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HomeMy WebLinkAbout2008-02-28MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING THURSDAY, FEBRUARY 28, 2008 CIVIC CENTER COUNCIL CHAMBER 73510 FRED WARING DRIVE, PALM DESERT, CA 92260 I. CALL TO ORDER - 3:00 P.M. Mayor Benson convened the meeting at 3:00 p.m. II. ROLL CALL Present: Councilman Jim Ferguson Councilmember Cindy Finerty Councilman Richard S. Kelly Mayor Pro Tem 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 Stephen Y. Aryan, Assistant to the City Manager Rachelle D. Klassen, City Clerk Bo Chen, City Engineer Russell Grance, Director of Building & Safety Lauri Aylaian, Director of Community Development Patrick Conlon, Director of the Office of Energy Management Paul S. Gibson, Director of Finance/City Treasurer Janet M. Moore, Director of Housing Mark Greenwood, Director of Public Works David Yrigoyen, Director of Redevelopment & Housing Frankie Riddle, Director of Special Programs Dennis Dawson, Battalion Chief, Palm Desert Fire/Riv. Co. Fire Dept./Cal Fire Robert Perdue, Sergeant, Palm Desert Police/Riverside Co. Sheriffs Department Grace L. Mendoza, Deputy City Clerk MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING FEBRUARY 28, 2008 III. ORAL COMMUNICATIONS - A (CLOSED SESSION ITEMS) None Mr. Erwin said there were two items to be added to the agenda, each of which could be considered wherever the City Council deemed appropriate: 1. Consideration of the potential permission for a helicopter landing in conjunction with the event to honor Don Sutton on opening day of the baseball season at Civic Center Park on Saturday, March 15, as City Council is required to approve any helicopter landings in the City. Councilman Ferguson moved to add this consideration to this agenda. Motion was seconded by Spiegel and carried by 5-0 vote. 2. Consideration of a Mesa RV's Temporary Use Permit Application for a potential sale at Westfield Palm Desert. Mayor Pro Tem Spiegel moved to add the La Mesa RV item to the agenda. Motion was seconded by Kelly and carried by 5-0 vote. Councilman Ferguson asked to add another item of potential litigation to the Closed Session pursuant to Government Code Section 54956.9(b), having to do with expansion of the Saks 5th Avenue store relative to the adequacy and appropriateness of a finding for variance as opposed to either an exception or development agreement, as he felt the City may have exposure here. Mayor Pro Tem Spiegel moved to add this Closed Session item to the agenda. Motion was seconded by Finerty and carried by a 5-0 vote. IV. ADJOURN TO CLOSED SESSION Request for Closed Session: Conference with Real Property Negotiator pursuant to Government Code Section 54956.8: 1) Property: Lease Property - Parkview Professional Office Complex - 73710 Fred Waring Drive, Suite No. 200, Palm Desert Negotiating Parties: Agency: Carlos L. Ortega/Paul S. Gibson/City of Palm Desert Property Owner: City of Palm Desert Other Parties: Coachella Valley Association of Governments Under Negotiation: x Price x Terms of Payment 2 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING FEBRUARY 28, 2008 2) Property: 44-840 Monterey Avenue (APN 627-071-061) Negotiating Parties: Agency: Justin McCarthy/Martin Alvarez/City of Palm Desert/ Palm Desert Redevelopment Agency Property Owner: Darlene Lyons Under Negotiation: x Price x Terms of Payment 3) Property: 44-887 San Antonio Circle (APN 627-071-012) Negotiating Parties: Agency: Justin McCarthy/Martin Alvarez/City of Palm Desert/ Palm Desert Redevelopment Agency Property Owner: Federico Meza/Elva Villar Under Negotiation: x Price x Terms of Payment 4) Property: APN 627-071-013 Negotiating Parties: Agency: Justin McCarthy/Martin Alvarez/City of Palm Palm Desert Redevelopment Agency Property Owner: David/Agnes Holtz Under Negotiation: x Price x Terms 5) Property: APN 627-071-014 Negotiating Parties: Agency: Justin McCarthy/Martin Alvarez/City of Palm Palm Desert Redevelopment Agency Property Owner: Michael J. Castelli Under Negotiation: x Price x Terms Desert/ of Payment Desert/ of Payment 6) Property: 44-850 San Antonio Circle (APN 627-071-016) Negotiating Parties: Agency: Justin McCarthy/Martin Alvarez/City of Palm Desert/ Palm Desert Redevelopment Agency Property Owner: Aubrey & Amber Witte Under Negotiation: x Price x Terms of Payment 7) Property: 44-845 San Clemente Circle (APN 627-071-023) Negotiating Parties: Agency: Justin McCarthy/Martin Alvarez/City of Palm Desert/ Palm Desert Redevelopment Agency Property Owner: Peggy Bridwell Under Negotiation: x Price x Terms of Payment 3 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING FEBRUARY 28, 2008 8) Property: 44-889 San Clemente Circle (APNs 627-071-024, -025) Negotiating Parties: Agency: Justin McCarthy/Martin Alvarez/City of Palm Desert/ Palm Desert Redevelopment Agency Property Owner: Wing Lam Shou Under Negotiation: x Price x Terms of Payment 9) Property: 44-900 San Clemente Circle (APN 627-074-006) Negotiating Parties: Agency: Justin McCarthy/Martin Alvarez/City of Palm Desert/ Palm Desert Redevelopment Agency Property Owner: Timothy Palmer Under Negotiation: x Price x Terms of Payment 10) Property: APN 627-074-012 Negotiating Parties: Agency: Justin McCarthy/Martin Alvarez/City of Palm Desert/ Palm Desert Redevelopment Agency Property Owner: David/Irene Yaghoubian Under Negotiation: x Price x Terms of Payment 11) Property: 44-871 San Benito Circle (APN 627-092-004, -005) Negotiating Parties: Agency: Justin McCarthy/Martin Alvarez/City of Palm Desert/ Palm Desert Redevelopment Agency Property Owner: Jeffrey D. Bancroft Under Negotiation: x Price x Terms of Payment 12) Property: 73-341 San Benito Circle (APN 627-092-007) Negotiating Parties: Agency: Justin McCarthy/Martin Alvarez/City of Palm Desert/ Palm Desert Redevelopment Agency Property Owner: Donna M. Matson Under Negotiation: x Price x Terms of Payment 13) Property: 73-361 San Benito Circle (APN 627-092-008) Negotiating Parties: Agency: Justin McCarthy/Martin Alvarez/City of Palm Desert/ Palm Desert Redevelopment Agency Property Owner: Lucia Rodriguez Under Negotiation: x Price x Terms of Payment 4 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING FEBRUARY 28, 2008 14) Property: APN 627-092-006 Negotiating Parties: Agency: Justin McCarthy/Martin Alvarez/City of Palm Desert/ Palm Desert Redevelopment Agency Property Owner: Marc/Glenda Machado Under Negotiation: x Price x Terms of Payment 15) Property: 44-876 San Benito Circle (APN 627-092-044) Negotiating Parties: Agency: Justin McCarthy/Martin Alvarez/City of Palm Desert/ Palm Desert Redevelopment Agency Property Owner: Ken R. Wey Under Negotiation: x Price x Terms of Payment 16) Property: 44-845 Las Palmas (APN 627-092-035) Negotiating Parties: Agency: Justin McCarthy/Martin Alvarez/City of Palm Desert/ Palm Desert Redevelopment Agency Property Owner: Arthur/Dora Cohn Under Negotiation: x Price x Terms of Payment 17) Property: 72-559 Highway 111 Negotiating Parties: Agency: Justin McCarthy/Martin Alvarez/City of Palm Desert/ Palm Desert Redevelopment Agency Property Owner: Palm Desert Redevelopment Agency 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 + 1 With City Council concurrence, Mayor Benson adjourned the meeting to Closed Session at 3:03 p.m. She reconvened the meeting at 4:03 p.m. V. RECONVENE REGULAR MEETING - 4:00 P.M. A. REPORT ON ACTION FROM CLOSED SESSION. None VI. PLEDGE OF ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA - Councilman Jim Ferguson 5 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING FEBRUARY 28, 2008 VII. INVOCATION - Councilman Richard S. Kelly VIII. ORAL COMMUNICATIONS - B MS. KATHLEEN DE ROSA, Public Affairs Region Manager for Southem California Edison (SCE), said today she was pleased to be able to introduce a gentleman who would be working with the City of Palm Desert and its staff on the Energy Partnership between the City, SCE, Southern Califomia Gas Company, and the Energy Coalition. When the Partnership was formed, SCE promised a full-time employee for the City, and she introduced Mr. Tony Coonce, who had been hired and actually started working with the City one week ago. She said Mr. Coonce had over 17 years in the utility business with experience and background in energy efficiency, having worked with San Diego Gas & Electric for some time; and prior to that, he was an account manager for a Midwestem utility. She went on to say she'd spent most of the day with him yesterday, along with City staff and the Working Group that worked on the 2008-2009 program. MR. TONY COONCE said he was pleased to meet the City Council. He was very encouraged to be working with the City of Palm Desert and was already fantastically impressed with it. He pledged to make the Partnership very successful and bring benefits to the City. MS. PATTY WILLIAMS, Palm Desert resident and owner of the Starlight Dance Center at 73-910 Highway 111, addressed the City Council to express continued concerns about the smoke shop located next to her business. Although it did not have a conditional use permit to be a smoking lounge, she understood people were allowed to smoke inside and outside the store any time they wanted. A local inspector confirmed for her that the common wall between the shop and her studio did not prevent the smoke from coming into the studio, and it did during dance classes. Further, the front doors of both the smoke shop and dance studio were very close together; therefore, when smokers stood outside, smoke enters the studio in that manner as well. She related that most of her 200 students are minors, who were being exposed to deadly secondhand smoke, without recourse on her part. She's had to dismiss early or cancel classes, especially for the youngest students, because the smoke is unbearable. After operating at this location for eight years, her business was being greatly affected. She went on to describe incidents of illicit activity at the smoke shop and its patrons' intimidation that also impacted her students and their parents, who were frightened. She beseeched the City Council to help her with this situation in whatever way it could (i.e., smoking ban or business license revocation), as she tried to provide a healthy environment for children to come and learn but was exasperated about this. She believed the smoke shop may want to relocate to another place, because she was aware they wanted to be a smoking lounge; however, the landlord needed to let them out of their lease. She presented petitions with 75 signatures conveying this sentiment. (Ms. Williams read from a prepared statement that was received for the record, along with the petitions, which are now all on file with the City Clerk's Office.) 