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HomeMy WebLinkAboutOrd 1142 Appeal Denial of Amendment 11 to Development Agreement DA 02-01 Stone Eagle 6.5 LLCREQUEST: CITY OF PALM DESERT DEPARTMENT OF COMMUNITY DEVELOPMENT STAFF REPORT Appeal of a Planning Commission denial for an Amendment to Development Agreement 02-01 to allow the division of homes from four (4) to 12 fractional interests within the Stone Eagle project, west of Highway 74 at Homestead Road. Application has since been revised to nine (9) fractional interests on a maximum 20 units. SUBMITTED BY: Phil Joy Associate Transportation Planner APPELLANT: Eagle 6.5 LLC 74001 Reserve Drive Indian Wells, CA 92210 DATE: September 13, 2007 CONTENTS: Draft Ordinance No. 1142 with revised Development Agreement 02-01 Amendment #1 Appeal Application and Supporting Information Legal Notice Minutes from July 3, 2007 Planning Commission Meeting Planning Commission Staff Report of July 3, 2007 Recommendation: Waive further reading and pass to second reading Ordinance No. 1142 approving an amendment to the Stone Eagle Development Agreement subject to a Negotiated Facilities Impact Fee similar to other timeshare projects within the City. Executive Summary: Approval of the staff recommendation will override the decision of the Planning Commission and will authorize the increase of sales from four (4) to nine (9) fractional interests for a maximum 20 homes, reducing the remaining 40 homes to single ownership within Stone Eagle. Staff Report September 13, 2007 Page 2 of 3 Discussion: Stone Eagle is primarily a Golf Club with a residential area that allowed up to 60 homes, 46 of which have entitled. The home sites are clustered at the bottom of the hill from the golf course, across the Palm Valley Channel from the Sommerset Community. The original development agreement allowed the maximum 60 homes to be sold in up to four fractional interests each. The developer applied to modify the agreement in order to increase the number of potential fractional interests from four to twelve per home. The Planning Commission denied the request because they felt any increase from four (4) fractional interests changed the character of the project considerably, especially since the project was in a sensitive location. There was considerable public input received from Cahuilla Hills residents who objected to any type of increase until ongoing issues with the original project was resolved. These issues include nuisance water from a creek, which lies roughly between Cahuilla Hills residences and Stone Eagle. A Public Works Director's hearing will be held on October 4, 2007, to discuss the results of toxicological tests of the creek water, and other lingering issues from a previous meeting to determine if the project may be finaled. Staff consulted with the City Attorney and concluded that subject request and lingering project issues should be dealt with separately. The original development agreement allowed four (4) interests for 60 homes or 240 total owners. After denial by the Planning Commission, the developer revised the application to allow nine (9) interests over 20 homes and single ownership of the remaining 40 for a total of 220 owners. There are currently 46 home sites within the project, while the agreement allows up to 60 if the project is expanded or if additional lots are subdivided. So far, one of the larger lots was subdivided into a triplex. The impacts of this request will be confined to the project itself. There will be no increase of traffic from that analyzed in the EIR since there wouldn't be an increase in the number of homes. Stone Eagle's original approval was based on each home being occupied full time and this request does not change that premise. A Stone Eagle resident may have concerns if an adjacent home had nine (9) rather than four (4) interests, since that could change the character of a neighborhood. Consequently the developer has identified 10 initial home sites that are relatively isolated from sites previously sold. Staff required that the developer provide a list of previously sold site owners to notify of this application, and no objections were voiced from these owners. A further stipulation is that a public hearing would be held at Planning Commission for the remaining 10 homes with fractional interests. G WLANNINGLIANINE JUDYIWORD FILESIPHIL JOYIDA 2-1 #1 S E CC SR DOC 2 Staff Report September 13, 2007 Page 3 of 3 Staff requested and received a copy of the Lodging Reservation Policies. The policies state that the length of stay for a 1 /9th interest in a home is planned for three (3) weeks during season, and short notice stays are possible for club members and unaccompanied guests. The City's transient occupancy tax applies to any non -owner stays of Tess than 30 days, and the City enforces the ordinance on those that lease homes elsewhere in the city for Tess than 30 days to vacationers. Since this project appears to operate more like a timeshare, staff proposes a negotiated Facilities Impact Fee similar to that collected for other timeshare projects in the city. Therefore, staff recommends that City Council approve the Development Agreement Amendment. Submitted By: PHIL J Associate Transportation Planner LAURI ALAIAN Director of Commun OMER CR-0 ACM, Develo Development t Services CARLOS ORT- A City Manager ;ITY COUNCI CTI®N: APPE.OVED ✓✓.... .. DENIED .. . . RECEIVED : v��,.�... � CTHER�,..e.,. iv:EET I1 AYES: NOES: ABSENT:SY, ABSTAIN:.,�� VERIFIED BY: rWK../%Y1c1rY 1 lriginal on File with City Clerk's Office DATE 150>7 Eirer is * Approved the recommendation, subject to a $2,700 annual fee/unit Public Facilities Impact Mitigation Fee to be imposed, such language to be added to the Development Agreement between first and second readings of the Ordinance. 4-0 (Ferguson ABSENT) G IPLANNINGUANINE JUDYIWORD FILESIPHIL JOYIDA 2-1 #1 S E CC SR DOC 3 ORDINANCE NO. 1142 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, APPROVING A DEVELOPMENT AGREEMENT AMENDMENT RELATING TO STONE EAGLE. CASE NO. DA 2-1 AMENDMENT # 1 WHEREAS, the City Council of the City of Palm Desert, California, did on the 13th day of September, 2007, hold a duly noticed public hearing to consider a request by Eagle 6.5 LLC for approval of DA 2-1 Amendment # 1 ; and WHEREAS, the Planning Commission by its Resolution No. 2450 denied said request; and WHEREAS, at said public hearing, upon hearing and considering all testimony and arguments, if any, of all persons desiring to be heard, said City Council did find the following facts and reasons to justify its actions: The proposed development agreement is consistent with the provisions of the Municipal Code Chapter 25.37, Development Agreements. NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of Palm Desert, California, as follows: 1 . That the above recitations are true and correct and constitute the findings of the City Council in this case. 2. That DA 2-1 Amendment #1 (Exhibit A attached hereto) is hereby approved. 3. The City Clerk of the City of Palm Desert, California, is hereby directed to publish this ordinance in the Desert Sun, a newspaper of general circulation, published and circulated in the city of Palm Desert, California, and shall be in full force and effect thirty (30) days after its adoption. PASSED, APPROVED and ADOPTED at a regular meeting of the Palm Desert City Council, held on this , day of , 2007, by the following vote, to wit: AYES: NOES: ABSENT: ABSTAIN: RICHARD S. KELLY, Mayor ATTEST: RACHELLE D. KLASSEN, City Clerk City of Palm Desert, California RECORDING REQUESTED BY, AND WHEN RECORDED MAIL TO: City of Palm Desert Attn: Carlos Ortega 73-510 Fred Waring Drive Palm Desert, CA 92260 FOR THE BENEFIT OF THE CITY OF PALM DESERT -NO FEE- 6103 OF THE GOVT. CODE Space Above This Line For Recorder's Use First Amendment to Development Agreement This First Amendment to Development Agreement (this "Amendment") is made and entered into as of this _ day of , 2007, by and between the CITY OF PALM DESERT, a California municipal corporation ("City"), and STONE EAGLE DEVELOPMENT, LLC ("Developer") as successor-in interest to DESTINATION DEVELOPMENT CORPORATION, a California corporation ("DDC") (City and Developer are, collectively, "the Parties"), pursuant to the authority of Section 65864 et seg. of the Government Code of the State of California. RECITALS A. City and DDC entered into that certain Development Agreement dated as of November 14, 2002, and recorded on March 11, 2003, as Document No. 2003-172463, in the Official Records of Riverside County, California (the "Agreement"). The Agreement was entered into to facilitate the development of certain real property ("Site") more particularly described in the Agreement. B. City and Developer now desire to amend the Agreement in the manner set forth herein pursuant to Section 1000 of the Agreement. NOW, THEREFORE, IN CONSIDERATION of the mutual covenants and promises of the Parties, the Parties hereto agree as follows: AGREEMENT 1. Effective Date. This Amendment shall become effective on the date, wllich is two (2) business days after the date, which is thirty (30) days after date of final adoption by the City of the ordinance approving this Amendment ("Effective Date"). Fro�n and after the Effective Date, all references to the Agreement shall automatically be decmed to mean the Agreement as amendcd by this Amendment. a i oax i�c,.a � 2. Defined Tcnns. All capitali7cd tcrms used but not dcfincd hcrcin shall have the mcaning set forth in t11e Agrecmcnt. 3. Effect on Site. This Amcndment will bind the Site upon thc Effcctive Date. 4. Amendment to Section 201. From a�Id after the Effective Date, tlle last sentence in Section 201 (1) shall bc revised to read: "Notwithstanding any provisions to the contrary set forth in Chapter 25.100 of the Palm Desert Municipal Code, each of no more than twenty (20) DU may (but need not) in developer's sole discretion be sold as up to nine (9) fractional interest, each of which fractional interests shall permit the owner of such fractional interest to occupy a DU (which may or may not be the DU in which such owner has a fee interest) for a portion of each calendar year. The remaining 40 DU of the entitled GO DU shall not exceed one (]) ownership, which is an amendment from up to a fourth (1/4) fractional interest per DU." 5. Covenants Run With Land. It is speciGcally understood and a�reed by and betwcen the Parties hereto that the Agrcement and this Amendment shall not be scverable from Developer's intcrest in the Sitc, and the provisions of the Agreement as amended by this Amendment shall constitute covenants which shall rwt with the Site or any portion thereof upon the recordation of this Amendment, and that thereafter the benefits and burdens of the Agrccmcnt as amended by this Amcndment shall bind and inure to all successors in interest to the Parties who acquire any interest in the Site. 6. Intcmretation. This Amendment shall be intec-pretcd to give cach oC the provisions their plain meaning. Tlle Recitals are incorporated into this Amendment. 7. Entire A�reement. This Amendment is executed in duplicate originals, each of��hich is deemed to be an originaL This Amendment consists of four (4) pages, which constitute the entire wlderstanding of thc Parties as to thc matters set forth in this Amend�ncnt. 8. Status of A:;reement. Except as modi(ied by this Amendment, the teni�s and provisions of the Agreement shall remain in full force and eCfect. [SIGNATURES ON FOLLOWING YAGEJ -1 I O�3R 17G.-� 2 IN WITNESS WHEREOF, the undersigned have executed this Amendment as of the date and year first above written. "CITY" CITY OF PALM DESERT, a California Municipal Corporation Effective Date: By: (�Iayor, City of Palm Desert) , 2006 Attest: Carlos L. Ortega City Manager Approved as to form: David Erwin City Attorney "DEVELOPER" STONE EAGLE DEVELOPMENT, LLC a Delaware limited liability company Date of Submission by Developer: By: , 2006 �i o.��i��,.a 3 STATE OF CALIFORNIA ) ) ss. COUNTY OF ) On , before me, personally appeared personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that • by his/her/their signature(s) on the instrument the person(s) or the entity upon behalf of which the person(s) acted, executed the instrument. Witness my hand and official seal. Notary Public [SEAL] STATE OF CALIFORNIA ) ) ss. COUNTY OF ) On , before me, personally appeared personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s) or the entity upon behalf of which the person(s) acted, executed the instn�ment. Witness my hand and official scal. Notary Public [SEAL] a i uas i��,.4 4 �� STO N� �AG L� Application to Appeal Supplemental Information Sheet Case No.: DA-02-01 Amendment No. 1 Date of Decision: July 3, 2007 Planning Commission Meeting Application of Matter Considered: To Amend the Stone Eagle Development Agreement No. DA- 02-01 Amendment No. 1 to modify the Number of Fractional Interests from 4 to up to 12. Name of Appellant: Eagle 6.5 LLC (Stone Eagle) Reason For Appeal: Stone Eagle respectfully requests an appeal of the July 3, 2007 Planning Commission denial for the following reasons: 1) Ted Lennon, President of Lowe Destination Development Desert Division and Stone Eagle LLC was out of town and unable to attend the July 3, 2007 Planning Commission Meeting. Ted brings pertinent insight and information regarding the Club Unit program and the Development Agreement amendment. 2) Stone Eagle proposes to more clearly define the intent of the proposed Development Agreement Amendment. The proposed amendment as presented to the Planning Commission would allow Stone Eagle to sell each Dwelling Unit as up to twelve (12) fractional interests. The intent of the amendment and as more clearly outlined in this appeal is to sell a limited number of Dwelling Units as up to nine (9)fractional interests. Under the provisions of the approved Development Agreement, all 60 units can be sold as four(4)fractional interests (240 total shares). Under this appeal, Stone Eagle proposes to limit the number of Dwelling Units to 20 units to be sold as up to nine (9) fractional interests (a total of 180 shares —60 shares less than the approved Development Agreement). We also propose to clearly outline which lots are intended to be fractionalized under the Club Unit program. Initially, we propose to develop three (3) units on Lot 8 and one (1) unit each on Lots 38-44. This represents the first 10 of the 20 units to be potentially fractionalized. If the additional 10 units are developed, they would be subject to City and Owner review and approval. The attached map depicts the 8 lots (10 units)to be developed initially under the Club Unit program. Lot 8 was always designated as a Club Unit project. Lots 38-44 are clustered and are more isolated from the individually owned lots. 3) Stone Eagle is a private golf club, and the primary intent of the proposed 9 share program is to provide synergy with the Stone Eagle membership program, particularly the National (i.e., non-resident) Membership category. Stone Eagle's National Members are limited to 21 golf days in season (November 1 to April 30). The proposed Club Residence program (as outlined in the attached "Residence Club at Stone Eagle Lodging Policies and Operation Details") will provide Stone Eagle's National Members the flexibility and opportunity to maximize their golf inembership experience at Stone Eagle and the surrounding Palm Desert community. 4) Additional information including the Club Unit Exhibit Map and the "Residences Club at Stone Eagle Lodging Reservation Policies and Operational Details" report is submitted to more clearly define the Residents Club plan. 14-oat R�avt Drivt,Indian Hdls,(A quio � ��"C?I�� ���L� T�e Residence C�ub at �J"tone �a��e L,od�¢in�Reservation �'o�icies and Q�crationaj potai�s 7Z-5�Stone�aglc�rivc f'a�m pcscrt,�a�ifornia�2260 760-773-6zz3 www.stonccav�lcclu6.com -1-I ii _I�(.=:`�Ii.�CNC�.C.C:I.Caf�A-� .`�I ONt--f.=AC�1_f- . ,�_ I ��I�C�INC�fZC_`�t_JZVA�-I��Nf'OIJC:If-.`�f'�Nl? Of'F .f��-I I��NAI i�f..= � �IL.`� SEASON: PLANNED S"I'AY RESERVATION PROCESS: ■ Second Thursday in November through thc ■ In thc first year,Owners arc assigned a Wedne.ulay following Mcmorial Day. Priority Resen�ation humber in ascending order of ■ Approximarely 28 or 29�veeks. their date of purchase,with the earliest purchase date ■ With 27�aeeks reserved per casita,lhe extra receiving the lowest number. In each subsequent year, time provides Flexibiliry for Space A��ailable and Short the Priority Rcservation I�'umbers are adjusted by one Notice Stays. (#I becomes#2,#2 becomes it3,and so on).Thc Priority Reservation Number establishes each O�vner Resen�ation structure does not makc a distinction position for the First Selection Round for that bet�aeen In-Season(second Thursday in November particular year. through Wednesday following Memorial Day)and ■ First Resen-ation Confirmation Round- Off-Screcn since Planned Stays can be booked at any Planned Stays are based on an ON�ner's first time. resenation request.When demand forcertain dates exceeds lodging supply,the Owner with the lowest PLANNED STAY TIME: numerical Reservation Priority Number for that year w ill bc confirmed. ■ There are three(3)Planned Stay Wecks per ■ Second Reservation Confirmation RounJ- 1/9 share during the Season(27 weeks per casita). Planned Stays are based on an Owner's second • Weeks are schedule from i�hursday through rescrtiation request. When demand forcertain dates Wcdnesday(accommodates'I'hursday starts of main exceeds lodging supply,the Owner with the highest club events). numerical Reservation Priority Number for that year will be confirmed. SPACE AVAILABL,E&SHORT NOT[CE ■ Third Rescrvation Confirmation Round- STAYS: Planned Stays are bascd on an Owner's remaining resen�ation requests until all Owners have reserved ■ Owners may stay additional days,subject to three weeks.When demand for certain dates exceeds availability and Club reservation policies on a Space lodging supply,the Owner with the lo�aest numerical Available or Short Notice basis described belo�ti�in Reser��ation Priority Number for that year will be more detail.Only the published housekeeping fees confirnied. would apply during these stays. f3Y Atrgust lS, �rrit[en confinnalion oJtuch Otirner'.s Season YlunneciS[nvs jor the pendrnK Senson is se�tt 10 each(hrner.Addi�iona!!y,a�eserv�etron calenrlar r.s .sen�indicnting�rhich dnteti huve bec:n reserve�l bv O�rne�:s,unrl a reservntion ccdendni•�ri(/be rrminl[rinerlon t�n Oi+•ne�•�+ebsrie AJler Seplember!, O�rners mUv rese�ve Spnce Avnilnhle Stuvs n.s norer! heloir. 1 SPACE AVAl1.ARI,E 57'AYS: ��«nershi��.�hich shxll l�e c�,nsidered [iach (ht'ner has unlimited access to and use c�f s��onsored guests�f tit��ne i•:aglr the Residences of the O�vner's l!nit 'l�t'F�c on a • De�•clo��tnent. Rental incc�ilie,if�;encr�tecl sj�acc a��ailablc bxsis. O��•ncrs mat�sta�•in a durin�;a tit�acc_���ailal�lc or Shc.�rr\oticc tita� Residence dUrin�;a tipace_1�•ailable tita�� for up to is retained h��the.\ssociatic�n�fana�er(c�r the �'nighis per resci-�•ation. benefit of the Residence Clul�. • Spacc .\��ailablc tiri�•rescr��ations catittot l�e rcyucsted prior ro tieptember 1 Cc�r the OW\ER EXCEIANGES: follo�ving tie.ise.m hur can be m�de Cor ant' O��•��ers ma� eschange their cc�nfirmed Planned a���ilablc timc during that follo���inK Season. tita� ni�his�vith othcr O�vncrs. I•:xchanKcs sl�uuld • (hvners ma�•ha�•c onl� ane S�ace.\��ailable be arranKed ciirectl� het�veen (hvners. �\�ritten tita� resei�•arion on the books at a ti�ne. norice of an exchan�e must be Prcn�ided to thc Ho���e��er,each O���ner can make ane _lssociation \Ianager at Ieast 1G nights prior ro rhe addiiional tipace .���xilable tita��reserc�ation arrival date for the earliest Plannecl tit1�� im�oh�ed ant'timc���ithin 1:i nights of a schedulcd in thc cxchan�c. arri��al date k�r that reser��ation. • l!naccomPanicd Guests of an O�vner mat� • ti��ace.��•ailaf�le titat'resen•ations are stat• at a 12esidence during an O��•ner's processed b��the.lssociati<�n\fanager on a Planned tita�, hut nor during si ti�ace first come,firsr sen�ed basis. _���ailable tita��or tihort\otice titat�. • O�vncrs ma� not rent their Planned tita�s. SHORT NOTICE STAYS: • '1'o maintain thc csclusi��in•c>f'1'hc tironc tihort\otice L'se Pericxls are a��•at•for O�r•ners to f?agle Residence Club for the benefit of its book spur-oE-the-moment sta��s. \t'hile a tiPace O��•�l�rs,no O��•ner ma��lcase,rent,or license .l��ailable tita� mat•hc rescn�ed months in advance, thc usc of a l'nit with the�eneral Public nor Short I`oticc tita�•s ma��onit-be bouke�l��7thin 30 �a���rtisc the same. d.n�s uf an O��•ner's desired arri��aL Owners simpl� need ro contact ihe Club's resen•arion office LOCKOFFS• «�ithin 30 da��s of their arri�•al to check a��ailabilit�� T:ach Residence conruns a �IA3I7 Li�•ing tiuire and and reser��e a llnir. either one I,ockuff L'nit in the case of a heo- • l�scept as pro��ided bt-resen•ation policies bedroom Residence,ur three I.ockoff Units in the listed abo��e,there is no limit to rhe number case of a ihree-bedroom Residence. of ti�ace.�vulable titacs and tihort Notice � �)��.ners ma� elect to reser��e Planned tita�s or Stat•s an(1��•ner mat•take. ti�ace .\�-ailable Sta�s in either iheir �chole • O�cners mat�onit�ha��e one tihort\otice Sta� unit ur ant�portion of their unit. .\m unusecl booked at a rime,ho�ve��er. �orti<�n of rhe Residence, specificallt� oCfered • (lnce O�vners use their tihort \c�tice tita��, ln• O�vner in�vritin�,�aill be a�•ailable to other the��ma�•resen•e another. �C'hile some O�cners Cr�r ti�ace .�vailable or tihorr \orice (>u•ners ma�-use�I'he titone E�.aKle Residence tit��-ti. Club Icss often,others��•ill use it more often. • (heners �vill ha��e a reduced housekeePin� fee • Residence Club.lssocianon\fanager ma} if ther resen�e a smaller portion of the book units or lackoffs on tihort\oticc basis Rcsidcnce. for usc b��Prospccts for Club membcrship, residenrial<����nership ancl fractional � V►'AI'I'LIST: '1'hc(;hili s rescrvatic�n ofticc�t•ill tnaintatn a «�aitlist during cach Club Calcnciar t'c�r C<�r cach L'se\\'eck in�vhich clemand ezceeds sur�lc.]iach o�rncr ma��hold onc���aitlisr position for a L'sc ���Cl'Ii 0f il flllll'.�UC�I waitlist reyuesrs mat�be made aftcr�ti•ritren confirmaric>n oC Planned tita��s ha��e bccn gi��en cach(�lul�Calcndar t'ear. CONCIERGE SERVICES: Residences���ould ha��e access tc�a menu of concierke sen•ices subject to a standard fee. �or examplc: • (;rocer��tihopping • \irrort�I�ransportation • I•:�•enin��I'ransportaric>n HOUSEKEEPING: Planncd Stat•wceks includc thc follo��-inK basic housekeeping sen�ices. 13asic housekeeping sen�ites induded in the(1�vner's annual fec include: (a)dailt•trash rema��al and fresh to�vel ser�•ice tc�the l'nit;(l�)a full hc�usekeeping and maintenance ser��ice up�n departure,regardless c�f the length c�f sta�-;and(c) a full housekeepinK and mainrenance service�rcn•ideci mid-�t�eek for sta�•s of fivc(:i)dat's or 1pnKer. If an(hrner or Pcrmitted L'scr desires aclditional hc�usekee�ing sen�ices,�r��,u5e��aa��,��n1� cleaning or housekeeping ser��ices ro be reyuired o�-cr and above that�vhlch would ordinaril��lx pro��ided,then such(h�•ner or Permitted l:ser ma�� be charKed a Personal Charge for such additional tiEl"FICI'. • �'isits lastin�tw�o consecuti��e Llse��'eeks or lon�cr in thc samc l'nit normallt�reyuirc full housekeepin�and mainrenance seivices at thc end oE each L'se\\'eek. • Pcrsonal Chargcs xssociared�aith vari<rus housekeeping and maintenance ser��ices�vill be esrablished bt�the Club Board and annuall�� �ublished along with the Club Calendar. ANNUAL FEES: TI3I�. '_�nnual I I().\I�ees anc]�Iainrenance bud�ets are currentlt�being prepared for llcpartmenr of Rcal 1-:state filings and�vill be pru��idcd as a�•ailable. 3 RECORDING REQUESTED BY, AND WHEN RECORDED MAIL TO: City of Palm Desert Attn: Carlos Ortcga 73-510 Fred Waring Drive Palm Desert, CA 92260 FOR THE BENEFIT OF THE C1TY OF PALM DESERT -NO FEE- 6103 OF THE GOVT. CODE Space Above This Line For Recorder's Use First Amendment to Development Agreement This First Amendment to Development Agreement (this "Amendment") is made and entcred into as of this day of , 2007, by and between the CITY OF PALM DESERT, a California municipal corporation ("City"), and STONE EAGLE DEVELOPMENT, LLC ("Developer") as successor-in interest to DESTINATION DEVELOPMENT CORPORATION, a California corporation ("DDC") (City and Developer are, collectively, "the Parties"), pursuant to the authority of Section 65864 et seq. of the Govern�nent Codc of the State of California. RECITALS A. City and DDC entered into that certain Development Agreement, dated as of November 14, 2002, and recorded on March 11, 2003, as Document No. 2003-172463, in the Official Records of Riverside County, California (the "Agreement"). The Agreement was entered into to facilitate the development of certain rcal property ("Site") more particularly described in the Agreement. B. The Developer does hold fee title to all of the Additional Property. C. City and Developer now desire to amend the Agreement in the manner set forth herein pursuant to Section 1000 of the Agreement. NOW, THEREFORE, IN CONSIDERATION of the mutual covenants and promises of the Parties, the Parties hereto agree as follows: AGREEMENT 1. Effective Date. This Amendment shall become effective on the date which is two (2) business days after the date which is thirty (30) days after date of final adoption by the City of the ordinance approving this Amendment ("Effective Date"). aioaxi�e.3 1 From and attcr the Effective Uate, all references to the Agrecment shall automatically be deemed to mean the Agrecment as amended by this Amendment. 