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HomeMy WebLinkAboutPRELIM - CC - 02/08/07 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING THURSDAY, FEBRUARY 8, 2007 pRAFT CIVIC CENTER COUNCIL CHAMBER I. CALL TO ORDER - 3:00 P.M. Mayor Kelly convened the meeting at 3:03 p.m. II. ROLL CALL Present: Mayor Pro Tem Jean M. Benson Councilman .lim Ferguson Councilmember Cindy Finerty Councilman Robert A. Spisgel 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 Mark Greenwood, Acting ACM for Development Services Justin McCarthy, ACM for Redevelopment Stephen Y. Aryan, Assistant to the City Manager RacheNe D. Klassen, City Clerk Amir Hamidzadeh, Director of Building & Safety Steve Smith, Acting Director of Community Development Paul S. Gibson, Director of Finance/City Treasurer Frankie Riddle, Director of Special Programs Frank Taylor, Asst. Chief, Palm Desert Police/Riverside Co. Sheriff's Dept. Grace L. Mendoza, Deputy City Clerk III. ORAL COMMUNICATIONS - A (CLOSED SESSION ITEMS) None PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING FEBRUARY 8, 2007 IV. ADJOURN TO CLOSED SESSION �R,�FT Request for Closed Session: Conference with Legal Counsel regarding significant exposure to litigation pursuant to Government Code Section 54956.9(b): Number of potential cases: 2 Public Employment pursuant to Government Code Section 54957: Title of Position: City Attorney Upon a motion by Spiegel, second by Finerty, and 3-0 vote of the City Council, with Benson and Ferguson ABSENT, Mayor Kelly adjourned the meeting to Closed Session at 3:03 p.m. He reconvened the meeting at 4:00 p.m. 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 Richard S. Kelly VII. INVOCATION - Mayor Pro Tem Jean M. Benson VIII. ORAL COMMUNICATIONS - B MS. ALICE NUCCI, of Carob Court and President of the Kings Point Villas Homeowners Association, Palm Desert, addressed the City Council to request that the City assume maintenance responsibility for a median island located at the intersection of Highway 74/Shadow Mountain Drive,which was City property. Their association had maintained the island for the last 27 years, from initiation of the development, but felt it was unfair and had become a financial burden. She read f�om a prepared statement and provided color photographs, which were received for the record and are now on file with the City Clerk's Office. Mayor Kelly responded that City staff would be in contact with Ms. Nucci to discuss and look into the request. 2 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING FEBRUARY 8, 2007 IX. AWARDS, PRESENTATIONS, AND APPOINTMENTS DR AFT A. PRESENTATION TO RECOGNIZE FORMER MEMBERS OF VARIOUS COMMITTEES AND COMMISSIONS FOR THEIR SERVICE TO THE CITY: BILL VEAZIE - AUDIT, INVESTMENT & FINANCE COMMITTEE; KEN STENDELL - BUILDING BOARD OF APPEALS; LAWRENCE SAINDON, HOUSING COMMISSION; RAY RODRIGUEZ,JR.- MARKETING COMMITTEE; LYNN DE SANTIS - LIBRARY PROMOTION COMMITTEE; JIM LOPEZ - PLANNING COMMISSION; AND FRANK PROULX - PROJECT AREA NO. 4 COMMITTEE. On behalf of the City Council, Mayor Kelly presented an engraved crystal clock to all the named members who had served the City's Committees and Commissions in appreciation for their time. Mr. Bill Veazie, who had served the Audit, Investment & Finance Committee for 10+ years, was present for the recognition; the remaining members were unable to be present for this meeting. B. PRESENTATION TO THE CITY COUNCIL BY PALM DESERT HIGH SCHOOL STUDENTS WHO ATTENDED THE LEONARDO DA VINCI EXHIBIT. MR. PAT WALSH, Principal of Palm Desert High School, along with social science and art students MS. ABRIL GARCIA, MS. JANETH LARA, and MS. NICOLE WYATT, expressed sincere appreciation to the City Council for its funding of their field trips to the Da Vinci Exhibit, including bus transportation and admission. The students presented the City Council with photographs of their trips to the Exhibit. C. REAPPOINTMENT TO THE PALM DESERT HISTORIC PRESERVATION COMMITTEE. Councilman Ferguson moved to, by Minute Motion, reappoint Kim Housken to the Historic Preservation Committee for a four-year term (1/1/07 - 12/31/10). Motion was seconded by Finerty and carried by a 5-0 vote. 3 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING FEBRUARY 8, 2007 X. CONSENT CALENDAR DRAFT A. MINUTES of the Regular City Council Meeting of January 25, 2007. Rec: Approve as presented. B. CLAIMS AND DEMANDS AGAINST THE CITY TREASURY - Warrant Nos. 148, 150, 154, 156, 157, 158, and 160. Rec: Approve as presented. C. COMPLIANCE