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HomeMy WebLinkAboutPRELIM ADJ - CC - 11/16/06 PRELIMINARY MINUTES - ADJOURNED REGULAR - PALM DESERT CITY COUNCIL MEETING THURSDAY, NOVEMBER 16, 2006 CNIC CENTER COUNCIL CHAMBER I. CALL TO ORDER - 3:00 P.M. Mayor Ferguson convened the meeting at 3:01 p.m. II. ROLL CALL Present: Councilmember Jean M. Benson 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 Justin McCarthy, ACM for Redevelopment 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 Mark Greenwood, Director of Public Works David Yrigoyen, Director of Redevelopment & Housing Frankie Riddle, Director of Special Programs Walt Holloway, Battalion Chief, Palm Desert Fire/Riverside Co. Fire Dept./CDF Frank Taylor, Asst. Chief, Palm Desert Police/Riverside Co. Sheriff's Dept. William L. Strausz, Redevelopment Agency Counsel Grace L. Mendoza, Deputy City Clerk III. ADJOURN TO CLOSED SESSION Request for Closed Session: PRELIMINARY MINUTES ADJOURNED REGULAR PALM DESERT CITY COUNCIL MEETING NOVEMBER 16, 2006 Conference with Real Property Negotiator pursuant to Government Code Section 54956.8: 1) Property: 73-300 Fred Waring Drive (Multi-Agency Library) Negotiating Parties: Agency: Carlos L. Ortega/City of Palm Desert/Palm Desert Redevelopment Agency Property Owner: Desert Community College District Under Negotiation: x Price x Terms of Payment Conference with Legal Counsel regarding significant exposure to litigation pursuant to Government Code Section 54956.9(b): Number of potential cases: 2 Upon a motion by Spiegel, second by Kelly, and 4-0 vote of the City Council, Mayor Ferguson adjourned the meeting to Closed Session at 3:02 p.m. He reconvened the meeting at 4:02 p.m. 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 October 26, 2006, and the Adjourned Regular Meeting of October 31, 2006. Rec: Approve as presented. Minutes of the October 26, 2006, Meeting continued to December 14, 2006. B. CLAIMS AND DEMANDS AGAINST THE CITY TREASURY-Warrant Nos. 67, 70, 71, 73, 77, 78, 82, and 86. Rec: Approve as presented. 2 PRELIMINARY MINUTES ADJOURNED REGULAR PALM DESERT CITY COUNCIL MEETING NOVEMBER 16, 2006 3 PRELIMINARY MINUTES ADJOURNED REGULAR PALM DESERT CITY COUNCIL MEETING NOVEMBER 16, 2006 C. CITY'S AND REDEVELOPMENT AGENCY'S PORTFOLIO MASTER SUMMARY for the Months Ending June 2006, July 2006, August 2006, and September 2006 (Joint Consideration with the Palm Desert Redevelopment Agency). Rec: Receive and file. D. REQUEST FOR APPROVAL of the City of Palm Desert "Statement of Investment Policy" (Joint Consideration with the Palm Desert Redevelopment Agency). Rec: By Minute Motion, approve the"Palm Desert Statement of Investment Policy", as amended. E. LETTER OF RESIGNATION from Jim West - Historic Preservation Committee. Rec: Receive with very sincere regret. F. APPLICATION FORALCOHOLIC BEVERAGE LICENSE by Bamboo House, for Bamboo House, 72-600 Dinah Shore Drive, Palm Desert. Rec: Receive and file. G. APPLICATION FOR ALCOHOLIC BEVERAGE LICENSE by David Anthony Avalos and Ramon Vega Jr., for Guillermos Napa Tapas, 73-900 EI Paseo 2, Palm Desert. Rec: Receive and file. Continued to the meeting of December 14, 2006. H. CITY COMMITTEE AND COMMISSION MEETING MINUTES. 1. Parks & Recreation Commission Meeting of September 19, 2006. 2. Sister Cities Committee Meeting of September 21, 2006. 3. Historic Preservation Committee Meeting of September 26, 2006. Rec: Receive and file. 4 PRELIMINARY MINUTES ADJOURNED REGULAR PALM DESERT CITY COUNCIL MEETING NOVEMBER 16, 2006 I. REQUEST FOR DECLARATION of Surplus Property and Authorization for Appropriate Disposal (damaged and broken equipment from Palm Desert Police Department). Rec: By Minute Motion, declare the items listed on the accompanying staff report's Exhibit "A" as surplus and authorize disposal as indicated. J. REQUEST FOR DECLARATION of Surplus Property and Authorization for Donation of Goods from the Public Works and Council Offices Conference Rooms. Rec: By Minute Motion, declare the items listed on the accompanying staff report as surplus property, and authorize staff to donate the items to The Institute for Sales and Service Excellence, An Initiative of College of the Desert Center for Training and Development. K. REQUEST FOR APPROVAL of Funding for the Development and Acquisition of New Orthophotography and Elevation/Contour Data. Rec: By Minute Motion: 1) Approve funding in an amount not to exceed $30,000 for the subject acquisition using contracts to be negotiated by the Santa Ana Watershed Project Authority (SAWPA) (Contract Nos. C25980); 2) appropriate 50% of said funds from Account No. 110-4300-413-3090, and 50% from Account N o. 110-4190-415-3090. L. REQUEST FOR RATIFICATION of the City Manager's Authorization for Architectural Services for the Design of the Parks Staff Work Area (Contract No. C25990). Rec: By Minute Motion, ratify the City Manager's approval of the subject contract with Prest Vuksic Architects, Palm Desert, California, in the amount of$20,280 and authorize the Mayor to execute same. Funds are available in Account No. 430-4340-433-4001. M. REQUEST FOR RATIFICATION of the City Manager's Approval for Architectural Services for the Design of Legends Field Honorary Columns (Contract No. C26000). Rec: By Minute Motion, ratify the City Manager's authorization of the subject contract with Prest Vuksic Architects, Palm Desert, California 5 PRELIMINARY MINUTES ADJOURNED REGULAR PALM DESERT CITY COUNCIL MEETING NOVEMBER 16, 2006 in the amount of $9,720 and authorize Mayor to execute same — funds are available in Account No. 430-4638-454-4001. N. REQUEST FOR AUTHORIZATION to Release Improvement Securities for Tract No. 33935 (Terracina) (Trans West Housing Inc., Applicant). Rec: By Minute Motion, authorize the City Clerk to release the subject improvement security for Tract No. 33935, Trans West Housing, Inc., La Quinta, California. O. RESOLUTION NO. 06-146 - A Resolution of the City Council of the City of Palm Desert, California, Setting Forth its Findings and Authorizing the Destruction of Paper Files from the Department of Building & Safety that Have Been Digitally Imaged (Years 1999, 2000, and 2001). Rec: Waive further reading and adopt. P. RESOLUTION NO. 06-147 - A Resolution of the City Council of the City of Palm Desert, California, Setting Forth its Findings and Authorizing the Destruction of Paper Files from the Department of Building & Safety that Have Been Digitally Imaged (August 2006) Rec: Waive further reading and adopt. Q. REQUEST FOR APPROVAL of the Appropriation of Funds for Reimbursement of Traffic Signal Improvements (GHA Paloma Group, LLC, Applicant). Rec: By Minute Motion, appropriate $45,300 from unobligated Traffic Signal Fees to Fund 234 for reimbursement to GHA Paloma Group, LLC, Cathedral City, California, for the traffic signal improvements at the intersection of Portola Avenue and Hovley Lane East. R. REQUEST FOR AWARD of Contract to Set the Survey Monuments for Nine Record Maps and Authorization to Transfer Monumentation Deposit Funds (Contract No. C26010). Rec: By Minute Motion, award subject contract to Psomas, Riverside, California, in the amount of$42,435, to set the survey monuments for nine recorded Tract and Parcel Maps and file the required documents with the City of Palm Desert and the County of Riverside, and authorize the Mayor to execute same; 2) authorize the transfer of 6 PRELIMINARY MINUTES ADJOURNED REGULAR PALM DESERT CITY COUNCIL MEETING NOVEMBER 16, 2006 funds from the trust deposits listed in the staff report, to the professional services account to provide funding for the contract in accordance with Section 66498 of the Subdivision Map Act and Municipal Code Section 26.28.130. S. REQUEST FOR APPROVAL of Out-of-State Travel for the Improving Public Works Construction Inspection Skills Seminar. Rec: By Minute Motion, approve the subject out-of-state travel for the Landscape Inspector to attend the Improving Public Works Construction Inspection Skills Seminar, schedule to be held in Las Vegas, Nevada, December 11-12, 2006 - funds are available in Account No. 110-4300-413-3120. Mr. Ortega requested Item G continued to the next meeting. Mrs. Klassen asked that Item A's Minutes of the October 26, 2006, City Council Meeting be continued to the next meeting. Upon motion by Spiegel, second by Kelly, and 4-0 vote of the City Council, the remainder of the Consent Calendar was approved as presented, including continuance of Item A and Item G to the meeting of December 14, 2006. VII. CONSENT ITEMS HELD OVER None VIII. RESOLUTIONS None IX. ORDINANCES For Introduction: None For Adoption: A. ORDINANCE NO. 1129 - AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA,AMENDING THE BOUNDARY FOR THE COLLECTION OF THE TRANSPORTATION UNIFORM MITIGATION FEE ADOPTED PURSUANT TO ORDINANCE NO. 573. 