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HomeMy WebLinkAboutPrelim - CC - 01/22/09 IDR�►FT PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING THURSDAY, JANUARY 22, 2009 CIVIC CENTER COUNCIL CHAMBER 73510 FRED WARING DRIVE, PALM DESERT, CA 92260 I. CALL TO ORDER - 3:00 P.M. Mayor Spiegel convened the meeting at 3:00 p.m. I1. ROLL CALL Present: Councilmember Jean M. Benson Councilman Jim Ferguson Mayor Pro Tem Cindy Finerty Councilman Richard S. Kelly Mayor Robert A. Spiegel Also Present: Justin McCarthy, Interim City Manager/RDA Executive Director David J. Erwin, City Attorney Sheila R. Gilligan, ACM for Community Services Homer Croy, ACM for Development Services Stephen Y. Aryan, Assistant to the City Manager Rachelle D. Klassen, City Clerk Bo Chen, City Engineer Russell Grance, Director of Building & Safety Lauri Aylaian, Director of Community Development Patrick Conlon, Director of the Office of Energy Management Paul S. Gibson, Director of Finance/City Treasurer Janet M. Moore, Director of Housing Mark Greenwood, Director of Public Works David Yrigoyen, Director of Redevelopment & Housing Frankie Riddle, Director of Special Programs Steve Brooker, Battalion Chief, Palm Desert Fire/Riverside Co. Fire Dept./Cal Fire Andrew Shouse, Asst. Chief, Palm Desert Police/Riverside Co. Sheriff's Dept. Grace L. Mendoza, Deputy City Clerk III. ORAL COMMUNICATIONS - A (CLOSED SESSION ITEMS) None D�AFT PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 22, 2009 IV. ADJOURN TO CLOSED SESSION Request for Closed Session: Conference with Real Property Negotiator pursuant to Government Code Section 54956.8: 1) Property: Lease Property - Parkview Professional Office Complex - 73710 Fred Waring Drive, Suite No. 116, Palm Desert Negotiating Parties: Agency: Justin McCarthy/Paul S. Gibson/City of Palm Desert Property Owner: City of Palm Desert Other Parties: State of California, Assembly Committee on Rules Under Negotiation: x Price x Terms of Payment Conference with Legal Counsel regarding existing litigation pursuant to Government Code Section 54956.9(a): • a) Indian Springs, LTD., v. City of Palm Desert, et al., Riverside County Superior Court, Case No. INC053903 Conference with Legal Counsel regarding significant exposure to litigation pursuant to Government Code Section 54956.9(b): Number of potential cases: 2 Public Employment pursuant to Government Code Section 54957: Title of Position: City Manager On a motion by Ferguson, second by Benson, and unanimous vote of the City Council, Mayor Spiegel adjourned the meeting to Closed Session at 3:01 p.m. He reconvened the meeting at 4:00 p.m. V. RECONVENE REGULAR MEETING - 4:00 P.M. A. REPORT ON ACTION FROM CLOSED SESSION. Mr. Erwin reported that on a 5-0 vote of the City Council, a new agreement was approved with City Manager John M. Wohlmuth effective February 1, 2009. VI. PLEDGE OF ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA- Mayor Robert A. Spiegel VII. INVOCATION - Mayor Pro Tem Cindy Finerty 2 � ��� PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 22, 2009 VIII. ORAL COMMUNICATIONS - B PRINCIPAL ALLAN LEHMANN and WASHINGTON CHARTER ELEMENTARY SCHOOL (WCS) 5T" GRADE AMBASSADORS (Carson Ventura, Abigail Sanford, Mollie Biskar, and Elise Stein) addressed the City Council in appreciation for its generous donation in support of the WCS salad bar program, "Wild & Crazy Salad Days." The program had been in planning for over a year with administration, parents, teachers, and students working closely together, resulting in a very successful opening of the salad bar on October 2, and it is now offered at WCS every other Thursday. Some of the food was purchased from a local organic citrus farmer, and leftovers are either donated to Martha's Kitchen or composted for the School's own garden. It was hoped that when this pilot salad bar program is evaluated, its benefits will be evident, leading to expansion for 2009-2010. Mayor Spiegel congratulated the students for their success and for their presentation to City Council today. MR. JIM THOMPSON, La Quinta, CA, addressed the City Council regarding Tract No. 32498 (Shepherd Lane/Frank Sinatra Drive). He went on to report that following the agreement reached at the October 23, 2008, City Council Meeting, they had gone in and cut the weeds on the entire property, including right-of-way, and repaired the fence along Portola Avenue; equipment was moved in, and they were ready to pave on January 14-16. However, they got into a problem with their financial institution over the increased amount of a set-aside letter. He'd been in close communication with the City's Engineering Department and thought the issue could be resolved easily but was then was advised it would need City Council consideration. He explained that his organization had an original set-aside agreement forthe subdivision improvements of$495,000, and when the agreement was reached on October 23, City Council raised the issue that the cost of the improvements would likely accelerate overthe two-year extension of the subdivision agreement; and everyone agreed that a 7% increase would be satisfactory. But it was very difficult for his bank to make the adjustment; they were working on it, but it was going slowly. He advised that he had bids for completion of the entire subdivision of$420,000 and $462,000; the original bonded amount was$495,000, and it would have increased to $530,000. Because of what he felt the work would cost today, with not much of an increase in light of the economy, it could be corrected. Without having to re-agendize the matter, he was hoping for some advice—his organization was ready to start construction that could probably be done prior to the next City Council Meeting. If possible, he would appreciate the City Manager or City Attorney being able to amend the agreement back to the original $495,000 set-aside already in place. Mayor Spiegel thanked Mr.Thompson for coming forward but advised that because it was not on today's agenda, the City Council could not take action. He asked the City Manager to contact him to see what could be done. 3 I rs 4 i �����1. .s'� PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 22, 2009 IX. AWARDS, PRESENTATIONS, AND APPOINTMENTS None X. CONSENT CALENDAR A. MINUTES of the Regular City Council Meeting of January 8, 2009. Rec: Approve as presented. B. CLAIMS AND DEMANDS AGAINST THE CITY TREASURY - Warrant Nos. 139, 143, 144, 148, and 149. Rec: Approve as presented. C. COMPLIANCE ANALYSIS AND INVESTMENT REPORT for the Month of November 2008 (Joint Consideration with the Palm Desert Redevelopment Agency). Rec: Receive and file. D. APPLICATION FOR ALCOHOLIC BEVERAGE LICENSE by Pat& Oscar's Restaurant, 72-840 Highway 111, Suite W465, Palm Desert. Rec: Receive and file. E. CITY COMMITTEE AND COMMISSION MEETING MINUTES. 1. Cultural Resources Preservation Committee Meeting of November 25, 2008. 2. Youth Committee Meeting of December 1, 2008. Rec: Receive and file. F. LETTER OF RESIGNATION from Melissa Allensworth — Marketing Committee. Rec: Receive with very sincere regret. G. REPORT Pursuant to Section 33080.1 of the California Health & Safety Code (Joint Consideration with the Palm Desert Redevelopment Agency). Rec: By Minute Motion, receive and file. 4 � � PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 22, 2009 H. REQUEST FOR AUTHORIZATION to Distribute a Request For Proposals (RFP) for Professional Marketing Services for the City of Palm Desert (Contract No. C28480). Rec: By Minute Motion, authorize distribution of a Request For Proposals (RFP)for Professional Marketing Services forthe City of Palm Desert. I. REQUEST FOR AUTHORIZATION to Purchase of the Publication "Images of America - Palm Desert" and Profit-sharing of the Proceeds with The Historical Society of Palm Desert. Rec: By Minute Motion, authorize purchase of the publication "Images of America - Palm Desert" and profit-sharing of the proceeds with The Historical Society of Palm Desert — funds are available in Account No. 110-4419-453-8012. J. REQUEST FOR APPROVAL of 30-day Extension to the City's Solid Waste Franchise Agreement with Burrtec Waste and Recycling (Contract No. C17230A). Rec: By Minute Motion, approve a 30-day extension to the subject Solid Waste Franchise Agreement with Burrtec Waste and Recycling. K. REQUEST FOR ACCEPTANCE OF WORK for Contract No. C28020 — San Pascual Channel Low-Flow Channelization Improvements Project (Project No. 518-08) (Dateland Construction Company, Indio, CA). Rec: By Minute Motion, accept the work as complete and authorize the City Clerk to file a Notice of Completion for the subject project. L. REQUEST FORAUTHORIZATION to Release PerFormance Securityfor The Living Desert Administration Building - Case No. CUP 04-12 (The Living Desert, Applicant). Rec: By Minute Motion,authorize the City Clerk to release the Performance Security in the amount of$7,388 for Case No. CUP 04-12. M. REQUEST FOR WAIVER OF FEES Associated with The Historical Society of Palm Desert's 9th Annual Ed Mullins Picnic In The Park. Rec: By Minute Motion, waive fees associated with The Historical Society of Palm Desert's 9`h Annual Ed Mullins Picnic In The Park scheduled to be held on Sunday, March 29, 2009, at Pavilion No. 1 in the Palm Desert Civic Center Park. 5 " �� PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 22, 2009 N. REQUEST FOR WAIVER OF FEES Associated with The Historical Society of Palm Desert's Founder's Day Celebration. Rec: By Minute Motion, waive fees associated with The Historical Society of Palm Desert's Annual Founder's Day Celebration scheduled to be held on Saturday, May 16, 2009, in the Council Chamber located at the Palm Desert Civic Center. O. REQUEST FOR ACCEPTANCE of West Coast Arborists' Donation to the Public Works Department. Rec: By Minute Motion, accept West Coast Arborists' donation of a wooden, two-person bench to the City's Public Works Department. P. INFORMATIONAL ITEMS: 1. Report on Federal Approval of Congestion Mitigation and Air Quality (CMAQ) Project Grant Funding. Removed for separate consideration under Section XI,Consent Items Held Over. Please see that portion of the Minutes for Council discussion and action. 