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HomeMy WebLinkAbout2003-06-12MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING THURSDAY, JUNE 12, 2003 CIVIC CENTER COUNCIL CHAMBER I. CALL TO ORDER - 3:00 P.M. Mayor Benson convened the meeting at 3:00 p.m. II. ROLL CALL Present: Councilman Buford A. Crites arrived at 4:00 p.m. Councilman Jim Ferguson Councilman Richard S. Kelly Mayor Pro-Tempore Robert A. Spiegel Mayor Jean M. Benson Also Present: Carlos L. Ortega, City Manager/RDA Executive Director David J. Erwin, City Attorney Sheila R. Gilligan, ACM for Community Services Homer Croy, ACM for Development Services Justin McCarthy, ACM for Redevelopment Amir Hamidzadeh, Director of Building & Safety Rachelle D. Klassen, City Clerk Phil Drell, Director of Community Development Paul S. Gibson, Director of Finance/City Treasurer Teresa L. La Rocca, Director of Housing Michael J. Errante, Director of Public Works/City Engineer Richard Twedt, Public Arts Manager III. ORAL COMMUNICATIONS - A None MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 12, 2003 IV. ADJOURN TO CLOSED SESSION Reauest for Closed Session: Conference with Real Property Negotiator pursuant to Government Code Section 54956.8: 1) Property: Lease Property - Parkview Professional Office Complex, 73-710 Fred Waring Drive, Suite 200A, Palm Desert Negotiating Parties: Agency: Paul S. Gibson/City of Palm Desert Property Owner: City of Palm Desert Other Parties: University of California, Riverside Under Negotiation: x Price x Terms of Payment 2) Property: Approximately 12 acres in Hillside west of Homme/Adams Park (APNs 628-030-006/007/008/010) Negotiating Parties: Agency: Carlos L. Ortega/Phil Drell/City of Palm Desert Property Owner: Beverly Lane Kirkpatrick Under Negotiation: x Price x Terms of Payment 3) Property: 9.18 acres west of Homme/Adams Park (APNs 628-030-009 and 011) Negotiating Parties: Agency: Carlos L. Ortega/Phil Drell/City of Palm Desert Property Owner: Warren and Mary Slaughter Under Negotiation: x Price x Terms of Payment Conference with Legal Counsel regarding existing litigation pursuant to Government Code Section 54956.9(a): a) Renee Capela v. City of Palm Desert, et al., Riverside County Superior Court Case No. INC 021720 Conference with Legal Counsel regarding significant exposure to litigation pursuant to Government Code Section 54956.9(b): Number of potential cases: 2 Upon motion by Spiegel, second by Kelly, and a 4-0 vote (Councilman Crites ABSENT), Mayor Benson adjourned the meeting to Closed Session at 3:01 p.m. She reconvened the meeting at 4:00 p.m. 2 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 12, 2003 V. RECONVENE REGULAR MEETING - 4:00 P.M. A. REPORT ON ACTION FROM CLOSED SESSION. None VI. PLEDGE OF ALLEGIANCE - Councilman Richard S. Kelly VII. INVOCATION - Councilman Jim Ferguson VIII. ORAL COMMUNICATIONS - B None IX. AWARDS, PRESENTATIONS, AND APPOINTMENTS A. PRESENTATION TO RECOGNIZE THE STUDENTS FROM JAMES E. CARTER AND GERALD FORD ELEMENTARY SCHOOLS FOR THEIR PARTICIPATION IN THE PEAK CFL FUNDRAISER. Mr. Ted Flanigan and Mr. Blair Anderson of The Energy Coalition and Six Cities Energy Project, and Mayor Benson made presentations to the top sellers of the CFLs (compact flourescent light bulbs) from both Carter and Ford Elementary Schools as follows: Top selling class (Mrs. Munksgard's 4th grade class at Carter Elementary); Top student sellers from Ford Elementary (Runner-up Haley Ney, 1st grade; Top seller Dorian Romero, 3rd grade); Top student sellers from Carter Elementary (Runners-up Justin Lanros, 5th grade; Logan Pettito, 4th grade; Amanda Pace, 5th grade; Brennan Wherle, 3rd grade; Top seller Brenna Shells, 5th grade). A fundraiser check was also presented to Carter Elementary PTO, accepted by PTO President Terri Lawrence. B. PRESENTATION TO RECOGNIZE SPIRO STAMESON FOR HIS SERVICE TO THE CITY OF PALM DESERT AND ITS TECHNOLOGY COMMITTEE. Mr. Stameson was unable to attend today's meeting. C. PRESENTATION TO RECOGNIZE WALTER HUTCHINSON FOR HIS SERVICE TO THE CITY OF PALM DESERT AND ITS BUILDING BOARD OF APPEALS AND CONDEMNATION. Mr. Hutchinson was unable to attend today's meeting. D. APPOINTMENT OF MEMBERS TO THE BUILDING BOARD OF APPEALS AND CONDEMNATION, CITIZENS' ADVISORY COMMITTEE FOR PROJECT AREA NO. 4, AND HOUSING COMMISSION. 3 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 12, 2003 Mayor Pro Tempore Spiegel moved to, by Minute Motion: 1) Reappoint Denise Poeltler to the Building Board of Appeals & Condemnation for a four-year term (01/01/03 - 12/31 /06); 2) reappoint members Harry Church, Frank Proulx, Aulden Schlatter, and Sherry Trevor to the Citizens' Advisory Committee for Project Area No. 4 each for a four-year term (01/01/03 -12/31/06); 3) appoint Jane Turner to the Housing Commission to fill the at -large member vacancy and unexpired term of former member Ben Kurtz (01/01/02 - 12/31/05). Motion was seconded by Ferguson and carried by a 5-0 vote. X. CONSENT CALENDAR A. MINUTES of the Regular City Council Meeting of May 22, 2003, and the Adjourned Joint Meeting of the City Council/Redevelopment Agency of May 16, 2003. Rec: Approve as presented. B. CLAIMS AND DEMANDS AGAINST THE CITY TREASURY - Warrant Nos. 250, 251, 254, 258, 259, 262, 263, 257PDOC, 258PDOC, and 266PDOC. Rec: Approve as presented. C. CLAIM AGAINST THE CITY (#513) by James B. Ruse in an Unspecified Amount. Rec: By Minute Motion, reject the Claim and direct the City Clerk to so notify the Claimant. D. APPLICATION FOR ALCOHOLIC BEVERAGE LICENSE by James Stephen Huttonkrebser and Jennifer Ann Johnson for Tastebud Tango, 73-675 Highway 111, Palm Desert. Rec: Receive and file. E. REQUEST FOR AUTHORIZATION to Transfer Funds from the General Fund Reserves to the City Internal Service Fund for Vehicle Replacement. Removed for separate consideration under Section XI, Consent Items Held Over. Please see that portion of the Minutes for Council discussion and action. 