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HomeMy WebLinkAbout1999-06-24MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING THURSDAY, JUNE 24, 1999 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * I. CALL TO ORDER Mayor Spiegel convened the meeting at 4:05 p.m. II. 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 III. CONSENT CALENDAR A. MINUTES of the Regular City Council Meeting of June 10, 1999, and Adjourned Joint Meeting of the City Council/Redevelopment Agency of June 7, 1999. Rec: Approve as presented. B. CLAIMS AND DEMANDS AGAINST THE CITY TREASURY - Warrant Nos. 56, 57, and 56PD Office Complex. Rec: Approve as presented. MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 24, 1999 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * C. CLAIM AGAINST THE CITY (#386) by James C. Cashman as Executor for Mary C. Usas, in an Unspecified Amount. Rec: By Minute Motion, reject the claim due to insufficiency and direct the City Clerk to so notify the Claimant. D. MINUTES of the City Committee/Commission Meetings. 1. Public Safety Commission Meetings of November 18, and December 16, 1998, January 27, February 17, March 17, and April 21, 1999. 2. Promotion Committee Meetings of March 16, and April 19, 1999. 3. Art -in -Public -Places Commission Meeting of April 21, 1999. 4. Civic Arts Committee Meetings of April 12, May 10, 1999. 5. Library Promotion Committee Meetings of March 10, April 14, and May 12, 1999. 6. Golf Course Committee Meeting of May 10, 1999. 7. Housing Commission Meetings of May 12, and May 24, 1999. Rec: Receive and file. E. RESOLUTION NO. 99-57 - A Resolution of the City of Council of the City of Palm Desert, California, Setting Forth its Findings and Authorizing the Destruction of Files from the Department of Building & Safety that Have Been Microfilmed (May 1999). Rec: Waive further reading and adopt. F. REQUEST FOR AUTHORIZATION to Advertise and Call for Bids for Construction of Hovley Lane Wall and Landscaping Improvement (Contract No. C16160). Rec: By Minute Motion, authorize the City Clerk to advertise and call for bids for subject project, between Kansas and Idaho Streets on the south side of Hovley Lane. G. REQUEST FOR AUTHORIZATION to Solicit Bids for Traffic Signal Repairs at Portola Avenue and El Paseo. This item was removed for separate consideration under Item IV, Consent Items Held Over. Please see that portion of the Minutes for discussion and action. 2 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 24,1999 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * H. REQUEST FOR APPROVAL of Contract for Construction Inspection/Observation Services on Various City Traffic Signal Projects (Contract No. C16170). Rec: By Minute Motion, approve the subject contract with Jerry L. Hahs, P.E., Redlands, California, in an amount not to exceed $50,000 and authorize the Mayor to execute same. Funds are available in Account No. 110-4250-433-3325. I. REQUEST FOR AWARD OF BID for Palm Tree Trimming Services (Contract No C15930). Rec: By Minute Motion, award the subject contract to Jose Sepulveda Tree Service, Indio, California, in the amount of $9.50 per tree. J. REQUEST FOR APPROVAL of Contract for Landscape Design (Phase I) of Frank Sinatra Drive Widening from Portola Avenue to Cook Street (Project No. 592-99) (Contract No C16180). Rec: By Minute Motion, approve the subject contract with Ray Lopez Associates, Palm Desert, California, in the amount of $4,850 plus a ten percent contingency in the amount of $485, for a total amount of $5,353, and authorize the Mayor to execute same. Funds are available in Account No. 110-4310-433-3320. K. REQUEST FOR APPROVAL of Contract for Construction Staking of Intersection Improvements at Monterey Avenue and Country Club Drive (Project No. 640-98) (Contract No C16190). Rec: By Minute Motion, approve the subject contract with The Keith Companies, Palm Desert, California, in the amount of $15,400 plus a ten percent contingency in the amount of $1,540 and authorize the Mayor to execute same. Funds are available from Account No. 213-4355-433-4001. L. REQUEST FOR APPROVAL of Contract for Maintenance of Traffic Signals and Safety Lighting (Contract No. C16200). Rec: By Minute Motion, approve the subject contract with the County of Riverside, Transportation Department, Riverside, California, for the shared maintenance of traffic signals and safety lighting at the intersection of Fred Waring Drive and Washington Street and authorize the Mayor to execute same. 3 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 24,1999 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * M. REQUEST FOR APPROVAL of Change Order No. 2 to Engineering Design Contract for Highway 111 and San Pablo Avenue Intersection Improvements with Robert Bein, William Frost and Associates (Project No. 634-96) (Contract No C12330). Rec: By Minute Motion, approve Change Order No. 2 in the amount of $9,500 for additional engineering design services and authorize the transfer of funds from Project Account No. 213-4342-433-4001. N. REQUEST FOR APPROVAL of Amendment to Contract for Bicycle Safety Program with the State of California (Contract No. C14901). Rec: By Minute Motion, approve the Amendment to Contract for subject program, to include the additional $2,000 for the Continuous Quality Improvement activities and attendance at the CDC Annual Conference and "Revised Project Budget" dated January 1, 1999. O. REQUEST FOR APPROVAL of Grant of Easement Between Dayton Hudson Corporation and the City of Palm Desert. Rec: By Minute Motion, approve the subject Grant of Easement and authorize the Mayor to execute same. P. REQUEST FOR APPROVAL of Outside Agency Funding for Fiscal Year 1999/2000. Rec: By Minute Motion, approve the recommendations of the Outside Agency Committee as detailed in the staff report, and authorize the Mayor to execute agreements between the City and those same agencies. Q. REQUEST FOR WAIVER of Penalty and Interest for Transient Occupancy Tax - Classic Desert Vacation Rentals. Rec: By Minute Motion, deny the request from Classic Desert Vacation Rentals to waive penalty and interest for late Transient Occupancy Tax Returns for September 1998 through February 1999 in the amount of $931.89. R. REQUEST FOR APPROVAL of Route and Post -Parade Activities for the 1999 Palm Desert Golf Cart Parade. Rec: By Minute Motion, approve the route and post -parade activities set up as recommended by Parade Charities, Inc., for the 1999 Palm Desert Golf Cart Parade, which is scheduled to be held on November 7, 1999. 4 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 24,1999 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * S. REQUEST FOR APPROVAL of Out -Of -State -Travel. Rec: By Minute Motion, authorize the Community Affairs Specialist to travel and attend the International Festival & Events Association's 44th Annual Convention & Exposition to be held in Phoenix, Arizona, September 22-26, 1999. T. REQUEST FOR APPROVAL of Final Tract Map 28227-4 (Sunrise Desert Partners, Applicant). Rec: Waive further reading and adopt Resolution No. 99-66, approving Tract Map 28227-4. Mr. Folkers requested Item G be held over for separate consideration under Item IV, Consent Items Held Over. Upon a motion by Mayor Pro-Tempore Crites, second by Councilman Kelly, and unanimous vote of the City Council, the remainder of the Consent Calendar was approved as presented. IV. CONSENT ITEMS HELD OVER G. REQUEST FOR AUTHORIZATION to Solicit Bids for Traffic Signal Repairs at Portola Avenue and El Paseo. Mr. Folkers stated there were wiring problems with the subject traffic signal, located in an enclave of the building on the west side of Portola Avenue, just north of El Paseo. He said that rather than soliciting bids, staff requested the ability to obtain quotes to expedite repairs due to the emergency nature of this situation. Councilman Ferguson moved to, by Minute Motion, authorize staff to seek quotes from responsible providers, followed by expeditious completion of repairs for the traffic signal at Portola Avenue and El Paseo. Motion was seconded by Councilman Kelly and carried by unanimous vote. V. RESOLUTIONS A. RESOLUTION NO. 99-58 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, RESCINDING RESOLUTION NO. 98-78, AND AMENDING THE RATE SCHEDULE OF FEES FOR THE COLLECTION, RECYCLING, AND DISPOSAL OF MUNICIPAL SOLID WASTE AND RESIDENTIAL RECYCLING. Mr. Wohlmuth said the subject resolution set the solid waste and recycling rates for fiscal year 1999/2000 under the City's franchise agreement with Waste Management. He said the franchise allowed the contractor to increase their rates by 50% of the Consumer Price 5 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 24,1999 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * Index (CPI), which was measured from March to March in this area and was 2.2% for the year just ended. Therefore, he said Waste Management was entitled to a 1.1 % rate increase. Once again this year, he said the 1.1 % rate increase for residential collection was being incurred by the City through its recycling fee fund collected from the landfill. He said commercial rates had also increased by 1.1 %. In response to Mayor Spiegel, Mr. Wohlmuth answered residents' bills would not be affected at all. Councilman Ferguson announced that he would abstain from the matter due to his legal representation of Waste Management. Councilman Kelly moved to waive further reading and adopt Resolution No. 99-58. Motion was seconded by Mayor Pro-Tempore Crites and carried by a 4-0-1 vote with Councilman Ferguson ABSTAINING. B. RESOLUTION NO. 99-59 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, ELECTING TO BE SUBJECT TO PUBLIC EMPLOYEES' MEDICAL AND HOSPITAL CARE ACT ONLY WITH RESPECT TO MEMBERS OF A SPECIFIC EMPLOYEE ORGANIZATION AND FIXING THE EMPLOYER'S CONTRIBUTION AT AN AMOUNT AT OR GREATER THAN THAT PRESCRIBED BY SECTION 22825 OF THE GOVERNMENT CODE. Mr. Wohlmuth reported the resolution under consideration represented the City's third bargaining unit, consisting of 80 general employees, that had elected to be subject to Ca1PERS health benefits and subject to the City's cafeteria program with an implementation date of September 1, 1999. Therefore, he said CAPERS required adoption of a resolution to implement the program on that date. He noted there would be a health fair for those employees on July 14, and they would enroll in their health care program under Ca1PERS prior to September 1. In response to Mayor Spiegel, Mr. Wohlmuth responded that general employees had chosen to adopt the same program as the Council and management employees. Councilman Kelly moved to waive further reading and adopt Resolution No. 99-59. Motion was seconded by Mayor Spiegel and carried by unanimous vote. C. RESOLUTION NO. 99-60 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, ESTABLISHING AN EMPLOYEES' CAFETERIA BENEFIT PROGRAM. Mr. Wohlmuth commented