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Home My WebLink AboutPrelim - CC - 12/11/08 �T PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING THURSDAY, DECEMBER 11, 2008 CIVIC CENTER COUNCIL CHAMBER 73510 FRED WARING DRIVE, PALM DESERT, CA 92260 I. CALL TO ORDER - 3:00 P.M. Mayor Benson convened the meeting at 3:02 p.m. II. ROLL CALL Present: Counciiman Jim Ferguson Councilmember Cindy Finerty arrived at 4:00 p.m. Councilman Richard S. Kelly Mayor Pro Tem Robert A. Spiegel Mayor Jean M. Benson Also Present: Carlos L. Ortega, City Manager/RDA Executive Director David J. Erwin, City Attorney Sheila R. Gilligan, ACM for Community Services Homer Croy, ACM for Development Services Justin McCarthy, ACM for Redevelopment Stephen Y. Aryan, Assistant to the City Manager Rachelle D. Klassen, City Clerk 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. 111. ORAL COMMUNICATIONS - A (CLOSED SESSION ITEMS) None .„�� ;��' PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING DECEMBER 11, 2008 IV. ADJOURN TO CLOSED SESSION Rec�uest for Ciosed 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 108, Palm Desert. Negotiating Parties: Agency: Carlos L. Ortega/Paul S. Gibson/City of Palm Desert Property Owner: City of Palm Desert Other Parties: Senate Rules Committee of California Under Negotiation: x Price x Terms of Payment 2) Property: Lease Property - Parkview Professional Office Complex- 73710 Fred Waring Drive, Suite 116, Palm Desert. Negotiating Parties: Agency: Carlos L. Ortega/Paul S. Gibson/City of Palm Desert Property Owner: City of Palm Desert Other Parties: Assembty Committee on Rules, State of California Under Negotiations: 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 Mr. Erwin asked forthe City Council's consideration of adding an item to the agenda for Closed Session having to do with Public Employment (G. C. 54957). Councilman Spiegel moved to add the following Public Employment item to the agenda. Motion was seconded by Ferguson and carried by 4-0 vote of the City Council, with Finerty ABSENT. Public Employment pursuant to Government Code Section 54957: Title of Position: City Manager 2 ?€.�-�;�£ r;� ;� 'mw� #;. PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING DECEMBER 11, 2008 Upon a motion by Ferguson, second by Spiegel, and 4-0 vote of the City Council, with Finerty ABSENT, Mayor Benson adjourned the meeting to Closed Session at 3:03 p.m. She reconvened the meeting at 4:03 p.m. V. RECONVENE REGULAR MEETING - 4:00 P.M. A. REPORT ON ACTION FROM CLOSED SESSION. NOTE: After consideration of Section X- Consent Calendar, and Section XIV- New Business Items A and B, the following report was given. Mr. Ortega read from a prepared statement, announcing that after 30 years of employment with the City of Palm Desert, he would be retiring effective December 30, 2008. He noted that all together, he had been in City Government for more than 36 years, most of them with Palm Desert and some with the City of Coachella. He thanked the City Council and the community for the opportunities he'd been given over the last 30 years and noted that he was also blessed with the best employees anywhere. For him, working for the City of Palm Desert was more than a job, it was his career and his life, and he and his family would always be grateful. The things that make Palm Desert great are its people and its progressive outlook. He recalled his many important milestones,first as Assistant City Manager,then Director of the Redevelopment Agency, and City Manager, and he was confident that the City would be left in good hands thanks to the great team that was in place. He quoted Lou Gehrig upon his retirement from baseball, today considering himself the luckiest man in the world. He offered to serve the City Council in an advisory capacity after his retirement to assist with completion of some unfinished City projects and whomever the City Council appoints either as interim or permanent City Manager. Mayor Spiegel responded that the City Council accepts Mr. Ortega's resignation with great regret. He went on to say that in his opinion Carlos was the best because he was an easy person to work with, always available, gave 110%, put in unbelievable amount of hours, ran a great City, and was a terrific guy who would be dearly missed. He's glad Mr. Ortega offered to stay with the City and help out for the next period of time. He said the Council selected Mr.Justin McCarthyto be the interim City Managereffective December 31, 2008, and he's accepted that position. He noted this would be the last City Council meeting of the year. Councilman Ferguson said many enjoyed the benefits and services of Palm Desert, like the upkeep of the roads, recreational facilities,the public art, and comments made by other cities who want to follow Palm Desert's example. He said Palm Desert didn't start out that way, it started out as a 3 i �r:"' PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING DECEMBER 11, 2008 near-bankrupted city and a flood in 1976, until the City hired a guy name Carlos Ortega who figured out how to use Redevelopment Agency law to put in flood control work to generate revenue for the City. For the last three decades, just about anything that was great about Palm Desert, had come directly from Carlos. He was confident that all the benefits enjoyed for the next three decades, that one could look back and thank Mr. Ortega for it. On a personal level, he said he knew Mr. Ortega for 15 years, and it broke his heart to hear him announce his retirement, but he understood the reasons why. He said Carlos will be dearly missed. Councilman Kelly stated it's been his privilege to work with Mr. Ortega, not just for the 26 years he's been on the City Council, but prior to that, as a manager for The Telephone Company. He said the Governor was getting ready to take some of the City's money, but the City was fortunate that it wasn't required to pay 1% of the money Carlos made for the City or it would be bankrupt for sure. He said he will miss his working relationship with Carlos, but also his personal one with him and his family, playing golf with him, and traveling with him. He's wasn't just the best City Manager in the world, but a wonderful friend and great traveling companion. He knew there would be a lot more associations in the future with Carlos and wished him the best in his endeavors as he retired from the City of Palm Desert. He thanked Mr. Ortega for whaYs he done for the City. Councilmember Benson said it was really a sad day for the City of Palm Desert, and it had all been said already. She said Carlos was really the heart of the City, and his heart had always been in the City. She's seen his family grow, from his children being born through to their careers, so he truly was family and not just an employee; she said everyone that worked at the City was embraced and cherished. She went on to say Mr. Ortega had gone above and beyond what any City Manager in this Valley had even attempted to do, and he will be missed; the City will never be the same. She said the Council will do their best to honor all the things that he's accomplished and wished him well. VI. PLEDGE OF ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA - Councilman Richard S. Kelly VII. INVOCATION - Mayor Jean M. Benson 4 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING DECEMBER 11, 2008 VIII. ORAL COMMUNICATIONS - B MS. LIZ NABIE addressed the City Council on behalf of Desertarc, Palm Desert. She said they wanted to thank the City of Palm Desert for its support over the past year, including participation in the Palm Desert Energy Program, which provided funds to replace several old and inefficient air conditioning units. Additionally, they had just begun a renovation project to update the facility's oldest building, being made possible with the Block Grant (CDBG) for 2008-2009. Through the City's continuous support, she related that Desertarc was able to serve over 600 developmentally disabled adults by providing programs such as vocational training, supported employment, and independent living. MR. BILL MEYERS, A Valley Cabosine, Palm Desert, commented that after 25+ years of providing cab service in the City, he was in danger of being unable to offer it here any longer because of the ways in which SunLine Transit Agency was trying to get franchises started or co-oped. He said it would force him to do things that he probably wouldn't be capable of performing —while he would be hurt to be put out of business by competition, it would be easier for him to take than having it happen because of over-regulation. He'd operated a smallertaxicab service by choice; but next March it appeared that SunLine wanted him to be a much larger operation in order to continue. At his age, he didn't want the responsibility of running 50-55 cabs; he wanted to run the size of business that was right for him, possibly increase the size slightly, but at his discretion. He asked the City Council for its help in discouraging SunLine from its intent to require taxicab franchising so that he could continue operating his business in Palm Desert and serving its citizens. In return, if there was anyone who complained to the City about his service, he wanted to know about it and wanted to make it right. He and those who worked for A Valley Cabosine Company worked very hard to provide good service to Palm Desert 365 days/year. IX. AWARDS, PRESENTATIONS, AND APPOINTMENTS A. PRESENTATION TO MAYOR JEAN M. BENSON BY THE 2008 COACHELLA VALLEY WOMEN MAYORS. City of Desert Hot Springs Mayor Yvonne Parks, City of Indian Wells past Mayor Mary Roche, and City of Indio past Mayor Lupe Ramos Watson presented Mayor Benson with a framed proclamation, recognizing her fifth term as Mayor of the City of Palm Desert in 2008, along with the historic precedent of five Coachella Valley Cities served by Women Mayors this year: Kathleen DeRosa, City of Cathedral City; Yvonne Parks, City of Desert Hot Springs; Jean Benson, City of Palm Desert; Mary Roche, City of Indian Wells, and Lupe Ramos Watson, City of Indio. Mayor Parks went on to recognize all of Mayor Benson's accomplishments in both the City and 5 ,�,�;Y �q "eHn ' � �`�� PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING DECEMBER 11, 2008 regionally, and commended her global view for governance that had made a positive impact on all residents of the Coachella Valley and Riverside County. Councilmember Ramos Watson also read from a proclamation presented at a recent Women Leaders Forum where the five women Mayors spoke on a panel, in recognition of the politically historic year of 2008, in which women ran for both President and Vice President of the United States of America and women served as Mayor of five of the cities in the Coachella Valley. B. PRESENTATION OF CITY OF PALM DESERT 30-YEAR EMPLOYEE SERVICE AWARD TO PATRICK CONLON. On behalf of the City Council, Mayor Benson presented Mr. Conlon with his 30-year lapel pin, which was not available for presentation during the City's Employee Service Award Recognition on Saturday evening, December 6. She provided heartfelt congratulations, vividly recalling being with the City herself when Mr. Conlon was hired, and she was pleased to be able to recognize this employment anniversary milestone. X. CONSENT CALENDAR A. MINUTES of the Adjourned Regular City Council Meeting of November 20, 2008. Rec: Approve as presented. B. CLAIMS AND DEMANDS AGAINST THE CITY TREASURY - Warrant Nos. 118, 119, 123, and 124. Rec: Approve as presented. C. APPLICATION FOR ALCOHOLIC BEVERAGE LICENSE by Cactus Jacks Bar & Grill, 74-450 Palm Desert Drive, Palm Desert. Rec: Receive and file. 1 D. APPLICATION FOR ALCOHOLIC BEVERAGE LICENSE by Chipotle Mexican Grill, Fred Waring Drive & Highway 111 SWC, Palm Desert. Rec: Receive and file. 6 ��3. �"'��i.t9ti ;' yw L��.fL",k;,,'r.. ��.. .;.�,� .s� PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING DECEMBER 11, 2008 E. APPLICATION FOR ALCOHOLIC BEVERAGE LICENSE by Omri Go Med., 73-675 Highway 111, Palm Desert. Rec: Receive and file. F. APPLICATION FOR ALCOHOLIC BEVERAGE LICENSE by Saini Brothers Inc., 73-980 Highway 111, Palm Desert. Rec: Receive and file. G. CITY COMMITTEE AND COMMISSION MEETING MINUTES. 