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HomeMy WebLinkAbout2001-01-25MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING THURSDAY, JANUARY 25, 2001 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * I. CALL TO ORDER Mayor Ferguson convened the meeting at 4:03 p.m. II. ROLL CALL Present: Councilmember Jean M. Benson Councilman Buford A. Crites arrived at 4:07 p.m. Mayor Pro-Tempore Richard S. Kelly Councilman Robert A. Spiegel Chairman Jim Ferguson Also Present: Carlos L. Ortega, City Manager/RDA Executive Director David J. Erwin, City Attorney Sheila R. Gilligan, Asst. City Manager for Community Services/City Clerk Homer Croy, Director of Building & Safety Phil Drell, Director of Community Development Paul S. Gibson, Director of Finance/City Treasurer Joseph S. Gaugush, Director of Public Works/City Engineer Rachelle D. Klassen, Deputy City Clerk III. CONSENT CALENDAR A. MINUTES of the Regular City Council Meeting of January 11, 2001, and the Adjourned Joint City Council/Redevelopment Agency Meeting of January 15, 2001. Rec: Approve as presented. B. CLAIMS AND DEMANDS AGAINST THE CITY TREASURY - Warrant Nos. 62, 63, 64, 65, 63PD Office Complex, and 65PD Office Complex. Rec: Approve as presented. MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 25, 2001 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * C. CLAIM AGAINST THE CITY (#439) by Tracy Cosgrove in the Amount of $250. Rec: By Minute Motion, reject the claim and direct the City Clerk to so notify the Claimant. D. CITY'S PORTFOLIO MANAGEMENT SUMMARY for the Month Ending November 30, 2000. Rec: Receive and file. E. MINUTES of City Committee and Commission Meetings. 1. Art In Public Places Commission Meetings of September 13, October 18, and November 15, 2000. 2. Golf Course Committee Meeting of December 12, 2000. 3. Housing Commission Meeting of December 13, 2000. 4. Promotion Committee Meeting of December 19, 2000. 5. Sister Cities Subcommittee Meeting of December 4, 2000. Rec: Receive and file. F. CONSIDERATION ofTermination ofPalm Desert's Sister Cities Relationship with Osoyoos, Britisl Columbia, Canada. Removed for separate discussion under Section VII, Consent Items Held Over, of the Agenda. Please see that portion of the Minutes for Council discussion and action. G. REQUEST FOR APPROVAL ofProposal for Consulting Services for Photographic Documentation of the City's Art Collection (Contract No. C18450). Rec: By Minute Motion: 1) Approve ofthe proposal from Mark Stephenson/Sky Valley Pictures in an amount not to exceed $20,000 for consulting services for documentation of the City's art collection — funds for this project are available in Account No. 436-4650-454-3620; 2) authorize the Mayor to execute same. H. REOUEST FOR APPROVAL of Agreement for Kiosk Placement at the Visitor Information Center (Contract No. C18460). Rec: By Minute Motion, approve of the subject agreement with Touch Screen Marketing, Inc., Palm Springs, California, and authorize the Mayor to execute same. 2 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 25, 2001 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * REQUEST FOR APPROVAL of Coachella Valley Air Quality Enhancement Grant. Rec: By Minute Motion, approve the Service Agreement with the County ofRiverside (Contract No. C 18470) for reimbursement of $10,000 for the purchase of compressed natural gas (CNG) vehicles and authorize the Mayor to execute same. J. REOUEST FOR AUTHORIZATION to Advertise and Call for Bids for Intersection Improvements at Highway 111 and Highway 74/Monterey Avenue (Contract No. C 17530-A, Project No. 626-97). Removed for separate discussion under Section VII, Consent Items Held Over, of the Agenda. Please see that portion of the Minutes for Council discussion and action. K. REQUEST FOR APPROVAL of Contract for Underground Conduit for Phone Lines Relative to the San Pablo Avenue Undergrounding Project (Contract No. C18480). Rec: By Minute Motion: 1) Approve the subject contract with Intec, Palm Desert, California, in the amount of $5,558.50 for the installation of an underground telephone conduit at 44-160 San Pablo Avenue and 73-515 Catalina Way; 2) authorize the Director of Finance to appropriate $5,558.50 from Unallocated General Fund Reserves and include a ten percent (10%) contingency in the amount of $555.80 — total appropriation of $6,114.35. L. REQUEST FOR RATIFICATION of Change Orders and Acceptance of Work for the North Wing Tenant Improvements Project (Contract No. C16760). Rec: By Minute Motion: 1) Ratify the City Manager's approval of the following Change Orders as they apply to the subject project: a) A American Electric - $5,813.31; b) Doug Wall Construction - $4,800.00; c) Nickell/Kenaston Flooring - $1,685.40; d) McClellan Fixtures, Inc. - $2,168.52; e) Precision Works - $13,000; f) Sullivan's Shutter Factory - $1,200; 2) authorize transfer of said funds, totaling $28,667.23, from the project contingency to base; 3) accept the work as complete and authorize the City Clerk to file Notices of Completion for the following: a) Precision Works; b) Doug Wall Construction; c) Carl August Anderson Painting; d) Nickell/Kenaston Flooring; e) A American Electric. M. REOUEST FOR APPROVAL of Change Order No. 1 to Contract No. C17670 — Consolidated Landscape Maintenance Area No. 2. Rec: By Minute Motion, approve Change Order No. 2 to the subject contract with Shadow Palms Gardening Service, Indio, California, in the amount of $2,668 and authorize the Mayor to execute same. 3 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 25, 2001 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * N. REOUEST FOR APPROVAL of Addendum to Contract for Architectural Services for the Council — Chamber Remodel Project (Contract No. C17930). Rec: By Minute Motion: 1) Approve Contract Amendment No. 1 to the subject contract with Prest Vuksic Architects, Palm Desert, California, for additional architectural services provided for the subject project; 2) authorize the Director of Finance to appropriate $19,713.75 from Unallocated General Fund Reserves and transfer to base contract amount for the subject project; 3) approve reimbursable expenditures submitted from Prest Vuksic Architects in the amount of $2,320 for reproduction and engineering costs to be paid from the contingency funds for the subject contract. O. REOUEST FOR APPROVAL of Furniture Order for Council Chamber and Council Chamber Conference Room. Rec: By Minute Motion: 1) Authorize an expenditure in the amount of $37,142 for the subject furniture purchase and include a ten percent (10%) contingency in the amount of $3,714.20 for same — total of $40,856.20; 2) authorize the Director of Finance to appropriate $40,856.20 from Unallocated General Fund Reserves for the aforementioned. P. REOUEST FOR APPROVAL of Final Tract Map 29444 (The Ultimate Return, Applicant). Rec: Waive further reading and adopt Resolution No. 01-7, approving the Final Subdivision Map of Tract No. 29444 and approving the agreement relating thereto. REOUEST FOR APPROVAL of the Refund of Business License Fees for License Nos. 99-19446 and 98-19446 (Loma Linda University Health Care, Applicant). Rec: By Minute Motion, approve a refund of business license fees in the amount of $188.25 for License No. 99-19446 from FY 99/00 and $282.00 for License No. 98-19446 from FY 98/99 — refund totaling $470.25. Q. R. REOUEST FOR APPROVAL of the Refund of Business License Fees for License No. 00-02191 (Rango Golf Products, Applicant). Rec: By Minute Motion, approve a refund a business license fees in the amount of $50.00 for License No. 00-02191 from FY 99/00. Councilman Spiegel asked that Item J be removed for separate consideration under Section IV. Mayor Ferguson asked that Item F also be removed for separate discussion. Upon motion by Kelly, second by Spiegel, the remainder of the Consent Calendar was approved as presented by unanimous vote of the City Council. 