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HomeMy WebLinkAboutPRELIM - CC - 06/22/06 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING THURSDAY, JUNE 22, 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 Homer Croy, ACM for Development Services Justin McCarthy, ACM for Redevelopment Stephen Y. Aryan, Assistant to the City Manager Rachelle D. Klassen, City Clerk Phil Drell, Director of Community Development Patrick Conlon, Director of the Office of Energy Management Paul S. Gibson, Director of Finance/City Treasurer Doug Van Gelder, Director of Information Systems Mark D. Greenwood, Director of Public Works Frankie Riddle, Acting Director of Special Programs Dan Kaiser, Deputy Building Official Walt Holloway, Battalion Chief, Palm Desert/Riverside Co. Fire Dept./CDF Craig Kilday, Chief of Police, Palm Desert Police/Riverside Co. Sheriff's Dept. Grace L. Mendoza, Deputy City Clerk III. ADJOURN TO CLOSED SESSION Request for Closed Session: Conference with Real Property Negotiator pursuant to Government Code Section 54956.8: 2 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 22, 2006 1) Property: Lease Property - Parkview Professional Office Complex, 73710 Fred Waring Drive, Suite No. 102, Palm Desert Negotiating Parties: Agency: Carlos L. Ortega/Paul S. Gibson/City of Palm Desert Property Owner: City of Palm Desert Other Parties: County of Riverside, Fire Marshal Under Negotiation: x Price x Terms of Payment 2) Property: Lease Property - Parkview Professional Office Complex, 73710 Fred Waring Drive, Suite No. 106, Palm Desert Negotiating Parties: Agency: Carlos L. Ortega/Paul S. Gibson/City of Palm Desert Property Owner: City of Palm Desert Other Parties: Coachella Valley Economic Partnership Under Negotiation: x Price x Terms of Payment 3) Property: 8,800 acres — Joshua Hills (Sect. 27, T3S R6E; Sect. 35, T3S R6E; Government Lots 17, 18, 19, and 20; Portion Sect. 30, T3S R7E) Negotiating Parties: Agency: Carlos L. Ortega/City of Palm Desert Property Owner: Friends of the Desert Mountains Under Negotiation: x Price x Terms of Payment Conference with Legal Counsel regarding existing litigation pursuant to Government Code Section 54956.9(a): a) Indian Springs, Ltd. v. City of Palm Desert, et al., Riverside County Superior Court Case No. INC 053903 b) Mary Justice v. Coachella Valley Association of Governments, et al., Riverside County Superior Court Case No. RIC 451297 Conference with Legal Counsel regarding significant exposure to litigation pursuant to Government Code Section 54956.9(b): Number of potential cases: 3 Conference with Chief of Police/Assistant Chief to consider Security of City of Palm Desert Public Buildings pursuant to Government Code Section 54957 Public Employment pursuant to Government Code Section 54957: Title of Position: City Attorney 3 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 22, 2006 With City Council concurrence, Mayor Ferguson adjourned the meeting to Closed Session at 3:00 p.m. He reconvened the meeting at 4:05 p.m. IV. RECONVENE REGULAR MEETING - 4:00 P.M. A. REPORT ON ACTION FROM CLOSED SESSION. None V. AWARDS, PRESENTATIONS, AND APPOINTMENTS A. APPOINTMENT TO THE HOUSING COMMISSION. Councilman Crites moved to, by Minute Motion, appoint Verna Smith to the Housing Commission to fill the at-large position formerly held by Dr. Roger Dash (term 12/31/09). Motion was seconded by Spiegel and carried by a 5-0 vote. VI. CONSENT CALENDAR A. MINUTES of the Regular City Council Meeting of June 8, 2006. Rec: Approve as presented. Continued to the meeting of July 13, 2006. B. CLAIMS AND DEMANDS AGAINST THE CITY TREASURY - Warrant Nos. 244, 247, 249, and 250. Rec: Approve as presented. C. APPLICATION FOR ALCOHOLIC BEVERAGE LICENSE by David L. Willie for Bagel Bistro, 44-489 Town Center Way, Suite G, Palm Desert. Rec: Receive and file. D. APPLICATION FOR ALCOHOLIC BEVERAGE LICENSE by Tommy Bahama's, 73-595 EI Paseo, Suite 2200, Palm Desert. Rec: Receive and file. E. APPLICATION FOR ALCOHOLIC BEVERAGE LICENSE by Woon Sook Chung and Kyung Sik Myung for Clubhouse Liquor & Deli, 73-510 Palm Desert Drive, Palm Desert. 4 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 22, 2006 Rec: Receive and file. F. CITY COMMITTEE AND COMMISSION MEETING MINUTES. 1. Parks & Recreation Commission Meeting of May 16, 2006. 2. Youth Committee Meeting of May 2, 2006. Rec: Receive and file. G. REQUEST FOR ADOPTION of Resolutions, Setting Forth Findings and Authorizing the Destruction of Paper Records from the Department of Building & Safety that Have Been Digitally Imaged (February 2006 and March 2006). Rec: Waive further reading and adopt: 1) Resolution No. 06-89 — February 2006; 2) Resolution No. 06-90 — March 2006. H. REQUEST FOR ADOPTION of Resolutions, Setting Forth Findings and Authorizing the Destruction of Paper Records from the Department of Building & Safety that Have Been Digitally Imaged (1997 and 1998 Code Cases). Rec: Waive further reading and adopt: 1) Resolution No. 06-91 - 1997 Code Cases; 2) Resolution No. 06-92 - 1998 Code Cases. I. CONSIDERATION of a Recommendation by the Library Promotion Committee to Approve Purchase of Laptop Computers to Expand the Schedule of Computer Classes Provided at the Palm Desert Public Library. This item was removed for separate consideration under Section VII - Consent Items Held Over. Please see that portion of the Minutes for discussion and subsequent action. J. REQUEST FOR RENEWAL of Contractwith the Law Firm of Liebert Cassidy Whitmore (LCW) to Maintain the City's Membership in the Coachella Valley Employment Relations Consortium For FY 2006/07 (Contract No. C21522). Rec: By Minute Motion, approve renewal of the subject contract with LCW, enabling the City to maintain its membership in the Coachella Valley Employment Relations Consortium, authorize the City Manager to sign the proposed contract with LCW, and authorize payment of the annual membership fee of $3,452 before August 1, 2006. 5 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 22, 2006 K. REQUEST FOR AWARD OF CONTRACT for Civic Center Lagoon and Entrada del Paseo Water Feature Maintenance FY 2006/07 (Contract No. C25190). Rec: By Minute Motion, award the subject contract to Southwest Aquatics, Palm Desert, California, in the amount of $18,900 for lagoon and water feature maintenance services for the Civic Center Park and Entrada del Paseo — funds are available in Account N o. 110-4610-453-3320. L. REQUEST FOR ACCEPTANCE OF WORK for Contract No. C23090 — Civic Center Well Site Renovation/Construction of Pump House (Project No. 720-01) (Cora Constructors, 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. M. REQUEST FOR AWARD OF BID for the Purchase of Three Evaporative Cooler/Heater Units for the Maintenance Services Facility. Rec: By Minute Motion, award the subject bid to Maple Leaf Plumbing, Heating/Air Conditioning, Palm Desert, California, in the amount of $39,000 —funds are available in the Corporation Yard Improvement Account, No. 231-4330-413-4001. N. REQUEST FOR APPROVAL of Purchases of Gasoline and Diesel Fuel for FY 2006/07. Rec: By Minute Motion, approve the use of Lee Escher Oil Company, Kenny Strickland, and SoCo Group for purchases of gasoline and diesel fuel for the City's vehicle fleet and equipment for FY 2006/07— funds are available in the Auto Fleet Account, No. 110-4331-413-2170. O. REQUEST FOR APPROVAL of Original Equipment Manufacturer (OEM) Services and an Exception to Bidding Requirements for FY 2006/07. Rec: By Minute Motion: 1)Approve the OEM Vendor List, as submitted, for vehicle repair, maintenance, and parts that are not available from aftermarket sources; 2) grant exception to bidding requirements provided in Palm Desert Municipal Code Section 3.32.090 for this purpose. 6 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 22, 2006 P. REQUEST FOR APPROVAL of Various Vendors and Qualified Service Providers for the Public Works Maintenance Services Division for FY 2006/07. Rec: By Minute Motion, approve of the vendor list, as submitted, for miscellaneous parts, accessories, maintenance, and services necessary for the Public Works Maintenance Division. Item I was requested for separate consideration under Section VI I -Consent Items Held Over of the Agenda by Councilman Spiegel. Mrs. Klassen also asked that Item A - Minutes of the Regular City Council Meeting of June 8, 2006, be continued to the next meeting. Upon motion by Spiegel, second by Kelly, the remainder of the Consent Calendar was approved as presented by a 5-0 vote of the City Council, with the exception of Item A, which was continued to the next meeting. VII. CONSENT ITEMS HELD OVER I. CONSIDERATION of a Recommendation by the Library Promotion Committee to Approve Purchase of Laptop Computers to Expand the Schedule of Computer Classes Provided at the Palm Desert Public Library. Councilman Spiegel felt the amount of money requested was not huge and certainly a good program for the purchase of additional laptops for the Library, but felt the Library was in a state of flux with College of the Desert possibly moving out and the City of Palm Desert possibly taking over. He said the library had a huge computer room and wondered how this would all fit in. He asked the City Manager where the City stood; he had no problem purchasing the laptops, he just wanted to make sure it was the right thing to do at this time. Mr. Ortega stated that a recommendation was in the