6 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING FEBRUARY 28, 2008 Mayor Benson advised that the City would have its Code Compliance Department investigate the concerns and get back to her with the findings. MR. MANUEL SANCHEZ spoke to the City Council regarding his being the topic of discussion at its meetings without his knowledge; and every time he attempted to present his side of the story, it was too late. Today he was here because the City Council was apparently thinking about revoking his home business license, and it was his livelihood. When he bought the property at 77-740 Delaware Place, he understood that he could operate a business there, as several of his neighbors did, including contractors for dry wall, air conditioning, roofing, etc. His biggest complaint was that he'd been contacted by Code Compliance Officer Rodriguez and also by Assistant Planner Stendell, who'd told him how to comply, and he did. He said there was a six-foot wall separating him and his neighbor, but the neighbor keeps calling to complain; even though he's personally gone there and left a business card trying to resolve the matter and also had the Police Department make contact because the neighbor was photographing him at night. To date, he's yet to have any contact with the neighbor, and the Police Department has also been unsuccessful. If he was able to speak with someone, he guaranteed that the problem could be rectified; but he felt the City was taking a drastic measure in revoking his license. He thought he was entitled to be heard and treated fairly. He also wondered how he could be in compliance with one Officer, then all of a sudden there were Council Meetings where it was decided to revoke his license. Mr. Erwin stated he'd spoken with Mr. Sanchez prior to the meeting this afternoon and advised that either he or someone from his office would contact him tomorrow and look into the circumstances. Results would be reported back to the City Council at the next meeting. IX. AWARDS, PRESENTATIONS, AND APPOINTMENTS A. INTRODUCTION OF NEW CHIEF OF POLICE FOR THE CITY OF PALM DESERT, CAPTAIN DAN WILHAM. Captain Wilham was unable to be present for this meeting. B. APPOINTMENT OF A MEMBER OF THE CITY COUNCIL TO SERVE AS A NON -VOTING REPRESENTATIVE TO THE BOARD OF THE PALM SPRINGS ART MUSEUM. Mayor Pro Tem Spiegel moved to, by Minute Motion, appoint Councilmember Finerty as the City of Palm Desert's non -voting representative to the Board of the Palm Springs Art Museum. Motion was seconded by Ferguson and carried by a 4-0-1 vote, with Finerty ABSTAINING. 7 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING FEBRUARY 28, 2008 X. CONSENT CALENDAR A. MINUTES of the Regular City Council Meeting of February 14, 2008. Rec: Approve as presented. B. CLAIMS AND DEMANDS AGAINST THE CITY TREASURY - Warrant Nos. 181, 182, 186, 190, and 191. Rec: Approve as presented. C. YOUTH COMMITTEE MINUTES for the Meeting of January 7, 2008. Rec: Receive and file. D. LETTER OF RESIGNATION from Richard Darius — Marketing Committee. Rec: Receive with very sincere regret. E. RECEIVE AND FILE the Independent Accountants' Report on Agreed -upon Procedures Performed on the Measure "A" Transportation Fund for the Fiscal Year Ended June 30, 2007. Rec: Receive and file. F. DECLARATION OF SURPLUS PROPERTY and Disposal Authorization (Police Department Eyewitness Video Boxes). Rec: By Minute Motion, declare items listed on the accompanying staff report's Exhibit "A" as surplus property and authorize disposal. G. REQUEST FOR RATIFICATION and Adoption of the New Three-year Memorandum of Understanding (MOU) Between the City of Palm Desert and the Palm Desert Employees Organization (P.D.E.O.) (Contract No. C27290). Rec: By Minute Motion, approve the subject MOU between the City and the P.D.E.O. 8 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING FEBRUARY 28, 2008 H. REQUEST FOR APPROVAL of Amendment No. 2 to Contract No. C26410 — Landscape Maintenance Area No. 4 (Project No. 904-07). Rec: By Minute Motion, approve Amendment No. 2 in the amount of $11,520 to the subject contract with Sierra Landscape, Inc., Palm Desert, California, to add maintenance of the medians on Monterey Avenue between 35`h and Dinah Shore, Gerald Ford Drive between Cook Street and Portola Avenue, and Cook Street between Frank Sinatra Drive and Gerald Ford Drive — funds are available in Account No. 110-4614-453-3370. I. REQUEST FOR APPROVAL of Amendment No. 1 to Contract No. C26550 — Landscape Maintenance Area No. 6 (Project No. 906-07). Rec: By Minute Motion, approve Amendment No. 1 in the amount of $1,500 to the subject contract with Hort Tech, Inc., Palm Desert, Califomia, to add maintenance of two additional frontages at Desert Willow Golf Resort — funds are available in Account No. 241-4195-495-3320. J. REQUEST FOR APPROVAL of Amendment No. 1 to Contract No. C26560 — Landscape Maintenance Area No. 9 (Project No. 909-07). Rec: By Minute Motion, approve Amendment No. 1 in the amount of $6,325 to the subject contract with Hort Tech, Inc., Palm Desert, California, to add trash collection service on El Paseo — funds are available in Account No. 110-4614-453-3370. K. REQUEST FOR ACCEPTANCE OF WORK for Contract No. C24460 — Installation of Underground Substructures, Conduit, and Service Work Required for Palm Desert Highlands Utility Undergrounding Assessment District, No. 04-01 (Herman Weissker, Inc., Bloomington, CA). Rec: By Minute Motion, accept the work as complete and authorize the City Clerk to file a Notice of Completion for the subject project. L. REQUEST FOR ACCEPTANCE OF WORK for Contract No. C26440 — Citywide Curb, Gutter, and Sidewalk Program (Project No. 753-07) (Contreras Construction Company, Indio, CA). Rec: By Minute Motion, accept the work as complete and authorize the City Clerk to file a Notice of Completion for the subject project. 9 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING FEBRUARY 28, 2008 M. REQUEST FOR AUTHORIZATION to Purchase Gearmasters Turnout Gear Storage Lockers at Fire Station No. 67 (Mesa View). Rec: By Minute Motion, approve the proposal by Witmer Associates, Inc., Coatesville, Pennsylvania, in the amount of $4,172.45 to purchase Gearmasters Turnout Gear Storage Lockers for Fire Station No. 67 (Mesa View) —funds are available in the New Construction Tax Fund, Account No. 231-4420-422-4001. N. REQUEST FOR AUTHORIZATION to Release Maintenance and Sidewalk Securities for Parcel Map 24255 (Monterey 170, LLC, c/o Thomas Noble, Applicant). Rec: By Minute Motion, authorize the City Clerk to release the subject securities for Parcel Map No. 24255. O. REQUEST FOR WAIVER of Municipal Code Provisions in Conjunction with 2008 Fashion Week — March 23-30. Removed for separate consideration under Section XI, Consent Items Held Over. Please see that portion of the Minutes for Council discussion and action. P REQUEST FOR RATIFICATION of the Acceptance of the Califomia Office of Traffic Safety's "Click It or Ticket" Grant. Rec: By Minute Motion, review and ratify acceptance of funding supplied by the Califomia Office of Traffic Safety specifically earmarked for implementation of the "Click It or Ticket" seat belt compliance program — funding in the amount of $7,000 has been authorized for the City of Palm Desert's part in this Statewide Program. Q. REQUEST FOR APPROVAL of Out -of -State Travel for Director of Public Works and Landscape Manager to Attend the Symposium on Climate Change, April 9-10, 2008. Rec: By Minute Motion, approve the subject out-of-state travel for the Director of Public Works and the Landscape Manager to attend the subject Symposium in Tempe, Arizona — funds are available in Account No. 110-4614-453-3120. 