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HomeMy WebLinkAboutPRELIM - CC - 01/11/07 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING THURSDAY, JANUARY 11, 2007 CIVIC CENTER COUNCIL CHAMBER I. CALL TO ORDER - 3:00 P.M. Mayor Kelly convened the meeting at 3:01 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 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 Walt Holloway, Battalion Chief, Palm Desert Fire/Riverside Co. Fire Dept./CDF Ignacio Otero, Chief, Palm Desert Fire/Riverside Co. Fire Dept./CDF Jorge Rodriguez, Fire Marshal/Battalion Chief/Palm Desert Fire/Riverside Co. Fire Frank Taylor, Asst. Chief, Palm Desert Police/Riverside Co. Sheriff's Dept. Grace L. Mendoza, Deputy City Clerk 111. ADJOURN TO CLOSED SESSION 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 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 11, 2007 Audit. Investment & Finance Committee Reappoint Russell Campbell (term 1/1/07 - 12/31/10). Buildina Board of Aaqeals & Condemnation Reappoint Denise R. Poeltler and Walter F. Pruter(terms 1/1/07- 12/31/10). Appoint Eric Vogt to fill Ken Stendell's vacancy (term 1/1/07 - 12/31/09). Historic Preservation Committee Reappoint D. Kent Routh (term 1/1/07 - 12/31/10). Appoint Vera Handley to fill Jim West's vacancy (term 1/1/07 - 12/31/07). Appoint Don Graybill to Alternate Position (term 1/1/07 - 12/31/10). Housinq Commission Reappoint John Leo Sullivan (term 1/1/07 - 12/31/10). Library Promotion Committee Reappoint Joan Beasley and Louise Kermode (terms 1/1/07 - 12/31/10). Appoint Lawrence J. Guzzetta to Lynn DeSantis' vacancy (term 1/1/07 - 12/31/10). Marketing Committee Reappoint Norine A. Bowen and Michael Shimer(terms 1/1/07 - 12/31/10). Parks & Recreation Commission Reappoint A. Phill Babcock (term 1/1/07 - 12/31/10). Appoint James David Garcia to Connor LimonYs vacancy(1/1/07-12/31/08). Planning Commission Appoint M. Connor Limont to Cindy Finerty's vacancy (term 1/1/07 - 12/31/10). Appoint Mari Schmidt to Jim Lopez's seat (term 1/1/07 - 12/31/10). Project Area #4 Committee Reappoint Harry Church, Jane W. Daugherty, Douglas Luhring, and Sherry Trevor (terms 1/1/07 - 12/31/10). Public Safety Commission Reappoint James H. Larsh and Rick Lebel (terms 1/1/07 - 12/31/10). CV Mosquito & Vector Control District Appoint Doug Walker to Art McKay's vacancy (term 1/1/07 - 1/31/09). Councilman Ferguson congratulated all those present for the appointment or reappointment. 3 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 11, 2007 VI. CONSENT CALENDAR A. MINUTES of the Regular City Council Meetings of December 14, 2006, and December 28, 2006. Rec: Approve as presented. B. CLAIMS AND DEMANDS AGAINST THE CITY TREASURY - Warrant Nos. 118, 119, 120, and 121. Rec: Approve as presented. C. APPLICATION FOR ALCOHOLIC BEVERAGE LICENSE by ECM Restaurants, Inc., for Cosmo's, 73-155 Highway 111, Palm Desert. Rec: Receive and file. D. CITY COMMITTEE AND COMMISSION MEETING MINUTES. 1. Historic Preservation Committee Meeting of November 28, 2006. 2. Parks & Recreation Commission Meeting of November 21, 2006. 3. Public Safety Commission Meeting of November 8, 2006. 4. Youth Committee Meeting of November 7, 2006. Rec: Receive and file. E. RESIGNATION of Bill Veazie —Audit, Investment & Finance Committee. Rec: Receive with very sincere regret. F. LETTER OF RESIGNATION from Ken Stendell — Building Board of Appeals & Condemnation. Rec: Receive with very sincere regret. G. LETTER OF RESIGNATION from Art McKay—Coachella Valley Mosquito & Vector Control District. Rec: Receive with very sincere regret. H. RESIGNATION of Ray Rodriguez, Jr. — Marketing Committee. Rec: Receive with very sincere regret. 4 _ PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 11, 2007 I. REQUEST FOR APPROVAL of Amendment No.2 to Contract No. C23340 — Professional Services Associated with the Section 29 District Formation. Rec: By Minute Motion, approve Amendment No. 2 to the subject contract with MuniFinancial, Temecula, California, in a total amount not to exceed $24,000 for additional professional services associated with the Section 29 District formation — funds are available in Trust Account No. 610-0000-228-2100. J. REQUEST FOR APPROVAL of Amendment No. 1 to Contract No.C23340A—Professional Services Associated with the Section 29 Benefit Assessment District Formation. Rec: By Minute Motion, approve Amendment No. 1 to the subject contract with MuniFinancial, Temecula, California, in a total amount not to exceed $13,000 for additional professional services associated with the Section 29 Benefit Assessment District formation — funds are available in Trust Account No. 610-0000-228-2100. K. REQUEST FOR APPROVAL of Change Order No. 1 to Contract No. C25270 — Traffic Signal Installation at Highway 74 and Shadow Mountain Drive. Rec: By Minute Motion: 1) Approve Change Order No. 1 in the amount of $17,180.89 to the subject contract with Granite Construction Company, Indio, California; 2) authorize the transfer of said funds from contingency to base for the contract; 3) authorize the Mayor to execute Change Order No. 1. L. REQUEST FOR ACCEPTANCE OF WORK for Contract No. C24360A— Citywide Arterial Slurry Seal Program (Project No. 751-06A) (Pavement Coatings Company, Cypress, CA). Rec: By Minute Motion, accept the work as complete and authorize the City Clerk to file a Notice of Completion for the subject project. M. REQUEST FOR ACCEPTANCE OF WORK for Contract No. C24480 — Calle de los Campesinos Resurfacing Improvements (Project No. 608-04) (D & L Wheeler Enterprises, Yucaipa, 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. 