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HomeMy WebLinkAboutPrelim Mintues - City 05/13/04REGULAR MEETING OF THE PALM DESERT CITY COUNCIL JUNE 10, 2004 Staff is continuing preparation; copies to be distributed as soon as possible. XV. CONTINUED BUSINESS D. MINUTES OF THE REGULAR CITY COUNCIL MEETING OF MAY 13, 2004 (Continued from the meeting of May 27, 2004). Rec: Approve as presented. Action: PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING THURSDAY, MAY 13, 2004 CIVIC CENTER COUNCIL CHAMBER I. CALL TO ORDER - 3:00 P.M. Mayor Spiegel convened the meeting at 3:03 p.m. II. ROLL CALL Present: Councilmember Jean M. Benson Mayor Pro Tem Buford A. Crites Councilman Ferguson arrived at 3:24 p.m. and left the meeting at 6:00 p.m. Councilman Richard S. Kelly arrived at 3:04 p.m. 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 Homer Croy, ACM for Development Services Justin McCarthy, ACM for Redevelopment Rachelle D. Klassen, City Clerk Mark D. Greenwood, City Engineer Amir Hamidzadeh, Director of Building & Safety Philip Drell, Director of Community Development 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 Robert P. Kohn, Director of Special Programs Richard Twedt, Public Arts Manager III. ORAL COMMUNICATIONS - A (CLOSED SESSION ITEMS) None PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING MAY 13, 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. 211, Palm Desert Negotiating Parties: Agency: Paul S. Gibson/City of Palm Desert Property Owner: City of Palm Desert Other Parties: State of California - Dept. of Food and Agriculture Under Negotiation: x Price x Terms of Payment 2) Property: APN 622-190-006 Negotiating Parties: Agency: Justin McCarthy/Lauri Aylaian/City of Palm Desert Property Owner: Daniel and Nancy Yoakum Under Negotiation: x Price x Terms of Payment 3) Property: 3.91 Acres on west side of Cook Street, north of Whitewater Storm Channel Negotiating Parties: Agency: Carlos L. Ortega/Phil Drell/City of Palm Desert Property Owner: Phil Cordova Under Negotiation: x Price x Terms of Payment Conference with Legal Counsel regarding significant exposure to litigation pursuant to Government Code Section 54956.9(b): Number of potential cases: 3 Upon motion by Crites, second by Benson, and 3-0 vote of the Council (Councilmen Ferguson and Kelly ABSENT), Mayor Spiegel adjourned the meeting to Closed Session at 3:04 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 - Mayor Pro Tem Buford A. Crites 2 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING MAY 13, 2004 VII. INVOCATION - Councilmember Jean M. Benson VIII. ORAL COMMUNICATIONS - B MR. PATRICK SWARTHOUT, Public Affairs Manager for Southern California Gas Company, addressed the City Council to advise that although the Company regularly patrols its pipelines for leakage or any other problems and implements protection measures, it was undertaking a significant safety program to survey some 1,500 miles of pipeline in their service area in accordance with the 2002 Federal Pipeline Safety Improvement Act. He said the approximately two -month process of inspecting and cleaning every inch of the pipeline that serves this area would be conducted beginning later this month along the 74-mile stretch from their compressor station at Desert Center all the way to Moreno Valley. He said customers would not notice any interruption in service while the program is carried out, traveling from west to east. MS. JOAN B. HOBIN, 73-609 Amir Drive, Palm Desert, asked the City Council if it would consider reopening the parking area near Homme/Adams Park. Currently, she and those people who use the area to exercise their dogs were forced to park on Camino Capistrano; there is a lot of traffic on that street, and it is dangerous for the dogs and their owners. She noted that she'd been taking her dogs to that area every morning for the last six years, and she commended the City Council for the wonderful improvement it had made to the Park; although, she felt perhaps more attention should be paid to maintaining the area as there was some illegal dumping activity occurring. She and her friends try to pick up as much of the trash as they can when they're at the park. Mayor Spiegel asked Ms. Hobin to provide her telephone number to Mr. Ortega so that he could follow up with her concerns. MR. J. MILO, 73-570 Grapevine Street, Palm Desert, said he wished to respond to Mr. Ortega's recent letter about the measures taken on Grapevine Street since the last City Council Meeting. He noted that double yellow lines and a stop sign had been installed, "No Commercial Vehicles" signs had also been posted on both ends of the street, which had helped. However, he noticed that the letter didn't mention anything about "speed cushions" that residents requested, and he wondered what the status was. He realized that some rubberized pavement would be installed this summer, but speeding was still a problem, and vehicles were rolling through the new stop sign. Although there was police presence almost every day in the first week after residents came to the Council Meeting, the officers were unable to stay for very long during the day to continuously patrol the street. He said there still needed to be more control, adding that there were some other residential areas experiencing the same issues. He felt the City Engineer should seriously consider use of "speed cushions" or calming zones to help ease the traffic pressure on his and other residential streets. 3 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING MAY 13, 2004 Mayor Spiegel asked Mr. Milo to provide his telephone number to Mr. Ortega for further follow-up. MS. PAULA PADELFORD, 44-112 Acacia, Palm Desert, spoke to the City Council as a representative of the R.S.V.P. Program (Retired and Senior Volunteer Program). She said they'd been in the Valley for over 32 years, placing seniors in volunteer opportunities in some 104 organizations throughout the Coachella Valley (e.g. museums, libraries, schools, hospice, animal shelters). There are presently 1,500 active volunteers. She then presented the City with a symbolic check in the amount of $372,301, representing the payroll costs 281 volunteers with 21,658 volunteer hours had saved the various organizations in Palm Desert alone. IX. AWARDS, PRESENTATIONS, AND APPOINTMENTS A. PRESENTATION TO RECOGNIZE JANET BRODY FOR HER MANY YEARS OF SERVICE TO THE CITY OF PALM DESERT AND ITS VARIOUS COMMITTEES AND COMMISSIONS. On behalf of the City Council, Mayor Spiegel presented Mrs. Brody with a framed lithographic print of the Council Chamber Mural so that she would always have something to help her remember Palm Desert, now that she and her husband were moving back east to be near their children. B-1. PRESENTATION OF PROCLAMATION, DECLARING MAY 2004 AS "NATIONAL MENTAL HEALTH MONTH" IN THE CITY OF PALM DESERT. On behalf of the City Council, Mayor Spiegel presented the framed proclamation to Mental Health Board Member and Member of the City's Housing Commission, Linda Buxton -Ward. B-2. PRESENTATION OF PROCLAMATION DECLARING MAY 2004 AS "MOSQUITO AND VECTOR CONTROL AND WEST NILE VIRUS AWARENESS MONTH" IN THE CITY OF PALM DESERT. On behalf of the City Council, Mayor Spiegel presented the framed proclamation to Palm Desert's representative to the Coachella Valley Mosquito and Vector Control District, Art McKay, and the District's Public Information Officer, Robert Mann. Mayor Spiegel noted that control of vectors and especially West Nile Virus were serious matters, and the City appreciated the District's efforts. 4 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING MAY 13, 2004 C. PRESENTATION TO RECOGNIZE THE PALM DESERT HIGH SCHOOL VARSITY AND JUNIOR VARSITY DANCE TEAMS. Mayor Spiegel and the City Council presented each team with an engraved plaque, expressing the City's pride in their accomplishments: — Varsity Dance Team 1st Place in the Intermediate Open Dance Division at the United States of America All -Star and Dance Drill National Competition; — Junior Varsity Dance Team 4th Place in the Open Medium Lyrical Division at the United States of America All -Star and Dance Drill National Competition. D. PRESENTATION TO RECOGNIZE CITY OF PALM DESERT EMPLOYEES FOR EXCEPTIONAL SERVICE — MAY 2004. Mayor Spiegel and Mr. Ortega recognized the following outstanding employees: Phil Drell, Gloria Martinez, Brad Chuck, Jeff Winklepleck, James Conway, and Frankie Riddle. X. CONSENT CALENDAR A. MINUTES of the Regular City Council Meetings of April 8 and April 22, 2004. Rec: Approve as presented. B-1. CLAIMS AND DEMANDS AGAINST THE CITY TREASURY - Warrant Nos. 198, 201, 202, 207, 208, 212, 213, 217, and 218. Rec: Approve as presented. B-2. CLAIM AGAINST THE CITY (#530) by Brandon Slater in the Amount of $940. Rec: By Minute Motion, reject the Claim and direct the City Clerk to so notify the Claimant. C. CITY'S/AGENCY'S PORTFOLIO MANAGEMENT SUMMARIES for March 2004 (Joint Consideration with the Palm Desert Redevelopment Agency). Rec: Receive and file. D-1. AUDIT REPORT for the City of Palm Desert Gas Tax Fund for the Period July 1, 2001, through June 30, 2002. Rec: Receive and file. 5 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING MAY 13, 2004 D-2 AUDITED FINANCIAL REPORTS for the City of Palm Desert Measure "A" Fund for the Fiscal Year Ended June 30, 2003. Rec: Receive and file. E. APPLICATION FOR ALCOHOLIC BEVERAGE LICENSE by Maria Monterroso and Victor Monterroso for Taqueria El Sinaloense, 73-850 Highway 111, Suite G, Palm Desert. Rec: Receive and file. F. MINUTES of City Committee and Commission Meetings. 1. Citizens' Advisory Committee for Project Area No. 4 Meetings of February 9 (Amended), and March 15, 2004. 2. Housing Commission Meeting of March 10, 2004. 3. Investment & Finance Committee Meetings of February 25, and March 24, 2004. 4. Marketing Committee Meeting of March 16, 2004, and Study Session Notes of March 24, 2004. 5. Public Safety Commission Meeting of March 10, 2004. 6. Sister Cities Committee Meeting of March 18, 2004. 7. Technology Committee Meeting of February 3, 2004. 8. Youth Committee Meeting of March 3, 2004. Rec: Receive and file. G. LETTER OF RESIGNATION from Janet Brody — Art In Public Places Commission. Rec: Receive with very sincere regret. H. REQUEST FOR AUTHORIZATION to Destroy Files from the Department of Building & Safety that Have Been Digitally Imaged Onto CD's (June, July, August, September, October, and November 2003). Rec: Waive further reading and adopt: 1) Resolution No. 04-28 for June 2003 Records; 2) Resolution No. 04-29 for July 2003 Records; 3) Resolution No. 04-30 for August 2003 Records; 4) Resolution No. 04-31 for September 2003 Records; 5) Resolution No. 04-32 for October 2003 Records; 6) Resolution No. 04-33 for November 2003 Records. 6 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING MAY 13, 2004 I. REQUEST FOR AUTHORIZATION to Obtain Additional Digital Imaging Services for Engineering Documents. Rec: By Minute Motion, authorize additional digital imaging services by California CD Imaging Center, Rancho Cucamonga, California, in the amount of $1.38 per plan sheet and $0.10 per 8 1/2 x 11 or 8'/2 x 14 sheet, in an amount not to exceed $20,000 — funds are available in Account No. 110-4300-413-3010. J. REQUEST FOR APPROVAL of Contract for Audit Services for the City of Palm Desert, Palm Desert Redevelopment Agency, Desert Willow Golf Resort, Palm Desert Recreation Facilities Corporation, and the Palm Desert Housing Authority for the Fiscal Year Ending June 30, 2004 (Contract No. C20182) (Joint Consideration with the Palm Desert Redevelopment Agency and the Palm Desert Housing Authority). Rec: By Minute Motion, approve the subject contract with Lance, Soil & Lunghard, LLP, Brea, California. K. REQUEST FOR AUTHORIZATION to Dispose of Obsolete Traffic Signal Equipment. Rec: By Minute Motion, authorize staff to dispose of obsolete traffic signal equipment currently housed at the Joni Drive yard, as identified on the accompanying staff report. L. REQUEST FOR AUTHORIZATION to Transfer Title for Lot 17 of the Portola Palms Mobile Home Park. Rec: By Minute Motion, authorize the transfer of title for Lot 17 of the Portola Palms Mobile Home Park to the Portola Palms Homeowners Association and the Mayor to execute the Grant Deed for same. M. REQUEST FOR AUTHORIZATION to Reject Bids for the Desert Willow Golf Resort Mountain View Course Comfort Station Upgrades (Contract No. C21540). Rec: By Minute Motion, reject all bids received for the subject project. N. REQUEST FOR AUTHORIZATION to Design a Traffic Signal for the Intersection of Highway 74 and Shadow Mountain Drive. Rec: By Minute Motion, authorize staff to proceed with designing a traffic signal installation for the intersection of Highway 74 and Shadow Mountain Drive. 