HomeMy WebLinkAbout2011-07-14MINUTES
REGULAR PALM DESERT CITY COUNCIL MEETING
THURSDAY, JULY 14, 2011
CIVIC CENTER COUNCIL CHAMBER
73510 FRED WARING DRIVE, PALM DESERT, CA 92260
I. CALL TO ORDER - 3:00 P.M.
Mayor Pro Tem Spiegel convened the meeting at 3:00 p.m.
II. ROLL CALL
Present:
Councilmember Cindy Finerty
Councilmember Jan C. Harnik
Councilman William R. Kroonen
Mayor Pro Tem Robert A. Spiegel
Absent:
Mayor Jean M. Benson
Also Present:
John M. Wohlmuth, City Manager/RDA Executive Director
David J. Erwin, City Attorney
Justin McCarthy, ACM for Redevelopment
Stephen Y. Aryan, Assistant to the City Manager
Rachelle D. Klassen, City Clerk
Russell Grance, Director of Building & Safety
Lauri Aylaian, Director of Community Development
Janet M. Moore, Director of Housing
Mark Greenwood, Director of Public Works
Frankie Riddle, Director of Special Programs
J. Luis Espinoza, Assistant Finance Director
Steve Brooker, Fire Marshal, Palm Desert Fire/Riverside Co. Fire Dept./Cal Fire
Andrew Shouse, Asst. Chief, Palm Desert Police/Riverside Co. Sheriffs Dept.
Grace L. Mendoza, Deputy City Clerk
III. ORAL COMMUNICATIONS - A (CLOSED SESSION ITEMS)
None
IV. ADJOURN TO CLOSED SESSION
Reauest for Closed Session:
Conference with Real Property Negotiator pursuant to Government Code
Section 54956.8:
MINUTES
REGULAR PALM DESERT CITY COUNCIL MEETING JULY 14, 2011
1) Property: Lease Property - Parkview Professional Office Complex -
73710 Fred Waring Drive, Suite Nos. 201 and 203,
Palm Desert
Negotiating Parties:
Agency: John M. Wohlmuth/Paul S. Gibson/City of Palm Desert
Property Owner: City of Palm Desert
Other Parties: Virginia Waring International Piano Competition
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) Ruhnau, Ruhnau, Clarke & Associates v. City of Palm Desert/
Palm Desert Redevelopment Agency, Riverside County Superior
Court, Case No. INC 10008463
Conference with Legal Counsel regarding significant exposure to litigation
pursuant to Government Code Section 54956.9(b):
Number of potential cases: 2
Conference with Legal Counsel regarding potential to initiate litigation
pursuant to Government Code Section 54956.9(c):
Number of potential cases: 1
Public Employment pursuant to Government Code Section 54957:
Title of Position: City Attorney's Office
Mr. Erwin asked for the City Council's consideration of adding two items to today's
agenda for Closed Session:
1) Conference with Real Property Negotiator pursuant to Government Code
Section 54956.8:
Property: APN 622-020-089
Negotiating Parties:
Agency: John M. Wohlmuth/Justin McCarthy/City of Palm Desert/
Palm Desert Redevelopment Agency/
Palm Desert Housing Authority
Property Owner: DesertArc
Under Negotiation: x Price x Terms of Payment
2
MINUTES
REGULAR PALM DESERT CITY COUNCIL MEETING JULY 14, 2011
2) Conference with Legal Counsel regarding existing litigation pursuant to
Government Code Section 54956.9(a):
City of Palm Desert/Palm Desert Redevelopment Agency v.
GHA Enterprises, Riverside County Superior Court, Case No. INC 10007782
Upon a motion by Kroonen, second by Finerty, and 4-0 vote of the City Council, with
Benson ABSENT, the two aforementioned Closed Session items were added to the
agenda.
With City Council concurrence, Mayor Pro Tem Spiegel adjourned the meeting to
Closed Session at 3:01 p.m. He reconvened the meeting at 4:05 p.m.
V. RECONVENE REGULAR MEETING - 4:00 P.M.
A. REPORT ON ACTION FROM CLOSED SESSION.
None
VI. PLEDGE OF ALLEGIANCE TO THE FLAG OF
THE UNITED STATES OF AMERICA - Mayor Pro Tem Robert A. Spiegel
VII. INVOCATION - Councilmember Cindy Finerty
VIII. ORAL COMMUNICATIONS - B
MR. CARL CIESLIKOWSKI, Spyglass Lane, Palm Desert, addressed the City
Council regarding two issues he felt were important to the health and safety of the
public. He provided a written statement to City Councilmembers, which was
received for the record and is now on file in the City Clerk's Office; it sets out both
his concerns and suggested solutions. First, he was troubled about the drainage
of water on El Paseo, which led him to contact Mr. Greenwood about his concerns.
He believed there were not enough sewage lines to take away the nuisance water,
and the water that does run off into the percolation areas was likely polluted.
Secondly, he was concerned about the City's dog parks, after having dog trainers,
veterinarians, and other professionals advise him against using dog parks because
of disease and other factors. He hoped his suggestions would be provided to staff
for further feasibility review.
Mayor Pro Tem Spiegel said he would refer the issues to staff.
MS. ELIZABETH SEED, resident of One Quail Place Apartments, Palm Desert,
stated that her lease there is renewed each August, including the requirement for
income recertification for her rental rate. She has been waiting for the new rent
3
MINUTES
REGULAR PALM DESERT CITY COUNCIL MEETING JULY 14, 2011
amount but was told this week by a member of the Apartments' management staff
that the City has not provided them with the new rent guidelines. In order for her to
budget, it was necessary to know what the rent would be, and she was seeking
assistance from the City Council for this purpose.
Mayor Pro Tem Spiegel assured Ms. Seed that staff would be in touch with her to
resolve the issue.
IX. AWARDS, PRESENTATIONS, AND APPOINTMENTS
None
X. CONSENT CALENDAR
A. MINUTES of the Regular City Council Meeting of June 23, 2011.
Rec: Approve as presented.
B. CLAIMS AND DEMANDS AGAINST THE CITY TREASURY - Warrant
Nos. 260, 261, 264, 265, 269, 270, and 271.
Rec: Approve as presented.
C. APPLICATION FOR ALCOHOLIC BEVERAGE LICENSE by Macroe
Industries, LLC, 267 Santa Barbara Circle, Palm Desert.
Rec: Receive and file.
D. CITY COMMITTEE AND COMMISSION MEETING MINUTES.
1. Library Promotion Committee Meeting of March 16, 2011.
2. Marketing Committee Meeting of May 17, 2011.
Rec: Receive and file.
E. INDEPENDENT ACCOUNTANTS' REPORT on Agreed -upon Procedures
Performed on the Measure "A" Transportation Fund for the Fiscal Year
Ended June 30, 2010.
Rec: Receive and file.
4
MINUTES
REGULAR PALM DESERT CITY COUNCIL MEETING JULY 14, 2011
F. REQUEST FOR APPROVAL of the Streamlined Use of Vendors for the
Special Programs Department for Solid Waste and Recycling and for Special
Events by Granting an Exception to Bidding Requirements — Fiscal Year
2011-2012.
Rec: By Minute Motion: 1) Grant an exception to bidding requirements for
FY 2011-2012, as provided for by Section 3.32.090 of the
Palm Desert Municipal Code; 2) approve the Special
Programs/Events Vendor List attached to the accompanying staff
report as presented.
G. REQUEST FOR APPROVAL of the Streamlined Use of Vendors for the
Corporation Yard by Granting Exception to Bidding Requirements and
Approving the Original Equipment Manufacturer (OEM) Vendor List and the
Corporation Yard Various Vendors and Qualified Service Providers List —
Fiscal Year 2011-2012.
Rec: By Minute Motion: 1) Grant an exception to bidding requirements, as
provided for by Section 3.32.090 of the Palm Desert Municipal Code,
for FY 2011-2012; 2) approve the OEM Vendor List; 3) approve the
Corporation Yard Various Vendors and Qualified Service Providers
List — as presented in the accompanying staff report.
H. REQUEST FOR DECLARATION of Surplus Property and Authorization for
Disposal — Information Systems Department Miscellaneous Computer and
Electronics Equipment.
Rec: By Minute Motion, declare items listed on the accompanying staff
report's Exhibit "A" as surplus property and authorize disposal as
appropriate.
I. REQUEST FOR RATIFICATION of the Disposal of Surplus Property from
The Desert Willow Golf Resort — Unsalvageable Equipment/Fixed Assets
from the Kitchen/Building and Lakeview Terrace Expansion Projects.
Removed for separate consideration under Section XI, Consent Items Held
Over. Please see that portion of the Minutes for Council discussion and
action.
J. REQUEST FOR AUTHORIZATION to Surplus the City's CNG (Compressed
Natural Gas) Ambulance Chassis and the Associated CNG Tanks.
Rec: By Minute Motion, authorize staff to surplus the City's CNG
Ambulance Chassis and CNG Tanks as proposed.
5
MINUTES
REGULAR PALM DESERT CITY COUNCIL MEETING JULY 14, 2011,
K. REQUEST FOR AUTHORIZATION to Donate the City's 2002 Ford Fire
Department Electric Vehicle to the Riverside County Fire Department.
Rec: By Minute Motion, authorize staff to donate the City's Fire Department
Electric Vehicle to the Riverside County Fire Department.
L. REQUEST FOR AUTHORIZATION to Utilize Vendors on an Authorized
Motorcycle Repair Center List for Repairs to City -owned Police Vehicles and
Communication Equipment.
Rec: By Minute Motion, authorize staff to utilize vendors on the Authorized
Motorcycle Repair Center List as presented in the Riverside County
Sheriff's Department Memorandum dated May 12, 2011.
M. REQUEST FOR APPROVAL of Contract with Academic Supplier for
Citywide Ink and Toner Supplies (Contract No. C31020).
Rec: By Minute Motion, approve the subject contract with Academic
Supplier, Chula Vista, California, to supply ink and toner products to
City offices for one year, with two possible one-year extensions.
N. REQUEST FOR APPROVAL of Contract with The Holman Group to Provide
an Employee Assistance Program (EAP) (Contract No. C31030).
Rec: By Minute Motion, approve the subject contract with The
Holman Group, Northridge, California, to provide an EAP and
authorize the City Manager to finalize and execute same — funds in
the approximate amount of $3,300 annually are available in
FY 2011-2012 Human Resources, Professional -Other Account
No. 110-4154-415-3090.
O. REQUEST FOR APPROVAL of the Renewal of Contract with the Law Firm
of Liebert Cassidy Whitmore (LCW) to Maintain the City's Membership in the
Coachella Valley Employment Relations Consortium (Contract No. C21525).
Rec: By Minute Motion, approve renewal of the subject contract with
Liebert Cassidy Whitmore (LCW) for membership in the
Coachella Valley Employment Relations Consortium — funds are
available in Account No. 110-4154-415-3121.
6
MINUTES
REGULAR PALM DESERT CITY COUNCIL MEETING JULY 14, 2011
P. REQUEST FOR AWARD OF CONTRACT to Doug Wall Construction, Inc.,
in the Amount of $24,928 for Vacant Parcel A and Parcel D Lot Pad
Stabilization at Desert Willow (Contract No. C30970).
Rec: By Minute Motion: 1) Authorize award of the subject contract in the
amount of $24,928 to Doug Wall Construction, Inc., Bermuda Dunes,
California, for stabilization of vacant lot Pads A and D at Desert
Willow; 2) authorize the Director of Finance to set aside the amount
of $2,492.80 as 10% contingency for the subject project (use of
contingency requires additional action); 3) appropriate $27,420.80 to
Account No. 451-4663-454-4001 from the Unobligated Capital Project
Properties City/RDA Fund.
Q. REQUEST FOR APPROVAL of Change Order No. 1 to Contract
No. C29890 — Civic Center Re -roofing Project (Project No. 712-10).
Rec: By Minute Motion: 1) Approve Change Order No. 1 in the amount of
$42,434 to the subject contract with Progressive Roofing, Manteca,
California; 2) authorize the transfer of $42,434 from contingency to
base for the project; 3) authorize the Mayor to execute Change Order
No. 1 — funds are available in the Building Maintenance/Repair and
Maintenance City Hall Account No. 450-4161-415-4001.
R. REQUEST FOR ACCEPTANCE OF WORK for Contract No. R30200 —
Deconstruction of Sagecrest Apartments at 73-775 Santa Rosa Way and
Deconstruction of 73-805 Santa Rosa Way (Vizion's West, Inc., Winchester,
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.
S. REQUEST FOR ACCEPTANCE OF WORK and Authorization for Additional
Expenditure for Citywide Catch Basin, Storm Drain, and Under -sidewalk
Drain Clean -out Project (Contract No. C30260, Project No. 501-11)
(Advanced Sewer Technologies, Inc., Los Angeles, CA).
Rec: By Minute Motion: 1) Approve Change Order No. 1 in the amount of
$11,080 to the subject contract with Advanced Sewer Technologies,
Inc., Los Angeles, California, for additional facilities treated, and
authorize the Mayor to execute same; 2) authorize the transfer of
$3,981.20 from contingency to base for the contract; 3) ratify the
City Manager's authorization to appropriate funds in the amount of
$7,098.80 from Unobligated FY 2010-2011 General Fund Reserves
to Storm Drain Maintenance Account No. 110-4314-433-3320;
4) accept the work as complete and authorize the City Clerk to file a
Notice of Completion for Contract No. C30260 — Citywide Catch
Basin, Storm Drain, and Under -sidewalk Drain Clean -out 2010-2011.
7
MINUTES
REGULAR PALM DESERT CITY COUNCIL MEETING JULY 14, 2011
T. REQUEST FOR ACCEPTANCE OF WORK and Authorization for Additional
Expenditure for the Citywide Lighting Inventory Project (Contract
No. C30410) (RBF Consulting, Inc., Palm Desert, CA).
Rec: By Minute Motion: 1) Approve Change Order No. 1 in the amount of
$2,122.40 to the subject contract with RBF Consulting, Inc.,
Palm Desert, California, for additional services performed, and
authorize the Mayor to execute same; 2) authorize the transfer of
$1,640.31 from contingency to base for the contract; 3) approve
additional expenditure in the amount of $482.09 — funds are available
in the FY 2010-2011 Budget, Account No. 110-4611-453-3092 —
Public Works Park Maintenance - Professional Services; 4) accept the
work as complete and authorize the City Clerk to file a Notice of
Completion for Contract No. C30410 — Citywide Lighting Inventory.
U. REQUEST FOR AUTHORIZATION to Release Maintenance Security for
Longs Drug Stores California, LLC — Precise Plan No. 07-01 (Longs Drug
Stores California, LLC, Applicant).
Rec: By Minute Motion, authorize release of the Maintenance Security for
Longs Drug Stores California, LLC (Case No. PP 07-01).
V. REQUEST FOR AUTHORIZATION to Release Security for Ponderosa
Homes II, Inc. — Tract No. 31490-1 (Ponderosa Homes II, Inc., Applicant).
Rec: By Minute Motion, authorize release of the security for Ponderosa
Homes II, Inc. (Tract No. 31490-1).
W. REQUEST FOR AUTHORIZATION of Out -of -State Travel for Director of
Public Works to Attend the 2011 ITE Annual Meeting and Exhibit
Conference — St. Louis, Missouri, August 13 -16.
Rec: By Minute Motion, authorize the Director of Public Works to attend the
2011 ITE Annual Meeting and Exhibit Conference, St. Louis, Missouri,
August 13-16 — funds are available in Account
No. 110-4300-413-3120 — Public Works
Conference/Seminars/Workshops.
X. LETTER from United Way of the Desert, Congratulating City of Palm Desert
Employees' 2010-2011 Fundraising Campaign Totaling $11,311.81.
Mayor Pro Tem Spiegel requested Item I be removed for separate action
under Section XI, Consent Items Held Over.
Upon a motion by Kroonen, second by Finerty, and 4-0 vote of the City Council, with
Benson ABSENT, the remainder of the Consent Calendar was approved as presented.
8
MINUTES
REGULAR PALM DESERT CITY COUNCIL MEETING JULY 14, 2011
XI. CONSENT ITEMS HELD OVER
I. REQUEST FOR RATIFICATION of the Disposal of Surplus Property from
The Desert Willow Golf Resort — Unsalvageable Equipment/Fixed Assets
from the Kitchen/Building and Lakeview Terrace Expansion Projects.
Mayor Pro Tem Spiegel stated the City was disposing approximately $60,000
worth of property from Desert Willow Golf Resort. He asked if staff was
selling it.
Mr. Espinoza responded the property was used for recycling material during
the construction.
Mayor Pro Tem Spiegel moved to, by Minute Motion, ratify disposal of the surplus
property associated with the subject projects from Desert Willow Golf Resort as listed on
the accompanying staff report's Exhibit "A". Motion was seconded by Harnik and carried
by a 4-0 vote, with Benson ABSENT.
XII. RESOLUTIONS
A. RESOLUTION NO. 2011 - 62 - A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF PALM DESERT, CALIFORNIA, APPROVING THE
SUBDIVISION MAP OF TRACT NO. 31490-2 (Ponderosa Homes II, Inc.,
Applicant).
