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PRELIMINARY MINUTES
REGULAR PALM DESERT CITY COUNCIL MEETING
THURSDAY, AUGUST 26, 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.
il. ROLL CALL
Present:
Councilmember Jean M. Benson
Mayor Pro Tem Jim Ferguson
Councilman Robert A. Spiegel
Mayor Cindy Finerty
Also Present:
Justin McCarthy, Acting City Manager/RDA Executive Director
David J. Erwin, City Attarney
Stephen Y. Aryan, Assistant to the City Manager
Rachelle D. Klassen, City Clerk
Russell Grance, Director of Building & Safety
Lauri Aylaian, Director of Community Development
Janet M. Moore, Director of Housing
Mark Greenwood, Director of Public Works
Frankie Riddle, Director of Special Programs
J. Luis Espinoza, Assistant Finance Director
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
IV. ADJOURN TO CLOSED SESSION
Reauest for Closed Session:
Conference with Real Property Negotiator pursuant to Government Code
Section 54956.8:
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1) Property: APN 622-020-089
Negotiating Parties:
Agency: John M. Wohimuth/Justin McCarthy/City of Palm Desert/
Paim Desert Redevelopment Agency
Property Owner: DesertArc
Under Negotiation: x Price x Terms of Payment
2) Property: Lease Property- 73-470 EI Paseo, Suite No. 14, Palm Desert
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
3) Property: Lease Property - Parkview Professional Office Complex
73710 Fred Waring Drive, Suite No. 222, Palm Desert
Negotiating Parties:
Agency: John M. Wohlmuth/Paul S. Gibson/City of Palm Desert
Property Owner: City of Palm Desert
Other Parties: Riverside County Economic Development Agency
Under Negotiation: x Price x Terms of Payment
4) Property: APN 640-020-003
Negotiating Parties:
Agency: John M. Wohlmuth/Lauri Aylaian/City of Palm Desert
Property Owner: Mitchell Family Real Estate Ltd. Pt. Two
Broker: NAI Capital
Under Negotiation: x Price x Terms of Payment
5) Property: APNs 694-170-014, 694-170-023
Negotiating Parties:
Agency: John M. Wohlmuth/Lauri Aylaian/City of Palm Desert
Property Owner: Neal Brandom/Emerald Brook LLC
Under Negotiation: x Price x Terms of Payment
Conference with �egal 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
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Mr. Erwin asked the City Council's consideration of adding the following matter to
the agenda for Closed Session discussion:
Conference with Legal Counsel regarding potential to initiate litigation pursuant
to Government Code Section 54956.9(c):
Number of potential cases: 1
Upon a motion by Ferguson, second by Benson, and 4-0 vote of the City Council,
the aforementioned potential litigation was added to the agenda.
On a motion by Ferguson, second by Benson, and 4-0 vote of the City Council,
Mayor Finerty adjourned the meeting to Closed Session at 3:01 p.m. She reconvened the
meeting at 4:02 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 - Councilman Robert A. Spiegel
VII. INVOCATION - City Public Works Inspector Ed Gallardo
Mr. Gallardo called for a moment of silence in memory of Councilman Richard S.
Kelly, who passed away on Friday, August 20, 2010.
VIII. ORAL COMMUNICATIONS - B
MRS. MARY HELEN KELLY, Burroweed Lane, Palm Desert, addressed the City
Council, City staff, and citizens to sincerely thank them all for the outpouring of love
and support that she'd received from everyone. She said it was truly heartwarming,
and she so appreciated it. She also wanted to make sure everyone knew they were
invited to the services that have been announced and looked forward to seeing
them all there.
IX. AWARDS, PRESENTATIONS, AND APPOINTMENTS
None
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X. CONSENT CALENDAR
A. MINUTES of the Regular City Council Meeting of August 12, 2010, and the
Adjourned Regular Joint Meeting of the City Council and Redevelopment
Agency of July 27, 2010.
Rec: Approve as presented.
B. CLAIMS AND DEMANDS AGAINST THE CITY TREASURY - Warrant
Nos. 17, 18, 21, 24, 25, 28, 31, 32, 33, 37, 41, and 45.
Rec: Approve as presented.
C. APPLICATION FOR ALCOHOLIC BEVERAGE LICENSE by The Best of
Palm Desert LLC, 37-029 Cook Street, Suite No. 101, Palm Desert.
Rec: Receive and file.
D. APPLICATION FOR ALCOHOLIC BEVERAGE LICENSE by Charlie's
California Fresh, 75-130 Saint Charles Place, Palm Desert.
Rec: Receive and file.
E. APPLICATION FOR ALCOHOLIC BEVERAGE LICENSE by Cucina Pasta,
73-540 Highway 111, Suite No. 4, Palm Desert.