7 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING MAY 13, 2004 O. REQUEST FOR APPROVAL of an AB2766 Memorandum of Understanding (MOU) with the Coachella Valley Association of Governments for Regional PM10 Street Sweeping Program for Fiscal Year 2005 (Contract No. C22640). Rec: By Minute Motion, approve the subject MOU and authorize the Mayor to execute same. P REQUEST FOR AWARD OF CONTRACT for Residential/Commercial Street Sweeping Services (Contract No. C22560). Rec: By Minute Motion, award the subject contract to CleanStreet, Gardena, California, in the amount of $26.95 per curb mile ($3,767.61 per month) and authorize the Mayor to execute same — funds have been specified in the FY 2004/05 Budget, Account No. 110-4310-433-3320. Q-1. REQUEST FOR APPROVAL of Change Order No. 1 and Acceptance of Work for Contract No. C21560 — Well Site Improvements at Fred Waring Drive and San Pascual Avenue (Cora Constructors, Palm Desert, CA). Rec: By Minute Motion: 1) Approve Change Order No. 1 in the amount of $1,969.16 for the purchase and installation of a 6-inch swing check valve and removal of an unmarked utility conflicting with the installation of 12-inch waterline and the Mayor to execute same; 2) authorize the Director of Finance to transfer $1,969.16 from contingency to base for the project; 3) accept the work as complete and authorize the City Clerk to file a Notice of Completion for the subject project. Q-2. REQUEST FOR ACCEPTANCE OF WORK for Contract No. C20710A — Construction of the Magnesia Falls Drive Bridge and Street Improvements Soundwall (Project No. 648-99A) (Parsam Construction Company, Glendale, CA). Rec: By Minute Motion, accept the work as complete and authorize the City Clerk to file a Notice of Completion for the subject project. Q-3. REQUEST FOR ACCEPTANCE OF WORK for Contract No. C20910A — Construction of the Street Improvements at Highway 111 and Town Center Way (Dateland Construction, Coachella, CA). Rec: By Minute Motion, accept the work as complete and authorize the City Clerk to file a Notice of Completion for the subject project. 8 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING MAY 13, 2004 R. REQUEST FOR AUTHORIZATION to Release One -Year Maintenance Security for Tract 30030 (Alpine Lane) (Sound Management, LLC, Applicant). Rec: By Minute Motion, authorize the City Clerk to release the subdivision improvement maintenance security for Tract No. 30030. S-1. CONSIDERATION of Legislative Review Committee Action on AB2353 (Leslie) — Electric Vehicles. Rec: By Minute Motion, concur with the action taken by the Legislative Review Committee at its meeting of April 27, 2004, and direct staff to prepare a letter of opposition for the Mayor's signature with regard to AB2353 (Leslie). S-2. CONSIDERATION of Legislative Review Committee Action on AB2782 (Benoit) — Public Agencies' Joint Powers Authorities. Rec: By Minute Motion, concur with the action taken by the Legislative Review Committee at its meeting of April 27, 2004, and direct staff to prepare a letter of support for the Mayor's signature with regard to AB2782 (Benoit). S-3. CONSIDERATION of Legislative Review Committee Action on ACA29 (Harman, Lowenthal, Richman) — Transportation Investment Fund. Rec: By Minute Motion, concur with the action taken by the Legislative Review Committee at its meeting of April 27, 2004, and direct staff to prepare a letter of support for the Mayor's signature with regard to ACA29 (Harman, Lowenthal, Richman). S-4. CONSIDERATION of Legislative Review Committee Action on SB744 (Dunn and Ducheny) — Housing. Rec: By Minute Motion, concur with the action taken by the Legislative Review Committee at its meeting of April 27, 2004, and direct staff to prepare a letter of opposition for the Mayor's signature with regard to SB744 (Dunn and Ducheny). 9 �'+"•i7rt.::. rim. ,' PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING MAY 13, 2004 S-5. CONSIDERATION of Legislative Review Committee Action on SB1179 (Ducheny) — Enterprise Zones. Rec: By Minute Motion, concur with the action taken by the Legislative Review Committee at its meeting of April 27, 2004, and direct staff to prepare a letter of support for the Mayor's signature with regard to SB1179 (Ducheny). S-6. CONSIDERATION of Legislative Review Committee Action on SB1263 (Torlakson) — Mandatory Approval of Development Projects. Rec: By Minute Motion, concur with the action taken by the Legislative Review Committee at its meeting of April 27, 2004, and direct staff to prepare a letter of opposition for the Mayor's signature with regard to SB1263 (Torlakson). S-7. CONSIDERATION of Legislative Review Committee Action on SB1346 (Ducheny) — Fire Prevention and Suppression. Rec: By Minute Motion, concur with the action taken by the Legislative Review Committee at its meeting of April 27, 2004, and direct staff to prepare a letter of opposition for the Mayor's signature with regard to SB1346 (Ducheny). S-8. CONSIDERATION of Legislative Review Committee Action on SB1404 (Soto) — Multi -family Improvement Districts. Rec: By Minute Motion, concur with the action taken by the Legislative Review Committee at its meeting of April 27, 2004, and direct staff to prepare a letter of opposition for the Mayor's signature with regard to SB1404 (Soto). S-9. CONSIDERATION of Legislative Review Committee Action on SB1592 (Torlakson) — Local Planning. Rec: By Minute Motion, concur with the action taken by the Legislative Review Committee at its meeting of April 27, 2004, and direct staff to prepare a letter of opposition for the Mayor's signature with regard to SB1592 (Torlakson). 10 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING MAY 13, 2004 S-10. CONSIDERATION of Legislative Review Committee Action on ACA30/AB3105 (Steinberg and Campbell) and SCA21/SB1774 (Torlakson and Johnson) — Local Government Finance. Rec: By Minute Motion, concur with the action taken by the Legislative Review Committee at its meeting of April 27, 2004, and direct staff to prepare a letter of opposition for the Mayor's signature with regard to ACA30/AB3105 (Steinberg and Campbell) and SCA21/SB1774 (Torlakson and Johnson). S-11. CONSIDERATION of Legislative Review Committee Action on SCA22 (Johnson and Torlakson) — League of California Cities' Initiative. Rec: By Minute Motion, concur with the action taken by the Legislative Review Committee at its meeting of April 27, 2004, and direct staff to prepare a letter of support for the Mayor's signature with regard to SCA22 (Johnson and Torlakson). T REQUEST FOR APPROVAL of Payment to the League of California Cities for the Grass Roots Coordinator Program. Rec: By Minute Motion, concur with staff and approve payment in the amount of $4,000 to the League of California Cities. U-1. CONSIDERATION of Request for Sponsorship of the Foundation for the Retarded of the Desert's Celebrity Golf Classic. Rec: By Minute Motion, approve the subject request in the amount of $2,500 and appropriate said funds for this purpose. U-2. CONSIDERATION of Request by the Palm Desert Chamber of Commerce Relative to Date of the Annual Golf Cart Parade. Removed for separate consideration under Section XI, Consent Items Held Over. Please see that portion of the Minutes for Council discussion and action. U-3. CONSIDERATION of Request for Sponsorship of the Virginia Waring International Piano Competition. Rec: By Minute Motion, concur with the recommendation of the Marketing Committee and approve a $50,000 sponsorship of the subject event to be held in January 2005. 11 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING MAY 13, 2004 V. REQUEST FOR APPROVAL of the Serving of Wine in Connection with Art Gallery Receptions in June 2004. Rec: By Minute Motion, permit the possession and serving of alcoholic beverages in connection with receptions for the "Artistic Benches Proposals" and the "Coachella Valley Watercolor Society" Exhibitions to be held in the North Wing Gallery on June 1, and June 15, 2004, respectively. W. REQUEST FOR APPROVAL of the Expenditure of Cal COPS Grant Funds for Purchase of Computer Equipment. Rec: By Minute Motion, concur with the recommendation of the Public Safety Commission and approve an expenditure of approximately $9,551.17 in Cal COPS grant funding for the purchase of computer equipment. X. REQUEST FOR WAIVER of Fees Associated with the Washington Charter School's Fiesta Dance Troupe Production. Rec: By Minute Motion, approve the request of the Washington Charter School Parent Club Foundation for a waiver of fees for use of the Civic Center Amphitheater and Pavilion #1 for the subject event to be held on May 15, 2004. Y. REQUEST FOR RATIFICATION of City Manager's Approval of Out -of -State Travel by Community Services Division's Senior Management Analyst to Participate in a Legislative Summit in Culiacan, Mexico, April 22-25, 2004. Rec: By Minute Motion, ratify the subject out-of-state travel by the Community Services Division's Senior Management Analyst as a governmental representative from Riverside County and the expenditure of $668.54 for same — funds are available in Account No. 110-4112-410-3120. Z. INFORMATIONAL ITEMS: 1. Progress Report on Retail Center Vacancies Councilmember Benson asked that Item U-2 be removed from the Consent Calendar for separate discussion under section XI, Consent Items Held Over. Upon motion by Crites, second by Benson, the remainder of the Consent Calendar was approved as presented by a 5-0 vote. 12 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING MAY 13, 2004 XI. CONSENT ITEMS HELD OVER U-2. CONSIDERATION of Request by the Palm Desert Chamber of Commerce Relative to Date of the Annual Golf Cart Parade. Councilmember Benson stated that the Golf Cart Parade was a tradition in the City of Palm Desert. It was originally held in July of each year and had been changed to November many years ago. It was meant to be a local event for the residents, and she did not agree with the analysis to change it to January. She felt it should remain a November event when it is still fairly quiet in the desert, and most year-round residents are here at that time. Councilman Ferguson agreed and said he had always looked at the Golf Cart Parade as a way of kicking off the season for the residents and getting everyone in a festive mood. Mayor Spiegel said this matter had been brought to the Council by the Palm Desert Chamber of Commerce. One of the reasons for the recommended change of date was that Bill Powers, who is involved with the Bob Hope Classic, felt he could get golfers and other individuals involved with the parade. He suggested that the Council revisit this request if the Chamber of Commerce comes up with a more compelling reason for changing the date. Mayor Pro Tem Crites moved to deny the request for a change in date unless the Chamber of Commerce could present a more compelling reason for changing the date of this community event traditionally held for local residents. Motion was seconded by Ferguson and carried by a 5-0 vote. With City Council concurrence, Mayor Spiegel suspended the Agenda at this point and took up XIV-New Business Item G. Please see that portion of the Minutes for subsequent discussion and action. XII. RESOLUTIONS A. RESOLUTION NO. 04-34 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, AUTHORIZING THE CITY TO ENTER INTO A MEMORANDUM OF UNDERSTANDING (MOU) WITH THE ENERGY COALITION, A CALIFORNIA NON-PROFIT CORPORATION. Mr. Ortega reviewed the staff report and offered to answer any questions. Mayor Pro Tem Crites moved to waive further reading and adopt, authorizing the City to enter into a new MOU with the Energy Coalition, facilitating a partnership of Southern California cities and their partner utilities — Southern California Edison and Southern California Gas, known as the "Community Energy Partnership" (Contract 13 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING MAY 13, 2004 No. C22650). Motion was seconded by Benson and carried by a 4-0 vote, with Councilman Ferguson ABSENT. B. RESOLUTION NO. 04-35 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, APPROVING THE "REQUEST FOR ASSISTANCE" FROM THE CALIFORNIA ENERGY COMMISSION FOR DEVELOPMENT OF AN ENERGY EFFICIENCY, COGENERATION PROJECT AT CITY HALL. Mr. Ortega reviewed the staff report and offered to answer any questions. Mayor Pro Tem Crites moved to waive further reading and adopt Resolution No. 04-35. Motion was seconded by Benson and carried by a 4-0 vote, with Councilman Ferguson ABSENT. C. RESOLUTION NO. 04-36 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, INITIATING PROCEEDINGS FOR THE UNDERGROUNDING OF OVERHEAD ELECTRIC AND COMMUNICATION UTILITY FACILITIES TO UNDERGROUND FACILITIES PURSUANT TO THE PROVISIONS OF CHAPTER 12.12 OF THE PALM DESERT MUNICIPAL CODE AND THE MUNICIPAL IMPROVEMENT ACT OF 1913 (PALM DESERT HIGHLANDS). Mayor Spiegel noted that he would abstain from discussion and voting on this matter because it dealt with an area in which he lives. Special Projects Administrator Pat Conlon reviewed the staff report and offered to answer any questions. MR. DAVID WARE, 72-987 Skyward Way, thanked the Council for its support and for providing this opportunity. Councilman Kelly moved to waive further reading and adopt Resolution No. 04-36. Motion was seconded by Benson and carried by a 3-0 vote, with Councilman Ferguson and Mayor Spiegel ABSENT. XIII. ORDINANCES For Introduction: None 14 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING MAY 13, 2004 For Adoption: A. ORDINANCE NO. 1064 - AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, AMENDING SECTIONS 11.01.010 AND 11.01.120 OF THE PALM DESERT MUNICIPAL CODE, RELATIVE TO CONTROL OF DOGS AT THE HOMME/ADAMS AND CAHUILLA HILLS PARKS. Mayor Pro Tem Crites moved to waive further reading and adopt Ordinance No. 1064. Motion was seconded by Benson and carried by a 4-0 vote, with Councilman Ferguson ABSENT. XIV. NEW BUSINESS A. CONSIDERATION OF THE ACCEPTANCE AND PURCHASE OF 20 "ARTISTIC BENCH " DESIGNS FROM THE RESPECTIVE ARTISTS AND SPONSORSHIP OF ONE OR MORE OF THE SELECTED BENCHES (CONTRACT NO. C22660). Mr. Ortega noted the staff report and recommendation in the packets. Upon question by Mayor Spiegel as to who would pay for all these benches, Mr. Twedt responded that sponsors of the benches will be put in contact with the artists, and they will work out all the agreements. In addition, the Art In Public Places Commission was requesting $10,000 to sponsor one or more benches. Councilmember Benson noted that the Art In Public Places Commission felt if the City supported the benches, had the confidence they would be sold, and purchased two to start with, the other people would come forward to sponsor them. Councilman Kelly moved to, by Minute Motion: 1) Accept and purchase the 20 "Artistic Bench" designs selected by the Art In Public Places Commission for $250 each from the respective artists and appropriate said funds from Account No. 436-4650-454-3092; 2) sponsor one or more of the designs selected by the Art In Public Places Commission in an amount not to exceed $10,000 for the total project and appropriate funds from Account No. 436-4650-454-4001 for same, with the understanding that prior to being placed, the benches would be approved by the Art In Public Places Commission. Motion was seconded by Crites and carried by a 4-0 vote, with Councilman Ferguson ABSENT. 