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HomeMy WebLinkAboutPrelim - CC - 06/10/2010 DRAFT PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING THURSDAY, JUNE 10, 2010 CIVIC CENTER COUNCIL CHAMBER 73510 FRED WARING DRIVE, PALM DESERT, CA 92260 I. CALL TO ORDER - 3:00 P.M. Mayor Finerty convened the meeting at 3:00 p.m. 11. ROLL CALL Present: Councilmember Jean M. Benson Mayor Pro Tem Jim Ferguson Councilman Richard S. Kelly Councilman Robert A. Spiegel Mayor Cindy Finerty Also Present: Justin McCarthy, Acting City Manager/RDA Executive Director David J. Erwin, City Attorney Stephen Y. Aryan, Assistant to the City Manager Russell Grance, Director of Building & Safety Lauri Aylaian, Director of Community Development Paul S. Gibson, Director of Finance/City Treasurer Janet M. Moore, Director of Housing Bo Chen, City Engineer Frankie Riddle, Director of Special Programs Bill Hunley, Battalion Chief, Palm Desert Fire/Riverside Co. Fire Dept./Cal Fire Dorian Cooley, Division Chief, Palm Desert Fire/Riverside Co. Fire Dept./Cal Fire Andrew Shouse, Asst. Chief, Palm Desert Police/Riverside Co. Sheriff's Dept. Grace L. Mendoza, Deputy City Clerk III. ORAL COMMUNICATIONS - A (CLOSED SESSION ITEMS) None PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 10, 2010 IV. ADJOURN TO CLOSED SESSION Request for Closed Session: Conference with Real Property Negotiator pursuant to Government Code Section 54956.8: 1) Property: APN 628-130-015 Negotiating Parties: Agency: John M. Wohlmuth/Lauri Aylaian/City of Palm Desert/ Palm Desert Redevelopment Agency Property Owner: Barracuda, LLC Under Negotiation: x Price x Terms of Payment 2) Property: APN 628-130-008 Negotiating Parties: Agency: John M. Wohlmuth/Lauri Aylaian/City of Palm Desert/ Palm Desert Redevelopment Agency Property Owner: David Nelson Under Negotiation: x Price x Terms of Payment 3) Property: 72559 - 72567 Highway 111, Palm Desert (APNs 640-370-015, 640-320-004) Negotiating Parties: Agency: John M. Wohlmuth/Justin McCarthy/City of Palm Desert/ Palm Desert Redevelopment Agency Property Owner: City of Palm Desert Other Parties: Palm Springs Art Museum Under Negotiation: x Price x Terms of Payment 4) Property: Lease Property - 73-470 EI Paseo, Suite No. 13, Palm Desert (APN 627-202-010) Negotiating Parties: Agency: John M. Wohlmuth/Justin McCarthy/City of Palm Desert/ Palm Desert Redevelopment Agency Property Owner: EI Paseo Square, LLC Under Negotiation: x Price x Terms of Payment 5) Property: APN 637-242-004 Negotiating Parties: Agency: John M. Wohlmuth/Justin McCarthy/Janet Moore/ City of Palm Desert/Palm Desert Redevelopment Agency Property Owner: Bank of New York Under Negotiation: x Price x Terms of Payment 2 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 10, 2010 6) Property: APN 625-031-015 Negotiating Parties: Agency: John M. Wohlmuth/Justin McCarthy/Janet Moore/ City of Palm Desert/Palm Desert Redevelopment Agency Property Owner: Deutsche Bank Under Negotiation: x Price x Terms of Payment 7) Property: APNs 627-051-022, 625-064-016, 619-571-014 Negotiating Parties: Agency: John M. Wohlmuth/Justin McCarthy/Janet Moore/ City of Palm Desert/Palm Desert Redevelopment Agency Property Owner: Fannie Mae Under Negotiation: x Price x Terms of Payment 8) Property: APN 625-062-029 Negotiating Parties: Agency: John M. Wohlmuth/Justin McCarthy/Janet Moore/ City of Palm Desert/Palm Desert Redevelopment Agency Property Owner: Federal Home Loan Mortgage Corp. Under Negotiation: x Price x Terms of Payment 9) Property: APN 625-061-003 Negotiating Parties: Agency: John M. Wohlmuth/Justin McCarthy/Janet Moore/ City of Palm Desert/Palm Desert Redevelopment Agency Property Owner: LaSalle Bank Under Negotiation: x Price x Terms of Payment 10) Property: APN 627-153-003 Negotiating Parties: Agency: John M. Wohlmuth/Justin McCarthy/Janet Moore/ City of Palm Desert/Palm Desert Redevelopment Agency Property Owner: US Bank Under Negotiation: x Price x Terms of Payment 11) Property: APNs 625-062-012, 637-262-017 Negotiating Parties: Agency: John M. Wohlmuth/Justin McCarthy/Janet Moore/ City of Palm Desert/Palm Desert Redevelopment Agency Property Owner: Wells Fargo Under Negotiation: x Price x Terms of Payment 3 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 10, 2010 12) Property: APNs 694-170-014, 694-170-023 Negotiating Parties: Agency: John M. Wohlmuth/Lauri Aylaian/City of Palm Desert Property Owner: City of Palm Desert Other Parties: Neil Bramdon/Emerald Brook, LLC Under Negotiation: x Price x Terms of Payment NOTE: THE FOLLOWING ITEM WAS LISTED ON AN AGENDAADDENDUM POSTED 72 HOURS PRIOR TO THE MEETING. Conference with Legal Counsel regarding existing litigation pursuant to Government Code Section 54956.9(a): a) PDCC Development LLC, Petition for Bankruptcy, United States Bankruptcy Court, Central District of California. Conference with Legal Counsel regarding significant exposure to litigation pursuant to Government Code Section 54956.9(b): Number of potential cases: 2 Upon a motion by Ferguson, second by Benson, and 5-0 vote of the City Council, Mayor Finerty adjourned the meeting to Closed Session at 3:01 p.m. She 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 Cindy Finerty VII. INVOCATION - Councilman Robert A. Spiegel VII1. ORAL