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HomeMy WebLinkAbout2010-04-22MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING THURSDAY, APRIL 22, 2010 CIVIC CENTER COUNCIL CHAMBER 73510 FRED WARING DRIVE, PALM DESERT, CA 92260 I. CALL TO ORDER - 3:00 P.M. Mayor Finerty Convened the meeting at 3:02 p.m. II. ROLL CALL Present: Councilmember Jean M. Benson Councilman Richard S. Kelly Councilman Robert A. Spiegel Mayor Cindy Finerty Excused Absence: Mayor Pro Tem Jim Ferguson Also Present: John M. Wohlmuth, City Manager/RDA Executive Director David J. Erwin, City Attorney Justin McCarthy, ACM for Redevelopment Rachelle D. Klassen, City Clerk Russell Grance, Director of Building & Safety Lauri Aylaian, Director of Community Development Paul S. Gibson, Director of Finance/City Treasurer Frankie Riddle, Director of Special Programs Andrew Shouse, Asst. Chief, Palm Desert Police/Riverside Co. Sheriffs Dept. Grace L. Mendoza, Deputy City Clerk III. ORAL COMMUNICATIONS - A (CLOSED SESSION ITEMS) None IV. ADJOURN TO CLOSED SESSION Request for Closed Session: Conference with Real Property Negotiator pursuant to Government Code Section 54956.8: MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 22, 2010 1) Property: APN 628-130-015 Negotiating Parties: Agency: John M. Wohlmuth/Lauri Aylaian/City of Palm Desert/ Palm Desert Redevelopment Agency Property Owner: Barracuda, LLC Under Negotiation: x Price x Terms of Payment 2) Property: APN 628-130-008 Negotiating Parties: Agency: John M. Wohlmuth/Lauri Aylaian/City of Palm Desert/ Palm Desert Redevelopment Agency Property Owner: David Nelson Under Negotiation: x Price x Terms of Payment 3) Property: APNs 694-190-063 and -065 Negotiating Parties: Agency: John M. Wohlmuth/Justin McCarthy/City of Palm Desert/ Palm Desert Redevelopment Agency Property Owner: Wilson & Johnson Under Negotiation: x Price x Terms of Payment 4) Property: Lease Property - 73-470 El Paseo, Suite No. 13, Palm Desert (APN 627-202-010) Negotiating Parties: Agency: John M. Wohlmuth/Justin McCarthy/City of Palm Desert/ Palm Desert Redevelopment Agency Property Owner: El Paseo Square, LLC 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 Public Employment pursuant to Government Code Section 54957: Title of Position: City Manager Upon a motion by Spiegel, second by Benson, and 4-0 vote of the City Council, with Ferguson ABSENT, Mayor Finerty adjourned the meeting to Closed Session at 3:03 p.m. She reconvened the meeting at 4:00 p.m. V. RECONVENE REGULAR MEETING - 4:00 P.M. A. REPORT ON ACTION FROM CLOSED SESSION. None 2 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 22, 2010 VI. PLEDGE OF ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA - Councilman Richard S. Kelly VII. INVOCATION - Mayor Cindy Finerty VIII. ORAL COMMUNICATIONS - B None IX. AWARDS, PRESENTATIONS, AND APPOINTMENTS A. PRESENTATION OF PROCLAMATION DECLARING THE MONTH OF APRIL 2010 AS "CHILD ABUSE PREVENTION MONTH" IN THE CITY OF PALM DESERT. On behalf of the City Council, Mayor Finerty presented the proclamation to Mr. Jim A. Powell, Mental Health Services Supervisor with the Substance Abuse Program. MR. JIM A. POWELL stated he was with Prevent Child Abuse Riverside County a 501(c)(3) non-profit organization. He said they were certified by the Riverside County Board of Supervisors each year to be the designated lead agency coordinating the efforts of child abuse prevention. He noted that one in four girls and one in six boys will be sexually abused by the age of 18. Current statistics showed that one in five children on the Internet will be sexually solicited. He encouraged families and parents to talk about the issue, because child abuse was preventable. He provided a supply of enamel pins, posters, and bookmarks and hoped people would display them year-round to keep everyone aware. B. PRESENTATION OF PROCLAMATION DECLARING THE MONTH OF MAY 2010 AS "MENTAL HEALTH MONTH" IN THE CITY OF PALM DESERT. On behalf of the City Council, Mayor Finerty presented the proclamation to Mr. Mark Miller with the Desert Regional Mental Health Board. MR. MARK MILLER stated he was previously a law enforcement representative for the City of Indio, but now served on the Mental Health Board. He said the board's goal was to remove the stigma attached to people with mental illness, because the disease had no age or racial barriers and it can strike across the board. He said raising awareness and helping those who suffered with mental illness was one of the main goals. He 3 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 22, 2010 thanked the Council on behalf of the Desert Regional Mental Health Board and accepted the Proclamation recognizing the month of May as Mental Health Month in the City of Palm Desert. C. PRESENTATION OF PROCLAMATION DECLARING THE MONTH OF MAY 2010 AS "BUILDING SAFETY MONTH" IN THE CITY OF PALM DESERT. On behalf of the City Council, Mayor Finerty presented the proclamation to Director of Building & Safety Russell Grance. Mr. Grance thanked the City Council for affording the Department to celebrate "Building Safety Month." He said it was the first time in 30 years that a whole month was recognized instead of just one a week. He thanked the Council for affording staff to provide safety for all Palm Desert residents. X. CONSENT CALENDAR A. MINUTES of the Regular City Council Meeting of April 8, 2010. Rec: Approve as presented. B. CLAIMS AND DEMANDS AGAINST THE CITY TREASURY - Warrant Nos. 209, 213, and 214. Rec: Approve as presented. C. CITY COMMITTEE AND COMMISSION MEETING MINUTES: 1. Landscape Beautification Committee Meeting of January 20, 2010. 2. Parks & Recreation Commission Meeting of January 5, 2010. Rec: Receive and file. D. LETTER OF RESIGNATION from Verna Smith - Housing Commission. Rec: Receive with very sincere regret. E. RESOLUTION NO. 2010 - 23 - A Resolution of the City Council of the City of Palm Desert, California, Setting Forth its Findings and Authorizing the Destruction of Files from the Code Compliance Department that Have Been Digitally Imaged (Files Dated 2004). Rec: Waive further reading and adopt. 