process. Unfortunately, when the budget was formulated, that alternative was not available and decisions were already made to withhold some of the funding as recommended. He didn't know if the library needed the laptops right away. Councilmember Benson stated this was discussed at the Library Committee, and there was quite a demand for the laptops. In their discussions, it seemed it would take a couple of years before the City's acquisition of the entire building would take place, but the laptops were needed now. 7 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 22, 2006 Councilmember Benson moved to, by Minute Motion, concur with the Library Promotion Committee's recommendation, following its meeting of June 21, 2006, to purchase 13 laptop computers ($24,050), security cart for storage ($1,450), color laser printer ($1,100), DLP projector ($3,100), and related accessories ($2,000) in an amount not to exceed $32,000 in order to expand the computer class schedule into the Multi- Agency Library's Community Room—funds are available in the FY 2005/06 Library Capital Fund Budget, Account No. 452-4662-454-4001. Motion was seconded by Spiegel and carried by 5-0 vote. VIII. RESOLUTIONS A. RESOLUTION NO. 06-93 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, APPROVING THE SUBDIVISION MAP OF PARCEL MAP 29888 AND APPROVING THE AGREEMENT RELATING THERETO (Choice Enterprise, Applicant). Upon question, Mr. Greenwood said the project was just west of the University Baptist Church, between it and One Quail place, and involved an access across the church property on Fairhaven Drive. Councilman Crites moved to waive further reading and adopt Resolution No. 06-93. Motion was seconded by Benson and carried by a 5-0 vote. B. RESOLUTION NO. 06-94 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, APPROVING THE FINAL SUBDIVISION MAP OF TRACT NO. 31363 AND THE IMPROVEMENT AGREEMENT RELATED THERETO (Sares Regis Group, Applicant). Mayor Ferguson moved to waive further reading and adopt Resolution No. 06-94. Motion was seconded by Crites and carried by a 5-0 vote. C. RESOLUTION NO. 06-95 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, APPROVING THE MAP OF PARCEL MAP NO. 33855 AND APPROVING THE AGREEMENT RELATED THERETO (Spyder Business Center, LLC, Applicant). Upon question, Mr. Greenwood confirmed there were no problems with this item. Councilman Crites moved to waive further reading and adopt Resolution No. 06-95. Motion was seconded by Kelly and carried by a 5-0 vote. 8 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 22, 2006 D. RESOLUTION NO. 06-96 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, APPROVING THE FINAL SUBDIVISION MAP OF TRACT NO. 33935 AND THE IMPROVEMENT AGREEMENT RELATED THERETO (Trans West Housing, Inc., Applicant). In response to Councilman Spiegel's question, Mr. Greenwood responded the homeowners association would handle the drainage issues and landscape maintenance. He agreed to make sure the HOA followed through. Councilman Spiegel moved to waive further reading and adopt Resolution No. 06- 96. Motion was seconded by Kelly and carried by a 5-0 vote. E. RESOLUTION NO. 06-97 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, DENYING AN AMENDMENT TO AN APPROVED PRECISE PLAN OF DESIGN AND PARKING ADJUSTMENTTOALLOWADRIVE-THRU SPECIALTYCOFFEE OUTLET ADJACENT TO COOK STREET, PAD #4, 37-825 COOK STREET Case No. PP 03-11 Amendment No. 1 (Prest Vuksic Architects and The Evans Company, Applicants). Councilman Spiegel noted a memo was received by the applicant requesting a continuance. Councilmember Benson stated she didn't feel the need to investigate the matter further. Mayor Pro Tem Kelly felt the applicant should be given the opportunity to bring back a brilliant idea to make it work. On that basis, he moved to continue the matter. Motion was seconded by Spiegel. Councilman Crites commented that no drive-thru's meant no drive-thru's and the matter was about the policy. Mayor Ferguson called for the vote, and motion FAILED on a 2-3 vote, with Councilmember Benson, Councilman Crites and Mayor Ferguson voting NO. Councilman Crites moved to waive further reading and adopt Resolution No. 06-97. Motion failed for lack of a second. Councilman Spiegel stated that generally when a developer asked for an item to be continued, the Council normally approved it. In this particular case, he couldn't understand why the request was being denied. 9 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 22, 2006 Mayor Pro Tem Kelly stated that regardless of personalities or what was said at the last meeting, he felt the matter needed to be looked at on the basis of treating everyone equal. It seemed there would be no harm in continuing this item to see what the applicants were going to propose. He was not comfortable denying the request and taking away an opportunity for the applicants to possibly present a good product. Councilman Crites stated the denial for continuance wouldn't prevent the applicant from returning and presenting a variety of projects. He reiterated it was about drive-thru's outside the freeway overlay and, as a policy, were not allowed. Outside of that realm, the denial would not limit the applicants in any other way, and he felt the Council would welcome innovative and creative uses for that particular project. The denial simply affirmed one particular issue with the project, which was the drive-thru. Mayor Ferguson stated that a boundary line had been set, and the drive-thru was either within the line or over the line. He verified with the applicanYs architect that the drive-thru was over the line. In the past, other people wanted drive-thru's and were told no. He liked Mr. Evans and hoped that he would get a good restaurant at that location but did not see any purpose in continuing the consideration of whether he could have a drive-thru outside of the freeway overlay. Mayor Pro Tem Kelly suggested rephrasing the motion in a friendly way that conveyed the Council would still like to have the Applicant show them something, even though their request for a continuance was denied. Councilman Crites moved to waive further reading and adopt Resolution No. 06-97, with the understanding that it does not in any way intend to inhibit or stifle the ApplicanYs ability to develop the property in a way that is consistent with his project, but simply refers specifically to the issue about whether or not a drive-thru facility is acceptable; and while denying the request for amendment, the City Council encourages the Applicant to continue a dialog with the City for a use that is creative, profitable, and appropriate for the site. Motion was seconded by Benson and carried by a 5-0 vote. IX. ORDINANCES For Introduction: None 10 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 22, 2006 For Adoption: A. ORDINANCE NO. 1120 - AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, UPDATING THE FIRE FACILITY IMPACT FEE APPLICABLE TO NEW COMMERCIAL, RESIDENTIAL, AND INDUSTRIAL DEVELOPMENT WITHIN FIRE SERVICE AREA NO. 71. Mr. Ortega stated the Council asked for clarification with regards to Section 4. Clarification was offered at the last City Council meeting, which was the first public hearing for this item. There were no substantive changes to the ordinance; therefore, it would not require another first reading. He recommended it be adopted as clarified. Councilmember Benson moved to waive further reading and adopt Ordinance No. 1120. Motion was seconded by Spiegel and carried by a 5-0 vote. B. ORDINANCE NO. 1121 - AN URGENCY ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, AMENDING CHAPTER 2.52 OF THE PALM DESERT MUNICIPAL CODE BY AMENDING SECTION 2.52.600 RELATIVE TO WORKWEEK AND OVERTIME (THE PERSONNEL ORDINANCE). Councilman Spiegel moved to waive further reading and adopt Ordinance No. 1121. Motion was seconded by Kelly and carried by a 5-0 vote. X. NEW BUSINESS A. REQUEST FOR APPROVAL OF ACTIONS RELATIVE TO THE 2006 PALM DESERT GENERAL MUNICIPAL ELECTION TO BE HELD IN THE CITY ON TUESDAY, NOVEMBER 7. Mayor Pro Tem Kelly moved to waive further reading and adopt: 1) Resolution No. 06-98, calling and giving notice of the holding of a General Municipal Election to be held on Tuesday, November 7, 2006, for the election of certain officers as required by provisions of the Laws of the State of California and the Charter of the City of Palm Desert; 2) Resolution No. 06-99, requesting the Board of Supervisors of the County of Riverside to consolidate a General Municipal Election to be held on Tuesday, November 7, 2006, with the Statewide General Election to be held on the date pursuant to § 10403 of the Elections Code; 3) Resolution No. 06-100, adopting regulations for candidates for elective office pertaining to candidates' statements submitted to the voters at an election to be held on Tuesday, November 7, 2006. Motion was seconded by Spiegel and carried by a 5-0 vote. 11 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 22, 2006 B. REQUEST FOR APPROVAL OF THE PURCHASE OF STORAGE ATTACHED NETWORK(SAN) FOR PROVIDING BETTER MANAGEMENT AND PROTECTION OF CITY COMPUTER DATA FILES. Councilman Crites moved to, by Minute Motion, approve the purchase of Hitachi Data Systems Storage Attached Network solution from Gateway Computers in the amount of$67,211 plus applicable taxes—funds are available in Account No. 110-4190-415-4040. Motion was seconded by Spiegel and carried by a 5-0 vote. C. REQUEST FOR APPROVAL