2. Uefined "I�cnns. All capitali�ed tenns used but not defined herein sl�all have the mcaning set forth in the Agreement. 3. Effect on Additional Property. This Amendment will bind the Sitc upon thc Effectivc Date. Ncitller the A��reement nor this Atnendment will be binding against or affect the title to any portion of the Additional Property until Developer or its dcsignee acquires an interest therein and records the Agreement and this Amendment against such acquired portion of the Additional Property. 4. Amendment to Section 201. From and after the Effective Date, the last sentence in Section 201 (1) shall be revised to read: "Notwithstanding any provisions to the contrary set forth in Chapter 25.100 of the Palm Desert Municipal Code, each DU may (but need not) in developer's sole discretion be sold as up to twelve(12) fractional interests, each of which fractional interests shall permit the owner of such fractional interest to occupy a DU (which may or may not be the DU in which such owner has a fee interest) for a portion of each calendar year." 5. Covenants Run With Land. It is specifically understood and agreed by and between the Parties hereto that the Agreement and this Amendment shall not be severable from Developer's interest in the Additional Property, and the provisions of the Agreement as amended by this Amendment shall constitute covenants which shall run with the Sitc or any portion thereof upon the recordation against the Additional Property of the A��reement and this Amendment, and that thereafter the benefits and burdens of thc Agreement as amended by this Amendment shall bind and inure to all successors in interest to the Parties. 6. Interpretation. This Amendment shall be interpreted to give each of the provisions their plain meaning. The Recitals are incorporated into this Amendment. 7. Entire Agreement. This Amendment is executcd in duplicate originals, cach of which is deemed to be an original. This Amend�nent consists of four(4) pages, which constitute the entire understanding of the Parties as to the matters set forth in this Amendment. 8. Status of Agreement. Except as modified by this Amendment, the terms and provisions of the A�eement shall remain in full force and effect. [SIGNATURES ON FOLLOWING PAGE] a i oas i��.3 2 Proposed Modi�cation 4. From and after the Effective Date, the last sentence in Section 201 (1) shall bc revised to read: "Notwithstanding any provisions to the contrary set forth in Chapter 25.100 of the Palm Desert Municipal Code, up to 20 DUs of the 60 DUs may (but need not) be sold as up to nine (9} fractional interests, each of which fractional interests shalt permit the owner of such fractional interest to occupy a DU (which may or may not be the DU in which such owner has a fee interest) for a portion of each calendar year. The developer shall bc required to obtain City approval for each of the 20 DUs to bc potcntially sold in fractional interests." aioaKi��.3 3 IN WITNESS WHEREOF, the undcrsigned have executed this Amendment as of the date and year first above writtcn. "CITY" CITY OF PALM DESERT, a California Municipal Corporation Effective Date: By: (Mayor, City of Palm Desert) , 2007 Attest: Carlos L. Ortcga City Manager Approved as to form: David Erwin City Attorney "DEVELOPER" STONE EAGLE DEVELOPMENT, LLC a Delaware limited liability company Date of Submission by Developer: By: , 2007 aioaxi�6.3 4 ST/1TE OF CALIFORNIA ) � SS. COUNTY OF ) On , beforc me, personally appeared personally known to me (or proved to �ne on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s) or the entity upon behalf of which the person(s) acted, executed the instrument. Witness my hand and official seal. Notary Public [SEAL] STATE OF CALIFORNIA ) � SS. COUNTY OF ) On , bcfore me, personally appeared personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/thcir authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s) or the entity upon behalf of which the person(s) acted, executed the instrument. Witness my hand and official seal. Notary Public [SEAL] 41048176.3 5 C6 � Y � F Pnl �l D � � � � �� 73-5io f'RED WARING URIVE � PALA4 UF.SERT,CALIFORNIA 92260-25]8 re►.:760 346-06�� F�vc:760 ;4i-7o98 in fo�paLn-deser c.org CITY OF PALM DESERT LEGAL NOTICE CASE NO. DA 2-1 Amendment#1 NOTICE IS HEREBY GiVEN that a public hearing will be held before the Palm Desert City Council to consider an appeal by Eagle 6.5 LLC, of a Planning Commission denial, for an amendment to a devefopment agreement,to allow the division of homes from 4 to 12 fractional interests within Stone Eagle Hwy.,west of Homestead Road,74 and the Palm Valley Channel- Tract 30438. (The app{ication has been revised to 9 fractional interests for 10 home sites initially and 10 home sites to be identified later,for a total of 20 homes.) Ci of Palm Deaert Me k `=�,,.��� p. :li�: . � ■ i�y�,i, II� '1- �t'+. .,�y��� I �": �����`s� � � - . SAID public hearing will be held on Thursday, September 13,20Q7 at 6:0�p.m. in the Council Chamber at the Palm Desert Civic Center,73-510 Fred Waring Drive,Palm Desert,Califomia,at which time and place all interested persons are invited to attend and be heard. Written comments conceming all items covered by this public hearing notice shall be accepted up to the date of the hearing. Information conceming the proposed project is available for review in the Department of Community Development at the above address between the hours of 8:00 a.m. and 5:00 p.m. Monday through Friday. If you challenge the proposed actions in court,you may be limited to raising only those issues you or someone else raised at the public hearing described in this notice,or in written correspondence delivered to the Planning Commission(or city council)at,or prior to, the public hearing. PUBLISH: Desert Sun Rachelle Kiassen, August 24, 2007 City Clerk CITY OF PALM DESERT, CALIFORNIA �-�---. � � � APPLICATION TO APPEAL -�. . DECISION OF THE /�1G1YlY�i�q �:��i.SSiv�j (Name of Determining Body) Case No. i�� C>r"� -� ,m Prlt� �( Date of Decision: �c11v �3, o��U� Name of Appellant Coa�1P ��5 L-LL �s�rt� �/�e�Phone T�c�-- 77Q-lWy� Address '�-�1 �e_�c-�rve D r►�e � hc�i�� c�JP,I(� C� ��1� !o Description of App/ication or Matter Conside�ed:�►�-�eh�� -�!'-f�e �+c��nP C-��i.� ✓Jevelo,�-����f ��Q�'c��-x�P,-1�- DY� o�-o� � m�r�;�v -�hP r�c�r,;be�-� ���r�c�,���o�l i,-� fe�es�-s r-�o � y f-o vp -fio /Z o Reason for Appeal (attach additional sheets if necessary): 52e c�f-fGcl�ec/ S h��2f ca hd �xh;b���fs: ( ignatu f Appellant) ed L.e»�o►� �Q R OFFICIAL USE ONLY fi � Date Appeal Filed: �l ry-C� / Fee Received: J"��6 ^ Treasurer's Receipt No. �l,���f Received by: C'hac� �-����'S�( , Date of Consideratio� by City Council or City Official: l� Action Taken: Date: Rachelle D. Klassen, City Clerk w COP'Y TO — H�.trkiassemWPGata�WPDOCS�FORMS�apDl to apDeal.wpd DATE � � Rev 6/29/02 ��A� STO N� ��G L� 74-00� Rcserve j�rive �ndian Wc��s,Ca�i�ornia 92210 760-779-1646 Fax 760-779-1469 TRANSMITTAL DATE: July 18,2007 TO: Lauri Aylaian COMPANY: City of Palm Desert FROM: Kris Schulze,Stone Eagle ORIGIONALS DATE DESCRIPTION 1 7/18/07 Appeal Application & attachment and Check($210.00) 1 7/18/07 Club Unit Exhibit 1 7/18/07 Club Unit Operation Policy Please let me know if you need anything else.Thanks, Kris ��rt� ,�r':%=; z ; �ti�w . . <,^'!si 49 �:uD �} � �• � .f- ..,. . 9x`.T��t�::,: ;��.,::.. .'M� ti,�"k'8'-'r , �rb ���w�t . s y�,�� �"����5^�-..ki�:e''�Ab -<< . `�ni� i'�4'i � � � ��� /J '� ti: RE�EI'V�D`"� ��' � DATE: / �� 'CYJ� �_ s ..:� �m'„� .,, ' a�;���,�� *i. . g�, y •a.•k --lr�;' �4 a { � �. �� � ��'s� �i � �'iv ,�� �� . Y o-'"i^ G��� �,r'�� � . l��rs ��u �° ���� S �5 � , . � t' , . �,F .:��re� > Q - ' .� . . ,. '. r � ��� , � ��� ��'�� . .: -K .. „ , : . . . � . _ �.. . �� .. �^.'.°�''. "'mz �4A0I Reserve prive, �n�i:�n We��s,�A 922 I O 760.779.i 646 �.. STox� ���� Application to Appeal Supplemental Information Sheet Case No.: DA-02-01 Amendment No. 1 Date of Decision: July 3, 2007 Planning Commission Meeting Application of Matter Considered: To Amend the Stone Eagle Development Agreement No. DA- 02-01 Amendment No. 1 to modify the Number of Fractional Interests from 4 to up to 12. Name of Appellant: Eagle 6.5 LLC (Stone Eagle) Reason For Appeal: Stone Eagle respectfully requests an appeal of the July 3, 2007 Planning Commission denial for the following reasons: 1) Ted Lennon, President of Lowe Destination Development Desert Division and Stone Eagle LLC was out of town and unable to attend the July 3, 2007 Planning Commission Meeting. Ted brings pertinent insight and information regarding the Club Unit program and the Development Agreement amendment. 2) Stone Eagle proposes to more clearly define the intent of the proposed Development Agreement Amendment. The proposed amendment as presented to the Planning Commission would allow Stone Eagle to sell each Dwelling Unit as up to twelve (12) fractional interests. The intent of the amendment and as more clearly outlined in this appeal is to sell a limited number of Dwelling Units as up to nine (9) fractional interests. Under the provisions of the approved Development Agreement, all 60 units can be sold as four(4)fractional interests (240 total shares). Under this appeal, Stone Eagle proposes to limit the number of Dwelling Units to 20 units to be sold as up to nine (9) fractional interests (a total of 180 shares —60 shares less than the approved Development Agreement). We also propose to clearly outline which lots are intended to be fractionalized under the Club Unit program. Initially, we propose to develop three (3) units on Lot 8 and one (1) unit each on Lots 38-44. This represents the first 10 of the 20 units to be potentially fractionalized. If the additional 10 units are developed, they would be subject to City and Owner review and approval. The attached map depicts the 8 lots (10 units) to be developed initially under the Club Unit program. Lot 8 was always designated as a Club Unit project. Lots 38-44 are clustered and are more isolated from the individually owned lots. 3) Stone Eagle is a private golf club, and the primary intent of the proposed 9 share program is to provide synergy with the Stone Eagle membership program, particularly the National (i.e., non-resident) Membership category. Stone Eagle's National Members are limited to 21 golf days in season (November 1 to April 30). The proposed Club Residence program (as outlined in the attached "Residence Club at Stone Eagle Lodging Policies and Operation Details")will provide Stone Eagle's National Members the flexibility and opportunity to maximize their golf inembership experience at Stone Eagle and the surrounding Palm Desert community. 4) Additional information including the Club Unit Exhibit Map and the "Residences Club at Stone Eagle Lodging Reservation Policies and Operational Details" report is submitted to more clearly define the Residents Club plan. J4-0O I }zeserve prive,�nc�ian We��s,CA 9221 O �� ����� ��.��� .,, � , ��. ., :. �r� �� _ � �� � � � _- �:g���.. ���: t � ,.; � .: � �; ,����, .�-�t � : f�_,' ` &=�r ::� � :�� : '`, The J�esidcncc Club�t���°one�,a�� " � � :���-� . �e,: x4 ' � �: �.,�,�,� �.L,oclgins�(�,�servation �'olicics anz#'Qperatrocia�j�ctails , � -�- � .. .r � :. . .� ,.,. . ,,-��.,. . _. �, . ,. ' .,, ��. <. �. _ �; �_ - . � -.� .. �k�� - �p 8Fr• ' -. .,._. .. . . , . .. �rr .. . . .. ,•. .^.�•ra . TMjr@''°�• $ '. . � .. ^.� :• , _ .. . . , . . ny..,...� �.8�?� . " � �:. .. � . •' '. '. :: � . � . ".:.. ���., ��...� . ..�. :: „��� ' �-.. .. . '_" �. . .. - . . . . . ." „' '. x' g.� .... a�::��. ' . �r. .'���� , r.. . . � , -. . x p,� . _- - y�Y`a:, .�.� ' ' �Y'$� . _ .� . ... :- . �.... . .... . .� ;, . • . � . y � 72-S�Stonc�a?�e prive Palm pcscrt,�a�ifomia 92260 760-773-6223 www.stonccag�cc�u 6.com THE RF SIDF.NC:E CLUt�AT STONE.EAGLE ,�_ LODGING R�SERVA-T"ION POI_ICIE_SAND OPEKATIONAL DE�TAII_5 SEASON: PLANNED STAY RESF.RVATION PROCESS: ■ Second Thursday in November tivough the ■ In the first year,Owners are assigned a Wednesday following Memorial Day. Priority Reservation Number in ascending order of • Approximately 28 or 29 weel:s. their date of purchase,with the earliest purchase date ■ With 27 weeks reservcd per casita,the extra receiving the lowest numbe:r.In cach subsequent year. time provides flexibility for Space Available and Shon the Priority Rescrvation Numbers are adjusted by onc Notice Stays. (#I becomes#2,#2 becomes�3,and so on).l�he Priority Reservation Number establishes each Owmcr Reservation structure does not make a distinction position for thc First Sclection Round for that between In-Season(second Thwsday in November particular year. through Wednesday following Memorial Day)and ■ First Reservation Confirmation Round- Off-Screen since Ylanned Stays can be booked al any Planned Stays are based on an Owner's first time. reservation reyuest.When dcmand f'or certain dates exceeds IcxJging supply,thc Owner with the lowest PLANNED STAY TIME: numerical Reservation Vriority Number for that year ti�ill bc confirmed. � There are lhree(3)Planned Stay Weeks per ■ Second Reservation Confirtnation Round- 1/9 share during the Season(27 weeks pr:r casita). Planned Stays are based on an Owner's second ■ Weeks aze schedule from Thursday through reservation request.When demand for certain dales Wednesday(accommodates Thursday starts of main excceds lodging supply,the Owner with the highest club even�s). numerical Rescrvation Nriority Number for that year will be confirtncd. SYACE AVAILARLE&SHOR7'NOTICE ■ Third Rescrvation Confirrnation Round- STA�'S: Planncd Stays are based on an Owner's remaining reservation requests until all Owners have reserved • Owners may stay additional days,subject to thrce wecks.When demand for ccrtain dates exceeds availability and Club reservation policies on a Spacc lodging supply,the Owncr with the lowest numerical Available or Short Noticc basis described beiow in Keservation Prioriry Number for that ycar will be more detail.Only the published housckeeping fees confirnied. would apply during these stays. By Augw�I5, wrilten confirmation ojeach Owner's Season Ylnnned Stays jor the pending Senson is sen! to ench Owmer.Additionully,a reservation calendar is sent indreating which dates have been reserved hv Owners,and a reservation calendur wrll be main[ained on an Chvner website.Af[er September l, (hvners may reserve Spuce Avuilable.Sm�s as noled below. 1 � . SPACE AVAILABLE STAYS: :�ssociarion�fanagcr at least 1C>nights prior to the Each Owner has unlimited access to and use of arnval date for the earliest I'[anned Stav involved the Residences of the Owner's Unit Type on a in rhe exchange. space available basis. Owners ma}�stay in a • Unaccompanied Guests of an Owner ma}' Residence during a Space Available Sra�•for up to sta}• at a Residence during an (hvner's 7 nights per reservation. I'lanned titay, but not during a tipacc • Space Available Stay reservarions cannot be .�lvailable Stay or Short Notice Stay. rcyuesred prior ro Seprember 1 for the • (hvners ma�� not rent their Planned Srays, followting Season but can be made for an� excepr Eor offering unused lockoff porrions as available time during thar follo�c�ing ticason. described below. • Owners may havc onl}'one tipace.-lvailablc • Stonc Lagle Golf Club ("SliGC") membcrs Sta}'reservation on the books at a rimc. may� arrange for use of Units on a space I Iowever,each C)wner can make one availaUle basis ar the posted nighdy rates. addiuonal Space Availablc tita}�reservation SEGC members mat• submit requests for anyrune within 15 nighrs of a scheduled Shorr Notice Sta}•s at an}•time �dthin fifteen arrival date for that reserearion. (15) da�s prior to the first dav of use. Rental • Space Availabie Sta}�reservarions are income during a tiEGC member Short\otice processed by the.�lssociation 1�fanager on a Stati� period is rerained by the .�lssociation first come,first served basis. '�fanagcr. • To mainrain the exclusivit}•of 11�e Stone SHORT NOTICE STAYS: Eagle Rcsidence Club for the bencfit of its 5hort Nodce Use Periods are a wav for Owners to (hvners,no Chvner ma}'lease,renr,or license book spur-oE-the-moment stays. u'hile a Space the use of a L`nir with the general public nor ,�lvailable Stay may�be reserved months in advance, advertise thc same. Short\odce Stays ma}'only�be booked within 30 da}�s of an(hvner's desired arrival.Chvncrs sunply LOCKOFFS• need ro contact the Clul�'s reservation office Lach Resic�ence con[ains a :�fain I.iving Suite and within 30 days of thcir arnval to check availabilin� either one LockofE L'�nit in the case of a two- and reserve a Unit. l�edroom Residence,or three Lockoff Unirs in thc • Except as provided by reservarion policies case of a three-bedroom Residence. listed above,there is no limir ro nc�number • Chvners ma}'elect to reserve Planned Stati�s or of Space Available Stars and Short Notice Space Available Stays in eirher their whole Stays an(hvner may�take. unit or any portion of thcir unit. :1ny unused • (hvners may onl}•have one Shorr Nouce Sta}' portion of rhe Residence, speci5call}• offered Uooked at a tune,how�ever. by(hvner in w-ridng,will Ue available to othcr • <)nce(hvners use their Short\otice Sta}•, (>wners for Space :\v:ulable or Short Notice they ma}reservc anorher. �X'hile some Stays. Chvners may use Thc Stonc Lagle Residence • If a �nit or unused portion of a unit is not Club less often,others will use it more�fren. reservcd bv anonc�r Owner, it mav bc made • Residence Club Association�fanager may available for nightiv renral rhrough thc book units or lockofEs on tihort?�Iotice basis :lssociadon ��Ianager, wirhin l:i days of stay, for use by Prospecrs for Club membership, to SEGC members at postcd nighdy rates. residential ownership and fracdonal • Rental income,if generared diuing an Owners owncrship which shall be considered Planned Sta}• is split 50/50 Uetwecn nc� sponsored gucsts of tirone Lagle (hvncr and the :lssociarion :�fanagcr. Rental • Developmenr.Renta]income,if generated income, if generared during a Space .�lvailable during a Space.lvailable or Short\orice Sray or Short Notice Sta�� is ret:uned b}� the is retained by the Association:�fanager for the .lssociarion�fanager. benefir of the Residence C1uU. • (hvners will have a reduced housekeeping fee if rhe}� resen�c a smaller pordon of rhe OWNER EXCHANGES: Residence. <hvners may exchange their confirmed Planned Sray nights with othcr(-hvnczs. Exchanges should be arranged direcdy lxtween Owners. Writren notice of an exchange must be provided to the 2 • . WAITLIST: • If an Chvner or I'emurted User dcsires 'I�e Club's reservarion office�vill mainrain a additional housekeeping ser��ices,or causes waitlist during each Club Calendar year for each addirionsil cleaning or housekeeping services L'se Vileek in which demand excecds supply.Each to l�e required over and above that which ow�ner may hold onc waitlist position for a lise would ordinarily be pro�rided,then such Week ar a time.Such waitlist requests ma}�l�e ()wner or Permitted User may be charged a made after written confirmarion of Planned Sra}•s Personal Charge for such addirional service. have been given each Club Calendar y�ear. • �'isits lasung two consecutive Use Weeks or CONCIERGE SERVICES: longer in the same L'nir normall}•rcquire ftil] Residences would have access to a menu of housekeePing and maintenance services at the concierge services suUject to a srandard fee.For end of each Use�k�eek. examplc: • �'Trocery Shopping . Pcrsonal Charges associated with various • .�licport Transportation housekeeping and maintenance services will • Evening Transportation be established b}•rhe Club Board and annually publishcd along with the Club Calendar. HOUSEKEEPING: Planned Stay weeks include the following basic ANNUAL FEES: housekeeping services.I3asic housekeeping services included in the Owner's annual fee 1BD. `.-1nnu.�l F I()A Fees and:�faintenance include: (a)dail}'trash removal and fresh towel budgets are currently Lxing prepared for service to rhe Unit;(1-�)a full housekeeping and Dcpartmenr of Real L'state filings and will Ue maintenance ser�7ce upon deparcure,cegardless of �ro��ided as available. the]ength of stay;and(c)a full housekeeping and muntenance service provided mid-week for stays of five(�)daas or longcr. Y RECORDING REQUESTED BY, AND WHEN RECORDED MAIL TO: City of Palm Desert Attn: Carlos Ortega 73-510 Fred Waring Drive Palm Desert, CA 92260 FOR THE BENEFIT OF THE CITY OF PALM DESERT -NO FEE- 6103 OF THE GOVT. CODE Space Above This Line For Recorder's Use First Amendment to Development Agreement This First Amendment to Development Agreement (this "Amendment") is made and entered into as of this day of , 2007, by and between the CITY OF PALM DESERT, a California municipal corporation ("City"), and STONE EAGLE DEVELOPMENT, LLC ("Developer") as successor-in interest to DESTINATION DEVELOPMENT CORPORATION, a California corporation ("DDC") (City and Developer are, collectively, "the Parties"), pursuant to the authority of Section 65864 et seq. of the Government Code of the State of California. RECITALS A. City and DDC entered into that certain Development Agreement, dated as of November 14, 2002, and recorded on March 11, 2003, as Document No. 2003-172463, in the Official Records of Riverside County, California (the"Agreement"). The A�-eement was entered into to facilitate the development of certain real property("Site") more particularly described in the A��reement. B. The Developer does hold fee title to all of the Additional Property. C. City and Developer now desire to amend the Agreement in the manner set forth herein pursuant to Section 1000 of the Agreement. NOW, THEREFORE, IN CONSIDERATION of the mutual covenants and promises of the Parties, the Parties hereto agree as follows: AGREEMENT 1. Effective Date. This Amendment shall become effective on the date which is two (2) business days after the date which is thirty(30) days after date of final adoption by the City of the ordinance approving this Amendment ("Effective Date"). 41048176.3 ] From and after the Effective Date, all references to the Agreement shall automatically be deemed to mean the Agreement as amended by this Amendment. 2. Defined Terms. All capitalized terms used but not defined herein shall have the meaning set forth in the Agreement. 3. Effect on Additional Propertx. This Amendment will bind the Site upon the Effective Date. Neither the Agreement nor this Amendment will be binding against or affect the title to any portion of the Additional Property until Developer or its designee acquires an interest therein and records the Agreement and this Amendment against such acquired portion of the Additional Property. 4. Amendment to Section 201. From and after the Effective Date, the last sentence in Section 201 (1) shall be revised to read: "Notwithstanding any provisions to the contrary set forth in Chapter 25.100 of the Palm Desert Municipal Code, each DU may(but need not) in developer's sole discretion be sold as up to twelve(12) fractional interests, each of which fractional interests shall permit the owner of such fractional interest to occupy a DU (which may or may not be the DU in which such owner has a fee interest) for a portion of each calendar year." 5. Covenants Run With Land. It is specifically understood and agreed by and between the Parties hereto that the Agreement and this Amendment shall not be severable from Developer's interest in the Additional Property, and the provisions of the A�-eement as amended by this Amendment shall constitute covenants which shall run with the Site or any portion thereof upon the recordation against the Additional Property of the Agreement and this Amendment, and that thereafter the benefits and burdens of the Agreement as amended by this Amendment shall bind and inure to all successors in interest to the Parties. 6. Interpretation. This Amendment shall be interpreted to give each of the provisions their plain meaning. The Recitals are incorporated into this Amendment. 7. Entire Agreement. This Amendment is executed in duplicate originals, each of which is deemed to be an original. This Amendment consists of four(4) pages, which constitute the entire understanding of the Parties as to the matters set forth in this Amendment. 