15 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING MAY 13, 2004 B. REQUEST FOR APPROVAL OF THE COMMISSIONING OF AN ARTIST TO CREATE A MURAL FOR THE PALM DESERT LIBRARY COMMUNITY ROOM (CONTRACT NO. C22080). Mr. Twedt asked that the Council continue this matter so that it could be brought to the Library Committee. Mrs. Klassen added that although staff had provided notification to the College of the Desert, they did not receive it and had not had adequate time to provide their input. Mayor Pro Tem Crites moved to continue this matter to the meeting of June 10, 2004. Motion was seconded by Kelly and carried by a 4-0 vote, with Councilman Ferguson ABSENT. C. CONSIDERATION OF THE SELECTION OF TWO SCULPTURES TO BE INTEGRATED WITH THE SMALL STONE EL PASEO MONUMENT SIGNS BETWEEN HIGHWAY 111 AND PORTOLA AVENUE, AND EL PASEO WEST OF HIGHWAY 74 (CONTRACT NO. C22670). Mr. Twedt noted that the six prioritized sculpture finalists were on display in his office, and each member of the Council had an opportunity to review them. He reviewed the staff report and offered to answer any questions. Councilmember Benson asked if Council would have a choice on Priority #1 and #2 as far as which entrance it goes to. Mr. Twedt responded that Council could make that determination. Mayor Spiegel stated right now there is a wooden sign that stands about five feet tall, and right at the top it says El Paseo. He said he would like to see the words "El Paseo" larger than what is shown in any of these, and he would also like the words to be higher so that people know when they are on El Paseo. Councilman Kelly agreed and said that sometimes the name itself becomes as important as the piece of art. He felt it was a mistake to have an asset like El Paseo and not make that the center point of a piece of art. Mr. Twedt noted that there were two water/sculpture features that were being installed at Highway 74 and El Paseo and at Portola and El Paseo. They have about 16-inch letters in polished brass that reads "El Paseo" and there is a veil of water behind those letters that cascades down a copper etched surface that would be good at night. The monument signs in front of Council were the small ones that are between Highway 74 and Highway 111 and between Portola Avenue and Highway 111. Although they were nicely designed, they were small letters. He said he planned to go out and shine 16 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING MAY 13, 2004 them up and seal them with acrylic so that people can see the words "El Paseo" when they drive by. He added that the concept was not to destroy the signs because they are nicely designed. Mayor Pro Tem Crites moved to, by Minute Motion, approve the two top choices of the prioritized sculptures. Motion was seconded by Benson. On a 2-2 vote, the motion did not pass. Mayor Pro Tem Crites moved to continue this matter to the meeting of June 10, 2004, in order for staff to provide further information about what the sculptures would look like with the small monument signs. Motion was seconded by Kelly and carried by a 4-0 vote, with Councilman Ferguson ABSENT. D. REQUEST FOR APPROVAL OF A MEMORANDUM OF UNDERSTANDING (MOU) WITH THE CITY OF INDIAN WELLS FOR WIDENING AND RELATED CONSTRUCTION ALONG FRED WARING DRIVE FROM DEEP CANYON ROAD TO CALIFORNIA AVENUE (CONTRACT NO. C22680). Mr. Ortega noted the staff report in the packets, noting that staff would like to provide some additional information regarding the recommendation on Valley Palms. Management Analyst Ryan Gayler stated that staff had contacted the various residents who would be impacted along the corridor, and Valley Palms had some concerns regarding the auxiliary lane that is associated with the free right. They felt adding this auxiliary lane would cause them some additional concerns turning into their development. Since the City needs some additional right of way from them for some easements for sidewalks, it was decided the City could most likely improve the three corners, not install this free right at this time and proceed with the project until such time as another analysis is done of this movement. Mayor Spiegel noted that Aztec Way will be in by the end of the summer, so staff will have a chance to look at that as well. Councilman Kelly moved to, by Minute Motion, approve the MOU with a minor modification as presented at this meeting, to postpone installation of the auxiliary/free right lane proposed near Valley Palms development in order to further assess the traffic movement once improvements are made to the other three corners and following construction of Aztec Lane. Motion was seconded by Benson and carried by a 4-0 vote, with Councilman Ferguson ABSENT. 17 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING MAY 13, 2004 E. REQUEST FOR APPROVAL OF DEPOSIT AND REIMBURSEMENT AGREEMENTS FOR COSTS ASSOCIATED WITH THE FORMATION OF AN ASSESSMENT DISTRICT FOR FINANCING CERTAIN PUBLIC IMPROVEMENTS IN THE VICINITY OF DEVELOPMENT KNOWN AS UNIVERSITY PARK. Redevelopment Finance Manager Dennis Coleman reviewed the staff report and recommendation. He noted that this would in no way obligate the City to actually approve or authorize the sale of the bonds, and that was a separate action that would come back at a later time. All this does by agreeing to the deposit agreement and authorizing the Mayor to execute is it gets the process started. Upon question by Mayor Spiegel, he stated that this will never cost the City a penny. Councilmember Crites moved to, by Minute Motion, approve the subject Deposit and Reimbursement Agreements with Desert Wells 237, LLC /Palm Desert 124, Inc., Palm Springs, California, (Contract No. C22690A) and American Realty Trust, Inc., Dallas, Texas, (Contract No. C22690B) and authorize the Mayor to execute same. Motion was seconded by Benson and carried by a 4-0 vote, with Councilman Ferguson ABSENT. F. CONSIDERATION OF THE INITIATION OF PROCEEDINGS TO FORM SEVEN LANDSCAPING AND LIGHTING DISTRICTS: OLIVE COURT, PETUNIA I, PETUNIA II, SUNDANCE EAST, COLLEGE VIEW CIRCLE, THE BOULDERS, AND PALM COURT SUBDIVISIONS. Mr. Ortega noted the staff report and recommendation in the packets. Mayor Pro Tem Crites moved to waive further reading and adopt: 1) Resolution No. 04-37, initiating proceedings for formation of the subject Landscaping and Lighting Districts and the concurrent annexation of said districts and territory into the Palm Desert Consolidated Landscaping and Lighting District; 2) Resolution No. 04-38, approving the Preliminary Engineer's Reports regarding formation of the subject Landscaping and Lighting Districts; 3) Resolution No. 04-39, calling for a property owner protest proceeding to submit to the qualified property owners the question of levying such assessments and establishing an assessment range formula for said districts, and the levy and collection of annual assessments related thereto, commencing with FY 2004/05. Motion was seconded by Kelly and carried by a 4-0 vote, with Councilman Ferguson ABSENT. G. CONSIDERATION OF THE DISCUSSION OF VARIOUS COVE COMMISSION FUNDING FORMULAS. Mr. Ortega reviewed the staff report, noting that as of July 1' there is no agreement on a funding formula by which the Cove Commission can continue to contract with the County of Riverside for provision of fire services. One of the members of the Cove Commission had notified the City of its intent to pull out of the Commission because they felt the current 18 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING MAY 13, 2004 distribution of costs is inequitable. He said Palm Desert needed to decide if it would continue to be part of the Cove Commission and contract through the Cove Commission with the County of Riverside for services. If so, the Council needed to express a preference for a particular formula, and several alternatives had been provided in the staff report. If the Council decided not to continue the contract through the Cove Commission, a decision needed to be made as to how the City will proceed to provide those services to the residents. Mayor Pro Tem Crites asked, if the Council decides to contract independently with the County of Riverside for fire services as it does for police services, whether decisions would have to be made at this time in terms of what that contract would look like or if staff could be directed to negotiate a contract and bring the contract back to Council for approval. Mr. Ortega responded that staff could be directed to bring back a contract to the Council. MR. DARREN HOOPINGARNER, CDF Firefighters Riverside Chapter Director, 33475 Manchester Road, Temecula, stated he represented the thousand CDF firefighters who serve as the Riverside County Fire Department and Cove Communities. He said the Association did not have a position as far as how the City does its contract; however, if Council will be discussing the level of staffing, he would like to address that point. Mayor Spiegel noted that staffing was not an item that Council was considering at this time. Councilman Kelly said he felt Cove Commission had done a great job and serves a purpose; however, he felt now that Palm Desert has grown, soon to be 50,000 residents, it would be very beneficial to the City if it had its own contract for fire the same as it does with the Sheriff's Department. He said the Sheriffs contract was coordinated through Cove Commission, and Palm Desert could continue with the Cove Commission to coordinate those things where it is beneficial for the cities to do those services together; in the meantime, each city could negotiate its own contracts just as they do with police services. He said he would not be in favor of changing the formula at this time, but he would be in favor of accepting Indian Well's withdrawal from Cove Commission. Councilman Kelly moved to, by Minute Motion: 1) Accept Indian Wells' withdrawal from the Cove Commission; 2) direct staff to begin negotiating a stand-alone contract for Firefighting and Paramedic Services with the County of Riverside, to be crafted with certain parameters/options that can be discussed for final approval. Motion was seconded by Benson. 19 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING MAY 13, 2004 Councilman Ferguson stated he and Councilman Kelly had been studying this for a year, ever since receiving notice from the City of Indian Wells, and had looked at all the reasons that earned the Cove Commission the Helen Putnam Award. At the time the Cove Commission was formed, all three cities had less than 25,000 people, and it made sense to have regional fire through the Cove Commission. Now there were approximately 80,000 people. The way the contract was structured, if Palm Desert wanted to increase the level of service or change its priorities in a certain area and one of the other cities did not agree, it could not be done. He said Palm Desert's police department was a wonderful example of how the City wanted to tailor- make its public safety program and put money where it was felt to be needed. He added that he would like the ability and flexibility to tailor-make fire protection in Palm Desert the way the Council feels is best for its residents and not necessarily be handcuffed by the cities to the east and west. In talking to these other cities, he said the general opinion was that they felt the same way. Mayor Spiegel called for the vote, and the motion carried by a 5-0 vote. With City Council concurrence, Mayor Spiegel suspended the Agenda again at this point and took up XVII-Public Hearing Items A and C, respectively. Please see that portion of the Minutes for subsequent discussion and action. H. CONSIDERATION OF RESPONSE TO CITY COUNCIL DIRECTIVE TO INVESTIGATE PARKING SHORTAGE AT LENNON PLACE AND ECLECTIC STREET. Mr. Ortega noted this was an item coming back to Council as a result of a complaint from the owner of a small restaurant. Staff continued to recommend that the City not establish angled parking or parking time limits. When staff went out there, it was discovered that there are two major users of street parking for employees — Warner Cable and Waste Management. He said he would be setting up a meeting with both of those companies to see what might be done, including whether the City participates in helping to solve some of their employee parking. Councilman Kelly moved to continue this matter to the meeting of June 10, 2004, in order to provide the City Manager time to meet with each Time Warner Cablevision and Waste Management about possible solutions to employee parking for their organizations to alleviate overall parking concerns in this area. Motion was seconded by Spiegel and carried by a 4-0 vote, with Councilman Ferguson ABSENT. 