1. Historic Preservation Committee Meeting of March 25, 2008. 2. Landscape Beautification Committee Meeting of September 17, 2008. 3. Marketing Committee Meeting of October 21, 2008. 4. Public Safety Commission Meetings of September 10 and October 8, 2008. Rec: Receive and file. H. REQUEST FOR RATIFICATION of the City Manager's Authorization for Additional Work on Portola Avenue Related to Contract No. C28040, 2008 Citywide Slurry Seal Program (Project 751-08). Rec: By Minute Motion, ratifythe City Manager's authorization for additional work related to the subject contractwith American Asphalt South, Inc., Fontana, California, in an amount not to exceed $33,054.60 - funds are available in Account No. 110-4311-433-3320. I. REQUEST FOR AUTHORIZATION to Submit an Application for Proposition 1 B Funds for a Pavement Rehabilitation Project. Rec: By Minute Motion, authorize the Director of Public Works to submit an application for Proposition 1 B Funds in the amount of$739,630.24 for a Pavement Rehabilitation Project on Fred Waring Drive in response to a call for projects by the State Department of Finance. J. REQUEST FOR AUTHORIZATION to Release Maintenance Security for Parcel Map No. 33855 (Focus Palm Desert, LLC, Applicant). Rec: By Minute Motion, authorize the City Clerk to release maintenance security for Parcel Map No. 33855. 7 1.� '^�� 4 �� ,r�' �Yt'm. �:� PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING DECEMBER 11, 2008 K. REQUEST FOR AUTHORIZATION to Release Performance Bond for Tract Map No. 31363 (Lomas de Arena, L.P., Applicant). Rec: By Minute Motion, authorize the City Clerk to release Performance Bond for Tract Map No. 31363. L. REQUEST FOR AWARD OF BID for the Joe Mann Dog Park Fence Replacement (Contract No. C28350). Rec: By Minute Motion, award subject contract to JD Landscaping, Indio, California, in an amount not to exceed $34,670. Funds are available for this project in Park Funds 233-4618-454-4001 ($25,000), and 233-4674-454-4001 ($9,670). Continued to the meeting of January 8, 2009. M. REQUEST FOR APPROVAL of Refund of Building Permit Fees for 42-480 lowa Street, Palm Desert (Ellen Lane Myers, Applicant). Rec: By Minute Motion, approve refund of Building Permit Fees in the amount of $208.00 for Building Permit No. 08-00045010 for project located at 42-480 lowa Street, Palm Desert, in accordance with Title 15.24.160 of the Palm Desert Municipal Code. Funds are available in Account No. 110-0000-322-1100. N. REQUEST FOR APPROVAL to Permit the Sale, Possession and Consumption of Alcoholic Beverages on City-owned Property in Conjunction with the Palm Desert Chamber of Commerce Mixer/Opening Scheduled to be Held January 21, 2009. Rec: By Minute Motion, permit the sale, possession and/or consumption of alcoholic beverages on City owned property in conjunction with a special event,the Palm Desert Chamberof Commerce mixer/opening scheduled to be held January 21, 2009. O. REQUEST FOR APPROVAL for Reduction of Bond Amounts for Tract No. 31490-1 (Ponderosa Homes II, Inc., Applicant). Rec: By Minute Motion, reduce the bond amounts for Ponderosa Homes II, Inc., Tract No. 31490-1 from $3,414,437.00 to $2,457,101.00 for Faithful Performance and $1,707,218.50 to $1,228,551.00 for Labor and Materials. 8 "l�,A^t�q! � I�n�np� � e� �.��t ., i`� PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING DECEMBER 11, 2008 P. REQUEST FOR RATIFICATION of Amendment No. 1 to Contract No. C28060 for Supplemental Professional Services for the Palm Desert Community/Aquatic Center Project. Rec: By Minute Motion, ratify the City Manager's approval to approve and execute Amendment No. 1 for supplemental professional services with gkkworks, Irvine, California, in an amount notto exceed $14,150. Funds are available in the Parks and Recreation Facilities Fund 233-4602-454-4001. Q. REQUEST FOR AUTHORIZATION of City Manager to Execute the Net Metering and Interconnection Agreement No. NM6707.1 with Southern California Edison for the Henderson Community Building Photovoltaic System (Contract No.C28360). Rec: By Minute Motion, authorize the City Manager to enter into an agreement with Southern California Edison for the Net Metering and Interconnection of the photovoltaic system at the Henderson Community Building. R. REQUEST FOR AWARD OF CONTRACT for Washington Street at Eastbound I-10 On-Ramp Embankment Repairs (Contract No. C28370) (Project No. 958-08). Rec: By Minute Motion: 1) Award the subject contract to Carter Engineering, Inc., Imperial, California, in the amount of $26,350; 2) approve a 10% contingency of$2,635; and 3) authorize the Mayor to execute the agreement - funds are available in Account No. 110-4614-453-3370. S. REQUEST FOR APPROVAL to Expend Cal COPS Grant Funds (Supplemental Law Enforcement Services Fund - SLESF) to Purchase Equipment for Fiscal Year 2008/2009. Rec: By Minute Motion, authorize the expenditure of FY 2008/09 Cal COPS Grant Funds in the amount of $2,565.45 for the purchase of various items to be used by Officer Steve Rivera and K-9 Van Snapp. No appropriation is needed or requested. 9 � �, ,�, �+�.�+ PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING DECEMBER 11, 2008 T. REQUEST FOR APPROVAL to Expend Cal COPS Grant Funds (Supplemental Law Enforcement Services Fund - SLESF)to Purchase Five Fujitsu SCANSNAP F510 Instant PDF Sheet Feed Scanners - Fiscal Year 2008/2009. Rec: By Minute Motion, authorize the expenditure of FY 2008/09 Cal COPS Grant Funds combined with J.A.G. Grant Funds to purchase five Fujitsu SCANSNAP F510 Instant PDF Sheet Feed Scanners in the amount of $2,482.78. Funds are available in the above listed accounts, and no appropriation is needed or requested. U. REQUEST FOR APPROVAL to Expend Cal COPS Grant Funds (Supplemental Law Enforcement Services Fund - SLESF)to Purchase One Pro-Laser III Lidar - Fiscal Year 2008/2009. Rec: By Minute Motion, authorize the expenditure of FY 2008/09 Cal COPS Grant Funds to purchase one Pro-Laser III Lidar in the amount of $3,153.75. No appropriation is needed or requested. V. REQUEST FOR APPROVAL of the 2009 Master Consultants List (Joint Consideration with the Palm Desert Redevelopment Agency and the Palm Desert Housing Authority). Rec: By Minute Motion: 1) Approve the 2009 Master Consultants' List appended to the accompanying staff report; 2) authorize staff to negotiate agreements and contract amendments with qualified consultants listed therein, and City Manager/Executive Director to execute same; and 3) approve the proceedings for selection and award of contracts as set forth in this report authorized by Section 3.32.090 of the Palm Desert Municipal Code. W. INFORMATIONAL REPORT on Media Placements and Public Relations Activities Provided by Nancy J. Friedman Public Relations. Rec: Receive and file. X. REPORT - Sustainability Plan Update report dated December 11, 2008. Rec: Receive and file. 10 �r°�� ri m:�� ,.._,.ds ,��...^. �...d��.. .R S: � - + �d ,.. ti: PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING DECEMBER 11, 2008 Mr. Ortega requested Item L be continued to the meeting of January 8, 2009. Upon motion by Spiegel, second by Ferguson, and 5-0 vote of the City Council, the Consent Calendar was approved as presented, including Item L being continued to the meeting of January 8, 2009 XI. CONSENT ITEMS HELD OVER None With City Council concurrence, Mayor Benson suspended the agenda at this point in order to take up Section XIV - New Business, Items A and B, to declare the results of the 2008 General Municipal Election and install the newly elected Councilmembers. Please see that portion of the Minutes for subsequent discussion and action. XII. RESOLUTIONS A. RESOLUTION NO. 08-105 -A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, AUTHORIZING THE FINANCE DEPARTMENT TO ESTABLISH AN ACCOUNT FOR COLLECTION OF FEES REQUIRED BY SB 1473. Councilman Ferguson moved to waive further reading and adopt Resolution No. 08-105. Motion was seconded by Kelly and carried by a 4-0 vote, with Finerty ABSENT. B. RESOLUTION NO. 08-106 -A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, APPROVING AND ADOPTING AN AMENDED,APPENDIXTO THE CONFLICT OF INTEREST CODE PURSUANT TO THE POLITICAL REFORM ACT OF 1974. Councilmember Benson moved to waive further reading and adopt Resolution No. 08-106. Motion was seconded by Ferguson and carried by a 4-0 vote, with Finerty ABSENT. 11 "'R�... rn� m,�:, �xyPs;sr.�}�,. . � ,.sf �`.a�..� .,. i PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING DECEMBER 11, 2008 XIII. ORDINANCES For Introduction: A. ORDINANCE NO. 1177 - AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, AMENDING ORDINANCE NO. 573, INCREASING THE NOTICE OF APPEAL PERIOD FOR THE TRANSPORTATION UNIFORM MITIGATION FEE(TUMF)FROM 15 DAYS TO 90 DAYS FROM IMPOSITION OF THE FEE. Responding to question, Councilman Kelly replied this amended needed to be done. Councilman Ferguson moved to waive further reading and pass Ordinance No. 1177 to second reading. Motion was seconded by Kelly and carried by a 4-0 vote, with Finerty ABSENT. For Adoption: A. ORDINANCE NO. 1170 - AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, AMENDING CHAPTER 9.24 NOISE CONTROL. Councilman Ferguson moved to waive further reading and adopt Ordinance No. 1170. Motion was seconded by Kelly and carried by a 4-0 vote, with Finerty ABSENT. B. ORDINANCE NO. 1172 - AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, ADOPTING CHAPTER 9.25 REGARDING MULTIPLE RESPONSES TO LOUD OR UNRULY PARTIES, GATHERINGS OR OTHER SIMILAR EVENTS. Councilman Kelly moved to waive further reading and adopt Ordinance No. 1172. Motion was seconded by Ferguson and carried by a 4-0 vote, with Finerty ABSENT. Councilmember Benson asked if notification of the adoption of this Ordinance would be sent out to all the City's establishments. Ms. Aylaian replied that it would. 12 ��-� �� '� � � .;��. PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING DECEMBER 11, 2008 C. ORDINANCE NO. 1174 - AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, AMENDING SECTIONS OF CHAPTER 10.76 RELATED TO GOLF CARTS. Councilman Ferguson moved to waive further reading and adopt Ordinance No. 1174. Motion was seconded by Kelly and carried by a 4-0 vote. Councilman Kelly said additional correspondence was received regarding golf carts, and if it was okay with Council, he would meet with those individuals to work on those problems. Mayor Spiegel agreed. D. ORDINANCE NO. 1175 - AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM DESERT,CALIFORNIA,AMENDING CHAPTER 17 OF THE PALM DESERT MUNICIPAL CODE BY ADDING TITLE 17 RELATIVE TO PROCEDURES FOR THE ISSUANCE AND SALE OF BONDS IN CONNECTION WITH CHAPTER 29 OF PART 3 OF DIVISION 7 OF THE CALIFORNIA STREETS AND HIGHWAYS CODE. Councilman Ferguson moved to waive further reading and adopt Ordinance No. 1175. Motion was seconded by Benson and carried by a 4-0 vote with Finerty ABSENT. E. ORDINANCE NO. 1176 - AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, AMENDING SECTION 25.15 REMOVING SECTION 25.15.130 AS IT RELATES TO OPTIONAL PRELIMINARY APPROVAL PROCEDURES IN THE HILLSIDE PLANNED RESIDENTIAL ZONE Case No. ZOA 08-392 (City of Palm Desert, Applicant). Councilman Ferguson moved to waive further reading and adopt Ordinance No. 1176. Motion was seconded by Benson and carried by a 4-0 vote, with Finerty ABSENT. 13 g � , r�'� � Y �i�,� PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING DECEMBER 11, 2008 XIV. NEW BUSINESS ***NOTE: NEW BUSINESS ITEMS A AND B WERE CONSIDERED IMMEDIATELY FOLLOWING SECTION X - CONSENT CALENDAR.*** A. DECLARATION OF THE RESULT OF THE 2008 PALM DESERT GENERAL MUNICIPAL ELECTION, CONDUCTED IN THE CITY ON TUESDAY, NOVEMBER 4. Councilman Ferguson moved to waive further reading and adopt Resolution No. 08-107, reciting the fact of the General Municipal Election held on Tuesday, November 4, 2008, declaring the results and such other matters as provided by law. Motion was seconded by Finerty and carried by 5-0 vote. B. INSTALLATION OF NEWLY ELECTED COUNCILMEMBERS AND ANNUAL MAYORAL ROTATION. 1) City Clerk administers the Oath of Office to Newly Elected Councilmembers and presents each with Certificate of Election. 