4 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 25, 2001 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * IV. CONSENT ITEMS HELD OVER F. CONSIDERATION ofTermination ofPalm Desert's Sister Cities Relationship with Osoyoos, British Columbia, Canada. Mayor Ferguson said he had asked that this be removed so that he has an opportunity to contact the Mayor of Osoyoos and make one last effort to try and maintain this relationship. Councilman Crites stated that there had been staff contact, and this matter had been through two committees. He said it this recommendation was not without Councilman Spiegel moved to continue this matter indefinitely. Motion was seconded by Crites and carried by unanimous vote. J. REOUEST FOR AUTHORIZATION to Advertise and Call for Bids for Intersection Improvements at Highway 111 and Highway 74/Monterey Avenue (Contract No. C 17530-A. Project No. 626-97). Councilman Spiegel stated that although the City originally had a contract for this project, it had been delayed because the Council did not want the improvements done during the season when it could impact retail sales. He said he was under the impression that the City was going to go ahead and let the original contractor go ahead with the project. Mr. Erwin stated that was no longer the case. He said a claim had been filed, and if Council wished to discuss that matter, it should be done in Closed Session. Councilman Spiegel moved to, by Minute Motion, authorize the City Clerk to advertise and call for bids for the subject project — funds are available in Project Account No. 213-4387-433-4001. Motion was seconded by Kelly and carried by unanimous vote. Due to the large number of audience members in attendance for Continued Business Item D and Public Hearing Item B, and with City Council concurrence, Mayor Ferguson suspended the Agenda at this point in order to first consider Public Hearing Item B followed by Continued Business Item D. V. RESOLUTIONS None 5 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 25, 2001 VI. ORDINANCES For Introduction: None For Adoption: A. ORDNANCE NO. 976 - AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, AMENDING SECTION 2.16.010 OF THE CODE OF THE CITY OF PALM DESERT, CALIFORNIA (INVESTMENT AND FINANCE COMMITTEE). Councilman Spiegel moved to waive further reading and adopt Ordinance No. 976. Motion was seconded by Kelly and carried by unanimous vote. VII. NEW BUSINESS A. REQUEST FOR APPROVAL OF A DEDICATED CRIME ANALYST AND A DEDICATED OFFICE ASSISTANT POSITION. Mr. Ortega noted the staff report in the packets and offered to answer any questions. Mrs. Gilligan asked that the recommendation be amended to include the supplemental attachment distributed just prior to the Council meeting. Councilman Spiegel moved to, by Minute Motion, approve the request as recommended by the Palm Desert Public Safety Commission and Cove Communities Public Safety Commission and as amended to include the supplemental attachment distributed just prior to the Council meeting. Motion was seconded by Kelly and carried by unanimous vote. VIII. CONTINUED BUSINESS A. REOUEST FOR AUTHORIZATION TO NEGOTIATE DESERT WILLOW MANAGEMENT AGREEMENT (Continued from the meeting of December 14, 2000). Councilman Spiegel moved to, by Minute Motion, continue to the meeting ofMarch 22, 2001. Motion was seconded by Kelly and carried by unanimous vote. B. CONSIDERATION OF SPEED HUMPS ON RESIDENTIAL STREETS (Continued from the meeting of December 14, 2000). Councilman Spiegel moved to, by Minute Motion, continue to the meeting of February 8, 2001. Motion was seconded by Kelly and carried by unanimous vote. 6 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 25, 2001 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * C. CONSIDERATION OF NEXUS STUDIES SUPPORTING IMPOSITION OF CHILD CARE AND BUS SHELTER DEVELOPMENT IMPACT FEES (Continued from the meeting of January 11, 2001). Councilman Spiegel moved to, by Minute Motion, continue to the meeting ofFebruary 22, 2001. Motion was seconded by Kelly and carried by unanimous vote. Mr. Ortega stated that he had been in contact with the Building Industry Association (BIA). He said that while they were not necessarily opposing it, they indicated they would like to participate in the process. D. CONSIDERATION OF REQUEST FOR MUNICIPAL FUNDING OF THE ENDOWMENT, INC., FOR THE MC CALLUM THEATRE FOR THE PERFORMING ARTS (Continued from the meeting of January 11, 2001). Mr. Ortega reviewed the staff report, noting that staff was directed at the last meeting to come back with a report that would address three main questions: 1) Whether the Redevelopment Agency could legally make such contributions; 2) whether the Agency was in a financial position to make such a contribution and not impact currently Agency obligations or priorities; 3) to ensure that neither the City nor the Agency assumed or incurred other current or future obligations for the operation of the Theatre. He said there was also discussion on whether it could be funded out of increased transient occupancy tax. He said legal counsel looked at this matter and advised that while the Agency was not authorized to make a direct contribution of Agency funds to the Theatre, it was authorized to purchase a property interest in the Theatre; in addition, it was authorized to spend Agency funds to improve such property. The best method for the Agency to acquire such property interest was via the acquisition of an ownership interest in the property. The details of the transactions, including limitations on the use of the Theatre and covenants to be maintained and operated as a Theatre, would be included in an agreement to be presented to the Council at a later date following a public hearing. With regard to the second issue, he said that, given existing binding contractual obligations for the expenditure of Agency funds and recommended Agency funding priorities, the Agency was currently in a financial position to commit to funding the amount requested by the Theatre. He said the timing for the funding by the Agency would be included in an overall joint funding plan to be worked out with the Theatre, and this plan would be an attachment to the agreement. Mr. Ortega stated that since the recommended funding method, which is an ownership interest, would put the Agency in the title chain and there could be an obligation to continue to operate the Theatre, the agreement would contain some sort of"stop loss" or Agency obligation limitations so that in case the funding projections are not achieved, the Agency would be able to walk away without further obligation. 7 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 25, 2001 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * Mr. Ortega stated that his recommendation was that he be authorized to negotiate an agreement between the College of the Desert, Friends of the McCallum Theatre, and the Palm Desert Redevelopment Agency, setting forth the terms and conditions under which the Agency would provide $5 million to the McCallum Theatre. He noted that the agreement would come back to the Council at a public hearing. Mayor Ferguson stated that the perception was that the City was getting involved in the operation of the Theatre. Mr. Ortega disagreed and said the proposal would be that it would be leased back to the Friends of the McCallum Theatre, and that group would have the responsibility for operating and funding the Theatre in accordance with the funding plan attached to the agreement. Councilman Spiegel asked what further obligations could be placed upon the City based on its mutual ownership of the Theatre. Mr. Ortega responded that the Agency would have an interest in the property, and that is what would give it the legal authority to make the contribution. In addition and if needed, it could spend the money to improve the property. He said that everything would be in the proposed agreement which the Council would have the opportunity to review and revise. Mayor Ferguson noted that President Gerald Ford had attended the last meeting and was not able to attend this time; however, he had submitted a brief letter and asked that it be read into the record as follows: "I regret that I will be unable to attend the Palm Desert City Council meeting on Thursday, January 25, 2001, at 4:00 p.m. However, the death of my youngest brother on Tuesday requires me to travel to Michigan for the funeral. I had fully intended to be present to support the McCallum Theatre's request for funding from the City of Palm Desert, and my absence in no way diminishes my full-fledged support. I urge the Council to vote favorably for the Redevelopment Agency funding to help insure the future of the theatre." Mayor Ferguson stated that although this was not a public hearing, there were several members of the audience who wished to speak on this matter. MS. ROBIN ST. LOUIS, 76-952 Sheffield Court, Palm Desert, spoke as the designated representative from On -Stage Theatre Company and also as a mother of a family that had benefitted greatly from arts education in Palm Desert. She said whatever the City decides to do with regard to assisting the McCallum Theatre would also directly affect numerous community -based arts organizations which use the Theatre for their events. She said that On -Stage Theatre Company was _ a private, non-profit, 501(c)3 organization which conducts musical theatre workshops in the Valley for people of all ages. Full-scale productions are held twice a year, with the Coachella Valley 8 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 25, 2001 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * Symphony providing the music. For each show, a cast of approximately 150 vocalists, mostly children, get to experience the magic of live musical theatre. She added that over the last four years, On -Stage Theatre conservatively estimated that it had introduced over 30,000 youths to live musical theatre, either as cast or audience members. She said the McCallum Theatre was the centerpiece in this arts education. She said that because of its financial difficulties, the McCallum Theatre had been considering charging organizations such as hers more than they had in the past to use the