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HomeMy WebLinkAboutPRELIM - CC - 04/27/06PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING THURSDAY, APRIL 27, 2006 CIVIC 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: Excused Absence: Councilmember Jean M. Benson Councilman Robert A. Spiegel Councilman Buford A. Crites Mayor Pro Tem Richard S. Kelly 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 Amir Hamidzadeh, Director of Building & Safety Phil Drell, Director of Community Development Doug Van Gelder, Director of Information Systems Mark D. Greenwood, Director of Public Works David Yrigoyen, Director of Redevelopment & Housing Frankie Riddle, Acting Director of Special Programs J. Luis Espinoza, Assistant Finance Director Craig Kilday, Chief, Palm Desert Police/Riverside Co. Sheriff’s Dept. Steve Thetford, Asst. Chief, Palm Desert Police/Riverside Co. Sheriff’s Dept. Walt Holloway, Battalion Chief, Palm Desert Fire/Riverside Co. Fire Dept./CDF 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: PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 27, 2006 2 1) Property: 15.62 acres, APNs 624-160-001/002 Negotiating Parties: Agency: Carlos L. Ortega/City of Palm Desert/ Palm Desert Redevelopment Agency Property Owner: Coachella Valley Recreation & Park District 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 Upon motion by Benson, second by Kelly, and 4-0 vote of the City Council, with Spiegel ABSENT, an additional case of potential litigation under Government Code Section 54956.9(b) was added to the Closed Session agenda. Conference with Legal Counsel regarding significant exposure to litigation pursuant to Government Code Section 54956.9(b): Number of potential cases: 2 + 1 Conference with Legal Counsel regarding significant potential to initiate litigation pursuant to Government Code Section 54956.9(c): Number of potential cases: 2 Public Employment pursuant to Government Code Section 54957: Title of Position: City Attorney With City Council concurrence, Mayor Ferguson adjourned the meeting to Closed Session at 3:02 p.m. He reconvened the meeting at 4:01 p.m. IV. RECONVENE REGULAR MEETING - 4:00 P.M. A. REPORT ON ACTION FROM CLOSED SESSION. None PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 27, 2006 3 V. AWARDS, PRESENTATIONS, AND APPOINTMENTS A. APPOINTMENT TO THE YOUTH COMMITTEE. Councilman Crites moved to, by Minute Motion, appoint Kevin Park to the Palm Desert Youth Committee (term 12/31/06). Motion was seconded by Kelly and carried by a 4-0 vote, with Councilman Spiegel ABSENT. VI. CONSENT CALENDAR A. MINUTES of the Regular City Council Meeting of April 13, 2006. Rec: Approve as presented. B. CLAIMS AND DEMANDS AGAINST THE CITY TREASURY - Warrant Nos. 201, 205, 206, and 207. Rec: Approve as presented. C. CITY’S/AGENCY’S COMPLIANCE ANALYSIS and Investment Reports for January 2006 and February 2006 (Joint Consideration with the Palm Desert Redevelopment Agency). Rec: Receive and file. D. APPLICATION FOR ALCOHOLIC BEVERAGE LICENSE by JRR Food Service, Inc., for Angelina’s Pizza & Pasta, 72-785 Highway 111, Suite G2, Palm Desert. Rec: Receive and file. E. APPLICATION FOR ALCOHOLIC BEVERAGE LICENSE by SC Restaurants, Inc., for Inn On El Paseo, 73-445 El Paseo, Suite 11A, Palm Desert. Rec: Receive and file. F. CITY COMMITTEE AND COMMISSION MEETING MINUTES. 1. Parks & Recreation Commission Meeting of March 21, 2006. 2. Public Safety Commission Meeting of February 8, 2006. 3. Sister Cities Committee Meeting of February 16, 2006. 4. Youth Committee Meeting of March 7, 2006. Rec: Receive and file. PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 27, 2006 4 G. RESOLUTION NO. 06-58 - 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 (January 2006). Rec: Waive further reading and adopt. H. REQUEST FOR AWARD OF BID for Purchase of a Cold Planer Attachment for the City’s Skid-steer Loader. Rec: By Minute Motion, award the subject bid to D3 Equipment, Fontana, California, in the amount of $7,455.23 – funds are available in Account No. 110-4310-433-4045. I. CONSIDERATION of Legislative Review Committee Action on AB 2089 (Tran) – Tax Levies. Rec: By Minute Motion, concur with the action taken by the Legislative Review Committee at its meeting of April 5, 2006, and direct staff to prepare a letter of opposition for the Mayor’s signature with regard to AB 2089 (Tran). J. CONSIDERATION of Legislative Review Committee Action on AB 2096 (Parra) – Tax Levies. Rec: By Minute Motion, concur with the action taken by the Legislative Review Committee at its meeting of April 5, 2006, and direct staff to prepare a letter of opposition for the Mayor’s signature with regard to AB 2096 (Parra). K. CONSIDERATION of Legislative Review Committee Action on AB 2139 (Garcia) – Emergency Protective Orders. Rec: By Minute Motion, concur with the action taken by the Legislative Review Committee at its meeting of April 5, 2006, and direct staff to prepare a letter of support for the Mayor’s signature with regard to AB 2139 (Garcia). L. CONSIDERATION of Legislative Review Committee Action on AB 2197 (DeVore) – Tax Increment Financing. Rec: By Minute Motion, concur with the action taken by the Legislative Review Committee at its meeting of April 5, 2006, and direct staff to prepare a letter of opposition for the Mayor’s signature with regard to AB 2197 (DeVore). PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 27, 2006 5 M. CONSIDERATION of Legislative Review Committee Action on AB 2218 (Torrico) – Tax Levies. Rec: By Minute Motion, concur with the action taken by the Legislative Review Committee at its meeting of April 5, 2006, and direct staff to prepare a letter of opposition for the Mayor’s signature with regard to AB 2218 (Torrico). N. CONSIDERATION of Legislative Review Committee Action on AB 2219 (Torrico) – Political Reform Act of 1974. Rec: By Minute Motion, concur with the action taken by the Legislative Review Committee at its meeting of April 5, 2006, and direct staff to prepare a letter of opposition for the Mayor’s signature with regard to AB 2219 (Torrico). O. CONSIDERATION of Legislative Review Committee Action on AB 2533 (Leno) – Tax Levies. Rec: By Minute Motion, concur with the action taken by the Legislative Review Committee at its meeting of April 5, 2006, and direct staff to prepare a letter of opposition for the Mayor’s signature with regard to AB 2533 (Leno). P. CONSIDERATION of Legislative Review Committee Action on AB 2922 (Jones) – Low and Moderate Income Housing Fund. Rec: By Minute Motion, concur with the action taken by the Legislative Review Committee at its meeting of April 5, 2006, and direct staff to prepare a letter of opposition for the Mayor’s signature with regard to AB 2922 (Jones). Q. CONSIDERATION of Legislative Review Committee Action on SB 1291 (Alquist) – Tax Levies. Rec: By Minute Motion, concur with the action taken by the Legislative Review Committee at its meeting of April 5, 2006, and direct staff to prepare a letter of opposition for the Mayor’s signature with regard to SB 1291 (Alquist). PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 27, 2006 6 R. CONSIDERATION of Legislative Review Committee Action on SB 1643 (Runner) – Sales and Use Tax Exemptions. Rec: By Minute Motion, concur with the action taken by the Legislative Review Committee at its meeting of April 5, 2006, and direct staff to prepare a letter of opposition for the Mayor’s signature with regard to SB 1643 (Runner). S. CONSIDERATION of Legislative Review Committee Action on SB 1832 (Kehoe) – Fee Waivers. Rec: By Minute Motion, concur with the action taken by the Legislative Review Committee at its meeting of April 5, 2006, and direct staff to prepare a letter of opposition for the Mayor’s signature with regard to SB 1832 (Kehoe). T. CONSIDERATION of Request to Serve Wine at Sister Cities Firefighters’ Recognition Event. Rec: By Minute Motion, permit the consumption of alcoholic beverages on City-owned property in connection with a special event, the Sister Cities Firefighters’ Recognition, scheduled to be held at the Palm Desert Civic Center Park on May 10, 2006. U. REQUEST FOR APPROVAL of Out-of-State Travel for the International H.T.E. Users’ Group (HUG) Conference. Rec: By Minute Motion, approve the subject travel to the five-day, Annual International H.T.E. HUG Conference in Lake Buena Vista, Florida, June 5-9, 2006, for one additional Building & Safety Department staff person – funds are available in Account No. 110-4420-422-3120. V. REQUEST FOR AWARD OF BID for the Purchase of Two Replacement Pickup Trucks. Rec: By Minute Motion, award the purchase of two Ford F-150 Pickup Trucks to Moss Bros. Ford, Colton, California, in the amount of $35,655.24 and appropriate same to Fund 530 – vehicles to be used by City Code Compliance staff and will be purchased with Abandoned Vehicle Authority Funds. PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 27, 2006 7 W. REPORT on History of the Abandoned Florida Avenue Sidewalk Related to the Fred Waring Drive Widening Project. Rec: Receive and file. Upon motion by Crites, second by Kelly, the Consent Calendar was approved as presented by a 4-0 vote, with Councilman Spiegel ABSENT. VII. CONSENT ITEMS HELD OVER None VIII. RESOLUTIONS A. RESOLUTION NO. 06-59 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, APPROVING THE FINAL SUBDIVISION MAP OF TRACT NO. 32655-1 AND APPROVING THE AGREEMENT RELATING THERETO (Hover Development Company, Inc., Applicant). Mr. Ortega noted the staff report and recommendation in the packets. Mayor Pro Tem Kelly moved to waive further reading and adopt Resolution No. 06-59. Motion was seconded by Benson and carried by a 4-0 vote, with Councilman Spiegel ABSENT. B. RESOLUTION NO. 06-60 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, APPROVING THE FINAL SUBDIVISION MAP OF TRACT NO. 33837-1 AND THE AGREEMENT RELATING THERETO (Taylor Woodrow, Inc., Applicant). Mayor Pro Tem Kelly noted that he had questioned, after the developer made a presentation at a Landscape Committee meeting, whether there would be a bike/pedestrian path along the railroad. He said he felt this was something that needed to be done up front; however, the developer did not see that need. He noted the project at the southwest corner of Portola and Country Club, where construction has been ongoing for two or three years. There is still ugly fencing, and the project will not be completed for another few years because, evidently, the City did not make it a requirement that the developer do it in a reasonable amount of time. He was concerned the same thing might happen with the pedestrian path along the railroad track in this case. Councilman Crites asked whether the City could require the bike/pedestrian path be done as part of the project’s Phase 1. Mr. Greenwood responded that he did not believe the conditions had specific requirements for phasing. PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 27, 2006 8 He stated it was his understanding was that this was more a cooperative approach rather than a set condition of approval. MR. TIM DAY, Senior Project Manager for Taylor Woodrow Homes, noted that this particular subdivision map was for half of the existing RV park. He said as part of the initial phase of development, they were going to create the barrier and grade that area. He said they would work closely with Public Works staff on the implementation of the trail; however, at this point, without some discussion with the owner of the remainder of the park, which would remain open for one more season, he was not sure how it would continue, and it may just dead end. Upon question by Mayor Ferguson, he said the park would be north/south, basically split almost down the middle from I-10 to 500-600 feet west of Eldorado. He said he did not think they had a problem going forward and doing improvements, and they certainly did not want to leave that in its current condition. He said they would improve that half of the area with a barrier/fence once they begin construction of the homes in the first half of the project because that trail is open to the public, and they will want to have the security; however, they did not at this time own the property further to the east at the end of the entire existing resort. Upon question by Mayor Ferguson, he said he anticipated they would own the remainder parcel in approximately one year, March 2007. Mayor Pro Tem Kelly asked if he understood Mr. Day to say that Taylor Woodrow would do just half of the path with the first phase. Mr. Day confirmed that to be the case and said there would be some resurfacing of the existing wall, some noise barrier work, and the barrier fence. They would also work with Public Works staff on how to handle irrigation, landscape maintenance, etc. Mr. Greenwood added that the pedestrian and bicycle easement was on the map the Council was being asked to approve. He said Public Works staff would work with the developer to get the first phase of the path done along with completion of the project’s first phase; although, the path would end at the easterly terminus of the first phase. Councilman Crites said it could also be noted that upon the acquisition of the Phase 2 land, completion of the linkage would become a priority. Mr. Day responded that he was very comfortable with that. Councilman Crites stated that the City was looking at a variety of real estate issues with this property and asked if everyone was comfortable with those issues. Mr. Ortega responded that the issue the City was looking at was whether there was some additional land for another use, and the answer was that there was not; therefore, the City sought other properties, and staff was comfortable with that. PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 27, 2006 9 Councilman Crites moved to waive further reading and adopt Resolution No. 06-60. Motion was seconded by Benson and carried by a 3-1 vote, with Mayor Pro Tem Kelly voting NO and Councilman Spiegel ABSENT. IX. ORDINANCES For Introduction: None For Adoption: None X. NEW BUSINESS A. UPDATE ON THE COACHELLA VALLEY WATER DISTRICT’S (CVWD) SEWER INSTALLATION PROJECT. Mr. Ortega noted this was a project that would impact the City’s light industrial area. He said there was a request and recommendation to close several streets, but there was no provision for the City Manager to allow that; therefore, the matter was before Council for authorization. Upon question by Councilman Crites, Mr. Greenwood responded that the City’s cooperation with CVWD would greatly facilitate the work on this large project. Councilman Crites asked whether the City was receiving the same kind of cooperation from CVWD with regard to the City’s widening project on Monterey Avenue. Mr. Greenwood responded that he did not believe the City was receiving that cooperation. He said staff had asked CVWD to compromise somewhat in order to minimize cost, as the Water District was asking the City to build a water line that staff did not think was necessary. He added that the sole reason to replace the existing water line was so that it would not be under a raised, landscaped, median island. Staff was certain there were other ways to mitigate the issue that were far more cost-effective than building a $200,000 water line. Councilman Crites suggested that the City’s approval on this night closure of streets request be attached to the satisfactory resolution of the concerns about the water line matter on Monterey Avenue. Councilman Crites moved to, by Minute Motion: 1) Receive and file the report; 2) authorize nighttime closure of 42nd Avenue and Corporate Way for installation of sewer PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 27, 2006 10 along those streets, subject to the satisfactory resolution of concerns about the water line matter on Monterey Avenue. Motion was seconded by Kelly and carried by a 4-0 vote, with Councilman Spiegel ABSENT. B. REQUEST FOR APPROVAL OF THE ASSIGNMENT FROM WASTE MANAGEMENT OF THE DESERT TO BURRTEC WASTE INDUSTRIES FOR SOLID WASTE DISPOSAL SERVICES TO THE CITY OF