2. Update on Media Placements and Public Relations Activities for the City of Palm Desert as Provided by Nancy J. Friedman Public Retations. Rec: Receive and file. Mayor Spiegel asked that Item P-1 be removed for separate consideration under Section XI, Consent Items Held Over. Upon a motion by Ferguson, second by Finerty, and 5-0 vote of the City Council, the remainder of the Consent Calendar was approved as presented. XI. CONSENT ITEMS HELD OVER\ P. INFORMATIONAL ITEMS: 1. Report on Federal Approval of Congestion Mitigation and Air Quality (CMAQ) Project Grant Funding. Mayor Spiegel noted the letter of notification from Coachella Valley Association of Governments (CVAG) requesting a shift in financing. It appeared CVAG moved $800,000 from the City of Palm Desert that was 6 � . � �.._�, , PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 22, 2009 meant for the bike path lanes. He questioned if CVAG was allowed to do that. Engineering Manager John Garcia responded it was approved by the CVAG Executive Committee, which had City representation. Responding to question, Mr. Croy agreed to speak to CVAG's Executive Manager for an explanation. Mayor Spiegel moved to receive and file the report on Federal Approval of congestion Mitigation and Air Quality Project Grant Funding. Motion was seconded by Finerty and carried by 5-0 vote. XII. RESOLUTIONS A. RESOLUTION NO. 09-1 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, AMENDING THE FISCAL YEAR 2008-2009 BUDGETAS A RESULT OF MID-YEARADJUSTMENTS. Mr. Gibson stated staff reviewed all revenues and expenses, and they made some adjustments. The revenue was originally budgeted for $53,231,500, and it was now being revised down to $48,296.100. Expenses were originally budgeted for $53,230.706, but with the adjustments being recommended, it brought the total revised expenditures to$51,965,619. The main reason for the revenue drop in sales tax was due to the slower economy, slower retail numbers, and drop in the interest rate from 5% to 0.25% by the Federal. Councilman Ferguson stated when the Council passed its budget, revenues and expenses were estimated to be even, and the whole idea of going through the mid-year process was to have it come out even at the end of the fiscal year. Mr. Gibson responded staff was asked to submit a list of where they could cut expenses. Further responding, he agreed the best scenario would be to end up even. Councilman Ferguson stated the list indicated $5.1 million in reduced revenues, but only $1.26 million in reduced expenses, so by his calculation the City was in a $3.8 million deficit, yet the staff report indicate it was less than $2 million. Mr. Gibson responded he listed the adjustments on the second sheet, but they were not reflected on the final sheet. Further responding, he said the $5.1 million downward amount was the correct figure. He noted that at the 7 � �� PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 22, 2009 time he originally started preparing the report, the City received its fiscal sales tax report. Staff originally thought the drop was minus .03 percent, but when staff compared it to the prior quarter year, which also had a downward adjustment, he had to readjust his figures, so the actual drop was 9.4% in sales tax revenues. Councilman Ferguson noted a memo was given to him by the Mayor that showed retail sales were plummeting between 16-35%at the major retailers. Councilman Kelly stated he was proud of the City's striping program, so he objected to reducing the traffic striping in the amount of$100,000 because he thought it was a safety issue. Mayor Pro Tem Finerty responded $100,000 was the least of her worries; her overall worry was the$5 million deficit. She believed the economy would get worse because she was reading about it every day, and today she read Wells Fargo and Bank of America were having problems. She said the $1.2 million adjustment was not sufficient, and it was important the City had a balanced budget. She said the Department Heads needed to come up with more savings to achieve the $3.8 million difference. She said in a few days John Wohlmuth who will be the City's new City Manger would be on board, and he needed to be part of the process because he would be inheriting this budget. Since there was no urgency in making the mid-year adjustment this evening, Mr. Wohlmuth could review the budget and make his recommendations as well. She was amazed that between December 23, 2008 to January 22, 2009, the City was in the minus an additional $1 million as noted by Mr. Gibson. She said everyone needed to do everything possible to tighten their belts to achieve a balanced budget. Councilman Ferguson noted that Palm Desert was very conservative financially and it was blessed with a lot of success as a result. The City generally over-estimated its expenditures and under-estimated its revenue, but with the decrease in revenue, he agreed adjustments were needed. However, he agreed with Councilman Kelly that cutting something that involved public safety like traffic striping was not in the City's best interest. Whether the City made a seven or eight percent cut across the board or made strategic cuts, he would rather have Mr. Wohlmuth on board to advise the Council along with Finance Directorwho revised his figures based on the latest forecast. He's seen what other cities were doing, but he didn't want to shoot from the hip. He would prefer to have the whole team assembled when the adjustments were made. He agreed with Mayor Pro Tem Finerty that the mid-year adjustment could wait until the first meeting in February. 8 PRELIMINARY MINUTES �'T REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 22, 2009 Councilmember Benson agreed Mr. John Wohlmuth needed to be part of the process because additional cuts may be required, and it was unknown how hard the City would be hit by the State. Mayor Spiegel noted the fiscal year ended June 30, 2009, and there were only a few more months to go, and those funds were already spent. He said next year's budget will be a major challenge, and since all the employees reported to the City Manager, it would be best to wait until Mr. Wohlmuth was on board. Councilman Kelly asked if a hiring freeze should be considered. Mr. McCarthy responded there was no formal hiring freeze in place, but he did ask the Director's and Assistant City Manager's to refrain from hiring. To his knowledge there was only one position in process to be hired, and two or three positions were basically in abeyance. Mayor Spiegel requested that an item regarding the hiring of new employees be put on the Agenda for the next meeting, and that new hires receive Council approval. Councilman Ferguson stated the State of California had a $42 billion budget deficit, and it was still trying to do their "mid-year" budget adjustment. He believed the State would soon reach an agreement to adopt an 18-month budget that would spread the cuts out over 1 '/2 years instead of trying to do them all in 5 '/z months, which may be something the City may want to think about once Mr. Wohlmuth was on board. Mayor Pro Tem Finerty agreed, but for now, she wanted staff to narrow the $3.8 million gap before the end of this fiscal year. Councilman Ferguson moved to continue this item to February 12, 2009. Motion was seconded by Kelly and carried by a 5-0 vote. XIII. ORDINANCES For Introduction: None For Adoption: None 9 � �� PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 22, 2009 XIV. NEW BUSINESS A. REQUEST FOR AWARD OF PURCHASE CONTRACT TO FORMS AND SURFACES FOR TRASH/RECYCLE RECEPTACLES FOR CITY PARKS (CONTRACT NO. C28490). Ms. Riddle stated this request was for 129 additional trash and recycling containers forthe City's parks and facilities. The containers are similarto the ones at the Civic Center Park. She said funds were available from the AB 939 Recycle Fund. Councilman Ferguson moved to, by Minute Motion: 1) Approve the sole-source purchase of trash/recycle receptacles; 2)award purchase contract for same to Forms and Surfaces, Pittsburgh, Pennsylvania; 3) authorize appropriation and expenditure of funds for same in the amount of $232,373.25 from the Recycle Fund, Account No. 236-4195-454-3090. Motion was seconded by Finerty and carried by a 5-0 vote. B. REQUEST FOR APPROVAL OF $175,000 EXPENDITURE FOR PRESENTING SPONSORSHIP OF FASHION WEEK EL PASEO 2009, MARCH 23-29. Ms. Kneiding noted the staff report and offered to answer questions. She understood that during these tough economic times it was hard to consider funding an event, but the City's investment with Fashion Week last year received over $1 million in valued media exposure; 55% of the attendees were from outside the Coachella Valley, 32% were from outside California, and ticket sales were up 40% last year. Councilman Ferguson asked what were the total ticket sales. MR. MICHAEL EVANS, Associate Publisher with Palm Springs Life (PSL) replied total cash ticket sales were $19,000 for all eight events throughout the week. Mayor Pro Tem Finerty noted the City gave $100,000 to the event last year. She asked how much did the merchants on EI Paseo contribute. MR. EVANS replied the only opportunity for merchants to participate without renting the tent itself was on opening night with Pacifica and Runway Bar. He said only five or ten outfits could be modeled, and the total revenue was $5,000; the merchants shared the modeling cost for that evening. Mayor Pro Tem Finerty stated the City donated $100,000 and the event received $19,000 in ticket sales; she questioned who picked up the deficit. 