5 ._ PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 11, 2007 N. REQUEST FOR APPROVAL of One-year Lease Agreement with Palm Desert Sister Cities Foundation and Ratify Staff's Approval of Occupancy at Portola Community Center (Contract No. C26120). Rec: By Minute Motion: 1) Approve one-year Lease Agreement with Palm Desert Sister Cities Foundation to occupy Office Space No. 6 at the Portola Community Center at an annual cost of$2,340; 2) ratify staff's approval to allow the organization to occupy office space within the Portola Community Center as of January 1, 2007. O. CONSIDERATION of Request from Soroptimist International of Palm Desert for Sponsorship of the 11th Annual Art & Wine Tour of EI Paseo. Rec: By Minute Motion, approve sponsorship of the 11t'' Annual Art and W ine Tour of EI Paseo on Friday, February 16, 2007, and appropriate funds from the Unobligated General Fund in an amount not to exceed $1,400 for expenses associated therewith. Upon a motion by Spiegel, second by Ferguson, and 5-0 vote of the City Council, the Consent Calendar was approved as presented. VII. CONSENT ITEMS HELD OVER None VII1. RESOLUTIONS None IX. ORDINANCES For Introduction: None For Adoption: A. ORDINANCE NO. 1124 - AN ORDINANCE OF THE CITY COUNCIL OF THE CITYOF PALM DESERT, CALIFORNIA,ADOPTING LOCAL ENERGY EFFICIENCY STANDARDS FOR BUILDINGS COVERED BY THE 2005 CALIFORNIA BUILDING ENERGY EFFICIENCY STANDARDS. Mr. Conlon noted the Ordinance was a revised copy, in that since its introduction, an administrative revision was made.The revision did not affect the perFormance goals of the Ordinance; it only provided more flexibility. The 6 _ PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 11, 2007 change was made to Section 24.30.040 of the Ordinance, located on page 3. It was decided, after meeting with members of the Building Industry Association (BIA), to include an exception that provided the builder a little more latitude in accepting alternate designs. Energy Star certified homes were homes conforming to the California Greenbuilder. Also included were the Leadership in Energy and Environmental Design(LEED)homes,with the stipulation that documentation submitted showed their proposed design met the intent of the Ordinance. Councilman Ferguson stated there was a big difference between "meets the intent of the Ordinance" and "meets the Ordinance." Mr. Conlon replied that achieving a 10% reduction would meet the Ordinance. Councilman Ferguson asked Mr. Conlon if he was satisfied those programs would enable builders to do so, or some menu of each of those program. Mr. Conlon replied he was satisfied that before a building permit was issued from the City of Palm Desert,documentation was submitted that proved their home met or exceeded the Ordinance. Councilman Spiegel asked the City Attorney if Council can change its own Ordinance without doing it all over again. Mr. Erwin answered it could. Mr. Conlon stated there were no further changes and recommended approval. MR. JAMES BROWNYARD, Building Industry Association, Desert Chapter, stated he was present on behalf of Mr. Fred Bell, who was unable to be present and sent his regrets; Mr. Bell was attending the BIA's board meeting. He noted a letter was sent to Mr. Conlon accepting the changes to the Ordinance and believed it was quite satisfactory. He said it was a long, hard road for everyone involved and appreciated that Councilman Ferguson and Council directed staff to make the language changes to add flexibility to the Ordinance. He believed it was a more open-minded document as long as the standards were attained, and they were more than willing to work with the City to do so. Councilman Ferguson moved to waive further reading and adopt the revised version of Ordinance No. 1124. Motion was seconded by Finerty and carried by a 5-0 vote. 7 _ PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 11, 2007 B. ORDINANCE NO. 1130 - AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, RESCINDING ORDINANCE NOS. 526, 526A, 546, 774, 780, 797, 804, 815, 831, 832, 834, 835, 836, 844, 845, 876, 877, 878, 879, 910, 911, 913, 921, 949, 950, 951, 952, 953, 954, 955, 956, 957, 958, 959, 960, 961, 994, 995, 996, 997, 998, 999, 1000, 1002, AND 1005, AND AMENDING SECTION 10.36.010 OF TITLE 10 OF THE CODE OF THE CITY OF PALM DESERT, CALIFORNIA, RELATIVE TO SPEED ZONES. Councilman Ferguson moved to waive further reading and adopt Ordinance No. 1130. Motion was seconded by Finerty and carried by a 4-1 vote,with Kelly voting NO. X. NEW BUSINESS A. REQUEST FOR APPROVAL OF THE RENAMING OF THE PALM