10 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING FEBRUARY 28, 2008 R. REQUEST FOR APPROVAL of the 2008 "Movie and Music Madness" Line-up. Rec: By Minute Motion, approve the line-up for 2008 "Movie and Music Madness" scheduled to be held May 1, 2008, through July 4, 2008 — funds are available in Account No. 110-4416-414-3061. S. REQUEST FOR APPROVAL of Purchase Orders/Audio-Visual Invoices for the 2008 "Movie and Music Madness" Concerts. Rec: By Minute Motion, approve purchase orders for audio-visual invoices totaling $11,400 with Studio Instrument Rentals, Palm Springs, California, for concert sound, lighting equipment, and professional services/staff for the 2008 "Movie and Music Madness" concerts — funds are available in Account No. 110-4416-414-3061. Councilman Ferguson requested that Item 0 be removed for separate consideration under Section XI, Consent Items Held Over. Upon motion by Ferguson, second by Spiegel, and 5-0 vote of the City Council, the remainder of the Consent Calendar was approved as presented. XI. CONSENT ITEMS HELD OVER O. REQUEST FOR WAIVER of Municipal Code Provisions in Conjunction with 2008 Fashion Week — March 23-30. Responding to question about the location of the City -owned property, Senior Management Analyst Patricia Scully replied it was the vacant lot on Lupine Lane and Shadow Mountain. Further responding, she confirmed the waiver for the amplified sound would be in the evening hours. Councilman Ferguson stated he was concerned the waiver was for the City's own Noise Ordinance. He requested staff monitor the noise level to the same degree and extent it monitored Augusta, South Beach, and others. Council could then prove it was possible to meet the Noise Ordinance by showing the readings to critics who said "it can't be done." Ms. Scully agreed to work with Code Compliance. Councilman Ferguson moved to, by Minute Motion, waive the 9:00 p.m. regulation on amplified sound, directing staff to use the same method of measuring and regulating the amplified sound as it does the various establishments throughout the City, and permit the sales of merchandise on City -owned property in connection with 2008 Fashion Week. Motion was seconded by Spiegel and carried by a 5-0 vote. 11 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING FEBRUARY 28, 2008 XII. RESOLUTIONS A. RESOLUTION NO. 08-12 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, AMENDING RESOLUTION NO. 07-80 AS IT RELATES TO THE BUILDING AND SAFETY FEE SCHEDULE FOR FUEL CELL PERMIT AND PLAN CHECK FEES (ClearEdge Power Corp., Applicant). Responding to question, Mr. Conlon confirmed the waiver was for fees normally charged for fuel cell installation. Mayor Pro Tem Spiegel moved to waive further reading and adopt Resolution No. 08-12. Motion was seconded by Ferguson and carried by a 5-0 vote. B. RESOLUTION NO. 08-13 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, VACATING EXCESS PUBLIC UTILITY EASEMENT ADJOINING SOUTHRIDGE TRAIL IN THE STONE EAGLE PROJECT, TRACT NO. 30438-3, UNDER PROVISIONS OF DIVISION 9, PART 3, CHAPTER 4 OF THE STREETS & HIGHWAYS CODE OF THE STATE OF CALIFORNIA (Stone Eagle, Applicant). Mr. Ortega noted the staff report and interior map of the development. Responding to question, Mr. Ortega confirmed staff was requesting approval. Councilman Ferguson stated he would be abstaining due to a potential conflict with former client related to this item. He said the City Attorney was looking into whether a conflict existed but didn't have a response yet. Mayor Pro Tem Spiegel moved to waive further reading and adopt Resolution No. 08-13. Motion was seconded by Kelly. Mayor Benson asked how the drainage situation in that area was progressing and how it was being solved. She said the Council still received letters accusing it of granting approvals to Stone Eagle that other's might not have received. Mr. Greenwood replied staff had a number of meetings with the developer, residents of the area, and anyone concerned about the issue. He said staff did an extensive investigation of the situation, and the City Attorney was preparing an Agreement to monitor and maintain the channel to avoid future problems. Stone Eagle would be responsible for maintaining the channel in a manner that was acceptable to the City and the residents; he believed the issue was resolved. Further responding, he said the Agreement would be finalized within the next 60 days. 12 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING FEBRUARY 28, 2008 Mayor Pro Tem Spiegel pointed out this item had nothing to do with the drainage problem. Mr. Greenwood concurred. Mayor Benson called for the vote, and it carried by a 4-0-1 vote, with Ferguson ABSTAINING. XIII. ORDINANCES For Introduction: None For Adoption: None XIV. NEW BUSINESS A. REQUEST FOR AUTHORIZATION TO RENOVATE DESERT WILLOW DRIVE LANDSCAPE AT DESERT WILLOW GOLF RESORT (CONTRACT NO. C27300). Responding to question, Mayor Pro Tem Spiegel said this item did not go through the Landscape Beautification Committee. Landscape Manager Spencer Knight stated this project was viewed as a maintenance issue, but by the time the damaged plant material was taken care of, the project had grown. He offered to take the project back through the Landscape Beautification Committee if Council wished. Further responding, he confirmed the plants were being replaced because they were old and overgrown. He said staff will follow the original plan with the introduction of some newer species of a smaller stature that would also provide some color. Mayor Pro Tem Spiegel moved to, by Minute Motion: 1) Direct staff to proceed with the subject project through the established bid process; 2) authorize the Mayor to execute a contract for same with the successful bidder in an amount not to exceed $70,000 - unobligated funds for Phase I are available in Account No. 241-4195-3320. Motion was seconded by Finerty. Councilmember Finerty agreed the plants were overgrown and in need of a face lift, and she was glad that staff was taking care of it. Mayor Benson called for the vote, and the motion carried by a 5-0 vote. 13 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING FEBRUARY 28, 2008 B. REQUEST FOR APPROVAL OF LEASE BETWEEN THE CITY OF PALM DESERT AND THE COUNTY OF RIVERSIDE FOR FIRE STATION NOS. 33, 67, AND 71, AND NEW FIRE STATIONS AS THEY ARE PLACED INTO SERVICE (CONTRACT NO. C27310). Mayor Pro Tem Spiegel moved to, by Minute Motion, approve an updated Lease between the City of Palm Desert and the County of Riverside for Fire Station Nos. 33, 67, and 71, and new Fire Stations as they are placed into service, and authorize the Mayor to execute same. Motion was seconded by Finerty and carried by a 5-0 vote. C. REQUEST FOR AUTHORIZATION TO PURCHASE AND INSTALL THE PLYMO-VENT DIESEL EXHAUST -CAPTURING SYSTEM AT ALL CURRENT CITY FIRE STATIONS. Responding to question, Mr. Aryan confirmed the funds were available in the New Construction Tax Fund. Mayor Pro Tem Spiegel moved to, by Minute Motion approve the proposal by Air Cleaning Systems, Pomona, California, in the amount of $140,797.48 to install the PlymoVent Diesel Exhaust -capturing System at Fire Stations Nos. 33, 67, and 71 - funds are available from the New Construction Tax Fund, Account No. 231-4220-422-4001. Motion was seconded by Finerty and carried by a 5-0 vote. D. REQUEST FOR AWARD OF CONTRACT FOR REPLACEMENT OF FLOOR TILE IN THE ENTRYWAYS AND SECOND FLOOR AT THE PARKVIEW OFFICE COMPLEX BUILDINGS (CONTRACT NO. C27320). Responding to question, Mr. Gibson stated staff was asking for appropriation of funds from Account 510, where funds were available. Mayor Pro Tem Spiegel moved to, by Minute Motion: 1) Award the subject contract to Temalpakh, Inc., d.b.a. The Works Floor & Wall, Cathedral City, California, in the amount of $107,431.89 to remove and replace floor tile in the entryways and second floor at the Parkview Office Complex buildings, and authorize the Mayor to execute same; 2) appropriate said funds from Fund 510 for this project. Motion was seconded by Finerty and carried by a 5-0 vote. Mayor Benson stated it was a project long overdue. Mr. Ortega agreed. 14 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING FEBRUARY 28, 2008 E. REQUEST FOR APPROVAL OF REIMBURSEMENT AGREEMENTS WITH THE COACHELLA VALLEY ASSOCIATION OF GOVERNMENTS (CVAG) AND APPROVAL OF A COOPERATIVE AGREEMENT WITH CALTRANS FOR THE PORTOLA AVENUE/INTERSTATE 10 (1-10) INTERCHANGE (CONTRACT NOS. C27330A-C). Mayor Pro Tem Spiegel noted this project would take about five years to complete and needed to get started. Councilman Kelly moved to, by Minute Motion, approve: 1) Reimbursement Agreement between the City of Palm Desert and CVAG for funding the Project Approval/Environmental Document Phase of the Portola Avenue/I-10 Interchange Project in an amount not to exceed $1,500,000, and authorize the Mayor to execute the Agreement; 2) Reimbursement Agreement between the City of Palm Desert and CVAG for funding the Design, Right -of -Way Acquisition, and Construction Phases of the Portola Avenue/I-10 Interchange Project in the amount of $54,075,000, and authorize the Mayor to execute the Agreement; 3) Cooperative Agreement between the City of Palm Desert and Caltrans, outlining the roles and responsibilities of both agencies for the Project Approval, Design, and Right -of -Way Acquisition Phases of the Portola Avenue/I-10 Interchange Project, and authorize the Mayor to execute the Agreement. Motion was seconded by Finerty and carried by a 5-0 vote. F. REQUEST FOR APPROVAL OF AN AGREEMENT WITH OFF MADISON AVE., INC., FOR WEBSITE DEVELOPMENT AND MARKETING SERVICES (CONTRACT NO. C27340). Councilman Ferguson requested an update on the City's websites. He knew the City had a website for at least 12 years but seemed it was always getting a new one, a new domain name, a new look or a new feel, but they were all scattered. He asked that staff provide a historical index of the websites the City had, the number of hits generated, what progression had been made overtime in terms of hits and expenditures, and what the City was doing now that would be an improvement upon the previous considerations. Report to include total amount spent in trying to market the City on the Internet for the past 11 years, if the City was there yet, and where did staff think it should be headed. He said without the information mentioned, this item was just another Internet contract. A few months ago the City announced its new internet website to the public, and he didn't know if this item was for that website or a new one, and if so, why. Marketing Manager Kristy Kneiding agreed to prepare such report, but this contract was for the tourism website only. She said the City had three websites: 1)Art in Public Places, which is Dalmdesertart.com; 2) e-Government site, citvofpalmdesert.ora, which just went through review, redesign, and was used for City business. It's for people looking for 15 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING FEBRUARY 28, 2008 business license information, City codes, and information of that sort; and 3) tourism site, which is Dalm-desert.orq, the website used to promote the City's tourism, ads, and branding. It's purely for the visitor wanting information on how to get to Palm