10 � PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 22, 2009 MR. EVANS responded Desert Publications had picked up the deficit for the past three years. Ms. Kneiding added that the EI Paseo Business Improvement District spent about $35,000 in advertising support, and the merchants participated by showing their fashion and in-kind donations. While donations were not typically a cash sponsorship, the merchants were definitely involved by hosting in-store events and offering up their merchandise. Mayor Pro Tem Finerty stated she didn't know where the City was headed with the Art of Food & Wine, but it spent $560,000 on that event, and here it was being asked to spend another $175,000. She said last year the City gave $100,000 to the event, and in the budget process that bid increased to $200,000, recognizing the Marketing Committee only recommended $150,000. She was reluctant about the whole event because it involved General Fund monies, but she was willing to stay at the 2008 limit of $100,000 or wait until Mr. Wohlmuth was on board to see what he recommended. Councilman Ferguson stated he viewed everything that was approved at the budget meeting as good for the residents and the City, but the difficulty the Council now faced was a $5.1 million deficit, and it had to decide which things would be done immediately, which ones would be spread over time, orwhich ones would not be done at all. He personallythought Fashion Week was a great event for the City. He recalled the City used to underwrite the Samsung golf tournament at Bighorn for$175,000, and he doubted they sold $19,000 worth of tickets, but it got Palm Desert on National Television with great exposure. He preferred to wait until Mr. Wohlmuth was on board because he would be the one recommending a recovery plan to the Council. He said the Council obviously thought the event was good for the City because it recommended $200,000 last spring when the market was good, but it was now in dire straits and his thinking had changed dramatically. He reiterated he thought it was a worthwhile and beneficial program for the City. Mayor Spiegel asked what was the drop date for Palm Springs Life. MR. EVANS stated the program was already underway with the lead designer Juan Carlos Abando and Jade Howe, a men's designer. He said each night's event had a charity equivalent to it, and the Fashion Week program included in-store events,tent events,and the designers themselves, which was poly-bagged with the March issue of Palm Springs Life and ready to be sent to the printer in a week. Councilmember Benson stated time was of the essence when planning an event such as this one to get it on the books, but she felt the City needed to 11 ������ � PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 22, 2009 be prudent and re-look at ali events because it may not be able to do them this year. She agreed with Mayor Pro Tem Finerty to approve $100,000 in order to move the event forward. Councilman Kelly agreed with his colleagues about waiting unfiil the new City Manager was on board, but with Fashion Week, the City had Palm Springs Life who was an excellent partner and long-time high-class operation. Palm Springs Life was trying to get the west coast fashion premier moved to Palm Desert, and if anyone could accomplish that, it would be PSL. He understood these were hard times, but the City still needed to support those people that brought revenue to run the City with. He said if Palm Spring Life was able to have the premier in Palm Desert, it would be a tremendous thing for the City. Mayor Spiegel stated he believed EI Paseo was the fashion capital of Southern California because of all the upgrades. In addition, the Los Angeles fashion week event was canceled, so Palm Desert would be getting top designers who had won awards in the past, which would bring tremendous publicity to Palm Desert's Fashion Week, particularly in season. He said Ralph Lauren, Gucci, and Saks Fifth Avenue were all participating, and he would like to see an approval for something higher than $100,000. Councilman Ferguson agreed to approve $100,000 because it was a 50% cut from last spring, and a hefty cut from what the Marketing Committee had recommended. He said it was lower than what he preferred, but in the absence of the new City Manager, he would agree to $100,000. Councilman Ferguson moved to, by Minute Motion, authorize expenditure of $100,000 to Palm Springs Life for Presenting Sponsorship of Fashion Week EI Paseo 2009 — funds are included in the FY 2008-2009 Special Events Budget. Motion was seconded by Benson and carried by a 5-0 vote. LATER in the meeting, a motion to reconsider this matter was approved, 5_0. Councilman Kelly noted he had advocated that a budget was a plan and not necessarily an approval to spend, but on the other hand, Fashion Week was discussed in the Budget Study Session and amounts between$150,000 and $200,000 were discussed, and the people involved with the event had already made plans and ordered things. He said if these events were not going to be done in the future because of hard times, he felt advance notice would give people lead time; however, staff had already put a lot of time into this event. He believed the Council thought it was a good event, but the question now was how much it was willing to invest. He said the Council should move forward with a $150,000 contribution. 12 � ,,..4 ,� :,�,a,�� j '�� �� �..� � PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 22, 2009 Ms. Gilligan stated she had a side meeting with Marketing Manager Kristy Kneiding following the approval of $100,000 for Fashion Week. She said Councilman Kelly, while in recusement from an item on the Agenda, overhead their conversation and offered to reconsider the item so that staff could provide additional information to Council. She appreciated him doing that because it provided her the opportunity to explain why the Marketing Committee included $200,000 in the budget. She agreed the budget process was only a plan and acknowledged it was staff's obligation to bring it back as a finalized proposal from Palm Springs Life. However, it wasn't until staff had turned in a proposal and funding request, that the Finance Department reminded them it lacked appropriate City Council action. She said Palm Springs Life had moved forward with the event that would take place the third week in March; they have the designer, the tent, and the Fashion Institute of Design and Merchandising (FIDM). Because the Los Angeles event would not be happening, Palm Springs Life was taking advantage through FIDM by expanding Palm Desert's Fashion Week. She said Los Angeles had two less than successful years, but on the other hand, Palm Desert's event had grown in size, stature, and poputarity. Subsequent to the approval of the $100,000 earlier this evening, Palm Springs Life advised they would not be able to do Fashion Week, and she didn't want it out there that they were threatening, but that they had moved forward on the assumption theywould receive$175,000 from Palm Desert. She was aware of the City's financial situation and the uncertainty it faced; however, the promotional value of Fashion Week for the City was so significant that they would match it by reducing the Marketing budget for next year. She said the event would provide so much that the City could build on it as a result. She knew the Committee would be looking very stringently at the Marketing budget for next year. She recognized the Administrative staff should have brought this item forward earlier, but staff needed to make Council aware of the additional information received, that if the event only received $100,000 from the City, the event wouldn't happen; it wasn't a threat but a fact. Ms. Kneiding thanked the Council for the reconsideration. She said if Palm Springs Life received the $175,000 that was discussed in the budget process, that dollar amount could be reduced by new sponsors. She said PSL was in the cusp of signing up new sponsors. She noted the event was eight weeks out, and $175, 000 was included as part of PSL budget for the event. Economic Development Manager Ruth Ann Moore noted she had a marketing fund that was not part of the General Fund that could be used to help this event. She said contributions for this fund came from the College of the Desert Street Fair, which was used to market the City, i.e., the restaurant guide, commercials, and various other promotions. 13 �,. `�, ,�'_ �y� � PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 22, 2009 Responding to question, Ms. Gilligan confirmed there was about $220,000 in that account. Ms. Moore added it was a revolving fund that accumulated and remained there until used. Mayor Spiegel asked if staff was requesting $175,000 or $150,000. Ms. Kneiding responded approval of$175,000 would make the event happen and that possibly the amount could be reduced if additional sponsors were signed up. Further responding, she said the EI Paseo merchants contributed through their advertising and in-kind donations. Each store did their own promotion, and the restaurants participated as well; Pacifica sponsored the Runway Bar and provided food for that event. Ms. Gilligan stated Palm Springs Life had produced a great event for three years, and she strongly recommended Council approve the funding, but also that PSL be made aware the funding barrel had reached a limit. Ms. Kneiding replied she already had that conversation with Palm Springs Life, but she believed this year would be a turning point for them with the Fashion Institute of Design and Merchandising, the Los Angeles people coming in, and the public relations and advertising behind it. She believed this year the event would bring more media exposure and boost the publicity and stature of Palm Desert's Fashion Week. Councilman Ferguson expressed his disapproval of being told he had to approve something when staff was aware of the circumstances as early as tast October when the financial collapse happened. He said Palm Springs Life could tighten their belt like the City was attempting to do. He felt staff took advantage of Councilman Kelly being out of the room to have him return for a motion to reconsider when the Council had already voted unanimously to approve $100,000. He stated he was surprised staff was trying this kind of stunt at the tail end of the agenda. Councilmember Benson stated she wished staff would have spoken up during the hearing because no one mentioned $100,00 would kill the event. She said in the past there had been other hearings where the Council had offered less money and it was told they couldn't do the event, but that didn't happen today; staff just accepted the fact that Council would contribute $100,000. Councilman Kelly stated the main reason staff didn't speak up was because they didn't want to say they couldn't do the event. If they were more aggressive and told the Council they couldn't do the event, it would have sounded like they were threatening, which they were trying to avoid. 