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HomeMy WebLinkAboutPrelim - CC - 02/26/09 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING THURSDAY, FEBRUARY 26, 2009 CIVIC CENTER COUNCIL CHAMBER 73510 FRED WARING DRIVE, PALM DESERT, CA 92260 I. CALL TO ORDER - 3:00 P.M. Mayor Spiegel convened the meeting at 3:00 p.m. II. ROLL CALL Present: Councilmember Jean M. Benson Councilman Jim Ferguson Mayor Pro Tem Cindy Finerty Councilman Richard S. Kelly Mayor Robert A. Spiegel Also Present: John M. Wohlmuth, City Manager/RDA Executive Director David J. Erwin, City Attorney Homer Croy, ACM for Community Services Justin McCarthy, ACM for Redevelopment Stephen Y. Aryan, Assistant to the City Manager Rachelle D. Klassen, City Clerk Bo Chen, City Engineer Russell Grance, Director of Building & Safety Lauri Aylaian, Director of Community Development Patrick Conlon, Director of the Office of Energy Management Paul S. Gibson, Director of Finance/City Treasurer Janet M. Moore, Director of Housing Mark Greenwood, Director of Public Works Frankie Riddle, Director of Special Programs Steve Brooker, Battalion Chief, Palm Desert Fire/Riverside Co. Fire/Cal Fire Andrew Shouse, Asst. Chief, Palm Desert Police/Riverside Co. Sheriff's Dept. Grace L. Mendoza, Deputy City Clerk III. ORAL COMMUNICATIONS - A (CLOSED SESSION ITEMS) None DRAFT PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING FEBRUARY 26, 2009 IV. ADJOURN TO CLOSED SESSION Request for Closed Session: 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 Conference with Legal Counsel regarding significant potential to initiate litigation pursuant to Government Code Section 54956.9(c): Number of potential cases: 1 Conference with Labor Negotiator pursuant to Government Code Section 54957.6: Negotiating Parties: John M. Wohlmuth/Justin McCarthy/ City of Palm Desert On a motion by Finerty, second by Kelly, and 4-0 vote of the Agency Board, with Ferguson ABSENT, Chairman Spiegel adjourned the meeting to Closed Session at 3:01 p.m. He reconvened the meeting at 4:00 p.m. V. RECONVENE REGULAR MEETING - 4:00 P.M. A. REPORT ON ACTION FROM CLOSED SESSION. None VI. PLEDGE OF ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA- Mayor Pro Tem Cindy Finerty VII. INVOCATION - Councilmember Jean M. Benson 2 DRAFT PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING FEBRUARY 26, 2009 VIII. ORAL COMMUNICATIONS - B CITY OF INDIAN WELLS MAYOR LARRY SPICER presented Mr. Wohlmuth with an engraved plaque from the City of Indian Wells, recognizing his service as Executive Director of the Coachella Valley Association of Governments (CVAG) from February 2003 through January 2009. MR. WALTER WEBB, Cathedral City, CA, addressed the City Council about The Phoenix Project, which transfers pollutants, toxic waste; solid waste, useful products, sewage, etc., into a redemption park. He said such a park provides retrieval of everything that is valuable and turns the rest into energy and new products; the only thing coming out of a Phoenix Pollution Park is electric energy. The Project is different from other landfills because a special generator is used to break down molecules in the waste and turn it into useful energy. He said about 40% of the energy produced runs the Project and the remainder is turned out for electrical energy. He urged consideration of this innovation that was already being used in Russia and by Princeton University in order to eliminate industrial and community pollution and wasting earth's limited resources. MR. JOSEPH GAUGUSH, Broken Arrow Trail, Palm Desert, asked the City Council for its support of the upcoming annual Alzheimer's Association's Memory Walk being held in Civic Center Park on Saturday, March 28, at 10:30 a.m. He said it would be a mass of people "On The Move" to end Alzheimer's, which was very important to him after losing his wife Mary to the disease in October 2008. He noted that there were approximately 11,000 Coachella Valleyfamilies currently coping with the devastating effects of Alzheimer's; over five million families were affected nationally. He explained that the Alzheimer's Association's mission was the care and cure of those affected by the disease He provided a sponsorship form for the March 28 Walk and encouraged anyone who could to walk in the event and to help fund the Association's mission. MS. MARY CONTI, Deer Grass Drive, Palm Desert, spoke to the City Council about an issue on her street with a neighbor who recently moved there but was attempting to drastically change the character of the area, especially having to do with use of the public street and excess speed control. She has lived on the street for 20 years and felt it was a very nice neighborhood, but since last fall, the new resident has had kids playing in the street, there have been cones set out in the street—kids dart out in front of traffic, one of the children actually stepped out on the street in front of her daughter's car and ordered her to stop as she was driving there. She went on to say that apparently the new neighbor had complained, and during the last few months, 25 m.p.h. signs had been installed on each end of the street. Additionally, radar trailers had been placed in front of the neighbor's residence for days and weeks at a time, along with as many as two motor officers at a time positioned in front,ticketing local residents on the street, which is a neighborhood street and only 3 DRAFT PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING FEBRUARY 26, 2009 provides access to two others in the area. She'd been told by the policemen that there was a zero tolerance, and tickets would be written for one mile over the speed limit. Therefore, she'd nearly stopped using this street; her neighbors were also complaining that they were being harassed. She understood that there was even some litigation against the aforementioned homeowner and wondered how one person could move into a neighborhood and have this much influence on the City Police Department to have the radar trailers and two police officers sitting in front of their house for such a great deal of time. Mayor Spiegel asked the City Manager to contact Ms. Conti about her concerns. MR. JIM SWANNER, Buttonwood Drive, Palm Desert, said he was extremely proud to be a resident; it was a beautiful and well kept community until one got to his neighborhood near the intersection of Magnesia Falls and Deep Canyon. He said it was overgrown with weeds; the walls had been painted with graffiti and then sprayed over with a mismatched color, and he likened the appearance to a neighborhood in Desert Hot Springs,which was unacceptable to him. For two years he'd called different people in the City and was advised that the only way to get the issue resolved was to appear before the City Council. He asked for some sort of effort to make that area as nice as the rest of the City. Mayor Spiegel responded that the photos would be provided to the City Manager, and he asked Mr. Swannerto give his name and telephone numberto the City Clerk so that he could be reached on this matter. IX. AWARDS, PRESENTATIONS, AND APPOINTMENTS A. PRESENTATION OF CALIFORNIA LANDSCAPE CONTRACTORS ASSOCIATION'S PUBLIC WORKS/SPORTS, PARKS & ATHLETIC FACILITIES AWARD FOR ENTRADA DEL PASEO. Assistant Planner Missy Grisa announced that the City was being presented with an award for construction and installation of the Entrada del Paseo Phase II Landscaping Project. She said the City Council envisioned and undertook the project to create a landscape break in the commercial corridor along Highway 111. City staff worked with a landscape architecture firm, HSA Design Group, to execute a plan, which Sierra Landscape completed construction on last year. She recognized City staff who helped accomplish the project: Directorof Community Development Lauri Aylaian (in herformer role as Redevelopment Manager), Redevelopment Manager Martin Alvarez, Landscape Inspector Brad Chuck, Landscape Specialist Diane Hollinger,and Landscape Manager Spencer Knight. She also recognized the Landscape Architect who designed the beautiful gardens, Chuck Shepardson of HSA Design Group, along with Crissy Dzielak, Project Coordinator for Sierra 4 DRAFT PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING FEBRUARY 26, 2009 Landscape. She went on to say that after project completion, Sierra Landscape submitted an application and photos of their work on the Entrada del Paseo and Eric Johnson Memorial Gardens to the California Landscape Contractors Association(CLCA). CLCA Board Members traveled around the State to judge the projects, and Sierra Landscape Company was awarded First Ptace for the Entrada/Eric Johnson Memorial