Desert, where to stay, what to do, and those types of things. Councilman Ferguson asked if a visitor wanted to know how often the City Council met, if they could jump from the tourism site to a website with a different URL. Ms. Kneiding replied they could. She said all the websites were linked from their home pages, that you could get to the Tourism or Art sites from the City website, and if you were accidentally on one site, it was apparent if you needed City business, you would know where to go. Councilman Ferguson moved to, by Minute Motion: 1) Concur with the Marketing Committee's recommendation to enter into the subject agreement with Off Madison Ave., Inc. (Mighty Interactive), Tempe, Arizona, in an amount not to exceed $45,000 for website development and marketing services, with staff directed to provide a comprehensive historical report on development of the City's websites, including expenditures, relevance and the benefit realized by the City's marketing program to date; 2) authorize the Mayor to execute the Agreement on behalf of the City — funds are available in Account No. 110-4417-414-3090. Motion was seconded by Finerty. Responding to question, Ms. Kneiding replied the CVA could be reached through the tourism site because it was on the CVA's home page. The tourism site would be the one providing the most search engine optimization. Staff hoped that for anyone in the world searching for general vacation information in this area, it would be Palm Desert that would rise to the top. Further responding, she said there was no local company that could provide the technology and service the City was looking for. Councilman Ferguson requested that the report also include an explanation as to why the City went out of state for a vendor, and why it spent the amount that it did. Ms. Kneiding agreed. Mayor Benson called for the vote, and the motion carried by a 5-0 vote. XV. CONTINUED BUSINESS A. REQUEST FOR APPROVAL OF MID -YEAR BUDGET ADJUSTMENT TO THE LEGAL SERVICES FUND, ACCOUNT NO. 110-4121-411-3015 (Continued from the meeting of February 14, 2008). Councilman Ferguson moved to, by Minute Motion, continue this matter to the meeting of March 13, 2008. Motion was seconded by Finerty and carried by a 5-0 vote. 16 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING FEBRUARY 28, 2008 XVI. OLD BUSINESS A. UPDATE ON THE CITY OF PALM DESERT, PALM DESERT REDEVELOPMENT AGENCY, AND PALM DESERT HOUSING AUTHORITY STRATEGIC OBJECTIVES (JOINT CONSIDERATION WITH THE PALM DESERT REDEVELOPMENT AGENCY AND THE PALM DESERT HOUSING AUTHORITY). Mayor Pro TemNice Chairman Spiegel moved to, by Minute Motion, receive and file the Update on the City of Palm Desert, Palm Desert Redevelopment Agency, and Palm Desert Housing Authority Strategic Objectives. Motion was seconded by Finerty and carried by a 5-0 vote. XVII. PUBLIC HEARINGS A. REQUEST FOR APPROVAL OF A PRECISE PLAN OF DESIGN, INCLUDING A CONDITIONAL USE PERMIT AND VARIANCE, TO ALLOW A 27,000 SQUARE -FOOT ADDITION TO THE EXISTING SAKS 5TH AVENUE AT THE EXISTING GARDENS ON EL PASEO AND DEMOLITION OF THE EXISTING EL PASEO VILLAGE (LOCATED BETWEEN SAN PABLO AVENUE AND LUPINE LANE), AND CONSTRUCTION OF A 72,474 SQUARE -FOOT, TWO-STORY RETAIL, OFFICE, AND RESTAURANT DEVELOPMENT WITH PARKING STRUCTURE, AND ADOPTION OF A MITIGATED NEGATIVE DECLARATION AS IT RELATES THERETO — SUBJECT PROPERTIES ARE LOCATED AT 73-545 EL PASEO (GARDENS ON EL PASEO, APN 627-261-006) AND 73-425 EL PASEO (EL PASEO VILLAGE, APNs 627-252-004, -005) Case Nos. PP 07-10. CUP 07-18. and VAR 07-02 (Davis Street Land Company, Applicant). Responding to question as to why the two projects were considered jointly, Associate Planner Ryan Stendell replied the off -set parking with the Saks 5'h Avenue expansion created a loss of parking spaces to one project, but those spaces could be added to the El Paseo Village project across the street. He said the two projects were co -dependant on each other. Mr. Ortega noted this was a public hearing item and once the presentation and testimonies were heard, the City Attorney would be providing a different recommendation at the end of the public hearing. Mr. Stendell stated the project before Council was expansion of the Saks 5'h Avenue project at The Gardens on El Paseo, demolition of the existing El Paseo Village, and reconstruction of approximately 72,000 square feet of mixed use retail, restaurant and office space. His intention with his 17 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING FEBRUARY 28, 2008 presentation was to cover the land use, zoning issues, and provide a broad description of the architecture. He noted the Applicant was anxious to address the Council to provide a more detailed architectural report upon completion of his presentation. In 1987 and later reaffirmed in the 2004 update of the General Plan was the Commercial Core Area Specific Plan. In that plan, high emphasis was put on the importance of El Paseo as a unique pedestrian -oriented boulevard. It was stressed that it remain on top of the high -end retail market throughout the Coachella Valley. It left staff always looking for the most innovative projects to go along the El Paseo corridor. The background on The Gardens was that in November 1995, the City Council approved The Gardens on El Paseo, a height variance totaling 44 feet on the building, and the associated parking depth to the rear of the property housing approximately 1,000 parking spaces. Sometime later the City participated in construction of the parking deck and was given a public parking easement over the entire structure for the participation. He illustrated the parking renderings on the display panel and explained the parking locations and building structures. The Applicant was currently requesting site plan approval only, and if approved, they will turn over the entitlements to Saks 5th Avenue. So at this time, the Applicant was looking for a blessing to expand and would later return with the specific design and architecture expansion plans. The expansion created a loss of 27 parking spaces, but staff will explain that those spaces were an acceptable loss based on the additional parking across the street at El Paseo Village. Staff had a chance to step back and evaluate the parking situation at The Gardens and felt that four spaces per thousand square feet was too much parking. Staff reviewed actual usage data and determined 3.25 per 1,000 square feet would provide sufficient parking and still have successful projects. At El Paseo Village, the proposed project is to demolish nine buildings comprised of 35,000 square feet and construction of 72,000 square feet of new mixed use retail. The Applicant proposed changing the topography of the existing site and excavate that grade change to create a flat ground surface to achieve a more balanced shopping experience for everyone. It will eliminate having stairs, which posed problems with current ADA issues. Responding to question about elevators, he said the project provided elevators, escalators, and manual stairs. Access to the site from Lupine Lane and San Pablo remained basically the same. Access to the upper deck was located south of the property, which allowed the ramps to be placed at the lowest point and provide the least impact to the adjacent residential properties; staff believed appropriate landscaping could mitigate it nicely. He said the Applicant held two neighborhood meetings as part of the process. One was held at the beginning of the process prior to the application to the City. The project received lots of praise, but at that time, no parking deck was being proposed. After staff identified that the project was short on parking and the parking deck would be necessary, the Applicant felt it was beneficial to meet again with the neighborhood to make sure they were aware of the addition of the parking structure. There was 18 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING FEBRUARY 28, 2008 concern as to how to mitigate the transition from the commercial property to the residential to the south. A lot of ideas were thrown around, such as lowering the deck further and providing dense landscaping with the planting of mature trees from the start. As a result of that meeting, the Applicant made adjustments and was able to lower the deck another foot and a half. There was no opposition to the parking deck or landscaping as presented at the Planning Commission Meeting. He said staff was prepared to use the 3.25 per 1,000 square feet model for the El Paseo Village, which was the same formula used at the existing Gardens and proven to work. The Applicant is required to provide 233 parking spaces but will actually provide 298 spaces. Councilman Ferguson noted it was 288 parking spaces if the 4 per 1,000 square feet formula was used. He recognized the Applicant would still have an excess at the 3.25- or 4-per thousand, which was a critical point to be made. Mr. Stendell agreed. He said either formula allowed the Applicant to give those spaces to the City to place wherever. Further responding, he explained that because of the off-street parking through the entitlement process, the City Council was allowed to modify the standards listed in the Ordinance. The 4 per 1,000 square feet model had been used as rule of thumb based on 20% restaurant use because there was no standard for mixed use. Staff found that the formula worked but could be reduced further based on the factual data collected. Staff was recommending the 3.25 per 1,000 model, and if approved, the site plan would be approved as presented. Councilman Ferguson asked if the lower 3.25 rate was approved by Council, if it would send a signal to future mixed use development that irregardless of where the project was situated, they could do the same. Mr. Stendell responded the 3.25 formula worked on El Paseo because of the high -end nature of the shopping. Further responding, he said the hotel had a different rate altogether. Councilman Ferguson was concerned the City would be lowering the bar for El Paseo indefinitely if the project was approved as proposed. Mr. Stendell replied it could be argued, but it was a question for the City Attorney to address. Councilmember Finerty asked for clarification of the staff report that stated parking required was 302 spaces, and she was now hearing the numbers 288 and 298. 