PALM DESERT. For the record, Mayor Ferguson noted his past legal representation for Waste Management; therefore, he would be recusing himself from the discussion and action on this item. He left the Council Chamber and asked Mayor Pro Tem Kelly to preside over the matter. Mr. Ortega reviewed the staff report, noting the consultant’s report and recommendations for amendment to the existing agreement, including performance provisions. If the Council authorized the transfer, those would be incorporated into the agreement. He said staff and the consultant were available to answer any questions. Councilman Crites noted items listed in Finding No. 7 in the staff report, which were suggested for inclusion or revision in the contract, and he asked whether this would be done as a result of Council’s approval of the assignment to Burrtec. Mr. Ortega responded that the recommendation was that Council would approve the assignment, with directive to the City Attorney to include those in the new agreement. Mayor Pro Tem Kelly asked whether all the problems had been resolved with regard to walk-in service and gated communities. Acting Director of Special Programs Frankie Riddle responded that those issues had been negotiated and resolved. She said the cost would be $8.22 per month, to include one trash bin and one recycling bin. Upon further question by Mayor Pro Tem Kelly, she said there would be additional costs for a green waste bin or another trash bin. Upon question by Councilman Crites, Ms. Riddle responded that staff had no additional issues on this contract other than those listed in the staff report. Councilman Crites noted that there were relatively few complaints about the City’s trash franchise, with only one or two telephone calls a year. He said the City had a good system, staff does a good job, the waste company is a good partner, etc. PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 27, 2006 11 Mayor Pro Tem Kelly noted that this approval was assuming that Burrtec would do the same good job that Waste Management had been doing. Councilman Crites moved to, by Minute Motion, approve of the assignment of the Solid Waste Franchise (Contract No. C17230) to Burrtec Waste Industries with the provisions of Findings Nos. 6 and 7 and as stipulated within the HFH Report. Motion was seconded by Benson and carried by a 3-0 vote, with Mayor Ferguson and Councilman Spiegel ABSENT. C. 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. Housing Authority Administrator Janet Moore noted that the developer of Sares Regis had approached the City about a first amendment, in order to include an in-lieu fee that was not included in the original agreement. She said this was originally supposed to be a rental project, with 20 percent (64 units) dedicated to moderate income households. The developer had opted for an immediate conversion, and these units would now be for-sale condominiums. She reviewed the report in detail. Upon question by Councilman Crites, she responded that the $9.6 million in-lieu fee was not adjusted for CPI. Councilman Crites noted the reason for the fee was so that the City could turn around and buy more affordable housing. However, given the cost of housing, by the time the City receives that money, the amount of housing it would buy is not what it would buy today. For that reason, he suggested the amount should be adjusted by the increase in the housing market; otherwise, the City would be losing money on this. He noted that if it took three years for this to happen, given experience of the last three years, the amount of housing the City would be left with would be 20 to 30 percent lower than what it would buy right now. MR. GREG ALBERT, Vice President/Senior Project Manager for Sares Regis, 18825 Bardeen Avenue, Irvine, CA 92612, said they intended to bring units on-line beginning in November 2006. As far as there being any appreciation in the prices of homes, he did not see that being an issue. With regard to timing, he felt the project would be built out, at the most, in two years rather than three, and the entire $9.6 million would have been paid by then. Although, he agreed Councilman Crites made a valid point about whether or not the market will continue to be this strong over the next two years, as most people were under the impression that it would not. He felt the proposal was fair at $30,000 per unit. Mr. McCarthy stated that if what Mr. Albert was saying was correct, and it would happen very quickly, then the CPI would be very nominal; however, if PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 27, 2006 12 for some reason they get delayed, then the CPI would not be nominal. If that was the condition of Council’s approval, staff would proceed in that manner. MR. ALBERT said he felt that would be fair. Councilman Crites said he was not sure the Council was really looking at CPI or buying something that was based on the average increase across the economy – this was about buying housing. He felt whatever index this is tied to ought to be tied to housing. Mr. McCarthy asked Finance staff if it was possible to break out in the CPI index what the inflator is for housing. Assistant Finance Director Luis Espinoza responded that he would have to look into it. Councilman Crites observed that if housing is going up as it is, the Council should make sure the City is net-even at the end. MR. ALBERT asked if it would be fair to request that Sares Regis be given some sort of time limit (i.e., a two-year window) to complete everything. After that point, they could go back and review the balance of the fee to be paid and adjust it accordingly, upward or downward, if necessary. Mayor Ferguson asked what affordability, if any, was left with this condo conversion. Ms. Moore responded there would be none in this project. Mayor Ferguson said his concern was that this was the first developer to take advantage of the City’s high density bonus, and a major component of obtaining that bonus was affordability. When the developer was doing apartments, there was some discussion about ownership opportunities over time for people who pay rent. If the affordability the City was getting permanently with this project was taken away, he wondered whether $9.6 million was enough to replace it. Ms. Moore responded that preliminarily, staff had looked at what was done as an agency in the recent past. It was determined that the City can do similar housing and possibly bring it down to a lower affordability level, which is the reason the request was brought forward. Mayor Pro Tem Kelly said he understood the concern but noted that he felt the Consumer Price Index (CPI) was probably going to go up no matter what; however, housing had more of a chance to go down with saturation. He saw this as a good thing and felt very strongly that it was an opportunity for the City to use the money to accomplish more with affordable housing. Councilman Crites suggested that staff be directed to bring back a report on how the City will be made net whole through the use of these monies and PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 27, 2006 13 what mechanism should/should not be adopted with the agreement of the developer. Mayor Pro Tem Kelly said that to him, this becoming an ownership-type project was incentive to move ahead and follow staff’s recommendation. Councilman Crites moved to, by Minute Motion, continue this matter to the meeting of May 11, 2006, with staff directed to provide a report on how the City will be made whole with the use of said funds and what provisions would be required to accomplish same. Motion was seconded by Benson and carried by a 4-0 vote, with Councilman Spiegel ABSENT. D. CONSIDERATION OF A REQUEST FOR TRAFFIC SIGNAL PREEMPTION SYSTEM FOR LAS PALMAS COUNTRY CLUB EMERGENCY GATE ON MONTEREY AVENUE (City of Rancho Mirage, Applicant). Mayor Ferguson noted that he had discussed this matter with subcommittee members Mayor Pro Tem Kelly and City Manager Carlos Ortega. In light of the fact that the City of Rancho