4 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 22, 2010 F. REQUEST FOR APPROVAL of Amended Palm Desert Country Club Neighborhood Park (Joe Mann Park) Lease (Contract No. C16152). Rec: D ,;, t Country Club By Minute Motion, continue item to date uncertain. G. REQUEST FOR ACCEPTANCE of Work for Contract No. C28990 — 2009 Curb Ramp Modification Project (Project No. 753-09) (Simon Contracting, Inc., 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. H. REQUEST FOR AUTHORIZATION to Release the Security for Tract No. 34391 (Kingston Court), Accept Replacement Security, and Authorize the Mayor to Execute the Replacement Subdivision Improvement Agreement (Palm Desert Terracina, LLC - former Applicant) (KB Home Southern California - new Applicant). Rec: By Minute Motion, authorize release of the previous security for Tract No. 34391 (Kingston Court), accept replacement bonds, and authorize the Mayor to execute the replacement Subdivision Improvement Agreement therefor. I. REQUEST FOR RATIFICATION of the New City of Palm Desert Emergency Operations Plan — Parts I & II. Rec: By Minute Motion, ratify the new City of Palm Desert Emergency Operations Plan that is based on the new National Incident Management System (NIMS) requirements approved by the City Council in 2009. J. CONSIDERATION of Legislative Review Committee Action on AB 223 (Ma) — Tattoo and Body Art Parlors. Rec: By Minute Motion, concur with the action taken by the Legislative Review Committee at its meeting of March 30, 2010, and direct staff to prepare a letter of support for the Mayor's signature with regard to AB 223 (Ma). 5 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 22, 2010 K. CONSIDERATION of Legislative Review Committee Action on AB 1822 (Swanson) — Massage Therapy. Rec: By Minute Motion, concur with the action taken by the Legislative Review Committee at its meeting of March 30, 2010, and direct staff to prepare a letter of support for the Mayor's signature with regard to AB 1822 (Swanson). L. CONSIDERATION of Legislative Review Committee Action on AB 1867 (Harkey) — Land Use. Rec: By Minute Motion, concur with the action taken by the Legislative Review Committee at its meeting of March 30, 2010, and direct staff to prepare a letter of support for the Mayor's signature with regard to AB 1867 (Harkey). M. CONSIDERATION of Legislative Review Committee Action on AB 2439 (Nestande) — Mobile Home Parks. Rec: By Minute Motion, concur with the action taken by the Legislative Review Committee at its meeting of March 30, 2010, and direct staff to prepare a letter of opposition for the Mayor's signature with regard to AB 2439 (Nestande). N. PRELIMINARY RE -CAP of 2010 Fashion Week El Paseo. Rec: By Minute Motion, receive and file the Preliminary Re -cap Report for 2010 Fashion Week El Paseo. Upon a motion by Kelly, second by Spiegel, and 4-0 vote of the City Council, with Ferguson ABSENT, the Consent Calendar was approved as presented. XI. CONSENT ITEMS HELD OVER None XII. RESOLUTIONS None 6 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 22, 2010 XIII. ORDINANCES For Introduction: None For Adoption: A. ORDINANCE NO. 1212 - AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, AMENDING SECTION 8.40.080 AND SECTION 8.40.100 OF THE CODE OF THE CITY OF PALM DESERT, CALIFORNIA—RECREATIONAL VEHICLES ON PRIVATE PROPERTY. Mr. Erwin stated this item was a correction and there had been no change. Councilman Spiegel moved to waive further reading and adopt Ordinance No. 1212. Motion was seconded by Kelly and carried by a 4-0 vote, with Ferguson ABSENT. XIV. NEW BUSINESS A. REQUEST FOR AUTHORIZATION TO PAY TITLE FEES TO FIRST AMERICAN TITLE COMPANY AND LAWYERS TITLE COMPANY AS PART OF THE ENERGY INDEPENDENCE PROGRAM (EIP) (JOINT CONSIDERATION WITH THE PALM DESERT REDEVELOPMENT AGENCY). Redevelopment Manager Martin Alvarez stated approval of this item will allow the City/Agency to reimburse title companies used for Phases I and II as part of the Energy Independence Program (EIP). Moving forward, staff requests approval to reimburse up to $108,000 for title fees as they are incurred for Phase III participants. He said Phase II(b) and Phase III will be fully reimbursed by the EIP participants. He offered to answer questions. Councilman/Member Kelly asked what portion will be paid by EIP participants. Mr. Alvarez responded $200 of the $360 title fees for Phases I and II will be reimbursed by the EIP participant. Further responding, he said out of the $50,000 title fees incurred for Phases I and II, the City/Agency will be reimbursed $27,800 by the EIP participants. Councilman/Member Kelly moved to by Minute Motion, authorize: 1) Payment to First American Title Company in an amount not to exceed $30,240 for title fees incurred as part of Phases I and II (a) & (b) of the EIP — a portion of these costs will be reimbursed by EIP participants; 2) payment to First American Title Company and Lawyers Title 7 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 22, 2010 Company in an amount not to exceed $108,000 for title fees incurred as part of EIP Phase III as services are rendered — all Phase 111 costs will be reimbursed by EIP participants; 3) Director of Finance to transfer funds deposited into the Energy Independence Program Loan Proceeds in Account No. 237-0000-349-9400 to Energy Management to offset said costs — funds for these costs have been budgeted in the Energy Management Professional Services Account, No. 850-4511-442-3090. Motion was seconded by Spiegel and carried by a 4-0 vote, with Ferguson ABSENT. B. REQUEST FOR APPROVAL OF A ONE-YEAR EXTENSION TO CONTRACT WITH SIERRA LANDSCAPE COMPANY, INC., FOR MAINTENANCE SERVICES FOR LANDSCAPE MAINTENANCE AREA NO. 4 IN THE AMOUNT OF $93,144 (CONTRACT NO. C28621, PROJECT NO. 904-09). Councilman Kelly moved to, by Minute Motion, approve a one-year extension to the subject contract with Sierra Landscape Company, Inc., Palm Desert, California, in the amount of $93,144 for maintenance services for Landscape Maintenance Area No. 4 — funds are available in the General Fund Account No. 110-4614-453-3370 - Repair/Maintenance Medians. Motion was seconded by Benson and carried by a 4-0 vote, with Ferguson ABSENT. XV. CONTINUED BUSINESS None XVI. OLD BUSINESS A. REQUEST FOR CITY COUNCIL TO REAFFIRM THEIR REQUEST TO THE RIVERSIDE COUNTY LOCAL AGENCY FORMATION COMMISSION (LAFCO)TO REINSTATE THE SUN CITY PALM DESERT AREA INTO THE PALM DESERT SPHERE OF INFLUENCE. Ms. Aylaian stated this item was before the City Council because the Riverside County Local Area Formation Commission (LAFCO) requested the City Council reaffirm the December 11, 2008, request. The history was as follows: In 2007, LAFCO requested the City review its Sphere of Influence (SOI) and