ANALYSIS AND INVESTMENT REPORTS for the Months of November 2006 and December 2006 (Joint Consideration with the Palm Desert Redevelopment Agency). This item was removed for separate consideration. Please see the resulting discussion and action under Section VII - Consent Items he{d over. D. REQUEST FOR APPROVAL of the City of Palm Desert Treasury Policies and Procedures, As Amended (Joint Consideration with the Palm Desert Redevelopment Agency and the Palm Desert Housing Authority). Rec: By Minute Motion, adopt the City of Palm Desert Treasury Policies and Procedures, as amended. E. APPLICATION FOR ALCOHOLIC BEVERAGE LICENSE by Richard Marvin Ameil and Dean Floyd Talbott for Grill A Burger, 73-091 Country Club Drive, #A2, Palm Desert. Rec: Receive and file. F. CITY COMMITTEE AND COMMISSION MEETING MINUTES. 1. Historic Preservation Committee Meeting of December 15, 2006. 2. Library Promotion Committee Meeting of February 15, 2006. 3. Marketing Committee Meeting of December 5, 2006. 4. Parks & Recreation Commission Meetings of December 5, and December 19, 2006. Rec: Receive and file. G. LETTER OF RESIGNATION from Heather Sacre - EI Paseo Business Improvement District Board of Directors. Rec: Receive with very sincere regret. 4 DRAFT PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING FEBRUARY 8, 2007 H. AUDITED FINANCIAL REPORTS for the City of Palm Desert for the Fiscal Year Ended June 30, 2006. This item was removed for separate consideration. Please see the resulting discussion and action under Section VII - Consent Items Held Over. I. AUDITED FINANCIAL REPORTS for the Palm Desert Redevelopment Agency for the Fiscal Year Ended June 30, 2006. Rec: By Minute Motion, receive and file the subject Component Unit Financial Report(CUFR)forthe Palm Desert RedevelopmentAgency. J. AUDITED FINANCIAL REPORTS forthe Palm Desert Recreational Facilities Corporation for the Fiscal Year Ended June 30, 2006. Rec: By Minute Motion, receive and file the subject reports for the Palm Desert Recreational Facilities Corporation. K. AUDITED FINANCIAL REPORTS for the Measure "A" Fund for the Fiscal Year Ended June 30, 2006. Rec: By Minute Motion, receive and file the subject financial statements for the Measure "A" Fund. L. REQUEST FOR APPROVAL of the Extension of Contract to Perform Auditing Services for the City of•Palm Desert, Palm Desert Redevelopment Agency, and Palm Desert Housing Authority (Contract No. C20185) (Joint Consideration with the Palm Desert Redevelopment Agency and the Palm Desert Housing Authority). This item was removed for separate consideration. Please see the resulting discussion and action under Section VII - Consent Items Held Over. M. LIMITED PROCEDURES REVIEW of Various Palm Desert Operators for Compliance with the City of Palm DeserYs Transient OccupancyTax(T.O.T.) Ordinance for 2005 Ca�endar Year and Approval of Related Actions. Rec: By Minute Motion: 1)Receive and file the Limited Procedures Review of various Palm Desert operators for compliance with the City of Palm Desert's T.O.T. Ordinance for calendar 2005; 2) approve reimbursement to operatorforoverpayment of T.O.T.totaling$10.38; 3) authorize collection from operators for underpayment of T.O.T. totaling $8,682.21. 5 [�R��T PRELfMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING FEBRUARY 8, 2007 N. REQUEST FOR APPROVAL of the Purchase of Two Segway Electronic Personal Assistive Mobility Devices (EPAMD) for Use by the Palm Desert Police Department. Rec: By Minute Motion, approve of the subject purchase with FY 2006/07 Supplemental Law Enforcement Services Funding (SLESF) Grant Funds in the amount of $11,970.07. O. REQUEST FOR AUTHORIZATION to Release Waste Management of the Desert's Faithful Performance Bond (No. 8145-54-97) (Contract No. C17230). Rec: By Minute Motion, authorize staff to release the subject Performance Bond. Councilman Spiegel requested that Item L be discussed separately, and Councilmember Finerty requested that Items C and H be discussed separately. Upon motion by Ferguson, second by Finerty, and 5-0 vote of the City Council, the remainder of the Consent Calendar was approved as presented. XI. CONSENT ITEMS HELD OVER C. COMPLIANCE ANALYSIS AND INVESTMENT REPORTS for the Months of November 2006 and December 2006 (Joint Consideration with the Palm Desert Redevelopment Agency). Councilmember/Member Finerty stated she was concerned with the amount of money invested in the Ford Motor Credit Corp (FMCC). She stated the City was receiving a decent rate and