8. Status of Agreement. Except as modified by this Amendment, the terms and provisions of the Agreement shall remain in full force and effect. [SIGNATURES ON FOLLOWING PAGE] a�oas i��.3 2 Proposed Modification 4. From and after the Effective Date, the last sentence in Section 201 (1) shall be revised to read: "Notwithstanding any provisions to the contrary set forth in Chapter 25.100 of the Palm Desert Municipal Code, up to 20 DUs of the 60 DUs may(but need not) be sold as up to nine(9) fractional interests, each of which fractional interests shall permit the owner of such fractional interest to occupy a DU (which may or may not be the DU in which such owner has a fee interest) for a portion of each calendar year. The developer shall be required to obtain City approval for each of the 20 DUs to be potentially sold in fractional interests." a i oa�i��.3 3 IN WITNESS WHEREOF, the undersigned have executed this Amendment as of the date and year first above written. "CITY" CITY OF PALM DESERT, a California Municipal Corporation Effective Date: By: (Mayor, City of Palm Desert) , 2007 Attest: Carlos L. Ortega City Manager Approved as to form: David Erwin City Attorney "DEVELOPER" STONE EAGLE DEVELOPMENT, LLC a Delaware limited liability company Date of Submission by Developer: By: , 2007 4104A 176.3 4 STATE OF CALIFORNIA ) ) ss. COUNTY OF ) On , before me, personally appeared personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s) or the entity upon behalf of which the person(s) acted, executed the instrument. Witness my hand and official seal. Notary Public [SEAL] STATE OF CALIFORNIA ) ) ss. COUNTY OF ) On , before me, personally appeared personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s) or the entity upon behalf of which the person(s) acted, executed the instrument. Witness my hand and official seal. Notary Public [SEAL] 4 I 048176.3 5 �`�C�I'dED G�l' Y CLERK'S OFFICE v�:'H DESERT, CA �TON� �GL� 200� JtJ� 30 PM I: 2g 74-0o i }Z�s�ry�p��� �ndian�l,/e��s,Ca�i�ornia 922 I O 760-779-I 646 Fax 760-779-1469 TRANSMITTAL DATE: July 26,2007 TO: Lauri Aylaian COMPANY: City of Palm Desert FROM: Kris Schulze,Stone Eagle ORIGIONALS DATE DESCRIPTION 1 7/26/07 Letter Waiving Right of Appeal within 40 days Set Se tember 14 Council Date 1 7/26/07 Club Unit Operation Policy 5�I,am rpv � �'r evised Club Unit Operation Policy.As we discussed,we do not have plans . P.,�: ,;t t d it� , '` gram. Ted will be back in towo next week and will be available to answer e ` a���r ng the Club Unit program. Thanks, Kris �; � �� � � ��i r .rvr.F�; ���'�� F .,< �. ,''��'����� a��,•' � r • , r �+r� ��h�` '. y r • �{ E.--r{�q, m�• . �3 ,. "� �:^� y �5�4*' .Y-'s �� ��� �s�� '�, ie �' . g�. .. �.• .... .�'} .. . <- xer �y �'�+., � „ �'��r� ,z� � Y, �ATE:_ �,f�,,;,,' "� i . 3t �+ + '�' ;�- a'� �� ti �<` }���' Y���t�-��'��°��v,� f g �:" ' � ;�"' � ^��F ���!��'' ;�!'� � 7_ ���,�� ' ��.}i �{:..�r.. �. ��r� � 4 � �Q_ T �f. S,�. � ., ,.` .r ..e j Y��� `.�'�'V�„����n � t;' � fi � � � ' A`. � e `� ' r • y.��:: _t...�I.ri '1� ' .. �4y ..'a�t'v�t�l..��..�a t .�.. L�.'T..� .. -� {1 . J4-0O I Reserve prive,�ndian We��s,��9zz i o 760.779.i 646 STor�� ��L� July 25, 2007 Lauri Aylaian Director of Community DeveJopment City of Palm Desert 73-510 Fred Waring Drive Palm Desert, CA 92260-2578 Re: Stone Eagle DA-02-01 Amendment No. 1 Waiver of Right to Appea!within 40 Calendar Days Dear Lauri: As you are aware, Stone Eagle submitted our Appeal Application on July 18, 2007 (the day following the Planning Commission's Resolution of Denial). I understand, that due to summer scheduling constraints, the City desires to postpone the appeal hearing from the August 9, 2Q07 City Council Meeting to the September 14, 2007 City Council Meeting. The timing of rescheduled meeting would exceed our 40 day appeal hearing period. At your request, Stone Eagle waives our right to have the appeal heard within the 40 calendar days providing the appeal is heard at the September 14, 2007 scheduled City Council meeting. Please call me at 760-674-221 Z should you have any questions regarding our appeal request or this letter. Sincerely, �i� Tom Cullinan Senior Vice President Stone Eagle, LLC �4-001 Rcscrve prive,�ndian We��s,CA 9221 O ����� ����� � �A� � �:.��� �� � � :�. . x:� a _ �` ,.. _, y �. � � '� _;4 ti��� a -. � ..:•. �+✓ " �. y�� .. � n �.. ` .. ' �t a �L ' A+ �, {t� �� R .' A q • �' Y �,' � � �p� �ea.w. e. � ��# ��Y��a1n� 'n ��,L�y,��x�"rtT Sy_ �y�i� �lT :��( ��1�'.a� j � , ; �y� V �Y i.a+!.�,-�' ♦ . r.���V' ' ._'�j �� d f ""�� X Y.,"^..� , V �Y„,. r�� � t �� ��� pa. ; .. • �, �,A`� �.;, ', ' £ ,�� - -�r�n r... � g',+ c . �f f ' ' yy _. ,.. . '�� . � ��. n ht'� �i i�r ,.� � � 14 � b. 1� ,y�.: ' , e�� i ' , '1. . 'i � �-'r" q 3} . _ Y- -Ew . � li, li , �1-{YM'irj i�i� ., ;��� �117 ii 'r ����` ��F 7: � � u i��t+��� � ��,. G° kEz�� �t� � �ro ,.w�,�.�, �,,y :y. h�� 'P r.. - 2 �„ ,�✓,... ,� � ,� � F w ^xer.?-�.: r ^�..:..� •��.a� i:.� �.��� �"';��j� S Y: i, ' �' 'iI j ,� � 4Y t$, � '� � :�q ��� :�� y� �� � ' ' (�P�� � � ,� �-�' , � .0 'F�S�! { r�^ 6'���� !�.,'� �"i�:�� � u r� �{ a -. �,rt� ��`{�� ,�.�k.�. I "rl : ''��r� ' T z `?V?� iy � ; � �����F�� ��4� ��' ��. ��r� j� �� �ti� � � ������ �M� �.-� ����� e: !i � '�N'.�'�a� . �'.r�+�5 S - �")4".,,�: L+[ 1 "#�� a � i 1,, �� � n ��� tr.tis '���t �����J�i�(�"R'. � 'qyS�&���'����Ts�.'��,�uf�.v� ��,� f� ' _ . .... . , .7?°�' . _.. . .?�������A.�i:� .., �.c.0�T �h�;�'�+��..��,�i��,`���'; .`',��.. ,�'r}4��'4...:6` Y y� �! .. _ :3:.: � .}... . . . . . 7Z-SOO stone�a�e Drive Palm pescrt,�a�i�omia 92260 76a773-62i� www.stoneea�lcclub.com ThE.RE.SIDENCE.CLU�AT STONE.F�GLE. ,�__ LODGING RES�RVATION POLICIESAND OPERA�TIONAL DETAILS SEASON: PLANNED STAY RESERVATION PROCESS: • Second Thursday in Novcmber through the • ln the first ycar,Owners arc assigned a Wednesday following Memorial Day. Priority Reservation Number in ascending order of ■ Approximately 2A or 29 weeks. their date of purchase,with the earliest purchase date • With 27 weeks reserved per casita,the extra receiving the lowest number. In each subsequent year, time provides t7exibiliry for Space Available and Short the Priority Rcscrvation Numbers are adjusted by one Notice Stays. (#I becomes#2,#2 becomes N3,and so on).The Priority Reservation Number establishes each Owner Reservation siructure does not make a distinction position fo�the First Selection Round for that between In-Season(second Thursday in Novembcr particular year. through Wednesday following Memorial Day)and • First Reservation Confirtnation Round- Off-Screen since Planned Stays can be bookcd at any Planncd Stays are based on an Owner's first time, rescrvation request.When demand for certain dates exceeds lodging supply,the Owner with the lowest PLANNED STAY T[ME: numerical Reservation Priority Number for that year will be confirmed. • There are three{3)Planned 5tay Weeks per � Second Reservation Confirmation Round- I/9 sharc during the Season(27 weeks per casita). Planned Stays are based on an Owner's second ■ Weeks are schedule from Thursday through reservation request.When demand for certain dates Wednesday(accommodates Thvrsday starts of main excecds lodging supply,the Owner with the highest club events). numerical Reservation Priority Number for that year will be confirmed. SPACE AVAILABLE&SHORT NOTICE ■ Third Reservation Confirmation Round- STAYS: Planned Stays are based on an Owner's remainin6 reservation requests until all Owners have reserved ■ Owners may stay additional days,subject to three weeks. When demand for certain dates exceeds availability and Club reservation policies on a Space lodging supply,the Owner with the lowest numerical Available or Short Notice basis describcd below in Reservation Prioriry Number for that year will be more detail.Only the published housekeeping fees confirmed. woulJ apply during these stays. By August/S, written co�rmation of each Owner's Season Planned Stays for!he pending Season is sent to each Owner.Additionally,a reservatinn calendar is sent indicating which dates have been reserved by Owners,and a reservalion culendar wrll be maintained on an Owner website.Ajter September l, Owners may reserve Space�fvailable Stays as noted below. 1 SPACE AVAILABLE STAYS: ownership which shall be considered Each Owner has unlimited access to and use of sponsored guests of Stone Eagle the Residences of the Owner's Unit 1'ype on a • Development.Rental income,if generated space available basis. Chvners may stay in a durir�a Space Available or Short Notice Stay Residencc during a Spacc Available Stay for up to is retained by thc Association�tanager for the 7 nights per reservaaon. benefit of the Residence Club. • Space Available Stay reservations cannot be requested prior to September 1 foz the pWNER EXCHANGES: following Season but can be made for any pwners may exchar�e theiu confiimed I'lanned available time during that following Season. Stay nights with other Owners. Exchanges should • Owners may have only one Space.'�vailable be arranged direcdy becween Owners. Written Stay ceservation on the books at a time. notice of an exchange must be piovided to the However,each Owner can make one Association�4anager at least I C nights prior to the additional Space Available Stay reservation arrival dare for thc carliest Planned Stay involved anytime within 15 nights of a scheduled in the exchange. acrival date foc that reservarion. . L?naccompanied Guests of an Owner may • Space Available Stay reservations are stay at a Residence during an Owner's processed by the tlssociation l�fanager on a Planned Stay, but not during a Space first come,first served basis. Available Stay or Short Nocice Stay. • Owncrs may not rent their Planned Stays. SHORT NOTICE STAYS: . To mauitain the exclusivity of The Stone Short Notice Use Periods are a way foz Owners to Eagle Residence Club for the benefit of its book spuc-of-the-moment stays. V(lhile a Space Owners,no Owner may lease,cent,or Gcense Available Stay may be reserved months in advance, ��use of a Unit with the general public nor Short Nodce Stays may only be booked within 30 advertise the same. days of an Owner's desued arcival.Owners simply need to contact the Club's reservaaon office LOCKOFFS• within 30 days of theu arrival to check availability Each Residence contains a �fain Living Suite and and ceserve a linit. either one Lockoff linit in the case of a two- • Except as provided by reservation policies bedroom Residence,oc three Lockoff L:nits in the Gsted above,thete is no limit to the number case of a three-bedroom Residence. of Space:'�vailable Stays and Short:�Iotice • Owners may elect to reserve I'lanned Stays or Stays an Owner may take. Space AvailaUle Stays iii either their wholc • Owners may only have one Short:�Iotice Stay unit or any pottion of theu usut. An}' unused booked at a time,however. portion of the Residence, specifically oCfered • Once Owners use their Short Notice Stay, b}Owner in writing,will be available to other they may reserve another. Wlule some Owners for Space Available or Short Notice Owners may use The Stone Eagle Residence Stays. Club less ohen,others will use it more oEten. • Ownecs will have a reduced housekecping fcc • Residence Club Association Manager may if they reserve a smaller portion of thc book units or lockoffs on Shoct Notice basis Kcsidencc. for use by Prospects for Club membership, residenrial ownership and fcacuonal 2 WAITLIST: The Club's ceservation of6ce will mauitain a waitlist during each Club Calendar year for each Use Week in which demand exceeds supply. Each owner may hold one waitlist position for a Use Week at a timc.Such waitlist sequests may be made after written confirmation of Planned Stays have been gaven each Club Calendar ycar. CONCIERGE SERVICES: Residences would have access to a menu of concierge services subject to a standard fee.For example: • Grocery Shopping • Airport 1'ransportaaon • Evcning Ttansportaaon HOUSEKEEPING: Planned Stav weeks include the following basic housekeeping services.I3asic housekeeping sennces included in the Owner's annual fee include: (a)daily trash cemoval and fresh towel service to the Unit;(b)a full housekeeping and maintenance service upon departure,regardless of the length of stay;and(c)a full housekeeping and maintenance service pzovided mid-week for stays of five(5)days oc longec. If an Owner or Pemvtted User desires addirional housekeeping services,or causes additional cleaning or housekeeping services to lx required over and above that which would ordinarily be provided,then such Owner or Peanitted User may be charged a Personal Charge Eoc such additional service. • Visits lastin�;two consecutive Use VVeeks or longer in the same Unit normally fequirc full housekeeping and maintenance servicrs at the end of each Use Week. • Personal Charges associated with various housekeeping and maintenance scrrlces will be established by the Club Boacd and annually published along with the Club Calendar. ANNUAL FEES: TIID. *Annual I-IOR Fees and:�taintenance budgets ace curcendy being prepared for Department of Real Estate filings and will be provided as available. 3 MINUTES PALM DESERT PLANNING COMMISSION JULY 3, 2007 Commissioner Schmidt noted that it also runs along the east boundary of his other lot. Mr. Sperber said they were on three lots: his and the two to the west, and it stops. Then it goes north and south. In the 1990's they upgraded that, right before the City incorporated that area, and they put it underground. He's been there 25 years. Commissioner Schmidt thought it was a shame the power lines were there. Mr. Sperber said he tried hard to get rid of them, but there was an issue with the developer to his east and that one pole feeds that whole development. It was a major situation. There were no other questions. Chairperson Campbell asked if anyone wished to speak in FAVOR or OPPOSITION to the application. There was no one and the public hearing was closed. Chairperson Campbell asked for Commission comments. Action: It was moved by Commissioner Tanner, seconded by Commissioner Schmidt, adopting the findings as presented by staff. Motion carried 4-1 (Commissioner Limont voted no). It was moved by Commissioner Tanner, seconded by Commissioner Schmidt, adopting Planning Commission Resolution No. 2447 approving Case No. CUP 07-07, subject to conditions. Motion carried 4-1 (Commissioner Limont voted no). "'�', C. Case No. DA 02-01 Amendment#1 - EAGLE 6.5 LLC, Applicant Request for a recommendation to City Council for approval of an amendment to a development agreement allowing the increase in number of fractional shares from 4 to 12 fractional interests per home within "Stone Eagle" located west of Homestead Road, Highway 74 and the Palm Valley Storm Channel. Ms. Aylaian indicated that in November of 2002 a development was approved called the Stone Eagle development. It is a golf course and dwelling units in the Cahuilla Hills in the south side of town. As part of that 12 MINUTES PALM DESERT PLANNING COMMISSION JULY 3L 2007 project, a development agreement was approved. The development agreement allowed up to 16 dwelling units to be sold at the developer's sole discretion in units of up to quarter shares. That meant any single dwelling unit could be owned by four separate people who occupy it during separate periods of the year. The development has proceeded ahead. Many of the parcels have been sold. The developer still retains ownership of roughly 15 units. As of this point, they've asked to amend their development such that rather than selling the remaining units in quarter shares, they can sell them in up to 1/12 shares, which would allow up to 12 owners in a single property, each of whom would own the property for no more than a month. Ms. Aylaian said the recommendation before Commission is to approve the development agreement. That being said, with the development of Stone Eagle, there have been a number of environmental type issues that have developed and that have resulted in neighbors in the area complaining about different elements of the project. Those elements were being addressed outside of this and mostly deal with the built environment. There are problems and concerns regarding a perimeter access road,drainage into the finro canyons that come down from that area, and regarding some aesthetic treatments.The proposed amendment to the development agreement would not physically change anything in the built environment. It does not entitle more dwelling units, greater intensity, greater height or anything along those lines. It strictly addressed the ownership. Therefore, staff felt it appropriate to separate out this item and bring it to Planning Commission and asked for Planning Commission's review and approval, if appropriate. The applicant was present and would be able to answer questions. Ms. Aylaian pointed out that during their review, staff thought these were going to be sold so that a single owner could own 30 consecutive days. The amendment to the development agreement was prepared with that assumption. Staff subsequently learned that the applicant would like the flexibility to sell those 30 days so that they aren't consecutive. I n other words, someone could buy two weeks in January and two weeks in July. That being said, it started to look, feel and smell just like a timeshare project, so staff included in the resolution the approval of the development agreement and noted before going to Council for approval, they would negotiate a fee that is typically charged to timeshare projects. The fee is handled on a case by case basis; it is a public facilities impact mitigation fee and they would negotiate the amount of that fee specific for this project with the applicant before it went to the City Council for approval. Chairperson Campbell asked for any questions of staff. 13 MINUTES PALM DESERT PLANNING COMMISSIO JULY 3, 2007 Commissioner Limont said she would recuse herself because she is in escrow on a piece of property that adjoins this property and left the room. Commissioner Schmidt asked if the units they were talking about were interspersed within the already sold units, or if they were a phase to the side somewhere. Ms. Aylaian thought they were dispersed, but deferred the question to the applicant to explain which ones he still owns and where they are physically located. Commissioner Schmidt was also curious about the present occupancy rate. She asked how many are sold and occupied. Ms. Aylaian clarified that they currently are entitled to sell up to 60 dwelling units. At this point they have only divided into 44 lots on which there could be 46 units, so 17 of the 46 are unsold, but as far as where they are located, the applicant could address that. When this was originally approved, Commissioner Tschopp indicated it was 60 homes with a maximum of four owners in any one home. Ms. Aylaian concurred. Commissioner Tschopp said it now was going to potentially go from 60 homes to potentially 720 different owners. He asked if there was anything in the original agreement or development that enticed the City or had the City approve it based on the low numbers of units. Ms. Aylaian said there was nothing that she was aware of; she was not involved in the project at the time, but had gone back and reviewed the file and was not aware of anything like that. Commissioner Tschopp said the low number of homes was a part of it, but questioned if the low number of owners was not an issue that she saw in the original data. Ms. Aylaian said no, not that she had seen any indication of. Commissioner Schmidt asked if there was language that addresses the resale of a home which has presently been sold and if they could fractionalize it on resale. She asked if that had been talked about. Ms. Aylaian said no, the agreement was between the applicant/ developer and the City and did not involve any subsequent owner unless the City Attorney provided some correction. Mr. Erwin stated that normally once the unit is completed and sold, that satisfies the development agreement as far as that goes. Now with the 12 intervals in these number of units, once those are sold, they don't address resales. Commissioner Schmidt clarified that her question had to do with the existing units that have already been sold and if they come up for resale. If she owned one and wanted to sell it, could she sell it as a fractional ownership. Mr. Erwin said he thought not. If it is an individual owner that wants to break it into intervals, the owner would have to come back to the City to do that; it was his understanding that the ones sold now are 100% ownership. 14 MINUTES PALM DESERT PLANNING COMMISSION JULY 3. 2007 Commissioner Tanner asked if a 25% owner on an original piece could then sell it to three fractionals. If there were four individuals who bought originally, which is what was originally presented, if 25% decided to put it on the market, could they sell to three fractionals. Mr. Erwin said no; they could sell their quarter, but not to three fractions. There were no other questions and Chairperson Campbell o ened the public hearing and asked the applicant to address the Commission. MR. TOM CULLINAN, 74001 Reserve Drive in Indian Wells, said he would like to address the genesis of this request. What they've found at Stone Eagle is a lot of national and international members that are looking for a shorter period place to stay at the club when they play goif. They originally had 24, a group of three units, that they were going to put into quarter shares, which would have been about 12 particular spots available for those national members. That would not be enough. They were finding that their nationa{ membership allows them to play 21 days of golf during the season and then was kind of unlimited during the summer, so they were kind of looking for a 21- day use pattern that would happen over different weeks, not over 21 straight days. They might go to the club for a week in November, a week in January and a week in April to use their 21 days. They were finding they need more availability for that. The word timeshare was brought up and he said they cringe when they hear it. They look at theirs as a club residence where they are encouraging club members to take advantage of this as opposed to going directly to the general public for a vacation home. This is really a place to stay at the club for club members. Even though they respect staff's view, they didn't believe the facilities use fee is appropriate because it really is a private residence club as opposed to "timeshare". They don't have a hote{ associated with it, they aren't doing three days, two nights stays and giving a free tv to come and view the property. The marketing is done much differently and appeals to a different demographic then the "timeshare". He said they wouldn't increase the amount of traffic in the community. When a resident is not there, he would be able to come back and use the club, but generally they wouldn't, so there isn't increased traffic from the "national" member using the fraction. 