make known any plans for retaining the areas. The City Council reviewed the issue and determined they wanted to release Sun City Palm Desert from its SOI and directed staff to conduct a fiscal analysis of the Bermuda Dunes area. That information was forwarded to LAFCO, and LAFCO responded by removing Del Webb Sun City area from Palm Desert's SOI. In 2008, LAFCO came back to all the cities within Riverside County and asked them to identify any changes planned for the next five years within their SOI. When the item was agendized for discussion in front of the City Council, there was representation from residents within the Del Webb Sun City who came forward and requested that Sun City Palm Desert be 8 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 22, 2010 reinstated into Palm Desert's SOI. The City Council voted to do so and forwarded that request to LAFCO. A year later in December 2009, LAFCO held its first hearing on Palm Desert's request to reinstate the original area from Del Webb Sun City into Palm Desert's SOI. The request has been continued by LAFCO three times, because property owners from Thousand Palms (TP) object to the reinstatement. At the most recent hearing in front of LAFCO, several commissioners expressed the desire to have Palm Desert City Council identify any long-range plans, including potential annexation for the area, but ultimately the Commission voted simply to ask the City Council if it still desired to have the entire area reinstated. She said there was intense interest on both sides of the equation with those in favor of the reinstatement and those opposed. She presented binders that included 3,800 signatures from residents of Del Webb Sun City, but also from businesses within the commercial area just west of Sun City. She called attention to the diagram included in the agenda packet, stating the cross -etched area in red indicated the original Del Webb Sun City area, but north of the freeway was commercial areas and undeveloped lands; the commercial area is the chief area of contention. She said representatives from Thousand Palms are opposed to the inclusion of Del Webb Sun City and commercial areas in Palm Desert's SOI, because they would like to maintain the possibility to incorporate as a city in the future. In order to make it financially viable, they would like to retain revenue from the commercial area within their areas. She noted there were representatives from both sides of the equation that would like to speak, but first she wanted to clarify two things. First, having an area within its SOI did not mean it was going to be annexed, nor was it a commitment by the City Council to pursue annexation in the near future. Although such a decision should not be entered into lightly, it did not serve as a commitment, but simply retains the ability for the City Council to study the issue further in the future. She said a fiscal analysis of the area had not been performed, because that is typically done at the stage where annexation is considered and not where a SOI is considered. Secondly, in the event the City Council wanted to pursue these lands in its SOI as requested in December 2008, staff recommended strongly that the entire original Del Webb Sun City area be reinstated, because if only the residential area was considered, there would be no potential for annexation in the future. She said a residential -only area would never be revenue neutral to the City, because it would need a balance of land uses from both residential and commercial areas to ensure it can have a revenue neutral annexation. She offered to answer questions. Councilman Spiegel asked if the Classic Club, which was west of the subject sphere, in anyone's sphere of influence. Ms. Aylaian answered that she didn't believe so. 9 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 22, 2010 MS. HELEN MCENERNEY, Inverness Avenue, Sun City, Palm Desert, stated she was reaffirming her previous request of December 2008, to petition the City of Palm Desert to reinstate Del Webb Sun City Palm Desert into Palm Desert's SOI. As former vice president and general manager of Del Webb California Corporation, she wanted to share with the Mayor and remind Councilmembers how closely the City worked with Del Webb. She said back in 1993 or 1994 the City assisted Del Webb in changing its name from Sun City Palm Springs to Sun City Palm Desert along with a post office box change. At that time, home building and construction on the north side of the freeway was considered foolish by many, but some may recall the cooperation Palm Desert provided to assist with the construction of the Washington Street Interchange, which was no small feat. Her predecessor Frank Pankratz, a charter member of the Coachella Valley Economic Partnership(CVEP), along with Dick Oliphant, Bob Dickey, Rick Daniels, etc., worked hard to get Del Webb into the Enterprise Zone with the property zoned Industrial and Commercial, which was in the sphere boundary north of 1-10 and west of Washington Street up to 38th Avenue. Del Webb owned several parcels and assisted Eisenhower with the Del E. Webb Foundation and helped create the Eisenhower Medical Center on the corner of Washington Street and Wildcat. She said Del Webb worked hard to bring businesses and enterprises north of the freeway into the Industrial Park, which was previously owned by Del Webb. Suffice to say Del Webb Sun City had a long-standing bond with Palm Desert hoping that one day, some time in the future, an annexation could or would take place. That time may or may not be in the distant future, but reestablishing the SOI would protect Sun City Palm Desert and its boundary from other cities or jurisdictions from trying to annex or "cherry pick" the commercial parcels it worked hard to develop. She asked the Council to vote in favor of reinstating Del Webb Sun City into Palm Desert's SOI. MR. BILL MURPHY, President of the Board of Directors of Sun City Palm Desert Community Association, stated he and his colleagues were in support of reinstating its community and commercial property into Palm Desert's SOI. He noted that in attendance were members of the board, former president of the board Corky Larson, current general manager of the board, and representatives of its 15 districts. He said ten days ago he received a letter from City Manager John Wohlmuth requesting that he and his association get in touch with the residents for