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Home My WebLink About2011-08-25MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING THURSDAY, AUGUST 25, 2011 CIVIC CENTER COUNCIL CHAMBER 73510 FRED WARING DRIVE, PALMS 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: Council member Cindy Finery Council member Jan C. Harnik Councilman William R. Kroonen Mayor Pro Tem Robert A. Spiegel Mayor Jean M. Benson Also Present: John M. Wohlmuth, City Manager/RDA Executive Director Robert W. Hargreaves, Assistant City Attorney William L. Strausz, Redevelopment Agency Counsel 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 Paul S. Gibson, Director of Finance/City Treasurer Janet M. Moore, Director of Housing Mark Greenwood, Director of Public Works Frankie Riddle, Director of Special Programs Clayton von Helf, Information Systems Manager Bill Hunley, Battalion Chief, Palm Desert Fire/Riverside Co. Fire Dept./Cal Fire Steve Brooker, Fire Marshal, Palm Desert Fire/Riverside Co. Fire Dept./Cal Fire Andrew Shouse, Asst. Chief, Palm Desert Police/Riverside Co. Sheriff's Dept. Grace L. Mendoza, Deputy City Clerk MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 25, 2011 A. ORIENTATION TO UPDATED COUNCIL CHAMBER AUDIO-VISUAL SYSTEM PRESENTED BY CITY'S CONSULTANT, K2 AUDIO, LLC. Mr. von Helf provided a brief overview of the new audio-visual equipment for City Councilmembers and staff. III. ORAL COMMUNICATIONS - A (CLOSED SESSION ITEMS) None IV. ADJOURN TO CLOSED SESSION Reauest for Closed Session: Conference with Real Property Negotiator pursuant to Government Code Section 54956.8: 1) Property: Lease Property - Parkview Professional Office Complex - 73710 Fred Waring Drive, Suite No. 200, Palm Desert Negotiating Parties: Agency: John M. Wohlmuth/Paul S. Gibson/City of Palm Desert Property Owner: City of Palm Desert Other Parties: Coachella Valley Association of Governments/ EcoMotion Under Negotiation: x Price x Terms of Payment 2) Property: 72-240 Upper Way West (APN 628-130-007), Palm Desert Negotiating Parties: Agency: John M. Wohlmuth/David J. Erwin/City of Palm Desert Under Negotiation: x Price x Terms of Payment Conference with Legal Counsel regarding existing litigation pursuant to Government Code Section 54956.9(a): a) California Redevelopment Association, et al., v. Ana Matosantos, et al., Supreme Court of the State of California, Case No. S194861 Conference with Legal Counsel regarding significant exposure to litigation pursuant to Government Code Section 54956.9(b): Number of potential cases: 2 Upon a motion by Kroonen, second by Spiegel, and 5-0 vote of the City Council, Mayor Benson adjourned the meeting to Closed Session at 3:14 p.m. She reconvened the meeting at 4:01 p.m. 2 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 25, 2011 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 - Councilmember Jan C. Harnik VII. INVOCATION - Mayor Jean M. Benson VIII. ORAL COMMUNICATIONS - B MS. JEANIE CHOI, Super White Cleaners, 73221 Highway 111, Palm Desert, addressed the City Council about adequate parking for her establishment that is mid -block along the frontage road. She reported that with the adjacent Tony Roma's, Armed Forces Recruiting Office, Out of the Box Gold Store (especially with the price of gold currently), Yoga Studio, and Graphtek businesses being so busy recently, all the parking spaces in front of her store are taken up. Her patrons have nowhere to park —many are elderly and cannot walk around from the rear parking area to her storefront. With the red -curbing immediately on the storefront side of the street, no one can stop there to drop off/pick up their cleaning for a few minutes; they must park in a marked space. She has talked with Out of the Box about her difficulties but was unsuccessful in achieving any cooperation. Her husband attempted to reserve three spaces in front of their store, but that action was reported to the City, and they were contacted by Code Compliance to advise that was illegal because it was public parking. She came to the City Council Meeting today seeking help with this matter for her 11-year-old business —if possible to get a permit for three designated spaces with 10- or 15-minute parking for Super White Cleaners only. Mayor Benson responded that the matter would be referred to staff for further review. MR. SERGIO NUNEZ, Thousand Palms, CA, noted the Palm Desert City Council was about to be outflanked to its north by the Sphere of Influence (SOI) sought by the City of Cathedral City for the area of Thousand Palms. He urged Palm Desert to protect its interests by opposing approval of the SOI Application before the Local Agency Formation Commission (LAFCO). He said Thousand Palms was a hub of the Coachella Valley and has unlimited potential for any municipality interested in it, noting that while Riverside County home sales are down by 7%, Thousand Palms is up by 7%. Additionally, the new I-10 overpass being built will increase accessibility to Thousand Palms and any future development in it. He noted that the majority of Thousand Palms residents shop in and pay sales tax to Palm Desert. He felt the Thousand Palms Community Council was a misled group and should not 3 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 25, 2011 have opposed Palm Desert's first attempt to acquire an SOI there — the Thousand Palms community would favor approval of a Palm Desert SOI. He hoped City Council would refer the matter to its staff for report and recommendations at a future meeting. IX. AWARDS, PRESENTATIONS, AND APPOINTMENTS A. PRESENTATION OF PROCLAMATION DECLARING THURSDAY, AUGUST 25, 2011, AS "WESTFIELD PALM DESERT DAY" IN THE CITY OF PALM DESERT, RECOGNIZING WESTFIELD'S CONTRIBUTION TO THE PALM DESERT PUBLIC LIBRARY'S SUMMER READING PROGRAM. Mayor Pro Tem Spiegel recalled for everyone the upcoming Library Remodel Project and the need to keep programs going even when the Library is closed during the project. Therefore, on behalf of Mayor Benson and the City Council, he presented the framed proclamation to Westfield Marketing Director Jenna LeMaster. Ms. Klassen added that there were a total of 35 programs during the eight -week Library Summer Reading Program, including the Young and Teen Readers, and a total of 2,932 participants. She said it wouldn't have been possible without Westfield and thanked them for this help. Mayor Benson offered her sincerest appreciation as well, noting how successful the Summer Reading Program was and that the Westfield was such a great meeting place for the kids and parents alike. She said people could be heard walking up and down the mall, offering their congratulations for making it possible — a true community project. A-1. PRESENTATION TO RECOGNIZE CITY OF PALM DESERT EMPLOYEES' QUILTING GROUP FOR CREATING A TEDDY BEAR FOR CATHEDRAL CITY POLICE OFFICER JERMAINE GIBSON'S SON. Mr. Wohlmuth introduced Human Resources Technician Del Walker. He related that after hearing about Officer Gibson's tragic death in the line of duty, the group of employees that gets together with Del's help to learn quilting and sewing crafts during their lunch hour shared a project to create teddy bears from button-down, long-sleeved shirts, and they decided to make one for Officer Gibson's infant son, Jermaine Jr. Cathedral City Mayor Kathy DeRosa and Cathedral City Chief of Police Conner came to have lunch with the group on Tuesday this week and presented an engraved plaque with picture of the teddy bear in appreciation for their act of kindness. Ms. Walker elaborated that one day during their lunch get-together this spring, unbeknownst to the group, Cathedral City Mayor Kathy DeRosa came 4 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 25, 2011 through the Employees' Lounge on her way to an Energy Meeting. She stopped to speak with the group about what they were working on, and they shared the story about their project. Mayor DeRosa immediately went back to her city, obtained a Cathedral City Police Officer's uniform shirt from Chief Conner, and provided it to the group to complete the bear. Ms. Walker said it was very lovely, and it was so meaningful for the Mayor and Chief of Police to sit down with them and talk about how much that bear meant and how much it meant to be part of a larger community that everyone is in the Coachella Valley. She said they were very proud to be able to remember Officer Gibson in this way. On behalf of the City Council, Mayor Benson extended her most gracious thanks to Ms. Walker and the group of crafters as well. B. PRESENTATION TO THE CITY COUNCIL BY NEW DIRECTOR OF THE EARLY CHILDHOOD EDUCATION PROGRAM OF FAMILY YMCA OF THE DESERT. MS. SHINE NISSAR, new Director of the Early Childhood Education Program for Family YMCA of the Desert, said she'd been on the job for two months and invited everyone to stop by any of the their three Child Development Centers: Jean Benson Child Development Center, Palm Desert; Doris Mechanick Child Development Center, Indio; and La Quinta Child Development Center. She presented a PowerPoint slide show, which was received for the record and is now on file with the City Clerk's Office. She highlighted that as a community partner, the City of Palm Desert has been very generous to the Family YMCA and the Early Childhood Education Program, which has served 3,675 families since 1992 and awarded over $623,000 to them since April 2006. She added that funding for the YMCA-ECE Program is obtained with: 1) Direct contract with the California Department of Education, first awarded in 1995; 2) Y Financial Assistance (support from the community); 3) generous funds from the City of Palm Desert; 4) fee -for -service programs. She again expressed how much the YMCA appreciates the City's support and noted that she'd brought some fliers about their programs and left them in the lobby area for distribution. X. CONSENT CALENDAR A. MINUTES of the Regular City Council Meetings of July 14, July 28, and August 11, 2011. Rec: Approve as presented. 5 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 25, 2011 B. CLAIMS AND DEMANDS AGAINST THE CITY TREASURY - Warrant Nos. 1, 5, 8, 12, 14, 15, 19, 22, 23, 25, 29, 33, 34, 38. Rec: Approve as presented. C. COMPLIANCE ANALYSIS AND INVESTMENT REPORTS for the Months of April 2011 and May 2011 (Joint Consideration with the Palm Desert Redevelopment Agency). Rec: Receive and file. D. CITY COMMITTEE AND COMMISSION MEETING MINUTES. 1. Audit, Investment & Finance Committee Meetings of April 26, and May 24, 2011. 2. Landscape Beautification Committee Meeting of April 20, 2011. 3. Marketing Committee Meeting of June 21, 2011. 4. Parks & Recreation Commission Meeting of June 7, 2011. Rec: Receive and file. E. APPLICATION FOR ALCOHOLIC BEVERAGE LICENSE by Fiesta Grill La Casita, 77-912 Country Club Drive, Units 3B & 3C, Palm Desert. Rec: Receive and file. F. APPLICATION FOR ALCOHOLIC BEVERAGE LICENSE by Fisherman's Market & Grill, 44-250 Town Center Way, Suite C2, Palm Desert. Rec: Receive and file. G. APPLICATION FOR ALCOHOLIC BEVERAGE LICENSE by Piero's Pizzavino, 73-722 El Paseo, Suites 1 & 2, Palm Desert. Rec: Receive and file. Approved 4-0-1. (Harnik ABSTAINING) H. APPLICATION FOR ALCOHOLIC BEVERAGE LICENSE by Pronto Food Mart & Mexican Grill, 78-010 Country Club Drive, Suite 400, Palm Desert. Rec: Receive and file. Approved 4-0-1. (Harnik ABSTAINING) 6 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 25, 2011 I. REQUEST FOR DECLARATION of Surplus Property and Authorization for Disposal — Palm Desert Police Motorcycle. Rec: By Minute Motion, declare Police Motorcycle, 2003 BMW 1150RT (VIN WB10499A13ZE90551) surplus property and authorize its disposal as proposed. J. REQUEST FOR APPROVAL of Amended 2011 Palm Desert ATHENA Scholarship Award Agreement Between the City of Palm Desert and CSUSB Philanthropic Foundation (Contract No. C24306A). Rec: By Minute Motion: 1) Approve an Amended Agreement between the City of Palm Desert and CSUSB Philanthropic Foundation in the amount of $3,675 to establish the 2011 Palm Desert ATHENA Scholarship Fund; 2) authorize the City Manager to sign said Agreement on behalf of the City. K. REQUEST FOR APPROVAL of Contract with Wurms Janitorial Services, Inc., to Provide Janitorial Services at the Palm Desert Sheriff's Substation, 73-520 Fred Waring Drive (Contract No. C31100). Rec: By Minute Motion, authorize approval of the subject contract with Wurms Janitorial Services, Inc., Corona, California, in the amount of $8,794.08 ($732.84/month) for the period of September 1, 2011, through August 30, 2012 — funds are available in Account No. 510-4195-495-3310. L. REQUEST FOR APPROVAL of Amendment No. 1 to Contract No. C27150 — Professional Consulting Services Relative to Housing Element Update to the City of Palm Desert General Plan as Required by the State of California. Rec: By Minute Motion, approve Amendment No. 1 in the amount of $414.76 to the subject contract with Terra Nova Planning & Research, Inc., Palm Desert, California, for additional reimbursable expenses associated with filing the approved Housing Element Update of the Palm Desert General Plan with the Riverside County Clerk's Office — funds are available in Account No. 110-4470-412-3090. 7 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 25, 2011 M. REQUEST FOR APPROVAL of Amendment One to the AB2766 Memorandum of Understanding (MOU) Between the Coachella Valley Association of Governments (CVAG) and Member Jurisdictions for the Purpose of Regional PM10 Air Quality Programs and Other Related Air Quality Services (Contract No. C29931). Rec: By Minute Motion: 1) Approve Amendment One to the subject MOU between CVAG and Member Jurisdictions for the Purposes of Regional PM10 Air Quality Programs and Other Related Air Quality Services; 2) authorize the City Manager to execute Amendment One to the AB2766 MOU. N. REQUEST FOR APPROVAL of Change Order No. 1 to Contract No. C30300 — Renovation of Fire Station Nos. 33 and 71 Project (Project No. 613-09) (Joint Consideration with the Palm Desert Redevelopment Agency). Rec: By Minute Motion: 1) Approve Change Order No. 1 in the amount of $7,481 to the subject contract with The PENTA Building Group, Palm Desert, California, to perform a structural repair of an existing condition, as part of the Fire Station No. 33 Renovation Project; 2) authorize the Chairman to execute said document; 3) authorize the Director of Finance to transfer $7,481 from the 10% contingency set - aside to the base contract — funds are available in Account No. 850-4220-464-4001. O. REQUEST FOR ACCEPTANCE OF WORK for Contract No. C30210 — Consultant Design/Build Services for the EECBG Photovoltaic Systems Project (Project No. 704-11) (Stronghold Engineering, Inc., Riverside, 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. P. REQUEST FOR ACCEPTANCE OF WORK for Contract No. C30530 — Kansas Street Retention Basin Landscape Project (Project No. 910-10) (Leon's Landscaping and Tree Service, Inc., Thousand Palms, CA) (Joint Consideration with the Palm Desert Redevelopment Agency). Rec: By Minute Motion, accept the work as complete and authorize the City Clerk to file a Notice of Completion for the subject project. 8 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 25, 2011 Q. REQUEST FOR ACCEPTANCE OF WORK for Contract No. C30640 — 2011 Curb Ramp Modification Project (Project No. 753-11) (Simon Contracting, 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. R. REQUEST FOR APPROVAL of the Palm Desert Legislative Review Committee's Recommendation to Provide a Letter to Assemblyman Nestande and Senator Emmerson Regarding Amendments to the "Solar Rights Act." Rec: By Minute Motion, approve the recommended correspondence to Assemblyman Nestande and Senator Emmerson, regarding amendments to the "Solar Rights Act." S. REQUEST FOR APPROVAL to Expend CaICOPS Funds for a Crime Prevention Through Environmental Design (CPTED) Course Being Held in Coronado, California, August 29-31, 2011. Rec: By Minute Motion, approve the Palm Desert Police Department's request to expend CaICOPS funds in an amount not to exceed $1,986 for sending two (2) Palm Desert Community Services Officers to a CPTED Course in Coronado — funds are available under the CaICOPS Program, Account No. 229-4210-422-3914. Councilmember Harnik recused herself from Items G and H due to a potential economic conflict of interest. Upon a motion by Kroonen, second by Finerty, and 5-0 vote of the City Council with Harnik abstaining on Items G and H, and the remainder of the Consent Calendar was approved as presented. XI. CONSENT ITEMS HELD OVER None 9 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 25, 2011 XII. RESOLUTIONS A. RESOLUTION NO. 2011 - 74 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, VACATING EXCESS PUBLIC UTILITY EASEMENT OVER A PORTION OF LOT "C," MOUNTAIN RIDGE, AND THE EMERGENCY VEHICULAR ACCESS EASEMENT OVER THE SAME PORTION OF LOT "C," MOUNTAIN RIDGE, AND OVER LOT "I," A COACHELLA VALLEY WATER DISTRICT TANK SITE, TRACT NO. 28575-3, IN CANYONS AT BIGHORN, UNDER PROVISIONS OF DIVISION 9, PART 3, CHAPTER 4 OF THE CALIFORNIA STREETS AND HIGHWAYS CODE (Coachella Valley Water District, Applicant). Mr. Greenwood stated this item is to vacate an unneeded public utility and fire access. Staff consulted with the Fire Department, and they confirmed they didn't need this access, because they served properties by another method. The utilities have also confirmed they do not need this easement. Mayor Pro Tem Spiegel moved to waive further reading and adopt Resolution No. 2011 - 74. Motion was seconded by Harnik and carried by a 5-0 vote. B. RESOLUTION NO. 2011 - 75 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, RESCINDING RESOLUTION NO. 08-09 AND AMENDING RESOLUTION NO. 03-49, INCREASING THE MEMBERSHIP AND COMPOSITION OF THE PALM DESERT MARKETING COMMITTEE. Visitor Center Manager Donna Gomez stated the agreement with the Palm Springs Art Museum allowed for a member of the Museum to be on the Palm Desert Marketing Committee, so the Council requested the composition and membership to be changed to increase the membership; both changes are included within the proposed Resolution. Responding to question, she confirmed a representative from the real estate group will become a member of the Marketing Committee as well. Councilmember Finerty moved to waive further reading and adopt Resolution No. 2011 - 75. Motion was seconded Spiegel and carried by a 5-0 vote. XIII. ORDINANCES For Introduction: None 10 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 25, 2011 For Adoption: A. ORDINANCE NO. 1221 - AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, APPROVING AN AMENDMENT TO CHAPTER 25.30 OF THE PALM DESERT MUNICIPAL CODE, ALLOWING SUPERMARKETS NOT EXCEEDING 60,000 GROSS SQUARE FEET AS A CONDITIONAL USE IN THE REGIONAL COMMERCIAL PC(3) ZONE, Case No. ZOA 10-228 (KKE Architects, Applicant). Mayor Pro Tem Spiegel moved to waive further reading and adopt Ordinance No. 1221. Councilmember Finerty stated it seemed that when the Council discussed moving Vons from Palms to Pines to the Mervyn's Center, the issue before the Council was to eliminate Condition No. 10, which precluded a grocery store to be developed in the Mervyn's Center. However, this Ordinance in its second reading would allow supermarkets with a Conditional Use Permit (CUP) anywhere in the regional commercial zone, which she was not aware of, thinking it only applied to Condition No. 10 to accommodate Vons. Principal Planner Tony Bagato responded that both items were a consideration, because the PC Zone already allowed all supermarkets with a CUP today, but only up to 50,000 square feet. He said the Vons project was over the 50,000 square -feet limit, so they requested to increase the limit by 10,000 square feet and also remove Condition No. 10 from that specific center. Councilmember Finerty stated she didn't recall that being the case, and maybe that was her error, but since this was the second reading, maybe there was an option to change it. She was not in favor of allowing this anywhere in the City, because this item was a special consideration for Vons in eliminating Condition No. 10. Mayor Benson stated it was her understanding as well that the Council was only considering removing Condition No. 10 for that location. She asked how it can be corrected, because she didn't want grocery stores of 60,000 square feet all along Highway 111. Mayor Pro Tem Spiegel asked about the size of the Toy's R Us building. Mr. Bagato answered 45,000 square feet. However, the City couldn't approve it without the Zoning Ordinance Amendment for this specific project as well; he said both sites are tied in. The hang up with Vons was specifically on Condition No. 10, which is why it was discussed the most. However, in the initial presentation the PC Zone was covered, and the 11 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 25, 2011 Zoning Ordinance Amendment was part of it, because Vons needed that before they found out about Condition No. 10. He didn't believe there was a way to correct it, because the Ordinance is already approved. He said a Development Agreement could have made Vons project specific, but that was not done as part of the project. He deferred to the City Attorney to see if there was a way of changing it. Councilmember Finerty asked if it was only that one project that had Condition No. 10. Mr. Bagato answered yes, stating Condition No. 10 became the focus of discussion for the Vons project, but initially staff mentioned there was also a Zoning Ordinance Amendment request, which would allow for the increase in size. Mayor Benson said someone else could come in and be allowed 60,000 square feet without asking the City. Mr. Bagato explained a Conditional Use Permit would still be required, because prior to the Vons approval, 50,000 square feet were already allowed with a CUP. Further responding, he said any new supermarket requires a CUP and is required to go before the Planning Commission, but the City Council can call it up. He said any new grocery store application is subject to an agreement on a case by case basis. Councilmember Harnik asked if new applications were required to go before the Planning Commission or City Council for a CUP. Mr. Bagato answered yes. Councilmember Harnik inquired about the square footage for the Ralphs Grocery Store on Cook Street and Country Club Drive. Mr. Bagato said he wasn't familiar with that store. Councilmember Harnik stated it was not important as long as the application went before the City Council for a CUP, which she believed was the issue. Councilmember Finerty said it was her understanding the request wouldn't go before the City Council, but it will go through the Planning Commission and it would be up to a Councilmember to call it up. Mr. Bagato agreed. However, that only applied for new development, because Toy's R Us was already approved for a grocery store, stating they can bring in a tenant there that wouldn't require a CUP, but would still need to meet all the requirements of that zoning. 