COMMUNICATIONS - B MR. PETER RITTENHOUSE, Executive Director of the Joslyn Center,stated they held their third joint activity with the Youth Committee and seniors last week, and it was an overwhelming success. He believed merging the two generations was good for both groups, because often seniors have an impression of the younger generation that's not so favorable, but the twenty youth members who participated were a wonderful example of what is right with that generation. He said they were smart, polite, courteous, and kind to seniors, and it was a pleasure to have them. He thanked the City Council for supporting the activity and stated Director of Special Programs Frankie Riddle and Administrative Secretary Amy Lawrence did a great job of putting on the activity with them. 4 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 10, 2010 MR. JOHN MARMAN, President of the Sister Cities Foundation, formally invited the City Council to a reception for some of their Sister Cities teachers from Gisborne, New Zealand. The teachers were in Palm Desert to do the Aesthetic Education Program at the McCallum Theatre, which had been done since 2002. The program begins on Monday and the teachers plan to stay for ten days. The reception will be held at the Mclntosh House on Saturday, June 19, 2010, at 5:00 p.m. followed by a no-host dinner. MR. ROB BALLEW, Family YMCA of the Desert, Palm Desert, stated he had the pleasure of watching three different preschools in the valley graduate, one of which was the Jean M. Benson Childcare Center. He said 56 children graduated in their caps and gowns, sang songs, and had a wonderful experience, which the City helped provide. Additionally, he thanked the City Council for the great program at Lincoln Elementary School, which was initiated a few years ago. Those children had a wonderful year and wonderful experience. IX. AWARDS, PRESENTATIONS, AND APPOINTMENTS A. PRESENTATION TO RECOGNIZE ROBERT DUNCAN FOR HIS SERVICE TO THE CITY OF PALM DESERT AND ITS CITIZENS' ADVISORY COMMITTEE FOR PROJECT AREA NO. 4. On behalf of the City Council, Mayor Finerty presented an engraved crystal clock to Mr. Robert Duncan in appreciation forthe time and input he provided to the Project Area No. 4 Committee. Mr. Duncan thanked the City Council for the opportunity to be part of the Area 4 work, because it was important to him as he lived in that area. He said the Committee had some significant issues and thanked the City Council for the opportunity to serve. Additionally, he thanked his care giver who accompanied him, stating she helped him recover and kept him moving. He stated he hoped to return one day to do something else for the City, because he loved living in Palm Desert; it was a wonderful place to live. Mayor Finerty thanked him for his comments and care giver as well. X. CONSENT CALENDAR A. MINUTES of the Regular City Council Meeting of May 27, 2010. Rec: Approve as presented. Approved. 4-0-1 (Ferguson ABSTAINING) 5 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 10, 2010 B. CLAIMS AND DEMANDS AGAINST THE CITY TREASURY - Warrant Nos. 230, 239, and 240. Rec: Approve as presented. C. COMPLIANCE ANALYSIS AND INVESTMENT REPORTS for the Month of April 2010 (Joint Consideration with the Palm Desert Redevelopment Agency). Rec: Receive and file. D. CITY COMMITTEE AND COMMISSION MEETING MINUTES. 1. Audit, Investment & Finance Committee Meetings of February 23, 2010, March 23, 2010, and April 27, 2010. 2. Cultural Resources Preservation Committee Meeting of April 27, 2010. 3. Landscape Beautification Committee Meeting of March 17, 2010. 4. Marketing Committee Meeting of April 20, 2010. 5. Parks & Recreation Commission Meeting of May 18, 2010. Rec: Receive and file. E. RESOLUTION NO. 2010 -38-A Resolution of the City Council of the City of Palm Desert, California, Setting Forth Its Findings and Authorizing the Destruction of Files from the Code Compliance Department that Have Been Digitally Imaged (Files Dated 2007). Rec: Waive further reading and adopt. F. REQUEST FOR DECLARATION of Surplus Property and Authorization for Disposal — Miscellaneous Computer and Electronic Equipment. Rec: By Minute Motion, declare items listed on the accompanying staff report's Exhibit"A" as sur�lus and authorize disposal as appropriate. G. REQUEST FOR APPROVAL of Vendors for Equipment and Rental Services for the Public Works Department— Fiscal Year 2010-2011. Rec: By Minute Motion, approve the use of Elms Equipment Rental, Inc., Indio, California; Clairemont Equipment, Indio, California; United Rentals, Cathedral City, California; and Johnson Rental Services, Indio, California, to provide equipment rental services to the City for FY 2010-2011 — funds are budgeted in General Fund Account No. 110-4331-413-3430. 