15 MINUTES PALM DESERT PLANNING COMMISSION JULY 3, 2007 Mr. Cullinan said they don't buy particular weeks. What happens is they go into a pool to where the first person on the list of 12 selects three weeks theywould like to use,then go to the numbertwo person, and go down the list and then go through and fulfill those weekly requests. Some they can't fulfill because they may want the same weeks, then they go to the second choice. The next year it rotates again so that the persan who picked 12th now picks first, so there is a rotation there to where people can kind of every few years get the weeks they want and weren't just selling a particular week. They believed it would be an asset to their club. They were getting a great group of inembers, national members,that are joining from all around the country who use the restaurants here in town and shop and they think they are great additions to have in the city of Palm Desert, albeit they are not here full time. Commissioner Tanner asked if the fractional use, the 1/12th 30 days, is truly fractional. It can be a certain month and four weeks, or two weeks in December and finro weeks in February. So it isn't 30 contiguous days, it is like he said on a rotating schedule. Mr. Cullinan said that was correct. There could be a situation where they had someone there two weeks in a row, but that would be unlikely. Commissioner Tanner asked what happens if the 30 days are not used by one of the fractionals. Does it go into a rental pool and who benefits from that if days weren't used? Mr. Cullinan said they were approaching it more as a club program to where if a person is not there, another member of that particular club could use it with an appropriate fee. If they went one step further, maybe another club member thaYs not part of the club residents club could use it with an appropriate fee. They would manage the operation through the club house. The general manager there would be responsible for implementing the program and there would be some type of moderate split with the owner, nothing like what they would see with the fractional 50/50. It would be more of an accommodation. Itwasn'ta money makerto run a rental management program for that. There was no financial gain to operate it at all. 16 MINUTES PALM DESERT PLANNING COMMISSION JULY 3, 2007 Commissioner Tanner asked for confirmation that it wasn't a financial gain for either one of them; on the side of the club or the side of the fractional owner. Mr. Cullinan said no. Commissioner Tanner reiterated that it was just a convenience if someone wants it. Mr. Cullinan said they have a homeowner's association that has a relationship with a club to manage it and they pay a fee. He said it was almost a dead cost fee; there was not a profit built into that. Commissioner Schmidt asked where they were with some of the environmental concerns and the creek. Mr. Cullinan said that Ten Lennon, his partner in the project who was not present at the meeting, has been handling that end of it. He hated to speculate. He read the same material that the Planning Commission was provided and has a good understanding. He said that he and Ted have lived here a long time and they have always been good stewards on the developments they do and at the end of the day do the right thing. He believed they would be able to positively find a solution for that certain discussion and debate that is going on. Commissioner Schmidt asked if there were any ongoing get togethers going on presently. Mr. Cullinan knew there was a Director's meeting here at the City a few weeks back. He wasn't aware of when that next meeting would be and thought someone on staff might know. Ms.Aylaian introduced the City's Director of Public Works, Mark Greenwood, and Bo Chen, the new City Engineer. She said that Mr. Greenwood has really been heading that up and was in charge of putting together the Director's Hearing and could probably most appropriately address any questions on these issues. Chairperson Campbell noted that it really wasn't part of this application. Ms. Aylaian said that was correct. Chairperson Campbell indicated they should stick with the application before them. Chairperson Campbell asked if there were any other questions for the applicant. 17 MINUTES PALM DESERT PLANNING COMMISSION JULY 3, 2007 Commissioner Tschopp asked if the potential was for 720 members of the club. Mr. Cullinan said when doing that math it sounded a fittle scary. He didn't believe the market was ever that deep. They did have about 27 of the homes sold. He believed the CC&R's would preclude a private individual from doing "club residents club"; it had to be the declarant, which is Stone Eagle, to set one of those up. They didn't believe the market is 720 deep, but they certainly believed it was more than 12 deep, which is what they can do now. They realized that people were going to come here less than they thought. It's a membership that comes in and they are members of other clubs all around the country that come in for a couple of weeks a year. When people start factoring in the cost of owning an entire home for two weeks of the year, it precludes them from making the jump, so they believed this was a good outlet for those residents who want to come and experience the desert for two to four weeks during the season and have a really great place to stay. Commissioner Tschopp asked if these units were segregated from the 20- some already sold. Mr. Cullinan said they have some blocks that they held back from marketing that they would envision these going on. There are some areas where most of the lots are sold on a particular street, but to go in and identify one unit in the middle of five to make that a "club residents unit" would probably be politically challenging. Their residents receive the same mailing. They only had one call because they know what they are doing would be the right thing for the club and forthe members thatwant to partake. In the community,they only have 43 home sites. Commissioner Tschopp asked if he anticipated any of the existing homeowners at some point in time wanting to fractionalize / timeshare. Mr. Cullinan didn't believe they were able to and that wasn't how they were looking at this.They were looking at it more as an opportunity for their members as opposed to a straight real estate play. He thought they would have to come to the City and didn't believe their CC&R's allow them to fractionalize or do a club residence. 18 MINUTES PALM DESERT PLANNING COMMISSION JULY 3, 2007 Commissioner Tanner asked if going from four to 12 was a monetary issue for them to continue this project. Mr. Cullinan replied no. He said the dollars were the same whether they sell four for$500,000 apiece or 12 for$250,000 or whatever the math is, it kind of came out the same. But what they were finding is that when they do the one-fourth share, which is 13 weeks, the national membership is good for 21 days of golf during the year and they feel like they are buying too much time that they won't use and would ask if they can rent it. They didn't want to get into that rental program and would rather have another resident of the club stay there as part of this club residents program rather than to "rent it out"when they aren't there. So the 13 weeks don't fit with their membership program and that was the reason why. Chairperson Campbell pointed out in the staff report that staff viewed the proposed project as a timeshare. She asked if they had any problem paying the fees if this project was approved. Mr. Cullinan said yes, their views differ from staff's on their vision of what this project is. This isn't the Marriott Desert Springs--the Marriott Desert Springs is a beautiful community there and they do a great job, but that isn't what this is about. He said it seems like that is a little bit of a tough constraint to put on what they call a residents club where they have club members there and more of a fellowship situation as opposed to "strangers" coming in and out and renting them and putting them on vacation rental by owner. That wasn't what this was about. This isn't about buying a timeshare and getting a personal gain by renting it out to other people in high season. That he could see having a fee warranted, but that wasn't what this was about. Chairperson Campbell viewed it in a different way. If they have an enclosed private community and she was living in a home and the home next to her had people coming in and out every two weeks, some could be quiet, some could be partying all the time, and that wasn't what she was paying for her home right next to this other home that was going to have people going in and out of every two weeks. That was her objection in private communities. Mr. Cullinan said the only rebuttal is that a person could buy and rent it out and have the same situation there. They would have club members there that hopefully would treat the neighbors in the community with a higher standard and higher regard than just a 19 MINUTES PALM DESERT PLANNING COMMISSION JULY 3. 2007 person coming in off the street. He thought with the rules, regulations, peer pressure and the security, it wouldn't be an issue. They have a pretty tough membership process to get in and usually those people were somewhat respectful of others. Chairperson Campbell noted that in a condo she owns and the condo next door, that's what they are doing. Mr. Cullinan could understand if they were out renting them and whoever has a deposit could rent and stay there. That wasn't what this was about and would really be controlled by the club members. They could lend to a son, daughter or family member and they couldn't really control that, and that happens in the summer.The kids come down and that's when they have challenges because they get the golf carts out and drive around. Generally speaking, the member knows when a guest is there and is totally responsible for them. They don't just walk away and then leave it up to the member to rectify the problem. So it wasn't just an in and out with the general public getting qualified to be there. There were no other questions for the applicant and Chairperson Campbell asked for testimony in FAVOR or OPPOSITION to the application. MR.TIM BARTLETT,73-382 Salt CedarStreet in Palm Desert,stated that he had two major objections. First, he wanted to clear up some of the statements made earlier. The developer wouldn't be here if there wasn't a monetary benefit. The increased traffic is a fact. Urban Land Institute, a well respected information guide, estimates a difference befinreen four units and 12 units is a factor of five as far as usage. What happens when there are four owners is generally some of those four people know each other or are family members and they tend to care more about who else is in their residence when they aren't. If something is broken or something is damaged or someone acts inappropriately, there are just four people and they can figure it out. When that number becomes 12 people, iYs a whole different ball game. The applicant says he won't be in the rental business, and he was sure he didn't want to be, but he could guarantee that's going to be part of this project. What happens is they change the nature of a private, high-end exclusive community into a timeshare. It smells like a timeshare and looks like a timeshare. Admittedly, it's a high-end 20 MINUTES PALM DESERT PLANNING COMMISSION JULY 3. 2007 timeshare and very weaithy folks who would live here, but wealth doesn't always guarantee better behavior. He thought they really needed to look at this from a broader view. Mr. Bartlett said he was quite surprised to find out that there was any timeshare element in the project. He just learned that fairly recently himself. He read the EIR about six times and neverfound a statement that reflects anything to that, although he was sure it was in there. None of the staff reports mentioned it, although he was sure it was in there. He looked over this project many many times and hadn't seen any mention of it. The first objection was directly related to traffic. Again, traffic would increase and 12 members would use it a lot more than four members, they would care less about who stays there when they aren't there, they are going to care less about what's in there and not in there, and rental does become a big factor. It was just the nature of the beast. W hether high end or {ow end, that was going to happen. The second issue, which the Director of Planning did a good job of trying to steer them away from, is giving the developer another concession when he hasn't met his obligations or conditions of approvaf. Tom stated that they have been in the community and always do the right thing; without this project, he would tend to agree with him, but this was the only project he knew of other than Shadow Mountain that's been done in Palm Desert. Shadow Mountain has been done for quite some time. They have not done the right thing here. The project has been open three years for playing golf. They turned half of the property he owns in Cahuilla Hills adjacent to the project into a swamp. It was a dry canyon and now it is a swamp. There is a gutter of foul smelling,tainted, human waste contaminated water that runs continuously down his property and has for three years. He could no longer even visit his property because his dog gets violently ill every time he goes there, so he can't go to his property any more. He was going to build his dream home there and now didn't know what he was going to do. For them to say they wouid do the right thing is clearly not the right thing unless they consider turning a dry canyon into a swamp doing the right thing. 21 MINUTES PALM DESERT PLANNING COMMISSION JULY 3. 2007 He noted that one of the Commissioners asked what was happening and he understood the Planning Director's and staff's interest in separating the issue, but since the Council, when they approved the tract map for the residential project(and he didn't know if they had an opportunity to read the minutes of September 22, 2002), but the Council at that meeting were planning to delay the approval of the tract map until they got assurance from the developer that this water issue would be resolved and that was four years ago. The developer said yes, they would take care of the matter and at that time the Council approved the tract map. In his humble opinion, the Council made the connection between the existing development and future approval of future developments. Giving the developer another concession when he is violating the conditions of approval on the main project he thought was wrong. Mr. Bartlett said he had with him two pages of EIR, grading plan and governmental agency violations that he submitted, as well as a letter he sent to Mr. Hargreaves, who was acting as city attorney for the Director's Hearing. He said that might have some interest to them and said at the Director's Hearing, there were 12 items brought up; items the developer had failed to comply with. One of the items was the water issue and was probably the most significant. He thought it was significant for everyone in Palm Desert, not just the people who live adjacent to that property. Mosquito Vector Control has been there and identified it as a mosquito habitat. They all knew that West Nile Virus and e-coli are real dangers. They are found in the valley and identified. Mosquitos carry those diseases along with a lot of other scary diseases. Mosquitos have a 15-mile range, so he didn't think anyone in Palm Desert was safe. When they combine high nitrate water with human waste contamination with mosquitos, they were almost assured of an e-coli situation or West Nile situation. Those aren't always life-threatening and might not kill you, but they seem to impact the very young and very old. But people do die from those diseases. He didn't mean to say there would be a swarm of mosquitos killing everyone in Palm Desert and didn't believe that to be the case, but he thought it was very probable that mosquitos would carry one or both of those diseases. He indicated that currently the City is working with a water testing agency for the last three months since the last Director's Hearing. Apparently it would happen in the next month or so and they could 22 MINUTES PALM DESERT PLANNING COMMISSION JULY 3. 2007 verify the contaminated water issue, but they start with the abandoned well. CVWD closed down a well because of some detected contamination, because of human waste contamination, so they start with bad water. What they added to it he didn't know and they would find out. ThaYs what was running down the creeks. Mr. Bartlett encouraged the Planning Commission not to approve this until they do the right thing. If this was purely not an economic consideration, then no harm no foul to them. That's what they were telling the Commission. It is not economic, so fine, they can wait. But for three years there has been human waste water running down his property. The developer made an attempt early on to stop the water. Essentially he put on two diapers in the canyon to try and trap the water. He did make an attempt. Those attempts failed and he has since kind of washed his hands of it and so far they have agreed to come down once a quarter(once every three months)to clean out the non-native vegetation. That's what they have agreed to so far, which to him was remarkable. If he was dumping human waste contaminated water on someone's property on a continuous basis 24- hours a day seven days a week and he proposed once a quarter to come down and send a suit to the dry cleaners, he couldn't make that proposal with a straight face. He thanked the Commission for their time and submitted his letters (see attached Exhibit A). MR. BILL CARVER, 72-275 Upper Way West, stated that they are on the other dry river bed from Tim's property, which was on the other river. To get back to the subject of the proposal, Mr. Carver said from his point of view, although his wife felt a little differently about it, but he thought that Ted has done a pretty good job of trying to overcome and mitigate some of the problems they are having with his development, and from what he sees, he has had a lot of problems on the other river, the other stream bed on the other side, which was a much more difficult problem than the problem the applicant was facing with them. Mr. Carver said this request has definitely disturbed him a little bit. He was aware of the fact that this would be a situation where there would be multiple ownerships;four. This in his mind was turning into a hotel. It was like a 60-room hotel and people would be coming in and out of there. Maybe the guy who takes it for 21 days is only going to take it for 10 days and have a friend come in for the other 10 days or overnight. He saw this as becoming a lot different project than a 23 MINUTES PALM DESERT PLANNING COMMISSION JULY 3, 2007 residential project in a rural area.That concerned him. He didn't know the answer as far as how they could have this, but it seemed to him if they allow a quarter interest, they can then know they have some people who are interested in the property itself and not just the use. That's the one thing that had him concerned as neighbors. They weren't expecting to have a hotel next to their property. He thanked them. There was no one else requesting to speak. Chairperson Campbell asked if there were any rebuttal comments from the applicant. Mr. Cullinan said he wanted to speak to the point of use of property. As with any community down here, people could buy the particular unit and rent it out as much as they want. That happened at The Reserve, it happened at The Vintage and at The Lakes. It happened at some more than others. He shared a different opinion on the amount of use. He didn't think it would be substantially more,whether they had four that didn't use it and would probably want to put it up for rent. That was his rebuttal on that point. On doing the right thing, he thought everyone had a difference of opinion on what the right thing is. He said they always do their very best to find a solution that is feasible to do. Chairperson Campbell closed the public hearing and asked the Commission for comments. Commissioner Schmidt asked forthe number of the quarter share units. Ms. Aylaian said right now they are entitled up to 60 quarter share units; however, at this point there are only 46 parcels and of those 17 remain unsold and 27 have whole ownership. Once they have been sold to a single owner, then as they heard earlier, they couldn't be sold as quarter shares. That would mean there are 17 quarter shares. Commissioner Tschopp asked if there was any code that defines the difference befinreen timeshare and fractional ownership. Ms.Aylaian said our code treats fractional and timeshare ownership the same. It was kind of a nebulous terminology in the hospitality industry. The interval is kind of like a long period of time for timeshare. Some sources say that fractional ownership is no more than four fractional units per year. Some say fractional ownership is up to 12 units per year. She didn't think there was consistent terminology in the industry on that. 24 MINUTES PALM DESERT PLANNING COMMISSION JULY 3, 2007 Commissioner Schmidt asked where in Ms.Aylaian's view the fee would kick in. Ms. Aylaian said that the way it is set up in the Zoning Ordinance, timeshare is permitted and defined as being associated with a 500 or greater room hotel and an 18-hole golf course. There was really only one hotel that met that criteria and that was Marriott Desert Springs which has timeshare with it. There were a number of other projects in the city that they refer to as timeshare, but they technically didn't meet the code definition of timeshare, but they operate like timeshare. Some have club residents ownership and the same type of terminology that they heard this evening. Some flat out call themselves timeshares. But the City ordinance only addresses "timeshare" and establishes an exact fee associated with timeshare if that timeshare is associated with a 500-room hotel. Commissioner Schmidt noted that Ms. Aylaian was saying in her view the proposed project is a timeshare. Ms. Aylaian said that when someone proposes a project that is not associated with a 500-room hotel that operates as a timeshare,they negotiate a different development agreement on a case by case basis specific for that project and establish fees that are appropriate for it, depending on the peculiarities of that case. So these fees are not the timeshare fees established in the ordinance, because it doesn't technically meet the definition of timeshare in our ordinance, but they have some other public facilities impact mitigation fee, or they have project amenity fees, one time access fees,annual access fees, and a host of different fees associated with it depending on what type of project it is. Commissioner Tanner had a two part question. Of the homes that have currently been sold by this development, how many have been sold as non- fractional. In other words, 100% of the dwelling is the owner's. Ms. Aylaian replied that all of the ones sold to date have been sold whole ownership; none are fractional. Commissioner Tanner said part finro of that question was as a result of this, understanding that the whole owners know that potentially there are four owners to the house next door theoretically, he asked if those owners were notified that the applicant has come to the City and asked to increase the four to 12. He asked if they knew that this was a possibility and potential. He asked if there had been any feedback. Ms. Aylaian explained thatthe public noticing requirements forthis project required that all prope�ty owners within a certain distance of the property be notified. So the developer uses a title company to provide the names of all those owners. All of those people were notified and she only received one call from someone who reported that they did own property there and was wondering what was going on. 25 MINUTES PALM DESERT PLANNING COMMISSION JULY 3, 2007 Commissioner Tanner asked for confirmation that there were no complaints or concerns about increasing them from four to 12. Ms. Aylaian said she didn't not hear of them, other than the one call she received that was more of an inquiry and confusion rather than a complaint. Commissioner Tschopp said he understood and liked the concept and thought it would be a great benefit to Palm Desert to bring more potential upscale individuals and families to the city who spend their dollars in the city and use other amenities, businesses, restaurants and so forth. He wasn't sure about the number of when something goes from a fractional ownership to a timeshare ownership, but 12 owners sounds much closer to timeshare than four. He could remember when this project first came before them. To him this is a very sensitive piece of property in a very sensitive area and the idea of a maximum of four owners would make it a very limited upscale development. Now they were talking 12 and in his mind they've crossed the line. Whether it was timeshare, fractional ownership, or hotel, they have crossed the line. He didn't feel like he had enough information at this point to approve it. He didn't know what the statistics say on the impact on traffic and usage and so forth. He didn't feel in some ways qualified to make that decision without that information. He knew the timeshare fee was to offset the additional costs, and he agreed with that, so would have to say it is definitely a timeshare. Most private clubs have restrictions on renting homes out, such as The Vintage, The Reserve, Toscana, Indian Ridge, so it wasn't like a homeowner could rent their home out for short periods of time without the club, when they find out, getting on the homeowner, so he took umbrage there. He believed that at some point in time other current owners will step forward who also want to subdivide or get a variance for their homes because it will be good money for them to do so. So at some point in time fully developed out they would have 60 homes up there with the majority being timeshare. The way it is being presented with the lack of information, he was not in favor of it at this point in time. Chairperson Campbell agreed. As she stated earlier with her condo, to go ahead and have four interests in one home is enough. People don't normally rent their homes for just 30 days, it would be a year or a lease for longer than that, so she was not in favor of this application. Commissioner Tanner said the question he asked about single owners, the answer was, if he heard it correctly, was at this point they have no fractional owners there. He was inclined to leave it at four. The reason he was inclined to do that was because of their success in selling these to individual people certainly