Mr. Greenwood stated this was a subdivision of an existing residential tract,
Ponderosa Homes, which is located at Gerald Ford Drive and Portola
Avenue on the north west corner. The action subdivides a piece of the
property and allows for that property to be sold to another owner to develop
homes on it. The request for approval is conditional upon tax certificates
being delivered to the City. Staff advanced this item to avoid delays during
the summer break so the development can proceed. He noted this item and
the next one on the agenda are similar requests.
Councilmember Finerty moved to waive further reading and adopt Resolution
No. 2011-62, contingent upon the County Tax Collector signing the tax certificates. Motion
was seconded by Kroonen and carried by a 4-0 vote, with Benson ABSENT.
B. RESOLUTION NO. 2011 - 63 - A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF PALM DESERT, CALIFORNIA, APPROVING THE
SUBDIVISION MAP OF TRACT NO. 36335 (Ponderosa Homes II, Inc.,
Applicant).
Councilmember Finerty moved to waive further reading and adopt Resolution
No. 2011-63, contingent upon the County Tax Collector signing the tax certificates. Motion
was seconded by Kroonen and carried by a 4-0 vote, with Benson ABSENT.
9
MINUTES
REGULAR PALM DESERT CITY COUNCIL MEETING JULY 14, 2011
XIII. ORDINANCES
For Introduction:
A. 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 was the next step
required by the California Public Employees Retirement System (CaIPERS)
to create a lower tier of pension benefits for new employees. Responding to
question, she confirmed the City had a hiring freeze and had not hired
anyone in three years, but this will lay the groundwork for when new
employees are hired. Further responding, she confirmed pension benefits
will be Tess for new employees.
Councilmember Finerty moved to waive further reading and pass Ordinance
No. 1224 to second reading. Motion was seconded by Kroonen and carried by a 4-0 vote,
with Benson ABSENT.
For Adoption:
None
XIV. NEW BUSINESS
A. REQUEST FOR APPROVAL OF A NEW MONUMENT SIGN LOCATED IN
THE PUBLIC RIGHT-OF-WAY ON THE WEST SIDE OF COOK STREET
FOR THE FIRST TEE OF COACHELLA VALLEY Case No. SA 11-155
(The First Tee of Coachella Valley, Applicant).
Responding to question about who owns the property next door, MR. JOHN
SNOW, representing the Applicant, confirmed they own the land all the way
to Cook Street.
Councilmember Finerty commented the sign was very attractive and
particularly liked the rock used with the concrete blocks.
Councilman Kroonen moved to, by Minute Motion, approve the location of a new
monument sign within the public right-of-way located on the west side of Cook Street,
subject to the applicant obtaining an Encroachment Permit through the Department of
Public Works. Motion was seconded by Finerty and carried by a 4-0 vote, with Benson
ABSENT.
10
MINUTES
REGULAR PALM DESERT CITY COUNCIL MEETING JULY 14, 2011
B. REQUEST FOR AWARD OF PURCHASE FOR 218,240 POUNDS OF
GRASS SEED IN THE AMOUNT OF $172,293.51 TO
SIMPLOT PARTNERS.
Councilmember Finerty stated she would move to approve because Simplot
Partners did business in Palm Desert.
Councilmember Finerty moved to, by Minute Motion, award the purchase of 218,240
pounds of grass seed in the amount of $172,293.51 to Simplot Partners, Palm Desert,
California — funds are available in General Fund Account Nos. 110-4610-453-2190 -
Supplies/Other, 110-4611-453-3371 - R/M Tri-Cities Sports Facility, and
110-4614-453-3370 - R/M Medians for the City's portion, and Desert Willow Corporation
will fund the balance.
Mayor Pro Tem Spiegel stated most of the seed will be used for Desert
Willow's Golf Course and Kemper Sports will be paying for it.
Councilmember Harnik seconded the motion, and it carried by a 4-0 vote, with
Benson ABSENT.
C. REQUEST FOR AWARD OF CONTRACT TO COOLEY CONSTRUCTION,
INC., IN THE AMOUNT OF $555,555 FOR CONSTRUCTION OF THE
MONTEREY AVENUE RESURFACING, COLD -IN -PLACE RECYCLING
PROJECT (CONTRACT NO. C30950, PROJECT NO. 752-12A).
Mayor Pro Tem Spiegel asked what was Cold -In -Place.
Mr. Greenwood explained it was a similar process that was used in south
Palm Desert last year where a recycling machine grinds the asphalt and
mixes it with new oil and puts it back in place. He said there is no waste or
hauling of old asphalt with this process, and it provides a new road instead
of a small strip of new asphalt on top.
Councilmember Finerty asked if this was the same process being used at
Ironwood, because it was a nice one. Mr. Greenwood said he didn't know.
Councilmember Harnik stated she and Councilman Kroonen had the
opportunity to watch the process on Shadow Mountain, which she thought
was neat and efficient.
Councilmember Harnik moved to, by Minute Motion: 1) Award the subject contract
for Construction of the Monterey Avenue Resurfacing, Cold -In -Place Recycling Project to
Cooley Construction, Inc., Hesperia, California, in the amount of $555,555; 2) authorize the
Director of Finance to set aside a 10% contingency for the project in the amount of
$55,555.50; 3) authorize the Mayor to execute said contract; 4) authorize the City Manager
11
MINUTES
REGULAR PALM DESERT CITY COUNCIL MEETING JULY 14, 2011
to execute a Reimbursement Agreement with the City of Rancho Mirage for the
construction on Monterey Avenue (Contract No. C30950A); 5) authorize the City Manager
to execute a Reimbursement Agreement with the utility companies with facilities in the
street — funds are available in the General Fund Account reserved for Street Maintenance,
No. 110-4311-433-3320. Motion was seconded by Finerty and carried by a 4-0 vote, with
Benson ABSENT.
D. REQUEST FOR AWARD OF CONTRACT TO MATICH CORPORATION IN
THE AMOUNT OF $1,472,000 FOR THE 2012 CITYWIDE RESURFACING
PROJECT (CONTRACT NO. C30960, PROJECT NO. 752-12B).
Councilmember Finerty recalled last year staff combined the two years and
received a better process. She wondered if staff was following the same
procedure again this year.
Mr. Greenwood responded staff was using a variety of funds this year;
therefore, it wasn't using the same process, but it was getting excellent
asphalt bids.
Councilmember Finerty moved to, by Minute Motion: 1) Award subject contract for
the 2012 Citywide Resurfacing Project to Matich Corporation, San Bernardino, California,
in the amount of $1,472,000; 2) authorize the Director of Finance to set aside a 10%
contingency for the project in the amount of $147,200; 3) authorize the Mayor to execute
said contract; 4) authorize the City Manager to execute a Reimbursement Agreement with
utility companies with facilities in the street; 5) funds are available in General Fund Street
Maintenance Account No. 110-4311-433-3320, in Recycling Fund Street Maintenance
Account No. 236-4311-433-3320, and in Gas Tax Street Resurfacing Account No.
211-4311-433-3320.
Mayor Pro Tem Spiegel asked if notification would be provided to the
residents that lived along the streets that will be rehabilitated.
Mr. Greenwood answered yes, stating there was an impact of two or three
days to the residents, but it produced a great product and positive comments
in the end.
Councilman Kroonen seconded the motion, and it carried by a 4-0 vote, with Benson
ABSENT.
12
MINUTES
REGULAR PALM DESERT CITY COUNCIL MEETING JULY 14, 2011
E. REQUEST FOR AWARD OF CONTRACT TO ENGINEERING
RESOURCES OF SOUTHERN CALIFORNIA, INC., IN THE AMOUNT OF
$49,100 FOR DESIGN SERVICES FOR THE SECTION 29 RETENTION
BASIN REPAIRS PROJECT (CONTRACT NO. C31040, PROJECT
NO. 627-11).
Responding to question, Mr. Greenwood stated the funding for this project
will come out of the Retention Basin Maintenance Reserve Fund. He said
while the City was paying for the project up front, it will be reimbursed by the
District. Further responding, he said the retention basin was originally
installed by Desert Gateway Development and then adopted by Section 29
Assessment District. The retention basin was reconfigured when Section 29
took it over, but it suffered significant damage with the heavy rainfall this
year.
Councilmember Harnik asked if the upcoming design will be able to prevent
damage from such record rainfalls.
Mr. Greenwood answered yes, stating this contract is to redesign it in a way
that will not fail.
Councilmember Finerty moved to, by Minute Motion: 1) Award subject contract in
the amount of $49,100 to Engineering Resources of Southern California, Inc., Hemet,
California, for Design Services for the Section 29 Retention Basin Repairs Project;
2) approve a 10% contingency for the project in the amount of $4,910; 3) authorize the
Mayor to execute said contract — funds are available in Business Assessment District
Account No. 289-4374-433-3320 — no General Fund money is being used for this
expenditure. Motion was seconded by Kroonen and carried by a 4-0 vote, with Benson
ABSENT.
F. REQUEST FOR APPROVAL OF MEMORANDUM OF UNDERSTANDING
(MOU) BETWEEN DESERT SANDS UNIFIED SCHOOL DISTRICT, THE
YMCA OF THE DESERT, AND THE CITY OF PALM DESERT AS IT
RELATES TO PARTICIPATION IN THE AFTER -SCHOOL PROGRAM AT
LINCOLN ELEMENTARY SCHOOL (CONTRACT NO. C31050).
Ms. Riddle stated this item was approved every year, which is the
After -School Program in the amount of $75,000. Responding to question,
she confirmed the program was part of the budget.
Councilmember Finerty moved to, by Minute Motion, approve the subject MOU
between Desert Sands Unified School District, The YMCA of the Desert, and the City of
Palm Desert as it relates to participation in the After -school Program at Lincoln Elementary
School, and authorize the Mayor to execute same — funding in the amount of $75,000 is
available in Account No. 110-4800-454-3892. Motion was seconded by Kroonen and
carried by a 4-0 vote, with Benson ABSENT.
13
MINUTES
REGULAR PALM DESERT CITY COUNCIL MEETING JULY 14, 2011
G. REQUEST FOR APPROVAL OF MEMORANDUM OF UNDERSTANDING
(MOU) BETWEEN DESERT SANDS UNIFIED SCHOOL DISTRICT,
PALM DESERT CHARTER MIDDLE SCHOOL, AND THE CITY OF
PALM DESERT AS IT RELATES TO PARTICIPATION IN THE
AFTER -SCHOOL PROGRAM AT PALM DESERT CHARTER MIDDLE
SCHOOL (CONTRACT NO. C31060).
Councilmember Finerty moved to, by Minute Motion, approve the subject MOU
between Desert Sands Unified School District, Palm Desert Charter Middle School, and
the City of Palm Desert as it relates to participation in the After -school Program at Palm
Desert Charter Middle School, and authorize the Mayor to execute same — funding in the
amount of $75,000 is available in Account No. 110-4800-454-3892.
Mayor Pro Tem Spiegel noted Palm Desert was the only city in the Coachella
Valley that provided an after -school program at both the middle and
elementary schools.
Councilman Kroonen seconded the motion, and it carried by a 4-0 vote, with Benson
ABSENT.
H. REQUEST FOR RENEWAL OF CONTRACT WITH EVERGREEN
RECYCLING SOLUTIONS, INC., IN AN AMOUNT NOT TO EXCEED
$75,000 FOR CONSULTING SERVICES RELATIVE TO THE CITY'S
COMMERCIAL AND MULTIFAMILY HOUSING RECYCLING PROGRAMS
(CONTRACT NO. C30061).
Councilmember Finerty moved to, by Minute Motion: 1) Approve the subject contract
renewal with Evergreen Recycling Solutions, Inc., La Quinta, California, for Consulting
Services relative to the City's Commercial and Multifamily Housing Recycling Programs in
an amount not to exceed $75,000, and authorize the Mayor to execute same; 2) authorize
expenditure of funds in an amount not to exceed $75,000 from the Recycle Fund, Account
No. 236-4195-454-3090.
Mayor Pro Tem Spiegel stated he's seen enough Recycled Binney
commercials and wondered if different ones can be shown. He said it was
a good program, but just felt something new was needed.
Ms. Riddle responded new commercials were being created and some were
being revised where the program had changed, such as the Household
Hazardous Waste (HHW) Program, which will probably be seen in
September/October.
Councilman Kroonen seconded the motion, and it carried by a 4-0 vote, with Benson
ABSENT.
14
MINUTES
REGULAR PALM DESERT CITY COUNCIL MEETING JULY 14, 2011
I REQUEST FOR APPROVAL OF A SILENT SECOND TRUST DEED FROM
THE HOUSING MITIGATION FUND IN AN AMOUNT NECESSARY TO
SECURE AN AFFORDABLE HOUSING COST, NOT TO EXCEED $25,000,
ASSOCIATED WITH A DIRECT SALE IN DESERT ROSE.
Ms. Moore explained this was a direct sale from a seller to a buyer where the
City can assist the purchaser to purchase directly. Based on what's
happening with Redevelopment, this was the only option at this point.
Councilman Kroonen moved to, by Minute Motion: 1) Approve a City Silent Second
Trust Deed from the Housing Mitigation Fund in an amount necessary to secure an
affordable housing cost, not to exceed $25,000, pursuant to California Health and Safety
Code Section 50052.5, as amended from time to time, for the direct sale of
APN 634-242-007 in Desert Rose; 2) approve the Affordable Housing Restriction and Lien
Agreement in favor of the City of Palm Desert, substantially as to form, and authorize the
Mayor to execute; 3) authorize the Director of Finance to draw monies from the relative
fund to facilitate the transaction; 4) authorize the City Manager or his designee to finalize
and execute any documents necessary to effectuate the actions taken herewith — funds
are available in Housing Mitigation Fund Account No. 214-4490-466-3901. Motion was
seconded by Finerty and carried by a 4-0 vote, with Benson ABSENT.
J. REQUEST FOR AUTHORIZATION TO ACQUIRE PROPERTY LOCATED
IN FALCON CREST AND KNOWN AS APN 624-430-016
(74506 FALCON LANE), IF NECESSARY, IN ANTICIPATION OF
EXPIRATION OF THE FIRST RIGHT -OF -REFUSAL PERIOD, IN THE
EVENT THE AGENCY IS ALLOWED TO CONTINUE SUCH OPERATIONS
(JOINT CONSIDERATION WITH THE PALM DESERT REDEVELOPMENT
AGENCY).
Ms. Moore stated this was a request for authorization to acquire property in
the event the City/Agency received some legislative relief from litigation or
otherwise in order to continue to operate. The owner notified the City of its
intent to sell, and they were informed the City was in a holding pattern.
However, in the interim, staff would like to have the approval to move forward
in the event it can.
Mayor Pro TemNice Chairman Spiegel explained to the audience that staff
was alluding to the possibility of losing Redevelopment funding, as would be
all cities in California, based on what is being proposed in Sacramento.
Councilmember/Member Finerty moved to, by Minute Motion: 1) Authorize
acquisition of the subject property for the purposes of retaining affordability covenants and
resale, if necessary, in anticipation of expiration of the 45-day First Right -of -Refusal Period
in amount pursuant to the Affordable Agreement (approximately $245,952 [to be increased
by reasonable closing costs and commissions]), in the event the Agency is allowed to
continue such actions either by judicial "stay" or adoption of an Agency "Continuance
15
MINUTES
REGULAR PALM DESERT CITY COUNCIL MEETING JULY 14, 2011
Ordinance"; 2) approve Agency Silent Second and City BEGIN Third Trust Deeds in
amounts necessary to secure an affordable housing cost pursuant to Redevelopment Law
for either a direct sale or Agency resale from Housing Set -aside Fund and BEGIN Program
monies; 3) authorize the Director of Finance to draw monies from the relative funds to
facilitate the transaction; 4) authorize the Executive Director or his designee to execute any
documents necessary to facilitate this transaction — funds are available in Acquisition
Rehab and Resale Account No. 870-4492-464-4001, BEGIN Program Fund Account
No. 214-4494-464-3901, and Homebuyer Assistance Account No. 870-4699-464-4001.
Motion was seconded by Harnik and carried by a 4-0 vote, with Benson ABSENT.
K. REQUEST FOR APPROVAL OF THE PALM DESERT MARKETING PLAN
FOR FISCAL YEAR 2011-2012.
Visitor Center Manager Donna Gomez stated the proposed Marketing Plan
is meant to be a working document for Fiscal Year 2011-2011, which will
help direct marketing efforts and dollars. She said the Plan was a
cooperative effortwith the Marketing Committee, staff, and Council Liaisons,
which included input from the website and advertising agencies.
Councilmember Finerty asked if there was a way to measure the success of
the Plan compared to how things had been done before.
Ms. Gomez responded there was better opportunity for measurement of
specific goals and tactics, which was incorporated into the Plan this year.
Councilmember Finerty moved to, by Minute Motion, approve the FY 2011-2012
Marketing Plan as endorsed by the City's Marketing Committee. Motion was seconded by
Kroonen and carried by a 4-0 vote, with Benson ABSENT.
L. REQUEST FOR APPROVAL OF MEDIA PLAN FOR FISCAL YEAR
2011-2012 AND AWARD CONTRACT TO JNS ADVERTISING FOR
MEDIA -BUYING SERVICES IN AN AMOUNT NOT TO EXCEED $258,000.