4 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 12, 2003 F. MINUTES of City Committee and Commission Meetings. 1. Entrada del Paseo Steering Committee Meeting of April 3, 2003. 2. Housing Commission Meeting of April 16, 2003. 3. Investment & Finance Committee Meetings of March 26, and April 23, 2003. 4. Library Promotion Committee Meeting of March 12, 2003. 5. Public Safety Commission Meeting of April 9, 2003. Rec: Receive and file. G. REQUEST FOR AWARD OF BID for the Construction of a Trophy Case at Desert Willow Clubhouse. Rec: By Minute Motion: 1) Authorize to award bid to The Yankee Woodshop, Palm Desert, California, in the amount of $13,015 for the construction of the trophy case at the Desert Willow Clubhouse; 2) appropriate funds from Account No. 241-4195-495-8092. H. REQUEST FOR APPROVAL of Contract for Citywide Office Supplies (Contract No. C21270). Rec: By Minute Motion, approve a one-year contract, with two possible one-year extensions, with Office Depot. I. REQUEST FOR APPROVAL of Change Order No. 1 to Contract No. C19480 — Necessary Additional Work and Reimbursables for the Freedom Park Mass Grading Plan and Country Club Drive Widening Plans. Rec: By Minute Motion, approve Change Order No. 1 in the amount of $4,207.81 to the subject contract with Mayers and Associates Civil Engineering, Inc., Lake Forest, California, for additional work and reimbursables for the Freedom Park mass grading and Country Club Drive widening plans. J. REQUEST FOR AUTHORIZATION to Call for Proposals for the Entry Way Sign at Fred Waring Drive and Washington Street. Removed for separate consideration under Section XI, Consent Items Held Over. Please see that portion of the Minutes for Council discussion and action. 5 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 12, 2003 K. REQUEST FOR AUTHORIZATION to CaII for Proposals for the Second Sculpture on the Fred Waring Corridor Project. Rec: By Minute Motion: 1) Concur with the Art In Public Places Commission to approve sending Request For Proposals to Michael Watling, Steve Rieman, Woods Davy, Mario Bartel, Donna Billick, Bruce Niemi, and Wendy Klemperer; 2) authorize that each artist is to be paid $500 for his or her proposed design of an artwork that incorporates the "Baja" theme. L. CONSIDERATION of the Entry Gates at 72-414 Parkview Drive as Artwork (Tim Bartlett, Applicant). Removed for separate consideration under Section XI, Consent Items Held Over. Please see that portion of the Minutes for Council discussion and action. M. CONSIDERATION of Adopting the Proposed "City of Palm Desert Public Art Deaccessioning Policy" and the "City of Palm Desert Public Art Relocation Policy." Rec: By Minute Motion, concur with the Art In Public Places Commission and accept the "City of Palm Desert Public Art Deaccessioning Policy" and the "City of Palm Desert Public Art Relocation Policy." N-1. CONSIDERATION of Action Taken by the Legislative Review Committee on AB 816 (Reyes) — Local Publicly Owned Electric Utility. Rec: By Minute Motion, concur with the action taken by the Legislative Review Committee at its meeting of May 20, 2003, and direct staff to prepare a letter of opposition for the Mayor's signature with regard to AB 816 (Reyes). N-2. CONSIDERATION of Action Taken by the Legislative Review Committee on AB 875 (Wyland) — Transportation Projects. Rec: By Minute Motion, concur with the action taken by the Legislative Review Committee at its meeting of May 20, 2003, and direct staff to prepare a letter of opposition for the Mayor's signature with regard to AB 875 (Wyland). 6 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 12, 2003 N-3. CONSIDERATION of Action Taken by the Legislative Review Committee on AB 969 (Correa) — Tourism Expansion. Rec: By Minute Motion, concur with the action taken by the Legislative Review Committee at its meeting of May 20, 2003, and direct staff to prepare a letter of opposition for the Mayor's signature with regard go AB 969 (Correa). N-4. CONSIDERATION of Action Taken by the Legislative Review Committee on ACA 17 (Daucher) — Property Taxes. Rec: By Minute Motion, concur with the action taken by the Legislative Review Committee at its meeting of May 20, 2003, and direct staff to prepare a letter of opposition for the Mayor's signature with regard to ACA 17 (Daucher). N-5. CONSIDERATION of Action Taken by the Legislative Review Committee on SB 981 (Soto) — Air Pollution Control Programs. Removed for separate consideration under Section XI, Consent Items Held Over. Please see that portion of the Minutes for Council discussion and action. O. REQUEST FOR AUTHORIZATION to Appropriate $30,000 From the Unreserved Fund 400 for the Installation of Sewer Laterals. Rec: By Minute Motion, authorize the appropriation of $30,000 from the Unreserved Fund 400 for the installation of sewer laterals. P. REQUEST FOR APPROVAL of Petty Cash Increase for the Visitor Information Center. Rec: By Motion, approve a $150 increase in the Petty Cash Fund for the Visitor Information Center as administered by the Visitor Center Manager. 7 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 12, 2003 Q. REQUEST FOR APPROVAL of Serving Alcoholic Beverages at Sister Cities Committee -Related Functions for the Remainder of Fiscal Year 2003/04 and Ratifying the Purchase and Serving of Alcohol During the Sister Cities Transpacific Golf Tournament. Rec: By Minute Motion: 1) Approve the serving of alcohol at Sister Cities - related functions for the remainder of Fiscal Year 2003/04; 2) ratify the purchase and serving of alcohol at Desert Willow Golf Resort during the Sister Cities Transpacific Golf Tournament held April 28, 2003. R. REQUEST FOR APPROVAL of Out -of -State Travel for Sister Cities International Annual Conference. Removed for separate consideration under Section XI, Consent Items Held Over. Please see that portion of the Minutes for Council discussion and action. S. INFORMATIONAL ITEMS: 1. Progress Report on