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HomeMy WebLinkAboutPRELIM - CC - 03/22/07 �� A�r PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING THURSDAY, MARCH 22, 2007 CIVIC CENTER COUNCIL CHAMBER I. CALL TO ORDER - 3:00 P.M. Mayor Kelly convened the meeting at 3:04 p.m. II. ROLL CALL Present: Mayor Pro Tem Jean M. Benson Councilman Jim Ferguson Councilmember Cindy Finerty Councilman Robert A. Spiegel Mayor Richard S. Kelly 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 Stephen Y. Aryan, Assistant to the City Manager Rachelle D. Klassen, City Clerk Amir Hamidzadeh, Director of Building & Safety Steve Smith, Acting 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 Frank Taylor, Asst. Chief, Palm Desert Police/Riverside Co. Sheriff's Department Grace L. Mendoza, Deputy City Clerk 111. ORAL COMMUNICATIONS - A (CLOSED SESSION ITEMS) None Y IN TES DRAFT PRELIMINAR M U REGULAR PALM DESERT CITY COUNCIL MEETING MARCH 22, 2007 IV. ADJOURN TO CLOSED SESSION Request for Closed Session: Conference with Real Property Negotiator pursuant to Government Code Section 54956.8: 1) Property: APN 637-190-024 Negotiating Parties: Agency: Carlos L. Ortega/Justin McCarthy/City of Palm Desert/ Palm Desert Redevelopment Agency Property Owner: PDCC Development, LLC 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 Public Employment pursuant to Government Code Section 54957: Title of Position: City Attorney Mr. Erwin asked the City Council's consideration of adding several items to the agenda for Closed Session consideration. Upon a motion by Spiegel, second by Finerty, and 5-0 vote of the City Council, the following items were added to agenda, as listed, along with adjourning to Closed Session at 3:05 p.m. Mayor Kelly reconvened the meeting at 4:03 p.m. 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 Conference with Legal Counsel regarding significant potential to initiate litigation pursuant to Government Code Section 54956.9(c): Number of potential cases: 1 2 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING MARCH 22, 2007 V. RECONVENE REGULAR MEETING - 4:00 P.M. A. REPORT ON ACTION FROM CLOSED SESSION. None VI. PLEDGE OF ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA - Mayor Pro Tem Jean M. Benson VII. INVOCATION - Mayor Richard S. Kelly VIII. ORAL COMMUNICATIONS - B Mayor Kelly wished Mayor Pro Tem Benson a happy birthday today. MR.TIM SALVADOR, Palm Desert, CA, asked the City Council again to reconsider its action on the aquatic center issue to include the flowrider feature. He hoped the information he presented at the last meeting had been reviewed and was of assistance. MR. LARRY KOSMONT, owner of the Palm Desert Country Club, 77-200 California Avenue, Palm Desert, CA, said he'd just returned from the Golf Inc. magazine's Annual Awards Dinner in Austin, Texas, last night where Palm Desert Country Club was recognized with the "Renovation of the Year" award. It was one of three presented there, with many of the major players and investors in attendance, including Tom Kite, who said he'd won his first PGA event tournament, the Hope For Tomorrow, at Palm Desert Country Club in the late '70s. He noted that Palm Desert Country Club was selected from five finalists: Kaanapali Golf Course, Lahaina, Maui, HI; Industry Hills Golf Club - Eisenhower Course; Indian Wells Golf Resort; and French Lick Resort in Indiana. Therefore, he said it was a coveted award, with a lot of good cheer and support from the golf investment community, who thought this project was an outstanding one in terms of the interface between community and golf. He was proud to bring the award home to Palm Desert and thanked the City Council for its support throughout some tough times on the project. The award would provide a good running start for the renovated Club. Mayor Kelly extended mutual appreciation to Mr. Kosmont for the award and the efforts put into the renovation. He also looked forward to the City Council officially recognizing this accomplishment at a later date. MR. BILL BLUE, Chairman of the Palm Desert Golf Cart Parade, thanked the City Council for its support of the event. He was pleased to present proceeds in the amount of $7,000 from the January 2007 Parade to Michael Barnard of Desert Samaritans for the Elderly, this year's selected charity. 3 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING MARCH 22, 2007 IX. AWARDS, PRESENTATIONS, AND APPOINTMENTS A. PRESENTATION TO RECOGNIZE CITY OF PALM DESERT/ PALM DESERT REDEVELOPMENT AGENCY EMPLOYEES FOR EXCEPTIONAL SERVICE — FEBRUARY 2007. Honoree AI Jimenez was unable to be present for today's recognition, and his presentation will be made at a later date. X. CONSENT CALENDAR A. MINUTES of the Regular City Council Meeting of March 8, 2007. Rec: Approve as presented. B. CLAIMS AND DEMANDS AGAINST THE CITY TREASURY - Warrant Nos. 178, 185, 186, 187, 191, and 192. Rec: Approve as presented. C. COMPLIANCE ANALYSIS AND INVESTMENT REPORTS for the Month of January 2007(Joint Consideration with the Palm Desert Redevelopment Agency). Rec: Receive and file. D. CITY COMMITTEE AND COMMISSION MEETING MINUTES. 1. Historic Preservation Committee Meeting of January 30, 2007. 2. Parks & Recreation Commission Meetings of February 6 and February 20, 2007. 3. Public Safety Commission Meeting of February 14, 2007. 