SPRINGS DESERT RESORTS CONVENTION AND VISITORS AUTHORITY (PSDRCVA) TO THE PALM SPRINGS DESERT RESORT COMMUNITIES CONVENTION AND VISITORS AUTHORITY (PSDRCCVA). Mr. Ortega noted a letter was received from Authority President/CEO, Jeff Beckelman with the Convention and Visitors Authority. He said that based on action taken at the Authority meeting, it required the City approve the changing of the Authority's name to Palm Springs Desert Resort Communities Convention and Visitors Authority. He said approval by a two-thirds vote of Authority Members was required. He noted staff's recommendation was included in the staff report. Councilman Spiegel stated the request was brought to their last Authority meeting, and he felt it was the best compromise that could be made. He stated the area will always be known as Palm Springs, but at least it will now be the Palm Springs Desert Resort Communities, which it was. The Authority Board unanimously approved the change. Councilman Spiegel moved to, by Minute Motion, approve the Authority's renaming to the Palm Springs Desert Resort Communities Convention and Visitors Authority. Motion was seconded by Ferguson. Councilman Ferguson asked what Mayor Pro Tem Benson's thoughts were on the name change. Mayor Pro Tem Benson replied that it added another dimension and was more inclusive; therefore, she was supportive of the name change. Mayor Kelly called for the vote, and the motion carried by a 5-0 vote. 8 ._ PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 11, 2007 B. REQUEST FOR AWARD OF CONTRACT FOR CONSTRUCTION OF THE REMAINDER OF THE CITY OF PALM DESERT TRAILS SYSTEM (CONTRACT NO. C26130). Councilman Spiegel moved to, by Minute Motion: 1) Award the subject contract to Michael Schuler, Palm Desert, California, in the amount of$394,350 and authorize a 10% contingency for the project in the amount of$39,435 for construction of the Art Smith Trail extension, Art Smith Trail extension past water tanks, Hopalong Cassidy Trail extension to Cat Canyon, Herb Jeffries Trail to Bump N' Grind Trail, Hopalong Cassidy Trail extension Cahuilla Hills to Herb Jeffries Trail, Homestead Trail to Cat Canyon extension, Herb Jeffries to Painters Path, and Painters Path to lower Bump N' Grind Trail, subject to City Attorney concurrence; 2) appropriate an additional $65,826 to Trails Construction Account No.430-4636-454-4001 and authorize the Mayor to execute said contract. Motion was seconded by Ferguson. Ms. Finerty stated she would be pleased to see this item approved because it was in concert with the Parks & Recreation survey results. Mayor Kelly called for the vote, and the motion carried by a 5-0 vote. Mayor Kelly added he hoped there would be a good press release, because he suspected Palm Desert was the only City that ever spent money for the trail system surrounding the Coachella Valley. C. REQUEST FORAWARD OF CONTRACT FOR CIVIC CENTER WELL SITE LANDSCAPE RENOVATION (CONTRACT NO. C26140). Councilman Ferguson moved to, by Minute Motion: 1) Award the subject contract to Hort Tech, Inc., Palm Desert, California, in the amount of$29,258.06; 2)approve a 10% contingency for the project in the amount of$2,926; 3)authorize the Mayor to execute the agreement — funds are available in Account No. 400-4614-433-4001. Motion was seconded by Spiegel and carried by a 5-0 vote. Mayor Pro Tem Benson moved to add consideration of Riverside County Tentative Tract Map No. 34305 - Stone Haven to the City Council Agenda. Motion was seconded by Finerty and carried by 4-0 vote, with Ferguson ABSENT. (Please refer to Redevelopment Agency Meeting Minutes of January 11, 2007, Section VII I - Oral Communications = B for discussion leading up to this point.) 9 _ PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 11, 2007 D. CONSIDERATION OF RIVERSIDE COUNTY TENTATIVE TRACT MAP MAP NO. 34305 - STONE HAVEN. Councilman Ferguson stated he would be abstaining on this matter because he represented Mr. Befeld and had for many years; by law, he was required to leave the room. Mr. Ortega stated that on August 29, 2006, with the approval of Council, then-Director of Community Development submitted a letter to the Riverside County Planning Department regarding Tentative Tract 34305 Stone Haven. In the letter, the City of Palm Desert indicated they did not object to the proposed tract map and hillside development, provided conditions of approval were included. Within that letter, five conditions were listed. One of the conditions was a provision to ensure that grading and any other ground disturbance be limited to the designated pad areas, roads, and driveways. The proposed development illustrated other pads than those limited to pad areas for homes, roads, and driveways. It was his recommendation that someone from the Engineering and Planning Department, review it, because if the Board of Supervisors was going to approve any project, the City needed to make sure they complied with the City's conditions of approval. The second condition he felt the City should look at and require as a condition of approval was that the City shall continue