their input on returning Sun City Palm Desert into Palm Desert's SOI, and after nine days they had a 75% response rate with additional letters' still coming in, which was incredible. He said if you counted the snow birds that already left, one could say it was a 90% response rate in favor. He said he also spoke to the neighbors in the commercial areas and that the City should have received letters of support from Harry Rinker, owner of the Marketplace Shopping Center, developers from Mirasera and Valante, and owner of Industrial West. He said Mirasera was a proposed development covering 186 acres, which will include 10 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 22, 2010 high -density residential, commercial, hotels, retail, and offices, which was the pie -shaped green area in the lower right-hand corner in the diagram included in the City Council packets; Valante was a proposed development of 160 single-family homes adjacent to Mirasera; and the owner of Industrial West owned several properties on Washington Street Business Park. He said the City asked for input and the aforementioned was the response, which showed high support for the measure. Mayor Finerty noted the next speaker requested five minutes, because others were giving up their time. MS. PATRICIA SALEH, Thousand Palms Community Council Member, stated that having grown up in the Coachella Valley since the age of three, she's watched the Desert change since the days when spa waters flowed uncapped along a dirt road in Palm Springs, which was now called Indian Avenue. She was here when Palm Village became Palm Desert, and when a Government decision in 1957 allowed Interstate 10 (I-10) to be built parallel to Vamer Road cutting off Ramon Road access to Thousand Palms (TP) for five years until an overpass was finally built. During that time, the blossoming community of TP shriveled up and almost disappeared. The message was loud and clear, "who cares about Thousand Palms." It has only been during the last 15 or 20 years that TP has begun to rebound. It now had a school, library, community council, the largest fire training center in Riverside County, two new commercial/industrial areas, an animal campus, multimillion -dollar horse ranches and more. Most of the community is on sewers, and last year, the County and Coachella Valley Association of Governments (CVAG) invested $32 million into TP based on the potential development of its central location and freeway frontage. It was the potential and diversity that recently prompted Cathedral City to propose taking all of Thousand Palms rather than just its west flank. Since LAFCO recognizes that a SOI is a serious planning tool for future annexation, and because neighboring cities have concluded that TP didn't fit their profile, TP is fighting to avoid being cut down in size that it can never incorporate on its own. It would be costly for TP to fight a SOI, and without the same growth potential, it would not only receive a lesser share of County funds, but likely become a permanent orphan of the County. Because Cathedral City's proposal also included the areas Palm Desert was requesting, she and Thousand Palms Community Councilmember Roy Nokes informed Councilman Kelly of Cathedral City's intention and asked if Palm Desert would object or also consider taking all of Thousand Palms rather than just Sun City and its commercial areas. She said Councilman Kelly expressed interest and that he would organize a meeting with another Councilmember along with City staff to discuss the pros and cons. Chairman of the Desert Palms Community Council Sy Kaplan agreed to take part in this meeting, and at that meeting on March 17, the response from Councilman Spiegel and Councilman Ferguson was that Palm Desert had decided two years prior not 11 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 22, 2010 to annex north of 1-10 and that nothing had changed. She said Councilmen's Spiegel and Ferguson stated the Council requested to take Sun City Palm Desert back into its sphere of influence just to be nice to Del Webb Sun City, because Sun City didn't want to be taken in by the City of Indio. At that time, she asked if Palm Desert would consider taking Thousand Palms land out of the request since it had no intentions of annexation, and Councilman Spiegel answered no. It is for this reason that LAFCO has continued its hearings on Palm Desert's request until May 27, 2010, to see if a compromise could be worked out and also give Palm Desert the opportunity to confirm whether or not this Council had any real desire to annex the proposed sphere area. She said LAFCO Executive Officer George Spiliotis stated his recommendation to approve Palm Desert's request was based on the City's assumed intent to annex the area, because taking a sphere on the basis of the possibility that some future council might want to annex would be land -banking and not acceptable to LAFCO. LAFCO wants the present Council to confirm its intent to annex. She didn't want to hamper Sun City's efforts in any way and hoped that if Palm Desert wanted to annex Sun City Palm Desert west of Washington Street that it leave Thousand Palms territories out of its sphere. With all the habitat and preserved area taken out of Thousand Palms, it needed every bit of land to achieve the tax base to incorporate. She knew Palm Desert would not be well served by the failure of TP. She hoped the Palm Desert City Council can stop another govemment decision from crippling the future of its blossoming community. MR. ISRAEL ESMERALDA SR. stated he would pass his time. MR. ROY NOKES, Thousand Palms Community Council Member, stated he knew they were fighting an elephant all the way; however, once the door was opened for possible future City of Thousand Palms after Rancho Mirage and Palm Desert gave up its SOI, it had another opportunity to incorporate as a city. He's been in the Desert since 1966 and seen Palm Desert and four of the other cities develop. He said the City of Palm Desert had done great and it was an example to other cities anywhere, and now Thousand Palms (TP) wanted that same opportunity exercised by Palm Desert when it became a City Council. He said TP was centrally located for a city and should have been able to move toward being a city years ago, but the financing and commercial growth was south of 1-10. Now that the development had come to TP and after this recession is over, there