7 PRELIMINARY MINUTES ADJOURNED REGULAR PALM DESERT CITY COUNCIL MEETING NOVEMBER 16, 2006 Mayor Pro Tem Kelly moved to waive further reading and adopt Ordinance No. 1129. Motion was seconded by Spiegel and carried by a 4-0 vote. 8 PRELIMINARY MINUTES ADJOURNED REGULAR PALM DESERT CITY COUNCIL MEETING NOVEMBER 16, 2006 X. NEW BUSINESS A. REQUEST FOR APPROVAL OF A RESOLUTION DISSOLVING THE PALM DESERT SISTER CITIES COMMITTEE, APPROVAL OF ITS NON- PROFIT STATUS AND FOR A NON-PROFIT FUNDING AGREEMENT BETWEEN THE CITY OF PALM DESERT AND THE PALM DESERT SISTER CITIES FOUNDATION. Councilman Spiegel asked if the requested funds were included in the budget approved in July and also wondered if space was available at the Portola Community Center for the Sister Cities Foundation. Ms. Gilligan replied the funds were included in the budget and room at the Portola Community Center would be available as of December 1. In response to Mayor Pro Tem Kelly's question, Ms. Gilligan replied that Sister Cities would be a non-profit organization and will appoint their own board; the bylaws include membership requirements but did not require Palm Desert residency. Mayor Pro Tem Kelly commented that the Historical Society had active members from the City of Rancho Mirage. Ms. Gilligan agreed. She pointed out Cathedral City had members from Palm Desert's community, and The Sister Cities Foundation will expand their involvement Valley-wide because they could bring in that membership. Councilman Spiegel asked if the Sister Cities Foundation decided to take on another city if it would need to be approved by Palm Desert City Counci. Mr. Erwin replied that as a Sister City of the City of Palm Desert, consent from City Council would be required. Councilman Spiegel moved to waive further reading and adopt Resolution No. 06- 148, dissolving the Palm Desert Sister Cities Committee; 2) by Minute Motion, approve the Non-Profit Organization Funding Agreement between the City of Palm Desert and the Palm Desert Sister Cities Foundation in the amount of $96,707.02; 3) by Minute Motion, appropriate$96,707.02 forfunding assistance to the Palm Desert Sister Cities Foundation from Account No. 110-4416-414-3126. Motion was seconded by Kelly and carried by a 4-0 vote. 9 PRELIMINARY MINUTES ADJOURNED REGULAR PALM DESERT CITY COUNCIL MEETING NOVEMBER 16, 2006 Later in the meeting, Mark Talboys, Chairman of Sister Cities, addressed the Council to express appreciation to City Council Members and Committee for their support over the last six years. He also thanked Mr. Ortega, Ms. Gilligan, and City staff for their support and assistance with the transition to new status of non-profit. He said they will endeavor to make the City proud through programs that will enrich not only the citizens of Palm Desert but also the Sister Cities of Gisborne, New Zealand, and Ixtapa-Zihuatanejo, Mexico. B. CONSIDERATION OF THE INITIATION OF PROCEEDINGS FOR THE FORMATION OF THE CITY OF PALM DESERT BENEFIT ASSESSMENT DISTRICT NO. 1. Mr. Ortega stated that all of the proceedings involved the creation of the Assessment District for Section 29. He offered that staff and counsel were available to answer questions. Mr. Yrigoyen pointed out that with Item C, minor changes were made to the Engineer's Report and a Renewed Engineer's Report was filed with the City Clerk. He noted that MuniFinancial was available to answer any questions with regard to those minor changes. Councilman Spiegel moved to waive further reading and adopt: 1) Resolution No. 06-149, initiating proceedings for the formation of the City of Palm Desert Benefit Assessment District No. 1 and the Levy and Collection of Annual Assessments Related thereto commencing with Fiscal Year 2007/08 and accepting and approving Engineer's Report in connection therewith; 2) Resolution No. 06-150, declaring its intention to form the City of Palm Desert Benefit Assessment District No. 1, To Levy and Collect Annual Assessments within such district commencing in Fiscal Year 2007/08, to conduct a Property Owner Balloting on the matter of the Proposed Assessments Connected therewith and To Appoint a Time and Place for the Public Hearing on these matters. Motion was seconded by Kelly and carried by a 4-0 vote. 10 PRELIMINARY MINUTES ADJOURNED REGULAR PALM DESERT CITY COUNCIL MEETING NOVEMBER 16, 2006 C. REQUEST FOR APPROVAL OF ACTIONS RELATED TO THE FORMATION OF SECTION 29 ASSESSMENT DISTRICT NO. 2004-2. Please see related discussion included with Item B, above. Councilman Spiegel moved to waive further reading and adopt: 1) Resolution No. 06-151 declaring its intention to order acquisitions and improvements for the proposed Section 29 Assessment District No. 2004-2, pursuant to the Municipal Improvement Act of 1913 and in accordance with Article XIII D of the California Constitution and to comply with the requirements of Division 4 of the California Streets and Highways Code by proceeding under Part 7.5 thereof; 2) Resolution No. 06-152, accepting and approving an Engineer's Report in connection with the proposed Formation of the Section 29 Assessment District No. 2004-2, and appointing a time and place for hearing protests. Motion was seconded by Kelly and carried by a 4-0 vote. D. REQUEST FOR AUTHORIZATION TO INITIATE THE PROCESS OF DETACHING THE CITY OF PALM DESERT FROM THE COACHELLA VALLEY RECREATION AND PARK DISTRICT. Mr. Ortega noted he received two letters from Coachella Valley Recreation& Park District requesting a continuance. Councilman Spiegel stated the Parks & Recreation Commission voted unanimously to initiate proceedings for the detachment. MR. STAN FORD, General Manager of the Coachella Valley Recreation & Park District (CVRPD), stated he was present on behalf of the Board of Directors, unfortunately, scheduling conflicts and vacations precluded them from attending. He stated their Board hoped the City Council would want to form an informed decision on this matter before taking action. He also expressed concern that it appeared, based on the information provided to the District, that the back-up in the packet only included correspondence from City staff and none from the District. He said he submitted a large amount of information to the City Clerk but didn't believe it was included in Council's packet; he felt Council would want to consider both sides of the issue before taking any action. He pointed out the proposed action conflicted with the Municipal Service Review(MSR)prepared by LAFCO and that the staff report contained factual errors. He said he spoke with Mr. Ortega on a couple of occasions and it was agreed that although both agencies may not agree on recommendations and analysis, they did want true facts. He went on to say detachment action would trigger impacts that 11 PRELIMINARY MINUTES ADJOURNED REGULAR PALM DESERT CITY COUNCIL MEETING NOVEMBER 16, 2006 required CEQA review, and there was nothing in the report that addressed it. He felt there were assumption regarding revenues that were also inaccurate. It is their interpretation of the LAFCO policies and supported by LAFCO staff that agencies were encouraged to engage in meaningful discussions prior to any such actions. He said discussions had not taken place; however, a meeting was scheduled for Monday. He didn't think the City Council had the full picture and their Board was requesting delay of any action until the Council had an opportunity to review all their documents. Mayor Ferguson asked why the City Council did not have all the information since he and Mayor Pro Tem Kelly already met with Mr. Ford last April, Councilman Spiegel and Mayor Pro Tem Kelly met with two CVRPD board members during the summer, a full one-hour study session was conducted with the matter forwarded to the Parks & Recreation Commission, and staff is of the opinion that the City was under-served. He wondered why CVRPD thought the City did not have their full side of the story. MR. FORD replied the City may have all the information spread out over numerous meetings, conversations, and correspondence, but not all was contained in the packet. He said nothing new would be presented but wanted to make sure everything was included. Mr. Ortega clarified that Mr. Ford was referring to documents submitted just prior to the meeting. Mayor Ferguson remarked that the matter had been discussed for more than nine months and questioned why documents were just submitted. MR. FORD replied that he had tried to obtain background information from the Study Session, the Pro-forma Plan and the minutes from the Parks & Recreation Commission, but they would not be made available until approved by City Council. He requested a 60 day continuance due to the holidays, but if staff was available, it could be delayed for only 30 days. Mayor Ferguson asked if a continuance to the second meeting in January was sufficient time. Mr. Ford replied it was. Councilman Spiegel said it was his understanding the District looked at recreational services as a regionally from Coachella to Rancho Mirage, but the Palm Desert Parks & Recreation Commission focused locally on the 12 PRELIMINARY MINUTES ADJOURNED REGULAR PALM DESERT CITY COUNCIL MEETING NOVEMBER 16, 2006 residents of Palm Desert and if the City felt the District was taking care of their needs. He said if so, this discussion would not be taking place, and it would not be necessary for the City to take over. Unless the District showed the Parks & Recreation Commission otherwise between now and January, the Commission couldn't redirect. Councilman Spiegel moved to, by Minute Motion, continue the matter to the meeting of January 25, 2007. Motion was seconded by Kelly and carried by a 4-0 vote. E. CONSIDERATION TO ENTER INTO AN AGREEMENT WITH PALM SPRINGS LIFE FOR THE "DINE OUT PALM DESERT" PROMOTIONAL CAMPAIGN (CONTRACT NO. C26020). Mayor Pro Tem Kelly moved to, by Minute Motion, approve the subject agreement with Palm Springs Life, Palm Springs, California, in an amount not to exceed $46,000 for the Dine Out promotional campaign —funds are available in Account No. 110-4471-414- 3221. Councilman Spiegel commended Marketing Manager Kristy Kneiding for a job well done with the Art of Food &Wine event this past weekend. He said it was great. Motion was seconded by Kelly and carried by a 4-0 vote. F. REQUEST FOR AUTHORIZATION TO NEGOTIATE WITH FIRMS FOR THE CONSTRUCTION/FABRICATION WORKFORTHE WESTFIELD BUS BAY PROJECT (CONTRACT NO. C26030). Responding to Councilman Spiegel's question, Ms. Riddle confirmed funds were from the original monies set aside by Westfield and that once staff negotiated and hired a firm, the project would be brought back to City Council for review. Upon further question, Ms. Riddle replied that because of the direction the City was taking , designing the project in-house, necessary funds would be available. Councilman Spiegel moved to, by Minute Motion, authorize staff to negotiate with various firms to undertake the construction/fabrication work for the Westfield Bus Bay Project (e.g. street and sidewalk improvements, landscaping, and bus shelters). Motion was seconded by Kelly and carried by a 4-0 vote. Later in the evening, Mayor Ferguson thanked Ms. Norine Bowen, General