Retail Center Vacancies Councilman Ferguson removed Item L, Councilman Crites removed Item N-5, Mayor Pro Tempore Spiegel removed Item E, Mayor Benson removed Item J, and Mrs. Gilligan removed Item R, all to be considered separately under Section XI, Consent Items Held Over. Upon motion by Spiegel, second by Ferguson, the remainder of the Consent Calendar was approved as presented by a 5-0 vote. XI. CONSENT ITEMS HELD OVER E. REQUEST FOR AUTHORIZATION to Transfer Funds from the General Fund Reserves to the City Internal Service Fund for Vehicle Replacement. Mayor Pro Tempore Spiegel questioned the City's reserve of $2,894,478 for vehicle replacement, and Councilman Ferguson asked whether this reserve would cover more than just vehicle replacement. Mr. Gibson responded that it would cover any large pieces of equipment over $50,000 in value, including the paint sprayer for Public Works, water trucks, etc. Upon further question by Mayor Pro Tempore Spiegel, he responded that it would still come to City Council for approval. Mayor Pro Tempore Spiegel moved to, by Minute Motion, authorize the appropriation of funds from the General Fund Reserves to the City Internal Service Fund for vehicle replacement. Motion was seconded by Kelly and carried by a 5-0 vote. 8 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 12, 2003 J. REQUEST FOR AUTHORIZATION to Call for Proposals for the Entry Way Sign at Fred Waring Drive and Washington Street. Mayor Benson said it was her understanding that the Request for Proposal would include direction to use all the elements in the design. Mr. Twedt responded that this was included in the Request for Proposal. Upon further question by Mayor Benson relative to entry way signage on Monterey as well, Mr. Twedt noted that Mr. Carver had pulled that sign. Mayor Benson moved to, by Minute Motion: 1) Concur with the Art In Public Places Commission to approve sending Request For Proposals to Michael Watling, Steve Rieman, and Allen Root for the entry way sign at Fred Waring Drive and Washington Street; 2) authorize that each artist is to be paid $500 for their proposed design, which will include three views, scales, and construction materials. Motion was seconded by Spiegel and carried by a 5-0 vote. L. CONSIDERATION of the Entry Gates at 72-414 Parkview Drive as Artwork (Tim Bartlett, Applicant). Councilman Ferguson stated that it was his understanding from Mr. Twedt that this item was being pulled Mrs. Gilligan noted that Mr. Bartlett's request was different from what the Art In Public Places Commission saw. Staff recommended allowing Mr. Bartlett to take it back to Art In Public Places at its next meeting, with report back to Council at its first meeting in July. Mayor Pro Tempore Spiegel moved to continue this matter to the meeting of July 10, 2003. Motion was seconded by Crites and carried by a 5-0 vote. N-5. CONSIDERATION of Action Taken by the Legislative Review Committee on SB 981 (Soto) — Air Pollution Control Programs. Councilman Crites stated that if this was a piece of legislation that CVAG looked at, it was one that the Air Quality Management District had a lot of positive input about, and he wanted to make sure that input was considered in the recommendation to oppose it. He said from what he had read, he would not agree with staff's recommendation. Senior Management Analyst Pat Scully stated that all that documentation was sent to the Legislative Review Committee, and AQMD input was considered. Councilman Crites noted that CVAG's Energy & Environment Committee voted unanimously to support the legislation. 9 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 12, 2003 Councilman Kelly noted that the Executive Committee unanimously voted to not support it. Councilman Kelly moved to, by Minute Motion, concur with the action taken by the Legislative Review Committee at its meeting of May 20, 2003, and direct staff to prepare a letter of opposition for the Mayor's signature with regard to SB 981 (Soto). Motion was seconded by Ferguson. The motion failed by a 2-3 vote, with Councilman Crites, Mayor Pro Tempore Spiegel, and Mayor Benson voting NO. R. REQUEST FOR APPROVAL of Out -of -State Travel for Sister Cities International Annual Conference. Mrs. Gilligan stated that staff was notified that the City of Palm Desert was receiving a First Place award by the Sister Cities International organization at its conference to be held this summer in St. Louis. The recommendation was to send two people, Donna Gomez (Manager of Sister Cities program) and one of the Committee members. She said staff would like to add a request to send Councilman Crites as well, and he would be present at the Sister Cities Conference, participating in it, and would be there when the City receives the award. Councilman Ferguson moved to, by Minute Motion, approve the subject request for up to two Sister Cities Committee representatives to attend the Conference to be held in St. Louis, Missouri, July 23-26, 2003 — funds are available in Account No. 110-4416-414-3126, amended to approve out-of-state travel for Councilman Crites and add him to the Palm Desert representatives, for a total of three. Motion was seconded by Spiegel and carried by a 5-0 vote. XII. RESOLUTIONS A. RESOLUTION NO. 03-80 — A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, AMENDING THE 2002/03 BUDGET TO PROVIDE TRANSFER, APPROPRIATION, AND ESTIMATED REVENUES OF UNOBLIGATED FUNDS FROM THE TRAFFIC SAFETY, GAS TAX, INTERNAL SERVICE, AND THE GENERAL FUND AS OF JUNE 30, 2003. Mayor Pro Tempore Spiegel moved to waive further reading and adopt Resolution No. 03-80. Motion was seconded by Ferguson and carried by a 5-0 vote. 10 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 12, 2003 XIII. ORDINANCES For Introduction: A. ORDINANCE NO. 1050 — AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, REQUIRING NEW DEVELOPMENT TO DEDICATE ALL UTILITY SYSTEMS WITHIN SAID DEVELOPMENT TO THE CITY OF PALM