presented itself to them tonight. They have no fractional owners 26 MINUTES PALM DESERT PLANNING COMMISSION JULY 3, 2007 there and to potentially increase to 12 would certainly be defeating the City of Palm Desert's purposes and maybe the applicant's, too. He was not in favor of increasing from four to 12 at this point. Commissioner Schmidt said some of her concerns were a little bit different. Since they have the staff report which includes the administrative hearing minutes that talks about all the environmental concerns and downstream human waste, she would really like to see some of that mitigated before they increase density. She was surprised that fractional ownership was allowed to begin with, but that was before she was on the Planning Commission. She thought with such an upscale development, they could handle that. She wasn't so sure about this. She thought it defeated the purpose of that hillside. So she was not in favor of it at this time. Commissioner Tschopp said he would make a motion for denial, but noted they didn't have the appropriate resolution in their packets. Ms. Aylaian stated that staff could return with a resolution of denial at the next meeting. Commissioner Tanner asked if they should leave the public hearing closed or reopen it. Chairperson Campbell said it was closed now and asked if staff was going to come back with a resolution of denial and open the public hearing again. Mr. Erwin stated that if their action is to deny it, they could close the public hearing now and take action on the resolution at their next meeting. They need not continue the public hearing. If they wished to hear further evidence or comments, then they should continue with the public hearing open. Chairperson Campbell stated that the public hearing has been closed, they would have a motion of denial and a resolution of denial for adoption at the next meeting. Before doing that, Commissioner Schmidt asked if the applicant could withdraw his proposal and go back to the drawing board before being denied. Chairperson Campbell said he could do that. Mr. Erwin further clarified that he could do that or request a continuance, or something else that the Commission would be willing to approve. Commissioner Tanner noted that this needed to be done tonight. Chairperson Campbell concurred, before they vote. Mr. Erwin thought the applicant would like to continue it with the public hearing open if the Commission was willing and not deny it tonight. Chairperson Campbell clarified that they were requesting a continuance to the next meeting on July 17 and to not have a resolution of denial. Commissioner Tschopp stated that he was only in favor of a continuance if there was going to be new or more revealing information. Otherwise, there 27 MINUTES PALM DESERT PLANNING COMMISSION JULY 3, 200__7 was a lot of information to gather. At this point in time he would stand by the decision that it should be denied and let the applicant bring additional information or do further study and come before the Commission and start the process over with more information. It wasn't a close vote here. He thought they needed some real information in order to change their minds at this time and saw no need to continue it. He was in favor of denying it and letting them restart the process. Chairperson Campbell agreed;there was no reason to continue the public hearing just to have the applicant come back with the same information. She asked for a motion. Action: It was moved by Commissioner Tschopp, seconded by Commissioner Tanner, by minute motion directing staff to prepare a resolution of denial for adoption at the next meeting (July 17, 2007). Motion carried 4-0-1 (with Commissioner Limont as an abstaining vote). (Commissioner Limont rejoined the meeting at this time.) IX. MISCELLANEOUS A. Discussion of conversion of required open space for development purposes for property located at 74-360 Magnesia Falls Drive. Ms. Aylaian explained that this project has been before the Planning Commission once. In a couple of different guises it has been before the Architectural Review Commission. It has also been before the Landscape Beautification Commission. Before dragging the applicant through yet one more iteration, staff wanted to present the concept to the Commission and have a little bit of discussion as to what is being suggested so they can either put the applicant out of his misery or encourage him to keep trying. Mr. Bagato stated that in a general sense this is a current application, but not a public hearing. He wanted to touch on some of the highlights on the concept of converting open space in projects, because while this is a current project, staff was anticipating the issue coming up again in the future on other projects. He showed a picture of the triangular-shaped property at Magnesia Falls and explained that it was part of the open space area for this residential development approved in 1987. It's a Planned Residential zone which 28 May 17, 2007 EXHIBIT A TRB Robert Hargreaves R'�'b����� Acting Hearing Officer, Assistant City Attomey o� � �4 oa-ol � , �/ City of Palm Desert --r�,,,, Ic 73-510 Fred Waring Drive Palm Desert, CA 92260-2578 Re: Stone Eagle Director's Hearing Report Rebuttal Dear Mr. Hargreaves: Thank you for officiating the Director's Hearing. Often a fresh view of the facts conceming a controversy by a new party can result in a just resolution. As the Assistant City Attomey I imagine you are representing the will of the City as defined by its oodes, ordinances, statues, and general and specific plans. Furthermore, I would expect that you or other staff members will insure that the conditions of approval of a project are fulfilled. As stated in the report the purpose of this hearing is to evaluate the results of mitigation measures and determine compliance with the project EIR. I understand that once you hear the evidence you are to make a written recommendation to the Director of Public Works who will make the final determination. Unfortunately, the only "evidence" offered in the Directors Hearing Report is the "testimony" of a number of consultants. While I acknowledge that the City has and will likely continue to employee these same consultants for various projecis, in this case, none of them were contracted by the City. All of the consultants were paid by the developer and consequently are biased. We were led to believe that the consultants were hired by the City, i� fact Homer Croy; Acting Director during Mark Greenwoods absence during sick leave confirmed this to me in no uncertain terms. Consuttants by their very nature offer expert advice to confirm what you want them to confirm. Asking a consultant to review compliance with his own project is like asking an Architect to do his own plan check and final inspection. tnterestingly, very little of the evidence provided by the surrounding property owners has been considered. Please allow me this opportunity to offer my rebuttal to the information contained in the report. 1. Runoff into Bruce Creek The developer has done an exceptional job trying to charge the residents of Cahuilla Hills with contributing to the water in the creek. In fact, they do, some water does seep into the creek. There are thirty individuals that reside in eleven homes and five vacant tots with irrigation that can possibly contribute to the creek. CVWD estimates that on average a person consumes 100 gallons per day. If we then add for example 400 gallons per day for the five irrigated lots we get a total of 5,000 gallons per day, assuming no loss to evaporation and percolation which are a requirement of the County septic systems. Conversely the golf course irrigation is somewhere between 1,000,000 and 1 �,r?�ii: '.�_z;*'�t±r_.:t:�oi.c�.�„ . >- '_ :'t , �i1 :; . `�. -i.,t „ n„�;,rt (;!1 a:? ?riO . , , .. ,�; , , ,. . , . TRB 2,000,000 gallons per day. Due to the undulating topography I'll bet it is even higher. Anyone who witnessed the earth moving could confirm that ail lose or fractured decomposed granite was scraped off the mountain, (with an enormous amount of additional blasting required), then pulverized to pea gravel and then spread over the entire turf area to a depth of six inches. Consequently the turF, which by its very nature only survives in well draining soil, rests on six inches of pea gravel which lies on solid granite. It is similar to a bald man's toupee, in a shower his scalp will get wet, but most of the water simply runs off. Don't let the developer fool you, this came as no surprise. One merely has to inspect the golf course and see that the holes drain right into the two creeks mentioned. tn fact, actual portions of Bruce Creek have been filled in with twenty or more feet in some areas, toped with turf; consequently portions of the creek are directly irrigated. In other areas drainage pipe extends past their property line to convey water to the creek. No effort has been made to control the surface or subsurFace runoff, even though the EIR clearly warns of its eventuality and in fact recommends further study, which was never performed. Earth Systems informed us at the very first meeting that irrigation water runoff was specifically excluded from their contract. The plastic lining "diaper" that was installed in Bruce Creek was affixed with hydraulic cement. By doing so, back pressure drove the subsurface water to seek a new path of least resistance which coincidentally made it enter the creek at an adjoining branch of the creek appearing like it was coming from existing residences. Except for during and immediately after rain, the diaper has been dry. It is completely ineffective. The statement that the sophisticated irrigation management system minimizes runoff to the greatest extent possible is also false. The turf is irrigated with long intervals which creates the greatest amount of runoff. Stone Eagle's golf course irrigation has tumed downstream portions of two normally dry desert canyons, Bruce & Ramon, into wetlands complete with harmful algae, non-native vegetation and insects, of most concem, ideal disease carrying mosquito breeding habitat. The stagnate and low flow algae covered surface water in both canyons combined extends over a mile in length and provides ideal habitat for breeding mosquito's. The high nitrate, human waste contaminated water, Stone Eagle uses for irrigation, nearly insures that some mosquitoes will carry E. coli bacteria and the West Nile Virus. As you may know, these conditions can be life threatening, especially to mature individuals, with just one bite from a contaminated mosquito. With a normal range of five miles, no one in Palm Desert is safe. The statement that the net result is no harm to the environment couldn't be further from the truth. I no longer enjoy my property. My dog gets violently ill every time we enter the canyon. She has learned to avoid drinking the water; however, she still gets poisoned by the plant material thriving in the contaminated water. The only water test presented, which the Director and the developer tried to imply was acceptable was from the Fruit Grower's Firm which identified the water as good for growing Bermuda grass. It was no surprise. Human waste contaminated water is good for growing just about anything. Z i:l'1_;i�: �;:1�t:..�:�; 1���.�•.)�2`i - ; ,'; = '�. ' .':,1' ._ . '�t . :i . '� ?.':1�1 1�'• . �f 1.� '�;�?'r,!) ..,,.. . -i..��� :. , ._ ; TRB The recommendations offered are ludicrous. A large portion of my property is continuously contaminated with foul water which creates algae, weed and insect proliferation. Offering to clean it up every quarter is an outrage. The City Council was aware of this condition when Stone Eagle gained approval of their residential tract map. In fact, at the City Council Meeting of September 22, 2006, see pages 17 through 19, they prudently addressed the problem and diligently gained the developers assurance that the problem would be solved. Surprisingly at an earlier council meeting they forgave a $1,000,000 drainage fee because presumably they were led to believe that the developer would be making $1,300,000 worth of improvements to Bruce and Ramon Creeks to control drainage. In fact, the funds were used to construct scenic water features for the aesthetic benefit of future residents of Stone Eagle. 2. Golf Course Perimeter Fencing and Road The perimeter road is not shown on any plans, nor mentioned in the EIR. Portions of the road which curren�y led to nowhere perform no function and yet have been substantially improved. In fact, they are ready for paving. The portion that concerns us most is adjacent to the driving range and travels westerly to the large acreage between the conservancy land and the golf course ideal for residential development. I believe that members of staff and other City officials are allowing this unpermitted road to remain knowing the application for additional residential devetopment is forthcoming. One merely has to inspect the developed condition of this roadway to confirm ulterior motives; as I pointed out in a letter to the developer confirming his commencement of grading five months prior to rec;eiving the grading permit. The cart path was designed to convey emergency vehicles, as well as other vehicular access and equipment. Fish � Game has approved welded wire fabric fence in every City in the valley, chain link is not their preference nor is it allowed in the City of Palm Desert. 3. Access to Adjacent Properties No comment. 4. Maintenance of Debris basin Eliminating the low-flow bypass of the Debris basin has nothing to do with disturbing the surrounding terrain, since it has already been disturbed. It will over time however, prevent the natural flow of sand from replenishing the sand blown out of the canyon resulting in the loss of all vegetation. Alfowing the developer to pump water out of the basin at his leisure will insure failure based on his pertormance to date. 5. Temporary Equipment Pad This pad is also absent from any plans inctuding the grading plan, even though iarge quantities of earth were moved. I have been informed that it is to be used as a sod and tree farm, none of which were even contemplated in the E(R. Interestingly there is no landscape plan, a basic requirement for every development. 3 � ._.. . � .. ..�: �f ').3it�t:(� ''r:;:i��1.� Tl � , . . � 1:I �` ../1 I ): . .� ' ._ � . ' ���t (Y^ 1 � : )�� . .. . . . i �./ � . , . i � . .j , - t . . ,�� TRB 6. Golf Course Exceeded Allowed Acreage of Turf If in fact that is true, no comment. 7. Water Source For Golf Course Irrigation If the EIR contains mandates that staff later determines is unnecessary and wasteful what good is it? 8. Snack Bar Once again there is mention of an open air pavilion in the EIR; however, it became their fully conditioned secondary clubhouse complete with a full kitchen, which is not mentioned in the EIR. There is no mention of the snack bar nor is it shown on any approved plans. 9. Maintenance Building Buildings require ARC approval. Metal buildings are prohibited in Palm Desert. Once again a direct violation of the EIR. 10.Comfort Station The EIR clearly states that the comfort stations be self contained not on septic and have natural materials not stucco as they are constructed. 11.Residential Pads Palm Desert's Hillside ordinance, in place at the time clearly states:" Policy 1: In order to maintain the natural contours of the hillsides, developments shall be designed as to require minimal grading and avoid a padding or staircase effect as a result of extensive cut and fill slopes" 12.Archeological Sites The EIR clearly calls for three sites to be investigated further. They were later destroyed without investigation. I believe that the City has not acted in good faith, has supported developer claims knowing they are false, has delayed taking any action until ideally suited for the developePs interest, has conspired with the developer for future development, has gifted the developer with unusual practices and has knowingly disseminated false information. Furthermore, I believe the City has failed to enforce the conditions placed on the project and more specifically the Palm Desert Charter and Municipal Code, the Penal Code, the General Plan, the West Hills Specific Plan and the conditions of approval including the EIR. Following is some of the Municipal Code and Penal Code Violations. The violations of the General Plan, the West Hills Specific Plan and the conditions of approval including the EIR are too numerous to include herewith, however, they have been documented in previous correspondence. 4 !:�?•?1�: ;:ii".. .<`i.���,':lO�. . )I; , �, . �� > -,;�. , _�.i�ir '�t . : �J ,ir., ;l -f (' 'S. .�� .. . . � . . .,. � ,�.�.. . . � 1 , TRB Palm Desert Municipal Code: 8.20.020 Unlawful property nuisances. F. Land graded without an appropriate city permit which causes erosion, subsidence or su�face water drainage problems of such magnitude as to be injurious or potentially injurious to the public health, safety and welfare or to be injurious or potentially injurious to adjacent properties; J. Any swimming pool, spa, pond, fountain or other body of water which is, may become, or which has become polluted, stagnant, a breeding place for insects or otherwise hazardous, odorous or unsightly; M. Premises so maintained as to cause the accumulation of polluted or stagnant water when such water causes a hazardous or unhealthy condition, breeding areas for insects, or erosion of foundation wails or soil; N. Maintenance of property so out of harmony or conformity with the maintenance standards of adjacent properties as to interfere with the reasonable enjoyment of property by neighbors, and depreciate the aesthetic and property values of surrounding property; R. The substantial lack of maintenance of grounds, landscape, shrubs, plants or vegetation within the city which are viewable by the general public from a public right-of- way or viewable from neighboring properties such that the property values of surrounding properties are reduced or such that the aesthetics of surrounding properties are detrimentally affected; 10. Dead, decayed, diseased or hazardous trees, hedges, weeds, shrubs and overgrown vegetation, cultivated or uncultivated, which is likely to harbor rats, vermin or constitute an unsightly appearance, nuisance, fire hazard, or that is detrimental to neighboring properties or property values, 11. Refuse and waste matter defined in this chapter, which, by reason of its location or character, is unsightly and interferes with the reasonable enjoyment of property by neighbors, detrimentally affects property values in the surrounding neighbofiood, or which would materially hamper or interfere with the prevention or suppression of fire upon the premises. (Ord. 638 § 1, 1991; Ord. 541 § 1 (part), 1988) 24.12.040 Subject sources and thei�control requiremenffi. All performance standards and test methods referenced in this section shall be based on the methodologies included in the CoacheNa Valley Dust Control Handbook. F. Public or Private Paved Roads. 1. Any owner of paved roads shall construct, or require to be constructed all new or widened paved roads in accordance with the following standards: a. Curbing in accordance with the American Association of State Highway and Transportation Officials guidelines or as an alternative, road shoulders paved or treated 5 =.;�1.�i�: -. �rt:�,.. ��:,;+�.;I. . :;:� �' . . . . ; . � �; �, i � � � i- , , , . � TRB with chemical dust suppressants or washed gravel in accordance with the performance standards included in subsection (D)(4) with the following minimum widths: i. Average daily tripsMinimum shoulder widths ii. Five hundred to three thousandfour feet iii. Three thousand one or greatereight feet b. Paved medians or as an altemative, medians surrounded by curbing and treated with landscaping, chemical dust suppressants, or washed gravel applied and maintained in accordance with the performance standards included in subsection (D)(4). 2. Any owner of public or private paved roads shall remove or cause to be removed any erosion-caused deposits of greater than two thousand five hundred square feet within twenty-four hours after receiving notice by the city or the AQMD or prior to resumption of trafFc where the paved area have been closed to vehicular traffic. (Ord. '1074 § 2, 2004; Ord. 1056 § 2 (part), 2003) 24.20.050 Discharge of pollutants. A nonstormwater discharge to the storm drain system is a violation of this chapter except as specified below. A. The prohibition of discharges shatl not apply to any discharge regulated under a NPDES permit or waiver issued to the discharger and administered by the state of California under the authority of the EPA; provided, that the discharger is in full compliance with all requirements of the permit or waiver and other applicable laws or regulations. B. Discharges from the following activities will not be considered a source of pollutants to waters of the United States when properly managed: water line flushing and other discharges from potable water sources, landscape irrigation and lawn watering, irrigation water, diverted stream flows, rising ground waters, infiltration to separate storm drains, uncontaminated pumped ground water, foundation and footing drains, water from crawl space pumps, air conditioning condensation, springs, individual residential car washing, flows from riparian habitats and wetlands, dechlorinated swimming pool discharges or flows from fire fighting. (Ord. 843 § 1 (part), 1997) 24.20.200 Concealment Causing, permitting, aiding, abetting or concealing a violation of any provision of this chapter shall constitute a violation of such provision. (Ord. 843 § 1 (part), 1997) 24.20.210 Acts potentially resulting in violation of federal Clean Water Act and/or Porter-Cologne Act 6 =��._�;l: .. ,. .; .,,.. - .,�.. . . . , � . � �. �� . , TRB Any person who violates any provision of this chapter, any provision of any permit issued pursuant to this chapter, or who discharges waste or wastewater which causes pollution, or who violates any cease and desist order, prohibition or effluent limitation, also may be in vio(ation of the federal Clean Water Act and/or Porter-Cologne Act and may be subject to the sanctions of those Acts including civil and criminal penatty. Any enforcement actio� authorized under this chapter should also include notice to the violator of such potential liability. (Ord. 843 § 1 (part), 1997) 25.46.030 Conditional uses. The following uses and structures shall be permitted in the D district subject to the issuance of a conditional use permit by the planning commission: A. New residential, commercial, industrial, and agricultural structures permitted by the undertying district regulations involved, and when they comply with all of the conditions listed below: 4. Landfills, improvements, developments, or other encroachment effect on the one-hundred-year flood level such that the water surface elevations of the one- hundred-year flood are increased by more than one foot shalt be fully off-set by requirements for stream improvements meeting with the approval of the chief engineer of the affected flood control district; 25.46.040 Prohibited uses. The following uses are specifically prohibited in the D district: A. Excavations that will tend to broaden the floodplain or direct flood flows out of the natural floodplain; B. Landfills, improvements, developments, or other encroachments that would increase water surface elevations of the one-hundred-year flood more than one foot or that cannot be fully offset by stream improvements as provided in Section 26.46.070; C. Storage of floatable substances or materials which will add to the debris load of a stream or watercou�se. (Ord. 97 § 1 (part), 1975: Exhibit A § 25.26-4) 25.46.070 Special standards. A. Development of hillside canyon areas shall not occur until hydrology is submitted which specifies techniques for management of runoff. The exact tocation of development shall include the determination resulting ftom a hydraulic study. B. Other standards required under conditional use permits shall also apply. (Ord. 212 § 1 (part), 1979: Ord. 97 § 1 (part), 1975: Exhibit A § 25.26-7) 7 .-�;..?�i: s:.:ltf=i`" :.t._i... `i-�. . . . .' ,.t , . .J . � " �i `i �'� ^ , '. . �' . . . . ;, TRB 27.12.059 Drainage devices. A. Except on slopes, drainage devices shall be constructed with minimum gradients as follows: Portland cement concrete construction - 0.5%; air-blown concrete construction - 0.5%; asphaitic concrete pavement- 0.5°r6; soils swales - 0.5%; pipes - 0.4%. B. Drainage devices constructed on slopes shall have a minimum gradient of five percent. Such drainage devices shall be constructed of air-blown concrete or Portland cement concrete with suitable reinforcement. Closed conduits, unpaved swales and asphalt concrete drainage structures shall not be used for siope drainage. C. Drainage devices shall be constructed to convey drainage to an established private or public water course, channel, storm drain or public sVeet and shall be of a design to prevent erosion. 