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HomeMy WebLinkAboutPRELIM - CC - 03/09/06PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING THURSDAY, MARCH 9, 2006 CIVIC CENTER COUNCIL CHAMBER I. CALL TO ORDER - 3:00 P.M. Mayor Ferguson convened the meeting at 3:00 p.m. II. ROLL CALL Present: Councilmember Jean M. Benson Councilman Buford A. Crites Mayor Pro Tem Richard S. Kelly Councilman Robert A. Spiegel Mayor Jim Ferguson 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 Stephen Y. Aryan, Assistant to the City Manager Rachelle D. Klassen, City Clerk Amir Hamidzadeh, Director of Building & Safety Phil Drell, Director of Community Development Paul S. Gibson, Director of Finance/City Treasurer Doug Van Gelder, Director of Information Systems Mark D. Greenwood, Director of Public Works David Yrigoyen, Director of Redevelopment & Housing Steve Thetford, Asst. Chief, Palm Desert Police/Riverside Co. Sheriff's Dept. Grace L. Mendoza, Deputy City Clerk Upon a motion by Crites, second by Spiegel, and 5-0 vote of the City Council, Mayor Ferguson adjourned the meeting to Closed Session at 3:01 p.m. He reconvened the meeting at 4:01 p.m. III. ADJOURN TO CLOSED SESSION Request for Closed Session: Conference with Legal Counsel regarding significant exposure to litigation pursuant to Government Code Section 54956.9(b): Number of potential cases: 2 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING MARCH 9, 2006 IV. RECONVENE REGULAR MEETING - 4:00 P.M. A. REPORT ON ACTION FROM CLOSED SESSION. None V. AWARDS, PRESENTATIONS, AND APPOINTMENTS None VI. CONSENT CALENDAR A. MINUTES of the Regular City Council Meeting of February 23, 2006. Rec: Approve as presented. Continued to the meeting of March 23, 2006. B. CLAIMS AND DEMANDS AGAINST THE CITY TREASURY - Warrant Nos. 172, 173, 176, 177, and 180. Rec: Approve as presented. C. APPLICATION FOR ALCOHOLIC BEVERAGE LICENSE by Sukhdarshan Paul Gogna and Gurpreet Singh Thandi for Monsoon Cuisine of India, 73-675 Highway 111, Palm Desert. Rec: Receive and file. D. APPLICATION FOR ALCOHOLIC BEVERAGE LICENSE by Bristol Farms Store #2319, 73-101 Country Club Drive, Palm Desert. Rec: Receive and file. E. APPLICATION FOR ALCOHOLIC BEVERAGE LICENSE by Shanren Chen, Yu Qin Chen, and Huiying Qiu for King Wok Chinese Restaurant, 42-305 Washington Street, #D, Palm Desert. Rec: Receive and file. F. APPLICATION FOR ALCOHOLIC BEVERAGE LICENSE by Shadow Mountain Resort & Club, 45-750 San Luis Rey, Palm Desert. Rec: Receive and file. 2 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING MARCH 9, 2006 G. APPLICATION FOR ALCOHOLIC BEVERAGE LICENSE by De La Rosa Torres Ariel Alejandro for Serenata Mexican Bar & Grill, 73-325 Highway 111, Palm Desert. Rec: Receive and file. H. CITY COMMITTEE AND COMMISSION MEETING MINUTES. 1. Historic Preservation Committee Meeting of January 30, 2006. 2. Library Promotion Committee Meetings of September 21, and November 16, 2005. 3. Sister Cities Committee Meeting of January 19, 2006. Rec: Receive and file. I. 2005 ANNUAL Public Safety Commission Report. Rec: Receive and file. J. REQUEST FOR ACCEPTANCE OF WORK for Contract No. C24520 — Sidewalk Improvements on Rutledge Way (Project No. 697-A-05) (Westcon Construction, Inc., Palm Desert, 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. K. REQUEST FOR APPROVAL of the 2006 "Summer of Fun" Movie Series. Rec: By Minute Motion, approve a purchase order in the amount of $11,406 with Live Oak Multimedia, Indio, California, for movies, professional staff, and audio/visual equipment for the 2006 "Summer of Fun" movies — funds have been budgeted in Account No. 110-4416-414-3061 for this purpose. L. REQUEST FOR RATIFICATION of Out -of -State Travel Expenditures for Meetings with Various Government Officials in Washington, D.C., February 7-11, 2006. Rec: By Minute Motion, ratify the subject travel expenditures by Councilman Buford A. Crites to lobby for funds for BLM and U.S. Forest Service Property. Mrs. Klassen asked that Item A, Minutes of the February 23, 2006, City Council Meeting be continued to the next meeting. 3 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING MARCH 9, 2006 Upon a motion by Spiegel, second by Kelly, and 5-0 vote of the City Council, the Consent Calendar was approved as presented, with continuance of Item A to the meeting of March 23, 2006. VII. CONSENT ITEMS HELD OVER None VIII. RESOLUTIONS A. RESOLUTION NO. 06-32 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, ESTABLISHING A PETTY CASH FUND UNDER THE SUPERVISION AND CONTROL OF THE CORPORATION YARD MAINTENANCE SERVICES MANAGER. Mayor Pro Tem Kelly moved to waive further reading and adopt Resolution No. 06-32. Motion was seconded by Benson and carried by 5-0 vote. B. RESOLUTION NO. 06-33 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, ACTING FOR ITSELF AND AS THE LEGISLATIVE BODY OF CITY OF PALM DESERT COMMUNITY FACILITIES DISTRICT NO. 2005-1 (UNIVERSITY PARK) TO AUTHORIZE THE ISSUANCE OF ITS SPECIAL TAX BONDS, SERIES 2006A, IN A PRINCIPAL AMOUNT NOT TO EXCEED FIFTY MILLION DOLLARS ($50,000,000) AND APPROVING CERTAIN DOCUMENTS AND TAKING CERTAIN OTHER ACTIONS IN CONNECTION THEREWITH. Mr. Yrigoyen said at this time, staff asked for a continuance of this matter to the next meeting. Councilman Spiegel moved to continue consideration of Resolution No. 06-33 to the meeting of March 23, 2006. Motion was seconded by Kelly and carried by 5-0 vote. NOTE: THE FOLLOWING ITEM WAS LISTED ON AN AGENDA ADDENDUM POSTED AT LEAST 72 HOURS PRIOR TO THE MEETING. C. RESOLUTION NO. 06-36 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, AUTHORIZING APPLICATION FOR WORKFORCE HOUSING REWARD GRANT. Mr. Ortega commented that because of the City's previous success in approving affordable housing projects, it now qualifies for certain related rewards. Councilman Spiegel moved to waive further reading and adopt Resolution No. 06-36. Motion was seconded by Kelly and carried by a vote of 5-0. 