to have the opportunity to review and comment on all future aspects of the project, including grading, site planning, building, landscaping, and architecture. Clearly, it was the City's intent there be a condition that required the County to provide the City the ability to comment. He said those were the two areas of concern and recommended that Council assign planners or engineers to make sure at least those two conditions were being met; all the other conditions were being honored. Mayor Kelly asked if it was appropriate for Council to instruct a representative from the Planning Department to appear at that particular hearing. Mr. Ortega agreed, and to also review the plans that appeared in the surrounding area. Councilman Spiegel asked if it made sense to send someone from the Council to the meeting. Mr. Ortega replied if Council so desired, it did. Councilmember Finerty stated she's spoken a lot on the subject of hillside development, and the simulated renderings illustrated a slap in the face to the City of Palm Desert's Hillside Ordinance. She said the residents were 10 .— PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 11, 2007 heard loud and clear, as a result of the Hagadone matter, and to allow something like this to go forward without significant input to the County when the property abuts the City of Palm Desert on three sides, was going to be very unpopular. She said Council heard over and over again from residents to not allow hillside development or have it turned into another Orange County, Corona, or San Diego. She said she was deeply appalled when she saw the renderings. The egregious amount of cut and fill was a total contrast to the Hillside Ordinance. She understood the tract map was approved on the consent calendar but felt a better look needed to be taken, because she didn't believe the City had this tentative tract map at the time it appeared on the consent calendar. Responding to question, Councilmember Finerty replied she would like to phrase a motion that directed staff to look at the matter and provide a report with an opportunity for Council to meet prior to the County Board of Supervisors meeting on January 23. She felt the City needed to send a clear message to the County Board of Supervisors about which direction the City of Palm Desert's hillside development needed to go. Mayor Kelly noted that could be done this evening. Councilmember Finerty stated she would be happy to take action this evening but thought for Council's benefit, that staff needed to review the matter and provide a report to Council and convene prior to January 23, because the next City Council meeting was two days after the County Board of Supervisors' meeting. Councilman Spiegel asked if Council could give authority to a member of the Council to work with staff and come up with an agreement as to what should be presented to the County. Mayor Pro Tem Benson asked if the renderings were simulated pictures of what it may Iook like. MR. BEFELD replied they were computer generated pictures of homes that exist at Cahuilla Hills, but accurate relative to the fill. Mayor Kelly thought this was similar to the Hagadone situation, where two Councilmembers were authorized to work with staff. He suggested doing the same. Councilmember Finerty moved to, by Minute Motion, appoint Mayor Pro Tem Benson and Councilmember Finerty to a subcommittee to review the matter and work with staff to prepare a statement and appear and present it before the Riverside County Board of Supervisors Meeting on January 23, 2007. 11 �— PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 11, 2007 MR. BEFELD stated the conditions the City sent to the County never got incorporated, so he believed this would be an excellent effort. Councilman Spiegel seconded the motion, and it carried by a 4-0 vote, with Ferguson ABSENT. XI. CONTINUED BUSINESS A. MINUTES OF THE REGULAR CITY COUNCIL MEETING OF OCTOBER 26, 2006 (Continued from the meetings of November 16 and December 14, 2006). Councilman Spiegel moved to, by Minute Motion, continue the Minutes of October 26, 2006, to the meeting of January 25, 2007. Motion was seconded by Finerty and carried by a 4-0-1 vote, with Councilman Ferguson ABSTAINING. XII. OLD BUSINESS A. CONSIDERATION OF THE COMMISSIONING OF VETERANS MEMORIAL AT FREEDOM PARK (CONTRACT NO. C23420). Councilmember Finerty stated the art piece was recognizable, she understood and could appreciate it. Councilmember Finerty moved to, by Minute Motion: 1) Accept and approve the design for the Veterans Memorial at Freedom Park by Romo Studios; 2) authorize the Mayor to execute said contract in the amount of$251,680—funds are available in Account No. 436-4650-454-4001. Motion was seconded by Ferguson. Councilman Ferguson commented that he and Mayor Kelly had been working with a number of artists on this for almost 1 '/2 years, and although, the creative people called them "plain folk," the City now had an art piece thatwas moving,touching,and communicated what freedom was in America and the loss many have experienced with their sons and fathers dying