Garden Project in its "Public Works/Sports, Parks & Athletic Facilities" category. MR. GEORGE GONZALEZ, President of Sierra Landscape, Palm Desert, introduced his Project Manager Crissy Dzielak. He said they were very happy with the results of the project, very proud to be associated with it, and thanked the City for the opportunity. MS. DZIELAK added that her firm really enjoyed executing the plan developed by Mr. Shepardson. She also thanked the City of Palm Desert and Redevelopment Agency for funding such a unique and creative open space for the public. She further recognized the excellent subcontractors on the project, most of whom were local and helped contribute to its outstanding outcome: R & D Concrete, Lexco Electric, and Parsons Boulder Walls. Additionally, she thanked City departments for their assistance: Building & Safety, Public Works, and the Redevelopment Agency. Mayor Spiegel thanked Mr. Gonzalez and Ms. Dzielak for their work on the project and for the engraved plaque they presented to the City for the First Place Award. A.1. PRESENTATION TO COUNCILMEMBER JEAN BENSON. Mayor Pro Tem Finerty and Councilman Ferguson made a special presentation to Councilmember Benson in honor of her term and for her leadership on the City Council. B. APPOINTMENTS TO VARIOUS VACANCIES ON AND REAPPOINTMENTS TO THE CITY'S STANDING COMMITTEES AND COMMISSIONS. Councilman Kelly moved to, by Minute Motion, appoint the following applicants to the respective Committees and Commissions, as indicated: a) Architectural Review Commission: Allan Levin to fill the unexpired term of Kristi Hanson (12/31/11); b) Audit, Investment & Finance Committee: Jim Walker to fill the unexpired term of Bill Veazie (12/31/11); c) Marketinq Committee: Ted Giatas to fill the unexpired term of Melissa Allensworth (12/31/11); d) Project Area #4 Committee: Kelly Litecky and Javier Lopez to fill the unexpired terms of Harry Church (12/31/10) and Frank Proulx (12/31/10), respectively; e) Rent Review Commission: Josef Jonathan as a Regular Commissioner with a four-year term (12/31/12) and Charles Brown as Alternate Commissioner to the 5 DRAFT PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING FEBRUARY 26, 2009 unexpired term of Dr. Joyce Wade-Maltais(12/31/11); f)Youth Committee: Laura Baldwin to the term formerly held by Anna Miller(12/31/09). Motion was seconded by Finerty and carried by a 5-0 vote. Councilman Ferguson moved to, by Minute Motion, reappoint the following members to their respective positions on City Committees and Commissions each for a four-year term (1/1/09 - 12/31/12), except the Youth Committee, whose terms are for one year (1/1/09 - 12/31/09): a) Architectural Review Commission: Pam Touschner; b) Buildinq Board of A�peals: Robyn Ritchey; c) Cultural Resources Preservation Committee: Gale Broekerand Don Graybill; d)EI Paseo BusinessAssociation Board: Elyssa Goldberg, Janet Hanson, and Susan Stauber; e) Library Promotion Committee: Betty Carapellese, Marilyn Hahn, and Ella Manor; f) Parks & Recreation Commission: Deborah Hall and Terry Schukart;g)Project Area#4 Committee:Charles Ash, Fred Benford, Robert Duncan, and Roberta Grubb; h) Public Safety Commission: Jim Butzbach and Marty Nethery; i) Rent Review Commission: Brian Torsney Sr.; j) Youth Committee: Raine Armstrong, Alahna Dunbar, Carl Gerhardt, Bryce Griffith,Toni Gutierrez, Kate Hart,Alison McCollister, Briana Nolan, Katie Pawelczyk, Jonny Rohrbaugh, Jenna Scott, Ryan Sheehy, Abby Sturgeon, and Elle Wohlmuth. Motion was seconded by Finerty and carried by a 5-0 vote. Mayor Spiegel noted that staff was directed to prepare an ordinance for introduction to modify the manner in which Planning Commissioners were selected and appointed, with each Councilmember recommending one appointee confirmed by the entire City Council. Councilman Kelly moved to, by Minute Motion, direct staff to prepare an Ordinance for introduction to modify the manner in which Planning Commissioners are selected and appointed,with each Councilmember recommending one appointee to be confirmed bythe entire City Council. Motion was seconded by Kelly. Mr. Erwin asked if it was the intent of the Council that the current members of the Planning Commission be grandfathered or start new terms. Mayor Spiegel responded that was one of his concerns. He felt the Council would be making the Planning Commission political by having each Councilmember appoint one person, because it's never been that way. He understood some cities and counties did it that way, but he believed all five Councilmembers should agree on the Commissioners who served on the Planning Commission. Councilman Kelly stated he objected to having a discussion on the pros and cons before it was actually put on the agenda; otherwise the Council could get into a debate at this time. 6 DRAFT PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING FEBRUARY 26, 2009 Mayor Spiegel responded there was a motion and a second to move forward to modify the ordinance, and he was making his comments before the vote was taken, so he could explain why he would be voting no. Mayor Spiegel called for the vote, and the motion failed on a 2-3 vote, with Benson, Finerty, and Spiegel voting NO. Responding to question, Mr. Erwin stated the Planning Commissioner with the expired term would retain that office until the Council appointed someone to fill that term. Councilman Kelly felt there was a breach in procedure where Mayor Spiegel was able to speak to the issue without contribution from other Councilmembers. He felt very strongly that there were good reasons for each Councilmember picking a Commissioner to serve on the Planning Commission. The first reason was that the Council wouldn't run into the situation it now faced where there was great disagreement about who would be appointed. He said there were many situations where the Planning Commission made a decision and their decision was overturned by the Council. He said if each Councilmember appointed a member to the Planning Commission, appointments would be less controversial. In addition, it would be a better reflection of what the Council was looking for. Councilmember Benson stated it was a terrible idea, and that idea was considered 30 years ago, and the Council decided theywanted a non-partial Planning Commission, which was the reason Councilmembers never went to Planning Commission meetings. She said if Planning Commissioners were appointed by a Councilmember, they may feel obligated to the Councilmember who appointed them, and that would make an un-bias Planning Commission. Councilman Kelly moved to, by Minute Motion, appoint Russell Campbell to the Planning Commission. Motion was seconded by Spiegel and failed on a 2-3 vote, with Benson, Ferguson, and Finerty voting NO. Mayor Spiegel noted that Russell Campbell would continue to serve until the Council appointed a new Commissioner. 7 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING FEBRUARY 26, 2009 X. CONSENT CALENDAR A. MINUTES of the Regular City Council Meeting of February 12, 2009. Rec: By Minute Motion, continue to the meeting of March 12, 2009. B. APPLICATION FOR ALCOHOLIC BEVERAGE LICENSE by Mastro's Steakhouse, 73-445 EI Paseo, Suite 200, Palm Desert. Rec: Receive and file. C. CITY COMMITTEE AND COMMISSION MEETING MINUTES. 1. Landscape Beautification Committee Meeting of November 19, 2008. 2. Youth Committee Meeting of January 5, 2009. Rec: Receive and file. D. INDEPENDENT ACCOUNTANT'S REPORT on Agreed-upon Procedures Performed on the Measure "A" Transportation Fund for the Fiscal Year Ended June 30, 2008. Rec: Receive and file. E. REQUEST FOR APPROVAL of Revised Agreement Between the City of Palm Desert Visitors Center and SunLine Transit Agency for the Sale of SunLine Bus Passes (Contract No. C14510A). Rec: By Minute Motion, approve the subject contract between the City of Palm Desert Visitors Center and SunLine Transit Agency, and authorize the Mayor to execute same. F. REQUEST FOR APPROVAL of Extension of Maintenance Agreement with Amtech ElevatorServicesforElevatorattheCityMaintenance Facilityforthe Remainder of Fiscal Year 2008-2009 (Contract No. C27260). Rec: By Minute Motion: 1) Extend the subject contract with Amtech Elevator Services, Anaheim, California, on a month-to-month basis at the rate of$229.98/month (total cost of extension $1,019.63) for the remainder of FY 2008-2009; 2) authorize the Mayor to execute the contract — funds are available in the Repair/Maintenance Buildings Account, No. 110-4330-413-3310. 