20 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING MAY 13, 2004 I. REQUEST FOR APPROVAL OF THE TRANSFER OF THE DISPOSITION DEVELOPMENT AGREEMENT AND ITS AMENDMENTS, AND THE DEVELOPMENT AGREEMENT FROM INTRAWEST RESORT OWNERSHIP CORPORATION TO ITS PARENT COMPANY, INTRAWEST CORPORATION (JOINT CONSIDERATION WITH THE PALM DESERT REDEVELOPMENT AGENCY). Mr. Ortega noted the staff report and recommendation in the packets. Mayor Pro TemNice Chairman Crites moved to, by Minute Motion, approve the transfer of the Disposition Development Agreement and its amendments, and the Development Agreement from Intrawest Resort Ownership Corporation to its parent company, Intrawest Corporation, and authorize the City and Agency to execute the agreements authorizing said transfer. Motion was seconded by Benson and carried by a 4-0 vote, with Councilman/Member Ferguson ABSENT. J. REQUEST FOR APPROVAL OF PAYMENT FOR ALL OR A PART OF THE VALUE OF THE LAND FOR AND THE COST OF THE INSTALLATION AND CONSTRUCTION OF CERTAIN IMPROVEMENTS TO FRED WARING DRIVE (JOINT CONSIDERATION WITH THE PALM DESERT REDEVELOPMENT AGENCY). Mr. Coleman reviewed the staff report and recommendation. Councilman/Member Kelly moved to waive further reading and adopt: 1) City Council Resolution No. 04-40, approving payment by the Palm Desert Redevelopment Agency for all or a part of the value of the land for and the cost of the installation and construction of certain improvements to Fred Waring Drive; 2) Redevelopment Agency Resolution No. 491, authorizing payment by the Palm Desert Redevelopment Agency for all or a part of the value of the land for and the cost of the installation and construction of certain improvements to Fred Waring Drive. Motion was seconded by Crites and carried by a 4-0 vote, with Councilman/Member Ferguson ABSENT. XV. CONTINUED BUSINESS A. REQUEST FOR APPROVAL OF ENERGY CONSERVATION AND CO -GENERATION PROJECT FOR THE CIVIC CENTER AS PROPOSED BY NORESCO (Continued from the meetings of March 25, and April 8, 2004). Mr. Ortega noted that staff had decided to do this a different way; the reason this matter was on the Agenda was because Council had continued it. He suggested that it be removed from the Agenda with no action. Councilman Kelly moved to remove this matter from the Agenda. Motion was seconded by Crites and carried by a 4-0 vote, with Councilman Ferguson ABSENT. 21 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING MAY 13, 2004 XVI. OLD BUSINESS A. REQUEST FOR AWARD OF CONTRACT FOR CONSOLIDATED LANDSCAPE MAINTENANCE AREA NO. 1 (CONTRACT NO. C22230). Mayor Pro Tem Crites moved to, by Minute Motion, award the subject contract to Garza Landscaping, Inc., Indio, California, in the amount of $94,560 and authorize the Mayor to execute same — funds are available for this program in Account No. 110-4611-453-3370. Motion was seconded by Kelly and carried by a 4-0 vote, with Councilman Ferguson ABSENT. B. REQUEST FOR AWARD OF CONTRACT FOR CONSOLIDATED LANDSCAPE MAINTENANCE AREA NO. 2 (CONTRACT NO. C22440). Mayor Pro Tem Crites moved to, by Minute Motion, award the subject contract to Garza Landscaping, Inc., Indio, California, in the amount of $115,860 and authorize the Mayor to execute same —funds are available in Account No. 110-4611-453-3370. Motion was seconded by Kelly and carried by a 4-0 vote, with Councilman Ferguson ABSENT. C. REQUEST FOR AWARD OF CONTRACT FOR CONSOLIDATED LANDSCAPE MAINTENANCE AREA NO. 3 (CONTRACT NO. C22240). Mayor Pro Tem Crites moved to, by Minute Motion, award the subject contract to Garza Landscaping, Inc., Indio, California, in the amount of $98,400 and authorize the Mayor to execute same — funds are available in Account No. 110-4611-453-3320. Motion was seconded by Kelly and carried by a 4-0 vote, with Councilman Ferguson ABSENT. D. REQUEST FOR AWARD OF CONTRACT FOR CONSOLIDATED LANDSCAPE MAINTENANCE AREA NO. 6 (CONTRACT NO. C22250). Mayor Pro Tem Crites moved to, by Minute Motion, award the subject contract to Garza Landscaping, Inc., Indio, California, in the amount of $88,680 and authorize the Mayor to execute same — funds are available in Account No. 241-4195-495-3320. Motion was seconded by Kelly and carried by a 4-0 vote, with Councilman Ferguson ABSENT. XVII. PUBLIC HEARINGS A. CONSIDERATION OF THE RESULTS OF THE PROPERTY OWNER BALLOTING FOR INCREASED ASSESSMENTS FOR CERTAIN ZONES WITHIN THE PALM DESERT CONSOLIDATED LANDSCAPING AND LIGHTING DISTRICT (Continued from the meeting of April 22, 2004). Senior Management Analyst Martin Alvarez reviewed the staff report, noting that ballots had been mailed to 12 districts that would be renovated if 22 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING MAY 13, 2004 residents approved their levies. Staffs recommendation was that the public hearing be opened to allow staff to tally the results of the ballots. Staff would then return with those results at the conclusion of the second public hearing. Mayor Spiegel declared the public hearing open in order to allow staff the opportunity to tally the ballots. Mayor Pro Tem Crites moved to continue this public hearing until later in the meeting. Motion was seconded by Ferguson and carried by a 4-0 vote, with Councilman Kelly ABSENT. Following the dinner recess, Mayor Spiegel invited testimony in FAVOR of or in OPPOSITION to this matter. MS. DIANE PALLINI, 40993 Sonata Court, Palm Desert, stated that per Proposition 218, no local government may impose, extend, or increase any special tax unless and until such tax is submitted to the electorate and approved by a two-thirds vote. Mr. Ortega noted that these are assessment district taxes. Mr. Alvarez added that this is a majority protest proceeding, not a two-thirds vote. With no further testimony offered, Mayor Spiegel declared the public hearing closed. Mrs. Klassen announced the balloting results as follows: ZONE Zone #5 - Desert Mirage Zone #6 - Hovley - The Glen Zone #6 - Hovley - Estates Zone #6 - Hovley - Sonata I Zone #6 - Hovley - Sonata II Zone #6 - Hovley - Collection Zone #6 - Zone #6 - Zone #6 - Zone #6 - Zone #8 - Zone #14 Hovley - La Paloma Hovley - Sandpiper Ct. Hovley - Sandpiper W. Hovley Ct. - West Palm Gate -K&B YES/% $5,186.16 (70%) 1,105.92 (50%) 4,673.04 (100%) 3,211.80 (71.43%) 7,172.04 (88.06%) 4,385.92 (48.28%) NO/% $2,222.64 (30%) 1,105.92 (50%) -0- 1,284.72 (28.57%) 972.48 (11.94%) 4,699.20 (51.72%) 2,948.64 (72.73%) 1,105.74 (27.27%) 1,514.24 (57.14%) 1,135.68 (42.86%) 3,005.28 (100%) -0- 1,995.90 (45.45%) 2,395.08 (54.55%) 962.28 (33.33%) 1,924.56 (66.67%) 6,328.80 (66.67%) 3,164.40 (33.33%) She noted that Zone #6 (Hovley - Collection), Zone #6 (Hovley Court - West), and Zone #8 (Palm Gate) had failed because they did not have a majority protest. 23 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING MAY 13, 2004 Mayor Pro Tem Crites moved to waive further reading and adopt Resolution No. 04-41, with the results as stated above to be inserted therein. Motion was seconded by Benson and carried by a 4-0 vote, with Councilman Ferguson ABSENT. B. REQUEST FOR APPROVAL OF A CHANGE OF ZONE FROM PR-5 (PLANNED RESIDENTIAL, FIVE UNITS PER ACRE) TO PR-13 (PLANNED RESIDENTIAL, 13 UNITS PER ACRE), A PRECISE PLAN/CONDITIONAL USE PERMIT AND A NEGATIVE DECLARATION OF ENVIRONMENTAL IMPACT AS IT RELATES THERETO FOR A 25-ACRE SITE ON THE NORTH SIDE OF GERALD FORD DRIVE, 636 FEET EAST OF MONTEREY AVENUE (73-240 GERALD FORD DRIVE, APN 653-260-029) — PROJECT INCLUDES A HEIGHT EXCEPTION FOR TOWER ELEMENTS 27 FEET IN HEIGHT AND A HOUSING AGREEMENT (IDENTIFIED AS DA 03-02), WHICH WILL INCLUDE, AMONG OTHER MATTERS, PROVISIONS FOR AFFORDABLE HOUSING UNITS Case Nos. C/Z 03-04, TT 31363, PP/CUP 03-06, and DA 03-02 (Sares Regis Group c/o Greg Albert, Applicant) (Continued from the meeting of April 8, 2004). Mr. Drell reviewed the staff report, noting that at the last hearing there were some issues regarding the applicability of the seven criteria for the affordable overlay that had been resolved, including the following: Access to transit — staff reconfirmed with SunLine that when this area develops, there will be a service on Gerald Ford and a bus stop in front of this project, and it had been conditioned to provide a turnout on Gerald Ford. If service is provided before the project is built, they will also provide a bus shelter. Landscape concept — staff met with the Landscape Committee and, in general, it was agreed the project was consistent with the direction the City wants it to go. Appropriate level of "affordability" — the Redevelopment Agency assisted staff in refining and improving the housing agreement. An analysis was conducted on whether "we can squeeze any more blood out of this turnip" relative to affordable housing given the relatively low density and the bottom end of the high density range and the high end of the design quality range. The analysis essentially concurred with the original analysis. Based on the proforma submitted by the applicant, they have more precisely defined the definition of moderate income housing, formerly being 120% of median, now a range of units within the range of affordability from 100% to 115%. He said there was also operational language relative to how the affordable program will be implemented and enforced. They had also included a sample 24 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING MAY 13, 2004 regulatory agreement which further defines the implementation of the affordable program, especially in terms of the ownership component if and when it were to convert to condominiums. The regulatory agreement will be refined and the blanks filled in to implement that. He added that this will be the most affordable new housing being built in the City. — The issue of housing tenure: rental or ownership — this project is part of a larger neighborhood that is being planned with up to 60 to 70% ownership. Mr. Drell noted that on page 5 of the report, he had attempted to score this project to the seven criteria, and the project scored 64 out of a possible 70 points, or 91%. He said staff recommended approval of this project. Councilman Kelly questioned the score of 10 for the criteria that high -density residential neighborhoods shall be located in proximity and have convenient access to public transportation. He said he would think a 10 for this criteria would be reserved for a project where the public transportation was already there. The fact that a bus stop is planned at this project should give it a high number but not a 10 because there is not already a bus going by there. The same holds true for the other criteria as well. He expressed concern that these criteria were not being used the way he felt they should. Mayor Spiegel stated he had met with the developer recently and discussed the possibility of a child care center and the possibility that because this is in the Palm Springs Unified School District, they might provide someone for child care just as Desert Sands does for One Quail Place. MR. MIKE WINTER, Sares Regis Group, 18825 Bardeen Avenue, Irvine, stated they had been in contact with the school district and were in the process of trying to contact the Assistance Superintendent at this time. He said he would report back to the Council on the outcome of that discussion. He said there were several issues with regard to having child care on the site, including liability. He said they were trying to work with the school district to find out if there was something that could be done together. Councilman Kelly stated that once there is a bus route out there, it would be nice if the developer did a bus shelter that would match the development. He stated that perhaps something could be worked out where the developer will help the City with its shelter program now, and then when there is a stop at the project, the City will build it. Mr. Winter stated that they would certainly work with the City on this. 25 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING MAY 13, 2004 Mayor Spiegel declared the public hearing open and invited testimony in FAVOR of or in OPPOSITION to this request. Mr. Winter thanked the Council for considering the project. He offered to answer any other questions that might come up. He noted that they had a tremendous investment of time and capital in this project. They realized during the two years they had worked with the City on this project, the City had been working very hard on the General Plan update. Fortunately, their landowner was patient enough to allow them to take the time to work with the City through this planning process; however, they were at a point where their purchase agreement was about ready to expire. If they did not secure approval today, they could lose the project. With nofurthertestimonyoffered, Mayor Spiegel declared the public hearing closed. Councilman Kelly moved to waive further reading and: 1) Pass Ordinance No. 1065 to second reading, relating to C/Z 03-04; 2) adopt Resolution No. 04-24, approving TT 31363 and PP/CUP 03-06, subject to conditions, including a condition requiring execution of a Housing Agreement, which will include, among other matters, provisions for affordable housing units; 3) pass Ordinance No. 1066 to second reading, relating to Housing Agreement (DA 03-02), subject to a provision to be considered with the second reading of Ordinance Nos. 1065 and 1066 for bus shelter construction in another area of the City in the immediate future in return for the City's assistance with installation of a shelter next to this project when it is needed. Motion was seconded by Crites and carried by a 4-0 vote, with Councilman Ferguson ABSENT. C. REQUEST FOR APPROVAL OF A CHANGE OF ZONE FROM OPEN SPACE (O.S.)TO R-1, 9,000 FOR41 LOTS AROUND THE GOLF COURSE PERIMETER; A CHANGE OF ZONE FROM OPEN SPACE (O.S.) TO PR-6 FOR 9.68 ACRES IN THE AREA OF THE EXISTING DRIVING RANGE; A TENTATIVE TRACT MAP TO CREATE 94 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). Mr. Drell summarized the staff report and offered to answer any questions. 