19 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING FEBRUARY 28, 2008 Mr. Stendell apologized for the error as he failed to make the correction to the staff report. He said changes were made to the turning radius for vehicles. It created a Toss of four parking spaces, which brought the number down to 298. Further responding, he confirmed the formula addressed in the staff report was the 3.25 per 1,000, and the extra spaces were a bonus. Ms. Aylaian stated a study session took place about parking in the Commercial Core Area. She realized that discussion was not made part of the public record but would introduce it at this time. She said staff did an extensive analysis of parking throughout the El Paseo and President's Plaza areas. Staff gathered years' worth of historical data, and based upon the data analyzed, staff suggested returning to Council on future projects with recommendations based upon actual usage rather than the Zoning Ordinance, which did not address mixed use. The 3.25 per 1,000 square feet model was particular to this location. However, for areas west of President's Plaza on El Paseo, staff would make a different recommendation. Based on the historical data for The Gardens, staff felt the use of this particular project was identical to the parking needs of The Gardens, and the 3.25 per 1,000 formula was used for years. Responding to question, she said the data was collected by the managers of The Gardens on El Paseo, where they performed counts four times/day. Staff reviewed the data and learned in the month of March, which was the busiest month, at 2:00 p.m., the highest time of the day, there were still 15% vacant or available parking spaces. Staff believed the 3.25 formula would provide adequate parking for this project and still provide a 15% cushion. Further responding, she said the 3.25 per 1,000 would not be used to set a bar or standard for another project, unless it was an identical project in an identical setting. Councilmember Finerty asked if 298 was the required number of parking spaces needed based on the 4 per 1,000 noted in the staff report. Mr. Stendell responded staff would use the 3.25 per 1,000 model, which covered what was lost from the Saks expansion and still left an excess. Further responding, he confirmed the 298 parking spaces noted in the staff report was based on the 3.25 formula, which worked in the month of March. Responding to questions about the height of the buildings and the second -story walkway, he said the maximum height of the El Paseo Village building was 42 feet, and the maximum height at The Gardens was 44 feet. He confirmed that the corner elevation showed a second -story covered walkway all around the building. Councilman Ferguson stated that by using the 3.25 formula the Applicant would meet the 4 per 1,000 square feet requirement at El Paseo Village but would be 27 spaces short on the Saks expansion. However, staff proposed 20 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING FEBRUARY 28, 2008 to use the overage from the 3.25 formula to explain that the 27 spaces didn't really matter. But if the Applicant used the 4 per 1,000 formula, it would be 288 parking spaces, leaving 10 spaces available, assuming the City would allow them to swap them over to the Saks expansion, the Applicant would still be 17 spaces short. The real question for Council was, "Did it really matter?" Mr. Stendell responded the 72,000 square feet could be reduced up to 15% based upon the size of hallways, closets, elevator shafts, etc. He said if staff played with the numbers, those 17 spaces could be obtained. Responding to question about the economic study, Mr. McCarthy replied the City was looking at approximately $900,000/year in public revenues, which would be broken up between sales tax and tax increment to the Redevelopment Agency. Councilman Kelly stated it seemed to him more golf carts were used in south Palm Desert, and a combination of golf cart/hybrid spaces could demonstrate the City's encouragement to use that type of vehicle. Mr. Stendell couldn't recall if golf carts had been proposed but knew there were several golf cart spaces at The Gardens and would be happy to introduce them at the El Paseo Village. He said the Applicant could address that issue in more detail. Mayor Benson declared the public hearing open and invited testimony in FAVOR of or in OPPOSITION to the project. MR. MICHAEL BROWN, represented Wessman Development located on Palm Canyon Drive, Palm Springs, CA, and owners of San Pablo Village located across the street from the proposed project, which currently had Starbucks and Trio as active tenants. He noted they were currently seeking a restaurant tenant for the adjacent empty building. He said the current center had out -lived its design and had become obsolete, especially if one looked to what was happening on El Paseo and other locations, i.e., the new Polo and Gucci stores. The proposed plan was replicating the success of The Gardens, which will help activate that street portion of El Paseo into a more pedestrian friendly experience. He said the plans were consistent with the existing and adjacent properties, and more importantly, will help facilitate a new entrance to El Paseo from San Pablo, which was desperately needed to maintain El Paseo as a primary shopping destination. He said in every business venture, success reaped success and believed the development team had proven its capabilities with the successful repositioning of The Gardens. He congratulated the Applicant on a wonderful project. 21 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING FEBRUARY 28, 2008 MR. ROBERT PERLMUTTER, Managing Partner with Davis Street Land Company, Evanston, IL, stated the company was a privately held development, owner and operator of high quality retail properties. The company currently had properties in Chicago, Nashville, St. Louis, and Palm Desert. They've been the owners of The Gardens on El Paseo since 2001, and in 2005 they purchased the proposed property known as El Paseo Village. The intention with the project was to redevelop the center and make it complimentary to The Gardens. Some of the key elements that made The Gardens successful were the high level of improvements, retail fronting on El Paseo, restaurants on the corners that brought activity to the second level, and office/service space on the second floor. They hoped to replicate the key elements at the El Paseo Village and make it fit within the content of the neighboring properties. Equally important was to bring new retailers and restaurants in to maintain the vibrancy of the El Paseo district. He said they were cognizant of the residential properties to the south and did everything possible during the planning and approval process to communicate and modify their plans to minimize the impact to those properties. He introduced Mr. Gary Dempster with Altoon and Porter, who were the original architects for The Gardens on El Paseo. MR. GARY DEMPSTER, partner with Altoon and Porter Architects, complimented Councilman Ferguson on the City's website because it was easy to navigate and more informative than any other city website. He reiterated they were the original architects for The Gardens and had a long history with the street. He'd like to think he had a small part in re -energizing it and making it the preeminent shopping district in the Valley. He talked at length about the development process and explained in detail the renderings for the project. Responding to questions about the project, he identified and described the location of the two elevators, walkways, the 16,000 square feet of office space, elevation, water feature, setbacks, and parking structure. He worked with staff on location of delivery and collection of trash and recyclables to the City's satisfaction in order to accommodate concerns voiced by residents about the noise. He said they worked at great lengths with the Architectural Review Commission to make sure they were cognizant of the incredible sunlight in the desert and the fact that at different times of the year, the shadowing and color of sky and sun did great things to the building. He hoped the renderings of the buildings illustrated the edges that catch the shadows and the light reflected on them. Mayor Pro Tem Spiegel asked the Applicant to make certain the music from the restaurant would not be heard to the rear of the facility, because the sound would feed right back. 22 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING FEBRUARY 28, 2008 MR. PERLMUTTER replied it was one of his frustrations with the current center, which they inherited. He understood the concern and agreed to monitor the music. He didn't believe that was an issue at The Gardens. Responding to an earlier comment about golf carts, he said there were 58 golf cart spaces in the parking garage at The Gardens that were moderately used. He said spaces could be reallocated and possibly pick up a couple of full-size spaces at The Gardens. Councilman Ferguson stated a new store opened across from the Westfield Shopping Town, and next to the handicap parking were preferred parking spaces available for hybrid vehicles. He felt that sent a tremendous message from the City, whether it was a golf cart or hybrid parking space. Councilman Kelly said a combination golf cart/hybrid spaces would probably get more use, and the developer could be considered a hero for being the first one to