will be a lot of development in the TP area because there was nowhere else to go except the vacant land north of 1-10. He said based on the General Master Plan, many didn't think TP could generate the tax based needed, but if the Plan was adjusted to retail, commercial, and industrial, which would be further north, it will have the income base from hotel, bed tax, retail shops, and restaurants along Interstate-10 and south of Varner Road, but not counting the development between Ramon Road and Washington Street. He said TP also had the Enterprise Zone along 1-10 to Date Palm and beyond. He said this was the 12 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 22, 2010 only opportunity to convince Palm Desert City Council that TP needed the chance to develop its own city. He said they were asking for 10 or 15 years down the road to try to build the tax base. He said for years TP supported Palm Desert's tax base even before it became a community, and now they wanted to keep some of their own tax base to build their own city. He said TP was more centrally located than other cities, because they were on the railroad, 1-10, and all five of the north south routes across the Valley passed through the TP area. He said TP didn't have traffic congestion, noise or crime problems, graffiti, or drug dealers standing on the corner like other cities. He said they had a beautiful well -maintained park thanks to Corky Larson. He thanked the Council for the opportunity to speak on this matter. MR. DON DONNELLY, Tri-Palms United Owners Association Board Member, stated he represented more than 1,700 units or 3,500 residents in the Tri-Palm Community, which was within the area of Thousand Palms. He said they didn't support the taking of land in the Thousand Palms areas, because it was a jeopardy to its future by the piracy or cherry picking of some potential industrial and commercial properties to get more assessed valuation. His community opposed any sphere of influence, because it was step one of annexation by Palm Desert's SOI. He thanked the Council for its consideration. MS. CORKY LARSON, Palm Desert, stated she loved hearings like these where both sides were nice people, but the City Council had to decide how to split the baby. She's lived in Sun City Palm Desert for 14 years now from when she moved from Palm Springs. She said Thousand Palms didn't really care if Sun City Palm Desert was back in Palm Desert's sphere. It was the commercial area they didn't want to see go along with Sun City. However, she was requesting the Council return Sun City Palm Desert to where it was a few years ago. She had spoken to Thousand Palms representatives, but she didn't think they understood exactly what a sphere of influence meant. The reason Sun City pushed to retum to Palm Desert SOI was because there are aggressive cities. She said before Thousand Palms can become a city, if that's in their destiny, those aggressive cities would like to cherry pick that commercial area. A member of LAFCO had mentioned there was an inquiry about it. She said returning Sun City Palm Desert with the commercial area was in Palm Desert's best interest if the next step should ever be annexation. However, it wouldn't change anything for Thousand Palms, because they could still incorporate, and if they wanted to, they could include Sun City Palm Desert in that incorporation. She used to serve as chair of LAFCO and knew a sphere of influence and incorporation could happen at the same time. However, right now Sun City Palm Desert wished to return under Palm Desert's SOI. She said as County Supervisor, she created community councils, and the sole purpose of them was to advise the Board of Supervisor who was the government of the area. She said neither Supervisor Wilson nor Supervisor Benoit had any objections to the whole 13 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 22, 2010 area returning to where it was. She loved the people of Thousand Palms and vowed to work with them in any way possible to help them fulfill whatever their dreams are and believed when this was all over everyone will be friends. She asked the Council to retum Sun City Palm Desert to Palm Desert's sphere of influence to provide it the protection that went away when Sun City was dropped from its sphere, knowing the action would not hurt Thousand Palms. She requested Palm Desert City Council reaffirm it's request to LAFCO, although she didn't know why they were asking for a confirmation from Palm Desert. She offered to answer any questions. Councilman Kelly stated he thought Palm Desert had already requested Sun City Palm Desert return to Palm Desert's SOI as mentioned by Ms. Larson. Mr. Wohlmuth responded a letter was sent to LAFCO in December to request Sun City Palm Desert return to Palm Desert's SOI, and LAFCO has continued its hearing three times, and in their last meeting they requested Palm Desert to reaffirm it's request. Councilman Kelly stated he understood Thousand Palms desire to create their own City, and they had his blessings. On the other hand, Del Webb Sun City would like to continue to be in Palm Desert's SOI, and the adjacent commercial area was part of their area. He said Sun City Palm Desert deserved to have some of that commercial area connected with their area. He said God bless Indio and hallelujah for the sales tax they get, but the proper thing for Sun City would have been for that whole area to be in Del Webb Sun City's SOI and whom they were connected with. He reconfirmed that Sun City Palm Desert and the adjacent commercial areas be in Palm Desert's SOI. Councilman Spiegel noted the recreational vehicle retailer in the commercial area was on television four or five times a day advertising that its location was in Palm Desert. The fact that Thousand Palms didn't have the Classic Club or the whole area in its sphere, meant that TP was in one area and now it wanted to be moved to take in this RV retailer, which didn't make sense. He agreed with Councilman Kelly to reaffirm its request to LAFCO. Councilmember Benson stated she had always been in favor of Sun City being in Palm Desert's SOI. She said Palm Desert requested Sun City change their name so that they weren't aligned to Palm Springs before they ever asked to be part of Palm Desert. She certainly thought it was admirable Thousand Palms wanted to be a city, but maybe it should be grateful they weren't facing these economic times, because