26 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING MAY 13, 2004 Mayor Pro Tem Crites stated that in reading the correspondence, it seemed that most people felt the golf course was substandard and needed work. He said there was originally a Planning Department Condition #17 which dedicated to open space purposes the remaining golf course area for 30 years, and this condition disappeared. There were several pieces of correspondence from individuals who were less than enthused about that. He asked if staff would have any objection to that condition being added back in. Mr. Drell responded that he would not have any objection, but the applicant had his own reasons for not wanting that condition included. He said staff was comfortable with the fact that it is zoned open space, and the City has complete control over what happens in open space. Mayor Pro Tem Crites asked if he was correct that there is no data so far on the redesign of the course itself. He said in looking at the course, there is no way the City would ever approve a course like that today, given water calculations and all of the issues in terms of the future of water use in the Coachella Valley. He asked if those issues were going to come back to the Council at some point. Mr. Drell responded that if the Council wishes to review that in the future, that was a condition that could be added. Mayor Pro Tem Crites stated that with regard to the imposed photographs of the in -fill in the existing driving range, it had been his experience over the years that there is often a remarkable disparity between photographs and the reality of what happens. He asked if there was a particular reason why this was done rather than going out and placing story poles so people can see what the actual heights of the buildings will be. Mr. Drell responded that staff felt these would be normal, conventional houses that could be accurately represented. Mayor Pro Tem Crites asked if there had been an independent financial look at how many homes, how much change, was necessary to accommodate what is being proposed. The developer had provided a financial analysis, but he wondered if the City had had an independent analysis done as well. Mr. Drell responded that this project was run by a different developer of high end housing to see whether, based on the improvements proposed, they were in the range of industry standards, and they were. In terms of a rigorous look, there had not been an independent analysis. Councilman Ferguson asked what the existing CC&R's allowed for in Palm Desert Country Club and whether they permitted this type of development. 27 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING MAY 13, 2004 Mr. Drell responded that the CC&R's guaranteed that the golf course would continue to exist for at least 30 years, and there are five-year extensions. We are in one of those automatic five-year extensions. The automatic extension provision can be terminated with a majority vote of the homeowners of a specific identified tract. Upon further question by Councilman Ferguson, he said that had not happened to his knowledge. He added that arguably, the CC&R's and the five-year extension was still operative at this point, although what preservation of the golf course means was debatable. He said the applicant would assert that they are preserving the golf course and, therefore, they are not in violation of the CC&R's. Councilman Ferguson stated that if the golf course would not be permitted today as it is built, it seemed this was a lawful, nonconforming use. Mr. Drell disagreed and said the City's water conservation ordinance does not apply retroactively. Councilman Ferguson said he understood this does not apply retroactively, but he asked whether, prospectively, the City had a lawful, nonconforming use ordinance that says no permit will be issued unless it is brought into conformance. Mr. Drell responded that the water conservation ordinance is not part of the zoning ordinance. He did not know whether the City's water conservation ordinance dealt with golf courses. Upon question by Councilman Ferguson as to whether the City's Landscape Committee had pondered that issue, Mr. Drell responded that he did not believe the City had ever applied its water conservation ordinance to any golf course, including its own golf course. Mayor Pro Tem Crites added that the Landscape Committee had not considered this issue. He said everything the Committee had looked at in the last four or five years had been of a remarkably different character than that. He added that from his perception, there were things that had to happen to make this the best golf course it can be and at the same time be a good steward of resources. Mr. Drell noted that requiring the course to implement all feasible water conserving technologies was appropriate. Councilman Kelly asked why the maintenance facility was not part of the Planning Commission approval when it was a major part of the approval process. Mr. Drell stated it was shown on a map, but there were no details. The details had subsequently been refined, and there had been two public meetings before the Architectural Review Commission, with significant 28 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING MAY 13, 2004 neighborhood attendance, on the design and location of the maintenance facility. Subsequent to those meetings, the design had been modified. Upon further question by Councilman Kelly, Mr. Drell agreed this would normally have been part of the Planning Commission process and that it was a significant omission. Upon question by Mayor Spiegel as to why approval of the maintenance facility did not go back to Planning Commission, Mr. Drell responded that it could be sent back to Planning Commission if the Council so chooses. Mayor Spiegel declared the public hearing open and invited testimony from the developer. MR. LARRY KOSMONT, partner in Palm Desert Development, LLC, 77200 California Avenue, Palm Desert/601 S. Figueroa, Los Angeles, gave a Powerpoint presentation on the proposed project. He that the project was originally designed to have 250 town homes. They realized after working with the neighborhood on a selective basis that this could never work. The redesign included 112 homes, and they worked hard with the community to evaluate each and every house placement. After direct and detailed input, they ultimately reduced that project to 95 homes with four floor plans as opposed to three. He said they had conducted hundreds of community meetings and a town hall meeting with standing room only. In addition, they had held many individual meetings with residents and had also met with golfers and the various social clubs at Palm Desert Country Club. He said the project before the Council today was based on the following guiding principles: 1) That an investment of at least $5 million is required to renovate the golf course; 2) the current golf course operations can support that level of investment; 3) in order to generate that level of investment, they needed to develop the 95 homes which have been carefully placed, and those 95 homes need to be compatible with the neighborhood and designed in a way that improves property values and is attractive to today's buyer. He said they had received over 800 residents' written support in the form of signed petitions, cards, and emails. In March 2004, ballots had gone out, and they received endorsement from the Homeowners Association because the election results proved overwhelming project support of nearly 70% of those who voted, and over 50% voted. They had the endorsement of every group, from the Board of Governors down through the social clubs. He said they had received unanimous approval from every board and committee and had been before Architectural Review Commission twice. With regard to the maintenance facility, they felt it was in the best place it could be. He said the proposed project was first and foremost a golf course and a public clubhouse improvement program, valued at $5 million. It was also a residential development program with single -story, single-family homes which fit with the later houses that had been built in the neighborhood. 29 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING MAY 13, 2004 MR. RANDY CASE, 77200 California, Palm Desert/601 S. Figueroa, Los Angeles, spoke as the project manager and reviewed the proposed golf course, clubhouse, and maintenance facility. He noted that of 27 holes, 18 were championship and 9 were executive. The extent of the renovations would not alter the 18-hole championship course, although it might reduce the yardage slightly by 40 or 50 yards, but par would still be the same. The executive course would have the first and second holes altered. Other than that, the entire 27 holes remains as is. He noted that they would go hole by hole with the improvements. He noted that this was one of only a few courses on a manual coupler irrigation system, and golf course employees (about five people) spend from about 10 at night to 6 in the morning going out and turning on the couplers to manually irrigate the golf course. This was extremely inefficient and used a tremendous amount of water. They planned to take out that manual system and replace it with an automated, state of the art, system for all 27 holes, and this would save 25-40% of the water. He said the golf course currently used about 1500 acre feet of water a year, which was enough for about 3000 homes a year. By the time they finished investing almost $2 million in an irrigation system, it would be using 800-900 acre feet of water, a substantial water savings. The three existing lakes would be completely refurbished, and a fourth lake with a three -tiered waterfall system would be added at the finishing two holes from each nine of the championship course, the 9th and 18th holes. They were looking to relocate the maintenance facility, currently located right off of New York, to between the 13th green and 14th tee box. He said they had spent a lot of time with the homeowners who live in the vicinity of the proposed maintenance facility, and they believed they had listened to both the Architectural Review Commission and their concerns and had put together a design they felt was doable and feasible. Their goal was to invest the money, do the right things with the irrigation, the golf course, and the maintenance facility to allow this course to maintain and sustain itself in a very high quality manner into the foreseeable future as far as they can see. They had originally proposed to put the maintenance facility due east of an existing 50 by 100-foot pump well station, but that generated a lot of comments from the neighbors and the Architectural Review Commission, and they reconsidered the location, size, and design, with the goal to be something so that the homeowners surrounding the facility would not even know it was there. There would be an eight -foot wall surrounding the maintenance facility, with mounded landscaping around it so that from a distance it would look like part of the golf course. Access was and is an issue, and they wanted to have a safe, reliable access that was not a detriment to the surrounding residents. The building itself would be a 5,000 to 6,000 square foot metal shed building of a color that fits in with the golf course. He said the property owner most affected would be Mr. Peterson, and they had worked with him and would be installing his property