27.12.140 Nuisance prevention. The permittee shalt take such steps as are reasonably necessary to prevent creation of a nuisance, including but not limited to spillage, dust, erosion and noise control. (Ord. 294 (part), 1982: Ord. 126 § 1 (part), 1976: Exhibit A § 27.2-8) 27.12.200 Final inspection. No final inspection approval or certificate of occupancy shall be issued by the building official until final approval of the finished grading has been given by the city engineer. (Ord. 465 § 2 (part), 1986) 28.10.060 Floodways. Located within areas of special flood hazard established in Section 28.06.020 are areas designated as floodways. Since the floodway is an extremely hazardous area due to the velocity of floodwaters, which carry debris, potential projectiles, and erosion potential, the following provisions apply. A. Prohibit enc�oachments, including fill, new construction, substantial improvement, and other new development unless certfication by a registered professional engineer is provided demonstrating that encroachments shall not result in any increase in the base flood elevation during the occurrence of the base flood discharge. B. If Section 28.10.060(A) is satisfied, all new construction, substantial improvement, and other proposed new development shall comply with all other applicable flood hazard reduction provisions of Chapter 28.10. (Ord. 985 § 1 (part), 2001) . 8 =:,�ai�: :��::?: �. __ �% �<:! <. ���i . . �. . . � . , . . •r ,� � �;; � ';} . . ' ; . , ; ; ,. : , ; ; � TRB 28.10.070 Mudslide (mudflow) prone areas. A. The floodplain administrator shall review permits for proposed construction of other developrnent to determine if it is proposed within a mudslide area. B. Permits shall be reviewed to determine that the proposed site and improvement will be reasonably safe from mudslide hazards. Factors to be considered in making this determination include but are not limited to the: 1. Type and quality of soils; 2. Evidence of ground water or surface water problems; 3. Depth and quality of any fill; 4. Overall slope of the site; and 5. Weight that any proposed development would impose on the slope. C. Within areas, which may have mudslide hazards, the floodplain administrator shall require that: 1. A site investigation and further review be made by persons qual�ed in geology and soils engineering; 2. The proposed grading, excavation, new construction, and substantial improvement be adequately designed and protected against mudslide damages; 3. The proposed grading, excavations, new construction, and substantial improvement not aggravate the existing hazard by creating either on-site of off-site disturbances; and 4. Drainage, planting, watering, and maintenance not endanger slope stability. (Ord. 985 § 1 (part), 2001) Penal Code Sections: 370. Anything which is injurious to health, or is indecent, or offensive to the senses, or an obstruction to the free use of property, so as to interFere with the comfortable enjoyment of life or property by an entire community or neighborhood, or by any considerable number of persons, or unlawFully obstructs the free passage or use, in the customary manner, of any navigable lake, or river, bay, stream, canal, or basin, or any public park, square, street, or highway, is a public nuisance. 374.7. (a) A person who litters or causes to be littered, or dumps or causes to be dumped, waste matter into a bay, lagoon, channel, river, creek, slough, canal, lake, or reservoir, or other stream or body of water, or upon a bank, beach, or shore within 150 feet of the high water mark of a stream or body of water, is guilty of a misdemeanor. (b) A person convicted of a violation of subdivision (a) shall be punished by a mandatory fine of not less than two hundred fifty dollars ($250) nor more than one 9 :�:�.,.i: '�..,r� _:t:� ,,:' ,,�� , : i .. . • , � .} , , TRB thousand doliars ($1,000) upon a first conviction, by a mandatory fine of not less than five hundred dollars ($500) nor more than one thousand five hundred dollars ($1,500) upon a second conviction, and by a mandatory fine of not less than seven hundred fifty dollars ($750) nor more than three thousand dollars ($3,000) upon a third or subsequent conviction. (c) The court may, in addition to the fine imposed upon a conviction, require as a condition of probation, in addition to any other condition of probation, that any person convicted of a violation of subdivision (a), pick up litter at a time and place within the jurisdiction of the court for not less than eight hours. We are only making three requests, which have not changed from day one: Mitigate the water flowing in Bruce and Ramon Creek, this can be accomplished by increasing and channeling the flow and prohibiting contact with soil, with some weekly maintenance if necessary , which if the water is recaptured will pay for itself over time, (similar to the onsite stream created for the enjoyment of the members); remove and renaturalize the equipment bunker and the roads leading to it; and maintain the debris basin. Should you wish to discuss this matter, please do not hesitate to contact me. Sincerely, Timothy R. Bartlett, Palm Desert Resident 10 :,,r�ii• .�:� `'.�t�{: -�`,-��;! �. , , , . . � , ': . ��: , ,,,.,, �,.,::. . �' � �., ;,.., � , .. . . . ... , � ,. , Stone Eagle EIR, Grading Plan & Governing Agency Violations Prepared by Tim Bartlett on June 1, 2006 Bruce Crsek •Ignored EIR engineering consultants facts: "Ephemeral wash cutting through bedrock is dry" EIR III-28, no surface water and no groundwater to a depth of 50' ES-5, two seeps do not have free waber EIR III-57, nearest wa�er source for sheep is located 1.5 miles north northwest EIR VIII-10 •Failed to meet requirements, "Hydrologic conditions would not be aifected by this development" E!R V-9 "no significant cumulative impacts to affec�ed drainage systems" and "net reduction in anticipated runoff discharge EIR VIII-4 •Failed to "prepare and submit for department approval a storm water pollution prevention plan and a detailed re-vegetation/enhancement pian for the restoration of the dry wash habitat EIR III-58 and failed to "remove silt and revegetate afber each major event" EIR Ilf-29 •Omitted "low flow outlet structures to allow 10-yr or less to pass" EIR III-29 •Failed to "remove invasive non-native plant species on affected lands" EIR III-57 Inigation Water •Omitted study of irrigation water runoff, only studied storm water runoff and project required to retain 100q6 of the 100-year storm SEtR-18 • Ignored EIR engineering consultanta facts: "Positive measures shouid be taken to finish grade the building pads and other improvements so that drainage is directed away from foundations and the tops of slopes into controlled drainage devices. Experience has shown that even with these provisions a shallow groundwater or subsurface condition can and may develop in areas where no such conditions existed prior to development; this is particularly true where a substantial increase in surface water infiltration results from an increase in landscape irrigation" Geocon 21-22 •Failed to "prohibit non-$torm water discharge into storm drains" a NPDES requirement EIR III-41 and failed to follow streambed alteration agreement • Ignored EIR engineering consultanfs fac�s: "Mosquito carrying E coli bacteria found in Desert is related to high nitrate levels of water" EIR II-9 III-39 and 40% of water returned to aquifer EIR III-38 and the relatively flatter Reserve used as estimate for water usage is false due to undulating topography of Stone Eagle EIR III-43 Golf Course •Exceeded maximum 92 acres of turf and 10 acres of desert landscaping EIR III-42 and failed to gain approval of additional golf car patha � •Omitted "potable ground water for tees and greens to regulate nitrates" EIR III-42 •Failed to use acceptable material for the chain tink sheep exclusion fence, and failed to gain ARC approval. •Failed to gain ARC approval of °Open air" pavilion which is a fuily conditioned mini-clubhouse overlooking the 19"' hole EIR III-84, III-100 and added an open air pavilion overlooking the 9�' hole without including in EIR •Failed to use "structures planned for the project will consist of stucco and rock veneers that emulate the color and texture of the surrounding landscape" EIR III- 99, IV-4 •Failed to use contained septic system for comfort stations, used leach field •Exceeded grading boundary with additional driving range tees and additional turf not shown on grading plan .Failed to remove temporary equipment pad and roadways leading to it •Exceeded "all rock in fill soil shall be no greater than 3" diameter" EIR III-24 and exceeded "unprotected graded slopes no steeper than 3:1,H:V" EIR III-25 •Removed 100+ year old barrel cactus to use for golf course when restricted for use in natural open space AMEC 16 Residentia! Village •Failed to avoid staircase effect with minimal grading Hillside Planned Residential Zoning: Policy 1: "In order to maintain the natural contours of the hillsides, developments shall be designed as to require minimal grading and avoid a padding or staircase effect as a result of extensive cut and fill slopes" EIR III-2. •Destroyed three archeological sites that required further investigation •Failed to remove silt and revegetate washes after each major event EIR III-29 •Violated 404 Permit: bank protection will be designed to allow native vegetation to be planted PACE 58� 6 Agency ReportingNiolations •Failed to prevent leaky fuel storage tank and illegal human waste discharge during construction CRWQCB EtR 111�1 •Failed to foflow SCAQMD requirements EIR III-81 •Failed to complete agency notification to USFWS, CDFG, Army Corps EIR III-59 �-�-� CITY OF PALM DESERT / , � DEPARTMENT OF COMMUNITY DEVELOPMENT STAFF REPORT '� , . REQUEST: Approval of an amendment to a development agreement allowing the increase in number of fractional shares from 4 to 12 fractional interests per home within "Stone Eagle"; west of Homestead Road, Highway 74 and the Palm Valley Storm Channel SUBMITTED BY: Phil Joy, Associate Transportation Planner Department of Community Development APPLICANT: Eagle 6.5 LLC 74001 Reserve Drive Indian Wells, CA 92210 CASE NO: DA 02-01 Amendment# 1 DATE: July 3, 2007 Recommendation: Staff recommends that the Planning Commission adopt the findings and Resolution No. approving the development agreement amendment subject to conditions. Discussion: The original development agreement for Stone Eagle and allowed each of the 60 homes within the project to have 4 fractional interests, similar to a timeshare. This amendment will allow the homes to be divided into 12 fractional interests of not less than 30 days. The applicant has clarified that the 30 days may be broken up with half during season and the other half off-season. Staff views this as a timeshare and recommends that the units utilizing this arrangement be subject to the "facilities use fee" paid by all other timeshare projects within the city. The Stone Eagle Project is nearly complete and is in the process of having the project pass a final inspection, thereby allowing bonds to be released by the city. In May, the Assistant City Attorney chaired a hearing with . Staff Report July 3, 2007 Case No. DA 2-1 Amendment# 1 Page 2 of 2 area residents that are unhappy with the project's progress on outstanding issues including runoff from the project into a canyon named "Bruce Creek" and the hillside disturbance that created a dirt road adjacent to the perimeter fence. These environmental issues are being addressed through the Director's Hearing process, and are not related to the proposed amendment to the Development Agreement submitted here for consideration. Staff notified residents within 300 feet of the entire project, those noticed for the Directors' Hearing with the Assistant City Attorney, and a late mailing was made to property owners within the project. Staff received a few calls with no opposition voiced after a further explanation of the request was made. Attachments: • Resolution • Legal notice • Minutes from Director's Hearing Submitted By: / PHI JOY Associate Transpo tion Planner Approva � � ��� LAURI AYLAIAN � Direc f unity De opment �� HOMER C Y ACM, Development Services � PLANNING COMMISSION RESOLUTION NO. A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF PALM DESERT, CALIFORNIA, RECOMMENDING TO CITY COUNCIL APPROVAL OF A DEVELOPMENT AGREEMENT RELATING TO THE PROJECT KNOWN AS "STONE EAGLE" LOCATED ON PROPERTY IN SECTION 25 T5S R5E AND A PORTION OF SECTION 31 T5S R6E. CASE NO. DA 02-01 AMENDMENT #1 WHEREAS, the Planning Commission of the City of Palm Desert, California, did on the 3RD day of JULY, 2007, hold a duly noticed public hearing to considerthe request of EAGLE 6.5 LLC for a recommendation of approval of DA 02-01 AMENDMENT# 1 to the City Council; and WHEREAS, at said public hearing, upon hearing and considering all testimony and arguments, if any, of all interested persons desiring to be heard, said Planning Commission did find the following facts and reasons to exist to justify recommending to City Council approval of said request: 1. The proposed development agreement is consistent with the provisions of Municipal Code Chapter 25.37 Development Aqreements. NOW, THEREFORE, BE IT RESOLVED by the Planning Commission of the City of Palm Desert, California, as follows: 1. That the above recitations are true and correct and constitute the findings of the Commission in this case. 2. That approval of Development Agreement DA 02-01 Amendment# 1(Exhibit A as amended to include a "Facility Use Fee" is hereby recommended to City Council for approval. PASSED, APPROVED and ADOPTED at a regular meeting of the Palm Desert Planning Commission, held on this 3rd day of July, 2007, by the following vote, to wit: AYES: NOES: ABSENT: ABSTAIN: SONIA CAMPBELL, Chairperson ATTEST: LAURI AYLAIAN, Secretary Palm Desert Planning Commission RECORDING REQUESTED BY, AND WHEN RECORDED MAIL TO: City of Palm Dcsert Attn: Carlos Ortega 73-510 Fred Waring Drive Palm Desert, CA 92260 FOR THE BENEFIT OF THE CITY OF PALM DESERT -NO FEE- 6103 OF THE GOVT. CODE Space Above This Line For Recorder's Use First Amendment to Development Agreement This First Amendment to Development Agreement (this "Amendment") is made and entered into as of this day of , 2007, by and between the CITY OF PALM DESERT, a California municipal corporation ("City"), and STONE EAGLE DEVELOPMENT, LLC ("Developer") as successor-in interest to DESTINATION DEVELOPMENT CORPORATION, a California corporation ("DDC") (City and Developer are, collectively, "the Parties"), pursuant to the authority of Section 65864 et seq. of the Government Code of the State of California. RECITALS A. City and DDC entered into that certain Development Agreement, dated as of November 14, 2002, and recorded on March 11, 2003, as Document No. 2003-172463, in the Official Records of Riverside County, California (the"Agreement"). The A��reement was entered into to facilitate the development of certain real property ("Site") more particularly described in the Agreement. B. City and Developer now desire to amend the A��reement in the manner set forth herein pursuant to Section 1000 of the A�-eement. NOW, THEREFORE, IN CONSIDERATION of the mutual covenants and promises of the Parties, the Parties hereto agree as follows: AGREEMENT 1. Effective Date. This Amendment shall become effective on the date which is two (2) business days after the date which is thirty(30) days after date of final adoption by the City of the ordinance approving this Amendment ("Effective Date"). From and after the Effective Date, all references to the Agreement shall automatically be deemed to mean the Agreement as amended by this Amendment. a i oas i�b.a � 2. Defined Terms. All capitaliLed terms used but not defined herein shall have the meaning set forth in the Agreement. 3. Effect on Site. This Amendment will bind the Site upon the Effective Date. 4. Amendment to Section 20l. From and after the Effective Date, the last sentence in Section 201 (1) shall be revised to read: "Notwithstanding any provisions to the contrary set forth in Chapter 25.100 of the Palm Desert Municipal Code, each DU may(but need not) in devcloper's sole discretion be sold as up to twelve (12) fractiona] interests, each of which fractional interests shall permit the owner of such fractional interest to occupy a DU (which may or may not be the DU in which such owner llas a fee interest) for a portion, but not less than 30 days, of each calendar year." 5. Covenants Run With Land. It is specifically understood and agreed by and between the Parties hercto that the Agreement and this Amendment shal] not be severable from Developer's interest in the Site, and the provisions of the Agreement as amcnded by this Amendment shall constitute covenants which shall run with the Site or any portion thereof upon the recordation of t11is Amendment, and that thereafter the benefits and burdens of the Agrcement as amended by this Amendment shall bind and inure to all successors in interest to the Parties who acquire any interest in the Site. 6. Interpretation. This Amendment shall be interpreted to give each of thc provisions their plain meaning. The Recitals are incorporated into this Amendment. 7. Entire A�reement. This Amendment is executed in duplicate originals, each of which is deemed to be an original. This Amendment consists of four (4) pages which constitute the entire understanding of the Parties as to the mattcrs set forth in this Amendmcnt. 8. Status of A�reement. Except as modified by this Amendment, the tern�s and provisions of the Agreement shall remain in full force and effect. [SIGNATURES ON FOLLOWING PAGE] -31048 I 7G.4 2 IN WITNESS WHEREOF, the undersigned have cxecuted this Amendment as of the date and year first above written. "CITY" CITY OF PALM DESERT, a California Municipal Corporation Effective Date: By� (Mayor, City of Palm Desert) , 2007 Attest: Carlos L. Ortcga City Manager Approved as to form: David Erwin City Attorney "DEVELOPER" STONE EAGLE DEVELOPMENT, LLC a Delaware limited liability company Datc of Submission by Developer: By: , 2007 �t i oas�n�.a 3 , STATE OF CALIFORNIA ) � SS. COUNTY OF ) On , before me, personally appeared personally known to me (or proved to me on the basis of satisfactory cvidcnce) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signaturc(s) on the instrument the person(s) or the entity upon behalf of which the person(s) acted, cxecuted the instrument. Witness my hand and official seal. Notary Public [SEAL] STATE OF CALIFORNIA ) ) ss. COUNTY OF ) On , before me, personally appeared personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their si�,mature(s) on the instrument the person(s) or the entity upon behalf of which the person(s) acted, executed the instrument. Witness my hand and official seal. Notary Public [SEAL] a�oaxi��.a q ,.1=, . CITC' � f � fl � (� D � S � R � � 73-S�o Ft�u WnkwG D2tve I�ALM�F.SERT,CALI((�RNIA y2260-257E TEt:760 ;q6—ob�i Fnx:760 ;qi-7o98 , in{o@palm-dcscrt.org CITY OF PALM DESERT LEGAL NOTICE CASE NO. DA 2-1 Amendment#1 NOTICE IS HEREBY GIVEN that a public hearing will be held before the Palm Desert Planning Commission to consider a request by Eagle 6.5 LLC for approval of an amendment to a development agreement to allow the division of homes from 4 to 12 fractional interests within Stone Eagle;west of Homestead Road, Hwy. 74 and the Palm Valley Channe!(Tract 30438). — C of Palm Desert Me -- ----- - ----- ': ��;r,�•�.- o _ ,'"'� �,��' �� �+ s�''t�' '�%� I, t .� i, "�:�:�-�r�, I ,. `;: yi4: i i, N� T t# J }'K"'��f��� I �� I '1 7 ,�.r.tg..2, I I I I TM � 'lii�iii I II � n�-, ...afe, i ... .'i t.y"i,�..7<:.'>�r F ...i . . ����" "�.�:;�y.�>�B' uy I I i � SAID public hearing will be held on Tuesday,July 3,2007 at 6:00 p.m.in the Council Chamber at the Palm Desert Civic Center, 73-510 Fred Waring Drive, Palm Desert, Califomia,at which time and place all interested persons are invited to attend and be heard. Written comments conceming all items covered by this public hearing notice shall be accepted up to the date ofthe hearing. Information concerning the proposed project is available for review in the Department of Community Development at the above address between the hours of 8:00 a.m.and 5:00 p.m. Monday through Friday. If you challenge the proposed actions in court,you may be limited to raising only those issues you or someone else raised at the public hearing described in this notice,or in written correspondence delivered to the Planning Commission(or city council)at,or prior to,the public hearing. PUBLISH: Desert Sun � Laurie Aylaian,Secretary June 23,2007 Palm Desert Planning Commission Stone Eagle Director's Hearing 05-17-07 2:00 PM Administrative Conference Room Assistant City Attorney Bob Hargreaves began the meeting at 2:00 by introducing himself and stating that the meeting was being recorded. The purpose of this meeting is to allow the City to decide whether to accept the Stone Eagle project as complete. This decision lies with Mark Greenwood, Director of Public Works; however, due to the high level of interest and involvement that the adjacent property owners have maintained, it was decided to open the process so that concerns may be heard and worked through. Mr. Hargreaves will later summarize the issues and any compromises or agreements in a written recommendation to Mark. Mr. Hargreaves stated that we would go through the staff report dated 05-10-07 and discuss the issues one at a time. Staff is to state the issue and their recommendation, and residents may then comment on that issue as we go along. Mr. Hargreaves asked that anyone wishing to speak raise their hand and give full name and address the first time they speak and after that to state their name before they speak. Going around the table, each person gave their name and affiliation or address. Robert Hargreaves, Assistant City Attorney and Hearing Officer Lauri Aylaian, Director of Community Development, City of Palm Desert Lynn Calardine, LSA Associates Dr. Jerry Meints, Resident, Cahuilla Hills John Criste, Terra Nova, EIR Preparer Mark Fisher, Staff Biologist, UCR/Boyd Deep Canyon Dr. AI Muth, Biologist, UCR/Boyd Deep Canyon, present only to speak to biological issues on their report Dr. Peter Schear, Resident, Cahuilla Hills Doug Hart, Resident, Cahuilla Hills Walter Hoffmann, Cahuilla Hills HOA Ruth DeWitt, Resident, Cahuilla Hills Tim Bartlett, Property Owner, Cahuilla Hills Nancy Scott, Resident, 71-487 Painted Canyon, presented a packet to Bob Hargreaves so that he could follow along with her prepared comments Piero Pierattoni, Resident Rod Chamberlain, CV Mosquito and Vector Control Ms. Carver Carver, Resident Bill Carver, Resident Ted Lennon, Lowe Enterprises, Stone Eagle Development Phillip Joy, Associate Transportation Planner, City of Palm Desert Terry Cechin, Public Works Inspector, City of Palm Desert Mark Greenwood, Director of Public Works, City of Palm Desert Debra Lee, Secretary, Public Works Department C:\Documenls and Settings\pjoy\Loc4 �ettings\Temporary Internet Files\OLKC\05-17-07 Stc. �agle Director's Hearing Minutes.doc 1. Runoff into Bruce Creek Mark Greenwood gave description and boundaries of the property. The project EIR for Stone Eagle indicates the creek is normally dry but since the golf course has been completed Bruce Creek has had water in it almost continually. A representative photo of the creek taken earlier during the week was displayed. This is the one issue from staff perspective that is the most serious. Mr. Greenwood indicated that we asked a lot of experts for their opinions and have received them (see staff report); the consensus is that there is water present but that is not detrimental. Mr. Greenwood explained the four recommendations for Bruce Creek in the staff report and added that Stone Eagle has responded to these recommendations by providing a schedule for the staff inspections and indicating a willingness to comply. Mr. Greenwood displayed a second photo of Bruce Creek that shows water seeping directly out of the rock wall on the side of the creek. It is reported by the Public Works Inspector that if you cup your hand under the seepage it will fill your hand in just a few seconds, so it's a significant amount of water. IYs on the Stone Eagle side of the canyon. With regard to recommendation #4, Ted Lennon said that half a million dollars is too much, and indicated that Stone Eagle would propose a reasonable bond for a certain number of years, and would also suggest a five-year review of the program by staff. He reiterated that Stone Eagle would be willing to do a bond or an agreement that would be enforceable. Bob Hargreaves stated that he would anticipate that we'd have some sort of mitigation agreement with a security component that may be subject to review