in war. He thought it was absolutely spectacular; and for those that have not seen the piece, the maquette was in the Mayor's office. Mayor Kelly called for the vote, and the motion carried by a 5-0 vote. B. REQUEST FOR APPROVAL OF CHANGE ORDER NO. 1 TO CONTRACT NO. C25570 — SECTION 29 ASSESSMENT DISTRICT, NO. 2004-02, SEWER INSTALLATION PHASE I. Mr. Ortega stated a staff report was provided with staff recommending approvaL 12 �— PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 11, 2007 Councilman Spiegel asked if it was part of an assessment district. Mr. Ortega replied it was part of Section 29, and the City agreed to do this work ahead of time. Councilman Spiegel moved to, by Minute Motion: 1)Approve Change Order No. 1 in the amount of $63,407.91 to the subject contract with Jones Bros. Construction Company, Coachella, California; 2) authorize the transfer of said funds from contingency to base for the contract; 3) authorize the Mayor to execute Change Order No. 1. Motion was seconded by Finerty and it carried by a 5-0 vote. C. INFORMATIONAL REPORT ON THE MONTEREY AVENUE SIDEWALK FROM COUNTRY CLUB DRIVE TO FRANK SINATRA DRIVE. Councilman Spiegel thanked the City of Rancho Mirage. Councilman Spiegel moved to, by Minute Motion, receive and file the report. Motion was seconded by Finerty and carried by a 5-0 vote. XIII. PUBLIC HEARINGS A. REQUEST FOR APPROVAL OF ACTIONS RELATED TO THE PAYMENT FOR ACQUISITION AND DEVELOPMENT OF PROPERTY FOR CHILD CARE CENTERS LOCATED AT 44-911 CABRILLO AVENUE AND 75-433 ORANGE BLOSSOM LANE IN THE CITY OF PALM DESERT, AND AUTHORIZATION OF THE CONVEYANCE AGREEMENT AND ASSIGNMENT AND ASSUMPTION OF LEASES WITH THE REDEVELOPMENT AGENCY RELATED TO SAID PROPERTY (JOINT CONSIDERATION WITH THE PALM DESERT REDEVELOPMENT AGENCY). Mr. Ortega stated in order for the Agency to transfer properties to the City, a public hearing was first required as part of the process. Member Spiegel stated one of the centers would be run by Desert Sands Unified School District and the other by the YMCA of the Desert. Senior Management Analyst Catherine Walker agreed. Chairman/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. With no testimony offered, he declared the public hearing closed. Member/Councilman Spiegel moved to waive further reading and adopt: 1) City Council Resolution Nos. 07-1 and 07-2, and Redevelopment Agency Resolution Nos. 537 13 �— PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 11, 2007 and 538, making findings in accordance with Health and Safety Code Section 33431 and Sections 33445 and 33679 for the conveyance of property located at 44-911 Cabrillo Avenue, Palm Desert, California, and 75-433 Orange Blossom Lane, Palm Desert, California, from the Palm Desert Redevelopment Agency to the City of Palm Desert for the purposes of childcare/early education facilities; 2)by Minute Motion, approve Contract No. C26100,conveying the property located at 44-911 Cabrillo Avenue,the City of Palm Desert Early Childhood Education Center in conjunction with Desert Sands Unified School District, from the Palm Desert Redevelopment Agency to the City of Palm Desert; 3) by Minute Motion, approve: a) Contract No. C26110, conveying the property located at 75-433 Orange Blossom Lane, Palm Desert, California, the Jean M. Benson Child Care Center, from the Palm Desert Redevelopment Agency to the City of Palm Desert; b) Contract No. R11813 - Second Amendment to Lease, extending the Lease of the property located at 75-433 Orange Blossom Lane, Palm Desert, California, the Jean M. Benson Child Care Center. Motion was seconded by Ferguson and carried by a 5-0 vote. B. CONSIDERATION OF THE FORMATION OF CITY OF PALM DESERT BENEFIT ASSESSMENT DISTRICT NO. 1. Mr.Yrigoyen stated the Benefit Maintenance Assessment District was for the purposes of maintaining a retention basin,which would be developed as part of the Section 29 Assessment District. He stated the attached Engineer's Report outlined the location of that retention basin. The Assessment Engineer presented modifications to the Engineer's Report to reflect revised acreage for property owners in the proposed district, but the proposed modification did not increase any of the assessments. In accordance with the provisions of Government Code 53753 of Article XIIID of the California Constitution, the City gave notice by mail to the record owners of each of the identified parcels in the proposed district; notices were mailed on November 21, 2006. As required by law, each notice included an assessment ballot and a summary of the procedures with a completion form to be returned for tabulation. He offered to answer questions. Responding to Councilman Ferguson regarding the letter included in his packet from the firm of Gresham, Savage, Nolan, &Tilden, addressed to the City Attorney, Mr. Erwin stated he received the letter yesterday and a copy was forwarded to Council with the request for a continuance. He had no other comments to offer regarding it. Councilman Ferguson asked if there was any merit to their request. Mr. Erwin replied there wasn't. Mayor Kelly declared