they wouldn't have the money to keep it running and would have to dis-incorporate. She said Thousand Palms was a vital part of the corridor along 1-10 as much as Sun City, but Sun City Palm Desert needed to be in Palm Desert's SOI to promote and 14 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 22, 2010 protect itself. She said whether Thousand Palms ever got to be a city was not up to Palm Desert, but she can respect their economic situation. Mayor Finerty concurred with her colleagues. Councilmember Benson moved to, by Minute Motion, reaffirm the direction given on December 11, 2008, to ask the Riverside County Local Agency Formation Commission (LAFCO) to reintroduce Sun City Palm Desert and the adjacent commercial area into the Palm Desert Sphere of Influence. Motion was seconded by Spiegel and carried by a 4-0 vote, with Ferguson ABSENT. Councilman Kelly stated the City Council would be happy to work with Thousand Palms residents and Thousand Palms Council toward whatever it desired to achieve. MS. SALEH stated they were told Palm Desert would not annex north of 1-10, and it seemed Palm Desert didn't want Thousand Palms either. Councilman Kelly responded that question couldn't be answered at this point. Councilman Spiegel stated it was unknown who would be serving on the Council five years from now, and that future Council would be making a decision based on a staff report that indicated whether or not it was economical. One of the reasons why Palm Desert had not done anything in Bermuda Dunes was because if was not economically sound to pay for the curbs and gutters. Unfortunately, the City of La Quinta had been cherry picking in that area, but that was another story. Councilman Kelly noted this kind of process took time and nothing would happen overnight. MS. SALEH said she wanted it explained why LAFCO had returned Palm Desert's request, which was obvious Palm Desert had not taken back its request. Councilman Kelly stated the City Council had to deal with the fact that the folks in Thousand Palms changed their mind every two years; Thousand Palms was either in or out. He said if the process ever happened, the Council will work to try to make it work for everyone. MS. SALEH said LAFCO wanted to know if this particular City Council had any intent to annex, but that wasn't addressed with the motion that was made by LAFCO. She said LAFCO wouldn't have returned the request just to reconfirm if Palm Desert wanted Sun City Palm Desert in its sphere. 15 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 22, 2010 With City Council concurrence, Mayor Finerty called a recess at 4:52 p.m. She reconvened the meeting at 4:54 p.m. XVII. PUBLIC HEARINGS A. REQUEST FOR APPROVAL OF A ZONING ORDINANCE AMENDMENT, ADDING CHAPTER 25.130 - LOCATION OF MISCELLANEOUS USES - TO THE PALM DESERT MUNICIPAL CODE Case No. ZOA 10-69 (City of Palm Desert, Applicant). Principal Planner Tony Bagato stated this was a Zoning Ordinance Amendment to add a section for Miscellaneous Uses that are identified in the Ordinance. At the November 10, 2009, a Planning Commissioner requested staff to research potential regulations onto tattoo establishments. The City currently had five establishments on Highway 111, and there was a concern with having certain business types along the City's prime commercial corridors of El Paseo and Highway 111 as a resort community. On December 15, 2009, staff presented four possible restriction types and stated that if there was a concern over the image of businesses, staff felt there were other businesses that should be in that category as well along with tattoo establishments. On March 16, 2010, staff presented the Zoning Ordinance Amendment (ZOA) and locations of Miscellaneous Uses. Those uses are identified in the Ordinance as bail bonds and body piercing establishments, billiards or pool halls, fortune tellers, independent massage parlors, tattoo shops, and smoke shops, which are categorized as mainly smoke shops that sold paraphernalia. He said it wouldn't include high -end cigar shops or cigar lounges, because those did exist on El Paseo. The uses would be prohibited on Highway 111 and El Paseo, but allowed in other C1 or Service Industrial Zones with a 1,000-foot distance separation from a similar use. He said a tattoo establishment would have to be 1,000 feet away from another tattoo, but could be next to a massage parlor or smoke shop. He said the City Council packet included a map that illustrated the current Miscellaneous Uses that would be grandfathered under the Ordinance. Staff received one letter from Ink Sanity Tattoo voicing their concern over the fairness of the Ordinance and asking for the opportunity to expand or downsize if they had to, but the current non -conforming uses would not allow it and would require a separate Zoning Ordinance Amendment. They asked that perhaps tattoo parlors can be removed from the Ordinance, however, because this item was originally requested by the Planning Commission, staff recommended that it remain. On March 16 the Planning Commission recommended approval on a 3-2 vote with Commissioners Tanner and Campbell voting NO. He offered to answer questions. 16 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 22, 2010 Mayor and Councilmembers noticed they did not have a copy of the map with the identified current Miscellaneous Uses along El Paseo and Highway 111. City Clerk Rachelle Klassen confirmed the City Clerk's Office did not receive a copy of the map and that's why it was not included in Council's packet. Mr. Bagato displayed the map and pointed the locations of the Miscellaneous Uses and tattoo establishments on Highway 111. Further responding, he confirmed there were five establishments within 1,000 feet of each other. Councilman Spiegel asked what were the restrictions used by other cities in the Valley. Mr. Bagato responded the cities of Rancho Mirage, Indian Wells, and La Quinta didn't address miscellaneous uses in their Code, but actually prohibited tattoo shops as well as other uses. However, the City of La Quinta allowed fortune tellers with a Conditional Use Permit (CUP), but tattoo shops are prohibited in most of the cities. He said Cathedral City was looking into restricting the same uses Palm Desert was proposing to their new area off Highway 111 and Palm Canyon, the revitalization down town. Further responding, he agreed Palm Desert probably had the most tattoo