8 PRELIMINARY MINUTES DR�4FT REGULAR PALM DESERT CITY COUNCIL MEETING FEBRUARY 26, 2009 G. REQUEST FOR APPROVAL of 60-day Extension to the Solid Waste Franchise Agreement with Burrtec Waste and Recycling (Contract No. C17230A). Rec: By Minute Motion, approve a 60-day extension to the subject Solid Waste Franchise Agreement with Burrtec Waste and Recycling. H. REQUEST FORAPPROVAL of Amendment No.2 to Contract No. C27190 — Landscape Maintenance Area No. 2 (Project No. 902-08). Rec: By Minute Motion: 1) Approve Amendment No. 2 to the subject contract with Vintage Associates, Inc., Bermuda Dunes, California, to add maintenance of the medians on Fred Waring Drive between California Avenue and Washington Street for an additional $1,100/month; 2)authorize the Mayorto execute Amendment No. 2— funds are available in the Repair/Maintenance Medians Account, No. 110-4614-453-3370. I. REQUEST FOR APPROVAL of Change Order No. 1 to Contract No. C28030A—Country Club Drive Curb Ramp Retrofit(Project No. 619-08). Rec: By Minute Motion: 1) Approve Change Order No. 1 in the amount of $10,009 to the subject contract with Contreras Construction Company, Indio, California; 2) authorize the transfer of$10,009 from , contingency to base for the project; 3)authorize the Mayor to execute Change Order No. 1. J. REQUEST FOR AUTHORIZATION to Refund Plan Check Fee for 44-277 Portola Avenue — Building Permit No. 08-00046270 (Gregory O. Holta, Applicant). Rec: By Minute Motion, authorize the refund of Plan Check Fee in the amount of $3,379.60 for Building Permit No. 08-00046270 for a project located at 44-277 Portola Avenue. K. REQUEST FOR AUTHORIZATION to Release Improvement Security for Case No. PP 06-11 and Accept Maintenance Security for the Project (Wachovia Bank, Applicant). Rec: By Minute Motion, authorize release of the Improvement Security for Case No. PP 06-11 (Wachovia Bank) in the amount of $42,235 and accept the 10% Maintenance Security on the Faithful Performance Bond for same in the amount of$2,816. 9 PRELIMINARY MIN DRAFT UTES REGULAR PALM DESERT CITY COUNCIL MEETING FEBRUARY 26, 2009 L. REQUEST FOR AUTHORIZATION to Release Various Trust Deposits Accepted by the Public Works Department. Rec: By Minute Motion, authorize release of various Trust Deposits accepted by the Public Works Department from the following Applicants,as detailed on the accompanying staff report: Prest Vuksic Architects, Steven W. Delateur, Palm Valley HOA, Fountains Retirement Communities, Jobe Construction, Halle Properties, Inc., Sunwest Homes, FKC Palm Desert, LLC, Marriott, Cardiff Holdings, and Ewing Builders. M. INFORMATIONAL REPORT on Valet Parking in the City of Palm Desert. Removed for separate consideration under Section XI, Consent Items Held Over. Please see that portion of the Minutes for Council discussion and action. Councilman Kelly asked that Item M be removed for separate consideration under Section XI, Consent Items Held Over. Upon a motion by Kelly, second by Finerty, and 5-0 vote of the City Council, the remainder of the Consent Calendar was approved as presented. XI. CONSENT ITEMS HELD OVER M. INFORMATIONAL REPORT on Valet Parking in the City of Palm Desert. Councilman Kelly stated that it wasn't clear to him if the staff report reflected how the City handled valet parking or regulated situations where the City had a development agreement and a certain amount of parking was required for a development. He understood President's Plaza, parkways, and public street were owned by the City, but he wondered how designated parking stalls were regulated when there was a conditional use permit. Mr. Greenwood noted the purpose of the staff report was to give the Council an update on the recent action by the City of Rancho Mirage. But in answer to Councilman Kelly's question, he said Palm Desert issued permits for valet parking on private property, the valet operator was allowed to charge for the service, and valet spaces are to be located furthest away from the building. Further responding, he confirmed a conditional use permit was required when a business used 50 private parking spaces. Councilmember Benson stated thatwhen restaurants were conditioned,they had to have a certain amount of parking spaces; otherwise those spaces 10 PRELIMINA ����� RY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING FEBRUARY 26, 2009 would be taken away from the public. Case and point, she was at one of the restaurants recently and she informed the valet operator that she couldn't walk from the back of the lot to the front, and she was given the response that it was "too bad," and that they had a City permit where they could take as many spaces as they wanted. , Mr. Greenwood responded valet operators are suppose to use parking spaces furthest from the door for valet parking, and leave the spaces closest to the door available forthe self-parking patrons. He said valet operators are suppose to have a map that showed where they could block their valet parking spaces. Councilmember Benson stated she didn't know why the City allowed businesses to take parking spaces that they are required to have. Councilman Kelly stated valet operators took parking spaces from the front of the business. He said he had difficulty walking these days, and he had no problem paying $5 if he was allowed to park his own car in the front. He had items stolen in the past when he used valet parking, and when he insisted on parking in the front, he had to leave his car exposed to someone who was upset and had his car damaged and windows broken. He felt the City could do a better with valet parking. Mr. Greenwood stated he understood the Council wanted staff to look at the City's enforcement efforts and review the Ordinance to make sure it was being applied as intended. With City Council concurrence, the report was received and filed on a 5-0 vote. XII. RESOLUTIONS A. RESOLUTION NO. 09-14 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, GRANTING CONSENT TO THE COUNTY OF RIVERSIDE TO BE INCLUDED IN THE PALM SPRINGS DESERT RESORT COMMUNITIES TOURISM BUSINESS IMPROVEMENT DISTRICT. Mr. Wohlmuth stated this was a policy issue that staff wanted to bring forward to the Council to consider. He said the County would consider modifying their bid, but only before March 25, 2009, and that information needed to reach the County of Riverside for their Form 700. He said if the City was interested in participating, the City needed to make that known to the County in the next 30 days. He said there was additional information and perhaps because of the budget, there may be potential savings to the City 11 ����� PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING FEBRUARY 26, 2009 of Palm Desert if it participated in the amount of $750,000 in Transient Occupancy Tax(T.O.T.); funds would be returned to the General Fund. He said Dan Martinez from the County of Riverside, Jeff Beckelman from The Palm Springs Desert Resorts Communities Convention and Visitors Authority (CVA) were present, as well as Mr. Gibson and Mr. McCarthy from the City who helped prepare the staff report. He said it was staff's recommendation to participate in the Business Improvement District (BID). MR. JULIUS KAZEN, President of the Palm Springs Hospitality Association, stated he also served on the Board of the Hospitality Industry and Business Council (HIBC) with the CVA. He said he spent most of his career in Las Vegas and moved to the desert 2'/2 years ago, and as he got involved with the tourism business here, he found it impressive that 20 years ago all the cities were able to put theirdifferences aside to form one central organization because of the importance tourism was to the vitality of each city in the Coachella Valley. The decision before the Council this evening could deal a damaging blow to the CVA if the vote went the wrong way. He said regardless of the outcome, the organization would survive, but it was not beyond the realm of possibility that it could be the beginning of the end for the CVA, and one thing was certain that it would end the unity that all eight cities had in working together to promote tourism for all involved. He believed with all his heart and knowledge of 35 years in this business, that having a centralized organization with the type of funding to reach out to customers in ways that no individual city or property could was a very good thing. He said if for some reason Councilmembers had issue with the current senior officers with the CVA, there were ways to go about the process of making those changes if that was what the Council needed to happen. Under the new bylaws the HIBC had that control and authority, and this group of leaders in the tourism business in our community would not hesitate to make the changes if that was the right thing to do for business. However, if it was about feelings that one had about the current leadership, and the Council tried to tear down the organization, it would ultimately cause the organization to die. He said if that happened, it was almost certain there would never be another organization that represented all tourism in this valley, and it would lose the pool of firms, the wisdom of the pool of cities, and the ability to reach out and raise monies well beyond the abilities of one city and any one property. In one booking alone last year, the CVA put 88,000 room nights in a Palm Desert property; hotel room revenue on this one booking was $8 million, and tourism tax on that revenue was $700,000. He urged the Council to think long and hard if the Palm Desert City Council of five members wanted to drive a dagger into the heart of an amazing idea born 20 years ago. He said the CVA was good for business, and there wasn't a good business reason to pull this organization apart. 