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HomeMy WebLinkAbout2018-03-22MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING THURSDAY, MARCH 22, 2018 CIVIC CENTER COUNCIL CHAMBER 73510 FRED WARING DRIVE, PALM DESERT, CA 92260 I. CALL TO ORDER - 3:00 P.M. Mayor Jonathan convened the meeting at 3:01 p.m. II. ROLL CALL Present: Councilmember Jan C. Harnik Councilmember Kathleen Kelly Councilmember Gina Nestande Mayor Pro Tem Susan Marie Weber Mayor Sabby Jonathan Also Present: Lauri Aylaian, City Manager Robert W. Hargreaves, City Attorney Rachelle D. Klassen, City Clerk Lori Carney, Director of Administrative Services Russell Grance, Director of Building & Safety Ryan Stendell, Director of Community Development Martin Alvarez, Director of Economic Development Janet M. Moore, Director of Finance/City Treasurer Tim Jonasson, Interim Director of Public Works Frankie Riddle, Director of Special Programs Bo Chen, City Engineer Stephen Y. Aryan, Risk Manager Lt. Matt Martello, Asst. Chief, Palm Desert Police/Riverside Co. Sheriffs Dept. Grace L. Rocha, Deputy City Clerk III. ORAL COMMUNICATIONS - A (CLOSED SESSION ITEMS) None MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING MARCH 22, 2018 IV. ADJOURN TO CLOSED SESSION Reauest for Closed Session: A. Conference with Legal Counsel regarding significant exposure to litigation pursuant to Government Code Section 54956.9(d)(2): Number of potential cases: 2 With City Council concurrence, Mayor Jonathan adjourned the meeting to Closed Session of the City Council at 3:02 p.m. He reconvened the meeting at 4:04 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 - Palm Desert Youth Committee Member Ismael Haile VII. INVOCATION - Councilmember Jan C. Harnik VIII. AWARDS AND PRESENTATIONS A. PRESENTATION OF UPDATE ON PALM DESERT YOUTH COMMITTEE ACTIVITIES BY MEMBER ISMAEL HAILE. Mr. Haile stated he was a junior at Palm Desert High School and serves on the Youth Committee. Yesterday they held the Anti -bullying Workshop where they did activities with the children attending the After School Program at the Desert Recreation Center. Also, on March 14, they were at the Joslyn Center for the Youth Technology Workshop, stating that members helped seniors with their phones, laptops, and other devices. The Committee is also in the mist of developing an Air -quality Program. Mayor Jonathan thanked Mr. Haile and the Committee because he loved the inter -generational interaction. The kids at the Desert Recreation Center look up to the Committee members because that's what they want to be doing one day. Additionally, the fact that youth is going to the Joslyn Center to assist seniors with their smart devices is very special. He asked that Mr. Haile convey the City's thanks and appreciation to the Youth Committee. 2 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING MARCH 22, 2018 B. PRESENTATION OF PROCLAMATION DECLARING APRIL 2018 AS "DMV - DONATE LIFE CALIFORNIA MONTH" IN THE CITY OF PALM DESERT. On behalf of the City Council, Mayor Jonathan presented the proclamation to Mr. Miles Kay, Ms. Marisol Mendoza, and Ms. Alma Rodriguez. Mr. Kay thanked the City Council and staff for the invitation to pick up this very important proclamation, and it's done in all cities throughout California. He is the ambassador for One Legacy, which is an organ procurement organization, and also with Donate Life California. He said Ms. Mendoza is the manager at the Palm Desert Department of Motor Vehicle (DMV), and Ms. Rodriguez is one of her assistants. He said it was important to know about them because they and their staff are the troops in the trenches promoting organ donation in the DMV on a daily basis; it's where 90% of the people sign up. He went on to share that his wife Sylvia Kay was a two-time donated organ recipient, but unfortunately, she passed away this past January after 64+ years of marriage. She was a few days short of her 84th birthday. The important message here is that when she passed away from colon cancer, which they weren't aware she had, the two organs that were donated to her were still functioning. He added that those two donated organs gave him and his wife 16 more years together. In conclusion, he stated that everyone had the opportunity to give the greatest gift of all and that is the gift of life. He noted information on how to go about signing up to be an organ, eye, and tissue donor would be available by the entry doors to the Council Chamber. C. PRESENTATION OF PROCLAMATION DECLARING MAY 2018 AS "MENTAL HEALTH MONTH" IN THE CITY OF PALM DESERT. On behalf of the City Council, Mayor Jonathan presented the proclamation to Ms. Carole Schaudt on behalf of the Riverside County Desert Behavioral Health Advisory Board. Ms. Schaudt stated the County holds their Arts Festival every year, where individuals showcase their Poetry and Art as a way of letting things out emotionally. They call the event the John J. Benoit Behavior Health Arts Festival. It's at the Taj Mahal Building in Indio at the Riverside County Fairgrounds. The event is on May 8, 2018, from 11:00 a.m. to 3:00 p.m. Additionally, this Saturday, March 24, they are having the Suicide Awareness March at the Palm Desert Civic Center Park. Information will be provided on how to recognize the signs of someone contemplating suicide. 3 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING MARCH 22, 2018 IX. ORAL COMMUNICATIONS - B MR. ERIC RODRIGUEZ, Vermeer Way, Palm Desert, approached the City Council to complain about loud music coming from his neighbor's house at The Gallery Development. He has tried dealing with the neighbor directly, but to no avail. One afternoon the husband threatened him, and he called the Sheriffs Department. Unfortunately, they were told by the officer that prior to 10:00 p.m., people are free to play their music as loud as they want. However, he checked Palm Desert Municipal Code Section 9.24.030 - Sound Level Limits and learned that the cap is 55 decibels between 7:00 a.m. and 10:00 p.m., and 45 decibels between 10:00 p.m. and 7:00 a.m. in a residential area. He noted a retired police officer engages the sound with a meter, seeking to build a case of four or five instances that can be built into an order to cease the music. He questioned why the sound level limits couldn't just be enforced, and if it's not feasible for sheriffs or deputies to be trained on decibel meters, perhaps the retired police officer could take care of that part and ask deputies to come over for immediate enforcement. In his view, the City's hard line on short-term rentals and graffiti should be extended to loud music. Mayor Jonathan stated staff will followup with Mr. Rodriguez on this issue. MS. LESLIE MILLER, Goldflower Street, Palm Desert, stated she believed there was confusion among the Councilmembers as to the short-term rentals and the economic impact on the City. She attended the meetings and recalled that both sides were claiming negative impacts whether the City has them or not. Since that time, The Desert Sun has come out with an analysis that indicates a big impact if the City went forward with the elimination of the short-term rentals. She was aware of a new proposal for discussion with some sort of amelioration for those who will suffer an economic impact if their homes are eliminated from the program. Additionally, the new tax bill passed by the United States Congress will have an impact as well. She urged the City Council to provide some sort of comprehensive report and/or official position on it. Her position is that the impacts will be negative. Again, she asked the City Council to consider it, because it will have long-term effects. 4 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING MARCH 22, 2018 X. MAYOR AND COUNCILMEMBER REPORTS & REMARKS TO THE COMMUNITY A. Councilmember Jan C. Harnik Committee Reports and General Comments. 1. Greater Palm Sprinas Convention & Visitors Bureau (CVB) Meeting - reported that an important part of tourism and visitor market is business travel. They are now discussing working with the East Valley Coalition and Coachella Valley Economic Partnership for marketing efforts as the CVB goes out to market. They are also considering marketing Palm Desert as a business -friendly destination. 2. Coachella Valley Economic Partnership (CVEP) - the Foreign Trade Zone has been activated in Palm Springs at the accelerated campus, which will be a big asset. 3. Loma Linda University Children's Health. Indio - she attended the ribbon -cutting event. It's nice to know that in downtown Indio there is a great facility for children's health. 4. Senior Inspiration Awards - she invited everyone to help celebrate seniors who give so much volunteer time to the community. The event will be held at the J.W. Marriott on April 20, 2018. 5. Buildina Industry Association Mayor Panel - she shared that Mayor Jonathan was on the panel and did a fine job of representing the City. B. Councilmember Kathleen Kelly Committee Reports and General Comments. None C. Councilmember Gina Nestande Committee Reports and General Comments. None D. Mayor Pro Tem Susan Marie Weber Meeting Summaries Report for the Period of February 26 - March 11, 2018. With City Council concurrence, the Meeting Summaries Report was received and filed. 5 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING MARCH 22, 2018 E. Mayor Sabbv Jonathan Committee Reports and General Comments. 1. Sister Cities Foundation Luncheon - he thanked the Foundation for honoring one of the City's icons, Mary Helen Kelly. He said it was wonderful to see people in the community that has contributed in the past, in the present, and in the future, and he couldn't think of anyone more deserving of the honor than Mrs. Kelly. 2. Life Stream 35th Annual Gift of Life Tribute and Award Ceremony - he reported that La Quinta Mayor Linda Evans, City of Indio Councilmember Elaine Holmes, and City of Palm Desert Councilmember Jan Harnik were all honored at the ceremony. 3. Community Choice Aaareaation (CCA' - he explained that when the City joined the Desert Community Energy (DCE), one of the requirements as part of Council's approval, is that it periodically reports out to Council at key points in the progression. He provided a handout to the City Clerk to have on record, but some of the more relevant items are as follows: On March 19, 2018, meeting, the Desert Community Energy Board approved the launch of Desert Community Energy's community Choice Aggregation Program for the summer of 2018. At this time, starting with August 1, that's when Palm Desert residents will have the opportunity to be a part of the DCE and enjoy modestly lower rates and the opportunity to choose the level of green energy that they use. The DCE Board supported moving forward and offering the community savings on their summer electric bill as soon as possible. DCE staff will work with each city to offer outreach tailored to each participating community, to help residents and businesses learn more about Community Choice Energy. All Southern California Edison (SCE) customers in Palm Desert will receive two notices before DCE starts providing electricity, and another two notices after the launch, offering residents a choice to stay with DCE or "opt out" and stay with SCE. The DCE Board also approved two product choices for customers. The basic choice will offer electricity priced modestly below SCE, with higher renewable content and more carbon -free energy from sources that produce fewer greenhouse gases. The second choice will offer a 100% carbon -free electricity for customers who choose it. The Board further specified that carbon -free electricity will not include nuclear power or any power from new large hydro facilities, which are generally perceived to be non -environmentally friendly. 6 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING MARCH 22, 2018 Councilmember Kelly added that when joining the Joint Powers Authority (JPA) in establishing the DCE, she was very cautious, and frankly hesitant, because there were quite a few unknowns at the time affecting both the viability of this enterprise and its capacity to deliver energy appreciably more green than SCE. She had the opportunity and connection to speak extensively with the consultant that the JPA is using to look at their math. Thankfully, those unknowns have been substantially settled in a way that assures Palm Desert of the viability of this enterprise. More important, it's realistic to conclude that it can give residents options, which is appreciably more green. Therefore, her concerns have been satisfied, and if anyone is interesting in knowing the details, she and Mayor Jonathan would be pleased to meet with you. She said Mayor Jonathan was involved with this matter in the early stages in trying to make this possible, and she was glad he got things going. Councilmember Nestande thanked Mayor Jonathan for all his hard work; however, she regrettably still had strong reservations about the CCA. At some point she would like to hold a Study Session to hear from Southern California Edison to hear their side of the issue. She was informed they currently offered 50% or 100% renewable energy. However, she hasn't verified the information. Mayor Jonathan replied Councilmember Nestande could request for any item to be added to the agenda. However, Palm Desert is already part of the JPA, and it would require for the City to withdraw from it to change course. He went on to thank Councilmember Kelly who is the alternate on the DCE, because she is an objective and willing skeptic. He said she spent countless hours getting into the weeds of the issue, and her level of detail came down to her finding a $.20 cent discrepancy in a staff report. He said it gave him great comfort to have a second set of eyes reviewing the details and everyone benefitted from it. F City Council Requests for Action. None G. City Council Consideration of Travel Requests/Reports. None 7 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING MARCH 22, 2018 XI. STAFF REPORTS AND REMARKS A. City Manager 1. City Manager's Meeting Summaries Report for the Period of February 26 - March 9, 2018. With City Council concurrence, the City Manager's Meeting Summaries Report was received and filed. 2. Director of Special Programs Frankie Riddle - thanked and congratulated Ms. Riddle on almost completing 34 years of service to the City, stating she is the second longest standing employee in the history of Palm Desert. The City of Palm Desert is the only employer she has ever known. She started as a part-time clerical aide on a temporary basis, then as a clerk's stenographer, administrative secretary, went back to school to obtain her degree and progressed to her current position as Director of Special Programs. She handles very esoteric fields such as Community Development Block Grant Funding (CDBG), Rent Control, Franchise Agreements, Recycling, Citizens on Patrol Program, etc. Director of Administrative Services Lori Carney presented an engraved art piece to Ms. Riddle as a token of appreciation. Ms. Riddle said it's been a pleasure working in the City, meeting new people, working with the new Council and new City Manager, adding she will miss everyone, but she was looking forward to retirement. Mayor Jonathan shared he was a little panicked about her departure, because they have worked together on several issues that she has carried him through, and he didn't know how the City will manage to find a replacement for all the wealth of knowledge she brought to the City. He offered that she will be missed, but serving in the City's committees/commissions was a way to stay involved. B. City Attorney None C. City Clerk None 8 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING MARCH 22, 2018 D. Public Safety 1. Fire Department None 2. Police Department None XII. CONSENT CALENDAR A. MINUTES of the Regular City Council Meeting of March 8, 2018. Rec: Approve as presented. B. CLAIMS AND DEMANDS AGAINST THE CITY TREASURY - Warrants Dated 2/9/2018, 2/16/2018, 2/23/2018, 2/28/2018, and 3/9/2018. Rec: Approve as presented. C. CLAIMS AND DEMANDS AGAINST THE CITY/HOUSING TREASURIES - Warrant Dated 3/2/2018 (Joint Consideration with the Palm Desert Housing Authority). Rec: Approve as presented. D. APPLICATION FOR ALCOHOLIC BEVERAGE LICENSE by Musashi Japanese Restaurant, 72785 Highway 111, Suite B4, Palm Desert. Rec: Receive and file. E. REQUEST FOR DECLARATION of Surplus Property and Authorization for Disposal — Miscellaneous Chairs from Various City Hall Conference Rooms. Rec: By Minute Motion, declare subject chairs as surplus property and authorize disposal as proposed. F. RESOLUTION NO. 2018 - 15 - A Resolution of the City Council of the City of Palm Desert, California, Setting Forth Its Findings and Authorizing the Destruction of Paper Records that Have Been Digitally Imaged from the Department of Code Compliance, to Rely on the Electronic Record as the Official Record — Closed Cases from 2014 (Exhibit "A"). Rec: Waive further reading and adopt. 