4. Youth Committee Meeting of February 6, 2007. Rec: Receive and file. E. APPLICATION FORALCOHOLIC BEVERAGE LICENSE by Embassy Suites Pafm Desert Resort, 74-700 Highway 111, Palm Desert. Rec: Receive and file. F. APPLICATION FOR ALCOHOLIC BEVERAGE LICENSE by Mamacita's Restaurant, 74-991 Velie Way, #4, Palm Desert. Rec: Receive and file. 4 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING MARCH 22, 2007 G. REQUEST FOR ADOPTION of Resolutions Authorizing the Destruction of Paper pocuments that Have Been Digitally Imaged from the Department of Building & Safety. Rec: Waive further reading and adopt Resolution Nos.: 1) 07-15 - September 2006 Records; 2) 07-16 - October 2006 Records; 3) 07-17 - November 2006 Records. H. REQUEST FOR ACCEPTANCE OF WORK for Contract No. C250206 — Portola Avenue Median Enhancements Between Chicory Street and Fairway Drive(Project No.926-06)(Horizon Professional Landscape, Coachella,CA). Rec: By Minute Motion, accept the wark as complete and authorize the City Clerk to file a Notice of Completion for the subject project. I. REQUEST FOR ACCEPTANCE OF WORK for Contract No. C26140 — Civic Center Well Site Landscape Renovation (Project No. 920-06) (Hort Tech, Palm Desert, CA). Rec: By Minute Motion, accept the work as complete and authorize the City Clerk to file a Notice of Completion for the subject project. J. REQUEST FOR APPROVAL of Parcel Map No. 35155 (Palm Desert Redevelopment Agency, Applicant). Rec: Waive further reading and adopt Resolution No. 07-18, approving Parcel Map No. 35155. K. REQUEST FOR APPROVAL of Vendor for Safety Footwear for City Employees. Rec: By Minute Motion, approve Industrial Boot Company, Santa Ana, California, as the vendor to provide safety footwear for City Employees. L. REQUEST FOR APPROVAL of the Possession and Consumption of Alcohol in Connection with a Reception for Leadership Coachella Valley to be Held at the Palm Desert Visitor Center. Rec: By Minute Motion, permit the possession and serving of alcohol in connection with the subject event to be held March 28, 2007. 5 DRAFT PRELIMINARY MINUTES REGULAR PALM DESERT CIN COUNCIL MEETING MARCH 22, 2007 M. CONSIDERATION of a Request for Out-of-State Travel for Representatives of the City Council, Planning Commission, and City Staff to View Residential Projects Developed in Las Vegas, Nevada. Rec: By Minute Motion,authorize out-of-state travel fortwo members of the City Council, up to two members of the Planning Commission, and up to two staff members to view residential development projects in Las Vegas, Nevada. N. ANNUAL PUBLIC SAFETY COMMISSION REPORT for 2006. Rec: Receive and file. Upon motion by Spiegel, second by Ferguson, and 5-0 vote of the City Council, the Consent Calendar was approved as presented. XI. CONSENT ITEMS HELD OVER None XII. RESOLUTIONS A. RESOLUTION NO. 07-19 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, AMENDING PORTIONS OF RESOLUTION NO. 06-88, EXHIBIT "A" - SALARY SCHEDULE, SALARY RANGES, AND ALLOCATED CLASSIFICATIONS, RECLASSIFYING THE PLANNING MANAGER POSITION. Mr. Ortega noted the request from Assistant City Manager for Development Services to reclassify the title of the position to better reflect the job duties. He said the position would become vacant the following day, and this was the appropriate time to make the change before advertising for the new position. Councilman Spiegel moved to waive further reading and adopt Resolution No. 07-19. Motion was seconded by Benson and carried by a 5-0 vote. City Councilmembers recognized and publicly thanked the current Planning Manager/Acting Director of Community Development Steve Smith for his many years of good service to Palm Desert at this, his last City Council Meeting. His retirement from the City would be occurring at day's end tomorrow. 6 PRELIMINARY MINUTES DRi�I�T REGULAR PALM DESERT CITY COUNCIL MEETING MARCH 22, 2007 Xlll. ORDINANCES For Introduction: None For Adoption: None XIV. NEW BUSINESS A. CONSIDERATION OF REQUEST FOR SUPPORT OF THE SALTON SEA AUTHORITY PLAN FOR MULTI-PURPOSE PROJECT TO RESTORE AND REVITALIZE THE SALTON SEA. MR. RICK DANIELS, President of Economic Partnership and Executive Director of the Salton Sea Authority, noted he provided the Council with a copy of the plan adopted by the Authority Board which was amended to incorporate comments made by people throughout the two county areas. He also provided copies of resolutions from other jurisdictions as well as letters of support from other organizations. He added that it was his 107th presentation. Councilman Ferguson moved to: 1) Waive further reading and adopt Resolution No. 07-20, providing financial assistance and support to the Salton Sea Authority Plan for Multi-purpose Project; 2) by Minute Motion, appropriate $5,000 from the Unobligated General Fund to the Salton Sea Authority for community outreach programs. Motion was seconded by Finerty. Councilman Spiegel stated that based on the need,$5,000 would not go very far. He asked what was the likelihood of getting the money from the State and Federal Government to do what was needed. MR. DANIELS stated they were currently working with Congresswoman Bono's office and Congressman Fieldman's office, who represented the fmperial County, to get$26 million from the Federal Budget forthis year and planning to request $100 million for next year. Senator Channey filed a bill which passed last year, that will provide $47 million out of Proposition 84 for the Salton Sea Plan. He believed the Salton Sea Authority was on the verge of putting the plan towards construction, and it