Visitor Center Manager Donna Gomez noted the staff report that details
where advertising dollars will be spent in print and radio, and approval of this
contract will allow JNS Advertising to place ads for the City.
Councilmember Finerty said she appreciated the detailed spreadsheet.
Councilmember Finerty moved to, by Minute Motion: 1) Approve FY 2011-2012
Media Plan as supported by the City's Marketing Committee; 2) concur with the Marketing
Committee's recommendation and award Contract No. C31070 to JNS Advertising, La
Quinta, California, in an amount not to exceed $258,000 for Media Buying and Related
Services for FY 2011-2012; 3) authorize the Mayor to execute the Media Buying and
Related Services Agreement on behalf of the City — funds are available in Advertising
Buys, Account No. 110-4417-414-3221. Motion was seconded by Kroonen and carried by
a 4-0 vote, with Benson ABSENT.
16
MINUTES
REGULAR PALM DESERT CITY COUNCIL MEETING JULY 14, 2011
M. REQUEST FOR DIRECTION TO STAFF REGARDING MARKETING
COMMITTEE BYLAWS, PERTAINING TO MEMBERSHIP COMPOSITION.
Visitor Center Manager Donna Gomez stated this item came up because the
City has an agreement with the Palm Springs Art Museum, and as part of
that agreement, the City has committed to the opportunity of allowing them
to have a representative on the Palm Desert Marketing Committee. She said
other discussions have included the composition of the Committee, and the
current Resolution differs from the current make-up of the Committee.
Therefore, she is looking for Council direction, and based on Council's input,
she can bring back a Resolution with new bylaws.
Councilmember Harnik asked if the provision in the Lease Agreement with
the Art Museum stated "they shall have a representative," or that "they may
have a representative."
Ms. Gomez responded the Art Museum may have the opportunity if they
would like to.
Councilmember Finerty stated the Art Museum would very much like to be
part of the Marketing Committee.
Councilmember Harnik stated another item for consideration was appointing
a member representing real estate. In the Marketing Plan, the Committee is
targeting segments for a second homeowner and potential home buyers,
which she thought made good sense and was a great idea.
Councilmember Finerty moved to, by Minute Motion, directed staff to prepare a
resolution, amending the Marketing Committee Membership to increase it by two (2)
members for a total of 11, in order to add one (1) representative from the City's Real Estate
industry and one (1) from the Art Museum.
Mayor Pro Tem Spiegel stated the Marketing Committee determines how it
will spend its Marketing dollars, and it was important The Living Desert, The
Gardens on El Paseo, JW Marriott Desert Springs, and Westfield be part of
the Committee, because that's where revenue came from to run the City.
Councilmember Harnik seconded the motion, and it carried by a 4-0 vote, with
Benson ABSENT.
17
MINUTES
REGULAR PALM DESERT CITY COUNCIL MEETING JULY 14, 2011
N. REQUEST FOR DIRECTION TO STAFF REGARDING THE ENERGY
INDEPENDENCE AMERICA PROGRAM.
Mr. Wohlmuth stated an Energy Committee Meeting took place last week
and another one is scheduled for July 19. In April after the AB811
Conference, the participants in the conference identified that the Federal
Housing Finance Agency (FHFA) Guidelines and Litigation outlined in their
letter created a big problem for the City's Energy Independence Program
(EIP)/AB811 Program. In April 2011, staff presented a concept to the
Council where the City would hire EcoMotion to assist the City in seeking
legislative, executive, and judicial remedy from the FHFA letter. Since then,
staff drafted a contract with EcoMotion, but they have bowed out of this
process and didn't sign the contract. The Council had authorized up to
$25,000 for Phase One, but EcoMotion is not willing to do this. Staff
provided the Council with a couple of options like hiring another consultant
or look for another 501 C organization, but the Energy Committee suggested
the City wait to see what Boulder, Colorado, Sonoma, California, or Babylon,
New York decides to do. Therefore, staff recommended Option No. 2, which
is to wait and see for participants from other local energy programs in the
United States who wished to contribute toward this effort, and if they wished
to contribute, staff will revisit the matter at that time.
Councilmember Harnik asked if staff knew why Mr. Flanigan decided or
chose not to be involved, because he was excited about it and had stated in
a letter he looked forward to continuing this important work.
Mr. Wohlmuth answered no. However, he did know that Mr. Flanigan had
received another healthy contract, which probably pushed his abilities.
Additionally, he also has Coachella Valley Association of Governments
(CVAG\), which was probably one factor.
Councilman Kroonen moved to, by Minute Motion, receive and file the report on the
Energy Independence America Program and direct staff to wait and see what participation
may be forthcoming from some of the other U. S. local government energy programs (e.g.
Sonoma County, Calif., Boulder, Colo., Babylon, NY), and if they wish to contribute toward
this effort. Motion was seconded by Finerty and carried by a 4-0 vote, with Benson
ABSENT.
18
MINUTES
REGULAR PALM DESERT CITY COUNCIL MEETING JULY 14, 2011
O. REQUEST FOR DIRECTION REGARDING INSTALLATION OF THE
PALM DESERT AQUATIC CENTER DEDICATION PLAQUE.
Councilman Kroonen moved to, by Minute Motion, direct staff to install the Palm
Desert Aquatic Center plaque purchased May 6, 2011, at the entry to the facility.
Mayor Pro Tem Spiegel noted Councilmember Finerty called this item up.
Councilmember Finerty stated she had spoken with the Mayor about this
issue, and they felt it was important that the plaque be amended to have the
names of those who voted on it, which was the policy. However, it's an
unwritten policy, but it was similar to what was done with the Palm Desert
Library. She went on to say that former Councilmembers Ferguson and
Kelly were part of the subcommittee for the Aquatic Center and had devoted
a lot of time, probably more so than the rest of the Council to make it
happen. She said to leave them off the plaque was wrong and they needed
to be remembered as part of it.
Mayor Pro Tem Spiegel said their names were already on the original
plaque.
Mr. Wohlmuth pointed out that on the third page of the staff report was a
rendering of the plaque, which showed they are on the original plaque as
former Councilmembers.
Councilmember Finerty stated that if that was the case, then it was fine, but
when the plaque was unveiled she could only see the first five names,
because it was sunny that day.
Councilmember Harnik added that at the Budget Study Session when staff
presented the Council with a mock up of the plaque, which is exactly as
presented, the Council and Mayor voted and approved it.
Councilmember Harnik seconded the motion, and it carried by a 4-0 vote, with
Benson ABSENT.
19
MINUTES
REGULAR PALM DESERT CITY COUNCIL MEETING JULY 14, 2011
XV. CONTINUED BUSINESS
A. REQUEST FOR APPROVAL OF AN AMENDMENT TO RESOLUTION
NO. 91-5, REMOVING DEPARTMENT OF COMMUNITY
DEVELOPMENT/PLANNING CONDITION NO. 10 REGARDING
EXCLUSION OF A SUPERMARKET; ADOPTION OF A MITIGATED
NEGATIVE DECLARATION OF ENVIRONMENTAL IMPACT AS IT
RELATES TO THE PROJECT, PURSUANT TO SECTION 15074 OF THE
CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA); A ZONING
ORDINANCE AMENDMENT TO CHAPTER 25.30 OF THE PALM DESERT
MUNICIPAL CODE TO ALLOW SUPERMARKETS NOT EXCEEDING
60,000 GROSS SQUARE FEET AS CONDITIONAL USES IN THE
REGIONAL COMMERCIAL PC (3) ZONE; AND EXTERIOR
MODIFICATIONS — FOR A PROJECT LOCATED AT 72-280
HIGHWAY 111, Case Nos. ZOA/CUP 10-228 (KKE Architects, Applicant)
(Continued from the meetings of May 12, May 26, and June 23, 2011).
Assistant Planner Kevin Swartz stated this item was continued to allow the
Applicant to address the traffic and noise concerns and develop and approve
a backfill plan with Pines to Pines. The traffic and noise concerns have been
addressed and approved by the City. Today, staff received an e-mail from
Mr. Rob Bernheimer stating that both parties had reached an agreement on
the backfill plan. He said staff had not seen a copy of it, but the Applicant
and/or Mr. Bernheimer can address the backfill plan.
MR. ROB BERNHEIMER stated he represented the owner of Pines to Pines
and confirmed an agreement had been reached and signed. He said there
is a Memorandum of Understanding that places economic pressure on both
parties to use all efforts to find a substitute tenant. He said there will be a
store operating at the Pines to Pines Center at least through November of
2012, and hopefully by then, the pressure points along the way will bring
about a new tenant. He said if the Council approved the proposed item
today, the owners at Pines to Pines had a backfill plan it supported.
Councilmember Finerty asked what was the backfill plan and why didn't the
Council have a copy of it prior to today's meeting.
MR. BERNHEIMER stated that unfortunately the agreement wasn't signed
until about an hour ago by Vons. He would be happy to provide the Council
with a copy, but Vons asked that it remain a confidential document.
Councilmember Finerty stated the conditions for which the Council continued
this item had to do with the traffic study and backfill plan. She felt the
Council should see and review the backfill plan to make sure it was
acceptable to the City. She was glad that Mr. Bernheimer and Pines to
Pines were happy with the plan, but she liked to know what it is.
r+�
20
MINUTES
REGULAR PALM DESERT CITY COUNCIL MEETING JULY 14, 2011
MR. BERNHEIMER stated the Council can make that request to the
Applicant.
Mayor Pro Tem Spiegel explained to the audience this item had to do with
the relocation of Vons to a new location, which will provide the City with a
much larger and better grocery market.
MR. BRIAN BRAATEN, Vice President of Real Estate for Vons, sent his
regards to Mayor Benson and wished her a speedy recovery, stating her
concerns were taken to heart as they tried to meet them dead on. He said
at the May 12 City Council Meeting, the Applicant was asked to readdress
the CEQA issues raised and to continue to work with existing landlords to
formulate a cooperative understanding with regards to the eventual vacancy
at Pines to Pines. He was pleased to announce that both tasks were
accomplished. He said there were no significant impacts, even under the
most adverse conditions, that could remotely occur associated with the traffic
and noise. He said it took both parties till this morning to complete
negotiations and reach an agreement. He said both parties were able to
work out a situation where they could best work together to eventually find
another tenant to fill the space. He said the agreement was signed this
morning, and it obviously affected significant portions of the existing lease,
which was why it was complicated; other issues included lawyers that went
on vacation during this time of year. In recognition of efforts and thoughtful
plans for the redevelopment of the vacant Mervyn's building, and as a
long-standing valued member of the Palm Desert business community, he
asked the Council to approve the relocation to Fred Waring Plaza by
removing Condition No. 10 of Resolution 91-5 and amending the current
Zoning Ordinance to 60,000 square feet. He said they looked forward to the
new Fred Waring Plaza, which will greatly enhance the shopping experience
for consumers, revitalize the center, create new jobs, and increase sales tax
revenue to the City. He asked the Council to support Vons with their vote
today. Responding to question as to when the relocation would take place
if the project is approved, he said there was still entitlement work to get done
with building plans, permits, etc., and he wasn't going to second-guess the
process anymore, but the plan is to move in November 2012.
Councilmember Finerty asked what was the backfill plan.
MR. BRAATEN asked Councilmember Finerty to explain herself further,
because she probably wanted to hear that he had a tenant opening in
November; however, he didn't have that tenant. He said he hadn't been able
to work with other tenants, because he didn't have a space available to give.
Councilmember Finerty asked what assurance was there to the City that
there will be a tenant, so that the City didn't end up with another center that
looked like the Mervyn's Center.
21
MINUTES
REGULAR PALM DESERT CITY COUNCIL MEETING JULY 14, 2011
MR. BRAATEN responded he didn't know if such an agreement could ..,
actually be possible where a backfill plan named a tenant.
Councilmember Finerty said she wasn't asking for a name, but a guarantee
that there will be a tenant at Pines to Pines.
MR. BRAATEN reiterated it would be impossible for anyone to provide that
at this point in time, but there is a plan to work effectively to the best of both
parties efforts to get that accomplished within the next ones years.
Councilmember Finerty asked the Applicant if he was willing to provide the
Council with a copy of the plan so it could be discussed in Closed Session.
MR. BRAATEN said a copy of the plan was a legal document associated
with their lease. He suggested Councilmember Finerty speak to the City
Attorney to find out whether it was appropriate for City Council to review
lease documents and enter into negotiations between landlords and tenants.
He asked the City Attorney to address that issue.
Councilmember Harnik thanked all the parties involved and knew how
difficult it was to reach a meeting of the minds, which she appreciated.
Councilmember Harnik moved to waive further reading and: 1) Pass Ordinance No.
1221 to second reading, approving an amendment to Chapter 25.30 of the Palm Desert
Municipal Code to allow supermarkets not exceeding 60,000 gross square feet as
conditional uses in the Regional Commercial PC (3) Zone; 2) Adopt Resolution No. 2011 -
15 and a Mitigated Negative Declaration, and approve the findings for approval of
ZOA/CUP 10-228 subject to conditions attached. Motion was seconded by Kroonen and
carried by a 4-0 vote, with Benson ABSENT.
B. REQUEST FOR DIRECTION TO STAFF REGARDING THE CITY'S
SPONSORSHIP OF PD STYLE MAGAZINE AND RENEWAL OF THE
RELATED CONTRACT WITH THE DESERT SUN FOR SAME (CONTRACT
NO. C29960) (Continued from the meeting of June 9, 2011).
Responding to question on how the Marketing Committee voted,
Management Analyst David Hermann said the City Council referred this item
back to the Marketing Committee, and at their June meeting, they voted
unanimously to reiterate their position that the money spent on PD Style
could be better spent to target visitors from outside the area. He noted there
was an abstention on the vote.
Councilmember Harnik moved to, by Minute Motion, concurr with the
recommendation of the Marketing Committee for sponsorship of PD Style Magazine.
Motion was seconded by Kroonen and carried by a 4-0 vote, with Benson ABSENT.
22
MINUTES
REGULAR PALM DESERT CITY COUNCIL MEETING JULY 14, 2011
XVI. OLD BUSINESS
A. REQUEST FOR APPROVAL OF THE REIMBURSEMENT OF ART IN
PUBLIC PLACES FEE IN THE AMOUNT OF $67,872.39 FOR "WILLOW"
BY STEVEN RIEMAN FOR THE WESTIN DESERT WILLOW VILLAS
(WVC Rancho Mirage, Inc., Applicant).
Councilmember Finerty stated the art piece was actually something she
recognized and it was attractive.
Councilmember Finerty moved to, by Minute Motion, approve the reimbursement
of Art In Public Places Fee in the amount of $67,872.39 for "Willow" by Steven Rieman,
the Public Art Component for Westin Desert Willow Villas located at 75 Willow Ridge, Palm
Desert — funds are available in Account No. 436-0000-228-9900. Motion was seconded
by Kroonen.
Councilman Kroonen stated he took the opportunity to drive by the location
to look at the art piece and found it to be interesting and pleasing.
Mayor Pro Tem Spiegel called for the vote, and the motion carried by a 4-0 vote,
with Benson ABSENT.
B. CLARIFICATION OF A PREVIOUSLY SUBMITTED STAFF REPORT,
RELATING TO APPROVAL OF THE FINAL ENGINEER'S REPORT AND
ORDER TO LEVY FOR FISCAL YEAR 2011-2012 FOR THE CITY OF
PALM DESERT BENEFIT ASSESSMENT DISTRICT NO. 1.
Mr. Greenwood stated this item was to clarify an item that was on the
agenda at the last City Council meeting. The Council asked if the
assessment was increasing for this District and staff mistakenly reported it
was not. The levy is actually increasing from $436.62 to $449.72, which is
a 3% cost increase that is within the guidelines for this District.
Councilman Kroonen moved to, by Minute Motion, receive and file the report,
regarding the annual approval of the Final Engineer's Report and Order to Levy for the
Palm Desert Benefit Assessment District No. 1 for FY 2011-2012. Motion was seconded
by Finerty and carried by a 4-0 vote, with Benson ABSENT.
23
MINUTES
REGULAR PALM DESERT CITY COUNCIL MEETING JULY 14, 2011
XVII. PUBLIC HEARINGS
A. REQUEST FOR APPROVAL OF THE MANAGEMENT DISTRICT PLAN
AND ENGINEER'S REPORT, ORDER OF THE FORMATION/RENEWAL
AND THE LEVY AND COLLECTION OF ASSESSMENTS, AND
DECLARING RESULTS OF THE PROPERTY OWNER PROTEST
PROCEEDINGS FOR THE ALESSANDRO ALLEY PROPERTY AND
BUSINESS IMPROVEMENT DISTRICT FOR FISCAL YEAR 2011-2012.
Senior Management Analyst Ryan Stendell stated this item was a five-year
ballot for the Alessandro Alley Business Improvement District.
Mayor Pro Tem Spiegel declared the public hearing open and invited anyone
wishing to address the City Council on this matter to come forward at this time.
With no testimony offered, he closed the balloting and directed staff to tabulate the
ballots and report back.
Following reconvening of the meeting at 7:47 p.m., Mayor Pro Tem Spiegel
declared the public hearing closed.