9 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING MARCH 22, 2018 G. REQUEST FOR AWARD OF CONTRACT to Floor Tech America, Inc., in the Amount of $69,599 for City Hall North Wing Carpet Replacement (Contract No. C36550, Project No. 779-18). Rec: By Minute Motion, authorize: 1) Award of subject contract in the amount of $69,599 to Floor Tech America, Inc., Pomona, California, for the City Hall North Wing Carpet Replacement Project; 2) Finance Director to set aside an additional 10% contingency in the amount of $6,960 for unforeseen expenses; 3) City Manager to use said contingency by means of a Change Order, should staff recommend it; 4) City Manager to execute subject agreement and all related documents, including Change Orders; 5) Mayor to execute the Notice of Completion upon satisfactory completion of the project — if above actions are approved, funds will be available in Account No. 4504161-4400100 - Building Maintenance. H. REQUEST FOR APPROVAL of Contract with Michael Baker International, Inc., for On -Call City Surveyor Services for a Term of One Year (Contract No. C36800). Rec: By Minute Motion: 1) Approve subject contract for On -Call City Surveyor Services to Michael Baker International, Inc., Palm Desert, California, for a term of one year in an amount not to exceed $100,000; 2) authorize Mayor to execute said contract — funds are available in the Public Works Administration Account. I. REQUEST FOR ACCEPTANCE OF WORK for Contract No. C36350 — 2017 Citywide Striping Project (Project No. 564-17) (Cal Stripe, Inc., Colton, CA). Rec: By Minute Motion, accept the work as complete and authorize the City Clerk to file a Notice of Completion for subject project. J REQUEST FOR APPROVAL of Palm Desert's 2018 Spring Concert Series. Rec: By Minute Motion, authorize/approve: 1) City Manager to finalize the 2018 Spring Concert Series lineup; 2) City Manager to execute all contracts associated with the series (Contract Nos. C36810A-?); 3) expenditures in an amount not to exceed $45,000 for production of the series — funds are available in Account Nos. 1104416-4306102 and 1104416-4306101. Upon motion by Harnik, second by Weber, and 5-0 vote of the City Council (AYES: Harnik, Kelly, Nestande, Weber, and Jonathan; NOES: None), the Consent Calendar was approved as presented 10 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING MARCH 22, 2018 XIII. CONSENT ITEMS HELD OVER None XIV. RESOLUTIONS None XV. ORDINANCES A. For Introduction: 1. ORDINANCE NO. 1336 - AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, ADDING CHAPTER 3.28.270 TO THE PALM DESERT MUNICIPAL CODE, RELATING TO THE ESTABLISHMENT OF HOTEL OPERATIONS INCENTIVE PROGRAM. Mr. Alvarez requested a continuance of the matter to the meeting of April 12, stating staff needed more time to evaluate new information received. Also, staff is working with existing hoteliers to get feedback and input. MR. ROBERT LEACH, Hotel Paseo, declined to speak at this time since Council was considering a continuance. Councilmember Harnik said she appreciated staff will be seeking input from hoteliers and others who have done similar projects. Councilmember Kelly moved to, by Minute Motion, continue the item to the meeting of April 12, 2018. Motion was seconded by Harnik and carried by a 5-0 vote (AYES: Harnik, Kelly, Nestande, Weber, and Jonathan; NOES: None)_ B. For Adoption: None 11 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING MARCH 22, 2018 XVI. NEW BUSINESS A. REQUEST FOR AWARD OF CONTRACT FOR THE 2018 CITYWIDE PALM TREE PRUNING PROJECT TO RELIABLE TREE WORKS, INC., IN THE TOTAL AMOUNT OF BASE BID OF $129,185 (CONTRACT NO. C36720, PROJECT NO. 931-18) (JOINT CONSIDERATION WITH THE PALM DESERT HOUSING AUTHORITY). Landscape Supervisor Randy Chavez stated this project is to perform the yearly pruning of City maintained palm trees. Councilmember/Member Harnik moved to, by Minute Motion, authorize: 1) Award of subject contract for the 2018 Citywide Palm Tree Pruning Project to Reliable Tree Works, Inc., Coachella, California, in total amount of the base bid of $129,185 (City - $116,060.00 and Housing Authority - $13,125.00); 2) Director of Finance to set aside an additional 20% contingency in the total amount of $25,837 (City - $23,212.00 an d Housing Authority - $2,625.00); 3) City Manager/Executive Director, or designee, to review and approve written requests for use of the contingency amount of $25,837 for unforeseen conditions; 4) Mayor/Chairman to execute the agreement; 5) Mayor to execute the Notice of Completion upon satisfactory completion of the project — funds are available for the portion of the contract relative to City and Assessment Districts in Parks and Recreation Account Nos. 1104610-4332001, 1104611-4332001, 1104610-4337100; and in Repair/Maintenance Medians Account No. 1104614-4337001; Desert Willow Account No. 4414195-4332000; and Assessment District Fund 200 Accounts; for the Housing Authority, funds are set aside in the 2017-2018 and proposed 2018- 2019 Housing Authority Operating Budgets for this purpose. Motion was seconded by Nestande and carried by a 5-0 vote (AYES: Harnik, Kelly, Nestande, Weber, and Jonathan; NOES: None). B. REQUEST FOR AWARD OF CONTRACT FOR PROFESSIONAL ENGINEERING, LANDSCAPE ARCHITECTURE AND DESIGN SERVICES FOR THE SAN PABLO AVENUE CORRIDOR IMPROVEMENTS PROJECT TO DOKKEN ENGINEERING, INC., IN AN AMOUNT NOT TO EXCEED $891,155 (CONTRACT NO. C35520B, PROJECT NO. 691-16). Councilmember Kelly asked if Council will have an opportunity to give final approval to the design before construction. Senior Engineer Joel Montalvo replied the design would be brought back to the City Council for permission to bid the project. Ms. Aylaian concurred, stating its staff's commitment to do so on this project. Mayor Jonathan offered that if it was important enough, rather than relying 12 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING MARCH 22, 2018 on what is traditionally done, the motion can specify that the final decision will be placed with the City Council. Councilmember Harnik said this project has been looked at for a long time, including holding a demonstration. However, it occurred to her this project has three roundabouts, and she has experience with them in that she can navigate them well. She approves the ones located on Magnesia Falls and the one by the YMCA and College of the Desert, but the one on San Gregonio concerned her, because this project is about creating a walkabout neighborhood, adding that roundabouts and slip lanes are not conducive for pedestrians or bicyclist. On one hand were saying we want a walkable neighborhood, and then with the roundabouts were talking about keeping traffic moving; she said there's no congruity to those two statements. Another issue is that she's trying to figure out what's broken or what is it that the City is trying to fix there, because there's a four-way stop at that location. She didn't believe switching out the four-way stop for a roundabout would solve a problem. If anything, you want to slow down traffic making it conducive to pedestrians and bicyclist. After reading about roundabouts in the staff report, it made less and less sense to have one at San Gregonio. Additionally, a roundabout is new construction, so the City could use those dollars in a better fashion. Mr. Montalvo offered that staff challenged each of the three firms that were interviewed by asking them to explain why a roundabout would work, and if they would find ways to make it more pedestrian oriented. The response was that they would look into it if they were the selected firm. Councilmember Kelly suggested making that a formal motion, because Councilmember Harnik's comments resonated with her. It made all the sense in the world to use a roundabout to replace a thoroughfare, but when you replace a four-way stop, it clearly speeds traffic. She suggested asking for two design alternatives, one with a roundabout and one without, because without the input from the design team, it may be premature for Council to make a definitive decision. Mayor Pro Tem Weber stated that by using the premise for the San Gregonio roundabout, she believed the same could be said for the one by COD, stating many times people are held up waiting for students to cross that street, adding people are parking over by the Community Center and walking over to COD. When coming up with the design for the roundabout, she asked how would the firm determine the traffic flow. Mr. Montalvo explained that generally traffic counts are taken and staff understands the traffic volume in that area. 13 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING MARCH 22, 2018 Ms. Aylaian pointed out this was an award of a design contract to a firm. If Council is interested in seeing two different design alternatives, it will impact the cost of the contract and the recommended award. She suggested that rather than designing two alternatives, Council can award the contract as presented and ask that they prepare a discussion or narrative on the subject so that Council can confirm direction. Councilmember Harnik asked if the City Manager was suggesting a study session or whatever the case may be where the Council can talk about it and give definitive direction. Ms. Aylaian answered yes. Mayor Jonathan concurred with Councilmember Harnik's concern, but his thought for that intersection would be something more creative such as a "Barnes dance" crosswalk system that lights up, etc., and really lets drivers know it's a pedestrian street. He believed there was opportunity to do something special here that wasn't necessarily a roundabout. Councilmember Harnik moved to, by Minute Motion, approve the recommendations as amended to include having the Consultant prepare a recommendation for City Council direction prior to proceeding with the design of any roundabouts. Motion was seconded by Kelly. Mayor Jonathan suggested modifying the motion in order to specify that the design will return to Council for final design approval. Councilmember Harnik amended the motion to: 1) Award subject contract for professional engineering, landscape architecture and design services for the San Pablo Avenue Corridor Improvements Project to Dokken Engineering, Inc., San Diego, California, in an amount not to exceed $891,155; 2) authorize Mayor to execute said contract — funds are available in Account No. 4514342-4400100 - SARDA Bond Project Funds; 3) Direct consultant to prepare a recommendation for City Council direction prior to preliminary design; 4) return to City Council for final design approval. Motion was seconded by Kelly and carried by a 5-0 vote (AYES: Harnik, Kelly, Nestande, Weber, and Jonathan; NOES: None). Mayor Jonathan remarked it was a momentous occasion, stating the City was moving forward with its vision. 14 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING MARCH 22, 2018 C. REQUEST FOR APPROVAL AND ADOPTION OF THE CITY OF PALM DESERT UTILITY UNDERGROUNDING MASTER PLAN (UUMP). Project Administrator Ryan Gayler said this item was for the approval of the Undergrounding Master Plan. This was an important milestone in the process of undergrounding utilities for the City of Palm Desert, and he thanked the ad hoc committee for getting to this point. A master plan is important in this instance, because it allows everyone to see how much overhead infrastructure is within the City. Penco Engineering created the Master Plan, and they performed a detailed survey of every pole and overhead line that exists within City limits. They also provided information related to the various methods to help fund the work and ways to cut cost. The consultant researched the methods and made recommendations on what will work best for the City, and the proposed Master Plan represents a new path in fulfilling City Council's goal of undergrounding utilities throughout the City. In addition to this Master Plan, the City has to have a strategy to detail the steps moving forward; therefore, staff is already working on developing an Implementation Plan to work not only on public projects along arterial and public property, but also gaging interest in undergrounding within neighborhoods. This implementation plan is one of the goals given to the City Manager by the City Council for 2018. Staff recommended approval of adopting the Palm Desert Utility Undergrounding Master Plan. Councilmember Kelly asked if this will be followed up with an implementation plan that will recommend how to make choices from among some of the strategies that the Master Plan identifies. Mr. Gayler answered yes. Councilmember Harnik called attention to Assessment District No. 21 on page 48 of the staff report, asking if Palm Desert Country Club (PDCC) was part of that assessment. Mr. Gayler replied it included the majority of Palm Desert Country Club, but it stops short on the west end, because that area has already been undergrounded. Mayor Jonathan pointed out that new construction mandates undergrounding of all utilities. Councilmember Kelly added that the staff report illustrates possible districts, but it was not establishing them, and today Council was receiving a Master Plan that illustrates possible districts. Mr. Gayler concurred. 15 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING MARCH 22, 2018 Mayor Jonathan thanked Mr. Gayler for jumping in and carrying the process through and to the committee for their work, stating some folks really invested their time and expertise, which was greatly appreciated. MR. ROLAND ALDEN, Candlewood Street, Palm Desert, stated the Penco Engineering Report was a fabulous document; it's a big step in the right direction. At the same time, however, it contains some questionable recommendations. For example, it prioritizes two projects as No. 1 and No. 2 priorities, and these two projects collectively would underground 12 utility poles on empty land where no one's life is in danger, which he thought was a problem. He also objected to Section 9 relating to the metric for measuring progress. The proposed metric is basically tracking activities and spending, and they are not real measurements of progress. Thanks to Penco Engineering everyone now knows exactly how many utility poles there are in the City and how many miles of wire are hanging in the air. The definition of progress is how fast its eliminating this infrastructure and driving all these numbers to zero. Unfortunately, that's easy to define, stating it's about 160 years given the current rate of progress. He said the City needed to use a metric that is numerical and holds the City accountable for real progress rather than documenting activity that may or may not be substantive. For most of the people in this room who ask "When will my street be undergrounded?" the answer is effectively never. If the City really made dramatic progress in the next few years, the 160 years might be shrunk to 80 years, which would be kind of miraculous. He believed the City Council had the civic responsibility to the future, and it didn't have anything to do with the people here today or their taxes. He offered two recommendations for the immediate next steps. The first would be to combine the Penco data with fire, ambulance, and police incident data. There are high winds, earthquakes, fires, and Tots of people living near utility poles, which makes this a public safety issue. Secondly, combine Penco data with property tax data and consider the short-term rental activity and the economic importance of these old neighborhoods. Responding to question, Ms. Klassen said the Penco Engineering report is with this item on the agenda website under City Council Meeting Information Center. MS. MERILEE COLTON, Salt Cedar Street, Palm Desert, commented that the City almost has a plan and that's great. She said the report is good in general, stating it was a great baseline on the fact that it has identified all the poles and wires, and without the direction of the City Council and Committee, they wouldn't have made it this far. As for the Implementation Plan, there were comments in the report that were suggestions from Southern California Edison about prioritization, and she felt priority should be based on safety rather than on the size of a project, and also aesthetics because the City's 16 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING MARCH 22, 2018 major streets and roads for the "A&C" projects often look out to vistas. She went on to say that tourism is a major industry and everyone wants the streets to look beautiful. As for the "B" projects, she's happy to learn that with the neighborhood projects, staff will be going out to stir up some business, and she wished them luck. In order to entice people to participate, which is the goal, she encouraged staff to look at the consultant's suggestion for the accelerated plan. The consultant included the standard one that the City is currently using and the accelerated one. Also, to incentivize the project further, she suggested the Indian Wells Model, which is the method of shared financial responsibility in the