that as the City Council proceeded in its benefit program with executive management, establishing an effective date of July 1, 1999, a plan document was prepared by the City's consultant, Shared Medical Alternatives (SMA). He said that 6 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 24,1999 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * document had been modified, and staff requested Council's consideration of that document at this meeting in its final form. He went on to say that the most significant of the modifications resulted from the City auditor's opinion that deferred compensation could not be a direct contribution from a cafeteria (Section 125) plan to the employees. He explained it was the auditor's opinion that it needed to be an indirect contribution, thereby allowing an employee a cash option instead of deferred compensation. He said that was not the intent of the original program; however, it was the opinion of the auditor and specifically identified in Section 125 of the Internal Revenue Code. He noted it did not increase the cost of the cafeteria program, it simply allowed employees the option to receive cash in lieu of deferring the contribution into a 457 (deferred compensation) account. He said staff was not happy with the determination, but it was the interpretation of the IRS Code and staff believed it to be accurate. Mr. Wohlmuth said other than that, there were a few minor modifications in the plan document: 1)Adding Pacificare, which was inadvertently omitted from the HMO options for employees; and 2) agreement to deal with total cafeteria credits every year so that employees received a percentage of the CPI, or in this case, a percentage of the PPO increases-- cafeteria credits to be increased annually by 70% of the PPO increases. Councilman Kelly moved to waive further reading and adopt Resolution No. 99-60. Motion was seconded by Mayor Pro-Tempore Crites and carried by unanimous vote. D. RESOLUTION NO. 99-61 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, APPROVING THE PAYMENT BY THE PALM DESERT REDEVELOPMENT AGENCY FOR ALL OR PART OF THE VALUE OF THE LAND FOR AND THE COST OF THE INSTALLATION AND CONSTRUCTION OF THE PERIMETER WALL AT DESERT WILLOW AND LANDSCAPING FACILITIES. Mayor Pro-Tempore Crites moved to waive further reading and adopt Resolution No. 99-61. Motion was seconded by Councilman Kelly and carried by unanimous vote. E. RESOLUTION NO. 99-62 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, AMENDING THE FISCAL YEAR 1998-99 BUDGET TO PROVIDE ADDITIONAL APPROPRIATIONS FROM THE TRAFFIC SAFETY, GAS TAX, ART IN PUBLIC PLACES, AND GENERAL FUNDS. Mr. Gibson reported the subject resolution effected transfers of funds that were originally in the FY 98/99 budget; however, at the end of the year they were corrected to reflect the actual amount of transfers based upon final figures. Councilman Ferguson moved to waive further reading and adopt Resolution No. 99-62. Motion was seconded by Councilman Kelly and carried by unanimous vote. 7 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 24,1999 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * F. RESOLUTION NO. 99-65 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, RESCINDING RESOLUTION 92-96 AND ADOPTING A RETIREE SERVICE STIPEND FOR COUNCILMEMBERS AND MANAGEMENT GROUPS A & B EXEMPT ON JULY 1, 1999, AND FOR GENERAL EMPLOYEES ON SEPTEMBER 1, 1999. In response to Mayor Spiegel, Mr. Wohlmuth said this matter was somewhat connected to the cafeteria program and health benefits previously discussed; however, it was a separate benefit for employees who had over of 10 years of service. He said the formula was the same, but under C-a1PERS health benefits, the City was required to make an equal contribution for active and retired employees. He went on to say the City did not make an equal contribution, it simply paid a percentage of the premium (50-75 %) for retired employees having 10 or more years of service. However, he said it could no longer be called a "Retiree Health Benefit Plan;" it needed to be renamed "Retiree Health Stipend," which allowed contribution of the same percentage as was formerly given under the Health Plan to retirees who had faithfully served the City for more than 10 years. He said the subject resolution permitted the City to use the same percentages it had been, yet allowed it to offer those benefits to retirees and not be subject to a full contribution for retiree health premiums. He said there were a couple of minor modifications to the previous program, other than the title change; eligibility age was lowered from 55 to 50, coinciding with the Ca1PERS retirement benefit, while keeping the same 10-year service contribution. Further, he said because of the substantially less amount of premium from the old health contract to the new Ca1PERS, although the City's retiree program percentages stayed the same, both the City's and employees' premiums were reduced, thereby reducing the City's unfunded liability and the employees' share. Staff recommended Council's approval of the program. Councilman Kelly moved to waive further reading and adopt Resolution No. 99-65. Motion was seconded by Councilmember Benson and carried by unanimous vote. VI. ORDINANCES For Introduction. 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, EFFECTIVE SEPTEMBER 1, 1999. Mrs. Gilligan stated the ordinance was prepared by the City Attorney, and it brought the City Council's salaries to an amount permissible under the Government Code, $690, representing a $145 per month increase. 8 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING DUNE 24, 1999 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * MR. MURRAY MAGLOFF, resident of Chaparral Country Club, Palm Desert, believed it a privilege to be affiliated with the City and its Council. He felt Councilmembers devoted significant time and energy to the benefit of Palm Desert and were entitled to the recommended increase. In response to Councilman Ferguson, Mr. Erwin responded the last time Council compensation was adjusted was 1991, and the adjustments being made were for cost of living, pursuant to the Govemment Code which allowed an increase of 5 % per year. He said the subject ordinance was based on that calculation. Councilman Ferguson noted the increase then actually reflected a cost of living adjustment to present value from the last time compensation was set in 1991. Councilman Ferguson moved to waive further reading and pass Ordinance No. 917 to second reading. Motion was seconded by Mayor Pro-Tempore Crites 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. Mr. Conlon reported that since the ordinance was prepared, it was discovered that the aforementioned Codes were now available on CD-rom format. Therefore, he said after checking with the City Attorney, it was recommended that the ordinance be amended by adding the following wording where appropriate, "...have actually been filed in the office of the City Clerk in book form or other reproducible form." He noted it would save a considerable amount of storage space in the City Clerk's office, and the change would affect Sections 15.04.010, 15.16.010, 17.01.010, 18.04.010, 18.04.050, and 22.01.010. Further, he noted a typographical error was discovered regarding general contractor's license designation, the ordinance read "B-2," which was in error; it should simply say "B," affecting Sections 18.04.030 and 17.01.020. Mr. Conlon went on to say the ordinance reflected a housekeeping matter; the California codes were effective July 1, and this action brought Palm Desert's Municipal Code up to date. Councilman Ferguson moved to waive further reading and pass Ordinance No. 918 to second reading, as amended. Motion was seconded by Councilman Kelly and carried by unanimous vote. 9 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 24,1999 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * For Adoption' None VII. NEW BUSINESS A. REQUEST FOR APPROVAL OF AMENDMENT TO LAW ENFORCEMENT SERVICES CONTRACT (Contract No. C15141). Councilmember Benson moved to, by Minute Motion, approve the subject Amendment with the County of Riverside for law enforcement services and authorize the Mayor to execute same. Motion was seconded by Councilman Kelly and carried by unanimous vote. B. REQUEST FOR APPROVAL OF MEDIA ONE'S EXTENSION OF FRANCHISE AGREEMENT AND TRANSFER OF OWNERSHIP TO TIME WARNER. Mr. Ray Janes, Management Analyst, said there were two components requiring approval by resolution for this item, noting the recommendation had been changed from that originally agendized to requesting adoption of two resolutions. He said the first was a request by Media One to extend the franchise agreement to June 30, 2000, from its current expiration of October 11, 1999; because of the transfer of ownership to Time Warner, there wasn't sufficient time to work out all the details prior to October 11. Second, he said was the actual transfer of ownership to Time Warner on the condition that the City be reimbursed $2,200 for the transfer review conducted by Telecommunications Management Corporation (TMC) with the Cities of Indio and Rancho Mirage, which determined the company to be technically and financially qualified to assume ownership. He added that currently, Media One was in full compliance with all the terms of the franchise agreement, and based on the aforementioned, there was no reason to oppose the transfer of ownership at this time. He said Media One General Manager Bob Rubery was in attendance to answer any of Council's questions. Councilman Ferguson said he wanted to clear up some confusion he'd encountered, stating the City was not renewing its franchise agreement with Media One/Time Warner; it was simply being given an eight -month extension within which to negotiate, in good faith, a new franchise agreement. In response to Mayor Spiegel, Councilman Ferguson noted the two of them this week interviewed five candidates, with one yet to be interviewed, for the City's Technology Committee. He said the Committee's purpose would be to receive resident input on the types of services they wanted to see provided by their cable franchise operator. He went on to say that input and expertise would be used to assist the City in working with its consultant to draft the new franchise agreement with increased benefits for Palm Desert. He reported that appointments to the Technology Committee were scheduled for the July 8 Regular City Council Meeting. 