Manager of Westfield, Palm Desert, for having early voting available at the 13 PRELIMINARY MINUTES ADJOURNED REGULAR PALM DESERT CITY COUNCIL MEETING NOVEMBER 16, 2006 mall. He said it made a big difference between the Primary and General Elections in terms of accessability for Palm Desert residents. G. REQUEST FOR APPROVAL OF CONTRACT FOR PAYMENT OF RELOCATION OF TRANSMISSION POLES AND ATTACHMENTS ON PORTOLA AVENUE NORTH OF GERALD FORD (CONTRACT NO. C26040). Councilman Spiegel asked if this project was part of an Assessment District and who would be paying for it. Mr. Gibson replied that the Section 29 District would be paying and the subject approval would get the work done ahead of time. Councilman Spiegel moved to, by Minute Motion: 1) Authorize appropriation for relocation of transmission poles and attachments in the amount of $457,024.55; 2) authorize staff to enter into the necessary contract with Southern California Edison for the relocation of transmission poles and attachments; 3) authorize staff to transfer funds from the General Fund to the Improvement Fund. Motion was seconded by Kelly and carried by a 4-0 vote. H. REQUEST FOR APPROVAL OF PURCHASE OF REMOUNT AND REFURBISH AMBULANCE 33 AT THE TOWN CENTER STATION. Councilmember Benson asked what a new ambulance would cost, if a refurbished one cost $63,000. Chief Holloway stated they ranged from$120,000 to$125,000. Upon further question, he responded the vehicles were recycled every four years, and the entire fleet had already been refurbished, with the exception of this one; it would be the first time. Councilmember Benson stated she rode on one recently, noticed they were in bad condition and mentioned it to the attendant. The attendant told her they were heavily used. She thought a newer model would be better then having it refurbished. Chief Holloway explained the ambulance is sent to Texas and the transport box (rear portion of the unit) is physically removed from the chassis. The chassis is then replaced with a new one with an air bag system and the box completely refurbished, which was the greatest part of the cost. 14 PRELIMINARY MINUTES ADJOURNED REGULAR PALM DESERT CITY COUNCIL MEETING NOVEMBER 16, 2006 Mayor Pro Tem Kelly moved to, by Minute Motion, approve the subject purchase from Frazer LTD, in an amount not to exceed $63,852.65 as outlined in the Riverside County Fire Department's master equipment replacement schedule. Funds are available in Account No. 530-4195-415-4030. Motion was seconded by Benson and carried by a 4-0 vote. I. CONSIDERATION OF APPROVAL OF DESIGN PROPOSAL "SPECIAL DELIVERY" FOR THE SIERRA LANDSCAPE COMPANY. Councilman Spiegel asked if the sculpture would be on Dinah Shore Drive. Public Arts Coordinator Deborah Schwartz replied that it would actually be located on Spyder Circle. Councilman Spiegel moved to, by Minute Motion: 1) Approve the design "Special Delivery" for Sierra Landscape Company, 73-771 Dinah Shore Drive, Palm Desert, California; 2) appropriate $6,000 for future reimbursement, as part of the Art in Public Places componentforthis project-funds are available in Account No. 436-0000-312-2700. Motion was seconded by Kelly and carried by a 4-0 vote. J. CONSIDERATION OF APPROVAL TO INCREASE THE HONORARIUM FOR THE EL PASEO INVITATIONAL EXHIBITION. Responding to Councilman Spiegel's question, Ms. Schwartz replied the artist paid for shipping the art piece in and out of Palm Desert. She said that it cost one artist $2,000 just to deliver their work. Councilman Spiegel moved to, by Minute Motion, authorize an increase of the honorarium for the 2007/08 EI Paseo Invitational Exhibition of$1,000 per sculpture from the current amount of $1,500 per sculpture, for a total increase of $18,000. Funds are available in the Art in Public Places Budget, Account No. 436-4650-454-4002. Motion was seconded by Kelly and carried by a 4-0 vote. K CONSIDERATION OF COMMISSIONING MARLO BARTELS' DESIGN FOR THE SPANISH WALK DEVELOPMENT AT GERALD FORD DRIVE AND FRANK SINATRA DRIVE (Taylor Woodrow Homes, Applicant). In response to Councilman Spiegel's question, Ms. Schwartz replied there were eight 10-foot benches that would connect and create seating atmosphere at the site. Upon further question, it was her understanding the landscaping would be done in a way that would make them visible. 15 PRELIMINARY MINUTES ADJOURNED REGULAR PALM DESERT CITY COUNCIL MEETING NOVEMBER 16, 2006 Mayor Ferguson asked if they were similar to the one's at their grand opening with the same tile. Ms. Schwartz said they were, pointing out that a sample of an expanded rendering was included in the packet. Mayor Ferguson moved to, by Minute Motion: 1) Approve Marlo Bartels' design as the public art component for the Spanish Walk development at the northeast corner of Gerald Ford and Frank Sinatra Drives; 2) appropriate $235,900 for future reimbursement of the Art in Public Places fee for this project - funds are available in Account No. 436- 0000-312-2700. Motion was seconded by Kelly and carried by a 4-0 vote. L. CONSIDERATION OF COMMISSIONING WILLIAM WARE'S DESIGN "NEW BEGINNINGS" FOR THE BRAVA DEVELOPMENT (Brava Development Group LLC, Applicant). Mayor Ferguson stated that due to his representation of the seller of properties to Brava Development, he would not be participating in this item and recused himself from the Chamber. Councilman Spiegel inquired about the height of the art piece. MR. WILLIAM WARE, the artist, replied the pedestal was 2 '/ feet tall with a smaller pedestal on top made of stone, and everything above was made of bronze. The art piece itself was five feet for a total of eight to nine feet for the whole sculpture. Councilman Spiegel expressed concern that rose portion of the art piece would be subject to damage if children played on it; Mr. Ware agreed it was a problem and had already planned on making part of the rose stainless steel. Councilman Spiegel moved to, by Minute Motion: 1) Approve William Ware's design as the public art component for the Brava Development Group LLC project at 10- 500via Fortuna, Palm Desert, California; 2)appropriate$45,OOOforfuture reimbursement, as part of the Art in Public Places fee component for this project - funds are available in Account No. 436-0000-312-2700. Motion was seconded by Benson and carried by a 3-0 vote, with Mayor Ferguson ABSENT. 16 PRELIMINARY MINUTES ADJOURNED REGULAR PALM DESERT CITY COUNCIL MEETING NOVEMBER 16, 2006 M. REQUEST FOR APPROVAL OF FUNDING AN ADDITIONAL BALL FIELD, SHADE STRUCTURES, AND WATER DISTRICT FEES AT FREEDOM PARK (JOINT CONSIDERATION WITH THE PALM DESERT REDEVELOPMENT AGENCY). Member/Councilmember Benson moved to, by Minute Motion: 1) Authorize the installation of an additional ball field at Freedom Park in the amount of $712,206.40; 2) allocate funds for the additional ball field at Freedom Park in the amount of$712,206.40 from the unobligated Park Fund 233; 3) authorize the addition of shade structures at the ball field dugouts and bleacher areas in Freedom Park in the amount of$98,670.00 from contingency funds and authorize transfer of said amount from contingency to base; 4) allocate additional funds in the amount of$360,686.30 for water and sewer installation at Freedom Park from unobligated Park Fund 233. Motion was seconded by Spiegel and carried by a 4-0 vote. XI. CONTINUED BUSINESS A. ORDINANCE NO. 1124 - AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA,ADOPTING LOCAL ENERGY EFFICIENCY STANDARDS FOR BUILDINGS COVERED BY THE 2005 CALIFORNIA BUILDING ENERGY EFFICIENCY STANDARDS (Continued from the Meetings of July 13, August 24, and September 14, 2006). Mayor Ferguson related that the City had been working with the Building Industry Association (BIA) for some time for a consensus on energy efficiency. The City has received California Energy Commission (CEC) approval and was recently notified that an Administrative Law Judge approved at least $14 million to fund the plan. He and Councilman Crites began this endeavor approximately two years ago and the newspapers editorialized in support, yet ran a headline this morning that says"Mayor and Industry Oppose Energy Plan," which was incorrect. He noticed that there was no representation for The Desert Sun at this meeting, but he wanted it clarified for the record. MR. FRED BELL, Executive Director of the Building Industry Association Desert Chapterm stated he was also astonished with the newspaper headline. He stated BIA was in a unique situation with this ordinance because they came late to the table; by the time they received the document, it was already a finished product. He has essentially been working on revising it since September. The BIA has retained ConSol, the largest consulting firm in the State of California, doing work for State and 17 PRELIMINARY MINUTES ADJOURNED REGULAR PALM DESERT CITY COUNCIL MEETING NOVEMBER 16, 2006 government agencies, high production builders, and for the Department of Energy. The BIA has shared with staff that they believe improvements can be made to reduce the cost of compliance, and in the end, reduce the cost to the consumer and industrial users affected by the Ordinance. He wants it to be clear that the BIA was not opposing the City in its attempt to go above the Title 24 standards. The true test will be for the improvements to make sense and be cost effective; the BIA wants to work with the City as a proactive partner to accomplish it. He said they have a good engineering consulting firm, and ConSol was also available to all. He believed good information had already been provided to the City. He agreed the City should continue with their ordinance but that a strong effort to engage in discussion to clear up any differences needed to be made in the next few days. The City could then move forward with the industry's buy-in. It would make for a better ordinance, because it was the consumers, industrial and commercial users, that would get the best product possible. He reiterated the BIA was not being obstinate in