facility, and this would present financial difficulty for those organizations. She said that a grant to the McCallum Theatre was really a grant to all of the community organizations. She suggested that if a grant is made, a representative from the City might sit down with the McCallum staff and representatives from the community arts organizations to look at ways everyone can help each other and get more "bang for the buck," such as publicizing each other's activities in the program books and perhaps the McCallum Theatre including in its official calendar of events the community arts programs appearing there. MR. MURRAY MAGLOFF, Chaparral Country Club, said he was in favor of keeping the McCallum Theatre afloat and felt it was an asset to the community; however, he said he would rather give the Theatre a "compassionate, long-term loan" than a grant. He said if the City provides a grant, the Theatre in turn will take those funds and invest them in order to generate additional money for its operations. He added that he was in favor of a committee of City and Theatre representatives working together to determine how, when, and where those investments should be made. MR. BOB RISHWAIN, Chairman of the Board of Trustees of the McCallum Theatre, said this process had gone on for more than a year, and all of the issues had been worked through. He said he was willing to sit down per Mr. Ortega's recommendation and negotiate an agreement favorable for both the Redevelopment Agency and the McCallum Theatre. He offered to answer any questions. MAJ. GEN. TIMOTHY MILES, Palm Desert, spoke as a Trustee of the McCallum Theatre and said he had been given the responsibility of raising the $5 million from the trustees. He said that he had raised in excess of $2 million in pledges to date from 10 of the 40 trustees, and he felt confident the goal of $5 million would be reached. He asked for the Council's favorable consideration of this request. MR. JOSEPH SOLOMON, 34 Calle Claire, Rancho Mirage, said they had done everything possible at the McCallum Theatre to raise money and to keep it operating. He said he was upset by the City's attitude regarding the granting of $5 million and felt the McCallum had been pushed into a corner. He said the McCallum Theatre does a lot for this community, and he did not understand why there was a problem with the City providing this grant. Councilman Spiegel stated that in the last five years, the City of Palm Desert had given $788,046 to the McCallum Theatre and had also loaned $500,000, for a total of $1,288,046. He said, he would imagine, percentage -wise, that the residents of Rancho Mirage use the Theatre more than those of Palm Desert, and he had not seen the City of Rancho Mirage step to the plate to offer assistance to the McCallum Theatre. 9 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 25, 2001 ********************************************************** Councilman Crites stated that the Council's first obligation is to the public and to the laws of the — State of California, and it cannot do something that is not allowed by State law. MR. LANCE ELDRED, Member of the McCallum Theatre Board of Trustees, believed that which the City Manager and City Council had suggested was very appropriate. He said the problem at the Theatre wasn't performances; those could be paid for by the tickets sold. If careful, he said they could even generate some money to pay for free seats that were distributed to schoolchildren and senior centers, of which they currently gave away tens of thousands. He stated what was really needed was the building, and that was what the City was addressing so the Theatre could do its work, and the community and some of the other groups could do theirs; that would be a wonderful way for Palm Desert to help the McCallum. MR. PAUL MAGLOFF, Palm Desert resident, said he moved to the City the first year the McCallum opened. He knew for a fact that the Palm Desert City Council had been very supportive of the Theatre and its educational programs. He believed that one of the McCallum's problems had stemmed from its elitist attitude and ticket prices that were somewhat out of reach; this forced the McCallum to continually seek money. Mayor Ferguson felt Mr. Solomon had raised a good issue; the McCallum was too small to stage large productions and too large to profitably stage small productions, and through the gifts and generosity of the public, the board, and large number of people for 15 years they'd made up about _ $1 -1.5 million short operating income every single year. Notwithstanding that fact, he said the Theatre had amassed debt and was on the verge of financial instability. He expressed appreciation to the current Board and to Bob Rishwain for recognizing that they cannot take a band -aid approach year after year. He said Palm Desert does need a theater for all of the reasons stated by Ms. St. Louis. The Board of the McCallum has put together a $25 million collaborative program, with $5 million being asked of Palm Desert, $5 million from Ambassador Annenberg and the Berger Foundation collectively, $5 million from the Board, $5 million from the Cities of Rancho Mirage and Indian Wells collectively, and $5 million to be raised by the community. He said culture and the arts are important to the Coachella Valley. In response to Mr. Solomon's comments, he said the Palm Desert City Council was having this hearing to consider a grant to the McCallum Theatre when no other city had done so. He added that it was his hope that with the City Manager's recommendation, after the requisite hearings, and with the raising of the $25 million, culture and the arts will be guaranteed in Palm Desert for our lifetime and our children's lifetime. Councilmember Benson noted that the McCallum Theatre did not come to the City and ask for help when it first started its operations. She said the City had funded many other organizations in Palm Desert, and she felt the McCallum would probably not be in the shape it is in today if it had started out differently. She said she felt this was Palm Desert's chance to show what an asset the Theatre has become to the community over the years. Councilman Crites stated that Ms. St. Louis's comments reflected an issue he felt the City Manager should be asked to look at. He said there were a variety of things the McCallum Theatre either consistently does or does on occasion or ought to do in terms of its relationships with community 10 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 25, 2001 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * theater groups and school districts and its ability to bring students to have the opportunity to be part of cultural events. He said he felt the City should look at what kinds of things might be memorialized in such an agreement to ensure that those issues are locked into the purpose and charter of the McCallum Theatre in perpetuity. Councilman Crites moved to, by Minute Motion, authorize the City Manager to negotiate an agreement between the College of the Desert, Friends of the McCallum Theatre, and the Palm Desert Redevelopment Agency, setting forth the terms and conditions under which the Agency would provide $5 million to the McCallum Theatre. Motion was seconded by Benson and carried by unanimous vote. With City Council concurrence, Mayor Ferguson recessed the meeting at 6:30 p.m. He reconvened the meeting at 6:35 p.m. E. RESOLUTION NO. 01-4 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, DENYING AN APPEAL AND AFFIRMING A PLANNING COMMISSIONDECISION TO DENY ANEGATIVE DECLARATION OF ENVIRONMENTAL IMPACT; A GENERAL PLAN AMENDMENT FROM LOW DENSITY RESIDENTIAL/INDUSTRIAL TO LOW DENSITY RESIDENTIAL/PARK; A CHANGE OF ZONE FROM R-1 12,000 TO PR-4/OPEN SPACE; A TENTATIVE TRACT MAP FOR 270 SINGLE FAMILY LOTS AND ONE LOT FOR PARK PURPOSES; A NINE -LOT TENTATIVE TRACT MAP FOR FINANCING PURPOSES; AND A DEVELOPMENT AGREEMENT ON 117.5± ACRES AT THE NORTHEAST CORNER OF TAMARISK ROW DRIVE AND COUNTRY CLUB DRIVE Case Nos. GPA 00-7. C/Z 00-5, TT 29468. TT 29555. and DA 00-1 (ABD Palm Desert 118, LLC, Appellant) (Continued from the meeting of January 11, 2001). Mr. Drell asked that the Council continue this matter to the meeting of February 22, 2001. He said the applicant was preparing an amended presentation; if Council wished to consider that presentation, it would need to direct staff to re -notice the public hearing. Upon question by Mayor Ferguson, Mr. Drell stated that staffhad a conceptual plan and a description of the project. He said it was minimum 10,000 square foot lots, and the number of units was decreased by approximately 20 lots. Councilman Spiegel asked if the developer had started working with the people across the street, and Mr. Drell responded that the developer had continued to talk with them. Councilman Spiegel asked if the matter should be returned to the Planning Commission since it is a completely different plan than what the Commission had previously seen. Mr. Drell disagreed and stated that it was not a completely different plan. He said it was substantially similar to the previous plan, although it was of lesser intensity than what was recommended for approval by the Planning Commission. 