6 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 10, 2010 H. REQUEST FOR WAIVER of Business License Requirement for Community Gardens, Youth Committee, and Citizens On Patrol Lecturers. Rec: By Minute Motion, waive the City Business License Requirement for speakers that provide presentations to the Community Gardens Group, Youth Committee, and Citizens On Patrol. Mayor Pro Tem Ferguson stated he would be abstaining on Item A. Upon motion by Ferguson, second by Spiegel, and 5-0 vote of the City Council,with Ferguson ABSTAINING on Item A, the remainder of the Consent Calendar was approved as presented. XI. CONSENT ITEMS HELD OVER None XII. RESOLUTIONS None XIII. ORDINANCES For Introduction: A. ORDINANCE NO. 1214 - AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, AMENDING CHAPTER 11.01 OF THE PALM DESERT MUNICIPAL CODE - GENERAL PROVISIONS RELATING TO PARKS/TRAILS MANAGEMENT. Senior Management Analyst Ryan Stendell noted the staff report and offered to answer any questions on specific recommended changes. Councilman Spiegel stated this was something the Park and Recreation Commission approved, because it was necessary to make the City Ordinance reflect the Bureau of Land Management (BLM) laws for the Bighorn sheep. Councilman Spiegel moved to waive further reading and pass Ordinance No. 1214 to second reading. Motion was seconded by Benson. Mayor Pro Tem Ferguson asked Mayor Finerty if this was something the Coachella Valley Conservation Committee (CVCC) had reviewed or advocated, and he was asking the Mayor since she was the City's representative on the CVCC. 7 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 10, 2010 Mayor Finerty responded the CVCC had not reviewed it. Mayor Pro Tem Ferguson asked if she was urging the cities to conform its role to those of the Multiple Species Habitat Conservation Plan(MSHCP)on trails. Mayor Finerty answered yes, stating she believed this Ordinance would accomplish the goal. Mayor Finerty called for the vote, and the motion carried by a 5-0 vote. For Adoption: None XIV. NEW BUSINESS A. REQUEST FOR APPROVAL OF FUNDS FOR ANNUAL COMPUTER SOFTWARE MAINTENANCE WITH SUNGARD PUBLIC SECTOR IN THE AMOUNT OF $57,493.13. Information Systems Manager Clayton Von Helf noted the staff report and offered to answer any questions. Councilman Spiegel stated if the City went out to bid, it would be more expensive because everything may need to be reconfigured. Mr. Von Helf agreed. Councilman Spiegel moved to, by Minute Motion, approve payment to Sungard Public Sector in the amount of$57,493.13 to provide computer software maintenance to the Cityforone year—funds are available in Account No. 110-4190-415-3360. Motion was seconded by Benson and carried by a 5-0 vote. B. REQUEST FOR APPROVAL OF CONTRACT FOR TIME WARNER INTERNET CONNECTION UPGRADE FROM BUSINESS CLASS CABLE TO FIBER OPTIC CONNECTION IN THE AMOUNT OF $10,740 (CONTRACT NO. C29840). Councilman Spiegel stated this item was not just for$10,000, because in the end it will cost almost $80,000. Information Systems Manager Clayton Von Helf responded the amount being approved this evening was only for the $10,740 per year contract. The overall project for the Wi-Fi on EI Paseo will be closer to $80,000. He will be 8 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 10, 2010 returning to the Council with an actionable item for purchase of equipment in July. Councilman Spiegel asked if this was necessary. Mr. Von Helf stated a lot of cities were doing similar Wi-Fi hot spots in congregated outdoor areas, parks, and civic center buildings. Further responding, he said Starbucks and other stores provided Wi-Fi for their customers. Mayor Finerty stated she believed the funds were set aside. Mr. Von Helf concurred, stating the funds were set aside for next year's budget. Mayor Pro Tem Ferguson stated when one plugged into the network it will say"Welcome to Palm Desert," not Starbucks or Westfied, etc., providing a broader range and scope where one could plug in anywhere down the commercial corridor. He said it will be a great marketing tool for the City. Mr. Von Helf agreed, stating this would also lay the foundation if the City wanted to expand in the future. Mayor Pro Tem Ferguson moved to, by Minute Motion, approve the subject contract with Time Warner for Internet service in the amount of $10,740 per year — funds are available in the FY 2010-2011 Budget in Account No. 110-4190-415-3650. Councilmember Benson stated that Phase III indicated more access points would be added to expand the Wi-Fi zone along EI Paseo to run from Highway 74 to Portola Avenue. She asked if the Council will be able to see where the equipment will be placed, because she didn't want it to be obnoxious looking. Mr. Von Helf responded the access points would be hidden, stating they were small antennas that will be sticking over the facade of the building and painted to match the color of the building. He said the antennas will be almost invisible. Further responding, he said Phase II will cover The Gardens I and II from San Pablo toward Highway 74, which will include the Daily Grill. Phase III will include San Pablo, the opposite way toward Portola Avenue. However, the Council would only be taking action on the internet upgrade for City Hall this evening, which was Phase I. At a later time, he will returnto Council for a request to purchase equipment that will broadcast the signal down San Pablo to EI Paseo. Councilman Kelly asked what it will cost the City. 9 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 10, 2010 Mr. Von Helf responded this evening's request was only for the internet upgrade in the amount of$10,740 per year, but the approximate cost for all three phases was approximately $80,000. He said the end cost depended on the size of the