12 � �� PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING FEBRUARY 26, 2009 Councilman Ferguson stated he was surprised to see this item back on the agenda since it was debated thoroughly and Council took action on it about 3'/2 months ago, and his view hadn't changed. He said it was somewhat humorous to hear people talk about the 20 year history of the organization, when the person who started it was Councilmember Benson, and she's been through it every step of the way and probably had more insights on this matter. From his point of view, taxing the most profitable sector of the City's base in these economic times made no sense. He said those who owned a business wouldn't raise their rates and turn around and put that money into more marketing just to get more people into the store, when they couldn't afford to buy the product,which was completely nonsensical. He applauded the Marriott because the City requested they work directly with the business district. He personallyfavored the private sectorworking togetherto promote themselves, much the way the City's EI Paseo Merchants Association did it. He said his views hadn't changed and frankly didn't see a need or role for Government or the City to be involved. He felt the organization had done well for 20 years but would defer to Councilmember Benson who was involved with the organization since its infancy. Councilmember Benson stated she resented the fact that someone was trying to throw a dagger into the CVA because being a founding member, it started with nothing and it had less than $1 million to start out with to promote this valley. The cities were approached to raise the percentage needed to bring the budget up slowly from $2 million to $5 million. She said $5 million had served this valley very well for more than 30 years. She said the City had received it's share of tourism from all over the Country. She's been in the travel business for more than 20 years, and she knew what brought more people into Palm Desert. She said it wasn't more dollars spent out, it was people recommending other to come to visit here; it wasn't $5 million or adding more personnel or making deals with the Desert Sun. He said people would still not come because people didn't have the money. She said for the 20 years that she served on that board she worked hard to promote this valley, and she still believed in the whole valley, but Palm Desert could spend its money wisely on its own City and not the whole valley. Councilman Kelly stated he believed the City shoutd participate, and it may be a philosophy thing about the whole Coachella Valley working together; however, he heard the comment that if Palm Desert didn't participate, then the Marriott and other hotels in Palm Desert couldn't participate if they chose to, which concerned him. He said if that was true, and the Council voted to not take part in the Business Improvement District, then the CVA violated its contract/agreement with Palm Desert, and the City should stop sending 13 PRELIMINARY MINUTES �� REGULAR PALM DESERT CITY COUNCIL MEETING FEBRUARY 26, 2009 money immediately. He said the City wouldn't have to buy a year's notice, if they already told Palm Desert that its hotel's couldn't participate. Mayor Pro Tem Finerty stated she hadn't changed her mind either. She said her comments previously were that BID subverts Proposition 218, the City gave $1 million to the CVA, and above and beyond that, the City had a $1.4 million marketing budget. She said the City could do a better job of marketing its City than joining a pool and marketing the whole valley, plus she's never seen what Palm Desert's return was for the $1 million or the types of ads used to promote Palm Desert. She said when the City spent $1.4 million there was actual material to follow-up on that one could see the various magazines, publications, and what was promoted. She felt it was an advantage to keep the City's T.O.T at nine percent, and it was good that it was the lowest in the valley. She said if the City ever needed a rainy day fund, then it would have the ability to raise funds on its own. It appeared the Marriott wanted to participate, but the CVA now wanted to play hard ball and change the rules by excluding Palm Desert hotels if the City didn't participate, then she would echo Councilman Kelly's comment to withdraw from the CVA. She did not believe in principal that taxes should be raised on tourism or residents in this economy. She agreed with Councilmember Benson that the CVA could market all it wanted, but people would not come because they didn't have the money and this economy would continue to be bad for a while. She too questioned why this item was on the Agenda, because the Council had a lengthy discussion before with much testimony. Mayor Spiegel stated this item would be on every cities agenda because the County was redoing the Business Industry District, which was done every year. MR. DAN MARTINEZ, County of Riverside, stated the other cities have provided their consent. He said the County didn't need to obtain cities consent on an annual basis, but the Ordinance that was established by the County had to be re-approved on an annual basis. He said the County would begin the process of re-approving the Ordinance next month. He said the Tourism BID needed to be re-established on a fiscal year basis, so every year the County will check with member cities to see if they wanted to continue. He said cities such as Palm Desert would be asked if it wished to join, which was the reason it came up at this time. Mayor Spiegel stated the Marriott provided the City with over $6 million in revenue a year, which came from sales tax, hotel occupancy tax, and redevelopment dollars. It was the largest amount received from any one unit in Palm Desert. He said Marriott Manager Ken Swartz indicated that eight percent of his convention business came from the CVA. He said the Marriott 14 o� �' PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING FEBRUARY 26, 2009 poured millions into their building to remodel the interior at the entrance and build a spa that was second to none in the valley. He said if the Marriott believed in their hotel that much, than the City should believe in the Marriott. The difference between the eight percent was the Marriott breaking even and losing money. He said if the Marriott began to lose money, then the City would lose the Marriott, and it would not be a good thing for the City. He noted Palm Desert would continue to be a part of the CVA until the end of next year, because it took that long based on the contract with CVA to get out. He said the City was paying $1 million this year and $1 million next year to get out. He said the way this BID was set up, was that any City that dropped out, their hotels could not participate, which was part of the ground rules. He said when Palm Desert dropped out in two year,the Marriott would be dropped. In the meantime, the City will pay another$1.5 million to CVA as part of the contract that was signed, which he didn't sign because he wasn't the Mayor when it was signed. He said today the Desert Sun had an article in their Opinion Page urging Palm Desert to get on board and reconsider their decision and make the right choice for the community, the tourism industry, and the valley as a whole. Councilmember Benson stated that with regard to the CVA rules and such, that was under the CVA as it was formed to have it paid for by T.O.T. to the hotel, and not under BID. So if the CVA was going to change the rules, they should change that segment. Mayor Spiegel didn't believe the CVA would be changing that segment. He said Mr. Becke�man was present if anyone wanted to ask him questions. Councilman Ferguson said he would love to see the CVA write a $1.4 million check back to the Marriott, if their rules were so rigid. As one gentleman said, if the Council had problems with senior executives,those could be dealt with. Councilman Ferguson moved to, by Minute Motion, denied Resolution No. 09-14. Motion was seconded by Finerty and carried on a 3-2 vote, with Ketly and Spiegel voting NO. XIII. ORDINANCES For Introduction: None 15 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING FEBRUARY 26, 2009 For Adoption: None XIV. NEW BUSINESS A. REQUEST FOR AWARD OF DESIGN/BUILD CONTRACT TO COPLEY DESIGN COLLABORATIVE FOR IMPROVEMENTS TO HOVLEY SOCCER PARK AND COMMUNITY GARDEN CONSTRUCTION (CONTRACT NO. C28610). Parks Facilities Manager Jay Niemczak stated that in September staff received authorization from the Council to request proposals for jointly funded design build project,which included the construction of pickle ball and petanque courts on the vacant lot south of of Hovley Soccer Park field. The design included two community gardens requested by the Community Services Department, one at Hovley Soccer Park and University Park. Staff met with the lowest responsible bidder Mr. Steven Copley of Copley Design Collaborative. Mr. Copley provided a design that met all the basic qualifications and also recommended additional improvements that would enhance the project. Staff agreed with the proposed improvements, and requested that Council award the project to Copley Design. He said funds were provided for the Community Gardens by the Community Services Department, and funds were available for the remainder of the project through Park Fund 430. Councilman Kelly asked why the Council was asked to approve $175,400 and the bid was $144,000. Mr. Niemczak responded there were recommended improvements that staff felt would enhance the project. Further responding, he said 50%was for the soccer park and 50% was for the community gardens, and most of the improvements were forthe pickleball courts, horseshoe pits, and picnic area. MR. CHRIS THOMAS, 122 Traviso Drive, Palm Desert, stated he was the Pickleball Ambassador for the United States of America, Pickleball Association forthe Coachella Valley, and the Directorforthe Pickleball event of the recentlycompleted International Sports Festival,which was sponsored by the City of Palm Desert. He pointed out that pickleball was the fastest growing sport in America, and also growing fast here in Palm Desert. He said this was the fourth year that pickleball was part of the International Sports Festival and had by far the most participants players of any single sport, which was 173 participants, and four years ago it was 50. He believed next year would be more than 200. He said when people come to Palm 16 PRELIMINARY MINUTES �� �� REGULAR PALM DESERT CITY COUNCIL MEETING FEBRUARY 26, 2009 Desert from upstate to play in this tournament, ask if the City had any permanent pickleball courts, the answer is no. People share tennis courts at Cahuilla Hills, which the City agreed to paint for dual purpose. On Monday, Wednesday, and Thursday mornings, those pickleball courts are occupied fully with people waiting to play. He said tennis courts were under-utilized, and he believed it was time for pickleball to get at least two permanent courts. He understood these were hard economic times,and that these proposed courts were part of a larger proposal, which had a significant dollar expenditure. In light of that, he would provide a one-page article, how public and private got together in Middletown, Ohio and took two public tennis courts that were un-utilized and turned them into six beautiful courts for a total cost of$3,000. He said if his proposal fail in terms of Hovley Park, he would suggest that the Council direct staff to turn the two tennis courts at Cahuilla Hills and turn them into four permanent pickleball courts. Ms. Riddle noted that the existing two Community Gardens were 100% occupied, and each had a waiting list; there are 38 on the San Pablo waiting list, 16 on the Freedom Park, and 34 on the Hovley Park, which was the one being planned. The University Park didn't have a waiting list because it hadn't been advertised. Councilmember Benson was in favor in of converting the Cahuilla tennis courts into pickleball courts, because they've never been a success. Mayor Pro Tem Finerty stated that spending $175,000 for this request was not the proper time. She said if there were two tennis courts that were under- utilized that could be converted into pickleball courts at a nominal expense, that was the direction the City should pursue. She said this plan could be kept on file, but at this time she could not support the project. Councilman Ferguson and Councilman Kelly agreed with Councilmember Benson and Mayor Pro Tem Finerty. Mayor Spiegel noted that these funds were budgeted. He said more than $5 million was taken out of the budget for the remainder of the year. He said people want to grow their own produce, tomatoes, cucumbers, etc., and this gave them the opportunity to do so. He said Ms. Riddle had just given the number of people on the waiting list for the community gardens. He said to deny the low-income people who lived moderately, and those in the new homes near the back of the soccer fields, was wrong. He felt the City was taking away something from people during a time when they couldn't afford to do anything; they couldn't afford to play horseshoes, pickleball, or barbeque outside because there was no place to do it. He felt it was the right project, at the right time, and for the right reasons. 17 � �� � PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING FEBRUARY 26, 2009 Councilman Kelly stated he participated in the Community Gardens for two years and thought they were wonderful. He had seen them all over in other cities and they were not nearly as expensive as Palm Desert. His biggest problem, that while he was there for two years, he was one of three people that grew anything and most other pots had weeds. He was in favor of the San Pablo gardens because it would provide landscape for the entrance to City Hall, but he was disappointed in the two years he participated there. He said it was a high expense at this day and age. Councilman Ferguson moved to, by Minute Motion deny the recommendation but authorize staff to take a look at converting the Cahuilla Hills Park tennis courts into Pickleball Courts in a total amount not to exceed $5,000, further directing that it contact Middletown, Ohio, for how it accomplished a similar project. Motion was seconded by Finerty and carried by a 4-1 vote, with Spiegel voting NO. B. REQUEST FOR APPROVAL OF THE 2009 ART OF FOOD & WINE PALM DESERT, NOVEMBER 5 - 8. Marketing Manager Kristy Kneiding noted the staff report that outlined a budget in the amount of$375,000, which represented a 39.5% reduction in the budget to produce the Art of Food & Wine this year. Staff worked with Kemper Sports at trying to maintain the integrity of the event,while still taking into consideration the City's strict budget concerns for the upcoming year. Staff felt the event was extremely important to the City because it provided a reason for people to come to Palm Desert. Staff recommended approval of this budget and noted Event Director Amy Harris and Controller for Kemper Sports John Clark were present to answer any questions. MR. LEON BENNET, 48350 Crestview Drive, Palm Desert, stated he was a resident of Palm Desert for 22 years. He was in support of the Art of Food & Wine event because it continued to keep Palm Desert before the region, the nation, and possibly the world; it brought visitors, vendors, and tourist to the valley, and the event helped the City maintain a vital sales tax and Transient Occupancy Tax(T.O.T.) base. He had seen many events mature and a few that had failed. He noted that Palm Springs Film Festival was one of those successful events that was recognized among the world's best, which didn't happen in a two or three year period or without the support of the City of Palm Springs. The City of Palm Springs supported their event on a risk budget for the past 19 years, and in 2008 the City supported the event with$350,000 because it provided the City with image, tourist, sales tax, and T.O.T. Another successful event was the Southwest Art Festival that was now 23 years old and brought in nearly $1 million in art sales, but it started small and struggled for years. He said the owners of the Indian Wells Tennis Garden stadium had the vision and tenacity to build the new facility here in 18 � �� PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING FEBRUARY 26, 2009 the valley, instead of having it in Singapore or Las Vegas as it