DESERT. Mrs. Gilligan reviewed the staff report and offered to answer any questions. MR. BOB PERRYMAN, Building Industry Association, urged the Council to tread lightly on this issue. He said there had been a trend lately by some local cities, particularly Indian wells, to do some things even more drastic than this, and they had recently changed their minds about going forward with taking over the Edison infrastructure and creating a public utility. He said BIA wanted to ensure there will not be any delays to developers or hardships to citizens. He asked that the Council take time to consider all of the ramifications of this particular action. MS. KATHLEEN DeROSA, Public Affairs Regional Manager for Southern California Edison, read a prepared statement. She said that just as Southern California Edison's rates are about to come down, just as the State itself is also about to lower its own share of the electric bill, and just as other cities are heading in the opposite direction away from the utility business, this ordinance would saddle the City with responsibilities and costs that have not been quantified, much Tess publicly debated. She said while the City would be receiving the developers' facilities for free, this ordinance, even if it were legal, would require the City, at its own citizens' costs, to pay for and construct the remaining facilities including substations, interconnection facilities, and to complete an entire municipal electric utility system. It would require the City to incur all the costs and to face all the risks required to become an electric utility as well as creating a financial risk to the City's taxpayers. It would also require the City to go out and contract for the electricity to power the system and deliver it to the customers the developers hope to attract. She said the very nature of this ownership premise required the City to fully inform the public regarding all the underlying costs and revenue assumptions associated with such acquisition, including any ongoing operation and maintenance. To date, there had been no public review and/or debate regarding the costs that the City would experience in the electric utility, what rates would be charged to the customers, and what subsidies would be experienced. She said Southern California Edison (SCE) believed this enabling ordinance was premature and should be held until there is full disclosure and debate of all issues indicated. She noted the ordinance passed last month, allowing the City to become a municipal utility, and this proposed ordinance did nothing to shield the City against marketplace risks 11 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 12, 2003 which are still associated with the electric utility business. The City would need to purchase the generation commodity based on volatile natural gas indices, which are about 50% higher than a year ago and are anticipated to continue to rise over the next 12 to 18 months. Unlike SCE, the City would not have the diversity in a generation portfolio that includes low cost hydro, nuclear, and coal. No matter what assertions may be made about buying federal power or lower priced contracts, there are little assurances that any such generation would be available. The City would be faced with acquiring power for the worst usage profile in Southern California, high peak needs for the most costly time of day. Additionally, the acquisition may need to be made on the spot market to cover peak Toads, and redundant commodity needs to could leave the City exposed to very high prices. Passing these two ordinances would not shield the City and its customers from their obligation to pay California Department of Water Resources departing load, currently known as Exit Fees, from their fair share of the power contracts signed by the State of California. These contracts anticipate power needs for the future used by customers, including the new load growth that is anticipated in spite of all the State's economic problems. The State would require all future customers to help pay off these contracts. She said there was action in both the State Legislature and at the Public Utilities Commission to clarify these obligations and set fees similar to clarifications made last year under AB117. The risk and exposure of the pricing and the methodology that the City will use to procure generation, combined with the overlay of the State's contract obligations, would push the rates for the City's new utility customers to those higher than SCE or will put the City into a deficit situation within its utility services. Even if the assumptions were made that the City would charge no higher than those rates charged by SCE, would mirror all the incentives, the care, and the energy efficiency programs offered by SCE, and the City's costs are higher than can be recovered by the rates charged, it could be assumed that existing residents and businesses would be subsidizing those new businesses and residents in the northern sphere. She said this basically amounted to a hidden tax paid by the majority for the benefit of a few. She noted that in just a few short weeks, Southern California Edison rates to all customers would be coming down by 8-18%. The California Public Utilities Commission was set to approve a rate reduction application that would see rates reduced this summer. Additionally, the amount of reserves set aside for power purchases required by the bonding agency had been reduced by $1 billion, allowing SCE to pass through an additional savings to rate payers of investor -owned utilities. For southern California customers, this was estimated to be an additional 5% over and above the reduction that SCE was passing through. She said SCE stood committed to help the City of Palm Desert understand the complexities of the electric utility business. She said they would be happy to review any studies and provide comment that would help the City to make informed decisions. SCE