Rec: Receive and file.
F. APPLICATION FOR ALCOHOLIC BEVERAGE LICENSE by Woodhaven
Country Club, 41-555 Woodhaven Drive East, Palm Desert.
Rec: Receive and file.
G. CITY COMMITTEE AND COMMISSION MEETING MINUTES.
1. Landscape Beautification Committee Meeting of May 19, 2010.
2. Library Promotion Committee Meeting of April 28, 2010.
3. Parks & Recreation Commission Meeting of June 1, 2010.
Rec: Receive and file.
H. LETTER OF RESIGNATION from Terry Schukart — Parks & Recreation
Commission.
Rec: Receive with very sincere regret.
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I. REQUEST FOR APPROVAL of a Two-year Property Management
Agreement with Mason & Mason Inc. for Management Services at the
Henderson Community Building (Contract No. C30130).
Rec: By Minute Motion, approve the subject two-year contract with
Mason &Mason Inc., Montrose, California,for Property Management
Services at the Henderson Community Building in the amount of
$750Jmonth ($9,000 annually) — funds are available in Account
No. 510-4195-495-3090.
J. REQUEST FORAPPROVAL of the Addition of DesertArc as a Subcontractor
to Vintage Associates, Inc., for Landscape Maintenance Area No. 16
(Contract No. C29540, Project No. 916-10).
Rec: By Minute Motion, add DesertArc, Palm Desert, California, as a
subcontractorto VintageAssociates, Inc., Bermuda Dunes,California,
for the subject contract - Landscape Maintenance Area No. 16 —
contract amount will not change.
K. REQUEST FOR AUTHORIZATION to Release Maintenance Security for
Conditional Use Permit (CUP) No. 04-13 - Sacred Heart Church
(Orr Builders, Applicant).
Rec: By Minute Motion, authorize City Clerk to release the Maintenance
Security for CUP No. 04-13 - Sacred Heart Church.
L. REQUEST FOR AUTHORIZATION to Release Security for Tract
No. 28818-5 - Marriott Shadow Ridge (Marriott Vacation Club, Applicant).
Rec: By Minute Motion, authorize City Clerk to release security for Tract
No. 28818-5 - Marriott Shadow Ridge.
M. CONSIDERATION of a Request for Funding to Sponsor the 2011
Virginia Waring International Piano Competition.
Removed for separate consideration under Section XI, Consent Items Held
Over. Please see that portion of the Minutes for Council discussion and
action.
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N. C(JNSIDERATION of Funding Support Request forthe September Concert
Organized by Palm Desert Sister Cities Foundation to Occur on
September 11, 2010, at Civic Center Park.
Rec: By Minute Motion, approve the donation of$2,500 to the Palm Desert
Sister Cities Foundation for support of the September Concert on
Saturday, September 11, 2010, at Civic Center Park — funds are
available in the FY 2010-2011 Budget.
Councilman Spiegel requested Item M be removed for separate action under
Section XI, Consent Items Held Over.
Upon a motion by Spiegel, second by Ferguson, and 4-0 vote of the City Council,
the remainder of the Consent Calendar was approved as presented.
XI. CONSENT ITEMS HELD OVER
M. CONSIDERATION of a Request for Funding to Sponsor the 2011
Virginia Waring International Piano Competition.
Responding to question, Marketing Manager Kristy Kneiding said that based
on the information presented to the Marketing Committee by Peggy Cravens,
the Committee recommended $25,000 in support. However, because this
item was not part of the City's budget, staffwas able to locate$10,000 in the
special events funds to support the competition, but not the full $25,000
requested.
Councilman Spiegel stated the sponsorship was$15,000 short. He said this
event was one of three major events held in the City annually; Fashion Week
on EI Paseo, Golf Cart Parade, and the Virginia Waring, but the Virginia
Waring was the only international event. He said students from all over the
world are coming and lodging in Palm Desert, and the honoree at the Black
and White Gala is Dr. Condoleeza Rice who was well known and would
attract many to the City. He went on to say advertising for the event would
include a full-page color ad in the 2011 Gala Tribute Book, logo and listing
as the International Host City on ads placed on movie screens throughout
the Valley, etc., etc., and in orderto receive the whole International Host City
package, the sponsorship should be $25,000.
Councilman Spiegel moved to, by Minute Motion, increase the sponsorship to
$25,000.
Mayor Finerty stated that as part of the Virginia Waring Competition, a gala
is scheduled and questioned in what City would that be held.
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Ms. Kneiding answered Rancho Mirage; however, because of the extreme
busy season in February for the Desert Springs Marriott, they were unabie
to accommodate the Virginia Waring event.