OF OUTSIDE AGENCY FUNDING (CHARITABLE CONTRIBUTIONS) FOR FISCAL YEAR 2006/07. Councilman Crites moved to, by Minute Motion: 1)Approve the recommendation of the Outside Agency Funding Committee for charitable contributions totaling $522,000 to the agencies listed in the accompanying staff report; 2) defer action on the school reimbursement policy to a later date. Councilman Spiegel commented the Committee did an outstanding job in putting the list together and working on a policy that would deal with contributions specifically to schools, which made a lot of sense. He noted the committee consisted of the Mayor and Mayor Pro Tem. Councilman Spiegel seconded the motion, and it carried by a 5-0 vote. D. REQUEST FORAWARD OF CONTRACT FOR THE CITYWIDE ARTERIAL SLURRY SEAL PROGRAM (CONTRACT NO. C24360A, PROJECT NO. 751-06A). Councilmember Benson moved to, by Minute Motion: 1)Award the subject contract in the amount of$1,101,600 to Pavement Coatings Co., Cypress, California; 2) authorize a 10% contingency for the project in the amount of $110,160; 3) authorize the Mayor to execute said agreement—funds are available in Account No. 110-4311-433-3320. Motion was seconded by Spiegel and carried by a 5-0 vote. E. REQUEST FOR AWARD OF CONTRACT FOR THE 2006 CITYWIDE RESTRIPING PROGRAM (CONTRACT NO. C25050, PROJECT NO. 564-06). Mayor Pro Tem Kelly asked why had it taken so long to restripe San Pablo. He felt it was a dangerous situation and had observed a lot of near accidents, including the one he was almost involved in there. 12 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 22, 2006 Mr. Greenwood responded the striping contractor for the project at San Pablo was a sub-contractor to the Slurry Contractor. He felt the contractor was not very experienced with this type of work, and San Pablo was a tight street without much room for error; they opted to have it done right rather than having it done fast. The layout was improved yesterday and should be striped within the next few days. Councilman Crites moved to, by Minute Motion: 1) Award the subject contract to California Traffic Maintenance Inc., Burbank, California, in the amount of $149,960; 2) authorize a 10% contingency for the project; 3) authorize the Mayor to execute said contract; 4) appropriate $17,750 from the Unobligated General Fund to the project account. Motion was seconded by Spiegel and carried by a 5-0 vote. F. REQUEST FOR AWARD OF CONTRACT FOR LANDSCAPE MAINTENANCE AREA NO. 3 (CONTRACT NO. C25200). Councilman Crites moved to, by Minute Motion: 1) Determine that bid submitted by Grace Building Maintenance Company Inc., Los Angeles, California, for the subject services is non-responsive; 2) award the subject contract to PWLC II Inc., Palm Springs, California, in the amount of $126,888 and authorize the Mayor to execute same —funds are available in the FY 2006/07 Landscape Maintenance Account Nos. 110-4611-453-3320, 276-4374-433-3320, and 510-4195-495-3371. Motion was seconded by Spiegel and carried by a 5-0 vote. G. REQUEST FOR AWARD OF CONTRACT FOR LANDSCAPE MAINTENANCE AREA NO. 5 (CONTRACT NO. C25210). Councilman Spiegel moved to, by Minute Motion, award the subject contract to PWLC II Inc., Palm Springs, California, in the amount of$118,572 and authorize the Mayor to execute same—funds are available in the FY 2006/07 Landscape Maintenance Account Nos. 110-4611-453-3320 and 110-4611-453-3371. Motion was seconded by Kelly and carried by a 5-0 vote. H. REQUEST FOR AWARD OF CONTRACT FOR CONSTRUCTION OF TRAFFIC SIGNAL AND STREET IMPROVEMENTS AT THE INTERSECTION OF HIGHWAY 74 AND SHADOW MOUNTAIN DRIVE (CONTRACT NO. C25270, PROJECT NO. 565-04). Upon question by Councilman Spiegel, Mr. Greenwood responded traffic signals generally required four to five months; he expected the project to be completed by Christmas. 13 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 22, 2006 Mayor Ferguson asked if this project was contingent on Caltrans. Mr. Greenwood replied the City had its permit, and it was not contingent on Caltrans' approval. Councilman Spiegel moved to, by Minute Motion: 1) Award the subject contract to Granite Construction Company, Indio, California, in the amount of$613,613; 2) authorize a 10% contingency for the project; 3) authorize the Mayor to execute said contract; 4) appropriate $475,000 from Unobligated Fund 400 to the project account. Motion was seconded by Kelly and carried by a 5-0 vote. I. REQUEST FOR AWARD OF CONTRACT FOR CONSTRUCTION MANAGEMENT SERVICES FOR PHASE I OF THE SECTION 29 ASSESSMENT DISTRICT AND APPROVAL OF A REIMBURSEMENT AGREEMENT WITH PONDEROSA HOMES. Mr. Greenwood stated staff worked with developers to form an assessment district for the public improvements in the areas of Monterey Avenue, Gerald Ford Drive, Portola Avenue, and Avenue 35. He noted the process had taken longer than anticipated. The most critical improvement for the developer was to get the sewer line in, in order to progress on their homes. After much discussion with staff, it was agreed to move ahead, with many steps still involved due to the technicalities of the assessment district. Staff requested the developers submit a deposit for both the value of the improvements and construction managemenYs time. Benefit to the City would be that the rough grading for the streets would occur at the same time the sewer line was installed. The City would then be inching forward on the street improvements, which is really the aspect that the City wants to see completed. Therefore, staff recommended approval of the agreement. Councilman Crites moved to, by Minute Motion: 1) Award the construction management agreement for the first phase of Section 29 Assessment District to Berg and Associates, Inc., La Quinta, California, in the amount of$271,867(Contract No. C25420A); 2) authorize the Mayor to execute same; 3)authorize the Mayor to enter into an agreement with Ponderosa Homes for reimbursement of construction management costs (Contract No. C25420B); 4) appropriate $275,000 from Unobligated Fund 400 for the Section 29 Phase I Construction Management. Motion was seconded by Benson and carried by a 5-0 vote. J. REQUEST FOR AWARD OF CONTRACT FOR DESIGN OF MEDIAN LANDSCAPING ON MONTEREY AVENUE AND DINAH SHORE DRIVE (CONTRACT NO. C25430, PROJECT NO. 961-02). Councilman Crites moved to, by Minute Motion: 1) Award the subject contract to Lynn Capouya, Inc., Newport Beach, California, in the amount of$48,418; 2) authorize a 14 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 22, 2006 10% contingency for the contract in the amount of $4,814.80; 3) authorize the Mayor to execute said agreement—funds are available in Account No. 400-4614-433-4001. Motion was seconded by Kelly and carried by a 5-0 vote. K. REQUEST FOR AWARD OF CONTRACT FOR ADVERTISING SERVICES FOR FISCAL YEAR 2006/07 (CONTRACT NO. C23411). Councilman Spiegel moved to, by Minute Motion, concur with the Marketing Committee's recommendation and award the subject contract to Full Gallop Marketing Communications, Palm Desert, California, in the amount of $90,000 and authorize the Mayor to execute same on behalf of the City — funds are available in Account No. 110-4417-414-3215. Motion was seconded by Kelly and carried by a 5-0 vote. L. REQUEST FOR AWARD OF CONTRACT FOR MONTHLY PRINTING OF THE BRIGHT SIDE NEWSLETTER FOR FISCAL YEAR 2006/07 WITH A ONE-YEAR EXTENSION PROVISION (CONTRACT NO. C25440). Councilman Spiegel moved to, by Minute Motion: 1) Award the subject contract to Coachella Valley Printing Group, Indio, California, in the amount of $4,950/month for FY 2006/07 and with a one-year extension provision including a 4.5% increase; 2) authorize the Mayor to execute said contract — funds are available in Account No. 110-4417-414-3610. Motion was seconded by Kelly and carried by a 5-0 vote. M. REQUEST FOR APPROVAL OF CONTRACT FOR ADVERTISING SERVICES FOR THE EL PASEO BUSINESS IMPROVEMENT DISTRICT (CONTRACT NO. C25450). Mayor Pro Tem Kelly moved to, by Minute Motion, approve the subject contract with Creative i Group, Inc., Palm Desert, California,for one year, July 1, 2006, through June 30, 2007, in an amount not to exceed $230,000 for advertising services, including $42,000 in agency retainer fees for the EI Paseo Business Improvement District, and authorize the Mayor to execute same—funds are available in Account No. 271-4491-464-3215. Motion was seconded by Crites and carried by a 5-0 vote. N. REQUEST FOR APPROVAL OF THE PRESIDENTS' PLAZA I (EAST/WEST) BUSINESS IMPROVEMENT DISTRICT ANNUAL BUDGET FOR FISCAL YEAR 2006/07. Upon question by Councilman Spiegel, Mr. Croy responded this District was on its third year of a five-year agreement to assess a 3% cost of living increase, which was justified in the cost submitted by the contractor. Councilman Spiegel moved to waive further reading and adopt: 1) Resolution No. 06-101, approving the Presidents' Plaza I Business Improvement District Budget for 15 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 22, 2006 FY 2006/07; 2) Resolution No. 06-102, ordering the levy and collection of assessments for said District for FY 2006/07. Motion was seconded Kelly and carried by a 5-0 vote. 16 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 22, 2006 O. CONSIDERATION OF REQUESTS BY WASTE MANAGEMENT OF THE DESERT(WMD) FORAPPROVAL OFANNUAL PRODUCER PRICE INDEX (PPI) RATE INCREASE, ONE-YEAR EXTENSION OF FRANCHISE AGREEMENT, AND EXTENSION OF TIME FOR REPLACEMENT OF