happened when the local jurisdictions,two waterdistricts,two counties, and the Torres Martinezjoined on a local plan. He believed they were close to having a conversion with the State and the alternatives they were considering; he was never more optimistic about the matter. He said sixteen years ago when he moved to 7 PRELIMINARY MINUTES DR�►FT REGULAR PALM DESERT CITY COUNCIL MEETING MARCH 22, 2007 the area, restoring the Salton Sea was argued about then, but with the help of elected officials and the newest Valley resident Barbara Boxer, they were now in a unique new position. He pointed out that other jurisdictions contributed a larger amount, Indio and La Quinta contributed $20,000; the funds are used for community outreach. Responding to question, he replied he did not request $20,000 from the City of Palm Desert. Councilmember Finerty stated only $5,000 was requested. Councilman Ferguson made the comment that Mr. Daniels underbid himself, but was encouraged to come back and ask for more. Mayor Kelly called for the vote and the motion carried by a 5-0. B. REQUEST FORAPPROVAL OF DESIGN CONTRACT FOR RENOVATION OF THE MOUNTAIN VIEW GOLF COURSE AT DESERT WILLOW GOLF RESORT (CONTRACT NO. C26360). Mr. Ortega referred to the staff report for bringing back the architect to renovate the golf course to its original design, noting the course was eight or nine years old. Councilman Spiegel moved to, by Minute Motion, approve: 1) The subject contract with Hurdzan-Fry Golf Design, Inc., Columbus, Ohio, in the amount of$50,000 for contract fees plus $10,000 for reimbursable expenses; 2) appropriation of $60,000 from Account No. 241-4195-495-8092 for this purpose. Motion was seconded by Finerty. Responding to question regarding the purpose of the contract, Mr. Yrigoyen replied the contract was for developing a plan with specifications for bringing back the lakes which had encroached the grass areas,dredge the lakes from sand build up, and redo the putt bunkers. Upon further question, he confirmed it was a cleanup housekeeping item. Mayor Kelty called for the vote, and the motion carried by a 5-0 vote. C. REQUEST FOR APPROVAL OF THE INSTALLATION OF BARRIERS TO PREVENT ACCESS TO FREEDOM PARK DURING NON-USE HOURS. Mr. Ortega noted Freedom Park would be completed soon and was located to the rear of a local school. Staff believe that without appropriate barriers some people may want to access the park during the evening; staff recommended installation of fences or gates to prevent entry during non-use hours. 8 PRELIMINARY MINUTES D���� REGULAR PALM DESERT CITY COUNCIL MEETING MARCH 22, 2007 Councilman Spiegel felt the proposed security gate was unsightly and asked if a nicer looking gate could be installed. Mayor Kelly concurred. Mr. Ortega and Parks Maintenance Supervisor Jay Niemczak agreed to ask for a better design and fabrication. Councilman Spiegel moved to, by Minute Motion: 1)Authorize staff to proceed with the installation of barriers to prevent entry into Freedom Park ballfields during non-use hours, with staff directed to utilize an enhanced design for the security gates; 2) appropriate$11,000 from Account No.236-4670-454-4001 forthe purchase of the security items. Motion was seconded by Finerty and carried by a 5-0 vote. D. REQUEST FOR APPROVAL OF A HOUSING AGREEMENT BY AND BETWEEN THE CITYOF PALM DESERTAND WNRA PALM DESERT 103, LLC, Related to Case Nos. GPA 05-02, C/Z 05-02, PP 05-12, and TT 33837. Mr. Ortega noted the subject agreement was for implementing an affordable housing agreement with the City which was a condition of a development agreement. The WNRA, Palm Desert, California, will satisfy the required condition to provide the low/moderate income units. He offered that staff was available to answer questions. Mayor Pro Tem Benson requested that in the future, it would be helpful if staff provided the names of the principals involved up front. She said she eventually found their names in the staff report, but they were difficult to find. She said that information would be helpful to the Council because they may know who Taylor Woodrow is, but not who WNRA. Housing Authority Administrator Janet Moore agreed to make that change. Upon further question, she replied WNRA was Western Realty National Advisors. She said the developers were invited to attend but due to scheduling conflicts they did not. She offered to postpone this item for them to attend. Mayor Pro Tem Benson replied it was not necessary to postpone, the main point was to know who the principal developers were because the City's had good and bad developers. At the time of transfer it was Taylor Woodrow's property and they then sold their rights to the apartments to WNRA, as she understood it. Ms. Moore replied that was correct. She added that Emerald Brook was the original owner of the project who sold that portion for Taylor Woodrow to develop and the City conditioned the apartments on them as part of that agreement. Since Taylor Woodrow was never interested in building the 9 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING MARCH 22, 2007 apartments, Emerald Brooks worked with Taylor Woodrow to sell off the apartments for someone else to build them. Mayor Pro Tem Benson asked if Council would see the apartments. Ms. Moore replied Council had already seen the apartments. Upon further question, she believed it was the conceptual plans that were presented but agreed to bring the final design to the Council. Councilman