2) Seating and Comments from Newly Elected Councilmembers. 3) Comments from Outgoing Mayor and Mayor Pro-Tempore. 4) Selection of Mayor and Mayor Pro-Tempore. 5) Comments from the NewlyAppointed Mayor and Mayor Pro-Tempore. Councilman Ferguson appointed Robert A. Spiegel as Mayor and Cindy Finerty as Mayor Pro Tem for the coming year. Motion was seconded by Benson and carried by a 5-0 vote. City Clerk Rachelle Klassen administered the Oath of Office to newly elected Councilmembers Cindy Finerty, Robert A. Spiegel, and Richard S. Kelly and presented them with a Certificate of Election. Councilman Kelly thanked all the citizens of City of Palm Desert for their confidence in him and allowing him to serve for another four years. He said it was a humbling experience, and that obviously the citizens didn't demonstrate age-discrimination, and his primary objective would be to stay alive for another four years. Mayor Pro Tem Finerty said it was quite an honor for her, noting she was elected two years ago, and this year having the privilege of being the top-vote getter. She sent a heartfelt thanks to all the resident in Palm Desert because they paid attention to the issues, were very involved, and were the smartest electorate she had the fortune of working with. She looked fonivard to working with this Council and serve as Mayor Spiegel's right-hand. 14 �, �a �� J� � ,:. L �'•_,� "� �''�v� PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING DECEMBER 11, 2008 Mayor Spiegel expressed his appreciation and hoped the next four years would be as good as the past 13. Councilmember Benson thanked her "Compadres" for showing up this evening, stating it was a thrill how she and fellow women mayors of the Coachella Valley had been received in the community. She said it was quite a phenomenon to have five lady mayors in the Coachella Valley, and it may never happen again, so it really was part of history. She thanked staff for their support during this past challenging year, stating the following year would be likewise. She said it was a credit to staff for what the City was today. She also thanked her colleagues and echoed Mayor Pro Tem Finerty's comments that it was an honor to serve the residents, and an honor to live in the City of Palm Desert. She said anything this Council did was for the benefit of the City and hoped it will always continue to be that way. Mayor Spiegel stated this past year was successful with the opening of the Henderson Building and Nursing Building at Cal State San Bernardino,which was spectacular. He said it was a contentious year, and he was glad that it was over. Mayor Pro Tem Finerty stated this coming year would be a learning experience for when she becomes Mayor, and looked forward to being a team player because although she would be Mayor Pro Tem, she recognized all Councilmembers carried the same weight. She planned to get involved in those things the Mayor and Mayor Pro Tem did, especially with budget, economy, and financial concerns, which were a passion of hers. She also looked forward to working with staff and relying on them more than ever. She said it was a privilege to continue to learn from the vast knowledge and experience that surrounded her, and she appreciated that honor as well. Mayor Spiegel stated the upcoming year would be tough, and it was the first year in the history of Palm Desert the City had to dip into its reserve. He quoted Kate Kaufman from the Desert Sun, who stated "that's what a Reserve was for." He said the Council didn't want to cut any services, and his plan was not to see any major ones cut. He said the Council will have to watch it's "P's and Q's" and spend wisely, because the City's revenue would be down. On the other hand, Council will have to work towards making sure the Nordstrom's and the expansion on EI Paseo happened because sales tax was the General Fund's No. 1 revenue source; Council will need to work with Westfield, the Gardens, and the hotels. He said there were four hotels on the drawing board (one on EI Paseo and three out by Cal State and UCR) that Council needs to move forward because hotel occupancy tax was the No. 2 revenue source. He said those were the objectives and believed the Council joined him in those sentiments, and they will try to be as economically successful as they possibly could. 15 � .�,,� �", �:��N� V .�� z: ;.:s�, w �� u�: "e �� PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING DECEMBER 11, 2008 NOTE: Mayor Pro Tem Finerty left the meeting at 4:27 p.m. C. CONSIDERATION OF ORDINANCES RELATED TO NOISE CONTROL, REINSTATING/AMENDING CHAPTER 9.24 AS THEY RELATE TO COMMERCIAL LOT SWEEPING. Ms. Aylaian stated there was a clause that was inadvertently omitted from the new Noise Ordinance, and this action would reinstate it, which was basically a housekeeping item. She offered to answer questions. Councilman Kelly moved to waive further reading and: 1)Adopt Urgency Ordinance No. 1178, Reinstating Chapter 9.24.065 (Parking Lot Sweepers) to Chapter 9.24 (Noise Control); 2) Pass Ordinance No. 1179 to second reading, Reinstating Section 9.24.065 (Parking Lot Sweepers) to Chapter 9.24 (Noise Control). Motion was seconded by Ferguson and carried by a 4-0 vote, with Finerty ABSENT. D. REQUEST FORAPPROVAL TO AWARD CONTRACT FOR FABRICATION AND INSTALLATION OF RETENTION BASIN FENCING (CONTRACT NO. C28050, PROJECT NO. 627F-08). Mr. Ortega noted staff was requesting this item be continued to the first meeting in January. Councilman Ferguson moved to continue this item to the meeting of January 8, 2009. Motion was seconded by Kelly, and carried by a 4-0 vote, with Finerty ABSENT. E. REQUEST FOR APPROVAL OF THE REALLOCATION OF CONGESTION MITIGATION AND AIR QUALITY (CMAQ) GRANT FUNDS FROM THE FREDWARING-MONTEREYAVENUETURN POCKETPROJECTTOTHE MID-VALLEY BIKE PATH PROJECTAND AUTHORIZE STAFF TO SUBMIT THE REQUEST TO THE COACHELLA VALLEY ASSOCIATION OF GOVERNMENTS (CVAG). Responding to question, Mr. Greenwood said the recommendation was to transfer$1.1 million from the Fred Waring-Monterey Projectto the Mid-Valley Bike Path project; both were CMAQ projects. The Mid-Valley Bike Path project recently lost funds due to reallocation, so staff wanted to assure it's funding. The reason for moving money from the Fred Waring-Monterey Avenue project was that the criteria was relatively weak, and staff was not certain Caltrans would ultimately approve that project, but they were certain the Bike Path project would be. Councilman Ferguson asked if there was another vehicle transportation corner this money could be applied to. 16 �� ,� �:�� PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING DECEMBER 11, 2008 Mr. Greenwood explained funds could only be transferred to one of the eight CMAQ projects the City was awarded, and staff chose the Bike Path project because it had recently lost part of its funding. Staff could have transferred it to other CMAQ projects, but they didn't need funding. Further responding, he agreed there would be more vehicles on Fred Waring and Monterey than there would be bicycles on the Mid-Valley Bike Path project. Councilman Kelly added this was something the City needed to do because CMAQ funds were different than most grants, and bicycle paths were very popular for granting funds to. He said the City of Palm Desert received the lion's share of the CMAQ money when it was distributed, and it was actually ahead of the game. Councilman Ferguson moved to, by Minute Motion, approve the reallocation of $1,100,000 of CMAQ grant funds for the Fred Waring-Monterey Avenue Turn Pocket project to the Mid-Valley Bike Path project, and authorize staff to submit this request to the Coachella Valley Association of Governments. Motion was seconded by Benson and carried by a 4-0 vote, with Finerty ABSENT. F. REQUEST FOR CONSIDERATION TO APPROVE DESIGN PROPOSAL "FAMILY OF THE COACHELLA VALLEY" BY DR. PAUL FLANAGAN FOR THE VINEYARDS AT PALM DESERT DEVELOPMENT. Responding to question, Public Arts Manager Richard Twedt said the actual cost was estimated to be$93,000, and $74,000 was the amount paid into the Art in Public Places(AIPP). Upon request, he showed a color picture of the renderings to the Council. Councilmember Benson said the piece was presented to the AIPP Committee, and it was unanimously approved. She said it will be a very pretty piece when finished; she understood the stone being used was very rare. Mr. Twedt stated the Committee recommended the piece be located next to the clubhouse, which was accessible to the public. Because of the scale of the piece, the Committee thought it woutd be much more inviting to experience the piece on foot versus a car passing by at 45 mph. Councilmember Benson moved to, by Minute Motion: 1) Approve Dr. Paul Flanagan's design as the public art component for the Vineyards at Palm Desert Development located at 36-700 College Street, Palm Desert, California; 2) approve future reimbursement in the amount of $74,152.26, as part of the Art in Public Places art component fee for this project - funds are available in Account No. 436-0000-312-2700. Motion was seconded by Ferguson and carried by a 4-0 vote, with Finerty ABSENT. 17 �' ` � `�te .��Mr a�� E . � ._ �a `��Lc� � PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING DECEMBER 11, 2008 G. REQUEST FOR STAFF DIRECTION OR COURSE OF ACTION REGARDING THE UNAUTHORIZED APPLICATION OF ARTISTIC TREATMENTS TO TRAFFIC SIGNAL CABINET. Mr. Greenwood stated the owner of the property on the northeast corner of Highway111 and Parkview painted the traffic signal cabinet with an artistic treatment; he took the cue from the signal cabinet the City painted on EI Paseo. Staff was requesting Council guidance on how to handle this matter. In discussions with staff, they thought it would be best if treatments were approved by Art in Public Places Committee (AIPP) prior to cabinets being painted. Mayor Benson stated Mr. Twedt recently gave her a map of all the utility boxes within the City of Palm Desert, and she happened to think the ones on EI Paseo looked great. She said with all the landscaping the City had along Fred Waring and all other decorative things, the two or three cabinets along EI Paseo stood out like a sore thumb. In discussion with the City Manager, he suggested the City establish an artistic criteria for the cabinets that would be painted, and that approval from the City be obtained. She suggested AIPP develop the criteria and process, and also inform the public of what will be required. She felt more cabinets needed to be painted within the City Center because the painted cabinet could add to the great landscaping if done in a tasteful manner. Mayor Spiegel said funds set aside for AIPP could be used towards those cabinets that weren't done. Councilman Kelly stated that whatever criteria was decided, that the design not become an advertisement for their particular location. He thought one of the cabinets that was already done looked like an ad, but he thought the landscaping one was beautiful. Councilman Ferguson stated there was no way to beautify the utility boxes, and he agreed with Councilman Kelly that they needed to blend in as part of the landscape rather than try to make art out of something that was clearly a utility box. Mayor Spiegel suggested this matter be continued and referred back to the AIPP to develop the guidelines. Councilman Ferguson moved to, by Minute Motion, continue the matter and refer it to Art In Public Places Commission for development of program guidelines for application of artistic treatments on traffic signal cabinets in the City. Motion was seconded by Kelly and carried by a 4-0 vote, with Finerty ABSENT. 18 �'� �� ..�w��> 9�`r�� s` ., �.