do it. Councilmember Finerty stated The Gardens had a lot of open space in the front, and the renderings showed a long block of a two-story building. MR. PERLMUTTER replied The Gardens was a full block development with the back half covered by the parking deck and the Saks expansion, which was in essence two malls, one off the street and the other in the interior with the green space and common area. He said The Gardens was more unique to the street and more the exception than what was really occurring on the street, which was primarily retail. It was broken up many times because of the different ownerships on the different blocks as opposed to a comprehensive design. Councilmember Finerty stated the Applicant had indicated in the staff report that in order to attract the high -end stores on El Paseo, the market demanded interior ceiling heights consistent with the existing Gardens. From the presentation given by the Architects, she learned that part of the second story was office space. She asked about the height needed for high -end retail stores compared to the height needed for office. MR. PERLMUTTER responded a typical retail floor -to -floor was 18 feet. A retailer would typically look for a ceiling height of 12-14 feet. As a rule of thumb, it was two feet for the structure and two feet for mechanical use, which allowed for a 14 feet ceiling height. An office user looked for 9-1/2 to 10 feet of ceiling height, which meant their floor -to -floor might be 14 feet. Councilmember Finerty said if the retail floor -to -floor was 18 feet, and the office floor -to -floor was 14 feet, that added up to 32 feet. 23 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING FEBRUARY 28, 2008 MR. PERLMUTTER agreed. He said Mr. Stendell had previously quoted 42 feet was the maximum height, which was for the corners of the second floor, similar to The Gardens where Tommy Bahamas or Pacifica have a restaurant. The corners for both levels are 18 feet floor -to -floor, equaling 36 feet, and the remaining six feet was for architectural features. The parapet screened mechanical equipment, and the architectural features gave the building some character. Responding to question about the height of the building, Mr. Dempster confirmed the average height of the project was 40 feet, with the exception of the corners of the building that included a parapet. Councilman Ferguson asked if the project was within the structure of the City's new Energy Efficiency Ordinance for commercial reconstruction. MR. DEMPSTER replied it was. Councilmember Finerty asked if the project would be LEED Certified. MR.DEMPSTER responded he couldn't guarantee they would be certified because he's uncovered some challenges. When applying a mechanical system controlled by individual tenants, it was difficult to make sure it would be LEED compliant, but he would certainly strive for it. MS. SUSAN STEIN, Fashion Editor of Palm Springs Life Magazine and Regional Director of Fashion Group International, addressed the Council to speak on the subject of needs and benefits for more luxury and excitement on El Paseo. She said the biggest challenge realized was that fashion was always changing, and the Internet had actually changed trends every hour instead of every six months. Therefore, the consumer has become more informed than ever before about what was out there. She said it would be a benefit to have more options, vendors, designers, etc., available to the consumer. She said there was a feeling of excitement about fashion in Palm Desert, with Fashion Week El Paseo coming up. Fashion Week was on it's third year, and they've gone from one event in the first to eight in the third. Many have called wanting to get involved with the event, and in speaking with consumers, she's heard about the excitement over addition of the Gucci and Ralph Lauren stores on El Paseo. MS. SARAH O'FLYNN, Marketing Director of The Gardens on El Paseo, Member of the Chamber of Commerce, and Chairman of the City of Palm Desert Marketing Committee, said Barbara DeBoom had to leave, but left her statement to be read to the Council. It read: "My name is Barbara DeBoom, and I serve as President CEO of the Palm Desert Chamber of Commerce. On behalf of the Board of Directors of your Chamber, I am here to support 24 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING FEBRUARY 28, 2008 the expansion of The Gardens on El Paseo, a.k.a. El Paseo Village. We reviewed the renderings at our recent board meeting, and we're pleased to see the architectural design. It's in keeping with the beauty of the desert, and we certainly welcome the economic impact that additional retailers and restaurants will have on the City's coffers." MR. MICHAEL SHIMER stated he was representing the El Paseo Business District Improvement Board. He recalled moving to the desert 13 years ago and being told to stroll El Paseo, the hub of Palm Desert in the month of June. At that time, he found eight stores open and noticed there were a lot of torn awnings, poorly painted buildings, with not much activity. Fast forward to 2007, everyone will agree that El Paseo is the hub of Palm Desert. It's been a credit to the El Paseo community, giving back to the community by way of the charitable events done on a yearly basis and opening up to public events. He believed Westfield Development had stirred up other developers on the street to improve their blocks or buildings. He said change was inevitable, and The Gardens had become a great neighbor for the neighborhood. MR. JEFF BYRON, Vice President and General Manager at Saks 5th Avenue, stated it's been a privilege to be part of this community and to have grown with it for the past 10 years. In the past three years, he's had the opportunity to over -achieve their expectations, necessitating the growth of their store. He believed the community was ready for the expansion because of the divine impact it had on the community and through the resources given back to the community, not only in taxes but also in charitable contributions. MR. DAVID FLETCHER, Senior Vice President of Churchill Management stated he would encourage the Council to support the expansion and proposed remodel of the El Paseo Village site. He said his company was the "George Washington" of El Paseo and had worked for many years to improve El Paseo to the creative world -class shopping destination that it is. The Davis Street Land Company, along with their Architects, shared this vision, and with Council support, a dream had been made a reality. The fact that Saks 5`h Avenue wished to expand its store in this community spoke to the success of the collective efforts made. The proposed project for the new site at the existing El Paseo Village was clearly a substantial improvement and in keeping with the upscale feel that had been set as a bar for El Paseo. MR. ALIBABA FARZANEH stated he moved from Chicago 28 years ago. He's seen El Paseo grow with the help of the Council. It's been a very aggressive development and was impressive to see that in the Coachella Valley with nine cities, there was one shopping area called El Paseo. It was also impressive that Saks 5th Avenue was enlarging their facility. He said last 25 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING FEBRUARY 28, 2008 year his family did 80% of their shopping on El Paseo. He hoped this project would get a 100% vote. He recognized the project had the support of the neighborhood, which was important because some neighborhoods didn't like change, but change was inevitable. He knew developers went through a lot of problems and expenses to bring a project to serve the people of this area. He was proud to live in Palm Desert, enjoyed shopping on El Paseo, and the progress should be celebrated. With no further testimony offered, Mayor Benson declared the public hearing closed. Councilman Ferguson stated he met representatives of Davis Street Land Company back in May of 2006 when the concept was first presented to him. He's had almost two years to chew on it and thought about it every time he drove by that corner. He worked with the other two developers across the street, and a hotel developer down the street, and it had always been in his mind that Davis Street Land Company would be the first of all the dominoes to start dropping. He said The Gardens went up in 1995, and it was starting to have the impact, reciprocally, of the development the City hoped to see, and Davis Street Land Company was the first. He said the good thing about being the first was that it's considered new, different, and with plenty of opportunities to be the hero in the City. The second part about being the first, is that everyone will want to follow suit. He said he had a list of things of critical importance to the City to go through, much of which was already addressed. However, legally he had difficulty with the two variances being requested. According to City Ordinance, a variance was granted under a unique set of circumstances that would deprive the owner of any economical value of the property, which he didn't believe was the case in either variance request. Historically, the City did not grant variances because they were impossible to meet. He was nervous agreeing that exceeding the height limit was a variance, from the City's standard and the "sunshine triangle" was a variance, because they weren't. He recognized the City was getting something spectacular for which Council was willing to make some exceptions. He noted the City had an exception process in the City's Code, although he had always been somewhat suspicious about it's legality. What he would like to do in this case, as it did with The Gardens, was to simply do a development agreement. It would indicate what the City was granting because of what the developer was giving back to the City, and no one thereafter could come, like developers down the street or down the