Mrs. Klassen announced the balloting results as follows:
Total Valuation Ballots Cast $21,649.72
Total Yes Valuation Ballots Cast $9,105.22
Total No Valuation Ballots Cast $12,544.50
Due to there being a Property Owner Protest, the Alessandro Alley Property
and Business Improvement District WAS NOT FORMED.
Councilmember Finerty moved to waive further reading and adopt Resolution No.
2011 - 67, declaring the results of a property owner protest proceeding for the Alessandro
Alley Property and Business Improvement District, and approving certain related actions.
Motion was seconded by Kroonen and carried by a 4-0 vote, with Benson ABSENT.
B. REQUEST FOR APPROVAL OF THE MANAGEMENT DISTRICT PLAN
AND ENGINEER'S REPORT, ORDER THE FORMATION/RENEWAL AND
THE LEVY AND COLLECTION OF ASSESSMENTS, AND DECLARING
RESULTS OF THE PROPERTY OWNER PROTEST PROCEEDINGS FOR
THE PRESIDENT'S PLAZA III PROPERTY AND BUSINESS
IMPROVEMENT DISTRICT FOR FISCAL YEAR 2011-2012.
Senior Management Analyst Ryan Stendell stated this item was a five-year
ballot for the President's Plaza III Business Improvement District.
Mayor Pro Tem Spiegel declared the public hearing open and invited anyone
wishing to address the City Council on this matter to come forward at this time.
With no testimony offered, he closed the balloting and directed staff to tabulate the
ballots and report back.
24
MINUTES
REGULAR PALM DESERT CITY COUNCIL MEETING JULY 14, 2011
Following reconvening of the meeting at 7:47 p.m., Mayor Pro Tem Spiegel
declared the public hearing closed.
Mrs. Klassen announced the balloting results as follows:
Total Valuation Ballots Cast $24,044.64
Total Yes Valuation Ballots Cast $15,882.30
Total No Valuation Ballots Cast $8,162.34
Due to no Property Owner Protest, the DISTRICT IS FORMED.
Councilmember Finerty moved to waive further reading and adopt: 1) Resolution No.
2011 - 68, approving the Final Management District Plan for the President's Plaza III
Property and Business Improvement District for FY 2011-2012, and appointment of an
Owner's Association; 2) Resolution No. 2011 - 69, approving the Final Engineer's Report
for the President's Plaza III Property and Business Improvement District for FY 2011-2012;
3) Resolution No. 2011 - 70, ordering the formation of the President's Plaza III Property
and Business Improvement District and the levy and collection of assessments for said
District for FY 2011-2012; 4) Resolution No. 2011 - 71, declaring the results of a property
owner protest proceeding for the President's Plaza III Property and Business Improvement
District, and approving certain related actions. Motion was seconded by Kroonen and
carried by a 4-0 vote, with Benson ABSENT.
C. 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).
Principal Planner Tony Bagato displayed an ariel view of the project site from
the Mitigated Negative Declaration Study that showed the location of the
project, which is located off Highway 74 and south of El Paseo. The property
consists of six (6) lots totaling 4.97 acres, which includes the frontage road
if it's abandoned as the project is approved; the site is currently vacant. Prior
land uses on the site included a hotel before the City incorporated and a
previous approval for a Red Lion Hotel. After that approval in 1983, the old
hotel was demolished and the only thing left remaining was Le Paon
Restaurant. The site slopes approximately 28 feet from the north. Adjacent
property to the north is a Commercial property, the Imago Art Gallery; to the
south is a multi -family residential condominium; to the west is Planned
25
MINUTES
REGULAR PALM DESERT CITY COUNCIL MEETING JULY 14, 2011
Residential for Sandpiper; and to the east is a variation of multi -family,
condominiums, and apartments. The property has six parcels, which has
duel designation in the General Plan, one is Community Core Commercial
and the other one is High Density Residential, 10-22 units per acre. The
zoning of the property for all six parcels is zoned for Planned Commercial,
which is PC(4) and a designation in the Scenic Preservation Overlay District
(SP). That zoning was changed in 1983 as part of the Red Lion approval.
He said the SP outlines some standards that the Architectural Review
Commission is supposed to take into context when looking at massing and
signage. The project has three main driveways into the property; the far north
is the service driveway for all service, deliveries, and trash, which is all
underground; the middle courtyard is the primary access to the project, which
will have an internal driveway with internal circulation to underground parking
with valet service 24 hours a day, seven days a week; and the third entrance
lines up with Pitahaya, which will be a continuation of the existing frontage
road, but also allows entrance into the condominium portion with valet
service underground as well. The buildings will be used for an 82-room hotel
and 59 condominiums, which include a spa, fitness center, meeting rooms,
boutiques, shops, signature restaurant, ultra lounge, pools, and courtyards.
The project is designed as a LEED certified project, and the Applicant has
taken steps to obtain certification by incorporating some of the features
highlighted in the staff report like EnergyStar appliances, Green -Sources
Construction Materials, Energy Efficient Design, and are integrating Solar
Panels on some of the rooftops. He displayed plans that illustrated the
underground parking, which will provide 376 parking stalls. An alternate
study was done that allows for 233 stalls with only one level of parking, which
can be used if the cost of two levels is prohibited financially. This alternate
study shows off site parking areas where there is more than 200 spaces
available and in close proximity, which will require approval from those
property owners if that option was pursued by the Applicant. All Employee
parking will be provided on site with the 24/7 valet service available to them
as well. At this time, because staff is unsure of the total parking demand
due to the mix of uses, current application of the Ordinance requires 690
stalls. He contacted the Planning Department in Menlo Park by Palo Alto,
which has a 121-room Rosewood Hotel and actually has a larger banquet
and meeting space. In talking to their planning staff, their hotel only provides
225 parking spaces, yet in the three years that it's been running, they've
never had a parking problem or trouble with employees parking off site.
Therefore, Rosewood has been able to accommodate parking with a much
larger facility from that example. Traffic wise, staff reviewed the Traffic Study
and found it to be accurate. The project proposes about 1,000 trips per day
with trips peaking at 72 in the morning and 80 in the evening, which basically
leads to no impacts for the level of service today. In comparison, the former
Red Lion, which would have been a lower -level hotel with 248 rooms would
be two- to three times more impactful. Given that this property is zoned for
hotel usage, staff believes this is the best case scenario, because a lower
grade hotel would require more rooms and more trips. Even the former La
26
MINUTES
REGULAR PALM DESERT CITY COUNCIL MEETING JULY 14, 2011
Paon Restaurant would generate more traffic than this 82-room hotel given
the 4- or 5-star features. He displayed the site plan prepared by the City's
Engineering Department that overlaid the footprint of the building with
underground parking to illustrate the need for the frontage road, which the
City would abandon in the future, if this project is approved. He said the
underground parking would go into the frontage road and allow for more
landscaping and beautification of the sidewalk in front of the project.
Architecturally and building height wise, the developer used U-shape
buildings to basically eliminate the impacts from Ocotillo Drive by bringing
most of the building mass to the Highway 74 frontage. The building is
International Style with Mid -Century Modernism. With regard to the height,
the Zoning Ordinance requires that the overall height of a structure shall be
measured from the average elevation grade. Therefore, this building is 35
feet to the roof line and 38 feet to the parapet from the average grade with
a partial fourth floor. Section 25.56.300 states the building height shall be
measured vertically from the average grade to the highest point. He said the
third floor of the whole project complies with the Zoning Ordinance based on
this requirement, and the partial fourth floor can be approved under the
Zoning Ordinance through an exception that's allowed in the Zone as well as
the Development Agreement that's being proposed. This project went to the
Architectural Review Commission (ARC) in April 2010; it held five meetings
to look at the massing study. Initially, staff went out with the Applicant along
with some residents from Sandpiper to do a Balloon Height Study. He said
photographs of that study were in Council's packet showing what the building
would look like and the potential impacts. There was also Google Mapping
done with massing blocks to illustrate further what the potential impacts
would be, and based on those studies/reviews, the ARC asked for
modifications. The project was reduced by 30,000 square feet and the
building height was reduced. On July 13, 2010, the ARC approved the
project on a 5-1-0-1 vote. Even after the approval, the Applicant continued
working with surrounding property owners and reduced the project by
another 12,000 square feet, which reduced the project in total 42,000 square
feet. He displayed renderings of the initial elevation proposed by the
Applicant, stating that although staff was in favor of the hotel, it was
concerned about the massing. Originally, the entire building was four -stories
with a height of 72 feet at the highest point, which was above the average
grade. Then he displayed the current proposal, which has been approved
by the ARC and Planning Commission. He said that in addition to the Balloon
Study, staff recommended visual impact analysis and mapping studies to
show the project in better context. Staff chose specific view points coming
down from Highway 74, views from Sandpiper Circle, and views looking up
Highway 74 from El Paseo. In summary, the Application came in 2009, and
on July 13, 2010, the project received approval by the ARC by a 5-1-0-1
vote. On May 5, 2011, staff noticed the Initial Study and Environmental
Assessment for the Mitigated Negative Declaration. Staff received 63 letters
in opposition to the project, but two were withdrawn, and received 487 letters
in support. The Planning Commission approved the project by a 4-1 vote in
27
MINUTES
REGULAR PALM DESERT CITY COUNCIL MEETING JULY 14, 2011
June. The fiscal analysis for this project is that the cost of construction will
generate $1.2 million from permits alone to the General Fund, and it's
anticipated there will be $1 million in Transient Occupancy Tax (T.O.T.), and
create 200-300 jobs. The number of people it will attract to El Paseo cannot
be calculated, but there will be people spending money there. In conclusion,
staff is recommending approval of the Mitigated Negative Declaration with
all the studies identified. He said the impact analyses are Tess than
significant, the project complies with sections of the General Plan for goals
of the Commercial policies, and the City's Zoning Ordinance allows for hotel
use with height limits based on an average grade, as well as the partial
above. He said the Scenic Preservation Overlay allows for the ARC to look
at the massing; therefore, the building was specifically reduced as it related
to massing. With respect to traffic, staff believes this 82-room hotel is the
best hotel scenario, because it will not cause major impacts. He said the
Development Agreement ensures for a luxury hotel with amenities, because
it includes covenants that require this to be a 4- or 5-star hotel. A lower star
hotel would require subsequent approvals, because that would change the
traffic analysis and other studies done. He said the findings for approval
have been included in the staff report and offered to answer any questions.
Councilmember Harnik asked what was the square footage for the Red Lion.
Mr. Bagato said he didn't look at the total square footage, but knew it
included tennis courts, ballroom facilities, and other amenities that
Rosewood didn't have, which could have been more impactful. He noted the
tennis courts would have required lights. Further responding, he said the
Red Lion was approved for 248 rooms, which included two restaurants.
Councilman Kroonen asked if there was a Development Agreement
associated with that project.
Mr. Bagato responded there was no development agreement with that
project, except for a Change of Zone and Precise Plan. He said the
entitlements for that project expired, and the property has been vacant for
the past 28 years, other than the restaurant that was demolished in 2009.
Councilman Kroonen asked who owned the frontage road.
Mr. Bagato stated the City owns the frontage road, which will require a public
hearing at a later time to abandon it, if this project is approved.
Councilman Kroonen asked who owned the property, because he recalled
there are several parcels involved.
Mr. Bagato responded the six lots are owned by the Applicant. He said there
might be multiple people involved, but it was his understanding the Applicant
bought the property before they presented the project.
28
MINUTES
REGULAR PALM DESERT CITY COUNCIL MEETING JULY 14, 2011
Councilmember Finerty asked if the property was owned by Rosewood
Construction.
Mr. Bagato answered no, stating it was owned by Friedman Equities and
PDH Partners is the LLC. He said Rosewood would be the managing
operator, and the City had a letter of commitment from them on file, which
was actually one of the letters in support. Responding to question, he
confirmed it would be $1 million annually in T.O.T.
Councilman Kroonen said there seemed to be two options with regards to
parking, one would be to utilize off -site parking; however, he understood that
option had been abandoned.
Mr. Bagato explained approval of this project included both options, because
both scenarios will work, but a parking management plan would be needed
for the off -site parking, which would require recorded agreements between
property owners.
Councilmember Finerty asked if financing was in place.
Mr. Bagato deferred the financing question for the Applicant.
Mayor Pro Tem Spiegel declared the public hearing open and invited the Applicant
to provide his presentation.
MR. MATTHEW JOBLON, Applicant Representative, thanked the City
Council for the opportunity to present the project and wished Mayor Benson
a speedy and healthy recovery. He said this project was extremely special
and credited his team for all the hard work in arriving to this point. He said
his team consisted of the following individuals: Land Use Attorney Andrew
Fogg; Design Architect Richard Riveire (Rottet Studio); Executive Architect
Dale Yonkin (Nadel Architects, Inc.); Environmental Consultant John Criste;
Traffic Consultant Daniel Sato; and Community Outreach Representatives
Robert Pippin and Robert Roark. He said there was a distinct and true need
in the Desert for a 5-star hotel as all other major shopping districts in the
United States had multiple 5-star hotels feeding them customers. He said
there was a tremendous amount of wealth in Southern California that is not
being serviced right now for a true Desert resort. He said the team got to this
point by being lucky and fortunate enough to find this special site. He said
they made a real effort to collaborate with the community and held more than
200 meetings, sent out 10,000 pieces of literature, and worked with
professionals who specialized in programming 5-star hotels and sustainable
projects. He said it was the goal of the developer to create a synthesis in
order to become integrated in the integral part of the community. He invited
Mr. Richard Riveire to speak on the design of the project.
29
MINUTES
REGULAR PALM DESERT CITY COUNCIL MEETING JULY 14, 2011
MR. RICHARD RIVEIRE, Design Architect with Rottet Studio, stated
Rosewood Hotels are one of the world's premier hotel operators. They have
properties all over the world, including the Carlyle in New York, Mansion at
Turtle Creek in Dallas, and Las Ventanas in Mexico, all sterling and
wonderful properties. As an architect, the amazing thing for him is that
Rosewood looks at every project as completely integral with its site, location,
and character of the community. He said each of their projects are different
and have no house or brand style, because it's about the location. He said
the team spent a lot of time trying to understand the community and site to
make certain the project really ends up being a 5-star property and one that
is respectful of the architectural heritage. As a team, they bring a reputation
and design skills to the project that reinforces the idea of Palm Desert's gold
standard for architecture. He said it will be a sustainable project, because
every decision made will take into consideration the sustainability issue. The
architecture of the project is actually signage at the 5-star level, particularly
at the Rosewood level. He said signage is always a concern, but here the
level and quality of the design become a great part of the signage, because
they are looking for it to be low key, elegant, and sophisticated. He said the
entry and pylons came into question, but they plan to use them as an art
piece and homage to Erwin Hauer and the concrete geometry work he's
done and combine that with water to create visual patterns in an interesting
way. From a design and architecture point of view, and taking into
consideration the site and where it's positioned on Highway 74, they
recognized this type of building is seen on a bleak angle from Highway 74.
Therefore, it drove the team to design to the massing and low -slung building
with a very horizontal characteristic to it, which will include the elements of
the sun shades, screens, and indoor/outdoor relationship. He said the
building will give out a lot of visual texture on the facade and hopefully one
that is constantly changing as the shutters and things get moved around. He
said they tried to balance the constraints of the community, the site, and 5-
star program, and believed they were able to come up with a wonderful
synergy of those things.
MR. JOBLON displayed photographs of Rosewood hotel rooms, Porte
cocheres, lobby areas, and spas to give the Council an exact idea of the
quality of products they planned to build, which was consistent across
Rosewood portfolios of 19 hotels around the world. When they first arrived,
the goal was to make sure they had a real Community Outreach Program,
which was the focal point of their strategy. He said for more than two years,
they sought input from everyone possible and didn't hide anything. They
sent out literature, cold call people, provided a website, created a YouTube
video, and held five ARC public hearings. Of the people that attended the
ARC meetings, he personally approached each one that was in opposition
to the project to address their concerns, and additionally held multiple
meetings with Sandpiper residents. The first group they approached before
they did any type of planning were the Ocotillo residents, and their four main
requests/issues were the following: 1) No access or egress on Ocotillo Drive;
30
MINUTES
REGULAR PALM DESERT CITY COUNCIL MEETING JULY 14, 2011
2) massing of the project to be pushed away from Ocotillo Drive; 3)
landscaping to be provided on Ocotillo Drive side and use landscaping to
screen the building; 4) no nighttime noise. He said those were the first
guiding principals in trying to design this project, so the Ocotillo group played
a major role in the outcome of the project, and it now has their full support.