10 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 24,1999 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * Councilman Kelly moved to waive further reading and adopt: 1) Resolution No. 99-67, extending the expiration of its cable television franchise with Media One from October 11, 1999, through June 30, 2000; 2) Resolution No. 99-68, approving Media One's transfer of ownership to Time Warner, conditioned upon reimbursement of the City's cost for obtaining a franchise transfer review. C. REQUEST FOR APPROVAL OF CONTRACT EXTENSIONS FOR ADVERTISING AGENCY AND NEWS BUREAU/PUBLIC RELATIONS SERVICES FOR FISCAL YEAR 1999/2000. Upon question by Councilman Ferguson, Mrs. Gilligan stated this was the third year of each contract with Publicity Unlimited, the normal term for such services. She said preparation of proposal request documents for City advertising and news bureau services would begin in the fall, and actual proposals would be solicited in January. Councilman Ferguson moved to, by Minute Motion, approve one-year extension of contracts for Advertising Agency and News Bureau/Public Relations Services (Contract No. C 13102 and C 13112, respectively) with Publicity Unlimited, Rancho Mirage, California, for fiscal year 1999/2000 and authorize the Mayor to execute same, subject to approval of the Fiscal Year 1999/2000 Budget to be considered at public hearing later in this meeting. Motion was seconded by Councilmember Benson and carried by unanimous vote. D. REQUEST FOR APPROVAL TO UNDERGROUND EXISTING ELECTRICAL SERVICE LINES SERVING 74-273 AND 74-275 HIGHWAY 111 AND 45-125 PANORAMA DRIVE. Mr. Conlon stated development was underway on the property west of the subject addresses. He said Mr. Sam Rasmussen, Ocean Properties Development, was constructing an office professional complex, and with the undergrounding of lines connected with his project, there was opportunity for the City to piggyback on those efforts and clean up the property next door. Councilman Ferguson moved to, by Minute Motion: 1) Authorize the City to enter into a contract with Ralph Hitchcock and Associates, Cathedral City, California, in an amount not to exceed $2,000 for the purpose of utility coordination and construction management for the subject project (Contract No. C16210); 2) authorize the City Clerk to advertise and call for bids for the electrical, cable TV, and GTE underground conduit system and electrical service panel modifications necessary for the underground conversion. Motion was seconded by Councilman Kelly and carried by unanimous vote. E. PRESENTATION OF MAGNESIA FALLS BRIDGE TRAFFIC ANALYSIS. Mr. Folkers stated the report under consideration attempted to address the concerns/requirements of City Council. In response to Mayor Spiegel's question regarding the project's fruition, Mr. Mark Greenwood, Transportation Engineer, and Mr. Folkers answered there would be a public hearing with notification provided to all affected parties 11 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING NNE 24,1999 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * (Monterey Country Club, all neighboring mobile home parks, and the affected residents in Rancho Mirage). Mayor Spiegel noted staffs recommendation that there be right turn only access for vehicles wanting to enter Monterey Avenue from Magnesia Falls, which Mr. Greenwood affirmed. Councilmember Benson suggested that the two properties on the north side of Magnesia Falls be included in the discussion for consideration of vehicles entering the street from Deep Canyon and its access for many developments. Mr. Diaz stated there would be extensive communication with the entire area, and staff would return to Council with the plan for those discussions before it began the project. Councilman Ferguson moved to, by Minute Motion, receive and file the Magnesia Falls bridge traffic analysis. Motion was seconded by Mayor Pro-Tempore Crites and carried by unanimous vote. F. CONSIDERATION OF AN APPEAL CONCERNING THE ARCHITECTURAL DESIGN OF THE BUILDING EAST ELEVATION AND THE PROPOSED CHANGEABLE COPY SIGNS OF THE BUILDING'S NORTH, SOUTH, AND WEST SIDES, AS IT RELATES TO THE APPROVAL OF 2,900 SQUARE FOOT CONVENIENCE STORE (Chevron Products Company, Applicant) Case Nos. CUP 98/4 and 99-26SA. Mr. Martin Alvarez, Assistant Planner, said the first item to be considered was the building's east elevation and called attention to the renderings of the project displayed for Council. He stated Council's concern stemmed from the project's appearance as the rear of a building, and in response, the Applicant had prepared an architectural detailing of the east elevation in the form of a 1" x 1" tubed steel trellis with vines. He went on to say the proposed solution was before Architectural Review Commission (ARC) on June 22, and the Commission found it unacceptable at that time, stating if Council wished to address the issue further, there were other viable solutions. He commented that the Applicant had an alternate solution that included the use of spandrel glass along the east elevation. Staff recommended direction from Council to review alternative solutions. Mr. Alvarez said that with regard to the item consisting of three, 3' x 3' changeable copy signs on the north, south, and west elevations, staff recommended Council's acceptance of the three signs in exchange for a condition to prohibit any temporary window signage. In response to Mayor Pro-Tempore Crites' question about the east elevation, Mr. Alvarez affirmed that details would be worked out by the ARC. In further response to Councilmember Benson, he said the project's tower element was 25'6"; the movable signs were 3' x 3' on the building's west elevation at its south end, and on both sides of the corners around the south and north elevations. MR. AL NORRIS, of Laguna Hills, CA, representing the Applicant, acknowledged that the building's rear elevation faced the shopping center, which he hoped would soon have 12 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 24,1999 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * a facelift, noting that exposure had been a concern for them all through this process. He said the rear elevation had been changed dramatically with the arches, bump -out features, and two-tone color scheme. Further, he said ARC had asked them to place a line of palm tree landscaping to provide additional mitigation. His firm felt the trellis element offered an attractive accent, and they preferred that alternative over spandrel glass. He noted that with regard to the spandrel glass, when looking at the master parking plan, parking in the rear of the building was configured the same as in the front. His firm was concerned that the plate spandrel glass in the rear might cause confusion over the building's actual front; whereas, the trellis element provided a nice touch and more color dimension than the dark glass. In response to Mayor Pro-Tempore Crites' comment, Mr. Norris said he understood the Council's desire to mitigate the visual impact of the rear of the building; however, he reiterated his concern for customer confusion over the front and rear of the building, especially with all the circulation behind it. Further, he said after looking at the shopping center with large plate spandrel glass to which they were referred, if the trellis wasn't acceptable, they would prefer an alternate measure. When Mayor Pro-Tempore Crites asked Mr. Norris whether he was comfortable working with ARC to iron out an acceptable solution, he answered that it was their desire to bring the matter to closure; even though they were willing to work with anyone Council specified, they wanted some clearer direction for what it would take to be approved. Upon question by Councilman Ferguson about what ARC had already approved, Mayor Pro-Tempore Crites said as it was, the project didn't appear to fit within the future remodeled Palms to Pines East center. He went on to say the Applicant had a variety of options available to address the concerns, and they chose a trellis treatment; ARC said that was unacceptable and offered a better solution-- the window treatment. In response to Councilman Kelly, Mayor Pro-Tempore Crites said the trees weren't as good a way to address the issue. Councilman Kelly disagreed. MR. NORRIS said the window treatment would be a false one, as their walk-in cooler was located in that area, and they preferred the trellis element. He asked Council to remember that there was already a line of palm trees conditioned by the ARC to mitigate the building's rear exposure; additionally, there was also a planter with landscaping in that area. He noted that whatever was done to the back of the wall would be covered by preconditioned landscaping. Mr. Drell believed ARC's view was that there were palm trees interspersed with rhus lancea (canopy trees), and the addition of trellis with those trees was unnecessary. He clarified that he didn't think ARC objected to the addition of trellis; but if the goal was to make the back look like the front, trellis would not provide that. 13 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING DUNE 24,1999 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * Councilman Ferguson said he didn't feel it was Council's intention to make the back sides of buildings look like the fronts, just to take away the visual impact of a plain, bare wall and blend it into the environment. He didn't have a problem with what the Applicant had proposed. Council concurred. Mayor Pro-Tempore Crites moved to, by Minute Motion, approve the 1" x 1" steel tube trellis treatment on the east elevation, as proposed by the Applicant, including approval of three, 3' x 3' changeable copy signs located on the north, south, and west elevations in exchange for the prohibition of any temporary window signage. Motion was seconded by Councilman Ferguson and carried by unanimous vote. G. REQUEST FOR APPROVAL OF PROPOSED FISCAL YEAR 1999/2000 BUDGET FOR POLICE SERVICES INCLUDING THE ADDITION OF A DEDICATED LIEUTENANT. Mr. Diaz noted this and the next two items on the agenda involved the Police Department, that Mrs. Gilligan had done the reports and had recommendations from the Public Safety Commission. Mayor Pro-Tempore Crites moved to, by Minute Motion, approve the police services portion of the 1999/2000 Fiscal Year Budget, including the addition of a dedicated lieutenant. Motion died for lack of a second. Upon question by Councilman Ferguson, Captain Dan Miller, Palm Desert Chief of Police, said with the increased service level that the City had continued to require, including participation in some of the City's committees and commissions, he felt a dedicated lieutenant position was warranted for the City's purposes. Further, he said with the addition of a desert homicide unit, requiring his reallocation of some assignments between lieutenants within the Palm Desert Station, he foresaw decreased availability of a lieutenant to address Palm Desert's needs. Therefore, he stated some of the staff work and some of the meetings would need to be attended by a sergeant, who would bring back the information and requests to the lieutenant for further processing. He explained that with a dedicated lieutenant, the City would benefit from better service by maintaining that higher level of contact between Police Department administration and the