14 PRELIMINARY MINUTES � � REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 22, 2009 Counciimember Benson responded that staff was doing that now. MR. EVANS stated that between his first appearance earlierthis evening and now, he had called the owners of Palm Springs Life. He said it wasn't up to him to threaten anyone, which wasn't the idea, but they had a machine rolling that was based on an assumption. He said they had full-page ads they had contracted for in San Diego Magazine and Los Angeles Magazine promoting the event, and those publications were shipped to be in the February and March issues. The ball had to continue to roll, otherwise the event couldn't be branded as a West Coast Designer Showcase. He said $175,000 was no where near the amount that it took to put this type of event for an entire week that included a free-standing tent structure along with all the other promotional value. Mayor Pro Tem Finerty stated she didn't understand how$100,000 was fine last year that it now needed $175,000 when the economy was in the tank. She suggested looking at Fashion Week as an every other year event, but that funding shouldn't be taken for granted nor based on the Marketing Committee's recommendation. She said the City Council made the final decision because it was responsible for providing services to the community. She said everyone needed to start looking at taking the fluff out of the budget, and start worrying about what government was suppose to do,which was to ensure the public safety of the citizens. Mayor Spiegel disagreed that the event was fluff because it supported the merchants. He said it would be a big mistake to not support EI Paseo, because it was important to the City. Councilman Kelly moved to, by Minute Motion, increase Fashion Week sponsorship amount by $50,000 (therefore totaling $150,000). Motion was seconded by Spiegel. MR. EVANS stated he would immediately go back and sharpen his pencil to see how it penciled out. Councilman Kelly apologized for bringing this item back, but he felt he wouldn't be doing his due diligence for the citizens he represented. Mayor Spiegel called for the vote, and the motion failed on a 2-3 vote, with Benson, Ferguson, and Finerty voting NO. 15 � .li; ` �� PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 22, 2009 C. REQUESTFORAUTHORIZATIONFORTHECITYMANAGERTO REVIEW AND APPROVE A PROPOSED TEMPORARY USE PERMIT FOR A CERTIFIED FARMERS MARKET AT ENTRADA DEL PASEO (City of Palm Desert, Applicant). Mayor Spiegel stated Certified Farmers Market (CFM) operated in Palm Springs, and they want to bring it to Palm Desert by the Visitor Center. Mayor Pro Tem Finerty stated it was a great idea. Councilmember Benson stated she and Councilman Kelly went to Washington Charter School for "Salad Day" and that's when CFM brought forth the idea to have a Farmers Market in Palm Desert, which she brought forward for consideration. She said CFM provided all the vegetables for the school and thought a Farmers Market would be good for the City. Mayor Pro Tem Finerty moved to, by Minute Motion, authorize the City Manager to review and approve a Temporary Use Permit as the property ownerfor Entrada del Paseo. Motion was seconded by Ferguson. MS. BARBARA deBOOM, President/CEO of the Pafm Desert Chamber of Commerce, responding to MayorSpiegel's question aboutthe priorevening's event, she said the Chamberof Commerce held theirgrand opening with 550 peopfe in attendance; they had 14 restaurants participating, the Board of Directors contributed the wine to the event, and it was a great celebration of their new home in the Henderson Community Building. She met with the owners of the Farmers Market and thought it was a great idea to have them by the Visitor Center and Henderson Building because there was enough space. She suggested having the Farmers Market nearthe strip mall where it could attract more pedestrian traffic to the retail stores and vice versa. She said while this was being tried out, the long-range plan would be to find another place that would be beneficial to the merchants. Councilmember Benson stated it was suggested CFM go out to University Park where retail was still being developed, but CFM was afraid they wouldn't be known out there, so the City agreed they could set up at Entrada del Paseo for six months. They would then survey the results and notify people that they would be moving to perhaps University Park, and the people would follow. Councilman Ferguson stated he went to the Farmers Market in Palm Springs in a depressed parking lot center, and it was a depressing experience. He's been approached by many requesting a Farmers Market forfresh vegetables so they could eat right on a daily basis and not have to wait once a week for 16 � �� PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 22, 2009 the College of the Desert Street Fair. He thought Entrada del Paseo was a great launching location for the Farmers Market, and if successful, it could be moved to a location that would be more beneficial, but right now there was no one out at University Park. Mayor Spiegel called for the vote, and the motion carried by a 5-0 vote. D. REQUEST FOR APPROVAL OF A PURCHASE ORDER TO FRAZER AMBULANCE IN AN AMOUNT NOT TO EXCEED $86,875 PLUS APPLICABLE TAXES FOR THE REFURBISHMENT AND REMOUNTING OF MEDIC UNIT #M71. Mayor Pro Tem Finerty ask if this item went out to bid or if other price comparisons were made. A representative from the Fire Department stated Frazer Ambulance was a sole-source vendor; they had supplied three other ambulances that lasted through their time frame. Responding to question, Mayor Pro Tem Finerty said she didn't believe this had been through the Public Safety Commission. Mayor Spiegel said it would be better for the Council to have the recommendation coming from the Public Safety Commission. Councilman Ferguson stated he would eventually like to see the ambulances be Compressed Natural Gas (CNG) as opposed to Diesel. Mayor Pro Tem Finerty moved to continue the matter and referred it to the Public Safety Commission for a recommendation. Motion was seconded by Kelly and carried by a 5-0 vote. E. REQUEST FOR EXTENSION OF CONTRACT FOR JANITORIAL SERVICES AT CITY OF PALM DESERT PARKVIEW OFFICE COMPLEX FOR ONE ADDITIONAL YEAR (CONTRACT NO. C22165). Mayor Pro Tem Finerty stated she appreciated that the vendor kept the price the same. Mayor Pro Tem Finerty moved to, by Minute Motion, approve extension of the subject contract with D. W. Nicholson, LLC, d.b.a. Desert Building Services, Rancho Mirage, California, to perform janitorial services for the City of Palm Desert Parkview Office Complex for one additional year in the amount of$6,085/month($73,020). Motion was seconded by Ferguson and carried by a 5-0 vote. 17 � � . � ���� �°q r•�s a+�;y F�, � °a ' �,dY- �E_� � PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 22, 2009 F. REQUEST FOR AUTHORIZATION TO NEGOTIATE TERMS OF AN AGREEMENT TO RELEASE FUNDS TO FOOD IN NEED OF DISTRIBUTION(FIND)FORACQUISITION OF A WAREHOUSE FACILITY (CONTRACT NO. C28500). Responding to question, Mr. Gibson said Fund 400 was the City's Capital Project Fund, and it also held the funds received from the County when the City sold the land near Costco. Former City Manager Carlos Ortega had the intent to use that money for the benefit of the area. Further responding, he said originally the City had an agreement through the Community Development Block Grant(CDBG), but because that process took too long, the City decided to use Fund 400 as its funding mechanism. Councilman Ferguson asked if Food In Need of Distribution (FIND) had submitted a CDBG application since they've gone vertical. Ms. Riddle responded that they had not. She said this project was proposed five years ago, which came through as a CDBG application at that time; however, because the project was too expensive for CDBG, other avenues were looked at like the sale of the property. She said the project itself qualified under CDBG, but the City received about $300,000 to distribute to many. Responding to question, Mr. Gibson said the funds had been carried overfor three years, so funds were available. Councilman Ferguson moved to, by Minute Motion, authorize the City Attorney, Assistant City Manager, and Finance Director to negotiate terms of an agreement to release funds to FIND for its acquisition of a warehouse facility—funds forthis purpose are available in Fund 400. Motion was seconded by Kelly and carried by a 5-0 vote. G. REQUEST FOR ADOPTION OF RESOLUTIONS OF THE CITY COUNCIL AND REDEVELOPMENT AGENCY, REGARDING FUNDING OF PHASE 2 LOANS FOR THE PALM DESERT ENERGY INDEPENDENCE PROGRAM (JOINT CONSIDERATION WITH THE PALM DESERT REDEVELOPMENT AGENCY). Mr. Conlon noted the staff report and stated Mr. William Strausz and Associates from Richards,Watson&Gershon were present;the lawfirm that prepared the financing mechanism for the loans. Councilman/Member Ferguson stated the Council authorized $7.5 million in Energy Independence Loans that would have a 7% interest rate return, and the funding forthose loans were originally from the General Fund, which was then converted over to bonds to be purchased by the Redevelopment 18 � ��y� �� PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 22, 2009 Agency. He said the Energy Independence Loan Program (EIP) was being processed in $2.5 million increments to be able to reimburse the City all of its General Fund money from the bonds purchased by the Redevelopment Agency. Mr. Conlon agreed. Mr. McCarthy clarified that at the end of the process, there would still be $2.5 million of General Fund money in the program. Councilman/Member Ferguson responded the goal was to get all the General Fund money refunded to the City by having all the funds converted into bonds to the Agency and have the City incur the indebtedness. MR.W I LLIAM STRAUSZ,Counsel to the Redevetopment Agency,stated the way the program was structured was that the City had committed $2.5 million of General Fund monies to the Energy Independence Program (EIP), and action this evening would authorize the Redevelopment Agency to invest in City bonds. By doing so, the City would then have the ability to withdraw those funds, and reimburse the City for the $2.5 million that it loaned out. However, it was his understanding that the $2.5 million that's being loaned out by the Redevelopment Agency to the City through the investment process would then be loaned out to more property owners to do more improvements. Responding to question, he agreed this process could be never-ending. Councilman/Member Ferguson moved to waive further reading and adopt: 1) City Council Resotution No. 09-2, amending Resolution No. 08-75, regarding its intention to finance distributed generation renewable energy sources and energy efficiency improvements; 2) City Council Resolution No. 09-3, providing for the issuance and sale of limited obligation improvement bonds in principal amount not to exceed $2.5 million, approving as to form and authorizing the execution and delivery of a bond purchase agreement in connection therewith, and authorizing certain other matters relating thereto; 3) Redevelopment Agency Resolution No. 555, authorizing the Redevelopment Agency's investment in and purchase of the City of Palm Desert's Energy Independence Program, Limited Obligation Improvement Bonds, Series 2009A(Taxable), approving as to form and authorizing the execution and delivery of a bond purchase agreement in connection therewith, and authorizing certain other matters relating thereto. Motion was seconded by Finerty and carried by a 5-0 vote. 19 ;�� �� ,�� � ��. ,v x� � PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 22, 2009 XV. CONTINUED BUSINESS � A. REQUEST FOR AUTHORIZATION FOR STAFF TO NEGOTIATE WITH WELLS FARGO BANK REGARDING ITS PROPOSAL TO ASSIST THE CITY WITH STRUCTURING A VARIABLE RATE BOND ISSUE TO PROVIDE FINANCING FOR THE