Mirage is moving forward next Thursday with a consulting agreement on its agenda, the subcommittee suggested passing this issue on to the consultant the City of Palm Desert hires and have him analyze the best possible temporary solution before continuing this matter indefinitely and perhaps thereby sending the wrong message to Palm Desert’s neighbors. Mr. Greenwood agreed. Mayor Pro Tem Kelly moved to, by Minute Motion, authorize staff to work with Rancho Mirage’s consultant studying the Monterey Avenue corridor in order to consider a temporary solution for the preemption system until the comprehensive study is completed. Motion was seconded by Crites and carried by a 4-0 vote, with Councilman Spiegel ABSENT. XI. CONTINUED BUSINESS A. CITY COUNCIL REVIEW OF AN ARCHITECTURAL REVIEW COMMISSION DECISION, DENYING A REQUEST FOR APPROVAL OF 14- FOOT HIGH SOUND BARRIER WALL SYSTEM (GLASS BLOCK TYPE) AT THE SOUTHWEST CORNER OF HIGHWAY 111 AND PAINTER’S PATH (72-191 HIGHWAY 111), PALM DESERT Case No. MISC. 06-04 (South Beach Restaurant & Nightclub, Applicant) (Continued from the meetings of March 9, March 23, and April 13, 2006). Mr. Erwin asked that the Council continue this matter to the next meeting. PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 27, 2006 14 Councilman Crites moved to, by Minute Motion, continue this item to the meeting of May 11, 2006. Motion was seconded by Kelly and carried by a 4-0 vote, with Councilman Spiegel ABSENT. With City Council concurrence, Continued Business Item B was considered jointly with Public Hearing Item E. B. CONSIDERATION OF AN APPEAL TO A DECISION OF THE HISTORIC PRESERVATION COMMITTEE RELATIVE TO HISTORIC SITE CLASS DESIGNATION OF PALM DESERT LODGE, LOCATED AT 74-527 HIGHWAY 111 (SOUTHEAST CORNER OF HIGHWAY 111 AND DEEP CANYON ROAD), PALM DESERT Case No. HPC 06-01 (Palm Desert Lodge, LLC, Michael Noto, and George Demos as Trustee of the Demos Trust, and Daniel Brush as Trustee of the Peter Demos Living Trust, Appellants) (Continued from the meeting of March 23, 2006). Please see discussion and action taken with Public Hearing Item E. C. REPORT ON THE HISTORIC SITE PRESERVATION ORDINANCE (Continued from the meeting of March 23, 2006). Mr. Hamidzadeh noted that the contract was in the hands of the City’s consultant and was being reviewed for return to the City Council. Mayor Pro Tem Kelly said he felt the ordinance was a good one and that staff should not go with the direction of just one Councilmember. With City Council concurrence, the report was received and filed. With City Council concurrence, Continued Business Item D was considered jointly with Public Hearing Item E. D. CONSIDERATION OF RECOMMENDATION BY THE HISTORIC PRESERVATION COMMITTEE RELATIVE TO IDENTIFYING A POTENTIAL HISTORIC SITE, PALM DESERT LODGE, 74-527 HIGHWAY 111 (Continued from the meetings of November 10 and December 8, 2005; February 9, and March 23, 2006). Please see discussion and action taken with Public Hearing Item E. XII. OLD BUSINESS None PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 27, 2006 15 XIII. PUBLIC HEARINGS With Agency Board/Authority Board/City Council concurrence, Public Hearing Items A and B were considered jointly with Financing Authority New Business Items A and B and Public Hearing Items A and B, as well as Redevelopment Agency New Business Items D and E. A. REQUEST FOR APPROVAL OF ACTIONS RELATED TO THE ISSUANCE AND SALE OF TAX ALLOCATION REVENUE BONDS (PROJECT AREA NO. 1, AS AMENDED), 2006 SERIES A (TAX-EXEMPT), AND TAX ALLOCATION REFUNDING REVENUE BONDS (PROJECT AREA NO. 1, AS AMENDED), 2006 SERIES B (TAXABLE), OF THE PALM DESERT FINANCING AUTHORITY (JOINT CONSIDERATION WITH THE PALM DESERT FINANCING AUTHORITY). Considered jointly with Redevelopment Agency New Business Items D and E, Financing Authority New Business Items A and B, and Public Hearing Items A and B; and City Council Public Hearing Item B below. Mayor/Chairman/President Ferguson declared the public hearings open and asked anyone who wished to come forward to speak on the subject to do so at this time. With no testimony offered, he declared the public hearings closed. Director of Redevelopment/Housing Dave Yrigoyen introduced Fiscal Consultant Ken Dieker and Bond Counsel Teresa Ho-Urano, who had done a lot of work on this project. Mayor Pro Tem/Vice President Kelly moved to waive further reading and adopt: 1) City Council Resolution No. 06-56, making findings of significant public benefit in connection with the issuance and sale of Tax Allocation Revenue Bonds (Project Area No. 1, As Amended), 2006 Series A (Tax-Exempt), and Tax Allocation Refunding Revenue Bonds (Project Area No. 1, As Amended), 2006 Series B (Taxable), of the Palm Desert Financing Authority; 2) Financing Authority Resolution No. FA-53, acknowledging finding of significant public benefit in connection with the issuance and sale of the Authority’s Tax Allocation Revenue Bonds (Project Area No. 1, As Amended), 2006 Series A (Tax- Exempt), and Tax Allocation Refunding Revenue Bonds (Project Area No. 1, As Amended), 2006 Series B (Taxable), and approving the issuance, sale, and delivery of such bonds. Motion was seconded by Benson and carried by a 4-0 vote, with Councilman/Commissioner Spiegel ABSENT. With Agency Board/Authority Board/City Council concurrence, Public Hearing Items A and B were considered jointly with Financing Authority New Business Items A and B and Public Hearing Items A and B, as well as Redevelopment Agency New Business Items D and E. PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 27, 2006 16 B. REQUEST FOR APPROVAL OF ACTIONS RELATED TO THE ISSUANCE AND SALE OF SUBORDINATE TAX ALLOCATION REVENUE REFUNDING BONDS (PROJECT AREA NO. 2), 2006 SERIES A, AND SUBORDINATE TAX ALLOCATION REVENUE CAPITAL APPRECIATION BONDS (PROJECT AREA NO. 2), 2006 SERIES B, OF THE PALM DESERT FINANCING AUTHORITY (JOINT CONSIDERATION WITH THE PALM DESERT FINANCING AUTHORITY). Considered jointly with Redevelopment Agency New Business Items D and E, Financing Authority New Business Items A and B, and Public Hearing Items A and B; and City Council Public Hearing Item A above. Mayor/Chairman/President Ferguson declared the public hearings open and asked anyone who wished to come forward to speak on the subject to do so at this time. With no testimony offered, he declared the public hearings closed. Director of Redevelopment/Housing Dave Yrigoyen introduced Fiscal Consultant Ken Dieker and Bond Counsel Teresa Ho-Urano, who had done a lot of work on this project. Mayor Pro Tem/Vice President Kelly moved to waive further reading and adopt: 1) City Council Resolution No. 06-57, making findings of significant public benefit in connection with the issuance and sale of Subordinate Tax Allocation Refunding Revenue Bonds (Project Area No. 2), 2006 Series A, and Subordinate Tax Allocation Revenue Capital Appreciation Bonds (Project Area No. 2), 2006 Series B, of the Palm Desert Financing Authority; 2) Financing Authority Resolution No. FA-54, acknowledging finding of significant public benefit in connection with the issuance and sale of the Authority’s Subordinate Tax Allocation Refunding Revenue Bonds (Project Area No. 2), 2006 Series A, and Subordinate Tax Allocation Revenue Capital Appreciation Bonds (Project Area No. 2), 2006 Series B, and approving the issuance, sale, and delivery of such bonds. Motion was seconded by Benson and carried by a 4-0 vote, with Councilman/Commissioner Spiegel ABSENT. C. REQUEST FOR APPROVAL OF A POLICY FOR THE REIMBURSEMENT OF STAFF COSTS ASSOCIATED WITH LAND-BASED FINANCING DISTRICTS. Mr. McCarthy noted that the City Manager had requested this item be continued. Mayor Pro Tem Kelly declared the public hearing open and invited testimony from the audience. No testimony was offered. PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 27, 2006 17 Councilman Crites moved to, by Minute Motion, continue this public hearing to the meeting of May 11, 2006. Motion was seconded by Benson and carried by a 3-0 vote, with Mayor Ferguson and