City. In further response, he said he would still attend meetings whenever possible; however, he was responsible for multiple cities, contract and County communities, that also required his attention, as well as being commander of the SWAT team for eastern Riverside County. Councilman Ferguson understood the situation, commenting that he would prefer Captain Miller's time be spent on actual law enforcement duties instead of attending City meetings. He questioned whether a dedicated lieutenant was even necessary to serve in that capacity. Captain Miller said there was merit in the continuity of one person attending meetings and to the City's needs, reiterating that he would also attend the same meetings whenever 14 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING NNE 24,1999 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * possible. Upon question by Councilman Ferguson with regard to the budget amount, Captain Miller clarified that the original amount of $145,000 included $25,977 of training cost that did not apply to lieutenants; therefore, the correct cost was $118,000. Captain Miller went on to say the City contract now included 61 positions, and when compared against the universally accepted span of control of one lieutenant per 22 positions, the City was currently at three times that amount. Actually, he said there was currently a lieutenant being provided at no cost— 80% of his time was spent administering Palm Desert's patrol operations. Further, he said the administrative lieutenant who dealt with Palm Desert most frequently also took care of the County budget, Rancho Mirage and Indian Wells contract issues, as well as Palm Desert's. He said with the initiation of the homicide unit, the clerical staff which had previously been under the detective lieutenant would be moved under the administrative lieutenant, taking more of his time. He believed the numbers bore out that the City had reached a point where it needed its own lieutenant. Councilman Ferguson said if Captain Miller had requested a lieutenant to fight crime, he would be all for it. However, he reiterated his concern that if the lieutenant was being requested because Captain Miller's time was absorbed with attending to City Hall duties, he felt it was time to review that situation more closely. He concurred with Public Safety Commission Chairman Tschopp's similar reservation; it wasn't a law enforcement issue, it was a question of the best utilization of personnel. In response to Councilman Kelly, Captain Miller said the dedicated lieutenant's sole function would be to deal directly with the City of Palm Desert regarding traffic complaints, citizen complaints, staffing of projects, research for same, attendance at City Council and Public Safety Commission meetings. Councilman Ferguson commented that in going through the budget process, he was concerned over the fact that the City's police contract had increased 40% in three years' time, and a large amount of the justification for those cost increases was evident. However, he felt the $118,000 for this position could be better spent than by a law enforcement professional attending budget sessions, etc., further noting that police services accounted for over one-third of the City's annual budget. Captain Miller said the $8.4 million in the current budget, slated for approval later in this meeting, included the cost of the subject lieutenant. Responding to Mayor Spiegel's question, Captain Miller said Palm Desert would continue to have its patrol operations lieutenant; therefore, the City would be served by one dedicated position in addition to the services already being performed by the operations and administrative lieutenants. Councilman Ferguson suggested perhaps the police chief did not have to be represented at every function for its duration; maybe it was time to reconsider the amount of manpower utilized for such events. 15 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING NNE 24,1999 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * In response to Councilmember Benson's inquiry regarding annexation of the area of Palm Desert Country Club and its 20,000 residents, Captain Miller answered six deputies were added to Palm Desert's staffing at that time. He went on to say that except for three dedicated sergeants-- one on the target team, one traffic sergeant, and one patrol sergeant, the City had never added positions; however, the service level and size of the contract had continued to grow each year. Mayor Pro-Tempore Crites suggested to his colleagues that before a decision was made on the subject position, the span of control issue should be reviewed more carefully, in addition to considering how to best conserve police administration time for those matters which definitely required it at City Hall. He noted that perhaps the two were independent issues, and it might be determined that the subject position was appropriate. Councilman Ferguson moved to, by Minute Motion, direct the City Manager and Chief of Police to meet and decide how best to reduce the amount of time spent in organizational and managerial meetings at City Hall, and after that meeting if the need is still present, the matter will be returned to the July 8, 1999, Regular City Council Meeting. Motion was seconded by Mayor Pro-Tempore Crites and carried by unanimous vote. H. REQUEST FOR APPROVAT, OF POLICE DEPARTMENT'S REQUEST TO FUND A SHERIFF'S SERVICE OFFICER POSITION FOR ASSIGNMENT TO A VALLEY - WIDE NARCOTICS TASK FORCE. Mrs. Gilligan reported that the Public Safety Commission recommended approval of this request. In response to Mayor Pro-Tempore Crites' inquiry, Captain Miller stated the cost was indicated as one year; however, the Task Force was intended as a long term entity and had to be for maximum effectiveness. He said once the City authorized the SSO position, it could be removed from the Task Force and reassigned at some point in the future, if it was so decided. Councilmember Benson asked what type of return Captain Miller estimated from the Task Force. He answered that in the first year of the Regional Narcotics Suppression Program, a similar program operated in Orange County, $14 million worth of asset forfeitures were obtained. He quickly pointed out that he wasn't promising that sort of return in the Valley program's first year, but it should provide an indication of cases that would lead to asset forfeitures. If not, he anticipated close scrutiny by all agencies involved and a recommendation to disband. In further response, he said the position could be eliminated, and there were often such vacancies to fill within the Station should that occur. Upon question by Councilman Kelly, Captain Miller responded other agencies contributing to the Task Force were Palm Springs, which was housing the unit and providing a lieutenant, a sergeant, and two investigators; the Sheriff's Special Investigation Unit was 16 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 24, 1999 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * providing two deputies; the Indian Wells contract was providing one deputy. Actually, he explained that there was sufficient investigative staff to work the Force, it was support personnel that was needed. Therefore, he said if Palm Desert supplied support personnel, one full share of asset forfeitures would be granted in return. Mayor Pro-Tempore Crites moved to, by Minute Motion, concur with the recommendation of the Public Safety Commission and approve the requested funding, directing staff to add $40,194 to the Police Services portion of the Fiscal Year 1999/2000 Budget, for a dedicated Sheriffs Service Officer II position to be assigned to the Coachella Valley Narcotics Task Force. Motion was seconded by Councilman Kelly and carried by unanimous vote. I. REQUEST FOR APPROVAL OF THE DEVELOPMENT OF A POLICE ACTION COUNSELING TEAM (PACT). Mayor Pro-Tempore Crites moved to, by Minute Motion, continue the subject matter of business in order to allow the Public Safety Commission to gain data responding to the four questions it had, resulting in a recommendation back to Council based on whether the Commission felt the program was appropriate to endorse. Councilman Ferguson seconded the motion but asked that it include direction for staff to also make a substantive recommendation on the program to Council. Mayor Pro-Tempore Crites concurred with that amendment to his motion. Captain Miller stated that Dr. Tonkins was in attendance at this meeting to answer questions on the program, if Council wished to ask her. Mayor Pro-Tempore Crites commented that he had no argument with the quality of the program, but felt it important that all bodies concerned with such matters were involved in the decision making process to provide input. The motion carried by unanimous vote. J. CONSIDERATION OF CLUB INTRAWEST SIGNAGE ON DESERT WILLOW. Mr. Diaz noted the staff report indicated why the signs were necessary, and staff recommended approval. He commented that they were temporary signs; with all the construction going on in the vicinity, it had been difficult to adequately direct persons to the Intrawest project. Mayor Pro-Tempore Crites asked whether the proposed signs had been considered by the Architectural Review Commission, further commenting that he felt it would be an appropriate process since any other such commercial signage was subject to that review. Mr. Diaz answered the signs had not been considered by the Architectural Review Commission and acknowledged that it would be appropriate. 