encouraged the City to provide an open process where its economic feasibility studies would be 12 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 12, 2003 shared with the community and affected utilities, allowing for input before undertaking any risky venture. Mayor Pro Tempore Spiegel asked whether this could slow down development as noted by Mr. Perryman. Mr. Ortega responded that it would not slow down any new construction. Upon question by Mayor Benson, he said this would not involve any territory currently served by Southern California Edison, so the City of Palm Desert was not looking at the same issues as the City of Indian Wells. He noted the City of Indian Wells was looking at condemning existing Southern California Edison distribution facilities, and the City of Palm Desert was not looking to do that. Councilman Ferguson said it seemed that the City of Palm Desert was simply taking control of its own land. Instead of just giving it to Edison, the City was retaining control over it and giving it to whoever the Council feels will give the City the best deal. If that ends up being Edison, then the land would be given to Edison. He said no binding decision was made by doing this ordinance. Councilman Kelly moved to waive further reading and pass Ordinance No. 1050 to second reading. Motion was seconded by Crites and carried by a 5-0 vote. — For Adoption: A. ORDINANCE NO. 1049 — AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, REGARDING THE LICENSURE OF TOBACCO RETAILERS AND AMENDING THE PALM DESERT MUNICIPAL CODE. Mayor Pro Tempore Spiegel moved to waive further reading and adopt Ordinance No. 1049. Motion was seconded by Ferguson and carried by a 5-0 vote. XIV. NEW BUSINESS A. CONSIDERATION OF AN APPEAL TO A DECISION OF THE ARCHITECTURAL REVIEW COMMISSION, APPROVING A MONUMENT SIGN SUBJECT TO REMOVAL OF THE EXISTING WALL SIGN FOR THE DENTAL OFFICE LOCATED AT 44-239 MONTEREY AVENUE Case No. SA 02-220 (Signs by Mel for Bruce R. Baumann, DDS, Appellant). Mr. Drell reviewed the staff report, noting that this had been before Council previously. It went back to Architectural Review Commission, which took the same action requiring that the wall sign be removed as a condition of the installation of the monument sign. The appellant had appealed this decision. He said the Commission felt the additional signage was excessive; however, 13 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 12, 2003 staff agreed with the appellant that a silver sign on a gray/blue background was relatively unobtrusive and that the signage was still within the area allotment of the building. Mayor Pro Tempore Spiegel noted there were photos in the packets showing examples of other businesses doing the same as what was being requested by this appellant. Councilman Crites noted that this had been denied by Council previously. Mr. Smith responded that due to a misunderstanding, the appellant did not appear when the Council voted on the matter. The appellant requested reconsideration and was advised that he would need to start over with a new application. Councilman Crites asked whether the Architectural Review Commission had the same examples of other businesses as were included in the Council's packet. Mr. Drell responded that they had the same information and still felt the signage was not justified in this case. Mayor Pro Tempore Spiegel said he could not see anything obnoxious about the sign. Because at least five other businesses in the vicinity were doing the same thing, he would agree with staff's recommendation that the appeal be granted. Councilman Kelly moved to, by Minute Motion, grant the appeal and approve the monument sign without removal of the existing wall sign. Motion was seconded by Spiegel and carried by a 3-2 vote, with Councilmen Crites and Ferguson voting NO. B. CONSIDERATION OF AN APPEAL TO A DECISION OF THE ARCHITECTURAL REVIEW COMMISSION, APPROVING A BUSINESS IDENTIFICATION SIGN SUBJECT TO REDUCING THE LETTER HEIGHT FROM 42 INCHES TO 36 INCHES Case No. SA 03-52 (Barnes & Noble, Appellant). Mr. Drell reviewed the staff report and offered to answer any questions. Councilman Ferguson asked whether the only issue was whether the letters are fat or skinny. Mr. Drell responded that the issue was that the 36-inch letters could be separated a little more and would be more in proportion to the allowed space and make for a more legible sign. Paint, texture, etc., were not issues. 14 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 12, 2003 MR. ED TOOHEY, Barnes & Noble, spoke in favor of the granting of the appeal and said their major concern was readability of the sign all the way to Highway 111. He asked that the Council approve the letters at 42 inches. Councilman Ferguson stated that, from looking at the pictures, 42 inch letters were a lot more legible. Councilman Ferguson moved to, by Minute Motion, grant the appeal, approving letter height of 42 inches. Motion was seconded by Spiegel and carried by a 4-1 vote, with Councilman Crites voting NO. C. REQUEST FOR AUTHORIZATION TO PURCHASE 316,800 POUNDS OF GRASS SEED. Councilman Crites moved to, by Minute Motion, authorize staff to purchase 316,800 pounds of grass seed from Simplot Partners, Palm Desert, California, in the amount of $235,487.50 plus 7.75% sales tax in the amount of $18,250.28 for a total of $253,737.78. Motion was seconded by Kelly and carried by a 5-0 vote. D. REQUEST FOR AUTHORIZATION TO EXECUTE THE MEMORANDUM OF UNDERSTANDING WITH THE CITY OF INDIAN WELLS FOR DESIGN ENGINEERING SERVICES FOR THE FRED WARING DRIVE WIDENING FROM PHYLLIS JACKSON LANE TO WASHINGTON STREET (CONTRACT NO. C21280). Mayor Pro Tempore Spiegel moved to, by Minute Motion, authorize the Mayor to execute the Memorandum of Understanding with the City of Indian Wells. Motion was seconded by Kelly and carried by a 5-0 vote. E. REQUEST FOR APPROVAL OF AN AGREEMENT TO REIMBURSE BETWEEN THE CITY OF PALM DESERT AND SAINT MARGARET'S EPISCOPAL CHURCH FOR THE COST OF UNDERGROUNDING HIGHWAY 74 UTILITY LINES (CONTRACT NO. C21310). Councilman Crites moved to, by Minute Motion, approve an Agreement to Reimburse in the amount of $130,141.44 for a 10-year repayment agreement between the City of Palm Desert and Saint Margaret's Episcopal Church for the cost of undergrounding Highway 74 utility lines. Motion was seconded by Kelly and carried by a 5-0 vote. F. REQUEST FOR APPROVAL OF PURCHASE/SALE AGREEMENT AND JOINT USE AGREEMENT WITH DESERT SANDS UNIFIED SCHOOL DISTRICT FOR FREEDOM PARK SCHOOL SITE. Mr. Ortega reviewed the staff report and offered to answer any questions. 