-.y. i_�. t t..u` �.,,! a� PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING DECEMBER 11, 2008 XV. CONTINUED BUSINESS A. REQUEST FORAUTHORIZATION FORSTAFF TO SUBMIT FIRST DRAFT OF THE GENERAL PLAN 2008 HOUSING ELEMENT UPDATE TO THE STATE DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT (Continued from the meetings of June 26, July 10, and August 28, 2008). MS. NICOLE CRISTE, Housing Element Consultant with Terra Nova Planning and Research, stated staff had been working with the subcommittee on the direction that Council had given in the past, but it was a complex process, and staff was requesting a continuance of 60 days to the meeting of February 26, 2009. Councilman Ferguson asked what would that do to the City's submission to the Housing and Community Development (HCD). MS. CRISTE responded it would be delayed to February 26, 2009, with no penalty for tardy submittals. Councilman Kelly hoped the Housing Element would reflect the downturn and number of houses being built. He said the Regional Housing Needs Allocation (RHNA) numbers were based on something that's never going to happen, and he hoped it will be based on the City's own projections. MS. CRISTE agreed, and stated staff would continue to work with Councilmembers on the language for the draft Ordinance and make the Housing Element work for the City. Councilman Ferguson noted the Housing Element had been continued since June 26, 2008. Councilman Kelly moved to, by Minute Motion, continue this matter to the meeting of February 26, 2009. Motion was seconded by Ferguson and carried by a 4-0 vote, with Finerty ABSENT. 19 '-j �* t � � �tem�,n��ys. Tn �� .,,.k�� '.�=!'S. PRELIMINARY MINUTES `�� .y"` � REGULAR PALM DESERT CITY COUNCIL MEETING DECEMBER 11, 2008 B. RESOLUTION NO. 08-101 -A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, AMENDING ITS RESOLUTION NOS. 07-72 AND 02-8, ADOPTING TRAVEL EXPENSE GUIDELINES FOR CITY REPRESENTATIVES, OFFICIALS, AND EMPLOYEES (Continued from the meeting of November 20, 2008). Councilman Ferguson moved to waive further reading and adopt Resolution No. 08-101. Motion was seconded by Benson and carried by a 3-1 vote, with Kelly voting NO and Finerty ABSENT. C. ORDINANCE NO. 1173 - AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, AMENDING SPECIFIED CHAPTERS OF THE CITY MUNICIPAL CODE, TO ADOPT THE 2007 EDITIONS OF THE CALIFORNIA CODES AND RELATED MODEL CODES WITH SELECTED APPENDICES AND AMENDMENTS THERETO, AND MODIFYING SECTION 8.70.010 AND 8.70.040 OF THE CODE, RELATING TO PROPERTY MAINTENANCE (Continued from the meeting of November 20, 2008). Mr. Grance noted this Ordinance was continued from the November 2p`h meeting. He said there were issues with the address numbering, and he's met with Councilman Kelly and worked out those issues. Staff ran this Ordinance by the Business Industry Association (BIA) and received one comment back relating to sprinklers in the attics,which were multi-family type of occupancies. The BIA was concerned about what the cost impact would be, so staff responded by providing Mr. Fred Bell with information, but had not heard back from him; hopefully his questions were answered. Councilman Ferguson moved to waive further reading and pass Ordinance No. 1173 to second reading. Motion was seconded by Benson and carried by a 4-0 vote, with Finerty ABSENT. Mayor Spiegel congratulated Mr. Grance on how he handled the Cultural Resource Preservation Committee, and stated he was a gem. 20 . .. or,i.�k:�+5'R'£+ . . . . .::':U5 ��W PRELIMINARY MINUTES � _ REGULAR PALM DESERT CITY COUNCIL MEETING DECEMBER 11, 2008 D. REQUEST FOR CONFIRMATION THAT NO CHANGES IN THE PALM DESERT SPHERES OF INFLUENCE ARE ANTICIPATED WITHIN THE NEXT FIVE YEARS (Continued from the meeting of November 20, 2008). MS. CORKY LARSON, Sun City, Palm Desert, stated she was present to address the Palm Desert Sphere of Influence, but first expressed her appreciation of Mr. Ortega, stating it was beautiful what he had accomplished for the City of Palm Desert. She recalled when she was serving as Interim City Manager for the City of Desert Hot Springs (DHS), she came to Mr. Ortega for assistance in dealing with DHS financial issues, and he agreed to lend the City's Financial Directorto help, but also offered the City's consultant; it was a very common response from him. She went on to say Mr. Ortega made the Costco Regional Access project happen when she,the County, and City were in a fight, it was Mr. Ortega who solved that problem. She characterized him as a Saint of the City and the Coachella Valley, and she couldn't thank him enough. Returning to the matter at hand, she introduced the following Board Members from Sun City: David Novick, Carolyn Einung, Ann Leach, Helen McEnerney, Vice President of the Board Don Hein, and General Manager Sandy Seddon. She noted a letter was dropped off for the Council the previous day and presumed the Council had an opportunity to review it. She said it would be a deal for Palm Desert to take back Sun City under its sphere of influence because of all the commercial development within the walls of Sun City, i.e., housing, three clubhouses,$1.75 billion assessed valuation, private streets, private security, and non-resident expenses. She said the Council really needed to take a favorable look at what the area had to offer. Just outside the walls of Sun City were two hotels with a third one about to be built, a Stater Bros., and mammoth commercial revenue possibilities. She asked the Council to return Sun City to its original sphere, which went over to 38th Avenue to Varner Road. She would understand if the Council decided annexation would not be best for the City, but she wanted the chance to show the Council what Sun City had to offer. Initially when Sun City was dropped from Palm Desert's sphere, she thought it would be okay because they had an agreement with the City of Indio; however, she now thought they wouldn't honor it. A study was done that showed exported taxes exceeded the services they received. The study was done by Ruthler & Kelly (sp?), a reputable outfit recommended by George Spiliotis, which she would be happy to share with the Council. MS. HELEN MCENERNEY, stated she was former Vice-President/General Manager of Del Webb California Corp., the developer of Sun City, Palm Desert, and a current resident of Sun City. She said for the past four years she was in Florida building an active adult community, but since her return to the desert this past summer, much to her dismay and surprise, a few changes had taken place at Sun City. One in particular related to the action 21 �, �a,.,�,,a �'r. -6,��,�� , �.. ,��, :': .�;, m„�, � PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING DECEMBER 11, 2008 taken by the City of Indio to place its sphere east of Washington Street and west of Adams Street (north of Sun City and Francis Way right into the foothills). Back in November of 1996 the City of Indio and Del Webb, of which she was a signatory on that agreement, had a written signed agreement regarding annexation. Basically Del Webb would assist in the annexation of property along Varner Road for purposes of auto mall uses, including a triangular parcel, which was 40 acres a.k.a. Capter Parcel. The written agreement was very clear that except for the Capter property,the City of Indio would annex west of Adams Street. However, the City of Indio approved the Indio Trails project last week; it approved and certified an Environmental Impact Report (EIP), Change of Zone, Specific Plan Development Agreement. This now paved the way for annexation west of Adams Street, in direct violation of their agreement. What would prevent the City of Indio from annexing the commercial property south of Sun City along Varner Road and Interstate 10, which incorporates a Coco's, fast food restaurants, gas stations, Stater Bros., Walgreens, shops, motels, and other venues. She recalled in past years, Del Webb worked closely with the City of Palm Desert to change the name Sun City Palm Springs to Sun City Palm Desert, and it assisted with a Palm Desert Post Office and the Washington Street interchange. Even thought Sun City disclosed their homes that were built in an unincorporated Riverside County, Sun City residents always felt a strong bond with the City of Palm Desert. She asked the Council to reconsideration the return of Sun City under Palm Desert's sphere, and also to protect their commercial property. She said at some future point in time, maybe Palm Desert could annex Sun City into the City of Palm Desert. Councilman Ferguson stated he represented Indio Trails and wasn't aware it would be part of this discussion. He recused himself and left the Council . Chamber. MR. DON HEIN, Vice President of the Board for Sun City Community Association, concurred with all the details expressed by the previous speakers on behalf of Sun City. He said they were sincere about wanting to be part of Palm Desert's sphere of influence, and once this matter was reviewed by the Council, they will find that it's probably beneficial to both the City and Sun City residents. MS. MCENERNEY clarified the reinstatement of Sun City into Palm Desert's sphere of influence would not include Indio Trails, which was one-half mile away. Councilmember Benson recalled Sun City was taken out of Palm Desert's sphere of influence because La Quinta was cherry-picking all the way up Washington Street and Sun City was included in that sphere. She said that 22 a�',.�. � n>:u.��q�:a s � ; s1 � ; i�� r``5�, ..r� �c PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING DECEMBER 11, 2008 decision was being reconsidered because another hearing had been scheduled. Councilman Kelly stated when Sun City was taken out of Palm Desert's sphere of influence, the Council didn't hear much concern from its residents. He said it was important to protect Palm Desert's sphere and the people that lived out in Sun City, so he was in favor of applying to have Sun City in Palm Desert's sphere of influence. Responding to question about notifying Local Area Formation Commission (LAFCO), Mr. Ortega reminded Council that a couple of years ago when the issue came up, Palm Desert did a study, and Council decided it was not financially feasible to include Sun City under its sphere because eventually annexation would have been the next step. The commercial area had not been built at that time, so he didn't know if all the potential revenue was included in the study. He suggested Council review the matter again, given the new commercial growth, and see if iYs financially feasible. Councilman Kelly requested staff prepare a map that outlined exactly what was being considered, appoint two Councilmembers to review it, and continue this item to the next City Council Meeting. However, the final decision should not be based solely on the City making money, because it made sense to him that Sun City be under Palm Desert's sphere of influence. He said there was a lot of development on the west side of Sun City, and he thought that area needed to be included with the City's proposal. He had heard the comment that LAFCO thought Palm Desert was vacillating in and out, but it was a poor excuse for not doing what needed to be done. Councilman Kelly moved to continue this item to the next City Council meeting, and direct staff to provide a map that delineated the exact area with street names. Ms. Aylaian noted the Council had two different choices. She said LAFCO needed a letter from the City prior to January 2, 2009, indicating what Palm Desert's intentions were for its sphere of influence for the next five years. If the Council voted this evening to notify LAFCO about wanting to reintroduce Sun City to its sphere of influence, staff could do that. Councilman Kelly modified his motion to send a letterto LAFCO and notifythem that Palm Desert was proposing keeping Sun City under its sphere of influence, and the City will follow-up at a later time. Ms. Aylaian stated the letter to LAFCO would need to include the area it was considering or just the area that was previously detached from Palm Desert's sphere of influence. Further responding, she confirmed the previously 23 � �,1'..? � ,`'a{.. �:lAQ._'r.:%� "4 y� PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING DECEMBER 11, 2008 detached area included the area to the west. She offered a recommendation for Council to consider, and Councilman Kelly agreed with her suggestion. Councilman Kelly moved to, by Minute Motion, directed staff to send a letter to LAFCO, indicating the City of Palm Desert's interest in reintroducing formerly detached area from its Sphere of Influence(Sun City), subject to staff's verification of the lines drawn on the map, such that they include the related commercial area. Motion was seconded by Spiegel and carried by a 3-0 vote, with Ferguson and Finerty ABSENT. Mayor Spiegel stated he hoped representation from Sun City would be present when this matter went to LAFCO. Ms. Larson agreed. E. 