20,000. MR POWERS said the other side of it would be what it would provide Palm Desert citizens; he felt it was an opportunity to let them experience 2000's first second. Additionally, celebrating at a place such as Keedy's, Palm Desert's first business, he felt tied it all together. While he acknowledged there was no guarantee, he couldn't imagine such an event not getting some sort of national recognition, especially in the U.S. MR. LYNN YARBROUGH, 37-270 Windham Road, Del Webb's Sun City Palm Desert, said he'd been a computer professional for over 45 years, and his profession had been involved with year 2000 issues. He felt there were two celebrations, one in the year 2000, and one in the year 2001, the first year of the Christian millennium; he was confused by the rationale for supporting the subject event. He was also concerned about some of the prospective tragic consequences involved with the year 2000, computer failures, etc., which led him to believe that there were alternative ways to invest the $20,000 more productively. MR POWERS said he understood Mr. Yarbrough's statement. He noted, as an aside, one of the points coming out of the Promotion Committee's meeting was that if problems occurred at the first blip of the millennium, there would be another 18 or so hours to maybe implement some stopgap measures. MR. BOB LEINHARD, local sales manager for KESQ-TV, said he appreciated the concept of bringing everyone together to share the first of the millennium, wondering how many Desert residents were aware of Gisborne and its experiences. He felt that was another benefit the proposed week long coverage would provide, noting Palm Desert had already committed to being part of the Sister City Program and to its Sister City Gisborne. He compared his own hometown of Bakersfield and not knowing who its Sister City was; therefore, he felt it would be a great opportunity to bring Gisborne's people and their day-to-day life to Palm Desert residents, exhibiting that the investment made in building the camaraderie between the two was a valuable one. He expected that the City of Gisborne would also appreciate being showcased to Palm Desert, especially since many Palm Desert residents' favorite leisure activity was traveling, and he hoped it was the same for many Gisborne residents who would want to visit Palm Desert in the prime season. He went on to say that KESQ envisioned the venture as not a news item but something that would be cared about by the community; it was not a money -making situation for the television station; its money was made by selling commercial advertising, not by selling news coverage. He said the news director was solicited for whether the station was interested in this item and was also asked if while it was there, could the station also cover it. He commented the station said, "Sure," feeling it would be 21 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING DULY 8, 1999 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * something exciting and a lot of fun. He said if the hard costs were closely examined, no KESQ profit would be found, which he felt was an important consideration. He noted the station was a business that was going ahead because it felt the project would be in the best interest of both itself and its viewers, Palm Desert and Coachella Valley residents. Councilman Kelly asked how Palm Desert would be recognized as being the financial contributor to the project. Mr. Leinhard said he didn't think it would be stated as boldly as, "Palm Desert paid for this." However, he felt the benefit laid in the obligation to tell viewers how KESQ staff got to Gisborne, and it was in promotional coordination with Palm Desert -- on -air promotion that would say KESQ had sent staff to Gisborne in conjunction with Palm Desert. While he understood about the cruise ships, parachutists, etc., mentioned previously, he said it wasn't just the first hour of the millennium that would be covered. He reiterated the fact that ABC would be providing 27 hours of coverage for the millennium celebration -- there would be correspondents on board the cruise ship when it hit the international date line at midnight. However, Gisborne was the first location where other people could be present -- more than just the few parachutists or people with the wherewith all to afford being aboard the cruise ship-- many would be able to participate in the Gisborne celebration. He said KESQ expected to be able to promote the fact that the only reason it would be going to Gisborne was because it was Palm Desert's Sister City. Councilman Kelly commented that according to the Desert Sun editorial, maybe it would be better if KESQ didn't. MR. LEINHARD stated that perhaps if all the details were made plain, he didn't think there was a lot of question; if KESQ was being compensated for its news coverage on the item or if it was being paid to send people over there, then he understood Councilman Kelly's concern. When he first read it, he didn't have all the details either and felt there were some legitimate questions. In looking over the information he'd seen since, including the cost factor, there was no profit in it for KESQ. Additionally, he felt it was evident that for over 30 years the station had been involved with innumerable events in the area that weren't necessarily in its best financial interest but were in the interest of community betterment, as was the case in point. He felt very positive about the Gisborne proposal. Councilman Ferguson said irrespective of the decision to be made, he expressed appreciation to KESQ for its willingness to work with and support the City. He felt, at best, the Desert Sun was somewhat hypocritical in its editorial; there were many things done with many news organizations, and the City was no more trying to buy KESQ's news than it was anyone else's. Furthermore, he felt since we lived in a small valley, cooperative participation was standard procedure; the Desert Sun certainly endorsed and cosponsored innumerable events, and the City worked with various radio and television stations. He went on to say that as far as KESQ's involvement in the Gisborne event, he had no compunction about working with that organization and was glad the feeling was mutual. 22 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING DULY 8,1999 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * Councilmember Benson echoed those sentiments, noting at the many, many events she attended throughout the Valley in the years she'd been in local government, the biggest concern here was, "Gee, TV doesn't cover us, but anything Palm Desert's involved in, they're all out there!" Therefore, she felt all the television stations had given Palm Desert more free publicity than many others, making it the envy of many other Valley cities; all Palm Desert had to do was ask, and someone would be there. She too felt the Desert Sun had been harsh. Mayor Pro-Tempore Crites said he was unclear whether the answer was provided to Councilman Kelly's earlier question whether Palm Desert would be recognized for its involvement in the event. Councilman Kelly concurred that he was also unclear after receiving Mr. Leinhard's response. MR. LEINHARD clarified that it would not be KESQ's intent to say Palm Desert paid x-number of dollars for a satellite link -up with Gisborne. He said it would be KESQ's intent to promote the fact that it was through the efforts of the City of Palm Desert and because the two were Sister Cities that the station was there; the only reason it made sense. Councilmember Benson said in response to the question about what it would bring back to Palm Desert, she looked back at other monies expended, most recently $35,000 for two years and $55,000 last year on the 5K Run, which didn't generate much publicity and was subsequently abolished. Further, while she was not personally in favor of the $48,000 figure, she could go for the $20,000 amount; however, she felt the $3,500 agency fee should be taken out of that amount and be applied to the agency's 1999/2000 contract or taken away from some other program that the Promotion Committee might want to do in the future. Councilman Kelly concurred. Councilmember Benson went on to say that she felt the package budget should include an amount for the Mayor's representative to attend this event. Councilman Ferguson remarked that he felt the idea had much appeal, but when the wheat was separated from the chaff, he believed there was very little left for Palm Desert. He said while the opportunity was great, it was, essentially, a gamble. When he looked at the function of the Promotion Committee as he remembered it, most of the national advertising was to be done through the CVB (Palm Springs Desert Resorts Convention and Visitors Bureau), and regional attraction to Palm Desert was the focus of the Committee in the Southern California market. He felt the subject project was an international attempt to try and grab what he considered, if the City was lucky at all, a very small amount of time on television. He was unsure of the benefit to Palm Desert, commenting that during the last budget cycle, the City came very close to not funding the Sister City program at all. Councilman Kelly and Mayor Spiegel noted it hadn't been officially funded yet, the program had been referred to the Civic Arts Committee for its input on the merits thereof. 23 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JULY S, 1999 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * Councilman Ferguson went on to say that if Palm Desert was committed to the Sister City Program, it needed to be built up so that it was able to sustain community support for events such as the subject one, which led him to question whether the value of it was there. He recalled being on the Promotion Committee when the 5K Run was proposed and voting against it because he didn't see the value for Palm Desert, noting he felt it also was a good idea, but it never got off the ground. Further, he thought the City got out of The Skins Game for many of the same reasons, and if anything had been shown over time, it was that those types of events really didn't ultimately pay off for the City of Palm Desert. He felt that it would be better to go with Councilmember Benson's last comment, contacting Gisborne's mayor to let them know Palm Desert would like to participate with them in their new year's celebration of the millennium, send a representative from the City, and really fortify and strengthen the relationship with Gisborne. He said then if the Desert Sun or KESQ wished to report on that fact, great. If this event did have a direct benefit for the City of Palm Desert in a much greater magnitude, he would welcome KESQ's involvement because a camera crew wouldn't have to be hired, a satellite uplink wouldn't have to be obtained, nor would television time to promote it, pointing out that wasn't the reason he opposed it; he just didn't see the amount of benefit to be realized by putting $20,000 towards it. He preferred spending more time working with the Sister City relationship directly. In response to Councilman Kelly, Councilmember Benson said her last comment was to send the Mayor as a representative of the City of Palm Desert. Council concurred it felt that should be considered separately at a later time. Councilman Kelly said he was certainly not prepared to vote in favor of $48,000, and he still had some reservation over $20,000, acknowledging that he hadn't completely made up his mind but appreciated the fact that the Desert Sun had managed to save the City $28,000 so far. He said everyone appreciated KESQ as a great station, but he wondered if they still announced that their broadcast originated from Palm Springs; he would appreciate them more if they said they were located in Palm Desert. He commented that he shared many of Councilman Ferguson's concerns. Mayor Pro-Tempore Crites said along with the obvious issues of the millennium, etc., he didn't disagree with Councilman Ferguson's ideas that the City needed to be much more active in fostering the existing Gisborne relationship. Therefore, he felt there was no better way to put that process into high gear than to have seven days of local residents being exposed to Palm Desert's Sister City, as they would be through this project. He