area the Council wanted to cover or how dense that coverage should be. Mayor Finerty said the staff report indicated that a business class cable (Roadrunner) internet connection was currently being used at City Hall at a cost of$5,500 per year. So in essence, the City was upgrading the system for an extra $5,000. Mr. Von Helf answered yes. Councilman Kelly asked if approval this evening was an indication that the rest of the phases would be approved. Mr. Von Helf answered no. Councilmember Benson seconded the motion and it carried on a 4-1 vote, with Spiegel voting NO. C. REQUEST FOR EXTENSION OF PROFESSIONAL SERVICE CONTRACTS FOR BUILDING AND SAFETY PLAN REVIEW SERVICES—FISCAL YEAR 2010-2011. Councilman Spiegel asked if these contracts were needed when there was a lack of construction. Mr. Grance responded services were used primarily when dealing with complex projects for structural review only. The balance of the plan reviews were done in-house. Councilmember Benson stated all three vendors were located outside the area and questioned if there was anyone in Palm Desert that could provide this service. Mr. Grance stated when the City went out for Request for Proposal(RFP)for this current contract, it was broadcast throughout southern California. Mayor Finerty noted the staff report indicated there were 727 plan reviews with only eleven projects being sent to a consultant at a cost of$23,000, so the $30,000 was just the cap. Mr. Grance agreed, stating the funds would only be used on a needed basis. 10 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 10, 2010 Councilman Spiegel moved to, by Minute Motion, extend the following Professional Service Agreements for Building Plan Review Services FY 2010-2011: 1) Scott Fazekas & Associates, Irvine, California (Contract No. C29041A); 2) Interwest Consulting Group, Long Beach, California (Contract No. C29041 B); 3)Willdan Engineering, San Bernardino, California (Contract No. C29041 C)— in a total amount not to exceed $30,000 —funds will be available in Account No. 110-4420-422-3010. Motion was seconded by Kelly and carried by a 5-0 vote. NOTE: THE FOLLOWING ITEMS WERE LISTED ON AN AGENDA ADDENDUM POSTED 72 HOURS PRIOR TO THE MEETING. D. CONSIDERATION OF LEASE WITH PALM SPRINGS ART MUSEUM AT ENTRADA DEL PASEO (CONTRACT NO. C29860). Following is a verbatim transcript of the discussion and action taken for New Business Item D. � CF Cindy Finerty, Mayor JF Jim Ferguson, Mayor Pro Tem DJE David J. Erwin, City Attorney GLM Grace L. Mendoza, Deputy City Clerk JM Justin McCarthy, Acting City Manager RAS Robert A. Spiegel, Councilman JMB Jean M. Benson, Councilmember DS Deborah Schwartz, Public Arts Coordinator HM Harold Mayerman, Chairman of the Palm Springs Art Museum RSK Richard S. Kelly, Councilman JH Jim Houston, Palm Springs ----------------------------------------------------------------------------- CF Okay next item is New Business, consideration of lease with Palm Springs Art Museum at Entrada Del Paseo, Contract Number C29860. JF Can I have a staff report? DJE This is the Ordinance that...as originated in the Planning Commission...Mayor and Members of the Council... CF No, I think were...New Business Item D of the Addendum. Isn't that where we go? GLM Yes. 11 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 10, 2010 CF And continuing on to New Business correct? GLM Correct. JF Yes. CF Which is consideration of lease with Palm Springs Art Museum. JM I'll speak to that issue. Basically staff has been negotiating a lease agreement for the Visitor Center with the Palm Springs Art Museum. They've expressed an interest in occupying that premise and bringing art displays, classes, and other types of art services to that location. We've basically come pretty close to negotiating a draft lease...we would kind of like to see if the Council would be admenable to author—authorizing us to proceed to negotiate that, subject to the City Attorney and the City Manager's review and ultimate execution,or if the City Council would like us to prepare a full document and bring it back for their consideration. RAS W hen this was discussed in Closed Session,there were like three things, I think that we were concerned about. JM Yes sir. RAS One was a minimum of three years I believe. JM Yes sir. RAS Two was that the Museum out here be open six days a week, but always opened on Saturday or Sunday, unless it was a holiday. And three, that the sculpture display not include EI Paseo. Is that correct? JM I think the...l believe the EI Paseo might not been part of it. The...though there was a concern that the...the City's art commission and City Council review art that is displayed in the public domain like Eric, Eric Johnson Gardens, things of that nature. CF Would it make sense to have a representative from the Art Museum on AIPP. JM That would be a policy decision and...l could see no objection to it. I can't really speak to it, and we have, I think Deborah is moving forward here. CF Okay. JMB We already have... JM You have some commentary on that. 12 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 10, 2010 CF Okay well we... DS I did. Katherine Hough is one of the curators at the Museum and has been on the Commission for years, and as far as I know will continue to be. CF