neighborhoods. It's the one where the City pays for the right-of-way and the homeowner pays for the work on their private property. However, it's more expensive to the City, but it's probably the only way it will get all the neighborhoods included. The second element is that there are three ways for the homeowner to pay for it, other than the current two. The current two is that you pay for it in advance and save money on the financing cost, or you can pay it over time on your taxes. The City of Indian Wells added a third option for payment, which is pay upon transfer of ownership, which she believed met everyone's needs. She said all this was great news and great work. Mayor Jonathan thanked Ms. Colton for her hard work on the committee. MS. LESLIE MILLER, Goldflower Street, Palm Desert, noticed that when the consultants were making their presentations to the City Council, conspicuously absent were the financing arrangements to the homeowners, and it's hugely important. She shared that she and Ms. Colton were the first out of the box to try to explain and sell it to their particular neighborhood. This evening Ms. Colton mentioned three alternatives but there are actually four, adding she had previous experience with this at another city, and what they did there was to provide a discount if it's paid up front, or pay over time, but it would cost a little bit more, or pay upon transfer. They argued that the property would be transferred either through a death or through a sale, and it will come in like a broker's commission. This alternative was the most easy to sell, because the people you are talking to didn't have a lot of participation, many did the broker's commission situation. It's very important that everyone gets together on this issue, so that the City doesn't just offer the two that were discussed by the consultant. She asked Council to please straighten out this issue so that it's not misleading the public, stating she was already being asked questions on this. She agreed homeowners should pay for the hook up, which was about $3,000 at this other city. Additionally, she felt the new tax bill passed by Congress had to be addressed, because it will be a giant impact. She said most people won't have taxes as a deduction over $10,000, and many will fit into that category. The only thing she could think of, and this would have to be with the help of the City Attorney, is to have been paid over time. For instance, say somebody wants to pay up front for 17 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING MARCH 22, 2018 a discount, how does that work with this new tax bill, because she didn't know how one could write-off $30,000. She reiterated that it was a major omission on the part of the consultants to not address the financing. Councilmember Kelly said the public comments have been extremely helpful and will better inform the implementation plan. It's her perception that the consultant at this stage wasn't asked to get into that level of detail, because choices have to be made by the City as to how to proceed in spearing assessment districts before Council has reached these questions, but the input is very helpful and noted. Mayor Jonathan noted this was about receiving and accepting the consultant's report and moving forward with developing an implementation plan that will translate into action. He believed this was the time to take public comments into consideration so that the actual implementation plan addresses those concerns. He's happy to see the City take a giant step forward in another major component of its vision for the next 20 years. Councilmember Nestande, moved to, by Minute Motion, approve and adopt the City of Palm Desert Utility Undergrounding Master Plan (UUMP). Motion was seconded by Weber and carried by a 5-0 vote (AYES: Harnik, Kelly, Nestande, Weber, and Jonathan; NOES: None). XVII. CONTINUED BUSINESS None XVIII. OLD BUSINESS None With City Council concurrence, Mayor Jonathan suspended the agenda at this point in order to take up the Successor Agency and Housing Authority agendas. Following those agendas, he resumed the regular City Council agenda order and called a dinner recess at 5:26 p.m. He reconvened the meeting at 6:00 p.m. 18 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING MARCH 22, 2018 XIX. PUBLIC HEARINGS A. CONSIDERATION OF A REQUEST TO REZONE THREE PARCELS FROM OPEN SPACE (OS) TO MIXED RESIDENTIAL (R-2) AND APPROVE A PRECISE PLAN AND CONDITIONAL USE PERMIT FOR THE CONSTRUCTION OF 69 CONDOMINIUM UNITS ON APPROXIMATELY 30 ACRES LOCATED ON THE FORMER PALM DESERT COUNTRY CLUB EXECUTIVE COURSE, Case Nos. PP/CUP/EA/CZ 16-280, (Christopher McFadden/McFadden Architects, Applicant). Principal Planner Eric Ceja stated that today's consideration is for a Change of Zone for the former Executive Course at Palm Desert Country Club (PDCC). He displayed a map of the PDCC, highlighting the Executive Course. Back in 2011 there was new ownership for the entire PDCC, and the new owners, with the City's help, floated a Landscape and Lighting District (LLD) to subsidize the golf course, but due to lack of community support it never came to fruition. Subsequently, the Executive Course closed later that year, and in that time, staff, City Council, and members of the community held several meetings to try to find out what to do next. In October 2016, an application was submitted for Change of Zone (C/Z) to the development of the former Executive Course for 69 condominium units. Since that time, the City has held four Architectural Review Commission (ARC) meetings. The ARC refined the architecture on the units, requested several cross -sections to be provided, made revisions to the grading plan, and lowered some of the building heights and pads. In December 2017, the Planning Commission considered the item and recommended approval of the project to the City Council. The proposed rezoning is for a Change of Zone (C/Z) and approval of the Precise Plan for the development of 69 condominium units. There are three sites proposed for the C/Z that are currently zoned Open Space (OS). The Applicant is proposing to rezone as Mixed Residential or R2 to accommodate the condominiums. The staff report provides the breakdown of how many units are provided within each site, square footage, number of bedrooms and baths, and there are two elevations provided for the condominiums. Because they are condominiums, they have standardized floor plans. In addition to the condominiums, there are both passive and active recreation spaces provided for the community. Some of it is privatized for the new residents of this community, such as the pickleball court and the pools. There is passive recreation for trails, gardens, exercise equipment, and playground space. The rest of the site is filled with new landscape. He displayed a rendering of Site A, a 13-acre site that would then have 32 condominiums attached to it. Site B is a smaller site at 6 acres with 19 condominiums, stating this site would have emergency access off Tennessee Avenue. Site C is nearly 10 acres with 18 condominiums. He displayed renderings of the architecture, elevations, and buildings heights 19 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING MARCH 22, 2018 that were recommended for approval at the ARC. He noted the heights proposed for the condominiums are in line with the zoning standards and other homes within the community. One of the major issues that has been discussed with the community is the addition of perimeter walls. Since this was a former golf course, each homeowner has their own custom wall built along the golf course or they don't have one at all. The Applicant is proposing to wall in their community by providing walls along those rear yards. In working with the community, he has come up with three separate options: solid block wall, rod iron wall, or a combination of either material. Because there are certain improvements on some homes that have encroached onto the golf course, the Applicant is also looking to work with those homeowners to possibly offset their wall five feet so they can continue to enjoy those improvements. Staffs analysis of this project is that 69 condominiums on 30 acres, leaves 50% of the open space preserved. The project itself is about 2.3 dwelling units per acre, which is half the density of the existing family community. Additionally, the Applicant has proposed a minimum setback of 35 feet. Staff has looked at the plans and all the new condominiums comply with that 35-foot setback. In some cases they are in excess of the 35-foot setback and in one of the units the setback is 81-feet. The homes themselves comply with the R2 standards for maximum height at 18 feet. He added some of the orientation and clustering of the homes help preserve the view corridor of the surrounding mountains. In the meeting's staff participated, many of the concerns centered around traffic, noise, short-term rental, lack of open space, and staff tried to address them in the Staff Report. He said traffic studies were completed and the transportation engineer for the City agreed with the findings that the existing roadways can accommodate this project. Even though the project will generate additional trips, the existing road network can handle it. Since this project is half as dense as the other neighborhood, staff didn't believe noise will be an issue for this project. Further, since the City Council has prohibited short-term rentals in the R1 and R2 Zones, this area would not be eligible for short-term rentals. Staff analysis, when it comes to density and land use, the overall density for the project is about 2% units per acres. The Applicants request to change from an Open Space to an R2, the predominate zoning district for the neighborhood is R1 for single-family homes, but there is a mix of R2 Zoning District with The Villas on the greens, and apartment projects in the eastern portion of the community. Therefore, staff found the zoning to be relatively consistent with what's there today. The architecture and massing for the units are in line with what's approved already at PDCC. He pointed out there is additional amenities provided for the community as a whole, and there are private amenities for the new homeowners of the condominiums. Based on concerns raised, with the Conditions of Approval, staff is recommending that the street naming theme is continued, and that the community remain un-gated. He said the Applicant will meet with individual homeowners when it comes to the final placement 20 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING MARCH 22, 2018 of trees in the landscape area, because many homeowners were concerned about the type and location of the tree and blocking visibility to the surrounding mountains. Staff also asked the Applicant to meet with homeowners to discuss their wall options. Lastly, there is a condition for In Lieu of Affordable Housing Fee, and conditions for the installation of the recreational amenities that are shown in the plan. Councilmember Nestande asked about the number of homeowners wanting to meet individually with the developer. Mr. Ceja replied the majority of them. Councilmember Harnik asked about the homeowners association (HOA). Mr. Ceja explained there will be a new and separate HOA formed for this new community. Councilmember Kelly noticed that one of the biggest issues that's been discussed in the material received pertains to property values. Clearly, many homeowners hold strongly that this project will diminish their property values, and the case could also be made for the opposite. To her way of thinking, it would be important for Council to know which is true in order to address highest and best use. She asked if staff had considered using Market Watch or some other objective source to educate Council on the issue. Mr. Ceja said it had not. Councilmember Kelly went on say that it's clearly the experience of affected residents that they have been given assurances in the past and those have been dashed. Therefore, she really wants to look at these conditions carefully and see if they're sufficient or if there's opportunity to pin things down. Condition No. 9 gives assurances that amenities shall be installed and maintained by the Applicant. If she's correct, the Applicant is the architect, and the property owner is not a party at this juncture. Mr. Ceja explained the property owner is a party based on the fact that they own the property and they had to consent to everything that's being proposed. Councilmember Kelly offered that if the City was to adopt the proposed Resolution, it would be a public document. However, some of the past history at this community has run into problems because of commitments made that weren't in recordable instruments. She asked if staff looked at devices that could be used to create recordable obligations. Mr. Ceja said staff has looked at a few of those mechanisms that could be recorded, but staff felt the conditions themselves on the project would be 21 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING MARCH 22, 2018 adequate to ensure these amenities get installed. Further responding, he said the established HOA would be responsible for maintaining them, and the City reviews the CC&R's to ensure that language is included. Mr. Hargreaves commented that typically with these kinds of projects where there is an HOA, the City requires CC&R's. His office then reviews them to ensure those kinds of obligations and the Conditions of Approval are incorporated into the CC&Rs, which gives the City the ability to enforce them with respect to those obligations. He pointed out that Condition No. 20 talks about the CC&Rs and annexing into existing HOA, which he understood was not going to be the case. He said the City may want to consider modifying and adopting the CC&Rs consistent with these conditions, and they will be reviewed and approved by the City Attorney. Mayor Jonathan stated that on the point of enforcement through HOAs, the City has been challenged in exerting that authority in some cases, and perhaps those mistakes of the past have been corrected to what the City Attorney had in mind. Mr. Hargreaves replied the City reviews and approves CC&Rs, and it has done that for decades. With respect to the City's conditions, which are the maintenance of landscaping and general conditions, streets, etc., he didn't know that the City had issues with those things. Mayor Jonathan recalled there were perimeter landscapes that have been outside their walls. The City has had some situations where the HOAs have let their landscape go and the City had difficulty in enforcing any type of requirement on them to follow through. He's trying to ensure that whatever mechanism is used, that it is effective should there be a lapse in proper maintenance. He wants the City to have power and authority to compel the owner or the association to comply. Mr. Hargreaves said he believed where the City has had problems with perimeter landscaping, is when it's dealing with a Landscape and Lighting Maintenance District. In those districts, the City has not had the ability to increase the assessments sufficiently to cover the maintenance. Now when the City specifically requires the formation of an HOA with the CC&Rs, it provides the City the ability to do the maintenance and lien the properties if necessary. Councilmember Kelly pointed out that Condition No. 9 indicates that change to the play area and exercise equipment shall be approved by the Director of Community Development. She searched the paperwork for something that would define the starting obligations for the play areas, exercise equipment, and the amenities that will be available for the general public, 22 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING MARCH 22, 2018 which would include the community gardens and gazebos. It wouldn't be helpful to say changes have to be approved if the obligations are not initially defined. There are pretty pictures in the plans that look attractive, but they are quick shots of the possibilities. In other words, she doesn't want to see a bait and switch. Mr. Ceja responded that in looking at the landscape plans, it shows placement of some of the amenities, adding that the trail system is well defined. However, the location of the gazebo, exercise equipment, and play areas could be moved, but they are shown in the landscape plan. Councilmember Kelly said she was more interested in knowing what is at the exact locations. Mr. Ceja said staff didn't have those level of details for the design of a gazebo or the design for the play structure, but they would be in the final plans subject to staff approval. Councilmember Kelly called attention to Condition No. 14 regarding the placement of trees, stating staff mentioned property owners expressed concern about the type of tree, and this conditions only refers to placement. She suggested adding placement within the site area and type of tree. Mr. Ceja replied it would be possible by asking that the landscape plan show a