was rumored. He said the tennis events brought in players, staff, media crew, and tourist to the valley. He said another great new vision last fall was the first outdoor professional basketball game at the Indian Wells Tennis Garden (Phoenix Suns vs the Denver Nugget) that boosted the valley's image and fun in the sun. He said Palm Desert could add such events like the Bob Hope Classic, La Quinta Arts Festival, or a Tamale Festival. He said back in April or May 2001, Councilman Ferguson addressed the Palm Desert Chamber of Commerce on Energy Conservation and recalled being convinced that replacing his 14 year old air condition unit would save money and electricity, which it did. He wondered how Councilman Ferguson's vision of saving 30% on energy in five years would be accomplished, but he now sees a vision that was well organized and making rapid progress. He thanked the Council for the free energy audit, free light bulbs, and free LED Christmas lights. He encouraged the Council to keep having great visions and hoped that one of them was the Art of Food & Wine. He believed events such as the Art of Food & Wine needed to be supported, even in tough times, to protect the $1.6 billion made in retail sales and to keep hotel rooms filled; the City's website reported a revenue of$9.1 million last year. He said it took years for events to mature, and like the City of Palm Springs, Palm Desert may have to consider a long-term investment to make the Art of Food & Wine a world class event. He hoped that Palm Desert will one day be featured in Bon Appetit or Wine Spectator. Councilman Kelly stated it was a known fact that he supported this event last year, but it was a different time now. He said the City was trying to adjust the budget to make it balance. He couldn't approve anything until the budget was balanced, and this event will need to be considered and prioritized along with everything else so that it's done in a way that would promote the City. Mayor Pro Tem Finerty stated she opposed the Art of Food &Wine because it had been a money loser since day one; last year the City took a loss of $560,000. Although staff was requesting $375,000 for this year, the event budget was predicated on obtaining$215,000 in corporate sponsorships and $66,000 in ticket sales, etc. However, if those things didn't come to fruition, the City would ultimately be on the hook. She said this event was given the opportunity to grow in three years and it hadn't, and the event had a list of sponsors that may not renew. She encouraged the Marriott to continue as a major sponsor, because this type of event should come from the private sector. She didn't believe it was the proper role of government to promote drinking and driving. She said the City paid the Sheriff's Department $14 million a year, and one of their functions are the Driving Under the Influence (DUI)check points. She said obviouslywith this economy,this event was out of the question, and she couldn't believe it was on the agenda. 19 �� PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING FEBRUARY 26, 2009 Counciiman Ferguson stated this event was given three year to grow, and noted that it was the Marriott that approached the City in the first year, and the City partnered up with them. Funding wise, the City stepped its foot on the gas pedal by contributing $750,000 the second year, and $650,000 last year. He said the primary grand tasting event was held at the Marriott, and if they believed in the event, he recommended they use the 2% surcharge they created to fund it and have it on their own premises. They could then transport people on golf carts, so they didn't drink and drive. He liked the event and would like to revisit the event in 2010, but he certainly couldn't see the City sponsoring it this year. He agreed with Councilman Kelly that sponsorship commitments shouldn't be made prior to balancing the City's budget, especially when sponsorship assumptions were being made based on the good years, which was not good planning. He said he would vote against the event for this year. Councilmember Benson stated that her comments had already been said by her colleagues, and she too was a supporter of the event. She said skipping a year would not hurt the event or the momentum. She noted the Joanna Hodges Piano event was a yearly event that was changed to every two years, and that event was still going strong. She said sponsors will also be looking at their bottom line, and it would be prudent for Palm Desert to skip it for one year and revisit on whether to continue or find another signature event that would fit the City of Palm Desert.The comments she had received in the past few weeks was that the event benefitted the Marriott, that people didn't go to EI Paseo, and that it wasn't a total community event. She said 25°/a of the people that came from out of town was not a huge number when the total attendance was only 4,000. Mayor Spiegel said the event was a great promotion for the City of Palm Desert, but agreed with Councilman Kelly that Council didn't know what the budget would be for next year. He said until Council knew if there would be funds to support it, he wouldn't vote for it; however, it didn't mean he wasn't in favor of the event. He hoped that if the economy got better, the City would be able to resume the event next year. Councilman Ferguson moved to, by Minute Motion, direct that the Art of Food & Wine Festival not be undertaken for 2009 but that it be revisited for hosting an event in 2010. Motion was seconded by Kelly and carried by a 5-0 vote. 20 PRELIMINARY MINUTES T REGULAR PALM DESERT CITY COUNCIL MEETING FEBRUARY 26, 2009 C. REQUEST FOR APPROVAL OF THE ENERGY INDEPENDENCE PROGRAM(EIP)PHOTOVOLTAIC SOLAR LOAN FOR VERIDIAN, LLC,AT 42-635 MELANIE PLACE (CITY LOAN NO. 08-151CS). Mr. Conlon noted the funds forthe Energy Independence Program(EIP)was budgeted. He said the EIP loans were processed first come,first serve basis and was happy to report this was the first commercial loan. The loan was for large 60,500 watt solar system, which was about the same size of the City's north carports. The term of the loan is for 20 years, at a 7% interest rate. Over the term of the loan, the City will receive $489,000,431 in interest, and the primary lender has approved the loan; each tax roll would be $25,308. He noted the Bill Baxley, owner, Chuck Shepardson, Landscape Architect, and Dave Mourhess, solar contractorwere present to answer any questions. Mayor Pro Tem Finerty stated she too was happy this was the City's first commercial loan, but $500,000 was a lot of money. She asked what would happen to the loan if the Applicant went bankrupt. Mr. Conlon responded the loan was secured by a loan on the property, which was similar to an assessment, and it was in a superior position to a first or second trust deed. He said typically if something happened, and the property were to go into foreclosure, the primary lender would keep the property taxes current. Payment on this loan will be on the property tax rolls. Mayor Spiegel asked who's money was being used, the City's or the bank's. Mr. Conlon responded the City was using EIP funds for this loan. What he was referring to previously was that the loan was approved by the owners first trust deed bank. He said this loan was paid from the EIP Phase II that was funded by the bond proceeds from the Redevelopment Agency. Mayor Pro Tem Finerty stated she was still unclear on the answer to her question, and what was the City first in line to take over if the Applicant went bankrupt. Mr. Conlon said if the owners went into personal bankruptcy that was something different, but if the property went into foreclosure, the proceeds of that foreclosure sale would go to pay the property taxes first, which meant the City was in a superior position to Bank of America or whoever the second trust deed was. He said this was a very secure loan. Councilman Ferguson asked if it was true with all the policy coverages for the building, casualty loss, and acts of God. In order words, if the building was flatten tomorrow, would the loan still be insured. 