12 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 25, 2011 Councilmember Finerty asked if Toy's R Us could bring in a tenant for up to 60,000 square feet if they decided to expand the building. Mr. Bagato stated that expanding the building was one thing, but if Toy's R Us brought in a grocery store for the size they had today, they would be allowed as a matter of right, because it's underneath the 60,000 square foot's limit, and they have the appropriate parking required. Mayor Benson stated the Council changed the zoning on the Toy's R Us building a number of years ago to accommodate something like a whole food store. Mr. Bagato stated that's why he wanted to be clear that if a building was already approved, they wouldn't go before the Planning Commission, but any new development or new store trying to convert to make a building bigger would have to go through the conditional use process. Further responding, he confirmed a CUP can go before the City Council if it's called up. Councilmember Harnik seconded the motion and it carried by a 5-0 vote. B. ORDINANCE NO. 1224 - AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, AUTHORIZING AN AMENDMENT TO THE CONTRACT BETWEEN THE BOARD OF ADMINISTRATION OF THE PUBLIC EMPLOYEES' RETIREMENT SYSTEM AND THE CITY COUNCIL OF THE CITY OF PALM DESERT — PROVIDING A SECOND TIER OF BENEFITS FOR EMPLOYEES HIRED AFTER SEPTEMBER 1, 2011. Human Resources Manager Lori Carney stated this item was for adoption of the Ordinance to change the City's contract with CaIPERS to offer a lower level of benefits to new employees. Mayor Pro Tem Spiegel noted for the benefit of the audience that the City Council had a hiring freeze, which was implemented three years ago. However, once the hiring freeze is lifted, any new employee will receive lower level benefits than current employees. Ms. Carney agreed. Mayor Pro Tem Spiegel moved to waive further reading and adopt Ordinance No. 1224. Motion was seconded by Kroonen and carried by a 5-0 vote. 13 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 25, 2011 C. ORDINANCE NO. 1226 - AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, AMENDING CHAPTER 3, SECTION 3.46 OF THE PALM DESERT MUNICIPAL CODE, CONCERNING THE LOCAL DEVELOPMENT MITIGATION FEE FOR FUNDING THE PRESERVATION OF NATURAL ECOSYSTEMS IN ACCORDANCE WITH THE COACHELLA VALLEY MULTIPLE SPECIES HABITAT CONSERVATION PLAN. Councilmember Finerty moved to waive further reading and adopt Ordinance No. 1226. Motion was seconded by Harnik and carried by a 5-0 vote. XIV. NEW BUSINESS A. CONSIDERATION OF AN ORDINANCE, APPROVING PARTICIPATION IN THE "ALTERNATIVE VOLUNTARY REDEVELOPMENT PROGRAM," AND RELATED ACTIONS TO MAKE THE REQUIRED PAYMENTS TO THE STATE OF CALIFORNIA AND CONTINUE REDEVELOPMENT ACTIVITIES UNDER AB X1 27 (JOINT CONSIDERATION WITH THE PALM DESERT REDEVELOPMENT AGENCY). Accountant Veronica Tapia stated staff recommended approval of Ordinance No. 1227, confirming the City's participation in the voluntary program to continue Redevelopment activities under AB X1 27. She noted the Amended Ordinance was presented during the Study Session, and the minor numbering changes reflected the modifications to the Stay of the Supreme Court filing that was done relative to the legitimacy of the AB X1 26 and AB X1 27 legislation. Mayor Pro Tem/Vice Chairman Spiegel stated for the benefit of the audience that this item was related to the ransom the State was charging the Redevelopment Agency. He said the Supreme Court was asked to review this legislation, and if approved, it will cost the City of Palm Desert between $17 and $20 million next year. Mayor Pro TemNice Chairman Spiegel moved to: 1) Waive further reading and pass Ordinance No. 1227 to second reading, approving the City of Palm Desert's participation in the Alternative Voluntary Program in compliance with Part 1.9 of Division 24 of the California Health and Safety Code; 2) By Minute Motion, direct staff to prepare and present at a future City Council Meeting agreement between the City and Agency to transfer Tax Increment in reimbursement of the annual remittance due per the calculation set forth by AB X1 27 and recommended adjustments to the City and Agency budgets necessary to make the required AB X1 27 payment for FY 2011-2012; 3) By Minute Motion, ratify the City Manager's filing to the State Department of Finance, appealing determination of the amount of the City's required AB X1 27 payment for FY 2011-2012, including the amended Ordinance No. 1227 presented at the Study Session earlier today. Motion was seconded by Kroonen and carried by a 5-0 vote. 14 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 25, 2011 B. CONSIDERATION OF RESOLUTIONS THAT ADOPT AN ENFORCEABLE OBLIGATION PAYMENT SCHEDULE AND MAKE AN ELECTION FOR THE CITY TO SERVE AS A SUCCESSOR AGENCY UNDER PART 1.85 OF COMMUNITY REDEVELOPMENT LAW IN THE EVENT THE AGENCY IS DISSOLVED PURSUANT TO THE REQUIREMENTS OF AB X1 26 (JOINT CONSIDERATION WITH THE PALM DESERT REDEVELOPMENT AGENCY). Accountant Veronica Tapia stated the proposed Resolutions are required under AB X1 26 in order to deliver some required reporting, which is noted as the City's Enforceable Obligation Payment Schedule, in addition to designating the City as the successor agency, if in fact, the Agency is dissolved. She noted the revised payment schedule was presented during the Study Session. Staff recommended approval of both Resolutions. Councilmember/Member Finerty moved to waive further reading and adopt: 1) Redevelopment Agency Resolution No. 588, adopting an Enforceable Obligation Payment Schedule; 2) City Council Resolution No. 2011 - 76, making an election for the City to serve as a successor agency under Part 1.85 of Community Redevelopment Law in the event the Agency is dissolved pursuant to the requirements of AB X1 26, including the amended Enforceable Obligation Payment Schedule as presented at today's Study Session. Motion was seconded by Harnik and carried by a 5-0 vote. Mayor/Chairman Benson stated it might appear the Council was being generous by giving away money, but this was State mandated, which the Council didn't take lightly. These steps will hopefully place the City in a good position if the Supreme Court votes in favor of the lawsuit that was filed to overturn Governor Jerry Brown's attempt to take the City's money. C. REQUEST FOR APPROVAL OF A LAW ENFORCEMENT SERVICES AGREEMENT BETWEEN THE CITY OF PALM DESERT AND THE COUNTY OF RIVERSIDE, 2011 - 2014 (CONTRACT NO. C31110). Mr. Aryan stated the previous agreement for law enforcement services between the City and Riverside County expired June 2011. This new three-year agreement runs through June 30, 2014, and incorporates the elements discussed and approved by the Council during the budget deliberations this year. Mayor Pro Tem Spiegel asked what was the anticipated increase in salary for next year. Mr. Aryan answered 3- to 3.5 percent. 15 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 25, 2011 Mayor Pro Tem Spiegel noted the City was spending $16.5 million for police services this year, which was more than it's ever paid in the history of the City, and asked how much will the city be paying next year. Mr. Gibson stated the answer was a guess, because the County is negotiating with their Sheriff's Association, but they are at an impasse, which amounts to a 10 percent cut in either salaries or benefits. He said they are supposed to mediate before the year end to determine what the final outcome will be, and it may go to court. Therefore, the cost could be lower by 10 percent or it could be an additional 3 percent increase. Councilmember Finerty moved to, by Minute Motion, approve the subject agreement between the City of Palm Desert and the County of Riverside, on behalf of its Sheriff's Department, to provide Law Enforcement Services for a three-year term commencing July 1, 2011, through June 30, 2014. Councilmember Finerty stated she was glad two Deputy Sheriffs will be assigned to a new Burglary Suppression Unit. Mayor Pro Tem Spiegel concurred. Mayor Pro Tem Spiegel seconded the motion, and it carried by a 5-0 vote. D. REQUEST FOR APPROVAL OF PAYMENT TO COACHELLA VALLEY ASSOCIATION OF GOVERNMENTS (CVAG) IN THE AMOUNT OF $103,000 FOR THE OPERATION OF ROY'S DESERT RESOURCE CENTER. Councilmember Finerty stated other cities had waffled on their commitment, and she believed that once a city makes a commitment, as Palm Desert had, it should to be honored. Councilmember Finerty moved to, by Minute Motion, approve payment to CVAG in the amount of $103,000 for the operation of Roy's Desert Resource Center — funds are available in Account No. 110-4159-415-3630. Motion was Second by Spiegel. Mayor Pro Tem Spiegel stated for the benefit of the audience that the Roy's Desert Resource Center is a homeless shelterthatwas built in Palm Springs. He said the City signed on for $100,000 last year and is continuing its commitment this year. He agreed with Councilmember Finerty's comment, that some cities signed on for it, but are not paying it. Mayor Benson added that some cities cut their contribution or haven't come forward, but this matter was voted on by the CVAG Executive Committee. At that time, there were two cities that said they wouldn't pay it. However, since then, some have paid portions and others the full amount, but it was built on the conception that it would have the money to operate it. 16 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 25, 2011 Mayor Pro Tem Spiegel stated with more homeless in the Valley, this Center becomes more important. Councilmember Harnik inquired about the other cities contributions. Mayor Benson responded the City of Indian Wells cut their contribution in half, La Quinta has never paid, Desert Hot Springs paid half, Palm Springs paid in full, and Cathedral City paid a portion. She said the Center has done some fundraisers and continually seeks grants to keep it funded. She said it behooves the cities that said they would pay, to pay it, because the Center was built on those commitments. Mayor Benson called for the vote, and the motion carried by a 5-0 vote. E. REQUEST FOR AUTHORIZATION FOR STAFF TO PARTICIPATE WITH THE CALIFORNIA CENTER FOR SUSTAINABLE ENERGY ON THE SUNSHOT INITIATIVE OFFERED BY THE U. S. DEPARTMENT OF ENERGY AND TO ALLOW THE CITY MANAGER TO SIGN AS THE AUTHORIZED REPRESENTATIVE. Responding to question, Assistant Planner Missy Wightman explained the Department of Energy SunShot Initiative is a national collaborative to reduce the cost of solar energy systems by 75% before the year 2020. The hope in reaching this goal is that the United States will set itself ahead of the game in the global clean energy race. The California Center for Sustainable Energy has asked the City of Palm Desert to participate as a sub -recipient of a grant for approximately $23,000 with a cost -share match of $2,617, which can be done in staff time. Therefore, there will be no actual funds, besides staff time, being used for this initiative. Councilmember Finerty stated the City of Palm Desert should be honored it was chosen to participate. Councilmember Finerty moved to, by Minute Motion, authorize staff to participate with The California Center for Sustainable Energy on the SunShot Initiative offered by the U. S. Department of Energy and to allow the City Manager to sign as the authorized representative. Motion was seconded by Kroonen. Councilmember Harnik stated she was glad there was talk in streamlining and creating a more agile process to get things moving, which was nice to hear. Mayor Benson called for the vote, and the motion carried by a 5-0 vote. 17 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 25, 2011 F. REQUEST FOR APPROVAL OF A FUNDING AND USE AGREEMENT BETWEEN THE CITY OF PALM DESERT AND COLLEGE OF THE DESERT, RELATING TO THE PALM DESERT AQUATIC CENTER (CONTRACT NO. C31120). Senior Management Analyst Ryan Stendell noted the staff report and recommended approval subject to final review and approval by the City Attorney. Councilman Kroonen moved to, by Minute Motion, authorize the Mayor to execute the subject Funding and Use Agreement with College of the Desert (COD), allowing for a $1 million contribution to Fund 242, Palm Desert Aquatic Center (PDAC), to assist with ongoing operations, subject to final review and approval by the City Attorney. Motion was seconded by Finerty. Mayor Benson inquired about the College of the Desert usage of the Aquatic Center Monday through Thursday, 8:00 a.m. to 12:15, and Monday through Friday, 12:30 p.m. to 2:30 p.m. She asked if those hours will interfere with the normal 11:15 a.m. opening for the general public. Mr. Stendell answered no, stating certain activities can be scheduled away from that 11:15 opening to the general public. Councilmember Harnik asked if the schedule was from September 1 to December 15 and February 1 to May 15. Mr. Stendell answered yes, stating the swim center will transition from the open to the public swim at 11:15 a.m. to specific programs in certain areas of the pool, which will be easier for staff to evaluate patterns and such. He said the COD schedule is only through semester use, which won't interfere with the open swim times. Mayor Pro Tem Spiegel stated for the benefit of the audience that COD will be giving the City $1 million to use the Aquatic Center during the morning hours during school, but not on weekends or in the afternoon. He said this arrangement was a win -win for the City and College of the Desert. The City is in hopes that COD will be able to attract swimmers to its water polo, racing, etc., that they weren't able to attract in the past. Mayor Benson called for the vote, and the motion carried by a 5-0 vote. 18 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 25, 2011 G. CONSIDERATION OF CHANGING DATE OF SECOND REGULAR CITY COUNCIL MEETING IN SEPTEMBER DUE TO THE LEAGUE OF CALIFORNIA CITIES ANNUAL CONFERENCE, SEPTEMBER 21 - 23, 2011, IN SAN FRANCISCO. Mayor Pro Tem Spiegel moved to, by Minute Motion, change the date of the second regular City Council Meeting in September that would be held Thursday, September 22, 2011, at 3:00 p.m., and adjourn it to Thursday, September 29, 2011, at 3:00 p.m. for Closed Session, 4:00 p.m. for Regular Session and Public Hearings. Motion was seconded by Harnik and carried by a 5-0 vote. H. INFORMATIONAL REPORT PERTAINING TO DESERT RECREATION DISTRICT'S FIRST ANNUAL COACHELLA VALLEY CYCLE FEST SCHEDULED FOR SATURDAY, OCTOBER 22, 2011. Ms. Riddle stated the informational report is to advise Council that the Desert Recreation District is putting together a bike ride that will come through the City of Palm Desert as well as other communities. She said there will be no street or lane closures, except for a small area where cones will be required to separate the riders from the traffic. She said the District will work with the City to inform residents and businesses about the route and event. Mayor Pro Tem Spiegel asked about the fee. MR. JEFF RONCI, Recreation Supervisor for the Desert Recreation District, responded the fee to sign up was $65.00, which included a complete weekend of cycling events. The Coachella Valley Cycle Fest will be hosted at the Polo Grounds in Coachella. The District tried to find a location in Palm Desert, but couldn't find anything big enough. He said the Cycle Fest includes Hand Cycling, Mud Cycling Event, numerous presentation, and a concert. He said it will be a large event along with Metric Century and Century Wide, which will travel through the City Palm Desert. He said the District partnered with the Marriott Desert Springs as the host hotel for the event. With City Council concurrence, the informational report was received and filed. XV. CONTINUED BUSINESS None XVI. OLD BUSINESS None 19 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 25, 2011 XVII. PUBLIC HEARINGS A. CONSIDERATION OF A MITIGATED NEGATIVE DECLARATION FOR CEQA (CALIFORNIA ENVIRONMENTAL QUALITY ACT) PURPOSES; A DEVELOPMENT AGREEMENT, PRECISE PLAN, CONDITIONAL USE PERMIT, AND A VESTING TENTATIVE TRACT MAP FOR A PROPOSED 82-ROOM HOTEL AND 59-UNIT RESIDENTIAL CONDOMINIUM PROJECT WITH ANCILLARY USES AND AMENITIES ON 4.97± GROSS ACRES OF CURRENTLY VACANT LAND (4.27 ± ACRES) AND TO -BE -VACATED FRONTAGE ROAD (0.7± ACRES) LOCATED EAST OF HIGHWAY 74, WEST OF OCOTILLO DRIVE, AND SOUTH OF THE IMAGO ART GALLERY — SUBJECT PROPERTY ADDRESS IS KNOWN AS 45-640 HIGHWAY 74, Case Nos. DA/PP/CUP 09-507 and VTTM 36284 (PDH Partners, LLC, Applicant) (Continued from the meeting of July 14, 2011). Mayor Benson stated that although she was not present at the July 14 meeting, she had read the minutes several times and was eligible to participate today. Principal Planner Tony Bagato stated his presentation will only highlight the key parts of the project since the Mayor read the minutes. He said this project is two buildings with three entrances. One building will be used as a hotel with some residential, and the other is a residential condominium. It is a total of 4.97 acres with the frontage road as part of the request. The frontage road extends two properties down to the north and it ends tying into The Daily Grill's rear parking lot. In response to comments made that the project is too large for the site, he said the project complied with seven of the eight setbacks for the property. He displayed the one area where the building didn't comply with the setback, because under the Ordinance that requires a one-to-one building height ratio. However, because this building is a grade below the second building, there is one area that is asking for an exception. The project complies with all other setbacks to the north toward Highway 74 and complies with the setbacks to the residential to the south. He said because of the design and trying to utilize larger rooms for the luxury style hotel, and although it seems like large buildings on a small lot, the project has 50% open space with a lot of landscaping. These open U-shaped courtyards open up the building along Ocotillo Drive to avoid looking at a solid mass. He said the project will include 82 units and 59 condominiums. With regard to traffic, he said there will be 72 vehicles in the AM peak time and 80 vehicles in the PM peak time, causing no change in the current level of service along Highway 74. He said the previous approval of the Red Lion in 1983 for 248 rooms would have generated two- to three times more traffic, because they need more volume to make up the difference of a 5-star hotel. He said from staff's perspective, this project was the best case scenario with respect to traffic. He displayed the most recent 20 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 25, 2011 drawings based on the changes made after the Architectural Review and noted the majority of the four-story floor was removed; the project was reduced by 42,000 square feet. He displayed a rendering with a red line across the third floor representing where the project met the Height Ordinance as written today, and the only part above the red line is the exception requested, which is allowed