line an eight -foot decorative sound reduction wall similar to what would be put around the facility. They were also working with him to improve the sound barrier to his home; i.e., double panes on his 30 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING MAY 13, 2004 windows. He added that Mr. Peterson had sent correspondence to the City stating he would go along with what the developer is trying to do with this proposed project. MR. CASE stated another important feature to them was the clubhouse, which was located right in the middle of these homes. While it looked okay on the outside, it was deteriorating and needed to be remodeled. He said they would be putting $1.5 to $2 million into those renovations. He showed a rendering of how the clubhouse will look on the outside and explained changes that would be made to the inside, including remodeling all of the locker rooms and redoing and expanding the kitchen and dining areas. They were also planning to have golf cart storage in the clubhouse. They would be relocating the parking areas as well. MR. KOSMONT reviewed the residential development portion of this project, noting that this portion was key for the investment of the course and to create a greater sense of excitement to the neighborhood. The plan will utilize and replicate the fundamental layout as much as possible; in addition, it will include new homes that are designed to capture the more recent development pattern in this neighborhood. Floor plans will range from 1,700 square feet to 1,850, and the average size of homes in this neighborhood was in the 1,400 foot range, with the larger ones at about 1,800. All homes would be single level and all would have three bedrooms with 2'/2 baths. In addition, 90% of the homes would have golf course frontage. MR. CASE stated that there were two components to the residential — the outlying lots, which are being recommended for development, and the interior where the driving range now sits. With regard to the outlying lots, they had proposed 112 lots originally, and they went door to door and spoke with everyone around all the affected and potentially affected areas. They also looked in detail at the design of the golf course and how it might be impacted by putting homes in. After much consideration and a lot of meetings, they decided that reducing the number of homes would not only reduce the impacts that there might have been for many of the exterior homes, it would also reduce those lots where it did not make sense from a golf course redesign to do. The project was therefore reduced down to the 95. The second area was the view impacts to the homes that are being proposed in the driving range area. He said their primary concern was that where they were putting houses, those views that remained afterwards of existing homes had golf course frontage view Tots similar to the rest of the golf course. He noted that there is also a 72-unit senior complex located to the east, and they tried the project to preserve the view corridors of those senior citizens with apartments in that complex. He stated there were two elements that could affect the view of an existing house — the location/distance and elevation of the proposed houses. They went to CVWD and worked diligently with them, and they were allowing an easement 31 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING MAY 13, 2004 on the golf course to take the sewer line out of the cul-de-sac and tie it into Tennessee. What they were going to have to do before was raise the elevation of the clubhouse group of homes so that it would drain back out to Tennessee. This easement with CVWD allowed them to drop the elevation three to four feet on average. He noted that there were two locations where there are view impacts, one off of New York and the other Utah Circle. They had taken existing photos at ground level of both Utah Circle and New York, and they had taken the newest elevation of the lots, the height of the buildings, and superimposed them to show what they will look like from their view corridor. The view from Utah Circle and the horizon are not affected. With regard to the New York homes, the horizon and their views would remain the same. In conclusion, Mr. Kosmont reviewed the neighborhood signage program. He said they felt it was important to improve the identification level of the community. He also reviewed the schedule for the way they would intend to move forward if Council were to approve the project at this meeting. If the zoning stays in place as open space, he said the valuation for their investors would change dramatically and they would not be able to acquire the course. He said they were ready to start working drawings as quickly as they can gain the entitlements. With Council concurrence, Mayor Spiegel adjourned the meeting for dinner at 6:00 p.m. He reconvened the meeting at 6:47 p.m. Following the dinner recess, Mayor Spiegel invited testimony in FAVOR of or in OPPOSITION to this project. The following individuals spoke in FAVOR: MR. DON STEFFENSEN, 43060 Tennessee Avenue MR. CHRIS HAMEETMAN, 77120 California Drive, Palm Desert, and 2029 Century Park East, Los Angeles, representing Villas on the Green apartment community on Califomia Drive. He read into the record their letter of support as follows: "This letter of support is submitted by the Villas on the Green apartments abutting the Palm Desert Country Club at 77120 California Avenue. As property owners, employers, and residents within the City of Palm Desert, we recognize that the revitalization of the Palm Desert Country Club is long overdue and a key factor in maintaining a superior quality of life and also maintaining high property values throughout our immediate community. The current proposed redevelopment plan includes the revitalization of presently neglected Palm Desert Country Club, reconfigures the golf course, and creates new residential homes around and in the Country Club. As with any adjacent property owner, we were initially concerned with the proposed development and had a number of meetings 32 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING MAY 13, 2004 with the developer and, in particular, Mr. Larry Kosmont. Mr. Kosmont and his team met with us at our offices, at the Villas apartment community, and also on the Country Club itself. We literally and figuratively walked through many of the issues, both that were presented to ourselves and presented to us through our residents. Mr. Kosmont and his team addressed each matter with understanding, respect, and a willingness to find acceptable and mutually beneficial solutions. Based upon our dealing with Mr. Kosmont and his team, we are confident that they will use every effort to mitigate the impact of the construction process on the surrounding community and will work hard to minimize any temporary annoyances that come hand in hand with revitalization and growth. Moreover, we are certain the revitalized Palm Desert Country Club clubhouse and golf course, once completed, will significantly enhance our residential quality of life. Once again, we offer our support for the proposed redevelopment and are excited and looking forward to the grand reopening of the Palm Desert Country Club in 2005." MR. GARY HOUTZ, 77-370 Minnesota Avenue, submitted letters of support to the City Clerk from people who were unable to attend this public hearing and spoke in favor of the project. MR. GEORGE BOAL, 76-739 Oklahoma, stated he represented the Board of Governors, and 8-person group that more or Tess oversees the problems between the members and the owners. MS. RUTH DeGEORGE, 76-797 California Drive, read a letter from the Palm Desert Country Club Women's Golf Association in support of this project (on file and of record in the City Clerk's Office). MR. CHARLES ASH, 77-130 New York Avenue, addressed comments by Mr. Williams below relative to the cost of the project and noted that the proposed cost as outlined by the developer was $5 million rather than $4 million. MS. CARMEN CARLO, 79-785 Camelback Drive, Bermuda Dunes, said she was the 2003-2004 past President of the Golfing Niners. MS. BARBARA POWERS, 76-918 Kentucky Avenue. MR. KEITH CAROSELLI, 76-896 New York Avenue, spoke as a member of the recently formed Palm Desert Country Club Social Committee whose function was to create special social and cultural events for both members of the Club and residents of Palm Desert Country Club community and surrounding areas. MS. PHYLLIS HARKINS, 77-298 Missouri Drive, President of the Palm Desert Country Club Association, 959 homes in the Palm Desert Country 33 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING MAY 13, 2004 Club area. She noted that the Board of Directors had approved the expenditure to send out a mail -in advisory ballot. The ballots were mailed to 959 homeowners, and they received 538 responses (56% return) back. The ballot was in two parts: 1) Asking whether they wanted the Association to take a public position on the project — results were 66% in favor, 20% opposed; 2) what position did the homeowners want the Association to take — 321 of the 538 responses were in favor or the project, with 154 opposed. At the Board of Directors regular meeting of March 8, 2004, based on the results of the advisory ballot, the nine Board members unanimously approved the Association taking a public position in favor of the development project. MS. BARB POWERS read the letter written by MAXINE LUCE, 44-300 San Pasqua!, Palm Desert, a former resident and now honorary member of Palm Desert Country Club, in favor of the project. MR. CHUCK POWERS, 76-918 Kentucky Avenue, spoke in favor of the project. He also read a letter of support from MARION & JOHN ROGERSON, 77-039 Utah Circle, noting that Mr. Rogerson was a noted architect and contractor who had served people on the California coast from Malibu to San Diego for years. He noted that Mr. and Mrs. Rogerson were in the audience but were physically handicapped and were not able to read the letter on their own. MS. CLAUDETTE WHISTON, 77-160 Indiana Avenue MS. LINDY JOHNSON, 77-150 Florida Avenue MR. DAN LANAGER, P.O. Box 991, Palm Desert MR. STEVE MOORHEAD, 43-905 Milan Court, La Quinta, and member of Palm Desert Country Club for the last five and a half years. MR. SCOTT JOHNSON, 77-150 Florida Avenue, resident and Director of Golf at Palm Desert Country Club. MR. FREDERIK LEEGER, 43-215 Texas Avenue, read a prepared statement in favor of the project. MR. JIM DIETERICH, 77-105 Michigan Drive. The following individuals spoke in OPPOSITION to the proposal because of the loss of views, increased traffic, safety, noise and pollution from trucks going back and forth, more children in already overcrowded schools, decreased property values, light pollution from the homes, etc.: 34 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING MAY 13, 2004 MS. CHRISTINA SAMSON, 43-400 Tennessee Avenue MS. EVELYN KANE, 43-380 Tennessee Avenue, read from the letter she had presented to the Planning Commission in March and also a letter to the Council dated May 12, 2004 (both on file and of record in the City Clerk's Office). Mayor Spiegel stated that he and Councilman Kelly had gone out and looked at the entire development and where the homes were going to go. One of the things they noticed was that the driving range was totally dry, and they asked staff to take care of that and to make sure it was watered. He asked whether that had been done, and she responded that it had not been watered for two years. MR. MAX WILLIAMS, 77-040 Utah Circle, stated he felt it would be impossible to complete this project based on the figures presented by the developer. The developer claimed it would cost $1.6 million to upgrade the water system. He said in his estimation, the cost would be over $1.4 million for the maintenance facility and moving the lake and the 13th green, and he wondered how the developer could refurbish all 27 holes for the remaining $1 million and buy new equipment. He asked how the developer could refurbish the existing clubhouse, and as of yesterday, the Planning Department had not even seen a detailed plan of the clubhouse area. He said the $1 maximum would not go far, as the front facade alone would cost at least $300,000 to complete. Then there is the addition to the dining room, the bar, remodeling of the kitchen facility, both bathrooms, the locker rooms, and the pro shop being turned into a cart barn. He said the numbers do not add up. The cart barn would need to be a minimum of 4,000 square feet, which is almost half the size of the current clubhouse, in order to house about 70 carts, each of which would occupy about 50 square feet. In order to get the carts inside, both bathrooms and locker rooms would need to be removed, and this made no sense. He asked if the real plan was to simply not do the clubhouse improvements at all and never build the last 11 homes where the current maintenance facility and cart barn are located or if it was to wait until after entitlements are given by the City and then announce that a new cart barn will be built between the 9th and 18th fairways or the 17th and 18th fairways. The way he read the Planning Department staff report, the developers could implement either of