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HomeMy WebLinkAboutPrelim Minutes - City 06/24/2004PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING THURSDAY, JUNE 24, 2004 CIVIC CENTER COUNCIL CHAMBER I. CALL TO ORDER - 3:00 P.M. Mayor Spiegel convened the meeting at 3:00 p.m. II. ROLL CALL Present: Councilmember Jean M. Benson Mayor Pro Tem Buford A. Crites Councilman Jim Ferguson Councilman Richard S. Kelly Mayor Robert A. Spiegel Also Present: Carlos L. Ortega, City Manager/RDA Executive Director David J. Erwin, City Attorney Sheila R. Gilligan, ACM for Community Services Justin McCarthy, ACM for Redevelopment Stephen Y. Aryan, Assistant to the City Manager Rachelle D. Klassen, City Clerk Amir Hamidzadeh, Director of Building & Safety Paul S. Gibson, Director of Finance/City Treasurer Teresa L. La Rocca, Director of Housing Michael J. Errante, Director of Public Works David Yrigoyen, Director of Redevelopment Steve Smith, Planning Manager Richard Twedt, Public Arts Manager III. ORAL COMMUNICATIONS - A (CLOSED SESSION ITEMS) None PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 24, 2004 IV. ADJOURN TO CLOSED SESSION Request for Closed Session: Conference with Real Property Negotiator pursuant to Government Code Section 54956.8: 1) Property: Lease Property - Parkview Professional Office Complex - 73710 Fred Waring Drive, Suite No. 102, Palm Desert Negotiating Parties: Agency: Carlos L. Ortega/Paul S. Gibson/City of Palm Desert Property Owner: City of Palm Desert Other Parties: Cove Communities Service Commission Under Negotiation: x Price x Terms of Payment 2) Property: Lease Property - Parkview Professional Office Complex - 73710 Fred Waring Drive, Suite No. 222, Palm Desert Negotiating Parties: Agency: Carlos L. Ortega/Paul S. Gibson/City of Palm Desert Property Owner: City of Palm Desert Other Parties: County of Riverside/Supervisor Roy Wilson Under Negotiation: x Price x Terms of Payment NOTE: THE FOLLOWING ITEM OF PROPERTY NEGOTIATION WAS LISTED ON AN AGENDA ADDENDUM POSTED AT LEAST 72 HOURS PRIOR TO THE MEETING. 3) Property: Lease Property - 42-305 Washington Street, Palm Desert Negotiating Parties: Agency: David J. Erwin/City of Palm Desert Property Owner: FKC Palm Desert Parcel 1 LLC Under Negotiation: n/a Price x Terms of Payment Conference with Legal Counsel regarding existing litigation pursuant to Government Code Section 54956.9(a): a) City of Cerritos, et al., v. State Board of Equalization, Alameda County Superior Court b) City of Palm Desert v. Michaud, Riverside County Superior Court Case No. INC 041793 Conference with Legal Counsel regarding significant exposure to litigation pursuant to Government Code Section 54956.9(b): Number of potential cases: 2 2 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 24, 2004 Upon motion by Benson, second by Crites, Mayor Spiegel adjourned the meeting to Closed Session at 3:02 p.m. He reconvened the meeting at 4:00 p.m. V. RECONVENE REGULAR MEETING - 4:00 P.M. A. REPORT ON ACTION FROM CLOSED SESSION. None VI. PLEDGE OF ALLEGIANCE - Mayor Robert A. Spiegel VII. INVOCATION - Councilmember Jean M. Benson VIII. ORAL COMMUNICATIONS - B At the reconvening of the meeting, Mayor Spiegel announced that as of one week from today, the City would grow by about 4,000 people — July 1 was the official date of the Palm Desert Greens and Suncrest Country Clubs' annexation into the City. MS. VERNA SMITH, MS. EMMA DOE, AND MS. DOTTIE MILLS, residents of the area to be annexed, each addressed the City Council in appreciation of its efforts that made their annexation to Palm Desert possible. They introduced some of the other residents of the area also in attendance, all of whom looked forward to becoming part of Palm Desert after a long process. MS. SANDRA KELEMAN, 41-612 Aventine Court, Palm Desert, spoke to the City Council about her concerns for the noise from construction on the project that was immediately adjacent to her home, especially when it now began at 6:00 a.m. She said her neighborhood was comprised of many elderly residents who were impacted by the early hour when noise from trucks and heavy equipment began each day. She hoped her coming forward would help alert City officials to the concern; she wasn't sure whether it was a local or a State regulation that permitted this activity and wondered whether something could be done to modify the daily starting time. Mayor Spiegel asked Ms. Keleman to provide her information to Mr. Ortega for follow-up. MR. MICHAEL BRACKEN, 40-112 Sagewood Drive, Palm Desert, said he'd been pleased to represent his alma mater as Tournament Director of this year's California State University, San Bernardino, Scholarship Golf Tournament held at BIGHORN on May 3. He said a full field participated, raising $49,000 for college scholarships for CSUSB's Palm Desert Campus. Because of their appreciation for the City's sponsorship, he presented Mayor Spiegel and the City Council with a framed copy of the Desert Sun ad that thanked all sponsors on May 19. 3 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 24, 2004 IX. AWARDS, PRESENTATIONS, AND APPOINTMENTS A. PRESENTATION TO RECOGNIZE CITY OF PALM DESERT EMPLOYEES FOR EXCEPTIONAL SERVICE — JUNE 2004. On behalf of the City Council, Mayor Spiegel and Mr. Ortega recognized the following employees for outstanding work: Lauri Aylaian, Tony Bagato, Jay Niemczak, Deborah Schwartz, Richard Twedt, Marco Zamudio, and Ernie Owens. X. CONSENT CALENDAR A. MINUTES of the Regular City Council Meeting of June 10, 2004. Rec: Approve as presented. B. CLAIMS AND DEMANDS AGAINST THE CITY TREASURY - Warrant Nos. 238 and 241. Rec: Approve as presented. C. CITY COMMITTEE AND COMMISSION MEETING MINUTES. 1. Housing Commission Meeting of May 12, 2004. 2. Investment & Finance Committee Meeting of April 28, 2004. 3. Public Safety Commission Meeting of May 12, 2004. 4. Technology Committee Meeting of April 6, 2004. Rec: Receive and file. D. REQUEST FOR AUTHORIZATION to Dispose of Paper Records from the Department of Building & Safety that Have Been Digitized (December 2003; January, February, March, April, and May 2004). Rec: Waive further reading and adopt: 1) Resolution No. 04-53 - for December 2003 Records; 2) Resolution No. 04-54 - for January 2004 Records; 3) Resolution No. 04-55 - for February 2004 Records; 4) Resolution No. 04-56 - for March 2004 Records; 5) Resolution No. 04-57 - for April 2004 Records; 6) Resolution No. 04-58 - for May 2004 Records. 4 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 24, 2004 E. REQUEST FOR APPROVAL of Agreement for the City's Participation in Trauma Intervention Programs, Inc. (TIP) (Contract No. C22890). Rec: By Minute Motion, approve the subject agreement between the City of Palm Desert and Trauma Intervention Programs, Inc., authorizing the City's participation in TIP for FY 2004/05 in the amount of $5,082 ($0.12 per resident). F. REQUEST FOR AUTHORIZATION to Purchase New Postage/Mailing System (Contract No. C22900). Rec: By Minute Motion, authorize staff to negotiate a contract with Pitney Bowes for a new postage/mailing system in the amount of $24,459 plus sales tax and annual maintenance. G. REQUEST FOR AUTHORIZATION to Purchase New AS400 Hardware and Software for the City's Computer System (Contract No. C22910). Rec: By Minute Motion, authorize: 1) Staff to negotiate a contract with Logical Design, Inc., Mesa, Arizona, in the amount of $50,000 to provide a new AS400 computer system; 2) appropriate $50,000 from General Fund Reserves for the purchase of a new IBM iSeries (AS400) computer system. H. REQUEST FOR AWARD OF CONTRACT for Sweeping Services for City -maintained Parking Lots (Contract No. C22770). Rec: By Minute Motion: 1) Award the subject contract to M & M Sweeping, Inc., Thousand Palms, California, in the amount of $9,120; 2) authorize the Mayor to execute the contract — funds are available in the FY 2004/05 accounts for annual services. I. REQUEST FOR AUTHORIZATION to Accept Street Sweeping Services for State Highways in Palm Desert (Contract No. C22560A). Rec: By Minute Motion, accept street sweeping services by CleanStreet, Gardena, California, for the State Highways in Palm Desert at a rate of $28.70 per curb mile. 5 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 24, 2004 J. REQUEST FOR AWARD OF CONTRACT for Landscape Design for the Country Club Median East of Tamarisk Row Drive to Oasis Club Drive (Contract No. C22920, Project No. 713-04). Rec: By Minute Motion: 1) Award the subject contract to David Volz Design, La Quinta, California, in the amount of $12,520; 2) authorize a 10% contingency for the project in the amount of $1,252; 3) authorize the Mayor to execute said agreement — funds are available in Account No. 400-4614-433-4001. K. REQUEST FOR APPROVAL of the First Amendment to Agreement for Contract Plan Review Services with California Code Check (Contract No. C21441B). Rec: By Minute Motion, approve the First Amendment to the Agreement for Contract Plan Review Services with California Code Check, Newbury Park, California, extending the term of services for one year — July 1, 2004, to June 30, 2005 — funds are available in Account No. 110-4420-422-3010. L. REQUEST FOR APPROVAL of the First Amendment to Agreement for Contract Plan Review Services with Esgil Corporation (Contract No. C21441A). Rec: By Minute Motion, approve the First Amendment to the Agreement for Contract Plan Review Services with Esgil Corporation, San Diego, California, extending the term of services for one year — July 1, 2004, to June 30, 2005 — funds are available in Account N o . 