under the Development Agreement. The rendering with the view from Sandpiper shows an arrow, which points to the only edge of the building that is 60 feet tall, the rest is 47 feet and below. In comparison to other buildings in the City, he said the McCallum Theater is 102-feet tall; Desert Springs Marriott is 78-feet tall; Courtyard by Marriott is 55-feet tall; Holiday Inn is 54-feet tall, and Candlewood Suites is 52-feet tall. He said the majority of the proposed building is 47-feet tall with 35 to 38 feet being the average. The partial fourth floor is at 60 feet, but the other partial fourth floor is lower, because it's closer to the grade. In conclusion, he said the land was zoned for hotel use since 1983, and it was approved for a 248-room Red Lion Hotel with tennis courts anticipated. He said the proposed project complied with the majority of the required setbacks with no traffic impact from this type of hotel. The majority of the height complied with the Ordinance, and this was not a precedent based on other approvals in the City. The project will generate Transient Occupancy Tax (T.O.T.), building permits, and tourism dollars for El Paseo. The Development Agreement provides assurances on the luxury amenities, which include spending $75,000 into the fixture and equipment for each room, as well as the lobby areas. The restaurant has to provide breakfast, lunch, and dinner, and the minimum room size will be at least 500 square feet and above, which are key indicators that it will be a 5-star hotel. He said there was no true formula, but from what he researched from AAA, room size, food service, and fixtures is what defines the room experience. He said the Mitigated Negative Declaration was adopted with significant conditions and findings that are included in the report and Resolution. He offered to answer any questions. Mayor Pro Tem Spiegel asked staff to elaborate on why this project wouldn't impact traffic on Highway 74, because a lot of people who live in the area have written to him and are concerned that it will. Mr. Bagato responded that based on the level of the 82-room hotel and clientele that pays $600 to $700 a night, this project would not generate much traffic. Mayor Pro Tem Spiegel said it was 141 rooms if one combined the hotel rooms with the condominiums. Mr. Bagato agreed, stating that unless the land remained vacant, he didn't see any other best traffic case scenario. Any project developed at this site will generate traffic, it was just a matter of what will be more impactful. He 21 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 25, 2011 went on to say all the parking will be 100% valet 24/7, and the courtyard is large enough to handle volumes of traffic. Responding to question about the porte cochere and number of vehicle the courtyard could hold, he said 17. He added that just to the right of the valet service area is the underground parking, so if vehicles stacked up, they wouldn't have to go back onto the street. Further responding to the height of The Gardens, he said it was about 50- to 55-feet tall. Mayor Benson invited the developer to give his presentation. MR. MATTHEW JOBLON, Applicant Representative, apologized to the Council and those in favor or against the project as well. He said it became clear after the last meeting that he didn't do a good job of articulating how special this project will be and what it meant for the community. Seeing that he did not achieve that goal, he had Rosewood put together a presentation that will talk about the brand itself, the commitment to this project, and why Palm Desert was the right location. He said the video presentation will include pictures and editorial of the actual brand, which he believed would be far more effective than what he was trying to express. He said at the last meeting someone said Palm Desert had enough luxury hotels with the Marriott and the Hyatt. He agreed they were wonderful hotels, but Rosewood was on a whole other level. He presented a three -minute video followed with another two -minute video of examples of other Rosewood hotels showing the quality of the product. The videos emphasized that Rosewood was not trying to replicate a resort from Mexico or something they did in New York, but take what's special about a marketplace and create a product that will be relevant for the location. He went on to say Rosewood was one of the most luxurious hotel brands in the world that Palm Desert gets to have. He noted the video mentioned that Rosewood is about celebrating the individuality of the location and is not a cookie -cut brand. He said it was typical for Rosewood to go into a marketplace, understand and create something that reflected that location and celebrate it. The project itself has balanced fundamentals to ensure it will succeed. He said they developed case studies on projects that have succeeded and failed in similar markets to make sure it had the right mix. He said the clientele attracted for this project is a natural fit for Palm Desert. Typically, the largest age bracket is between 40 and 50 years old, their annual income and net worth is higher than luxury hotel brands, they have high discretionary spending, which will have a direct effect on El Paseo. This clientele is highly educated, which means they will enjoy a lot of the resources that Palm Desert has to offer. In response to the project's capitalization, he said PDH had strong interest from multiple lenders and equity groups. Their combined partnership has been involved in more than $4 billion of development from ground up to acquisitions and land development. The Project Team has a track record to get any project financed that is financially feasible. As an example, he went out to five different multibillion dollar private equity fund lenders to write him 22 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 25, 2011 letters of interest that he could provide to the Council; the letters were distributed to the Council. However, no one can get serious until they have entitlements, construction documents, or third -party agreements finalized. He said current economic conditions are difficult, but his group was well capitalized with a large track record of experience to get this project executed, and when the time is right, they will get the project started. He is convinced there is a huge demand in the Desert for a 5-star hotel. When speaking to people in the costal cities, whether it is San Diego, Orange, or Los Angeles County, and they speak of the Desert, the first thing someone will say is there is no 5-star hotel out there and question why not. In talking to travel agents, to get an understanding of where that clientele wants to be, many want to come to the Desert, but it's lacking that 5-star experience. He is confident, because of the lack of one, it will help them get the project financed. Lastly, he said the story poles are not feasible or safe at this height, and they do not represent the project accurately and are subject to misrepresentation. He said staff addressed the height issue already, but the standard for story poles is 40 to 45 feet high, and anything higher can be done with a balloon study. He said they collaborated with staff and members of the Sandpiper community to conduct the Balloon Study. As an example, story poles had to be taken down in Birmingham, California. He said this project had so many key components that putting up a pole to articulate the project wouldn't take into consideration landscaping, multiple setbacks, textures, materials, color scheme, and how it fits into the context of the environment. Therefore, the team chose the path of visual simulations. In the past five years, technology has become extremely accurate and by far the best way to articulate a project, because it is captures views from how people will be see a project versus a model that someone will look down on. He said no one will see a project from above, but it will be seen from walking on the street or sitting in their home near the project. He said visual simulations involve a systematic scientific approach with field surveys and data gathering that is done in consultation with City staff, GPS, and Camera Match Technology to make sure it is accurate. Included in the simulation are the actual materials, textures, landscaping, lighting, and shadows. He said when one has a project of this scope and high quality, there are numerous components involved that need to be taken into consideration. He said without any one of those components that one may not even recognize, the whole thing can fall apart. He believed the principal objection here was the height on the northwest corner, but it's that additional partial fourth floor that allows them to deliver a true 5-star hotel, which he didn't think had additional impacts to the project from a visual standpoint. He said a fully compliant building would generate the exact same height issues. For example, if a 3,000 square foot Taco Bell was built, traffic impact would be two times more impactful. If a three -star hotel with smaller rooms was built, the traffic impact would be three times more impactful. Therefore, when taking all of this into consideration, and one thinks about environmental sustainable development, a 5-star model really adheres to that. He displayed a visual simulation 23 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 25, 2011 rendering of the project from the corner of El Paseo and Highway 74 that shows the partial fourth floor. He said the difference was very small, because it setbacks 45 feet from the building. The next two views were from Sandpiper showing the hotel with and without the fourth floor. He reiterated having the fourth floor provided no additional impacts and allows them to deliver a 5-star hotel. With regards to community support, he said the constituents had spoken, because at the last meeting, there were 234 supporters that attended the meeting versus 30 opponents, which was a nine to one ratio of people in support. There were also 600 letters of support versus 61 letters in opposition, which was a ten to one ratio. He also has 800 people on their support list in favor of the project, stating that at the end of the day the numbers tell the story. He said from day one they made efforts to meet and hear from as many people possible to try to incorporate all their comments. They held 200 community meetings, sent out 10,000 pieces of literature, met with all neighboring HOA's multiple times, heard concerns and reacted to them by modifying the building twice, and redid the whole massing of the project. He said they have become active members of all community organizations, and they've been open and transparent with all forms of local media, reporters, newspapers, etc.; he said they made sure their outreach was felt. With regards to how the City knew it was getting a 5-star hotel, he said the Development Agreement included specific language that targets and identifies what a 5-star hotel is and they're obligated to provide it. As an example, they are required to spend a minimum of $75,000 per room in Furniture, Fixtures & Equipment (FF&E), which was very high, and they have to keep their signature restaurant open 24/7 providing three meals a day. He said those were just some of the signatures of what a 5-star hotel is. The Development Agreement also positions the project to be ready to go as soon as the market is ready. He said an earlier item on the agenda that was discussed was the law enforcement services agreement at a cost of $16 million, which was a wonderful cause and extremely important to the City. He said this project will generate more than $2 million in revenue to the City to pay for those types of services, which is not coming from Government spending, but from the private sector. The project will create 250-300 permanent, and 100-150 nonpermanent construction jobs, which will help revitalize the industry in the Desert. He said the high-priced condominiums will improve the neighboring areas and significantly improve property value. Additionally, the project will provide a stimulus to El Paseo from the estimated 30,000 hotel guests per year. He said it was difficult to quantify the increase in sales and benefits, but indirect benefits to the City will be tremendous. Another reason why this will be a 5-star hotel, the Development Agreement includes language to ensure a 5-star is provided. The reality is that this project will not be built unless it is a 5-star hotel, and the residential component of this project drives the financial aspect. He said there is no way to justify selling the condominiums at a high price without a major 5-star brand. He said the market is saturated with 3- and 4-star hotels, and there are the JW Marriott, Hyatt, and Esmeralda. He said they're all 24 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 25, 2011 wonderful hotels and serve its purpose for the community as a whole; however, there are a lot of them. He said this project needs to play off the success of El Paseo and vice versa, because without that relationship, both won't thrive. He said to have the synergy between the two was extraordinarily important. In conclusion, he said Rosewood focuses on the individuality of the community in creating something special. He said the video illustrated the quality of the product and what they will be doing here in Palm Desert. The partial fourth floor has very little impact from the most approximate places, yet it allows the developer to commit to a 5-star hotel. He said this project has tremendous community support, because so many people will benefit from it. He believed there will be significant initial and lasting benefits to the City, stating his alignment with the City was a partnership, because the better the project did, the better the City and community did as well. He said when the market is ready, they will build the first 5-star hotel in Palm Desert at the proposed property. He hoped to add something to Palm Desert that enhanced the community overall. He encouraged the Council to ask questions and offered to answer them. Councilmember Finerty stated she took a moment to review the five letters he presented to the Council and found it interesting that all five companies came up with essentially the same language about understanding that some of the community members had expressed concern about the ability to finance the hotel, and that these concerns are the reality of today's economic times. She found it amazing that all five of them came up with the exact same verbiage for the balance of that paragraph. MR. JOBLON responded because there's really only one thing to say. Councilmember Finerty said it almost seemed the letters were written for them. MR. JOBLON answered absolutely not, stating Councilmember Finerty could call those companies and their internal legal departments to verify the letters. He said to rubber stamp and prepare these types of letters, one had to go through a very good vetting process. Obviously, he told the companies what the situation was and they asked him what to include in the letter, stating he helped in guiding that process, but they wouldn't have said it, if they didn't feel comfortable saying it. He said at the end of the day, he had five institutions saying they worked with this group, know they had developed a successful project, have a great track record, and would love to do more deals with them. The idea was to get the City Council comfortable in their ability to finance this project. He said in no way, shape, or form are the letters a commitment. In fact, they indicate until entitlements, construction documents, and third -party agreements are achieved can they begin to dive into serious negotiations. 25 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 25, 2011 Councilmember Finerty stated Mr. Joblon had indicated that entitlements are key, yet the City has a property on Larkspur that has the ability to have a boutique 5-star hotel, and it has all its entitlements. She said the property is just sitting there vacant waiting for these companies with billions of dollars to help build it. MR. JOBLON said a couple of years ago they looked at that project and determined it was not a 5-star product. He said it was a wonderful project with Tots of positives, but it was very different from the proposed project. First, the Rosewood project has a 30,000 square foot spa. The Larkspur room sizes are too small, the courtyards are too tight, the food and beverage program is not expansive enough for that hotel, and the main functioning space is not elaborate enough as it should be. Additionally, the back of the house in that hotel doesn't work at all. He said it would be very difficult to make a 5-star hotel to work for the scale of that project. Councilmember Finerty said that's how it was pitched to the Council, and that's how that developer received the entitlements. She went on to the issue of the story poles, stating the response from the developer is that they are not feasible or safe at 47 feet, but are safe at 40 to 45 feet, yet the majority of the project is at 47 feet, which was just two feet above what is considered safe. She asked why the developer couldn't install 47-foot story poles. MR. JOBLON responded story poles didn't articulate the tiny differences that show the fourth floor, and it didn't illustrate other important aspects like the setbacks, texture, and landscaping. He said a Balloon Study was provided, and they have complied with every reasonable request. Councilmember Finerty stated story poles are the history of the City of Palm Desert and it is a reasonable request. She said the City has never been told "No" by any Applicant and couldn't believe the attitude being demonstrated here and the reluctancy. It seemed to her that if 40 to 45 feet is safe, then 47 feet was certainly doable. She would agree story poles didn't tell the whole story, but they are a very crucial part of the picture. She said the Council is being asked to make a decision on a part of the project that is an increase of 71 % over what is allowed in height. It would seem all the information would be needed, including the visual simulation, but also the story poles. She went on to say the City had a project called the Hagadone house in south Palm Desert, and the Council received simulations on that project and believed in them. However, those simulations were inaccurate, and the City was left with an irreversible eyesore, which is her concern at this time with this project. Additionally, a lot of developers promised to hide things with plants and landscaping, but it didn't always work out, because the landscaping didn't grow as high or it took years for it to mature. She again pleaded to have story poles installed, keeping in mind her decision will 26 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 25, 2011 be based on the entire package of the landscaping, setbacks, and color scheme. She will accept that simulations are an important part, if only the developer can accept that story poles helped fill in the rest of the story. She said the Hagadone house can be seen from Interstate 10 when one gets off the freeway; that is how much of an irreversible eyesore it is. She noted that today she received more than 200 signatures of people that actually lived in Palm Desert that are opposed to the project versus the list of signatures that have been tallied from out of the area and County. With regard to being market ready, she said Desert Willow has a great golf course, and the City has been trying to get a hotel there for more than 15 years, and during that time, the City has dealt with a lot of top -of -the -line hoteliers, yet it always gets hung up in the financing. Therefore, the City ended up with Starwood Timeshares, because timeshares are a financing mechanism for hotels. She said financing hasn't been available for the past 15 years, and with this economy, is why she questions the feasibility, job creation, and revenue this project proposes it will generate to help run the City. She said the City hasn't been able to do that at Desert Willow, and they've tried hard for 15 years. Lastly, the condominiums that are priced at $2 million can be priced at anything, but selling them is another story. MR. JOBLON stated all points were well taken, but in response to the financing of Desert Willow, he said there was an attempt to do a 4-star hotel in a saturated market with tons of 4-star rooms on golf courses, but there was no differentiation. He reminded the Council he had stated from the very beginning how important it was to have a large residential component, because that's what drives the financing for this project. First, Desert Willow never had that because the Ordinance didn't allow residential. Secondly, in the last 15 years there have been billions of dollars in hotels financed, the Montage in Beverly Hills and many of the Rosewood Hotels as recently as 2007. However, he agreed nothing had been financed or built in any category for the past three years without a full -credit tenant or some other unique situation with government backing. He said the hotel industry is a cycle, a boom or bust, it always went up or down, and it will eventually come back. He said when the market did come back, he had to be prepared to go out and get financing to execute and deliver this project, just like they did on their other $4 billion deals. Mayor Pro Tem Spiegel stated he received an e-mail from Ms. Sarah Drake that stated, "The Rosewood Hotel and Resort Management had changed and was now an Asian company, and their plans are to build only new hotels in Asia." He asked if there was any truth to that statement. MR. JOBLON answered no, stating it was recently bought out by a luxury hotel company based in Asia, and it's looking to expand their brand all over the world. Further responding, he said Rosewood was bought by this Asian 27 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 25, 2011 group a few weeks ago, and the gentleman in the video works for Rosewood and is a direct employee of that group. Mayor Pro Tem Spiegel asked about the cost for a hotel room stay. MR. JOBLON responded they penciled the hotel for an opening in 2014/2015, and the average room rate will be about $425 per night. Councilman Kroonen stated there seemed to be confusion on the part of some folks in town that this is a condo hotel. He asked the developer to elaborate on the distinction between what is being proposed and what is typically known as a condo hotel. MR. JOBLON explained that a typical condo hotel is a hotel room that is sold to an individual who is restricted to only use it 90 days a year; it's rented out the remaining days of the year, and the profit from that one hotel room is split. He said that model was used in 2005 and 2006 as a financing mechanism, because it was a get -rich -quick scheme. It was a way for people to monetize hotels because it was much quicker than building them and having cash flow, and then selling them, but this model is now dead. He said their group has never considered this model in their development careers. He said what they are proposing is a stand-alone basic hotel, which is fully transient. The hotel owns the hotel rooms and markets to anyone. Then there are the residential units, which is fee simple, which are wholly owned units by an individual. The only connection between the two is that they are branded, and the residential units get the advantages of all the services and extras from the hotel. Councilman Kroonen asked what statistics or evidence was there that the 59-unit condo's can be sold at $2 million. MR. JOBLON said they had a market study from Robert Charles Lesser & Company, one of the premiere residential study market companies in the Country, which is on file, because it was submitted to the Architectural Review Commission. They also researched the marketplace, spoke to developers in the Desert who had sold product, and spoke with Bighorn and other brands. He said Sunrise Company provided them access to all the demographic information. He said these brands constantly do their own market research to identify which markets they want to be in and what type of price it can list for. The comprehensive study on the marketplace was done so they could get comfortable with the fact that they could actually sell that many units. He said the residential portion drove the financial aspect of this project, which is why they needed 120,000 square feet of residential that equated to about 59 or 60 units. He recognized they are making a big bet here, because this project is costing $120 million plus, and there will probably be $40 million in equity and $80+ million of construction debt, which 28 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 25, 2011 they will be responsible for to complete the project. He said they've invested three or four years in due diligence in this marketplace to get comfortable with the cost. However, the numbers are the numbers and the report can say whatever it wants, but in the end it's a gut choice. Councilman Kroonen stated everyone recognized the height of the structure, particularly at the north end, is of great concern to everyone. In spending quite a few hours going through the various materials, he recognized the developer successfully diminished the height problem at the south end of the project, but there is still much concern about the north end of it. As he understood it, the height was diminished at the south end by dropping the whole project down, and the simple thought that came to his mind was why not drop down the northern portion of the project as well. MR. JOBLON agreed, stating the north end was dropped 25 feet as well. He said the courtyard that was shown earlier by staff is 25 feet below grade. He said the project was dropped at both ends to ensure they could get the density needed to deliver a 5-star hotel. Councilman Kroonen stated that with respect to the overall architectural design, the project is referred to as a LEED project in the various documents provided to the Council. He said there is a certain amount of hyperbole that this is going to be an architectural landmark, but everyone has their own idea of what is a good-looking building and what isn't. He would like to get a better feeling of the project and suggested inviting an objective party unrelated to the project to comment on its worthiness as an architectural asset to the community and one that fits and carries out themes that are already established here. MR. JOBLON said it was a good point, but architecture is subjective and everyone has their own opinion. He said getting a third -party objective opinion is difficult, because for every ten people that form one opinion, you can have another ten form a different one. However, one would have to understand the process his team went through to get to where they are today. He said they started out with an 800-foot site in length with only 200 feet in width; it is extremely long and not very deep. He said from day one, creating a 5-star program there was the biggest challenge. He had representatives from Rosewood and Montage come to the Desert to meet with the group and architects to see if they could even arrive to a 5-star program before they moved forward officially with the project. He said Rosewood blessed this project, and even Montage was very excited about the architecture and programming of it. He said they had to adhere to the 5-star brand, address concerns of City Staff, City Council, City Planners, and residents and neighbors. He said Ocotillo and Sandpiper residents played a dramatic role in moving this whole project. He said they need the financial feasibility aspect in place to ensure they are building something that is 29 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 25, 2011 efficient and also embraces the architectural heritage of Palm Desert. The goal from day one was to take that heritage and create something that is new and exciting that looked like it's been there for 100 years, but can also be there for 100 years. He said when one has a property that is 800 feet of horizontal objects that are pretty much 300+ feet each, there is not a lot you can do architecturally. He said the solution they came up with is elegant, because it's never going to be boring. The building has depth, there is glass involved, there are overhangs, and shutters at different angles. He said the building will become very interesting when driving by, instead of just looking at a basic pattern when going through. He said modernism is the new luxury in residential and hospitality design, and this clearly shows Palm Desert's rich architectural heritage. Based on the fundamental understanding of the heritage of the Desert community, incorporating both the modernism heritages in response to the desert sun - shades, shadows, etc. - is very important. Today's projects have very clean lines, they have sophisticated detailing, high -relief texture, and a minimalist approach that will provide a sense of sophistication, and a connection to a larger context. He said there are only three materials in this building, because it was kept simples, which provides a sense of elegance. In response to the California desert sun and sky in a fashionable way, there is traditional architecture involved, but also elements of the modernism principles. Some elements that are attractive to the project are deep overhangs and recesses, movable and fixed shutters, and protective finishes that add character. The most important things will be the quality of those materials and textures chosen for the finished product and how it blends together. He said they have invested a lot of money, invested time and attention to this project for the past two/three years, and they have top architects working on this project that have received numerous awards from some of the top five hotels in the United States. Therefore, he stood proudly behind a wonderful architectural project. Councilman Kroonen stated it was his understanding that a number of changes had been made to the project since it was reviewed by the Architectural Review Committee (ARC), and he wondered if there would be a good purpose served by having it referred again to the ARC. MR. JOBLON added that when the ARC approved the project, it was with the condition that it would need to be referred back to them once the project moves forward on design development. Mr. Bagato agreed, stating the project was approved and reduced again by 12,000 square feet. He took the project back to the ARC as an informational report with the latest changes, and the Commission felt the project was improved from the initial approval. However, the latest changes had more to do on the environmental side. He said usually when dealing with mitigation at this level is why the Planning Commission and City Council can look at the 30 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 25, 2011 architecture. He said the design concept drawings will return to the ARC before the construction level, which is the condition placed by the ARC. Councilmember Harnik asked if staff was referring to a statement in the staff report that whatever the Planning Commission and City Council approved, the ARC will see the plans at the construction level when they are ready for plan check. Mr. Bagato answered yes, but the ARC actually placed a condition that they want to review the design construction earlier than the plan check. The ARC will see the details of the materials and how the building is tied together before it gets to the construction drawings; this project will receive a higher level review than most by the ARC. Councilmember Harnik noted that request was made by Commissioner Vuksic. Mr. Bagato agreed. Councilman Kroonen stated he would like to see this project reviewed by the recently formed Sustainability Committee, because there are a number of issues here they can shed light on. Mayor Pro Tem Spiegel asked when did this project have to be decided. Mr. Bagato stated that under the City Ordinance, the Sustainability Committee is not a review committee. However, the project is supposed to be a LEED Certified building and the Applicant already submitted their paperwork to the US Green Building for a permanent plan, but it can be added as a condition. He said the Sustainability Committee can review the check list and details to make sure it will be built as required. He didn't encourage the review to be part of the entitlement process, because it's not required by Ordinance or within the Committee's rules, regulations, or bylaws. Mayor Pro Tem Spiegel stated he understood this project had to be decided by the next City Council meeting or else it would die. Mr. Bagato stated if the Council continued to meet on this item, a decision needed to be made in September, because the environmental documentation expired at the end of September; otherwise, staff will need to redo the environmental document work. He said the Environmental Negative Declaration was noticed on May 5, 2011, and the City has six months to adopt it or do another environmental study and wait another six months. 31 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 25, 2011 \ Councilman Kroonen asked if staff could shed light on the access and egress of fire engines and whether they would have to backup onto the street. MR. JOBLON stated the Fire Department had to sign off on all the appropriate accesses and ways they can access the whole property. Mr. Bagato stated he had to review that issue as well, and in his discussion with the Fire Marshal, in the main driveway in the middle courtyard, a truck can pull in and then back out. He said the underground structures will have sprinkler systems, so fire fighters will never go underground. He said because of the frontage lane along Ocotillo Drive and Highway 74, fires can be fought from those streets. But in the event they had to get in that middle courtyard, they could just back out, so they didn't need a second entrance on Ocotillo Drive. Councilman Kroonen asked how will the developer or Rosewood be guaranteeing that there is a certain amount of access to these facilities for community groups. MR. JOBLON answered they are for the public. With City Council concurrence, Mayor Benson called a recess of the meeting at 5:55 p.m. for a dinner break. She reconvened the meeting at 6:35 p.m. Mayor Benson declared the public hearing open and invited pubic testimony FAVORING or OPPOSING this project. MR. DON GREYBILL, 74-125 Covered Wagon Trail, Palm Desert, stated he attended the last City Council meeting and was disappointed that Councilmember Finerty's request to have story poles didn't pass. Therefore, he build a model to the scale of the maps that were available. He presented his model to the Council, because they will be the ones making a decision on this project. He believed computer -generated photos helped, but it didn't provide the opportunity to drive by the property to look at different angles and be able to choose the shots, because someone else is doing that subjectively, which he didn't think was a good way to convince a community this was a good project. The other alternatives would be the story poles, but it seems to be a problem to have them installed. He decided to do a model, which cost him $5.00, because he only used cardboard, recycled paper, toothpicks, and a string. He knew a company that had the background and capabilities to do a much better job, if the Applicant so desired, which is what he would like them to do, because the City deserved that much. 32 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 25, 2011 MS. BARBARA deBOOM, President CEO of the Palm Desert Chamber of Commerce, stated that on behalf of the Board of Directors who had a 23-0-1 vote to support this project. The one abstention was due to Mayor Pro Tem Spiegel recusing himself from the vote. She said this project was a huge economic engine coming to Palm Desert and what it meant to the City is an estimated $1 million in T.O.T. to support public safety, streets, roads, and parks for the residents. The Council is aware of the mess the State is in, and the threat of losing millions in Redevelopment dollars. How lucky Palm Desert is to have this opportunity to take this positive action and replace some of those funds with the addition of the Rosewood Hotel. She said this project meant 250-300 new jobs for the community, 100-150 temporary construction jobs, in addition to the thousands of people every year shopping and eating in Palm Desert. She said this was not an opportunity that came along every day; therefore, requested that the Council support the Rosewood project for the betterment of the City and the entire Coachella Valley. She recognized change was hard to accept, but in today's world, people needed to get on this new bus and ride it as far and as fast as possible, because no one knew when an opportunity like this will present itself again. She thanked the City Council for the opportunity to speak and thanked them for their service to the City. MS. DOREEN L. EDWARDS, 45-860 Ocotillo Drive, Palm Desert, stated she worked with Shar Don Homeowners Association, which is located on Ocotillo Drive across the street from the proposed hotel site. She said the residents are delighted at the prospect of having a first class 5-star hotel and condos in the community. MR. MAURICE LEBANOFF, 45-325 Sage Lane, Palm Desert, stated he lived two blocks from the proposed project and doubted any of the Councilmembers lived within two blocks of it. He said he had eight condo units and owned the property for almost 30 years. He said his bedroom faced electric wires in the parking lot of the rear of El Paseo, and this new project will represent traffic, people, utilities, and a lot of negative elements, but also a lot of positives. He supports the project, because El Paseo is dying on the vine and it used to be the boulevard of the desert. He walks every day up and down El Paseo and sees stores going out with no new blood coming in, and today, he witnessed a member of this Council literally attack a prospective developer who is trying to bring something good into the City. He noted he didn't know any of the developers or involved with anyone on the project, nor did he have any financial gain, but this project meant new blood and new growth. He got the impression from some members of this Council that this project wasn't needed - almost like it didn't want anything new. He said this site was zoned for a hotel site in 1983, and thirty years later people are still debating what should be there and arguing over a fourth floor that won't be seen. He said the small portion of the fourth floor that is 33 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 25, 2011 above the third floor will not make a whole lot of difference. He came this evening to be supportive of the proposed hotel and thought the Council would be jumping up and down at the opportunity for the City to have a five-star hotel in Palm Desert. He said the best he can hope for is that the Council might approve a Red Lion if he waited another 30 years. He said instead of the Council being negative toward this project, it should be jumping up and down and be supportive of it. MS. GLORIA GREER, 73-347 Tamarisk Street, Palm Desert, stated she's lived in south Palm Desert since 1960 and loved Palm Desert and Rosewood Hotels. She has stayed at the Turtle Creek in Dallas and the one in Santa Fe. She said staying at a Rosewood Hotel is a great experience, and she has stayed in hotels all over the world, and the two Rosewood Hotels she stayed in were the finest experiences she's had, because the ambience, rooms, service, and magnificent food served in the dining room were memorable. She has friends who live in Europe who come to Palm Desert every year, two of them come from London for the holiday's and complain every year that Palm Desert has very nice hotels, but not a 5-star hotel. She said to have a 5-star hotel in Palm Desert is one of the greatest things that can happen to this City, which she loved. She urged the City Council to accept the proposal of having a Rosewood Hotel in Palm Desert. MS. MIMI JONES, 72-700 Bel Air Road, Palm Desert, stated she was a member of numerous trade associations, but this evening she was here solely as a concerned resident. She said she attended all Planning and City Council meetings regarding the Rosewood project and is in favor of the project; she is excited to see it come to fruition. She said the representatives for the project needed to be commended for constantly wanting to accommodate the City and residents with additional requests to make this project a Palm Desert quality gem. She said the City is ever changing and believed it was in everyone's best interest for the Council to make their decision based on the Planning Department's due diligence in making sure this project is the right fit and design for the City, which she believed they had done so. She understood there was concern regarding the funding of this project, but being a trade contractor, it is known that a lender will not commit to funding until the project is approved by the City in which it is being built. As a resident, she is saddened that The Desert Sun had chosen to paint a picture of negativity regarding the project, because it had many supporters as can be seen within this audience. She appreciated the opportunity to speak and hoped the Council will give the Rosewood project a time to bloom. 