15 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 12, 2003 Councilman Crites stated that Page 3 of the staff report noted that the City was going to be responsible for maintenance, and the District would pay the water costs. He said he did not disagree with that; however, the next paragraph noted the District would put in a nice fence along Country Club Drive, and chain link would be along the 960 linear feet of frontage along the secondary entry road and parking lot unless the City wished to pay the cost difference. He said he would agree to the City maintaining the joint play area but felt the District should install a decent fence all the way around their project. Councilman Crites moved to, by Minute Motion: 1) Approve the Purchase and Sale Agreement with Desert Sands Unified School District (DSUSD) for the Freedom Park school site at the northeast corner of Country Club Drive and Liberty (Contract No. C21290); 2) approve the Joint Use Agreement with Desert Sands Unified School District (DSUSD) for the Freedom Park school site at the northeast corner of Country Club Drive and Liberty (Contract No. C21300), subject to DSUSD's agreement to install decorative tubular steel fencing around the perimeter of the joint use play area. Motion was seconded by Spiegel and carried by a 5-0 vote. G. REQUEST FOR APPROVAL OF THE INITIATION OF PROCEEDINGS TO LEVY AND COLLECT FISCAL YEAR 2003/2004 ANNUAL ASSESSMENTS FOR THE CONSOLIDATED PALM DESERT LANDSCAPING AND LIGHTING DISTRICTS AND APPROVAL OF THE PRELIMINARY ENGINEERS REPORT. Councilman Crites moved to waive further reading and adopt Resolution No. 03-82, initiating proceedings for the levy and collection of assessments for the Consolidated Palm Desert Landscaping and Lighting District for Fiscal Year 2003/2004 and approving the Preliminary Engineers Report regarding the proposed levy and collection of assessments for the Consolidated Palm Desert Landscaping and Lighting District, Fiscal Year 2003/2004. Motion was seconded by Spiegel and carried by a 5-0 vote. H. REQUEST FOR APPROVAL OF EXTENSION OF CONTRACT FOR ADVERTISING/PROMOTIONAL SERVICES FOR THE CITY OF PALM DESERT (CONTRACT NO. C19222). Upon question by Mayor Benson, Mrs. Gilligan noted that the original contract with Full Gallop Marketing Communications was for $5,000 per month for a limited number of hours each month. Subsequent to that, the demands on Ms. Close's time had been increased, and the contract was increased to $6,500 per month last year. This year's contract was the same as last year's. Councilman Ferguson said it was his understanding the City used to go out to bid for advertising/promotional services, with a three-year contract being awarded, renewable annually. He asked when this last went out to bid. 16 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 12, 2003 Mrs. Gilligan responded that Ms. Close was hired a little over three years ago. Her first contract was for an abbreviated period of time, so in reviewing it this year, this would be the third full year as the contractor, and staff would put it out to bid next year. Mayor Pro Tempore Spiegel moved to, by Minute Motion, approve the subject contract in the amount of $78,000 with Full Gallop Marketing Communications, Palm Springs, California, and authorize the Mayor to execute same. Motion was seconded by Crites and carried by a 5-0 vote. 1. REQUEST FOR AUTHORIZATION TO APPROPRIATE $369,129.40 FROM THE UNOBLIGATED FUND 400 FOR THE DESIGN, ADMINISTRATION, AND CONSTRUCTION OF FUGITIVE DUST CONTROL MEASURES. Councilman Kelly moved to, by Minute Motion, authorize the appropriation of $369,129.40 from the Unobligated Fund 400 for the Design, Administration, and Construction of Fugitive Dust Control Measures. Motion was seconded by Crites and carried by a 5-0 vote. XV. CONTINUED BUSINESS A. ORDINANCE NO. 1041 — AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, PROHIBITING ELECTRIC PERSONAL ASSISTIVE MOBILITY DEVICES (E. G. SEGWAY HUMAN TRANSPORTERS) (Continued from the meeting of May 22, 2003). Mr. Croy stated that staff's request was that Council continue this matter until after the Public Safety Commission completes its review, which should be approximately a month and a half. Councilman Ferguson moved to continue this matter until after the Public Safety Commission completes its review. Motion was seconded by Spiegel and carried by a 5-0 vote. B. RESOLUTION NO. 03-68 — A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, AMENDING RESOLUTION NO. 03-14, AND DETERMINING THE AMOUNT OF PROPERTY TAX REVENUE TO BE EXCHANGED BETWEEN THE CITY OF PALM DESERT AND THE COUNTY OF RIVERSIDE RELATING TO ANNEXATION NO. 36 — THE CREST (LAFCo 2002-27-4) (Continued from the meeting of May 22, 2003). Mr. Ortega noted the resolution in the packets and stated that, with a couple of minor amendments, the County of Riverside had indicated they would approve it. 17 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 12, 2003 Assistant to the City Manager Steve Aryan noted that Riverside County staff had reviewed this resolution and recommended minor changes that did not affect its overall intent. He reviewed those changes as follows: — Section 2 was amended to clarify the location of the annexation area and now read as "Annexation No. 36 — The Crest", located south