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, 2008 and November 24, 2008). Mr. Ortega noted the Audit, Investment & Financing Committee recommendation. He said Council had a proposal on the table from Wells Fargo, and City Consultant Ken Dieker would explain the changes Wells Fargo was willing to make in order address Council's concerns. At the last meeting, Wells Fargo was offering a variable with no cap. He said the Council previously authorized the private placement of$5 million directly with the Redevelopment Agency; so the program had money to work with. He said staff wanted to continue with Wells Fargo's proposal because it provided long-term financing and they were willing to lower the amount the City would have to borrow; however, the initial $10 million proposal was still on the table. He said a representative from Wells Fargo was present to answer questions. MR. KEN DIEKER, Del Rio Advisors, Financial Advisor to the City, stated since the last City Council meeting, Wells Fargo had agreed to finance $5 million versus $10 million; $5 million being the initial amount of loans currently waiting to be funded. In addition, they were willing to work with the City to provide a cap to the interest rate, and that cap would be approximately 5.57% in today's market. When you add the letter of credit, fees, and re-marketing fees, it was approximately the 7% rate, which would match the underlying City's loan rate. In summary, Wells Fargo was willing to finance the $5 million or$10 million and also provide an interest rate cap, which addressed Mayor Pro Tem Finerty's concern. Councilman Ferguson apologized for not being present at the last City Council meeting, but he was meeting with the President of the Public Utilities 24 "—'@F � PS4T^A H�"sltl4 �� ' ` 6�z�ui w1ZA'� `A .��` ;`� PRELIMINARY MINUTES F`� REGULAR PALM DESERT CITY COUNCIL MEETING DECEMBER 11, 2008 Commission who had expressed reservations about private placement funding for the City's Energy Independence Program, Assembly Bill 811. He's been in contact with Supervisor Roy Wilson and expressed a strong preference that the County undertake regionaf funding for the entire County, including Palm Desert. He also spoke with Dan Martinez who expressed a desire to pursue it. He said the Audit, Investment & Finance Committee(AIFC)was willing to look at Wells Fargo's proposal, Renewable Funding, and others the Committee may not deem acceptable. He was amazed that in a recession, there were at least three entities rushing toward Palm Desert wanting to loan the City $5 or $10 million, which was an indication the City needed to do its homework to obtain the best deal. He reiterated, he meant no disrespect to Del Rio Advisor's or Wells Fargo, but he doubted the first offer was the best deal the City could get. Mr. Ortega stated the Council could wait to see what the future brought because the City had money to loan out because the City was authorizing a private placement with the Redevelopment Agency for $5 million, and he doubted it was intended to be loaned out for 20 years. He said staff could continue to work with the folks that were working with Berkeley; however, Mr. Dieker could explain that program was a modest trial proposal. He said there was no consequence for rejecting Wells Fargo's proposal because the City did have money to loan out, but eventually the $5 million will need to be replaced with long-term funding. Councilmember Benson stated the Council had asked the AIFC for their advise and it's been received, and now it needed to wait for Renewable Funding's proposal to make a decision. MR. DIEKER stated he had been in contact with Renewable Funding on their pilot program in Berkeley, but they had not funded any of the loans to date, and they are in the process of doing that now. The interest rate on those loans are 10-year treasury plus 3.25% with a minimum of 6.75%, with the City of Berkeley contributing another percentage point on top of that to about 7.75%, and it could go up from there if the Treasury Rates went up. He would like to entertain Renewable Funding forfuture needs, but their interest rate was unknown because the taxable market was currently in disarray. The only long-term financing option available today was a variable rate transaction on a taxable basis. He knew there was a movement to move these variable rate loans to a tax-exempt facility, so there are other options coming down the road. He said if the County wished to do something county-wide,they would also be looking at the same lease revenue structure because of the security interest issues with AB 811. Councilman Ferguson responding to comments made, stated Berkeley was first approached by Wells Fargo, and they were turned them down for 25 ��> . r � � � ° � ��,. ".. �� PRELIMINARY MINUTES ` `° REGULAR PALM DESERT CITY COUNCIL MEETING DECEMBER 11, 2008 Renewable Funding. Secondly, the stated preference of the Public Utility Commission (PUC) was to make this program replicable for any city in the State of California, not just wealthy one's like Palm Desert. He said the President of PUC liked using County as a vehicle by using their medium and short-term notes as alternative investment in their own communities as opposed to GM, Wachovia, Ford Motor Company, etc. It's the reason the Council asked the AIFC to review it because it was talking about its Restrictive Reserve Funds, not General Fund or Unrestricted Redevelopment Reserve money. He agreed the Council needed to allow the Committee to do their job, find out more about what the County was willing to offer, and take a careful consideration, because the last time he checked, the City wasn't running out of money. Councilman Kelly stated he would not be voting in favor of this item as presented today because the funding was too complicated with all the if's and but's still in the air. Referencing a paragraph under the California Constitution, which stated "is generally not allowed to issue bonds or incur forms of debts secured by a pledge of the General Fund without voter approval, etc...." He said if Council wanted to continue this item, he would be okay with that recommendation. Councilmember Benson stated she couldn't see how the Council could take action when it asked for advise and didn't take it. Responding to question, Mr. Gibson said his preference would be to get a long-term loan because it would take the burden away from the City and Redevelopment Agency, especially in light of the times ahead with the downturn in the economy. The AIFC considered the proposals, and their main comment was "good luck" with a RFP, because it probably wouldn't receive any bids. He said truthfully what had been seen in the market for tax allocation bonds or any other bond, was that unless it paid a premium on interest rate, no offers would be made. He said that was his two cents, and the preference was to go ahead with the Wells Fargo proposal. Councilman Ferguson recommended the Committee take a look at what the Riverside County had to offer, and maybe it would be "good luck" if the City did an RFP, but the alternative to float bonds in this market was insane. He was glad Mr. Ortega was willing to stay on to oversee the financing of the Energy Independence Program because it needed his expertise. Councilman Ferguson moved to, by Minute Motion, continued this matter to the meeting of January 22, 2009, and referred the matter to the Audit, Investment& Finance Committee for further review and recommendation, including the Riverside County proposal. Motion was seconded by Benson and carried by a 4-0 vote, with Finerty ABSENT. 26 �� r:,:. ,:� : PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING DECEMBER 11, 2008 XVI. OLD BUSINESS A. UPDATE ON THE CITY OF PALM DESERT, PALM DESERT REDEVELOPMENT AGENCY, AND PALM DESERT HOUSING AUTHORITY STRATEGIC OBJECTIVES (JOINT CONSIDERATION WITH THE PALM DESERT REDEVELOPMENT AGENCY AND THE PALM DESERT HOUSING AUTHORITY). Councilman/Member Ferguson moved to, by Minute Motion, receive and file the Update on the City of Palm Desert, Palm Desert Redevelopment Agency, and Palm Desert Housing Authority Strategic Objectives. Motion was seconded by Benson and carried by a 3-0 vote, with Finerty and Kelly ABSENT. B. REQUEST FOR CONSIDERATION TO APPROVE HONORARIUMS FOR ARTISTS PHILLIP SMITH AND GREG REICHE FOR THE "EMBRACING THE DESERT LIGHT" PROJECT. Councilmember Benson moved to, by Minute Motion, approve honorariums in the amount of$2,000 to each artist. Funds are available in Account No. 436-4650-454-3010. Motion was seconded by Spiegel and carried by a 3-0 vote, with Finerty and Kelly ABSENT. C. REQUEST FOR CONSIDERATION TO APPROVE MICHELLE O'MICHAEL'S SCULPTURE TITLED"MOON RIVER"AS A REPLACEMENT ARTWORK FOR THE 2009/2010 EL PASEO INVITATIONAL EXHIBITION. Councilmember Benson moved to, by Minute Motion: 1) Approve Michelle O'Michael's sculpture "Moon River" as a replacement artwork for the 2009/2010 EI Paseo Invitational Exhibition; 2) approve an honorarium in the amount of $2,575. Funds are available in Account No. 436-4650-454-4002. Motion was seconded by Ferguson and carried by a 3-0 vote, with Finerty and Kelly ABSENT. D. REQUEST FOR CONSIDERATION TO APPROVE REIMBURSEMENT OF ART IN PUBLIC PLACES (AIPP) FEES FOR THE ART COMPONENT FOR THE DESERT GATEWAY PROJECT (RJ Ventures, Applicant). Councilmember Benson moved to, by Minute Motion, approve the reimbursement of $106,100 for AIPP fees for the art component for the Desert Gateway project located at 34-940 Monterey Avenue, Palm Desert. Funds are available in Account No. 436-0000- 312-2700. Motion was seconded by Ferguson and carried by a 4-0 vote, with Finerty ABSENT. 27 r Y^ x ,;µF PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING DECEMBER 11, 2008 E. PRESENTATION OF WRAP-UP AND PRELIMINARY FIGURES FOR THE 2008 ART OF FOOD & WINE EVENT. Ms. Gilligan noted representatives from Kemper Sport Management and Marketing Manager Kristy Kneiding were available to make a presentation. She said this event was very challenging, and it was the City's third year of having it. Kemper Sport Management moved in and took over, and presented a spectacular event to the City of Palm Desert. This year there were 250 volunteers with a great deal of community involvement. The biggest pleasure this year was the number of City staff that was involved. The event had team leaders for the volunteers that was spearheaded by David Hermann and Donna Gomez. The event had great marketing and it reached nationwide if not international. The event grew as noted in the staff report, and on a personal and professional note, she thanked Amy Harris for all she did. She noted John Clark, CEO Finance for Kemper Sport was present this evening. She said this event was no small undertaking, and it went off successfully. MR. JOHN CLARK, CEO of Finance for Kemper Sports Management stated he hoped the staff report spoke for itself with regard to the attendance being up, and the financial improvement of the event this year over last year. Councilman Ferguson stated the staff report indicated revenues of $1,894,725, and surprisingly expenses were $1,894.725. He asked how much of that amount was cash and how much of it was in-kind on the revenue side. MR. CLARK responded the cash portion was $561,000 from the City, and the cash portion from corporate sponsorship and cash sales were$280,000, which was about $840,000 as cash and a little over$1 million was in-kind. Councilman Ferguson said it was safe to say, that it was a $1 million event on a cash basis accounting wise. Mr. Clark agreed. Ms. Gilligan noted the City had a painter at the event, and he painted what the Art of Food & Wine looked like out at the Marriott. The painting was on display for Council to see. MS. AMY HARRIS stated the painting was up for auction on Sunday afternoon, and she got into a bidding war with a gentleman from Montana. The gentleman eventually won the painting, but it was later given to her by him; he contributed $600 towards charity and then gave her the painting, which she agreed to put it on loan to the City to enjoy for a while. 