Councilman Spiegel ABSENT. D. CONSIDERATION OF REQUEST FOR APPROVAL OF A TENTATIVE TRACT MAP AND ENVIRONMENTAL IMPACT REPORT TO ALLOW THE SUBDIVISION OF 11.87 ACRES INTO SEVEN (7) LOTS TO ALLOW CONSTRUCTION OF FOUR (4) SINGLE-FAMILY HOMES ADJACENT TO THE “CANYONS AT BIGHORN GOLF CLUB,” WEST OF INDIAN COVE AND SOUTH OF DEAD INDIAN CREEK; AND CONSIDERATION OF REQUEST ON THE SAME PROPERTY FOR A GENERAL PLAN AMENDMENT FROM LOW DENSITY RESIDENTIAL (STUDY ZONE) TO HILLSIDE RESERVE AND ZONE CHANGE FROM A COMBINATION OF PLANNED RESIDENTIAL, FIVE (5) UNITS PER ACRE AND HILLSIDE PLANNED RESIDENTIAL, TO HILLSIDE PLANNED RESIDENTIAL ON THE ENTIRE PROPERTY Case Nos. TT 31676, GPA 6-1, C/Z 6-1 (Cornishe of Bighorn, LLC, and City of Palm Desert, Applicants) (Continued from the meetings of February 23 and March 9, 2006). Mayor Pro Tem Kelly declared the public hearing open and invited testimony from members of the audience. No testimony was offered. Councilman Crites moved to, by Minute Motion, continue this public hearing to a date uncertain. Motion was seconded by Benson and carried by a 3-0 vote, with Mayor Ferguson and Councilman Spiegel ABSENT. E. CONSIDERATION OF A RECOMMENDATION BY THE HISTORIC PRESERVATION COMMITTEE RELATIVE TO IDENTIFYING A POTENTIAL HISTORIC SITE CLASSIFICATION FOR PALM DESERT LODGE, 74-527 HIGHWAY 111, PALM DESERT Case No. HPC 06-01 (Palm Desert Lodge, LLC, Michael Noto, George Demos as Trustee of the Demos Trust, and Daniel Brush as Trustee of the Peter Demos Living Trust, Appellants). The following is a verbatim transcript of this portion of the Council minutes. Key JF Jim Ferguson, Mayor RDK Rachelle D. Klassen, City Clerk AH Amir Hamidzadeh, Director of Building & Safety BAC Buford A. Crites, Councilman JMB Jean M. Benson, Councilmember RSK Richard S. Kelly, Mayor Pro Tem TS Tom Slovak, representing the Appellant DB Dick Baxley, representing the Appellant (Key, cont.) PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 27, 2006 18 KR Kent Routh, member of the Palm Desert Historic Preservation Committee JH Jan Holmlund, member of the Palm Desert Historic Preservation Committee ............................................................. JF Now, I’m going to need a little help on this next one because we’ve got one, two, three, four items on the Agenda for what looks like consideration of the same thing. RDK You would be correct. JF Ali, what would you like us to do first? AH We would like to combine all of them and consider all of them under Item E of the Public Hearings. JF Okay, Item E is a public hearing, so why don’t I just go ahead and open it. Is there any staff report prior to the public hearing that you’d like to give? AH All of them probably would go at the same time. I could give it right now, if you want. JF Okay. Any questions of staff? Okay, then I’ll go ahead and...well, let me call the item first. It’s Consideration of a Recommendation by the Historic Preservation Committee Relative to Identifying a Potential Historic Site Classification for Palm Desert Lodge located at 74-527 Highway 111 in Palm Desert, California. I will go ahead and open the public hearing. BAC And is he going to give a staff report? JF I asked you if you wanted one... BAC No, you asked if I had questions. JF I asked if he had a staff report. AH Again, it’s a little bit confusing, but the four items...let me go on by describing that first. The four items are...even though they’re almost the same project, but...one of which has been continued since November, and it’s just been continued since. The other item is a recommendation by the Historic Preservation Committee for a classification for Palm Desert Lodge. The third item is an item for our consultant to do the ordinance and (unclear) and an update...I believe the City Attorney has that update. And the fourth item is an appeal to the recommendation by the Historic Preservation Committee. JF Okay, and what’s the one that we’ve just been continuing since November? PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 27, 2006 19 AH That item was the original item we wanted to recommend to the City Council a recommendation by the Historic Preservation Committee, but we never...we found out that we do not have the time to research it enough, so it was always continued to actually do the research. JF One and two kind of collapse together, then. AH Yes. JF Well, why don’t we start with the appeal, which might give us enough information from all interested parties to help us form a recommendation and what we should do with the consultant. AH Okay. The Historic Preservation Committee met on February 27 th and voted unanimously on Palm Desert Lodge being classified as Class 5, Class 5 being that the Palm Desert Lodge can be identified as a local...can be recognized on the local level, and there is no stay of demolition...there is just photography and some archiving of documentation, local level, and thus Class 5, which is the recommendation by the Historic Preservation Committee as well as staff. The appellant has appealed that decision. I believe they are here for their recommendation for why they’re appealing it, but they recognize the site as no historic value and... JF Well, we’ll let them make their own arguments. AH ...make their own arguments, absolutely. JF Okay, then why don’t I start with the appellant, since it is his hearing. JMB Can I ask...I don’t know if this is the time or not, but in establishing all of this, is there any provision that...and I understand that they can tear it down...but is there anything in here that says they have to put a plaque on the property someplace showing what it is because some places you go, and you go into old buildings, and they’ll say this was formerly the... AH I believe our ordinance for Class 5 asks for archiving and photography on it. I don’t believe a plaque is required on this particular classification. JMB But could it be? AH No, I don’t think it is required for... JMB No, but could it be? PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 27, 2006 20 AH Of course, we can al ways require a plaque, absolutely. And by the way, as we are revising the ordinance, that might be one of the items that we are trying to address in the new ordinance. JMB Well, I, for one, would like to see that because of the fact that I understand the tearing it down and all that, but it’s also nice when you see a plaque, which can certainly be inserted someplace “This was formerly such and such” because as people come back and visit the area, they know what that was at one time....oh, my folks honeymooned here or something, you know. I just think it’s nice to let people know, and it’s not hurting any new building in any sense to put up something, so if that’s the time to consider it, I think that’s something we should do. AH Absolutely. RSK We might want to consider going other places and putting plaques up for places we know that the City could (unclear) I could think of some right now that would be interesting if there’s a plaque there. JMB Right. JF Okay, why don’t we start with the appellant, who can state his reasons for the appeal, and then I’ll invite anybody who wishes to comment on the appeal or have other opinions about all three of these, now three of these issues to step forward as part of an overall public hearing. TS Good evening, my name is Tom Slovak, and I am the attorney for the owners of the Palm Desert Lodge. And just for the record, the owners are Peter Demos Trust (Michael Noto, Trustee), Demos Trust (Daniel Noto, Trustee), and George Demos as his sole and separate property. This is a family-owned property, and the reason we are here is that there was a recommendation from the Historic Preservation Committee, and there is now a report recommendation to the Council under the present ordinance, called the Historic Preservation Ordinance for short. To understand why we’re appealing, you really have to read the ordinance and understand it, and you also have to understand what the motions are. To get to the end first, we are