attempting to keep the City from what they wanted to do. He offered to answer questions. In response to Councilman Spiegel, Mr. Bell replied he would work with whomever the Council desired, only asking that the parties engage and focus with Council involvement in the discussions and hammer out the best changes possible to make it cost effective. In further response to whether or not it could be accomplished by December 14, he replied he had to work around the Thanksgiving Holiday and City staff schedules, but he would do everything possible He spoke with the President of ConSol today, and it was agreed that he needed to be in on this. Mr. Bell said discussions between ConSol and the City's consultants have been ongoing at least four or five times a week, but the challenge was that not everyone was in the room, and that needed to happen. He felt the City, BIA, and the decision-makers needed to drive this process to a solution. Mayor Ferguson pointed out that the City Manager had an item on the Agenda to put together an ad hoc group; this group would sit down with both consultants and representatives from both sides to review the Ordinance. He said there was plenty of time to do that, because The Public Utilities Commission (PUC) met the first week of January. MR. BELL stated if the PUC approved it later than January, most likely that decision would be retroactive back to January 1; although he was not proposing a delay. He again stated they were not being obstinate, but he felt there were areas that could be improved and would like the opportunity to address them. 18 PRELIMINARY MINUTES ADJOURNED REGULAR PALM DESERT CITY COUNCIL MEETING NOVEMBER 16, 2006 Mayor Ferguson stated he personally did not want to do it without the BIA's involvement because it pertained to their industry. He hoped to accomplish something that was productive. Councilman Spiegel moved to, by Minute Motion, continue Ordinance No. 1124 to the meeting of December 14, 2006. Motion was seconded by Kelly and carried by a 4-0 vote. XII. OLD BUSINESS A. REQUEST FORAPPROVAL OF A DEVELOPMENTAGREEMENT, ALONG WITH A PRECISE PLAN/CONDITIONAL USE PERMIT,TOALLOWA NEW, 12-UNIT, 36-KEY BOUTIQUE HOTEL CONDOMINIUM PROJECT LOCATED AT 73-811 LARREA STREET Case Nos. DA 06-01 and PP/CUP 05-20(Villa Property Developer, LLC,Applicant)(from the meetings of October 26 and October 31, 2006). Councilman Spiegel moved to waive further reading and: 1) Pass Ordinance No. 1128 to second reading, approving Development Agreement No. 06-01; 2) adopt Resolution No. 06-142, approving Precise Plan No. 05-20, subject to conditions. Motion was seconded by Kelly. Motion failed on a 2-2 vote, with Kelly and Spiegel voting AYE, Ferguson and Benson voting NO. Mayor Ferguson asked if the item would automatically continue to the next meeting. Mr. Erwin replied since the developer waived the 21-day requirement for action on his application, itwould automatically continue to the next meeting. B. REQUEST FORAPPROVAL OF CONSTRUCTION OF THE FRED WARING DRIVE SOUNDWALL TO FULL HEIGHT AT THE DESERT BREEZES COMMUNITY (PROJECT NO. 654-01). Mr. Ortega stated this item was not for approval of the height, because it was already previously approved, but some residents had requested portions of the wall not be constructed to the full height. He said staff had recommendations on this matter. Senior Engineer Bo Chen stated the project was approved for a full ten-foot high soundwall at the Desert Breezes community, and nine out of 22 residents were requesting a height reduction of two to three feet. 19 PRELIMINARY MINUTES ADJOURNED REGULAR PALM DESERT CITY COUNCIL MEETING NOVEMBER 16, 2006 Mayor Ferguson remarked that almost half of them wanted it lowered. Mr. Chen replied the City had eight official signed agreements, and was waiting on the last one to be notarized. Upon further question, he stated it was staff's recommendation to construct full height for aesthetics. Just prior to the meeting, he spoke to the residents and Desert Breezes representative Mr. Antonowitsch. He said nine residents did not live next to each other consecutively, and they were recommending an up and down transition. He said Mr. Antonowitsch also suggested a transition downward on the right side of the wall at the entrance, which aesthetically would not be a bad idea. Mayor Ferguson thought it would probably create problems if there was one homeowner who wanted a view and another who complained about the noise. Mr. Chen agreed and said it was the reason staff recommended full-height construction. MR. TOM ANTONOWITSCH, Desert Breezes representative, stated he agreed it would not look good from the outside to have a sawtooth effect, and the residents wouldn't want that either. He felt caught in the middle because he represented some of the homeowners that were adamant about their view, which was why they bought their homes. He said the homeowners signed documents that will be included with the deed to their home that indicated no homeowner could come back once the home was sold to request the wall be higher. He said a ten-foot wall at the entrance would make their development look like a prison. He agreed that a lot can be done with landscaping, but a ten-foot wall was too high. He suggested a gradual stepping down effect where it didn't affect any homes at the entrance with a six or seven-foot wall and the same on the other side in front of the timeshare units. He understood the ten-foot wall was to address the noise, but the City had constructed other walls, and the majority of them were seven and eight feet tall. He didn't think it was asking too much to step it down. Mayor Ferguson stated his problem was that the City obtained regional funding to widen Fred Waring and a soundwall west of the entrance gate. Because of the agreement with Desert Breezes Board and representatives, the City came up with the funding for the matching soundwall on the other side. He pointed out the City was building something it had not done for others. He agreed a ten-foot wall seemed like the Great Wall of China; he noted Indian Wells wall next to Desert Horizons, looked pretty good now with 20 PRELIMINARY MINUTES ADJOURNED REGULAR PALM DESERT CITY COUNCIL MEETING NOVEMBER 16, 2006 the landscaping. The City's goal with the wall was to attenuate sound, not to preserve mountain views. He knows not everyone will be happy, but a majority was acceptable with it; individualizing wall heights didn't make sense. MR. ANTONOWITSCH agreed, reiterating that he was caught in the middle because he represented residents that were very adamant about their views. Mayor Ferguson countered that some residents were very adamant about sound. Responding to Mayor Pro Tem Kelly's question, Mr. Antonowitsch said his home was the fourth one, and he was hoping to keep his view. He realized he won't keep his view but didn't want to look at a ten-foot wall either. He explained that the ground level varies from the inside of the tract and at the far end toward Warner Trail, when standing in a yard with a ten-foot wall, you're actually looking at a five-foot wall. He said at the entrance on the other side, almost everyone's home was at curb level; his backyard was almost street level. Mayor Pro Tem Kelly recalled that the City proposed to do nothing at that location, but Desert Breezes asked the City to do something. MR. ANTONOWITSCH concurred but stated they want the wall to look the same. Mayor Pro Tem Kelly said the City went through a difficult process to justify putting in the soundwall because Desert Breezes requested, it and after going through all the work and long process, Desert Breezes was saying they didn't want it. MR. ANONOWITSCH disagreed. He said they do want the wall, but it was also true that others didn't. He wasn't sure what to do because of his position on the board and asked for Council's help. Councilman Spiegel asked about the appearance of the inside of wall. Mr. Chen replied that it would be the same as the outside, in addition to the landscaping restoration; whatever landscaping was there before will be put back to look similar. 21 PRELIMINARY MINUTES ADJOURNED REGULAR PALM DESERT CITY COUNCIL MEETING NOVEMBER 16, 2006 Councilman Spiegel asked if the wall would be dressed up to make it interesting looking like some of the others. Mr. Chen stated it will have some special treatments, like planters with real stone latch veneer, as well as the columns. Upon further question, Mr. Chen said the inside will be a pure masonry box. Mayor Ferguson concurred with Mayor Pro Tem Kelly that the City went through a lengthy process, meeting with the homeowners, showing materials and elevations to obtain the best consensus. Mayor Pro Tem Kelly stated the noise study was redone to justify the soundwall. Mr. Ortega said the height of the walls was dictated by the noise study. He recalled that initially, CVAG did not allow a wall in that particular area because of the decibel requirements; we asked them for another study and finally agreed. Mayor Pro Tem Kelly suggested continuing the item to December 14 when the new Councilmember was on board. Mayor Ferguson pointed out the new Councilmember wouldn't be able to vote on this item. Responding to Councilmember Benson's comment, Mayor Pro Tem Kelly stated there was no compromise for making the wall even but asked if it was possible to step it down. Mr. Chen replied it was possible to have the wall step down transitionally, but the full sound attenuation effect would not be obtained. Mayor Pro Tem Kelly noted no one wanted a sawtooth effect. He recounted that originally the City had a noise study that said the City didn't have to do anything, but because Desert Breezes wanted a soundwall, the City did another noise study and proved they needed it. Now by law, the City has to install a soundwall or a resident can sue and force the City to put one in. He said it was now a matter of law. In answer to Councilman Spiegel and Mayor Pro Tem Kelly, Mr. Chen answered that the wall had