Mayor Finerty stated that according to the report received,the City of Rancho
Mirage gave $5,000 last year and $5,000 pending this year. She said the
Council already went through the budget process and questioned if Outside
Agency Funding was sought by the Virginia Waring organizers as
recommended to them over the last several years.
Ms. Kneiding stated she was unaware if they did nor not.
Mayor Finerty stated she would be happy to hear from Ms. Peggy Cravens
if she was in attendance.
Councilman Spiegel stated the reason the gala was being held in Rancho
Mirage was because the facilities at the Marriott were unavailable, which is
the only place in Palm Desert that could accommodate the event.
Councilmember Benson asked if this item was considered through the
Outside Agency Funding, because the Virginia Waring organizers were
certainly aware of that process.
Ms. Riddle stated Outside Agency Funding was handled by the Finance
Department, but she could respond to questions related to Community
Development Block Grants.
Councilmember Benson stated she wanted to know if the Virginia Waring
went through the Outside Agency application process in January.
Ms. Riddle stated she didn't recall them being part of the selection.
Mayor Finerty stated she didn't recall either, and she sat on the committee.
She asked if the Finance Department had anything to add.
Assistant Finance Director Jose Luis Espinoza stated he would get an
answer for the Council.
MS. PEGGY CRAVENS thanked the Council for allowing her the opportunity
to speak and introduced First Vice President Dr. Gerald Benston, and
Executive Director Ann Grier. She thanked the Council for all of its support
over the years and proud of the fact that the competition was now
internationally recognized all over the world, and as such, the advertising
always recognized the City of Palm Desert as the International Host City,
thereby, giving the City an enormous international exposure. She said
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greater exposure would be reached, because their honoree this year was
Dr. Condoleezza Rice.
MR. GERALD BENSTON extended his condolences for the loss of
Councilman Richard Kelly, who was not only a great Councilman, but a
significant member of this community. He knew him personally, stating he
was truly a great guy. He said an article in the local newspaper reported on
how funding had been significantly cut in the Palm Springs Unified School
District regarding music teaching and the number of teachers being allowed
to teach in the oncoming semesters. He said one of the things the Virginia
Waring International Piano Competition did was expend a lot of energy on
their outreach programs, which reached all of the elementary schools in the
Coachella Valley. He said the event brought a significant level of
representation in terms of their international nature in this competition to
Palm Desert. He said in the perFect world they would find a sponsor, which
would enable them to establish an endowment, and their visit here this
evening would be unnecessary; therefore, he asked the Council to consider
their request for a $25,000 sponsorship and promised more in return.
MS. CRAVENS stated just as the Palm Springs area was considered an
international destination point for many years, now more often people are
becoming aware of the importance of Palm Desert. She knew the
international exposure being provided by virtue of the competition was very
important to the City, and obviously the City's Marketing Committee felt the
same. She said the Valley had international film festivals, tennis and golf
tournaments, so there was no reason not to have an international piano
competition in Palm Desert, but also the whole Coachella Valley, because
it was a great expansion of culture.
Mayor Pro Tem Ferguson seconded the motion for the purposes of discussion.
Mayor Finerty stated she would reiterate her comments from several years
prior, which is that the City had a limited funds, and the process needed to
be followed whether it was through block grants or outside agency funding.
She said the Virginia Waring Competition organizers were advised to please
seek out and submit an application forthe Outside Agency Funding Program,
and this year they did not do so. Other agencies who are just as worthwhile
were also advised, and some of them did submit an application and were
awarded funds. She understood the importance of marketing the City and
respected what the Marketing Committee recommended; however, at the
Council level one had to look at the big picture and all the dollars and cents,
and the $10,000 sponsorship recommended by the Marketing Committee
were not funds that were set aside during the budget process. She agreed
Dr. Condoleezza Rice was quite a draw and suspected her coming here to
Palm Desert would benefit the hotels and restaurants. She said the City had
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been a tremendous sponsor of Virginia Waring over the years giving
$50,000 over the years. She did not believe it would be appropriate to
support sponsorship of this event, because it wouldn't be fair to all the other
organizations that followed the City's process
Councilmember Benson concurred, stating the Council has been supporters
of the event when it was originally named Joanna Hodges and then changed
to Virginia Waring, but this has been one of the toughest budget years ever,
and Council had to follow the procedures already set, including those that
had to do with Council's travel restrictions and contributions. She said the
City of Palm Desert had done more for Coachella Valley nonprofit
organizations than any other city. She agreed with the City's current budget
process, and agreed the Council had to change to adjust to what the
conditions are today. She is disturbed Virginia Waring didn't apply in
January when they should have, because they knew the process and knew
Palm Desert was on a strict budget; therefore, she couldn't support the
request.