4 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING MARCH 9, 2006 IX. ORDINANCES For Introduction: None For Adoption: A. ORDINANCE NO. 1110 - AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, AMENDING ORDINANCE NO. 107, THE PALM DESERT ZONING MAP, BY CHANGING THE ZONE FROM S.I. (SERVICE INDUSTRIAL) TO PR-13 (PLANNED RESIDENTIAL, 13 UNITS PER ACRE) FOR A 20-ACRE SITE AT THE NORTHEAST CORNER OF 35TH AVENUE AND GATEWAY DRIVE (73-600 35TH AVENUE) Case No. C/Z 05-03 (Summit Properties, Applicant). Mayor Pro Tem Kelly moved to waive further reading and adopt Ordinance No. 1110. Motion was seconded by Spiegel and carried by 5-0 vote. X. NEW BUSINESS A. REQUEST FOR ADOPTION OF RESOLUTIONS APPROVING PAYMENT BY THE REDEVELOPMENT AGENCY FOR ALL OR A PART OF THE COST OF THE INSTALLATION AND CONSTRUCTION OF FREEDOM PARK (JOINT CONSIDERATION WITH THE PALM DESERT REDEVELOPMENT AGENCY). Mr. Yrigoyen stated that the resolutions provided ability to fund the next item on the Redevelopment Agency Agenda, construction of Freedom Park with Project Area No. 2 funds, and made a finding of benefit to that Project Area. Member/Councilman Spiegel moved to waive further reading and adopt:1) Redevelopment Agency Resolution No. 518, approving payment by the Agency for all or a part of the cost of the installation and construction of Freedom Park; 2) City Council Resolution No. 06-29, approving payment by the Palm Desert Redevelopment Agency for all or a part of the cost of the installation and construction of Freedom Park. Motion was seconded by Kelly and carried by 5-0 vote. 5 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING MARCH 9, 2006 B. CITY COUNCIL REVIEW OF AN ARCHITECTURAL REVIEW COMMISSION DECISION, DENYING A REQUEST FOR APPROVAL OF 14- FOOT HIGH SOUND BARRIER WALL SYSTEM (GLASS BLOCK TYPE) AT THE SOUTHWEST CORNER OF HIGHWAY 111 AND PAINTER'S PATH (72-191 HIGHWAY 111) Case No. MISC. 06-04 (South Beach Restaurant & Nightclub, Applicant). Planning Manager Steve Smith stated that the subject case was considered by the Architectural Review Commission (ARC); subsequently, two City Councilmembers requested it be reviewed. He said ARC's perspective was that a 14-foot high glass wall wasn't the first thing that should be seen by anyone entering the City and denied the request as being inappropriate, suggesting instead that an acoustical engineer be retained to develop a sound mitigation plan for this business. Responding to question, Mayor Pro Tem Kelly his reason for calling the case up was because while he agreed that it wouldn't look good, the noise problem remained. Therefore, he felt denying the wall may send a message that the City believes the problem is solved, and he wanted to leave this option open as a potential solution while the City continued to study how that might be accomplished. Additionally, he said the City is still trying to develop a specific zone for nightclubs that it doesn't have currently. In answer to Councilman Spiegel, Mr. Smith said when ARC considered the matter, they asked the Applicant if the proposed wall would solve the problem, and the Commission did not receive an affirmative response that an acoustical engineer had recommended it. Although, ARC didn't think the wall measured up aesthetically either. Mayor Pro Tem Kelly reiterated his concern that all options be left open while the issue is further studied, in case the subject wall may offer one. Upon further inquiry by Councilman Spiegel about the status of staff's progress on the issue, Senior Management Analyst Martin Alvarez responded that staff had been working on the South Beach issue for some time. He said staff met with South Beach representatives in late January to address the noise issue, and they said they would look into and try to come up with some solutions —the subject proposal was one of them. Unfortunately, there was no guarantee that it would solve the problem. During the same meeting, South Beach indicated they would be willing to shut down their patio after 10:00 p.m. to alleviate some of the noise leaving the club. However, after ARC denied the wall, that agreement was no longer honored; they were back in operation on the patio and the noise was up. He said staff was now looking at some other alternatives with the City Attorney. 6 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING MARCH 9, 2006 Councilman Crites observed that there were letters on file from several residents who still believe the problem was enormous. On the other hand, he'd talked to a couple of residents who don't think there is any problem at all. He asked if there were studies showing that the current conditions were in violation of City Code. Mr. Alvarez said Code Compliance staff and the independent sound consultant had been there on several occasions. Based on the current ordinance, 55 decibels after 10:00 p.m., the establishment was in compliance with that threshold a majority of the time. He added that there were intermittent fluctuations above; however, the level was below that maximum most of the time. Although, he noted that after 10:00 p.m., it was still considered an issue from several