110-4420-422-3010. M. REQUEST FOR APPROVAL of an Increase in the Monthly Retainer for Legislative Lobbying Services (Contract No. CO2996). Rec: By Minute Motion, approve a $400/month increase (from $2,600/month to $3,000/month) in the retainer paid to Joe A. Gonsalves & Sons, Inc., for legislative lobbying services — funds are available in Account No. 110-4112-410-3090. N. REQUEST FOR APPROVAL of the 2005/06 El Paseo Exhibition (Contract Nos. C22930A-R). Rec: By Minute Motion: 1) Approve of the 2005/06 El Paseo Exhibition, as presented; 2) authorize the Mayor to execute contracts with the respective artists or their representatives for the Exhibition — funds are allocated in the FY 2004/05 Budget, Account No. 436-4650-454-4002. 6 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 24, 2004 Upon motion by Ferguson, second by Kelly, the Consent Calendar was approved as presented by a 5-0 vote of the Council. XI. CONSENT ITEMS HELD OVER None XII. RESOLUTIONS A. RESOLUTION NO. 04-59 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, EXTENDING THE DATE OF ITS CABLE TELEVISION FRANCHISE AGREEMENT WITH TIME WARNER CABLE FROM JUNE 30, 2004, THROUGH JUNE 30, 2005. Mr. Ortega noted the staff report and recommendation in the packets. Councilman Kelly moved to waive further reading and adopt Resolution No. 04-59. Motion was seconded by Benson and carried by a 5-0 vote. B. RESOLUTION NO. 04-60 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, INITIATING PROCEEDINGS TO VACATE A PUBLIC STREET KNOWN AS LOT A (FRANKONIA COURT) OF PARCEL MAP NO. 28448-1 UNDER PROVISIONS OF PART 3, DIVISION 9, OF THE STREETS & HIGHWAYS CODE, AND FIXING A TIME AND PLACE FOR THE HEARING OF ALL PERSONS INTERESTED IN OR OBJECTING TO THE PROPOSED ABANDONMENT (J. W. Design & Construction, Inc., Applicant). Mr. Ortega clarified that this action by itself did not vacate the street. Instead, it would set a public hearing to consider said vacation. Councilman Kelly moved to waive further reading and adopt Resolution No. 04-60. Motion was seconded by Crites and carried by a 5-0 vote. XIII. ORDINANCES For Introduction: None For Adoption: None 7 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 24, 2004 XIV. NEW BUSINESS A. REQUEST FOR APPROVAL OF ACTIONS RELATIVE TO THE 2004 GENERAL MUNICIPAL ELECTION TO BE HELD IN THE CITY OF PALM DESERT ON TUESDAY, NOVEMBER 2. Mr. Ortega noted the staff report and recommendation in the packets. Mr. Erwin stated that Resolution No. 04-61, a proposition to be submitted to the voters, needed to be clarified to reflect that "shall the City of Palm Desert Ordinance No. 679, passed in 1992, be ratified, which increased the Transient Occupancy Tax (the hotel bed tax) from eight percent (8%) to nine percent (9%), be approved?" Mayor Pro Tem Crites moved to waive further reading and: 1) Adopt Resolution No. 04-61, calling and giving notice of the holding of a General Municipal Election to be held on Tuesday, November 2, 2004, for the election of certain officers as required by the provisions of the Laws of the State of California and the Charter of the City of Palm Desert, and for the submission to the voters a question relating to Transient Occupancy Tax, as amended to read: "Shall the City of Palm Desert ratify an ordinance passed in 1992, its Ordinance No. 679, which increased the Transient Occupancy Tax (the hotel bed tax) from eight percent (8%) to nine percent (9%)?"; 2) Adopt Resolution No. 04-62, requesting the Board of Supervisors of the County of Riverside to consolidate a General Municipal Election to be held on Tuesday, November 2, 2004, with the Statewide General Election to be held on the date pursuant to § 10403 of the Elections Code; 3) Adopt Resolution No. 04-63, adopting regulations for candidates for elective office, pertaining to candidates' statements submitted to the voters at an election to be held on Tuesday, November 2, 2004; 4) Adopt Resolution No. 04-64, providing for the filing of rebuttal arguments for City Measures submitted at Municipal Elections; 5) Adopt Resolution No. 04-65, setting priorities for filing a written argument regarding a City Measure and directing the City Attorney to prepare an impartial analysis; 6) Pass Ordinance No. 1071 to second reading, pending majority vote of the electors of the City of Palm Desert at its General Municipal Election to be held Tuesday, November 2, 2004. Motion was seconded by Kelly and carried by a 5-0 vote. B. REQUEST FOR APPROVAL OF THE PRESIDENTS' PLAZA I (EAST/WEST) BUSINESS IMPROVEMENT DISTRICT BUDGET FOR FISCAL YEAR 2004/05. Mayor Pro Tem Crites moved to waive further reading and adopt: 1) Resolution No. 04-66, approving the Presidents' Plaza I Business Improvement District Budget for FY 2004/05; 2) Resolution No. 04-67, ordering the levy and collection of assessments for the Presidents' Plaza I Property and Business Improvement District for FY 2004/05. Motion was seconded by Kelly and carried by a 5-0 vote. 8 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 24, 2004 C. REQUEST FOR APPROVAL OF THE PRESIDENTS' PLAZA III BUSINESS IMPROVEMENT DISTRICT BUDGET FOR FISCAL YEAR 2004/05. Councilman Ferguson noted that he would be abstaining from this item because his office is within that assessment district. Councilmember Benson moved to waive further reading and adopt: 1) Resolution No. 04-68, approving the Presidents' Plaza III Business Improvement District Budget for FY 2004/05; 2) Resolution No. 04-69, ordering the levy and collection of assessments for FY 2004/05. Motion was seconded by Crites and carried by a 4-0-1 vote, with Councilman Ferguson ABSTAINING. D. REQUEST FOR APPROVAL OF AGREEMENT FOR MONTHLY PRINTING OF THE CITY'S BRIGHT SIDE NEWSLETTER (CONTRACT NO. C22940). Councilman Ferguson moved to, by Minute Motion, approve the agreement with Coachella Valley Printing Group, Indio, California, for monthly printing of the Bright Side newsletter in the amount of $4,770.64/month for FY 2004/05 and $4,995/month for FY 2005/06. Motion was seconded by Kelly and carried by a 5-0 vote. E. REQUEST FOR APPROVAL OF AN AGREEMENT FOR PRINTING OF THE PALM DESERT TABLETOP BOOK (CONTRACT NO. C22950). Councilman Ferguson moved to, by Minute Motion, approve the agreement with Papillon Graphics, Palm Desert, California, for printing of 7,500 newly created Palm Desert Tabletop Books in the amount of $69,719 — funds are available in the FY 2003/04 Budget for this purpose. Motion was seconded by Kelly. Mayor Spiegel asked for the price of these books. Mrs. Gilligan noted that two versions would be printed, paperback and hard bound. Marketing Manager Kristy Kneiding added that the final price had not yet been determined, although it would be reasonable for visitors to purchase. She said it was anticipated to be approximately $20. Mayor Spiegel asked whether the books would be discounted for residents of Palm Desert, and Ms. Kneiding responded that this could be done. Upon question by Mayor Pro Tem Crites as to how far along the books were in the design process, Ms. Kneiding responded that they were currently in the design process, and the printing contract needed to be approved in order to start scanning the photos that will go into the book. She added that the book was probably 90% complete as far as design, although they were still 9 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 24, 2004 finalizing photo choices. Upon further question, she said staff would be happy to have Council review the final draft and provide input prior to printing. Mayor Spiegel called for the vote. The motion carried by a 5-0 vote. XV. CONTINUED BUSINESS A. REQUEST FOR APPROVAL OF THE COMMISSIONING OF AN ARTIST TO CREATE A MURAL FOR THE PALM DESERT LIBRARY COMMUNITY ROOM (CONTRACT NO. C22080) (Continued from the meetings of May 13, and June 10, 2004). Mr. Ortega noted the staff report and recommendation in the packets. Mayor Pro Tem Crites moved to, by Minute Motion, concur with the recommendation of the Art In Public Places Commission to approve a $1,000 honorarium each for the three artist finalists to provide further design refinement — funds are available in Account No. 436-4650-454-3092. Motion was seconded by Benson and carried by a 5-0 vote. XVI. OLD BUSINESS A. REQUEST FOR APPROVAL OF AN INCREASED SCOPE OF WORK FOR THE PROJECT OF DESIGNING THE PORTOLA AVENUE, COUNTRY CLUB DRIVE, AND COOK STREET STORM DRAIN AND TRAFFIC SIGNAL IMPROVEMENTS TO INCLUDE MONTEREY AVENUE STORM DRAIN (CONTRACT NO. C22300, PROJECT NO. 508-04). Mr. Ortega noted the staff report and recommendation in the packets. Councilman Ferguson moved to, by Minute Motion: 1) Increase the scope of the subject contract with Harris & Associates, Irvine, California, to include the engineering hydrology study for the Monterey Avenue Storm Drain between Fred Waring Drive and the Whitewater Channel; 2) appropriate $82,830 from Unobligated Fund 420 to the project account; 3) approve an increase of the subject contract in the amount of $75,300; 4) set aside a 10% contingency for same. Motion was seconded by Crites and carried by a 5-0 vote. 10 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 24, 2004 B. CONSIDERATION OF AMENDED LEGISLATIVE DOCUMENTS AS THEY RELATE TO THE APPROVAL OF AN AMENDMENT TO THE HILLSIDE PLANNED RESIDENTIAL DISTRICT, PALM DESERT MUNICIPAL CODE CHAPTER 25.15, AND THE WEST HILLS SPECIFIC PLAN Case Nos. GPA 03-04 and ZOA 02-06 (City of Palm Desert, Applicant). Following is a verbatim transcript of discussion and testimony for the subject item. Kgy• RAS Robert A. Spiegel, Mayor BAC Buford A. Crites, Mayor Pro Tem SS Steve Smith, Planning Manager JF Jim Ferguson, Councilman DJE David J. Erwin, City Attorney JMB Jean M. Benson, Councilmember RDK Rachelle D. Klassen, City Clerk RAS Again, under Old Business, "Consideration of Amending Legislative Documents as They Relate to the Approval of an Amendment to the Hillside Planned Residential District, Palm Desert Municipal Code Chapter 25.15, and the West Hills Specific Plan." The staff report, please. BAC I will abstain on this item. RAS All right, then you're going to have to leave the room. BAC Well I will. RAS Okay. If there's anything on the agenda, just for (inaudible) that affects anybody on the Council, and it just so happens that our Mayor Pro Tem lives in the area that we're talking about, they not only have to abstain, they have to leave the room. That's not our idea, that's Sacramento's idea, so we're just doing what...