34 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 25, 2011 MS. KATHLEEN PIPPIN, 73-117 Bel Air Road, Palm Desert, read a prepared statement in favor of the project on behalf of Leeds & Sons Jewelry, President and CEO TERRY WEINER. She also read a letter in support of the project on behalf of Bighorn from General Manager CARL T. CARDINALLI from Bighorn Country Club, which is of record and filed in the City Clerks Office. MR. TYLER SHIGENAGA read a prepared statement on behalf of MR. RICARDO LORETTA, 40-845 Avenida Calafia, a resident and semi- retired international business consultant that stated he and his wife loved Palm Desert, and the proposed hotel on Highway 74 reminded them of a similar situation they went through in Battle Creek, Michigan where that city went through an economic recession that affected many businesses as well. Fortunately, visionaries and local government worked together to see what would be needed to make Battle Creek more attractive, and whatever issues were discussed, there was one idea that was quite visible, which was the need for a first-class hotel to be located downtown Battle Creek where it would be near the merchants, banks, and eateries. He said the decision makers were able to set aside personal difference and agree on one basic principle, which is to do whatever it takes to secure the Tong -term economic future of a community. Long story short, the Stouffers Hotel was built in 1981 and Battle Creek prospered. There is a message in the Battle Creek story that has relevance to the upscale hotel in Palm Desert, which he hopes will be read and accepted in the spirit intended. He believed the proposed Rosewood project has merit with ongoing benefits that far outweigh any negatives. He supports the project, because it will bring new jobs, increase commerce, contribute to the City's revenue stream, which will be a first-class destination for tourist and local citizens. MS. MARY HELEN KELLY, 46-100 Burroweed Lane, Palm Desert, stated she disagreed with comments made that people cared more about revenue for the City than they do about the citizens, because she cares about the citizens, which is why she was in favor of this project. She said this project will help pay for fire and police protection, parks, roads, sports parks, and all the wonderful things Palm Desert offers. She is deeply in favor of any project that develops income sources, because it helped the residents of Palm Desert directly. She believed concerns raised regarding height and traffic have been addressed by staff as they have researched it already, and the developer has provided pictures which show clearly it is a beautiful project. Therefore, she didn't believe traffic would be a problem, and the building and landscaping will add beauty to the area. She also didn't believe the building will do anything to hurt the magnificent mountain views. What she appreciated about these developers is that they worked with neighbors to make adjustments to the plans, but she felt it was very important to keep those things that made it a 5-star hotel, because that's what will fit in with El Paseo. She said there were two things that would determine if this hotel will 35 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 25, 2011 be built. One was the financing, but there was no way to control that aspect, and the other is the spirit of cooperation and helpfulness to the project by City government and staff, which can be controlled. She urged the City Council to approve the project and not postpone it any longer. MR. FRED FERN, 73-061 EI Paseo, Palm Desert, stated he loved the beauty of Palm Desert and its mountains, but the City needed to be wise, because it that site had a building with one floor, it would still block views. He was pleased with how these developers had approached the whole project. He is a registered investment advisor and has a lot of clients on El Paseo; his office is located above The Daily Grill. He said keeping tenants is very important especially in this economic environment and having this hotel will help the merchants. The walkway between the hotel and El Paseo, which is part of the plan, is very special, because it will help everyone there. He said this project was not just important to him and his clients, because El Paseo has been a blessing to this City for many years; it has created tax dollars to help maintain the necessities, quality, and class that it's had. He reiterated that he loved this City and has lived in Pam Desert for many years, including at Ironwood Country Club. He said he and all his clients are in support of this project and hoped the Council had the ability to pass it. MR. TOM NOBLE, 72-944 Joshua Street, Palm Desert, stated he's written a letter to the Planning Commission and copied it for the City Council, but in the interest of time, will try not to repeat himself. He said he couldn't see how the City could pass up an opportunity to have such a facility in Palm Desert. He is a full-time resident now, but for many years he split his time between here and Santa Monica where many stores closed, which at times happened in clusters. He said El Paseo has a lot of empty spaces and nothing is being replaced, so this hotel is needed, and the City had one shot at getting one of this quality, which was far more superior than a lower -level quality one with more rooms. In the last few years, the City installed underground wires making the drive up Highway 74 much more beautiful, and in a couple of years the City will have the proposed hotel with top-quality architecture built or it will continue to have a vacant lot. He noted he had no involvement with the project or developer and was here as a resident and local business person. He said it was true that a project cannot be financed until entitlements are achieved, and if anyone can get financing in this market, it would be a Rosewood brand hotel. MR. ALLAN LEVIN, 76-768 Bishop Place, Palm Desert, stated he's been a resident of Palm Desert for more than 28 years and a business owner in the City for 17 years. He's seen this resort community evolve into a true world -class destination for people to visit, live, work, and play, and the development of the Rosewood Hotel is the next step in this evolution. He has followed this project through its numerous phases and has seen the developer work with both City staff and neighbors to create not only an 36 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 25, 2011 economically viable hotel, but also an upscale aesthetically pleasing addition to Palm Desert. He was in attendance at the June 21 Planning Commission meeting and saw the tremendous support for the project from a large number of community members in the audience today as well as the numerous letters of support submitted to the Commission. He said this project will bring revenue to the City and merchants of El Paseo and the much needed jobs to the local economy. The developers have made a commitment to the community to use local contractors whenever possible during the construction of the project. He encouraged the City Council to approve this project. MS. MEG FIRESTONE, Owner of J. Russell Salon, 72-996 El Paseo, Palm Desert, stated she is a longtime merchant of Palm Desert, she and her family opened their first business here in 1972, and has been a recipient of the City's positive growth for the past 39 years. She has always worked and admired the City Council with the planning needs as it relates to jobs, housing, taxing, and running of the City. She is in favor of this project, because Rosewood will enhance what Palm Desert already has as a world -class destination. MR. BRUCE MAIZE, 48-476 Stillwater Drive, La Quinta, stated he is a local businessman and his office is in Palm Desert; at one time he lived in Palm Desert for eight years. He was anguish to see some of the comments made to the Applicant this evening as accusatory with innuendoes. Additionally, he was also bothered by comments made at the last City Council meeting on the disapproval of this project. It is beyond his comprehension why the City and residents of Palm Desert wouldn't welcome this project with open arms, because it can be done in a cooperative fashion under the guidance of what is appropriate for this City to complete. There is currently a fair amount of passion coming from residents and neighbors who oppose this project because of its architecture, mass, traffic, noise, financing, and overall negative impact to the City. For the most part, people oppose change they are not accustomed to; however, objections can have merit and if presented in a public forum, they can gain exposure and credibility. He said this property has been vacant for years and people are objecting to the impact of their view, but the fact is that this building could have been a very high - density hotel, which seems to be missing from these comments. He said what this Applicant is proposing is a luxury refinement to a vacant eyesore that borders on the Valley's premiere eating and shopping establishments. It is the responsibility of the various components of City government to listen to all sides and review the volumes of facts, studies, comments of both support and opposition, and discern what is right for the City. He believed it was the obligation of the City Council to rise above personal bias from both the Council and its residents and look at what is best for Palm Desert. Aside from the obvious and immediate positive impact generated by the construction of this project with the creation of the much needed economic 37 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 25, 2011 boost to the local economy, the reality is that this project will not be built immediately. Therefore, the Council needs to recognize what this project will provide to the City in the long term. He said this project was a flagship development that will further enhance the City's image locally and internationally. He said the numerous benefits have been articulated by the Applicant and speakers, and the Council owed it to the current and future residents and the greater Coachella Valley to bring this project to Palm Desert. He encouraged the City Council to listen and evaluate the comments that have been made, but look for what will create and perpetuate the passion for the City. He said as stewards of the City, he believed there was an obligation to look to the future and approve the recommendation of the Planning Commission and avoid being caught up in any potential missteps, which can cause a disservice to the future of the City, Valley, and citizens. MR. ALAN PACE, 78-790 Sanita Drive, La Quinta, stated his business is in Palm Desert on Green Way, and he came to voice his support for growth and development, especially for quality projects like this one. He said if the Council can approve this project, it will send the same message that it is pro -growth and development. MR. IAN HELMSTADTER, 46-150 Verba Santa, Palm Desert, stated he has lived and owned a business in Palm Desert for 20 years. The name of his business is Automated Telecom, which is located on Highway 111. He said as a frequent pedestrian of El Paseo, he and his wife walk, eat, and shop there, but every summer stores vacate and they wait to see what will return. He supports this project, because it is needed, and he couldn't image anything else in that vacant property, which he drove by every day. He said something needed to go there and hopefully it will be this project. MR. RAY RODRIGUEZ, 39-417 Palace Drive, Palm Desert, stated he was compelled to express support for the project, because he had received too many calls from people who are too timid to approach the Council. He offered his perspective as a man who's lived in Palm Desert a long time and chose to raise his family here. He has purchased real estate in Palm Desert, but had not purchased wisely, because he's not a developer or tried to put things together to sell, nor did he leave people holding the bag. He tries to make sustainable decisions that will allow for generations to come. He said it's been identified that when it's time to make a decision, the old -age system is location, location, location. He believed it speaks to why the City has had trouble securing a 5-star hotel for the Desert Willow location, and why the City had one of the top brands in the marketplace eager to go to El Paseo. He said the vacant lot is a superior location, and the City has done a great job of developing the El Paseo corridor with high -end housing around it. He said the City created a beautiful spot for a 5-star hotel, which is why there was the interest. Two things that lend themselves to success are the 38 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 25, 2011 Rosewood concept involved and superior management. The walking aspect for the 5-star guests cannot be overstated. He said the residents at this hotel will do the same thing his family did this summer, which was to choose a community where they could walk everywhere. His family was able to walk off their evening dinner, walk to get their coffee, and were able to immerse themselves into the community, which is what the high -end visitor will want plus more. However, Rosewood is looking to attract clients that are a lot more successful and smarter than he, because they are looking to have a superior lifestyle. He asked the Council not to allow the struggles at Desert Willow cloud its thinking, because this was the right location for this project, and it was the right match for it. He said the Council has done a wonderful job of scrutinizing this project, because it has asked the questions and represented the various facets of this community. However, there comes a time, from a business perspective, to move forward, which was tonight. He said there was no better time to build than right now, because cost wise for construction, the $75,000 that will be invested per room will go twice as far, if not three times than it would have two or four years ago. He asked the Council to forget about the messenger, because the message had been spoken this evening and urged the Council to approve the project. MR. ROBERT PIPPIN , 73-117 Bel Air Road, Palm Desert, stated he would pass his time, because everything he wanted to say was already eloquently stated. MR. MICHAEL SHIMER, Owner of Tommy Bahama's at 73595 El Paseo, stated he was here this evening as the President of the El Paseo Business Association and on behalf of the merchants who have asked for the Council's support of this project. He said if one traveled to La Jolla, Rodeo Drive, or any other resort with a great shopping district, there are hotels around it, and the merchants will tell you that a huge percentage of their business came from the people staying at those nearby hotels. One of the things he has been trying to do for years on El Paseo is to get merchants to stay open late. When he speaks to the Concierges Association, the repeated comment for the past 16 years has been that they want to send more guests to shop at El Paseo at night, because there is nothing else to do but eat there in the evenings. He said it must be mind boggling to the Council to see that El Paseo has achieved world -class resort status, but it couldn't turn back now. The only way to keep moving forward was to do projects such as the one being proposed. He hoped one day there will also be a 4- or 5-star hotel on the vacant lot on Larkspur. MR. ROBERT HARVEY, 130 Vista Valle, Palm Desert, stated he was a school teacher at Palm Desert Charter Middle School, and his wife has a business in Palm Desert. He urged the Council to vote in favor of this project, because he viewed this project as a no-brainer. He said the City had a project that far exceeds what the zoning code asks for, and the developer 39 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 25, 2011 is willing to go beyond what the City has asked. He said an economy that is made of dollars, jobs, and hope, it didn't seem there should be any hesitation, yet he heard statements like "I moved here for ... ," and "I remember when . . ," or concerns with traffic and height, which he understood; however, he believed there were many misconceptions about this hotel. First he researched a boutique hotel, which prides itself on its amenities and services that generally cater to the affluent. He visited a boutique hotel on July 8, and sat in the Lobby for 45 minutes and saw four or five vehicles go in and out. He spoke to a valet worker and asked if traffic was a problem. The response was that they worked with the City and coordinated staffing accordingly. Additionally, events are never too large to ensure service is quiet and efficient, because people went there for the quiet and didn't want to be noticed. Weddings were described as elegant and discreet events. He then researched some of the Rosewood properties, and one was the San Isidro Ranch, which was known for the John and Jackie Kennedy wedding. What immediately came to his mind was quiet and discreet, which is why other high -profile people stayed there. He's never stayed at a Rosewood, but did stay at St. Regis, which was comparable to the Carlyle in New York City. He recalled that in the fall of 2006, the St. Regis hotel was hosting a United Nations event. The City was busy and the lobby was bustling, but on the street with the bellman, doorman, and concierges, it ran like clockwork. He said the Carlyle ran the same, because he looked it up on line and the trip advisor described it as quiet, discreet, elegant, and efficient. With regards to traffic, he stood by the side of the road on Highway 74 to see what would happen, and he counted 1,000 vehicles, but because he knew how efficient these hotels operated, it could add two vehicles every three minutes over the course of the day, which he believed Palm Desert can handle. A building that is comparable to the height that is being proposed is St. Margaret's Church, which is four -stories high that sits on the wash on Highway 74. He said there are many aspects that can be frustrating, but cities that aren't willing to change become ghost towns. He asked the Council to consider all the facts, because it had a project that will create opportunity, hope, and dollars. The following individuals spoke in OPPOSITION to the project: MS. SUSIE PEAT, 73-223 Willow Street, Palm Desert, stated she applauded everyone who stood up to the podium to address the Council on an issue, because it took time, effort, and courage. She said as a nearby resident, she opposed this project, because of the increase traffic and difficult access to the property due to the elimination of the frontage road. She said Highway 74 is the main artery for residents and visitors that navigating through this stretch of highway was already tough enough. She said with no frontage road or alternate access, problems are imminent. Additionally, she couldn't believe the proposed height was being considered in Palm Desert. She offered the Coachella Valley Water District (CVWD) building on Hovley Lane 40 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 25, 2011 East as an example, stating the building is two -stories tall and it will forever block the mountain views of the community at Mountain View Falls. She said the stars are no longer visible at night, because the CVWD building is lit up nightly, even on Sunday nights. She distributed photographs of the CVWD building that shows the impact of that building, which is not even as tall as the proposed Rosewood Hotel. She said it would be great to have an appropriate resized hotel at the proposed location, but this project needed to be retooled. She said it's the right building in the wrong location or the wrong building in the right location, but either way, it just didn't fit. MS. BRIDGETZAPPIA, 40-686 Via Fonda, Palm Desert, stated she and her husband are concerned about this project. Mr. Joblon's comment at the July meeting still haunts her, after stating that he has been developing in cities such as New York, Miami Beach, and Las Vegas, where he stated that today's new style is Modern Urban. She said Mr. Joblon assumed or expected Palm Desert to readily abandon its own belief's and grasp blindly to his mantra. She said this project as presented today didn't work in the best interest of the community. She asked the Council to review the petitions submitted earlier from those life -minded residents. The words of Councilmember Harnik also haunt her greatly, because her final words were of concern for the developer's time and money. She said Palm Desert had staff, the ARC, Planning Commission, and City Manager to assist developers in aligning their project with City standards to avoid wasting their time and money. She questioned what happened to the safeguards, stating that now the five elected officials were the final safeguard. She asked the Council to not abandon the gold standards that protected views, height limitations, setbacks, noise factors, and traffic safety, which ensured quality living for residents and tourist alike. If the Council chose to go with the alternative, she asked that they use their power to change this one-sided contract into a development agreement that binds Mr. Joblon's campaign promises into a reality for the City. If this project is to be approved based on money to the City and abundant jobs, including the majority use of local construction companies, she asked that it be put in writing. She said the Development Agreement should include placing an expiration date of one year, not allow the gifting of the frontage road to this developer until they