residents in the area. Councilman Spiegel commented that the City had spent a lot of money on this matter so far —a sound expert came in, there was a bass analysis, supposedly South Beach did something to alleviate the bass noise that was the most serious —but he wondered if anything had been accomplished. Mr. Alvarez answered that there was temporarily while they turned down the music; but now it was back up. In further response, he said staff was working with the City Attorney to look into other ways to respond. Mayor Ferguson expressed his frustration over the six months' time that's been spent over something that could be resolved by turning down the volume. Further, he doubted the Applicant wanted to build a 14-foot wall, perhaps suggesting it merely to illustrate the absurdity of the whole proceeding. He agreed with his colleagues that the matter was as simple as turning down the music; and if that didn't happen, the City Council would consider Conditional Use Permit revocation. Mayor Pro Tem Kelly pointed out that ARC had done its job; it was not their responsibility to solve the noise problem, and he had no issue with that. He asked about the status of the new zoning regulation. Upon inquiry, Lt. Thetford answered that the Police Department was getting a few calls. He concurred with Mr. Alvarez's comments that the issue had subsided for a time, but then it started back up again, as did the related calls for service on a regular basis. He said the calls happened all through the day and night after there were a couple of daytime events on weekends, but primarily the issue was during late evening. Mayor Ferguson responded that it showed the owner knew how to comply when he wanted to and how to flaunt the City's ordinance when he wanted to disregard it. 7 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING MARCH 9, 2006 Mr. Drell commented that changing the City's zoning would not eliminate the complaints. He said the ordinance could be changed in any manner the City wanted; however, if the characteristic of the noise wasn't changed, there would still be complaints. He said what staff was hearing from South Beach was that they were very close to compliance with the current ordinance; they were also in a zone specifically designated for entertainment, hotels and restaurants, and nightclubs. He clarified that the issue arose with how much noise would be tolerated, which results from how many resident complaints would be tolerated. Mayor Pro Tem Kelly disagreed, believing that there could be rules that would ease the situation, but realizing that they wouldn't solve everything. He likened the soundproofing between theater walls, urging staff to include a requirement in the zone change to include soundproofing buildings where nightclubs were to be located. Mr. Drell went on to say that the Applicant needed to comply with the City's ordinance, and they needed to be advised that there were various technical means to be utilized, one of which was the subject wall. He added that South Beach has a particular problem in that the whole front of the building consisted of glass French doors that open into the direction of the noise complaints. He suggested that it may be possible to cover all the windows with an acoustical barrier, further explaining that the City's noise ordinance created a threshold of the acceptable level; it was up to the property owner to use all the various means to achieve it. He said a new ordinance wasn't necessary, the City needed to enforce the existing one. In response to question, he said the 14-foot glass block wall was the property owner's first attempt at achieving compliance, as he did not want to cover all the French doors and windows that provide access to the patio with acoustical foam. The owner still wanted to use the patio, similar to what all restaurants used for the comfort of their smoking patrons, in addition to some entertainment activity that South Beach was providing there. The Applicant proposed an acoustical Building Code fix, resulting in the subject review; ARC didn't like that fix aesthetically. Mayor Pro Tem Kelly remarked that he and Councilman Spiegel had spent a lot of time listening to and working with the neighbors who were impacted, and that may have resulted in their having a different perspective on the matter than the rest of the City Council. However, in his experience, people wouldn't complain about something if it wasn't a problem for them. Councilman Spiegel suggested continuing the matter to the next City Council Meeting so that staff could propose a solution to the problem. 8 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING MARCH 9, 2006 Mr. Erwin advised that he wanted to discuss that matter with the City Council in Closed Session, possibly at the end of the current meeting by adding it to the agenda. MS. DONNA LEMEROND, resident of Rancho Mirage, CA, agreed with Mayor Pro Tem Kelly's comments about having better things to do than trying to get this problem solved at the City. However, she said it was not solved, even though for several weeks, South Beach turned their volume down, and residents were able to get some sleep. But for the last three weeks, the sound level was back to what it was last fall with pounding bass. She noted that they now have a live band there on Sundays, which meant they heard the loud music between 3:00 p.m. and 7:00 p.m., in their house with the windows closed, especially the loud, pounding bass levels. She said at that time, her neighbors on Rancho Road could also hear the