said reading about it was one thing, seeing something live was an exciting possibility; no matter how much something was fostered, this opportunity would not come again for the next 10 generations. He went on to say that whether something was done at President's Plaza, the Town Center, or The Gardens, by inviting the City's own residents to start their last day of this thousand years by participating in this event, the Council would have done something excellent. In comparison, he said while Cathedral City had a very different relationship with its Sister City in Mexico, he believed this was something, literally, no one else in the United States could do. He cautioned that if the City was to wait for a guarantee that the national network would 24 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JULY 8,1999 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * provide a certain amount of coverage, nothing would be done because it couldn't be guaranteed until an ad was purchased, etc. However, he felt it was likely that the City would receive attention based on what it had already received. Lastly, he believed even if none of that was received, and simply the exposure to Palm Desert's Sister City and kindred culture were brought back, the City would have accomplished what President Eisenhower had intended when he asked for the Sister Cities Program to attempt to foster relationships and harmonies between diverse people. He thought that was worthy whether Palm Desert got the "grand prize" or not, commending everyone who had been involved and had taken a project that he was aware made everyone nervous at $50,000, bringing it down to $20,000, and with the $14,000 in the Sister City budget, he didn't think money was the issue but whether or not it was a good idea. He considered it a worthy idea and one he was pleased to support. Mayor Spiegel commented that the reason The Skins Game was eliminated from promotion was because it moved out of Bighorn-- properties were being sold there at the time that, in turn, provided the City with significant Redevelopment money, which was ample justification. He also thanked KESQ for all the support it had given the City with its movie and concert series. He went on to say he was recently reading Islands magazine, noting there were two islands, Tonga and Pit, that were fighting over which would be the first to see the new millennium, and here tonight he learned it would be a cruise ship. Therefore, he felt New Zealand must think highly of Gisborne or it wouldn't be sending the New Zealand Symphony .� Orchestra there for its opening event, in addition to David Bowie, Split Enz, and Kiri Te Kanawa, who was felt to be New Zealand's greatest contribution to classical music. Councilmember Benson added Ms. Kanawa had performed at the McCallum Theatre. Mayor Spiegel went on to say that Bill Evans was providing an editorial commentary on today's news program, of which he provided an advance copy to the City. Mayor Spiegel felt one of the statements was very appropriate, and he quoted, "Personally, I think Palm Desert should ask the Valley Visitors Bureau to pay some of the cost for promoting the Valley," as he felt that was what, in essence, would be done-- Palm Desert, right outside of Palm Springs, because most New Zealanders wouldn't know where Palm Desert was. He went on to say his only real problem with the project was the early hour (5:00 a.m.) it would be held in Palm Desert that day and wondered whether enough people would want to participate at that time. Councilman Kelly remarked that there was a Desert Sun editorial approximately two years ago which admonished all Valley cities to work together for the promotion and betterment of the entire Coachella Valley. He believed if this project was approved, it would promote the Valley; another case of the City of Palm Desert stepping forward to do what that editorial prescribed. Councilmember Benson noted that the CVB did not fund any one city's special event-- if the Coachella Valley was the Sister City, that would be a different story. She said that was the reason La Quinta's golf wasn't supported over anyone else's. 25 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JULY 8, 1999 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * In response to Councilmember Benson's request to eliminate the $3,500 agency fee from the event's budget, Mrs. Gilligan affirmed that could be accomplished; it could be paid for out of the contingency to the Promotion Committee's budget, making the event's total amount $16,500. Upon question by Councilman Kelly, Mrs. Gilligan explained that the City had a contract with Publicity Unlimited which stated special events outside the realm of responsibility defined in the contract could be charged in addition to the contract at an hourly rate, which was the reason the $3,500 amount was included the proposed event budget. However, she said if Council so directed, the Promotion Committee budget could be rearranged to apply this amount to its already -approved budget. Councilman Ferguson was concerned whether the $3,500 amount might be approved anyway to come from another budget, or if it would, indeed, be part of Publicity Unlimited's monthly retainer, causing no net increase in the project's cost. Mrs. Gilligan replied that the amount wouldn't be part of the monthly retainer, there were already projects in the budget that Publicity Unlimited was to be paid for; the Promotion Committee looked at those projects monthly, and they were billed to the City if they fell outside the realm of the retainer. She went on to explain that one of the projects already budgeted for 99/00 would be changed to accommodate the $3,500, or there was still the 10% contingency to which it could be applied. Mayor Pro-Tempore Crites moved to, by Minute Motion, concur with the revised recommendation from the Promotion Committee and approve participation in Palm Desert's Sister City, Gisborne, New Zealand's Millennium Lights Celebration in an amount not to exceed $16,500, directing that the $3,500 advertising agency charge be applied to the previously approved FY 99/00 advertising agency contract amount with Publicity Unlimited, and appropriate $16,500 from Unobligated Reserves to the Sister City Account No. 110-4416-414-3126. Motion was seconded by Councilmember Benson and carried by unanimous vote. XL CONTINUED BUSINESS A. REQUEST FOR APPROVAL OF A DEDICATED LIEUTENANT POSITION FOR THE PALM DESERT POLICE DEPARTMENT (Continued from the meeting of June 24, 1999). Mr. Diaz noted staff recommended continuance of this item, as was stated in the staff report. Mayor Pro-Tempore Crites moved to, by Minute Motion, table the item and direct staff to bring it back to the City Council at an appropriate time. Motion was seconded by Mayor Spiegel and carried by unanimous vote. 26 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JULY 8, 1999 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * B. REQUEST FOR APPROVAL OF THE DEVELOPMENT OF A POLICE ACTION COUNSELING TEAM (PACT) (Continued from the meeting of June 24, 1999). Mayor Pro-Tempore Crites moved to continue to such time as staff is prepared to place it on a future City Council Meeting agenda. Motion was seconded by Councilman Ferguson and carried by unanimous vote. C. CONSIDERATION OF APPROVAL OF THE DISPOSITION AND DEVELOPMENT AGREEMENT BETWEEN PALM DESERT REDEVELOPMENT AGENCY AND CALIFORNIA STATE UNIVERSITY (JOINT CONSIDERATION WITH THE PALM DESERT REDEVELOPMENT AGENCY) (Continued from the meeting of June 24, 1999). Mayor Pro-Tempore/Vice Chairman Crites moved to continue the item to a time uncertain. Motion was seconded by Councilmember/Member Benson and carried by a 4-1 vote with Councilman/Member Ferguson voting NO. D. REOUEST FOR AWARD OF BID FOR LANDSCAPE MAINTENANCE SERVICES FOR DESERT WILLOW GOLF RESORT PERIMETER CONTRACT (Contract No. C16000) (Continued from meeting of June 24, 1999). Mayor Pro-Tempore Crites reported that the Landscape Committee considered the subject matter of business, as was directed at the June 24 City Council Meeting. He said the concern was over taking a chance with the low bidder for the project and the consequences that might be suffered if it didn't work out. Therefore, he said one of the conditions added was that there would be a permanent guarantee for the life of the contract that the owner of the company would be the on -site supervisor. Secondly, he said before the contract was initiated, the company owner and supervisors would be shown and would become familiar with not only the City of Palm Desert Landscaping and Pruning Guide, but also the specialized materials that Eric Johnson had put together for Desert Willow, and City staff and Eric Johnson would conduct training sessions for Mr. Garza and his senior staff. Third, he reported was that Mr. Garza would need to provide the City with assurance that as people left his firm, as was often the case in this field, all new personnel would have to be pre -trained before they began touching any plant material at Desert Willow. Lastly, he said from Mr. Folkers on down there would be personal supervision of this contract. Mr. Folkers added that not only would Mr. Garza and his supervisory staff be trained, but all of the employees would be given training. Councilman Kelly moved to, by Minute Motion, award the bid for Contract No. C 16000 to Garza Landscaping, Inc., Indio, California, in the amount of $75,240 ($6,270 per month) with the following conditions: 1) Permanent guarantee for the life of the contract that Mr. Garza would personally be the on -site supervisor for the work being performed; 2) prior to contract initiation, Mr. Garza, his supervisors, and entire staff would be trained in all aspects of City of Palm Desert landscaping and pruning guidelines, including 27 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JULY 8, 1999 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * specialized training as it relates to the plant palette for the Desert Willow Resort; 3) assurance that all new Garza employees would be pre -trained in the aforementioned before being allowed to perform any landscape maintenance at the site; 4) City staffwould also provide personal supervision of the landscape maintenance services provided by Mr. Garza and his company. Motion was seconded by Councilman Ferguson and carried by unanimous vote. X1Q. OLD BUSINESS A. REQUEST FOR APPROVAL OF AGREEMENT FOR IMPROVEMENTS AT COUNTRY CLUB DRIVE AND MONTEREY AVENUE (Project No. 640-98). Mr. Folkers reported that the City had been negotiating with the City of Rancho Mirage regarding the subject intersection project. He said at its Council meeting last Thursday evening, the City of Rancho Mirage approved the contract for the undergrounding portion of the project; however, there was still no contract with the developer for reimbursement of their portion. He believed the two City Attorneys were working out related details; therefore, staff recommended continuing the matter to Council's next meeting. Mayor Spiegel expressed his displeasure that the intersection would be torn up at the heat of the season. Mr. Folkers responded it was unfortunate and resulted from unanticipated delays that were experienced. In response to Mayor Pro-Tempore Crites, Mr. Folkers said the Council could opt to delay the project one year. He added that staff was investigating the possibility of an incentive program for the contractor so that the work would be complete by Thanksgiving. Mr. Folkers further responded to Councilman Kelly by stating that the City of Rancho Mirage would not proceed with the undergrounding, which had to be done before Palm Desert could do its work, until the contract was resolved with the developer, Mr. Mayer. He understood they were close to resolution. Council questioned that fact. Mr. Diaz stated that if it was determined that the City of Rancho Mirage could not complete negotiations in a timely fashion, the decision could be made to hold until next year. He believed at this time the schedule could be maintained, but if not, staff would return to Council with a recommendation. Councilman Ferguson moved to continue approval of the agreement with the City of Rancho Mirage for the intersection of Country Club Drive and Monterey Avenue (Contract No. C16270) to the adjourned joint