ALTERNATIVE FUEL VEHICLES. Mayor Ferguson noted that his prior legal representation of Waste Management would be the reason he would not be participating in any discussion or action on this matter. He then recused himself from the Council Chamber and asked Mayor Pro Tem Kelly to preside. Mr. Ortega stated the contract allowed for certain rate increases based on economic factors and the request was in accordance with their contract. More importantly, replacement of alternative fuel vehicles was required, and Waste Management was requesting an extension. Councilman Spiegel asked when the name change from Waste Management to Burrteck would take place and if this item would need to be re-approved after the transfer. Mr. Ortega replied the name change would take place July 1, and this item would not need to be re-approved. Mayor Pro Tem Kelly stated that staff was recommending the full 100% increase of the PPI and wondered if the City could consider the rate increase annually. He acknowledged the PPI was fairly low in the past several years, but there were also years when it went out of sight. His preference was to approve the 100% increase this year and review the rate annually instead of changing the contract. Ms. Riddle said that part of the request by Waste Management was to offset the costs before implementation of the automated collection program. That was the main reason staff recommended 100% of the PPI. She said it would not be a problem if the City Council wished to review the increase annually. Councilman Crites suggested asking the applicant how he felt about the idea of reviewing the PPI annually whether or not the Council agreed. MR. FRANK ORLETT, District Manager of Waste Management/Burrteck, stated the request for the one-year extension and the 100% PPI for the remainding 3.8 years of the agreement was all part of the implementation of automated trash in gated communities that took place last year. He said he and City staff were under the assumption that it was approved last year but apparently not noted in the paperwork. He said approval would help with the recuperation of additional capital cost for the containers. In response to 17 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 22, 2006 question, he agreed with the City Council's desire to review the increase annually. Councilman Crites moved to waive further reading and adopt Resolution No. 06- 103, approving the new, adjusted rate schedule of fees (Exhibits 5A, 5B, and 5C) for the collection, recycling, and disposal of municipal solid waste and residential/commercial recycling contained in Contract No. C17230 - Solid Waste Management Services; 2) by Minute Motion, approve a one-year extension of the aforementioned franchise agreement to February 28, 2009; 3) by Minute Motion, approve an amendment to the existing franchise agreement with WMD to provide for a 100% increase of the PPI for the current year with annual review of the request for 100% PPI increase to determine its appropriateness in future years; 4) by Minute Motion, approve a second time extension of the agreement with WMD (to June 30, 2006) for replacement of CNG trucks destroyed by fire and direct staff to implement the $100/day fee thereafter until the trucks are replaced and in service. Motion was seconded by Spiegel and carried by a 4-0 vote, with Mayor Ferguson ABSENT. XI. CONTINUED BUSINESS A. REQUEST FOR APPROVAL OF FIRST AMENDMENT TO THE HOUSING AGREEMENT BY AND BETWEEN THE CITY OF PALM DESERT AND SARES REGIS, ALSO KNOWN AS LOMAS DE ARENA, L.P. (Continued from the meetings of April 27, May 11, and May 25, 2006). Councilman Crites moved to, by Minute Motion, continue this item to a date uncertain. Motion was seconded by Spiegel and carried by a 5-0 vote. XII. OLD BUSINESS A. REQUEST FOR AUTHORIZATION TO DELAY INSTALLATION OF PARKING RESTRICTIONS ON THE NORTH SIDE OF COUNTRY CLUB DRIVE IN THE AREA OF MANOR CARE UNTIL COMPLETION OF ADDITIONAL PARKING CONSTRUCTION. Mr. Greenwood said he was responding to City Council's request for an update on the parking situation at Manor Care. He took the opportunity to drive by the site and observe the situation. He said Manor Care was pursuing construction of additional parking spaces on their site; therefore, staff recommended providing them time to complete construction before restricting parking out on the street. Recommendation was to proceed with the installation of bicycle and golf cart lane at the end of August 2006, with the accompanying parking restriction. 18 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 22, 2006 Upon question by Councilman Spiegel, Mr. Greenwood stated that Manor Care lost additional parking due to their current construction, which would only add 15-20 spaces, and noted parking would still be very tight once completed. Councilman Spiegel commented the City would then ask the Police Department to start handing out tickets to vehicles parked out in the street. Councilman Crites noted that parking would still be in a net deficit. He believed this was the time to ask how they were planning to deal with the lack of parking spaces that would not constitute a public safety issue for access to Police and Fire Departments, in addition to their current problem. Mr. Greenwood said staff had been working with Manor Care for over a year and would contact them again to inform them of what the City was planning, requiring them to take care of their parking issue. In response to Councilmember Benson's question and request, Mr. Greenwood said there was no schedule of completion for their construction, but it was his fair estimate that it could be completed by the end of August. He agreed to notify Manor Care of the August 2006 deadline date. Councilman Crites moved to, by Minute Motion, authorize staff to delay installation of parking restrictions on the north side of Country Club Drive in the area near Manor Care, pending completion of parking construction, but no later than to the end of August 2006. Motion was seconded by Kelly and carried by a 5-0 vote. With Council concurrence, the remainder of the Agenda was suspended at this point in order to consider Item I. Please see that portion of the Minutes for Council discussion and action. B. REQUEST FOR APPROVAL OF REINSTATEMENT OF THE CITY OF PALM DESERT'S MEMBERSHIP IN THE PALM SPRINGS DESERT RESORTS CONVENTION & VISITORS AUTHORITY (CVA) BY RESCINDING ITS LETTER OF WITHDRAWAL. Mr. Ortega noted the staff report and recommendation and stated the City would withdraw notice for the following year in accordance with the bylaws. Councilman Spiegel shared that he recently talked to the General Manager of the Marriott and learned that two major groups were coming there this summer, with more than 600 room nights in one group and more in the other group. The CVA had been working with the hotel to bring additional bed 19 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 22, 2006 nights and additional revenue to the City. In reference to his upcoming meeting, he said the current name used by the CVA is "Palm Springs Desert Resorts Convention&Visitors Authority," and they are considering changing it to "The Desert Resorts of the Palm Springs Area." The TAC Committee met and approved the new name, HBIC did not, but it would be coming back to the Board at the next meeting, which has the final authority. He requested the Council's support before his next meeting in order to submit his vote for the new name of"The Desert Resorts of the Palm Springs Area." Mayor Ferguson concurred with Councilman Spiegel's recommendation. He felt that people should know that the Palm Springs area was more than just one city; promoting the other cities, La Quinta, Indian Wells, Indio, Palm Desert, and Rancho Mirage as the Desert Resorts certainly wouldn't hurt. Speaking on the main thrust of what was being considered with giving Mr. Beckelman time to "right the ship," see what the numbers were, and make a qualified decision when sufficient data was received. He felt the Council had not arrived at that point yet and was in favor of rescinding the withdrawal for now. Mayor Pro Tem Kelly said he still had his reservations but would give lukewarm approval for his colleague to have authority at the upcoming board meeting. Councilman Crites believed a much better CVA exists today than a year ago. While the personnel was remarkably different, he had not seen much other different evidence yet; the hotel advisory committee had not moved forward with anything more than what they were doing in the past. He continued to think that the CVA suffered enormously from the issues of focusing on one community and one convention center. He also felt the website issue was not being addressed, and there was reluctance to do so. However, he acknowledged the efforts to date. Mayor Ferguson moved to, by Minute Motion: 1) Rescind the City of Palm Desert's November 3, 2005, letter of withdrawal from membership in the Palm Springs Desert Resorts Convention &Visitors Authority (CVA); 2) direct staff to provide an update on the City's membership at mid-year budget review in January 2007; 3) authorized Councilman Spiegel to support the name change proposal of "Desert Resorts of the Palm Springs Area" when it is brought before the CVA Board. Motion was seconded by Spiegel and carried by a 5-0 vote. C. REQUEST FOR APPROVAL OF CHANGE ORDER NO. 4 TO CONTRACT NO. C22870B — CONSTRUCTION OF THE PORTOLA AVENUE BRIDGE OVER THE WHITEWATER CHANNEL (PROJECT NO. 647-04). 