Continue to be, okay great. Thank you. JM We also have a number of representatives of the Museum in attendance. CF Okay. RAS Would any of them want to address the concerns that we have? HM Mayor, Councilmembers... CF Please state your name and address for the record. HM Harold Mayerman, I am the Chairman of the Art Museum. CF Okay. What days of the week typically do you operate? HM We operate everyday except Mondays during the summer. RSK Pull the mic up there. HM We operate everyday of the week except Mondays during the summer. CF Monday's the day off? HM Yes. CF Okay. RAS So you'll be opening, open on Saturday and Sunday out here? HM Yes. Big days. RSK Well, can I ask a question? CF Sure. RSK I noticed in the summary there, there was...no commitment how long that you might...commit to when you move in, and do you have a problem with committing to...a three-year stay and some kind of guarantee that we'd be sure that when you moved in, you'll be there at least three years? 13 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING , JUNE 10, 2010 HM I think it all depends to the achievement of our financial plans for the, for the facility here. I think if we felt that we had the proper financing in place, which is, would be a condition of the lease that we would—are discussing about, and clearly we would not have a problem with that. RSK You have a problem with that? HM We would not have a problem. RSK Oh, you would not have a problem with the three years? HM As long as we have the financing in place to achieve that, to do... RSK How do we assure that before we make the agreement? HM Before we can really raise financing and funding for the facility, we need to be sure that we have a transaction here with the City. After we have that, then I think we can go out and try to raise funding for this facility. And, and there is a matter—some urgency here, because for the exhibition that we would envisioned to be here, we invariably need to negotiate and plan and prepay for that (unclear) two years in advance. So... RSK It's kind, it's kind of a catch 22 I guess, because we love you, and you have a gorgeous beautiful museum there, and we would love to have you here, but at the same time we have to put our business hat on, and we've gotten in a lot of trouble over the years. I've been here to help get into trouble, and so one thing we've found, it's, iYs nice to have some kind of commitment guarantee...that you're gonna' have at least a certain length of time. If you are here three years and you know...you just decide to move, will at least ,we would have had some benefit from all the things we've gone through. So, it seems three years wouldn't be that much to ask for some kind of commitment. HM What we—we are Councilman Kelly, first of all thank you for your kind comments. I hope that everyone heard those and you're welcome to come to the Museum. (Laughter) We would not enter into an arrangement such as this, which would require an awful lot of investment in terms of resources on our part, unless we felt that we were at least committed to, at least committed to three years if not more. Is that... RSK Well no, you're not saying, you're not saying, okay we'll commit to three years? HM Well because we need to have our financing in place. JMB Well they won't move in until they have the financing in place and the tenant improvements anyway. 14 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 10, 2010 HM That's exactly, yes. That's correct. JF Well at least in the draft lease that I got in my packet, you're committing to five years not three years, and you're getting five, five-year options for a total of a thirty-year lease. So it doesn't seem to me that you're, you're at all waffling. And....l just want to make sure that, that you're commitment is, is long term. I mean we're not talking about three years, we're talking about thirty years if things go the way you want them to go. HM Absolutely. I, I just don't believe that we would...even consider this if we thought it would be a three-year commitment. We are looking at five years plus five years extension. RSK Why is that, why is that line in there that, that either... RAS They can opt out... RSK that you can pull out the first year? RAS after the first—during the first year. HM Bob this is, this would be the year before we would open. In other words, we would not open until we have financing in place. RSK But once you're in place, that doesn't include that? JF Right. RAS Once you're in place... RSK What we have here is a line item that says you have the right to pull out within one year. HM Only that first year, only that first year. RSK First year before your move in? HM No, no, we would envisioned that we woutd make use of the facility, starting I believe, we talked about August 1 St. We would have a chance to show our donors and we would be able to look at the facility and look at the exhibitions that would fit. We would do all sorts of things to make sure that we would get the funding in place, and once when that was in place, we will be ready to go. So that one year does—basically drops away, but we would feel we need a year to get it done. 15 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 10, 2010 JH Can I help? HM Of course, what can I