pallette of trees that homeowners can draw from, but it's important to say the intent with this condition is that it doesn't result in the removal of the number of trees. Councilmember Kelly stated that with regard to the Applicant working with some property owners to adjust property lines to allow for the fact that during the operation of the golf course, some property owners use of the land encroached upon what was technically on golf course property. It sounded a little general, in terms of the Applicant working with some property owners. Therefore, she questioned if Council was being asked to approve the Resolution without knowing if a final result was reached. Mr. Ceja said he would defer to the Applicant to reply, but they are offering a five-foot offset for those properties. Councilmember Kelly asked if the paper work defined which or all property owners would receive that five-foot setback and whether or not it would be sufficient to address all encroachments. Mr. Ceja said he didn't believe it would be sufficient to address all the encroachments, but it handles the majority of them, adding there may be one 23 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING MARCH 22, 2018 or two where they would need more than five feet. In cases where there are in -ground swimming pools, there needs to be further conversation between the Applicant and the property owner to find a solution on how those improvements remain permanent. Councilmember Kelly questioned how would approval create an obligation for the Applicant to conclude those conversations to the satisfaction of the property owner. Mr. Ceja said he would defer that question to the Applicant to clarify, but through this process in working with the community and various commissions here at City Hall, the Applicant has been very amenable to meet and to accommodate the neighbors in terms of the design, placement of trees, and how they handle those edge conditions. Councilmember Kelly stated that given the level of technological resources, it wouldn't be hard to create computer simulations that would show folks the actual impact on their views based on the proposed architecture. She has seen the cross sections and site lines, and she can make sense out of them and draw conclusions, but there are many people expressing concern about the impact on their views. She asked if the Applicant could use technological resources to give people a more realistic simulation on their views, because in many cases it might be reassuring. Mr. Ceja answered yes, stating there are several computer programs that can be used. Councilmember Kelly noted she and Mr. Ceja met with one of the residents this afternoon who shared the staff report from 2004 when the last major project was approved to add houses to the Palm Desert Country Club. It contained a brief statement about Open Space Easement by indicating that the proforma and the data reviewed assumed that the remaining golf course property will be placed in an IRS (Internal Revenue Services) approved Open Space Easement to establish a tax credit. However, she understands that didn't happen, and whose fault is it, because if the City shares some responsibility it might have some bearing on the discussions. Mr. Ceja confirmed it did not happen. Mr. Hargreaves explained the developers idea was to put it into a conservation easement and get a tax break for that donation. The City did the research and consulted with experts on conservation easements and determined that it would be an inappropriate use of a conservation easement, because the land wasn't in conservation. Therefore, the City did not want to participate in what would be a tax fraud, so the developer actually offered the easement and the City declined. 24 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING MARCH 22, 2018 Councilmember Kelly asked if that exchange was after some residents expressed their support for the development that occurred in 2004. Mr. Hargreaves couldn't recollect the exact sequence, but the understanding was that the land would not be put into conservation, but rather open space, and developers could not use it for development unless it came back to the City Council for approval to do so. It was hard at that time to predict what would happen in the long run that if it put Open Space Zoning on it, it would remain open space until a subsequent City Council decided that it wasn't appropriate under the circumstances. Again, he couldn't comment on what the people in the community understood at any particular time. Mayor Jonathan declared the public hearing open and invited public testimony FAVORING or OPPOSING this matter MR. CHRIS MCFADDEN, McFadden Architects, Applicant, noted the entire team was available to answer questions and they include: Landscape Architect Chuck Shepardson, Civil Engineer Kurt Saxon, EIR Consultant Michelle Weatherspoon from MSA Consulting, General Manager of PDCC Wilf Weinkauf, and Owner Moe Sihota. In proceeding forward on this infill project, everyone has come to realize that the time has come to embrace change. The Golf industry is not as robust as it has been in previous decades and is in decline today. The PGA Nationals has moved to Florida, which alone jeopardizes our standing as the Golf Capitol of the World. The previous drought concerns and continued conservation efforts in California will continue to impact the viability and sustainability of existing golf courses. The owners of the Palm Desert Country Club (PDCC) are confident they can continue to enhance and maintain the Championship Golf Course for years to come, but unfortunately, the Executive Course is no longer feasible to operate. Regardless of the outcome of the proposed project, the Executive Course will not operate again as a golf course. He said they have been working on this project since 2013, and based upon multiple levels of input from the HOA, Open Space Committee, public comments, planning department, fire, public works, ARC, and Planning Commission, they are here to present this project. Basically, the project consists of three parcels of 29.5 acres that defines the old Executive Course; Parcel A is the west most and largest of the three and consists of 13.56 acres; Parcel B is the smallest and it consists of 6.15 acres; Parcel C is the east most and it consists of 9.74 acres. When they began this project in 2013, one of the first questions they asked was how the original developers had conceived the project and how they would currently address it. They began by looking at the largest parcel of land, which is Parcel A , 13.56 acres with lot sizes nearly 7,000 square feet to comply with the current Municipal Code and compliment the smaller lots elsewhere within PDCC. They introduced current standard residential street widths and came up with a 67-lot solution at just under 5 25 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING MARCH 22, 2018 units per acre, and this was their first concept in 2013. He shared the information with the current ownership and the response was swift and he declined it, because they were looking for something half the density with lots of open space, which took him by surprise. After a few more iterations and input from the community, they settled on a 69-condominium solution on nearly 30 acres at 2.34 units per acre, which is what the team is presenting this evening. They were subsequently asked to study the other site locations to determine the number of single-family parcels that might have been originally developed at the Executive Course and there was the potential for 141 possible lots with a density of 4.7 units per acre. Therefore, back to the current proposed project of 69 units, the breakdown is as follows: Parcel A - 32 unit at 2.3 units per acre with18.2% site coverage, and 57.65% Open Space Landscape; Parcel B -19 units at 1.46 units per acres with 23.8% site coverage, and 49.75% is dedicated to Open Space Landscape; Parcel C - 18 units at 1.85 units per acres, and 37.92% Open Space Landscape; another 27.84°A) toward a recreation area. They have a total of 69 units and a density of 2.8 units per acre, and each of the three parcels feature a considerable amount of open space. When compared to all existing surrounding developments and you combine the three parcels of 29.45 acres, 14.3 acres or 48.5% is dedicated to Open Space. With respect to the architecture, they propose a single efficient floor plan that is 1,435 square -feet with a two -car garage of 553-square feet, 1,988 square -feet under the roof. The two bedroom and den floor plan features private patios in the front with open terraces, and views in the back. They integrated the indoors and outdoors as seamlessly as possible, and the rear terrace areas of the units have been partially enclosed with free standing and curvaceous site walls. These are intended to soften the grade changes and placed to protect privacy on both sides of the wall. The garage has side and front entries. He went on to display and explain the various elevations and adjustments made to grading, stating they were able to arrange the units into various clusters of 2, 3, and 4 units, including a few standalones. They have two color palettes so they can alternate each cluster, and doing the same with the pitch and flat roofs, which will provide a non -repetitive streetscape. The cluster design allows for shared entry driveways that have architectural paving from the street, which consolidates the vehicles and creates a sense of community, increases the open space, and gives a good pedestrian scale. Amenities include a community pool and spa with a small multipurpose restroom facility centrally located on each parcel. This will be an area where residents can barbeque and worship the sun. He displayed six slides addressing the issues of the various cross sections, specifically those at lower and higher golf course heights. The pad heights from high to low average 16-feet in height. He displayed four slides demonstrating a focus on the entry points they were asked to study. They included existing photos and rendering overlays to address concerns, which helped everyone visualize the finished concept. The infill project was intentionally designed 26 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING MARCH 22, 2018 with a very low density to retain as much open space as possible. The continuity of a pedestrian path was also intended to enhance the openness of the outdoor environment. During their initial site survey of sidewalks, they discovered that the perimeter edge of the project had a lot of complexities and angulations from parcel to parcel, some had short retaining walls, overgrown hedges, hardscapes that encroached into the golf course, even a pool or two built beyond the rear parcel. They attempted to turn the dilemma into an opportunity by initially considering deeding five feet of property to each owner, which would achieve a few benefits. It would eliminate the need to demolish rear improvements, hard or soft, from existing rear yards because presumably everyone was fairly content with what they currently had. In early discussions with Planning, it was brought to their attention that there were a few substandard parcels, less than 5,000 square -feet around the course, stating this could alleviate some of those. The five-foot setback comes from a standard civil engineering best practice for wall structures, particularly retaining walls that need some access at the retaining site for future maintenance like water proofing and footing encroachment. This would allow them to leave many improvements in place and only having to clean up the grading transitions. The deeding element did not sit well with the majority of the owners due to possible property tax consequences, so it was taken off the table. The five-foot offset is a solid approach within the design industry and the new HOA would maintain ownership and transition, stating provisions have been made for access to this area. Essentially, they have three variations or options that will be utilized around the perimeter edges, which are primarily affected by grading transitions at or near the perimeter property lines. He displayed and described the renderings of Options A, B, and C, but the preferred solution was Option A, because it allows for the most openness to the view corridors and open space. All the faces of the split -face pilaster block that the fencing attaches to will be at the five-foot offset line, which is illustrated in one of the exhibits. Therefore, they will be placing pilasters at every property corner, and another pilaster mid parcel. This will maintain a continuity in the overall design with these repetitive elements. He went on to describe Options B and C, noting the concepts will be fully delineated in the construction documents if approved, and it's the intention of the design to maintain at least three -lots widths of any of these solutions. They will work through it with the homeowners and see how they can arrange to make it as consistent as possible. The work will be carefully delineated in the landscape grading plans during the construction phase, so the optional tree species at the rear property line has come about during their presentations to the HOA. Comments were received resulting in them proposing a pallette of three to five acceptable desert trees on the tree legend, and landscape architects will field, stake, and identify the proposed species 30 days prior to placements. Owners will be noticed and arrangements will be made to discuss locations species, location, and adjustments within the then City approved list. During 27 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING MARCH 22, 2018 the initial development of this project, they integrated a continuous walking path to the perimeter of each parcel and offered to make it accessible to all residents of PDCC. They were originally directed to enclose the perimeter and provided gated entries, but there was community interest in accessing the path from the west to the east. Therefore, they were subsequently directed to eliminate the gated entry. At the last Planning Commission meeting there was some consternation over the perimeter fencing and the suggestion was made to eliminate it entirely. He and the developer have discussed this, and they have no objection to eliminating it if the City Council felt it would be appropriate for this development. The community pool areas are fully enclosed to meet full safety requirements, so they are not required to have fencing at the perimeter. . MR. CHUCK SHEPARDSON, HSA Design Group, stated he was the Project's Landscape Architect and he has specialized in designing country club communities, and he's treating this project the way he designed those types of communities. He said there is a fine balance between designing the landscape on a golf course as well as integrating the landscape to adjacent homes that are overlooking the golf course. The objective when designing from a golf standpoint is to mask those homes as much as possible, which is just the opposite when designing from the homes, because they want their views. What works best with this project is to concentrate the clusters of trees at the location where the site property lines meet the rear property lines on each side, leaving the middle of the Tots opened as much as possible to preserve views. And as stated, they will work with homeowners when staking locations and species to preserve as much open area, stating most is concentrated around the perimeter where the existing homes are located. Lastly, he said this project was sensitively designed, and he looked forward to working on it. MR. McFADDEN asked the City Council to consider how appropriate this proposed 69-unit project is at 2.8 units per acres with nearly 50% open space. It will be HOA maintained and it's much more suitable than the current situation. MR. NED WILMOT, Tennessee Avenue, Palm Desert, shared his breadth of experience in planning, designing, building large projects, and mix -use communities, and this evening he was in opposition of the proposed project. He believed the community will soon be facing a crisis in that he came to a point this winter where he had long waits at two signal lights on Highway 111, and then there are turn lanes you can't get to because they are stacked up so far; the City has reached saturation with these streets. He recalled a dozen years ago when the prior owners of the Country Club were proposing to convert the public golf course to housing, and he inquired about that development agreement, because he always understood it was in existence 28 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING MARCH 22, 2018 and it would preclude development on the golf course. He was told by staff and City Attorney that they were not able to find it, but they were aware of it. Now, the most amazing thing has happened this evening, some neighbors have delivered this evening a document that shows the golf course was to be maintained in perpetuity. He