20 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 22, 2006 Councilman Crites moved to, by Minute Motion: 1)Approve Change Order No. 4 in the amount of$61,172 to the subject contract with Granite Construction Company, Indio, California, for additional traffic signal, electrical, and striping work required for the project, and authorize the Mayor to execute same; 2) authorize the transfer of $61,172 from contingency to base for the Change Order. Motion was seconded by Spiegel and carried by a 5-0 vote. D. REQUEST FOR APPROVAL OF CONTRACT AMENDMENT NO. 2 TO CONTRACT NO. C22310 — ENGINEERING SERVICES FOR INTERSECTION IMPROVEMENTS AT THE MONTEREY AVENUE INTERCHANGE WITH INTERSTATE 10 (PROJECT NO. 669-02). Councilman Spiegel moved to, by Minute Motion, approve Amendment No. 2 in the amount of$135,990 to the subject contract with RBF Consulting, Inc., Ontario, California, for additional engineering services to complete Project Approval Reports and Environmental Documentation for the Ramp Modifications at the Monterey Avenue Interchange on Interstate 10 — funds are available in the Project Account, No. 213-4389-433-4001. Motion was seconded by Kelly and carried by a 5-0 vote. E. REQUEST FOR APPROVAL OF THE FIRST AMENDMENT TO THE AGREEMENT WITH ESGIL CORPORATION FOR CONTRACT PLAN REVIEW SERVICES (CONTRACT NO. C24211). Councilman Crites moved to, by Minute Motion, approve the First Amendment to Agreement for Contract Plan Review Services with Esgil Corporation, San Diego, California, extending the term of services for one year— July 1, 2006, to June 30, 2007 — funds are available in Account No. 110-4420-422-3010. Motion was seconded by Spiegel and carried by a 5-0 vote. F. REQUEST FOR APPROVAL OF THE FIRST AMENDMENT TO THE AGREEMENT WITH CALIFORNIA CODE CHECK FOR CONTRACT PLAN REVIEW SERVICES (CONTRACT NO. C24221). Councilman Crites moved to, by Minute Motion, approve the First Amendment to Agreement for Contract Plan Review Services with California Code Check, Newbury Park, California, extending the term of services for one year— July 1, 2006, to June 30, 2007 — funds are available in Account No. 110-4420-422-3010. Motion was seconded by Spiegel and carried by a 5-0 vote. G. REPORT ON TEMPORARY TRAFFIC SIGNAL PREEMPTION SYSTEM FOR LAS PALMAS COUNTRY CLUB EMERGENCY GATE ON MONTEREY AVENUE. 21 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 22, 2006 Mr. Greenwood stated numerous meetings had taken place with Council, City staff, and staff from the City of Rancho Mirage. The Council further directed staff at the April 27 meeting to work with the City of Rancho Mirage to hire a common consultant to study the issues on Monterey Avenue. The proposed consultant happened to be the traffic consultant that worked on the General Plan for both cities. Therefore, he separated the idea of the Emergency Pre-Emption System and hired a third-party engineer to render an independent position. The engineer had worked with both cities in various contract aspects, and City staff felt he would render an honest opinion that had nothing to do with the desires of either city. Mr. Lalani accomplished that and recommended the City of Palm Desert proceed with the pre-emption system on a temporary basis.Although the recommendation conflicted with his own, Mr. Greewood believed the engineer took an independent look, and he valued his opinion highly. Upon question by Councilman Spiegel, Mr. Greenwood responded the City of Palm Desert would have a great deal of control over the signal maintenance of that intersection. The City would perform the maintenance and timing, plus the activation would be automatic; a switch is activated when the gate is unlocked and opened. Upon further question, Mr. Greenwood said residents of the gated community would have access for emergency purposes only, and it would require a security guard to unlock the gate. Residents' access across the wash would need to be blocked by water for it to be considered an emergency. He noted the signal control could be programmed to notify the City of its activation. Mayor Pro Tem Kelly asked when the light would turn red and how frequently that would happen. Mr. Greenwood said the light would turn red for southbound Monterey Avenue only when the gate opened for a vehicle to exit from the Las Palmas Emergency Gate. Upon further question, Mr. Greenwood stated it was common to have a green light for one direction and the opposing direction be red, it happened fairly frequently with Emergency Vehicle Pre-Emption. Mayor Ferguson stated he admired Mr. Greenwood for putting his own reservations aside and asked if he would be amenable to having the City Manager or Risk Manager have the final say when the signal was activated. Mr. Greenwood said he would be fine with that decision. Mayor Ferguson commented that the staff from Rancho Mirage said the City of Palm Desert could have control of the signal, they just wanted the availability; however, he felt there was no urgency or danger of having a flood anytime soon. 22 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 22, 2006 Mr. Greenwood said the City's cooperation was based on the fact that it would be used in a very limited manner, and when the improvements were completed on Monterey, this program would go away. Mayor Ferguson asked if in return, the City would have their cooperation on the overall Master Plan for the widening of Monterey. 23 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 22, 2006 Mr. Greenwood said the City had cooperation and support from Rancho Mlrage's staff, as they recognized it was good for the communities, but he wasn't sure the City had the support from Las Palmas Country Club or the City Council of Rancho Mirage. Councilman Spiegel asked if the City could require their support. Mr. Greenwood said that on a previous occasion, he had tied his begrudging acceptance to an informal agreement from the Country Club when the City wanted their support for the widening of Monterey. Mr. Ortega commented that the signal pre-emption system was not a bad idea, but staff was concerned about moving forward without a commitment from the City of Rancho Mirage on the widening of Monterey. At the last meeting, it was decided that an engineer would be hired jointly to look at the widening; unfortunately, Rancho Mirage was asking the City to agree to this project ahead of the joint engineer's analysis. He felt it would be best if the City used this fact for further negotiation. Mr. Greenwood clarified he met with the traffic consultant that both cities agreed to use for the global study of traffic, but there was no contract or agreement, only in concept. He suggested agreeing in concept for this item subject to finalization of the contract to proceed with the traffic study. Mayor Ferguson stated if their agreement would rise to the same level of objectivity that Mr. Greenwood had, it could have provided some comfort; without it, he was reluctant to turn over a signal on one side of the road to their discretion. Councilman Crites moved to, by Minute Motion, postpone to a date uncertain a request to install a traffic signal preemption system for the Las Palmas Country Club emergency gate on Monterey Avenue, and direct staff to include this system as part of a comprehensive study of all the traffic issues on this portion of Monterey Avenue. Motion was seconded by Kelly and carried by a 5-0 vote. H. UPDATE ON THE HIGHWAY 111 AND HIGHWAY 74 RELINQUISHMENT PROJECT. Mr. Greenwood stated that after a great deal of discussion with staff from Caltrans, the City received a draft cooperative agreement for the City's taking overjurisdiction of Highway 111. He noted their streamlined process could include a stipend of up to $750,000, but the draft was offering a stipend of$450,000, pending approval by headquarters in Sacramento. He said the City of Indian Wells was offered $550,000, but their portion of Highway 111 is slightly longer. He felt the drafts were similar and figures 24 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 22, 2006 were comparable, but staff became aware of a project in Orange County for Highway 91 in Redondo Beach; they were awarded a stipend of $7 million for 2.5 miles of highway. However, that project started in 1988 and took almost 20 years to accomplish. At this point, the offer was just a draft, but he wanted the City Council to have the full picture of the possibilities. Councilman Spiegel felt the staff report was well done and agreed that Mr. Greeenwood should negotiate an increase. Councilman Spiegel moved to, by Minute Motion, direct staff to seek the maximum reimbursement possible for the Highway 111 and Highway 74 relinquishment by Caltrans. Mr. Greenwood said he was seeking Council's direction whether to negotiate for the upper limit or for what the neighboring city was receiving. Mayor Ferguson directed Mr. Greenwood to negotiate for the best deal he could get. Mr. Greenwood noted that it would clearly take more time. Motion was seconded by Kelly and carried by a 5-0 vote. I. REPORT AND REVIEW REGARDING ALTERNATIVE PAYMENT PROGRAMS RELATIVE TO THE PALM DESERT HIGHLANDS UTILITY UNDERGROUNDING ASSESSMENT DISTRICT NO. 04-01 AND REQUEST FOR CITY COUNCIL DIRECTION. Councilman Spiegel noted he would be ABSTAINING on this item because he lived in the surrounding area of the Assessment District. MS. BETTY DRUMMOND, Bel Air Road, stated she checked the returned