Mayor Finerty called for the vote and it failed on a 1-3 vote, with Spiegel voting Aye,
and Benson, Ferguson, and Finerty voting NO.
Mayor Pro Tem Ferguson moved to, by Minute Motion: 1)Approve sponsorship in
the amount of $10,000 for the 2011 Virginia Waring International Piano Competition;
2) appropriate $10,000 from the Unobligated General Fund to Special Events Account
No. 110-4416-414-3062 for this purpose. Motion was seconded by Spiegel, and the
motion received NO ACTION on a 2-2 tie vote, with Ferguson and Spiegel voting AYE and
Benson and Finerty voting NO.
XII. RESOLUTIONS
A. RESOLUTION N(3. 2010 - 63 - A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF PALM DESERT, CALIFORNIA,AMENDING THE FISCAL
YEAR2009-2010 BUDGETTO PROVIDETRANSFER,APPROPRIATION,
AND ESTIMATED REVENUES OF UNOBLIGATED FUNDS FROM THE
GAS TAX, GOLF COURSE MAINTENANCE, TRAFFIC SAFETY, CAPITAL
PROJECT RESERVE, AND THE GENERAL FUND.
Assistant Finance Director Jose Luis Espinoza offered to answer any
questions.
Councilmember Benson moved to waive further reading and adopt Resolution
No. 2010-63. Motion was seconded by Ferguson and carried by a 4-0 vote.
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B. RESOLUTION NO. 2010 - 64 - A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF PALM DESERT, CALIFORNIA, AS LEGISLATIVE BODY
OF THE CITY OF PALM DESERT COMMUNITY FACILITIES DISTRICT
NO. 2005-1 (UNIVERSITY PARK), DECLARING ITS INTENTION TO
REMOVE CERTAIN DELINQUENT SPECIAL TAXES FROM THE COUNTY
TAX ROLL AND ORDERING JUDICIAL FORECLOSURE PROCEEDINGS
AGAINST CERTAIN DELINQUENT PROPERTY WITHIN THE
COMMUNITY FACILITIES DISTRICT.
Mr. Espinoza stated he and CityAttorneywere available to answerquestions
on this matter.
Mayor Pro Tem Ferguson moved to waive further reading and adopt Resolution
No. 2010-64. Motion was seconded by Benson and carried by a 4-0 vote.
C. RESOLUTION NO. 2010 - 65 - A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF PALM DESERT, CALIFORNIA, DECLARING ITS
INTENTION TOAMEND THE ENERGY INDEPENDENCE PROGRAM(EIP)
REPORT AND ADMINISTRATIVE GUIDELINES PREPARED PURSUANT
TO SECTION 5898.22 OF THE CALIFORNIA STREETS AND HIGHWAYS
CODE, AND SETTING A PUBLIC HEARING THEREON.
Mayor Pro Tem Ferguson stated that in light of information recentlyobtained,
he requested this item to be continued for further study and report on Agency
Counsel on the wisdom of making any changes to the Energy Independence
Program(EIP)pending furtherdiscussion with the Fair Housing Authority and
whether any amendments to the City's underwriting criteria would be
acceptable to them.
Mayor Pro Tem Ferguson moved to, by Minute Motion, continue this matter to a
date uncertain. Motion was seconded by Spiegel and carried by a 4-0 vote.
Later in the meeting during Section XVIII - Reports and Remarks, Item E - City
Council Requests for Action, a related action on the Energy Program was taken.
Please see that portion of the minutes for discussion and action.
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XIII. ORDINANCES
For Introduction:
A. ORDINANCE NO. 1215 - AN ORDINANCE OF THE CITY COUNCIL OF
THE CITYOF PALM DESERT, CALIFORNIA,APPROVINGAMENDMENTS
TO CHAPTER 5.87- MASSAGE ESTABLISHMENTS AND MASSAGISTS,
AND TO CHAPTER 5.90-MASSAGISTS, OF TITLE 5-BUSINESS TAXES,
LICENSES, AND REGULATIONS, OF THE PALM DESERT MUNICIPAL
CODE.
Councilman Spiegel stated he would have to abstain on this item and left the
Council Chamber.
Mayor Finerty moved to waive further reading and pass Ordinance No. 1215 to
second reading. Motion was seconded by Ferguson and carried by a 3-0 vote, with
Spiegel ABSENT.
For Adoption:
None
XIV. NEW BUSINESS
A. CONSIDERATION OF CITY PAYMENT TO THE CALIFORNIA JOINT
POWERS INSURANCE AUTHORITY (CJPIA) FOR RETROSPECTIVE
CALCULATION FOR LIABILITY PROGRAM FOR THE FISCAL YEAR
ENDING 2009-2010.