meeting of July 22, 1999. Motion was seconded by Councilman Kelly and carried by unanimous vote. 28 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JULY 8, 1999 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * B. CONSIDERATION OF AN APPEAL TO THE DECISION OF THE ARCHITECTURAL REVIEW COMMISSION GRANTING PRELIMINARY APPROVAL OF THE EXTERIOR REMODEL AND EXPANSION OF TONY ROMA' S RESTAURANT AT 73 - 155 HIGHWAY 111 Case No. C99-6, (Romacorp Inc., Applicant). Mr. Steve Smith, Planning Manager, called Council's attention to the color swatches presented in the Chamber. He noted Architectural Review Commission (ARC) granted preliminary approval subject to a series of conditions, and the Applicant had implemented those conditions, as were shown in the drawings presented. Additionally, he stated artwork was added on the south side of the building that wasn't included when the project was first considered by ARC. He went on to say that the Applicant had provided material samples, distributed just prior to this meeting, which were colors taken from the Roberge Building at Portola and El Paseo. He indicated that at this time, the Applicant had amended his request and would replace the mustard yellow color with one of more of a beige hue. However, he said the Applicant would still prefer to utilize the burgundy/oxblood color. He stated Mr. Hurtner, the architect with Tony Roma's, was in attendance to provide additional information. Mr. Smith further reported that the building where the subject remodel/expansion was to occur was the last building of the Hughes Center, approved in 1979-80, that had not yet been remodeled, noting that Carl's Jr. had been, as well as all the buildings along El Paseo where Fred Fern totally gutted then remodeled them. In response to Councilman Ferguson's question, Mayor Pro-Tempore Crites said his issue with the project's sign height had to do with the fact that the current trend seemed to include more and more construction of towers that were built as a facade in order to place signage higher on the structure. He felt it might not be a trend that would serve to elevate the community's image for tourists in the long run. MR. HANS HURTNER, staff architect for Romacorp (Tony Roma's restaurants), Dallas, TX, said he'd been providing his architectural expertise for restaurants and for the industry for approximately 10 years. He went on to say Tony Roma's currently had some 200 restaurants worldwide, and they were proposing the subject expansion/remodel on Highway 111 to occupy some two thirds of the building, making it the major tenant there. He said they'd been working with the building's owner, the Berger Foundation, to remodel the entire building to keep a cohesive architectural scheme. He stated it was their goal to breathe new life into a dated building exterior, updating and enhancing its architecture, as well as its landscaping. Further, he said Romacorp looked forward to making a long term commitment to the area, having already been in the subject location some 15 years, adding it was a major investment for his organization, in excess of $1 million for initial capital expenditure. He announced that Tony Roma's was bringing its new concept image into the subject renovation, called "Tony Roma's - America's Rib Grill," making it more fun, exciting, with a more casual atmosphere, while maintaining a high quality and entertaining environment-- Palm Desert's store would be the first America's Rib Grill on the West Coast. He explained that the same menu would be served, with some minor changes; ribs would remain their signature item. Finally, he said it was his organization's desire to resolve any 29 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING DULY 8, 1999 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * remaining issues, as they planned to go into construction in September and be open for prime season starting in January; architects had already been engaged to begin work on the interior plan. In response to Councilman Kelly, Mr. Hurtner responded the reason he wished to utilize the wine color was because their prototype building was almost a fire engine red; however, when initially surveying the existing building and architectural climate here, he learned that was not a compatible color. Therefore, he proposed something he felt was a compromise. He preferred the wine color, but acknowledged he was willing to change to the colors of the Denise Roberge building. Upon question by Councilman Ferguson, Mr. Drell responded the Applicant had already agreed to change to the more tan color rather than the mustard yellow. Further responding to Councilman Kelly, Mr. Hurtner affirmed the three proposed colors were acceptable to him. Mayor Pro-Tempore Crites moved to, by Minute Motion, approve the three -color scheme as proposed by the Applicant (similar to the Denise Roberge building colors). Motion was seconded by Councilman Ferguson and carried by unanimous vote. C. REOUEST FOR APPROVAL OF CHANGE ORDER NO. 2 TO CONTRACT FOR CONSTRUCTION SERVICES AT DESERT WILLOW CLUBHOUSE. The following is a verbatim transcript of this item. Ke.X: RAS Robert A. Spiegel, Mayor RAD Ramon A. Diaz, City Manager DY David Yrigoyen, Redevelopment Agency Manager JMB Jean M. Benson, Councilmember RSK Richard S. Kelly, Councilman BAC Buford A. Crites, Mayor Pro-Tempore JF Jim Ferguson, Councilman SRG Sheila R. Gilligan, Director of Community Affairs/City Clerk GL Gregg Lindquist, General Manager, Desert Willow Golf Resort CLO Carlos L. Ortega, RDA Executive Director RAS All right. Request for approval of change order number two to the contract for construction services at Desert Willow Clubhouse. May we have a staff report? RAD I see Mr. Yrigoyen approaching the podium. 30 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JULY 8,1999 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * DY Mr. Mayor, Members of the Council, I will try to be brief. You have before you a change order request for construction related services, not only at the Desert Willow Clubhouse, but those that are impacting the overall Desert Willow Resort. Essentially, those costs that are specifically related to the Clubhouse come to $329,333. (I've got to put my glasses on.) Those costs that are specifically related to the overall resort come to $390,516, for a total of $719,849. We have outlined a specific analysis to identify where those costs could be...achieved from, and it identifies an analysis which has costs...that come from the overall budget for the Desert Willow Resort. After these change order numbers, we would have a Clubhouse balance in the overall Desert Willow budget of $615,516 remaining in the overall budget. Essentially, to outline what these change orders are for, what's been before you...is the enhanced pro shop fixtures, to a tune of $97,762, specifically that the report outlines that it comes from an increased square footage area. Fixtures that are necessary and some enhancements that are brought about by the enhanced interior improvements that were identified previously with the FF&E approval on the previous budget. There is an added data systems...change order, to the tune of $19,464...to provide for...services to the Clubhouse...television connections, telephone communications throughout the Clubhouse. There is also an interior finish enhancements of $112,107. The interior finish enhancements also correlate to the enhanced FF&E philosophy that was previously approved; also is an additional number of cabinets that were necessary to place throughout the Clubhouse. The item that I would like to direct your attention to is the additional $100,000 that we're looking at with regards to the enhanced flooring...which will encompass the carpet, the stone veneer flooring that would be utilized in the Clubhouse to provide for that same philosophy that we looked at before. That encompasses the improvements that are directly related to the Clubhouse. The off site improvements would be for the connection or the taking of the main line from Country Club Drive, or the connection that takes it from Country Club Drive across the Conference Center pad site...to the area of the circular road. That off site improvement would be utilized to provide sewer services, not only for the Clubhouse, but for the Conference Center site and the luxury hotel site. The additional feature would be for the arroyo feature; the arroyo feature is that feature that splits the parking lot...we at one time talked about providing for...water services to that feature. In looking at the overall cost, this was a cost that the Desert Willow Committee looked at and recommended the expenditure of $160,000, based on those numbers that we had...in the estimated cost. We believe we can still do that within that amount. Given that, once again I would like to say that these are numbers that we can encompass within the overall budget for the Desert Willow...Golf Resort...with a remaining balance of $615,516. Staff would recommend the change order. If there's any questions? JMB So how much are we up to spending now on the thing? DY With regards to the actual Clubhouse expenditures, with change orders for the Clubhouse itself, not including those off -sites, we're talking about $6,346,000. RAS Councilman Kelly has something he wants to say. RSK First, I propose to take what is referred to here as off -site, to begin, the sewer site, as an example, the sewer. That is part of the development and hotel pads and everything we have, and there's no way we can not do the sewer system. So, hopefully, we can eliminate that one from our look at what 31 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JULY 8, 1999 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * we should or shouldn't do. And the arroyo is a decision we made to go with arroyo between the parking lot. Does everybody remember that we did make a decision to do that? BAC There's always been one there. RSK No. BAC Yes. RSK No. It hasn't. We're going to move it from...there was a decision, as I understood, my remembrance is there was a decision to put an arroyo in that would line up with the entrance to the Clubhouse, and that particular arroyo...the cost was much higher than what is here. And the Desert Willow Committee went over and over and over and over that to try to find a way to take the cost down as low as we possibly could. Part of that meant starting the stream down a little further so that we, so that the water that we took from the other stream bed could just be piped over there, and we wouldn't have to do any pumping features or build-up, et cetera, and that half of that is going to be a dry...arroyo. So this cost that we got that arroyo down to is just about as low as you can get it. So it's kind of either we're going to have to spend that much money or forget the arroyo, and I think that that would be a mistake. We do need the arroyo. JMB But it's adding a water feature to the arroyo. RSK The water feature is we're going to bring the water over from...what is there now on the 18th hole, and just divert it...to the arroyo and come down there; it'll be visible from the top and also from anywhere on the course when you're playing the 18th hole. But the main thing was an enhancement of the whole area. My remembrance is that we did already approve, yes, go ahead with the arroyo into the parking lot, and I don't see from all the discussions we had with staff and all the folks on the Committee there where that we got down as low as you can possibly get it and still have an arroyo. BAC I think originally we had a dry arroyo, so... JMB Right. That's what this adds, the 160 for the wet one. BAC Right. So, yes, we had an arroyo in there, but it didn't have a water feature in it. DY What you had originally, with regards to the plan, was this sparsely landscaped, slight slope -graded area. BAC Yeah. Yeah. It's called an arroyo. JF Can I go back to Jean's question earlier? Because that's always been my biggest question. We budgeted $6 million for the Clubhouse with a $600,000 contingency. As I understand it from this report, we're being asked to do some enhancements and fund it from that contingency of about $329,000, which means we still have about $275,000 left in contingency, and the justification for each 32 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JULY 8, 1999 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * of the Clubhouse items was supported by changes made in the design, the square footage, and other types of things that contingency budgets are put in place for. RSK I was in hopes we could take these one at a time so we could... JF Well I was trying to respond to my colleague's question. RSK We can do that, can't we, and still take the easiest ones first... JF Okay. RSK ...and move them out of the way so that...like I was kind of separating the off -site from the Clubhouse... JF Okay. RSK ...even though it's second here, because I thought it was the easiest. RAS Okay, let's have the easiest. Let's go forward. If you want to take them one at a time, we can vote on them one at a time. RSK Is it all right if we do the off -site first? RAS That's fine. RSK Since we've been, and that's what we've been talking about. BAC I would move that we approve having a sewer and whatever else goes with it to the hotel pads as the off -site issues that are so... RAS That's the arroyo. BAC No, that's not the arroyo. RAS Well that's what we're going take, off -site. RSK That's how we're going to take them, then. Okay I'll second that one, get one done. RAS All right. Please vote. JF Sewer. BAC Yeah for sewers. 