to be ten-feet tall. 22 PRELIMINARY MINUTES ADJOURNED REGULAR PALM DESERT CITY COUNCIL MEETING NOVEMBER 16, 2006 Councilman Spiegel moved to, by Minute Motion, direct staff to construct the Fred Waring Drive soundwall at its full design height to provide maximum noise reduction and aesthetic appeal at Desert Breezes. Motion was seconded by Ferguson and carried by a 4-0 vote. 23 PRELIMINARY MINUTES ADJOURNED REGULAR PALM DESERT CITY COUNCIL MEETING NOVEMBER 16, 2006 XIII. PUBLIC HEARINGS A. REQUEST FOR APPROVAL OF ACTIONS RELATED TO THE ISSUANCE AND SALE OF TAX ALLOCATION REVENUE BONDS BY THE PALM DESERT FINANCING AUTHORITY FOR PROJECT AREA NO. 1, AS AMENDED, 2007 SERIES A (JOINT CONSIDERATION WITH THE PALM DESERT FINANCING AUTHORITY AND THE PALM DESERT REDEVELOPMENT AGENCY). Mr. Ortega noted the memorandums indicated a refinancing of Project Area No. 1, in which a savings was to be achieved. He offered that the consultants and staff were available to answer questions. Chairman/President/Mayor Ferguson noted for the record, that the following documents were received: 1) Indenture of Trust; 2) Project Area No. 1, As Amended, Loan Agreement; 3) Escrow Agreement; 4) Preliminary Official Statement; 5) Bond Purchase Agreement; and 6) Continuing Disclosure Agreement. Chairman/President/Mayor Ferguson declared the public hearing open and invited testimony in FAVOR of or in OPPOSITION to this matter. With no public testimony offered, he declared the public hearing closed. Chairman/President/Mayor Ferguson moved to waive further reading and adopt the following resolutions relating to Project Area No. 1 Bonds, As Amended, 2007 Series A: 1) City Council Resolution No. 06-144, making a finding of significant public benefit in connection with the issuance and sale of the Palm Desert Financing Authority Tax Allocation Refunding Bonds (Project Area No. 1, As Amended), 2007 Series A; 2) Financing Authority Resolution No. FA-59, acknowledging finding of significant public benefit and approving as to form and authorizing the execution and delivery of certain documents in connection with the issuance, sale and delivery of the Authority's Tax Allocation Refunding Revenue Bonds (Project Area No. 1, As Amended), 2007 Series A, and authorizing certain other matters relating thereto; 3) Redevelopment Agency Resolution No. 534, approving as to form and authorizing the execution and delivery of certain documents in connection with the sale and issuance by the Palm Desert Financing Authority of the Authority's Tax Allocation Refunding Revenue Bonds (Project Area No. 1, As Amended), 2007 Series A, and authorizing certain other matters relating thereto. Motion was seconded by Spiegel and carried by a 4-0 vote. 24 PRELIMINARY MINUTES ADJOURNED REGULAR PALM DESERT CITY COUNCIL MEETING NOVEMBER 16, 2006 B. REQUEST FOR APPROVAL OF ACTIONS RELATED TO THE SALE OF NINETY-THREE(93)SINGLE-FAMILY HOMES LOCATED IN THE FALCON CREST DEVELOPMENT (TRACT NO. 30795) IN THE CITY OF PALM DESERT (JOINT CONSIDERATION WITH THE PALM DESERT REDEVELOPMENT AGENCY). Mr. Ortega stated that Redevelopment Agency law required that a public hearing be held for the sale of property. Chairman/Mayor Ferguson declared the public hearing open and invited testimony in FAVOR of or in OPPOSITION to this matter. With no public testimony offered, he declared the public hearing closed. Vice Chairman/Mayor Pro Tem Kelly moved to: 1)Waive further reading and adopt, City Resolution No. 06-145 and Agency Resolution No. 535, making findings in accordance with the Summary 33433 Report prepared pursuant to California Health and Safety Code Section 33433 for the sale of property located at the Falcon Crest development; 2) By Minute Motion, that the City Council: a) Approve the City's BEGIN Loan Program and Guidelines, and BEGIN MonitoringAgreement, substantiallyastoform; b) approve the documents related to the sale of properties at Falcon Crest, the Agency loans and the City loans, including the Purchase and Sale Agreement, Seller's Disclosure, Deeds of Trust, for both the Agency and City loans, Promissory Notes for both the Agency and City's BEGIN loans, the CaIHFA Subordination Agreement and the Affordable Housing Restriction and Lien Agreement ("Lien Agreement"), all substantially as to form and authorize the City Manager to execute the same; c) authorize "City BEGIN Loans" for qualifying Falcon Crest homebuyers with deferred payments from BEGIN Program monies in varying amounts up to $30,000 to assist qualifying buyers with down payment and closing cost assistance and authorize the City Manager to execute same; d) authorize the Finance Director to facilitate the draw of BEGIN program monies for the purpose outlined herein and appropriate said funds accordingly; e) authorize the City Manager to execute any documents necessary to effectuate the actions taken by the City Council herewith; 3) By Minute Motion, that the Agency Board: a) Authorize the establishment of the sales prices of the Falcon Crest homes so that the total of the sales price, mortgage payments and other components of the purchaser's housing cost result in the home being available to a person or family of low or moderate income at an affordable housing cost; b) approve the documents related to the Agency loans, the City loans and the sale of homes at Falcon Crest including the Purchase and Sales Agreement, Seller's Disclosure, Deeds of Trust for both the City and Agency loans, Promissory Notes for both the City and Agency loans, the Lien Agreement, the CaIHFA subordination agreement, substantially as to form, and authorize the Executive Director to execute the same; c) authorize Agency loans for qualifying Falcon Crest homebuyers with deferred payments from 20% Set-Aside monies 25 PRELIMINARY MINUTES ADJOURNED REGULAR PALM DESERT CITY COUNCIL MEETING NOVEMBER 16, 2006 in varying amounts up to $50,000 to assist qualifying buyers with down payment and closing cost assistance and authorize the Executive Directorto execute same; d)authorize 26 PRELIMINARY MINUTES ADJOURNED REGULAR PALM DESERT CITY COUNCIL MEETING NOVEMBER 16, 2006 the Director of Finance to appropriate funds necessary for the purpose outlined herein; e) authorize the Executive Director to execute any documents necessary to effectuate the actions taken by the Agency Board herewith. Motion was seconded by Benson. Member/Councilman Spiegel noted that staff did an outstanding job of putting the package together; it was much better than what was normally received from developers. He felt it was going to be a great project and probablyjust as good as Desert Rose. He pointed out that Desert Rose was an affordable housing community. Motion carried by a 4-0 vote. Member/Councilmember Benson said this project was presented with the BEGIN loan program; it was the first time a developer went out and sought supplemental funding to help Palm Desert residents. C. CONSIDERATION OF THE APPROVAL OF A GENERAL PLAN AMENDMENT TO UPDATE THE ENERGY AND MINERAL RESOURCES ELEMENT TO INCLUDE GOALS, POLICIES, AND PROGRAMS RELATED TO REDUCTION OF ENERGY USE IN THE CITY Case No. GPA 06-02(City of Palm Desert, Applicant) (Continued from the meeting of September 28, 2006). Mayor Ferguson declared the public hearing open and invited testimony in FAVOR of or in OPPOSITION to this matter. No public testimony was offered. Councilman Spiegel moved to, by Minute Motion, continue the public hearing to the meeting of December 14, 2006. Motion was seconded by Kelly and carried by a 4-0 vote. D. ANNUAL REPORT OF THE CALCULATION OF CALIFORNIA GOVERNMENT CODE SECTION 66006, DEVELOPMENT IMPACT FEES FOR THE CITY OF PALM DESERT AS OF OCTOBER 26, 2006. Mr. Ortega stated the City was required to make the report available for the purpose of a public hearing for comments on the development impact fees. Mayor Ferguson declared the public hearing open and invited testimony in FAVOR of or in OPPOSITION to this matter. With no public testimony offered, he declared the public hearing closed. 27 PRELIMINARY MINUTES ADJOURNED REGULAR PALM DESERT CITY COUNCIL MEETING NOVEMBER 16, 2006 Councilman Spiegel moved to waive further reading and Adopt Resolution No. 06- 153, making certain findings pursuant to California Government Code Section 66001 and 66006. Motion was seconded by Benson and carried by a 3-0 vote, with Kelly ABSENT. E. REQUEST FOR APPROVAL OF REALLOCATION OF COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FUNDS. Ms. Riddle stated this item would reallocate Community Development Block Grant funds in the amount of $28,965 from Episcopal Community Services to ABC Recovery Center and Stroke Recovery Center. Mayor Ferguson declared the public hearing open and invited testimony in FAVOR of or in OPPOSITION to this matter. With no public testimony offered, he declared the public hearing closed. Councilman Spiegel moved to, by Minute Motion, approve the reallocation of Community Development Block Grant (CDBG) funds in the amount of $28,965 from Episcopal Community Services (ECS) as follows: 1) ABC Recovery Center in the amount of $20,000; and 2) Stroke Recovery Center in the amount of $8,965. Motion was seconded by Benson and carried by a 3-0-1 vote, with Kelly ABSTAINING. F. CONSIDERATION OF A FRINGE-TOED LIZARD HABITAT CONSERVATION PLAN FEE INCREASE. Mayor Ferguson noted his conflict of interest with the subject matter, and he recused himself from the Chamber. Mr. Ortega stated the reason for the increase in fee was because it was not adopted in the overall plan that included this fee and was being now submitted separately. Mayor Pro Tem Kelly declared the public hearing open and invited testimony in FAVOR of or in OPPOSITION to this matter. With no public testimony offered, he declared the public hearing closed. Councilman Spiegel moved to waive further reading and Adopt Resolution No. 06-154, increasing the fee for coverage under the Coachella Valley Fringe-Toed Lizard Habitat Conservation Plan to $2,371 per disturbed acre. Councillmember Benson asked if