say. (Laughter) CF We would be honored. JH Keep your hand around my shoulder HM Okay. JH I'm Jim Houston from Palm Springs. RSK Make sure you talk into the microphone. I got both hearing aids in so I did my part, now you have to do yours. (Laughter) JH Okay. A couple of issues, the idea of the year was that we got to get our ducks in a row, and we have a year to do it, but we're not gonna' spend—we're not gonna' spend any money, in terms of start working on the building or anything like that until we're sure we have those ducks in a row. And I think, from our standpoint, we would be prepared to say, once we're ready to start, if it's six months, nine months, three weeks, whatever, then that means we're committed. Once we're committed, the idea of being committed for three years is not gonna' be a big deal. We'll commit for three years because we expect to be there for five, five, five, and that's the way we're gonna' go, but....what he's talking about we have to put all these ducks in a row. Once we say we're gonna' go, we're gonna' go, but we won't touch the building or do anything to it until we're ready to do that, and the way it was proposed was that we had up to a year to put all that stuff together. But once we start, then we can, I think we can say that closure time in order to do the work, start the lease, and make a commitment for three years... RSK Well that comes out a lot better than the line item we had... JH Well I understand that, but I'm trying to clarify the situation. RSK Well you did, I'm just telling you—you did. JH Okay, and, and, I somehow feel I just stuck my foot in, in terms of almost guaranteeing.... (Laughter) (Unclear) RAS Let me ask you...let me ask you a question. Is what Mr. Houston is saying, that once we go into that building, and we start making it into a museum, then three years is not, not a problem? 16 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 10, 2010 JH Not a problem. RAS But if we don't go into the building, than you can opt out? JH Right. RAS That's fine. JH Yes. RSK That sounds a lot better. JH That's, that's the intent. RSK Alright. JM Can I get a clarification please? JH Yes. JM I just wanna' make sure that—you did, did you want to at least occupy the building like on a month to month basis in anticipation of your permanent lease? JF Wait a minute, let me... JM I just want to kind of understand. JF Let me clarify your clarification. JM Thank you. JF Because my, my understanding is you execute this lease you got, you're signing up for a five-year term unless you opt out in the first year? JH Correct. JF And you've agreed not to make any changes to the building until you got sufficient financing. JH Exactly. JF Presumably you'll notify, and we can put in the lease that you'll notify the City in writing, "we're ready to commence making changes to the building, and we're ready to move forward." In the meantime, you have full occupancy of the building and the garden, you will hold fund raisers there, you will show donors what your plans are, your blue prints, what your hopes are, what you envision, the sculpture garden and 17 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 10, 2010 the different types of things, and you'll actually use the facility to help raise the very money you need to do the tenant improvements to the facility to get to the point where you can give us written notice that you're gonna'start making improvements? HM I couldn't have said it any better. JF And, and if the economy goes into the toilet or something happens even worse, and you're physically incapable of doing that a year from now, you have the right of not over extending your mother ship, as you put it, in Palm Springs. And you can say, sorry Palm Desert we simply can't do it financially, just within that first year. HM That's exactly right, exactly right. JF Okay. RAS Okay. CF Excellent. Any other questions? RSK I think I'm satisfied with my concerns. JF Okay. CF Okay. Then.. JF And...let's see...and we are just talking about the sculptures in the Eric Johnson Gardens. I think there was a typo in our staff report that said something about the EI Paseo sculptures, and that's not... HM No, it's just in the immediate approximate area. JF Okay. RAS I'll move approval. JF I'll second. CF Please vote. GLM For clarification, what is the motion, `cause the motion, the motion... JF The motion is to, if you,the motion maker doesn't mind me restating it, is contained in, is to authorize the City Manager and the City Attorney to execute, finalize and execute the lease according to the term sheet that was given to us in Closed Session with the following modifications: Number 7, that they be open at least on Saturday and Sunday. 