parlors because it was the most business friendly toward them. Councilman Kelly commented he couldn't read the map that was being displayed from where he was sitting. Councilmember Benson stated the staff report indicated there were currently five tattoo and eight independent massage establishments that would all be grandfathered. She said the intent of the Ordinance was to prohibit new ones. Mr. Bagato agreed, stating the existing establishments could not relocate. He said once an establishment closed for more than six months, they would no longer be able to re -open in the same location. Further responding, he confirmed the proposed Ordinance was not intended to put establishments out of business. Responding to request, Mr Bagato agreed to go back to his office to make copies of the map that illustrated the current Miscellaneous Uses that would be grandfathered under the Ordinance. NOTE: At this point in the meeting, and with City Council concurrence, Mayor Finerty suspended consideration of Public Hearing A in order for staff to provide the requested map. She continued with the remainder of the City Council, Redevelopment Agency, and Housing Authority Agendas, then returned to Public Hearing A. 17 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 22, 2010 Mayor Finerty noted Mr. Bagato had concluded his staff report, and the Council was resuming with questions regarding the map. Mr. Bagato described the area of focus, which was between Portola Avenue and Town Center Way just before Desert Crossings. Responding to question, he said most of the businesses and tattoo establishments were between San Pablo and Portola Avenue. Mayor Finerty declared the public hearing open and invited public testimony FAVORING or OPPOSING this matter. MR. BUDDY HAYNES, Owner of Insanity Ink II Tattoos, 73-338 Highway 111, Palm Desert, stated he assumed the Council received the letter he wrote, which stated he didn't agree with the proposed Ordinance, but he understood. However, he asked the Council to consider placing tattoo shops in its own category. His business was fortunate that it had another three years on his lease for his shop, but it included a hair salon. He said business was good, but if it got better or declined, he still wanted the opportunity to relocate across the street or next door and still abide by the proposed 1,000-feet distance. He understood why the City didn't want his business close to El Paseo and agreed it probably didn't belong there. He said his partner James Livingston had monitored all the foot traffic his shop received from being on Highway 111 for the past two months and can show the Council the amount of clientele it received. He was curious what Council meant when it stated that Palm Desert's image was a "tourist town," because up and down Highway 111 were restaurants, a gun shop, a hardware store, and pet grooming store, so he didn't quite understand how tattoo shops got stereotyped in the miscellaneous category. He hoped the Council will take into consideration to set tattoo establishments aside, because if he had to add onto his business or move next door, what would be the difference. He appreciated the fact that his business would be grandfathered, but the proposed Ordinance dictated how his business can grow or downsize, which was not a way to become successful. He offered to answer questions. Councilman Spiegel stated on the north side of Highway 111 was a parlor with a huge sign that said "Tattoo." MR. HAYNES responded it was not his establishment. He said his shop shared the same wall with McGowan's Pub and is four doors down from the Red Barn. He said a Planning Commission member was quoted in the newspaper as stating that being open late hours attracted crime, which he found appalling, because there was no statistic with the Riverside County Sheriffs Department that would support the statement. He said his shop and other restaurants stayed open late, but they did not attract crime. He said they were hard-working people, and he watched out for his community, because he was born and raised here and lived here since 1980. He was 18 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 22, 2010 proud to be part of this City, because it's been good to him and fellow citizens. MR. JAMES LIVINGSTON, Co -Owner of Insanity Ink II Tattoos, 73-338 Highway 111, Palm Desert, requested the City rewrite the Ordinance, because a tattoo and permanent cosmetic were the same thing, yet permanent cosmetic was not included as Miscellaneous Uses. He offered to answer questions. Councilman Spiegel requested that Lieut. Shouse provide the Council with his thoughts on the matter. Lieut. Shouse stated the Police Department had not received an inordinate amount of calls for service regarding tattoo parlors. He said tattoo parlors did not come up on the radar as being an issue for the Police Department. He said the Department had more problems with bars in town and other locations. With no further testimony offered, Mayor Finerty declared the public hearing closed. Councilman Kelly stated the proposed Zoning Ordinance was very arrogant even though he wouldn't get or have a tattoo, but he recognized there was a whole different culture out there that liked tattoos and had them. He said how could he be so arrogant as to say he didn't agree with their culture and have them kicked out, which he didn't understand. He noticed that pool halls were also included in the proposed Ordinance, yet as a senior in high school, he had a 40 hour a week job, played basketball, dated Mary Helen, and in his spare time he hung out in the pool hall, and he just got recognized as citizen of the year yesterday. He said he valued the education he received at the pool hall. Another thing that amazed him was that Palm Desert had the best in the Valley, because many people have told him Quick Massage located at 74-125 Highway 111, Palm Desert, was a wonderful place to get a massage. He didn't frequent massage parlors, but a lot of people do like them. He recognized the City had problems with massage parlors, in fact it had one case on the agenda this evening, but that was the job of the City Council to take care of it. He said the City had problems with its parks, it had to mow the grass and trim the trees, but just because it had to be done, didn't mean they had to get rid of its parks. He said the City will have to continue to monitor the massage parlors to make sure they followed the Ordinance. As far as he was concerned, he thought the proposed Ordinance was very arrogant. He said if the Council wanted Palm Desert to be upscale and have the best shops, then it should get rid of its utility poles, maintain the streets, paint the white lines on the road, and make it so that the establishments and stores are the place to be. Then the City will automatically have the best places and wouldn't have to worry about these zoning ordinances. 