Spiegel moved to, by Minute Motion: 1)Approve a Housing Agreement in accordance with the conditions of approval of the Emerald Brook, LLC, project by and between the City of Palm Desert and WNRA Palm Desert 103, LLC, substantially as to form; 2) authorize the City Manager or his designee to execute all necessary documents to facilitate the agreement. Motion was seconded by Finerty and carried by a 5-0 vote. XV. CONTINUED BUSINESS A. REQUEST FOR APPROVAL OF AGREEMENT FOR THE PROVISION OF LEGAL SERVICES TO THE CITY OF PALM DESERT (CONTRACT NO. C00-008A) (Continued from the meetings of January 25, February 8, and February 22, 2007). Councilman Ferguson moved to continue the matter to the meeting of April 12, 2007. Motion was seconded by Spiegel and carried by a 5-0 vote. B. REQUEST FOR AWARD OF CONTRACTS FOR THE WESTFIELD BUS BAY PROJECT (Continued from the meetings of February 8 and February 22, 2007). Mr. Ortega noted that Council continued this item pending a committee meeting with SunLine. He said SunLine approved the design concept, thereby, authorizing staff to proceed with the project. In addition, as a side matter, they requested for the bus stop across the street be moved further down the street so that both were directly across from each other. However, Council would only be taking action on the Westfield Bus Bay project. Councilman Spiegel said he and Mayor Pro Tem Benson met with SunLine and City staff and all agreed it was the proper thing to do at the proper location. Councilman Spiegel moved to, by Minute Motion: 1) Award Contract No. C26030A to Contreras Construction Company, Indio, California, in the amount of $283,000 for the street and sidewalk improvements; 2) award Contract No. C260306 to All Purpose Manufacturing, Oceanside, California, in the amount of$125,000 for bus shelter structure; 3) award Contract No. C26030C to Hort Tech, Inc., Bermuda Dunes, California, in an 10 PRELIMINARY MINUTES D�A�� REGULAR PALM DESERT CITY COUNCIL MEETING MARCH 22, 2007 amount not to exceed $50,000 for landscaping; 4) approve contingency for the project in the amount of $77,602. Motion was seconded by Ferguson and carried by a 5-0 vote. XVI. OLD BUSINESS A. REQUEST FOR APPROVAL OF AN AMENDMENT TO CONTRACT FOR COMPLETION OFTHE FINAL ENVIRONMENTAL IMPACT REPORT(EIR) FOR THE PROJECT KNOW N AS"CORNISHE AT BIGHORN"(CONTRACT NO. C22170) (Cornishe at Bighorn, Applicant). Councilman Ferguson requested for a staff report to be provided because the matter had dragged on for many year and at this point was not aware of the status. Associate Transportation Planner Phil Joy stated the initial application was submitted as a 60 unit condominium project on 12 acres which was entirely within 400 yards of the lambing tents at the Bighorn Institute. The project was scaled down to two units, and the subject amendment was needed to complete the final Environmental Impact Report (EIR). Councilman Spiegel asked how many people would live in each unit. Mr. Joy replied it was proposed for two single-family houses. Responding to question, Mr. Joy replied the City was paying the consultants $27,500, and those funds would be reimbursed to the City by the Applicant. Councilman Spiegel moved to, by Minute Motion, approve an amendment to the subject contract with PCR Services Corporation, Santa Monica, California, in the amount of$27,500 for completion of the"Cornishe at Bighorn" EIR to be paid by the Applicant, and authorize the City Manager to execute said amendment. Motion was seconded by Finerty and carried by a 5-0 vote. XVII. PUBLIC HEARINGS A. REQUEST FORAPPROVAL OF AN AMENDMENT TO PP/CUP 96-28 AND DA 96-1 TO ALLOW CONSTRUCTION OF 280 (215 CURRENTLY ENTITLED) NEW TIMESHARE UNITS WITH A HEIGHT EXCEPTION FOR A 41-FT. 8-IN. MAXIMUM ROOF HEIGHT,A 38,000 SQUARE FOOT VILLA CLUBHOUSE, AND AMENITIES AT 39-500 PORTOLA AVENUE, ALSO KNOWN AS A PORTION OF LOT 9 OF TRACT 28451 WITHIN DESERT WILLOW GOLF RESORT Case Nos. DA 06-03, PP/CUP 06-17. and TT 35426 (Starwood / WVC Rancho Mirage, Inc., Applicants). Mr. Ortega noted this item was in relation to the old Intrawest Project that was being amended to provide more units. He pointed out there was an 11 PRELIMINARY MINUTES DRA�T REGULAR PALM DESERT CITY COUNCIL MEETING MARCH 22, 2007 agreement in the Redevelopment Agency agenda that was related to this amendment with regards to the land sale and other economic matters. Acting Planning Manager Tony Bagato stated the proposed plan was requested by Starwood/WVC, Rancho Mirage. Intrawest received approval in 1997 for 311 timeshare units and currently had 55 units built and planning to build 41 additional units; leaving 215 entitled units. Starwood purchased the land as well as the development rights to those entitled units and was now seeking an amendment with a revised site plan, architectural design plan, and a development agreement. The amendments will include 18 buildings for a total of 280 units,outdoor amenities,and a 38,000 square-foot clubhouse along with parking. The amendment agreement will add five years beyond the projecYs original development agreement and a tentative map for the timeshares. He went on to describe in detail the architecture, amenities, height, and density of the project as noted in the staff report. The project included a three-story building with 280 units at 41'8". Staff was in support of the current proposal as well as the previous one which included the four-story buildings. He