ballots and found only 49 people approved out of 164 total, for a district of 124 single-family homes and 40 condominiums. She said the very fact that only 49 out of 164 people voted was terrible, and awarding a higher assessment valuation to the more expensive properties was not a democratic way of doing things. She said she wasn't aware of the consequences involved and now had a $26,000 assessment against her taxes. She said her home of 15 years was paid free and clear, and she always paid her taxes on time. A $26,000 assessment against her taxes at 5.5 % interest for 30 years would add an additional $2,000 to her current $4,000/year tax bill. She shared that she had gone to the Riverside County Recorder's office and found a plot map showing the Edison Easements on her property. Property numbers 51 and 53 stated the utility companies using those easements would be subject to the construction and maintenance of the utility. She offered to share the document with the City Council. She had 25 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 22, 2006 26 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 22, 2006 always wondered about that, because several years ago the trees were growing up to the telephone wires, and she was told it was not their responsibility, but hers; she has paid between $2,000 - $3,000 to have the trees trimmed. The aforementioned document outlines the same area where the undergrounding project would take place, and she felt it spelled out clearly that the utility companies would be responsible for the maintenance and the construction of those easements. She believed that the electric, telephone, and cable companies should finance the entire cost of the undergrounding. Mayor Ferguson thanked Ms. Drummond for her patience and noted that staff had additional information regarding her concerns. In response to Ms. Drummond's offer of a copy of the plot diagram, he said he would appreciate a copy and would research it. In further response to Ms. Drummond's comments, Mr. Ortega stated that based upon what Council approved, the project would be completed. However, City Council asked staff to research alternative financing other than issuing bonds, particularly for those persons who could not afford the assessment. Mayor Ferguson explained that the City only formed assessment districts when residents made that request of the City. He said the City was approached by residents in her neighborhood, requesting to underground their utilities. A survey was conducted, and an overwhelming majority of the residents indicated they wanted the utilities underground. He noted that the City didn't make any money on this assessment. Councilman Crites reiterated the Highlands Undergrounding election took place and some people chose to vote and others chose not to; the ballots were counted, and the Council then moved forward with the given results. He said the Council would attempt to honorwhat the majority of the residents tell the City they want; many people do not exercise their right to vote, which was also within their right. In response to Ms. Drummond's additional comments and remarks regarding the election, Mayor Ferguson stated he agreed, in that only 50 million people voted for the President out of 275 million but everyone was to work with that democratic process. He reiterated that the City Manager was directed to come back with a program that would alleviate some of the financial burden, because the City Council recognized the harshness of the outcome. 27 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 22, 2006 MS. BETSY BOWERS, Skyward Way, agreed with Ms. Drummond's comments about not having a full representation of the community voting. She said one of her neighbors did not receive a ballot in the mail and requested for one to be mailed. She did receive one after the fact, so she never actually had the opportunity to vote. She wondered if there were others that were not fully represented. She also wanted to know if there would be a third option, because the letter she recently received had a deadline date of July 10. She asked if additional documentation was going to be mailed out to the residents delaying the deadline. Mayor Ferguson said she would be given plenty of time to consider the variety of options the City would offer to its residents. He noted that there was no specific City Council action required for this item at this meeting. Mr. Ortega reported staff would bring back a program for a due-on-sale provision for those property owners who do not wish to pay on the assessment until the property is sold. XIII. PUBLIC HEARINGS A. CONSIDERATION OF THE ADOPTION OF THE CITY MANAGER'S AND EXECUTIVE DIRECTOR'S PROPOSED FINANCIAL PLAN FOR FISCAL YEAR 2006/07 (JOINT CONSIDERATION WITH THE PALM DESERT REDEVELOPMENT AGENCY AND THE PALM DESERT HOUSING AUTHORITY). Mayor/Chairman Ferguson requested an addendum to the proposed Financial Plan, in order to add $100,000 to the Parks & Recreation Fund to fund the planning and design of Freedom Trail bicycle and golf cart path. Councilman/Member Spiegel moved to add said addendum to the Financial Plan for Fiscal Year 2006/07. Motion was seconded by Crites and carried by a 5-0 vote. Councilman/Member Crites noted for the benefit of the audience that a whole day was spent reviewing the financial plan prior to voting this evening. He also thanked Mr. Gibson and staff for a remarkable job of putting together a budget that would continue to provide a great amount of work and services with the level of personnel the City funded. He felt it was a very ambitious program. Mayor Pro Tem Kelly/Vice Chairman Kelly agreed and reiterated the budget was not approved in five minutes but that a full day was spent reviewing it. 28 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 22, 2006 Councilman/Member Spiegel shared this was by far the largest budget the City's ever had, and based on anticipated revenue from T.O.T, sales tax, and hotel occupancy tax, the largest increase in dollars would be going to the Police Department for additional coverage in the City. Mayor/Chairman Ferguson declared the public hearing to be o�en and invited testimony SUPPORTING or OPPOSING this matter. With no testimony offered, he declared the public hearing to be closed. Councilmember/Member Benson moved to waive further reading and adopt: 1) City Council Resolution No. 06-86A, adopting a City Program and Financial Plan for the Fiscal Year beginning July 1, 2006, and ending June 30, 2007; 2) City Council Resolution No. 06-87A, establishing the Appropriations Limit for FY 2006/07; 3) Redevelopment Agency Resolution No. 531, adopting a Redevelopment Agency Program and Financial Plan for the Fiscal Year beginning July 1, 2006, and ending June 30, 2007; 4) Housing Authority Resolution No. HA-31, adopting a Housing Authority Program and Financial Plan for the Fiscal Year beginning July 1, 2006, and ending June 30, 2007; 5) City Council Resolution No. 06-88, setting the Salary Schedule, Salary Ranges, and Allocated Classifications for FY 2006/07, plus the addition of$100,000 to Fund 233, Park& Recreation, for FY 2006/07 in order to fund planning and design of the Freedom Trail Bicycle and Golf Cart Path; 6) by Minute Motion, approve the Out-of-State Travel for FY 2006/07 as listed in the staff report's memorandum entitled same. Motion was seconded by Crites and carried by a 5-0 vote. B. CONSIDERATION OF THE CONSOLIDATED PALM DESERT LANDSCAPING AND LIGHTING DISTRICT FOR FISCAL YEAR 2006/07. Mayor Ferguson declared the public hearing o�en and invited testimony in FAVOR of or in OPPOSITION to this request. With no testimony offered, Mayor Ferguson declared the public hearing closed. Councilman Crites moved to waive further reading and adopt: 1) Resolution No. 06- 104, amending or approving the Final Engineer's Report for the Consolidated Palm Desert Landscaping and Lighting District for FY 2006/07; 2) Resolution No. 06-105, ordering the levy and collection of assessments within said District for FY 2006/07. Motion was seconded by Kelly and carried by a 5-0 vote. 29 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 22, 2006 C. CONSIDERATION OF THE APPROVAL OFA PRECISE PLAN OF DESIGN, INCLUDING A HEIGHT EXCEPTION, AND TENTATIVE TRACT MAP TO ALLOW THE CONSTRUCTION OF 198 RESIDENTIAL CONDOMINIUM UNITS, PRIVATE RECREATION FACILITIES,AND PUBLIC PARKSITE ON 26.83 ACRES SOUTH OF GERALD FORD DRIVE WEST OF COOK STREET, MORE PARTICULARLY DESCRIBED AS LOTS 10 AND 14 OF PARCEL MAP 31730; FOR CEQA PURPOSES, THE PROJECT WAS PREVIOUSLYASSESSED AND A NEGATIVE DECLARATION APPROVED IN CONNECTION WITH APPROVAL OF PM 31730 AND UNIVERSITY PARK MASTER PLAN (74-815 COLLEGE DRIVE) Case Nos. PP 06-05 and TT 34626 (John Laing Homes d.b.a. W.L. Homes, LLC, Applicant). Planning Manager, Steve Smith reviewed the staff report and noted the project was approved by both the Architectural and Planning Review Commissions. He offered to answer any questions. Upon question by Councilman Spiegel, Mr. Smith deferred the selling price of the condominiums to the applicant. In response to Councilman Crites' question, Mr. Smith said there were no outstanding issues that need to be addressed and felt the project stood on its own with all the required conservation solar measures built into it. In regards to landscaping, the park at the right end of the site plan was provided by the assessment district and, once completed, would be conveyed to the City. He confirmed that the traffic circulation was consistent with the Master Plan and that Mr. Greenwood approved the project. Upon question by Councilman Spiegel, Mr. Smith responded the project would have a homeowner's association. In response to Mayor Ferguson's question regarding density, Mr. Smith replied the density was approximately 9 units per acre, 7.8 over the gross, and well within the medium density zone. Mayor Pro Tem Kelly questioned why the seven performance criteria weren't mentioned in the staff report. Mr. Smith explained the seven criteria only applied to the high density bonus, which was above10, and this project was 9. Mayor Pro Tem Kelly went on to say the criteria was set at five units per acre, and he wished to leave it the same. He expressed his concern and felt that anything more than five units per acre should require justification. Mayor Ferguson declared the public hearing o�en and invited testimony in FAVOR of or in opposition to this request. 