17 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING DUNE 24,1999 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * Mayor Pro-Tempore Crites moved to, by Minute Motion, subject to review and approval of the Architectural Review Commission, approve the subject signage program as proposed by Club Intrawest. Motion was seconded by Councilman Kelly and carried by unanimous vote. K. REQUEST FOR APPROVAT, OF EXTENSION AND REVISION OF LANDSCAPE CONTRACTS WITH VALLEY GARDENING SERVICE (Contract Nos. C07402, C08402, C12291 and C12301). Mr. Folkers stated that Mr. Tom Theobald, Maintenance Services Manager, had negotiated with Valley Gardening Service for the four contracts, representing a 3 % increase for the assessment district areas and 5 % for the other areas. He said for the most part, staff was very satisfied with Valley Gardening Service; there were a couple of minor issues to resolve, but with the new Landscape Manager on board, he expected those troublesome spots to be readily smoothed out. He went on to say that in the next year, staff intended to make those contracts as effective as possible; therefore, staff recommended authorization of the contract extensions for one year. In response to Mayor Spiegel regarding how often this particular service was bid, Mr. Folkers stated these contracts had been extended for several years. He said staff was in the process of standardizing all of its specifications in order to request bids next spring. He further responded that in this case, removal of the prevailing wage clause wouldn't lower the contract cost for this type of work; it was a housekeeping detail. Councilmember Benson asked what other landscape contract services the City procured. Mr. Folkers noted the following item (Sports Complex Facilities Landscaping) was the City's other contract for landscaping services. He further responded to Councilmember Benson by stating staff intended to include all the locations requiring landscape maintenance be bid as one project. Mayor Pro-Tempore Crites commented now that the City had a functioning Landscape Committee, such items would be brought before that group before receiving Council consideration. Mr. Diaz affirmed staffs intention to take such action. Councilmember Benson moved to, by Minute Motion, authorize the extension of the contracts for the Landscape Consolidated Maintenance Area Nos. 1, 2, 3, and 4, for a one-year period with Valley Gardening Service, Thermal, California. Motion was seconded by Councilman Kelly and carried by unanimous vote. 18 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 24,1999 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * L. REQUEST FOR APPROVAL OF EXTENSION OF THE CONTRACT FOR LANDSCAPE MAINTENANCE FOR SPORTS COMPLEX FACILITIES (PALM DESERT SOCCER PARK, COOK STREET SPORTS COMPLEX, OLSON FIELD AND RUTLEDGE FIELD) (Contract No. C15040). Mayor Pro-Tempore Crites moved to, by Minute Motion, authorize a one-year extension of subject contract with Kirkpatrick Landscape Services, Inc., Indio, California, in the amount of $8,200 per month. Motion was seconded by Councilman Kelly and carried by unanimous vote. M. REQUEST FOR APPROVAL OF IMPROVEMENTS ON PHYLLIS JACKSON LANE. Mr. Diaz noted timing considerations for the project accounted for staffs recommendation to proceed as it did. Councilman Ferguson moved to, by Minute Motion: 1) Authorize the City Manager to select contractor(s) based on requests for quotes from at least three (3) contractors, in an amount not to exceed $120,000; 2) authorize the Mayor to execute agreement(s) with the contractor(s) for completion of the improvements; 3) obligate $120,000 for this project from Unobligated New Construction Tax Fund No. 231. Motion was seconded by Mayor Pro-Tempore Crites and carried by unanimous vote. VIII. CONTINUED BUSINESS A. CLAIM AGAINST THE CITY 0#385) BY RON SEGAL IN THE AMOUNT OF $190.13 (Continued from the meeting of June 10, 1999). Councilman Ferguson moved to, by Minute Motion, reject the Claim and direct the City Clerk to so notify the Claimant. Motion was seconded by Councilman Kelly and carried by unanimous vote. IX. OLD BUSINESS A. REQUEST FOR AWARD OF CONTRACT FOR THE 1999 OVERLAY/RESURFACING PROGRAM (Project No. 752-99) (Contract No. C15610). Councilman Ferguson stated for the record that he represented the prevailing contractor, Granite Construction; therefore, he would abstain from this item. Mayor Pro-Tempore Crites moved to, by Minute Motion, award the subject contract to Granite Construction, Indio, California, in the amount of $948,948 plus a ten percent contingency in the amount of $94,894.80 for a total of $1,043,842.80, and authorize the Mayor to execute the agreement. Motion was seconded by Councilman Kelly and carried by a 4-0-1 vote with Councilman Ferguson ABSTAINING. 19 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 24, 1999 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * B. REQUEST FOR AWARD OF CONTRACT FOR 1999 SLURRY SEAL PROGRAM (Project No. 751-99) (Contract No. C15910). Mayor Pro-Tempore Crites moved to, by Minute Motion, award the subject contract to California Pavement Maintenance, Fontana, California, in the amount of $87,130.80 plus a ten percent contingency in the amount of $8,713.08 for a total of $95,843.88, and authorize the Mayor to execute said agreement. Motion was seconded by Councilman Kelly and carried by unanimous vote. C. REQUEST FOR AWARD OF CONTRACT FOR TRAFFIC SIGNAL INSTALLATION AT MONTEREY AVENUE AND HOVLEY LANE WEST AND PURCHASE OF CONTROLLER ASSEMBLIES (Project No. 561-98) (Contract No C15990). Mr. Folkers reported staff was attempting to fast -track the subject program, as previously requested by City Council; approval was recommended. Councilman Kelly moved to, by Minute Motion: 1) Award the subject contract to Sierra Pacific Electrical Contracting, Riverside, California, and authorize the Mayor to execute same; 2) authorize the sole -source purchase of two traffic signal controller assemblies for the subject project from Econolite Control Products, Anaheim, California, in an amount not to exceed $25,000; 3) appropriate funding for construction and purchase of controller assemblies in the amount of $158,240.00 plus ten percent contingency of $13,324 ($171,564 total) from the Traffic Signal Fund. Motion was seconded by Mayor Spiegel and carried by unanimous vote. D. REQUEST FOR AWARD OF BID FOR LANDSCAPE MAINTENANCE SERVICES FOR DESERT WILLOW GOLF RESORT PERIMETER CONTRACT (Contract No. C16000). Mayor Pro-Tempore Crites asked that the subject item of business be continued and referred to the next meeting of the Landscape Committee for its review. Councilman Ferguson moved to, by Minute Motion, continue the subject award of contract and refer it to the next meeting of the Landscape Committee for its review. Motion was seconded by Mayor Spiegel and carried by unanimous vote. E. REQUEST FOR AUTHORIZATION FOR STAFF TO BEGIN ENFORCEMENT OF SMOKING PROHIBITION. Mr. Diaz noted the report he had included in the agenda packets, including the information provided by Captain Miller. He asked Council for its suggestions or changes to the letter he drafted for distribution to City proprietors, attempting to inform existing restaurant and bar owners that the overwhelming number were complying and to thank them for same. Additionally, he said the letter would outline the penalties for those who had not been able to comply with the law. He explained that this item had come up as a result of the Police Briefing session on June 10. 20 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING DUNE 24,1999 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * Councilman Ferguson moved to, by Minute Motion, authorize staff to begin to augment current efforts to enforce smoking prohibitions. Motion was seconded by Councilman Kelly. MR. MILO MALOTTE, 42-280 Wisconsin Avenue, Palm Desert, addressed the Council, expressing his concern for how the law was already enforced at his place of business over the last three weeks. Mayor Spiegel commented that law enforcement personnel were fully within their rights to enforce existing State law. However, he acknowledged the concern of some of the restaurant and bar owners, which prompted the subject letter to inform all of the City's intention to enforce the smoking ban, even though it was within its legal right to do so at any time. MR. MALO felt the way it was currently handled was out of hand. He stated someone was cited for smoking in his establishment, and three persons ended up being maced. In response to Councilman Ferguson's question about how he dealt with smoking patrons, Mr. Malotte said those customers were told they couldn't smoke, adding that he'd built a patio in the back of his establishment for smokers. He said a week after the first citation was given, the same officer returned, the customer was smoking out in back and was arrested for public intoxication. Councilman Ferguson noted that was also a violation of the law. Mayor Pro-Tempore Crites recommended that Mr. Malotte be invited to sit down with Mr. Diaz and Captain Miller to address issues of selective enforcement, courtesy of officers, etc., to ensure proper protocol was being followed. Council and Mr. Malotte concurred with that suggestion. MR. TOM MARTIN, 45-676 Panorama Drive, Palm Desert, reminded Council of Palm Desert's tourist orientation, fearing they would travel to Arizona or Nevada because of California's smoking ban. He would appreciate Council's taking a moderate approach to the situation. MR. JACK WISE, 8200 Avenue 50, Indio, CA, said he operated three establishments-- Smoky's, an athletic club, and another in Palm Desert. He appreciated Council's concern for the matter, noting it was a difficult situation-- dealing with an OSHA law that he felt, as did some Assembly members, was poorly written. He recognized and respected Council's limitations with regard to enforcement of a State regulation. His major problem was with the air filtration systems installed in his establishments to minimize or remove the smoke, and OSHA law stated if there was an OSHA -approved ventilation system to outside air, smoking was allowed. However, OSHA had not yet approved any units. He expressed his desire to fully cooperate, as he believed nearly all of the proprietors would, acknowledging occasions where the situation had gotten out of hand. He believed there 21 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 24, 1999 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * should be an opportunity to address those problems with the City and offered to do so as part of a team effort. Mayor Pro-Tempore Crites suggested Mr. Wise be included in the aforementioned meeting with the City Manager and Chief of Police. Councilman Ferguson clarified that the reports received from the City's Police Department and residents indicated the overwhelming (all but one or two) majority of restaurants were compliant, and the one or two in the minority were blatantly disregarding the law, almost inviting violators. Therefore, he said the City's task was how to approach those noncompliant establishments without punishing those who were abiding by the statute, or were at least trying. He went on to say the compromise reached was to send a little reminder letter before police officers with more serious matters to address were assigned to patrolling restaurants for smokers. MR. WISE appreciated that effort, noting that he was enforcing the smoking ban in the restaurant portions of his establishments-- partitions to separate the bar and eating areas -- as, he felt, were most of the other similar establishments; it was the bar sections where the subject errant smoking occurred. He noted that different establishments catered to varied clientele, believing some had as high as eight out of every ten patrons who smoked; however, some bars were more restaurant oriented, and they might have closer to a fifty- fifty ratio. The motion carried by unanimous vote. X. REPORTS AND REMARKS A. INFORMATIONAL ITEMS: 1. Progress Report on Retail Center Vacancies Mr. Diaz noted the reports contained within the agenda packets and that Ms. Moore also wished to provide information on Palm Desert's Million Dollar Days promotion. Ms. Ruth Ann Moore, Business Support Manager, reported Million Dollar