33 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JULY 8, 1999 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * SRG Motion carries by unanimous vote. RSK Now, can we take the arroyo next and that will finish us up with the off -site stuff? BAC I guess my question is we started with...didn't we...at one time we started with five million, and then we got six million, and by gosh it wasn't going to come any under that, but they ne-...let me just finish my comment for a second here. And they knew that that's how much money we had, and I'll be darned if the cost didn't come in within a nickel of it. So then we had a contingency, and I always fe-...contractors, at least what little I know about it, always say that homeowners, when they start remodeling, usually come into a phase of the "why-nots." And every why -not that you do always leads to three or four more why-nots, and here we have a couple examples. We did a better interior so why not do better counter tops to go with our why -not better interior. And while we've got our why -not better counter tops, why not put some slate down, because that gives us consistency with the improved interior and so on, and I feel a little like the lobster that gets into the cold water and why not just add a little heat to the water every time, and by the time we're done... JMB You've got a new house. RAS And a cooked lobster. BAC And I'm feeling pretty warm. RSK I tried to get...take care of the arroyo, get that out of the way, but I see we can't do that, we're going to do the Clubhouse. RAS That would be better. Let's do them one at a time. Let's do the...(unclear) RSK But he just went way back to the other one. RAS I know. (Unclear) BAC The arroyo is a why -not. RSK I want to ask a question. BAC The arroyo's...(unclear) RSK I want to answer his particular question because, you know, I'm not overwhelmed with the way we got to this process, but I was kind of a no vote to move ahead with this. We had a consultant come in and tell us about the interior and set out the different kinds of interiors. I was not enthused about the interiors that she showed us-- a couple of them are leopard skins or tiger skins or something upholstery stuff-- that was not what I like. But, nevertheless, the Desert Willow Committee 34 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JULY 8,1999 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * recommended that we go with this level, and it came to the City Council and the Redevelopment Agency, and the Redevelopment Agency also approved this certain level of...for the interior, which was over and above the interior that was bid. It was a higher level of interior, it was approved here at the City Council. I didn't particularly like it at Desert Willow, and I may have voted no when it was there because I thought it was too fancy for a clubhouse. Nevertheless, we did that. So now if we're going to do that level, these are the things that you have to do to reach that level, according to the consultant's presentation to us at Desert Willow. So if you don't want to do these, and these, I'll tell you, we have cut them down in there as much as we can cut them down. If you don't want to do them, then you need to rescind your decision to go up to that level that she presented. Maybe you should have that lady, the consultant come back and make her presentation to the entire Council and decide then, "Well no we don't want to go with that level, we'd rather go with a lower level." Either you're going to have to do that, or you're going to have to approve this! JF Mr. Mayor? RAS That... RSK Did you understand what I said? BAC I understand, and I'll make a real quick response. It'd been nice, and it's not your issue, it's not your, I'm not arguing at you, Richard, at all. But it would have been nice to know that here is the entire improved package at one time. My issue is, and it's not with you, it's with the fact that we keep getting... RSK I know that. I'm... BAC ...we keep getting dribbles of this every time. RSK I'm not taking it personal. BAC I know it. And so... RSK (Unclear) BAC ...I'm buying new shoes, and then with my new shoes I need a new belt, and with my new belt I need another hat... RAS Okay, okay, okay. Councilman Ferguson. JF Yeah...your concern is my concern, and I expressed it at the committee level, and I think that as we went through these things the...the changes that you'll see, and I just want to do them real quick. The enhanced pro shop feature sounds like we're doing a why -not with the pro shop, and the fact of the matter is we added about a thousand square feet of retail space so we could sell more goods; therefore, we needed to build new cabinets for the additional retail goods, and that wasn't an 35 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JULY 8, 1999 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * enhancement, as you would say, it was just we hadn't planned on that large a retail space. Same thing with the data systems. That was, we peeled that down from about $100,000 to the "must -haves,"... RAS What's this? BAC Item two. JF Item two on the data systems. RSK Way down. JF The only thing I think that can legitimately be called a why -not is the interior finish enhancements... and the water to the arroyo feature. Frankly, I could go one way or the other. My own feeling is that if we're within our budget plus our contingency, and this is what our staff is telling us...and that's what we were told...my question was, is this it? Because I'm tired of getting nickeled and dimed at every turn. Are you going to be back in front of us with a, "Oops we gotta do this," and I was told, barring unforeseen problems, which is always a wonderful caveat to throw out, this was it. So we do have it in one package; this is the last one. Most of these were not contemplated way back a year ago spring when we talked to the interior designer. RAS Gregg, could I ask you a couple of questions? I know you and I had a discussion when I don't think you were there at the meeting, or you weren't there, and I took one of your places. I see that you brought the cost from AZ Electric down dramatically. You were going to have 13 television sets going and all that kind of stuff, and you would have had to have five people in security all the time. There also was something in there about enhancing the plates and china and so on, and we got the fellow from Bighorn, were you able to work that out and...? GL Yes. Actually, what we've been able to do is I talked to a couple of people in the community that, one of them that you had recommended, in addition to having our new food and beverage director from Chicago who is going to be on site in early August, go out and actually bid on the same number of things that we had had Impact Interiors do. And by our measure, we could do that more efficiently with less expense if we did it in house, as Kemper Sports Management. That was really our recommendation at the Desert Willow Committee meeting because we could go out and actually do that. RAS So there was no additional expense added, right? GL No. The only...objection that we ran into was that...when we mentioned that to the Barnhart people...who had subcontracted with Impact Interiors, Impact Interiors indicated that they had already done some up -front work to get it to this stage, and then it became kind of a negotiation of, "Well, gee, how much, you know, how much work did you put in on ordering plates and spoons and glasses and,..." quite frankly, I think it's...nominal. And if we go back and tell them that it's... RAS Forget about it. 36 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING DULY 8,1999 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * GL ...that we're going to do it, they'll have to do it. RAS Okay. GL So I feel pretty good about that part of the flatwares, housewares... RAS And also we discussed the possibility of getting some financial support from major vendors for fixturing and so on. GL Right. RAS Were you able to do that? GL Yes. We're still...we have two major vendors that we've approached, and both have been very agreeable to going ahead and actually just cutting us a check. So the only thing that we have left to do now is negotiate how much the check is. RAS So that will come out of the additional enhancement for pro shop fixtures? GL Right. RSK This list here. GL My estimation is that between the two vendors, it'll be a credit in the neighborhood of $20-25,000. RAS Okay. GL We've already got a $9,000 commitment from one vendor...just at the first blush, and the second vendor...will probably be in the same neighborhood. So I'd say they'll write us a check for $20-25,000 to be applied to fixturing or whatever. RAS Okay. Thank you. All right well let's see if we can go forward now. One of the items on here is $19,000 for electrical systems, including security. RSK Can we start on that, this sheet here and item by item? RAS We can do it any way you want to, Dick. I'm just looking at the page that's got all of the items for change order two. RSK This is the staff report that shows each one, right here. And if we start one by one, we'll go right through the recommendation. RAS Well let's do it then. You go ahead. 37 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING DULY 8, 1999 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * RSK Well the one is right here...it's enhanced pro shop. This is the staff recommendation, no use getting upset about it. BAC I would move item one for the issues involved with increasing the square footage of the pro shop and associated costs. JF Second. RAS Please vote. SRG Motion carries by unanimous vote. RAS Go ahead. BAC I would move item two. JF Ooh. Second. RSK Which is really down... RAS Please vote. SRG Motion carries by unanimous vote. BAC On item three, my question is what is an enhanced counter top? DY Essentially, the enhancement deals with the rif cuts or the counter cuts that will show the wood in a certain light; it cuts the wood into a certain area, and you see the...outside of the wood. Also the enhanced aspect of it is the fact that before we would get a...plastic laminate, now we're talking about granite counter tops-- those are in keeping with the FF&E's that we originally approved. One thing that I would mention also is that when we originally approved the $224,000 change order for the furnishings, the issue here is that they're going to have, if...this doesn't get approved, they're going to have one type of furnishing and one type of cabinets. So it's not going to mesh. Keep that in mind, if that occurs. JF Well, Buford, at least from my point of view on the Committee, I did not look at this as a why -not issue but more of a consistency issue, and then, okay, if you're going to raise the bar in consistency, is there a reason for it? In looking at the nature of our golf courses, and our Clubhouse, and the convention business, and the large group business, and the higher end corporate business that we're seeking to attract, as long as we, and this is just my view, within budget plus contingency and aren't going to overrun that, I want to get as nice a product as we can. And our interior experts, and our consultant, and our staff tell us this is the best way to get the most bang for our buck, and having previously approved the bucks, I agree with them. And granted it's nice, but we're trying to attract a nice clientele within a previously approved budget. 