noted the maturity date was June 2007; however, Moody's and Standard and Poors (S&P) rated it B and B1. The November Portfolio Holdings showed the City invested 5.31% in the FMCC, and the Redevelopment Agency also invested a fair amount with FMCC; however, that coupon matured January 2006. It concerned her that $13 million was invested with FMCC with a rating of B and 61. She pointed out that on page 41, the Auditors address a policy which obligated the City to only invest in AAA rating items. Additionally, she noticed the State of California Local Agency Investment Fund (LAIF) was unrated. Mr. Gibson responded FMCC was initially acquired through the requirement of the State of California. The option of selling it was discussed at the Investment and Finance Committee, and it was decided to keep it until its maturity date of June 2007; there was little risk of it defaulting. He said FMCC and the Corporation had $32 billion in cash assets and selling it would be a greater risk. With regards to LAIF, he said it was the State of California 6 ����� PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING FEBRUARY 8, 2007 that invested those funds in items the City could also invest in. He noted the City had no losses in past years and there was very little risk of it defaulting, and it was State practice to not be audited by Moody's or S&P. Upon further question, Mr. Gibson affirmed the coupon that matured January 2006 was redeemed and invested in an A rating item; he planned to do the same with the one maturing June 2007. He went on to say,the City would no longer invest in Ford Motor Credit Corp because it was not on the approved list of items the City could purchase. Councilmember/Member Finerty moved to, by Minute Motion, receive and file the Compliance Analysis and Investment Reports for November and December. Motion was seconded by Ferguson and carried by a 5-0 vote. H. AUDITED FINANCIAL REPORTS for the City of Palm Desert for the Fiscal Year Ended June 30, 2006. Councilmember Finerty pointed out that on page 42, three different assets were listed and conside�ed to be exposed to Concentration of Credit Risk because the City invested more than 5% of its total investments in any one issuer. Mr. Gibson stated the City pu�chased those items at a time when the new Government Accounting Standards Board (GASB) requirement was not in place. The committee was now reviewing that issue, but was not considered a concern or a risk because it was receiving AAA quality credit rating; however, the policy will be changed to reflect the new requirement. Councilmember Finerty moved to, by Minute Motion, receive and file the subject Comprehensive Annual Financial Report(CAFR)for the City of Palm Desert. Motion was seconded by Spiegel and carried by 5-0 vote. L. REQUEST FOR APPROVAL of the Extension of Contract to Perform Auditing Services for the City of Palm Desert, Palm Desert Redevelopment Agency, and Palm Desert Housing Authority (Contract No. C20185) (Joint Consideration with the Palm Desert Redevelopment Agency and the Palm Desert Housing Authority). Councilman/Member Spiegel stated he was of the understanding the City would go out to bid after the initial five-year contract expired. Mr. Gibson recalled the matterwas discussed with the previous proposal and the committee adopted a policy. That policy stated that after the five-year contract expired, the committee could revisit and either make a recommendation to continue with the same firm or go out to Request for Proposal (RFP). The committee chose to extend the contract five years based on that policy. The Government Finance Officers Association 7 �� �4F1' PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING FEBRUARY 8, 2007 that invested those funds in items the City could also invest in. He noted the City had no losses in past years and there was very little risk of it defaulting, and it was State practice to not be audited by Moody's or S&P. Upon further question, Mr. Gibson affirmed the coupon that matured January 2006 was redeemed and invested in an A rating item; he planned to do the same with the one maturing June 2007. He went on to say, the City would no longer invest in Ford Motor Credit Corp because it was not on the approved list of items the City could purchase. CouncilmemberlMember Finerty moved to, by Minute Motion, receive and file the Compliance Analysis and Investment Reports for November and December. Motion was seconded by Ferguson and carried by a 5-0 vote. H. AUDITED FINANCIAL