30 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 22, 2006 MS. LINDA VALIA with John Laing Homes stated this was their first project out in the Desert and they were very excited. She said it had been a pleasure working with City staff and that they had concurred with all conditions of the project. She offered to answer questions. Councilman Spiegel asked about the selling price for the condominiums. Ms. Valia stated the present selling price would be $450,000 - $650,000. With no further testimony offered, Mayor Ferguson declared the public hearing closed. Mayor Pro Tem Kelly said the project was a cookie-cutter deal and found nothing exciting about the plan. He liked the idea of ownership but felt the density for the project was not justified. Councilman Spiegel remarked he would like to see the developer work with the Park and Recreation Commission for placing tot lots or a basketball court and whatever else needed to be applied and felt there was plenty of time to do so. Councilmember Benson expressed concern about the project. Councilman Spiegel moved to waive further reading and adopt Resolution No. 06- 106, approving Case Nos. PP 06-05 and TT 34626, including height exception, subject to conditions, commonality, and recommendation from the Public Works, Landscape Committee, Planning Commission,Architectural Review, and the Parks& Recreation staff. Motion was seconded by Crites and FAILED on a 2-3 vote, with Benson, Kelly, and Ferguson voting NO. Mayor Ferguson moved to continue the matter to address Councilman Spiegel's concerns, as well as the rest of the Council's, to the first meeting in July. Mayor Ferguson acknowledged the developerwas in a medium density zone and not required to do the bonus, but he was troubled about putting a housing project across from the college campus that students would not be able to afford. He preferred to think about it a while longer. In the meantime, the developer could work with Park& Recreation to see what could be done with the park and find a different way to accomplish this. Mayor Pro Tem Kelly wondered if the developer understood what the Mayor was proposing. MS. VALIA explained the park was already approved in the University Park Master Plan and already included a basketball court and tot lot. 31 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 22, 2006 Mr. Drell interjected and confirmed the park was approved as part of the assessment district and was currently going through the final landscaping plans. He said it was resolved by the Parks & Recreation Commission six months ago. Mayor Ferguson stated the Council probably just needed more time to embrace the project. Mayor Pro Tem Kelly stated the offer to continue was a good idea for the applicant. It would provide additional time for the Council to deal with some of their concerns about the project rather than having it turned down. Motion was seconded by Councilman Spiegel and carried by a 4-1 vote, with Councilmember Benson voting NO. D. CONSIDERATION OF THE APPROVAL OF A CHANGE OF ZONE, PRECISE PLAN OF DESIGN, INCLUDING A HEIGHT AND PARKING EXCEPTION, AND A NEGATIVE DECLARATION OF ENVIRONMENTAL IMPACT TO ALLOW CONSTRUCTION OF 260 APARTMENTS AND A 38,000 SQUARE FOOT NEIGHBORHOOD COMMERCIAL CENTER ON 19.6 (+/-) ACRES NORTH OF FRANK SINATRA DRIVE BETWEEN COOK STREET AND COLLEGE DRIVE (37-755 COOK STREET) Case Nos. C/Z 06-02 and PP 06-01 (Sinatra and Cook Project, LLC, Applicant). Mr. Smith reviewed the staff report, displayed the project, and reviewed it in detail. He felt the project was appropriate for the location; the site was across the street within walking distance of the university campus. He said 80 % of the residential units would be for purchase. The project was within close proximity to public transit, schools, parks, and commercial services. The community services were adjacent to the proposed commercial development, and north of that was the Evans Commercial Development. In response to Councilmember Benson's statement, Mr. Smith clarified the park was part of the assessment district and would be a public park to that whole area. Councilman Crites added that early on in the planning, small public parks were scattered throughout and would need to be dedicated and given to the City once they were built. Responding to Councilmember Benson's further comment, Councilman Crites stated the park was built at the end of the development and would be public like the rest of the City's parks. Mr. Smith continued outlining the project as indicated in his staff report. He noted earlier in the week an objection letter by the ApplicanYs was received 32 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 22, 2006 by the City Council, but a retraction letter has since been received. In addition, the project was conditioned to enter into a housing agreement with the Housing Authority, and he noted Ms. Janet Moore was available to answer questions in that area. In conclusion, the mixed use project complied with the General Plan Land Use Designation for the area. Considering the scarcity of apartment units, he felt it was good to have rental units close to the University campus. At the north end of the site the applicant proposed an architecturally attractive commercial center, which would be adjacent to the Evans Center to the north, and he felt the two should compliment each other. Staff recommended approval of the proposed change of zone and the precise plan of design with the exceptions noted and subject to conditions. He offered to answer questions. He noted the artist for the public arts portion of the project was present and available to answer questions. Mayor Ferguson declared the public hearing o�en and invited testimony in FAVOR of or in OPPOSITION to this request. MR. RYAN OGULNICK, applicant, stated he was also present to answer any questions. In answer to Councilman Spiegel's question, Mr. Ogulnick said a large gym was interested, as was a deli that already had a branch on Highway 111, dry cleaner, small eateries, a pizza place, and a sandwich shop. MS. LOTTI SHARON (sp?), Malibu, California, artist for the project, stated the overall concept in mind for the project was to work with the history and environment of the area. She planned to pull out images of plant, animal, and historical references. She said it was not about creating something in a studio and putting it down somewhere in the middle of a project, but a process of discovery. Pedestrians who were part of this community would walk into the development and find various aspects of historical significance. The idea was to learn more about the site historically and environmentally and enhance it to create something beautiful and educational. She recognized the concept was difficult to explain and understand, because it was all evolving. She expressed her excitement about the process and the project. Councilman Crites asked if she was working with the Historical Society. Ms. Sharon stated she was not but would work with them. She said she was part of a group of citizens in Malibu that organized an arts foundation and was in the process of formulating a public arts ordinance. She shared that Mr. Richard Twedt and Ms. Deborah Schwartz were good people working for the City, and it would be a privilege to work with them again. 