11 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 25, 2001 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * Mayor Pro-Tem Kelly moved to, by Minute Motion, direct staff to schedule and provide notification of -- Public Hearing on the matter for the meeting of February 22, 2001. Motion was seconded by Spiegel and carried by unanimous vote. IX. OLD BUSINESS A. REQUEST FOR APPROVAL OF AGREEMENT FOR SURVEY AND CONSTRUCTION SERVICES FOR THE PROJECT AT THE INTERSECTION OF HIGHWAY 111 AND HIGHWAY 74/MONTEREY AVENUE (CONTRACT NO. C12360-A, PROJECT NO. 626-97). Mr. Ortega briefly reviewed the staff report, noting that this was the engineering contract for this project. Councilman Spiegel asked why additional engineering was required when it had already been done. Mr. Gaugush stated that at the time the project was initially put on hold, there was still some outstanding funding in the contract and purchase order. As a result of the project being put on hold, that purchase order was closed out. He said staffwas requesting that the purchase order be opened backup for approximately half of those remaining funds; in addition, staffwas requesting additional funds as listed in the staff report relative to construction support services not previously included, a contingency on survey items to ensure a smooth construction sequence, and some additional utility issues. Councilman Spiegel moved to, by Minute Motion, approve the subject contract with RBF Consulting, Palm Desert, California, in the amount of $47,400 — funds are available in Project Account No. 213-4387-433-4001. Motion was seconded by Kelly and carried by unanimous vote. B. REQUEST FOR AWARD OF CONTRACT FOR THE CIVIC CENTER RE -ROOFING PROJECT (CONTRACT NO. C17440, PROJECT NO. 712-00). Councilman Spiegel moved to, by Minute Motion: 1) Award the subject contract to Petronella Roofing, Cathedral City, California, in the amount of $65,032 and authorize a 20% contingency in the amount of $13,006 — funds are available in Account No. 400-4161-415-4001; 2) authorize the Mayor to execute same. Motion was seconded by Kelly and carried by unanimous vote. C. REOUEST FOR APPROVAL OF DESIGN/CONSTRUCTION OF CITY BUS SHELTER IMPROVEMENT PROGRAM. Mrs. Gilligan stated that this matter was corning to the City Council as a result of a previous project, and staffwas to come back with a design for a City-wide project, starting with one. She said the project was put out to bid, and no bids were received. Mr. Urrutia graciously worked with staff to come up with a design, which was before the Council at this time. She added that the first shelter would be located at San Pablo and Highway 111. She noted that the project was taken to 12 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 25, 2001 ********************************************************** Architectural Review Commission and to the AIPP Commission, where it received unanimous approval from both boards. MR. FRANK URRUTIA said the first site to be done would be at the southeast corner of Highway 111 and San Pablo at Jensen's Plaza adjacent to the Flower Company. He reviewed the design of the shelter, noting it would be constructed of concrete and steel and would have solar panels integrated into the design to run the lighting. The lighting would be recessed up inside the canopy, and the top part ofthe canopy was intended to be a copper sheet covering which would have a patina green color to it. Councilman Crites stated he understood the need to have a "common design"; however, these shelters were being placed in different locations in the City which have different sun orientations, and he asked how we are going to ensure that we really do the maximum job of limiting the western exposure, which is an issue for much of the year for someone waiting for the bus. Councilman Kelly said he did not think this should be a "common design" and that there were already two others being designed that would be completely different. He added that he personally liked having different designs at different places. Councilman Crites asked if Mr. Urrutia was comfortable having this current design constructed at this first location in terms of its summer sun orientation and shade. Mr. Urrutia responded that he was comfortable with it. He said he was specifically asked to look at two sites (Jensen's Plaza and Baker's Square, which both have the same orientation), with the consideration that these might be used at other sites. Councilman Kelly moved to, by Minute Motion: 1) Approve the City Bus Shelter Design as presented; 2) authorize funding of the design and construction of said shelters from the FY 2000/01 Budget in an amount not to exceed $50,000; 3) approve Contract No. C18100 with Urrutia Architects, Palm Desert, California, and Contract No. C18100-A with Van Vliet Construction, Palm Desert, California, for Design/Build Services, respectively, for the aforementioned program; 4) authorize the Mayor to execute said contracts for same. Motion was seconded by Benson and carried by a 4-0 vote, with Mayor Ferguson ABSENT. Prior to consideration of Item D, at the request of the City Attorney and with City Council concurrence, Mayor Ferguson recessed the meeting for Closed Session at 7:15 p.m. He reconvened the meeting at 7:21 p.m. 13 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 25, 2001 D. CONSIDERATION OF REQUEST BY MR. ROBERT B. COMPTON RELATIVE TO THE — CITY' S PARTICIPATION IN THE "GOING LOW' PROGRAM. MR. ROBERT COMPTON said he wanted to do everything possible to help investors in the "Going Low" program recover their funds. He expressed concern that after trying to get some resolution to the situation, he had been advised that the City Council, during Closed Session at its meeting of November 9, 2000, had denied his claim, which he found irregular and a violation of the Brown Act. He said Mayor Ferguson subsequently agreed to meet with him and Mr. Ortega to discuss this matter, during which meeting Mayor Ferguson asked if he felt the City had a financial responsibility. He said while that was a valid consideration, he felt the City had a moral and ethical responsibility to these investors. It was his contention that the City signed a contract and should have investigated John Patterson, who later absconded with the investors' money. He said these investors were all people in their 70s or older who invested in this project because they believed the City's support of the program meant it was credible. He said he felt the City benefitted for two years from the publicity of the program, evidenced by the clubhouse and a second golf course at Desert Willow, the Frank Sinatra Celebrity Tournament, etc., and without the investors' money, the program would not have existed. He said he would love to see these people compensated for their loss. Mayor Ferguson stated he and the City Council had promised Mr. Compton that it would consider his claim, evaluate it, and respond to him at this meeting. Mr. Compton noted a memorandum from the City Manager included in the Council packets recommending that the Council deny the claim. He said he hoped the Council had the courage and conviction to overcome the recommendation of the City Manager if it feels this is a justifiable cause. Mayor Ferguson stated his concern was Mr. Compton's indication that he felt he had not procedurally been dealt with fairly by the City, and he wanted to make sure this matter was agendized and that everyone had an opportunity to hear fully what Mr. Compton had to say. Mayor Ferguson asked the City Attorney to repeat his advice to the Council, so long as there was no encroachment on the attorney/client privilege. Mr. Erwin stated that the Council was entitled to waive any privilege if it so desires, and Council so waived this privilege. Mr. Erwin stated that the Council met in Closed Session pursuant to Government Code Section 54956.9(b) as listed on the Agenda, and one of those items listed was this particular matter. He said he had asked for the opportunity to discuss this matter with the City Council in Closed Session prior to any action being taken. This was done, and it was his recommendation that the Council deny the claim again. He said he believed there was no legal justification for awarding the funds. He added that he considered it very close if not a gift of public funds because there was no legal basis to cause the funds to be transferred to Mr. Compton and/or any of the other investors in the project. He said he felt the City got into this project as a form of advertising for Desert Willow, and the City's consideration was those things set forth in the contract with Indigo Productions. He said the City did not ask for other investors to join in the process and was not aware of the situation until everything had gone totally upside down. He said he had met' with Mr. Blaisdell, who was representing the investors, who asked that the Council authorize