21 � PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING FEBRUARY 26, 2009 Mr. Conlon responded that it was. He said improvements to the property would be covered by the property insurance that the Applicant held. Responding to question, he said the Finance Committee had not reviewed this loan. Further responding, he agreed to put it through the Audit, Investment & Finance Committee. Mayor Spiegel recalled at one point staff was looking for a third-party to finance the loans. Mr. Conlon stated staff had received the Request for Proposals forthird-party funding for Phase III yesterday at 5:00 p.m. Mr. Gibson added that the City received four proposals from four different firms, but they hadn't been opened yet. Councilman Kelly stated he understood residential loans and what the City did to encourage the objective of decreasing energy consumption by 30%. What concerned him, aside from going into competition with other financial institutions, was that he didn't think the City should become a financial institution, and it was now getting into commercial loans. He agreed the Finance Committee should have looked at this loan in the first place, but on the other hand, he couldn't vote in favor of a $500,000 loan under this process because it didn't seem right. Councilman Ferguson moved to, by Minute Motion, referred the matterto the Audit, Investment & Finance Committee while the Committee is also reviewing the RFPs for funding the EIP for recommendation back to the City Council. Motion was seconded by Finerty and carried by a 4-1 vote, with Spiegel voting NO. D. REQUEST FORAMENDMENT OF THE CITY'S FACADE ENHANCEMENT PROGRAM (FEP) GUIDELINES. Project Administrator Bryce L. White stated staff was recommending amending the guidelines to the Facade Enhancement Program (FEP) by placing a maximum dollar cap for any one project at $75,000. The change will enable the City to continue to fund under the guidelines for small and medium projects, but larger projects would be limited by the cap. Historically, the City would still be able to fund 73% of the project. Councilmember Benson moved to, by Minute Motion, amend the FEP Program Guidelines to set a fiotal maximum cap for FEP Consideration Funds to $75,000 for FEP Projects. Motion was seconded by Ferguson. 22 PRELIMINARY MINUTES � RAF� REGULAR PALM DESERT CITY COUNCIL MEETING FEBRUARY 26, 2009 Councilman Kelly stated the FEP was a great program,the ones that needed to use it didn't, such as the ones on Highway 111, on the north side, between San Pablo and the first block east. At one time the cap for the FEP was lower and later raised, but he was beginning to have his doubts about the program since those building that looked the worse weren't getting treatment. Mr.White responded that those owners were approached by stafffrequently, including the one mentioned. Unfortunately,the funds are an inducement for owners to put money into their property, and historically the FEP funds cover approximately 15-20% of the cost of the projects; in fact, many projects had been lower than 10%. He agreed the program was not working at the locations mentioned by Councilman Kelly; however, there were areas that it was working. Councilman Kelly said the cap was little if the FEP wasn't working in the areas where it was needed. Mayor Spiegel stated the problem was that property owners needed a partner, and if they didn't want to be a partner, the City couldn't condemned them. Councilmember Benson made the comment that if tenants didn't pay their rent, maybe the owners would loosen up. Mayor Pro Tem Finerty said the FEP started out at $25,000, then raised to $40,000, and now to $75,000, which she thought was quite an increase. Mr. White responded that what occurred there was that it increased to $40,000 for standard size projects but for larger project, the City had a formula that would allow those projects to receive more funds based on the size of the project. The City had funded more than $75,000 for projects in the past, and right now the recommendation was to limit the cap to $75,000 for all projects. Mayor Spiegel called for the vote, and the motion had a NO ACTION on a tie vote, with Benson and Spiegel voting YES, Kelly and Finerty voting NO, and Ferguson ABSENT. Mayor Spiegel called for the vote again, and the motion carried on a 3-2 vote, with Kelly and Finerty voting NO. 23 � PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING FEBRUARY 26, 2009 XV. CONTINUED BUSINESS A. REQUEST FORAUTHORIZATION FOR STAFF 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, and December 11, 2008). Councilman Kelly moved to, by Minute Motion, continue this matter to a date uncertain. Motion was seconded by Finerty and carried by a 4-0 vote, with Ferguson ABSENT. B. REQUEST FOR APPROVAL OF THE REPLACEMENT OF PALM DESERT FIRE STATION NO. 71 AMBULANCE CAB/CHASSIS AND REFURBISHMENT OF ITS EXISTING PATIENT COMPARTMENT AT A COST OF $86,875 PLUS APPLICABLE TAXES (Continued from the meetings of January 22, and February 12, 2009). Councilman Kelly moved to, by Minute Motion, continue this matter to a date uncertain. Motion was seconded by Finerty and carried by a 4-0 vote, with Ferguson ABSENT. C. RESOLUTION NO. 09-9 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, DENYING A VARIANCE TO CONSTRUCTA GOLF CART SHED WITHIN THE REQUIRED FIVE-FOOT SIDE YARD SETBACK LOCATED ON PROPERTY LINE AT 46-020 BURROWEED LANE Case No. VAR 08-261 (Michael and Marianne Toia, Applicants/Appellants) (Continued from the meeting of February 12, 2009). Councilman Kelly recused himself from voting on this item. Mayor Pro Tem Finerty moved to waive further reading and adopt Resolution No. 09-9. Motion was seconded by Ferguson and carried on a 3-1 vote, with Spiegel voting NO, and Kelly ABSENT. 24 PRELIMINARY MINUTES �� REGULAR PALM DESERT CITY COUNCIL MEETING FEBRUARY 26, 2009 D. REQUEST FOR APPROVAL OF $60,000 IN FACADE ENHANCEMENT PROGRAM CONSIDERATION FUNDS FOR THE "EL PASEO RETAIL BUILDING" LOCATED AT 73-750 EL PASEO (Steven J. Gordon, EI Paseo Retail Group, LLC, Applicant) (Continued from the meeting of February 12, 2009). Mr. White stated this particular project was one of the few dual facade projects and called attention to the staff report that included before and after photos. He said dual projects were limited to the President's Plaza area where the City was trying to encourage store fronts. The project had some unique circumstances that needed to be addressed, primarilyAmericans with Disabilities Act (ADA) issues. Staff was recommending approval of the project, and noted that the project complied with the revised FEP guidelines that were approved this evening. Responding to question, he said the total cost of the Chapman project was $375,000 with the City putting in $80,000. The proposed project was expected to cost $693,000 of which staff was recommending $60,000 in FEP funds. Councilmember Benson moved to, by Minute Motion, approve $60,000 in Facade Enhancement Program consideration funds to the EI Paseo Retail Group, LLC, for the "EI Paseo Retail Building" located at 73-750 EI Paseo — funds are available in Account No. 400-4800-454-3875. Motion was seconded by Ferguson and carried by a 4-0 vote, with Kelfy ABSENT. C. REQUEST FOR APPROVAL OF PROPOSAL FOR THE PAINTER'S PATH PROJECT FOR ENTRADA DEL PASEO (CONTRACT NO. C27570E) (Continued from the meeting of February 12, 2009). Mr. Twedt noted this item was continued so that Councilmember Benson could be present to comment because the project was her suggestion to the AIPP Commission. The project was initiated 1'/2 years ago when the City didn't have budgetary problems. He suggested Council approve one design, and in the future when the economy improved and perceptions of commissioning art improved, the City could invited the selected artist back to create the selected piece. Councilmember Benson stated this project would honor and distinguish the painters of Painter's Path as a historic part of the City of Palm Desert, given that Andy the Donkey Man didn't pan out. She was willing to put the project on hold because it didn't need to be done right now. She said the public probably didn't realize where funds came from for art projects and approving one at this time seemed a little frivolous. She said this project could be revisited when everything was back on an even-keeled. 