Days would begin July 1 and run through August 31. She said the Committee changed the event this year, now called the "Million Dollar Days Passport to Savings," and instead of an envelope of dollars included in the City's newsletter, residents would receive an insert with tear -off portion that, when folded, looked just like a passport. Shoppers would carry their passports and present them for discounts, and she said all participating merchants were listed on the back of the insert. She went on to say 30,000 inserts were printed for inclusion in the July 1999 Bright Side and another 20,000 would be distributed to local hotels and various locations 22 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 24,1999 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * throughout the City, including the Visitor Information Center. Further, she said each merchant now had the opportunity to customize their discount to the resident; over 200 merchants participated this year, including all College of the Desert Street Fair vendors. She explained that there were over $10,000 worth of prizes, with a Baja Mexican cruise provided by Cruise One in Palm Desert as the grand prize. She said Business Support Center staff would be delivering materials to all 200 merchants over the next six days. Mayor Spiegel commended Ms. Moore for her part in the program's design. In response to his question, Ms. Moore answered that City Council, City staff and families, nor Million Dollar Days Committee members were eligible for any of the prizes; however, they were able to participate in the discount program. In response to Mayor Pro-Tempore Crites' question, Ms. Moore said Palm Desert's share of farm implement sales dropped most likely due to the closing of the Home Base store, as Palm Desert was the leader in that category last year. Ms. Moore closed by stating at the next Council meeting she would provide a block -by -block sales report on El Paseo for 1998. Upon question by Mayor Spiegel, she said she'd also provide a vacancy report at the next meeting. 2. Progress Report on Desert Willow Clubhouse Facility Mr. Allan Levin, Allan Levin Associates, Palm Desert, as the contractor hired to perform construction management services for the Desert Willow Clubhouse, reported that the lumber had been delivered, walls were being raised, most of the steel work was now complete, and roofing would begin soon-- everything was moving forward. Upon question by Mayor Spiegel, Mr. Levin said the sand hadn't been blowing, they'd been keeping the site well watered, and the irrigation system that had been installed throughout the sandy area of the Clubhouse pad seemed to be doing fine. Mr. Ortega added he had not received any complaints. In further response to Mayor Spiegel, Mr. Ortega said the contractor asked the City to put more water on the site, to saturate it in order to get good germination of the wild flowers. Mr. Ortega added that soil would need to be broken up, as previous treatment of the area seemed now to be repelling the water. When asked by the Mayor, Mr. Levin responded that according to the contractor, the project was still scheduled for an end of October opening. 23 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 24, 1999 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * B. CITY MANAGER 1. Rem on Acquisition of Hillside and Urban Open Space. Mr. Diaz said he'd provided a brief memo on the subject. However, he added that during the Study Session earlier today, the possibility of using Redevelopment bonding to offset some of these costs was discussed. He went on to say if it was decided to utilize a Citywide assessment district to acquire open space or offset some of the costs involved, the report outlined the necessary steps. In response to Councilmember Benson's inquiry regarding the time line for a 2000 ballot measure, Mr. Diaz said he presumed it would be possible to include the matter on the November 2000 ballot, but he would confirm that information and provide it for Council's review. Councilmen Kelly and Ferguson expressed their disagreement with the assessment district idea for obtaining open space. Councilman Kelly added that with the City's financial status, it would be wrong to assess residents for the program. Councilman Ferguson agreed; however, he said he also agreed fully with Councilmember Benson's desire to acquire hillside open space. Councilmember Benson pointed out she hadn't necessarily agreed with the method of acquiring it, either. 2. Introduction of Landscape Manager Mr. Diaz introduced Councilmembers to Mr. Spencer Knight, newly hired as the City's Landscape Manager. Councilman Kelly commented that he'd appreciated Mr. Knight's attendance at this morning's Landscape Committee meeting. C. CITY ATTORNEY Mr. Erwin requested a Closed Session at an appropriate time in conjunction with the Redevelopment Agency for those items on the agenda, and he asked that the following two items be added to Closed Session consideration by four -fifth's vote: Conference with Real Property Negotiator pursuant to Government Code Section 54956.8: 1) Property: Lease Property - Parkview Professional Office Buildings, 73-710-720 Fred Waring Drive, Palm Desert, CA 92260 Negotiating Parties: Agency: City of Palm Desert/Paul S. Gibson, Finance Director Property Owner: City of Palm Desert Other Parties: USFilter Corporation Under Negotiation: Price x_ Terms of Payment 24 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 24,1999 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * Conference with Legal Counsel regarding existing litigation pursuant to Government Code Section 54956.9(a): City of Palm Desert v. J. M. Madera, LLC (Caesar Emperor), Riverside County Superior Court Case No. 12724 Mayor Spiegel moved to add the two aforementioned items to the Closed Session agenda. Motion was seconded by Mayor Pro-Tempore Crites 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. Mary English Lloyd and Juan M. Armenta, Riverside County Superior Court, Case No. 006499 Significant exposure to litigation pursuant to Government Code Section 54956.9(b): Number of potential cases Significant potential to initiate litigation pursuant to Government Code Section 54956.9(c): Number of potential cases _4_ 2) Report and Action on Items from Closed Session Made at This Meeting. D. CITY CLERK 1. Selection of California Joint Powers Insurance Authority Director. Mrs. Klassen reported that according to Councilman Ferguson, there had been a change in status; he was no longer the City's director, Councilman Kelly was. After discussion about the position and responsibilities, including that Ken Weller and Paul Gibson served as alternate directors for the City, Council concurred that the Mayor would appoint one of his colleagues to serve as the CJPIA Director representing Palm Desert. The annual meeting would be held July 21. 25 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING DUNE 24,1999 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * E. MAYOR AND MEMBERS OF THE CITY COUNCIL City Council Requests for Action: 1. Meeting with City Manager and College of the Desert (Mayor Pro-Tempore Buford A. Crites) Mayor Pro-Tempore Crites expressed his appreciation to Mr. Diaz for a job well done in the recent meeting with College representatives and for moving forward some of the pressing issues between the two agencies. o City Council Committee Reports. None Upon a motion by Mayor Pro-Tempore Crites, second by Councilman Ferguson, and unanimous vote of the City Council, Mayor Spiegel adjourned the meeting to Closed Session at 5:34 p.m. He reconvened the meeting at 7:00 p.m. XL COMPLETION OF ITEMS HELD OVER FROM 4:00 P.M. SESSION None Xll. AWARDS, PRESENTATIONS, AND APPOINTMENTS A. PRESENTATION TO CITY COMMI11'EE AND COMMISSION MEMBERS IN RECOGNITION OF THEIR SERVICE TO THE CITY OF PALM DESERT: JANET BRODY, CIVIC ARTS COMMI t t ti; GAYL BIONDI, LIBRARY PROMOTION COMM' i i th. On behalf of the City Council, Mayor Spiegel presented an engraved crystal clock to Ms. Brody in appreciation of her ten years of service to the City, serving as a member of the Civic Arts Committee and her contributions to the City's Art In Public Places Program, annual Student Art & Essay Contest, and the Concert Series. Mayor Spiegel went on to say that in the past year the Art in Public Places Subcommittee was separated from Civic Arts and made its own Commission, to which Ms. Brody was appointed to serve as a Commissioner. Ms. Brody expressed her appreciation for the recognition and to City staff, which she felt was marvelous. With Council concurrence, presentation to Ms. Biondi was continued to the meeting of July 8, 1999. 26 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 24,1999 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * With Council concurrence, Mayor Spiegel suspended the agenda at this point to consider Item C. Please see that portion of the Minutes for discussion and action. B. APPOINTMENT TO CITY'S PROMOTION COMMI i i ti. Mayor Pro-Tempore Crites moved to, by Minute Motion, appoint Neil Lingle to the Promotion Committee to fulfill the vacancy created by the resignation of Jim Lopez. Motion was seconded by Councilman Ferguson and carried by unanimous vote. C. PRESENTATION TO PALM DESERT MIDDLE SCHOOL "ACADEMIC SUCCESS" WINNERS. Mayor Spiegel commended the Middle School for its great success in many areas during the past academic year. On behalf of the City Council, Mayor Spiegel and Palm Desert Middle School Principal Chris Nugent presented certificates of recognition to each of the "Academic Success" winners from Palm Desert Middle School. The students were honored for their achievements in the areas of math, science, and music. With Council concurrence, Mayor Spiegel recessed the meeting at 7:22 p.m. in order to allow students to be excused from the Chamber. He reconvened the meeting at 7:29 p.m. XIII. PUBLIC HEARINGS A. CONSIDERATION OF THE ADOPTION OF THE CITY MANAGER'S AND EXECUTIVE DIRECTOR'S PROPOSED FINANCIAL PLAN FOR FISCAL YEAR 1999/2000 (JOINT PUBLIC HEARING WITH THE PALM DESERT REDEVELOPMENT AGENCY AND PALM DESERT HOUSING AUTHORITY). Mr. Gibson noted the resolutions agendized for approval, covering the City, Redevelopment Agency, and Housing Authority. Additionally, he said there needed to be approval of the salary schedule and allocated positions, which he noted had been augmented according to direction given at today's Study Session, and staff would make the appropriate changes to the other accounts according to actions taken earlier in this meeting (i.e. Sheriff's contract, etc.). He said the amended resolutions would be presented to the City Clerk's office for processing. Mr. Gibson went on to report that the General Fund Budget reflected $28,650,000 in revenues and $28,397,000 worth of expenditures, leaving a positive balance of some $250,000. Mayor/Chairman/President Spiegel noted that Mr. Gibson normally utilized a conservative approach to estimate revenues and a generous approach to calculate expenditures. In response to Mayor/Chairman/President Spiegel's question about how Fiscal Year 1998/99 would end, Mr. Gibson said he believed revenues would be a positive $3 million, but with the land purchase completed this year, expenditures would absorb that amount ($3 million positive without the land purchase). 