are fully financed and have pulled permits, guarantee nothing less than a 5-star rating hotel, that Rosewood Company is the only one that can build, and remove the ability to sell the land to another company. She said good leadership is not swayed by developers campaign promises, and as a resident, she asked the City Council to reject this proposal as presented today and/or ensure this contract is solid for the benefit of the City. 41 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 25, 2011 MR. CRAIG ARMSTRONG, 72-748 Beavertail Street, Palm Desert, stated he turned in letters to the Council and his comments at the last City Council meeting were articulated very well by the City Clerk, therefore, he won't elaborate on that further. In response to the video the developer presented on behalf of Rosewood, he said he's never referred to the City or businesses as models, projects, or a new valuable asset to his collection; he referred to them as home. His main points are to maintain the height development standard for the Desert, which has made Palm Desert a five-star City and is sought after by developers. He said the City should not have to grant variances or easements to justify a developer's return on their investment. He's attended the Planning Commission meetings, read the ARC minutes, and attended the last City Council meeting, and he is surprised by the amount of unanswered questions and more so by the previous committees, City staff, and manager. For example, staff glossing over the massing by referring to the Marriott as an example of height, when that building setbacks a quarter mile from any road. He is concerned that this type of glossing over by City staff, jeopardized the integrity of the due diligence that has been done to this point and is jeopardizing the existing building codes, not to mention the City's liability. He said this project has been highly hyped and it's a stab at a short-term solution to a long-term problem. He said El Paseo has been dealing with this kind of thing since the inception, and it targets a very small elite class that's seasonal. He said as everyone is learning, during these current times, all of the models and economic studies are completely being broken, because it's dealing with a new environment, but one should not be reliant on golf courses, jewelry stores, and steak houses. He said most business people would agree that one would change their business plan and not rely on someone else, City, or residents to band -aid a long-term problem. He agreed with the comment made that the City can move forward or move back, but it couldn't stay the same, but asked the Council to move ahead of things such as this and not give in to flawed planned developments. He asked the Council to rely on facts and their experience, which has worked to build a City the residents loved to live in and not give in to promises made by hyped promoters that are not respecting the City and its residents. MS. JAN COFFYN, 363 Sandpiper, Palm Desert, asked the City Council to listen carefully and take it to heart, and asked Mr. Joblon to not interpret comments as negative, but as wisdom. She acknowledged the Council was faced with a difficult decision and that in the end people will either love them or hate them. She said that after attending all the meetings, she was still confused because in one article she read the condominiums may sell for up to $1 million, and Mr. Joblon stated they will sell for $2 million with promises that 250-300 local people will be employed. She questioned whether they will be full-time employees and what will happen in the summer when there are only three residents in the hotel. Her main objection from the beginning is the architecture, because it was just a mass with two big boxes with shutters. 42 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 25, 2011 She said perhaps it just wasn't her taste or style and would have preferred something more in conformity and harmony with the desert. The developers stated there will be trees to hide the walls from Highway 74, but an article she read indicated the project will have desert planting, yet she has never seen desert planting grow 50-feet high; therefore, she questions what is true and real. She would like to see the Council and the developer's team sit down and discuss this further. After about the third meeting, she heard Mr. Joblon say he couldn't make any more concession, because he had already made many. However, she disagreed and thought he needed to make a few more concessions to get this project to work and urged the Council and developer to sit down and talk. She reiterated the Council was about to make a difficult decision and asked that it take into consideration the needs of Palm Desert and its residents. MS. DIANNE FUNK, 72-755 Pitahaya, Palm Desert, stated she submitted a letter to the City Council today and had only planned to attend this meeting to listen. However, after the presentation she had new questions. She said everyone seemed to be looking for something wonderful, stating the business community is excited about more money, the City is hoping for a wonderful project, the developer is hoping for gold, and she too, would like something wonderful as well. She liked change and looked forward to seeing a project on the corner of where she lived, but was concerned that she lived only half a block down the road and had not been approached or involved with any meetings with the developer. She heard about the project through an article in the newspaper, but the location map in the newspaper and in today's presentation did not include Pitahaya Street, which is where she lives and is concerned what the impact will be. She said traffic is her main concern, having witnessed a horrible accident there, which resulted fatal, and she has experienced many dangerous moments when trying to exit Pitahaya. She didn't know how many employees will go into the hotel and how the numbers of 72 in the morning and 62 in the evening came into play. She said everyone talked about a five-star hotel, yet she envisioned a big setting surrounded by golf courses. She knew the views for the neighborhoods would be impacted, but didn't know what the people in the hotel will see to give it a 5-star view. She heard the hotel will include meeting and conference room areas, which added to her traffic concern. She didn't think one hotel will revitalize an entire community or an entire City, but certainly hoped it would help everyone. She said story poles are important and wondered if a signal Tight or stop light will be included and where will it be located, because that question hadn't been answered or seen any evidence of it. 43 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 25, 2011 MR. CHRISTOPHER SHIELDS, 45-710 Verba Santa, Palm Desert, stated he moved into his home a year ago, and apologized if he repeated something already covered, but he just returned from a deployment to Iraq, so he didn't know what had taken place in previous meetings. He said as someone who derives all his salary from sales tax revenue and tax revenue, when he originally heard about the project he was fairly excited. He said it was good for the City to properly plan for current and future developments to continue support for City operations. However, after he and his wife researched the project, he found there are significant issues with it and how it will be laid out. He said there seems to be a mentality that one is either for or against the project, so you are either pro- or anti -business, which is polarizing the issue and clouding things, making the decision not the best one for either party. He said Palm Desert is an amazing City with a lot of history and potential for growth. In his opinion, the City didn't need to cater to developers, because the City had the location and clientele that came into this community. The developer should be making concessions to the City and not the other way around. If the City is going to give up the frontage road, which has value, and the City changes the height variance, what message will that send to other developers who will come or have tried to develop in Palm Desert previously. If he was a developer who had tried to develop in the City before and was turned down on a project, it would be an anti -business message in itself. He said he lives on Verba Santa Drive, and they currently have a problem with people cutting around the intersection of Monterey Avenue and Highway 74. He has already called the City regarding this issue along with residents at Shadow Mountain who have called and complained about people speeding. The response has been that they can't devote a police officer to enforce those traffic laws, and the City is potentially going to add a project that will increase traffic, yet it's already unable to service existing users. He said the City needs to review this project and set parameters and rules that are easy for a developer to work with and bring in the right development instead of trying to solve the loss of revenue on El Paseo with a project that won't start potentially for another four years. Councilmember Finerty thanked Mr. Shields for serving our Country. MR. NEAL MAZE, 212 Sandpiper, Palm Desert, stated he understood everyone's point of view as he was in business since he was 30 years old and was now 72. He understood people feel like this project will bring more business to their store, which may or may not be true. However, he felt there was more to Palm Desert than money, like quality of life, which is why he retired here. He also loved living in the Sandpiper Community, but unfortunately, this project will dramatically affect the quality of his life. He received calls from 65 neighbors who are on vacation and won't be back for another few months, but they are concerned about the impact it will have to their quality of life. His biggest issue is the noise that will be caused by construction, which the developer refuted, but it will reach 140 decibels. He 44 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 25, 2011 said the site is surrounded by residences on three sides, and City has a 55-decibel limit in a residential neighborhood from stationary noise, which he confirmed with the Code Department. He said the Code states that anything in excess of 55-decibels is detrimental to people's health. He said construction decibels will be astronomical, because one table saw puts out 110 decibels, one lawn mower is 107 decibels, and one diesel engine at idle is 85 decibels. When construction begins there will be 100 people on the ground running table saws and digging 50-foot deep for underground parking that no one will be able to live in their home and will need to leave. He said construction will impact more than 100 homes and businesses, because these residents who are current customers of El Paseo will stop shopping for four years, which won't help El Paseo one bit. He didn't believe this project was a win -win, it was either/or. He wouldn't be opposed to the project if it wasn't so obscenely large with the height exceptions. He also disagreed with the City proposing to give away the frontage road, which placed the building 30 feet closer to his front door. He said the building could have been 160 feet away as a two-story building with his seven -foot wall, which would have been far less obtrusive. MS. MARGUERITE STETSON, 263 Sandpiper, Palm Desert, submitted a letter in opposition to the project that is of record and filed in the City Clerk's Office. MR. CAROL FANELLI, 182 Sandpiper, Palm Desert, stated she attended all the meetings from the Architectural Review Commission to the present time, and her feelings are the same with regards to the height, the mass, and financing. She stated the project would probably be all right if it was sized down again, which the developer said they couldn't do; therefore, she was opposed to the project. She also read a letter in opposition to the project on behalf of MR. RONALD S. GORMAN who lives at 45-715 Verba Santa Drive, Palm Desert. His letter included statements that the project was noncompliant with the General Plan, project is too dense and tall for the area, and this item should be postponed until October when all residents are here. A copy of the letter is on file with the City Clerk's Office. Mayor Benson stated that in response to the comments about postponing this project because some residents are not here, she explained that since the City incorporated 30+ years ago, they have dealt with this issue of hearing cases during the summer. However, the City operated 12 months out of the year, and the City couldn't be closed down. Therefore, some projects fell during the summer and others didn't, but it was not by purpose that this project was being heard today. 45 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 25, 2011 MS. KIM HOUSKEN, 73-237 Somera, Palm Desert, stated she previously shared her concerns about this project, but she had a new point to address. She said based on the compilation of the six different parcels into one large one, she would consider this project to be a super block project. She said in Section 25.30.290, which is the exact same code the Planning Department uses regarding setbacks, states "... it is one foot of setback for every one foot in height." That same section states, "On lots where the city has vacated a right-of-way in favor of a super block development concept, new buildings should not encroach into the vacated property and shall be setback as if the former property line was still in existence." If this code is followed, the setback along Highway 74 would be increased and the two buildings would be more compatible with the adjacent buildings, which has been a concern expressed over and over again, specifically from residents at Sandpiper. The fact that this building will be substantially closer to Highway 74 than the adjacent tots, her reading of the Code would say it needs to setback from the original setback line. She said the underground parking would actually be under the vacated frontage road, and she didn't know if that would be considered encroaching into the space or not, but it was interesting. She also questioned the labeling of the lot as an interior lot, as it would be more appropriate to call it a three lot, because it had frontage and parallel streets. She said the rear setback along Ocotillo Drive has been applied as if it was an interior lot, but the spirit of an interior lot would be that one had a neighbor behind you, and in this case there isn't; therefore, the setback on Ocotillo Drive is not adequate. In respect to models and story poles, she is surprised Mr. Joblon had such problems with story poles, when the City of Beverly Hills has a policy of requiring them, if a project interfered with views or if it exceeded the height limit. She said story poles were a tool to assist not only councilmembers and staff, but also the residents that will be affected by the project; they portray mass, bulk, scale, compatibility, and provide a true visual with regard to the effect on this particular designated scenic corridor. She spoke with a story pole installer that assured her a 60-foot story pole is easily accomplished, particularly considering this is a wide-open lot. Another story pole installer, on his website, claims he can install up to 85 feet, and if one needed to go higher, cranes can be brought in. She said it was her understanding that development agreements are typically used to extract more concessions from a developer. However, in this case, it seems the City is giving more than it is receiving. Also of concern, is the lack of City approval required should the developer sell or assign transfer the project to someone else. She would recommend the project be scaled back to something that would be compatible with the neighborhood with regard to height, massing, setbacks, traffic, noise, and eliminate the off -site parking option, which she thought was incredibly short-sighted based on the traffic that can accumulate in the short space between Highway 74 and Ocotillo Drive. Additionally, the project needed to be scaled back with regards to preserving the view on the scenic corridor. 46 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 25, 2011 To that point, if there is a development agreement executed, the dedication of nearly an acre of City land that had not be appraised should be conditioned to the pulling of building permits and no transfer of property would occur before then. Lastly, she claimed many of the letters of support are duplicates and most of them are not actual Palm Desert residents. Not only are they out of the County, but even noticed a gentleman from Ohio is strongly in support of the Rosewood Hotel. She stated the Council had a big decision to make and agreed this project shouldn't be so polarizing, because she and others are concerned residents. She said she wasn't anti -development and was tired of hearing it. She said someone submitted a letter in support of the project that refers to the Sandpiper Mobile Home Park and the no -growth folks over there, which she disagreed. She found it distasteful that this person mislabeled nearby residents, and even if it was a mobile home park, they would have the same rights as anyone else. It troubles her that the City is getting these elitist opinions from some of these supporters of the project. She gave the City Clerk a sample of what a story pole can actually achieve where one gets a real idea of the scale and massing of a project. She agreed story poles had its drawbacks, but thought visual simulations had them as well. MR. ED PACK, 74-647 Azurite Circle East, Palm Desert, stated he wasn't for or against this project, but would like to state some facts. As a former councilmember for eight years, his primary job was public safety, infrastructure, and providing jobs for the people in the community. This particular 5-star hotel will generate approximately 250 jobs, and with a clientele of 30,000 visitors spending money in the City, it will provide approximately 1,000 to 1,100 direct and indirect jobs based on the dollar value. He said those number will turn seven or eight times in a Valley such as this one; therefore, with the current unemployment rate, it meant a lot to be able to put 1,000 people to work. He said the City should forget about the Redevelopment Agency, because that will only provide a nickel on a dollar, if it was lucky, but this project will generate up to $2 million a year in T.O.T., sales tax, and property tax to the coffers of the City, which is money Sacramento couldn't touch. He reiterated he was not in favor or against the project, but it was a viable one that would generate jobs and money for the City, which was greatly needed in this Valley. MR. ANDREW K. FOGG, Land Use Attorney for the Applicant, stated there were a couple of questions asked by Councilman Kroonen, which he would like to provide greater clarity. One was on the northern building and whether that building could be sunken further into the ground; however, it has a couple of constraints technically that would make it difficult. He explained the project has three separate entrances into the project, the main drive where hotel guests check in; a southern drive available for residents; and a northern drive that is for service vehicles and trash pickup. He said everything is designed to go underground and to be fully enclosed, which 47 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 25, 2011 would minimize operational noise significantly. He said to lower the building further, the grade would be extraordinarily challenging for service vehicles to enter that site. An additional constraint is that the City has a policy where all developers on projects of this sort do a Water Quality Management Plan (WQMP), which is complicated and requires retention of storm water on site. Their WQMP has been approved by staff, but it was challenging to lower the building, but it was needed to ensure storm water is maintained and flowed properly. Therefore, they would have significant reservations lowering the building further into the ground and still be able to accomplish the same sort of retention and WQMP. As a side note, in his many years working with developers and practicing in the area, he's never seen a developer like Mr. Joblon try to outreach or attend so many community meetings to really make an earnest effort. Even though he represented the Applicant and is a paid advocate, he felt the need to express that from his perspective. He said the Applicant might have missed a few people in his outreach, but not many. In response to the story poles, there is significant concern, because installing them above 45 feet creates significant safety concerns. He understood staff will be discussing story poles under Item XVIII A-2 on this agenda, where staff will discuss guidelines and what they learned from other jurisdictions, stating other cities engaged in that dialog as well. He said there is special consideration that