38 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JULY 8, 1999 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * BAC Do you agree, Richard? RSK That's the first half of three. And if you want me to take the other half of three? BAC I'm just curious, yeah, I'm just... RSK The other half of three is a $100,000 for flooring, and we don't know for sure exactly what that is, and the reason it's here on this is because we know we have to do it, and we told them we were not going to bring it back to the Council again. We wanted the whole package here. And so that's why it's there because we didn't want to bring it back to you again. And so we took the best guess we could, and kind of on the low side of how much it was going to cost us to change the flooring to match everything else, and that means some, you know, some stone work and a lot of different...it's not just carpet. It's not just a higher grade of carpet, there's a lot of other things that go with the whole flooring plan. The reason the $100,000 is there is because we said, "No. We're not going to bring it back again, and we want everything in this package." JMB Can we be guaranteed this is the last package that's coming in? RSK No! (Laughter) JMB That's what I figured. BAC Can we be guaranteed this is the last package that you'll... RSK I did the best I could to make sure that we got everything in this package so we wouldn't have to bring it again. But I'm not guaranteeing anything. BAC Let me ask a different question. Dave? DY Yes sir. BAC Do you want to go see Councilman Kelly with yet another change order? DY No sir. RAS What would happen if we did not approve...these two items? DY You would get what was originally spec'd, which, like we said, is plastic laminate counter tops... RAS There's nothing in between. DY The issue at this point in time is what we've been told by the contractor is... 39 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JULY 8, 1999 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * RAS That there's nothing in between. DY What we've been told by the contractor is there needs to be a decision made on this because if we wait any much longer, the cabinets that they need to pre -order are not going to get done until...November. JF I think the short answer is yes, there's a lot in between. They need a decision now, this was their recommendation. We can go back and fashion something in between, but you just tack on that time to when we can open the Clubhouse. JMB Well I guess I agree with Jim in the fact that we said $6 million with a contingency. My concern is I knew when we had the contingency, there was no doubt we weren't going to use it. RAS (Unclear) RSK We knew we were going to spend it. JMB We're going to spend it. So as long as were still in it, I just don't want to see it go over that because it gets, can't open because it's over seven million, it'll sit there empty. BAC Yeah. CLO I can answer that question. If you look at what we originally started, typically we provide a 10% contingency on projects, even where we don't make such changes as we have here. With all of the changes that have been approved before and this change, if you approve it, you're looking at $6,598,000 for the Clubhouse. RSK I'll move approval of item three. JF Second. RAS Please vote. SRG Motion carries by unanimous vote. RSK Now all we've got left is the arroyo. RAS The arroyo. JF The arroyo. RAS Does it have to be decided tonight? 40 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JULY 8, 1999 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * RSK Let me ask one question before we decide what to do with it. We're talking about... on the arroyo $160,000 with the water feature. What's the price without the water feature? DY (Unclear)...off of that. RSK Half of that, so we're talking about $80,000. BAC And do we have any kind of look at what this is going to be. I mean I see that, there's water `twixt bushes. DY You essentially have a dry creek bed. BAC I understand that. No, no, no, I mean what are we doing, what are we getting for our $80,000. I read the staff report. JMB Water. BAC Is it...are we trying to create like a small desert stream, is that the issue that we're doing? DY You're essentially getting what the dry look is over at the Intrawest arroyo. RSK I think, let me take a crack at answering your question. It was the idea that there ought to be something, again, I'm not overwhelmed with arroyo, you know. I kind of was the feeling, well go ahead and pave the parking lot and put some different kind of trees there or something. But the idea was that there would be...a level where you could look up through to the Clubhouse, and then as you come up to the 18th green on the Mountain View Course, you, instead of just looking at a wall there and not being able to see the Clubhouse that good, that you'd have this arroyo that would give you a view up through there and vice versa from the Clubhouse; you'd have a view down to the 18th green. So basically we're spending $160,000 to create an image between the Clubhouse and the 18th hole and break up the parking lot. JMB Will I have to play golf to see it, or...? JF No. But I'd also like, because I think the question with the arroyo's always been there, I've never been a big fan of the arroyo, either, because I think it splits up the parking lot and just makes it all the more difficult for people to park on that end. But having put an arroyo there...well I was trying to answer your question, so I just wanted to make sure you...we originally had a water feature to the right of the 18th green as you came up. Once the course got built out, no way over to the right, it was supposed to be a signature piece to highlight the Clubhouse, and it just never quite came together. And the suggestion was made to make a water feature out of the bottom end of the existing arroyo, drop it down so that as you came out of the Clubhouse, you could see the water backset with the green and then the fairway, and then golfers coming up could clearly see the Clubhouse, the entry features, and everything else. Given a choice between a dry arroyo and a hot asphalt parking lot in the middle of summer, and one with water running through it, my preference was to make the water 41 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JULY 8, 1999 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * feature out of the arroyo that had originally been intended for the green. And the cost of doing that came to approximately $80,000, and that's why it is a change order. The question was asked of Dave how much would it cost if we didn't do water, and he said $80,000. RSK Eighty thousand. BAC Let's have an arroyo. RSK I would say that you either have the arroyo with water in it for the $160,000 or... JF Pave the parking lot. RSK ...pave it. And I think without the water it's going to... RAS Is this going to slow down the Clubhouse if we don't decide on the arroyo tonight? DY Yes. They're grading that, and we need to run the line over there. BAC I'll move for an arroyo. RSK Okay. Let me add one more thing to it. There's also... RAS Wet or dry? BAC I want a wet arroyo. RSK ...let me add one thing to it. RAS You've got to say... (unclear) JF Hey you got your motion. RSK More than an arroyo, there's some other stuff up there... JF I'll second. RSK ...that's expensive also. RAS Is there a second? JF I second. RAS Please vote. 42 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JULY 8, 1999 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * JF I've got to... JMB They might even put fish in it. SRG Motion carries by unanimous vote. For purposes of clarification, following are the motions which were made for this item - Change Order No. 2 in the amount of $719,849 to Contract No. C14230 with the Barnhart Group for Construction Services for the Clubhouse at the Desert Willow Golf Resort: Mayor Pro-Tempore Crites moved to, by Minute Motion, approve the off -site sewer line component of Change Order No. 2 to the subject contract in the amount of $230,516. Motion was seconded by Councilman Kelly and carried by unanimous vote. Mayor Pro-Tempore Crites moved to, by Minute Motion, approve the proposal for enhanced pro shop fixtures component of Change Order No. 2 to the subject contract in the amount of $97,762. Motion was seconded by Councilman Ferguson and carried by unanimous vote. Mayor Pro-Tempore Crites moved to, by Minute Motion, approve the proposal for added data systems component of Change Order No. 2 to the subject contract in the amount of $19,464. Motion was seconded by Councilman Ferguson and carried by unanimous vote. Councilman Kelly moved to, by Minute Motion, approve the proposal for interior finish enhancements component of Change Order No. 2 to the subject contract in the amount of $212,107. Motion was seconded by Councilman Ferguson and carried by unanimous vote. Mayor Pro-Tempore Crites moved to, by Minute Motion, approve the proposal for the arroyo feature component of Change Order No. 2 to the subject contract in the amount of $160,000. Motion was seconded by Councilman Ferguson and carried by unanimous vote. Upon a motion by Councilman Ferguson, second by Mayor Pro-Tempore Crites, and unanimous vote of the City Council, Mayor Spiegel adjourned the meeting to Closed Session at 6:20 p.m. He reconvened the meeting at 7:01 p.m. With Council concurrence, Mayor Spiegel suspended the agenda at this point in order to consider Old Business Item F. Please see that portion of the Minutes for discussion and action. 43 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JULY 8, 1999 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * D. REQUEST FOR AWARD OF CONTRACT FOR CONSTRUCTION OF RETAINING/GARDEN WALLS AT THE VALLEY INDUSTRIAL PARK (Project No. 688-98). Mr. Folkers stated he and City Attorney Erwin had been in the process of developing an agreement with the Valley Industrial Park Owner's Association regarding the subject project. Unfortunately, he said the Association's President, Lyn Best, had been away, but Mr. Folkers was able to make contact with him Wednesday afternoon. He went on to report the Association had been collecting funds for the project, after originally estimating their cost at $45,000; however, once into the project and after bids were received, it was found the Association's share amounted to $70,000. He asked Mr. Best if the City carried the Association for three years, if it would then be able to repay the City, to which Mr. Best responded it would work out for them, as they receive approximately $15,000 per year in dues. Mr. Folkers further explained that because of the deplorable condition in the area, staff recommended proceeding with the project. Mayor Pro-Tempore Crites moved to, by Minute Motion, award Contract No. C15940 to Demo Unlimited, Inc., Indio, California, for the subject project on Cook Street between Velie Way and Merle Drive, in the amount of $107,787.75, plus a ten percent contingency in the amount of $10,778.78 for a total of $118,566.53 and authorize the Mayor to execute same. Motion was seconded by Councilman Ferguson and carried by unanimous vote. E. REQUEST FOR AWARD OF CONTRACT FOR INTERSECTION IMPROVEMENTS AT HIGHWAY 111 AND SAN PABLO AVENUE (Project No. 634-96) (Contract No. 15920). Mr. Folkers said staff was pleased to report that it had finally reached the point of being able to begin construction at the subject intersection. He recommended award to the low bidder for the project, Matich Corporation. Councilman Kelly moved to, by Minute Motion, award Contract No. C15920 to Matich Corporation, Colton, California, for the intersection improvements at Highway 111 and San Pablo Avenue between Larkspur Lane and San Marcos Avenue in the amount of $788,717 plus a ten percent (10%) contingency in the amount of $78,871.70 for a total of $867,588.70 and authorize the Mayor to execute the agreement. Motion was seconded by Councilman