taking the position that the evidence before the committee, or the board, we presented to the Preservation Committee, established without any question that this building did not meet the criteria of the ordinance to be designated historic. And that the recommendation that it be designated as Class 5, which on its face has been suggestive to only have an adverse impact to the extent of having to archive certain things, take pictures, which we have no opposition to. By reason of the ordinance as written, and by reason of the motion, which is now being sought to be recommended by the Building & Safety Department, there are additional restrictions. And the way to begin understanding that is...if I may, is to hand out to the committee the motion that was adopted and then also the Building & Safety Department recommendation. We can begin there, because without that PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 27, 2006 21 understanding, I think there’s confusion as to what we’re talking about...if I could begin with that and hand it out. If there’s an (unclear), I can put it up for all to see, but I do have copies for the Council and the City Attorney, if you’d like. JF Why don’t you hand out copies, and we’ll get the overhead as well. TS Before commencing that discussion, as they work on the (unclear), let me just make two other brief preliminary remarks. I believe that the owners of Palm Desert Lodge are the first property owners (unclear) are the first property owners who have walked through this procedure, and I believe that in the process, we have come to understand and look at this ordinance as carefully as anyone. I’ve looked at every ordinance in the Coachella Valley. I have some of them here. I’ve looked at every case in the United States on the Historic Preservation Ordinance, and I’ve studied this ordinance, and what...there are major problems with this ordinance, not the least of which is there are ambiguities in definitions. Most historic preservation ordinances, just so you know, say it’s not historic, and then they put restrictions on those that are historic. As I will point out to you here, if you go through the process, there’s a Class 1 site not qualified for designations, but this is not eligible for review for two years. So you never have a final end to this process. If you look at Class 5 (unclear) which is of no legal consequence, the State enabling act statute puts restrictions on a historic site where a city can have the same restrictions on its usage. Mr. Baxley is here, and (unclear) designated historic (unclear) has the same adverse impact (unclear)....to the extent that we designate it Class 5, go through this entire appeal process, which I’ll talk about in a second because the appeal process is an appeal from a recommendation, which is internally inconsistent within the ordinance. We are subject to uncertainty, and what we are asking is that the property be designated not historic, and the only restrictions be placed upon this property be that of any other zoning on property in the area. If you look at the recommendation now (unclear)...Class 5 and so on and so forth, and then it is also recommended that in the event that the owner should ever decide to cease the operation of this facility, that every reasonable effort be made for adaptive reuse of this property and/or select features. Now, at this moment, we’ve lost two sales. Speaking to the issue of property appreciation and depreciation, by reason of this designation and originally by a committee of the City, not its Council, we lost a major sale. We are now here six months later. We hope to be able to sell the property, but I can represent to this committee, we will lose six or seven figures by this delay. Having said that, we now have a recommendation that the...it be Class 5. The evidence before the committee, unrebutted in the record, through the testimony of John Criste and that of Mr. Baxley, to that of the owner...the owner’s accountant was here also present, Mr. Brush, was that none (unclear) none of the standards by which one would normally designate a property historic were met. Secondly, the property itself is of really two parts. The portion that seems to be most...most people seem to be enamored with, if you could ever be enamored with that property architecturally, is the front portion, which is, by the way, less than 50 years old. The minimum criteria for designation is, at a minimum, it must be 50 years old. It’s the PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 27, 2006 22 back portion that’s 50. The front portion, that people seem to think is interesting architecturally, is less than 50 years old. Next, one of the issues, legally, that is of serious concern in any city, since I do a fair amount of condemnation work, is this. When a city goes out and seeks to condemn real property, Council is involved, very serious assessments are made by Council in the procedures before a city goes out and condemns property. The legal consequence of improperly designating the city as historic when it does not meet the standards is to engage in an act of inverse condemnation, which then results, obviously, in contested issues. I would submit for the general point that the ordinance itself is unconstitutional as written and as applied. I would submit as a general matter that a committee going out and designating 160 pieces of property in the City, which has to be disclosed by anybody seeking to sell those properties...it’s a matter of law, otherwise you commit fraud...impacts their marketability. This is done without a study. It’s done without legal counsel review, and it’s done without any financial assessment as to its consequences to the City. I’ve presented the packet of materials that we submitted and the transcript of the hearing in my appeal. I would note, and I do thank the Council and the Mayor for the continuance last time...on my way here, I had a family emergency that I won’t go into, and it was realized, unfortunately. So I appreciate the consideration given. I really would be willing to answer any questions. I don’t want to go on too long, as lawyers are wont to do, and repeat the written materials, but if people have not really studied this and read our statements by John Criste and read the evidence that was presented, I’d be happy to summarize if briefly, if anyone has an interest in my doing so. JF Let me ask you a quick question if I can try and summarize your argument. You believe that any historic designation whatsoever will impair the value and the marketability of your property, you’re willing to archive and photo and do whatever it is, but it’s the stamp of “historic” even in any category that you believe clouds your title and devalues your land. TS That is true....as this ordinance is written, yes. JF Okay. Any questions for the appellant? Okay, thank you. Others wishing to speak on this matter may... TS Just for the record, I did have Mr. Baxley here if you wish to have evidence put forth on the conclusion that I just represented. JF If you wish him to, that is up to you. Anybody else wishing to speak at this time? DB Good afternoon, ladies and gentlemen. My name is Dick Baxley, 73-712 Alessandro, here in Palm Desert. If the property was designated as a historic site, it will have a strong impact, negatively, on the valuation for any perspective buyer and is likely to kill the transaction. You should be aware of that. The degree is PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 27, 2006 23 always how impactful it is, but that will definitely have a negative impact. Thank you for your time. Any questions? JF Nope. KR My name is Kent Routh. I’m at 73-310 Palm Desert Drive, and I’m on the Committee for Historic Preservation. The issue that has been raised indicates to me that we do need... JF Would you pull the mic a little bit closer. KR ...we do need to redo our City ordinance in this matter. We took the recommendation of staff for the category 5, figuring in that way that we would not be a burden to the