road, and say, "We have a vested right to 42 feet because Davis Land Street Company did it" or "We have a vested right o obliterate the sunshine cone on the sidewalk, because Davis Street Land Company did it." With this project as a precedence, it was not the way he wanted the lead domino in the development to occur up and down El Paseo. He said he spoke briefly with the City Attorney before the meeting and believed this project could be converted to a development agreement with minimal disruption to the 26 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING FEBRUARY 28, 2008 Applicant. It would provide a great sense of security, in his mind, to the future of the City and how it was going to build up El Paseo, especially when it concemed heights. He had six items he wished to address regarding the project. First, he was delighted the average height was between 36 and 40 feet, not 42 . The Gardens was the view cone in which the City wanted to see development in the future. The Gardens does have a lot of open space in front, but that 44 foot height was in the middle of the block, and as noted by the Applicant, there was an alluvial fan with a considerable drop-off. So what can't be seen looking north from Shadow Mountain because of The Gardens was considerably more than what one will be unable to see from this development, which went all the way up on the frontage of El Paseo and was much shorter. Although it's a variance, he was delighted to leam the variance was as low as 36 feet. Secondly, the renderings illustrated lush foliage, which was similar to the renderings on The Gardens back in 1995, where the City was promised it would be lush and green, but it never happened. He thought probably the size of the planters were too small or the irrigation was inadequate. The renderings for this project depict lush foliage, and he personally would like the Applicant to meet with the City's Landscape Manager to make sure it happened with the expansion and the El Paseo Village. His third item dealt with parking, which was an issue discussed in a Study Session where it was felt that developers ought to be responsible for their own parking, and it's exactly what Davis Land Street Development did with this project by including a two-story parking structure. He stated that if 12 years of operational history at The Gardens established that 3.25 was more than sufficient, he was willing to try it through the auspices of a development agreement. He reiterated that 3.25 was not the new standard in Palm Desert, but that a project would be looked at site -by - site -specific. He agreed with Councilman Kelly that preferential hybrid parking was huge. He shared that he had just brought his wife an SUV for Valentine's Day, and she thought it was wonderful that people got recognized for making an investment in the environment, and somehow rewarded. He said the City was conscientious about the environment and it would be lovely if the developer could incorporate hybrid parking spaces. With regard to the architecture, he affirmed he liked the project and that it would be the first building he knew of that had a second -story terrace where one could freely walk from store to store. It will not only let people see pedestrian traffic on the ground floor, but also the activities at those open gazebos with the restaurant. He said it will add a feel and a buzz to Palm Desert that he hoped would draw in more of the pedestrian activity that was desperately needed. In summary, he stated if this project did become the prototype along the lines he just described, he would be proud to vote for it. Mayor Pro Tem Spiegel, responding to Councilman Ferguson's comment about foliage on the second level at The Gardens, stated the plants died, and it was very difficult to grow something on top of concrete in the summer. 27 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING FEBRUARY 28, 2008 He said that after 32 years in retailing, The Gardens was the keystone of El Paseo, and it was what helped develop El Paseo. The El Paseo Village was dead in the back and nothing could be sold, except for one restaurant. He understood all of the agreements had been taken care by the developer to assume the whole area and begin tearing it down this fall if approved. He looked forward to having it be done, because it was needed. He said Palm Desert was the center of the Valley, and he wished to keep it that way. Mr. Erwin asked for clarification that the development agreement would contain only the conditions that were suggested in the staff report, plus the ones that Councilman Ferguson had just mentioned. Councilman Ferguson stated he understood a development agreement, in a sense, meant the City gave something it didn't need to give, and in retum, got something that it didn't necessarily, or wouldn't necessarily require. Some of those things were like the hybrid vehicles, landscaping, and parking structure. However, if the Landscape Manager said to the developer it couldn't be done, that would be a different story. He didn't think the items he mentioned were too onerous, but they were additional conditions that were not stated in the current report. Mr. Erwin agreed and felt there was sufficient justification for a development agreement. Mayor Pro Tem Spiegel moved to approve the project, subject to the drafting of a development agreement acceptable to the City Attorney and to the Mayor for her signature, incorporating conditions specified in the staff report along with the following: 1) Height of 36-40 feet with 42 feet for the parapets on either end only; 2) second -story foliage to be appropriate for the application; 3) parking structure with a ratio of 3.25 spaces per 1,000 and full parking reciprocity between the structures at The Gardens and El Paseo Village; 4) designated preferential hybrid parking spaces; 5) special attention to the pedestrian friendly second -story terraces. Councilman Kelly stated it seemed to him this project would move things forward, and he was impressed with the economic impact to the City. With the revenue collected, the City could probably hire a dozen police officers and keep providing the kind of services the City offered. He said this particular project would keep El Paseo going forward, keep a Beverly Hills - type shopping center and attract people to our City. Councilmember Finerty was impressed with the $900,000 anticipated in public revenues with the sales tax and tax increment but was concerned about the height. She learned this evening the height varied from 36- to 40 feet, and the parapets at each corner of the building were 42 feet, which made her feel more comfortable. The other concern was massing of the 28 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING FEBRUARY 28, 2008 building. It was mentioned that The Gardens was more of the exception, and it is because of the open space in front. She said it was unfortunate the open space would be sacrificed. She wondered if the City wanted a village - type atmosphere, or this wall-to-wall with 36- to 42-feet mass of building with no open space. She preferred the open feeling of The Gardens and had hoped that it was going to be replicated with The Gardens II. She agreed it was tough to provide all the foliage, but if it can be accomplished, she would applaud it. She said the City hoped for LEED Certification, because it was set on energy efficiency and hoped the applicant would make a strong effort to go in that direction. Mayor Benson stated if she had her druthers, she wouldn't want to see the proposed building on El Paseo. She said The Gardens had really set a precedence for what was to follow along the street and had certainly been successful. She recognized, however, that her druthers weren't necessarily for the benefit of the community and that this expansion was needed. But with the size of the lot and what the developer had to work with, she couldn't see how it could be any more open than it is. She said it was sad, and it changed the atmosphere, but guessed it was a sign of the times for these things to happen. What one thought was a sleepy little place and wished to keep it that way didn't pay for the police and fire or staff to run the City. She had to consider what it did for the City of Palm Desert, which was what she's always done. She applauded what was proposed and hoped the project will stay within the proposed height limits. She said she was pretty good at judging the height limits, and if it was off a half inch, the developer will know it. She said if anything could be done on the corners to lower the 42 feet height, everyone would appreciate it. She didn't believe in parapets for just decoration purposes. Councilman Ferguson he had forgotten that LEED Certification was also on his list. He said the City had the first LEED Certified University of California Campus in Palm Desert, the very first Califomia State University Campus in Palm Desert, and will have the first community college at College of the Desert that was LEED Certified. He said Palm Desert was one of the first municipal govemment to have LEED Certified buildings in the desert and was very quickly becoming internationally known for its conscientiousness, vis a vis energy and the environment. He knew the architects probably hadn't penciled it out and that there were many levels of LEED Certification, but if the Applicant could come back with a development agreement for the Mayor's review that it included some level of LEED Certification for at least the owner -operated or authorized parcels, understanding tenants may want to do different things, but at least for the main structure. The last item was to have full reciprocity among parking structures. He doubted that it made a difference who parked there, but it was one more item to support the development agreement. 