REPORTS for the City of Palm Desert for the Fiscal Year Ended June 30, 2006. Councilmember Finerty pointed out that on page 42, three different assets were listed and considered to be exposed to Concentration of Credit Risk because the City invested more than 5% of its total investments in any one issuer. Mr. Gibson stated the City purchased those items at a time when the new Government Accounting Standards Board (GASB) requirement was not in place. The committee was now reviewing that issue, but was not considered a concern or a risk because it was receiving AAA quality credit rating; however, the policy will be changed to reflect the new requirement. Councilmember Finerty moved to, by Minute Motion, receive and file the subject Comprehensive Annual Financial Report(CAFR)for the City of Palm Desert. Motion was seconded by Spiegel and carried by 5-0 vote. L. REQUEST FOR APPROVAL of the Extension of Contract to Perform Auditing Services for the City of Palm Desert, Palm Desert Redevelopment Agency, and Palm Desert Housing Authority (Contract No. C20185) (Joint Consideration with the Palm Desert Redevelopment Agency and the Palm Desert Housing Authority). Councilman/Member Spiegel stated he was of the understanding the City would go out to bid after the initial five-year contract expired. Mr. Gibson recalled the matterwas discussed with the previous proposal and the committee adopted a policy. That policy stated that after the five-year contract expired, the committee could revisit and either make a recommendation to continue with the same firm or go out to Request for Proposal (RFP). The committee chose to extend the contract five years based on that policy. The Government Finance Officers Association 7 ����� PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING FEBRUARY 8, 2007 (GFOA) who is the City's finance officers group recommended a maximum of ten years to contract with an audit firm. He stated the finance department was currently working on Section 29, University Park, and other bond issues and staff was requesting the contract to be extended in order to deal with those matters. Councilman/Member Spiegel suggested extending the contract for one year and revisit the matter at that time to consider whether to initiate a new RFP. Mr. Gibson agreed. Councilman/Member Spiegel moved to, by Minute Motion, approve the extension of the subject contract with Lance Soll&Lunghard LLP, Brea, California, as amended, with a one-year extension of the contract, staff directed to bring the matter back at the appropriate time for a discussion on further extension or initiation of a new RFP for Auditing Services. Motion was seconded by Ferguson and carried by a 5-0 vote. XII. RES�LUTIONS A. RESOLUTION NO. 07-8 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, AMENDING THE FISCAL YEAR 2006/07 BUDGET AS A RESULT OF MID-YEAR ADJUSTMENTS. Mr. Gibson stated that staff reviewed the mid-year analysis through December and was recommending a $500,000 change. The change was due to the property taxes received and other changes in the expenditure for an increase of about $310,000. The larger items were the Art of Food & Wine Festival and the Engineering for construction. Councilman Spiegel moved to waive further reading and adopt Resolution No.07-8. Motion was seconded by Benson and carried by a 4-1 vote, with Ferguson voting NO. B. RESOLUTION NO. 07-9 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, WHEREIN THE CITY COUNCIL HEREBYAUTHORIZES THE SUBMITTAL OF AN APPLICATION TO THE CALIFORNIA DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT FOR GRANT FUNDING UNDER THE WORKFORCE HOUSING REWARD GRANT 2006 PROGRAM; THE EXECUTION FOR SUCH FUNDING AND ANY AMENDMENTS THERETO; AND ANY RELATED DOCUMENTS NECESSARY TO PARTICIPATE IN THE WORKFORCE HOUSING REWARD GRANT 2006 PROGRAM. Councilman Spiegel moved to waive further reading and adopt Resolution No. 07-9. Motion was seconded by Benson and carried by a 5-0 vote. 8 DRA�T PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING FEBRUARY 8, 2007 XIII. ORDINANCES For Introduction: None For Adoption: None XIV. NEW BUSINESS None 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 meeting of January 25, 2007). Councilman Spiegel moved to continue the matter to the meeting of February 22, 2007. Motion was seconded by Ferguson and carried by a 5-0 vote. XVI. OLD BUSINESS A. REQUEST FOR AWARD OF CONTRACTS FOR THE WESTFIELD BUS BAY PROJECT. Councilman Spiegel stated it was brought to his attention that SunLine did not