owners and that we would not, in fact, delay any of their commercial transactions, as the category does not...does allow them to demolish the...that was my understanding of it. We are, at the moment, asking the City Council to provide us with a consultant to change the ordinance so that it reads internally and that we all know what page we’re on. If the Council has any more questions of me, I’m happy to answer them. JF Any questions? I would only note that we appreciate the efforts of the Committee, and I think a lot of the problems that we’re having are a result of the ordinance, so we’ll be getting to that next. KR Thank you, Your Honor. JF Anybody else wishing to speak at this public hearing on the appeal? JH My name is Jan Holmlund, and I’m on the Committee for Historic Preservation. I wanted to speak to the issue of plaquing. The City Council at any time can determine whether or not they wish to have a plaque put on any building with the ordinance as it now stands. I have in my possession 26 California ordinances. The ordinance from the City of Palm Desert is as good as the majority of those ordinances, and I’ve spent a number of years in historic preservation planning. I would say that I am somewhat confused by the presentation from the attorney in that we understood this property was not for sale, it was to be leased and the buildings demolished. That was what we were given to understand when it was presented to us. So I don’t think that we even considered that we might be standing in the way of a property sale. But be that as it may, this is still a community, and that businessman is still doing business in this community, and as such, he needs to live with the issues and the rules and the regulations that all the people want for their community. So when we went through the choices we had, I was inclined, actually, to give it a Class 6 and did so, made a motion to that effect, the reason being the first motel built on that property is actually 50 years old, and it does meet the Federal and State criteria. But after further discussion and looking at the PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 27, 2006 24 property and listening to the reasoning by the attorneys and the property owner, we felt that we were far better able to achieve something wonderful for that corner with classification number 5. The other element that entered into our thinking is that we really did not know what the City planning was for Highway 111, and that makes a very big difference when you’re suggesting what to build on a corner on that particular highway. So having said that, I would like to urge you to think in terms of this not being a confusing issue on classification number 5 and historic preservation but possibly a confusing issue as to what the City can demand of its property owners. Thank you. JF Thank you. Anybody else wishing to speak at this time? Seeing no one, I will then close the public hearing and ask for comments/suggestions from the Council. Mr. Kelly. RSK You want me to go first? JF I thought you raised your hand. RSK No, I was signifying to my colleague that he could proceed if he would like to, but whatever... BAC No, I was just going to say I listened to the comments. We often hear comments about everything that we do that someone doesn’t agree with...it depreciates their property, and those are usually remarkably subjective judgments. This category 5 notes that the person can demolish it as long as they photograph it and do documentation and that, if possible, you try to use some of the existing features in a new building, which seems like a reasonable thing. And it does not appear to be in the list bit onerous, in spite of the legal caterwauling that we have heard, and so I, for one, am going to move to have it as a Class 5 designation, or would be supportive of such a motion, noting that it does not intend to hold back the owners from future uses that have nothing to do with the existing use. RSK Seems to me that Class 5 is a very fair class to be labeled. It doesn’t stop them from proceeding. I have a difficult time seeing how that would affect the sale, and it seems to me that any good citizen would want to do exactly what Class 5 says that they should do, so I have a difficult time understanding where the problem is if you want to be a good citizen and a part of the City of Palm Desert. JMB (unclear) comment I think they’re all right on. JF Well, I... RSK I’d second your motion. PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 27, 2006 25 JF Okay, there’s a motion and a second, and I’ll put my footnote in at the end. I don’t like our ordinance. I haven’t looked at 26 or every case in the country, but I see what the appellant has gone through, right, wrong, or indifferent, and I do believe that before we impair or at least perceivably impair somebody’s property rights, it ought to come to the Council, and this has gone on since November, as Ali said...we’re now coming into May, and....good Lord, we handle Planning Commission appeals and Architectural Review appeals within 14 days, typically, and I just...I don’t think the ordinance is right as crafted. I think it ought to be reviewed. I think everybody at the Study Session that I was at the Historic Preservation Committee pointed out flaws in the ordinance. Our City Attorney has reviewed it and said it needs some fixing. But if the goal of the Committee and the goal of this community and the goal of this Council is to preserve photographic records of that building and put a plaque saying this is once where the Palm Desert Motor Lodge is, I don’t see why we can’t do that. And if the applicant thinks stamping it “historic” is going to impair his property value, I don’t see why we have to stamp it “historic.” That way, it seems to me the appellant wins, the Preservation Committee gets what it wanted, we wind up with a better ordinance in the process, and hopefully the next person who goes through this process will understand the rules of the game. So I’m personally not going to vote in favor (unclear) against recognizing the historic significance of the Palm Desert Motor Lodge...I just would like to do so in a way that doesn’t harm or at least in the appellant’s eyes harm his property value. Okay, there’s been a motion and a second. Please vote. RDK Motion carries 3-1, Mayor Ferguson voting NO. JF And with that, I’m going to have to excuse myself. I’ve got to be out of...down in Mexicali by seven o’clock tonight, so I’m going to turn the balance of the meeting over to Mayor Pro Tem Dick Kelly. For clarification purposes, Councilman Crites moved to, by Minute Motion, approve a Class 5 Designation for the Palm Desert Lodge, with the understanding that it is not intended to hold back the owners from future uses that have nothing to do with the existing use. Motion was seconded by Kelly and carried by 3-1 vote, with Mayor Ferguson voting NO and Councilman Spiegel ABSENT. NOTE: Mayor Ferguson left the meeting at 5:13 p.m. PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 27, 2006 26 F. CONSIDERATION OF APPROVAL OF THE UNIVERSITY PARK MASTER PLAN (UPMP), CHANGE OF ZONE TO ADD THE PLANNED COMMUNITY DEVELOPMENT OVERLAY ZONE (PCD) TO THE EXISTING PR-5 ZONING, AND NEGATIVE DECLARATION OF ENVIRONMENTAL IMPACT AS IT RELATES THERETO FOR 190 +/- ACRES GENERALLY LOCATED SOUTH OF GERALD FORD DRIVE AND EAST OF PORTOLA AVENUE (74-500 COLLEGE DRIVE) Case No. C/Z 06-04 and University Park Master Plan (Palm Desert Funding Company, LP, and Desert Wells 237, LLC, Applicants). Planning Manager Steve Smith reviewed the staff report in detail and offered to answer any questions. Upon question by Councilmember Benson, he responded that the Master Plan provided for a basic height limit of 24 feet, with the ability through an exception to go to 28 feet upon approval of the Architectural Review Commission and Planning Commission. Councilman Crites noted that under the existing ordinance, one story has 18 feet, with the developer having the ability to request 24 feet; two-story