The Sandpiper community was the first to come out during the Architectural
Review Commission meetings in opposition to the project, so numerous
meetings were held. He personally went door to door to every single house
in Sandpiper to drop off literature about the project and left contact
information. A Balloon Height Study was done with City staff where
residents of Sandpiper were present taking pictures. He said they chose the
areas the pictures were taken from and actually had a tape measure to make
sure the balloons were high enough and taken from the right locations;
therefore, it was a comprehensive process. As a result of those
conversations, the team made significant changes to the building by
removing 30,000 square feet, changed the front of the four-story building as
it became perpendicular to Sandpiper, and setback an additional 45 feet. As
demonstrated from staffs visual simulation, the four-story building can barely
be seen from the two worse locations that can most be impacted within
Sandpiper. They specifically circumvented no one from the process and
tried to hear from everyone. For additional community outreach, they
became active members of every single trade organization and engaged with
the College of the Desert to build a relationship with them. For example,
when he met with Mr. Jerry Patton, President of College of the Desert, they
spoke about an intern program where students in the hospitality program
could work at the hotel and get real life experience to build their resume. In
turn, Mr. Patton could possibly be able to grow the Hospitality Program by
saying they have an exclusive relationship with the Rosewood Hotel and the
type of experience students can compete on to go there. He said there is a
ton of different synergies between the two and other examples of how they
can work with the community. He said they have done everything from a
website, YouTube video, spoke to the media at all times regardless of how
tough the questions were, because they wanted to make sure it was a
complete open process. He reiterated they held more than 200 meetings in
the community, mailed out 10,000 pieces of literature about the project, and
made every effort to give everyone the opportunity to speak on the project.
He recognized they didn't speak to everyone, but it wasn't for lack of effort.
Another example of reacting to the needs of the community, a week ago at
one of the meetings with City staff, there was concern about assurances that
a 5-star hotel would be built. Well hours after that meeting, he called a
relationship of his in Beverly Hills who had the same situation and
researched how they handled it with that city. The next day, he e-mailed the
City Attorney with language that was specific to make sure the City gets a
5-star hotel. In addition to the meetings held, staff mentioned they received
478 letters of support, and he received another 150 today; therefore, there
are a total of 600+ letters of support. Additionally, they have 800+ people
who are on their petition and support list. As part of the evolution of this
31
MINUTES
REGULAR PALM DESERT CITY COUNCIL MEETING JULY 14, 2011
process, there were five ARC meetings, and at the first one, it was clear that
some people in the community were not happy. So instead of moving
forward and ignoring them, they took a step back and met with the people in
opposition and modified the building significantly. He said it wasn't just the
community that was in opposition, because members of the ARC and City
staff had issues as well, but he believed they have responded to all. He said
today's photographs illustrated the dramatic difference of their modifications
to the initial one proposed. He said traffic seemed to be the hot button of
discussion at the last Planning Commission meeting; therefore, his goal in
this presentation was to provide more facts to give people a better
understanding of the project. He said the project will result in no significant
traffic impacts with 72 trips per hour in the morning and 80 trips per hour in
the evening per. Years ago, the City Council approved a more negative
impact project with no positive impact for El Paseo. As an example, a 3,000
square foot Taco Bell would have between 100 and 150 trips during peak
hours, which was almost two times more than what Rosewood was
proposing. The prior Red Lion hotel, which was a 248-room hotel with two
independent restaurants, would have been triple times more traffic. Another
issue that came up was whether there would be vehicle stacking issues, so
they did a simulation that can be shown after the presentation. He said the
fact is that all guests and resident parking is 100% valet, stating they had an
efficient internal rapid valet system. Inside the Porte cochere they can stack
18 vehicles. As an example, peak hours' maximum entry is approximately
60 vehicles per hour, and Rosewood's capacity can handle at least 100
vehicles per hour, which were the result of the initial study, but when they did
the simulation it showed they can handle 400 vehicles per hour with normal
staffing. However, planned events can be properly staffed to accommodate
a multiple of that number; therefore, parking and stacking will not be an issue
for this project. He said they will be the models for implementing Senate Bill
357, which is Sustainable Development. He said all service vehicles can be
controlled by having them come in during the off-peak hours. He said the
comprehensive traffic study was approved by the City, stating he worked with
staff until they exhausted that process. Where he believed the project was
most impactful was in the benefits to the City, because the project is
estimated to bring $2 million a year to the City in property taxes and T.O.T.,
it will provide 250-300 permanent jobs, and create 100-150 nonpermanent
construction jobs, which should take a significant chunk out of the
unemployment for Palm Desert. He said the total project was $125 million
that will benefit the community, improve the location, and enhance the whole
area. He said condominiums were selling for an average of $2 million+ per
unit, which will drive neighboring property values significantly. He said there
was an unquantifiable stimulus that will go to El Paseo, stating there will be
30,000+ people per year, conservatively, staying at this hotel and
undoubtedly walk to El Paseo and be compelled to spend money there. The
secondary economic impact is that it will generate significant business for
local subcontractors and service providers. He said creating a synergistic
relationship with El Paseo was key to the success of this hotel. He said they
32
MINUTES
REGULAR PALM DESERT CITY COUNCIL MEETING JULY 14, 2011
viewed this hotel as an anchor to El Paseo, similar to Fifth Avenue or
Madison Avenue in New York where they have the Four Seasons, St. Regis,
and The Peninsula all in the same location. If one went to those streets
anytime during the year, one can barely walk. Another example is Rodeo
Drive where you have the Regent Beverly Wilshire anchoring it with the
Montage Hotel one block away. He said these streets have thrived because
they have high -end hotels bringing in additional revenue. He said
specifically on El Paseo, pedestrian traffic will increase dramatically, which
will drive up sales tax, property tax, lease and demand, and then the ends
all be all, which is employment. He said Palm Desert will be the first City to
have a true 5-star hotel and brand, which will bring new people and
businesses to Palm Desert. For example, the property mentioned by staff,
Rosewood Sand Hill at Menlo Park in Silicon Valley has become one of the
hottest hotels for deal making in the venture capital world. He said
undoubtedly, when people want to come to the Desert to look at deals or
have a retreat, they will want to stay at the high -end hotel, especially when
they just had an amazing experience at one. He also believed there was an
amazing opportunity for an international crowd to come to Palm Desert as
Rosewood has hotels all over the middle east, Asia, and Europe, which do
very well and have built great brand recognition there. This project will
continue to differentiate Palm Desert from other cities in the Coachella Valley
and solidify Palm Desert as a luxury destination for business and leisure
travelers. He said from an environmental standpoint, having a sustainable
project played a major role in the design of this hotel. He said 5-star hotels
have had difficulty surviving in the Desert, so before they embarked on this
project, they did a comprehensive study of what not to do and what to do
right to ensure money spent today will provide a successful project. He said
they learned a couple of lessons from the Ritz Carlton in Rancho Mirage.
For instance, having a small hotel with a low -fixed overhead was crucial,
because during the summer, in the off-season, it is difficult for all hotels.
Also, having large, luxury oriented rooms with high ceilings that make rooms
feel spacious is important. Additionally, they need to make sure the program
is appropriate, the hotel has a clear identity, and that it's a true 5-star product
with all the services that come along with it. The hotel will have 10,000
square feet of meeting space for boutique type of conferences catering to
high -end personal events and/or high -end corporate retreats. He reiterated
this project was dependent upon El Paseo and having it as an amenity,
which is a key part of the project. He said the hotel was designed and
programmed to fit into the indigenous urban fabric, and they worked with
Southern California Architects, which specializes in environmental
sustainable projects. He said creating public spaces within the hotel and
establishing a connectivity to El Paseo to make sure it invites and
encouraged the public and locals to the project was critical to the success of
this hotel. He said PDH Partners is the LLC that owns the property today
and consists of three different developers. Their combined track record for
the past 40 years is a total of $4 billion in deals, building and investing in
more than 9,000 residential units, built 1,700 hotel rooms, built 4 million+
33
MINUTES
REGULAR PALM DESERT CITY COUNCIL MEETING JULY 14, 2011
square feet of office space in major metropolitan markets, and 500,000+ of
retail space. Some representations of projects built are famous, such as 40
Bond Street, New York, which sold out for the highest price per square feet
in Soho, New York; the Delano Hotel in Miami Beach, which is one of the
most famous hotels and drives the highest revenue thus far, despite it being
20 years old; The Gramercy Park, which is one of the most well —performing
hotels in New York City; the 184th Fifth Avenue was a $240 million project,
which was just completed. He said they took an old warehouse and cut a
hole in the middle of it and converted it into 369 market -rate apartments, and
the building canter levers over the east river in Brooklyn; The Cosmopolitan
in Las Vegas was a $4 billion project that exists today, stating that when the
developer defaulted the project, his team was brought in and took it over for
nine months, and the Ritz Carlton in Baltimore. He said the team had
tremendous experience, capital, and access to capital resources. One of the
most important things they did was put together an A+ team that had
tremendous experience in delivering a 5-star product. The Design Team
Dale Yonkin and Richard Riveire are responsible for the Beverly Hills Hotel,
the two new Presidential Bungalows, which the Prince and Princess just
stayed recently, the Surrey Hotel in upper east side New York, the St. Regis
Hotel in Aspen, and The James Hotel in South Beach, Miami. In conclusion,
he said there was a distinct need for a 5-star hotel and the financial benefits
to the community are tremendous, most of which can't be quantified. He
said the team was sensitive to site planning, and they made sure to listen to
as many people in the community to try to incorporate as many of their
concerns while still maintaining a 5-star brand and financially feasible project.
Once they provide the first 5-star hotel to the Desert, the El Paseo
experience will be altered dramatically for the positive. He said the City was
dealing with a team with a track record of executing and getting things done.
He noted there's never 100% support for a project, and that includes his
partners who have 40 years of experience, but this project had tremendous
support as seen by the number of people in attendance supporting this
project along with letters of support, which dwarf's the nay sayer. He said
they created a top -tier team with top architects, and they brought in a top
brand with the focus on being able to deliver a project that can be built and
executed, while taking into consideration all the needs of the community. He
said the City of Palm Desert had always said they can wait for quality, well
quality had arrived today. He thanked the City Council for the opportunity to
present the project and offered to answer any questions.
Mayor Pro Tem Spiegel invited testimony in FAVOR of or in OPPOSITION
to this project.
The following individuals spoke in FAVOR of the project:
MS. KATHLEEN KELLY, 46100 Burroweed Lane, asked the City Council to
promptly and expeditiously approve the request. She said with respect to
speakers in opposition to the project, since 1983 surrounding residents have
34
MINUTES
REGULAR PALM DESERT CITY COUNCIL MEETING JULY 14, 2011
had reason to understand that a hotel was considered, which was an
excellent use for this property. However, it stretches human capability to try
to envision a better application. She said the upscale nature of the proposal,
limits units to a small number, by comparison, even to the 1983 Red Lion
proposal, assured minimal impact to residents and provided maximum
benefit to the City. She said the benefits to the City was not just revenue,
but also attracting people to Palm Desert who can maximize its positive
notoriety. The General Plan states, "The City of Palm Desert is the premier
business resort and residential community in the Coachella Valley." She
thanked the City Council for all it has done to make that true today and urged
the Council to promptly approve this request as a significant contribution to
keeping it true and resetting the reputation of Palm Desert as a community
that invites collaboration with the best elements of business and works with
them.
MS. DEBORAH MCGARREY, 79335 Camino Del Oro, stated that as a
member of the Palm Desert Chamber of Commerce Board of Directors and
Chairperson of the Legislative Action Committee, she encouraged the City
Council to approve staff's recommendation. She said the benefits to the City
as laid out by staff are: $1 million in T.O.T., 200-300 permanent jobs, and
potential customers for businesses in El Paseo. She said the 5-star hotel will
compliment El Paseo's first class stores and restaurants.
MS. BARBARA deBOOM, 72559 Highway 111, Palm Desert, deferred
because comments had been made by Ms. McGarrey.
MR. STEVE FUCHS read a prepared statement on behalf of MR. MIKE
GRANUM as follows: "As one who lives right off El Paseo and will be
impacted by what happens on this wonderful street, I want to offer my
support of the architecturally pleasing and the much needed hotel. Assume
for a minute that this hotel is approved and built, then fast forward 60 years
into the future. Everyone is in the same Council Chambers packed wall to
wall with citizens, but now on the agenda is an item to decide if the hotel is
to be torn down. For 60 years now, this hotel has become a meeting place,
watering pool, an oasis, and destination. Residents would be outraged that
anyone could consider the unthinkable and lose this iconic piece. The vote
would be 5-0 against allowing demolition to save the City's masterpiece."
MR. JERRY R. PATTON, President of College of the Desert, stated the
guiding principal undertaken at the College is to work with businesses and
industries to ensure the curriculum meets the needs of the business industry.
He was contacted seven or eight months ago by Mr. Joblon of Friedman
Equities to review the types of internships and collaborations he had with
community colleges in other areas where his hotels are located. He said the
College offered an AA degree in Hospitality Management and a transfer
degree to California State University (CSU) in Hospitality Management as
well. He said Hospitality Management is the study of different aspects of
35
MINUTES
REGULAR PALM DESERT CITY COUNCIL MEETING JULY 14, 2011
management and leadership as it relates to the industry, including such
sectors as hotels, restaurants, travel services, gaming, and entertainment.
The age of being in Hospitality Management will enable students to find a job
in the industry as well as transfer to a local university for a bachelor's degree.
The Management Program includes course offerings in the general overview
of Hospitality, Operations, Culinary Arts, Finance, Business, and Labor Law.
The most important point is the synergy between business, industry, and the
College. For example, students doing internships at the hotels are provided
real -world experience and building their resume is critical for employment.
The College Advisory Committee is comprised of business and industry
experts in their area, and they serve on the Hospitality Program to make sure
the curriculum is relevant; they also serve as guest lecturers. He said there
are many other ways the College collaborates with business and industry,
and this hotel will provide COD students with another opportunity to have
real -world experience. He encouraged the Council's consideration of this
request.
MR. PHILLIP SMITH, 300 Eagle Dance Circle, Palm Desert, stated he was
Regional President of Sunrise Company in Palm Desert, and the President
of the Desert Valley's Builders Association (DVBA). He said DVBA did not
endorse individual projects; however, its members are excited about the
opportunities that the Rosewood Hotel would present to the building industry.
He said many members have written letters in support of this project, and he,
as a business person and 30-year resident of the Desert, is a strong
supporter of the project. He said this project would be good for Palm Desert
and the Valley and encouraged the Council to approve the project.
MR. MATT JOHNSON, 73-134 Bel Air Road, Palm Desert, stated he was the
founding partner of Wilson Johnson Commercial Real Estate and property
owner on El Paseo. He said many of the tenants supported this type of
project. He said he reviewed both the original presentation and the modified
one and thought the developer did a great job in blending their product with
the community. He urged the City Council not to delay in supporting and
approving this project.
MS. MIMI JONES, 72-700 Bel Air Road, Palm Desert, stated she supported
the project and noted she drove up and down Highway 74 probably five or
six times a day during the school year. She said she had a vested interest
in this community as she was a resident, President of the Desert Contractor's
Association, and owns a local wrecking company. She believed this project
will increase property value and help the Sandpiper Community and El
Paseo merchants. She noted her father who is an artist and lives outside the
Valley was delighted to have one of his sculptures on El Paseo, because this
area was so prestigious. She said this hotel would be great for the
community and thanked everyone who came to the Desert Contractors
Association and been able to participate. She asked the City Council to
support this project.
36
MINUTES
REGULAR PALM DESERT CITY COUNCIL MEETING JULY 14, 2011
MR. EDDIE OLLMANN, General Manager at Westfield, Palm Desert,
expressed support of the project and urged the City Council to approve it.
MR. DOUG BALOG, 73200 El Paseo, Palm Desert, stated he appreciated
the opportunity to speak in favor of this development from the perspective of
economics, a business owner on El Paseo, and President of Sandpiper.
First, with regards to economics, he said this Country and the State are
broke, which will eventually filter down to local communities that new ways
will need to be developed to support the safety, police, and medical currently
enjoyed. He said the cost of local government had to be overcome and one
avenue was through small businesses, because they can generate and
develop economic growth, and create jobs. He said this hotel will provide the
City with the employment base needed, which are 200-300 permanent
positions along with employing construction workers. He said the
development of this project will increase pedestrian traffic along El Paseo,
which will help merchants, restaurants, and landlords in trying to fill the
vacant buildings. Secondly, as a business owner and broker for KW Luxury
Homes by Keller Williams, he's been on El Paseo for seven years and knew
that a lot of the walk-in traffic came from major communities that are at a
higher price point. The type of hotel envisioned here will entice those that
can afford $700 a night or a $2 million condo, which will bring a lot of
business to the art galleries, restaurants, etc., and his business as well.
Thirdly, as a homeowner and resident of Sandpiper, be believed this project
will enhance Sandpiper and affect home values in a positive way. He heard
the negative comments about Sandpiper, but in the last two months he sold
five properties there, one property was 251 Sandpiper. He sold that property
to a contractor from Canada, Brent and Erin Frazier (sp?). The reasons for
their purchase had to do with the proximity to the hotel and the fun along El
Paseo. He said another unit was sold to a developer. Lastly, the alternative
would be to leave the vacant lot there with no view or value to anyone. He
said great cities had great down towns, so he asked the Council to support
this development and think long term as opposed to what will happen in the
next few days.