the 14 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 25, 2001 transfer of the Indigo Production rights to the investors, and the City agreed to do so and put together the written documentation to do that; however, it never got signed, and he did not know why that was the case. He said he felt the City had bent over backwards to assist the investors to the extent it can, and he felt there was no legal basis to transfer any funds to Mr. Compton or any of the other investors. Mr. Compton said he was not questioning the legal basis but on moral and ethical grounds. Councilman Crites stated that the City Attorney had indicated that from his perception, there was no legal obligation. The second part of what he said was that there was no legal method by which the City could do this should it choose to do so. Setting that aside, he said that in looking at the documentation over the last few months, he found that people chose to make investments, and most of them probably chose to make those investments because they thought they would receive their investments back with a substantial profit. He said he found nothing in any of literature that came from the City that would entice people to invest, that would tell people the City felt it was a good investment, that would tell people this is the way the City feels they should use their funds that would tell people the City felt this person was good, etc. He said the City signs contracts with a lot of people, and all those contracts do is say the contract is signed for such and such a person to do a certain job. He said he did not feel that signing a contract for street improvements, for example, was an endorsement of that street company by the City. `- Councilman Spiegel stated that he did not accept the implication that Desert Willow is successful because of Braddo and the "Going Low" program. He said the reason the Frank Sinatra Golf Tournament came to Desert Willow had nothing to do with that program and that individual. He noted that he had purchased stock through a stock broker and had lost money on those stocks, and although his stock broker had recommended that investment that did not work out, he took no responsibility for the loss. Mayor Ferguson stated he felt there was no legal merit to the claim. As far as moral grounds, he said he felt the City's involvement was similar to Palm Springs Life magazine, the newspapers, Golf Digest, etc. which ran articles about this program, thought it was an interesting idea, and were curious to see how it would turn out. He said the contract signed by the investors had a hefty disclaimer on the first page stating they were guaranteed no return whatsoever. Contrary to the implication that the investors were doing this out of a sense of community and civic pride, he said he suspected they were doing it to make money. Although there was nothing wrong with this, things do not always work out that way, and when it does not, individuals do not go back to the City or the stock brokers and give them a moral equivalent of a guilt trip because they had not guaranteed the loss. Councilman Crites moved to, by Minute Motion, deny the claim. Motion was seconded by Kelly and carried by unanimous vote. 15 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 25, 2001 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * X. REPORTS AND REMARKS A. INFORMATIONAL ITEMS: 1. Progress Report on Retail Center Vacancies Ms. Ruth Ann Moore noted that Bella Luna was going to open where Cafe Valentino was located. She said it was the same operation, but due to some legalities and splitting of partnerships, it would be opening under the new name. 2. Report on Ground Subsidence in Palm Desert With Council concurrence, this matter would be removed from the Agenda until such time as there is a change in the status. 3. Report on Parking Structure at The Gardens on El Paseo Mr. Ortega noted the report and recommendation in the packets. Mr. Drell stated that the Landscape Committee had reviewed this matter and concluded that the project did not warrant additional expenditure on trellises and that the applicant_ would instead spend $75,000 on some mutually agreed upon amenity. Councilmember Benson moved to, by Minute Motion, withdraw the original requirement for additional parking structure trellises and direct staff to work with Madison Marquette on alternative customer amenities as recommended by the Landscape Committee. Motion was seconded by Spiegel and carried by unanimous vote. B. CITY MANAGER Mr. Ortega stated he would like to add the following item to the Agenda: RESOLUTION NO. 01-11 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, AMENDING PORTIONS OF RESOLUTION NO. 00-73, SALARY SCHEDULE, RANGES, AND ALLOCATED CLASSIFICATIONS, AND TO CREATE A NEW PUBLIC ART TECHNICIAN (ONE-YEAR) POSITION WITH BENEFITS. Councilman Crites moved to add this item to the Agenda. Motion was seconded by Kelly and carried by unanimous vote. Councilman Crites moved to waive further reading and adopt Resolution No. 01-11. Motion was seconded by Spiegel and carried by unanimous vote. 16 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 25, 2001 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * C. CITY ATTORNEY Mr. Erwin asked that the Council add the following item to Closed Session: Conference with Legal Counsel regarding existing litigation pursuant to Government Code Section 54956.9(a): a) Eddie Ahmad Babai v. City of Palm Desert, Riverside County Superior Court Case No. INC 013297 Councilman Spiegel moved to add this matter to the Closed Session Agenda. Motion was seconded by Crites and carried by unanimous vote. 1) Request for Closed Session: Conference with Real Property Negotiator pursuant to Government Code Section 54956.8: 1) Property: Property located east of Cook Street, north of Dinah Shore Drive Negotiating Parties: Agency: Carlos L. Ortega/City of Palm Desert Property Owner: Basic Capital Management Under Negotiation: x Price x Terms of Payment Conference with Legal Counsel regarding 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 Mrs. Klassen noted that the Minutes of the December 14, and December 29, 2000, meetings would be continued to the meeting of February 8, 2001. 17 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 25, 2001 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * E. MAYOR AND MEMBERS OF THE CITY COUNCIL o City Council Requests for Action: 1. Putting Green in Civic Center Park - Mayor Pro-Tempore Richard S. Kelly. Mayor Pro-Tem Kelly stated that the Council had a proposal to put a putting green in the Civic Center Park. He noted that earlier that day, he and Mr. Winklepleck had gone and looked at two products. He recommended the hiring of a golf course architect to design a putting green, have the Landscape Committee do some landscaping around it, and let the project out to bid. He said the matter would be taken to the Parks and Recreation Commission and go through the regular process. Councilman Crites stated that at this point in time, he would prefer that this matter be referred to the Parks and Recreation Commission without a recommendation from the Council. He said he was not ready to recommend that this be done in the Civic Center Park until some of the other issues are heard. Councilmember Benson stated her concern was that it not be in the Civic Center Park. Councilman Crites stated that would be included in issues for the Parks and Recreation Commission to consider. Mayor Ferguson clarified that the purpose of"Council Requests for Action" was for individual Councilmembers to bring ideas to the rest of the Council that he or she felt would be good to consider. He said he was in favor of having staff look at this project; however, he was totally against introducing golf balls in the Civic Center Park. Councilmember Benson agreed. With City Council concurrence, staff was directed to refer the matter to the Parks & Recreation Commission, including Mayor Pro-Tempore Kelly's recommendation to retain the services of an architect and incorporate the expertise of the Landscape Committee for locating such an amenity in the Civic Center Park. 2. Electricity Outages/Equipment Failures - Recent Situation in Palm Springs - Councilman Robert A. Spiegel. Councilman Spiegel stated that with regard to the recent situation in Palm Springs where the transformer went down, the Mayor of Palm Springs went on the record and said it was not the City's responsibility. He said he disagreed with that and felt one of the responsibilities of the City Council was the safety of its residents. The City provides police and fire services, and if the electricity goes out and Southern 18 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 25, 2001 ********************************************************** California Edison will not do anything about it, he felt the City should do something. He asked that staff agendize as an informational item for the next Council meeting the idea that if the transformer goes out after the workers have gone home, the City would be in a position and