(inaudible) May I have a staff report, please. SS Good afternoon. You have in your packet a revised ordinance as...and resolution as you had directed at your meeting of June the 1st or June the 10`h. It does incorporate the 4,000 square feet of dwelling, accessory structure, and garage provision; maximum 10,000 square feet of pad area, maximum of 3,000 square feet of driveway area, and then it provides for an exception to all of the above where the applicant can show that they're still maintaining the purpose of the zone district. So, with that, I would conclude and be prepared to respond to questions. RAS Do you have any questions? 11 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 24, 2004 JF Nope. DJE Mr. Mayor, if you would, and I have not had an opportunity to talk to Mr. Smith, but did look at the amendments again, and I would ask the Council's consideration of perhaps being a little more specific with regard to the renaturalization and the exception. And, if I may, just make a comment on how I would like to see it read. When we're talking about the renaturalization, that "...all cuts, fills, or other areas temporarily disturbed shall be renaturalized, colored, and landscaped to blend with the adjacent natural terrain to the satisfaction of the City." I would like to have whoever's going to make that judgment be the City, and that the renaturalized areas may, in the discretion of the Council, not be considered disturbed so long as they are approved as blending with the natural terrain — I'd like to add that to the end. And in addition on the exception, when we're talking about taking into consideration any and all circumstances, I'd like to add, "...such as viewshed, topography, and the profiles of any structures and colors." I think that, perhaps, will be a little more specific than we have, and I think really address the concerns that are talked about in the preamble of this ordinance. RAS Thank you. JF Could we, as to the first point, I got a revised ordinance from Mr. Smith, and I think he put language in there that, "...renaturalization shall occur and not be considered disturbed at the discretion of the Council." And as to the second one, can we just add those magic words, "including, but not limited to"? DJE Yes. JF Okay. RAS Other comments from Council? JMB I'd move approval of Resolution No. 04-43, with the designated changes. RAS With those changes that were designated by Councilman Ferguson and our attorney, Dave Erwin? JF And I will second with a thank you to Mr. Smith for being so diligent with this. RAS Is there anyone in the audience that wishes to address the Hillside Ordinance? (Pause) Seeing no one, please vote. JMB Do we need a separate motion on passing 1-0-4-6-A, then? RDK No, they're recommended together, so it's up to you...if you want different... 12 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 24, 2004 RAS They're recommended together. JMB All right. RAS Please vote. RDK Motion carries 3-1, with Councilman Kelly voting NO, Mayor Pro Tem Crites ABSENT. XVII. PUBLIC HEARINGS A. CONSIDERATION OF A CITY COUNCIL REQUEST FOR REVIEW OF THE PLANNING COMMISSION'S APPROVAL OF A REQUEST BY NEXTEL COMMUNICATIONS AND CINGULAR WIRELESS TO CONSTRUCT A 75-FOOT HIGH MONOPINE WIRELESS TELECOMMUNICATIONS TOWER WITH TWO ADJACENT EQUIPMENT SHELTER BUILDINGS WITHIN A 25-FOOT X 60-FOOT FENCED AREA — PROJECT SITE IS LOCATED 300 FEET SOUTH OF COUNTRY CLUB DRIVE AND 1,300 FEET EAST OF EL DORADO DRIVE, AND IS PART OF A SOUTHERN CALIFORNIA EDISON SUBSTATION Case No. CUP 04-01 (Nextel Communications and Cingular Wireless, Applicants) (Continued from the meetings of April 8, and May 27, 2004). Mayor Spiegel declared the public hearing open and invited testimony from the audience. No testimony was offered. Councilman Ferguson moved to, by Minute Motion, continue matter to the meeting of August 26, 2004. Motion was seconded by Kelly and carried by a 5-0 vote. 13 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 24, 2004 B. REQUEST FOR APPROVAL OF A CHANGE OF ZONE FROM OPEN SPACE TO R-1, 9000 FOR 41 LOTS AROUND THE GOLF COURSE PERIMETER; A CHANGE OF ZONE FROM OPEN SPACE TO PR-6 FOR 9.68 ACRES IN THE AREA OF THE EXISTING DRIVING RANGE; A TENTATIVE TRACT MAP TO CREATE 95 RESIDENTIAL LOTS; A PRECISE PLAN; A DEVELOPMENT AGREEMENT, WHICH WILL PROVIDE FOR, AMONG OTHER MATTERS, MODIFIED DEVELOPMENT STANDARDS AND PROVISIONS REQUIRING THAT GOLF COURSE IMPROVEMENTS BE CARRIED OUT IN A TIMELY MANNER; AND A NEGATIVE DECLARATION OF ENVIRONMENTAL IMPACT AS IT RELATES TO THE ABOVE — ALL PROPERTY BEING A PORTION OF SECTION 13 AND 14, T5S R6E (PALM DESERT COUNTRY CLUB) Case Nos. C/Z 04-01, TT 31836, PP 04-01, and DA 04-01 (PDCC Development, LLC, and Dahoon Investment Company, Inc., Applicants) (Continued from the meetings of May 13, and June 10, 2004). Planning Manager Steve Smith stated that at the May 13' meeting, Council outlined six issues to be addressed: Planning Commission comment on relocation of the maintenance facility. This was done June 1, 2004, at which time Mr. Case, the applicant, described the project and responded to questions. Teresa Pawley, an area resident, spoke in opposition. Staffs report summarized Commissioner comments, and the Minutes distributed to Council provided greater detail. Essentially, Planning Commission supported the relocation and felt the new location would reduce traffic through the residential community. Fiscal analysis of the project. This had been done and would be reported by Mr. McCarthy. Time line on the project. The project time line was provided in the staff report and showed the project beginning in September 2004 and concluding in July 2006. Floor plan of the remodeled clubhouse. The plan was provided in the packets and showed cart storage for 72 carts and expansion of the restaurant facility with an outdoor patio. Discussion on the open space easement. This would be covered by in Mr. McCarthy's report and also by the City Attorney. Installation of story poles. These were installed, and Council had the opportunity to view them. 14 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 24, 2004 He noted that at the May 13th hearing and in correspondence received subsequently, reference was made to a recent court case involving Monticello Water District. That case was reviewed by staff, and it was felt this project was not analogous to the M.W.D. project. View impacts in this project will not be significant, and with the improvements on the golf course, the views of the golf course should be improved. With regard to Tennessee, there was a request to relocate a lot, and the applicant had agreed to do so, and Lot 71 would be moved north about 20 feet, with the cart path located to the south of Lot 71. He noted that staff had distributed revised resolutions and ordinances to the Council relating to the environmental documentation, the tentative map, the precise plan, and the development agreement. In addition, staff distributed an acoustical analysis prepared by Gordon Bricken & Associates, which examined noise impacts associated with vehicles entering and exiting the maintenance facility. Mr. Smith suggested a series of additional conditions to be added to the precise plan resolution as follows: Condition #17 — "that routine movement of golf course maintenance equipment in and out of the new golf course maintenance facility shall be via a path system to be established between the 13' and 14th fairways". He said the idea was to keep the movement of vehicles away from the homes on California and Michigan. Condition #18 — "that lot 71 be relocated 20 feet to the north" Condition #19 — "that the developer shall provide appropriate fencing in the rear yard of dwelling at 77-190 Indiana" Condition #20 — "that the access driveway to the maintenance facility be expanded by ten feet to the east into the park and that any excess land not needed for the driveway be offered to the property owner to the west of the driveway" Condition #21 — "that pursuant to the noise mitigation measures identified in the acoustical analysis prepared by Gordon Bricken & Associates, the developer shall provide an eight -foot high wall along the west side of the access driveway and that trash trucks serving the facility shall be limited to the house of 7:00 a.m. until 5:00 p.m." Condition #22 — "that four window areas in the dwelling west of the access driveway, known as 77-880 California, be dual glazed" 15 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 24, 2004 Mr. Smith added that staff would like to clarify that the last sentence