19 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 22, 2010 Councilman Spiegel stated he was torn with the matter, because he would like to make Highway 111 prestigious as possible. Whether the Red Barn and other establishments on Highway 111 were prestigious, he sometimes questioned, but he wasn't sure how to turn it around or if it was possible. However, he agreed with Councilman Kelly and Mr. Livingston's and Mr. Haynes' concern, which was that the landlord or owner of a building can raise the rent and there was nothing that could be done by the tenant. Councilmember Benson stated the City had too many Miscellaneous Uses and it was the City's fault for allowing them in the first place, but to say that if a business didn't succeed it couldn't relocate, may be wrong because they may succeed where the rent is lower. She said the Ordinance needed to state that no new parlors will be accepted on Highway 111, but existing ones are grandfathered with the right to expand or downsize. She said the Council needed to be more lenient with existing establishments, because they came in when it was allowed. Responding to question, Mr. Erwin stated the proposed Ordinance as written did not allow existing businesses to move to another location. Certainly if the Council desired, a hearing process or process to allow existing establishments to expand, depress, or move to other locations can be established as long as they complied with the distance requirements. He offered to craft some language to that effect. Councilman Spiegel and Councilmember Benson thought that would be fair. Councilman Spiegel stated the City had plenty of massage and tattoo establishments, and it didn't need anymore, but disagreed to locking in existing establishments to a location. Councilman Kelly stated it was a free country and the economy should take care of itself, because it dictated how many restaurants or grocery stores a City would have. He said the Council should not get into the business of controlling how many businesses it should have. Councilman Kelly moved to deny staffs recommendation. Motion died for lack of a second. Councilmember Benson moved to, by Minute Motion, refer the Case back to staff for clarification regarding the grandfathering of existing businesses at this time as to what they can do in the future (i.e., expansion, downsizing, relocation) including an appropriate process for such consideration. Motion was seconded by Spiegel and carried by 3-1 vote, with Kelly voting NO and Ferguson ABSENT. 20 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 22, 2010 B. CONSIDERATION OF AN APPEAL OF A PLANNING COMMISSION DECISION TO REVOKE AN EXISTING CONDITIONAL USE PERMIT (CUP) FOR ANNA'S HEALTH SYSTEM, A MASSAGE THERAPY ESTABLISHMENT LOCATED IN THE PALMS TO PINES WEST SHOPPING MALL AT 72-655 HIGHWAY 111, SUITE B- 7 Case No. CUP 08-108 (Chun Hua Deng / Todd Hill, Applicants/Appellants). Mr. Erwin noted the policy in the past was to refer these matters on massage parlor for either conditional use permit, appeals, or the appeals of the massage establishment permits to a hearing officer, which was his recommendation to the Council. He asked the Council to continue the public hearing to be renoticed at a later date when Council received the report of the hearing officer. Councilman Spiegel moved to, by Minute Motion: 1) Refer the appeal to a Hearing Officer; 2) continue the public hearing to be renoticed at a later date following receipt of the Hearing Officer Report. Motion was seconded by Benson and carried by a 4-0 vote, with Ferguson AB SENT. XVIII. REPORTS AND REMARKS A. CITY MANAGER Mr. Wohlmuth provided a copy of the grant application the City will be submitting for bicycle and sidewalk improvements. In the past, the City's internal policy was to make the Council aware that it was seeking grant funds and that it had a project in mind for the funds or matching funds if required. He said SB821 Funds are for sidewalk and bicycle road improvements, and the application was due May 4, 2010, to the Riverside County Transportation Commission. Staff was unable to put this matter on the agenda; however, the application didn't require Council action, because it only needed the City Manager's signature, so this was an informational report for the Council. B. CITY ATTORNEY None C. CITY CLERK 1. Reminder of Upcoming Joint City Council, Redevelopment Agency, and Housing Authority Meetings Regarding the Preliminary Fiscal Year 2010-2011 Budget: a) Monday, April 26, 2010, 9:00 a.m. - 12:00 p.m. in the Administrative Conference Room for Review of Public Works and Capital Improvement Projects Budgets. 21 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 22, 2010 b) Friday, April 30, 2010, 1:00 p.m. - 4:00 p.m. in the Administrative Conference Room for Review of Redevelopment Agency Budgets (includes Housing, Marketing, and Visitor Center). Ms. Klassen noted the two reminders for the upcoming City Council Budget Review Meetings. Councilmembers so noted the dates. Councilmember Benson stated she notified the City Manager that she would not be able to attend the April 30 Budget Review Meeting, and she will go over the Redevelopment Agency Budgets with him. D. PUBLIC SAFETY o Fire Department None o Police Department None E. MAYOR AND MEMBERS OF THE CITY COUNCIL o City Council Requests for Action: None o City Council Consideration of Travel Requests and Reports: None o City Council Committee Reports: None 22 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 22, 2010 o City Council Comments: 1. Rotary Citizen of the Year - Councilman Kelly thanked the Council, staff, and everyone that attended the luncheon to recognize him as Citizen of the Year by the Rotary. XIX. ADJOURNMENT Upon a motion by Spiegel, second by Finerty, and 4-0 vote of the City Council with Ferguson ABSENT, Mayor Finerty adjourned the meeting at 5:24 p.m. ATTEST: RA H LLE D. tpcS`SEN, CITY CLERK CITY OF PALM DESERT, CALIFORNIA R 23