25 �� PRELIMINARY MINUTES � REGULAR PALM DESERT CITY COUNCIL MEETING FEBRUARY 26, 2009 Councilmember Benson moved to, by Minute Motion continue this item to a date uncertain. Motion was seconded by Ferguson and carried by 5-0 vote. XVI. OLD BUSINESS A. REQUEST FOR AUTHORIZATION FOR STAFF TO NEGOTIATE AN AMENDMENTTO THE REIMBURSEMENTAGREEMENT WITH SUNRISE DESERT PARTNERS FOR STREET IMPROVEMENTS ASSOCIATED WITH THE TOSCANA COUNTRY CLUB DEVELOPMENT (CONTRACT NO. C18170). Mr. Greenwood stated that Toscana Country Club was located directly west of Palm Desert Country Club, between Fred Waring Drive and Hovley Lane East. At the time, Hovley Lane East was a two-way road, and the City of Palm Desert desired for it to be a full four-lane road. The City entered into an agreement with Sunrise Desert Partners to have them go ahead with the construction early, which they did and the improvements were completed in a timely manner, and then the City entered into a loan agreement that was now due. When staff notified the developer,they requested an extension on the payment of the principal and offered to pay the interest, which was the proposal before the Council. Responding to question, Mr. McCarthy said it was staff's recommendation to go ahead and negotiate the extension. The borrower agreed to pay all interest that was accrued at a reasonable rate in today's environment, and hopefully in a more favorable credit market, it can take out the loan. MR. PHIL SMITH, 300 Eagle Dance Circle, Palm Desert, stated he was the Regional President of Sunrise Company and Sunrise Desert Partners who was the party to the subject agreement was one of their companies. He said the theme of this evening was fiscal responsibility and conservatism, and his company was in the same position. He said their company was financially sound with a substantial net worth, and no debt on any of the properties. Obviously, it was a time of very slow home sales, and they were trying hard to control their cash flow. It occurred to them that this might be a proposal that would meet with Council's approval, because they offered to pay all of the accrued interest immediately and continue to pay the interest on a current basis as it became due, eitherquarterly, monthly, or howeverthe City preferred. They propose that the interest rate continued at a 6% interest rate; however, they were flexible on interest rate and flexible on terms. He said staff seemed amenable to the proposal and recommended moving forward with negotiating an agreement. He offered to answer any questions and would appreciate the Council's consideration. 26 PRELIMINARY MINUTES �� REGULAR PALM DESERT CITY COUNCIL MEETING FEBRUARY 26, 2009 Councilmember Benson stated the City had a good relationship with Sunrise Desert Partners, they are an asset to the City, and 6% was a good rate. Mayor Pro Tem Finerty concurred. Councilmember Benson moved to, by Minute Motion, authorize staff to negotiate an amendment to the subject Reimbursement Agreement with Sunrise Desert Partners, Palm Desert, California, requiring interest to be brought current while extending payment of the principal for a period of two years. Motion was seconded by Finerty and carried by a 5-0 vote. B. REQUEST FOR APPROVAL OF AMENDMENT NO. 3 TO CONTRACT NO. C22310A FORADDITIONAL DESIGN SERVICES AND APPROVAL OF CONSTRUCTION COOPERATIVE AGREEMENT NO. 8-1425 WITH THE STATE OF CALIFORNIA DEPARTMENT OF TRANSPORTATION FOR THE MONTEREY AVENUE INTERCHANGE RAMP MODIFICATION PROJECT ON INTERSTATE 10 (PROJECT NO. 669-02). Engineering Manager John Garcia stated that the amendment was significant, but staff did their best to negotiate with RBF Consulting and reduced the cost of this amendment by more than 25% from the initial cost. The good news was that the project was at 60% design and poised to be advertised by the end of the year. He said in the current bidding environment the City may get good prices. He said it was quite an experience getting this project through Caltrans and the Federal Highway Administration. Responding to question about funding, he said the project had multiple funding; the City had a 50% funding agreement with Coachella Valley Association of Governments (CVAG), Congestion Mitigation and Air Quality (CMAQ), and other grants to help pay for some of the landscaping. Further responding, he said the project was funded 50% in grants, and the rest had to be made up from City and Redevelopment funds, but there were no General Fund expenses with this project. Mayor Pro Tem Finerty asked if this was one of the projects listed on the wish list that was submitted. Mr. Garcia responded that with regard to the stimulus, they were looking for projects that had a three-month window to generate jobs, and this project didn't qualify. He said more likely the other freeway project in the valley would take the brunt of those funds. Councilman Kelly stated the City was a long way down the road with this ramp project and had made a lot of progress, which was difficult to do. He said vehicles continued to stack up, and the City needed to get people into 27 PRELIMINARY MINUTES �� REGULAR PALM DESERT CITY COUNCIL MEETING FEBRUARY 26, 2009 Palm Desert's commercial areas and shops, and also help its citizens get on the freeway. Councilman Kelly moved to, by Minute Motion: 1)Approve Amendment No. 3 in the amount of $409,285 to the subject contract with RBF Consulting, Inc., Palm Desert, California, for additional design services to complete plans, specifications and estimate, bidding, award, and construction support services for the Monterey Avenue Interchange Ramp Modification Project on Interstate 10;2)approve Cooperative Agreement No.8-1425 between the City of Palm Desert and State of California Department of Transportation (Caltrans) for the construction phase of the Monterey Avenue Interchange Modification Project on I-10; 3)authorize the Mayor to execute said Amendment No. 3 and Cooperative Agreement No. 8-1425 — funds for amendment No. 3 to contract with RBF are available in Measure "A" Monterey Ramp Modification Account, No. 213-4389-433-4001; funds identified in Cooperative Agreement No. 8-1425 are included in FY 2009 Measure "A," Monterey Ramp Modification Account, No. 213-4389-433-4001 and I-10 at Monterey-Landscaping Account, No.400-4646-433-4001;additional Fund 213 monies will be requested in FY 2010 Budget to complete funding of the project. Motion was seconded by Ferguson and carried by a 5-0 vote. C. 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). Mayor Pro Tem/Vice Chairman Finerty 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 Ferguson and carried by a 5-0 vote. XVII. PUBLIC HEARINGS A. CONSIDERATION OF AN APPEAL OF A PLANNING COMMISSION ACTION, DENYING A REQUEST FOR A VARIANCE FOR AN EXCEPTION TO PALM DESERT MUNICIPAL CODE SECTION 25.68 - SIGNS, TO PERMIT A THIRD MONUMENT SIGN FOR CARL'S JR. IN THE UNIVERSITY VILLAGE CENTER LOCATED AT 36-879 COOK STREET Case No. VAR 08-304 (National Sign and Marketing/The Evans Company, Applicants/Appellants)(Continued from the meetings of December 11,2008, and February 12, 2009). Principal Planner Tony Bagato stated the Applicants were unable to attend, but requested this item be continued because they would like to propose a new monument sign for the Center. 28 �� �� PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING FEBRUARY 26, 2009 Mayor Spiegel declared the public hearing open and invited testimony on this item. With no testimony offered, he left the public hearing open. Councilman Kelly moved to, by Minute Motion continue to the meeting of March 12, 2009. Motion was seconded by Finerty and carried by a 5-0 vote. -VIII. REPORTS AND REMARKS A. CITY MANAGER None B. CITY ATTORNEY None C. CITY CLERK 1. Consideration of Friday, March 20, 2009, for City Council Study Session to Meet with Departments Regarding the Fiscal Year 2009- 2010 Budget. Afterdiscussion aboutthe date and process,with City Council concurrence, Friday, March 20, 2009, from 2:00 p.m. - 5:00 p.m. was scheduled for the first Study Session on the FY 2009-2010 Budget. D. PUBLIC SAFETY o Fire Department None o Police Department None � E. MAYOR AND MEMBERS OF THE CITY COUNCIL o City Council Requests for Action: 1. Rec�uest to Adjust the May 2009 Regular City Council Meeting Schedule (Mayor Robert A. Spiegel). 29 � � PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING FEBRUARY 26, 2009 Mayor Spiegel explained that due to the League of California Cities "Mayors & Council Members Executive Forum - San Diego 09" being held when the Council would hold its second meeting in May on the 28th, he asked for his colleagues' concurrence that the schedule be adjusted to hold two meetings in May on the first and third Thursdays instead of the second and fourth. Councilman Kelly moved to, by Minute Motion, adjust the May 2009 regular City Council Meeting schedule to hold meetings on Thursday, May 7, and Thursday, May 21 (instead of May 14 and May 28). Motion was seconded by Finerty and carried by 5-0 vote. o City Council Committee Reports: None o City Council Comments: 1. As an honorary member of the Police Activities League (PAL) of the Coachella Valley, Mayor Pro Tem Finerty announced that the organization was honoring Gary Jeandron at a gala on March 8. The Executive Director of PAL asked her to invite her colleagues so that they could attend and support this worthy cause. XIX. ADJOURNMENT With City Council concurrence, Mayor Spiegel adjourned the meeting at 5:47 p.m. ROBERT A. SPIEGEL, MAYOR ATTEST: RACHELLE D. KLASSEN, CITY CLERK CITY OF PALM DESERT, CALIFORNIA 30