said this document will be passed on to the City, and he hopes Council will pursue appropriate use for this land. He saw little merit in this application, instead suggested a Tiger Woods 9-hole Signature Golf Course, stating Tiger is out searching for sites because he's a great believer of short courses. MS. KATHLEEN BISHOP, California Drive, Palm Desert, said she has studied the proposed development of the PDCC Executive Course, and one item she was going to bring up was the Eminent Domain of the 5-feet, but heard it was off the table. Therefore, the following areas of concern are: 1) The 6-foot walls, which can be selected by each property owner, and they can choose wrought iron, wrought iron with block, or entirely block. She's concerned of having people go over the walls or animals going through the rod iron fencing and eventually making their way into her back yard; 2) Elevation - with her elevation at 886 feet and the development at 889 feet, she will be three feet below, plus another foot because of the pool they have; it would be a 10-foot differential. Therefore, she won't be able to see anything in her back yard, and even if trees are planted, she won't be able to see them; 3) Lighting - she wants to know the type of street lights that will be used, because they are accustomed to the dark skies in the evening; 4) Traffic - she currently has a cull -de -sac on one side and two condos on the other end, so she's concern about the traffic coming from cars, trucks, trash trucks, etc. 5) Density - with the 69 condos located in Section B, the project is too expansive for the Executive Course. She felt the City was turning their backs on the current property owners when they are called upon to give up views, privacy, and property values. She recommended that no vote be taken this evening and for the City to explore other options with the community for a solution friendly to the current homeowners and the City of Palm Desert. MR. DOUG BISHOP, California Drive, Palm Desert, recalled that in June or July of 2014, two Councilmembers told an elderly lady at one of the PDCC meetings that residents will get to have a vote, which was comforting because nobody in their right mind was going to pass this project. At a previous ARC meeting, one of the Commissioners who had missed several meetings started scolding the residents, saying they didn't have a right to a view and that they would lose the golf course; she was very emphatic. Having attended all the architectural and planning meetings, he felt there were too many questions that this Council needed to get answers on before making a reasonable vote. He asked if Council had checked the crime reports from the Riverside County Sheriff's Department, because he doubted 29 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING MARCH 22, 2018 they had. He said residents have had to take a back door to the development of this project, and the City Council was elected to serve the residents of PDCC. He pointed out that Palm Desert annexed PDCC into Palm Desert, which he was pleased, and assumes this Council would like their vote in the future. He thanked the City Council in advance for postponing this vote until it has read all the information from both sides. He said it appears the only person who understands the proposed project is Commissioner Lindsay Holt of the Planning Commission, because she asked for a postponement, but she was out voted. He added that Council needed to read the Planning Commission minutes in order to understand why the residents didn't want this project. MS. BARBARA POWERS, Kentucky Avenue, Palm Desert, addressing the perpetuity clause, she said the clause was done in conjunction with the committee through the City Council, and a vote was taken in 2004. However, after the fact, the City Attorney did not allow for it to be recorded. Then there was a meeting with the City Manager Lauri Aylaian and City Attorney, and they found it was not allowed to be recorded. She noted she had all the records. On January 24, she sent a letter to the City Council regarding the tract maps that were separated from the Planning Commission meeting, but then they were forwarded to the City Council, so now they have to go back to the Planning Commission. The letter is in the supplemental report that came out today, but it was sent to Council on January 24, regarding Tentative Tract Map 37240, 37241, and 37242, and a response was just received last night. The Planning staff report summary indicates that Commissioner Holt would not support the severing of the parcel map process from the Zone Change process. On page five of the staff report under "Loss of Surrounding Views," it states, "It's incredible that the new project will not afford the historic property owners views they previously enjoyed." This is a significant Toss for the 188 property owners. On page 8 of the staff report, regarding the Environmental Review, it states "Only some of the existing views will be preserved." The Precise Plan application under Development Standards Section B - Site Planning Standards states, "Site planning shall occur in a manner that minimizes obstruction of scenic views from adjacent properties." The earlier presentation made by Marilyn Forney showing the view obstruction was submitted to this Council and is part of the corresponding attachment. The items she just stated are sufficient for the rejection of this entire development. Also, there is a gentleman that presented a letter to the City Council dated January 15 regarding a bond proposal and he never received a reply. MR. RAY CULVER, Oregon Circle, Palm Desert, stated he had worked 15 years with Del Webb as a superintendent and has worked as a project manager relating to new construction. He said Council didn't realize what a can of worms it was opening up trying to put new construction on land that 30 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING MARCH 22, 2018 has been out there for 40+ years. He asked where all the construction workers were going to park, because the streets are relatively small. On Kentucky Avenue there are currently a lot of cars during the week, stating people will be hearing stucco pumps whining all day long, which won't go over well with the residents. Also, a few months ago, a gentleman that was on the ARC or Landscape Committee went out to look at the area, and he didn't know how they would be cramming new construction there; it was a bad idea. MS. KATHRYN CULVER, Oregon Circle, Palm Desert, said she has repeatedly asked what was the need for this project, because she believed there wasn't. The City's financial statement indicates it has more than $2 million in the General Fund, so there was no need for the money, and there was no shortage of condominiums or lack of land to develop. Just two days ago, the City talked about building 395 apartments on the other side of Hovely Lane, and then there is the University Park area. Further, the character of the community should not be changed by rezoning. She said the City was taking away a country club park. The 69 condos being proposed will not be part of the country club, so where did that leave the current property owners. At the ARC they were told they had no right to a view, but she disagreed, because she purchased a home next to an empty space and next to land designated Open Space. It was intended to be open space, which is why the houses were specifically positioned, and its why the terrain is the way it is. Residents were told they were afraid of change and that they didn't understand the changes. She displayed a photograph of an attractive desert scape area in front of the County Club, then later the owner said they couldn't maintain the 18-hole course, the one they want to keep and is making money. They said they couldn't maintain the green space on it, so they converted it to desert scape, but the photograph she displayed didn't reflect it, which is what they're afraid will happen again. They have dead turf and dead weeds, and it's not what was promised, yet the residents are supposed to believe this was not a bait and switch. Further, Mr. Ceja said it was probably because they had proposed only a small section. However, the photograph she displayed was one of those small sections, and it's not reflective of what was supposed to be desert scape, it's currently dead turf. She reiterated the owner has done nothing, and the City has not made them comply. MS. KAY ADAMSON, Kentucky Avenue, Palm Desert, asked the following questions and/or made the following comments: 1) Was there a market feasibility done, and if yes, what was the result; 2) it has been established that this property was purchased when in distress by a development company rather than a golf course company; 3) the proposed density is inconsistent with the established single-family houses, and the City has no responsibility to ensure the profitability of this company. However, it does 31 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING MARCH 22, 2018 have the responsibility for the good and well being of their citizens; 4) what happens if this organization misses the market and is unable to see results. Will the residents see an abandon infrastructure, leaving unpaid contractors in the balance, and will the City ensure project completion. At this point, the property in question was neither fully developed or feasible to go back to a golf course. Those were questions to the City Council, now her question to the architect is whether any of the rear views, of the houses in the tracts, oriented toward the mountains or toward the 6-foot wall. MS. SERENA ILLK, Kentucky Avenue, Palm Desert, noticed that the City's Long -Term Plan indicates it needs more open space. The thing that makes her the angriest over this whole situation is how the truth has been manipulated to support Applicant's claim that they couldn't make a profit on this property. Their decision to close the course entirely destroyed tens of thousands of dollars worth of improvements, creating the sad conditions on the property, which she believed was calculated to bring everyone to this point. Sure, the golf industry was changing, but the change that is occurring is not total death to the game, the change is to move away from an expensive full -day spent on the golf course to the less expensive option of 11/2 to 2 hours of play on shorter courses. This is why Tiger Woods is building in Cabo San Lucas a shorter 12-hole course, so 9-hole executive courses are even more popular. If the Executive Course had been advertised and properly managed, it would have been busy from dawn to dusk as it had been in the past. Prior owners referred to it as the real money maker of the whole complex, and these people destroyed a gold mine, but now they want the community to pay. She said it was not the responsibility of City government to bail out investors who prove incapable of operating the business they purchased at a bargain basement price because prior owners took the money and ran after they got approval to build. She asked Council if they really believed it won't happen again. She reiterated that it was not the City's job to bail these people out, especially when the citizens got them elected. The citizens do not want to go through two, three, or four years of dust and massive earthshaking construction in their back yard only to end with a walled -in housing development where there used to be open space. The City's only obligation is to protect its citizens, and they can do it by declining the Change of Zone on this beautiful historic neighborhood. If this property is never to be a golf course again, so bit it. All they ask is that the City enforce its code on whoever owns the property for no dust, no hazards, and no overgrown weeds. She asked the City Council to think about what the residents will have to live through if this project is approved, and will it reward deception. MS. JULIE WILLIAMS, Palm Desert, concurred with Ms. Illk's comments. Secondly, she noticed the proposed renderings don't show any utilities, so was it safe to assume they would be underground. Mayor Jonathan noted 32 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING MARCH 22, 2018 that all new construction in the City of Palm Desert requires undergrounding of utility lines. MS. MOLLY MCNEICE-GRAHAM, Oklahoma Avenue, Palm Desert, asked that Council not approve the proposed rezone that would take away the open space, which is a precious commodity and resource. Their home has a back yard facing south and it abuts to the old Executive Golf Course, and on a daily basis, because of this open space, they enjoy wondrous use of the mountains to the south and to the west. They also enjoy the wild birds, Canadian Geese, the ducks, and the quiet and solitude the open space provides. Although the proposed condominium complex seems to be attractive on its own, it is an intrusion on a community that has been in place for more than 40 years. She asked Council not to rush in approving the rezoning and development plan, because the open space cannot be retrieved once developed. She said proposals for utilizing this open space for recreational or other noninvasive use has been declined in the past by the City, it would be prudent to wait and leave options open for future ideas. The City continues to grow and expand, and 20 years from now it may need open space like this one. The immediate gain the City might get from taxes is small versus the benefits of preserving this open space. If indeed the land must be developed, additional accommodations for current homeowners are worth considering and evaluating, so they can continue to enjoy some of the scenery and wildlife this space currently provides. A few of the intrusions are as follows: The proposed grading will wipe out their views; roof lines are too high; condominiums are too narrow and are encroaching on existing homes; the road entries are not wide enough; internal roads are too close to existing homes; proposed pickleball will be too noisy. The developer has promised to accommodate the current homeowners with several options on the wall, fence, and type of trees, etc., asking if these promises were in writing. MR. JACK L. FORNEY, Kentucky Avenue, expressed his strong objections to the project, and his primary objections are as follows: 1) Open space would be lost forever; 2) the character of this development is cramped for the area and condominiums are not consistent with surrounding properties; 3) location and circulation pattern of internal roads; 4) extensive grade that disturbs natural vegetation, water flow, and existing natural terrain; 5) the need for extensive retention basins and retaining walls; 6) loss of views and privacy; 7) noise; 8) traffic. Approval of the rezoning for this project will have a significant lasting effect on the serenity, vitality, and stability of the existing community. The repeated requests for compromise have been totally ignored or met with a statement that the golf course is closed. Approval of the proposed development was similar to an Eminent Domain Acquisition by a government agency. However, in this instance, both parties are private entities and the 188 aggrieved property owners are not financially compensated for their loss, while the proponents who acquired the 27-hole 33 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING MARCH 22, 2018 course and clubhouse for a reported $1.8 million were awarded an opportunity for a $10- to $12 million profit. On the basis of the objections mentioned, he respectfully requested the City Council reject the entire project for the good of the entire community and direct the owners to restore the green grass. He asked that the 188 property owners be allowed to vote on this in the same way property owners adjacent to the former driving range were afforded prior to construction of the Horton Homes at PDCC. Earlier this afternoon he had a conversation with Ron Crisp who is President of the Palm Desert Homeowners Association, and he gave him the expressed permission to state that the Association was not in favor of this development. MR. TIM OLLOM, Kentucky Avenue, expressed his approval of the project, stating it should go forward because it was a better situation than the current one. He noted he was in the construction business, stating he reviewed the plans and believed there will be plenty of open space, and placement of the trees will not block the views. Having the developer give property owners the opportunity to select the tree and wall type was a good thing. He said he was tired of his current view and understands it won't be a course again, so he urged the City Council to approve the project. MS. CINDY STEVENSON, Kentucky Avenue, offered she had the document that an earlier speaker mentioned, which was an update report dated July 23, 2004 from the PDCC Improvement and Club House Renovation and Residential Project. One of the questions in this update was, "Will this Amendment to the Declaration document allow further development of PDCC