Mr. McCarthy noted there was representation in attendance to speak on this
issue if there were any questions.
Mayor Finerty stated she was pleased the cost was being reduced as well as
on the Workerman's Compensation, which she thought was good news.
Councilman Spiegel stated he assumed the cost would still have to be paid
at some point.
Mr. Espinoza answered yes, stating staff wanted to pay it early in order to
benefit from the discount.
Councilman Spiegel moved to, by Minute Motion, approve payment of$701,585 to
CJPIA and appropriate said funds from the Unobligated Liability Self Insurance Fund 575.
Motion was seconded by Benson and carried by a 4-0 vote.
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B. REQUEST FOR APPROVAL OF A TWO-YEAR EXTENSION OF THE
PROPERTY MANAGEMENTAGREEMENT WITH MASON & MASON INC.
FOR MANAGEMENT SERVICES AT THE PARKVIEW PROFESSIONAL
OFFICE COMPLEX (CONTRACT NO. C15107).
Responding to question, Mr. Espinoza confirmed there was no increase in
cost.
Councilman Spiegel moved to, by Minute Motion, approve a two-year extension of
the subject contract with Mason & Mason Inc., Montrose, California, for Property
Management Services for the Parkview Professional Office Complex — contract price of
$66,000/yearwill not change, and funds are available in Account No. 510-4195-495-3090.
Motion was seconded by Ferguson and carried by a 4-0 vote.
C. PRESENTATION BY BALLARD*KING&ASSOCIATES ON THE AQUATIC
CENTER OPERATIONS STUDY FINAL REPORT DATED JUNE 25, 2010.
Mr. McCarthy stated the consultant will provide a presentation and their
report to be accepted on a receive and file basis to help the Council with
future decisions once staff received the cost.
MR. KEN BALLARD, President of Ballard*King & Associates, provided a
review of the study conducted bythem relative to theirfindings in the Aquatic
Center Operations, which is also included in the staff report. The study
included demographic and market review, benchmark facilities, and
operational analysis. The Operational Cost Summary (Page 6), which
included the categories of personnel, commodities, contractual, and capital
indicated a total cost of$1,274,844; the Revenue Summary, which included
the fees, programs, and other related costs showed a revenue of$561,700;
the Expenditure versus the Revenue indicated a shortfall of$642,847,which
meant a 50% recovery. He said if you took expenses and revenues and put
them over a five-year projection,the gap is closed and a better cost recovery
is achieved through the first five years of operation, because you build a
market for the facility and can get about 57% recovery ratios in year five.
However, after the five years, the recovery ratio generally didn't go up,
unless there was a change in the fee structure or facility in general. In
summary, the main points were that the study showed it wouldn't be able to
obtain the 60% recovery rate the Council hoped for, but with the some cost-
saving adjustments it can be obtained. One of the adjustments can be in
staff reduction, because the current projections call for two full-time
positions, one of which was an assistant aquatic director, but if that position
can be converted to a 20-hour, part-time employee, it would be a savings of
$48,000 including the benefit portion. He said the projections presented
were based on what an outside agency would be paying for its employees,
but it was not an exact science. Another consideration was reducing the
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hours of operation, by opening an hour earlier and closing an hour earlier,
which saved about $50,000, but from an expense point of view the savings
was $100,000. On the revenue side, a way to increase it by$68,500 would
be to increase the fee structure across the board by 25%,which would place
the City at a higher margin compared to other public aquatic facilities in the
Coachella Valley. However,the proposed facility was different from anything
currently in the market. Additionally, increasing the number of rentals would
bring in more revenue as wells by $7,000. He said on Page 48 of the
Aquatic Center Operations Study,which is part of the staff report,the original
projected numbers showed a shortfall of $642,847, which would be a 50%
recovery rate, but with the recommended adjustments, the difference is
$469,347, which would be a 60% recovery ratio. He offered to answer any
questions.
Councilman Spiegel asked if the$75,000 in revenue for concession included
the sale of hamburgers and hotdogs and those types of foods.
MR. BALLARD responded part of the issue was that the menu for the
concession was not defined. The key point about the concession is that it
would not run year round, but mainly on the weekends during the shoulder
seasons of spring and fall and full-time during the summer. The only other
time you would have concessions would be during a major event or meet.
Councilman Spiegel stated City employees at City Hall and those in adjacent
buildings didn't have a place close by to get something to eat, but if the
concession was open, that would be a good place to buy lunch and generate
activity to increase the revenue numbers.
MR. BALLARD said that could be true depending upon the menu and pricing,
but most of the time concessions are set up to focus inward for the people
in the pool area itself. He said it would be difficult for people outside to gain
access without paying for the use of the facility, but it can certainly be set up
that way.