27 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 24,1999 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * Upon question by Mayor Pro-Tempore/Vice Chairman/Vice President Crites, Mr. Gibson responded that approximate reserves at the end of FY 98/99 totaled $32 million worth of General Fund excess funds, noting that there were also special revenue funds and other funds. In response to Councilmember/Member/Commissioner Benson, Mr. Ortega said the Redevelopment Agency owed the City $24.4 million. Mayor Pro-Tempore/Vice Chairman/Vice President Crites commented that left the City with approximately $50 million worth of reserves. Mayor/Chairman/President Spiegel declared the public hearing open and invited testimony FAVORING or OPPOSING the Fiscal Year 1999/2000 Budget. With no testimony offered, he declared the public hearing closed Mayor Pro-Tempore/Vice Chairman/Vice President Crites commended Palm Desert citizens and City staff for the excellent job they had done to enable preparation, once again, of the City's balanced budget and for its ample reserves. Council wholeheartedly concurred. Mayor Pro-Tempore/Vice Chairman/Vice President Crites moved to: 1) Waive further reading and adopt Resolution No. 99-53, adopting a City program and financial plan for the fiscal year July 1, 1999, through June 30, 2000, with the changes so noted; 2) waive further reading and adopt Resolution No. 99-54, establishing the appropriations limit for the 1999/2000 Fiscal Year; 3) waive further reading and adopt Redevelopment Agency Resolution No 373, adopting a Redevelopment Agency program and financial plan for the fiscal year July 1, 1999, through June 30, 2000; 4) waive further reading and adopt Housing Authority Resolution No. HA-7, adopting a Housing Authority program and financial plan for the fiscal year July 1, 1999, through June 30, 2000; 5) waive further reading and adopt Resolution No. 99-55, setting the salary schedule, salary ranges, and allocated classifications, as amended to reflect the salary and position changes per direction given during today's Study Session. Motion was seconded by Councilman/Member/Commissioner Ferguson and carried by unanimous vote. Mayor Pro-Tempore/Vice Chairman/Vice President Crites extended special compliments to two of his colleagues, Councilmember/Member/Commissioner Benson and Councilman/Member/Commissioner Kelly, the two senior members of the Council/Agency/Authority who he felt deserved credit for the City's financial health today, resulting from their wise direction over the years. B. CONSIDERATION OF APPROVAL OF THE DISPOSITION AND DEVELOPMENT AGREEMENT BETWEEN PALM DESERT REDEVELOPMENT AGENCY AND CALIFORNIA STATE UNIVERSITY (JOINT PUBLIC HEARING WITH THE PALM DESERT REDEVELOPMENT AGENCY) . Mr. Ortega stated the purpose of this public hearing was to receive public comment on the Agency's recommendation to sell Agency property to California State University (CSU), 28 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 24,1999 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * and more particularly, to comment on the Agency's justification for the recommended sales price. He said a copy of both the agreement and required report, pursuant to Redevelopment Law, had been made available to the public for more than two weeks, and this public hearing had been advertised according to Redevelopment Law. Prior to the opening of the public hearing, he wished to point out that the resolutions given to the Council/Agency differed from the ones agendized in the manner of identifying 200 acres versus 40. Additionally, he said the recommended action on the agenda, approving the Disposition and Development Agreement (DDA), was actually incorporated within the resolutions; therefore, that specific action was unnecessary (the resolutions provided authority to approve the DDA). In summary, he said the DDA provided for the initial transfer of 40 acres to CSU for the location of what was known as the Coachella Valley Center; ultimately, it granted an option to be exercised at a later time by CSU, providing certain actions had transpired, for the transfer of an additional 160 acres to occur in phases. He said the DDA also provided that the Agency would have certain review authority, particularly as additional land was transferred, with the requirement that the land would eventually be transferred when there was a decision to build a full campus to be named "California State University at Palm Desert." He noted there were still some areas to be worked out with CSU; therefore, staff recommended opening the public hearing for comments and continuing the public hearing, or at least continuing the item if it was decided to close the public hearing. Mayor/Chairman Spiegel declared the public hearing open and invited testimony in FAVOR of or OPPOSED to the subject consideration of approval. MR. MICHAEL BRACKEN, Executive Director of the Coachella Valley Economic Partnership (CVEP), 73-710 Fred Waring Drive, Suite 205, Palm Desert, addressed the Council. He said CVEP was a private -public partnership bringing together approximately 100 private sector corporations and the jurisdictions/municipalities of the Coachella Valley in an effort to spur regional economic diversification through business recruitment and job creation. He said the Partnership's overriding goal was to recruit companies into the region who created jobs at or above the generally accepted living wage of $30,000-35,000 per year. Currently, he said CVEP was working with over 20 companies, representing approximately 1,000 new living wage jobs in the region, and as he worked with various companies-- manufacturers, assemblers, technical support companies, and research and development firms-- one of the concerns expressed most frequently was workforce preparation and development of skilled/semi-skilled professionals, including tradespersons and technical managers. He said with respect to that concern, it was obvious that the region lacked one key element-- a true, four-year university to offer the corporate community and residents. To that extent, he stated the CVEP Board of Directors offered a letter of support, as was forwarded to the City Clerk, encouraging the City Council to complete the necessary legal documents with the State of California to effectuate development of the new campus. In the way of assistance, he noted that CVEP and its corporate partners, including Bill Powers, Kay Hazen, Dick Cromwell, etc., had pledged their personal support, as well as his own experience with land acquisitions, to step 29 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 24,1999 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * forward and assist both of the parties in any way deemed necessary to complete this needed project. Mayor Pro-Tempore/Vice Chairman Crites assumed that Mr. Bracken was equally willing to be persistent on the other side of the subject acquisition in order to convince CSU of the project's appicoviateness. Mr. Bracken said he and Dr. Wilson had discussed that already, and for what it was worth, noted he was a double graduate of CSU with a bachelor's and a master's, in addition to just signing on as an adjunct professor there; he had a very personal interest in seeing CSU expand into the Coachella Valley. Further, he commented that he would do what he could with President Karnig and others to promote constructive negotiations that would result in the campus being built. With no further testimony offered, Mayor/Chairman Spiegel declared the public hearing closed. Councilman/Member Ferguson responded to Mr. Bracken's remarks, commenting that there was very little disagreement over the recognition of the economic benefits of a four- year university in the Coachella Valley. He felt that was why the wisdom of the Palm Desert City Council prevailed a number of years ago when it offered CSU 200 acres of land that was worth approximately $14 million. However, he noted discussions were somewhat stalled; it had been five years, and he wanted to thank Mayor/Chairman Spiegel and the Council/Agency Board members, particularly Mayor Pro-Tempore/Vice Chairman Crites, who had taken a yeoman's effort over the past year to move things off of dead center. He went on to say 40 acres of land had been offered to initiate a CSU-Coachella Valley campus, 160 acres had been offered once the CSU Board of Regents decided to site a four-year, freestanding university in the region, totaling 200 acres, and approximately $6 million in financial assistance had been offered in the form of a loan to help build the campus' first building. In return for those items, he said the City/Agency only asked CSU that the campus be built according to the master plan, and if they deviated beyond the master plan, that they did so in consultation with the City of Palm Desert. Further, he asked Dr. Wilson directly tonight, and anyone in the CSU hierarchy reading these Minutes, to please consider this offer and do so in a timely manner, noting he was as anxious as anyone to see students behind desks on that site, as were his colleagues. He wanted to see the process move forward and be finalized this year, as he was sure Mayor/Chairman Spiegel was also, observing that the four-year facility was needed for many reasons— economic development and otherwise-- and the City, when reviewing the actions of his predecessors and the present Council/Agency Board, had gone leaps and bounds beyond the normal pale to accomplish that goal. He asked that the University take that into consideration and return with a definitive answer to the offer. Councilmember/Member Benson concurred wholeheartedly. Mayor Pro-Tempore/Vice Chairman Crites added that there were many reasons for why things couldn't be accomplished-- "We haven't done it that way before," and "That's not the State's way of doing it...etc.," but those didn't take one anywhere except where they'd been in the past. Therefore, he admonished if there was anything a university should be 30 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 24,1999 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * about, it ought to be about the future, and it ought to be about figuring out how to get things done. Councilman/Member Ferguson agreed, quoting a familiar saying of Mayor Pro- TemporelVice Chairman Crites that went, "Let's quit finding out why we can't do things and find out how we can." Councilman/Member Ferguson moved to, by Minute Motion, continue consideration of the Disposition and Development Agreement