is a maximum of 24 feet under the existing ordinance, with the ability to request an exception if there is something meritorious. Mr. Smith agreed. Councilman Crites asked why staff felt that should be changed and why a one-story house should be guaranteed to be 24 feet. Mr. Smith responded that the intent was not to have one-story buildings at 24 feet; however, they could be approved up to that height. Councilman Crites asked if there was any reason not to use what the City has right now, and if the developers feel they have something really incredibly architecturally wonderful, they can come in and request the additional height. Mr. Smith stated that staff would have no problem with that. With regard to the parks area, Councilman Crites said he noticed that nowhere in the various set of parks was there a community garden, and with the density of this project, he felt that was something that should be included. With regard to energy conservation, he felt it was important to make sure that whatever roofing they do is compatible with economical installation of solar panels and that the home is designed to maximize appropriate roof orientation. Mayor Pro Tem Kelly suggested removing the two odd-shaped lots at the southeast corner of Portola and Gerald Ford and putting two lots back in at Pacific Avenue and Gerald Ford so as to maximize open space without the developer losing any lots. Councilman Crites also asked whether that linear PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 27, 2006 27 area at Pacific and Gerald Ford was a drainage area. Mr. Smith responded that it was a retention area, which needed to be at a certain capacity. He said that while staff would have no problem with the developer doing as suggested by Mayor Pro Tem Kelly; it was something that needed to be looked at closely to make sure the necessary capacity was maintained, and perhaps only one lot could be added at that location. Mayor Pro Tem Kelly declared the public hearing open and invited testimony SUPPORTING or OPPOSING this request. MR. TOM HOVER, representing Palm Desert Funding Company, noted the retention basins were needed on-site to handle the water runoff. In response to Mayor Pro Tem Kelly’s suggestion relative to increasing open space by removing lots at the southeast corner of Portola and Gerald Ford, he said that area had just been redesigned to create more open space on the corner. With regard to the parks, he noted they had been working for the last eight months with the City’s Parks Department, and what was before Council was a result of these discussions to include the amenities and designs that Department wanted to see. With no further testimony offered, Mayor Pro Tem Kelly declared the public hearing closed. Upon question by Councilman Crites, Mr. Smith responded that it was the current City policy that height exceptions come to the City Council for review. Councilman Crites added that any action of the Planning Commission can come to the Council on a call-up. With regard to the issue of extra density, he suggested that applicants be given some idea of what the City is looking for (criteria) should they want to come in asking for height exceptions. Councilman Crites moved to waive further reading and pass Ordinance No. 1116 to second reading, approving the University Park Master Plan and Planned Community Development Overlay Zone (PCD), Case No. C/Z 06-04, as amended with regard to the Master Plan, as follows: 1) Revise the Master Plan to use existing height provisions with ability for height exceptions to be considered in keeping with present policy, along with providing a set of criteria for such exceptions; 2) Energy Conservation Component to provide one roof design so as to accommodate solar panels and home design to maximize appropriate roof orientation for solar panels; 3) provision for a Community Garden in one of the existing drainage basin or park areas; 4) maximize open space area at the southeast corner of the intersection of Portola Avenue and Gerald Ford Drive. Motion was seconded by Benson and carried by a 3-0 vote, with Mayor Ferguson and Councilman Spiegel ABSENT. PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 27, 2006 28 G. CONSIDERATION OF PALM DESERT POLICE DEPARTMENT REQUEST FOR APPROVAL OF JUSTICE ASSISTANCE GRANT (JAG) FUNDING PROPOSAL FOR TARGET TEAM BICYCLES, VIDEO CAMERA, AND DIGITAL CAMERAS FOR PATROL OPERATIONS. Mayor Pro Tem Kelly declared the public hearing open and invited testimony in FAVOR of or in OPPOSITION to this request. With no testimony offered, he declared the public hearing closed. Councilman Crites moved to, by Minute Motion, concur with the Palm Desert Police Department’s proposal to accept approximately $11,000 in Edward Byrne Memorial - Justice Assistance Grant (JAG) Funds for 2006 to fund the purchase of Target Team bicycles, a video camera, and three digital cameras for patrol operations. Motion was seconded by Benson and carried by a 3-0 vote, with Mayor Ferguson and Councilman Spiegel ABSENT. XIV. REPORTS AND REMARKS A. CITY MANAGER None B. CITY ATTORNEY Mr. Erwin asked the City Council to consider adding the following matter to its agenda. Upon motion by Crites, second by Benson, and 3-0 vote of the City Council, with Spiegel and Ferguson ABSENT, the following consideration was added to the agenda. 1. Consideration of a Street Vacation for the Southerly Half of New York Avenue West of Virginia Avenue. Mr. Erwin distributed a copy of a letter from Habitat for Humanity of the Coachella Valley, Inc. He said the City Council was being asked to set a public hearing for its second meeting in May to consider vacating a portion of New York Avenue west of Virginia Avenue–a very short street, less than 100 feet long. He said this will allow Habitat for Humanity to construct a single-family home on the lot there, which was donated to them by the City, as they want to participate in Habitat International’s Blitz Build Event during the first week in June. PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 27, 2006 29 Councilman Crites moved to, by Minute Motion, set a public hearing for the meeting of May 25, 2006, to consider the subject street vacation. Motion was seconded by Kelly and carried by a 3-0 vote, with Mayor Ferguson and Councilman Spiegel ABSENT. C. CITY CLERK 1. Reminder of Special City Council/University Planning Committee Meeting, Tuesday, May 9, 2006, 2:00 p.m., Administrative Conference Room. Councilman Crites noted that neither he nor Mayor Ferguson would be able to attend the May 9th Council meeting. In addition, he said Mayor Ferguson had noted he would be attending the May 16th Cal State Board of Regents meeting in Long Beach. After further discussion, it was determined that at least three Councilmembers planned to attend said meeting (Crites, Kelly, and Ferguson), and consideration would be given to traveling to Long Beach the evening before. D. PUBLIC SAFETY o Fire Department None o Police Department None E. MAYOR AND MEMBERS OF THE CITY COUNCIL o City Council Requests for Action: 1. Portofino – Councilman Crites asked staff to take all necessary steps to address the state of the undeveloped area at this project site, especially the fence along the west side of Portola Avenue. He felt it was an embarrassment and that the City should be pursuing an enforcement action. Mr. Croy responded that section of property had been sold by Portofino’s owner to another party. Staff had been trying to get in touch with the party for that reason but would now pursue the matter with greater urgency. City Councilmembers concurred. PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 27, 2006 30 o City Council Committee Reports: None o City Council Comments: None XV. ORAL COMMUNICATIONS - C None XVI. ADJOURNMENT Councilmember Benson moved to adjourn the meeting at 5:46 p.m. Motion was seconded by Crites and carried by a 3-0 vote, with Mayor Ferguson and Councilman Spiegel ABSENT. JIM FERGUSON, MAYOR ATTEST: RACHELLE D. KLASSEN, CITY CLERK CITY OF PALM DESERT, CALIFORNIA