MR. FRED FERN, 73-061 El Paseo, Palm Desert, stated he was an
investment advisor for almost 50 years and is involved with El Paseo,
because he has ten buildings with clients there. He believed everyone,
including those who raised concerns shared a common ground for this hotel.
which was El Paseo. He said El Paseo was a wonderful street and it was
amazing to see the growth, but the stores need to have a luxury hotel or
something more to help the merchants, especially in this economic
environment. He said the proposed hotel fit beautifully to what the concept
is about long term. Secondly, this project needed the blessing of the City
Council and what the forefathers had contributed in creating a wonderful
City, which had to do with sales tax dollar, but not all from hotels. Thirdly, he
understood the concerns about the height and what it will do to people's
existing views. However, in his many years as an investment advisor, he
37
MINUTES
REGULAR PALM DESERT CITY COUNCIL MEETING JULY 14, 2011
could look those people in the eye and say, from a common sense
perspective, it will increase the property value of their home as previously
stated by others. He spoke to the developer and was told they expected the
hotel to be completed in the next two to four years. He believed this project
was positive for everyone concerned, which he believed was common
ground for all.
MR. JOEL WALLIS, 46196 Cypress Estates Court, Palm Desert, stated he
was with the Penta Building Group located on Highway 111 and Monterey
Avenue, and he traveled in and out of there everyday, and it's his
observation that Highway 74 was not heavily impacted by traffic as
presented. He said the project will help with job creation, because
construction was a tough market right now, and he was familiar with the
Rosewood brand and level of quality, which would be a great fit for Palm
Desert and El Paseo.
MR. MARIO GONZALES, 3 Rancho Clancy, Rancho Mirage, stated he's
been building here in the Valley since 1978. He was a very good friend to
Curt Dunham who was one of the first people who envisioned the El Paseo
corridor. He said this was a great opportunity for the City for these
developers and investors to commit these types of dollars, which was a big
testimony of their belief and faith in this City. He said one of his partners
John Wessman was not able to attend this evening, but wanted the Council
to know he was in favor of this project as well. He said the hotel would be
a huge asset to the City, and he was extremely in favor of the project.
MS. MARILYN IRVIN, Sandpiper resident, stated she served on the
Sandpiper Board, but was only speaking on behalf of herself. She knew that
Mr. Joblon had personally visited at least 100 homes in Sandpiper and had
personally hung informational directives and invited people to meetings. She
said Mr. Joblon wanted to have coffee and social hours, but the problem is
half the residents in Sandpiper only lived in Palm Desert half the year.
However, if they were in favor or against the project, they could very well
have written the Council a letter. She asked the City Council to not stop
progress, because this was a wonderful project.
MS. MELISSA MORGAN stated she was the owner of Melissa Morgan Fine
Art on El Paseo since 2003 and lives in Sandpiper. She was disappointed
to hear so many residents in one small development say they have enjoyed
the view of a property they didn't own, which is great they have enjoyed it,
but the vacant property needs to get used. She said retail on El Paseo has
been challenged and the potential revenue that will be created by this project
is exciting, and it would be sad to see this 5-star hotel go to La Quinta or
elsewhere. She said growth is never easy and everyone couldn't be pleased,
but collaborating with businesses is a prerequisite for communities to keep
peace. She said this community is Lucky to attract a project like this and
hoped it will be supported.
38
MINUTES
REGULAR PALM DESERT CITY COUNCIL MEETING JULY 14, 2011
The following individuals spoke in OPPOSITION to the project:
MR. CRAIG ARMSTRONG, 72748 Beavertail Street, Palm Desert, stated he
didn't appreciate the negativity and name calling in defense of this project,
including being called a nay sayer by the CEO of the Palm Desert Chamber
of Commerce, which leads one to believe there is much more than is being
openly shared with residents. He said he and others were only asking
reasonable questions and raising sensible concerns. One defense of this
development is the threat that without it Palm Desert will make the same
mistake Palm Springs did 30 years ago when it rejected a project, which he
didn't believe was the case here. He said there was a difference between
opportunistic development and smart growth, because there is no single
building, project, street, or business that defined Palm Desert. He said the
luxury status the developer is attempting to convey should be based on
service, honesty, and respect to its guest and community it resides. He said
if developer and architect truly cared about architecture and community, they
would not want to build a sore thumb, but a building that complimented the
area and respected the integrity of the City's building codes. He said, if that
existed, there would be no need for the intense promotion this project had
received or for residents to defend the community. He believed there was a
breach of trust within the community, because of the size, scope, number of
variances, exceptions given, and unanswered variables this project
represented. He said this project was about maximizing sellable square
footage and wrapping a bulking building with materials that were trendy or
unique ten years to get the biggest slice of the market. He said the real
question was whether this would be another out-of-date building with a huge
footprint 10 or 20 years from now or a reasonable one that fit within the
building codes and zoning requirements and maintained long-term integrity
for the community. He asked the City Council to rely on facts, uphold the
gold standard of development in Palm Desert, and not on variables of
reports, studies, and promises made by paid promoters of this project.
MR. BOB PARKIN, 243 Sandpiper, Palm Desert, expressed concerned that
this project had been hyped as a 5-star hotel to be operated by Rosewood
Hotel & Resorts, yet no representatives from Rosewood have been present
at the hearings. He heard staff mention Rosewood had submitted a letter of
commitment, but he was only aware of one dated January 20, 2011, which
is addressed "To Whom It May Concern." In that letter is a statement that
states, "In May 2009, Rosewood executed a non -binding letter of intent with
PDH Partners, LLC, to provide eventual technical support and hotel
management services for the property." The Development Agreement (DA)
didn't mention Rosewood nor a 5-star hotel, which is the main subject of this
hearing. He said the DA simply gives the developer a right to proceed with
this project as approved by the Planning Commission. He said the DA was
a 10-year agreement, which gives the developer exclusive control with the
manner and timing of construction, so construction wouldn't have to begin
39
MINUTES
REGULAR PALM DESERT CITY COUNCIL MEETING JULY 14, 2011
until nearly 10 years out. The DA also gives the Applicant the right to
transfer this project to another developer, which could happen 30 days after
the Ordinance is adopted. He said if that transfer took place, the City would
have no right of approval or disapproval over the new developer. The only
thing required is for the transferor/applicant to provide a report on the
qualifications of the transferee. He said for a project of this size, the City
should have some right of approval over whom the new transferee will be.
MR. NEAL MAZE, 213 Sandpiper, Palm Desert, believed this project will
destroy the Sandpiper community completely. He said Sandpiper contributed
a lot of revenue to the City, because it had at least 50 rental units along
Highway 74 that will be affected by the noise and size. It will also directly
impact the other 46 units that are winter homes, including the previous
speaker Mr. Parkin, who incidentally is a Judge and covered the legal side
of this issue very well. He noted Sandpiper had 200 people going up and
down El Paseo buying food and shopping there for 30 years. He said the
developer claims to bring an equal number of people with their hotel, but
Sandpiper people will probably no longer want to stay in Palm Desert,
because this hotel will be too noisy and cumbersome. He was aware
Mr. Jobion had spoken to Mr. Tom Rasmussen (sp?), but after their meeting,
Tom elected to sell his house and move. Mr. Jobion talked to another guy
in Circle 4 who also elected to sell his home and move, and another three
are trying to sell their homes because of this project. Therefore, this project
had already created hardship in the community and will continue to. He was
also very concerned about the noise during construction, because it will
subject him, and another 300 people in the winter, to 140 decibels of noise,
dirt, and diesel for at least three years. He said there will be a decrease in
revenue, because people will not want to stay in Sandpiper, which he
thought was a travesty.
MS. MARGUERITE STETSON, 263 Sandpiper, Palm Desert, stated she's
lived at Sandpiper for 19 years, and she's expressed her concerns about the
project since it was first submitted to the Planning Commission. She
believed those in Sandpiper have been left out of the special treatments, and
rightly so, because they cannot see the value of this project. She said the
mountain views for half the homeowners will be replaced by this massive
structure. She heard the project management was providing cocktails and
promises of special treatment after the hotel is completed. It is her
understanding there will be luxury condos in the $1 to $2 million range with
no golf course to offer. She said there were luxury hotels within four or five
miles that have trouble keeping 30% occupancy in the summer and 50% in
the winter, which didn't sound like another hotel was needed. She
questioned whether the developer had strong buyers for these $2 million
condos, and is there some reason they believe these expensive hotel rooms
will be filled with people who will go shop on El Paseo. She too, had
concerns with the Letter of Intent from Rosewood Corporation and that the
City was giving them the use of the right-of-way on Highway 74. She
40
MINUTES
REGULAR PALM DESERT CITY COUNCIL MEETING JULY 14, 2011
continues to be concerned about traffic, because the figures provided didn't
seem correct to her. She said there were all indications that this project
cannot succeed and asked what will happen then.
MR. KARL RIMER, 74075 Candlewood, Palm Desert, gave praise for efforts
toward building a 5-star hotel and appreciated the first and second floors, but
was totally against the height of the fourth floor at 57 to 60 feet and against
opening the door to more big box buildings. He drove to Palm Desert most
weekends from Los Angeles for 30 years, yet he didn't mind it, because it
was worth it. He said Palm Desert was beautiful in his first visit and still was
today, thanks to the height restrictions that hold residential to one story and
commercial to two stories. He said the old City fathers were wise and
forward thinking, asking everyone to just look at the results. He said Palm
Desert had retained its charming village appeal as it has evolved into a City,
proving that you didn't have to build up to be a viable city. He said natural
beauty was the look of Palm Desert's success. He said the three/four story
proposal is a serious insult to this City, to its residents, and tourist that came
from all over the world to cherish and appreciate its beauty.
MS. JOAN TINGLE, 46179 Highway 74, Palm Desert, stated she lived in
Sand & Shadows, which is about one mile from the proposed hotel. She
said the Applicant mentioned how often they contacted people in the
community, yet she hadn't been. She noted she had been told by many that
this project was a done deal and to not waste her time. She disagreed with
the traffic figures given and is opposed to the whole idea of a hotel for the
following reasons: traffic, construction, height and scale, no need for another
hotel, and skeptical of the financing, because other hotels that were in
construction had come to a stand still. Additionally, she noted an article in
The Desert Sun stated the project had met resistance from nearby residents
who were concerned about height and scale, but had support from other
neighbors and much of the business community. Her comment to that article
is that she and others in her community were not consulted. She was also
concerned that this project would be voted on when many in her community
who are snow birds were not here to give their opinion. She asked the
Council to look at this project carefully before rubber stamping it.
MS. KIM HOUSKEN, 73237 Somera, Palm Desert, agreed with
Mr. Armstrong's comment, that just because concerned residents raised
questions, didn't mean they were opposed to the project or were nay sayers;
many just don't believe this is the right project for this location. Her biggest
concern is that the zoning at this location is for the Planned Commercial
Resort, and the definition in the Code is low-rise bungalow style hotels, which
the setbacks are based on. She envisioned the La Quinta Resort with the
wonderful bungalows there, which she felt was a far cry from what was being
proposed. She said if the Council was interested in having a project of this
magnitude, the setbacks would need to be increased drastically, because
they are meant for a low-rise bungalow style hotel. She has a safety concern
41
MINUTES
REGULAR PALM DESERT CITY COUNCIL MEETING JULY 14, 2011
with the project, because there is no secondary access or fire road on the
property. She was stunned to read the Fire Chief believed that fire fighting
can be done from the curb on Highway 74 and on the curb on Ocotillo Drive,
stating they can enter through the Porte cochere where the valet takes your
vehicle. However, that area isn't wide enough for the fire truck to turn
around, thus the truck will back out onto Highway 74. She couldn't believe
this was okayed and wondered if there was a prior precedence where there
is no longer a secondary road for fire. She believed the CEQA documents
had numerous flaws relating to traffic impacts on Highway 74, stating it was
a poorly written document and offered to review many other details she had
with it. Additionally, staff mentioned the ARC looked at the Scenic
Preservation Overlay (SP), yet she reviewed the minutes and found nowhere
that the SP was ever mentioned to the ARC nor the Planning Commission.
She said this was a zoning overlay that Mr. Bagato looked at for one'/z years
and seemingly never acknowledged, which is not an optional item, but that
the ARC shall consider, including height, setbacks, landscaping, etc. She
didn't feel this project had been fairly evaluated by either ARC and Planning.
Lastly, Mr. Joblon's comment that his team had a track record of success,
yet in her research of the eight Rosewood properties in the Forbes Travel
Guide, formerly Mobile Travel Guide, none had received the 5-star label.
Therefore, working with Rosewood Hotel was not necessarily working with
a track record of success.
MS. CATHY P DAVIS, 233 Sandpiper, Palm Desert, stated she concurred
with concerns already mentioned and would not belabor them. She said it
didn't make sense to add more rooms and housing to this struggling
economy. She personally is concerned with the privacy that she will lose,
because her condo will face the hotel and the mountains will be obliterated
from her view. She noted her condo is rented out occasionally and believed
this hotel will be a detriment to people wanting to return. She said the value
of her property will decrease, because she went through a similar experience
when she lived in Silicon Valley where a nice hotel was built next door and
her home did not retain the same value as other homes. The reason given
by people going to see her house was due to the hotel being next door.
MS. MARLA PAASCH, 72551 Pitahaya Street, Palm Desert, stated she lived
on the street adjoined to the valet parking. She said this was not the first
time to address the Council with regard to a gas leak and bad piping
underneath the City. She said in 2007 there was a large gas leak that came
from the road, and this was the seventh time she was addressing this issue
along with a seven -page e-mail. She went on to describe the issues she
believed existed and the dignitaries she's spoke to about this matter. She
said she was moving to Florida and was done dealing with this matter,
because her child had been suffering from asphyxiation from the smell. Her
main concern is that there will be too much traffic in an already congested
area going from the proposed hotel to the park. She said the gas company
was ready to do 35 homes and/or do something about it, but the City had
42
MINUTES
REGULAR PALM DESERT CITY COUNCIL MEETING JULY 14, 2011
stopped them. She said San Marcos is under investigation, because of their
City Council, and the 1959 pipelines were not properly maintained, which
was the reason for the gas leak and explosion in their area. She had nothing
against the nice hotel, but this was a residential community and believed the
gas issue needed to be addressed before extending anything in the City.
Mayor Pro Tem Spiegel stated the City Manager will contact her regarding
the gas problem. He said the City was currently installing new gas pipes
under Highway 74.
MS. BRIDGET ZAPPIA, 40686 Via Fonda, Palm Desert, agreed the
proposed project was a beautiful one, but it's in the wrong location. She said
Palm Desert had the gold standard and looked to Councilmembers to make
builders adhere to it. She's impressed with the outreach of the developer
and the 200 meetings held, but the people she's talked to were not invited.
She said the City has a 300-feet radius noticing requirement when making
changes to a property, but this project was much larger that she questioned
why a larger scope of residents couldn't be notified. She has gone door to
door gathering signatures from people who were not aware of the project or
thought it was a done deal. She offered to get that petition from her car if
Council was voting on the project this evening, but preferred to hold on to it
if the Council chose to wait for Mayor Benson. She was surprised to learn the
ARC and Planning Commission approved a project that seemed to take
particular interest on one side of the street of Ocotillo Drive, because in
listening to their concerns, the developer made amendments, but hadn't
done anything to help Sandpiper. She questioned the traffic information and
curious to know if the noise study was provided. Additionally, with regard to
the 200-300 permanent jobs, she asked if there was a guarantee the
developer will use local construction workers and if this project aligned itself
with Coachella Valley Economic Partners (CVEP), because the City had
invested a lot of money to training children of this community to return to
Palm Desert, and will these jobs be fit for people to live and reside with
respect to wages. Lastly, she asked if story poles could be provided for this
project, because they were denied previously.
MS. JAN COFFYN, 363 Sandpiper, Palm Desert, stated she's written several
letters to the City with her name and contact information in the past year;
neither she nor her neighbors have ever been contacted. She thought
someone would seek out their address to ask for their opinion, but there's
been no interest in them. The developer has said that the view from Unit 3
will be negligible, which she felt was a subjective term; however, from her
viewpoint it was very dramatic and major. She had no concerns about the
quality, ethics of Rosewood, or against the 5-star hotel, because she
believed it can be used, but thought it should be structured in conformity with
the neighborhood and in harmony with Palm Desert. Additionally, the
developer indicated he would plant vegetation to hide the hotel, and
questioned why would Rosewood or any hotel want to hide their structure
43
MINUTES
REGULAR PALM DESERT CITY COUNCIL MEETING JULY 14, 2011
from Highway 74. She also didn't know how this would increase the property
value for Sandpiper, when she sits out by the pool with her friends and sees
a strip of light from the lighted hallway going down to their area. She asked
how will that improve her property value and her enjoyment.
MS. IRENE BROMAN (sp?) stated she was a visitor and speaking on behalf
of MR. MICHAEL O'NEIL who is a Sandpiper resident and could not attend
this evening. She said Mr. O'Neil had the following requests and concerns:
1) Conduct an independent staking that documented accurate heights; 2)
concerned about the reflective services of all the windows directly facing the
Sandpiper units and amplified sound in any public area; 3) a guarantee that
none of the condos would be turned into time shares or short-term rentals;
4) a guaranteed start date, duration, and completion of construction; and 5)
power lines in the area to be put underground. In respond to the comment
made that Sandpiper residents are concerned about losing views they didn't
own, she said people in Sandpiper are concerned their view will be a
massive building and not the mountain views. Additionally, the minutes of
the last meeting stated all deliveries will be taking place during off hours early
morning, which meant there will be semitrucks driving through residential
areas to load and unload deliveries.