sooner than five years. Dr. Meints asked whether this is the only plan in existence, because he has heard of other plans that were more creative—for example, circulating the water back to the golf course lake. Mr. Greenwood agreed that this idea had come up early in the process. Mr. Lennon explained that it would take three to four years to get such a thing through the various agencies, including the Army Corps of Engineers, in order to allow Stone Eagle to do this over a blue line stream. In addition, there would be huge water and electricity costs, making it seem impractical from the environmental side. Lynn Calardine asked to clarify a recommendation, whether removing non-native vegetation includes the property owners downstream if they agree to allow access to their property, and Mr. Greenwood answered that it does. Mr. Calardine asked about any extra sedimentation or erosion that would occur, and John Criste stated that the water coming out of the side walls is clear, and the volumes are such that most of the water is running across bedrock so that there isn't a sedimentation issue. Page 2 of 17 C:\Documents and Settings\pjoy\Loc� �ettings\Temporary Internet Files\OLKC\05-17-07 St� cagle Director's Hearing Minutes.doc Dr. Schear stated that the residents have already seen erosion of some sort after one and a half years. He said it appears foolish to ask Stone Eagle to have a retention basin and a generator and to recirculate water when the end goal is to avoid having stagnant water in the base of the creek. It would waste money because it wouldn't prevent the water from coming back into the creek. Mr. Lennon explained that the purpose is that it reduces the sedimentation. Stone Eagle must eventuaily have to clean out the basin and haul the sedimentation away. He commented that erosion is going to happen two or three times a year with major floods. Dr. Schear asked why there is still a generator catching the water. M. Lennon said that all the water used to come into the creek at that point but that iYs been moving down the creek so that iYs past the pump now, and that iYs dried up at the point of the pump. Dr. Schear said that it doesn't make logical sense to have a pump/generator disturbing the neighbors. Mr. Lennon said that they hope to take the pump out when we know the water's dried up, and that the pump actually hasn't been operating for a long time. Ms. Carver stated that she has concerns about removing the pump from Bruce Creek and the impact on Ramon Creek. Dr. Schear stated he is speaking about Bruce Creek only. Dr. Schear asked, with regard to the weekly maintenance, whether we should have some sort of indemnity agreement so that property owners are held harmfess when staff enter their properties to perform the maintenance. Bob Hargreaves said that if the residents choose to give permission for people to come onto their property, those issues would be worked out in their contract. Ms. Scott said the algae seem to be proliferating every couple of weeks, so that quarterly inspections aren't enough given that mosquitoes breed every 10 days. Ms. Scott asked that we keep in mind that whatever is agreed to will amount to a compromise on the part of the Cahuilla Hills residents, because they don't want water in the creek. Mr. Pierattoni said that iYs a fact that there is water there now and it wasn't there before. He stated that his dog got sick drinking the water. Mr. Pierattoni passed a picture of his guest bedroom taken this week, stating that he has never had a mosquito, ever, since he lived there but on that day he counted 14 of them, and he doesn't know why. The photo seemed to depict flying insects on the walls of a room. He said we are creating problems for animals; and that he just doesn't want to have mosquitoes there because he's pretty sure that the cause of them is that water. He remembered when Phil Drell commented that plenty of millions of dollars have been spent on the golf course, so Mr. Pierattoni doesn't see why they don't do whatever is needed to mitigate the mosquitoes. Dr. Muth, who was looking at Mr. Pierattoni's photo, stated that those insects are not mosquitoes, they are flies, and passed the photo to Rod Chamberlain to verify this, Page 3 of 17 C:\Documents and Settings\pjoy\Loc. �ettings\Temporary Internet Files\OLKC\05-17-07 St� cagle Director's Hearing Minutes.doc which he did. Dr. Muth went on to say that in the creek there is a habitat set up under running water, which means there will be an increase in aquatic invertebrates, and from a stream health standpoint thaYs exactly what you want. Mr. Chamberlain said that CVMVD techs have done inspections and that he himself has personally walked the creek. He explained that mosquito breeding is a very dynamic situation; and this creek is not a breeding habitat. If the vegetation blocks the water flow, that will cause breeding but mosquitoes will not put their eggs in moving water, and they tend not to put their eggs into deep water. Small, static pools are where you find most mosquito breeding. He further stated that it is important to understand that the mosquito and vector control agency does not perform ongoing programs at will; they are more interested in source reduction so that if there's a creek that does breed, they will go in there and notify the property owner. It's the property owner's responsibility for anything that occurs on their property, according to the state health code; if they have a public safety issue on their property it needs to be corrected, and thaYs how the agency would approach future issues. Mark Greenwood asked whether Stone Eagle would be allowed to do mosquito control as long as they are already there doing inspections. Mr. Chamberlain answered that there's nothing in the code preventing it as long as they have the proper license and training and follow pesticide requirements. John Criste said that he has photos taken in 2002 that depict very healthy seeps in the mid-portion of the creek; there were tadpoles and invertebrates. John Criste asked Mr. Chamberlain whether a balanced creek ecology would contain mosquito eaters and Mr. Chamberlain said yes. John Criste then asked whether we are running the risk of upsetting the creek environment, questioned whether we really have a problem and suggested that the cure could be worse than the disease. John Criste asked Mr. Chamberlain whether any kind of chemicals introduced could affect birds and small mammals, noting that at least 3 species of tadpoles have been observed along with many invertebrates, which constitutes a self-maintaining system and Mr. Chamberlain said that yes, any time you use products you want to minimize unintended consequences. Some situations are too far along and the agency has to use products that basically wipe out everything. However, biological control is the best way to go. Mr. Lennon, commenting on what Ms. Scott had said, said Stone Eagle submitted a maintenance program to staff that they would inspect monthly. Tim Bartlett said he has a 10-page letter to submit to Mr. Hargreaves, discussing the facts or the evidence provided, and then he stated the facts and evidence in the letter: The first problem he has is that the consultants have been hired by the developer; that the City has not employed one of them to work on the City's behalf. He expressed concern that the consultants are biased because they represent the developer's best interest. Page 4 of 17 C:\Documents and Settings\pjoy\Loc. .ettings\Temporary Internet Files\OLKC\05-17-07 St� cagle Director's Hearing Minutes.doc Another problem he has is that about half of his property is now contaminated and causes his dog to become violently ill. He stated he can no longer take his dog into the canyon because she gets sick every single time, that normally she's a very healthy 12- year-old, that now he can no longer enjoy half of his property, and that for someone to suggest that dumping contaminated water on his property on a continuous basis is acceptable, is outrageous. He was told that the water was good; the developer handed him a water report and said it was good; however, the irrigation they use comes from a well abandoned by CVWD because of the nitrates, so they're "dumping shitty water on our property and propose to do inspection on it once a month." Mr. Bartlett stated that there's been language indicating that Stone Eagle has made the efforts to restrict the water flowing into the canyon, but that is untrue. There are pipes pointed toward the canyons; they're directly irrigating the canyon, so to say an attempt was made to avert it is far from the truth. Mr. Bartlett stated that while they say they have a sophisticated irrigation system; if turf is watered on short intervals it tends to be sucked up by the roots; however, what the developer did was to scrape up all the DG and loose rock, grind it up, and spread it over the course and that's what the turF sits on... iYs not loose soil, iYs granite. To say they were surprised this happened and not part of the plan is nonsense. In fact, Earth Systems told us at the first meeting that any hydrology as a result of irrigation runoff was specifically excluded. Mr. Bartlett suggested we look at the municipal code regarding management of runoff. Mr. Bartlett said that to say the algae and weeds are all great is also nonsense; the canyon should be dry, we live in a desert. Mr. Bartlett stated that there have also been implications that the water's coming from the 11 homes (30 people), but the amount of water 30 people use per day is nothing compared to 1-2 million gallons per day that goes onto the turf. Mr. Bartlett said that he's lost the use of his property, that he had every intention of developing it but now he doesn't even want to go there, and he's not the only one. Maybe iYs friendly for the tadpoles but iYs not healthy for his dog and maybe for humans. To allow the biology of a canyon to be changed from a dry canyon to a wet canyon and then to suggest that you come down once a quarter is unimaginable. Mr. Chamberlain agreed that they found two breeding sites for mosquitoes. Mr. Bartlett said there's a mile in length of algae from top to bottom, both creeks added up, from an aerial photo. He said he doesn't believe this is just the Cahuilla Hills residents' problem. He believes Stone Eagle's own residents will incur the wrath of disease-carrying mosquitoes; they are a viable health risk and you can die from one bite. He doesn't believe the EIR was done properly because it doesn't address this fact, it was clearly left out. Mr. Bartlett does not believe the developer thought the water would go anywhere else than downhill, that is complete nonsense. Page 5 of 17 C:\Documents and Settings\pjoy\Loc� .,ettingslTemporary Intemet Files\OLKC\05-17-07 Stc, cagle Director's Hearing Minutes.doc Another issue is that a half-million dollar bond is not excessive. The City forgave Stone Eagle a one million dollar drainage fee. Bob Hargreaves stated that was something that was agreed upon thaYs not part of this process. Dr. Muth stated, speaking for the biologists, that "We were not compensated, we volunteered our time to give our professional opinion to the developer and the City." Mr. Hargreaves asked whether the water has been tested and has nitrates, and Mark Greenwood said yes, but that thorough testing of the constituents has not been conducted but would be required by his (Mr. Greenwood's) recommendations. Ms. Scott asked whether there had been tests to verify septic runoff. Dr. Muth said there was water running across the road and down into the portion where they found mosquitoes, it was clearly coming from the community's side; also there was a strong smell of sewage, but he doesn't think he ever said that the water in the canyon was entirely coming from the community; clearly it was not. Ms. Scott said she has provided documentation to the City by way of Dick Kelly that the flow has been tested and it was clear of septic; also we had 13 significant precipitation events from 2000-2006; two of these were August 13 and 14 in Indio and Idyllwild; perhaps what you were seeing 12 days later, the dampness in the ravine, was due to those events. Dr. Muth said he will provide her and the City with records. Mr. Hargreaves asked whether by future testing would we be able to determine the origin of the water. Dr. Meints said that it's always been dry. A few months ago he went up Painted Canyon; one of the other property owners has 5 cisterns up there, and someone had pulled the caps off of them and they were running full-bore like a garden hose. One of them ran into John Dunlevy's seepage pit, filled up the tank and the effluent was running down the canyon. The cisterns were capped and all the water has stopped. Dr. Meints followed the flow and it did end up in Bruce Creek, so there's the answer to the mystery. Mr. Hargreaves asked whether anybody would know if by periodic water testing you can reasonably determine whether it's irrigation or septic. Mr. Lennon said iYs difficult because the percolation changes the water; however, you can compare it to the well water. Ms. Scott said if the leech pit works the septic doesn't come to the top of the ground so with the cisterns being unplugged for many months we did have water coming across Painted Canyon and now it's been dry for many months and that's the way it should be. Page 6 of 17 C:\Documents and Settings\pjoy\Loc,. �ettings\Temporary Internet Files\OLKC\05-17-07 St� cagle Director's Hearing Minutes.doc Dr. Schear said we are consistently not addressing the creek bed and that his big concern is that the creek bed is following the southern wall rather than the northern wall where the water is originating; there are 5 little springs coming out. Also we're all talking about septic but there are 11 home sites on approved septic up on Stone Eagle and there are several comfort stations on septic, where 100+ golfers a day use the facilities. So if we do the math, the septic from the Stone Eagle side has a significantly higher impact than Cahuilla would ever have. Mr. Greenwood asked what was the source of the water in the cisterns and Dr. Meints said it was precipitation and also one small spring. John Criste said there are natural sources of water that take years and years to move through the bedrock and break out from a cut; this is a natural condition. There is plenty of documentation that the Cahuilla Hills development has contributed to that flow and that the nitrates and algae growth showed up before Stone Eagle ever came in there. It is not an uncommon occurrence when a golf course is in the first stages of development for the ability of the earth to sponge up water and hold it to change, until the water management is fine-tuned. Mr. Criste said he will submit his photos which clearly show seepage coming out of the canyon walls and pools with life present prior to development of the golf course. Mr. Pierattoni disagreed with that assessment. He said he has been there 15 years, there's never been running water there, never, unless there was precipitation. IYs been changed since the golf course. Mark Fisher pointed out that on the USGS map the creek is blue, and that in the last 20 years we've had below-average rainfall—therefore, the creek wouldn't have water in the fast 20 years. He's not saying Stone Eagle isn't adding to it, they are; but it's not bad if they do the mitigation. Lynn Calardine said that the allegations that animals have been harmed is important and asked whether we can we verify that by testing the water. Dr. Schear said the nitrate levels are 400 times the normal baseline. Mr. Calardine said it would be good to get a formal test done by the City. Mr. Fisher said he wouldn't take his dog anywhere near there; because there are herbicide containers all over the place. Dr. Schear said Stone Eagle's herbicide-resistant grasses are now down on the bottom, and we would be wise to have an independent evaluation done and use that as a baseline. He wanted to be on record as saying it is what it is so how will we manage it and mitigate the effect of the water, create a defined streambed, have water running as much as possible to mitigate the mosquitoes... he feels the water enhances the beauty of the creek if managed properly. Ms. Scott said she asked the water district how she could do independent water testing and Babcock Labs was recommended. She said there is an enormous grading project going on up above and water has been dumped for grading and compaction and Page 7 of 17 C:\Documents and Settings\pjoy\Loc. �ettings\Temporary Internet Files\OLKC\05-17-07 St� cagle Director's Hearing Minutes.doc irrigation problems that the developer has corrected. So you won't see water coming across that street because it's being taken care of. Mr. Chamberlain said another concern is that the open stream rock system has a tendency to grow black flies, which are nasty biting bugs, and that he did observe small numbers of black fly larvae there. Mr. Chamberlain advised that if the flow is increased, it should be kept narrowly channeled. Black flies aren't vectors but they are multiple biters. Mr. Lennon said the $1 M drainage fee forgiveness was because Stone Eagle does not drain through the City of Palm Desert. Stone Eagle spent all their money to put their drainage directly into the channel. The main bathroom on top of the hill is on a sewer line; the golfers rarely use the other two bathrooms out on the course. They know that some water comes from Cahuilla Hills; Stone Eagle accepts it, they're willing to go in and do the items that have been projected here; they know that people will put in septic and landscaping and these things add to the water there but they're willing to do this program with monthly checks and a pump check every day. Mr. Pierattoni asked whether it would be easier to add some water to keep it flowing, and asked who's going to be the police officer to monitor it. Mr. Hargreaves said that the idea of intentionally adding some water to the creek and running it for some distance would mean studies forever. Mr. Criste asked if we have from the recommendations the means to at least start to address the concerns. He said that with an adaptive management protocol everyone will learn as we go along but it seems wise to at least get a start on it, and the developer seems willing to cooperate. Everybody who contributes to flows in that canyon has a responsibility as well; these recommendations would be a good start, with the City providing oversight. Mr. Hargreaves stated that whatever comes out of this process is not set in stone; there will be feedback, and natural systems can't be controlled so well. Mr. Criste suggested that we adapt the management practices as certain failures occur or measures are identified. Dr. Muth said that unless you flush that canyon wall-to-wall, tamarisk and other exotics will appear in there and will have to be removed. Mr. Greenwood commented that Dr. Schear's suggestion about containing the water to, say, a 6-inch trough would keep it flowing so that it wouldn't pond and allow mosquitoes, which would mitigate some impacts. Page 8 of 17 C:\Documents and Settings\pjoy\Loc. �ettings\Temporary Internet Files\OLKC\05-17-07 St� cagle Director's Hearing Minutes.doc Mr. Criste said that would require a permit and commented that some owners have already done that and some also have done filling that requires a permit, which will have adverse consequences on other things because this is basically bedrock. Dr. Schear said there's one specific and well defined area of 150 feet where the creek bed runs swiftly along the southern edge of the bottom of Bruce Creek and adjacent to it are four or five springs that come up from the Stone Eagle wall that weren't there before. That is the highest potential for breeding grounds, and it should be gently but firmly redirected to where the creek wants to flow. Mr. Calardine said this would require a permit, and that Fish and Game would support it. Ms. Carver said that whatever's in the water ruins the look of the creek. It coated every single wall with this thick stuff that's unsightly and it was a tragedy because they had an extremely beautiful creek. Mr. Bartlett said that in 2005 the developer assured City Council that they would solve the water issue. Mr. Carver said it should be considered as part of this discussion that the developer assured the residents that they would solve the problem; iYs important to remember. Mr. Hargreaves said that in exploring Dr. Schear's suggestion that we compact the channel there at that segment, how would we do that and did the biologists have any concerns? Mr. Fisher said he didn't have any but doesn't know if Kim Nichol of Fish and Game can do that. Dr. Muth said that the issue for Fish and Game is whether or not the disturbance rises to the level of significance, and he recommends asking Ms. Nichol for an off-the-record opinion. Mr. Criste said that perhaps it could be added to the recommendations that we maintain an ongoing consultation with somebody like Fish and Game. Mr. Greenwood asked Mr. Bartlett if channeling the water would resolve his concerns. Mr. Bartlett responded that he had made the suggestion himself three years ago. He further stated that what is needed is to remove the contact of the water from the soil. He said the creek the developer built on-site seems to be working magnificently; that is proof that they know how to do it. Mr. Hargreaves commented that all the issues won't be settled in this one meeting. Mr. Greenwood said the City will hire a water quality lab to do testing for a broad spectrum of constituents. Page 9 of 17 C:\Documents and Settings\pjoy\Loc,. �ettings\Temporary Internet Files\OLKC\05-17-07 St� �agle Director's Hearing Minutes.doc Bob Hargreaves said the City will follow up on the channelization issue. Dr. Muth suggested that for the water quality issue we also take the results to a veterinary toxicologist to ask what the result would be of a dog drinking this water on a short-term basis so that we can get that issue resolved as a fact instead of an anecdote. Mr. Hargreaves said the proposal is to do the "after" quality toxicology test and to look into the channelization issue, and we should move on to other issues. Mr. Greenwood stated that we would sample water from a number of sources. Nancy Scott, speaking to John Criste, said that the EIR report which John signed states there is no water in Bruce Creek. Mr. Greenwood commented that he had neglected to mention Ramon Creek in his staff report. Ms. Carver said that Stone Eagle has managed to stop the flow onto her property and that they are grateful for that. Mr. Greenwood read the description of Ramon Creek and displayed photos of the creek taken earlier this week. Mr. Greenwood said he believed all the water to now be contained on Stone Eagle property; however, the retention areas aren't being maintained as well as he'd like. Also, the pipe keeps breaking on the pump. Stone Eagle had said the pipes would be steel but they're not; and Mr. Greenwood intends to require these pipes be steel and that these basins maintained. Mr. Greenwood classified Ramon Creek as "a near success." Ms. Carver said she has no further issues with regard to the water. Mr. Chamberlain said the mosquito and vector control agency will inspect the facility, as they are interested in source reduction, and will continue to inspect and treat it to minimize the risk to public safety. The group took at ten-minute break and reconvened at 3:45. 