would pay overtime for staffto come in and repair it. He said he felt this was particularly important on the weekends. Mrs. Gilligan noted that Southern California Edison was re -instituting overtime for situations such as this. She said if residents' lights go out, they would have to wait until the next morning; however, if the problem was a transformer or something that was affecting a large area, they would re -institute the overtime policy. With Council concurrence, staff was directed to agendize an informational item for the February 8, 2001, meeting regarding Southern California Edison and their remedy for such future situations and impacts to Palm Desert residents. o City Council Committee Reports: 1. Councilman Spiegel reported from the Parks & Recreation Commission that for this year's Little League Season Opening, five women currently residing in the Coachella Valley and who participated in baseball during WWII, featured in the movie, "A League of Their Own," will be honored for their contribution to the sport with a plaque that will adorn one of the columns at Legends Field. The upcoming Palm Desert Senior Games would be kicked off with a hoedown to be held at the Community Center on the evening before, and the Mayor had been requested to attend. Further reporting, Councilman Spiegel said the proposed teen center has found a temporary, one-year location in Westfield Shoppingtown, that ofthe former child care facility there. He went on to say the Commission was working to establish a hand ball court in the park and was working on the plans for land acquisition with the Homme Park. He noted that at the site there was currently chain link fencing along the wash, and he asked staffto investigate what could be done with it. With City Council concurrence, staff was directed to agendize Reports and Remarks following Public Hearings on future agendas. XI. COMPLETION OF HELD OVER ITEMS Please see discussion and action for Old Business Item D. 19 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 25, 2001 XH. AWARDS, PRESENTATIONS, AND APPOINTMENTS None XIII. PUBLIC HEARINGS A. CONSIDERATION OF AN APPEAL TO A PLANNING COMMISSION DECISION, APPROVING AN AMENDMENT TO AN EXISTING CONDITIONAL USE PERMIT TO ALLOW AMPLIFIED MUSIC IN THE OUTDOOR DINING PATIO AREA OF THE AUGUSTA RESTAURANT LOCATED AT 73-995 EL PASEO Case No. CUP 96-15 Amendment #2 (Denise Roberge, Appellant). Associate Planner Martin Alvarez reviewed the staff report, noting that the Planning Commission, at its meeting of December 5, 2000, unanimously approved an amendment to a Conditional Use Permit to allow outdoor music on the south side of Augusta Restaurant, with the following stipulations: 1) Approval was for a three-month trial period; 2) the music would be limited to Friday and Saturday nights only and until 10:30 p.m. only; 3) the music shall comply with the City's noise sound level limits of 55 decibels before 10:30 p.m. He said the three-month period would expire on March 5, 2001, at which time the Planning Commission will hold another public hearing to determine its compatibility and conformance with the conditions placed. He said the applicant had appealed that decision. Staff's recommendation was to refer this matter back to Planning Commission after the_ expiration of the three-month trial period for further evaluation. Mayor Pro-Tem Kelly declared the public hearing open and invited testimony in FAVOR of or OPPOSED to this request. MR. LARRY GROTBECK, 74-085 Fairway Drive, Palm Desert, said a lot of high -profile, corporate parties and events are held at Augusta Restaurant. The gallery, restaurant, and patios are rented for private parties and, at times, many of the groups request live, outdoor entertainment. He said they desired to build their restaurant as a venue for dancing and music on El Paseo at night, and the building was designed for a dining and dancing experience on the rear patio overlooking the lawn and the mountains. He said they had previously been denied a seven day per week live music option. He assured the Council that the music would be popular dance music, jazz, trio, harpists, guitarists, disc jockey, or keyboard, and would target an audience of 35+ years. He said the Friday and Saturday nights only would not work for them because they wanted events that build the dining/dancing business beyond Friday and Saturday nights, which were typically the easiest nights to fill the restaurant, and they wanted to be able to book groups which call and request parties on other nights. He said they also did not want to stop the dancing at 10:30 p.m.; they had diners booking reservations as late as 9:00 or 9:30 p.m., and they would want to dance as late as 11:30 p.m. He added that while the two day per week was supposed to be for a trial period, he felt the restaurant had already shown its ability to run a good show by its past events in the past. In addition, he felt they had been a responsible corporate citizen of Palm Desert and a positive influence on El Paseo. He said they, would comply with all of the commercial property noise ordinances and, by the nature of their entertainment and clientele, they would be a very upscale, smoothly run operation. He noted that the 20 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 25, 2001 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * music would not be loud because they would not want it to interfere with their main dining room. He said he felt the Minutes of the Planning Commission meeting of December 5, 2000, did not reflect any significant opposition to live music on the outdoor patio as proposed in the staff report. Besides benefits to the restaurant, he felt there would also be benefits to the merchants on the east end of El Paseo, attracting more people to those businesses in the evenings. He said he felt the conditions imposed on them were overly stringent due to the specifics of their situation: the location of the dance floor, the size of the back lawns, and the remoteness of one residential structure to the music. Upon question by Mayor Pro-Tem Kelly, Mr. Grotbeck responded that they were applying for the flexibility to have live music seven days per week until 11:30 p.m., although there were weeks during the summer months when there would be no live music. He said there were other weeks when there would be five or six nights of live music. He added that this did not mean there would be seven nights of live entertainment year-round at that location. Councilman Spiegel asked if Mr. Grotbeck was willing to go along with the decibel level recommended by the Planning Commission, and Mr. Grotbeck agreed. Councilman Crites asked if Mr. Grotbeck was applying for the permanent ability to have live music on the patio, rather than the three-month trial period, and Mr. Grotbeck responded that he would like to have approval for a minimum of six months, although permanent approval would be better. Mr. Drell added that the original request of the applicant was for a six-month trial period. Councilmember Benson stated that live music had been a problem along El Paseo for quite some time, and the Council had dealt with several restaurants in the past with the music filtering over to the Sandpiper development. She asked Mr. Grotbeck if there would still be live music if there was no special event going on. MR. GROTBECK responded that there would be two circumstances where there would be live music; one would be special events. He said they would also locally promote dining and dancing on the back patio with live music; for example, they could have a live jazz trio on Friday and Saturday night for the locals. As far as the rest of the week, he said they would like to have the flexibility to allow diners to also dance on the patio. He added that if they did not have live entertainment booked, there would be no music on the patio. Councilmember Benson said she understood the need to have the live music for the big groups because they are paying for it and bringing money into the community, but she also expressed concern with having music there seven days per week just for the sake of having music. Councilman Spiegel stated that Mr. Grotbeck had mentioned a disc jockey, and he asked what would preclude the restaurant from playing disc jockey -type music on the patio when special events are not going on. 21 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 25, 2001 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * MR. GROTBECK responded that the caliber of the clientele controls the quality of the music. He — said they have an upscale, affluent, professional, 35+ group that comes out of places like Merrill Lynch, Dean Witter, etc., and the music would be tailored to that type of customer. With no further testimony offered, Mayor Pro-Tem Kelly declared the public hearing closed. Councilmember Benson said she would like to see something worked out to accommodate special groups, although not for seven days per week. She said she would also agree to a three-month trial period, with further review after that time. Councilman