Mayor Pro Tem Ferguson stated he and Councilman Kelly sat on the
committee that designed the facility and specifically requested a window to
serve the ball parks, skate parks, the YMCA, the recreation center, and the
Sheriff Department and City employees. He said more concession sales
could probably be obtained from the outside than from the swimming area
alone, thereby revenue estimates could be revised significantly.
MR. BALLARD stated the concession would have to be set up to take on that
level of service. He found that most aquatic facilities had menus' that had
more impulse items and not necessarily full-meal service. While it has a
great appeal to people in the aquatic side, generally it wasn't very strong for
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repeated use by outside folks other than the ones that were already in the
park. However, the menu and operating agency have not been identified, so
there are a lot of things that make it tough to run the numbers up high until
the details are defined.
Mayor Pro Tem Ferguson stated the Aquatic Center was still being built and
the numbers can still be worked out. He said there was significant need for
food and beverage, and the Council did envision serving to more than just
the casual swimmer.
Councilman Spiegel stated the salary for staff seemed higher than they
needed to be.
MR. BALLARD stated the numbers were taken from the YMCA and the
Recreation District on what their current rate of pay is, and obviously the pay
isn't exactly the same for those two agencies, but the projections were based
on what they've had to pay for lifeguards and others. Again, without having
a specific operating agency in mind, a conservative approach was taken in
calculating the figures. Further responding, he said for daily admissions,
approximately 60%would be coming from the City of Palm Desert, 25%from
the primary service area, and 10% from outside the primary market.
Councilman Spiegel stated if the daily fee for those outside the service area
was raised to $5.00, it would increase revenue.
MR. BALLARD agreed, stating that was one of the recommended options
provided by them.
Councilman Spiegel stated the fee for Palm Desert residents shouldn't be
raised, but for those outside the area, it wouldn't hurt anything.
MR. BALLARD stated that could be done, but one had to be careful that it
didn't end up with a huge differential befinreen the resident and nonresident,
because one could end up being significantly over or under priced, and if the
difference is huge, it would be difficult to keep them both in the market.
Councilman Spiegel noted at the Desert Willow Golf Course residents
received a friendlier fee to play golf, so he would think a higher fee can be
set for nonresident to use the aquatic facility, since it wasn't like any other
pool nearby until one went to the water park in Palm Springs.
MR. BALLARD agreed, stating that was one of the options given to increase
revenue, which was to raise the fee structure by 25% across the board.
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Councilmember Benson asked if the consultant took into consideration that
Eisenhower Medical Center discontinued their water therapy pool for stroke
patients and other related medical problems. She said there was a huge
outcrywhen Eisenhowerdiscontinued their pool, because there was no other
facility that offered that same service.
MR. BALLARD noted the study already showed projections forthe use of the
pool for therapy by an outside agency like a hospital or health care
institution. Additionally,they considered a variety of exercise type of classes
that may not be medically based, but are programs that would cover those
areas within reason.
Mayor Finerty thanked Mr. Ballard for the presentation and noted that the
staff report indicated the City Manager recommended holding off on
implementing anything until Council had time to discuss the options of the
operator of the pool.
With City Council concurrence, the report was received and file.
D. REQUEST FOR AWARD OF CONTRACT FOR PRELIMINARY
ENGINEERING AND ENVIRONMENTAL CLEARANCE SERVICES FOR
THE MID-VALLEY BIKE PATH PROJECT TO TY LIN INTERNATIONAL IN
THE AMOUNT OF $326,245 (CONTRACT NO. C30140).
Councilman Spiegel moved to, by Minute Motion: 1)Award the subject contract for
Preliminary Engineering and Environmental Clearance Services for the Mid-Valley Bike
Path Project to TY Lin International, San Diego, California, in the amount of$326,245; 2)
authorize the Mayor to execute said contract — funds are available in Account
No. 400-4544-433-4001 - Mid-Valley Bike Path. Motion was seconded by Ferguson and
carried by a 4-0 vote.
E. REQUEST FOR AUTHORIZATION TO NEGOTIATE AND FINALIZE A
FUNDING AGREEMENT BETWEEN THE CITY OF PALM DESERT AND
THE CHILDREN'S DISCOVERY MUSEUM OF THE DESERT FOR THE
EXPANSION AND RENOVATION OF THEIR CURRENT FACILITY
(CONTRACT NO. C30150).
Mr. McCarthy stated the Discovery Museum requesting the Council
continues this item to a date uncertain.
Councilman Spiegel moved to, by Minute Motion, continue this item to a date
uncertain. Motion was seconded by Benson and carried by a 4-0 vote.