the public hearing open and invited public testimony in FAVOR OF or in OPPOSITION TO proposed Benefit Assessment District No. 1. MR. BILL CARVER, Palm Desert, stated their ballots were received, and he brought them with him to be hand-delivered. He stated he'd been in 14 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 11, 2007 negotiations with Monterey 170, the owner of the retention basin in question that's planned to be enlarged. He said in the transaction when the property was bought from Monterey 170, an agreement was worked out that provided access to that drainage facility for the disposition of water on their property. By doing so, they entered into an agreement regarding the cost that can be charged for maintaining the facility on their behalf. Considering that the proposed Assessment District would be five times larger than originally agreed, he questioned how a satisfactory agreement between both parties could be reached but felt they were closed to reaching one, which was the reason for the two-week continuance request on this item. MR. NATHAN GARN, with Gresham, Savage, Nolan, &Tilden, said he was representing Wal-Mart Real Estate Business Trust, Sam's Real Estate Business Trust, and RJ Ventures, LLC, who are all owners of parcels adjacent to Mr. Carver's. He stated his comments reflected those made by Mr. Carver, with the understanding they were not against the Benefit Assessment District or objecting to it, but that under the circumstances, the request for additional time was something they had to do. He said his clients all have vested legal rights contractually, and he wouldn't want something to occur that would lead to litigation down the road or have some type of infringement of their contractual rights vis-a-vis the Monterey entity. Councilman Ferguson addressed the question to both Mr. Carver and Mr. Garn, as to how close were the parties to reaching an agreement. MR. GARN replied that Mr. Carver was probably in a better position to answer that question. Councilman Ferguson acknowledged their request for a continuance but noted the City needed to move forward with the Assessment District. MR. TOM NOBLE, EI Paseo, Palm Desert, stated he agreed with comments made by Mr. Carver as to what's happened in this matter. He stated the original retention basin, which was in place in the project now, was being used by all the properties in Gateway, the commercial properties, Wal-Mart, Bill Carver, and Stan Rothbart properties. When they agreed to enlarge the retention basin that serves Section 29 properties, they missed the fact that a prior agreement already existed with Wal-Mart and the other commercial property owners. He stated it was their mistake, and they would basically owe the property owners for what they would have to pay over their original contractual obligation. He felt they were close to reaching a good faith agreement on both sides and certain they would because it was their obligation to do so. It was his understanding, after having his lawyers discuss the matter with City's Bond Counsel,that the votes could be counted and certified, and the formation of the districts could be continued to the next 15 — PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 11, 2007 meeting without causing any procedural problems. He stated that was fine with him, because it was their problem and not the City's. Councilman Ferguson stated his dilemma was he knew nothing about their dispute and the staff report only addressed the Assessment District and nothing about their dispute. He pointed out that everyone that had spoken was a lawyer, making it difficult for him to gauge whether the parties were actually close to reaching an agreement or just seeking a continuance. MR. NOBLE stated he would prefer the matter not be continued, although most would. He agreed to go along with a continuance for the comfort level it would afford the commercial property owners. He said it didn't matter to him whether the assessment district was approved in its entirety this evening. MR. GARN stated he was not a party to the negotiations, but another attorney in their office could comment as to how close they were to reaching an agreement. However, he did think it was in his clients' best interest to continue the matter. Councilman Ferguson stated the trouble he was having is that sometimes when a decision is made, it can trigger certain statutes of limitation and put litigation into play. He felt if there was a reasonable way to work this out without having to force that, it was something he was interested in. On the other hand, if the matter was continued for another two weeks for the parties to continue talking and there were no negative implications, or if Council moved forward as planned this evenir�g the parties still had the opportunity to reach an agreement, was the kind of guidance he was seeking. Mayor Kelly responded that one of the problems there, was that it might affect how the party voted. Councilman Ferguson agreed that was another variable. Mr. Erwin stated it was his understanding the Mayor could close the public hearing, count the ballots, and defer Council's decision for two weeks. Further, in answer to question whether or not the ballots were official once they were counted, he said they would be official. Mayor Kelly stated if the ballots were counted this evening and the matter was continued, it may fail based on the lack of the agreement. Councilman Ferguson agreed. Mr. Erwin stated that was the unknown because the ballots were sealed at this point. 