in Public Works Condition #2 should read "the maintenance of the retention areas shall be by the golf course owner/developer." He noted that questions had been raised with respect to the traffic study, and Mr. Diercks with Public Works staff was prepared to discuss that if Council so wished. With respect to the development agreement, he said the City Attorney's office and staff had continued to work on issues as they came up, and the City Attorney would describe some recent changes in the language of the agreement. Assistant City Manager for Redevelopment Justin McCarthy reviewed the fiscal analysis of the project, noting they had challenged and negotiated with the developer to identify approximately $1.8 million in increases in the capital improvement budget. These were either increases in items or clarification of items staff felt needed to be done as well as a more realistic assessment of certain improvements that needed to be done with respect to the golf course proper, the new or proposed maintenance facility, and the clubhouse. Staff recommended that the existing $5 million budget be increased to approximately $6.823 million, and that was incorporated into the development agreement. With regard to operational feasibility, staffs basic assessment was that if the improvements were made as proposed, this would be considered a very good, moderately priced golf course. It was also felt there was a need in the marketplace for a good, quality golf course that would be moderately priced. Staff also recommended that if this is approved and a maintenance agreement is subsequently negotiated, consideration should be given for some special provisions in terms of identifying long-term budgetary items with respect to maintenance of the golf course at approximately $1.1 million to be escalated and slightly increasing the proposed capital improvement reserve budget number. Staff felt these would be necessary to ensure the long-term maintenance of the facility. One issue that had arisen was the essentiality of the proposed Conservation Easement. Staff looked at that from a financial perspective and felt that easement was absolutely essential for the financial feasibility of this project. He said the Redevelopment staff, in conjunction with the developer, had prepared a new Exhibit "C", the golf course renovation summary, which had been provided to the City Attorney for incorporation in the development agreement. This new Exhibit "C" was much more detailed and specific with respect to the improvements that are supposed to be done on the project (golf course renovation, clubhouse, and maintenance facility). City Attorney Dave Erwin stated that the Conservation Easement was a type of document that is even more restrictive than the City's zoning of open space. It is a permanent document and is in perpetuity, and it is extremely difficult to change. This easement would permanently restrict the use of the land and would provide it as open space. It must be held by a qualified 16 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 24, 2004 organization, and the Internal Revenue Code was very specific as to the types of organizations that could qualify to hold it, and it must be exclusively for conservation purposes on a qualified real property interest. He said this particular golf course does qualify, and it was his understanding that the developer intended to do this, and he felt it was a decided benefit. He added that he felt it should be the choice of the developer to place such an easement; while the City would like to see the easement, he would not recommend that the Council require it because it would create a problem for them in so doing. With regard to the Exhibit "C" mentioned by Mr. McCarthy, it was his understanding it was satisfactory to the developer. In addition, Exhibit "D" showed the improvements and the $6.823 million expenditures. From that standpoint, he felt the developer had complied with the recommendations. He said there was a request in the latest development agreement that had been put forth about providing some form of bonding for Phase I. He was not prepared to recommend that but said this was something he was willing to discuss with the developer. Other than that, he was satisfied with the other modifications that had been made and that were included in the document. Mayor Pro Tem Crites asked if the maintenance agreement was something that would be negotiated with the developer. Mr. McCarthy agreed and said staff had identified a 60-day window in which to negotiate that and bring it back for consideration by the Council. Mayor Pro Tem Crites asked if that maintenance agreement had to ultimately be approved before the project could do anything. Mr. McCarthy responded that that was his understanding. Mr. Erwin added that the terminology said the development agreement was not in effect until the maintenance agreement was done and approved by the Council. Mayor Pro Tem Crites asked if the negotiation of that would ensure funds for the long-term care/maintenance/operation, etc. of the golf course, and Mr. Erwin agreed. Mr. McCarthy added that, assuming that the enterprise works as proposed and as staff believed it would, the developer would earmark funds within its budget for those purposes. Upon question regarding enforcement mechanism on that maintenance agreement, Mr. McCarthy responded that he did not believe that had been negotiated or contemplated yet. Mr. Erwin added that there would be some kind of enforcement mechanism. Mayor Pro Tem Crites thanked City staff, the developer, and citizens for their hard work on this project and said he felt this was a significantly improved project. 17 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 24, 2004 Mayor Spiegel declared the public hearing open and invited testimony in FAVOR of or in OPPOSITION to this matter. MR. LARRY KOSMONT, partner in Palm Desert Development, LLC, stated that he had no presentation at this time but concurred with the staff report, the recommendations, and the additional conditions. He said they were also fine with the recommendation of the City Attorney in terms of the development agreement and the exclusion of the last request, which he said was not an issue for them. He said they were confident this was a better project and thanked everyone for working on it. He offered to answer any questions and asked for an opportunity to address any comments. Mayor Pro Tem Crites stated that with regard to the residence that is adjacent to the proposed access to the maintenance facility, he had been given assurances by the developer that that person was in favor of or was comfortable with the project. However, the Council had letters that indicated that person was opposed. Mr. Kosmont responded that he did not think the occupant preferred the access where it is and was fundamentally opposed to that. However, they felt they had accommodated his concerns, should this access be approved, and that those accommodations (the sound wall, window attenuation, landscape) worked for him and he was fine with it and concurred with that solution. He added that moving the entrance over was fine with the developer, and the resident would prefer that because it would be moved 10 to 15 feet away from the resident. The following individuals spoke in FAVOR: MR. GARY HOUTZ said he had been asked by a majority of the individuals present who were in favor of the project to speak on their behalf rather than having a lot of people speak. He thanked Council for the time and effort in coming out to the project site to physically see the conditions of the golf course, etc. at Palm Desert Country Club. He also thanked them for being in support of the best interests of the homeowners. He felt the project was for the good of the vast majority of the homeowners, and he asked that Council approve the project tonight. Mayor Pro Tem Crites stated that when he looked at the map and what is being proposed, the vast majority of people who live in the Palm Desert Country Club area, whether on the golf course or not, will not see their views changed a bit and will receive a wonderful bonus by having a renovated golf course. They come out winners, with zero down side, and bear no burden. A fairly small number of people will have some impact and bear most of the 18 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 24, 2004 burden. He asked what responsibility the majority who bear no burden owe to the minority who bear all the burden. MR. HOUTZ responded that with regard to bearing the burden, everyone in the community will bear the burden of the construction as it progresses. The minority as stated by Mayor Pro Tem Crites will realize the appreciation of their property values and will also realize an actual improvement in their views because they will see green grass and trees on a nice golf course, which they do not have now. MR. CHARLIE ASH, 77-130 New York Avenue. MR. RAY OLVEUS (sp?), 77-365 Missouri Drive. MS. LEE CAROSELLI, 42-465 Tennessee, said her brother owns a home on New York, and both of them had homes without a golf course view. Both were in favor of the project, and their neighbors on each side were also in favor. With regard to the burden that will be on 10% of the people, she agreed their views would be impacted, but they would have the same view she does with her home on Florida. She said 100% of the homeowners are being impacted when they have a clubhouse which is closed down by the Health Department and a golf course that is becoming unplayable. The following individuals spoke in OPPOSITION: MS. ANNETTE DiMAGGIO, 77-011 California Avenue (Lot #399 on the plan), said she had been advised by her realtor as late as last week that the home proposed to be built directly behind their new home had been removed from the plan. Their home sale closed on Friday, and they found out on Saturday from their neighbor that that was not the case. She expressed concern with the potential loss of view, privacy, and feeling of safety for her children. She asked for a delay in approval of this project so that she can have a discussion with the developer about the situation. She said she was not in opposition to the plan overall and felt something needed to be done with the golf course. She noted that according to their residential design parameters, they were going to introduce and locate new homes in a manner that protect and replicate existing golf course views. However, according to the plan, her golf course view would be gone, and she was opposed to that because the view was one of the main reasons they purchased the home. Another page in the developers' presentation talked about reconfiguring the proposed homes to maximize privacy of existing residences, and she did not feel this would maximize her privacy and instead would completely take it away. She was also concerned with the negative impact on her property values. 