view the proposed plans and recommended continuing the item to provide them the opportunity to do so. Councilman Spiegel moved to continue this matterto the next meeting. Councilman Ferguson seconded the motion. Responding to Councilman Ferguson's comment, Mayor Kelly affirmed the project had been in the works for some years but had been revised several times; he thought SunLine had already seen the latest revisions. Ms. Riddle stated SunLine was aware of the project, aware that it's a turnout, the bus pad, and the shelter. She said staff currently did not have a design specifically for the shelter, but approval of this item would initiate the contracts necessary for that purpose, with the exception of the bus turnout. 9 f^�'` ��t..�� PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING FEBRUARY 8, 2007 Councilman Ferguson was concerned the City would be in a situation where SunLine wouldn't agree with the location of the bus stop and wouldn't provide service. Ms. Riddle stated SunLine was on board with the location because there was currently a stop there now, and it was also part of the Comprehensive Operation Analysis (COA). Upon further question, Ms. Riddle replied there was an ongoing issue with turnouts in general throughout the City, but not at that location. MR. MfKE OGLESBY, SunLine General Manager, stated there was no concern, he only wanted the opportunity to work together with staff as they moved forward with the project. He stated that he personally had received very little documentation or communication on the project and seeing that SunLine would be providing transportation to that location, he wanted to be kept informed. Mr. Ortega suggested it was a good time to ask SunLine to conduct a meeting not only regarding the bus project but also tie in some of the other items requested (i.e., Comprehensive Operational Plan Standards for Turnouts) by the City. Mayor Kelly agreed both meetings needed to be held, but was concerned the bus shelter would be held up by combining it with larger scope matters. Councilman Spiegel stated SunLine already agreed to meet and recommended that a date and time to be coordinated between the City and SunLine on the following day. He also requested to be part of that meeting, since he was already the City's designated representative to SunLine. Councilman Ferguson stated a smaller group meeting would be more productive and agreed the City's representative to SunLine and an alternate to be part of that meeting. Mayor Pro Tem Benson agreed to be the alternate. Councilman Spiegel and Councilman Ferguson agreed to amend their motion to continue the matter to the meeting of February 22, 2007, with staff to set up a meeting between SunLine, City Councilmembers Spiegel and Benson, and appropriate staff to discuss the project in the interim. Mayor Kelly called for the vote and it carried by a 5-0 vote. 10 �"y!� !!� 1�'�'"� PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING FEBRUARY 8, 2007 B. REQUEST FOR AWARD OF CONTRACT FOR THE MONTEREY AVENUE BRIDGE EXPANSION JOINT REPAIR PROJECT (CONTRACT NO. C23900A, PROJECT NO. 643-05). Councilman Spiegel moved to, Minute Motion: 1)Award the subject contract in the amount of $73,000 to J. McLoughlin Engineering Company, Inc., Rancho Cucamonga, California; 2) approve a 10% contingency for the project in the amount of $7,300; 3) authorize the Mayor to execute the agreement — funds are available in Account No. 400-4343-433-4001. Motion was seconded by Finerty and carried by a 5-0 vote. Responding to question about combining the Environmental Impact Report (EIR) with the Expansion Joint Repair and other issues along that corridor, Mr. Greenwood responded the City successfully separated the maintenance issue from the EIR for the future widening. Approval of the subject project should be a benefit because part of the purpose was to reduce the gap at the edges of the bridge to reduce the noise. He added that staff was proceeding with the City of Rancho Mirage staff on traffic study analysis to bring the project forth to both City Councils. Mayor Kelly called for the vote and it carried by a 5-0 vote. C. REPORT REGARDING RIVERSIDE COUNTY TENTATIVE TRACT MAP NO. 34305 (Peter Scheer, Applicant). Mr. Erwin noted the letter that was presented at the Riverside County Board of Supervisors meeting by the finro Councilmembers appointed to attend. He noted no action was required. Councilmember Finerty stated she was happy with the letter, but even more pleased with the action of the