18 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 10, 2010 RAS Unless it's a holiday. JF Unless it's a holiday. JF That....number 8 be retained, but explained that it is for the purpose of fund raising and that they will give written notice to the City when they are ready to commence tenant improvements, and that upon notice to the City of tenant improvements, that their lease will vest and they will be bound by its terms, at least for the first five-year term. RAS Three years. RSK We said five. JF It's a five-year term. RAS It's a five-year term, but we said that they couldn't get out... RSK Well we got five. JF Yeah that's right, we got five. That they will have a representative on Art in Public Places, even thought we have one, which should be made clear. And that...it's already in the lease, but we'll make clear that any changes to the Eric Johnson Gardens will require City Council approval and that includes pad locations and any alterations. Is that okay? GLM Yes. JF Okay. CF Okay so we have a motion and second. GLM And I have you as abstaining at the moment Mr. Ferguson. JF No, I hit the... GLM Motion carried by unanimous vote. CF Excellent. JF Thank you. CF Welcome. Thank you very much, and we're very pleased to have you as part of our City. 19 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 10, 2010 JF We are glad to have you in our City. CF Thank you for taking the time to come today, we really appreciate that. For purposes of clarification the motion is: Councilman Spiegel moved to, by Minute Motion, authorize the City Manager and City Attorney to finalize and execute a lease agreement between the City of Palm Desert and Palm Springs Art Museum for the building at Entrada Del Paseo, Palm Desert, according to the lease terms presented in Closed Session with the following modifications: A) Lease Term No. 7 - Days of operation will be six days a week and opened Saturdays and Sundays except on holidays; B) Lease Term No. 8 - The Palm Springs Art Museum will have full occupancy of the building and garden for the purpose of conducting fund raisers with the option to opt out within one year on the condition they provide written notice to the City regarding commencement of tenant improvements, and upon notice of same, the lease will vest and be bound by its terms for the first five years; C) Lease Term No. 9 - Sculpture Displays - Any changes to the Eric Johnson Gardens will require City Council approval, which will include pad locations and alterations; D) Lease Term No.10 - The Art in Public Places Commission will include a representative from the Palm Springs Art Museum. Motion was seconded by Ferguson and carried by a 5-0 vote. E. CONSIDERATION OF A PRIVATE IMPROVEMENT AGREEMENT BETWEEN THE CITY OF PALM DESERT AND GID MONTEREY, LLC, TO ASSURE COMPLETION OF CERTAIN PRIVATE IMPROVEMENTS ATTHE RESIDENTIAL DEVELOPMENT KNOWN AS MONTEREY RIDGE (CONTRACT NO. C29870). Mayor Pro Tem Ferguson stated he would need a staff report on this item, because he didn't read it. Ms. Aylaian stated the development that was known as Falling Waters when it bankrupt several years ago was subsequently acquired by a new firm who was working to complete the units and the project amenities. They are almost complete with the number of buildings, but haven't actually received Certificate of Occupancy on any of them. They have a number of buyers for the units who are trying to take advantage of the Federal Tax Incentives if they close their sale/escrow by June 30. This agreement would allow them to obtain the Certificate of Occupancy, while putting money into a separate account that would ensure completion of the amenities, clubhouse, landscape, and screening walls; work is required to be completed by September 30. Responding to question, she said if the work is not completed by the deadline date, the money that is in escrow would be adequate for the City to either complete the work or have the homeowners' association or other organization complete it. Further responding, she said there was no financial impact to the City. 20 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 10, 2010 Councilman Spiegel moved to, by Minute Motion, approve the subject Agreement substantially as to form and authorize the Mayor to execute same on behalf of the City, subject to technical revisions as may be deemed appropriate by the City Manager. Motion was seconded by Benson and carried by a 5-0 vote. XV. CONTINUED BUSINESS A. REQUEST FOR APPROVAL OF A ZONING ORDINANCE AMENDMENT, ADDING CHAPTER 25.130-LOCATION OF MISCELLANEOUS USES-TO THE PALM DESERT MUNICIPAL CODE Case No. ZOA 10-69 (City of Palm Desert, Applicant) (Continued from the meeting of May 27, 2010). Councilman Spiegel stated he must abstain on this item and left the Council Chamber. Councilmember Benson asked if this item needed to be continued to June 24, 2010. Principal Planner Tony Bagato stated the City Manager directed staff to continue the item in anticipation of a similar vote from the last time when it had one Councilmember absent, but with a full Council this evening,the item can be voted on today or continued to June 24. Mayor Finerty stated if Councilman Spiegel was abstaining, but the rest of the Council was present, it might as well address it. Mayor Pro Tem Ferguson requested an executive summary of the staff report, because he wasn't present at the last meeting. Mr. Bagato stated staff incorporated the changes from the April 22 meeting to accommodate existing businesses and allow them to relocate and expand along Highway 111 and EI Paseo as directed by the Council. Mayor Finerty explained the concern was raised under public testimony in that landlords who decided to increase the rent would force existing businesses out of that location, which was a concern to Councilmember Benson. Council directed staff to address the