said the Architectural Review Commission reviewed the project and endorsed all the buildings; however, they did believe the four-story design was superior because it created more volume and stepping in the massing. He said the building complied with all the development standards with the exception of height. Staff believe the visual impact to the public would be minimal. He said the proposed site planning and the architecture design effectively accommodated what Starwood was proposing and what was previously proposed with 300 units. He said the density and site planning was strategically placed far enough away from the clubhouse and streets; 1,000 feet away from the clubhouse, more than 500 feet from Portola Avenue, and 800 feet from Country Club Drive. He noted the applicant was available to make a presentation to address other points he did not cover. He offered to answer questions. Redevelopment Manager Lauri Aylaian stated the modifications to the development agreement go hand in glove with the modification to the Disposition and Development Agreement (DDA). She took the opportunity to outline the changes in the DDA associated with the Development Agreement, so that Council could have that in mind when it held the public hearing and considered the change to the Development Agreement. She said the third modification to the DDA was under Old Business Item A, on the Redevelopment Agency agenda. The modifications in the DDA were in three areas: financial implications, aesthetic implications, and implications to the golf operations. From a financial standpoint, the increased number of units result in an increase on project amenity fees that are paid every year and was currently about $4,700 per unit/year and escalated yearly. There was also a one-time access that is paid at completion of construction of each unit at approximately$16,000 a unit/yearthat also escalated yearly. Additionally, 12 PRELIMINARY MINUTES DR�A�T REGULAR PALM DESERT CITY COUNCIL MEETING MARCH 22, 2007 there was Transient Occupancy Tax (T.O.T.), which was estimated that about 20% of the timeshare units on any given night would be rented out as a hotel room. The City's general fund would received the T.O.T. on those units, billing out in present dollars to about $400,000 a year stemming from the additional units. There would also be an increase profitability of the golf course that was tied in with the enhanced golf operations. As it now stood, the golf course operators (the City) had very little control and very little ability to book advance rounds of golf. The modifications to the DDA would restore the City's access to advance booking of the rounds, which would allow the City to book at higher rates. She said other golf course operation implications include the fact that the revised site plan as compared with the existing plan, that was approved for Intrawest, would actually move the buildings back further away from the golf fairways; keeping the buildings further removed from the play. Staff believe the three and four-story buildings improve the mountain views from the golf course because it masses the units together rather then spreading them out uniformly across the site and it opened up clear corridors of views to the mountains. When Intrawest sold and transferred their rights to Starwood back in June, the former Intrawest Clubhouse at Desert Willow was purchased by Starwood, and they, in act of good faith, deeded that over to the City at that time, anticipating they would return asking for the increased density. In accordance with the recommendations made by Mr. Bagato, staff preferred the four-story option believing it was aesthetically superior and offered greater profitability and greater revenue to the General Fund from the various sources mentioned. However,the Planning Commission recommended the project be curtained with the top floor eliminated. She said the information in the staff report represented the three-story option, but if Council was interested in the four-story option, she had the information available. She offered to answer questions. Councilman Spiegel asked what was the difference between the three-story and the four-story from an income standpoint for the City. Mr. Aylaian replied the present value of a 20 year-old revenue stream would be an additional $2.8 million to the City, which would account for tax increment, T.O.T., sales tax, the mitigation, and project amenity fees. Mayor Pro Tem Benson stated her main concern was with regards to the setbacks and views and whether the three-story buildings would be seen from Country Club Drive and Portola Avenue. Mr. Bagato replied that portions of the three-story buildings may be seen, but the setbacks were more than 800 feet from the street. He said the Marriott setback was 1,200 feet for a 78-feet high building and the proposed three-story building was only 41 feet tall with 800 feet setback. Staff 13 PRELIMINARY MINUTES DR�FT REGULAR PALM DESERT CITY COUNCfL MEETING MARCH 22, 2007 anticipated very minimal impact from the streets and noted the Applicant would provide a more detailed presentation to illustrate the visual impact. Mayor Kelly declared the public hearing o en and invited anyone wishing to address the City Council on this matter to come forward at this time. MR. STEVE DECKERT, MDR Architects, Irvine, CA, stated they first met with the Redevelopment Agency (RDA) and the Planning Commission with theirfirst schemes for Desert