CITY'S ENERGY INDEPENDENCE PROGRAM (Continued from the meetings of November 20, November 24, and December 11, 2008). Mr. Conlon stated staff was requesting this item be withdrawn. He said the Finance Department was currently in the Request For Proposal (RFP) process to solicit permanent third-party financing for the Energy Independence Loan Program. Councilman Kelly moved to, by Minute Motion, withdrawthis item from the agenda. Motion was seconded by Finerty and carried by a 5-0 vote. XVI. OLD BUSINESS A. REQUEST FOR APPROVAL OF THE POLICIES AND PROCEDURES FOR THE CITY'S TRAFFIC SIGNAL BOX ARTISTIC TREATMENT PROGRAM. Public Arts Manager Richard Twedt stated this item was referred to the Art in Public Places Commission for their input. Staff listed the requirements and process to follow in painting additional traffic signal boxes in Palm Desert. Mayor Pro Tem Finerty asked what was the anticipated fiscal impact. Mr.Twedt responded that based on the past 16-months with the three boxes already done, the impact was minimal. He monitored the boxes and took care of any graffiti or vandalism, which he did as part of the AIPP program, and it didn't impact the General Fund. Mayor Spiegel stated Mr. Belmont went out and painted his box without City approval, and he was questioned on it. The boxes done on EI Paseo were pretty good and more would probably be done, but Council wasn't particularly fond of the way Mr. Belmont went about getting his box painted, but he did it in good faith. Councilman Kelly agreed the box should be painted with landscape that blended in with the surroundings, but he was against having a character or 20 s � �� �'� :; t���T�� � . � PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 22, 2009 anything that looked tike an advertisement. He didn't find the guideline that referred to who would have control on the design. Mr. Twedt replied the AIPP Commission controlled the artistic treatment of any traffic signal box. He confirmed private citizens who wanted to paint their utility box would have to go through the AIPP process. He went on to say that next year only three boxes were budgeted. Further responding, he said Guideline #3 and #4 addressed Councilman Kelly's concern as to who had control of the design. He said designs would be approved by the AIPP and required City Council approval prior to commencement of painting. Mayor Pro Tem Finerty moved to, by Minute Motion, approve the Policies and Procedures established for the Traffic Signal Box Artistic Treatment Program in the City of Palm Desert as presented. Motion was seconded by Ferguson and carried by a 5-0 vote. XVII. PUBLIC HEARINGS A. CONSIDERATION OF AN APPEAL OF A PLANNING COMMISSION ACTION, DENYING A REQUEST FOR A VARIANCE TO ALLOW THE REDUCTION OF A REQUIRED MINIMUM SIDE YARD SETBACK FROM FIVE FEET TO ZERO FEET TO ALLOW CONSTRUCTION OF A GOLF CART SHED LOCATED ON THE PROPERTY LINE FOR AN EXISTING SINGLE-FAMILY HOME AT 46-020 BURROWEED LANE Case No. VAR 08-261 (Michaef and Marianne Toia, Applicants/Appellants). Councilman Kelly recused himself from this item because he tived in the vicinity of the subject property and left he Council Chamber. Assistant Planner Kevin Swartz stated the subject properties were located on the southeast corner of Burroweed Lane and Ironwood Street. The property is zoned R2, 8,000, the southeast and west is zoned R2, 8,000, and zoned R1, 20,000 to the north. The Applicant's lot is 6,900 square feet, smallerthan the R2 lot minimum. Many of the properties on Burroweed Lane were built in the County of Riverside; some are condos and some are single-family homes. He displayed an aerial photograph of the location of the properties on Burroweed Lane and Ironwood Street. He said on September 2, 2008, the Variance was heard by the Planning Commission, and after a long discussion they voted 2-2 and forwarded the case to the City Council. On October 9, 2008, the case was heard by the City Council and then referred back to the Planning Commission for a definitive action. The City Council recommended to the Applicant and the neighbor Ms. Suzanne Pride to work this matter out. The Planning Commission meeting was held on November 18, 2008, and a day before the meeting, the Applicant and Ms. Pride worked out their issues and an agreement was signed between the two 21 �� � �"� �,� '� . PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 22, 2009 property owners. The agreement involved a condition, "that the Applicant must obtain a building permit to raise the common wall to the tallest point of the golf cart shed, but in no event higher than eight feet." However, the Planning Commission denied the Variance on a 4-1 vote. Since the agreement between the Applicant and Ms. Pride was based upon the Planning Commission's approval, Ms. Pride no longer wanted to be part of the agreement. He said the ApplicanYs request for a Variance to construct a golf cart shed within the required five foot setback was consistent with the development and the neighborhood. He displayed before and after photographs of what the golf cart shed looked like. He said there were 21 out of 27 homes on Burroweed Lane with a zero setback, and after surveying the building, the property line was consistent within the neighborhood. The Applicant's lot was smaller than an R2 lot standard on a corner lot, which required greater setbacks to be maintained. He said the Architecture of the golf cart shed enhanced the neighborhood, and all findings can be made for the Variance. Staff was recommending approval to adopt the findings and resolutions subject to the conditions. He concluded his presentation and offered to answer any questions. Councilman Ferguson asked what were the legal standards for granting a Variance. Mr. Erwin responded the standards were set forth in the City's Ordinance that required affirmative findings of four items: 1) that the letter of interpretation and enforcement of the regulation would result in practical difficulty or unnecessary physical hardship that would be inconsistent with the zoning in the area; 2) that there are exceptional or extraordinary circumstances applicable to this property that do not apply generally through other properties in the same zone; 3) that these literal interpretations and enforcement would deprive the Applicant of privileges enjoyed by the owners of other properties in the same vicinity and zone; and 4) that the granting of this application would not be detrimental to the public health, safety, or welfare, or materially injurious to properties or improvements in the vicinity. These four items under the City's Ordinance were required to be found. Councilman Ferguson stated the City didn't allow buildings in setbacks, but staff was recommending approval for a Variance nonetheless; pointing out the obvious contradiction between what the Ordinance allowed and what staff was recommending. Mayor Spiegel declared the public hearing open and invited public testimony in FAVOR of or in OPPOSITION to this matter. He invited the Applicant and Ms. Pride to come forward and speak first. 22 �3e ,� 1tc G , ,.... . �.'�'� ... �`ti.�� �7& � PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 22, 2009 MR. MICHAEL AND MARIANNE TOIA, stated he and his wife lived at 46-020 Burroweed Lane. He said they were once again requesting the City Council to grant a setback Variance for a golf cart barn. He said the golf cart barn was located precisely at the same location that housed an aluminum roof carport for the past 25 years. At the previous City Council meeting they presented a petition in support of a golf cart barn that was signed by 95% of the neighbors, of which many were present in support this evening. He said it was demonstrated that zero setbacks existed on 21 of the 27 homes on the street, which was 80%. At the October 9 City Council meeting the Council encouraged the Applicant and Ms. Pride to find a point of reconciliation and work out a solution that would be in the best interest of all. The day before the Planning Commission hearing, Ms. Pride along with her long-time friend Sam Rich, acting as her advisor agreed to meet; Mr. Rich was a retired contractor and Ms. Pride respected his experience. He was extremely helpful and reasonable in finding common ground, which resulted in a five-page agreement that was signed by both parties. The agreement was quite generous on his part; he agreed to rebuilt the common wall that Ms. Pride had illegally modified without permits and to re-stucco her side of the wall. This was the same common wall that was surveyed to establish and document the shared ownership; the cost of this repair alone would be approximatefy$4,000. The remedieswere reviewed with Directorof Building and Safety Russell Grance to assure code compliance. In this meeting, Ms. Pride also requested he bear the cost associated with rectifying a second perimeter wall that she illegally raised eight feet without building permits, which he felt was onerous, but Mr. Rich stated she was possibly over-reaching and agreed to drop her position. Previous accusations made to the Planning Commission by Ms. Pride about high-voltage tools stored in the cart barn were also addressed. When Mr. Rich realized they were nothing more than battery operated tools, he advised Ms. Pride this was not an issue of concern, and this issue was atso omitted from the agreement. He said copies of the agreement were rushed to the Planning Department and discussed its impact on the Planning Commission hearing set for the following day. He was informed by the City that there was no need for either party to bring support speakers and that Ms. Pride didn't have to appear since the written agreement made the Variance approval a matter of formality. He and his wife attended the November 18 Planning Commission meeting expecting their 12-month ordeal to finally come to a fair and equitable conclusion. Instead they were surprised and extremely disappointed by the actions taken by the Planning Commission. He said they were appalled by the treatment and attitude displayed toward them, as well as the inferences directed at the integrity surrounding the signed agreement. He said once again, as was the case in the first meeting, none of the Commissioners based their position on the City's Municipal Code variance application procedure, criteria, or code. They demonstrated a punitive behavior because the golf cart barn was built with partial permits. They 23 �� `�`'�x �"` �^ . . �,. �.„,�v'_ .� A.;;..� � PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 22, 2009 refused to acknowledge that the Municipal Code variance procedure and criteria code was not intended to discriminate toward pre-existing structures, and when City staff repeated this point to the Commissioners, staff was accused of bending over backwards to accommodate someone who had built something illegally. Some of the Commissioners refused to focus their views and positions within the four specific criteria that the Code intended to constitute the ultimate determination. He and his wife were accused of coercion and "brow-beating" Ms. Pride into the agreement,which was further from the truth. He said the Commission stated they did not want to create a precedence by allowing pre-existing golf cart barns to be granted a variance, but a precedence had already been set on repeated occasions; he questioned why they were being singled out. He said the Planning Commission's failure to follow the conciliatory direction of the City Council of accepting a written resolution, reversed all progress achieved. Based on the vote to deny the Variance, Ms. Pride reversed her position and would not abide by the written agreement. He said the written agreement provided a resolution between the two opposing parties in a fair and equitable manner that was consistent with neighborhood sentiment; it complied with all City regulations and code, and it achieved the recommendation and direction suggested by the City Council. He asked the City Council to approve the Variance based on the specific criteria identified in the variance procedure with a sense of fairness and compassion by taking into consideration what everyone's been through this past year. He thanked the Council for their consideration. MS. SUZANNE PRIDE, stated she was born in Riverside County and lived in the desert for almost 30 years, and 11 years at 46240 Burroweed Lane. She pointed out the names on the Agenda were Michael and Marianne Toia who live at 46020 Burroweed Lane, and her name was not on the Agenda because she or her property are not the issue. She lodged an investigation on Mr. Toia's structure because it was damaging her property, but she's been the focused of this case for one year. She said Mr. Toia build his entire case on making her and her property the issue. She noted the case now included 400 pages,and she's been threatened, blackmailed,slandered,and crucified by the neighborhood that she's lived in for seven years prior to the Toia's moving there. She said there was never a 25 year old carport at his residence; there was once an Olive Tree, grass, and gate. She said the setback from the wall to Mr. Toia's garage was about eight feet, which was consistent with the setback on the other side of her home; she shared a common garage wall with her neighbors. She said Mr. Toia approached the City with plans to build a golf cart barn and was told to get a survey and variance, but he didn't. If Mr. Toia had requested a variance, she would have been notified and all the illegal construction could have been avoided and nothing would be draining and damaging her home. She said Mr. Toia deceived the City by getting a permit for a gate enclosure; he broke the law 24 � �� ,�� � PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 22, 2009 and continued to build a golf cart barn, workshop, and two additional structures at the same property, which showed a clear sign of disregard for the law. Responding to question, she said Mr. Toia built a bedroom and bathroom. She went on to say he committed perjury on the Variance Application because he did not disclose the two additions. She wasn't responsible for Mr. Toia's decisions, yet she felt he had based this case on two issues, that she gave him permission to build and that she launched an investigation against him after a confrontation. First, she didn't have the authority to give anyone permission, and secondly, she had the right to confront a neighbor about a pipe that was draining water onto her property. She said for these two reasons Mr. Toia had launched a malicious crusade against her. She said "shame on you" to those who were in the audience that had written to the City stating she had given Mr. Toia permission to build and she now had an ax to grind. She reminded the Council and the audience that she and her property were not the issue. She said Rose Lepan, a Desert resident for 32 years and well-known builder had submitted a letter verifying she saw the Olive Tree in front of the Toia's home, and there was no 25 year old carport. She said Mr. Toia was the third owner, and all the improvements to his home were done by the two previous owners; the staff report included many letters with false and inaccurate statements of what Mr. Toia had done to remodel his home. She stated she didn't go to the City so that she might have to "work something out," but to have the City work out the laws and Code with Mr. Toia. She didn't want Mr. Toia going onto her property to re-build the wall. She said there were no extraordinary circumstances or conditions in the legal findings to merit approval of a variance. She thanked Commissioner Russ Campbell who saw the structure for himself and reversed his decision; she thanked Commissioner Schmidt who spoke out about staff trying to accommodate Mr. Toia after he had broken the law; and the other Commissioners who voted to deny the Variance. She said Councilman Kelly and Mary Helen had been part of the crusade in accommodating Mr. Toia. She questioned why Councilman Kelly who was a neighbor to both parties would make the decision to recommend approval for an illegal structure that was draining and damaging her property. Staff stated approval of this case would not set a precedence because the City had issued permits for other golf cart sheds after the fact; she doubted those cases were causing the same damage. She asked the City Council to uphold the Planning Commission's decision and uphold the law and Code. She said this had been an unhealthy event for the neighborhood, and it was unacceptable how staff had bent over backwards for someone who had broken the law. She reiterated she had been slandered, and the neighborhood had become lawless. MR. BILL YATES, 46-060 Burroweed Lane, Palm Desert, CA, stated he believed this matter was more about a neighborhood dispute. He said the Architectural Review Commission (ARC) voted 4-0 in favor of the golf cart 25 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 22, 2009 barn, and it was in keeping with the neighborhood. He said there was some type of structure prior to the golf cart barn, but he didn't know the time frame. He was disappointed this situation had taken so long, which didn't say much about the City. He noted many were present this evening in support of the Variance, and stated he didn't believe anyone was against Ms.Pride personally; he and his wife were friendly with both neighbors. MR. DON PUCKETT, 46-190 Burroweed Lane, Palm Desert, CA, stated he and his wife were present in support of the golf cart barn. He said zero setbacks were normal in their neighborhood; his own garage was next to a common wall to the neighbor's house with a zero setback. He bought his home in 1997, and there was in fact an aluminum roof shed on the Toia's home, which was an eyesore for seven years. He said the Toia's did a nice job with the golf cart barn and the landscaping. He signed the petition to get the Variance approved when it first started, and he was still supporting it. He asked what would be the advantage of having the structure destroyed and having it go back to a lesser condition. He was happy to hear the Toia's and Ms. Pride had reached an agreement, but later disappointed the Planning Commission interjected and inferred there was outside influence, when in fact, the only outside party was Ms. Pride's friend. He disagreed with the statement made that it was a lawless neighborhood because he and his wife waived to all the neighbors, and there had been no effort to demonize anyone. MR. DAVID HUNSICKER, Irontree Drive, Palm Desert, CA, addressed the audience with a question, but Mayor Spiegel interjected stating it was getting away from the purpose of the meeting. He said it was his third appearance on behalf of Ms. Pride, and he was just trying to make the point that it was important for everyone to know that Mr. Toia willfully constructed two non-permitted, non-taxable structures in an attempt to not pay taxes on them; referring to the bathroom and bath additions. He said the City gave Mr. Toia permission to alter the gate to the right of his garage, however, instead of replacing the gate, he built a workshop that was full of saws, tool, and construction equipment,which was now called the golf cart barn. On the outside it looked like a golf cart barn, but once inside it was something different. Photographs after the most recent rainstorm showed Ms. Pride's common wall; the inadequate drainage caused mildew, chip paint, and stagnate water. He said the runoff water would eventually penetrate the foundation of the wall as illustrated in the photographs displayed. He said Councilman Kelly had spoken on behalf of Mr. Toia at the Planning Commission, and that Mr. Toia and Councilman Kelly were part of the "in-group" at the Shadow Mountain Golf Course. MayorSpiegel noted Councilman Kellywas not presentforthis item because he lived in the same vicinity of this case. 26 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 22, 2009 MR. HUNSICKER stated everyone was part of a nation of laws and not of special interest groups. He said laws were made for the common good of the people to protect the citizens, and to regulate behavior from the outside in; however, ethics was imposed upon ourselves, and ethics regulated behavior from the inside out. He said not only was this case about a violation of the law, but also a violation of ethics. He asked the Council if they would continue to govern by the "good old boy" network. The Planning Commission denied the Variance, and in its findings it was stated, "We in the City of Palm Desert do not want to set a precedence by issuing a Variance for an illegal structure." He hoped the Council shared the Planning Commission's views and denied the Variance. MR. THOMAS MILLER, 73-495 Ironwood Street, Palm Desert, CA, stated he's been a homeowner close to the Toia's and Ms. Pride for the past 11 years. He said the Toia's had done a great job of beautifying the area at considerable expense. He signed the petition supporting the golf cart barn addition, because he felt it wasn't detrimental to other properties. He said it appeared it enhanced the adjoining property very nicely. It was his understanding there was an agreement by both parties and later retracted; he wondered what had happened to that agreement. He urged the Council to vote in favor of