went into installing story poles where you need a safety radius, guide wires that spread out for a certain distance, and they would be concerned staking the corners in this building when there are residences 20 feet away, and on the southern side there is the Imago Gallery. He said on the northern side, they would need to be able to maintain the safety perimeter and installing the guide wires would be difficult. In their experience, generally above 35 to 40 feet, the standard practice is to provide a balloon study, which they did for this project and is part of the Council's packet. In addition, the visual simulations are highly accurate and have been used in the Valley before on a number of projects. He was confident with the firm they used, because they are extraordinarily precise, and from a technical standpoint, they stood behind the visual simulation submitted. He believed the visual simulations will give the Council an accurate view of what the City will receive as a future project. He said the architectural team of Nadel Architects, Inc. and Rottet Studio are world renowned. He said one of the lead financial partners of the group is a friend of Architect Richard Meyer, who worked on the Getty Museum, helped bring in Richard Riveire from Rottet Studio and the Nadel team, which is a testament to the quality of the architecture the City will receive. One Councilmember mentioned bringing in an independent third -party body to evaluate the architecture, but he believed the ARC conducted a number of hearings and served that function admirably. He said significant changes were made to the project as a result of their review, and the ARC will continue to be involved in future design issues. He pointed out Rosewood Hotel will be just as concerned and insist on high -quality materials and making sure everything is done right. He believed there is a synergy and alignment between Rosewood and the City 48 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 25, 2011 in terms of creating the best possible product and use for the site. He couldn't agree more with the resident who talked about calling a project home, which is what the Rosewood team has discussed and want to take part to add and contribute to that environment. MR. JOHN CRISTE, Terra Nova Planning & Research, stated that up to one year ago, they were located in Palm Springs for 26 years, and is now proud to say they are located at 42-635 Melanie Place, Palm Desert, where they plan to be for another 26 years. He said they managed the View Shot Analysis in this project, but they have done them for the past 25 years in the Valley on a wide variety of projects. One was the Desert Gateway Project that Bill Carver brought into town, and regardless of what the Council thought about its appearance, the environmental impact report and analysis were done by the same firm, and the project looks exactly the way those modeling efforts looked. They also did extensive modeling for projects like the Ritz -Carlton Hotel expansion, several hotels in Palm Springs, including the Museum Marketplace project that John Wessman is trying to get built, the Canyon Hotel, and most recently the Mandarin Hotel. He said they used state-of-the-art approaches to model this hotel and the way it will look in the real world, in context, and as designed by the architects. He said they used the architects CAD files, used the engineer's CAD files, and did not arbitrarily select the areas where they would do the view shot analysis, those were selected by staff using maps and ariel photos provided to them. Finally, he said the first obligation is to the City and its residents. He said they did work for private -sector developers, but they also represented the public when they did environmental analysis, which will always be their first concern. He said they have been very careful and are concerned about the interest of the surrounding property owners as well as the City overall. MR. JOBLON stated the reason why Palm Desert has been so successful and is considered the top luxury community within the Desert, is because of its foresight into the future, and the ability to have the appropriate zoning regulations to encourage El Paseo to happen here as opposed to any other city. When you see some of the land -use restrictions that are happening in other towns in the Desert, those towns are now suffering, and Palm Desert has been able to thrive. He believed this was another case where one had to see into the future to realize that to get the next Rodeo Drive, Fifth Avenue, or Madison Avenue, a 5-star hotel needs to be here to provide that clientele. He believed this was absolutely the right location, because of the connectivity to El Paseo, which was key. He said he used the word "Urban" to describe the project because it is not sprawled on a 150-acre golf course. When one talks about sustainability, LEED Certification, and the US Green Building certification, and all of their guidelines, they promote urbanism in respect to the appropriate use of land. Therefore, when one looks at the criteria and how you get rated, it takes into consideration how much mass is on the land, the use of open space, and connectivity to urban areas and 49 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 25, 2011 walking ability. He said this was the only site that can provide the scale for a 5-star hotel where you can get the programming appropriate for the connectivity to El Paseo, which is why they didn't have any doubts about the site. He said some of the top architects in the United States are working on this projects that were part of many successful hotels, it had top 5-star brands contributing to the layout of this property, it went through 200 community meetings to get the feedback from the community, and they conducted case studies on successful and failed hotels. He said a speaker mentioned there were only benefits to the developer and for the development agreement to include concession from the developer, but at the end of the day, they are willing to invest $120 million of their own money, get loans from the bank, and personally need to guarantee completion of the project. He said there is a risk and reward for everything, and what he was saying is that there are not many people in cities anywhere in the Country wanting to bet $120 million and their time for the next two years to build a project that had so many benefits to the community. He said whatever the outcome is, some people will be upset, stating that if a Taco Bell was built at this location, the construction noise will be higher than the 55 decibels, and if he pulled the weeds and mowed the lawn, it will also be above 55 decibels. The goal was to take a consensus from everyone to try and meet the needs of as many people as possible, and this team can say they've done everything in their power to do that. He appreciated the opportunity to present this project and offered to answer questions. Mayor Benson asked that the driveway accesses be displayed and how Highway 74 and Pitahaya Street aligned. MR. JOBLON displayed a map and pointed to the service and resident entrances, and showed how the project aligned to Pitahaya Street. With no further testimony offered, Mayor Benson declared the public hearing closed. Councilmember Finerty stated her previous comments still stand, and after listening to public testimony and rebuttal from the Applicant, a few things came through, one was that this was a polarizing issue. She said she wasn't ani-business or anti -development, but believed the City needed development that made sense and fit this particular parcel; this project was just too massive and big for the area. She agreed the City was giving more than it was getting and felt the tail was wagging the dog here. Again, she couldn't understand why it was okay to install story poles for 40 to 45 feet and not 47 feet, which is the height for the majority of the building. She acknowledged story poles were not, the be all and end all, and they need to work in concert with everything else, yet they are used in Palo Verdes and Beverly Hills, which are topnotch communities conforming to their high standards. She said story poles lend themselves toward keeping standards in place. With 50 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 25, 2011 respect to the Development Agreement, she felt this Applicant needed to be tied down to ensure there is a solid deal for the City and not the developer, because she didn't feel that was the case at this time. She believed the City was giving up a huge height exception, the frontage road, and whether the Asian Company will take up Rosewood with the new leadership was uncertain, and there is an ability to sell this property once entitlements are given. She said the City needed to tighten this down to make sure it was a good deal for the City, because right now she didn't feel it was and would have to cast a no vote. However, she is willing to continue this item to continue discussions as far as a development agreement so that the City is assured of the promises that were made this evening. Councilmember Harnik thanked everyone for stepping up to speak in favor, against, neutral, and/or exploring the project. She appreciated the participation and thought it was imperative for the success of the City that everyone took part in this process. She also thanked Mr. Shield's for serving our Country. She said there are many parts to this project all loved and agreed on, but to Councilmember Finerty's point, its unfortunate this project has become polarizing, which is the last thing the Council wanted in the community. She said this project will provide LEED Certification, which is complying with the high Palm Desert energy standards. She noted story poles was the issue at the last meeting, and once again at this one. However, she believed story poles were the best tool the City had years ago, but today there are far superior tools to give information to garner understanding of what this project will mean in the community. She said the computer renderings of the actual project are so valuable, because one can see what the results will be and have an understanding of how it will fit on the site and community. She met staff at the site and asked them to bring with them the Balloon Study along and computer -generated renderings, and it was made clear to her how futile a balloon study is/was when compared to the renderings, because the visual simulations told the story. She also walked down the Sandpiper Community, which she felt was a wonderful community, and walked away with a whole lot of knowledge and information. She saw the high wall that is on Highway 74 and some of the issues raised, which gave her greater understanding of that community. She also walked down Ocotillo Drive and knocked on doors right up to the northern most point where the hotel will be and learned much from that as well. She left her card and cell phone number at every house and asked that they call her, and those she spoke with were in favor of the hotel. However, she didn't speak to everyone, but knew there will be those who loved the project and those that didn't, because it's not what they bought into. She said the height continually gets discussed, but the City has made exceptions with other projects, because it's not that there is one rule which must be stood by. She said the Council must remain flexible to do what is best for the entire community. She noted the City went above the height limit at The Gardens, McCallum Theatre, St. Margaret's Church, and the church she went to on 51 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 25, 2011 Portola Avenue. Therefore, the City has made exceptions when there is a good reason and it's in the best interest to the Community. She said one speaker made a great point about taking a different path, because this was a different age and new economic climate. She said an empty blank spot didn't belong in a business district, and a hotel there was a new path, which is what it was zoned for. She received the mailings for the meetings on this project, because she lived in the area, and she attend them, so she wasn't sure why others didn't. She believed everyone or any business associated with golfing recognized the City has reached a saturation with golf courses in the Valley. She said this project wasn't just about generating revenue, but also jobs, quality of life, and the future of this community. She stated that in 1983 when the Palm Desert City Council approved and zoned a project for 248 rooms, she believed Councilmembers Romeo S. Puluqi, Phyllis Jackson, Walt H. Snyder, Richard S. Kelly, and Roy Wilson knew what they were doing when they considered the best use of that space for this community. She said this project has been in the City for two years going through the ARC and Planning Commission. She said those that served on the Council in 1983 and those serving on the ARC and Planning Commission put their best thinking forward, because they love Palm Desert and want nothing but the best for the City. She said the City had great staff, and they have been working long and hard these past years, and you can tell by all the reports provided to this Council. She once again thanked everyone for participating. Councilman Kroonen expressed his appreciation to everyone who stood forth and spoken an opinion. He said the Council had the obligation and responsibility to listen to all those in attendance, but also have an ear to the ground out in the community. Therefore, his conclusion is based on everything heard this evening and other things he heard as he went around the community soliciting input on this topic. He said this was a difficult situation and it has been divisive, stating he hoped that when a decision is made everyone will come together and realize it was one that was made for the betterment of the community. He said January 27, 1969, stood out in his mind, because it was his first day of employment in Palm Desert at College of the Desert. At the time he lived in Palm Springs, then soon after he relocated to Palm Desert because he liked what he saw. However, at that time Monterey Avenue was a major north/south artery, which ended at the entrance to College of the Desert. He can recall trying to cross Highway 111 coming up Monterey Avenue, which then became Highway 74 where there was a four-way stop sign, then as you reached El Paseo there was a two-way stop sign. In fact, he recalls telling his wife they will move to Palm Desert when a four-way stop sign is installed at the corner of El Paseo and Highway 74. His point being that change had taken place, which has been constructive and well -planned. He said he knew many, if not all Councilmembers, who have served on the Council since the City incorporated in 1973, including Mayor Benson whom this Council has the privilege of continuing to serve with this evening. He went on to say he knew 52 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 25, 2011 how deeply his colleagues have been concerned about protecting the quality of life in this community. He said he wrote down all the positives and negatives, and he has solicited the negatives. He said Mr. Fogg and Mr. Joblon responded to the concerns presented earlier in the discussion, and he listened to what they had to say and felt they were plausible responses to his concerns. He knew the great effort put forth on the part of the Planning staff and others who have been involved, stating they have been straight forward with the Council, and they have provided good information. Having served on the review of the General Plan Committee approximately 10 years ago and knowing something about the General Plan of the community, he believed the project was consistent, which he thought was an appropriate next step in the development of Palm Desert. He was pleased to hear that the ARC will continue to be involved, and the Sustainability Committee will be incorporated. He noted it is known that this property had previously been designated for use as a hostelry. He will keep his eyes open as the architecture is more fully developed. He looked at the traffic situation and took into consideration the jobs that will be created through construction and activities of the hotel. He is concerned about not having a sustainable economy in this community, because once Sacramento starts chipping away at something as they started to with Redevelopment, it will continue. He said even in the best of worlds, there will come a day when redevelopment projects are not there to sustain it and come to an end, which is the nature of redevelopment; it is a time -certain activity. Therefore, this Council needs to be looking at revenue for the future of the community. He knew there are many who oppose or support the project, so it really came down to him making his own individual decision based on all the information received. He felt the project was planned carefully, staff did excellent work, and he intends to see that the project continues to be supervised; therefore, he will vote in favor of the project. Mayor Pro Tem Spiegel stated he moved to Palm Desert 25 years ago and there was a motel at this location called the Adobe, which had a restaurant called Iron Gate. He recalled they had a piano player called Baby Buddha who was very good. He originally moved here with his wife from Connecticut to open up the May Company store, which no longer exists. He was the first General Manager of the May Company here, but the offices in Los Angeles were worried that people from Palm Springs wouldn't come this far to shop, so instead of calling it May Company Palm Desert Town Center, it was called May Company Palm City. The store opened up and it was tremendously successful, because there wasn't anything like it in the area. However, the head of the real estate committee and then Councilmember Roy Wilson met with him. They informed him that bumper stickers would be handed out that said "Where the hell is May Company Palm City." He called the President of May Company Southern California to explain the problem, and the response was the name could be called whatever, because it was doing so well; therefore, the name was changed to Palm Desert Town Center. Now 53 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 25, 2011 years later, he still lives in the same house and sees what is happening to the economy, the Valley, and Palm Desert. He said this past year, this Council passed a General Fund Budget of more than $50 million, and of that amount, 50% went to police and fire services, which have never been cut since he's served on the Council. On a prior agenda item this evening, everyone heard police and fire services will probably get an increase next year, and the funds need to come from somewhere. He explained funds for such services came from sales tax and hotel occupancy tax, and this project would generate both. Additionally, this project will generate $2- or $3 million in revenue, which was important to the City to keep it running. In the meantime, he agreed with Councilmember Harnik that this project has been very polarizing. He said it was a conundrum and the Council couldn't make everyone happy. He agreed there will be noise, but anything built there will create noise. He reminded everyone that this property was approved for a Red Lion Hotel with 248 rooms in 1983, and when it was approved, they tore down the Adobe Hotel and restaurant, and the property has been dormant since. He understood the concerns of some of the residents who lived nearby and that part of the corridor view will be impacted, but something had to go in that location. He said staff has indicated traffic will not be impacted, because the hotel will provide valet parking, which will prohibit traffic from being a problem, and for the reasons stated he was in favor of the project. Mayor Benson stated she's been in Palm Desert since the City incorporated in 1973, and this evening she listened to all the compliments given on the good planning, first-class City it is, and restrictions placed and enforced for the betterment of the City, which is what made Palm Desert what it is today. She said Palm Desert will make it without this 5-star hotel, because the Council has been strict in everything it has attempted to accomplish, and it was the out of town developers that want concessions. She said local developers' worked with the Council, and they have made some of the finest buildings here. She said before St. Margaret's Church was ever built, they came to her first because they knew her feelings on height limits. However, the church is set up against the mountains, which is why the height was okay. She said the height of the Marriott is okay, but the height for this hotel is not, because it's too much on too little land. Additionally, to think that 59 people are going to spend $2 million to buy condos is somebody's pipe dream and it will never happen. She said the City has survived through thick and thin, because it always paid for every single thing and