28 -��, �a,�., ��„,��,,.� PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING DECEMBER 11, 2008 Councilman Kelly thanked Ms. Harris for doing a terrific job and being a wonderful person to work with. He said some of the Councilmember stuck their neck out for the event, and he credit Ms. Harris for making the Art of Food & Wine a success. He thought building on the Art part of the event was something to consider for the next time. He was interested in getting a color copy of the staff report, which illustrated the pie charts that showed where the people were coming from. Councilmember Benson stated she didn't have any questions regarding the finances because she thought the event was a success as far as building the even up. She said the City received a lot of good press, and a lot of phone calls stating they were glad the event was continued. Everyone seemed to know it was growing pains, that it took years to grow an event and make it successful. She believed this event was on its way, and it was due to Ms. Harris' commitment to the City of Palm Desert to make it a success, because she knew Palm Desert didn't like failing at anything. She believed the event was truly enjoyed by everyone that attended. MS. HARRIS responded she was lucky because she had great teams to work with: Kemper Sport Management and the Palm Desert City team. She also believed the City was onto something big. Marketing Manager Kristy Kneiding echoed Councils comments and agreed Kemper Sport did a great job. In the first year of the event it was a tough go with all volunteers, and in the second year, it was Kemper Sport Management first year. She said Ms. Harris listened to what everybody had to say about improving the event, which she implemented. She thought the event was completely successful with no complaints received, other than people enjoyed their four days of the event. She said it was a big hurdle to come after the first two years of trying to get the event off the ground and organize it. Mayor Spiegel thanked Amy for the dramatic improvements from last year. He said the cooking classes were terrific and hopefully the City could do a repeat performance. Councilman Ferguson moved to, by Minute Motion, receive and file. Motion was seconded by Kelly and carried by a 4-0 vote, with Finerty ABSENT. 29 r� PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING DECEMBER 11, 2008 XVII. PUBLIC HEARINGS A. REQUEST TO COMMENCE WITH THE FISCAL YEAR 2009/2010 COMMUNITY DEVELOPMENT BLOCK GRANT(CDBG)CYCLE PROCESS AND TO OPEN THE FISCAL YEAR 2009/2010 APPLICATION PROCESS. Mayor Spiegel declared the 30-day public comment period on the Development Block Grant to be open and invited public testimony. MR. JOHN BOOP, Senior Vice President of the Betty Ford Center Foundation, stated their offices were at Cook Street near Hovley, Palm Desert, in addition to owning 14 homes in the Palm Desert community. He appreciated the opportunityto submittheirapplication in Februaryfora Block Grant. He said they were looking to build a new patient and community infants program to the Betty Ford Centerthat will better serve the community, and to validate their presence in Palm Desert. They have 32,072 alumni's in the Coachella Valley, and of that number, 796 reside in Palm Desert, which happens to be the largest number of any other Coachelfa Valley communities. They offer the Children's Program in the Coachella Valley and 43,032 have been served since inception of the program in the late 1990's. Of that group, approximately 95%attend on scholarship,which was targeted to low-income families. They work with 43 partners in the Coachella Valley, and they host the Desert Sands District Student Aide Advisory Board meetings each month, hold meetings at the schools within Desert Sands Unified School District, and offer alcohol and other drug awareness as a community service. Last year they held six programs, but they normally hold between 6-10 program; in 2008, 24,030 residents attended those events. An interesting note, 62 staff at the Betty Ford Center reside in Palm Desert, as well as 44 of their volunteers. So along with being homeowners and office owners in this community, they felt they were not taking advantage of the opportunity, and look forward to submitting their application in February. MR. CRAIG REDELSPERGER, Director of 2-1-1 Riverside County, expressed his appreciation forthe financial and social support to the program in past years. He provided the Council with their newest 2-1-1 info card, which was a product of Council's support. In addition, he provided the Council with a packet that included statistics gathered from the total calls from Palm Desert. The total calls from the City of Palm Desert alone was 539. He went on to explain how the program stepped up to the plate with the 2007 wild fires; instead of taking the average 300 calls, they took up to 2,500 - 3,000 calls a day. They also provide emergency information on their website to further illuminate awareness. He said the statistics showed a increasing growth,stating last yearthey received approximately 60,000 calls, which was a 52% increase from the previous year; this year they expected the same number plus more. The statistics included language, gender, 30 �'� 3'�, ,� �,.��4 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING DECEMBER 11, 2008 children, ethnicity, etc., and caller identification by category. The top five needs in Riverside County were rent, emergency food, shelter, and information. He said 2-1-1 Riverside County was a strong participant in emergency and realized that every city had their own demographic and area that emergencies occur such as flooding, earthquakes, and fire. He looked forward to applying for CDBG grants in February. MR. JOHN BELEN (sp?), Directorof Martha's Village&Kitchen. He thanked the Council for the grant received last year, which they applied toward their food and served over 320,000 meals. He said their food needs increased by 15% last year and would certainly be back to apply for Community Block Grant funds. MS.TASHA VAN(sp?),Associate Development Directorfor Olivecrest. She thanked the Council for past support and attendance at some of their functions. She said in 2007 there were 10,000 cases of reported child abuse in the Coachella Valley, and 459 were Palm Desert residents and of those 459, 33 children were removed from their homes due to the severity of their situation, and of those 33 children, 16 were sent out of the area due to lack of local facilities. There are few local residential facilities available for these children, and that's where Olivecrest came in. Forthe past 35 years, they've been dedicated to preventing and treating child abuse and had done so for over 50,000 children and families in Southern California, Nevada, and the Pacific Northwest. Currently Olivecrest provided services to children ages 0-22 years of age. She said the current need greatly exceeded the available resources, and the County of Riverside has asked they build the Coachella Valley Children's Center, which included two phases. Phase one was four residential foster homes, which will house 24 children; Phase two was an education centerthat will include a non-public school with six classrooms and a community education center. Funding for phase one was secure, and anticipated the home will open in February 2009. They were hoping to obtain $2.7 million to begin construction on the community education center, which will provide education to approximately 50 children per year, ages 7-12. She said more than 50% of the youth who age out of foster care were homeless within two years,which meant the community needs to ensure that these children have the appropriate school skills and education to move on and be productive citizens. The education centerwill also provide counseling and family preservation services to 300-500 families each year. The Center also provides local foster and adopt certification for families who wish to be certified through Olivecrest. The Centerwill have a lasting impact in the lives of these children and families, which will result in a positive impact in the community. Todaythey've raised$3.8 million forthe project; however, some commitments didn't follow-through. She said much of the success of their funding was through diversification, including foundations, city grants, and private donors. With the current economic times, it typically translated to 31 "��el�(�� f 1�� FLe. �l':� t.j% PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING DECEMBER 11, 2008 increase child abuse. Because of the lack of local resources and the great need to treat and prevent child abuse in the community, she asked that the Council give strong consideration to their CDBG in February. With no further testimony offered, Mayor Spiegel left the public comment period open for 30 days. B. CONSIDERATION OF AN APPEAL OF THE PLANNING COMMISSION ACTION DENYING A REQUEST FOR A VARIANCE FOR AN EXCEPTION TO PALM DESERT MUNICIPAL CODE SECTION 25.68, SIGNS, TO PERMIT A THIRD MONUMENT SIGN IN THE UNIVERSITYVILLAGE CENTER,WHICH CURRENTLY HAS THE MAXIMUM NUMBER OF MONUMENT SIGNS THE CODE ALLOWS, FOR CARL'S JR. LOCATED AT 36-879 COOK STREET Case No. VAR 08-304 (National Sign and Marketing/Edward C. Blend, ApplicanUAppellant). Assistant Plann Kevin Swartz stated Carl's Jr. was located inside the University Village Center, which was located on the southwest corner of Cook Street and Gerald Ford. He said the Palm Desert Municipal Code Section 25.68, allowed for one monument sign per frontage, and University Village has two frontage roads; Cook Street and Gerald Ford Drive. He said University Village currently had an existing monument sign at each frontage road; therefore, the applicant was asking for a Variance for a third monument. The Applicant didn't want multi-tenant signs, instead wanted public identification signs. Carl's Jr. fronts along Gerald Ford Drive, and the Applicant was proposing to erect a monument sign along Cook Street in the desert landscaped area, six feet from the face of the curb. The sign meets all development standards, but the Planning Commission agreed with staff that the proposed monument sign would create clutter along Cook Street and since all the businesses in the area complied with the Sign Ordinance, approval today would set a precedence for all businesses. The Applicant appealed the action of the Planning Commission for a monument sign. Staff was recommending that the City Council reaffirm the action of the Planning Commission denying the Variance requested by Carl's Jr. He added both Architectural Review Commission(ARC)and Planning Commission had a discussion for a temporary sign. Current lease signs were located along Cook Street and Gerald Ford Drive, which were approved at the staff level with a temporary use permit on a yearly basis. He concluded his presentation and offered to answer questions. Responding to question about the location of the Carl's Jr. monument sign, he said the monument sign would be on Cook Street, and Carl's Jr. fronts on Gerald Ford Drive. 