16 — PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 11, 2007 MS. ROBIN HARRIS, Bond Counsel, Richards, Watson, & Gershon, stated this hearing was divided into two parts, and the part Council was presently conducting was the public testimony of the hearing. Once Council closed the public testimony portion, the ballots could then be counted, with no further testimony and no opportunity, at that point, for anyone to change, withdraw, or submit their ballot. If Council proceeded to close the public input portion, the City Clerk and the Assessment Engineers would proceed to count the ballots; that voting would then be final. What staff was recommending, if Council decided to proceed to count the ballots, was that further action not be taken this evening to adopt the resolutions that would form the District and levy the assessments. Responding to Councilman Ferguson's comment, Ms. Harris replied that at that point, Council would have a final vote, meaning if there was a Majority Protest based on the ballots submitted this evening, they would be final. If Council wished to proceed with the District because the parties had worked out their differences, the City would be faced with re-noticing a new hearing, which required a 45-day period. Mayor Kelly stated it was a problem, because the Benefit Assessment District could fail because an agreement isn't worked out. Councilman Ferguson noted that if the ballots were counted, it would change the negotiating posture of the parties. MS. HARRIS pointed out,with respect to her earlier comment,that a hearing process could be started again with a 45-day notice, but it would create a problem for the Assessment District being considered to finance acquisition of the retention basin, because the Assessment District was based on a bidder who was holding open his bid for a limited number of days, and the time period would expire before the City could complete new assessment proceedings. Councilman Ferguson asked if the public hearing was open and the City accepted the ballots, would people have the opportunity to change their votes. MS. HARRIS replied the only way that could be done, at this point, would be to continue the hearing in its entirety for two weeks, not open the batlots, including continuing the public input portion, and up until Council closed the public hearing, someone could still change, withdraw, or submit their ballot. I n response to question, she suggested Council make the motion to continue the public hearing in its entirety to another date. Mr. Erwin agreed. 17 — PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 11, 2007 Councilman Spiegel moved to continue the public hearing to the meeting of January 25, 2007. Motion was seconded by Ferguson. Councilman Ferguson informed both Mr. Carver and Mr. Noble that Council will take action in two weeks on this matter and hoped their differences were worked out by that time. Mayor Kelly called for the vote, and it carried by a 5-0 vote. MS. HARRIS stated she noticed ballots were turned in this evening and pointed out the public hearing was still open for those ballots to be withdrawn or changed. C. CONSIDERATION OF THE FORMATION OF CITY OF PALM DESERT SECTION 29 ASSESSMENT DISTRICT (NO. 2004-02). Mr.Yrigoyen stated this item was tied to the Benefit Assessment District,and since Council decided to continue that matter, it would want to continue this item to the same future date. Mayor Kelly declared the public hearing open and invited public testimony in FAVOR OF or in OPPOSITION TO the proposed Formation of Section 29 Assessment District. No public testimony was offered. Councilman Spiegel moved to continue the public hearing to the meeting of January 25, 2007. Motion was seconded by Ferguson and carried by a 5-0 vote. XIV. REPORTS AND REMARKS A. CITY MANAGER None B. CITY ATTORNEY None C. CITY CLERK Mrs. Klassen reported that she'd participated in meeting this morning where all Riverside County City Clerks met with the Riverside County Registrar of Voters about issues that developed with the November 7, 2006, General Election. She said several factors that day combined to form a "perfect storm," i.e., number of absentee voters, Verivote paper verification system, voters inside the polls waiting to vote as of 8:00 p.m. Further, while voting 18 �— PRELIMINARY MINUTES � REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 11, 2007 machines were electronic, it didn't mean results were instantaneous; and in allowing all voters to first cast their ballot before releasing any results that night, it meant an overall delay in the announcement of even preliminary numbers until late