pounding bass, with the last week being unprecedented for sound level. Additionally, she said when South Beach left their doors open, there wasn't much they could do to solve the problem with a wall; it would go right over. She noted that when the sound meter readings were taken, it was with all of South Beach's doors and windows closed, which established a meter reading level that couldn't be perceived in her neighborhood. However, they were not adhering to that level, and the levels do not apply with the doors open; the music travels —especially bass -driven —further, as she understood the frequency levels were quite long. While she was not the only affected resident, most people could not come to the meeting during the day; her residence was the closest, resulting in her hearing it more than anyone else. She pointed out that it had now been five and a half months, and she hoped that something could be done; if the volume was turned down and the doors and windows were kept closed, they would probably not hear the sound. She said it was South Beach's conscious decision to leave the doors and windows open, in addition to turning up the volume, which they were aware the neighbors could hear. She further felt it was the owner's responsibility to have opened their business with amplified music in an appropriate building; she didn't feel it was the City's job to solve the problem, it was South Beach's responsibility. She was disappointed that they didn't propose something more likely to work than the block wall, as she'd heard South Beach had a sound expert come out and make some suggestions, like electronic barriers. She appreciated the City Council's time and effort in this regard and continued to hope for a successful resolution. Mayor Ferguson said that whatever the City decided to do, he wanted to see the appropriate staff person go to South Beach and meet with them yet this afternoon to strongly suggest that they comply with the City's regulations for the next two weeks, if the matter was continued. Further, if the City Council decided to go into Closed Session today, he suspected it would be for the purpose of initiating litigation, and staff could also convey that message. 9 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING MARCH 9, 2006 Councilmember Benson moved to add the following Closed Session consideration to the agenda. Motion was seconded by Spiegel and carried by 5-0 vote. Conference with Legal Counsel regarding significant potential to initiate litigation pursuant to Government Code Section 54956.9(c): Number of potential cases: 1 Mayor Pro Tem Kelly moved to continue the City Council Review of Case No. MISC 06-04 to the meeting of March 23, 2006. Motion was seconded by Crites. Councilman Crites observed that the subject application was for an industrial - looking glass block wall, and he wondered if any consideration was given to involving the Art In Public Places Program for a possible entrance treatment. Mr. Alvarez said it hadn't been considered yet, but staff could do so. Mayor Ferguson called for the vote, and the motion carried 5-0. Councilmembers reiterated their appreciation for the Architectural Review Commission's work on this matter. C. REQUEST FOR AUTHORIZATION TO PURCHASE TRAFFIC SIGNAL EQUIPMENT FOR 15 INTERSECTIONS ALONG HIGHWAYS 111 AND 74. Mr. Greenwood explained that this request was in preparation for the City's taking over jurisdiction of Highways 111 and 74; the signal control equipment at those intersections currently is obsolete. Additionally, he said although the staff report didn't specifically mention it, the purchase would be conditioned upon the City being notified that it would be taking over the two State highways. Responding to question, he said the subject purchase was for replacing the signal controller only. In further response, he said the type of controller being recommended here and that is used at all the other City's signals is not the type that Caltrans uses; therefore, he doubted they would perform the direct replacement before the City assumed the highways. However, he said in the process to take over the highways, Caltrans would be providing the City with a stipend in consideration of the City's start-up costs; different amounts had been discussed, but he felt it would be around $450,000 when the report eventually comes in from Caltrans. In effect, they would be paying for the controllers. Mayor Pro Tem Kelly expressed concern that the subject request was premature; the City should be sure it was taking over the highways before the equipment was ordered. He related that the City had installed new equipment in those signals before, and when they came to do work on them, Caltrans took out the new items and left obsolete components. 