these scenarios and get away with it. He asked that the Council vote against this ill-conceived project. MS. LISATHEODORATUS, 77-040 Utah Circle, showed a photograph of the view from her back yard and a man holding an 18-foot high pole which would be the height of the houses. She said she had then taken one of the developer's own houses from the website and transposed it to the size of the 18-foot pole to show what the view would be from her back yard. Finally, she showed a panoramic picture of the area as it would look when the project 35 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING MAY 13, 2004 was done. She said her home was one of the most affected in the development area. At the present time, according to a real estate agent, her home was one of the most desirable in Palm Desert Country Club; if this project were to go through, her home would be one of the least desirable on the golf course because of the closeness of the new homes. She disagreed with the findings of the Planning Department that "the location and design of the proposed homes do not unreasonably detract from the overall value or enjoyment for surrounding property owners." She added that if this development is allowed to proceed, her home and her community would not be the open vista community that the Riverside Planning Commission wished to keep in perpetuity by means of Variance 409 and the accompanying declaration of restrictions which is a legal document that prohibits any home from being built on golf course lots in Palm Desert Country Club for any reason. She felt the change of zone from open space to residential should only be considered if there is a compelling need for the change, and she felt this had not been shown in any of the documentation. She expressed concern that at the March 16, 2004, Planning Commission, the developers were able to have Condition #17 removed as a requirement, a mechanism to dedicate to open space purposes the remaining golf course area for a minimum of 30 years, and she felt this was the only thing that would stop further development in the future. She said this condition must be reinstated if any portion of this project is allowed to proceed. She asked that the Council reject this proposal for a plan that will be fair to all and preserve the open space, trees, and open vista community. MR. JEROME PINEAU, President of the Palm Desert Country Club Preservation Society, 77-510 California Drive, said he would like to address the question of the validity and enforceability of the CC&R's protecting tracts 2137 and 2283 of the Palm Desert Country Club. He said a lawsuit had been filed earlier today in California Superior Court against the developers and against the current owner in order to stop this project because it infringed on the legal rights of the homeowners as defined by those CC&R's. He reviewed the process this project and the committees it had gone through before getting to this point before the Council and his two letters to the Council dated May 12, 2004 (on file and of record in the City Clerk's Office). He asked that the Council vote against this project, ask that any such project at least be required to distribute the burden equally among all members of the community. He also asked for reason and logic and that other solutions be explored. MS. HOLLY ESCOBEDO, 76-983 New York Avenue, said when she purchased her home, the escrow agent advised that there would never be anything built that would change her view. MR. JAMES EVANS, 76-827 Oklahoma Avenue. 36 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING MAY 13, 2004 MS. LOLA GREEN, 42-025 Tennessee Avenue, cited a recent appellate court decision of 2004, Ocean View Estates Homeowners Association v. Montecito Water District, which specifically talked about the public view shed and how very detailed you have to get with your presentations to the public if you are going to affect the public view shed. She felt this had not been done in this case, and the majority of the residents and non-residents of Palm Desert did not understand what will be taken away from them in this community. MS. SUZANNE TRACY, 77-020 Utah Circle, said if this project is approved, she felt the 65 homes planned for the driving range should be evenly divided throughout Palm Desert Country Club in order to be fair to all the homeowners. This would allow the developers to build the number of homes they say are needed in order to renovate the golf course, the golfers will have a renovated course, and homeowners will have their views. She noted that Kirsten Anders and Oody Rays (sp?) were unable to attend, but both were opposed to this project. MR. JOHN GREY, 76-963 New York Avenue. MS. SHERRIE BROOKS, 76-975 New York Avenue. MS. THERESA PAWLEY, 77-670 California Drive, spoke on her own behalf as well as on behalf of the Petersons who reside at 77-680 California Drive who were not able to attend this meeting. She said their two homes received the dubious distinction of being the most impacted by the maintenance facility and its proposed access. She reviewed points raised in her letter dated May 11, 2004 (on file and of record in the City Clerk's Office). She noted that one thing Mr. Peterson had mentioned to her that morning was that an eight -foot sound wall at his property line as well as the maintenance facility and the access and all it entails was completely unacceptable to him. She asked Council not to rush through this project and that additional time was needed to resolve residents' deepening concerns. She added that they needed the developer's promises in writing and conditions attached for unresolved issues. MR. JACK BECKER, 77-620 California Drive, stated that with regard to the open space on the fairway of the 13'h and 14'h, he had talked to the proponents, and they told him that would never change and that was not on their agenda. He asked that this be entered into the minutes to tell him that this is not on the agenda and will not be changed. Mayor Spiegel invited additional testimony from the developer. MR. KOSMONT stated they had given this project a lot of thought and had made the commitment to improve the golf course at a level of $5 million in 37 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING MAY 13, 2004 the development agreement. He said they had absolutely no reason and no desire to have Mr. Cho in this deal; they had an agreement with him to buy the course that has him out 100%. They felt it was to everyone's benefit to have it that way. He said they would like to purchase the course before it dissipates. With regard to view sheds, he said they were taking five percent of the built environment, they were adding five percent, 95 homes out of 1,880. They were taking less than 10% of the land to preserve that open space in the highest quality possible as a golf course. He noted that the deed restriction was purely a private deed restriction that affects some parcels and was not a CC&R covenant. The language was very specific and stated the restricted lots shall be used solely for the purpose of maintaining the golf course and such improvements recently related thereto. They felt the redevelopment of the driving range and the development of homes was actually exactly what that restriction was about, and it was meant only to expand and enhance and reinvigorate the golf course, which was exactly what the covenant was meant to protect. He said this was not an easy project. They had to first acquire a golf course that is decrepit. They have to then prepare lots and build homes. They had to mitigate as many of the conditions as they possibly can. They have a development agreement that causes them to make these improvements in stages and bond at over 100%, over a dollar for dollar, for those improvements they are going to do. He said this was a private investment or private redevelopment project. They were not asking for money, they were simply asking for the ability to work through a development agreement to restore a community, the centerpiece of a community, and provide some housing. With regard to the maintenance facility, he said it was award winning at this point. You cannot see it from any location, as it is fully landscaped from view. This is a golf course, and it needs a maintenance yard. If the homeowners association wanted to help get a slightly different location, the developer would continue work to that effort. Mayor Spiegel declared the public hearing closed and recessed the meeting at 9:05 p.m. He reconvened the meeting at 9:08 p.m. Councilman Kelly stated that everyone would agree the golf course needed to be upgraded. He did not agree with those who were pushing for a Council decision tonight because he did not feel things were set up in such a way to guarantee that the golf course is always going to be kept up and we're not back here 20 years from now with a similar situation. He felt there needed to be time to figure out a better way to do this so the golf course is protected without impacting people who purchased homes with views. He said he had paid a lot of extra money to have his view on a golf course, and he would be devastated if somebody was going to build a home in back of him where that golf course is. Aside from that, he felt there were a lot of problems with the development itself, mainly the maintenance yard which did not go through the Planning Department. In past projects, when there is disagreement 38 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING MAY 13, 2004 between the developer and residents about the level of homes or buildings and the impact on views, poles are put up so the Council can look and see exactly what the view impact is going to be. He felt Condition #17 regarding the open space needed to be added back in to the conditions of approval. With regard to the project budget, he did not feel $5 million was enough to do a new maintenance facility, new clubhouse and cart barn, and redo the golf course. He felt more work needed to be done and a better way needed to be figured out so that the golf course can be fixed without depriving people of the investments they have in their homes. Mayor Pro Tem Crites agreed with Councilman Kelly and stated that in the last ten years, the Palm Desert Country Club area had seen dramatic improvements in terms of the kinds of homes that have been built, the upgrading of existing homes, and the general improvement of the area. He agreed the golf course and associated facilities needed fixing, but it was obvious it was not going to be done under the current owner. The proposed project was a great deal for most of the PDCC residents, with no assessments to pay for fixing the golf course and nothing happening to their views, open space, or anything else, with the exception of one or two little groups. He noted the developer had taken care of a lot of obvious objections from people scattered throughout the country club, and a third or more of the proposed lots no longer exist. People were unhappy, and they were not going to be in favor of this development until those lots disappeared. That left the burden of impact not on 80% of the people but on a very small number of people. He said he believed the Council needed to do everything it can to make sure that as the benefit falls, so does the burden, and that the burden is not disproportionately given to only 10 or 20 people while a vast majority end up with a good deal. The Council's challenge was to make the improvement possible to allow the developer to proceed while minimizing the impacts that occur to those people. There are pictures from the developer who shows the houses looking as though they are off in the distance and barely a foot high. Then there are photographs from neighbors who have the homes looking as though they are about an arm's length away and 15 stories high. He said while he did not know which view was correct, if either, he would not vote to approve something when two different sets of people have perceptions that are that far apart. He wanted to stand out there with some story poles to see the number of houses, how far they are, how tall they are, etc. Another issue was the number of houses necessary to make this project fly. He agreed with Councilman Kelly that Condition #17 needed to be added back in. With regard to the maintenance facility, the fact that it was a mess was not a matter of where it is, it was a matter of how it is taken care of. He had not heard any discussion as far as why it needed to be in one location versus another. With regard to golf course landscaping, he was convinced that a lot of money would be saved just by installation of a 21st century irrigation system. He agreed that safeguards and financial guarantees needed to be in place to ensure that whoever is on the Council ten years 39 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING MAY 13, 2004 from now does not have to go through this again. He wanted to make sure there were enough guarantees of ongoing operational funding. Councilmember Benson said she felt if Palm Desert Country Club had been brought into the City when it first incorporated in 1973, perhaps we would not be in this situation. She agreed it was an eyesore right now, although the homes are improving, there are