29 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING FEBRUARY 28, 2008 Councilman Ferguson seconded the motion, further requesting that an earnest attempt at LEED Certification for as much of the project as is feasible be made. Motion carried 4-1 with Finerty voting NO. XVIII. REPORTS AND REMARKS A. CITY MANAGER 1. Consideration of Temporary Use Permit (TUP) Application by La Mesa RV for Special Show at Westfield Palm Desert. Mr. Ortega stated this item was added to the Agenda for consideration because a Temporary Use Permit would normally be approved with conditions. However, there was a specific prohibition the City Council established in 2003 against having these events at the mall. He noted the Manger for Westfield was present and would like to address the City Council regarding this item. MR. BRENT WISE, General Manager at Westfield in Palm Desert, stated he was approached by La Mesa RV to have an RVs show at the north parking lot of the mall. He said he conducted his own research and found it was a quality operation. He understood the Council and City Manager had concerns because some past event got out of hand with aesthetically unpleasing advertising. He guaranteed he would control the event. He provided a map of the parking lot and the area where the event will take place. It will include about six RVs ranging from reasonable to Class -A style RV/Motor Homes. The vendor was given permission to park one RV at the entrance in front of Westfield to draw attention. He thought it was a fair and reasonable request. The vendor was informed that no balloons or additional signage would be allowed. He said the vendor provided references, and he Teamed that it was a quality production. The event was only for three days, March 12-16, 2008. The vendor guaranteed all proceeds from the sales would go to the City. Responding to question about inflatable balloons, he said he would police the event himself to make sure they're not used. Further responding, he confirmed the point of sale belonged to the City of Palm Desert and agreed to report back to the City with the results of the event. Councilman Ferguson moved to, by Minute Motion, approve the TUP, subject to conditions of: 1) No balloons or other inflatable advertising devices but allowing one RV to be parked at the entrance nearest the event; 2) point of sale for any RVs sold is the City of Palm Desert; 3) Westfield reporting back to the City with results of the event. Motion was seconded by Spiegel and carried by a 4-0 vote, with Kelly ABSENT. 30 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING FEBRUARY 28, 2008 2. Request for Approval of Helicopter Landing in Conjunction with a Special Event - Palm Desert Youth Sports Association's Baseball Season Kick-off and Induction of Don Sutton Into the Legends Hall of Fame at Civic Center Park Fields, Saturday, March 15. Councilman Ferguson noted the Palm Desert Youth Sports Association was having their Kick-off, Saturday, March 15. They would like to do it in conjunction with the induction of Don Sutton into the Legends Hall of Fame. They've been working with the Sheriffs Department to try to bring Mr. Sutton by helicopter, similar to what the City did with Ralph Kiner five or six years ago. Mayor Pro Tem Spiegel moved to, by Minute Motion, approved the helicopter landing in Civic Center Park for the subject event on Saturday, March 15. Motion was seconded by Finerty and carried by a 4-0 vote, with Kelly ABSENT. B. CITY ATTORNEY None C. CITY CLERK None D. PUBLIC SAFETY o Fire Department Chief Dawson commented that in last Sunday's Desert Sun, there was an article about Fire Department response times in the Coachella Valley. He felt the article was very good as a result of several Desert Sun staff members spending about three months gathering accurate information and spending time at Palm Desert's Town Center Station on ride-alongs to verify the process and statistics. Secondly, he felt it was very important to recognize those who were responsible for the excellent response times in the City — the City Council's and City Manager's support for public safety and services, with the three stations located as they are and the staffing and equipment to man them. He was very proud of the City of Palm Desert for this. Mayor Benson said the City Council would like to congratulate the Fire Department too, as they were also very proud of the article and of what the City works hard to accomplish for its constituents. 31 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING FEBRUARY 28, 2008 o Police Department Mrs. Gilligan introduced Palm Desert Police Department Sergeant Robert Perdue, who was in attendance at today's meeting filling in for Assistant Chief Taylor. She went on to say Sgt. Perdue is also responsible for the success of the City's Citizens On Patrol Program (COPS). E. MAYOR AND MEMBERS OF THE CITY COUNCIL o City Council Reauests for Action: 1. Resurfacing Mesa View Drive — Councilmember Finerty said she'd been asked when Mesa View would be resurfaced. Mr. Greenwood responded this project had been on the City's schedule for at least two years but has been delayed waiting for Coachella Valley Water District (CVWD) to repair/upgrade the water line there. However, within the last several weeks, CVWD has indicated they are five years out from working on Mesa View, so he felt the City should go ahead and resurface it. Coincidentally, if the City Council so desired, he said the City has unallocated money in the current budget in an amount that would cover this project, and it could be accomplished in a couple of months. Upon inquiry, Mr. Ortega said staff would bring forward a recommendation to go ahead with the project. 2. Traffic Sianal at Highway 74/Mesa View Drive — Councilmember Finerty asked when a signal would be installed at this intersection. Mr. Greenwood answered a signal had been proposed at Highway 74 at Mesa View. He said when the City built the signal at Highway 74 and Shadow Mountain Drive, Caltrans was supposed to take over the signal at Mesa View. Now that the City was acquiring Highway 74, which should happen within the next two weeks, the signal would be the City's responsibility. He went on to say the project was not currently in the City's Five-year Signal Program, so it would need to be added and prioritized, adding that staff was recently requested to move forward on the Frank Sinatra Drive/Portola Avenue traffic signal. 32 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING FEBRUARY 28, 2008 Councilman Ferguson proposed reviewing all such capital projects during the coming budget process in order to better prioritize them all. Mr. Greenwood agreed to bring a staff report to the next meeting on the recommendations for Mesa View. 3. National Park & Recreation Association Facility Design School — Mayor Pro Tem Spiegel stated that the subject program was being held August 4-5, 2008, in Kansas City, and he felt it would be very timely for the City of Palm Desert in its goal to provide additional recreational facilities. He said all City Councilmembers were invited to participate, and it will be included in the FY 2008-2009 budget. He added that both he and Parks & Recreation Services Manager Janis Steele were already planning to attend. 4. Historical Society— Mayor Benson noted the Historical Society had requested some temporary storage space in one of the vacant office spaces at Portola Community Center from now until the end of May. She said they've been collecting photos in order to produce a book and needed extra space to store those items for a short time. Mrs. Gilligan said staff was prepared to make the space available for the next four months. 5. Aspen Accord — Councilman Ferguson said he, his wife, and Mr. Ortega would be attending a conference in Aspen, attempting to get more of the $14 million funding for the Energy Program, and he wanted to ensure it was in the budget and the travel authorized. Mr. Ortega said the resolution adopted by City Council specifically authorized travel by the City Council for this purpose. Additionally, he said while it wasn't formally included in the resolution, City Council also authorized the City Manager to participate in the conference. Mr. Gibson and Mrs. Klassen confirmed that the out-of-state travel request had been included in the current budget. 33 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING FEBRUARY 28, 2008 o City Council Committee Reports: 1. Palm Desert Chamber of Commerce — Mayor Pro Tem Spiegel reported that since June 2007, the Palm Desert Chamber of Commerce has added 46 new members, which he believed was a dramatic statistic given the current state of the economy. He congratulated the Chamber on this accomplishment. 2. Eneray. Environment & Economic Opportunities Summit — Mayor Benson said when she was at a CVAG meeting last week, officials were advised to save the date of April 26 for the subject event. She said formal notices will be sent out later on. o City Council Comments: 1. The Desert Sun — Councilman Ferguson also complimented The Desert Sun regarding the article showing Palm Desert home sales were better in January 2007 than January 2006, contrary to all the doom and gloom reporting about foreclosures. He also complimented the newspaper for checking individual fire stations to see what their actual response times were, revealing that Palm Desert's were the best, and he appreciated that this information was shared with readers. 2. Colleae of the Desert (COD) — Mayor Pro Tem Spiegel reported that COD President Jerry Patton would be honored in an inaugural -type ceremony on March 11 from 5:30 p.m. to 7:30 p.m. at the McCallum Theatre. He said all City Councilmembers were welcome at the event. XIX. ADJOURNMENT Upon motion by Spiegel, second by Finerty, and 4-0 vote of the City Council, with Kelly ABSENT, Mayor Benson adjourned the meetir}g-fit 6:04 p.m. ATTEST: RA E LE D. KLASSEN, CITY CLERK PALM DESERT CITY COUNCIL .BENS• MAYOR 34