Board of Supervisors, they unanimously voted in support of the City's requested conditions. XVII. PUBLIC HEARINGS A. REQUEST FOR APPROVAL OF THE UNIVERSITY PARK MASTER PLAN DEVELOPMENT AGREEMENT AS IT RELATES TO 190 +/- ACRES GENERALLY LOCATED SOUTH OF GERALD FORD DRIVE AND EAST OF PORTOLA AVENUE - 73-500 COLLEGE DRIVE Case No. DA 06-02 Related To C/Z 06-04 (Palm Desert Funding Company, LP, Applicant). Mr. Smith stated the item was a request for a Master Plan Development Agreement. He noted the Master Plan for the University Park Area had already been approved. In addition,the Planning Commission had approved a series of Tentative Tract Maps last summer. At this point, the Applicant was seeking approval of the Development Agreement to vest and guarantee its right to develop the projects, which the City already approved. The 11 ����� PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING FEBRUARY 8, 2007 Planning Commission considered this request in January and recommended approval. He offered to answer questions. Responding to questions about the project, Mr. Smith confirmed the agreement would not change anything in the General Plan and included 1,060 units covering more than 190 acres with a density of 4.5. Mayor Kelly asked what would the development agreement accomplish; he didn't understand why the City needed to consider the request. Mr. Smith replied Council didn't have to approve the request, because Council had already approved the four Tentative Maps and the proposal by Laing Homes in that area. However, the developer of the area was seeking an extension on the time frame to perform; up to 10 years. He said the Tentative Maps would be approved for two years with possible extensions. He pointed out, that the City inserted part of Section 6 into the agreement, requiring specific performance on the development of the park sites. There are four parks sites in the area which would be developed by each developer, and this agreement would assure that the parks are developed in a timely fashion to coincide with the first resident. Upon further question, he replied almost all the streets and roads were included in the Tract Map that is part of the Assessment District. Mayor Pro Tem Benson asked for clarification of the additional 10 years. Mr. Smith replied that it was not an additional 10 years, but a total of 10 years. He stated the maps were originally approved for two years with possible annual extensions. He further responded, the agreement did not provide for extensions beyond the 10 years and would require another action to extend. Mayor Pro Tem Benson stated Council has gone through a similar situation once before, where additional time past the 10 years was requested. She believed that if a project wasn't completed in 10 years, the developer was just waiting for the value of the {and to go up. She was opposed to granting anyone 20 years to develop. Councilman Ferguson asked if the Community Facilities District (CFD) included the maintenance of the parks. Mr. Gibson replied the maintenance was not included in the CFD, it was strictly the construction. Responding to question, Mr. Smith replied he had the Master Plan version with the undulated line that delineated the City's 170 acres from the development. Upon request, he displayed the latest version on the overhead. 12 �� � �� PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING FEBRUARY 8, 2007 Mr. Erwin stated that approval of the proposed Development Agreement would amend the Wonder Palms Development Agreement, which currently covered a portion of the property and provided for a different type of development. Mayor Kelly declared the public hearing open and invited testimony in FAVOR OF or in OPPOSITION TO this matter. MR. THAD WATKINS, stated he worked for Hover Development and confirmed the location map was recorded some time ago, with all the details worked out, and the line was undulated. MR. BRIAN MCCONNELL, President of Montecito Homeowners Association, Palm Desert, requested a visual presentation by staff on the project. Mr. Smith stated Council approved the Master Plan last summer. The area is north of Frank Sinatra Drive, east of Portola Avenue, West of Cook Street, and south of Gerald Ford Drive which includes 190 acres. He went on to describe the project in detail, covering the density of all the adjacent Parcels and pointing out Parcel B was the Laing Homes proposal for 191 condominium units and previously approved Tentative Map 32655 for 268, 9,000 square foot lots. He