the stated amount was only effective until it was included in the overall plan. 28 PRELIMINARY MINUTES ADJOURNED REGULAR PALM DESERT CITY COUNCIL MEETING NOVEMBER 16, 2006 Mr. Drell replied the fee could go up to$5,200 per acre, and this amount was a considerable discount for the time being. Motion was seconded by Benson and carried by a 3-0 vote, with Ferguson ABSENT. G. CONSIDERATION OF APPROVAL OF PRECISE PLAN OF DESIGN TO ALLOW A 9,642 SQUARE FOOT SINGLE-FAMILY HOME WITHIN THE HILLSIDE PLANNED RESIDENTIAL ZONE. SUBJECT PROPERTY IS LOCATED AT 869 ROCK RIVER DRIVE, WITHIN THE CANYONS AT BIGHORN (APN 652-160-050) Case No. PP/HPD 06-13 (Kristi Hanson / Architect, Applicant). Mr. Drell stated the proposed house was a previously approved lot in the Canyons at Bighorn, which was processed under the City's original Hillside Ordinance; therefore, it was subject to the amendments to the Hillside Ordinance, which now specified a 4,000 square foot building size. It's a 33,000 square-foot lot; the previous ordinance allowed larger lots. The project is 200 feet below the ridge and would not be visible. The only concern would be the Energy Ordinance, as it may be amended because the process is continuing. He explained as to why this project was being presented to Council, there was discussion that it would be appropriate to use a separate motion for these previously created parcels that are considerably larger than 10,000 feet. They are appropriate for a larger home and should be subject to City's normal coverage requirement. The City set the 4,000 square foot limit on a 10,000 square foot lot. In this case, it's a 32,000 square-foot lot, making it subject to the City's normal residential coverage requirement and approval by the Architectural Review Commission (ARC) to help expedite some of these cases. They could still be called up by Council for review. Mayor Ferguson said when the City went through the General Plan process, he had a problem with the toe of slope calculations on the west side of Highway 74. If he couldn't read or understand the ordinance or know where he could or couldn't build, then the average resident might not either. When the City came up with the Hillside Overlay Zone, he thought it was to be applied to the west of Highway 74. The other issue was that Bighorn came 12 years ago as a Master Planned Community, and they never presupposed a 4,000 square foot limitation on their home. He felt that now the City was applying an ordinance that was meant for the west side of Highway 74 to the east side. The City was now coming up with all these articulations of exceptions, which cause residents to question the 4,000 square foot pads 29 PRELIMINARY MINUTES ADJOURNED REGULAR PALM DESERT CITY COUNCIL MEETING NOVEMBER 16, 2006 and made the City appear disingenuous. Whatever is decided with this project this evening, the City should sit down and look seriously at the Ordinance. Mr. Drell agreed. He suggested amending the Ordinance to provide consideration for the previously approved lots and making them subject to normal coverage requirements. Mayor Ferguson asked how to justify a 9,000 square foot home with a 4,000 square foot requirement, if it was believed that the Ordinance applied to the east side of Highway 74. Mr. Drell replied that calculations were done over and over again on a 4,000 square-foot house size based on the limitation the City was now imposing of a 10,000 square-foot lot. This project was approved under different hillside standards that allowed a 32,000 square-foot lot; because this area was not as steep as other areas of the hillside which mandated that lot size. The City eliminated the difference between flatter areas and steeper areas and made it 10,000 square feet universal, no matter how flat it was. Customization was taken out of the Ordinance, which differentiates this sort of property from the steep ones on the west side. He pointed out that staff was not particularly supportive of many of the amendments that occurred. To correct and acknowledge the differences on the previously approved lots, the City can approve those larger lots before the ordinance is amended and subject them to the same criteria that the City established for a 4,000 square-foot home for coverage: Forty percent of 10,000 is 4,000, and 40 percent of 32,000 would allow for a 12,000 or a 15,000-square-foot house. The project would still be subject to the ARC approval and subject to Council review if it was something the Council was exceptionally alarmed about. He suggested this as an amendment to the Code, and it would be defensible because the City was dealing with a project that had the rules changed midway through the development. Mayor Ferguson declared the public hearing open and invited testimony in FAVOR of or in OPPOSITION to this matter. Mayor Ferguson invited the Applicant to speak first, but the Applicant was not present. With no public testimony offered, he declared the public hearing closed. 30 PRELIMINARY MINUTES ADJOURNED REGULAR PALM DESERT CITY COUNCIL MEETING NOVEMBER 16, 2006 Councilman Spiegel stated he and Mayor Pro Tem Kelly had been reviewing the Hagadone problem, neither one was happy about it, but the problem was there. They had been working with the people at Ironwood, who had been pretty understanding, but advised looking at the City's Hillside Ordinance. He agreed with their point of view and also agreed Mr. Drell's assumption that no one would build a 4,000 square-foot home in Bighorn because it wasn't developed that way. He agreed the City should notify anyone affected by line-of-sight and have public hearings for people to profess their problems, and that wasn't happening. He informed the Mayor that at the appropriate time, he would request that this item be continued and to consider revising the Hillside Ordinance so that it made better sense for the City. Councilmember Benson said her sentiments were the same, and she would not vote for any more houses on that site until the City had a clear ordinance so that it didn't appear Council was helping the rich. She emphasized that was not the case with the Hagadone project or any other project; the City didn't work that way. She agreed the Hillside Ordinance needed to be revised with a different notification system for those building in that area. She concurred with Councilman Spiegel's request to continue until something was worked out. Mayor Pro Tem Kelly agreed with Councilman Spiegel's comment that they had been working hard to do something to mitigate the problem with the Hagadone House, but on the other hand, the design of this house was completely different with no resemblance or any structures sticking out of it. According to the staff report, this house was 200 feet below the ridge line. He had no problem with a continuance because he didn't have time to go out there and stand on the lot, and he wouldn't vote yes on anything unless he went out there and stood on the lot with a height reading. The attempts to reach the architectural and landscaping design and re-naturalization, with the energy criteria, requirements of the Hillside Ordinance were many. This applicant has done a very good job on this house. He felt badly that someone who had done a good job was being penalized for someone who did a bad job. He hoped that Council could go out to the site quickly so that this developer, who did everything right with a good project and a house that was not visible, was not held up. In answer to question abut why the Applicant was not present, Mr. Drell said the developer probably thought it was going to be approved because usually they were present. Upon further comments made, he pointed out this house was one-quarter of the size of the Hagadone house. 31 PRELIMINARY MINUTES ADJOURNED REGULAR PALM DESERT CITY COUNCIL MEETING NOVEMBER 16, 2006 Mayor Ferguson stated he agreed with Mayor Pro Tem Kelly in that he didn't want to punish someone who did everything right for someone who didn't, but by the same token, the last time the Council was assured the house wouldn't be seen, the Council did not inspect it, and now the City has the Hagadone House. Councilman Spiegel moved to, by Minute Motion, continue the matter until the City had a new Hillside Ordinance. Motion was seconded by Benson. Mr. Drell said that would be months. Responding to comment, he explained by definition a Hillside Ordinance would need to be initiated, drafted, forwarded to the Planning Commission, and back to City Council for approval. Mr. Erwin stated that it would be 90 to 120 days. Mr. Drell agreed. Mayor Ferguson asked Councilman Spiegel if he would be amenable to continuing to the next meeting until members of the Council could go look at the project. Councilman Spiegel said he was amenable to continuing to allow time to review a revised Hillside Ordinance, not that it had to be approved. Mr. Drell agreed to return with a revised draft Hillside Ordinance for Council to initiate at the next meeting of December 14. Mayor Ferguson reopened the public hearing. Councilman Spiegel amended his motion to continue the public hearing to the meeting of December 14, 2006, with staff further directed to present a draft revision of the City's Hillside Ordinance at that time in order to initiate the amendment process. Motion was seconded by Kelly and carried by a 4-0 vote. XIV. REPORTS AND REMARKS A. CITY MANAGER 1. Consideration of the Formation of an Energy Committee. Mr. Ortega stated this item was related to the Energy Ordinance and was recommending that Council allow the Mayor to select a group of 32 PRELIMINARY MINUTES ADJOURNED REGULAR PALM DESERT CITY COUNCIL MEETING NOVEMBER 16, 2006 people that are in the business of building, and other individuals that could review the Ordinance and give us their view. Part of the problem is that the City's consultant and the BIA's consultant do not agree completely on what the Ordinance should look like. He suggested appointing a group quickly to review the Ordinance and return with a