Ferguson and carried by unanimous vote. F. REQUEST FOR APPROVAL of Extension of Contract for Design Services (Contract No. 15400). Mr. Wohlmuth said in January 1999 staff brought to Council a proposal for City Hall modification, basically a remodel of the Community Services Building and the North Wing of the Administrative Services Building. At that meeting, he said Council directed staff to move ahead with the Community Services Building, the EOC (Emergency Operations Center), and the Code modifications, further directing staff to work with the Finance 44 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JULY 8, 1999 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * Department and Redevelopment Agency to explore modifications to the North Wing, moving Finance to the northern part of the building and Redevelopment forward. He went on to say that as a part of that exploration, Council directed review of the Art Gallery, the counter there, and reported that staff had worked with City departments and the Redevelopment Agency, resulting in an agreement where Finance would move to the northern end of the wing and Redevelopment would move forward. Additionally, staff had been working on the design of the art lobby and wished to contract with Bob Ritchey to begin the drawings and deliver options for the Art Gallery, working with the Community Arts Manager to put into motion those design concepts. He said as the project moved forward, staff would be returning to Council with final drawings, but at this time asked for approval of retaining Mr. Ritchey. Further, he offered that Mr. Ritchey was in attendance to shed a little more light on the work envisioned to date and to answer questions. Mayor Spiegel moved to, by Minute Motion: 1) Authorize staff to extend the existing contract with Robert A. Ritchey, AIA, Palm Desert, California, (Contract No. C 15400) to include the tenant improvement design services for the North Wing Building; 2) appropriate $6,000 from the Unobligated General Fund Budget Reserve to the project budget. Motion was seconded by Councilman Ferguson and carried by unanimous vote. With Council concurrence, Mayor Spiegel suspended the agenda at this point to consider Item XV, Awards, Presentations, and Appointments, Item B. Please see that portion of the Minutes for discussion and action. XIII. REPORTS AND REMARKS A. INFORMATIONAL ITEMS: 1. Progress Report on Retail Center Vacancies Ms. Ruth Ann Moore, Business Support Manager, said she'd provided to the Councilmembers a categorical sales analysis for the stores in the El Paseo Sales District. She highlighted some of the more interesting facts-- women's apparel dominated sales, as it did nationally; but men's apparel, which typically ran about 10% of the sales area, only ran 5% in this market. She said when The Gardens performed its analysis, it found a lack of men's stores; the reason that five new men's stores located in The Gardens carried mostly or exclusively men's apparel, and next year's figures should show a dramatic shift in that sales category. Additionally, she said in the restaurant category the report showed 18 stores doing 22% of all the sales on the street, noting that this figure was quite high for national standards; but in Palm Desert's tourist area, it showed that restaurants would continue to dominate the market. She went on to say that two categories with surprisingly low sales figures were jewelry and arts and gifts, and she said staff would investigate the reason, as these types of stores continued to open and expand on the street. Her first inclination was that these stores might be shipping their product out of state, making those sales 45 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JULY 8, 1999 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * non -reportable to the State. In closing, she said Business Support staff would continue performing this type of analysis for not only El Paseo, but for the City overall to provide a clearer picture of what sales niches might be needed. She said at the next Regular Council Meeting she would provide a comprehensive vacancy review of all the shopping centers, which could be compared against the similar report she provided in August 1998. 2. Progress Report on Desert Willow Clubhouse Facility None 3. Report on Multi -Modal Transit Facility Feasibility Study Mr. Mark Greenwood, Transportation Engineer, reported that from the study performed by Parsons Transportation Group to evaluate the need for and benefits to be gained from a multi -modal transportation facility, the Parsons Group recommended an on -street facility located on Town Center Way, adjacent to the Palm Desert Town Center. He said this recommendation resulted from the inability to negotiate an on - site facility at the Town Center, leaving Town Center Way as the next best alternative. In response to Councilman Kelly's question about what the next step would be, Mr. Greenwood answered that if Council directed staff to proceed, it would begin with the design phase, adding that he believed right-of-way existed. With regard to a site on Town Center Way, Mr. Wohlmuth commented that staff recommended working with the Town Center as it, hopefully, brought a new owner on board and proceeded with its parking facility. Later, he said a consultant could be retained to assist with designing a facility that both met the City's needs and was compatible with the Town Center's expansion design. He said the concept, as now proposed, created a bus pull -in on the street with ample shelters. Councilman Kelly asked staff to be certain to involve the Town Center's architects and designers from the very beginning of the process to ensure compatibility and connection of the two facilities. Mayor Pro-Tempore Crites expressed his concern resulting from a statement within the report which said the facility would be outdated in some five or six years. Councilman Kelly said he had reservations about the consultant's effectiveness, citing work it had done for CVAG. He explained that in time, the subject multi -modal station would be linked with one proposed for near the railroad, adding that there were plans there for park and ride and express bus or train service into Riverside. He said that meant much of the activity that would originate at Palm Desert's facility would eventually move to the facility on the outskirts; therefore, he was comfortable 46 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING DULY 8,1999 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * that the facility proposed mid -City would remain practical for much longer than five years. 4. Status Report on Capital Improvement Projects Mr. Folkers noted the report he provided within the Council agenda packets, further noting that it was stars intent to furnish updated CIP information to Councilmembers on a monthly basis from this point on. Of course, he said Council could still call his department at any time to inquire about specific projects or locations. With Council concurrence, Mayor Spiegel requested that the report be provided monthly. B. CITY MANAGER 1. Desert Sands Unified School District Mr. Diaz said today he received a facsimile transmission from DSUSD about a conference item to discuss Palm Desert High School traffic at the District's July 13 meeting. He said he'd not yet had opportunity to fully read the report of Ruhnau Ruhnau Associates regarding the City's plan, but he would be discussing it with Public Works staff, as well as members of the ad hoc committee for the issue. 2. Washineton Street Median Landscaninq Mr. Diaz said the City had been informally asked to be the lead agency for landscaping medians on Washington Street. He said staff would examine the amount of time necessary to properly administer that project and return to Council with a recommendation for same. Mayor Pro-Tempore Crites said that unless there was an overwhelming reason not to serve in that capacity, he encouraged the City to accept the responsibility, as he felt more confident of Palm Desert's ability than any of the other agencies involved. Council concurred. C. CITY ATTORNEY Prior to their voting to adjourn to Closed Session, Mr. Erwin asked for Council's consideration of adding an item to the agendized Closed Session list by four -fifths vote: 47 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JULY 8, 1999 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * Conference with Legal Counsel regarding significant potential to initiate litigation pursuant to Government Code Section 54956.9(c): Number of potential cases 2 Mayor Pro-Tempore Crites moved to, by Minute Motion, add the aforementioned case to Closed Session consideration at this meeting. Motion was seconded by Mayor Spiegel and carried by unanimous vote. 1) Request for Closed Session Conference with Legal Counsel regarding existing litigation pursuant to Government Code Section 54956.9(a): a) City of Palm Desert v. J.M. Madera, LLC (Caesar Emperor), Riverside County Superior Court Case No. 12724. Significant exposure to litigation pursuant to Government Code Section 54956.9(b): Number of potential cases 2 2) Report and Action on Items from Closed Session Made at This Meeting. None D. CITY CLERK 1. Community Arts Manager Mrs. Gilligan introduced Ms. Carolyn Miller, who started Tuesday this week in the position of Community Arts Manager. She went on to say that she was thrilled that Ms. Miller had already assumed a great deal of responsibility for many of the ongoing projects; her service as an Art In Public Places Commissioner was invaluable to the smooth transition being experienced in that area of the City's administration. Mrs. Gilligan further reported that Ms. Miller had also been working with Mr. Chihuly and that the Clubhouse artwork project was on target. 2. Washington School Fence Mrs. Gilligan reported the Washington School fence would be removed on July 13 to complete its restoration; it was previously planned that the restoration could be completed in place. However, she said it was determined that method would not offer enough climate control to effectively perform all the work required. She detailed that the fence would be powder coated in a body shop, and when it returned, it would 48 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JULY 8, 1999 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * incorporate pastel colors. She noted that the original artist was being brought back to work on the project, which had been considered twice by the Art In Public Places Commission. She expressed her great appreciation for Ms. Charlene Sumpter, Senior Rehabilitation Construction Specialist, who had provided expert assistance with this project, enabling it to progress to the point it was at today. Upon question by Councilman Kelly, Mrs. Gilligan answered the artwork would remain the same; the fence would be beige in color and the animals and details of it would be colored in pastel. E. MAYOR AND MEMBERS OF THE CITY COUNCIL o City Council Reauests for Action: 1. Request for Letter of Opposition to SBC/Pac Bell Increase in Directory Assistance Charges (Mayor Robert A. Spiegel). Mayor Spiegel said he sent out a copy of a notification he'd received which stated Pac Bell wanted to increase the charge for "411" calls by 300%. He went on to report the Los Angeles County Board of Supervisors, for one, had unanimously voted to file a brief in opposition to the requested increase, terming it "gouging for consumers," and the Los Angeles County Sheriff's Department had added its support, as had 16 cities. He asked his colleagues if they felt the City of Palm Desert should join the effort. Councilman Ferguson observed that he felt one of the benefits supposedly obtained when AT&T's monopoly on telephone service was broken up in the early 80's was competition, and if customers didn't like paying $1.10, they could go to Sprint or MCI, etc. He said if that was the case, then Pac Bell could set it at $2.10-- customers could seek another provider. Council disagreed, stating that when "411" was dialed, you got whatever company the telephone was connected to. Councilman Kelly commented that perhaps there had been an in-house procedural error in this case, which had since been remedied. He reported that this issue had already been considered by the Legislative Committee