10 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING MARCH 9, 2006 Mr. Greenwood responded that staff would not install any equipment until the City had control, and would not even order the subject equipment until the report from Caltrans had been received with exact monetary figures and dates. He offered that the request could be put off. He said the countdown signals were not included in this purchase —this was only the "brain" of the signal —staff intended to install countdown signals at specific locations. Councilman Crites moved to, by Minute Motion, authorize the purchase of traffic signal equipment to upgrade 15 signalized intersections on Highway 111 and Highway 74 — funds are available in Account No. 110-4250-433-3325, contingent upon confirmation of Caltrans' intent to officially transfer the Highways to the City of Palm Desert's jurisdiction. Motion was seconded by Spiegel and carried by 5-0 vote. D. REQUEST FOR APPROVAL OF CHANGES TO THE CITY OF PALM DESERT SALARY/BENEFIT PACKAGE. Mr. Ortega noted the report and recommendation for this item. He stated that in accordance with State Law, it has been negotiated with the City's bargaining group, which approved the recommendation. In answer to question, he said that represented employees had approved the benefit package. Councilman Spiegel moved to waive further reading and: 1) Pass Ordinance No. 1112 to second reading, amending the City's Personnel Ordinance; 2) adopt Resolution No. 06-34, rescinding and replacing Resolution No. 05-49, the Salary Schedule, Salary Ranges, and Allocated Classifications, for the period of March 6, 2006, through June 30, 2006; 3) adopt Resolution No. 06-35, amending Resolution No. 99-60, establishing an Employees' Cafeteria Benefits Program. Motion was seconded by Crites and carried by 5-0 vote. Mrs. Gilligan recognized and thanked Palm Desert Employees Organization representatives Johnny Terfehr and Bob Riches, both in attendance and who had been instrumental to the negotiation process. On behalf of the City Council, Mayor Ferguson extended their thanks to the gentlemen as well. E. CONSIDERATION OF HISTORIC PRESERVATION COMMITTEE PROJECT LIST. Mr. Hamidzadeh commented that he understood this matter was requested to be placed on the agenda by the City Council. Mayor Ferguson remarked that a number of questions had been fostered by the issue of Palm Desert Motor Lodge and in the prior City Council Study Session with the Committee. He went on to say there was a representative of the Motor Lodge here today, who has filed an appeal and also has some 11 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING MARCH 9, 2006 comments about how the City's ordinance is structured. He, too, had some questions in that regard. Responding to comment, Mr. Drell offered that because Mr. Hamidzadeh was out of the office at the time it was requested, he wrote the subject report; however, Mr. Hamidzadeh was the staff liaison to the program per the City's ordinance. Mr. Drell went on to say his report summarized the issues as he saw them. Relative to the Lodge, the ordinance calls for a public hearing on the Committee's recommendation, which has been scheduled for the next City Council Meeting due to the schedule for the procedural noticing requirements. The ultimate decision on the designation would be made by the City Council, also as per ordinance. He understood the purpose of the subject issue at this meeting was a general discussion of the process. Further, staff was currently working to engage a consultant to address the ordinance, and he also suggested that the consultant be utilized to expedite resolution of the list of sites to provide certainty to all the potentially affected property owners. Responding to question, Mr. Drell said there was a list of about 195 sites, and staff didn't feel it was appropriate to attempt to address them at this meeting. He felt it would be more appropriate to come back to the City Council in the future with a recommendation as to how the properties on that list should be classified as per the process. He believed that the existing process should be streamlined, but staff was following it and trying to work through it. Mayor Ferguson commented that he didn't want to have the example of Palm Desert Motor Lodge repeated 194 times. Mr. Drell agreed. Mr. Hamidzadeh remarked that staff believed the ordinance could be improved, especially since the Committee wasn't active until recently. He noted that they had done quite a bit of work, even though most of it was preliminary, but they still hadn't gone through the ordinance in its entirety. Although, the Committee supported contracting with a consultant to recommend amendments to the ordinance where they were needed to fit Palm Desert's current standards, as well as providing input on how each of the 195 properties could be looked at and prioritized for significance. He said once that was done, the Committee could review the prioritized list as the properties come up. Presently, the Committee had picked the first 10 on its list and was going through them; Palm Desert Lodge wasn't part of the top 10, but because an Applicant came to the City to find out about purchasing the property, it was put ahead of the other properties and considered through an untested process, which took more time, in addition to requiring more information about Palm Desert Lodge that the Committee felt it needed to make a sound decision. 12 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING MARCH 9, 2006 Mr. Ortega agreed that the City needed to enlist someone to help in rewriting the ordinance. However, he felt that before the Committee looked at making designations, it needed parameters set for it by the City Council in accordance with the ordinance (e.g. determining the districts, properties to be reviewed). But since there was a property in the process, the City needed to proceed with it as per the current ordinance. Mayor Ferguson related his concern about the 24-year-old ordinance that was never really used and then the City putting together a very good Committee to begin working it. However, once they generated a list of 195 properties, the title became clouded on those properties, as they are now listed pursuant to an ordinance that could severely restrict, limit, or prohibit any change or use in them. He said