MR. BOB PITCHFORD, 74825 Fairway Drive, Palm Desert, stated this
project was too big for the site and resented losing a portion of the frontage
road, which has a Scenic Preservation Overlay. He also resented the
12-foot setbacks on Ocotillo Drive. He said the Indio Mathis Brothers
customer warehouse is about the height that will be experienced on Ocotillo
Drive, and people walking on the west side of the street will have the same
experience he had when looking up at a massive structure. He said the
parkway can be hidden with landscaping, but the height will be intimidating.
Also, the elevations on the frontage road have been softened with a lot of
trees, which would be like driving through the Oregon Woods, but he didn't
believe that would be the finished look. He reiterated the project was too
large in human scale.
Mayor Pro Tem Spiegel asked the developer if he wished to address the City
Council before closing the public hearing.
MR. JOBLON responding to concerns raised, first addressed the non -binding
Letter of Intent, stating Rosewood has a policy of not negotiating definitive
documents with any developer that didn't have the construction loan, but
because they liked this project, they are willing to enter into a Letter of Intent
pre -entitlements. Therefore, the plan is to commence negotiations with
Rosewood once entitlements are achieved. As to financing and when the
project will start, he said PDH Partners is a well -capitalized group with
tremendous institutional relationships and have completed projects that out
weigh the size of this project. For example, they just completed a $220
million project in Brooklyn, they managed The Cosmopolitan, which was a
44
MINUTES
REGULAR PALM DESERT CITY COUNCIL MEETING JULY 14, 2011
$4 Billion project, and he had numerous other examples. He said there are
two components to construction, equity and construction debt, and PDH
Partners is well funded. He said when the construction debt market returns,
which no one had the crystal ball for knowing when that will be, the goal is
to be fully prepared to move the project forward. He said statements made
about the Development Agreement and PDH Partners wanting to sell are
incorrect, because they have no intent to sell the property and have not
engaged with any brokers to sell. However, there are things out of one's
control that could prohibit development, whether it's personal, family, or the
market, and frankly one should have the right to exit an investment. He has
spent two years working with the City, but he and his partners have been on
this project for four years; therefore, significant money had already been
invested on this project. He said their intention is to build the project,
because they are passionate about it and see the benefits it will bring to the
community. With regards to Sandpiper, he said he went door to door and left
an information packet on every single door, which was a fact. He said
everyone from Circle 4 and back, who were in attendance at that meeting are
in full support of the project, along with many of the Sandpiper people who
are here today. He said Mr. Bagato has a photograph of him making a
presentation to 35 people at what was Tom and Pam Rasmussen's (sp?)
house. He said he reached out to the Sandpiper Community and has held
numerous meetings, and continues to want an open dialogue with them. In
response for a guarantee of a 5-star hotel, he said the Development
Agreement had language that stated they will provide a 500 square -foot
room, which is 50 square feet larger than the Ritz Carlton. Additionally, they
have agreed to spend at least $75,000 per door in Furniture, Fixtures &
Equipment (FF&E) beyond the hotel room and common area, which is well
above any 4-star hotel. By way of example, the Westin Hotel typically
spends $50,000 per door on their new ones. In response to the height, he
said the majority of the building is to Code, and the portion that are not, as
written today, is set back significantly. As illustrated in one of the renderings,
the most negligently impacted position, the four-story building is barely
visible. He said the visual simulations show that the additional lines can
barely be seen, which was all part of the planning. He said someone made
the comment about a golf course and so forth, but currently there are 125
golf courses in the Desert. When they first looked at this project, which was
about five years ago, they initially thought the hotel had to have a golf
course. However, economically, not only did one have to find 180 acres for
a golf course, you also need $20 million to build it. Then one would need an
additional 50 to 60 acres for the residential to amortize the cost of the golf
course, and a hotel in a seasonal market that made enough money to
supplement the loss of the golf course. He was confident, from a financial
feasibility standpoint, a 5-star hotel will not be built with a golf course in the
Desert for a long time. He said today's new model is more urban, more
sustainable, and about using less land and really utilizing the space, yet this
project had 55% open space on the site. He said the team dug into this
project with regard to the feasibility to make sure its successful and made
45
MINUTES
REGULAR PALM DESERT CITY COUNCIL MEETING JULY 14, 2011
sense for a 5-star hotel anywhere in the Desert. Responding to comment
about notification to residents, he said the City required a 300-feet radius
notification, but they sent out a one -mile radius notification, sent out a mailer
to 3,000+ homes, did cold calling, and had people go door to door. He said
it was impossible to meet with everyone, but they did send out 10,000 pieces
of literature in mailings and did hold community meetings. He said one of
the speakers said that Sandpiper had no skin in the game for this project,
which he disagreed, because the whole fourth floor along Highway 74 was
removed for Sandpiper, which happened after the ARC meeting and the
meeting with the 35 people. He said the team drastically cut 30,000 square
feet and remolded the whole project to specifically address their concerns.
Additionally, he said there was no basis for the comment made that noise
would be more than 140 decibels. As stated in the Planning Commission
meeting and again today, he said they will comply with the comprehensive
Noise Ordinance for the City of Palm Desert. He said traffic was raised
numerous times by those opposing the project. However, he has worked
with the City and an independent third party contractor to complete the traffic
studies. He said the numbers show traffic is not going to be an issue,
because there is so much excess capacity on Highway 74, and with the way
they designed the hotel, they will be able to accommodate 400 vehicles per
hour; the maximum actually going in per hour is 60. He said the figures
show a spread and safe zone and that's without any specific management
plan where they can provide additional valet staff and use the secondary
entrance. Lastly, he said the ARC reviewed every single issue, which
included the Scenic Preservation Overlay District (SP). He said the Scenic
Preservation Overlay was a point that was brought up numerous times, but
the ARC finally thought it had been resolved. As for the story poles that
were requested, the team opted to do the Balloon Study. He said the
problem with story poles is that they're not an accurate representation,
because the building stepped back in so many places and areas that a bright
orange story pole wouldn't tell the true story at all. He said the visual
stimulations were done by a certified third party, it's accurate, and done by
GPS where they can certify the accuracy of it, which tells the real story. He
said a story pole didn't include landscaping, tones, colors, and texture of the
project, which played an important role. He offered to answer any questions.
Councilmember Harnik asked the developer to respond to the concerns
raised about the window reflections and heat in the afternoon.
MR. JOBLON explained the front glass wall was actually a corridor/hallway
and not rooms. The reason for it, is that it wouldn't be a 5-star experience
to face and watch Highway 74, so they had to single out that
corridor/hallway. He said the glass will be tinted and set back 12 feet from
the front of the building with a 12-foot overhang, and in the middle of that
overhang at six feet, will be shutters. He said at no point will the sun ever
reflect on that front glass, because by the time the sun went over the west
mountains, the sun couldn't reflect on that low of an angle. In response to
46
MINUTES
REGULAR PALM DESERT CITY COUNCIL MEETING JULY 14, 2011
comments about the noise coming from the hotel, he believed the glass wall,
the 12-foot setbacks, landscaping, and shutters served as buffers.
Additionally, noise was addressed as part of the CEQA document, which
came up as a nonissue.
With no further testimony offered, Mayor Pro Tem Spiegel closed the public hearing.
Councilmember Finerty stated it was important to continue this item to allow
Mayor Benson to vote. Secondly, she was the one that raised the issue
about story poles, because she felt they were instructive and have been
used throughout the City for many developments. She was advised that
Rancho Palos Verdes, where there is residential and commercial
construction and probably exceeding the height limit, are required to put up
poles with flags strung together to outline the building shape, and they call
it a silhouette, which remains through the whole planning process. She was
amazed at the e-mail response to her request for story poles knowing full the
City uses them, which stated "Overall we believe in balance when compared
with detailed project -based simulations as the Applicant has provided. The
contemplated story poles have a strong potential to actually misinform the
community and Councilmembers rather than provide meaningful information
about the project." She found it amazing, because the letters in opposition
tell basically the same story, as well as Mr. Armstrong's and Mr. Pitchford's
comments. She said Mr. Pitchford compared the height to the Mathis
Brothers building in Indio and many have said the building is too big in that
particular space. She said letters have encouraged the Council to reconsider
the size and site of the proposed development, because both the footprint
and height are well beyond the City's Building Code. The Council is urged
not to sacrifice one of Palm Desert's most beautiful and scenic
neighborhoods with a building so out of proportion. She said the City had
standards, which some referred to as the gold standard, because the Council
has held the line when it came to upholding its ordinances and not going
down a slippery slope. She said once a four-story building is allowed, there
will be more requests to come. She recently met with a developer who
already started to push the envelope on height with a development right
across the street from El Paseo. She didn't want to be like any other city or
Orange County, and the reason people came to Palm Desert was for its
weather, majestic views, beauty, and quality of life it offered. She said the
Council is being asked not to sacrifice the City's integrity for another
short-sighted development and to uphold the zoning and design standards
to protect long-term property values for its residents. She understood the
City needed jobs and the economy was in the tank, which she was
sympathetic to, but a project like this will dramatically impact Palm Desert
forever. She believed the Council should have a continuation of this item,
and in that time frame, there will be plenty of time to put up story poles to
create a silhouette like they did in Rancho Palos Verdes. She said the story
poles will allow people to see what 60 feet really look like with the
understanding that part of the building will be four stories and there is a slope
47
MINUTES
REGULAR PALM DESERT CITY COUNCIL MEETING JULY 14, 2011
on Highway 74. She couldn't understand why there was such resistance,
and when people preferred simulation to the actual thing, which sent the
wrong message to her as a Councilmember. She's never met with a
developer who had refused or not wanted to put up story poles. She also
had a strong concern for the financing of this project as mentioned by
Mr. Parkin that it could take ten years to start the project. She said some say
there is financing, but she questioned it, because not many hotels are being
built. She said the Council had been looking out for a hotel for Desert Willow
for years, but hadn't found one yet. The major reason for it had to do with
lack of financing, which is why the City recently ended up with timeshares at
the Westin. She reiterated her preference was to continue this item to allow
the Mayor to vote, because it was crucial to have all five Councilmembers
present for a decision of this magnitude, and during that time, take
advantage to allow the story poles to be put up.
Councilman Kroonen stated he was in favor of the notion/concept of delaying
any action until there was full participation by all members of the Council. He
said he heard a great deal of information this evening, but had come to no
conclusion until he's had time to review his notes, think through the whole
project, and added that he was not in any way prepared to make any
decisions this evening.
Councilmember Harnik stated she viewed the continuation of this item
differently and urged the Council to continue until the next City Council
meeting. She said this was a huge project, and this was a tourist town,
which had been built on tourist dollars, sales tax, and Transient Occupancy
Tax (T.O.T.). She said the late Councilman Kelly used to say "We can go
forward or back, but we couldn't stay in the same place." Therefore, she
believed the Council needed to look at this project long and hard, figure out
where this City was going, and how it was going to accomplish it. She said
the level of services the City currently had, that everyone appreciated and
enjoyed, was not sustainable with the current level of revenue. She said the
Council needed to review this closely to make sure it was making the right
decision, and if changes need to be made, it will do so. She reiterated it was
her wish to continue this item to the next City Council meeting.
Mayor Pro Tem Spiegel stated that when he moved here in the early 1980's,
there was a hotel at that location, which had a lounge with a piano player
called Baby Buddha. He said the piano player was very good and so was
the food, but the hotel didn't make it and the building was torn down. Then
La Peon Restaurant came along, they had a fire, the restaurant was rebuilt,
then the owners left and the building was torn down. He said those owners
are now on El Paseo, which he hoped they do well there. His point is that
something will happen on that vacant lot. He said for the City to have an
empty lot of that size, on Highway 74 and next to El Paseo, didn't make any
sense. He wasn't going to decide this evening whether this hotel was the
48
MINUTES
REGULAR PALM DESERT CITY COUNCIL MEETING JULY 14, 2011
right thing, because this item was going to be continued in order to get Mayor
Benson's input and thoughts.
Mr. Erwin asked Mayor Pro Tem Spiegel to reopen the public hearing if it
was the intent of the City Council to continue this item.
Mayor Pro Tem Spiegel re -opened the public hearing.
Councilmember Finerty moved to, by Minute Motion, continue this item until Mayor
Benson returned and for story poles to be installed with the silhouette effect. Motion died
for lack of a second.
Councilmember Harnik said businesses that came to Palm Desert, to
conduct business and want to partner with the City, depend on the Council
to act in a certain fashion. She said businesses need to depend on
something and the Council couldn't keep stringing them along whether the
vote winds up being pro or a con, because they are business people, time
is money, and things should be kept moving. Therefore, this matter should
be taken to the next meeting, which is August 25, 2011.
Councilman Kroonen stated his original comment was to delay action until
such time that Mayor Benson will return, because he thought it was
inappropriate to take action of this magnitude without the full participation of
all members of the Council.
Councilmember Harnik moved to, by Minute Motion, continue the public hearing to
the meeting of August 25, 2011. Motion was seconded by Spiegel.
Councilmember Finerty asked if the motion maker was amenable to including
the installation of story poles to her motion, since this project required a huge
decision of such magnitude, which may negatively or positively impact the
community.
Councilmember Harnik said that was not her motion.
Councilman Kroonen offered an amendment to the motion in sensitivity to
Councilmember Finerty's concern with regard to the story poles, for staff to
explore the prospect of story poles, the pros and cons, and the ability or
inability to do it.
Councilmember Finerty stated the City's had story poles for every other
project and couldn't understand the resistance.
Mayor Pro Tem Spiegel stated a Balloon Study was done for this project.
Councilmember Finerty said she didn't see the Balloon Study and would like
to see the silhouette effect for a project of this magnitude, which she
49
MINUTES
REGULAR PALM DESERT CITY COUNCIL MEETING JULY 14, 2011
believed would be instructive. She didn't want to end up with another
Hagadone house.
Mayor Pro Tem Spiegel noted that balloons were not used with the
Hagadone house, but understood where she was coming from.
Mr. Bagato offered clarification that in most cases balloons had been used
for hotels, because story poles didn't go that high. She said one developer
was able to do it for a 50-foot tall building, but it took telephone poles and
had to delay approval, which was for the Westin. He said the City Council
packet included photographs of the Balloon Study, which he could also
provide in color.
Councilmember Finerty stated there was plenty of time now to get telephone
poles.
Mr. Bagato agreed to look into it and explore it.
Councilman Kroonen said he had offered an amendment to ask staff to look
into the possibility of getting story poles.
Mayor Pro Tem Spiegel noted staff had already agreed to do so.
Councilman Kroonen asked if the motion included his amendment.
Mr. Bagato stated staff can explore the options for story poles, and the
findings can be relayed to the City Manager and communicated to the City
Council via e-mail. He said staff preferred to continue this item to the
meeting of August 25 because it wouldn't require the City to re -advertise the
public hearing. He said it also provided the public specific dates for people
to show up, and if Mayor Benson couldn't attend for some reason, the item
could be continued to September. He said staff can be in communication
about the story poles in between.
Councilmember Harnik asked if that meant the Council would return on
August 25 for staff to report on whether it was yea/nay on the story poles.
Mr. Bagato explained staff will try to have the story poles up before the
August 25 meeting. He said if staff couldn't have the story poles installed,
it will be communicated to Council with the reasons why, but if the story poles
are installed, they will be available for viewing prior to the August 25 meeting.
Councilmember Harnik commented that staff already had something done
with balloons that showed the height.
Mr. Bagato agreed, stating staff did a Balloon Study that was included in
Council's Agenda packet, which was done as part of the Architectural
50
MINUTES
REGULAR PALM DESERT CITY COUNCIL MEETING JULY 14, 2011
Review. He said with wind conditions here, one couldn't get story poles up
that high safely and keep them up for long periods of time. He said beach
communities dealt with the Costal Commission that requires story pole
studies. However, here in the Desert, staff believes it's best to look at photo
simulations, in addition to the Balloon and Mapping studies. Therefore, staff
directed the developer to provide more detailed oriented contextual visual
drawings, which is more accurate from a professional standpoint. However,
he understood that people like to see the poles and balloons up in the air,
which staff had copies of from prior meetings to illustrate.
Councilmember Finerty asked about the height of The Holiday Inn.
Mr. Bagato responded a portion of The Holiday Inn building was four stories,
and the top portion was 52 feet high. Further responding, he said a Balloon
Study was used in that project where the balloons were attached to a rope
and someone was holding it on the ground, which was very similar to what
they did with this project. He said staff tied the rope to bricks and the
developer measured the setbacks, height, and put the balloons up.
Councilmember Finerty responded it was really hard to tell from that,
because when investigating, one would have to take the massing of the
building and have a pole in each corner, as well as one pole on the
downside, one at the three-story height, and one at the four-story height,
understanding all will be different taking into consideration the slope. She
said the City had always tried to show what the height would be and found
it amazing that there was such reluctancy here.
Mayor Pro Tem Spiegel responded the developer did show the heights with
the Balloon Study.
Mr. Bagato stated balloon studies have been used in most cases, because
it's difficult to get poles that are 50-60 feet tall. The only cases where they
used poles were for the Starwood project and at Stone Eagle for a 24-foot
housing project.