noted that currently Parcel A had no proposal. He pointed out the shaded green areas on the overhead to reflect the four parks. MR. MGCONNELL stated it was cheap to build parks, but costly to the City to maintain. He asked if the City had any projections on the costs to maintain and operate the parks. Mr. Ortega answered yes, and stated those projections will be provided to the Council when staff presents the Budget; staff had a five-year projection that included the maintenance of those parks and can be discussed during the Budget deliberations. With no further testimony offered, Mayor Kelly declared the public hearing closed. Councilman Spiegel moved to waive further reading and pass Ordinance No. 1132 to second reading, approving Case No. DA 06-02. Motion was seconded by Ferguson with the projection figures to be provided to Council prior to the second reading. Mayor Pro Tem Benson stated she was still concerned with providing 20 years to develop. She said she was unclear about the procedure and wondered if her colleagues agreed with her. Mr. Erwin pointed out the Wonder Palms Agreement was a longer agreement, and app�oval of the subject agreement would reduce it. 13 �� I� ��;p PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING FEBRUARY 8, 2007 Councilman Spiegel disagreed, he understood it to mean an initial term of 10 years, with possible extensions but not mandatory, as it's written in the agreement. Mr. Erwin stated the extensions would require a public hearing before the Planning Commission and then City Council. Responding to additional questions, Mr. Erwin explained that it was a contract, and any extension granted required the consent of both parties and felt there was a clear understanding that it would need to return to Council. Mayor Kelly stated he would vote no, because he did not see the need for it and thought it was previously decided that Council would see each project as they came. He recalled previously approving one and knew this project was already approved, so he didn't see why Council couldn't do the rest in the same manner. Mr. Smith replied that Council would see each project and afready had, with the exception of Parcel A. He said building permits for Parcels B, C, D, E, and F have already been issued, and the maps have already been approved. Responding to question as to whythis development agreement was needed, Mr. Smith replied that it was the time issue; when the time ran out, the Applicant could request an extension. Further responding, he made reference to page 6 which stated "Term shall terminate on the 10`n anniversary date unless sooner terminated or extended, as provided hereinafter." Councilman Ferguson withdrew his second motion. Mayor Pro Tem Benson seconded the motion and it FAILED on a 4-1 vote, with Benson, Ferguson, Finerty, and Kelly voting NO. Mr. Erwin affirmed no further action was required of the Council; however, he pointed out the Wonder Palms Development Agreement still existed and impacted the parks. Also, there was a request for additional issuance of the bonds, and title opinion for the City to have clear title to the parks. He said he was currently not prepared to address that with the Wonder Palms Agreement in covering pa�ts of those parks. Mayor Kelly stated the City had individual projects approved and when those individual projects are build, there should be no problem with putting the parks in as approved. Mr Erwin stated the City would have a problem accepting the title from them. Councilman Ferguson pointed out that the vote failed which meant Council neither denied or approved the request. He said it provided the Applicant an 14 � �� �. PRELIMINARY MINUTES { �� ���� REGULAR PA�M DESERT CITY COUNCIL MEETING FEBRUARY 8, 2007 opportunity to listen to Council's concerns and retool their presentation and see what transpired. Mr. Erwin encouraged Council to reconsider, perhaps, changing their minds and recommended continuing the matter to the next meeting. Upon request for input, Mr. Gibson stated Council approved a $70 million bond issue for University Park last April of which the City issued $50 million. An additional $20 million was requested, and Mr. Dave Erwin and bond counsel advised that the City couldn't do it unless it had this agreement. The City will now have to inform the developers that the City can't give them the $20 million. Mr. Gibson stated that Council action on this item would affect that portion of the agreement. He went on to say that staff was planning on