property? The response was as follows, "The development of the new homes proposed in this project is the only new use authorized by the Amendment to Declarations document, the remainder of the original restrictions will remain in place and further development on PDCC property will be prohibited in the future. In fact, Palm Desert Country Club Development, LLC, will be dedicating a golf course easement in perpetuity, which means that after this project is completed, no other homes can ever be built on golf course property in the PDCC." However, she now understands this was never allowed to be recorded. She asked Council how they would feel if someone wanted to put a wall up and take their views away and replace it with a road, people walking, lights, noise, etc.. She said they were being walled off like a prison and the people that will buy the condo's will enjoy the views they currently have, which was not fair. Additionally, it was not worth the cost to the tax paying citizens of the City for a foreign company to come in, buy up land, build it, and skip town, stating it made her so angry. MR. MARK CATROPPA, New Mexico, Palm Desert, stated his home backs to the Executive Course. He said he was extremely supportive of this project and excited to see it come to fruition. He's been asked by the Citizens 34 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING MARCH 22, 2018 Committee that was consulted on the original development plan to read four letters from property owners of the Executive Course who didn't feel comfortable coming to speak, because they felt intimidated. He read them out loud and are of record with the Office of the City Clerk. They are as follows: Craig Robertson, Tennessee Avenue, Palm Desert, complimented the fine use for the property and believed it will add significant value to the neighborhood when it is completed. He was grateful when the PDCC golf course and the entire community was rescued. Heather Clarke, New Mexico Drive, Palm Desert, I am anxious for the project to get underway. We will never have the little course back and would prefer to look at some maintained buildings or projects rather than dirt, ant filled, doggie walking park where no cleans up after their puppies. Ruth and Harry Krentz, they are pleased and supportive that this project is going forward in that PDCC is a sought after location. They are excited that there will be more homes and residences available in a beautiful part of the Valley. Phil Goodge, PDCC resident, the new plans to develop the 9-hole course is great and he's confident it will be done well and give current residents something nicer to look at from their backyards. MR. ROBERT BRESCIANI, Tennessee Avenue, Palm Desert, noted he is staying at his friend's house on the Executive Course and they are Roger and Debbie Batty. They asked him to read the following: "Our home abuts the 18t'' hole of the Executive Golf Course. When they purchased their home, they sat next to a well -maintained golf course with stunning mountain views. Prior to purchasing their home, they reviewed the legal documents concerning the golf course and realized there was no guarantee that the lands would remain as a golf course in perpetuity nor a guarantee that their view scapes would remain. However, they never envisioned that the course would be shut down within a few years of their purchase. Over the past months. they have been witnesses to the debate within the community about the redevelopment of the golf course. They met with the owners and have come to understand it is not financially viable. They have also talked to the owners about their desire to preserve their mountain views. Due to the relatively low density of the proposed development, the owners have had the flexibility to adjust topographical grades and site locations to protect view corridors of both their property and of the neighbors. They are in support of this development because it attends to their concerns, low density, and half 35 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING MARCH 22, 2018 of the open space is retained. The development fits with the general character of the neighborhood, and as proposed, it should help stabilize and improve the appearance and property value of the neighborhood. MR. MICHAEL HERRELL, Kentucky Avenue, Palm Desert, expressed his astonishment that a plan like this could move forward without traffic being addressed. There was no engineering study done and it's been virtually ignored. There are currently 163 short-term rentals up the street that is loaded with cars that will have a tremendous impact. Oasis Country Club has a gate and many of the people there use Fred Waring as a short cut and come through California Avenue. The 69 condos will increase traffic and congestion on top of existing impacts from the music festivals and tennis events. He believed many will be frustrated with having their current lifestyle affected by the traffic. He recalled that back in 2016, someone came out one day for a few hours to do a traffic count analyzing two streets. He couldn't believe traffic was not a bigger issue than what it is, especially today with the environment. MS. PHYLLIS HARKINS, Missouri Drive, 18-year owner at PDCC, stated that shortly after she purchased her home the golf course closed, stating the owner went bankrupt. She recalled at least two bankruptcies, but there may have been a third one. Clearly the golf industry is changing and statistically they say that an averages of 150 to 175 courses are closing every year in the United States. She pointed out that Sun City and Rancho Mirage are building new communities without a golf course, and she's not surprised. She supports the project, but she doesn't think it's the best option. Some may say it's easy for her to support it, because she's on the Championship course, but she would rather look at an attractive open space instead of what is currently there now. She was surprised the proposed plans have a lot of open space, because earlier ones were larger. She believed this was the best option for the community. The irony is she kept hearing about loss of views, but everyone knows there is a lot of case law in California that say you are not entitled to a view. The comments about declining property values, is the same one she heard back in 2005 and 2006 when they built the 95 homes. However, those homes actually raised the property values. She saw many property owners of the existing homes that were 40 or 50 years old make improvements, because they were next to a new home. She was in support of the project and requested Council to approve it. MS. LISATHEODORATUS, Utah Circle, Palm Desert, stated she has owned her home for 20 years. She recently located the Operation and Maintenance Agreement drafted and recorded by the City, dated August 31, 2005, which provides the City the ability to require the current golf course owners to restore the short course to operational standards. Evidently, the document had been lost for quite a few years, because she was previously told it did 36 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING MARCH 22, 2018 not exist; the document was signed by the City and it was recorded at the County. This agreement specifies 27-hole courses of a "neat, clean, and green golf course every day," stating it's one of the requirements of this document. She asked that the City enforce this document and make the fairways green again without any zone change. She said the City had a responsibility to enforce this document that was drafted back in 2004 and 2005, adding she had intimate knowledge about it, and there are other documents that have not surfaced as of yet that she is slowly finding. She requested the City go through the documents and determine how it got here and why PDCC has not been protected as promised. There was a question about the notarized signatures on one of them. Another speaker read from that document that states everyone in PDCC was promised it would be the last infill. Because of the money coming from that infill, the golf course would be maintained. This document also has stipulations that the City was to create a Maintenance Account with the then property owner to monitor the account, which was to be used strictly for maintenance, but she doesn't know if that ever happened. The document she's talking about is transferable and it even has a stipulation in it that if the property were to go through foreclosure or a number of other items, that this document is still valid. She noted she had a copy, and she will forward it but her copy is redlined. MR. BRAD TAYLOR, Regional Manager with Villas on the Green, California, Palm Desert, he said they have a recorded Covenant Agreement with PDCC that stipulates there will be no buildings in certain green space, adding the City had the entire agreement. He's been looking at conceptual and precise plans that have certain items build within the space, so he wanted to make sure it's on record that he has spoken to the Applicants, and they are in agreement not to build on the green space. For the most part, he approves of the project overall, stating it's much better than the brown grass everyone was looking at now. He said the landscape plans are beautiful and hopes they will be maintained as proposed. Responding to question, he said he has sent the document over to City staff by email. MR. TERRY COLLIER, Ajo Lane, shared he lived in the community of Ironwood. He's fortunate to have a beautiful view so he sympathized with what these property owners stand to lose in terms of the aesthetics of the properties. As a retired building contractor, he's used to projects where the front door cost $50,000 and the bathtubs are from Europe at $25,000. He suggested that the scale be checked, because the drawings somehow never seem to depict the final product. Based on the floor plans and the furniture arrangement, he felt something was off, and to him that meant it was designed to attract people who want to invest in a piece of real estate, evolving into a short-term rental. In his opinion, short-term rentals are a big detriment to this community as a whole. He gives this project two thumbs down. An area that is too dense destroys the area where people live, stating 37 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING MARCH 22, 2018 they may want to consider purchasing all that land themselves and turning it into a doggy park, a putting range, maybe even a tennis court, which would be far better use than what is being proposed. MR. JOSEPH PELLEGRINI, Kentucky Avenue, Palm Desert, approached the City Council to express his opposition to the zone change. He said residents were recently led to believe that no further development would be done after the 2004 renovations. He asked to enter into the record an attached 2004 document dated July 23, 2004, from the PDCC Development, LLC, in regards to the PDCC Golf Course Improvement, Clubhouse Renovation, and Residential Projects. The document affirms and memorializes that the 2004 renovations project applies to all 27 holes of the golf course and the permanent preservation of the PDCC Golf Course as a golf course. More important, the document states, "After this project is completed, no other homes can ever be built on golf course property in the PDCC" and that "further development on PDCC property will be prohibited in the future." MS. TINA MCBRIDE, Utah Circle, Palm Desert, divulged she was one of those property owners with a pool that encroaches on the golf course. She purchased her property over 18 years ago, and 15 years ago they had a pool and perimeter installed, therefore, five feet is not going to work for her. Secondly, they paid a premium to be on the golf course and to have a beautiful view of the mountains, and with this project, she will lose her view and valuable land. Therefore, she was against this development. MS. NELLIE SEMBRANO, California Drive, Palm Desert, shared she purchased her property last year. Prior to the purchased she considered many factors such as the schools, crime rate, and tranquility of the neighborhood. She is a social worker and conducts assessments every day on the well-being of families. As a social worker, part of well being involved the surroundings. If the owner is allowed to build condominiums, its putting a price to the well being of all affected residents who don't want to have traffic, noise, and all the other things already mentioned. She is against the project, because she wants to continue having tranquility and the same elements she considered before she made her purchase. She asked Council to consider the well being of the many people that will be impacted. MR. ROBERT VERDE (Sp.?), Kentucky Avenue, Palm Desert, noted he convinced his wife to move to the Desert from the east coast four years ago, because California was the nicest area in the Country to live out their golden years. He said all the discussions have centered around the roof lines and fences, but this was a human and an American issue, and the owners of this course are from another country. He doesn't dislike them because of it, but believed that the elected representatives are to represent the community. 38 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING MARCH 22, 2018 He shared that after he served his time in the service, he worked in the largest city in the country and retired to move back to California. However, for the last three years, to see what he assumes will happen, is a tragedy. People in this audience are seniors, veterans, law enforcement, and nurses, stating they have given to this City, this state, and this country, and all of that has nothing to do with what has been discussed. The country had a very bad economic downturn and a developing country came in here to take advantage of that — an opportunist. Seniors there are going to lose and a foreign country is going to take advantage. He added that Canada did not have this problem, because there is plenty of land there. To the Open Space Committee he says they are the heroes, and he's hoping the five Councilmembers will be too. He is highly opposed to the proposed project. MR. STEVE BENKE (Sp.?), California Drive, said he had two problems with this issue. At the last Planning Commission meeting, the owners said they didn't anticipate that the price of the fertilizer was so expensive, which is why they had to shut down the golf course. He said they are either Tying or they are incompetent businessmen, and now they want to go into a more complicated and more expensive project. Additionally, this Council, as a public servant, is supposed to protect and help the residents, and it should vote against this project. MR. MOE SIHOTA, PD Holdings L.P - Owner, New Mexico Drive, Palm Desert, noted he was a Canadian. He said he would address the issues that were raised, including the human element, because in all of these matters' issues come before the City Council, and they are issues of emotions and facts. The challenge for Council and him as a developer, is to be able to deal with the issues of emotions in a thoughtful and sensitive way, while at the same time come forward with a plan that deals with the economic problem he's faced with as owner of the land. He hopes to make a sufficiently compelling argument that they haven't been immune to many of the considerations that have been articulated here today. After his comments, he hopes to persuade the City Council that they have attended to those concerns in a rational, methodical, and systematic fashion within the framework of the City's processes and policies. He will address the items raised regarding Tiger Woods and other options for the course, landscapes, agreements, traffic, 5-foot setbacks, including their journey in terms of how they have dealt with the issues, stating he hopes to defuse some of the emotions and focus more on facts. The fact of the matter is that it's true they purchased the course when it was bankrupt, and there's no doubt that when they did, the lands around all the courses, both the 18-hole course and the 9-hole course were barren. Property values in the area had significantly diminished and there was no sense of community to speak of and he could see a trend line that was heading downward, in terms of the demographics of that neighborhood. He said they weren't trying to portray themselves as 39 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING MARCH 22, 2018 saviors, but those were the facts in terms of what they inherited. They met with City staff prior to acquiring the product/project, and discussed the obligations that previous owners had not met. Even though they were not legally or technically obliged to honor them, they made a commitment to substantially comply and they did. In fact, they invested $4 million in the course and part of it went to accommodating the City on its need for water infrastructures and a new maintenance building. He said they honored those pre-existing agreements. They also worked with Coachella Valley Water District (CVWD) to take land out of turf, bring down water cost, and make better utilization of the land. He's not happy with the two photographs displayed by one of the speakers, and he can certainly say they are not reflective of what they would see. He encouraged Council to walk the course with him at any time to see the effort they have put into beautifying those lands that were taken out of grass and converted into a new format. He said they take pride in the work they did with the water district, which still continues. Because they were able to reestablish the golf course as a functioning entity, the neighborhood has been revitalized and property values have come to return. He thanked staff and Council's sensitivity around this, but because of the work they have done at the clubhouse, they have re-created a sense of community, noting people come there frequently on Friday and Saturday nights and engage. He believed there was a pulse in the community and it was due to all the work that has been done. He said the golf business is not an easy business, and he's not pretending that he didn't know it, but they thought they would give it a go. The reality of the golf course business is quite straightforward, you can go and golf now and see how much you can fetch for an hourly rate, and at this time of year it's probably around $70 or $75 a round. He said it averages over the course of the year to about $65, and at the same time, all the costs are the same whether you are looking at a championship course or an executive course. Your cost for labor, seed, fertilizer, and maintenance of the course are fairly fixed. Unfortunately, the product known as the 9-hole Executive Course cannot fetch more than $25 to $30 a round, and it becomes a drag on the business. The Championship Course can secure rates in the marketplace, but it is insufficient to subsidize the Executive Course, so he was faced with what to do. Faced with that reality, and because they didn't want the entire thing to collapse like it did in the past, they made a conscious decision to structure the fares to protect not only the Championship Course they own, but the view scapes and property values of the people that live there. They took a look at the 18-hole community as a whole as a part of this exercise in redevelopment. Quite frankly, they responded to one of the points Mayor Jonathan made when they met privately with them, which was to take a look at a trust or a foundation for other entities aimed at young people that would be interested in entering into some kind of an agreement for utilizing the golf course lands. Sadly, they were unable to arrive at any entity that would be open to it. Then they moved to the concept of soccer or frisbee golf, and 40 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING MARCH 22, 2018 options for kids golfing, but there was not a market for it. He wished to emphasize that they explored these options, because their starting position was to salvage the situation they inherited. Then City staff led them to consider a Lighting and Landscape District, which was to have the community vote on a $25 fee that would be applied to every household to subsidize the community and the golf course, but it didn't take off; in fact it was met with opposition. He noted they held open houses and had the community meet with them to comment. Sadly, the same leadership that opposed the $25 fee is now the leadership that is the nucleus of the Open Space Committee, and it has contaminated their discussions at a level where there was little value in pursuing that option. He moved onto the attribute of the project where they set up a Citizens Committee of those that wanted to be engaged to guide them in terms of how the project should be developed. The net result of that dialogue is that any type of development had to be very modest. In working with the Citizens Committee they came up with a proposal of 2.3 units per acre, which is very modest to the kind of density allowed on the site. He added that 50% of the area was set aside for community space, which was decided based on the input from the Citizens Committee, resident's comments, and input from City staff. They increased the setbacks beyond the minimum required by the City, because they listened to the comments made in terms of privacy. He said the setbacks are quite significant, and quite frankly, a useful precedence as Council tries to deal with other challenges with regard to the golf course. They listened on all fronts and made changes at the Citizens Committee level. The City then has a process, which requires they go through the Architectural Review Committee (ARC). At those first meetings, in terms of size and the emotions of the crowd, the Council Chamber was filled to capacity. They listened to what people had to say, resulting in three iterations with ARC, and in each step of the way attendance declined. The number of people at this meeting is far less, which he believed was due to them being attentive, and they have whittled down their concerns, resulting in a 6-0 vote in favor of the project at the ARC. Similar arguments were made at the Planning Commission, and a similar rebuttal was made to address the concerns, and the vote there was 4-1. They met with the HOA that covers part of the area, and they have withdrawn their objection and have advised the Council in writing to that affect. He believed they did a delicate but effective job of dealing with the political challenges they had. The dealt with the concern about protection of the 18-hole golf course, and they will and have provided a covenant to make sure it's protected properly this time around. He then sat down with his architects and attended to the concerns about viewscapes, because quite a few people are about it. For those residents that want to dialogue, they are looking at accommodations. They took the view that by having low density, it gave them the option to look at individual situations and sculpt the property accordingly, adding that the higher density proposal no longer existed. Therefore, by going to the 2.3 units per acres and talking to the citizens that 41 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING MARCH 22, 2018 wanted to talk, they looked at accommodations. Staff reported to him that 65% of the viewscapes that exist on that Executive Course are now protected as a result of the attentiveness to the comments received. However, they couldn't please all the people all the time, but if there is no dialogue, it will be very hard to come up with a consensus. For those that did dialogue, they were able to accommodate about 65% of them. With regards to the agreements raised today, if they are the same ones sent to him by staff, the recital states, "For so long as the owner operates a golf course on the property, owner agrees to operate and maintain according to the standards that are established." With regard to the requirement of maintenance, it states, "Owner covenants to maintain the golf course property in accordance with agreements, our covenants shall run in the land shall bind the owner and its successors, and shall remain in effect for so long as the property is used as a golf course facility." The operative words are "for so long," meaning that of course, there is some contemplation that at some point they may well be in the kind of situation that they are trying to deal with. On the issue of traffic, the Engineer's Report speaks to it. In response to the 5-foot setback, they offered that solution to the Committee of giving up land to give it to the property owner as a way to resolving that issue. In that vain, people said they didn't want to pay the property taxes and as a result that option was withdrawn. He made the remark that in good faith they consulted with residents on Utah Avenue and others. Further, they are not going to ask anyone to remove a pool, because they are going to be sensible, thoughtful, and logical about it. If a property owner abuts further than the 5-foot setback, and it's an intrusion on an existing fixture, it would just be irrational to ask someone to take it away. Throughout this whole process, they have tried to proceed in a thoughtful and methodical way with each of the entities the City asked that they appear before. Some in the audience here today were not part of those discussions, but he was willing to sit down and talk to them about it. He reiterated that the ARC and Planning Commission favorable votes of 6-0 and 4-1 is what has brought the project forward before the City Council. He asked the City Council to respect those processes and the efforts they have made since 2014 to deal with this matter in a responsible fashion. With no further testimony offered, Mayor Jonathan declared the public hearing closed. Mayor Jonathan noted there were comments made about Canadian residency, and he wanted to say that this City and this Valley embraces diversity, including Canadians whom the City happens to love, because they invest and live here, either part-time or otherwise, and they are always welcomed. 42 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING MARCH 22, 2018 Mr. Hargreaves, addressing the issue of agreements, stated the last time the City went through this process in the early 2000s, there were agreements entered into, including the operation and maintenance agreements that were referenced this evening. What happened is the development and developer subsequently went into bankruptcy. Prior to the bankruptcy, the City was diligent in enforcing that agreement, but part of the bankruptcy process is that the owner/debtor or the creditors have an opportunity to get out of certain agreements. He wasn't directly involved, but its his and the City Manager's recollection that during that process those particular agreements were void and no longer show up on the entitlement part. In any case, staff will have an opportunity between this meeting and the next reading, which would be the second reading of the Ordinance if approved this evening, to confirm if that is the case. He said the bankruptcy court, as part of its disposition, ended up voiding those agreements and a number of other agreements. Mayor Pro Tem Weber asked if the change of zone allowed for short-term rentals. Mr. Ceja answered no. Mayor Jonathan called a recess at 8:22 p.m. and reconvened the meeting at 8:31 p.m. Councilmember Harnik inquired about the Citizens Committee, asking what happened to it. MR. SIHOTA replied it was a committee that they constructed, in that they invited citizens in the area to participate. Honestly speaking, many participated, but then felt intimidated and it dissipated. He continued to meet with them informally to seek input, but intimidation was a factor and it dissolved, which is why three letters were read into the record this evening. Councilmember Harnik said she noticed solar in the artist renderings and asked if solar was going to be part of their service, what was the price point on the homes, the types of lighting that will be used, which was referenced by a speaker, and she inquired about the traffic study. MR. SIHOTA confirmed solar was part of the project, and the price point is from the low to mid $300,000, and the lighting is low -pedestrian lighting like bollard lighting, stating it is noted in the landscape plans. With respect to traffic, he said the traffic study results are in the information packet Council received, adding it was done at the request of staff. The issue of traffic was also raised at the ARC level, and the results have been submitted. Mayor Jonathan noted staff mentioned that the traffic study indicated impacts would be insignificant. 43 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING MARCH 22, 2018 Councilmember Harnik, addressing the comment on crime, said that Palm Desert is amongst the lowest in the County; in fact, in the nation. Also, she wanted more information about the legal documents mentioned, stating it was important for Council to have a good understanding of what they are. Additionally, she understands there is more than one pool that extends the property line. MR. MCFADDEN replied he intends to work with those specific instances and do lot -line adjustments if necessary, but they have already been integrated into the design. In most instances, they are in the high side of the property on the north side, so they can start/stop fencing details on each side of their improvements and not impact them at all. They also have some lower curved walls or retaining walls with terraces in them. He pointed out that the plan was to try to resolve it to everybody's benefit. MR. SIHOTA said the Owner's instruction to the consultant is to make sure accommodations are made in every case. Councilmember Harnik said everyone was aware that the golf business was changing and shifting, in that the City has its own two golf courses. However, Mr. Sihota cited some very dismal golf green fees, questioning if it was possible for the 18-hole course to continue to operate. MR. SIHOTA replied that on the numbers he cited, it's a doable proposition and he says it without any provocation. He said the course is very functional and they are not worried about the economic and financial viability of that golf course. Councilmember Harnik offered she understood when he said the 18-hole course couldn't carry the Executive Course, but wondered why he felt the 18-hole course will continue, asking if there was adequate round of golf. MR. SIHOTA answered yes, stating no one had a perfect crystal ball, but given all the variables they deal with on cost, including where the market is going, in general, they are seeing a pick up in the market with more Canadians coming here. He encouraged the City Council to look at the golf courses that do well, because their reviews are very good, which is how many base where they will go play golf. To ensure the financial viability remains, they need to continue to invest in the golf course in a way that you continue to get those kinds of positive comments from the citizens. The work they've done, in terms of landscaping and work done in the clubhouse, has generated a sense of community, which is part of the answer. He's proud of what they have been able to do with the 18-hole course, and if Council looks at the comments received, it will show why the business on that side is as good as it is. Also, when you take a look at what you can fetch for a round 44 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING MARCH 22, 2018 of golf, it becomes apparent immediately that the Executive Course cannot work. Additionally, they have not taken one dollar from the shareholders and any profit has been put back into the course and the employees. Mayor Jonathan said he heard Mr. Sihota say he was willing to record the Instructions of Commitment that would clearly outline what the obligations would be. MR. SIHOTA explained that the HOA came to him offering to withdraw their objection, but they wanted some assurance that the Championship Course would remain, and they did it in this context. They proposed that the Owner would protect the property values and integrity of these homes, by protecting 65% of the viewscapes on the Executive Course and 100% on the Championship Course. The HOA in return would get a commitment in the form of a covenant, which apparently was missing on both nines of the 18-hole golf course so as to be able to protect it in perpetuity. Given his view of where the market is going at this time, the desirability of a properly run 18-hole golf course, and given the long-term commitment to it, there is no hesitation on his part to develop verbiage to the satisfaction of the City, if that wasn't already the case. He said the HOA went out and hired their own lawyer, which is an expense, and some would say to both sides, but the work was very diligent and very detailed, in terms of the protection mechanisms. He offered to provide a copy so that the City Council can judge accordingly. Mayor Jonathan asked if the document committed the current owner to maintaining the course, but what happens if the current owner sells or the economy turns and is unable to operate the golf course. MR. SI HOTA replied that a prudent owner should be preparing for downturns in the market and setting aside money for it and/or taking it out of shareholders dividends, which is the approach they have taken. However, in terms of maintenance, he couldn't recall. Mayor Jonathan asked if the document committed the owner to operating the golf course as long as the property was owned by the owner. MR. SIHOTA answered yes, stating it was an Assigned Document, so they would sell it if he got to that point, but it's not within the range of contemplation. Councilmember Nestande said she heard Mr. Sihota was open to having a perimeter or not having it, and how would that get decided. In other words, what if 10 property owners say they want it and 90 say they don't, and would there be a vote. 45 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING MARCH 22, 2018 