Willow in February 2006. He said they held six or seven workshops to address the concepts developed that were near and dear to the project. They worked on the golf course constraints, the height sensitivity, shift in the center of gravity for this project away from the resort core of the clubhouse area. Mr. Deckert provided a Power Point presentation of the project and reviewed in detail the site plan, views, setbacks, landscape treatment, amenities, phasing architecture and illustrated the three and four-story options and revisions made to address the concerns of the Planning Commission. His illustrations provided computer models representing the various heights and visual impact from the fairways and the streets. He noted that part of the constraint of this project was that Intrawest already had their clubhouse, clubhouse parking,tennis courts, and amenity core built into the project. Picking up the project at this point, required for the clubhouse, clubhouse parking, and resort core to be redone and duplicated to serve this half of the project. Without it being in conjunction with the hotel, the entry needed to be enhanced to give it a visual impact. He said originally the plan had 28 buildings on the site, and the current plan had 18 buildings, providing more green and open space. He said they have gone through great length to bring appropriate architecture to the project and the City of Palm Desert. It had the sponsorship of Starwood and their commitment behind the project. He felt the project had momentum because more and more ideas were thrown on the table and it evolved into something he as a creative artist was enthusiastic about. Lastly, he provided a 3-D virtual reality presentation that illustrated the main entry, split entry drive, lobby area, and central water feature that showed the tinsel structures used to give the entry a vertical interest. MR. GEORGE BOOM with Starwood, thanked the Council for allowing them the opportunity to provide a presentation. He said it was a collaborative effort with City staff and RDA and everyone involved. He said they were excited about the project with a team already here on the ground getting prepared. He said this project was a sequel to another one of their projects and they were raising the bar. He added that the limited four-story building with 380 units provided an economic benefit to the City and was architecturally superior; however, they also believed in the 280 unit project. He said they were exited to partner long-term with the City to ensure the project's success. 14 PRELIMINARY MINUTES ����� REGULAR PALM DESERT CITY COUNCIL MEETING MARCH 22, 2007 With no further testimony offered, Mayor Kelly declared the public hearing closed. Councilman Spiegel asked Mr. Ortega. if at one time. the City looked at a hotel that would go in where this project was located. Mr. Ortega answered no. He said the two hotels considered were north and east of the site towards the clubhouse, and the other one was located on the other side of the clubhouse. Responding to question about the height of those hotels, Mr. Ortega replied the hotel located near the homes on Cook Street, were three story and five story hotels and those projects were once approved. Mayor Pro Tem Benson stated the three story looked better than the four story, but was not totally convinced on the three story. Councilmember Finerty stated when Starvvood purchased the land from Intrawest, it was understood there was suppose to be 215 units. She said it was not in the best interest of the City to increase the units from 280 to 300. She understood it penciled out better for Starwood and recognized the financial benefit to the City, but saw no compelling reason to increase the number of units or the height. She was concerned about the views from people on the golf course because Desert Willow was the City's pride and joy that allowing a significant number of additional units would be a detriment to the Desert Willow golf experience. Councilman Spiegel stated he like the project and it made sense to have the entry from Portola Avenue because it would take traffic off the main road. He was in favor of the four-story buildings with timeshares and hotels, because Desert Willow was built for that purpose. He said it was also built for residents to play golf, but it was not the primary reason; bringing in revenue was the primary reason. He said the thought of losing $2.8 million in revenue was a lot of money and believed it would become tougher to obtain. He went on to say the project would not be seen from Portola Avenue or Country Club Drive as much as you could see the Marriott Desert Springs from Country Club Drive and stated, "God Bless Desert Springs," because it provided more than $6 million a year to the City. He personally would prefer the four-story building. Councilman Ferguson noted the Mayor usually spoke last, but because he was in a quandary on the matter, he wanted to hear the Mayor's opinion first. Mayor Kelly stated the distance from the road was important to the City and the proposed projecYs height limit in relation to the distance from the road was very good. He said the EIR for that area was done on the basis of a five-story hotel. The City had been working for ten years to try and get a hotel 15 PRELIMINARY MINUTES DRA�T REGULAR PALM DESERT CITY COUNCIL MEETING MARCH 22, 2007 inside the golf complex, and it seemed to him that this timeshare provided almost