that night. Lastly, she said the meeting was helpful to the City Clerks, adding that the Blue Ribbon Committee appointed by the Board of Supervisors to look into this matter was set to hold its first meeting on January 23, and City Clerks would be able to provide some input to this group as the elections officials in each of their respective jurisdictions. D. PUBLIC SAFETY o Fire Department None o Police Department None Councilman Ferguson asked the Police Department to double-check its transmission of the daily significant incident report to the City Council, noting he hadn't received one for a couple of weeks. Councilmember Finerty said she hadn't received an e-mailed version either. E. MAYOR AND MEMBERS OF THE CITY COUNCIL o Citv Council Requests for Action: 1. Consideration of the Appointment of City Council Representatives to the Various Internal and External Committee Assignments Mayor Kelly ask Councilmembers to review the revised memo dated January 5, 2007. Mayor Pro Tem Benson brought up the fact that Sister Cities was not listed. After discussing the matter, it was realized that since Sister Cities Foundation was now a non-profit foundation, it was considered separate. Mayor Pro Tem Benson stated she thought the City Manager was the City's representative. 19 — PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 11, 2007 Mr. Aryan stated he would be the liaison to the Sister City Foundation. He noted a request from Sister Cities would be forthcoming for a member of the City Council to be chosen to sit on their board. He agreed to bring something forth for the next Council meeting. W ith City Council concurrence,the appointments noted on the memo dated January 2, 2007 (revised January 5, 2007), were approved as presented. 2. Visitor Center Artwork — Councilmember Finerty commented that there was discussion about purchasing a piece of art for the Visitor Center at the last City Council Meeting. She and Mayor Kelly were appointed to meet with Mr. Twedt; but after looking at every piece of art in the EI Paseo Exhibition, none of them seemed to be appropriate for the Visitor Center. She said they also talked about bringing a balance of art to the City, what they felt would be recognizable art as opposed to all abstract. Additionally, she reported they discussed site- specific art, and with all the existing choices being unacceptable to them, she and the Mayor were unable to make a recommendation of a piece of art they felt suitable for the Visitor Center. Responding to question by Councilman Spiegel about the amount of funds available in the Art In Public Places budget to have a new piece proposed for the Visitor Center, Public Arts Manager Richard Twedt affirmed there was approximately $250,000 set aside for artwork at Entrada del Paseo, and any configuration could be utilized. Further, he said the matter would be considered by both the Art In Public Places Commission and the City Council and that he would process an agenda item for the next meeting for this purpose. Of the four pieces voted on at the last Council Meeting, the most expensive was $102,000. City Councilmembers concurred that a separate process for a site-specific artwork should be pursued. o CitY Council Committee Reports: 1. CVAG Public Safety Committee-Councilman Spiegel reported that Assistant U.S. Attorney Tom O'Brien, Chief - Criminal Division, made a presentation at last Monday's Committee Meeting, confirming Mr. Swerdlow's comments made earlier in this meeting,that the U.S. Government considers the selling of 20 �— PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 11, 2007 marijuana to be illegal. If a city approves of a marijuana outlet (medical or otherwise), the Attorney General can arrest that city council. He went on to say that the other item on their agenda was a report by Chief Walt Meyer regarding burglary and property crime prevention. Chief Meyer indicated that about 75% of all home crimes were a result of someone leaving a door or sliding glass door ajar, and it was important to let citizens know about this. He asked that staff work together with Chief Meyer to put an article in an upcoming Brighf Side newsletter alerting residents to this fact. Mayor Kelly noted he was having a meeting tomorrow with the Police Chief about that subject. 2. Coachella Vallev Animal Campus - Mayor Pro Tem Benson noted that the Animal Campus was coming up on its one-year anniversary, and a celebration is being held on February 10. Since its opening, close to 3,000 animals have been adopted, and they keep working to increase that number. o City Council Comments: 1. Plannina Commissioner Traininq - Councilman Spiegel said he'd mentioned to Mr. Croy that the two new Planning Commissioners be encouraged to participate in the upcoming training being held in San Diego in March. XV. ORAL COMMUNICATIONS - C None XVI. ADJOURNMENT Upon a motion by Spiegel, second by Ferguson, and unanimous vote of the City Council, Mayor Kelly adjourned the meeting at 5:33 p.m. RICHARD S. KELLY, MAYOR ATTEST: RACHELLE D. KLASSEN, CITY CLERK CITY OF PALM DESERT, CALIFORNIA 21 !