32 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING DECEMBER 11, 2008 Councilman Ferguson asked what legal findings needed to be made in order to support a Variance from the City's Code. Mr. Erwin noted those findings were set forth in the staff report as finding unusual physical hardship (dealing with dimensions of the property in some manner), extra ordinary circumstances applicable to this property that wouldn't generally apply to others within the same zone, strict interpretation of the City's Ordinance in the application would deprive the Applicant the privileges enjoyed by others in the same zone or location, and that the granting of the Variance would not be a detrimental public health, safety or welfare, or materially injurious to other properties in the vicinity. Councilman Ferguson asked if any of the four elements mentioned by Mr. Erwin found by the ARC or Planning Commission. Mr. Swartz responded that they weren't discussed. Councilman Ferguson responded it must of been discussed, because proliferation of signs was mentioned, which meant there wasn't anything unique about Carl's Jr.that wasn't different about Rock's Fire House or every other store along Cook Street. Mr. Swartz responded the ARC and Planning Commission did not find anything unique about Carl's Jr. Councilman Kelly noted he traveled on Interstate 10 towards Sacramento on Interstate 5, and it seemed that every off ramp had fast food restaurants listed on a sign on the freeway; he asked if the City's attempted to do the same. Councilman Ferguson responded he and Councilmember Finerty were on a Signage SubCommittee on what to do with these stores that sort of front the freeway, and the best conclusion they've come up with was a sign for everything that was at that intersection, but only one monument. However,they've been informal discussions thus far, but the Committee has met with Real Estate and Commercial Property individuals, and he agreed it was a good solution, but the City didn't have it yet. Councilman Kelly suggested meeting with State Highway Department, because the signs off Interstate 10 were Caltran's signs. He said those signs identified hotels and restaurants that were adjacent to that interchange. 33 '.+��r �..,;�.,-,�.., c�. K�.sa .:a...,� PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING DECEMBER 11, 2008 Councilman Ferguson replied it was a great idea. Mayor Spiegel declared the public hearing o en and invited the Applicant to address the Council at this time. MR. STEVE ROSEBLUM, Applicant representing National Sign Marketing Corporation, 1350 First Street, Chino, California, stated he represented CLK Inc., who was the operator of the Carl's Jr. restaurants in the Coachella Valley. He said he's had 10 years experience in the signage industry along with 10+ years in retail, and 2+ years working for a municipality. He said he would be calling on Mr. Carl L. Karcher, President of CLK Inc., and Mr. Fred Evans with The Evans Company, who's the landlord to speak. He said the original design intent on the project was to match the identification signs at the entrance to the Center. Their proposed design would utilize the exact same concrete block and lighting as specified by the developer in order to provide a sign that complimented the rest of the signage there, as well as provide a nice curbside appeal without creating clutter in that shopping center. The Applicant recognized it's a key important element for the City. Unfortunately, due to the site geographic conditions and reduced visibility on Cook Street, Carl's Jr. was disadvantaged from its competitors and merits the granting of this Variance for a monument sign. He said if someone happened to research and look up Carl's Jr. on Cook Street, which it did have a Cook Street address, they wouldn't find it because it actually fronted on Gerald Ford. The proposed signage they were looking for was designed to meet City Code requirements, which allowed similar businesses to have monument sign at their site. The key difference was that they were not in a shopping center. Councilman Ferguson interjected and stated Mr. Carl Karcher, who was also a good friend of his, was aware of the location of his restaurant, and he was also aware there were two monument signs for each frontage and those were already taken. He said if the Council followed the Applicant's logic, then the City would have the clutter that was mentioned by staff. MR. ROSENBLUM replied he will cover some of those facts. He displayed an image of the proposed sign, and stated the site had unique conditions; it was in a hidden area of the shopping center. He said Carl's Jr. received approximately 60%of its business through the drive thru, but if a motorist was driving down Cook Street, they wouldn't be aware the other side existed because it was difficult to see. He said all the other competitors had street oriented signage and also enjoyed high visibility where Carl's Jr. didn't, which was one 34 -��p> n„ PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING DECEMBER 11, 2008 of those conditions they must meet, so they were at a disadvantage. They have established a team of support of the developer at the shopping center to add a monument sign due to the unusual characteristics of this. He noted Council was probably familiar with the intense research and proposals that went into the design of the shopping center, and when that shopping center went in, it was important for them to look nice. They worked together with the landlord to develop something because they were a key tenant to them. He said they would be the only tenant that would be allowed to have a monument sign, and that was the key difference; no one else would be entitled to that. He said Carl's Jr. was specifically disadvantaged due to those unique characteristics. This proposal will help remedy the disadvantages and allow them to be a viable competitive business at a prominent location within a community. He said the client needed to be successful or it would be a disservice to the City, the development, and the business itself. He said they met the conditions the City Attorney mentioned and Councilman Ferguson inquired about. Responding to question about how he met the conditions, he said, it was unique in that they were a fast food restaurant that fronts on one street, and actually had an address on a different street, and they would not affect another business or cause a slippy slope for those business. He was not well-versed on the conditions as the City Attorney, and stated they would not cause future difficulty for the City if this Variance was approved. Councilman Ferguson stated a Variance was almost impossible to meet; however if it was an exception or something else, it might be different. He said the Applicant failed to mention he was at an advantage by being the only drive-thru restaurants north of a frontage street parallel to Interstate 10 because of the City's Freeway Overlay Zone. MR. ROSENBLUM responded he could understand his point, but unfortunately with the immediate complications near by, it was certainly critical people knewtheywere there. Further responding, he said he was 90% sure Jack in the Box had a monument sign, which was the most immediate competition near Carl's Jr. Councilman Ferguson couldn't recall seeing a monument sign, but would take the Applicant's word; however, he found it difficult to believe. Ms. Aylaian didn't believe Jack in the Box had a monument sign off the street. 35 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING DECEMBER 11, 2008 Councilman Ferguson noted the City had an agreement with the developer that he would have two monument signs for his development. MR. ROSENBLUM stated that in order for business success in today's economic times, it was imperative they worked progressively towards opportunities to increase business traffic. He said granting the Variance was an opportunity for the City to help a local business succeed. During today's City Council meeting, it was discussed the City's number one revenue source was sales tax revenue. He said it was truly important the City worked together with its businesses to insure a strong financial future for both entities. He said the City Council's granting the proposed design will support the City's intent of supporting business partnership with responsible development. Finally, he said Carl's Jr. was part of the fabric of the Coachella Valley, specifically Palm Desert for more than 25 years. He concluded his presentation and offered to answer questions. MR. CARL KARCHER, President of CLK, Inc., stated they made a decision a number of years ago to be at the subject location, and one of the reason was due to the limited amount of drive thru space available in Palm Desert. At that time, they looked at the infrastructure, mountains and short hills behind the site that was going in all slated for housing. The office space in the Center was a lot and there would be a lot of big time employee working there, so not only did they envision construction workers, but homeowners to be there. At their corporate board meeting on Tuesday this week, they had Mit Romney conference in and they talked about the economy.They also had ex-senator James Tolland from Missouri, and the economy was not going to turn around quickly according to them, and the Country was in for a major recession; it would be a while before the homes got developed. He knew about the apartments and hotel going in, but their business needed critical mass to support a restaurant, because they were only doing about 1/3 volume of what was needed. He believed they met the four criteria points needed for a Variance. He said Jack in the Box, Arco, and the Hampton Inn had monument signs. With regard to the clutter, he said the stretch of the Village from Cook Street to the Gardens, had one monument sign. At the Village, the Evans group had decided that their two monument signs are really non-descriptive, short with no tenants on it, even though they could, they decided against that. He said if they had three tenants on that monument sign, one additional sign on this huge stretch wouldn't create clutter. He hoped to obtain the Council's support and stated he was available to answer questions. 36 E �.� . 4 � �� ;,�� .G� �: � � � _ PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING DECEMBER 11, 2008 MR. FRED EVANS, stated he viewed this situation with different set of glasses, in that these were difficult times, and every idea brought to the table needed to be supported. He said every tenant was having individual chaltenges, and the most difficult challenge in today's market was leasing space; allowing those spaces to go dark would be the worse thing that could happen. He said as a landlord and developer, he had to take these opportunities with tenants that were trying hard, doing well, and had invested in the Center and the community. He said technically the City was correct, the Municipal Code allowed a certain number of signs, but everyone was in a condition where it needed to look beyond the Municipal Code and do what's correct for the community and tenants. He will continue to do whatever he had to do for his tenants because that was his job, he said alt were in it together. Mayor Spiegel asked how Mr. Evans could guarantee only one sign would be there when there were other tenants that might one another sign. MR. EVANS replied they had an agreement with Mr. Karcher, CLK Inc., and it was already written in stone, and based on the fact that he was the only drive-thru tenant allowed in the Center by the City and the Evans Group. Further responding, he said the Fire House and others had already agreed not to pursue another sign, and those deals were already done. Following up to comment about freeway signs, he said Caltrans and LamarAdvertising had an agreementthat Caltrans would not allow freeway signs, because Lamar Advertising believed it would take away from their marketing dollars. Councilman Ferguson replied it was not true because he represented Lamar Advertising, which was patently false. MR. EVANS replied he hoped it wasn't true, but he given that information directly by Lamar Advertising. MR. KARCHER stated they used to have some sign at the Bob Hope exit, the blue Caltrans signs, and they're gone; those signs came down last year sometime. He called Caltrans to find out how to get freeway signs, and they said it only worked if the City had a population of 6,000 or less in town. So they put signs up at Thousand Palms and they had signs up for years at that intersection; Bermuda Dunes had one atso because they were a smaller community. He received a letter from Caltrans this past year stating the signs were coming down because the outdoor companies objected to those 37 A;sp �ts;�a„;� 1 . a _: -,: PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING DECEMBER 11, 2008 ^ signs, and because the Coachella Valley was larger than 6,000. He said Caltrans had specific requirements for those signs. Councilman Kelly encouraged him to follow-up with his legislative representative Senator Benoit, because there were more