19 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 24, 2004 burden. He asked what responsibility the majority who bear no burden owe to the minority who bear all the burden. Mr. Houtz responded that with regard to bearing the burden, everyone in the community will bear the burden of the construction as it progresses. The minority as stated by Mayor Pro Tem Crites will realize the appreciation of their property values and will also realize an actual improvement in their views because they will see green grass and trees on a nice golf course, which they do not have now. MR. CHARLIE ASH, 77-130 New York Avenue. MR. RAY OLVEUS (sp?), 77-365 Missouri Drive. MS. LEE CAROSELLI, 42-465 Tennessee, said her brother owns a home on New York, and both of them had homes without a golf course view. Both were in favor of the project, and their neighbors on each side were also in favor. With regard to the burden that will be on 10% of the people, she agreed their views would be impacted, but they would have the same view she does with her home on Florida. She said 100% of the homeowners are being impacted when they have a clubhouse which is closed down by the Health Department and a golf course that is becoming unplayable. The following individuals spoke in OPPOSITION: MS. ANNETTE DiMAGGIO, 77-011 California Avenue (Lot #399 on the plan), said she had been advised by her realtor as late as last week that the home proposed to be built directly behind their new home had been removed from the plan. Their home sale closed on Friday, and they found out on Saturday from their neighbor that that was not the case. She expressed concem with the potential loss of view, privacy, and feeling of safety for her children. She asked for a delay in approval of this project so that she can have a discussion with the developer about the situation. She said she was not in opposition to the plan overall and felt something needed to be done with the golf course. She noted that according to their residential design parameters, they were going to introduce and locate new homes in a manner that protect and replicate existing golf course views. However, according to the plan, her golf course view would be gone, and she was opposed to that because the view was one of the main reasons they purchased the home. Another page in the developers' presentation talked about reconfiguring the proposed homes to maximize privacy of existing residences, and she did not feel this would maximize her privacy and instead would completely take it away. She was also concerned with the negative impact on her property values. 19 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 24, 2004 Mr. Smith noted that Mrs. DiMaggio's lot was shown as Lot 72 on Insert #5. MS. LOLA GREEN, 42-025 Tennessee Avenue, stated that of the 1,800 homes in the development, 1,000 of them were not on the golf course, and she was unofficially representing those homes. She disputed staffs statement that the views that will be lost on the numerous streets where there are going to be new homes is not significant. She felt it was extremely significant, and there was no mitigation whatsoever for those 1,000 homeowners. There had been no story poles or signs put up to show people what the actual impacts will be, which she felt was very important. She was also concerned with the Conservation Easement and said she felt it was very important to know who will hold that easement and the effects of said easement. Mayor Pro Tem Crites noted that with regard to the Conservation Easement, the City would have input on the organization that will be the holder, and a condition could be added to that effect. MR. JOHN GREY, 76-963 New York Avenue, said he was speaking for himself and also on behalf of his neighbors, Sherrie Brooks at 76-975 New York Avenue, Oody Rays (sp?) At 76-985 New York Avenue, and Holly Escobedo at 76-983 New York Avenue. He said they still had many unanswered questions about this project. They were opposed to the building of any new homes and felt the lots directly across from them would detract from enjoyment of their homes and back yards. He said the plan included digging down seven feet in portions of the driving range so that the foundations would be seven feet below the existing grades, and he expressed concern with the possible impact on the water table and environment. He was also concerned with the selling prices of the new homes. MS. LISA THEODORATUS, 77-040 Utah Circle, said she and the other homeowners had hoped that tonight there would be a different development map, one that moved homes in the driving range away from the existing back yards and removed the road access at Tennessee; however, it appeared no changes had been made at all. She said they had asked for relief from the developers again and again, only to be told not one new homesite could be removed for them, although many homes were removed for others. She again expressed concern with the removal of Condition #17, which she felt was very vital to their community. She asked the Council not to approve this project. She felt the community, with the help of the City, could use an assessment district to rebuild the water system or to guarantee maintenance funding on a yearly basis. She believed that with a new water system and a new golf course owner, willing to maintain the property, they would 20 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 24, 2004 accomplish most of the desired improvements in a short amount of time without losing any open space. MS. EVELYN KANE, 43-380 Tennessee Avenue, read a newspaper article which she had had for almost 20 years. According to the article, the Board of Supervisors had denied the building of 44 new homes along the Palm Desert Country Club golf course because a protective covenant was approved by the County when the golf course and surrounding homes were built and prohibited any further construction that was not directly related to the golf course until 1992. She asked that the City Council follow the action of the Board of Supervisors. MS. SUZANNE TRACY, 77-020 Utah Circle, was opposed to the development because it would remove her view, change her neighborhood, and increase traffic, noise, and night time Tight pollution. She said she would be in favor of this project if it did not affect her view because it would help the golfers, who are her neighbors. She also urged the Council to reinstate Condition #17 to protect the future of Palm Desert Country Club. MS. VERONIQUE PINEAU, 77-510 California Drive, said she was representing her husband, Jerome Pineau, and the Palm Desert Country Club Preservation Society. She said she hoped the Council would deny this project tonight so that the Society could focus on a plan to restore the golf course and its facilities without anyone being impacted. MS. JANET MULLER, 43-160 Texas Avenue, said she did not have a golf course view but was still opposed to the project. She questioned why the maintenance facility was being moved to the park area. She said it was also her understanding that it was the size of an airplane hangar, and she asked whether it could be seen from the park where the children play or from the pool area. She felt the project would bring property values down. She also asked if the developer would consider some type of compromise and perhaps only put homes in the open lots that are currently there and not on the golf course. MS. HOLLY ESCOBEDO asked that the Council carefully consider everything before voting on the project, including blueprints, monies, CC&Rs, previous records of the developer, boundary lines with the story poles, etc. MS. THERESA PAWLEY, 77-670 California Drive, stated that the residents along the 13th and 14th fairways had paid a premium to live on a fairway and did not want to be adjacent to a maintenance facility. Many homeowners had concerns with the project for a variety of reasons, but the resounding point was the absence of disclosure. In an effort to get the project passed, homeowners had been left to their own devices to find out a number of 21 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 24, 2004 