of the City of Rancho Mirage, north of Painted Canyon Road, and west of Upper Way West Drive." — Section 2a was corrected to reflect similar wording found in Section 2b. Section 2a would now read, "...100% of that portion of the property tax revenue generated with the territory to be annexed that is presently collected by the County of Riverside as a structural fire protection tax." He said such language was excluded by oversight and should be included to maintain consistency within the body of the resolution's text. Mayor Pro Tempore Spiegel stated that as he understood it, if the Council approved this, it would also be approving the annexation of the property. Mr. Ortega responded that the Council approved the annexation, but it was subject to approving a property tax sharing agreement. If the Council does not approve this resolution, there is no agreement, and the annexation will not go through the process. Councilman Ferguson stated that the financial pro forma used in analyzing whether there was net positive cash flow on this included property, which was already within the City of Palm Desert and which contained most of the real property improvements (the clubhouse, the condo), and the only portion of this that is in the County is sod and tees. Even under the erroneous cash flow assumption, there was a net positive cash flow, given all those services the City would have to provide to the clubhouse; but with no fire, no ambulance, no police on the golf course itself, there was a much larger net revenue to the City. He said he could not see any reason why, for this project, the City would not approve it. Mayor Pro Tempore Spiegel said his concern was that the City was not just annexing The Crest, it was also annexing property south of The Crest. Developers had not been able to develop it as long as it has been in the County. He said he had no problem with the golf course because it is not illuminated, etc. He suggested sharing it with the County and letting the development be in Palm Desert, with the golf course to remain in the County. Councilman Ferguson said he had thought the same thing. In looking at the County versus the City of Palm Desert, he felt the City would have better quality control over the development. 18 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 12, 2003 Councilman Kelly moved to waive further reading and adopt Resolution No. 03-68. Motion was seconded by Ferguson and carried by a 3-2 vote, with Mayor Pro Tempore Spiegel and Mayor Benson voting NO. C. REQUEST FOR APPROVAL OF CONTRACT WITH JOSEPH S. GAUGUSH FOR PLAN CHECKING SERVICES FOR THE PUBLIC WORKS DEPARTMENT (CONTRACT NO. C21250) (Continued from the meeting of May 22, 2003). Mr. Ortega noted the staff report and recommendation in the packets. Mayor Pro Tempore Spiegel said there are times when the City has to go outside the City and use contract people to do some of the plan checks. He asked whether $85.00 per hour was a normal fee. Mr. Errante responded that normal fees ranged between $65.00 and $125.00 per hour. Mayor Benson said her concern was that other local firms are hired and that it be distributed equally among them. Mr. Errante responded that it would be distributed equally depending on work load. Councilman Ferguson noted that he had received a copy of the Government Code section dealing with conflicts of interest, and it discussed former employees, barring them from re-employment in a contract capacity for two years. He asked where this information had come from and why. Mr. Errante responded that there was a request last time to include it. Mr. Erwin added that he had reviewed the information and had discussed it with the City Manager. He said his interpretation is that there is a waiver required, should Mr. Gaugush be employed by some other private developer, on appearing in front of the Council. That would not be the case here. The waiver is required where he is a compensated representative. In this instance, he is under contract with the City and is not a representative of any outside party. Mayor Pro Tempore Spiegel moved to, by Minute Motion: 1) Approve the subject agreement with Joseph S. Gaugush in the amount of $85.00 per hour on an as -needed basis; 2) authorize the Mayor to execute said agreement; 3) allocate $10,000 from the Professional Services Account No. 110-4300-413-3010. Motion was seconded by Crites and carried by a 4-1 vote, with Councilman Ferguson voting NO. 19 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 12, 2003 XVI. OLD BUSINESS A. REQUEST FOR AWARD OF CONTRACT TO THE LOWEST RESPONSIBLE BIDDER FOR THE MAGNESIA FALLS DRIVE BRIDGE AND STREET IMPROVEMENTS (CONTRACT NO. C20710, PROJECT NO. 648-99). Mr. Ortega noted this was an item where the bids had not been opened when the Agenda was finalized; however, bids had been subsequently opened, and staff's report and recommendation were in the packets. Mayor Pro Tempore Spiegel moved to, by Minute Motion: 1) Award the subject contract to Yeager Skanska, Inc., Riverside, California, in the amount of $3,041,207.50; 2) appropriate $1,561,000 from Unobligated Measure "A" to the Magnesia Falls Street and Bridge project; 3) appropriate $380,000 from Drainage Fund 420 for the subject project; 4) appropriate contingency in the amount of $304,120.75 from Unobligated Measure "A"; 5) appropriate $321,955 from Unobligated Fund 400 for the electrical undergrounding on Magnesia Falls Drive; 6) authorize the Mayor to execute said contract. Motion was seconded by Kelly and carried by a 4-1 vote, with Mayor Benson voting NO. B. REQUEST FOR AWARD OF CONTRACT TO THE LOWEST RESPONSIBLE BIDDER FOR THE MAGNESIA FALLS DRIVE SOUND WALL (CONTRACT NO. C20710A, PROJECT NO. 648-99A). Mr. Ortega noted the staff report in the packets. Mayor Pro Tempore Spiegel moved to, by Minute Motion: 1) Award the subject contract to Parsam Construction, Inc., Glendale, California, for construction of the Magnesia Falls Drive Bridge and