presenting the $20 million bond issue at the next Council Meeting. Mayor Kelly re-opened the public hearing and left it open. Councilman Ferguson moved to continue the matter to the meeting of February 22, 2007. Motion was seconded by Spiegel and it carried by a 5-0 vote. Councilmembers concurred that a staff report needed to be provided with an explanation of exactly what would be involved if they approved or didn't approve the development agreement. XVIII. REPORTS AND REMARKS A. CITY MANAGER 1. Coachella Valley Water District Sewer(CVWD) Project— Mr. Ortega said he'd asked Mr. Greenwood to provide an update on how the City is handling the subject project, given concem raised by residents because of the work being done at night. Mr. Greenwood commented that the project was a significant one that was traversing Palm Desert from the Sewer Treatment Plant on Cook Street to the intersection of Monterey Avenue/Country Club Drive, where it then enters the City of Rancho Mirage and will continue in a subsequent phase. He noted the work already done on Cook Street and in front of the City's Corporation Yard on Avenue 42. The project was now on Hovley Lane, which was a narrow roadway where the pipe had to be laid fairly deep. Before the project started, City staff metwith area residents, MarriottTimeshare Management, and James Carter Elementary School staff to develop the best way to handle traffic control during the construction. After serious thought, it was determined the best way to do that would be to construct the project at night. However, since the work began this week, numerous Canterra Apartments residents reported the work was keeping them 15 ����� PRELIMINARY MINUTES REGU�AR PALM DESERT CITY COUNCIL MEETING FEBRUARY 8, 2007 up at night. An emergency meeting has been scheduled for tomorrow with City staff, CVWD, the contractor, management of the Apartments, the Timeshares, and the School, to see if there was an alternative to relieve the construction issues for the residents. Upon question, he said the project will be on Hovley Lane East for at least a month and then in the intersection of Portola Avenue/Hovley Lane for another month. B. CITY ATTORNEY None C. CITY CLERK 1. Reminder of Joint City Council, Redevelopment Agency, Housing Authority Study Session to Review FY 2006/07 Project Status, Thursday, February 15, 2007, 1:00 p.m. - 3:00 p.m. Mrs. Klassen reminded City Councilmembers of the upcoming Study Session. D. PUBLIC SAFETY a Fire Department None o Police Department None E. MAYOR AND MEMBERS OF THE CITY COUNCIL o City Council Requests for Action: None o Citv Council Committee Reports: 1. Parks&Recreation Commission Councilman Spiegel reported on the following activities: a)Disc GolfTournament—successful firsttournament held last weekend at the Course located at the Palm Desert Soccer Park, with 60 participants from as far away as Redlands. 16 � �� �°� ,�, � �: PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING FEBRUARY 8, 2007 b) Palm Desert Senior Games — there would be a dinner tomorrow night for participants in the Games, Willie Mays was scheduled to speak. Over 1,000 people were signed up so far this year, most from outside Palm Dese�t. Track and field and basketball events were being held at the High School, softball would be played on the Civic Center fields, with lawn bowling held at the Senior Center. The Games started today with golf at Desert Willow, the bulk of the events were being held Friday and Saturday. c) Freedom Park — scheduled to be open around early April, with the dedication being planned for later. o City Council Comments: 1. Mayor Pro Tem Benson had been researching newspapers in preparation for Bob Downs' funeral service this weekend. When he ran for City Council in 1984, the main issue was fixing the roads, transportation and good traffic flow so that it wasn't disrupted all year long, and she found it interesting that the issues were about the same 22 years later. During that same election, she herself was accused of scaring people from building on the hillsides because it would start a building bonanza there that wouldn't stop, which was also interesting to her given City Council's consideration of the Peter Scheer application discussed earlier in this meeting. XIX. ADJOURNMENT Upon a motion by Spiegel, second by Ferguson, and unanimous vote of the City Council, Mayor Kel�y adjourned the meeting at 5:25 p.m. RICHARD S. KELLY, MAYOR ATTEST: RACHELLE D. KLASSEN, CITY CLERK CITY OF PALM DESERT, CALIFORNIA 17