billboards from Monterey Avenue and Gene Autry Trail than there were to Moro Bay through San Bernardino County, through Los Angeles County, through Ventura County, and San Luis Obispo County. With no further testimony, Mayor Spiegel closed the public hearing. Councilmember Benson understood the Applicant wanting a third sign, but she didn't think the City needed to reduce their standards because of the recession. She said everybody in town was feeling the same thing whether it was a restaurant,walk-in, or drive-thru. She said it was just a sign of the times, and a monument sign wouldn't attract more customers. She said the City only had one drive-thru, and it was by design, which was why they created a zone by the freeway. She would be in favor of reaffirming the action of the Planning Commission. Councilman Ferguson stated he wished this was a closer call for him, but he knew the laws, and knew there was no way the Applicant was near meeting the standard for a Variance. He said the City had a quirky thing called "exception," which had a dubious legality in his opinion, but the Applicant wasn't asking for that, it was asking for a Variance. He said many had asked the Council to bend, twist, or change the City's Code because of the economic times. He said he and Councilmember Benson about 15 years ago created the Freeway Overlay Zone that allowed the drive-thru, and it was specifically meant to cater to people just coming off the freeway, and for years the City had a Planning Directorthat kept trying to stretch it further and further. He said the last time the Evans Company came to the City Council, they had a tenant called Bad Ass Coffee that wanted a drive-thru, and the Council said no because it was north of Gerald Ford Drive. The fact that Carl's Jr. even got a drive-thru was remarkable to him. However, the Applicant was now requesting a frontage sign that was 300 feet away from the Carl's Jr. on Cook Street, would simply not fly with him, in addition to the precedence it would set, and the law it would have to ignore. He and Councilmember Benson, and former Councilman Crites developed a view corridor at Cook Street with the Evans Company to writing the aesthetic gateway to the City, with the Universities on the other side where they wanted people to have a visually easy enticing way to enter the City. They recognized sooner or later Cook Street would replace Monterey, particularly with the 38 `-� N.��K� ��.:�� .,Q. ``� ��" �4 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING DECEMBER 11, 2008 Walmart and Sam's Club there, and the traffic congestion at Dinah Shore Drive. So far, that corner had developed beautifully, so he was amazed the Evans Company would now come back and ask the City, on the basis of an agreement with Carl Karcher, CLK Inc., only, which didn't prevent them from entering an agreement with someone else they chose to. He said if it was a closer call, he would feel better because then he would find a way to help the Applicant. He couldn't support the request as presented. Councilman Kelly stated he viewed this different than his colleagues because there were extenuating circumstances. For example, if someone had 100 foot frontage,they could have one monument sign, and someone who had 1,000 foot frontage could have one monument sign, which didn't seem right to him. As far as other tenants coming to the Council for help, he thought they should come to the Council, and if there was something it could do, they should help. He said that Center could create traffic, but he didn't see the same catastrophe. He's looking at all the acreage at that Center,which he estimated was 20 acres, and all those office buildings will not need a monument sign. MR. EVANS responded it was 26 acres with only two monument signs. Councilman Kelly reiterated he saw this situation differently, and thought the Council needed to go out there and help the Applicant to put another sign out on Cook Street in order to get traffic there. He thought the City could assist in designing a sign that wouldn't cause clutter. He said the City did so many other things like the Facade Enhancement Program where it gave money to dress up a building, so the City did things to stimulate business, but it didn't do it for everyone; there were many that didn't get money for Facade Enhancement Program. He said that was the reason why the City had a City Council. It was not like an adding machine, where you pushed buttons and something came out, things weren't automatic. He agreed the City had ordinances to adhere to, but the City Council was here to make decision in unique situations,which he believed this was. Councilman Ferguson agreed the Council awarded Facade Enhancement funds based on lineal footage of the frontage, and he thought it would be far easier and much more legal to amend the City's ordinance to allow for more monument signs through the process that the City was already going through for large developments. Every time he drove by Walmart and Sam's Club, they had a lot more than two faces per side on that development, and 39 � ,, �� _ ;�� PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING DECEMBER 11, 2008 he'd rather amend the Ordinance and allow for big shopping centers to have multiple monument signs, than he would be to say that they were so extraordinarily different for a Variance. Councilman Kelly agreed and stated it was a good point, and why not allow extra monument signs when there was a larger complex, like 26 acres. Councilman Ferguson responded the Committee was in the process of cleaning it up, so it's a great point to insert for the Council's consideration; however, it may take a little bit longer, but at least it will be done right and legally. Councilman Kelly suggested a temporary sign at that location while it worked on the Ordinance. He had read in the staff report that the Applicant did not want to consider a temporary sign. MR. ROSENBLUM replied they would agree on a temporary sign. Councilman Kelly thought for sure a temporary sign would help that Center. He said if people were being attracted into Carl's Jr., it would attract people in the Village Center helping the entire Center. Councilman Kelly moved to allow the Applicant to have a temporary sign until the Ordinance included language that would accommodate for larger complex to have additional monument signs. Motion was seconded by Spiegel and received a no-action on a 2-2 vote.. Councilman Ferguson moved to refer this to the Signage Subcommittee and ask them to do frontage signs based on linear frontage and not just one sign per side regardless of how large the development was. Motion died for lack of a second. Mayor Spiegel asked how long would that take to get that back to Council. Ms. Aylaian replied staff currently had a number of signage related issues with the Zoning Ordinance they hoped to tie up and clean up with an update of a Zoning Ordinance, but if staff was reviewing just this particular issue, they could have it back in 30 days to address monument signage per lineal foot per frontage. Mayor Spiegel commented Mr. Evans would probably be able to place more than one monument sign with the size of his property. Councilman Kelly responded it could be adjusted accordingly. 40 F F PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING DECEMBER 11, 2008 Councilman Ferguson stated if an ordinance was introduced in 30 days ,that by the time it reached the second reading, it would probably be 60 days. He said the City's been putting off the Sign Ordinance for so long that he would rather do the whole thing as a package. Ms. Aylaian stated if staff would be working on the whole sign ordinance, the first week in February would be a more appropriate time. Mayor Spiegel questioned why not allow the Applicant a temporary sign until the ordinance was approved. Councilman Ferguson replied there would be a million people that would love temporary signs because the Signage Subcommittee was dealing with realtor's and commercial property owners. Councilman Kelly recognized he was not on the Sign Subcommittee, but he was expected to speak up and state his opinion on behalf of the people that elected him, and just because he wasn't on the Sign Subcommittee, it didn't his one vote had the same weight. Ms. Aylaian stated she had explained to the Applicant that he wouldn't need a continuance because if the City was amending it's ordinance, he wouldn't need a Variance. Responding to comment, she confirmed the Applicant would still have to go through ARC and the City's discretionary review. Councilman Kelly asked if business representative were on the Signage Subcommittee. Ms. Ayaian replied it did have representation from broker's and businesses. Mr. Erwin stated the Applicant needed to agree to the continuance because there was a time limit within which the City needed to act. MR. ROSENBLUM agreed to the February 12, 2008 continuance. Mayor Spiegel re-opened the public hearing. Councilman Ferguson moved to continue the matter to the meeting of February 12, 2009, with staff to work with Signage Subcommittee on related amendments to the Zoning Ordinance in the interim. Councilmember Benson seconded the motion and carried by a 4-0 vote, with Finerty ABSENT. 41 �R �rv+a r"r:e PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING DECEMBER 11, 2008 XVIII. REPORTS AND REMARKS A. CITY MANAGER 1. Cook Street/Bicycle Lanes — Mr. Ortega noted that he had sent City Councilmembers a memorandum, asking to set up a Study Session regarding a major project on Cook Street and an impending dispute— widening Cook for traffic to the exclusion of bike lanes,while bicyclists were requesting they be retained. He said it was a critical issue, because if the City were to include both extra traffic and bike lanes, it would result in a very expensive project. Staff requested setting a time specifically to consider this policy matter. Councilman Ketly agreed that it was a sensitive issue that needed to be discussed before any engineering was performed. With City Council and staff concurrence,the Study Session on Street Widening and Bicycle Lanes was set for Thursday, January 22, 2009, at 2:00 p.m. B. CITY ATTORNEY None C. GTY CLERK 1. Reminder: Study Session regarding the Westfield Expansion Project, Thursday, January 8, 2009, 2:00 p.m., Administrative Conference Room. City Councilmembers acknowledged the reminder. D. PUBLIC SAFETY o Fire Department On behalf of the Fire Department, Chief Brooker wished everyone a very happy and safe holiday season and invited them to visit the Fire DepartmenYs website (www.rvcfire.ora) for holiday fire safety tips at this time when they're possibly using additional electrical cords, burning candles, and doing extra cooking in their homes. 42 .. .�='tia'c � f.� „ ...,:� .,..... r. PRELIMINARY MINUTES � � `" � REGULAR PALM DESERT CITY COUNCIL MEETING DECEMBER 11, 2008 o Police Department Lt. Shouse reported that the Police Department had made great strides in filling its Officer vacancies. As of December 4, only one vacancy remained to be filled for a Motor Officer position. E. MAYOR AND MEMBERS OF THE CITY COUNCIL o City Council Requests for Action: None o City Council Committee Reaorts: 1. Riverside County Transportation Commission �RCTC� — Councilman Kelly commented that at its meeting yesterday, he was elected 2"d Vice President of RCTC, which would lead to his becoming Chairman of the Commission in a couple of years. ' o City Council Comments: 1. Councilman Ferguson stated that on Wednesday, January 21, President of the California Public Utilities Commission, and the heads of Southern California Edison and The Gas Company would be hosting a dinner for Mr. Ortega to congratulate his success for five years of efforts that have brought the City's Energy Program from start-up to a preeminent status. He said the dinner was being held at Ruth's Chris Steakhouse in Palm Desert and asked his colleagues to calendar the event. XIX. ADJOURNMENT On a motion by Ferguson, second by Benson, and 4-0 vote of the City Council, Mayor Spiegel adjourned the meeting at 6:41 p.m. ROBERT A. SPIEGEL, MAYOR ATTEST: RACHELLE D. KLASSEN, CITY CLERK CITY OF PALM DESERT, CALIFORNIA 43