between the Palm Desert Redevelopment Agency and California State University to the meeting of July 8, 1999. Motion was seconded by Mayor Pro-Tempore/Vice Chairman Crites and carried by unanimous vote. C. PUBLIC MEETING ON PRELIMINARY ANNUAL LEVY REPORT FOR THE PALM DESERT CONSOLIDATED LANDSCAPE AND LIGHTING ASSESSMENT DISTRICT, FISCAL YEAR 1999/2000. Mr. Diaz noted the staff report and stated Mr. Tom Bassler, Senior Management Analyst, was available to answer any of the Council's questions. Mayor Spiegel declared the public comment period open and invited testimony with regard to the subject Consolidated Landscape and Lighting Assessment District, Fiscal Year 1999/2000. With `� no public comment offered, Mayor Spiegel declared the period closed. No Council action was required at this meeting. D. CONSIDERATION OF APPROVAL OF A GENERAL PLAN AMENDMENT TO ADD SENIOR OVERLAY, ZONE CHANGE TO ADD SENIOR OVERLAY DESIGNATION, A PRECISE PLAN AND CONDITIONAL USE PERMIT, DEVELOPMENT AGREEMENT AND NEGATIVE DECLARATION OF ENVIRONMENTAL IMPACT AS IT RELATES TO A 76 UNIT SENIOR (AGE 62 AND OLDER) APARTMENT PROJECT ON 3.38 ACRES ON THE WEST SIDE OF CALIFORNIA AVENUE, SOUTH OF NEW YORK AVENUE, 77-080 CALIFORNIA AVENUE Caw Nos. GPA 99-1, Ca 99-1, PP/CUP 99-6 and Development Agreement (Raymond T. Troll, Applicant). Mr. Steve Smith, Planning Manager, noted the display of renderings available for Council's review and stated the subject property was 3.38 acres on the west side of California with the proposal for 76 units reserved for seniors, age 62 and older. He said the project consisted of seven buildings, three single -story, 18-feet high; and three two- story buildings, 24-feet high; with a single -story recreation and leasing building, including swimming pool area, in the center. He noted the single -story units were located adjacent to the single-family dwellings to the south and the golf course clubhouse to the north; the two-story units were located near the center of the site, overlooking the golf course. He went on to say access was via two driveways from California Avenue, with 95 on -site parking spaces and as proposed, 48 would have been covered, 47 open; however, at staff s 31 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING NNE 24,1999 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * recommendation, the Planning Commission imposed a requirement that at least one covered space per unit be provided, a minimum of 76 carport spaces. He stated the site plan met all the setback, coverage, height, and intensity requirements of the R-2 S.O. zone, if the project was limited to persons age 62 and older. Mr. Smith indicated that the architecture and landscaping had received preliminary approval from the Architectural Review Commission, and the project was presented to the Project Area No. 4 Committee which recommended its approval. Further, he said the Palm Desert Country Club Association Board of Directors approved the project at its April 12 meeting, and the Planning Commission, on a 4-0 vote, recommended approval of the project. He commented that at the Planning Commission hearing, there was one area resident who was concerned about the lack of sidewalks in the area; this project would provide a sidewalk. Planning Commissioner Finerty had concerns regarding elevators to the two-story buildings, and he said those would be provided in the center building, connecting to the other two, two-story buildings. He stated the application was for a change of zone to the senior overlay and for an amendment to the General Plan to senior overlay; when the City granted that type of amendment, the project, when it provided between 10-100 units, must provide affordable housing units. He said in this instance, Code mandated 10% moderate income units and 10% low income units; the Applicant had the choice of meeting those affordable requirements either through the one-time payment of a $12,000 fee per unit for a total of 15 units (20% of 76 units), or it could be met through providing seven units for occupancy by moderate income and eight units for lower income households. Mr. Smith went on to say Code prescribed moderate income levels at 80-120% of median, and lower income as 60-80% of median, and he called attention to the rent ranges listed on page five of the staff report. Mayor Spiegel declared the public hearing omn and invited testimony FAVORING or OPPOSING the subject project. MR. SCOTT GAYNOR, representing the Applicant, Mr. Troll, said they currently wished to offer the 20% affordability factor. He said when initially considering this project, they were faced with choosing a tax credit affordable project or a market rate project with some affordability built in. He said given what they felt was somewhat on the reverse discriminatory side of a tax credit project and the wishes of the Palm Desert Country Club Association, which wanted to see a market rate project with several units set aside for affordability, it would allow the Applicant to provide a more upscale project that would be more indicative of what the site required, as it was right on the golf course and next to the clubhouse. The 20% affordability factor, they felt in time, would probably be adequate for their project to meet the community's needs, given some of the preexisting affordable units; therefore, they wanted to adhere to the 20% affordability factor. He noted that Marilynn Hamlet was in attendance and would also speak about the project. In response to Mayor Spiegel, Mr. Gaynor answered the project would adhere to the condition requiring 76 covered parking spaces. 32 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING DUNE 24,1999 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * Councilmember Benson asked whether the final development agreement would stipulate that the Applicant would provide affordable housing in lieu of paying the mitigation fee. Mr. Smith responded that the agreement provided up until the time building permits were pulled, the Applicant could indicate which way he would go. In further response, Mr. Smith said the development agreement language could be amended to require the affordable units. Mr. Gaynor concurred with that amendment. Councilman Kelly stated the City had to meet certain affordable housing requirements, and when it imposed the senior overlay for affordable housing, he understood the City was receiving affordable housing credit on those units. He expressed his concern over whether the City was, indeed, receiving credit for projects like the subject one, and if not, how it could do so. Mr. Ortega said the determining factor was the length of time imposed by the covenants imposed; if they were 30 years or more, credit could be received, pursuant to the City's stipulations, and credit of 60-80% would be received. He went on to say the 80-120% was not a concern. In response to Councilman Kelly's question regarding next year's requirement of 90%, Mr. Ortega said if the agreement's language conditioned that the units would be affordable for no less than 30 years, credit would be received. Councilman Kelly said he would want that condition imposed if he were to approve the project. `" MR. GAYNOR said he would agree to the 30-year requirement. Councilman Kelly asked staff to research previously approved projects to apply any overlooked credit to the City's requirements. Council concurred. MS. MARILYNN HAMLET, 42-600 Iowa Street, Palm Desert, president of the Palm Desert Country Club, noted with regard to the affordable housing element, much of it was already available in their area. Therefore, she said Association members felt that construction of housing for middle -income senior citizens was appropriate, commenting many would like to move into such apartments; however, they didn't want to see any more affordable housing units for low income residents. Mayor Pro-Tempore Crites pointed out that 80-120% of the average income in Riverside County wasn't exactly low income. Councilmembers agreed, and Mayor Spiegel cited the Desert Rose affordable housing project, which didn't look any different than any other Palm Desert housing development. MS. HAMLET agreed that the Desert Rose project was a great effort, acknowledging there were many properties within Palm Desert Country Club that were in poor shape. She affirmed Mayor Spiegel's comment that many residents were waiting in line to take up residence as soon as this project was built. 33 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 24,1999 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * Councilmembers assured Ms. Hamlet that numerous affordable housing units were interspersed throughout Palm Desert that looked no different than existing residences. Mayor Pro-Tempore Crites also noted that by the way such projects were developed, first options for moving into the affordable units were reserved for Palm Desert residents. Mr. Smith confirmed that a 30-year provision already existed in the development agreement. MR. GAYNOR commented on Ms. Hamlet's remarks about aesthetics and product type, stating that when tax credits were sold, considerable cash went into the project to make it a decent one; therefore, the typical low-income stereotype didn't exist. He said that with regard to the reverse discrimination statement he made earlier, he was referring to an example that if the income threshold for low-income was $19,000 per year, and a prospective tenant made $24,000 per year, that tenant could move into a market rate environment, they wouldn't be accepted into a low-income tax credit project. With no further testimony offered, Mayor Spiegel declared the public hearing closed. Councilmember Benson moved to: 1) Waive further reading and adopt Resolution No. 99-63, approving GPA 99-1; 2) waive further reading and pass Ordinance No. 919, to second reading, approving C/Z 99-1; 3) waive further reading and pass Ordinance No. 920 to second reading, approving the Development Agreement as amended to reflect the Applicant's agreement that affordable housing units will be provided as opposed to paying the mitigation fee; 4) waive further reading and adopt Resolution No 99-64, approving PP/CUP 99-6. Motion was seconded by Councilman Ferguson and carried by unanimous vote. XIV. ORAL COMMUNICATIONS MS. DIANE MATHIAS, 76-629 Florida Avenue, Palm Desert, wanted to publicly thank City staff involved in production of the Bright Side newsletter. She felt it was a phenomenal publication, and she especially appreciated the issue that included the special landscaping guide. 34 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 24,1999 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * XV. ADJOURNMENT Upon a motion by Mayor Pro-Tempore Crites, second by Councilman Ferguson, and unanimous vote of the City Council, Mayor Spiegel adjourned the meeting at 8:01 p.m. ATTEST: SHEILA R. 1 IGAN, Y CLERK CITY OF PALM DESE . CALIFORNIA ROBERT A. SPIEGEI4MA 35