MR. SIHOTA explained they have listened to those that attended the public meetings, and some property owners wanted a wall to protect their privacy, while others want their property to be left open so they could take advantage of the viewscapes. Because of the range of opinions, his team came up with three options. He said the team will meet with property owners separately to try to resolve the issue. Councilmember Nestande commented that in moving forward there would have to be one option, because you couldn't have a partial wall and then a gap. MR. MCFADDEN agreed, stating he tried to illustrate that in his presentation, in that at some point they will have to yield to the intended design. They will query the owners, and if they have two people that want walls and one that doesn't, they will try to keep the three lots similar. It could change with offsetting and that kind of stuff, so when they make a change from masonry to fencing, they can set it back a little. He said they can make it look very nice, and they will try to appease as many people, but they will probably not be able to please everyone. Mayor Pro Tem Weber said she appreciated the City Attorney explaining to everyone that the bankruptcy voided past agreements. She noticed many speakers kept using the word perpetuity, but she didn't believe a City can force a business to continue to stay in business if they are losing a lot of money, stating it didn't seem logical to her. Mr. Hargreaves added that Council couldn't force a business to stay in business if it's losing money, because it goes bankrupt. It was recognized the last time when it dealt with this 15 years ago, in that you can't project the future and you can't lock down a piece of property forever. However, what you can do is require that if there are going to be those kinds of changes, there will be this kind of process, which is why Council is hearing this case. You can do conservation easements over land because they have been done, and there are mechanisms for conservation land in having it preserved. However, in a community that has these kinds of dynamics, you just don't know what's going to happen, so you have to have some flexibility and ultimately a certain amount of trust that elected officials will be able to react to whatever reality comes before them. Mayor Pro Tem said she thought it was more than fair for Mr. Sihota to come up with an idea for people to pay $25 for property owners to maintain their view, stating it seemed to her they should all get together and buy the golf course. She appreciated that Mr. Sihota stuck it out and for bringing this new project for Council's consideration. 46 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING MARCH 22, 2018 Councilmember Kelly offered that there are things that should be in black and white before providing a thumb up or down on this project. The project is very appealing in that its artistic, thoughtful, and consistent with the context and the desert, and she's appreciative that the density is less than the code requirements. However, there's a history here of people hearing assurances and having them dashed. Whether or not anyone here was responsible for that distrust, it's very important to make sure that the records this time around are abundantly clear before taking a vote. The following are things that struck her as essential: 1) Property Values - there is debate on whether this would be good or bad for property values, which is something a third - party expert could give an opinion about, and she would like to see it in a staff report. Frankly, if the assessment is that it's positive for a property owner, it might turn some people's heads; 2) Simulations of the project - she believed technology should be used to provide views from the major perspectives in the project. She appreciated Mr. McFadden acknowledging the south side of Section B is a challenge because of the elevation differential. Therefore, it would be helpful to simulate the actual impacts on views, because minimizing those impacts is something the City is entitled to expect; 3) summary of legal documents - she said there has been so much confusion about what legal commitments were made and what happened to those commitments, Council shouldn't act on the basis of verbal summaries at this stage. She said Council should have a staff report that summarizes the history of why certain past documents are not currently enforceable, if that.s the conclusion of the City, and it should be set forth as part of the record, so that from this point forward there is no mystery about it; 4) clarity on the promised amenities. Here again, because of past disappointments and expectations, in this instance, she would like to see the documentation to include clarity about some of the particulars of the promised amenities, and not refer to them loosely as exercise equipment. Her request was not to invoke lack of confidence in staff that would be administering these provisions, but rather based on past history of this community; 5) encroachment assurances - in instances where there is some encroachment into the proposed development, she heard assurances that this issue would be approached reasonably, so she would like to see that pinned down before taking a vote; and 6) include the covenant pertaining to the 18-hole course, because it has a nexus to what happens at the Executive Course. She said Council has heard concerns about traffic and loss of open space as it pertains to wildlife, so including that covenant in this record would speak to some of those concerns. Lastly, she couldn't say what her ultimate decision would be, but personally, she would favor a continuance until the issues mentioned can be addressed. Councilmember Kelly moved to, by Minute Motion, continue the matter to April 26, 2018, to address the above -mentioned six items. Motion was seconded by Harnik. 47 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING MARCH 22, 2018 Mayor Pro Tem Weber agreed with Councilmember Kelly, in that it's important to review the documents because of the history of this area. Councilmember Harnik concurred, stating a summary of the documents and their validity would be helpful, because she wanted confirmation before moving forward. She went on to say that the owner has hung in there for a long time, and she believed there were some very viable solutions, such as the $25 fee that would have helped sustain both golf courses, but the parties were not able to work through it. She thanked Mr. Sihota for his patience. Responding to question about who would be responsible for the simulation and would it take place at a study session, Councilmember Kelly replied it would be the Applicant's responsibility, and Mayor Jonathan added it could take place at a City Council meeting. Mayor Jonathan stated that in his mind, the choice before the City Council came down to a choice between the existing conditions, which very few people are fond of, and what the Applicant has proposed. Responding to comments that the City Council is to represent the residents. he said it's true, but it's also true that it has 50,000 residents, not 188. In forming policy decisions that affect the City and how it looks and functions moving forward, Council can't just represent the 188 residents, it has to keep 50,000 residents in mind. With regard to the project, prominently in his mind is the 2.3 units per acre, stating he couldn't think of another development that had such low density, and 50% open space, 35-foot minimum setbacks, and amenities that will be available to the general public. There was concern about property values, but he couldn't think of another project where Council factored that into the decision to the point that it requests a study, adding he wasn't sure it was appropriate to make such a request. It was clear in his mind, based on the level and quality of the development that property values would increase. If it's not a massive task for staff to make that determination, he would be okay with it, but not if it will require resources and money; he personally didn't think it was necessary. With respect to the view simulation software, he felt the City was placing a burden on the developer. He recalled an instance where he asked to have sticks erected to see how high a signage would be, and this Council said it was a burden to the developer and an inappropriate request. He believed the owner and the architect would be happy to accompany the Council to show them the view lines. He reiterated it was an unreasonable burden based on past precedence. Now with regard to the history of past documents, he didn't know why Council even wanted to go there, because legal counsel has informed the City Council they no longer exist and/or were thrown out in bankruptcy court. There was a lot of testimony about the past that was not relevant to where they are today. With respect to the exercise equipment, he said staff is entrusted to not grant approvals until they felt the right exercise equipment is installed. After 48 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING MARCH 22, 2018 hearing from the Applicant, he felt they were exceedingly generous with respect to the encroachment of property into the development, so he didn't need to hear more about it. The only item he felt justified a continuance, in his mind, was that there is a nexus between this application and the continued viability of the 18-hole golf course. Therefore, he agreed Council needed to look at that document and make it part of this application. Mr. Hargreaves asked what Council anticipated from obtaining the document, because the City had a maintenance and operations agreement the last time and it ended up being eliminated in bankruptcy. He said Council always has the ultimate authority. The property is zone Open Space and will remain open space until a subsequent Council changes it. It's also true for any document it enters into. Councilmember Kelly clarified she was not asking the City Attorney or staff to draw up something new. The Applicant indicated a covenant has already been agreed upon with the HOA, she's asking that whatever has been agreed upon to be included in the record. Mayor Jonathan explained that his perspective was not to add to the record, but to ensure it is properly recorded to avoid confusion in the future. He also wants to see the document, because he's hearing from the Applicant that there is a commitment by the current owner to continue to preserve it, not only as open space, but to continue operating it as a golf course. Mr. Hargreaves asked if Council wanted the City to be a party to the document with an independent ability to enforce it. Mayor Jonathan replied that if legal counsel felt the City's participation would ensure the veracity of the document, than yes, but if it stands on its own and to the satisfaction of Council that it would be enforceable, then there is no need. Certainly, the City Council will look to legal counsel to opine on it. Councilmember Nestande concurred with the Mayor's points, so if the motion fails, she would support his alternate motion. Councilmember Kelly recited the six items that were part of her motion, which she felt were necessary to soften the blow. Responding to question about the exercise equipment, she said the condition was on page 2 of the Resolution. The reason she raised this issue is because there are pictures that are rather ambitious and wondered if people should reasonably expect it or not. Also, some definition and inclusion as to how the encroachments, such as the swimming pools, are being resolved. Lastly, she would like to include the covenant that was just discussed. 49 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING MARCH 22, 2018 Councilmember Harnik asked staff if they had seen all the documents that were mentioned and/or produced this evening, because it was her impression that Council had not seen them all. Therefore, she believed the City needed to address them to confirm whether they may or may not be relevant. Mr. Stendell confirmed staff was aware of the documents that have been pointed out this evening. Mayor Pro Tem Weber agreed with the Mayor that the history of past documents was not necessary, but she only heard him mention one set of documents from 2004. However, other documents were raised, so she would like a summary of all the documents and their standing. Councilmember Harnik agreed that a report on property values was necessary nor did she think it was the developer's job to do a study of surrounding areas. Councilmember Kelly clarified she wasn't asking for a report from the developer, but from the City. Reason being is that a number of folks have submitted comments, stating they fear their property values will decline. They see the Applicant garnering some increased value, so their perception is that the City is making a zoning change, which shifts money value from them to the Applicant. Now whether that perception is accurate or inaccurate, it struck her as a very important thing for the City to study and to know in the context of making a zone change decision. Mayor Jonathan remarked that developers invest and take tremendous risks to create something, and to him it was such a false premise to say that a developer shifts wealth from neighbors to himself. Councilmember Kelly replied she wasn't offering that as her analysis or how she conceived of the world, but many property owners have expressed that perception. All she was saying, as the representatives, it struck her to study it to know whether it was an accurate/inaccurate perception, which seemed relative to the decision -making process. Councilmember Harnik pointed out that Council has seen that golf course go bankrupt at least three times and go through some terrible times, so undoubtedly it has hurt property values. However, she believed that when you fill open space with greenery, there will be an increase in property values. She went on to say she was not supportive of the computer simulations, but would appreciate going out to PDCC along with community members that wished to go so that everyone is seeing and hearing the same things. She needed a summary of the past documents to feel good about 50 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING MARCH 22, 2018 moving forward, including assurances on the encroachments. She wasn't clear on what the covenant would entail, but she would appreciate some clarification on the amenities such as the gardens, but not necessarily the precise exercise equipment. She commented that Council wants to give the members of this community every assurance possible. Lastly, she asked about the undergrounding, and asked if the developer could offer more diversity of the homes by providing more than two styles, which might make it more interesting, but she loved the linear look. Mayor Jonathan offered that he has been persuaded that a summary of past documents would be informative and useful, and howthe encroachments will be dealt with as well. He is also okay with a review and inclusion of the covenant for the 18-hole golf course. Responding to question about the covenant, he said the Applicant has agreed to record a covenant that will obligate him to operate the 18-hole golf course as long as he owned it. He also heard that it may even transfer to a buyer. He would like to see the document and getting an opinion from legal counsel, because part of what is driving this application to convert a former golf course into a residential project is the ability to continue to operate the 18-hole golf course. Additionally, residents have expressed their concerns to him about not only the loss of the Executive Course, but the potential loss of the 18-hole golf course. Therefore, if the proposed project guarantees the continuation of the 18-hole golf course, it's relevant. Councilmember Nestande pointed out that Mr. Sihota said the covenant would be assigned. Responding to comments, Councilmember Kelly clarified she wasn't asking for a description of each and every piece of equipment, but some qualitative description of what's expected that gives Director of Community Development the ability to enforce. Councilmembers continued to negotiate the merits of the motion and came to a conclusion. Councilmember Kelly amended her motion to continue the matter to the meeting of April 26, 2018, and directed staff to provide the following: 1) Summary of the named past legal documents; 2) general confirmation of the amenities to be provided; 3) assurances for encroachments; 4) review by the City Attorney of the 18-hole golf course covenant document between the Applicant and the HOA. Motion was seconded by Harnik and carried by a 5-0 vote (AYES: Harnik, Kelly, Nestande. Weber, and Jonathan; NOES: None). 51 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING MARCH 22, 2018 XX. ADJOURNMENT With City Council concurrence, Mayor Jonathanned the meeting at 9:22 p.m. ATTEST: R HE LE D.-KM-SE ITY CLERK CITY OF PALM DESERT, CALIFORNIA SABBY NATFIAN, MAYOR 52