people wanting to sell or transact those properties are unable to do so because they can't get title insurance. Therefore, he was very reluctant to list anything that hasn't been acted upon by the City Council and visit that potential harm on someone unless the historic value was certain. Mr. Hamidzadeh explained that when the Committee came up with such a list, staff consulted with the City Attorney and used the verbiage "Potential Sites," to avoid putting a cloud on any property; it was just a means of organizing sites of interest. He reiterated that they would be considered 10 at a time, but if one comes up, it would be reviewed sooner. Mayor Ferguson suggested that part of the review include having the City Attorney sit down with the consultant to make a determination as to whether there is a plausible cloud on title, and if so, his recommendation on how the City Council could approach it at the next meeting. Mr. Hamidzadeh agreed. Mayor Pro Tem Kelly said he felt this was rather an urgent matter to get the parameters set before anything else comes up. Mayor Ferguson responded that his preference would be to declare right now that there were no sites of historic value in the City of Palm Desert. While there may be potential sites, there was nothing official that would cloud the title to those properties. He said then the City could start fresh, and when a candidate was identified, the Council could designate it for study by the Committee. He said the process usually dictated that the Council provided work to the Committee instead of the other way around. Mr. Hamidzadeh added that the way the ordinance reads currently, as long as the City Council does not designate any property as a historic site, there isn't one. Responding to further comment, he said he could work with the City Attorney; however, staff would be unable to bring back a new ordinance in two weeks since the consultant was not ready to review it. 13 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING MARCH 9, 2006 Mayor Ferguson suggested a motion to the effect that there are no historic sites, and anyone that has a potential of being listed is no different than anybody else in the City. Councilman Crites proposed taking it up again at the next City Council Meeting to be sure everything was adequately considered. Mayor Pro Tem Kelly and Councilman Spiegel agreed. Mayor Ferguson cautioned that he could wait two weeks, but he felt that was how the City needed to proceed, sooner rather than later, and how it should also provide direction to the Committee. Mayor Pro Tem Kelly expressed appreciation for all the Committee's work, and he hoped none of this discussion would be misconstrued as to diminish that fact. Councilman Crites agreed. Mayor Ferguson agreed, adding that he had no problem with the Committee, just the ordinance. With City Council concurrence, staff was requested to return to the next City Council Meeting with a report on how issues of the unofficial list of sites of interest can be reconciled with the current ordinance and with the interest of those property owners. XI. CONTINUED BUSINESS None XII. OLD BUSINESS A. REQUEST FOR AWARD OF CONTRACT FOR CONSTRUCTION OF FREEDOM PARK (CONTRACT NO. R23210, PROJECT NO. 713-00) (JOINT CONSIDERATION WITH THE PALM DESERT REDEVELOPMENT AGENCY). Mr. Ortega commented that now that the Agency Board/City Council had authorized the Agency to pay for the cost, staff was recommending award of the construction bid and appropriation of funding. Member/Councilman Spiegel stated that the Park was badly needed in this area of the City, and he moved to, by Minute Motion: 1) Authorize award of the subject contract to James E. Simon Company, Indio, California, in the amount of $9,769,276 ($7,186,115 from Project Area No. 4 and $2,338,961 from Project Area No. 2) and authorize the Chairman to execute same; 2) authorize the Director of Finance to set aside a 5% contingency in the amount of $488,464 from Project Area No. 2 (use of contingency requires additional action); 3) approve an appropriation of $244,200 from Public Works Unobligated Fund 232, 14 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING MARCH 9, 2006 Zone 3 Drainage; 4) approve an appropriation of $2,827,425 from Project Area No. 2 Unobligated Project Funds. Motion was seconded by Kelly. Responding to question, Parks Maintenance Supervisor Jay Niemczak said groundbreaking was anticipated by early next month, with completion in fall 2006. Chairman/Mayor Ferguson called for the vote, and the motion carried 5-0. B. REQUEST FOR APPROVAL OF CHANGE ORDER NO. 2 TO CONTRACT NO. C22800 — CONSTRUCTION MANAGEMENT SERVICES FOR THE CORPORATION YARD EXPANSION. Councilman Crites moved to, by Minute Motion: 1) Approve Change Order No. 2 in an amount not to exceed $72,322 to the subject contract with Harris & Associates, Palm Desert, California, for additional construction management services required for the Corporation Yard Expansion Project and authorize the Mayor to execute same; 2) appropriate $72,322 from Unobligated Fund 231 to Account No. 231-4330-413-4001 for this project. Motion was seconded by Benson and carried by 5-0 vote. XIII. PUBLIC HEARINGS A. CONSIDERATION OF THE CITY OF PALM DESERT'S CONVEYANCE OF A SINGLE-FAMILY DWELLING LOCATED AT 74-065 GOLETA AVENUE, APPROVAL OF A DISPOSITION AND DEVELOPMENT AGREEMENT WITH HABITAT FOR HUMANITY OF THE COACHELLA VALLEY, INC., RELATING THERETO, AND AUTHORIZATION FOR REIMBURSEMENT OF ACQUISITION COST BY THE REDEVELOPMENT AGENCY (JOINT CONSIDERATION WITH THE PALM