never improved anything that it didn't have the money in the bank for. She said many cities depend on the Government to help them, but Palm Desert never has, and it has one of the healthiest reserves of any city in California today. She agreed it was a good spot for a hotel and for people to walk around during the season, but she didn't think they will be out there walking between June, July, August, and September. However, she felt this was not the right hotel for this location. Additionally, she is very disappointed with staff, because in her estimation they should be neutral. She said staff is supposed to provide 54 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 25, 2011 the Council with information, help the Council make a decision, show both sides of the story, and is not suppose to give the developer a pitch when they come before the Council. She said when a developer is calling the shots on a project, staff is not doing their job right. She felt very bad that the Chamber choose to call the residents of Palm Desert NIMBYs, because those are the people that vote the Council into office and will continue to do so, but not if projects like this get approved. She said it was one thing to let one project get by, because there are already rumors of someone wanting to change the height on a building on El Paseo and is waiting to see the outcome on this project. She said prior Councilmembers who served on the Council helped make these strict standards to make Palm Desert what it is today. She agreed a hotel should go at this location and is pro -Palm Desert, but is not in agreement with putting the wrong thing in the wrong place and eroding all that has been built. Mayor Pro Tem Spiegel moved to, by Minute Motion: 1) Pursuant to Section 25.37.050 of the Palm Desert Municipal Code, find that the Development Agreement is consistent with the General Plan as described in the Findings of City Council Resolution No. 2011 - 72, and waive further reading and pass Ordinance No. 1225 to second reading, approving Development Agreement No. 09-507; 2) Waive further reading and adopt Resolution No. 2011 - 72, approving Precise Plan and Conditional Use Permit No. 09-507, Vesting Tentative Tract Map 36284, and a Mitigated Negative Declaration related thereto, subject to attached conditions. Motion was seconded by Harnik. Councilmember Harnik stated this decision had been tough for all Councilmembers, and this project will be watched closely, because people tend to equate everything with the one that went awry, which is the Hagadone house. She trusted staff will watch and monitor the permit process with the checks and balances in place. Mayor Benson called for the vote, and the motion carried by a 3-2 vote, with Finerty and Benson voting NO. B. CONSIDERATION OF AMENDING THE CITY'S DEVELOPMENT REVIEW AND INSPECTION SERVICES FEE SCHEDULES TO INCORPORATE PROPOSED CHANGES IN FEES BASED ON THE COMPREHENSIVE COST OF SERVICES STUDY TO BECOME EFFECTIVE AS REQUIRED BY CITY POLICY AND TO REINSTATE PERMIT FEES FOR WATER HEATER AND HVAC INSPECTION. Mr. Gibson stated this was a request to update the City's development and inspection fees. The last time the Council adopted and moved forward with the fees was in December 2006, but there was action taken after that date and there was a postponement, so the fees were not implemented the following year. The Council directed staff to research other cities and the findings were included in the staff report and incorporated into the Rose 55 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 25, 2011 Institute Study. He noted the City of Coachella, Indian Wells, La Quinta, and Palm Springs increased their fees over the last couple of years. He said staff is recommending approval to implement the fees. He said if Council had questions with regards to rebates and items not charged to residents, Mr. Grance was available to answer questions on that aspect. Mayor Pro Tem Spiegel commented that Palm Desert fees would be less than other cities in the Valley. Mr. Gibson agreed. Mayor Pro Tem Spiegel stated he only had a problem with charging for replacing the water heater. At one time the City charged for it, but people weren't coming to the City to pull a permit. He said the City has no way of knowing if they are being changed out, and today with the chance of earthquakes, a new water heater needs to be tied in when installed. Mr. Gibson noted the report was provided to the Building Industry Association located here in the Valley and the one in Riverside, and both indicated they want to continue postponement of these increases for another period of time. Mayor Benson declared the public hearing open and invited public testimony FAVORING or OPPOSING this matter. MR. BILL BLANKENSHIP, Riverside County Building Industry Association, 77-570 Springfield Lane, Suite E, Palm Desert, stated they are part of this Valley and proud to be here. He asked the Council to hold off on implementing these fees, because some of them will go up as much as 35% and any increase to the industry is detrimental to job creation. He said there hadn't been a lot of building activity, especially for residential homes. In the past 31 months, there have been 155 single-family dwelling unit permits pulled in Palm Desert, which was an all-time low. In the last year, the cost of development has increased significantly due to the new building standards, Title 24 standards, and the mandatory fire sprinklers; the Statewide average in housing construction went up $8,000 to $10,000 per unit in those changes alone. He said many cities and municipalities across Southern California, especially in Riverside County, are lowering their Development Impact Fees, but he was not here making that request. He asked the Council not to raise the over-the-counter fees at this time, because many are looking at projects and finished lots, and any kind of cost increase would be detrimental to that cost creation. In response to Mayor Pro Tem Spiegel's comment that Palm Desert had the lowest fees, he said he wasn't sure where Palm Desert was in comparison to the rest of the cities, but any kind of increase at this time was not the best course of action from the industry's standpoint. 56 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 25, 2011 Mr. Gibson reminded the Council that every city performed the Rose Institute Survey conducted in 2007, and the information provided in the staff report was based on that study, by which staff determined that Palm Desert's fees would be less than other cities. MR. JAMES BROWNYARD, Desert Valleys Builders Association, stated they would like to have more business and have this economy turned around, and wished it could say increase in fees wouldn't be significant, but they will be. He said they have gone through the methodology and believed the study is appropriate, but the timing is not. He said the industry is not pulling many building permits to make it significant to them or the City. He recognized they made this same plea in December 2007, and they are not asking for a 12-month delay in implementation, but to review it again in July 2012. He asked the Council to adopt the study but delay implementation, because at this time it was not doable. He agreed with Mr. Blankenship that builders/developers are speculating on finished lots. They are looking across this Valley for what they can pencil out. In response to Mayor Pro Tem Spiegel's question regarding fees comparable to other cities, he said the Rose Institute Study included all fees, not just the City's, which can be broken out in a different fashion. He said the numbers Mr. Gibson provided to the Council included the school districts, water, sewer, and any one of those can make the overall cost per unit fluctuate. With no further testimony offered, Mayor Benson declared the public hearing closed. Councilmember Harnik stated everyone is facing tremendous economic uncertainty, including the City. She liked the idea of not raising any fees for 12-months, but didn't think that would work. However, the Council will be reviewing the budget in January due to the Redevelopment Agency issue and suggested holding off on raising the fees until January and review it at that time. Mayor Benson stated that rather than coming back in January, she was in favor of not increasing the fees at this time, but agreed to look at this in March or April when the Fiscal Year 2012-2013 budget is reviewed, stating the Council will probably have a better idea on what RDA will do. She thought it would be more prudent to wait until people started building again before the City starts raising fees. Councilmember Harnik concurred. Mayor Benson moved to, by Minute Motion, continue consideration of this matter until the City undertakes the process of formulating its Fiscal Year 2012-2013 Budget. Motion was seconded by Kroonen and carried by a 5-0 vote. 57 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 25, 2011 VIII. REPORTS AND REMARKS A. CITY MANAGER 1. City Manager Meeting Summaries for the Period of July 6 - August 16, 2011. Rec: Receive and file. With City Council concurrence, the City Manager's Summaries for the Period of July 6 - August 16, 2011, were received and filed. 2. Report Regarding Use of Story Poles for Future Land Use Applications. Mr. Wohlmuth referred to the memo distributed for the agenda packets, and he asked Council for direction on how to approach the requirement for story poles, photo simulation, or balloon studies in the future so that Planning staff could include in the Zoning Code and enforce. Councilmember Flnerty said she'd like to see anything over 10% of variances in height be required to provide story poles and visual simulations. She felt it was important to have as much information as possible to make an informed decision. Mayor Benson agreed. Responding to Mr. Wohlmuth's question, Mr. Bagato responded that staff could return with a separate ordinance amendment fairly quickly. However, staff was in the process of rewriting the Zoning Ordinance in the coming year and was expected to take about nine (9) months. Councilmember Finerty didn't want to wait that long; she'd already been approached by developers who want to go higher now that the Rosewood Hotel was approved on today's agenda. She noted it was a slippery slope; once an application was approved as was tonight, there will be people coming in with requests to go higher along El Paseo. Mr. Bagato asked if there would be room for any variations. In his research, including a call to Staking Laguna of Laguna Beach, which advised that they can do 20- to 30-footers, and they can go up to 40 feet, but it becomes questionable and difficult to do; anything above 45 feet cannot be done with staking systems. He also called a planner at the City of Rancho Palos Verdes, who said that they require balloon studies with the taller buildings. He was unable to find 58 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 25, 2011 anyone doing story poles over 45 feet; they all use balloons, boom or ladder trucks (some cities use their fire trucks on site). Councilmember Finerty said she would accept a ladder truck to represent the height. She believed it would be important to have story poles for anything up to 45 feet; beyond that height, a ladder truck or like representation of how tall the building would appear would be acceptable. She said as the City's learned, visual simulations didn't always provide an accurate reflection. Further, she was dismayed that it was necessary to direct staff to perform this study by way of an ordinance, because it was never an issue with prior projects. Mr. Bagato noted that the applicant (PDH Partners) was asked to provide a height representation, and a balloon study was done initially. Additionally with the photo simulations, they were advised that it was part of the process in past approvals. Mr. Wohlmuth pointed out that it was necessary for the City to have a means of enforcing the regulations in order to require such methods of study. He said staff would develop an ordinance and return to City Council as soon as possible. 3. West Nile Virus - The Living Desert Mr. Wohlmuth made note of the recent report of a mosquito with West Nile Virus found at The Living Desert. He said the City's Risk Manager had been working closely with Coachella Valley Mosquito and Vector Control District (CVMVCD) on this matter. Although there were three infected mosquitos found in the Coachella Valley, only one was at The Living Desert in Palm Desert. He referred to CVMVCD's press release, adding that further tests of mosquitos trapped at The Living Desert and surrounding area found no mosquitos with the Virus. CVMVCD is working with The Living Desert on procedures to reduce mosquito populations. Since no other infected mosquitos were found anywhere else in Palm Desert, CVMVCD will not be conducting any generalized mosquito spraying anywhere in the City. He emphasized that no cases of human West Nile Virus had been reported this year in all of Riverside County. He and Mr. Greenwood had been working on the Haystack Channel and Alamo area, where excess drainage has been an issue; this time of year the drainage is from sprinkler over -spray and can become stagnant. Staff is looking at mitigation measures, the Channel is currently being cleaned weekly, in addition to other means —improvements to the Channel to eliminate standing water and reduce maintenance costs. It could be part of the City's contract for catch basin cleaning. 59 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 25, 2011 4. Council Chamber Audio -Visual Update Schedule Lastly, Mr. Wohlmuth hoped City Council was comfortable with progress on the Council Chamber System Update. He called attention to the four new cameras that have been installed in the Chamber. He said the complete system was to be up and running today, and he congratulated Mr. Gibson and Mr. von Helf on a fine job of keeping the contractors on task in order to conduct today's meeting. At the next meeting on September 8, it was hoped that video -recording of the meeting could occur to test the system, cameras, and broadcast streaming to the Internet, but it wouldn't yet be available to the public in order to get all the settings correct. Then at the September 29 meeting, plans were to go live with an Internet test and record the meeting on CD for testing before forwarding to Time Warner Cablevision. If all the testing is complete and satisfactory, the October 13 meeting will be live -streamed and a CD recording of the meeting will be delivered to Time Warner for broadcast the following week. B. CITY ATTORNEY None C. CITY CLERK None D. PUBLIC SAFETY o Fire Department None o Police Department None E. MAYOR AND MEMBERS OF THE CITY COUNCIL o City Council Reauests for Action: 1. Potential Sphere of Influence/Annexation North of 1-10 — Mayor Pro Tem Spiegel said he'd spoken with Mr. Wohlmuth about looking at the area in the City's Sphere of influence on the north side of 1-10 to see if it was economically feasible. He noted that all of the businesses in that area have a 60 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 25, 2011 Palm Desert address but weren't within City limits, they were in unincorporated Riverside County, including the Classic Club. In response to inquiry, he felt Sun City pretty much took care of itself for public safety and roads, but he wanted to look at including them. Further responding, he didn't intend for Bermuda Dunes to be included, only area north of the freeway. He said about a year ago there were constituents who came to City Council asking to be within the City's Sphere because Indio was looking at them — Sun City, the recreational vehicle dealer, and a pretty active commercial community there. He felt it was worth looking at. Councilmembers asked if it included Tri-Palms and how the City intended to address all of that area. Mr. Wohlmuth noted that related to tonight's earlier Oral Communications speaker regarding Cathedral City's Sphere of Influence Request to LAFCO, staff was preparing a report for the September 8 agenda, which would start the discussion. Additionally, staff would include an item to discuss a feasibility study for requesting Sphere of Influence, depending on the timing, and/or potential annexation of Thousand Palms. In his prior discussions with LAFCO Executive Officer George Spiliotis, they always wanted to know about Bermuda Dunes, and connected Bermuda Dunes and Thousand Palms. He recalled that the Council previously modified its Sphere of Influence to include Sun City and a bit of the area across from Washington Street back into Palm Desert's Sphere. If the City wanted to annex parts of Sun City, it would annex the surrounding commercial area; otherwise, it wouldn't matter how much Sun City cost, it still wouldn't pencil out. Staff will enter into some discussions with LAFCO, already knowing that Bermuda Dunes is a challenge with their streets, public safety costs, etc., but will see if the two communities still have to be connected. Mayor Pro Tem Spiegel observed that Bermuda Dunes was cost prohibitive, because it doesn't have gutters and sidewalks. Mayor Benson added that there was no commercial area there either. Mayor Pro Tem Spiegel noted that La Quinta had been cherry -picking the Bermuda Dunes community, which those residents dislike. 61 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 25, 2011 Mr. Wohlmuth confirmed that staff will have a report for both those issues on September 8. 2. Mobile Home Park Rent Control Ordinance — Councilmember Finerty requested a copy of the draft ordinance being proposed for amendment to the City's Mobile Home Park Rent Control regulation. 3. Vendor Local Preference - Mayor Benson remarked that Palm Desert Chamber of Commerce President/CEO Barbara deBoom requested the City take a look at a preference policy for local vendors. She believed the City had such an policy on file and wondered if something had changed. Mr. Wohlmuth responded that the former local purchase preference specified that if everything was equal, including price, the City would award to the local bidder. However, he noted that nothing was exactly even with bids. He recalled for City Council that City Attorney David Erwin had some legal concerns about giving preference, citing that San Francisco was the only successful entity to have such a policy. He noted that he'd spoken with Assistant City Attorney Bob Hargreaves earlier this evening about the matter, and he will do some further investigation. Councilmembers noted that the City of Indio gave a 10% preference. Mr. Wohlmuth pointed out that a local preference policy would not apply to Public Works Act Projects; it cannot apply to those and would only apply to other types of purchases. Responding to question, he said when there was outside funding for capital improvement projects, the City definitely could not apply a preference. Even if it was only City funds used for a Public Works -type project, applying a preference would still not be allowed. He said if it was purchases for supplies or services that were not related to the Public Works Act, then it may be allowed. He reiterated that Mr. Hargreaves was going to research and agreed to have such a matter on a future City Council agenda for consideration. o City Council Consideration of Travel Reauests and Reports: 1. Mobility Conference — Councilmember Harnik reported that she would participate in the Conference for effective and efficient transportation in the community, being held in 62 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING AUGUST 25, 2011 Los Angeles on September 5-6. She will report back at the next meeting. 2. Aspen Accord — Responding to question, Councilmember Finerty said her trip to Europe to participate in the Accord went very well, and she had the opportunity to meet a second member of the California Public Utilities Commission, Timothy Alan Simon. She added this was a good thing, because the City was accustomed to working with President Peevey, and they were able to have one-on-one discussions regarding energy needs in the Coachella Valley. She said Commissioner Simon was very receptive to some of the suggestions; Palm Desert will continue meeting with him, and together they will open doors in order to meet with other Commissioners. o City Council Committee Reoorts: None o City Council Comments: 1. California State University. San Bernardino - Palm Desert — Mayor Pro Tem Spiegel said he had met with two professors from a school in Hiroshima, Japan, at the Palm Desert Campus. He said they would be bringing 30 women students to Palm Desert, and they were looking for host homes. o Suaaested Items for Future City Council Meetina Agendas Please refer to Item Nos. 1 and 3 under City Council Requests for Action, above. XIX. ADJOURNMENT On a motion by Spiegel, second by Finerty, and unanimous vote of the City Council, Mayor Benson adjourned the meeting at 9:26 p.m. �� JEAN M. BENS , ibR ATTEST: R HELLE D. KLASS , CITY CLERK CITY OF PALM DESERT, CALIFORNIA 63