the Variance and Application. MR. SKIP GOODELL, Cathedral City, CA, stated he was an architect and noted he had met Ms. Pride only once. He said he saw many of the same exhibits reviewed by the Council, but he was looking at them with fresh eyes because he wasn't a golfer in this community, nor did he live in the subject neighborhood. However, he was an architect who dealt with these types of setbacks all the time; people tried to push things around attempting to get setbacks waived by a variance. He said sometimes it made sense to do so, but not when it impeded on the quite right of title that Ms. Pride had. He said just because the Applicant had a petition signed by the neighbors, didn't make the ApplicanYs actions right. He said the Applicant took it upon himself to build an illegal structure knowing what the rules were, and the reason Ms. Pride felt victimized was because the whole neighborhood signed a petition on the appearance of a golf cart barn, instead of asking the Applicant why he broke the rules. His point was that bad behavior shouldn't be rewarded with an approval. MR. MIKE PETERS, 46-160 Burroweed Lane, Palm Desert, CA, stated he and Mr. Toia had discussed this whole situation many times, and not once did he ever mention Ms. Pride's name, nor did he embark on any campaign against her. In fact, until Ms. Pride spoke today, he never new about the cause or acrimony leading up to the complaint submitted. He said if the Variance was approved, the modification required would address the two issues Ms. Pride was concerned about. The Applicants had said on more 27 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 22, 2009 than one occasion that they were willing to do the modification. He said Ms. Pride referred to the neighborhood as "lawless," but he hadn't seen any type of graffiti or damage to her property, and he's spoken at meetings but he's never said anything negative towards her. MR. FRANZ TIRRE, 46-333 Burroweed Lane, Palm Desert, CA, stated he's lived at Burroweed Lane for more than 30 years, and the addition of the golf cart barn was an improvement to the street scape and the neighborhood. He couldn't see how the new structure detracted from Ms. Pride's property. He provided photographs for the Council to see to show what the Applicant had achieved with the landscaping and the golf cart barn; it blended in with the rest of the zero setback projects there. He understood it was hard to approve the Variance, but so many things were brought up that had nothing to do with the approval of it. Although the Applicant didn't obtain approval prior to construction, perhaps that was best because now everyone could see what the end results would be. He said the golf cart barn was up and it looked great, and he hoped Council would approve the Variance. MR. SAM RICH, Palm Desert, CA, stated he was a friend of Ms. Pride. He agreed the front of the Toia's home looked marvelous; however, the side of the home was a waterfall when it rained. He's been over to Ms. Pride's home when it rained, and the water actually went into her house causing tremendous damage. He displayed a photograph of the side view where the slab was coming off the wall and undercutting the foundation. He said this type of construction would never be allowed, which was the reason for building permits. He said the City Attorney had stated one of the requirements was that it not cause a public health, safety, or welfare, or be materially injurious to properties. MR. RICHARD MATZA, 46-415 Burroweed Lane, Palm Desert, CA, stated it was improper to demonize all the individuals involved in this dispute, including Councilman Kelly and staff, or Ms. Pride playing the act of being the victim as her defense. He said it was obvious the Toia's had built a reasonable structure with partial permits; however, Ms. Pride had known about it for two year before finding an objection. Ms. Pride hired the same laborers to do work in her own property. He said this issue had caused a great deal of problem to the Toia's, Ms. Pride, and the various Committees and officials. He said the Toia's tried to correct the situation by applying for a Variance that applied to pre-existing structures under the Code. He said the two parties had been before numerous bodies and numerous City officials about compliance for the past year, and yet the issue was still unsettled and the two parties were at odds. He said the Toia's were told they met the Variance criteria and have spent a sizable amount of money in satisfying all the conditions asked of them by the ARC, inctuding filing for a Variance Application. He noted there had been split decisions based upon 28 ��, . ,.�u�`' ? �. .��`" � �. PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 22, 2009 which party appeared; sometimes the vote favored one party, and at other times it favor the other. He said a lot of pitiful time and energy had been spent by all involved. He said Ms. Pride had made her own errors in building structures without a permit;a gazebo and height increase to the two common walls. The City cited her for those violations, and she chose to tear down the gazebo. It was a shame that instead of trying to reach a compromise, it reached a point of being unreasonable where they were destroying each others homesteads, and everyone was dealing with a wall that went above and beyond the golf cart barn. He said on October 9 the City Council suggested to both parties to try to reach a compromise on their own, and they did on November 17. He suggested the City Council proceed on the basis of that written compromise between the two parties because there was a meeting of the minds in that agreement. The Toia's would be granted a Variance for the golf cart barn under the criteria of the Code, and it would remedy the non-permitted changes made by Ms. Pride's wall at the Applicant's expense; Ms. Pride would still have a wall and her privacy. He was sure the roofing issues would be fixed as part of the Variance once the wall was in conformance with the law. He said on November 17 the two parties had reached a compromise and also agreed to drop any complaints from each other; he said a compromise meant there were no winners or losers. However, on November 18 the Planning Commission acted on emotion and returned everything to chaos, and now everyone was relying on the Council to bring this issue to a fair and equitable end. He suggested that a decision be based on the compromised agreement as signed by both parties on November 17, 2008. MR. TOIA stated he was afraid the drainage issue might come up, so he displayed photographs that showed when the golf cart barn was constructed, which had a gutter that was there for a long time. In February 2008 the Architectural Review Committee requested the gutter be taken down. In October he spoke with Mr. Swartz indicating it may rain and he didn't want to be accused of drainage. He asked the City if he had the authority to take proactive measures, and he was told he did. He then installed a raised barrier to the entire length of the structure so that no rain would go over the wall, which it didn't. The first time it rained, because he anticipated this situation, he took pictures of the structure when it was raining and clearly nothing was going down on her wall. He discussed with Mr. Russell Grance the photographs submitted by Ms. Pride where it showed water stains at the bottom of the wall, and they arrived to the same conclusion, that if the stains were caused from drainage from the roof, the stains would be going down the whole length of the wall. He said no pipe drained water over to the other side of the wall; there was a PVC pipe re-servicing the swamp cooler, but nothing ever drain over the wall. At the time he constructed the golf cart barn, he enclosed part of the back of the garage and turned it into an exercise room with a shower, which was the second violation Ms. Pride was 29 � �"�,`'�� � "�` "� ;�''.��.� '' �� . '�.� PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 22, 2009 referring to earlier. He went back to the City to obtain permits for them. He admitted it was a bad judgement, and he wasn't excusing it. When he originally went to the City about replacing the awning and aluminum structure, the permit specialist stated he could do the front wall, but he couldn't do the roof. He explained the awning had been there for years and he was just replacing something that was grand fathered. He didn't realize they had an option of going through this process in advance or he would have, especially after seeing the pain its caused to everyone. He said the reality was that he was trying to replace something that already existed, and there was never a five-foot setback because the carport was always there. He said Mr. Tirre could testify to the age of the old cart barn. He was sorry Mr. Kelly was dragged through this because he's never golfed or socialized with him; He's seen Mr. Kelly maybe once or twice at the golf course having tunch at another table. Mr. Kelly was solicited by his wife in the process because they were told by the City that community consensus meant a lot. So his wife went up and down the street, showing pictures of the structure, talking to people about the fact that they were attempting to save the structure, and he signed the petition, which was the extent of his knowledge of Mr. Kelly other than his professional experience with the City. When he talked to the permit specialist, he made it a point to inform him the neighbor was aware of what he wanted to do and that she was in favor. He said in the permit specialist's frustration, he at one point stated, "he could only issue a permit for the front wall and once the permit was signed off, whatever happened behind the watl was between he and the neighbor." He said maybe it was bad advise, but he embraced, which he took full responsibility for. He said the ARC addressed all the issues of view, aesthetics, drainage, and they voted 4-0. He felt they were being re-accused because they had agreed to fix all those items already. He said they've offered to raise the wall that Ms. Pride illegally modified so that she wouldn't see the structure anymore, and until the undoing of the Planning Commission, he felt they had an agreement to everyone's satisfaction, which he was still witling to honor, MS. PRIDE stated the reason she lodged an investigation after two years was because prior to that she had a very tall Juniper hedge that covered the entire structure, and she never saw it. She had seen the structure from the street and had told Mr. Toia it looked good, but she didn't know anything about the building process, and Mr. Toia told her he had a permit. She never dreamed he would build those structures illegally. Had she paid attention and had the knowledge, she would have stopped it in its origin, but she didn't see the structure until the Juniper hedge came down. It was her son-in-law who had urged her to contact the City about what the structure was doing to her property. During those two years, there was ample time for rain to run over the wall, which was affecting her home, but she didn't go out to take pictures when it was raining like Mr. Toia. She noted none of this affected the neighbors properties and hoped they had responded by not getting 30 � �,� �., �i .