Councilmember Finerty asked staff to revisit what was done with Starwood
and Stone Eagle where story poles were required.
Councilmember Harnik stated she was looking at the representations
provided by the developer that were included in the City Council packet,
which she thought were state-of-the-art. She said they weren't balloons or
story poles, but state-of-the-art, accurate computer driven graphics, and
something that can be trusted. She reviewed them, because she is very
visually oriented and needs to see to comprehend, and they represent
exactly will be built. She wondered if a story pole would tell more than an
actual picture of the evidence itself.
51
MINUTES
REGULAR PALM DESERT CITY COUNCIL MEETING JULY 14, 2011
Councilmember Finerty said she wanted story poles, because they had
served her well over the years when she served on the Planning Commission
and on the City Council.
Councilmember Harnik stated her motion stood, which was to continue this
item to the meeting of August 25.
Mayor Pro Tem Spiegel called for the vote, and the motion carried on a 3-1 vote,
with Finerty voting NO and Benson ABSENT.
With City Council concurrence, a recess was observed from 7:10 p.m. to
7:47 p.m.
D. REQUEST FOR APPROVAL OF THE 2011 NEW YEAR'S EVE
"ROCK 'N' ROLL" HALF MARATHON AND SPONSORSHIP IN AN
AMOUNT NOT TO EXCEED $54,000 FOR DIRECTLY RELATED POLICE
SERVICES FOR THE EVENT (The Competitor Group, Applicant).
Ms. Riddle stated this event was a little different in that it combined music
with sports to create a unique appeal for participants. The sponsor has a
great reputation and history of planning and producing these large scale
events within communities such as San Diego, Los Angeles, Phoenix, etc.,
with participation of 20,000+ runners; this event is expected to attract 7,500
to 9,500 runners. The event is scheduled for Saturday, December 31, 2011,
with the Marathon starting at the Indian Wells Tennis Gardens at 10:00 a.m.
and ending at approximately 2:00 p.m., with post activities concluding at
3:00 p.m. at the Tennis Gardens. Responding to question, she said the run
starts at 10:00 a.m., but actual road closures will begin at 9:00 a.m. She said
the Applicant is requesting a $54,000 sponsorship for police services, which
staff is asking that it be paid directly to the Police Department for services
rendered; if actual costs are less, then that's what will be paid. The Applicant
entered into an agreement with the Marriott Desert Springs as one of the
host headquarters hotels along with the Hyatt and Esmeralda in Indian
Wells. As part of the Traffic Plan, staff is asking the City Council to add to the
recommendation that an approved Traffic Control Plan is conditioned. Staff
is working with The Competitor Group and Police Department to provide for
traffic control that allows an ingress/egress for residents within the route to
minimize impact to the community. She said traffic will be allowed through
by Police Officers stationed at designated intersections. The Competitor
Group has a comprehensive Community Impact and Public Relations
Outreach Program, and once the event is approved, the City will include
articles of the event in the Bright Side, City website, and provide press
releases. The Competitor Group will put out door hangers or brochures on
each of the residences within the route area to inform them about the event,
route, road closures, and options available to them, which is part of the
recommendation. She said the event includes ten bands, and their locations
are indicated in the map that was provided as part of the staff report. Staff
52
MINUTES
REGULAR PALM DESERT CITY COUNCIL MEETING JULY 14, 2011
reviewed the locations and will continue to work with the Applicant to ensure
that the types of bands selected are appropriate for the neighborhood.
Councilmember Finerty stated that based on letters received, there are a
number of homeowners that are concerned about being land locked on such
an important day where they need to be running errands. However, she
heard staff mentioned they want to condition the event with an approved
Traffic Control Plan for ingress/egress where traffic will be controlled by
officers to avoid having residents landlocked.
Ms. Riddle clarified that access to and from will be provided once the
closures are in place, but once the run starts, Police Officers will allow
vehicular traffic through when there are gaps between runners and they feel
it is safe.
Councilmember Finerty asked how long will a particular neighborhood, like
Venezia who is really opposed and has 94 homes, be impacted.
Ms. Riddle deferred the question to the Applicant.
Mayor Pro Tem Spiegel declared the public hearing open and invited anyone who
wished to come forward to speak on the matter to do so at this time.
MR. ALAN CULPEPPER, Director of Operations for The Competitor Group,
said he handled the fun stuff, the knots and bolts of making this event
happen, and played an integral part on the actual course development. He
invited his colleague Dana Allen to first provide the Council with a bit of
background information on The Competitor Group.
MS. DANA ALLEN stated she was with The Competitor Group and is joined
by her colleagues Alan Culpepper and Bruce Walton. She said they are an
organization that has been putting on Rock 'n' Roll Marathons and other
such events. She said the very first Marathon they did was in 1998 in San
Diego, and for 2011, they will be putting on 19 Rock 'n' Roll Marathons
around the country. The Competitor Group's office is based in San Diego,
it has 230 employees working on events full time, it has four magazines that
are published on a monthly basis, and a digital website (www.
Comoetitor.com) that promotes the sports of running, cycling, and triathlon.
This event came about because they believed Palm Desert was a fantastic
destination where people would want to travel to complete. She said runners
are affluent individuals who are fitness enthused, enjoy traveling, and while
traveling they like to compete in events; they like to call them "running
tourists." The benefits of bringing an event like this to Palm Desert meant it
will attract travelers for long weekends, participate in the event, spend money
in hotels, restaurant, and shops, which will leave a great economic impact.
She said Palm Desert was a destination that runners will find attractive, and
because they have a data base of more than 500,000 runners, they have the
53
MINUTES
REGULAR PALM DESERT CITY COUNCIL MEETING JULY 14, 2011
ability to market to them year-round and recommend that on New Year's Eve
they spend it in Palm Desert. She offered to answer any questions.
MR. CULPEPPER stated the traffic plan is ongoing, in that as of today, he
had another traffic meeting with police and traffic engineers to review all the
details in order to maximize access to residents, whether that meant two-way
traffic or an access route out. The goal for The Competitor Group would be
to communicate that information to the various neighborhoods through their
Community Outreach Program. In response to the Venezia neighborhood
in particular, runners will be going northbound in the north bound lanes. He
said Venezia has a fire exit on the north side on Hovley, which will be their
access route out to head east bound to Cook Street. Responding to
question, he said the only neighborhood where vehicles will be completely
locked in is located to the west of Portola Avenue between Magnesia Falls
and Fred Waring Drive for a period of one hour and 25 minutes. However,
those residents can park their vehicle across the street by Lincoln
Elementary School if they know they have an appointment or birthday party
to go to during that designated time. People will be able to walk across the
street, but not be able to drive a vehicle across the street. He said the traffic
plan will also include main metering points on Cook Street and north and
south bound at Fred Waring Drive. He said they will also increase access
lanes with traffic control equipment.
Councilmember Finerty stated she understood Venezia residents will be able
to exit at the fire gate on Hovley.
MR. CULPEPPER answered yes, stating on the west side of Portola Avenue,
a two-way traffic lane will be created and monitored by police from Hovley
Lane to Chaparral.
Councilmember Harnik stated she read the letter from the Dialysis Center
and asked if the Applicant was able to address their concerns.
MR. CULPEPPER responded it was all new to him, in terms of the feedback
from the residents, which is why they didn't like to promote events too far in
advance to the resident, because they want to make sure they are equipped
to answer all questions relating to the route, access routes, metering points,
and timing, which usually started 90 days out from the event. Once they have
a full-blown outreach program, they work through homeowners associations,
community groups, city meetings, and a distribution plan. They have found
the door hanger to be the most effective, but each city has its own ordinance
in terms of using door hangers. They usually send out direct mail based on
a one -mile radius off the entire route for notification. However, direct mail
tends to get lost and/or tossed if not seen. The key point is that they want
people to know about the event and communicate what is happening, and
they pride themselves on their Outreach Program, because most events
didn't do it, and if they did, it was limited. He said they have staff making sure
54
MINUTES
REGULAR PALM DESERT CITY COUNCIL MEETING JULY 14, 2011
churches, businesses, post offices, etc., knew what is happening and how
it will affect them during certain time frames.
Mayor Pro Tem Spiegel stated the City received quite a few letters, and he
asked staff to contact each one of them to inform them of exactly what is
happening, because people are assuming they won't be able to get out of
their neighborhood for the whole length of the event, which was incorrect.
MR. CULPEPPER agreed. He apologized for the outdated route included
in the Council's packet, because in working with police and traffic engineers,
they have come up with ways to switch sides of the roads to create two-way
access lanes for residents.
Mayor Pro Tem Spiegel asked the Applicant to meet with Ms. Riddle
regarding the route and access points, because she will be the one making
contact with all those residents who submitted letters.
MR. CULPEPPER offered to have his Community Relations Team start
communicating with residents. He understood that words like "land locking"
made people nervous, so he will make it clear to residents on the timing of
when they will be able to get in and out. However, the one neighborhood
that will be landlocked, will be informed it would only be for a short time
frame.
Councilmember Finerty noted the Dialysis Center indicated that their 32
patients arrive between 8:00 a.m. and 10:00 a.m. and then again between
11:00 a.m. and 1:00 p.m. She said the Center was looking to maintain
access to the clinic during those times.
MR. CULPEPPER said he will make sure to include them in their outreach
plan.
MR. BRUCE WALTON, Executive Director of Government Relations, stated
he was present to answer questions to support Dana and Alan and excited
about coming to Palm Desert.
MR. KEVIN GROCHAU, 75253 Santa Fe Trail, Waring Place, Palm Desert,
stated he received a notice in the mail and intended to write a letter, but
instead came here to learn more about the event. He participated in the
Tour de Palm Springs, which he enjoyed. He understood mitigation may be
in order, but the City of Palm Springs stopped traffic to make it happen in
their city, and it would be a good idea to have this event in Palm Desert.
With no further testimony offered, Mayor Pro Tem Spiegel closed the public hearing.
Councilman Kroonen moved to, by Minute Motion, approve: 1) The 2011
"Rock 'N' Roll" New Year's Eve Half Marathon scheduled for Saturday, December 31,
55
MINUTES
REGULAR PALM DESERT CITY COUNCIL MEETING JULY 14, 2011
2011, with the condition that a Traffic Control Plan is approved by City staff; 2) proposed
event route and road closures; 3) band placement; 4) waiver of Section 11.01.140 of the
Palm Desert Municipal Code - Amplified Sound; 5) waiver of Chapter 5.84 of the Palm
Desert Municipal Code - Distribution of Literature, Peddling, and Solicitation;
6) sponsorship of the event in an amount not to exceed $54,000 to be paid directly for
Police Services rendered and paid directly to the Police Department from Account
No. 110-4416-414-3062; 7) appropriation of funds in the amount of $54,000 from FY 2011-
2012 Unobligated General Fund Reserve to Account No. 110-4416-414-3062 for this
purpose. Motion was seconded by Spiegel and carried by a 4-0 vote, with Benson
ABSENT.
E. REQUEST FOR APPROVAL OF AMENDING TITLE 3, CHAPTER 3.46 OF
THE PALM DESERT MUNICIPAL CODE, UPDATING THE COACHELLA
VALLEY MULTIPLE SPECIES HABITAT CONSERVATION PLAN /
NATURAL COMMUNITY CONSERVATION PLAN, AND THE LOCAL
DEVELOPMENT MITIGATION FEE NEXUS STUDY DATED MAY 16, 2011,
AND ADOPTING THE LOCAL DEVELOPMENT MITIGATION FEE
SCHEDULE APPLICABLE TO NEW DEVELOPMENT WITHIN THE
CITY OF PALM DESERT.
Principal Planner Tony Bagato stated this was a Coachella Valley
Association of Governments (CVAG) related fees for the Multi -Species
Habitat Conservation Plan. He said there was a change because of the
Nexus Study and the language was changed due to issues with funding and
the recent downturn in the economy. Additionally, Eagle Mountain Landfill
will no longer be able to be used as a funding source. The change will cause
a minor adjustment to the current fee, and the new Ordinance will also allow
for exemptions. The City has been in discussions with Ponderosa Homes,
and it appears they will be exempt from this new Ordinance if they pull
permits after October when this is enacted. He noted the fee could go down
again by 8% when Desert Hot Springs negotiations are added to the
Conservation Plan, which will require to be adopted if added. Additionally,
if approved, the current fees for Commercial and Residential will be slightly
lowered and also allow for up to a 45-year land acquisition instead of a
30-year land acquisition. He noted Katie Barrows from CVAG was also
available to answer questions.
Mayor Pro Tem Spiegel declared the public hearing open and invited public
testimony on this matter. With no public testimony offered, he declared the public
hearing closed.
Councilmember Finerty moved to waive further reading and: 1) Adopt Resolution
No. 2011 - 73, adopting the findings and establishing the Mitigation Fee from the Nexus
Study for the Local Development Mitigation Fee in satisfaction of requirements of the
Mitigation Fee Act; 2) pass Ordinance No. 1226 to second reading, revising Chapter 3,
Section 3.46 of the Palm Desert Municipal Code for the Local Development Mitigation Fee.
Motion was seconded by Kroonen and carried by 4-0 vote, with Benson ABSENT.
56
MINUTES
REGULAR PALM DESERT CITY COUNCIL MEETING JULY 14, 2011
XVIII. REPORTS AND REMARKS
A. CITY MANAGER
1. City Manager Meeting Summaries for the Period of June 15 - July 5,
2011.
Rec: Receive and file.
With City Council concurrence, the City Manager's Meeting Summaries for
the period of June 15 - July 5, 2011, were received and filed.
2. Aquatic Center Usage Statistics
Mr. Wohlmuth said he'd provided City Councilmembers with a memo
on Aquatic Center usage statistics for the first 10 days of operation.
Subsequently, he'd received the next seven days' worth of numbers,
and on average the use is higher than the first 10 days — from
approximately 600 people/day to just over 650 people/day. In answer
to question about operation costs and revenues, given the usage
numbers, he believed the facility was on track or better.
3. "Rainbow" Water Feature - Civic Center Park
Mr. Wohlmuth said at the next Parks & Recreation Commission
Meeting on Tuesday, July 19, staff would be presenting a
recommendation to remove the "Rainbow" Water Feature in Civic
Center Park. He said now that the Aquatic Center was in full
operation, it was the preferred location for kids to get wet. Further, he
explained that the water meter serving the "Rainbow" Water Feature
has the highest usage of all in the City Park System, with over
$15,000/year spent on water there. Secondly, the unit has other
maintenance problems, including its on/off switch and the drywell
underneath it that captures all the water.
B. CITY ATTORNEY
None
57
MINUTES
REGULAR PALM DESERT CITY COUNCIL MEETING JULY 14, 2011
C. CITY CLERK
1. Request for Appointment of Voting Delegate and Alternate for the
2011 League of California Cities Annual Conference to be Held
September 21 - 23, San Francisco.
Councilman Kroonen moved to, by Minute Motion, appoint Councilmember
Jan C. Harnik as the Voting Delegate for the 2011 League of California Cities Annual
Conference. Motion was seconded by Spiegel and carried by a 4-0 vote, with Benson
ABSENT.
2. Announcement of City Council Study Session, Thursday, August 25,
2011, at 2:00 p.m.
Councilmembers noted the date and time of the upcoming Study
Session.
D. PUBLIC SAFETY
o Fire Department
None
o Police Department
None
E. MAYOR AND MEMBERS OF THE CITY COUNCIL
o City Council Requests for Action:
None
o City Council Consideration of Travel Reauests and Reports:
None
o City Council Committee Reports:
None
58
MINUTES
REGULAR PALM DESERT CITY COUNCIL MEETING JULY 14, 2011
o City Council Comments:
1. Funeral Service for Mrs. Betty Ford — Councilman Kroonen
reported that he was privileged to represent the City at the
funeral services for Mrs. Betty Ford on Tuesday this week at
St. Margaret's Episcopal Church. He said that it was a very
meaningful service, with an appropriate outpouring of support
from people throughout both the Coachella Valley and all over
the country.
2. California Joint Powers Insurance Authority Workshop —
Councilman Kroonen also commented that since the last
Council Meeting, he and Councilmember Harnik participated
in the CJPIA's Two-day Workshop. He said there was a lot of
good information provided, and he appreciated the opportunity
to attend. Councilmember Harnik agreed.
3. Marriott Desert Springs Resort— Mayor Pro Tem Spiegel noted
that he and Councilman Kroonen had lunch yesterday with
Manager of Marriott Desert Springs and reported that they'd be
opening a new restaurant this fall. It would be known as
"Fisherman's Wharf," operated by the same proprietors as the
Fisherman's Market establishment in Palm Desert. He added
that there was a lot of remodeling going on at the property, and
they were also getting new beds and drapes for the rooms.
o Suaaested Items for Future City Council Meetina Aaendas
None
XIX. ADJOURNMENT
On a motion by Finerty, second by Kroonen, and 4-0 vote of the City Council, with
Benson ABSENT, Mayor Pro Tem Spiegel adjourned the meeting at 8:23 p.m.
ATTEST:
RA HE LE D. KLASSE , CITY CLERK
CITY OF PALM DESERT, CALIFORNIA
___‘,72/-
ROBERTA. SPIEGEL', MA R PROTEM
59