a lot of new ones, and there are a lot that have been upgraded. But there are also a lot that still should be torn down. With regard to this project, she felt it was a great project and believed the developer had the money to do it and do it well, but she would like to see some of the concerns mentioned by her colleagues resolved. She agreed that Condition #17 needed to be included. Mayor Spiegel said he agreed with a lot of what had been said, including the fact that the figures do not add up. He said he could not see this being done for $5 million for the golf course, maintenance yard, clubhouse, parking facilities, etc., and he would like to see a breakdown of those figures. He said the Council does not review major projects like this unless all aspects are approved by at least a 3-2 vote of the Planning Commission. The maintenance facility was thrown in at the last minute, and the Planning Commission had not had a chance to look at it. He said he would like Planning Commission input on that maintenance facility before he votes on the project. Comments were made relative to what was approved by the County of Riverside back in 1961 when Palm Desert Country Club was built, but he felt a lot of things approved back then are no longer that way, including residential housing on Fred Waring Drive. Fred Waring now has office professional on one side of the street and open space on the other, and he felt it was one of the more attractive streets in the Coachella Valley. He noted he would like to look again at the developers' time line on the golf course and the clubhouse, which he felt should be accomplished before all the houses are sold so that the developer does not have the opportunity to say he does not have the money to finish the clubhouse and decides to simply walk away. Councilman Kelly moved to continue this matter to the meeting of June 10, 2004, during which time the Planning Commission is asked to comment on the proposed maintenance yard and for the developer and/or staff to provide further information on matters, including a breakdown of the funding needed to accomplish the project (home sales, exact figures for each component of the project [golf course renovation, irrigation system, club house renovation, cart barn]), time lines for each component of the project, floor plan for the club house renovation, consideration of reinstating Condition No. 17 for guaranteed open space, and placement of story poles to get a perspective of the impact on views to be experienced by residents. Motion was seconded by Spiegel and carried by a 4-0 vote, with Councilman Ferguson ABSENT. 40 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING MAY 13, 2004 With Council concurrence, Mayor Spiegel recessed the meeting at 9:30 p.m. to allow members of the audience to exit the Council Chamber. He reconvened the meeting at 9:38 p.m. D. CONSIDERATION OF 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). Mayor Pro Tem Crites stated that he would not be participating in the discussion and action on this item as his home is in the affected area. Mr. Drell reviewed the staff report, noting that this item was on the Agenda at the request of Councilman Ferguson. However, because Councilman Ferguson was absent from the meeting, he suggested that the matter be continued. Councilman Kelly moved to continue this public hearing to the meeting of June 10, 2004. Motion was seconded by Benson and carried by a 3-0 vote, with Mayor Pro Tem Crites and Councilman Ferguson ABSENT. E. REQUEST FOR APPROVAL OF ADDENDUM #2 TO THE WONDER PALMS MASTER PLAN TO EXPAND PERMITTED USES IN PLANNING AREA 1 TO INCLUDE PLANNED INDUSTRIAL USES, A MASTER PLAN FOR PLANNING AREA 1, A TENTATIVE PARCEL MAP FOR A 21.86-ACRE COMMERCIAUOFFICE/INDUSTRIAL PROJECT, A PRECISE PLAN FOR FIVE (5) TWO-STORY BUILDINGS TOTALING 166,000 SQUARE FEET ON 10.59 ACRES OF THE SITE, AND A HEIGHT EXCEPTION FOR MECHANICAL EQUIPMENT SCREENING PURPOSES — THE SITE MASTER PLAN INCLUDES 236,450 SQUARE FEET OF COMMERCIAL/OFFICE/INDUSTRIAL, 14,750 SQUARE FEET OF RESTAURANTS (INCLUDING TWO DRIVE-THRUS), AND A THREE-STORY HOTEL WITH UP TO 104 ROOMS — PROJECT HAS BEEN PREVIOUSLY ADDRESSED FOR PURPOSES OF CEQA, AND IS GENERALLY LOCATED AT THE NORTHEAST CORNER OF COOK STREET AND GERALD FORD DRIVE (APNs 653-410-023 through -025, and 653-690-015 through -019) Case Nos. DA 97-2 Addendum #2, TPM 31563, and PP 04-05 (Holt Architects, Applicant). Mr. Drell reviewed the staff report and offered to answer any questions, noting that all of the aspects of the master plan will have to be brought to Council as part of the precise plan process. He said the project met all the requirements of the existing development agreement and the applicable zoning standards. The developer was asking for one exception for height. Because the project is below an overpass, vehicles going over the overpass 41 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING MAY 13, 2004 can look down on the mechanical equipment. The applicant had designed a metal screening roof structure to screen not only the mechanical equipment from both the horizontal view and also from above. He added that the roof structures also add to the architectural interest of the buildings. Staff felt this was an appropriate project for that location, and the architecture was quite interesting. He noted that it would also clean up the master plan which was made obsolete by the expiration of the former planned ice rink. Mayor Pro Tem Crites stated that a couple of the pads were listed as potential drive-thru locations. He asked whether the Council would be locked in to these exact boundaries which may or may not provide flexibility in locating these future drive-thrus. Mr. Drell responded that he did not think this was the case; however, the Council could expressly amend the language of the addendum to allow for modification of the boundaries of each of the development areas in order to provide flexibility. Mayor Spiegel declared the public hearing open and invited testimony from the developer. MR. TIM HOLT, Holt Architects, 41-555 Cook Street, Suite 1-100, Palm Desert, reviewed the details of the project. He said one of the unique aspects of this site was the elevated bridge that comes over the top of the railroad right of way. The buildings in the project would be two -level buildings. The normal parapet height would be typically about 28 feet above the building pad elevation, but due to the fact that the bridge height is about 32 to 35 feet above that same relative elevation, it gives the perspective of looking down on the buildings. He said they had tried to keep a very clean roof perspective in profile such that the mechanical equipment is not visible. Five different buildings would range in square footage from about 28,000 to 39,000 square feet each, comprising the 166,000 square feet in five buildings. They would be positioned around a central area which would create the potential for a high-level and significant business environment in the area across from the college campus. He offered to answer any questions. Upon question byCouncilmemberBenson, he said the project would be built in phases, with buildings 3 and 4 planned first, followed by buildings 2 and 5. Building #1 would probably be the last to be built. Mayor Spiegel invited testimony in FAVOR of or in OPPOSITION to this project. Mr. Ortega noted that a representative of Cal State was present earlier in the meeting, and he just wanted to make sure, as the property owner on the other side, that they would not be looking at the backs of buildings. 42 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING MAY 13, 2004 Mr. Drell responded that there will be entrances from both sides, and the buildings will have all the same architectural treatments around all four sides. With no further testimony offered, Mayor Spiegel declared the public hearing closed. Councilmember Benson stated she was not happy with the three-story hotel and did not think it was necessary to be that tall when two-story would be enough. Councilman Kelly moved to waive further reading and: 1) Pass Ordinance No. 1069 to second reading, relating to DA 97-2 Addendum #2, with the addition of language to Addendum #2 that will allow for modification of the boundaries of each of the development areas in order to provide flexibility for locating the future drive-thrus; 2) adopt Resolution No. 04-44, approving TPM 31563 and PP 04-05, subject to conditions. Motion was seconded by Crites and carried by a 4-0 vote, with Councilman Ferguson ABSENT. XVIII. REPORTS AND REMARKS A. CITY MANAGER 1. Request for Scheduling Study Session for Further Discussion of the FY 2004/05 Budget and Projects. Mr. Ortega noted a Study Session had previously been held regarding the 2004/05 Budget and Projects. The only thing that still needed to be brought to Council were a couple of new positions and some reclassifications. He asked whether Council wished to have another Study Session to discuss these items. With City Council concurrence, staff was directed to work with City Council's Secretary to find a mutually convenient date/time for conducting a Study Session on Budget special requests and personnel matters early to mid -June. B. CITY ATTORNEY None C. CITY CLERK None 43 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING MAY 13, 2004 D. MAYOR AND MEMBERS OF THE CITY COUNCIL o City Council Requests for Action: 1. Request for Approval of Expenditure to Friends of the Desert Mountains (Mayor Pro Tem Buford Crites/Councilmember Jean Benson). Mayor Pro Tem Crites stated that at the recent Friends of the Desert Mountains benefit golf tournament and auction, he had the opportunity to purchase a framed photo collage of Bob Hope that could be displayed where appropriate at the Desert Willow Clubhouse. The cost was $500.00, and he requested reimbursement. Mayor Pro Tem Crites moved to, by Minute Motion, approve the expenditure in the amount of $500.00. Motion was seconded by Benson and carried by a 4-0 vote, with Councilman Ferguson ABSENT. o City Council Committee Reports: 1. Parks & Recreation Commission — Mayor Spiegel reported that the Parks & Rec Commission had authorized staff to get bids for a misting system on the Pavilion adjacent to the Amphitheater. If it was a small enough expenditure, the City Manager could approve it; if larger, it would be brought to the City Council. He said if found to be successful, then other Park facilities would be considered, like the Tot Lot. The system would also help with control of flies in the Pavilion. o City Council Comments: 1. City Council Liaison Reports. See above. 2. United Way Dinner — Councilmember Benson said she attended the United Way final recognition, noting she was the only Coachella Valley Councilperson in attendance. She reported they'd exceeded their goal, and the City of Palm Desert and its campaign chair, Steve Aryan, were recognized for outstanding efforts. 44 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING MAY 13, 2004 3. Livable Communities — Councilmember Benson reported she attended the subject conference at the Annenberg Center yesterday. She said it was very informative, providing excellent resource information about designing healthful communities with amenities like walking paths and facilities for promoting good health for residents. The presenter noted that of the things that can be done for a community, a golf course would be utilized by 1% of the residents; 7% would take advantage of a swimming pool; but 50% of residents would use a hiking trail. She brought information back and provided it to Mr. Drell to be considered for future projects. 4. Coachella Valley Red Imported Fire Ant Funding Program — Mayor Pro Tem Crites said he would be Chairing the subject program next Monday. He noted that the City should be giving the matter budget consideration, as he felt CVAG would be soon looking for a way to fund a Valley -wide program. 5. Purchase of Joshua Hills Property — Mayor Pro Tem Crites reported that after a considerable amount of work by a considerable amount of people, today the Wildlife Conservation Board voted unanimously to put $5.5 million into purchase of the Joshua Hills property for conservation and open space on the other side of the Valley. He said it was, by far, the largest State appropriation on their agenda today. He thanked his colleagues for their support of the nearly 9,000-acre acquisition, the largest single conservation acquisition that will ever occur in the Coachella Valley. 6. SunLine — Councilman Kelly noted that SunLine received favorable press coverage on Wednesday this week. 7. Desert Sands Unified School District Annual Awards Program — Mayor Spiegel said he attended the Awards Program, where Palm Desert was the only City within the District to receive an award — one for "Exemplary Support to the Palm Desert Middle School Students and Parents for the After School Program." 45 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING MAY 13, 2004 XIX. ADJOURNMENT Mayor Pro Tem Crites moved to adjourn the meeting at 11:39 p.m. Motion was seconded by Kelly and carried by a 4-0 vote, with Councilman Ferguson ABSENT. ATTEST: RACHELLE D. KLASSEN, CITY CLERK CITY OF PALM DESERT, CALIFORNIA ROBERT A. SPIEGEL, MAYOR 46