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F. REQUEST FOR AUTHORIZATION TO REJECT ALL BID PROPOSALS
RECEIVED FOR THE PURCHASE OF CUSTOM-BLEND SOLID
FERTILIZERS (RFP-A) AND CUSTOM-BLEND LIQUID FERTILIZERS
(RFP-B) FOR DESERT WILLOW GOLF RESORT.
Councilmember Benson moved to, by Minute Motion, reject all bid proposals
received for the purchase of Custom-blend Fertilizers (RFP-A) and the purchase of
Custom-blend Fertilizers(RFP-B). Motion was seconded by Ferguson and carried by a 4-0
vote.
G. REPORT REGARDING THE"REFRESH"PROJECT BEING UNDERTAKEN
BY THE RIVERSIDE COUNTY ECONOMIC DEVELOPMENT AGENCY
(EDA) FOR THE MULTI-AGENCY LIBRARY, 73-300 FRED WARING
DRIVE, PALM DESERT.
Councilmember Benson noted a meeting was scheduled at the Palm Desert
Library for the Library Committee to meet with the Riverside County
Economic Development Agency(RCEDA)to review the plans. She said the
RCEDA seemed willing to listen to any further suggestions.
Councilman Spiegel stated the current meeting facility at the library was too
small and suggested increasing the size similar to the library in Rancho
Mirage, which was busy all the time.
Councilmember Benson stated unfortunately that's what they had hoped to
do by getting College of the Desert's side, but now the College won't be
providing it, but she will certainly bring it up.
Mayor Pro Tem Finerty stated the good news was that this project didn't
require City General Fund expenditures.
Councilmember Benson concurred.
With City Council concurrence, the report was received and filed.
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H. REQUEST FOR DECLARATION OF EXCESS PROPERTY FOR
PORTIONS OF LOTS 312 AND 313 OF M.B. 27/36 AND 37 AT
GUADALUPE AVENUE ALONG MONTEREY AVENUE; AUTHORIZE THE
MAYOR TO EXECUTE A GRANT DEED TO CONVEY 1,711 SQUARE
FEET OF THE EXCESS PROPERTY TO PAUL DELIO; AND AUTHORIZE
THE MAYOR TO EXECUTE AN EASEMENT AGREEMENT FOR THE
REMAINDER OF THE EXCESS PROPERTY, ALL TO ACCOMMODATE
PRECISE PLAN NO. 07-07, A PROPOSED PROFESSIONAL OFFICE
BUILDING AT 44-450 MONTEREY AVENUE (Prest Vuksic Architects,
Applicant).
Mayor Pro Tem Ferguson moved to, by Minute Motion: 1) Declare as excess
property portions of Lots 312 and 313 of M.B. 27/36 and 37 at Guadalupe Avenue along
Monterey Avenue (approximately 5,179 square feet); 2) authorize the Mayor to execute a
Grant Deed and Property Use Agreement to convey 1,711 square feet of said excess
property to Paul Delio (Contract No. C30160A); 3) authorize the Mayor to execute an
Easement Agreement for the remainder of the excess property, all to accommodate
Precise Plan No. 07-07, a proposed professional office building at 44-450 Monterey
Avenue (Contract No. C30160B). Motion was seconded by Spiegel and carried by a 4-0
vote.
I. REQUEST FOR AUTHORIZATION TO ACQUIRE PROPERTY LOCATED
IN FALCON CREST AND KNOWN AS APN 624-441-007 (74-537 KING
FISHER CIRCLE), IF NECESSARY, IN ANTICIPATION OF EXPIRATION
OF THE FIRST RIGHT-OF-REFUSAL PERIOD (JOINT CONSIDERATION
WITH THE PALM DESERT REDEVELOPMENT AGENCY).
Councilman/Member Spiegel moved to, by Minute Motion: 1)Authorize acquisition
of 74-537 King Fisher Circle (APN 624-441-007) for the purpose of retaining affordability
covenants and resale, if necessary, in anticipation of the expiration of the 45-day first right-
of-refusal period, in the amount pursuant to the Affordable Agreement;2)approve Agency
Silent Second and City BEGIN Third Trust Deeds in amounts necessary to secure an
affordable housing cost pursuant to Redevelopment Law for either a direct sale orAgency
resale from Housing Set-aside Fund and BEGIN Program monies;3)authorize the Director
of Finance to draw monies from the relative funds to facilitate the transaction; 4)authorize
the Executive Director or his designee to execute any documents necessary to facilitate
this transaction — funds are available in Acquisition Rehab and Resale Account No.