2. Golf Course Perimeter Fencing and Road Mr. Greenwood displayed a photo of a representative length of the fence/road, and stated that Stone Eagle has a perimeter fence around the project and a dirt road that parallels that fence on the inside. The issue is that the EIR stated the fence would be of a wrought-iron type of material; but when the material was chosen, the Bighorn Institute was consulted and they requested chain link and the City's previous Planning Director agreed. The chain link was installed and appears to get damaged and need a lot of repair, but with the possibility of bighorn sheep being caught in other types of fencing Page 10 of 17 C:\Documents and Settings\pjoy\Loc,. ,ettings\Temporary Internet Files\OLKC\05-17-07 St� cagle Director's Hearing Minutes.doc materials, this fence still needs to be chain link. Mr. Greenwood read staff's recommendation as contained in the staff report, and stated emphatically that the City does not and will not okay a dirt road because iYs a PM-10 violation. Mr. Lennon asked why they couldn't do soil stabilization on the natural soil, as the City has used on its projects. Mr. Greenwood replied that the City has used that stabilizer with disappointing results; it was an experiment and the City no longer accepts its use. Mr. Lennon asked why the road couldn't be asphalt like Cahuilla Hills. Mr. Greenwood answered that there may be solutions that can be agreed upon; however, dirt can't be driven on so it is inappropriate for a vehicle road. Mr. Lennon stated that his preference would be asphalt due to the undulations on the ground in question (concrete would crack). Ms. Scott said that golf cart paths are adequate for emergency and maintenance access, and that this road wasn't shown on the plans. She asked whether homes are planned for the back, which she suspects is why Stone Eagle built the road. Bob Hargreaves stated that there are going to be no homes back there. Ms. Scott said that the huge perimeter road is now a scar and that she watches people racing their golf carts on it every day. She stated that it shouldn't require a whole road to maintain the chain link fence, and besides it's ugly. She said that Cahuilla is in the county and they don't have the same dirt road issue that the City does. Bob Hargreaves said that the roads at Cahuilla aren't an issue here. Mr. Calardine commented that the maintenance of the sheep fence is critically important. Tim said that every city he knows of uses welded wire sheep fence, so he finds this interesting, and said he's always been told that the City of Palm Desert doesn't allow chain link. Tim questioned why Stone Eagle would develop this road so well and added that they've improved it since they built it. In addition, he said Stone Eagle says they need it for emergency vehicles or to fix the fence but that is not true; fence guys don't need roads. And if it is so crucial why wasn't it on the plan or mentioned in the EIR? There was no permit, no discussion, no plan, and from the approval standpoint it doesn't exist, yet now fhey say iYs necessary. Mr. Hargreaves asked Mark Greenwood if he understands the necessity for the road. Page 11 of 17 C:\Documents and Settings\pjoy\Loc.. �ettings\Temporary Internet Files\OLKC\05-17-07 St� cagle Director's Hearing Minutes.doc Mark Greenwood said he does to some degree and that he included the requirement to provide plans for it in order to memorialize why it's there and what it's made of. Mr. Hargreaves summed up that the understanding is that Stone Eagle will show the necessity of the road and there will be an agreed-upon dust-free surface to the road, and those portions that are agreed to be necessary would remain and the rest of it would be naturalized (defined as returned to its natural state—not as a road but as a natural hillside). Mr. Lennon said they would submit a plan and review it with the City. Mr. Hargreaves asked Mr. Lennon how long that will take, and Mr. Lennon responded a week or ten days. 3. Access to Adjacent Properties Mr. Greenwood stated that there's a dispute about access to various properties and various easements that have existed back to when these lots were developed, and the patent easements don't conform to the terrain so that as access was developed they didn't honor those easements. Some property owners believe that the approval of Stone Eagle's tract map may have severed their access rights; however the map did not identify any patent or specific easements, so it did not affect access rights. On the other hand, construction issues may have. Mr. Hargreaves said that the recording of a map cannot take away private rights that may exist on that property. Dr. Schear spoke, saying that in 1982, in conjunction with Mr. Richardi and the City of Palm Desert, an easement agreement was drafted, ratified, voted, and recorded with metes and bounds and description, which takes their easement down into Stone Eagle; that easement has now been completely blocked by the construction and it, in fact, goes right through the clubhouse and through a future planned clubhouse. The City did approve Stone Eagle's plan and Stone Eagle's position has been that they do not recognize the property owners' access rights and have blocked their properties. Some owners do not have access rights and clearly when an original easement is taken away, a reasonable alternative route needs to be provided. Mr. Hargreaves asked Dr. Schear whether this issue were subject to litigation and Dr. Schear answered "Not at this point. We've been trying diligently over the past year and a half to provide a reasonable solution. Litigation will take us 3 years; we are actively working on it." Mr. Hargreaves said that this dispute goes way back and has many ramifications and iYs not something we can resolve here. Dr. Schear said he wanted to go on record that the City has nothing to do with it. He said he will look at the data and continue to work behind the scenes. Page 12 of 17 C:\Documents and Settings\pjoy\Loc. �ettings\Temporary Internet Files\OLKC\05-17-07 St� cagle Director's Hearing Minutes.doc Dr. Meints said that if this is leading to final approval of the golf course, it somehow has to be resolved before final approval can be facilitated, thaYs a big issue. This is a long- term process. Dr. Meints said he joined Richardi and his group in 1991 and agreed to maintain the roadway known as Richardi Road and they had access through jeep trails to their properties; when that fence went up the road Dr. Meints had taken for over 15 years on his property, that fence cut right across the roadway and Phil Drell said to take the jeep trail on the other side of the fence and improve it and use that. Dr. Meints said they went to the county transportation department and were told that the residents have the right to improve it. This has been a prescriptive easement for many years. Dr. Meints has been working with Mr. Lennon's office and would like to work this out in an amicable fashion. Dr. Schear has significant concern as to the EIR conditions of approval. Stone Eagle was conditioned to put in a City trail, Hopalong Cassidy Trail. By EIR approval, that trail is to be entirely on Stone Eagle's property; however, on a number of spots it comes onto Peter's property. There's a public safety issue, as the trail is being used by mountain bikers who go up the trail and when they come back down they see a paved road so they drop from the trail onto Dr. Schear's property and the joint easement. The bikers come hauling down the hill while Dr. Shear and his visitors are driving up the hill. He does not wish to have that liability and wants the trail moved to where it belongs to keep people off his property. Mr. Greenwood said the surveyor said the trail is on Stone Eagle property except for one particular point. Dr. Schear said it's clearly on his property and that Mark was talking to staff that didn't know. Mr. Greenwood said that Stone Eagle did set their fence off their property line and that relocation of the trail is a City issue since it was done by a City contractor. Mr. Lennon said there ought to be a black diamond sign on that trail, like they have on ski slopes, and said that signage is going to be needed to keep people off private property. Ms. Carver said the Carvers have the same condition and that they did have a near- tragedy on that road. Ms. Scott said they, too, have problems with people trespassing looking for a route to the trail because the City brochure says there's access. It is a safety issue and some people are quite rude when told they are trespassing. Bob Hargreaves said the City has some issues to work out with respect to the trail and we need to work on the location, hikers and bikers. Page 13 of 17 C:\Documents and Settings\pjoy\Loc,_ ,ettings\Temporary Internet Files\OLKC\05-17-07 St� cagle Director's Hearing Minutes.doc Dr. Schear said he doesn't have a problem with the trail on his property but he has a problem with the safety issue. Mr. Greenwood asked what the solution to this could be. Bob Hargreaves said these aren't Stone Eagle issues, and with respect to the easement issue Mr. Hargreaves suggested we resolve that in a different process. Dr. Schear stated his point was that the City was actively involved in establishment of, and then alteration of, the easements. Mr. Hargreaves said if the easement was established the City could not unilaterally take it away from him. 4. Maintenance of the Debris Basin Mr. Greenwood gave a description of the problem. At the time of the complaint the basin was swampy and full of insects, which is not good. The EIR does say the basin is to have an outlet to allow small storms, sediment and such to pass through to maintain the health of the creek further downstream. There is a concern that this is solid bedrock so the process of installing a drain will cause more harm than good, and Stone Eagle saw that and didn't install the drain at that time. However, in response to complaints they have installed a gas-powered pump to drain it and iYs been successful and the City thinks that's an appropriate solution. Ms. Scott said the pump ran 24/7, and it was maddening to hear the drone in the ravine. The hours of operation got so bad she had to call Code Compliance and the developer after hours. Having this in an echoing ravine is unacceptable; there needs to be a provision that it stops at a reasonable time without Ms. Scott having to call, and it should be silent. Mr. Lennon said Stone Eagle can do that. Bob Hargreaves said to make sure it complies with the noise ordinance. 5. Temporary Equipment Pad Mr. Greenwood read the description from the staff report and said that at one time they were storing all sorts of stuff on the pad. Stone Eag(e has complied to what the residents wanted; so staff believes this issue to be resolved. Mr. Bartlett asked whether they will introduce a tree farm as well as a sod farm, and Mr. Lennon said they would plant just palos verdes. 6. Golf Course Turf Acreage Mr. Greenwood stated that aerial mapping shows that the development is well within its allowed amount of turf. There was no further discussion. 7. Water Source for Golf Course Irrigation Page 14 of 17 C:\Documents and Settings\pjoy\Loc.. .,ettings\Temporary Internet Files\OLKC\05-17-07 St� cagle Director's Hearing Minutes.doc Ms. Scott indicated that she does not want to take this issue "off the table." Mr. Lennon explained that the water used is just for the greens, which represents perhaps 5%, or 3 acres, of grass. No other parties expressed concern regarding this issue, nor the staff recommendation that it be considered closed, since using potable water for irrigation would be wasteful. 8. Snack Bar Ms. Carver stated she was concerned about the light because it was monstrous, but that it was put on a timer to keep it off at night and as long as they continue to do that, she is happy. Mr. Bartlett stated that it's not an aerie as the plans said; it's enclosed and conditioned, with a kitchen, bar, etc. Bob Hargreaves asked what the impact issues were. Mr. Bartlett answered the septic system was an impact issue. Mr. Lennon stated that the snack bar is on a sewer system as is the bathroom next to it. 9. Maintenance Building Mark Greenwood read the residents' complaint that the building is made of inetal with little architectural feature. Mr. Greenwood stated that it was approved by the former Planning Director. There is also a lighting issue because the lights are left on at night and the light escapes through the skylights. Residents have worked with Stone Eagle to arrive at a system for mitigating that issue. Ms. Carver said Stone Eagle has been keeping the lights out, so she's happy, but that it's too bad the City approved the metal. She also said she does not have a phone number to call if lights are left on. 10. Comfort Station Septic Systems Mr. Greenwood said that the stations were inspected by the City and the County Health Department and approved by both. Tim said it's still a direct violation of the EIR which says they will be self-contained. John Criste stated that the purpose of the EIR is not to preclude the Health Department from finding a good way to deal with things. The issue is whether or not there is an adverse significant effect. The Health Department says there isn't, so there's no violation. Ms. Scott said there is more reason to have regular water testing as more and more people use the comfort stations. Page 15 of 17 C:\Documents and Settings\pjoy\Loc.. ,ettings\Temporary Internet Files\OLKC\05-17-07 St� cagle Director's Hearing • Minutes.doc Both Mr. Bartlett and Ms. Scott complained about the materials and architectural design of the comfort station. Ms. Scott said, "I see a square box on the hill." Mr. Lennon said that 10-15 palos verdes will be planted by end of the summer so that she won't see it anymore. Bob Hargreaves indicated that if the palos verdes don't resolve the problem we would consider other measures. 11. Residential Pads Mr. Bartlett stated there is a violation of the City of Palm Desert hillside ordinance. Mark Greenwood agreed that the EIR does say that. However, the City authorized this pad configuration because it minimized the footprint of the overall development; otherwise, the homes would've had to have been spread out. This way the net impact, environmentally, is reduced. Mr. Hargreaves asked whether development and landscape will mitigate the stairstepping effect and Mr. Cechin said no. Mr. Greenwood added that very few people are actually able to see the homes in question. Mr. Bartlett said he can see them from his property but that iYs not an important issue for him. Ms. Scott said that when Stone Eagle did their beautiful Powerpoint presentation years ago, it didn't look like this. Mr. Lennon asked her whether she has seen the homes in their finished state and Ms. Scott said she has not. Mr. Hargreaves said that his sense is that there's nothing we can do about this at this time. 12. Archeological Sites Mr. Greenwood said that staff has tried to verify the claim that three archeological sites were destroyed, but there is no evidence of it and no independent evidence has come forward, so he believes this to be resolved. ACTION ITEMS Mr. Hargreaves asked if there were any issues that hadn't been addressed. There were no responses. He summarized the follow-up items: (i) The City will take responsibility for getting water testing and a toxicology report (John Criste will get a recommendation from his vet). Dr. Muth asked whether the homeowners would want to get their own so that there's no bias. Recommendations for test labs and/or veterinarians will be submitted to Ms. Aylaian and Mr. Greenwood. Ms.Aylaian will contact Ms. Scott to find out where the residents want testing. Page 16 of 17 C:\Documents and Settings\pjoy\Loc4 �ettings\Temporary Internet Files\OLKC\05-17-07 Stc �agle Director's Hearing • Minutes.doc (ii) Mr. Hargreaves said we need to look at the stream channelization issue from a feasibility standpoint. Mr. Criste will be in the group and will contact Kim Nichol from Fish and Game. Mr. Lennon and Dr. Schear will review possible ideas, and Mr. Bartlett will participate as well. Ms. Scott wants representatives for the City on all of these issues, and thinks the City should have first oversight. (iii) Mr. Lennon will come up with a road mitigation plan for review by the City. (iv) Mr. Lennon will continue to work on the property access issue with the neighbors; the City also has some issues to address. (v) Mr. Lennon will provide Ms. Scott with a copy of the recorded conservation easement that restricts use of the land so that additional homes cannot be constructed. Mr. Hargreaves clarified that additional homes would also require a change of zone and a general plan amendment, which require public hearings and notification of neighbors. Mr. Hargreaves asked whether we can accomplish these things in two weeks and Mr. Greenwood said not the water testing. The City will expedite and monitor these follow-up steps and when it is determined how long it will take, another meeting will be scheduled. Ms. Scott said it is really important that whatever we come up with be specific, with time frames, penalties, a bond. She does not want to have to police the situation any more, she's done it for 2 years and it's time to get back to her life. Mr. Hargreaves said that the issues will all be wrapped up with agreements, security, enforcement, and an adaptive management component. Bill Carver thanked the City for holding this hearing. Meeting adjourned 5:00 PM Minutes recorded and transcribed by Debra Lee. Page 17 of 17 i�. � �t�w�>;� r,�l ,�.. �y 'y�yr�' c`v� ¢�S ��, �.r ��. 'Se.� ; e.�� ,. . . t 5;'' .. �k4 yri !'��M� 7�'f�}� �-t�'� ( �,r`�`}'M � 'f' .�"qfr � r �S��� �y i j���� .rF ?+s, �.�!� 3 �" ,,�t: '� �'�S�i��N?.� C ,� ��.� ,�,c ,4`�-*�;. * �.��, �,�1 �, y,�•�. ,a n ,�.�`- : �� �f�,�, ,q. �� �°�` � y " � 1. ?�.'� �,�''� � �. °�*�e a i���t��`�`�S �x' t� t k �' �., �, = ' w� �� � �.�;� + '�' ' �'' ,�„ � �s ,� f �+ � ���� �� 4r �� . . �`�>r`�'"Y� p. `�:y.:i i�: ''r f �� �^�� >� t. 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"�°`�2 �9.s��°i^�+�"� ' '� �,'�t',`��;r4��e�, �x�`��`���°�. �� � ;#; � �� • ''�. q°�' � � � �4�'�, ty�,��, x 'v.3+ k'1 µ o :.�¢� ��1�.. „1 p ....��- �i �I�t��,"' . d.Y,- : . .,�+.'' , . ��r�.µ_. , �' $A �-. � �$ � a�'4 .� ; '� �� r f � ;. � . °' , � � �tk�i �� �� � �� . � �� � ��T� �� � :�' @ 9 �r�O� °i� W i. � a . � p;� ��'� �r �".y� �; s �''�.. '�',�r; �.z',� ��;� - �� �.°��" `� f. -j ,=^3 .:�,fks'.�n _ . . .. . .. - TRB September 7, 2007 � c� Honorable Mayor & Distinguished Members of the City Council `� v -+ City of Palm Desert r-; r��� 73-510 Fred Waring Drive �° �r;..-,.`; Palm Desert, CA 92260-2578 —� ^'=�►�-� �,;..._ � ���,;"'`., Re: Stone Eagle's Disturbing Environmental Impact on Palm Desert � -+o�' .. ,-�T, Dear Council Members: v ''� Stone Eagle's developers are requesting yet another concession from you for increased fractional ownership. While I do not have a major problem essentially turning the development into a hotel for a few more super wealthy folk, I do vehemently object to granting another concession before they satisfy the original conditions of approval. As you know, Stone Eagle's golf course irrigation has turned downstream portions of two normally dry desert canyons, Bruce & Ramon, into wetlands complete with harmful algae, non-native vegetation and of most concern, ideal disease carrying mosquito breeding habitat. The stagnate and low flow algae covered surface water in both canyons combined, e�ctends over a mile in length and provides ideal habitat for breeding mosquito's. Vector Control has identified several mosquito sites and confirmed their presence in both canyons. The high nitrate, human waste contaminated water, Stone Eagle uses for irrigation, nearly insures that some mosquitoes will carry E. coli bacteria and the West Nile Virus. As you may know, these conditions can be life threatening, especially to very young and mature individuals, with just one bite from a contaminated mosquito. Mosquito's typically fly in a three mile radius from their birth site, with a potential range of fifteen miles, so no one in Palm Desert is safe. I would not be surprised to learn that some of you, living in the vicinity of Stone Eagle, have experienced increased mosquito encounters. I have been a resident of Palm Desert for the past nineteen years and during most of that time I have worked, saved and planned for retirement and building my dream home in Cahuilla Hills. Unfortunately, I have been unable to enjoy my property for the past three and half years. Every time I visit the property, with my fourteen year old companion, my dog Cahuilla, she becomes violently ill. The only other dog that I am aware of who has been in the canyon has experienced the same reaction, in fact spent a weekend at the veterinarian hospital. In addition, we have found two dead coyotes, which I have been told is a very unusual occurrence, and based on their droppings, the remaining population appears to be suffering from a digestion related disorder. This is not a good indication of a healthy environment. As so eloquently stated by our City Manager in this years calendar: "The importance of the outdoors in our daily lives is part of the attraction of living in Palm Desert...The beautiful weather and breathtaking scenery beckons you to be outside...Palm Desert befieves in the value of these open Email: bartlettc@aol.com 73-382 Salt Cedar Street Palm Desert, CA 92260 Phone: 760.773.3035 Cell: 760.534.7007 TRB spaces and they are a source of civic pride for those who appreciate and use them." This problem is not just my problem but affects us all. You were aware of this condition when Stone Eagle gained approval of their residential tract map, the subject of your next meeting. In fact, at the City Counci! Meeting of September 22, 2005, see pages 17 through 19, you prudently addressed the problem and diligently gained the developers assurance that the problem would be solved. The developer did make an attempt to recapture the water flowing down each canyon by constructing catch basins. Unfortunately this attempt was unsuccessful and the developers proposed solution is to clean out the non-native vegetation on a quarterly basis. Excuse me, but offering to clean up the weeds once every four months, after creating a continuous stream of human waste contaminated water across my property, is preposterous. I am aware that you have a long favorable history with the developer. One of you shared the rather humorous story of his footprints in the wet concrete during an evening inspection of the work at Shadow Mountain Country Club in the eighties. I also have known the developer for quite some time and I am aware of his environmental sensitivity. Unfortunately, I believe his attention is directed to his new venture in La Quinta. I also believe he is accustomed to receiving your support. In fact, when staff attempted to insure compliance, upper management removed the incentive, but that was pail in comparison to other concessions granted in his favor. He was allowed to commence grading five months before he was granted a grading permit and received certificates of occupancy without gaining a "final" grading permit still unresolved. He was allowed to turn an approved open air pavilion into a fully conditioned and equipped "bar and grille", and in addition, construct finro more open air pavilions, currently not shown on any plans. He was allowed to use an open septic system when a closed system was conditioned. He was allowed to use 100% contaminated water for irrigation when a substantial dilution of potable water was conditioned. He was allowed to use chain link fencing, prohibited in Palm Desert, when wrought iron was conditioned. He was allowed to develop hundreds of acres without a landscape plan, still none exist for the golf course. He was allowed to terrace or staircase the residential site where terracing is prohibited. He was granted fractional ownership in a development agreement, when the zoning prohibits it. He was allowed to construct improvements on ridge lines, when none is permitted and metal buildings in a zone where they are prohibited, just to name a few. You may also recall that at an earlier council meeting you forgave a $1,000,000 drainage fee because you were led to believe that they would be making $1,300,000 worth of improvements to Bruce and Ramon Creeks to control drainage. In fact, the funds were used to construct scenic water features for the aesthetic benefit of future residents of Stone Eagle. Furthermore in the actual drainage fee waiver request they declared, "The Stone Eagle development wili not dump or direct any flow which may occur on any of the city's property, nor on any other property adjacent to the Stone Eagle site. Also we will not be increasing or contributing to the flow to the CVWD White Water Channel." If the effluent is not entering the Palm Valley Storm Channel leading to the Email: bartlettc@aol.com 73-382 Salt Cedar Street Palm Desert, CA 92260 Phone: 760,773.3035 Cell: 760.534.7007 TRB "White Water Channel" as staff and the developer claim, then it is contaminating our drinking water! This is a serious matter that requires your attention. I have failed to negotiate an acceptable solution with the developer since my initial contact in May of 2004. Until now, I have not considered utilizing either the power of the media nor the residents of Palm Desert, trusting in staff's ability to prevail. Unfortunately, staff has also failed in reaching an acceptable solution as we approach the forth season. They are currently waiting for water testing results, however, it is not the quality of the water that concerns me most, we already know it is contaminated, it is the mere presence of the water. We need your help. Please use your influence to motivate the developer to "do the right thing," allowing him to preserve his reputation as an environmentally sensitive developer, and resolving this potentially life threatening problem in the interest of public health, and for the safety and welfare of all Palm Desert residents. Sincerely, Timothy R. Bartlett, Palm Desert Resident Email: bartlettc@aol.com 73-382 Salt Cedar Street Palm Desert, CA 92260 Phone: 760.773.3035 Cell: 760.534.7007