all the associated benefits that went along with a hotel. Previous propositions submitted wanted control of the golf course with the City contributing money towards the project, and this project was equivalent of a hotel with no funds requested of the City,with the City retaining control of the clubhouse. In addition, the City would be able to get part of the clubhouse back to make adjustments and improvements, without having an adverse affect on play and use of the golf course, while the changes are being made. He believed this was a great opportunity to move ahead and he personally did not have a problem with the four story. If his colleagues had a problem with the four story building, he felt they should at least consider the three- story. He agreed with Councilman Spiegel's comments that this project would look far better than the Marriott and agreed "God Bless the Marriott," not only for the T.O.T., but also the sales tax. Councilman Ferguson first noted that the City should have an open-space committee because not everyone was in agreement about how much open-space there was involved with the project. He explained that the fly through that was conducted was primarily for the Landscape Committee's benefit and they reviewed it; the Architectural Review Committee voted 5-0-2, with two members abstaining; then it went to the Planning Commission and failed on a 2-3 vote and later passed on a 4-0-1 vote; and finally the Redevelopment Agency pointed out the revenue that would flow to the City. With those four elements, five elements if you added an open-space committee, fell into the Council's lap to craft and design something that looked good. Since the main issue was a three or four-story building, he reviewed and identified the four-story buildings on the overhead display. He believed the project was cleverly designed with the four-story buildings located in areas that provided none or minimal visual impact to the golfer, resident, nearby streets, and would not compromise the Hurdzan-Fry design of the golf course. He said he was in favor of the four-story buildings with the 300 units as outlined in the Redevelopment Agency's analysis. Councilman Ferguson moved to waive further reading and: 1) Pass Ordinance No. 1135 to second reading, approving Development Agreement 06-03; 2) adopt Resolution No. 07-21 , approving Precise Plan/Conditional Use Permit 06-17 and Tentative Tract 35426, both amended to reflect approval of a four-story, 300 unit project. Motion was seconded by Spiegel and carried by a 3-2 vote, with Benson and Finerty voting NO. 16 PRELIMINARY MINUTES DRA�T REGULAR PALM DESERT CITY COUNCIL MEETING MARCH 22, 2007 XVIII. REPORTS AND REMARKS A. CITY MANAGER 1. Request for Study Session -- April 12, 2007, Regarding Potential Recreational Facilities. Mr. Ortega reminded Council that at the next study session, staff will provide a virtual tour of a project that Ms. Janis Steele participated in her former job. It's a community center that included all kinds of elements the City may want to consider for Palm Desert. With City Council concurrence, staff was directed to schedule the subject Study Session at 2:30 p.m., on April 12, 2007. B. CITY ATTORNEY None C. CITY CLERK None D. PUBLIC SAFETY o Fire Department None o Police Department None E. MAYOR AND MEMBERS OF THE CITY COUNCIL o City Council Rec{uests for Action: Upon a motion by Ferguson, second by Spiegel, and 5-0 vote of the City Council, the following item was added to the agenda for consideration. 1. Request for Approval of Date Change for Palm Desert Golf Cart Parade. Councilman Spiegel stated the Golf Cart Committee and the Chamber Board met and it was their recommendation that instead of having the Golf Cart Parade in January, like it had 17 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING MARCH 22, 2007 been for the past two year, that it be moved to October 28, 2007. He realized it would mean two parades in one year, but it will return to the month of October when it was originally held. He said there were many reasons for the change that included the participation from the schools, etc. Councilman Spiegel moved to, by Minute Motion, concurwith the recommendations of the Palm Desert Chamber of Commerce and the Golf Cart Parade Committee and authorize a change in date for the annual Palm Desert Golf Cart Parade to October, with the next event to be held Sunday, October 28, 2007. Councilman Ferguson agreed with the Chamber's request to move the event back to the Fall. He noticed in previous minutes, that the Chamber asked for $10,000 worth of additional funding and was rejected. He felt that since the Chamber was doing something the City wanted which was moving it back to October, if Council would reconsider giving them the extra $10,000 for next year. Councilman Spiegel agreed to revise his motion to include the contribution of$10,000. Mayor Pro Tem Benson stated she was in favor of moving the event to October, but concerned about having the event twice in the year and what the turn out would be. Councilman Spiegel and Mayor Kelly were of the same opinion, that 14 months was far enough apart. MR. WfLLIAM BLUE, Chairman of the Palm Desert Golf Cart Parade Committee stated the key to moving it back to October, was that it attracted more people to the parade to watch it. He said they did a zip code survey of parties present at the parade this year to determine where they came from, and the vast majority were