Street Improvements Soundwall in the amount of $1,739,150; 2) appropriate $443,900 from Unobligated Measure "A" for the subject project; 3) appropriate $1,295,250 from Unobligated Fund 400; 4) appropriate a contingency in the amount of $173,915 from Unobligated Fund 400; 5) authorize the Mayor to execute said contract. Motion was seconded by Ferguson and carried by a 3-2 vote, with Councilman Crites and Mayor Benson voting NO. C. RESOLUTION NO. 03-81 - A RESOLUTION DECLARING COMPLETION OF ASSESSMENT DISTRICT 94-1 SERIES B — WATER SYSTEM IMPROVEMENTS FOR 540 ZONE, 680 ZONE, AND 840 ZONE BOOSTER PUMPING STATIONS. Mr. Ortega noted the staff report and recommendation in the packets. Mayor Pro Tempore Spiegel moved to waive further reading and adopt Resolution No. 03-81. Motion was seconded by Crites and carried by a 5-0 vote. 20 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 12, 2003 D. REQUEST FOR AUTHORIZATION TO EXECUTE A GRANT DEED FOR THE TRANSFER OF 540 ZONE BOOSTER PUMPING STATION PROPERTY TO THE COACHELLA VALLEY WATER DISTRICT (CVWD). Councilman Crites moved to, by Minute Motion: 1) Approve transfer of the 540 Zone Booster Pumping Station to the Coachella Valley Water District; 2) authorize the Mayor to execute the Grant Deed. Motion was seconded by Spiegel and carried by a 5-0 vote. E. REQUEST FOR APPROVAL OF MEDIAN ISLAND CONCEPT ON HOVLEY LANE EAST AT CARLOTTA DRIVE. Upon question by Mayor Pro Tempore Spiegel relative to input from the Carlotta people, Mr. Errante responded that staff mailed out information, and a majority of the people were either silent or in favor. Councilman Kelly said he had looked at the area and found that it would work well from a traffic standpoint in getting people around. Councilman Kelly moved to, by Minute Motion, approve the median island concept to prohibit left turn egress from Carlotta Drive onto Hovley Lane East. Motion was seconded by Spiegel and carried by a 5-0 vote. XVII. PUBLIC HEARINGS None XVIII. REPORTS AND REMARKS A. CITY MANAGER None B. CITY ATTORNEY None C. CITY CLERK Mrs. Klassen reminded City Council that tomorrow's meeting regarding discussion of the FY 2003/04 Budget would begin with lunch being served at 12:30 p.m. MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 12, 2003 D. MAYOR AND MEMBERS OF THE CITY COUNCIL o City Council Reauests for Action: 1. Councilman Crites asked for staff's investigation of a report he had heard today from a CVWD staff member that the reclaimed water system utilized at Desert Willow had been off-line for about a year. Mr. Ortega responded that he did not think it had been quite that long, but there had been a maintenance issue involved with the reclaimed water retention mechanism. He said the repairs had been authorized, and the system should again be working in the very near future. o City Council Committee Reports: 1. Councilman Kelly remarked that with regard to the recent issues involving SunLine, he assured the City Council that many people were working on the problem, and it was anticipated a solution would be forthcoming. He hoped that after solving the problem, the "baby wouldn't be thrown out with the bath water," because over the years, SunLine had accomplished many good things. He believed that perhaps too much enthusiasm had been part of the problem, further observing that had SunLine not been forward -thinking, it would still be using secondhand diesel buses instead of being an innovator in public transportation. He assured his colleagues that no one had stolen any money. He also asked for his colleagues' concurrence that he be able to utilize the expertise of the City's Finance Department and Accounting staff to help him in case he needs assistance reviewing various financial reports on the matter. Council concurred with Councilman Kelly's request. 2. Councilman Crites reported that at today's CVAG Energy & Environment Committee Meeting, CVAG Director of Human and Community Resources Aurora Kerr announced that the County Debt Advisory Committee had today recommended approval of the Animal Campus. He added that was the next step towards obtaining the Board of Supervisors' approval for the project. Mayor Benson added that at today's Debt Advisory Committee Meeting, one of the members tried to mix the property tax 22 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 12, 2003 equation for The Crest and Palm Desert Greens into the issue of the Animal Campus. She said the Committee Member asked if Palm Desert was arguing over property taxes for these properties, why didn't it build the animal shelter. She added that Riverside County Economic Development Agency's Brad Hudson quickly came to the rescue to explain the difference. She was very happy the outcome was favorable. o City Council Comments: 1. Councilman Kelly displayed a copy from the leading British golf magazine, showing a double -page photo of the Desert Willow Mountain View Course's #6 hole, which was named one of the greatest in the world. 2. Councilman Kelly reported that he made a worthwhile trip to Prescott, Arizona, and he appreciated his colleagues' approval, which cost around $160. Since his return, he had shared information with Mr. Twedt and Mrs. Gilligan, and he offered to do the same for his colleagues. He noted that there was a sculpture of a burro at the show that may be appropriate for the Fred Waring corridor. Councilman Crites offered to look at the burro to see if it may be appropriate. 3. Councilman Crites called attention to the June 2003 issue of Palm Springs Life, in which there was a feature article about Mayor Benson. He quoted from it, "Jean Benson unites Desert leaders for pets, kids, and each other," which he said was a wonderful article. XIX. ADJOURNMENT Upon motion by Spiegel, second by Crites, and a 5-0 vote of the City Council, Mayor Benson adjourned the meeting at 5:55 p.m. ATTEST: ss- RACHELLE D. KLASSEN, CITY CLER CITY OF PALM DESERT, CALIFORNIA M. BENSON, MAYOR 23