Spiegel noted the petition included in the staff report, signed by 24 people, giving the administrative assistant to Mr. Richard Oliphant, Patricia Webb, authority to speak on their behalf at the Planning Commission meeting of December 5, 2000. She asked what Ms. Webb had said at that meeting. Mr. Drell responded that she had objected to the music from past special events approved at that location on a temporary use basis. He said on the basis of her experience with those special events, she felt if this was a more routine occurrence, it would cause problems for the residents of her apartment project, the senior rental project behind the old library building. Mayor Ferguson stated that this applicant is well-known to the City of Palm Desert, and he felt there would be nothing to prevent the City Council from preventing the use if it became a problem. He said he did not see a problem allowing the live music for a trial period. Councilman Crites said he felt the Planning Commission was very clear about wanting to have a trial period with a subsequent review. He suggested extending the Planning Commission time period from March 5 to April, assuming there are not any problems, and extend it to a three night per week approval, allowing the applicant to choose which three nights. If it works, a further extension could be granted. With regard to the hours, he suggested splitting the difference and allowing the live music until 11:00 p.m. between now and the April time period end. He added that this was a Planning Commission issue and that he felt that body should be the reviewing body after the trial period. Mayor Ferguson said the applicant had appealed the Planning Commission decision, and he felt the applicant was entitled to the Council's independent opinion. He also felt this was one of the better establishments on El Paseo and that any problems should be dealt with as they occur rather than basing a decision on conjecture that there might be problems. Councilman Spiegel agreed, with the stipulation that the matter come back to the Council for review following the trial period rather than the Planning Commission. He said he would also agree to grant the applicant's request for an 11:30 p.m. time limit and seven nights per week. 22 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 25, 2001 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * Mayor Ferguson moved to, by Minute Motion, grant the appeal and approve staffs original recommendation for the subject case, providing for live music seven nights per week until 11:30 p.m., through April 30, 2001, at which time the matter would be reviewed. Motion was seconded by Spiegel and carried by unanimous vote. B. REOUEST FOR APPROVAL OF A MITIGATED NEGATIVE DECLARATION OF ENVIRONMENTAL IMPACT, GENERAL PLAN AMENDMENT, AND CHANGE OF ZONE FROM LOW DENSITY RESIDENTIAL (R-1) TO DISTRICT COMMERCIAL (PC-2) FOR APPROXIMATELY 12 ACRES; AND A PRECISE PLAN OF DESIGN FOR A MIXED -USE COMMERCIAL COMPLEX, INCLUDING A 2,000 SQUARE FOOT GAS STATION/CONVENIENCE STORE, 8,200 SQUARE FOOT RESTAURANT, 24,000 SQUARE FOOT OFFICE/RETAIL, AND A 40-LANE BOWLING CENTER ON 7.87 ACRES AT THE SOUTHWEST CORNER OF COOK STREET AND SHERYL AVENUE, MORE PARTICULARLY DESCRIBED AS APN 624-241-008 THROUGH 019; 624-160-002, 004, AND A PORTION OF 624-160-001 Case Nos. GPA 00-06, C/Z 00-09, and PP 00-21 (Richard Hughes, Applicant). Mr. Drell reviewed the staff report in detail, noting that an informational presentation was made to the Planning Commission by the developer, with residents expressing both agreement and opposition to the project. The Planning Commission felt the project had some positive potential if all of the various neighborhood concerns could be addressed. He noted the land for the proposed project was currently being used as a driving range associated with a par three golf course; under the proposal, the golf course would be preserved, and the driving range portion west of the existing parking lot would be converted to this project. There were concerns raised that this was a commercial project in a residential zone, and the application was to change the current designation and zoning from R-1 (single family) to District Commercial. The project as designed met all the standards of the District Commercial zoning. He said ifthe plan is approved in general, the developer would proceed at a later time with a change of zone and precise plan. He said the development would be to place a one-story office building adjacent to the single-family home, and it was felt this would buffer the noise from the parking lot. Another concern was traffic and how the traffic generated by this project would impact the adjacent neighborhood. A detailed traffic study was completed and concluded that with proposed mitigation, on- and off -site circulation results in acceptable levels of service. Proposed mitigation included moving the traffic signal from Merle to Sheryl and putting a left-hand diverter on Sheryl to prevent people exiting the project from turning left and going into the neighborhood. Mr. Drell noted that the Planning Commission had recommended approval of this project, subject to conditions relative to operation of the various uses that could occur at night. He said the restaurant would be limited to an 11:00 p.m. closing time; the bowling center would be limited to 10:00 p.m. Sunday through Thursday and 11:00 p.m. on Friday and Saturday. Councilman Spiegel asked if staffhad taken into consideration the tentative plans of the Desert Sands Unified School District for the High School to bring traffic out onto Cook Street. 23 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 25, 2001 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * Engineering Manager Mark Greenwood stated that the traffic study was prepared by the developer's engineer and did not address that; however, staff had considered those plans as an issue and felt that plan could also be accommodated on Cook Street without any problem. Councilman Crites said it was his assumption that the change of zone would result in a significantly larger number of vehicles entering and exiting that area than residential, and Mr. Greenwood agreed. Councilman Crites said he also assumed the City was not lacking in available commercial or office professional zoning, and Mr. Drell responded that it was his understanding that vacancy rates in the City of Palm Desert were currently very low. Upon further question by Councilman Crites, Mr. Drell stated that the bulk of the City's vacant property designated for future office professional was further to the north. Upon question by Councilmember Benson, Mr. Drell stated that the north corner of Sheryl and Cook Street was not included in this project. Mayor Ferguson declared the public hearing open and invited testimony from the applicant first and then members of the audience opposed to or in favor of this project. MR. RICK HUGHES, 74-550 Alessandro, Palm Desert, reviewed the history of the project from its initial inception. He said information they had gathered by interviewing the neighbors in the R-1 neighborhood, the neighbors in the condominium project, apartment owners, service industrial people in the area, and Marriott and Belmonte (north of the property) indicated there were some services in dire need in that area. He noted they proposed to place buildings adjacent to the homes, and this would impact them no more than it would have been if there had been homes built on this property. He said all of the buildings on Sheryl would be one-story, and the only two-story would be in the interior of the site. He said the biggest issues with the neighbors were crime, traffic, uses and hours at night, and aesthetics. The had created the design with 32-foot setbacks with Desert Willow -type landscaping from the curb to a six-foot wall, and the buildings on the other side of that wall would have no more roof line than a residential unit would have. This would also provide a buffer for noise and light. With regard to crime, there would be lighting that would be no more glaring than a full moon throughout the property, both on the street and inside the project, and he felt this would discourage anyone from behaving mischievously. He said there was currently no security because this is a residential neighborhood being serviced by the Sheriffs Department. They proposed to request more servicing and trips by the site from the Sheriffs Department; in addition, they would have on -site security. With regard to uses on the site, he felt these were services needed in this area. He said the design was approved by the Architectural Review Commission, and the impact on the neighborhood was mitigated by the setbacks, the wall, and the design of the structures. He noted that the bowling alley would be 300 feet from the nearest residential unit. He said with all of these mitigation measures, the only remaining concern was traffic, and they proposed to move the traffic signal from Merle down to Sheryl. He said this would serve the neighborhood, control the traffic, and