�.��,�u, .� PRELIMiNARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 22, 2009 involved. She asked that the City Council acknowledge the law and understand she wasn't playing the victim. She said some of the people in the audience had written letters stating she had an ax to grind, which she found to be slanderous, including statements made today about her property, gazebo, and wall. She reiterated it was not her property or her name listed on the Agenda. She asked the Council to help her with what was happening with the damage to her property. With no furthertestimony offered, MayorSpiegel declared the public hearing closed. Mayor Pro Tem Finerty stated she appreciated the neighborhood coming out and sharing their concerns. However, she asked herself if she would want this type of structure built next to her home, and her answer was no. She would want her neighbor to follow the rules. She agreed the structure looked great from the outside, but as a City official, she couldn't condone or reward bad behavior. Mr. Toia acknowledged he didn't follow the rules, and the rules were in place for the benefit of everyone in Palm Desert. She was persuaded by the points made that were relative to this case by architect Skip Goodell. She regretted what everyone had gone through and the nightmare this had been for both parties, but she couldn't condone an illegal structure where permits should have been obtained and people were aware of the required process. Councilmember Benson agreed with Mayor Pro Tem Finerty. She said she didn't meet with the Toia's because there was no excuse for breaking the law when the City had a process. The City had been upgraded since it was incorporated, and she's been on the Council for more than 28 years and had never seen anyone come in for an illegal golf cart barn; she didn't know where staff had received such information. She recalled a number of years ago when a young man had to revert houses that he had illegally transformed into rental units; he had to tear them down and put them back to single-family homes. The homes appeared okay from the outside that one couldn't tell they were changed in any way, but he too did the work without a permit. She said if people were allowed to make changes without a permit, there wouldn't be a need for the law. She said the Council received many compliments on how well the City was run and what a great place it was to live, and it was because of the laws in place. She saw no reason to grant someone permission after the fact when they were advised not to and they went ahead and broke the law. It might had been different if they hadn't been informed, but they were, which to her was a double offense. Councilman Ferguson stated he didn't appreciate the comments made about Councilman Kelly because he's known him for more than 20 years, and he was the most honest and ethical person he knew. He said public officials didn't loose their right to speak up about their property, which they are able 31 ��� � ��� ,. ;; PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 22, 2009 to do with lower bodies such as the Planning Commission. He noted he was in attendance on September 2 when Councilman Kelly and Mary Helen Kelly spoke to the Planning Commission. He said the City had other Planning Commissioners that had spoken before inferior bodies like the Architectural Review Commission, and it was perfectly ethical. He said he denounced any efforts to impune Councilman Kelly's integrity. He thought it was a cheap shot to take ad-lib or ad hoc comments that staff flippantly made and then turned into a blessing or permission, because it was the City Council that made the final decision and was in charge of enforcing the law. He had in his possession a Code Enforcement report for the period of October to December 2008. It listed two similar cases on Chickory Street and California Avenue where the work had to be removed and carport was restored to it's original condition;the homeowners were issued tickets and the City threaten to take them to Criminal Court for misdemeanor violations of the City Code. A third case was a public nuisance case where Code Enforcement issued a notice asking the property owner to remove the illegal structure on the side yard; after the first inspection there was no compliance, so a letter was sent to the property owner; after the second inspection, again there was no compliance and an Order to Abate was mailed and posted on the property; and on the final inspection the property owner removed the structure. He had pictures of all the cases he had just mentioned, and the property owners had to remove the illegal structures because they didn't seek a Variance or permission from the City. He said what kind of a message would be sent to those three property owners who had to remove their structure, if this Variance was approved only because it was after the fact. He said in this case, the Applicant didn't qualify for a Variance because it didn't meet the four points required for a Variance; there was no physical hardship, exceptional circumstances, or deprivation of privileges. He was uncertain as to whether or not this case was detrimental to the public, health and safety, but if he wasn't able to make a positive finding of fact, he couldn't grant a variance legally and could not support the Variance request. He said it wasn't a personal judgement against any of the parties, but the Applicant didn't meet the letter of the law or the spirit of the law. He was sensitive to the Planning Commission's comments, which he disagreed that they were based on emotion. Mayor Spiegel stated this was a difficult decision for him because of what Mr. Toia had accomplished, the neighborhood support, and the increased value to the street. He said this situation was exactly what happened at Palm Desert Country Club when the City took it over from the County; the houses and golf course was upgraded, and the value of the homes increased dramatically. It's difficult when staff recommends approval after they tried to have the two parties work together to remove the water drainage and correct whatever needed to be fix, and the changes had improved the property and value of the street. He was sorry the Planning Commission had 32 i .;�' r .�r`"1���� � PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 22, 2009 made negative comments after the two parties had reached an agreement. He was also sorry that Mr. Toia was given the impression everything would be okay with the agreement thinking the Planning Commission would approve it, although he didn't know if that was actual fact. He said it was the worse thing in the world to have two neighbors upset with each other. He said he would be voting in favor of staff's recommendation. Mayor Pro Tem Finerty moved to, by Motion, uphold the decision of the Planning Commission to deny the Variance and deny the appeal. Motion was seconded by Benson and carried by a 3-1 vote, with Mayor Spiegel voting NO and Councilman Kelly ABSENT. XVIII. REPORTS AND REMARKS A. CITY MANAGER None B. CITY ATTORNEY None C. CITY CLERK Ms. Klassen announced that a date was confirmed forthe City Councif Study Session to receive the Project Status Update. It would be Tuesday, February 10, 2009, at 1:00 p.m. in the Administrative Conference Room (ACR). D. PUBLIC SAFETY o Fire Department None o Police Department None 33 �, v�� �, �� ��� PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 22, 2009 E. MAYOR AND MEMBERS OF THE CITY COUNCIL o City Council Reauests for Action: 1. Fashion Week — Councilman Kelly noted that while he was recused from Pubfic Hearing A during this meeting, he became aware of new information regarding the City's sponsorship of Fashion Week. He learned that the $100,000 approval would probably not be sufficient to allow the organizers to carry out the event this year. He asked if his colleagues would reconsider the matter. Councilman Kelly moved to, by Minute Motion, reconsider Section XIV - New Business, Item B - Presenting Sponsorship of Fashion Week 2009. Motion was seconded by Ferguson and carried by 5-0 vote. Please refer to Section XIV - New Business, Item B for the subsequent discussion and action on this reconsideration. o City Council Committee Reports: 1. Report from Public Safety Commission Subcommittee on Emergency Preparedness (Mayor Pro Tem Cindy Finerty). Mayor Pro Tem Finerty called attention to the report provided in the agenda packets. She believed CERT was a great program and looked forward to bringing back all of the recommendations there will be, while being mindful of fiscal responsibility. o City Council Comments: 1. Code Compliance — In addition to Councilman Ferguson's remarks earlier in the meeting about the annual Code Compliance report, Mayor Pro Tem Finerty also thanked Code Compliance for its good work. She appreciated the proactive work done by Code in keeping the City nice, neat, and clean— it was a job well done. 2. Palm Desert Chamber of Commerce — Mayor Spiegel again congratulated Palm Desert Chamber of Commerce President/CEO Barbara deBoom for the grand opening of their new offices at the Henderson Community Building last evening. Councilman Kelly offered his apologies to Ms. deBoom for his absence at last night's reception, noting that he'd fully intended 34 � � �""� PRELIMINARY MINUTES �.����`� � REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 22, 2009 to be there, but two other commitments prevented him from doing so. 3. Visitor Information Center- Mayor Spiegel distributed to each of his colleagues a discount brochure that was being provided at the City's Visitor Center. He called attention to the Desert Willow Golf Resort, which offered a 20% discount from any restaurant item and for any purchase of a regularly priced item in the Pro Shop. XIX. ADJOURNMENT On a motion by Ferguson, second by Spiegel, and unanimous vote of the City Council, Mayor Spiegel adjourned the meeting at 6:18 p.m. ROBERT A. SPIEGEL, MAYOR ATTEST: RACHELLE D. KLASSEN, CITY CLERK PALM DESERT CITY COUNCIL 35