some six months ago, where it was decided not to take a position. He said now the Legislative Committee referred everything it decided to take no position on to the Council. With regard to this particular issue, he reported that providing directory assistance was an extremely expensive service for telephone companies, and when the telephone business was deregulated, it let anyone enter the market. He went on to say that all the companies in the market now, noting Palm Desert had a private system since shortly after his tenure began, which he recused himself from deciding due to his then recent affiliation with 49 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JULY 8,1999 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * GTE, were happy to sell whatever it was that netted a large profit while staying away from nonprofitable services. He asked why a company should be forced to provide directory assistance when everything else was deregulated. He cautioned that the City might be entering a sensitive area if it took a position on a deregulated enterprise. He recommended taking no position. Mayor Pro-Tempore Crites disagreed, suspecting there was significant money being made because of deregulation. He opposed Pac Bell's request. Mayor Pro-Tempore Crites moved to, by Minute Motion, join the effort to oppose SBC/Pac Bell's increase in directory assistance charges. Motion was seconded by Councilmember Benson and carried by a 3-2 vote with Councilmen Ferguson and Kelly voting NO. 2. Volunteer Fire Department (Councilman Richard S. Kelly) Councilman Kelly said he received the information from Mr. Diaz; however, he still had questions about the program. He asked that it be placed on the August 26, 1999, Regular City Council Meeting agenda for more discussion. o City Council Committee Reports: 1. CVAG Energy & Environment Committee (Mayor Pro-Tempore Buford A. Crites) Mayor Pro-Tempore Crites said at the E & E Committee Meeting today a lead issue again was PM10 dust control, scalping, and golf courses. He said it was a pleasure to have two City staff members there, Mr. Folkers and Mr. Knight attended, and he felt there was some excellent data obtained regarding why Indian Wells had gone to the program, adding he felt Mr. Folkers now had the information he needed to meet with Desert Willow on the program. He also presented additional information to his colleagues for their review and felt many of the golf course superintendents had no objection to it. Apparently, he said approximately 30% of Valley courses had already moved to alternate scalping methods; Indian Wells said the main difference they'd seen was that revenues had increased by about $300,000 per year. 50 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING DULY 8,1999 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * 2. Coachella Valley Mountains Conservancy (Mayor Pro-Tempore Buford A. Crites) Mayor Pro-Tempore Crites said the Mountains Conservancy would have its quarterly meeting on Monday, July 12, when he would be out of town. He said Councilmember Benson would represent the City as its alternate; however, State legislation (that was scheduled to be amended) stipulated that the only person who could vote for the City was the appointed representative. Therefore, he asked his colleagues to take official action to make such appointment. Mayor Spiegel moved to, by Minute Motion, appoint Councilmember Jean M. Benson to serve as the City's official representative to the quarterly meeting of the Coachella Valley Mountains Conservancy. Motion was seconded by Councilman Ferguson and carried by unanimous vote. XIV. COMPLETION OF ITEMS HELD OVER FROM 4:00 P.M. SESSION Please see individual items for discussion and action. XV. AWARDS, PRESENTATIONS, AND APPOINTMENTS A. PRESENTATION TO GAYL BIONDI, IN RECOGNITION OF HER SERVICE TO THE CITY OF PALM DESERT AND LIBRARY PROMOTION COMMITTEE (Continued from the meeting of June 24, 1999). With Council concurrence, this presentation was continued to a time uncertain. B. PRESENTATION OF PROCLAMATION DECLARING JULY 8, 1999, AS ART SMITH DAY IN THE CITY OF PALM DESERT. On behalf of the City Council, Mayor Spiegel presented a framed proclamation to Mr. Smith in honor of his 95th birthday today and his contribution to Palm Desert and the other Coachella Valley cities over the past 50 years connected with his interest in the development and maintenance of trails in the Santa Rosa and San Jacinto Mountains. C. PRESENTATION TO THE CITY OF PALM DESERT BY PALM DESERT HIGH SCHOOL. With Council concurrence, this presentation was continued to a date uncertain. 51 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JULY 8, 1999 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * D. PRESENTATION TO THE CITY OF PALM DESERT AND THE PALM DESERT LIBRARY CHILDREN'S STORY ROOM BY SOROPTIMIST INTERNATIONAL OF PALM DESERT. On behalf of Soroptimist International of Palm Desert (SIPD), past president Sonia Campbell stated that during the construction of the Palm Desert Library, SIPD made a pledge of $50,000 to be used for the Children's Story Room there. She said SIPD had made payments toward the pledge for the past few years through fund raising efforts, including the engraving of names on the courtyard walls outside the Library, leaving a pledge balance of $20,000. She said SIPD made a commitment that all proceeds raised by the Mr. Palm Desert event, held June 11, would be applied to the pledge balance. Mr. Palm Desert netted approximately $10,000, which she reported was due in large part, and was very appreciative of the efforts of SIPD member and City of Palm Desert Community Affairs Specialist Pat Scully. Therefore, she was pleased to present to the City Council, on behalf of the Palm Desert Library Foundation, a check in the amount of $15,000-- $10,000 from Mr. Palm Desert and $5,000 from other SIPD fund raising events over the past year. Further, she acknowledged with great appreciation members of the Palm Desert Library Promotion Committee and Mrs. Gilligan for all the hard work they did for the Library, in addition to the assistance and cooperation provided by the City Council and City staff; SIPD was honored to be involved in such a worthy project. With the continued support of the community, Mrs. Campbell felt STPD's remaining $5,000 pledge balance would be paid off by the year 2000. Mayor Spiegel expressed, on behalf of the City Council, appreciation to SIPD for all it had done for the City and its library, making the Children's Story Room a real showcase. Mrs. Gilligan added that as a member of Soroptimist for the past 24 years with many community service projects undertaken in that time, she applauded Mrs. Campbell for her commitment to diminishing the Children's Story Room debt and her fine leadership of the organization in the past year, making her proud to be a Soroptimist. E. APPOINTMENTS TO THE CITY'S TECHNOLOGY COMMITTEE. Mr. Wohlmuth stated staff and two Council liaisons interviewed applicants for the Committee. Mrs. Gilligan commented that she had advised Mayor Spiegel earlier this evening that it was learned Mr. Yarbrough had moved to the Del Webb Sun City development, which was outside the City limits; therefore, his name would be eliminated from the recommendation for appointment. Councilman Kelly moved to, by Minute Motion, appoint Spiro Stameson, Robert Rose, Denise Welch, Jim Lewis, and Roland Alden to the City's Technology Committee. Motion was seconded by Mayor Pro-Tempore Crites and carried by 4-0 vote with Councilman Ferguson ABSENT. 52 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JULY 8, 1999 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * XVL PUBLIC HEARINGS A. REQUEST FOR APPROVAL OF THE SALE OF MOBILE HOME LOT NOS. 26 (APN 622-351-026) AND 57 (APN 622-351-057), LOCATED AT 43-155 PORTOLA AVENUE (PORTOLA PALMS MOBILE HOME PARK) AT FAIR MARKET VALUE (JOINT PUBLIC HEARING WITH THE PALM DESERT REDEVELOPMENT AGENCY). Mr. Diaz said this was a continuation of the sale of mobile home lots at Portola Palms Mobile Home Park. Mr. Ortega stated the purpose of the public hearing was to allow anyone who objected to the sale of the lots opportunity to express those opinions. Staff recommended approval. Mayor/Chairman Spiegel declared the public hearing open and invited testimony FAVORING or OPPOSING the subject sale of mobile home lots. With no testimony offered, he declared the public hearing closed. Mayor Pro-Tempore/Vice Chairman Crites moved to: 1) Waive further reading and adopt Resolution No. 99-74, authorizing the Palm Desert Redevelopment Agency to sell mobile home Lot Nos. 26 and 57, located at 43-155 Portola Avenue (Portola Palms Mobile Home Park) at fair market value; 2) waive further reading and adopt Redevelopment Agency Resolution No. 375, making and finding that the sales price for the lots are not less than their fair market value in accordance with the highest and best used under the Redevelopment Plan for Project Area No. 1, Amended. Motion was seconded by Councilman/Member Kelly and carried by 4-0 vote with Councilman/Member Ferguson ABSENT. B. CONSIDERATION OF AN APPEAL TO THE DECISION OF THE PLANNING COMMISSION APPROVING A REQUEST BY ONE EL PASEO LLC FOR APPROVAL OF A CONDITIONAL USE PERMIT TO ALLOW MEDICAL/DENTAL OFFICE USE OF A 17,000 SQUARE FOOT BUILDING IN THE C-1 ZONE ON THE SOUTH SIDE OF HIGHWAY 111, EAST OF EL PASEO (EAST), 74-235 HIGHWAY 111, LOT 1, PARCEL MAP 26994 Cue No. CUP 99-5/CUP 89-3 Amendment #2 (Gregory A. Swajian, Appellant) (One El Paseo LLC, Applicant). Mr. Steve Smith, Planning Manager, directed Council's attention to the blueprints and renderings displayed for the subject appeal. He said the easterly building was the building in question in this instance, for which the Applicant had obtained a conditional use permit from the Planning Commission. He went on to say the property to the southwest, with a building on it and an L-shaped piece of property running around it, provided a driveway connection in that form. When the Planning Commission approved the request for medical office use in the building on the east, he said it imposed a condition (number four) requiring that the site be enclosed with a six foot block wall. In part, he stated the wall was a response to a concern that the increased intensity of the use in the building to the east, the medical office building, could create a spillover problem onto the property to the southwest, resulting in the condition 53 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JULY 8, 1999 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * to cordon it off and eliminate the connection. Subsequently, he said Mr. Swajian, who was present at the Planning Commission and spoke to the issue, filed the subject appeal. He noted there was some confusion over the Fire Department's input whether or not the wall was desirable; however, shortly after the Planning Commission Hearing, a memo from Fire Marshal Mice McConnell was received which indicated the Fire Department would definitely not want a wall and preferably not a gate system. Upon question by Mayor Pro-Tempore Crites, Mr. Smith affirmed that the recommendation provided for the wall, as conditioned by the Planning Commission, that would be modified at the identified portion to allow traffic to go back and forth. In response to Councilmember Benson, Mr. Smith said there was sufficient parking when the day and evening uses were segregated. Mayor Spiegel declared the public hearing open and invited testimony FAVORING or OPPOSING the subject appeal. MR. GREGORY A. SWAJIAN, 74-175 and 74-090 El Paseo, Palm Desert, referred to the letter he submitted previously. He acknowledged that he was present at the Planning Commission meeting; however, he heard the Applicant state he had met with the Fire Marshal and had pointed out the area to be walled off, and the Fire Marshal made a representation that he supported that action. When he heard that and received the staff report, he was very surprised, and he personally contacted Mike McConnell to ask that question and was advised that the representations made were actually to the contrary; Mr. McConnell visited the site and submitted the letter which advocated opening up the wall to the way it should have been. He said that raised further concerns for him, as a neighbor, for the project