things, including the relocation of the maintenance facility; the last-minute submittal of documents for the Council packets where residents have not been able to review and make comment on them; deletion of Condition #17; installation of the story poles being deceptive because there are no stakes to indicate the new construction closest to the existing homes; traffic analysis done in January surveyed eight intersections surrounding the periphery of Palm Desert Country Club, but the main entrance at Washington and Avenue of the States was completely ignored. She said at its June 1st meeting, the Planning Commission added a recommendation for the proposed maintenance facility and specified that all maintenance facility traffic must use the Washington/Avenue of the States entrance and exit. She said knowingly adding further congestion of industrial and commercial vehicles to the most traffic burdened site in the entirety of Palm Desert Country Club seemed unconscionable. If the Council approves this project, she said she would hope the burden would be distributed equitably on the developer and all the homeowners. Mayor Spiegel invited rebuttal from the developer. MR. KOSMONT noted that when the application for this project was submitted, 95 homes already had included a cut of 17 other homes, and many of those homes were in the some of the view areas. Overall, views will improve because they will be improving 27 holes of golf. In terms of conservation, he said they will be bringing to the City a full detailed conservation program before a decision has to be made with regard to a maintenance agreement. He said they had a very qualified non-profit who they had worked hard to select, and they had been working on getting the entitlements approved, etc. Once they have that and the ability to secure the course, they will have the ability to engage fully the contract and bring the plan of conservation in great detail. In terms of the comment on the County article, he said the City of Palm Desert was sovereign and could make its own decisions. Mayor Spiegel declared the public hearing closed. With Council concurrence, Mayor Spiegel recessed the meeting at 5:40 p.m. He reconvened the meeting at 5:49 p.m. Councilman Ferguson said his biggest concern going into this was the views of the residents. He said there was no common law right to a view; the exception to that is a homeowners association which can provide for a right for a view. Palm Desert Country Club has a homeowners association which had a right to a view. It began in the early 1960's and lasted for 30 years and expired. They had five-year extensions and were in the second or third extension now. In meeting with the developer, one of the first questions he 22 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 24, 2004 asked was if there are 800 or 900 people in favor of doing this, why not follow the CC&Rs and go back and terminate that extension so that this issue of a view is not an issue. The developer did not do this at first, although it was his understanding he is now doing it. The City looked at this legally and got an opinion from the City Attorney, and it was consistent with the policy the City has with all of its homeowners associations — to let the homeowners associations govern themselves, and the Council governs the City. Zoning is a matter for the City to take into account, and the homeowners associations CC&Rs are something for the residents to take into account. He said the City was taking a look at the views as a matter of just being decent people, recognizing that neighbors buy their homes because they enjoy what they can look at. However, he said it is not going to be that way forever for a lot of people, and at least as contemplated by the homeowners association, it was to be there for 30 years and then by a majority of the ownership in five-year increments thereafter. He said he knows the two gentleman who developed Palm Desert Country Club in 1961, and he knew a lot of thought and detail had been put into this area. It is a community that resides primarily around a golf course. While a lot of residents are not golfers, that does not mean they do not have a community of interest in the clubhouse, and it does not mean they do not enjoy walks along the fairways. It brings the residents together as one group of people, and that community has existed successfully for many decades now. With regard to Mayor Pro Tem Crites' point about the majority versus minority, he said the Council had seen time after time that it easy for a large majority of people who are benefitted by something, and he was not saying they did this, to sort of shout down the minority who are seeing changes and are impacted in one degree or another. The developer has spent 18 months trying to come up with a project that minimizes the impact to the fewest number of people possible. The City annexed Palm Desert Country Club six to seven years ago and spent millions of dollars on improvements, including storm drains and roads, so the City does have a very strong interest in this community. He said the City has a 30-plus year track record of not bending to the will of the majority but genuinely trying to do the best for the residents. Councilman Ferguson stated that he felt the Council had scrutinized this project from all aspects, including financial, and he was comfortable this was a viable project. With regard to the conservation easement, he said he had spent the last week trying to make sure there is a mechanism to assure that if the developer did not voluntarily do that conservation easement, that the City would not have to voluntarily do things thereafter to make the project successful. He said his final observation went back to an old fishing adage — "A rising tide raises all boats" — and he viewed this development as a tide that is going to improve the standards of all of Palm Desert Country Club. The homes being built will have substantial value and will raise the values of the existing homes, and residents will have a newer golf course. He said that 23 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 24, 2004 does not do much for the resident who is going to look out her patio and see an eight -foot wall some number of feet from her patio. However, this is not the end of the process. The City of Palm Desert was committed to working with people. While the developer may get his zoning at this meeting, that did not mean that all the decisions after that would be automatic. For example, if the City has a problem with the access to the maintenance road or people using the pads, it has the ability to go back to the developer and make changes and further mitigate impacts. He said he was personally at the point where he felt the City could give the developer the zoning. He was in favor of the development as proposed based on all the testimony received, and he said he would be voting in support of the project. Councilman Kelly said he had three main concerns at the meeting where this was last discussed: 1) Could the golf course be improved for $5 million; 2) could the golf course be maintained so it would not go downhill and be right back where it is today; 3) residents with impacted views. He said he was satisfied the developer was willing to increase the project by $1.823 for the golf course rehabilitation, and he felt that was a more reasonable amount than $5 million. An outside consultant had looked over the project and had advised that as long as it is managed properly, it can actually be maintained kept up. With regard to views, he felt the Council needed to look at the views for the whole area and what the project will do for the entire area. Even though it is possible some views might not be as good as they are today, a lot of views will be improved overall. The City has controls/conditions in place to make sure the developer follows through with what he says he will do. He said he felt the City had done a lot to upgrade Palm Desert Country Club, and this was another step in that direction. He added that he felt the next step would be to underground the utility poles on California Avenue. Councilmember Benson complimented the developer for doing everything the Council had asked and for their willingness to continue to work with the City. She felt this project would be good for Palm Desert Country Club and the entire City of Palm Desert. She thanked City staff for being cooperative and her colleagues for taking the interest they did in this project. Mayor Pro Tem Crites proposed the addition of two conditions: Condition #23 — Should a Conservation Easement come to exist, the City shall have the right to provide input on the organization that will become the holder of said Easement. Mr. Erwin stated that while the City could have input as to the organization, he would be reluctant to require City approval of the 24 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 24, 2004 organization. He noted that the organization would be approved by the Internal Revenue Service. Condition #24 — That the golf course plans, as per a letter from Mr. Case, would go before the City's Landscape Beautification Committee for its input and approval at the appropriate stages of the project. Mayor Pro Tem Crites stated that there were many people who were very unhappy that this public hearing had been continued for a month. He said a month ago, he would have voted against this project; a month had done a lot in terms of answering the questions he had. He did not believe the problems