DESERT REDEVELOPMENT AGENCY). Mr. Ortega stated that before the Agency could transfer property, it needed to be the subject of a public hearing. He said in this case, two actions were being approved, one by the Agency and one by the City, and staff was available for questions. Housing Authority Administrator Janet Moore noted that members of the Habitat For Humanity of the Coachella Valley Board of Directors were present today, as was the founder of the local Habitat Chapter, and she said they wanted to briefly address the Agency Board/City Council. MS. TERESA LA ROCCA, member of the Board of Habitat For Humanity of the Coachella Valley, Inc., and on its behalf expressed sincere appreciation to the Agency Board/City Council for its continued support of all of Habitat's efforts. She said they looked forward to this project, with Jerry Cole as its manager. 15 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING MARCH 9, 2006 Chairman/Mayor Ferguson declared the public hearing open and invited testimony SUPPORTING or OPPOSING the matter. With no public testimony offered, he declared the public hearing closed. Member/Councilman Spiegel moved to: 1) By Minute Motion, approve a Disposition and Development Agreement, substantially as to form, conveying the property located at 74-065 Goleta Avenue by the City of Palm Desert to Habitat For Humanity for the purpose of rehabilitating a single-family residential property to be made available to a very low or low income family with the condition that Habitat For Humanity enter into an Affordable Housing Restriction and Lien Agreement with the Palm Desert Redevelopment Agency; 2) by Minute Motion, authorize the Mayor or his designee to execute all necessary documents to facilitate the transfer; 3) waive further reading and adopt City Council Resolution No. 06-30, accepting reimbursement by the Redevelopment Agency for the cost of acquisition by the City for certain real property located at 74-065 Goleta Avenue in the City of Palm Desert; 4) waive further reading and adopt Redevelopment Agency Resolution No. 519, approving reimbursement by the Agency for the cost of the acquisition by the City for certain real property located at 74-065 Goleta Avenue (APN 625-022-005) in exchange for the requirement with Habitat For Humanity to record an affordability restriction for the period of 45 years in favor of the Palm Desert Redevelopment Agency; 5) by Minute Motion, appropriate $200,905 plus any transfers or closing costs to Account No. 870-4492-464-4001 for reimbursement from the Agency; 6) by Minute Motion, authorize the Chairman or his designee to execute all necessary documents to facilitate the transfer. Motion was seconded by Kelly and carried by 5-0 vote. B. REQUEST FOR APPROVAL OF A DISPOSITION AND DEVELOPMENT AGREEMENT BETWEEN PALM DESERT REDEVELOPMENT AGENCY AND C V FOOD SERVICE, INC., d.b.a. LA SPIGA, AND THE RELATED SUMMARY REPORT (JOINT CONSIDERATION WITH THE PALM DESERT REDEVELOPMENT AGENCY). Economic Development Manager Ruth Ann Moore reviewed the request for approximately one-half acre of property in the southwest corner of Tract Map No. 30226 (Entrada del Paseo). She said the developer, C V Food Service, Inc., was proposing to build a high -end Italian restaurant, approximately 4,500 square feet with an outdoor patio for dining and outdoor gardens encircled by a wall that will allow for hosting private events. She said the terms of the agreement involved the Agency's sale of a parcel with utilities installed to the parcel boundaries; the Agency will also construct parking and landscaping around the parcel and will maintain the area between it and the parcel planned for the Henderson Community Building. Terms were similar to those with Cuistot at Entrada del Paseo in 2003. She went on to say that the developer here will construct a fine dining restaurant, featuring Italian cuisine that will be open a minimum of five days per week, eight and one-half months per year, with the potential of also serving lunch at some time in the future. Additionally, she said the developer would pay common area maintenance fees for landscaping and parking on a prorated basis. She 16 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING MARCH 9, 2006 noted that a financial analysis for the agreement was included in the staff report. In response to question, she estimated there would be seating for 100 people. Chairman/Mayor Ferguson declared the public hearing open and invited testimony SUPPORTING or OPPOSING the subject request. With no public testimony offered, he declared the public hearing closed. Member/Councilmember Benson moved to waive further reading and adopt: 1) City Council Resolution No. 06-31, approving the sale by the Palm Desert Redevelopment Agency to C V Food Service, Inc., of approximately 0.53 acres of real property on a parcel located between Painter's Path, Highway 111, the Palm Valley Storm Channel, and west El Paseo; 2) Redevelopment Agency Resolution No. 520, approving the sale to C V Food Service, Inc., of approximately 0.53 acres of real property on a parcel located between Painter's Path, Highway 111, the Palm Valley Storm Channel, and west El Paseo. Motion was seconded by Spiegel and carried by vote of 5-0. C. REQUEST FOR APPROVAL OF CEQA (CALIFORNIA ENVIRONMENTAL QUALITY ACT) FINDINGS AND THE COACHELLA VALLEY MULTIPLE SPECIES HABITAT CONSERVATION PLAN/NATURAL COMMUNITIES CONSERVATION PLAN (CVMSHCP/NCCP) IMPLEMENTATION AGREEMENT AND ORDINANCE ESTABLISHING A LOCAL DEVELOPMENT MITIGATION FEE (Continued from the meeting of February 23, 2006). Mayor Ferguson noted his conflict with the subject item of business, and in accordance with State Law, he asked Mayor Pro Tem Kelly to preside over the item and left the Council Chamber. Mayor Pro Tem Kelly noted staff's recommendation for continuance and declared the public hearing open. He invited public testimony on the matter; with none offered, he declared the public hearing closed. Councilman Crites moved to, by Minute Motion, continue this public hearing to the meeting of March 23, 2006. Motion was seconded by Spiegel and carried by 4-0 vote, with Ferguson ABSENT. 