recommendation by December 14, if not, maybe January. He felt it was important to do it quickly, because the funding was ready to go and part of that funding, the City agreed to go beyond just existing construction. Councilmember Benson asked if that would be two community members. Mr. Ortega replied that it was up to the City Council to discuss that, maybe people from the building industry should be included. He said a local developer was showing his project this Saturday, claiming it met the City's Ordinance with no problems. They would like having people from the building industry, from BIA, and others from the community look at their project. Mayor Ferguson stated he previously brought this issue up with Mr. Ortega and Mr. Fred Bell from the BIA because he believed community buy-in was necessary. He said Mr. Bell didn't feel he fully participated in the process, and what he suggested to Mr. Ortega was to seek Council direction to put together an ad hoc or short-term committee that could comment on the ordinance between now and December 14. He said he got a couple of names from Mr. Bell and he approached a few people in the community that expressed an interest and willingness to do it. If Council thought it was a good idea, appointments could be made in December with the regular appointments and make it a permanent committee if that's what Council wanted. This was a five-year, $80 million undertaking for the City. Councilman Spiegel said he thought it was $14 million. Mayor Ferguson explained that$14 million was the initial funding and only the ALJ's recommendation. It was indicated to the Mayor by the Chairman of the PUC that it would go up significantly. Either way, he thought Mr. Conlon and Mr. Ortega needed some help, and he didn't want to make it a Jim Ferguson thing but a community project. He asked permission to put a group of people together to take a look at 33 PRELIMINARY MINUTES ADJOURNED REGULAR PALM DESERT CITY COUNCIL MEETING NOVEMBER 16, 2006 the Ordinance on a temporary basis, at least until the Council conducted their normal appointments. Councilman Spiegel asked whom the Mayor was considering for the committee. Mayor Ferguson replied he had spoken to Bill Kroonen about serving and to Buford Crites, since he's retired. He said Fred Bell offered his name and also Ed Torres. He didn't have a fifth person yet but didn't want to make it larger than five members. Councilman Spiegel stated Bill Kroonen was a friend of his, but didn't think he qualified or had the background to be on the committee. He suggested somebody from the electric company because they would know whether or not this ordinance would work. Mayor Ferguson responded the problem was that the City had a Managers Committee made up of The Gas Company, Southern California Edison, The Energy Coalition, and Pat Conlon and a Policy Committee made up of Senior Vice Presidents from the Edison Company, The Gas Company, The Energy Coalition, and City of Palm Desert. And to get community buy-in, he didn't think Bill Kroonen had to be an energy scientist to see whether the Ordinance made sense or not. Mayor Pro Tem Kelly's observation that a lot of money could be obtained, but there's always a snag is not something The Gas Company or Southern California Edison will say but was a fair observation coming from a layperson. He went on to say the two consultants were battling it out, and he thought it was a good idea for the City to have an impartial panel of five people. Mayor Pro Tem Kelly expressed his concern in that, eventually, an Energy Committee or Energy Commission may be needed. but the City already had a process to select members. His concern in selecting individuals now will make them feel like they have already been appointed, on a committee, and the process already in place will mean nothing. It concerned him to go outside of the established selection process used for many years where the whole Council has an opportunity for input. Mayor Ferguson asked if there was anything preventing Mr. Ortega from providing copies of the Ordinance to the people he would like input from between now and December 14. He hoped to have an 34 PRELIMINARY MINUTES ADJOURNED REGULAR PALM DESERT CITY COUNCIL MEETING NOVEMBER 16, 2006 Ordinance by January 1, prior to meeting with the Pubic Utilities Commission, to receive, hopefully, additional funding by showing a demonstrated commitment on Palm Desert's part. The City has not passed anything. Applications have been filed in order to do so, but they have not happened. If the goal was to have an ordinance on December 14, with the BIA wanting to provide input, and both consultants are at loggerheads, he thought getting independent people for a short-term basis would help the City break that impasse. Mayor Pro Tem Kelly agreed the BIA should have input and also input from developers through them. He didn't see anything wrong with staff and Mayor Ferguson working with the BIA but was not convinced community buy-in was necessary for something the City's been working on for two years. He said the Energy Program was like apple pie and motherhood; who would disagree with? He didn't recall himself being asked for buy-in; he was way down the road before he had a chance to say yes or no and felt like he was swept away and was starting to feel like that again. Mayor Ferguson replied that it was a fair comment, but he was hoping to do something similar to what Mayor Pro Tem Kelly and Councilman Spiegel did with the Hagadone situation. The City had one specific problem that needed extra effort and expertise to solve it, and he personally had a problem now with the BIA and the City's consultant not agreeing. He was not trying to create a new committee, he was trying to break up a log jam before the City had an ordinance. He said he was sensitive to Mayor Pro Tem Kelly's comments, which were duly noted. Councilmember Benson recalled the last time the energy plan was reviewed,there were a lot of people; a neighbor friend of Mayor Pro Tem Kelly and community volunteers that were in the business that wanted to have their say. She was confident somebody out there other than the ones mentioned by Mayor Ferguson had a working knowledge on this matter. She was amenable to doing something to get people into the fold for a special committee on a one-time basis, but not as an appointment. She said the other evening at CVAG's Executive Committee, a retired businessman from Indian Wells was speaking on air conditioning and energy. MR. BELL said the challenge was that the weight of compliance was highly technical, and that's what the consultants are struggling with. 35 PRELIMINARY MINUTES ADJOURNED REGULAR PALM DESERT CITY COUNCIL MEETING NOVEMBER 16, 2006 What gave him pause for concern, from the BIA's standpoint, were the engineering numbers from their consultant. He explained engineering calculations could tell you what holds a roof up, how big a beam should be, what it needs to be made out of, etc. What caused him concern was that the consultants' reports were so far apart and so far off. Mayor Pro Tem Kelly asked if they were off on the figures or cost. MR. BELL replied it was the figures. He said the energy firms use computer models that take data input. Data input are local construction materials that are uploaded, along with the climate, into the model, and it produces a report with what materials are required and cost of those materials. The BIA reviewed the consultant's study and ConSol said the cost was about $4,000 for compliance. He thought it didn't make sense because it didn't tie up with the other consultant's figures. The issue was the two consultants were using a different computer model. Now the challenge is to have the two technicians have a discussion with a reasoned group of people, look at the ordinance, look at what the compliance discussion is, and make decisions as to how to get from A to B. The BIA's problem was that they are commenting on a finished document, and it's extremely difficult to accomplish when you add the other component of the looming grant funding; that creates another problem. He agreed with the Mayor's approach to involve others to provide a fresh set of eyes, a fresh way thinking. He believed it was time to do that. He spoke directly with the City Manager, because he needed to have someone fresh to have a discussion with. The idea is for the BIA to deliver a program that didn't cost more than it needed to and allow the City to obtain a grant funding that went as far as it could make Palm Desert a leader in energy conservation. The only areas he struggled with were the construct issues but agreed with the Mayor's position to include community members at large, City staff inembers, or a Council Committee. Mayor Pro Tem Kelly said it sounded like a neutral person was needed, because what he thought was proposed so far was someone from the City's side and someone from the BIA's side. He proposed bringing in somebody else that was in a neutral position, like a mediator or moderator. 