on this golf course started with the current owner. The City was approached to purchase the golf course several times over the past ten years because of problems there, and he felt these problems were not going to be resolved by having a new owner. There were significant issues, and the easiest one was that it was still on manual irrigation, which does not do a good job of using water, a scarce resource. He said he did not think anyone disagreed about the fact that the problems have to be fixed, and the question is how to do that. He said most golf course homeowners associations assess the homeowners when they need to do repairs, and he felt that was the way it should be done, and that would put the burden on everyone who has a benefit, which would be the most equitable. He also knew that would not and could not happen here. With regard to the story poles, he said he had asked staff about the accuracy and placement and whether they showed ridge lines, etc. He had staffs opinion that they were accurate. He agreed the proposed homes would change the views of some residents, although they would not obliterate the views. He felt most of the Councilmembers were pleasantly surprised at both the distance and the views, which in most cases was below the power lines that go along toward the clubhouse as viewed from Utah Circle and Tennessee. He added that he felt this was the only alternative at this pont; while it puts more burden on a few than he felt was the way a community ought to operate, he felt it was the only opportunity to fix a problem that has to be fixed. Mayor Spiegel stated that people in Palm Desert Country Club are taking more pride in their homes than there has been in the past, changing the look of their front yards, etc., and property values are increasing. Everyone on the Council has taken a lot of time and talked to everyone on either side of the issue in Palm Desert Country Club. The developer has answered every one of the questions. Staff has also spent a lot of time answering Council questions, and he trusted that staffs answers were correct. He said he would be voting in favor of the project. 25 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 24, 2004 Mr. Erwin stated he wished to add a resolution for Council's consideration, a resolution approving the declaration of environmental impact. He said that modifies Ordinance No. 1067 by taking that out of the ordinance. Councilman Ferguson moved to waive further reading and: 1) Pass Ordinance No. 1067 to second reading, relating to C/Z 04-01; 2) Pass Ordinance No. 1068 to second reading, relating to DA 04-01; 3) Adopt Resolution No. 04-42, approving PP 04-01 and TT 31836, subject to condition; 4) Adopt Resolution No. 04-75, certifying a negative declaration of environmental impact as it relates to Case Nos. C/Z 04-01, TT 31836, and PP 04-01, all as amended per the direction and discussion at this meeting. Motion was seconded by Benson and carried by a 5-0 vote. With Council concurrence, Mayor Spiegel recessed the meeting for dinner at 6:10 p.m. He reconvened the meeting at 7:08 p.m. C. REQUEST FOR APPROVAL OF A PRECISE PLAN OF DESIGN TO ALLOW THE CONSTRUCTION OF A 12,450 SQUARE FOOT OFFICE BUILDING LOCATED ON THE SOUTH SIDE OF FRED WARING DRIVE, APPROXIMATELY 368 FEET EAST OF SAN PABLO AVENUE Case No. PP 03-22 (Patel Architecture, Applicant) (Continued from the meeting of June 10, 2004). Mayor Spiegel declared the public hearing open and invited testimony from the audience. No testimony was offered. Councilman Ferguson moved to, by Minute Motion, continue to the meeting of July 8, 2004. Motion was seconded by Crites and carried by a 5-0 vote. D. CONSIDERATION OF A CITY COUNCIL REQUEST FOR REVIEW OF A DECISION OF THE PLANNING COMMISSION, APPROVING AN AMENDMENT TO THE EXISTING CONDITIONAL USE PERMIT TO ALLOW ROC'S FIREHOUSE GRILLE, 73-405 EL PASEO, #32A, TO OPERATE FROM 9:00 A.M. UNTIL 2:00 A.M. DAILY Case No. CUP 93-7 Amendment #3 (Roc's Firehouse Grille, Applicant). Planning Manager Steve Smith reviewed the staff report, noting that Roc's Firehouse Grille, for the past 19 months, had been operating from 11:00 a.m. until 2:00 a.m. daily. The applicant was apparently unaware that the current conditional use permit limited his hours until 11:00 p.m. The Planning Commission reviewed the matter and heard a considerable amount of testimony, with 18 people speaking in favor and 4 in opposition. Ultimately, the Commission determined that Roc's was a well -run business which contributed to the success of El Paseo and allowing this business to stay open until 2:00 a.m. addressed the need of late -night service workers and that the additional three hours from 11:00 p.m. to 2:00 a.m. represented 34% 26 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 24, 2004 of the restaurant's gross revenue, without which the business could not survive. On that basis, the Commission unanimously (5-0) approved the requested amendment, subject to conditions. He offered to answer any questions. Councilmember Benson stated that she had called this matter up because of other businesses along El Paseo which were disturbing residents in the area. She said she did not know that this business had been operating those later hours for the past 19 months and thought this was something they wanted to start doing. When she read the reports that came in after she called the matter up, she said she felt this was probably an error on the part of the City from the beginning for not informing them of the conditional use permit limiting the hours of operation. She said if she had known this, she would not have called it up. Mayor Pro Tem Crites said in the past there has been no way of knowing whether or not someone receives the CUP conditions when they take out a business license. He asked if that was something that could be corrected so that a similar situation does not come up with a different business saying they did not know they couldn't do something. Mr. Smith responded that this was something that had been addressed. When business licenses come through for Planning Department sign -off, staff will be attaching a copy of any conditions of approval to that sign -off. Mayor Spiegel declared the public hearing open and invited testimony in FAVOR of or in OPPOSITION to this matter. MR. STEVEN PLANT, 44-821 Santa Ynez, said he felt this business was an asset to Palm Desert, and he spoke in favor of allowing the restaurant to operate from 9:00 a.m. to 2:00 a.m. daily. He expressed concern that denying the requested hours would force this business to relocate out of Palm Desert. MR. SEAN FLYNN, 44-821 Santa Ynez, also spoke in favor. MR. MARIO BAEZ, 73-180 El Paseo, said he worked on El Paseo, and a lot of the merchants held this business in high regard. He was in favor of the extended hours. MS. ROBIN SWANSON, 44-245 E. Sundown Crest, La Quinta, spoke as the manager for Carol Dean on El Paseo, a clothing boutique next door to Roc's Firehouse Grille. She noted they had determined that approximately 40% of their business was now coming from customers of Roc's Firehouse. She had started closing her shop until 12:00 p.m. or 1:00 p.m. and then staying 27 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 24, 2004 open until 11:00 p.m. or 12:00 a.m. She spoke highly of Roc's Firehouse and said there had never been a single time when the area was not spotless when she arrived at work in the morning. MR. ROLAND COOK, 73-405 El Paseo, Suite 32-A, spoke as the owner of Roc's Firehouse Grille and offered to answer any questions. MR. JOHNNY ANDREASEN, 45-421 Lupine Lane, Unit #3, directly across from Roc's Firehouse Grille, also spoke in favor of this business. MR. CHADWICK BRADBURY, 76-784 Ascot Circle, spoke as legal counsel for Roc's Firehouse Grille and as a personal friend of the owners. He said he felt it would be tragic if the Council saw fit to undermine the enterprise established by these owners. MR. JIM GREULICH, 45-405 Lupine Lane, #13, spoke as President of the Sand Rock Homeowners Association. On behalf of many of the residents in this association, he expressed concern with the noise level from this business. He said they did appreciate the red curb that was put in because it did cut down on the amount of traffic. He noted that immediately following the Planning Commission meeting, the amplified music stopped because Roc did not understand there was a covenant that came with the property that said he could not have amplified sound. That had made a lot of difference at night to the residents. He said he and other residents were concemed about some of the discussions/suggestions about these mostly senior residents going over at 1:00 in the morning and complaining about the noise. He was concerned that one of the recommendations made by the Planning Commission was that Roc assume the responsibility for keeping peace in the parking lot and out in the public street, and he felt that was the responsibility of local law enforcement. He said they had never suggested that this business be dispensed with. They just asked that the noise level be kept down, especially late at night. He asked that the Council read the Minutes of the Planning Commission meeting and look at some of the suggestions that were made. He also expressed concern with the types of things that normally happen when groups of people begin to disperse after midnight, and he felt this was not appropriate so close to an expensive residential area. With no further testimony offered, Mayor Spiegel declared the public hearing closed. Councilmember Benson moved to waive further reading and adopt Resolution No. 04-70, affirming the Planning Commission decision and adding a condition reserving the right to impose future conditions necessary to mitigate identified impacts. Motion was seconded by Ferguson. 