from the Coachella Valley. What was missing, was the participation from the local schools, students and their families including entries to the parade. Ms. Gilligan stated for the record, that in the past the City did contribute $10,000 for the marketing of the parade; however last year the City participated with $35,000. She asked if this consideration included that$35,000 because it would be going to the Marketing Committee and it can be pulled off. 18 PRELIMINARY MINUTES ����� REGULAR PALM DESERT CITY COUNCIL MEETING MARGH 22, 2007 Councilman Ferguson said he was confused, because in the Marketing Committee minutes, it stated that "while the City of Palm Desert was proud of the Golf Cart Parade and recognized it to be a worthwhile community event, staff did not believe the significant increase donation resulted in additional exposure." Ms. Gilligan clarified that in prior years, the City provided all of the marketing, but the Parade Charities Committee decided they preferred to do their own marketing to their liking, so the City changed it to allow them to do that with a $10,000 contribution. In the last parade they requested $35,000 for additional activities and events and Council approved it because it was more of a community event than an advertising effort. Upon further question, she replied the City participated no matter what with in-kind services for Police, Fire- Department, Code Enforcement, staff, etc., and the value of that was $15,000. However last year the City gave $35,000 in addition to the $15,000 in-kind. The staff report from Kristi Kneiding that was going to the Marketing Committee includes that $15,000 in-kind as part of her report; however, if Council desired to match last year's contribution of$35,000 and in-kind of$15,000, the total contribution would be $50,000. Councilman Spiegel stated the parade had changed over the years with the children having a place to have bounce houses that didn't exist a few years ago and was now located on EI Paseo instead of the Civic Center Park. He felt it was worth $35,000 to the City to put on the parade. Councilman Spiegel and Councilman Ferguson agreed to revise their motion to include the cash contribution to support the event in the amount of $35,000 and in-kind services by the City. Motion carried by a 5-0 vote. Mayor Pro Tem Benson asked her colleagues' consideration of adding an item to the agenda to consider a donation to the Palm Desert Middle School Charter School effort. Councilman Ferguson moved to, by Minute Motion, add this item to the agenda. Motion was seconded by Spiegel and carried by a 5-0 vote. 2. Consideration of Donation to Palm Desert Middle School Charter Designation Effort. 19 Y IN TES D���� PRELIMINAR M U REGULAR PALM DESERT CITY COUNCIL MEETING MARCH 22, 2007 Elementary Charter School had been a real asset to the City and believed the benefits would be equally great for the Middie Schooi. Councilmember Benson moved to, by Minute Motion, approve a $50,000 donation to the Palm Desert Middfe Schoof Charter Designation effort and appropriate said funds from the Unobligated General Fund. Motion was seconded by Finerty and carried by 5-0 vote. o Citv Council Committee Reports: 1. Councilmember Finerty reported that the Executive Director of the Coachella Valley Mountains Conservancy and the Vice President of the Friends of the Desert Mountains had invited her to travel to Washington, D.C., next week to meet with officials of the U.S. Department of the Interior, U.S. Department of Agriculture, U.S. Forest Service, and Bureau of Land Management, etc. She had discussed the invitation with the City Manager, who advised funds were available for this travel, and she looked forward to the meetings. Upon question aboutthe need to approve an out-of-state travel request, Mr. Ortega responded there were two travel authorizations to Washington, D.C., in the FY 2006l07 Budget for the Mayor/City Council. One was for attendance at the U.S. Conference of Mayors, the other for National League of Cities, and he recommended that one of those authorizations be applied to this travel. However, the City Council could provide a separate authorization. Councilman Spiegel moved to, by Minute Motion, approve Out-of-State Travel to Washington, D.C., the week of March 26, 2007, for Councilmember Finerty to participate in meetings with various Federal Agencies. Motion was seconded by Benson and carried by 5-0 vote. 2. Palm Desert Chamber of Commerce — Councilman Spiegel sadly reported that Chamber PresidenUCEO Barbara deBoom had today informed him the Tweeters store would be closing. While Palm Desert's was the best in California, the rest of them weren't doing so well. Their supply point was in San Diego, leaving no way to deliver product locally; all California and eight other states' stores would be closing. 20 PRELIMINARY MINUTES p���T REGULAR PALM DESERT CITY COUNCIL MEETING MARCH 22, 2007 o City Council Comments: 1. Trio 10th Anniversary—Councilman Ferguson said he recently attended the 10�h anniversary celebration for Trio Clothing Store on EI Paseo. He asked for his colleagues' concurrence to issue a congratulatory proclamation to recognize this milestone. Councilmembers concurred. XIX. ADJOURNMENT Upon a motion by Spiegel, second by Kell�, and 5-0 vote of the City Council, Mayor Kelly adjourned the meeting at 5:35 p.m. RICHARD S. KELLY, MAYOR ATTEST: RACHELLE D. KLASSEN, CITY CLERK CITY OF PALM DESERT, CALIFORNIA 21