direct everything off of the site and onto Cook Street. He added that the no left turn out of the project and down Sheryl was acceptable to them. He said they had tremendous support for the project from the business community and condominium owners across the street as well as support from the rental income owners and the businesses across Cook Street on Sheryl. He added that they 24 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 25, 2001 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * had approximately 30 property owners who had circulated their own petition in support of the project. Mayor Ferguson asked why the developer was asking the Council to change its General Plan and zoning from its current residential designation. MR. HUGHES said he felt the function of that property as R-1 was obsolete and could never be developed as R-1. He said the configuration of the drift of soils condition and the imposition by CVWD of lining 2,000 feet of wash at $250 per linear foot prevented anyone from taking that dirt and creating a finished lot that would finish a house in a market place that would be sellable. MR. BLUE, 73-429 Foxtail, Palm Desert, gave a brief history of bowling centers, noting the new centers were looking at families and recreational use versus the old-time leagues. He said they were community centers and indoor destinations with meeting rooms. There were also many activities for different segments of the community, including women, high schools, handicapped individuals, seniors, elementary schools, and college students. He noted that business and civic meetings could be held at these centers as well as birthday parties and inter -community leagues. In addition, they offered summer activities, which they felt were desperately needed in this area. He said they proposed to have a split facility, with 24 lanes on one side and 16 on the other, so that private functions could be held separately from the general public. He added that they believed such a facility was relevant to community offerings for recreation and entertainment, providing the latest furnishings, technology, safety, and wholesome family fun in a safe and secure environment. MR. KEN SIMONS, CEO of Simons Enterprises, owner and operator of the current Golf Center on this site, 75-587 Camino de Paco, Indian Wells, said one of their goals was for this development to be something positive for the community and the neighborhood. Several meetings were held with neighbors to listen and respond to concerns. Those responses included changes to construction height and changes to the ingress/egress, planned hours of business, etc. He said they were members of the community, not a professional group of developers. The following individuals were OPPOSED to the project because of traffic impacts, the planned multi -use ofthe project, changing the zoning ofthe property, the closeness ofthe bowling center to Palm Desert High School, the serving of alcohol at the bowling center, loitering, additional water runoff onto the streets during the rainy season because of less ground for the water to be absorbed, safety, increased crime, noise, service vehicles going into and out of the project, and lighting. MR. DAVE HART, 74-657 Gary Avenue, Palm Desert, expressed concern about changing the City's General Plan for this project. He would propose that a "people's traffic study" be conducted which would have a quantitative element like the City's current traffic study but would also have a qualitative portion where interviews would be conducted and videotape done to document the residents' thoughts. He noted that 1995 was the last time a traffic study was done at Sheryl and Cook Street; at that time, 20,000 vehicles per day were traveling in that area. A count was also done at that time at Cook Street and Fred Waring Drive, and that count was also 20,000. He said the 25 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 25, 2001 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * count done in 2000 was 30,000, which meant an increase of 10,000 vehicles per day. He asked for -- additional time to study this project before it is approved. MR. STEVEN BAYARD, 96 Hudson Court, Palm Desert. MR. E. B. MALAND, 40-845 Avenida Calafia, Palm Desert, said he would like to see this property maintained and, if at all possible, held and developed in the future for moderate income. MS. JULIE STROTHER, 74-448 Nevada Circle East, Palm Desert, said she would like to see this project approved in an area already zoned for commercial. MS. TERESA DUFFY, 42-531 Clifford Street, Palm Desert. MR. SIDNEY HIEMSTRA, 74-862 Leslie Avenue, Palm Desert. MRS. MAUREEN HIEMSTRA, 74-862 Leslie Avenue, Palm Desert, said residents were told at one of the meetings that the main entrance to this project would be from Cook Street, which will not be the case because of the quickness of the traffic on Cook Street. MS. TARA VOORS, 74-861 Merle Drive, Palm Desert, noted that some of the signatures on the petitions distributed by the developer at the last Planning Commission meeting were forgeries. MR. BERYL SMITH, 74-179 Gary Avenue, Palm Desert, expressed concern with building this new facility at a time when California is facing an energy crisis. MS. PAT ROEDER, 42-671 Susan Circle, Palm Desert. MS. MARY BEEBE, 42-633 Susan Circle, Palm Desert, said she had never been contacted by the developer about this project. MR. ROD SORTER, 72-786 Skyward Way, Palm Desert, owner of KC Minimarket. The following spoke in SUPPORT of the project. MR. DENNIS CUNNINGHAM, 73-111 Ironwood Street, Palm Desert, said he felt this was a fresh project, and a lot of effort had been put into it over the last several years. He said he felt it was very sensitive to the residential area to the west and acted as a buffer between Cook Street and the residential area. MR. HUGH HOARD stated he felt the benefits of this center far outweighed the concerns of the residents, and the City needed a project such as this. Mayor Ferguson invited additional comments from the developer. 26 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 25, 2001 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * MR. HUGHES stated he felt the concerns of the residents were sincere and that the work done over the last two years had mitigated those concerns either to a point of insignificance or zero. He urged the Council to approve the project. Mayor Ferguson declared the public hearing closed. Mayor Pro-Tem Kelly said he felt the problem was not with having a bowling alley and gas station in a project, but he felt such a project in this area was not compatible with the neighborhood. He said there was already a lot of existing commercial property in the City, and there was vacant commercial property that would be very appropriate for a bowling alley and this type of project. He said the property in question was originally intended as a golf course. He added that he would like to see this project built in a location where it would be more compatible with the surrounding area. Councilman Crites said he felt the Golf Center had been a good neighbor, and he felt no obligation to change the zone to up the value of someone's property simply because they say it does not pencil to do something that it is zoned for. He said it was not the City's business to make those decisions, especially when there is major neighborhood opposition, there are plenty of other places in the City to put all of these kinds of activities, it is by a street that is already heavily impacted with traffic, and the City is getting ready to review its entire General Plan. Councilmember Benson agreed. She agreed Palm Desert does need a bowling alley, although this was the wrong place for such a project. Councilman Spiegel said he was not opposed to bowling alleys and felt one was needed mid -Valley. He added that he was generally opposed to changing the zoning of property, although there were times it was necessary to do so, and he did not feel the zoning of this property should be changed to accommodate the proposed project. Mayor Ferguson agreed with his colleagues and said he did not see the need to upset the residents in the area by putting in this project. He added that if there was a need to change the zoning in that area, it should be done through the General Plan update process. Councilman Spiegel moved to direct staff to prepare a resolution of denial for the subject cases. Motion was seconded by Kelly and carried by unanimous vote. With City Council concurrence, Mayor Ferguson recessed the meeting at 5:47 p.m. He reconvened the meeting at 5:52 p.m. XIV. ORAL COMMUNICATIONS None 27 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 25, 2001 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * XV. ADJOURNMENT With City Council concurrence, Mayor Ferguson adjourned the meeting to Closed Session at 8:19 p.m. He reconvened the meeting at 8:49 p.m. and immediately ad'. rneith no action announced from Closed Session. A TEST: v SHEILA R.'GIL GAN, ' Y CLERK CITY OF PALM DESE CALIFORNIA JI FER V U. ON MAYOR 28