36 PRELIMINARY MINUTES ADJOURNED REGULAR PALM DESERT CITY COUNCIL MEETING NOVEMBER 16, 2006 MR. BELL replied that's what it can be; assuring the Council from BIA's position, they were neutral in that they were not trying to stop the City, and that's why they retained an energy consulting firm to try to figure out how to get it done. Mayor Pro Tem Kelly commented that he thought if the BIA was neutral, they wouldn't be doing their job. Mayor Ferguson said his frustration from experience working with consultants is that you can tell him the direction you want him to go, and he'll justify that position. Or you can get a consultant who can tell you what really is. Mayor Pro Tem Kelly said he was talking about a mediator, not a consultant—someone thatwould bring both sides togetherto mediate on something both sides can agree on. Mayor Ferguson said that only worked when you have two parties disputing over a land sale. Here, the City was dealing with an entire industry, an entire city, and all the residents, and he wants to get to the bottom line. For instance, if an improvement is done and it exceeds Title 24, it's going to cost "X" amount of money - two consultants can't be light years apart on how much that's going to cost. So either the City's consultant is artificially lowering the numbers, or BIA's consultant is artificially raising the numbers. That's why he wants to get homebuilders in a room with community members and people that don't have a financial interest one way or the other to comment on what they think that number might be. Then the logjam can be broken and hopefully the City can march forward with the BIA instead of it being uniformly opposed. Councilman Spiegel asked if the two consultants attempted to get together. MR. BELL replied they have continued to communicate, and his direction was to get them together. He outlined some of the problems they are currently having and the next step, regardless of what the City did with the Committee, was to get the two consultants together to figure out why the numbers are so far apart. Councilman Spiegel agreed that should be the first step. 37 PRELIMINARY MINUTES ADJOURNED REGULAR PALM DESERT CITY COUNCIL MEETING NOVEMBER 16, 2006 MR. BELL said he will do that as quickly as possible once they understood staff schedules. Mr Ortega agreed it was a good start to / technical issue, and he suggested including City Building & Safety staff. MR. BELL agreed wholeheartedly. Mayor Ferguson said he would like to bring an ordinance that was reviewed by other people by December 14. He disagreed that it was a technical problem, it's a political problem. The BIA felt they were shut out of the process, which he had been working hard to reverse. Mr. Bell concurred. Mayor Ferguson said he thought the City may be of the perception that the BIA wanted to kill this ordinance, but Mr. Bell has reassured him that was not the case. Mayor Pro Tem Kelly stated he wanted City staff and BIA staff to work with the two consultants. Mayor Ferguson agreed, but the matter has been continued from July, August, September, and October, and it was about to be continued once again to December. He pointed out that staff had been working with them the entire time, and an agreement had not been reached. MR. BELL said if a point of an impasse was reached, he would tell Council, but didn't think the matter was there yet. He understood the City's concern in trying to get the funding and he assured Council that the BIA would do everything possible to get it done. Mayor Ferguson stated he didn't want to miss$18 million because the BIA's consultant couldn't agree with the City's. Councilman Spiegel said he'd like for Pat Conlon to comment; he thought it was his project. Mr. Conlon disagreed with the comment that both sides were light years apart. He said the City's consultant was working with ConSol and felt confident with the City's numbers. He said the consultant was very ethical and took very conservative assumptions. The BIA 38 PRELIMINARY MINUTES ADJOURNED REGULAR PALM DESERT CITY COUNCIL MEETING NOVEMBER 16, 2006 requested the City's consultant to remodel his program using the BIA's parameters, and the results were the same. Mr. Conlon stated he had no problem using the time between now and December 14 to get both consultants together and thought it was a great idea. Councilman Spiegel inquired about other staff in the meeting. Mr. Conlon replied that staff people could be brought in and would be welcome. He thought it was a wonderful idea to include builders, to get a reality check. He thought Rudy Acosta with Lennar Homes would be a wonderful resource for the City to use, perhaps the new Councilmember could join the discussions on what the City's doing. Even if in the end no one agreed, at least, it can be pinpointed where both sides disagreed. Mayor Pro Tem Kelly expressed that he would be comfortable with Rudy Acosta and the new Councilmember. Upon further question, he agreed to the two consultants, Fred Bell or whomever he wanted to bring along, Cindy Finerty, Rudy Acosta and City staff. Mr. Conlon pointed out that Larry Hughes, who was the builder of the 16 units at Portola Pointe, was a possibility and present this evening. They will have their grand opening to show their model, this weekend. 39 PRELIMINARY MINUTES ADJOURNED REGULAR PALM DESERT CITY COUNCIL MEETING NOVEMBER 16, 2006 Mayor Ferguson asked if everyone was comfortable with taking the direction of not having a formal committee, unless Council wanted one at a later time, but at least the City could get through this problem. Upon further question, Mayor Ferguson replied he will do it exactly how Mayor Pro Tem Kelly said and a motion was not required, because it was not an official committee. With City Council concurrence, directed staff to coordinate a group of appropriate suggested representatives, including Councilmember-elect Cindy Finerty, Rudy Acosta of Lennar Homes, Fred Bell of the BIA, the two consultants, and City staff, to provide advice on the City's Energy Ordinance and resulting Energy Program prior to the next meeting. B. CITY ATTORNEY None C. CITY CLERK 1. Discussion Regarding the December 2006 Meeting Schedule. With City Council concurrence and in keeping with the schedule the City Council has observed for the past several years, staff was directed to plan for only the meeting of December 14, 2006, and to cancel the second December meeting. D. PUBLIC SAFETY o Fire Department Chief Holloway introduced the City's new Fire Marshal, Battalion Chief Jorge Rodriguez, a 20-year veteran of the Riverside County Fire Department. o Police Department None 40 PRELIMINARY MINUTES ADJOURNED REGULAR PALM DESERT CITY COUNCIL MEETING NOVEMBER 16, 2006 E. MAYOR AND MEMBERS OF THE CITY COUNCIL o City Council Requests for Action: None o City Council Committee Reports: 1. Haqadone Project — Councilman Spiegel provided an update on the subcommittee's progress. He said there have been three or four meetings to date, with the last one being attended by the architect, new Councilmember, City Manager, Mayor Pro Tem Kelly, and himself. The architect has drawn up a new rockwork design to look more like a natural part of the hillside. He and Mayor Pro Tem Kelly then met with the Ironwood Homeowners Association representative, who showed the picture to quite a few of the residents, and they agreed it was probably the best that could be done. Mr. Hagadone was advised to proceed with the rockwork modification. Further, he and Mayor Pro Tem Kelly signed the required agreement that was written by the City Attorney, and it will be presented to Mr. Hagadone for his signature. He added there was more to be done, the project needed to be finished, and then the lights had to go on. Once that occurred, if everyone was satisfied, the sport court would remain; if not, the matter will be brought back to City Council, and the sport court would be torn out. 2. CVAG Public Safety Committee — Councilman Spiegel reported that a member of the U. S. Attorney General's Office would be making a presentation about marijuana at the Committee's first meeting in January. He hoped to be able to bring that information back to the City Council. 3. CVAG Executive Committee — Councilmember Benson commented that at its meeting last Monday night, for the first time ever, approval was given for having the Homeless Task Force report back directly to the Executive Committee instead of through another committee. She said although Rancho Mirage and La Quinta opposed the action, in the interest of Valley unity, each agreed to name a representative to the Committee in order to find a solution to the homeless issue once and for all. 41 PRELIMINARY MINUTES ADJOURNED REGULAR PALM DESERT CITY COUNCIL MEETING NOVEMBER 16, 2006 42 PRELIMINARY MINUTES ADJOURNED REGULAR PALM DESERT CITY COUNCIL MEETING NOVEMBER 16, 2006 o City Council Comments: 1. Child Advocate of the Year—Mayor Pro Tem Kelly recognized Councilmember Jean Benson for being named Child Advocate of the Year and honored at a recent dinner. 2. Navy Commodores Concert—Mayor Pro Tem Kelly noted that the City was pleased to host the Commodores at the November 10 Concert in the Civic Center Amphitheater. He said it was a great program with a full-house audience. 3. EI Paseo Exhibition — Mayor Pro Tem Kelly commended the City's Art In Public Places Department for its successful unveiling of the 2007/08 Exhibit at the event last week. Further, he noticed its inclusion of four sculptures placed on the west end of EI Paseo, which were a real attribute to that portion of the street. 4. November 7 Election — Mayor Ferguson congratulated Cindy Finerty for her win on November 7, anticipating certification of the Election by the County Registrar of Voters in the near future and looking forward to having a fifth Member of the City Council. As part of the process, he noted that there were a number of bumps in the road with regard to political signage, and in talking with the City Attorney, it was agreed that the best time to make any modifications to the City's regulation would be right after an election. He asked for his colleagues' concurrence that Mr. Erwin review the sign ordinance to see how it could be tightened up. He said issues included length of time the signs can be left after the election and placement on publicly owned property. Mr. Erwin said he would be happy to review the matter and felt there were several issues that could be addressed. City Councilmembers concurred with the suggestion. 43 PRELIMINARY MINUTES ADJOURNED REGULAR PALM DESERT CITY COUNCIL MEETING NOVEMBER 16, 2006 XV. ORAL COMMUNICATIONS - C MS. MARIE SANCHEZ, representing the Portola Pointe project, extended the City Council a personal invitation to attend their model opening on Saturday, November 18. XVI. ADJOURNMENT With City Council concurrence, Mayor Ferguson adjourned the meeting at 6:07 p.m. JIM FERGUSON, MAYOR ATTEST: RACHELLE D. KLASSEN, CITY CLERK CITY OF PALM DESERT, CALIFORNIA 44