17 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING MARCH 9, 2006 D. CONSIDERATION OF REQUEST FOR APPROVAL OF A TENTATIVE TRACT MAP AND ENVIRONMENTAL IMPACT REPORT TO ALLOW THE SUBDIVISION OF 11.87 ACRES INTO SEVEN (7) LOTS TO ALLOW CONSTRUCTION OF FOUR (4) SINGLE-FAMILY HOMES ADJACENT TO THE "CANYONS AT BIGHORN GOLF CLUB," WEST OF INDIAN COVE AND SOUTH OF DEAD INDIAN CREEK; AND CONSIDERATION OF REQUEST ON THE SAME PROPERTY FOR A GENERAL PLAN AMENDMENT FROM LOW DENSITY RESIDENTIAL (STUDY ZONE) TO HILLSIDE RESERVE AND ZONE CHANGE FROM A COMBINATION OF PLANNED RESIDENTIAL, FIVE (5) UNITS PER ACRE AND HILLSIDE PLANNED RESIDENTIAL, TO HILLSIDE PLANNED RESIDENTIAL ON THE ENTIRE PROPERTY Case Nos. TT 31676, GPA 6-1, C/Z 6-1 (Cornishe of Bighorn, LLC, and City of Palm Desert, Applicants) (Continued from the meeting of February 23, 2006). Mayor Ferguson called attention to the recommendation for continuance. Mr. Drell remarked that at Tuesday's meeting, the Planning Commission continued this matter to its second meeting in April. Therefore, he suggested it also be continued to the City Council's second meeting in April. He observed that the issue was somewhat unusual in that the City was trying to certify the EIR (Environmental Impact Report), which may result in denial of a project and resulting legal issues. Therefore, staff was exercising all due care and was trying to work with all the various parties to come up with a solution that will alleviate those issues. In answer to question as to whether or not a response had been received from the Bureau of Land Management following the City's inquiry about what they saw as solutions when the terms under which they granted use of property turned out not to be true, he said it hadn't, and he further agreed to inquire again about it. Mayor Ferguson declared the public hearing open and invited anyone wishing to address the City Council on this matter to come forward at this time. No public testimony was offered, and he left the public hearing open. Councilman Crites moved to continue this public hearing to the City Council Meeting of April 27, 2006. Motion was seconded by Spiegel and carried by 5-0 vote. XIV. REPORTS AND REMARKS A. CITY MANAGER Mr. Ortega stated that staff had asked the City Council to gather for a Study Session on March 17 to receive a presentation on the Palm Desert Energy Plan. 18 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING MARCH 9, 2006 He went on to say that staff has also been working on a nexus study for justification of charging a fee in the northern part of the City for a new fire station; a consultant has been working on this matter, but now the project was at a point where it needed City Council input on a specific site in order to move forward. Therefore, he wanted to be able to distribute a report on this matter to the Council, including some recommendations that it can study beforehand. He asked for the Council's consideration of adjourning today's meeting to next Friday to select the site for the fire station, and the Energy Plan matter could also be presented at that time. Responding to question, Mr. Ortega said the City was approving permits for various projects in that area, and staff would rather get the fire station matter done as quickly as possible. Following further discussion by the City Council and staff, it was agreed that today's meeting would be adjourned to 2:30 p.m. on Friday, March 17, 2006, for the purpose of considering both the Energy Plan and the Fire Station Site Selection. B. CITY ATTORNEY None C. CITY CLERK None D. PUBLIC SAFETY o Fire Department None o Police Department None E. MAYOR AND MEMBERS OF THE CITY COUNCIL o City Council Requests for Action: 1. Councilman Crites stated that a fairly detailed letter had recently been received from Kim Housken regarding second unit issues, and he'd discussed the matter with Mr. Drell. He went on to say there was a difference of opinion, which led him to suggest the matter be placed on the City Council's next agenda to discuss how second units are currently being 19 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING MARCH 9, 2006 addressed by the City and make sure there's a level of comfort with the interpretation. City Councilmembers concurred with the request. o City Council Committee Reports: None o City Council Comments: 1. Councilman Spiegel recognized his mother in-law, Lois Shepperton, who had just flown in from Hartford, Connecticut, and was in the audience for part of the meeting. XV. ORAL COMMUNICATIONS - C None XVI. ADJOURNMENT Upon a motion by Crites, second by Spiegel, and 5-0 vote of the City Council, Mayor Ferguson adjourned the meeting to Closed Session at 5:18 p.m. He reconvened the meeting at 5:39 p.m., with no reportable action from the Closed Session, and immediately adjourned to 2:30 p.m. on Friday, March 17, 2006. ATTEST: RACHELLE D. KLASSEN, CITY CLERK CITY OF PALM DESERT, CALIFORNIA JIM FERGUSON, MAYOR 20