going in and whether other representations were valid. First, he said was the fact that the City Council increased medical parking from four to six per thousand, the reason that this came before the Planning Commission. He said originally, another building along El Paseo was approved when Kusack-Radaker owned the project in the early 90's. As a neighbor on both ends, 74-090 and 74-175, of the subject project, he was concerned because it was evident from what had happened at Ruth's Chris Steakhouse that the parking there never worked out, it was inadequate, and he understood Ruth's Chris was going to be moving down the street. He didn't think that situation should keep occurring in Palm Desert. He noted he was also an attorney, and when he read the information, it appeared there were a number of tenuous conditions, namely that there were no luncheons by either LG's or Kaiser Grille. He said LG's had a condition for no lunches in its lease; however, as he indicated in his letter, he'd eaten lunch there when they were open several years ago. Further, he said in his own experience with doctors over the years, the subject instance seemed to state that the doctors' offices would close at five o'clock, which he felt was unrealistic, noting that the current trend was for doctors to lease space then sublease out to other doctors, some of whom worked until seven o'clock in the evening. Therefore, he felt the Council should carefully consider the subject large building and what seemed to be inadequate parking for three very, very popular restaurants in prime season-- Kaiser, LG's, and Jillian's, which consumed all the 54 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JULY 8, 1999 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * parking there. He didn't think it was the best cure to allow a larger building that would create more parking problems in the area. Secondly, he was concerned over Mr. Rasmussen's representation that the aforementioned conditions would be addressed in the lease. However, he was unsure how the City would legally enforce the conditions that medical/dental offices closed at 5:00 p.m. Additionally, he commented that while he hoped Mr. Rasmussen's project was a success, he saw signs indicating it should have opened in the fall of 1998, now they said fall of 1999, while commercial construction interest rates had increased 11/4-11/2% since last fall. He wondered whether the project would really go with this developer or if it would be sold to another, which raised more concerns-- how would those conditions be enforced? He noted it was not a unanimous vote by the Planning Commission; therefore, he felt it would be better if the Council considered whether or not it should enforce the six per one thousand limit on the medical facility being proposed. MR. SAM RASMUSSEN, Ocean Properties Development Corporation, San Diego, CA, owner of the property, said he felt everyone understood the issue; the medical proposal was only 18% of the total project parking. He stated he also had an executed lease extension for LG's Steakhouse, taking it through 2013, plus an additional five years, enforcing and guaranteeing in the lease that establishment would not serve lunch. Mr. Rasmussen said he would furnish that document to City staff tomorrow. He felt the issue here was Mr. Swajian's attempt to set up a smoke screen because his property was under -parked; Jillian's had very little parking, and that property had no right to One El Paseo's parking. Mr. Rasmussen said if there was any parking issue, it was that Mr. Swajian didn't have enough due to his restaurant. Mr. Rasmussen went on to say his project had over 300 spaces and intended to utilize signage which would state parking there was for One El Paseo only, patrons shouldn't park next door. Further, he said they were parking between five and six spaces per thousand and had one of the highest parking ratios anywhere in Palm Desert. Finally, he said as was evident from the display of plans, this project was in final plan check, the entitlement process was completed, and he intended to break ground on the project, would retain control of it, and any suggestion that it would be sold should be discounted. He noted that since his group became involved with the project in 1998, there were doctors and dentists that wanted to get into it; the parking regulation changed while the entitlement process was occurring, and he was trying to give the same group of doctors, sole practitioners, the opportunity to come into the project. Mayor Pro-Tempore Crites asked what could be done if an insufficient parking problem developed with the new project. Mr. Drell said with regard to enforcement of the conditions, in a conditional use permit only the conditions imposed could be enforced. For example, he cited the no lunch condition at LG's, which didn't rely on whether a lease existed or not-- the lease was a contract between them, and it could be changed. Mr. Drell said if there was a problem, such as LG's being open for lunch, then the City could pursue its legal remedies by referring to the condition that was being violated; if it was found all the medical offices were open to eight or nine o'clock at night, causing a parking problem, the City could go back and refer to its condition which stipulated those uses could only be open until 5:00 p.m., and the City Attorney could utilize the courts to enforce those conditions. He also offered that the 55 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JULY 8, 1999 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * permits for all the restaurants could be revoked. He said the analysis did not rely on the fact that there would never be a doctor that might see a patient at five or six o'clock, estimating that 95% of the medical use would be shut down by 5 or 5:30. Based on the City's experience with all of those situations, staff didn't feel it would be a problem if the conditions were enforced, and if not, there were avenues to pursue to achieve compliance. In response to Mr. Diaz, Mr. Drell affirmed the Applicant was willing to construct the wall and put up a gate. Mr. Diaz then said if a problem developed with inadequate parking, the wall or gate would provide greater assurance that the parking would not spillover into adjacent property; however, the adjacent property owner didn't want the wall or gate. Mr. Drell commented that the Planning Commission minutes attested to the fact that one of the Appellant's greater concerns was the existing spillover from Jillian's occurring onto this property at night; a wall would prevent it. Mr. Drell explained the night uses would not change at all, and the parking for the existing night uses was far, far in excess of any that might ever be wanted— over 300 spaces because of all the parking required for office space -- no conflict existed at night. (Ruth's Chris had about 60 spaces available to it.) Responding to Mayor Spiegel, Mr. Drell answered the condition could be included that if a problem developed, the City could require that it be blocked off. Mayor Pro-Tempore Crites added that it should specify if it was determined to be a problem for either neighbor. With no further testimony offered, Mayor Spiegel declared the public hearing closed. Mayor Pro-Tempore Crites moved to waive further reading and adopt Resolution No. 99-75, granting the appeal in part and amending Condition No. 6 of Planning Commission Resolution 1926 to read, "That the applicant shall install a six-foot masonry wall along the southwest, south and east property lines except where the property is adjacent to an existing driveway to the southwest; if overflow parking becomes a significant problem in the future, Applicant or adjacent property owner may request an amendment to this condition to install a wall or gate system to separate the properties. Motion was seconded by Mayor Spiegel and carried by 4-0 vote with Councilman Ferguson ABSENT. C. CONSIDERATIQN OF APPROVAL OF CONSOLIDATED PALM DESERT LANDSCAPE AND LIGHTING MAINTENANCE DISTRICT, FISCAL YEAR 1999/2000 ASSESSMENT LEVY. Mrs. Gilligan reported that the ballots received for Zone 13 of the subject consolidated district prior to this public hearing were tabulated with the following results: 497 "Yes" votes with a total dollar value of $12,247.94 (65.34%); 247 "No" votes with a total dollar value of $6,497.80 (34.66%); and 37 ballots were invalid. Therefore, she said the "Yes" votes prevailed. Mr. Folkers commented that based on the aforementioned results, staff recommended approval of the three actions indicated in the staff report. 56 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JULY 8, 1999 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * Mayor Spiegel declared the public hearing open and invited testimony in FAVOR of or OPPOSED to the Consolidated Palm Desert Landscape and Lighting Maintenance District Fiscal Year 1999/2000 Assessment Levy. MR. JIM LEWIS, 4321 Silk Tree Lane, Palm Desert, expressed his concern for the way street work on Deep Canyon, across the street from his residence, was handled for the recently developed projects there and the resulting dust and debris that he and his neighbors experienced during that time. He felt the street work had been done piecemeal, one small section at a time, which he discussed with Public Works staff, learning that it was a phased development, and the staff member apologized for the length of time involved. Mr. Lewis asked if there was anything the City could do to require a developer to complete the street as quickly as possible for issues of traffic safety and comfort of the surrounding residents and was told there was nothing keeping the City from doing so, but he perceived a possible reluctance on the department's part to force the issue. He said now after seeing one of the developers returning to dig footings for sidewalk, without adequate dust control, he wanted to enlist Council's assistance for any future such development to require that completion of street work and sidewalks be a priority in a project's first phase, no matter how many phases were yet to come. Councilman Kelly said he remembered asking numerous times if the project would be completed at one time, and he was assured it would be. Mr. Folkers responded affirmatively; unfortunately, the developer changed his mind and it wasn't possible to get him to do it. In further response, he said in the future staff intended to utilize stricter control over that requirement. To Councilman Kelly's question why an Ordinance No. 416 wasn't exercised, Mr. Folkers said the developer had to agree to pay. Mayor Pro-Tempore Crites commented if that was the case, the City Attorney could then enforce the requirement, and no soil would be moved until there was satisfactory resolution. Mr. Folkers said he would follow through with that direction. Council concurred that such a situation should never happen again; it was embarrassed that it had occurred in this instance. In response to Council's question whether such an action could be taken and enforced immediately, Mr. Erwin said he would research the issue and report back to the Council at its July 22 meeting. With no further testimony offered, Mayor Spiegel declared the public hearing closed. Mayor Pro-Tempore Crites moved to: 1) Waive further reading and adopt Resolution No. 99-76, declaring the results of a property owner protest ballot proceeding for Zone 13, Palm Desert Country Club; 2) waive further reading and adopt Resolution No. 99-77, amending and/or approving the final engineers levy report, Fiscal Year 1999/2000; 3) waive further reading and adopt Resolution No. 99-78, ordering the levy and collection of assessments, Fiscal Year 1999/2000. Motion was seconded by Councilman Kelly and carried by 4-0 vote with Councilman Ferguson ABSENT. 57 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JULY 8,1999 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * XVII. ADJOURNMENT Upon a motion by Mayor Pro-Tempore Crites, second by Councilman Kelly, and 4-0 vote of the City Council with Councilman Ferguson ABSENT, Mayor Spiegel adjourned the meeting at 8:20 p.m. to 3:00 p.m. Thursday, July 22, 1999, for a Joint Meeting of the City Council and Redevelopment Agency. ATTEST: Y SHEILA R.' GIL�LIGAN , TY CLERK CITY OF PALM DES , CALIFORNIA ROBERT A. TOW-7 58