28 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 24, 2004 Councilman Ferguson stated that the Council had received the Minutes of the Planning Commission meeting, which he had read. He said he carefully reviewed comments made by the four people in opposition. He noted that Council had from time to time imposed monitoring requirements on owners of establishments to monitor their own parking lots and the streets. One of the ladies who spoke that night indicated she had called the police on a number of occasions. He also noted in the report that the City's Police Department indicated they did not have any problem with the establishment staying open until 3:00 a.m. Planning staff also indicated there had not been any complaints in 18 months. These things all seemed to conflict, and he had asked the City's Police Lieutenant to do an analysis of those bars where the City has imposed monitoring conditions in other similar establishments. He said he had shared the report with Mr. Greulich prior to the meeting and would make a copy available to him so he could show it to residents if they are interested. Roc's Firehouse was tied with one other establishment that is open until 2:00 a.m. for the fewest number of calls to the Police Department. The establishment the City is imposing monitoring sanctions on now was six times higher than Roc's. Roc's had five calls, while the other establishment, Bananaz, had 30 calls. He said he did not see the need to have a monitoring requirement for the parking lot, and it seemed that the owner of Roc's was very attentive to wanting to meet the needs of the nearby residents and to be a good neighbor. He said he did not have a problem with the hours. Mayor Pro Tem Crites said if issues and problems do arise, the Council can go back and do what needs to be done to mitigate them. Mayor Spiegel called for the vote, and the motion carried by a 5-0 vote. E. CONSIDERATION OF THE ADOPTION OF THE CITY MANAGER'S AND EXECUTIVE DIRECTOR'S PROPOSED FINANCIAL PLAN FOR THE CITY OF PALM DESERT, PALM DESERT REDEVELOPMENT AGENCY, AND PALM DESERT HOUSING AUTHORITY FOR FISCAL YEAR 2004/05 (JOINT CONSIDERATION WITH THE PALM DESERT REDEVELOPMENT AGENCY AND THE PALM DESERT HOUSING AUTHORITY). Mr. Ortega noted the staff report and recommendation in the packets. Mayor/Chairman Spiegel declared the public hearing open and invited testimony in FAVOR of or in OPPOSITION to this matter. With no testimony offered, he declared the public hearing closed. Mayor Pro TemNice Chairman Crites stated that on the Redevelopment Agency program, on behalf of the Palm Desert Trails Program, he was 29 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 24, 2004 looking for approximately $200,000 to at least be set aside, not allocated, for possible use. Councilman/Member Ferguson also noted that as part of finishing a review of the City Manager, there may be an adjustment to compensation for cost of living and some other things. He said it did not need to be done at this time, but it would come back to Council shortly. Councilman/Member Ferguson moved to waive further reading and adopt: 1) City Council Resolution No. 04-71, adopting a City Program and Financial Plan for the Fiscal Year July 1, 2004, through June 30, 2005; 2) City Council Resolution No. 04-72, establishing the Appropriations Limit for Fiscal Year 2004/05; 3) Redevelopment Agency Resolution No. 493, adopting a Redevelopment Agency Program and Financial Plan for the Fiscal Year July 1, 2004, through June 30, 2005; 4) Housing Authority Resolution No. HA-24, adopting a Housing Authority Program and Financial Plan for the Fiscal Year July 1, 2004, through June 30, 2005; 5) City Council Resolution No. 04-73, setting the Salary Schedule, Salary Ranges, and Allocated Classifications; 6) City Council Resolution No. 04-74, setting the Mileage Reimbursement Rate. Motion was seconded by Crites and carried by a 5-0 vote. NOTE: THE FOLLOWING ITEM WAS LISTED ON AN AGENDA ADDENDUM POSTED AT LEAST 72 HOURS PRIOR TO THE MEETING. F. REQUEST FOR APPROVAL OF THE LEVY AND COLLECTION OF ANNUAL ASSESSMENTS FOR THE PALM DESERT CONSOLIDATED LANDSCAPING AND LIGHTING DISTRICT, AND GRANTING FINAL APPROVAL FOR THE ENGINEER'S REPORT FOR FISCAL YEAR 2004/05. Mayor Spiegel declared the public hearing open and invited testimony in FAVOR of or in OPPOSITION to this matter. With no testimony offered, he declared the public hearing closed. Councilman Crites moved to, by Minute Motion, continue the hearing to the meeting of July 8, 2004. Motion was seconded by Benson and carried by a 5-0 vote. 30 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 24, 2004 XVIII. REPORTS AND REMARKS A. CITY MANAGER Mayor Spiegel moved to add the following item to the Agenda for discussion and action. Motion was seconded by Ferguson and carried by a 5-0 vote. 1. Request for Approval of a Contract for Tenant Improvements at the Parkview Office Complex, 73710 Fred Waring Drive, Suite No. 222 (Contract No. C22880). Mr. Ortega noted that this was discussed in Closed Session. Councilman Ferguson moved to, by Minute Motion, approve the subject contract with Doug Wall Construction, Inc., Bermuda Dunes, California, in the amount of $34,453, and authorized the City Manager to execute same. Motion was seconded by Benson and carried by a 5-0 vote. B. CITY ATTORNEY None C. CITY CLERK 1. Reminder of July 8, 2004, Study Session at 12:30 p.m. for the Project Dealing with Area Known as "Wonder Palms" — Case Nos. C/Z 03-013 and DA 04-02 (American Realty Trust, Desert Wells 237, LLC, and RBF Consulting, Applicants). Mrs. Klassen reminded Council of this Study Session. Mayor Spiegel said he did not believe this was necessary. Councilman Ferguson stated that he and Mayor Spiegel met with the developer who said he would proceed with exactly what he wants to do on a development agreement basis rather than on a zoning basis. Everything will come to Council with the blueprints and everything else the Council likes to look at when it considers these types of projects. With City Council concurrence, it was determined that the July 8 Study Session was not necessary. 31 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 24, 2004 D. MAYOR AND MEMBERS OF THE CITY COUNCIL o City Council Requests for Action: None o City Council Committee Reports: See below. o City Council Comments: 1. City Council Liaison Reports. a) California Joint Powers Insurance Authority — Councilman Ferguson commented that he attended CJPIA's Councilmember and Mayor's Conference last week, and he now felt he had a good working understanding of the insurance coverage and its function. He came away from the Conference feeling extremely comfortable that the City is doing the wisest thing it can as far as insuring itself against liability through the JPIA's pool and was reassured that it has already put into place the recommended procedures for risk management. b) Advanced Mediation Skills Seminar — Councilman Ferguson also reported that he'd attended the subject seminar at Pepperdine University. He said 130 people participated; half were judges, the other half were older attorneys who were going into a mediation practice. In sharing with the other participants, he found that much of what they were teaching about how to resolve large disputes, the City Council already practices with its residents, developers, and anytime differences occur. c) SunLine — Councilman Kelly noted that although it had gone through somewhat of a rough year, he was pleased to report SunLine's activities would come in below budget this year. Additionally, he'd been reelected as Chairman of the Board, and he looked forward to another year of success. • d) Historic Site Preservation Board — Councilmember Benson commented that she and Mayor Spiegel met with Hal Rover and Jan Holmlund from the Historical Society Board and City staff. The group would be formulating plans and gearing up to 32 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 24, 2004 accept applications for appointment to this body. Mayor Spiegel added that the group would be working with the City's Art In Public Places to design a distinctive identification plaque for approved historic sites. Councilmember Benson said the group would also be proposing an amendment to the existing ordinance that would provide not only for interested residents to be appointed to the Board, but also non-residents with a specific expertise. It was decided that Mr. Rover will be first Chairman, during the organizational process, to be followed by annual elections to the post. Initially, meetings would be held monthly, tapering to at least quarterly after becoming fully established. Mr. Rover will be meeting with representatives from Jillian's as one of the first sites to be considered, asking them not to make any significant changes to the location until the new Historic Preservation Board can meet on it. Staff already had a list of suggested sites from the Historical Society and would make copies for the City Council. XIX. ADJOURNMENT Councilmember Benson moved to adjourn the meeting at 7:52 p.m. Motion was seconded by Kelly and carried by a 5-0 vote. ATTEST: RACHELLE D. KLASSEN, CITY CLERK CITY OF PALM DESERT, CALIFORNIA ROBERT A. SPIEGEL, MAYOR 33