concern and they did. If the rent is raised, existing businesses had the ability to move elsewhere in a similar location. Mayor Pro Tem Ferguson asked what would happen if they sold their business. Councilmember Benson responded the Ordinance only applied to new businesses coming in. 21 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 10, 2010 Mayor Pro Tem Ferguson asked staff how this conformed with the City's Lawful Non-Conforming Use Ordinance. Mr. Bagato responded it would be a separate matter, because Non-Conforming Use did not allow for relocation or expansion. This was its own kind of separate provision if it was the same owner, and it couldn't be sold or transferred as part of new ownership. Mayor Pro Tem Ferguson asked how many tattoo parlors where in the subject area. Mr. Bagato answered five on Highway 111. Further responding, he said there were originally eight massage establishments, but since the Council had revoked a few of those Conditional Use Permits, it left only five or six. He said there were three smoke shops on the list affected, with no other uses affected. Mayor Pro Tem Ferguson asked what businesses did staff consider smoke shops besides Palm Desert Tobacco. Mr. Bagato responded The Smoke Shop on Highway 111, which was east of San Pablo on the north side of Highway 111 in a multi-tenant building on the first floor. The other one was in the Von's Shopping Center. Mayor Pro Tem Ferguson stated the City wasn't proposing to ban any of the subject Miscellaneous Uses. Mr. Bagato agreed, stating they would be allowed elsewhere throughout the City with a separation distance requirement from a similar use. Mayor Pro Tem Ferguson asked when referring to EI Paseo, was that EI Paseo Highway 111 to Highway 111. Mr. Bagato responded it was a 300-feet buffer away from each, but basically it was Highway111 and EI Paseo, in between there. Mayor Pro Tem Ferguson asked if Highway 111 meant city limit to city limit. Mr. Bagato answered yes. Councilmember Benson moved to waive further reading and pass Ordinance No. 1213A to second reading, approving a Zoning Ordinance Amendment to add Chapter 25.130 - Location of Miscellaneous Uses - to the Palm Desert Municipal Code. Motion was seconded by Ferguson and received NO ACTION on a 2-2 vote, with Benson and Finerty voting AYE, Ferguson and Kelly voting NAY, and Spiegel ABSENT. 22 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 10, 2010 XVI. OLD BUSINESS None XVII. PUBLIC HEARINGS None XVIIi. REPORTS AND REMARKS A. CITY MANAGER None B. CITY ATTORNEY None C. CITY CLERK 1. Reminder of City Council Study Session Regarding Council Chamber and Administrative Conference Room Equipment Upgrades — Thursday, June 24, 2010, 2:00 p.m. in the Administrative Conference Room. Ms. Mendoza called City Councilmembers' attention to the reminder for the upcoming Study Session. Councilmembers so noted the date. D. PUBLIC SAFETY o Fire Department None . o Police Department None 23 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 10, 2010 E. MAYOR AND MEMBERS OF THE CITY COUNCIL o City Council Requests for Action: None o City Council Consideration of Travel Requests and Reports: None o City Council Committee Reports: None o City Council Comments: 1. High School Scholarships-Councilman Kelly noted the high schools presented their scholarships last week, and Councilmember Benson and Councilman Spiegel both had scholarships given out as well. The Rotary who helped raise those funds gave away approximately $20,000 (twenty scholarships). He said City Manager John Wohlmuth's daughter received six scholarships, which was more than anyone else. One of the scholarships was for Outstanding Student and another for Outstanding Athlete. What she accomplished this year by winning the CIF Championship four years in a row for her freshman, sophomore, junior, and senior years was phenomenal, which was unheard of to him. He said Elle Wohlmuth really shined. Something all can be proud of that one of Palm Desert's family received all those scholarships. Mayor Finerty stated she looked forward to shaking her hand this evening, as she would be attending the graduation. 2. Civic Center Concert - Councilman Kelly stated the concert last week was good and well attended. 3. Art in Public Places-Exhibition Reception-Councilman Kelly stated the reception Monday night was well attended. He noted Councilmember Benson was also present. 24 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 10, 2010 4. Coachella Valley Association of Governments (CVAG� - Councilman Kelly stated the CVAG Transportation meeting didn't go as well, and he didn't get the outcome he hoped for, but he wasn't giving up yet. Mayor Finerty stated the Council appreciated the passion in which he represented the City. 5. Palm Desert Baseball Team - Councilman Spiegel stated the team accomplished something that hadn't been done before, and the City Council will be honoring them at the next City Council Meeting. Councilman Kelly noted the City had two CIF Championships to recognize and needed to be figured out how to do that. XIX. ADJOURNMENT With City Council concurrence, Mayor Finerty adjourned the meeting at 4:47 p.m. CINDY FINERTY, MAYOR ATTEST: GRACE L. MENDOZA, DEPUTY CITY CLERK CITY OF PALM DESERT, CALIFORNIA 25