33 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 22, 2006 In response to Councilman Crites' question regarding the commercial building heights, Mr. Smith responded the building heights are within the adopted policy requirements. The C3 Zone allowed 35-foot height, and the apartments were between 24 and 28 feet with a couple of tower elements at 30 feet. Mayor Pro Tem Kelly stated he liked the fact there was a commercial element to support the rest of the project but had difficulty with the high density and small square footage of the apartments. He felt the City had plenty of rentals and didn't think this project fit into the idea or spirit he had in mind for that area. He would prefer to see ownership types of projects. Councilman Crites disagreed with Mayor Pro Tem Kelly. He thought it was wonderful that tiny apartments would be available in that area. He said many people need and can only afford a studio; many others could not and would not be able to afford a home. The previous project considered was priced at $500,000 for a small condominium. He stated the City Council needed to be in the business of making sure projects were well designed and compatible with what the City wanted. He acknowledged Mayor Pro Tem Kelly was not in favor of rentals, but thaYs what he found most appealing about the project; the City needed a mix of housing projects. Mayor Pro Tem Kelly stated he's never met a young ambitious person who was trying to obtain a good education and a job who would want to move into an apartment. He believed people worked toward owning their own home. He was a strong believer in affordable housing and felt the City provided a good mix to the residents. He went on to say he had witnessed the tremendous enthusiasm expressed by families when their Habitat for Humanity home was complete, which was something not seen when moving into an apartment. He realized that his colleagues differed in philosophies and had different feelings about the subject; but he felt that medium density in the North Sphere should have never been part of the General Plan and was going to stand by his belief. Councilman Crites thanked the artist and expressed his appreciation to having an art element that would be significantly different than just another piece of sculpture sitting on the corner. Secondly, he agreed with Mayor Pro Tem Kelly's comment that the Council reflected different points of views. He shared that his daughter, who was both educated and ambitious, was remarkably happy to find an affordable apartment in the community in which she lived. She would live in that community for a number of years until she figured out her longtime career path and saved the money to buy a home. He felt young people reflected the need to rent until they figured out where and what they were going to do with their life, and he respected that. 34 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 22, 2006 Councilman Spiegel stated he disagreed with Mayor Pro Tem Kelly and felt the City needed more apartments, because the existing apartments were filled. He said when the school was successful with enough students, the project would be a nice place to live. The renderings of the project were beautiful, and he felt that most apartments didn't look as nice as these. He hoped the developer and owner of the apartment would make sure the landscaping was of the quality shown on the brochure. He was not opposed to the project. Councilmember Benson stated she agreed with the concept of rental apartments close to the college and agreed they would be needed by the students but felt the need was not immediate, and she was against a project of that magnitude. Mayor Ferguson said his point of view was more aligned with Councilman Crites' comments, because when he was 30 years old, he decided to quit his job to go to law school and took a job making $8.00 an hour instead of $60,000 a year. He lived in a 450 square-foot apartment for four years, because that was all he could afford to live in. It got him through law school, he graduated, and was fortunate to find a job and live in Palm Desert. He said there are transitional times in every person's life where apartments are necessary, and having them close to the college was ideal. This project would have the retail and commercial elements, and he felt the project to the north would fuel a synergy that would hopefully attract students to go to Cal State. He agreed with Councilman Spiegel's comment that it was not a matter of if enrollment went up but when, and if students would be able to live in the community. He felt the same way about staff and employees who work for the City of Palm Desert but can't afford to live here. With respect to the density concerns, the low density group and high density group made a compromise to allow medium density with a seven-point bonus as part of the General Plan. He believed the applicant complied with all the requirements and hoped and trusted the architectural features would be as good as they looked in the brochure. He was generally supportive of the project and felt it was a good one for the City of Palm Desert. In response to Councilmember Benson's question, Mr. Smith replied that the 450 square-foot apartment would rent for $550 a month. Councilman Crites moved to waive further reading and: 1) Pass Ordinance No. 1122 to second reading, approving Case No. C/Z 06-02; 2) adopt Resolution No. 06-107, approving Case No. PP 06-01, subject to conditions. Motion was seconded by Spiegel and carried on a vote of 3-2, with Mayor Pro Tem Kelly and Councilmember Benson voting NO. 35 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 22, 2006 XIV. REPORTS AND REMARKS A. CITY MANAGER None B. CITY ATTORNEY None C. CITY CLERK None D. PUBLIC SAFETY o Fire Department Battalion Chief Holloway reported on the significant fire that occurred last Saturday evening at Woodhaven Country Club. He noted it resulted in the loss of three condominium units of a quadplex, with most of the fourth, including contents, saved; only two of the units were occupied at the time of the fire. The event also resulted in three injuries to firefighters, all relatively minor. It required a second alarm assignment from all neighboring areas due to its being well established by the time the Fire Department was notified, even with their arrival at the scene within six minutes of the call. Upon question, he said the initial unit on the scene was from the Bermuda Dunes Station, the second unit was from La Quinta, third from North Palm Desert, followed by Indian Wells. He was preparing a full written report on the incident that will be provided to the City within the week. o Police Department None E. MAYOR AND MEMBERS OF THE CITY COUNCIL o City Council Requests for Action: 1. CommunityGardens—CouncilmanCritessaidhewaspleased to be out in one of the City's Community Gardens with Mayor Pro Tem Kelly earlier today admiring his eggplants. While 36 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 22, 2006 there, it occurred to him that a maintenance agreement similar to what the City does with development projects should be initiated for Community Garden plots. He said this would ensure that when someone rented a plot, they would either agree to garden on it, or keep it tidy and from being overgrown with weeds. Mayor Pro Tem Kelly added that the current charge for a plot is a nominal $25. He suggested that when someone signed up for a plot, there be no charge as long as they agreed to either garden on it or keep it maintained. He said there seemed to be a particular concern with this issue currently, as about three or four of the plots are being maintained, the remainder are not. Councilman Spiegel noted that there were two more Community Gardens being planned in other areas of the City. He felt it would be important to review/update the criteria before the new ones were initiated, as he agreed it was important to maintain good Community Gardens. He suggested Mayor Pro Tem Kelly and Councilman Crites be asked to discuss this matter and return to the City Council with the criteria. With City Council concurrence, Councilman Crites and Mayor Pro Tem Kelly were appointed to develop a maintenance policy for the Community Gardens. o City Council Committee Reports: 1. Sister Cities Committee — Councilman Crites expressed sincere appreciation to both Assistant City Manager Sheila Gilligan and Assistant to the City Manager Steve Aryan for the incredible amount of work they had done with the Sister Cities Program and its evolution into a stand-alone community organization. He added that their efforts, cooperation, and good tolerance in this process were tremendous. 2. After School Proaram — Councilman Spiegel noted he was looking forward next week to receiving WalMart's $5,000 contribution to the City's After School Program. o City Council Comments: 37 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 22, 2006 1. Councilmember Benson commented she was pleased to attend a luncheon at the YMCA recently, which recognized Windemere Realty's choice of the Jean M. Benson Childcare Center as its community project with a $10,000 donation. She said they were also developing a reading program with the children there, along with other cooperative programs with the YMCA. Additionally, she reported that Desert Library Zone Manager Barbara Bowie had indicated that Starbucks Coffee has initiated a project for its employees to work with kids at the Library on a project toward the end of August this summer. She said the Starbucks Corporate Office had picked one of her favorite books for the project, The Little Enaine That Could, which has been recently updated, and the author will be providing autographed copies. 2. Mayor Pro Tem Kelly stated he was pleased to participate in the opening of Sam's Club this week. He said it looked like it was a great operation, customers were eager to shop there, which would make it extremely successful and an asset to the community. 3. Mayor Ferguson expressed his thanks to City staff, especially Mr. Gibson, for all their hard work and effort in another successful budget process, which typically results in revenues being greaterthan expenditures, providing the City opportunity to do a lot of things other cities aren't able to do. XV. ORAL COMMUNICATIONS - C None XVI. ADJOURNMENT With City Council concurrence, Mayor Ferguson adjourned the meeting at6:36 p.m. JIM FERGUSON, MAYOR ATTEST: 38 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 22, 2006 RACHELLE D. KLASSEN, CITY CLERK CITY OF PALM DESERT, CALIFORNIA 39