870-4492-464-4001, BEGIN Program Fund Account No. 214-4494-464-3901, and
Homebuyer Assistance Account No. 870-4699-464-4001. Motion was seconded by
Benson and carried by a 4-0 vote.
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J. REQUEST FOR APPROVAL OF ACTIONS AUTHORIZING STAFF TO
SUBMIT AN APPLICATION FOR THE SUSTAINABLE COMMUNITIES
PLANNING GRANT OFFERED BY THE STATE OF CALIFORNIA AND
ADMINISTERED BY THE STRATEGIC GROWTH COUNCIL IN THE
AMOUNT OF$1,000,000,AND TO ALLOW THE CITY MANAGER TO SIGN
AS THE AUTHORIZED REPRESENTATIVE.
Councilman Spiegel moved to: 1) Waive further reading and adopt Resolution No.
2010 - 66, authorizing staff to submit an application for The Sustainable Communities
Planning Grant offered by the State of California and administered by the Strategic Growth
Council in the amount of$1,000,000; 2) By Minute Motion, authorize the City Manager to
sign the application as the authorized representative. Motion was seconded by Benson
and carried by a 4-0 vote.
K. REQUEST FOR APPROVAL OF THE TEMPORARY USE OF SOCCER
PARK SOUTH PARKING LOT FOR PALM DESERT HIGH SCHOOL
OFF-SITE STUDENT PARKING AND AUTHORIZE THE CITY MANAGER
TO FINALIZE NEGOTIATIONS AND EXECUTE AN AGREEMENT FOR
SAME (CONTRACT NO. C30170).
Councilman Spiegel moved to, by Minute Motion: 1)Approve the temporary use of
the Soccer Park South Parking Lot for Palm Desert High School Off-site Student Parking;
2)authorize the City Managerto finalize negotiations and execute said Agreement. Motion
was seconded by Benson and carried by a 4-0 vote.
Councilman Spiegel explained that the Palm Desert High School didn't have
a parking lot due to remodeling, and high school seniors will be allowed to
park their vehicles at the soccer park and then bused to the high school. He
said the soccer stadium parking facilities will be used for one year during
times when soccer isn't played untit the high school remodels is finished,
which is by next school year.
XV. CONTINUED BUSINESS
A. REQUEST FOR APPROVAL OF ADVERTISING DESIGN SERVICES AS
PRESENTED BY OFF MADISON AVE. (CONTRACT NO. C30110)
(Continued from the meeting of Juty 27, 2010).
Mayor Pro Tem Ferguson stated it was his understanding that Items A and
B under Continued Business were being held pending a review, which has
not been completed. He asked the City Attorney if it would be appropriate
to continue the two items until the review was complete. Mr, Erwin answered
yes.
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Councilman Ferguson moved to, by Minute Motion,continue this item to the meeting
of September 23, 2010. Motion was seconded by Benson and carried by a 4-0 vote.
B. REQUEST FOR APPROVAL OF THE 2010/2011 MEDIA PLACEMENT
PLAN (Continued from the meeting of July 27, 2010).
Mayor Pro Tem Ferguson stated it was his understanding that Items A and
B under Continued Business were being held pending a review, which has
not been completed. He asked the City Attorney if it would be appropriate
to continue the two items until the review was complete. Mr. Erwin answered
yes.
Councilman Ferguson moved to, by Minute Motion,continue this item to the meeting
of September 23, 2010. Motion was seconded by Benson and carried by a 4-0 vote.
XVI. QLD BUSINESS
A. REQUEST FOR RESCISSION OF CONTRACT WITH J P STRIPING, INC.,
FOR THE 2010 CITYWIDE STRIPING PROGRAM AND AWARD OF SAfD
CONTRACTTO THE NEXT LOWEST RESPONSIVE BIDDER, COMPANY
(CONTRACT NO. C29700).
Mr. Greenwood stated staff had a great deal of trouble getting this contract
executed with the appropriate bonds submitted, but once the contractor
became aware of this action before Council, they have now submitted the
appropriate bonds and have executed the contract. He said the Council now
had the choice of sticking with the originat contractor(J P Striping, Inc.).
Councilman Spiegel stated there was an article in the newspaper this
morning about a shortage with the pigment for striping and behind in
producing it.
Mr. Greenwood stated he heard there was an issue. Further responding, he
said he didn't know if this company had the material, but the shortage was
not dire and there could be a couple of days delay in obtaining the material.
Councilman Spiegel asked if staff wanted Council to rescind the original
contract.
Mr. Greenwood said it was the Council's choice. He noted the original
contractor delayed the whole process for two months, but on the other hand
their bid was $20,000 less than the next bidder. Further responding, he
confirmed the contractor did submit the appropriate performance bonds.
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Mayor Finerty asked if there was a provision in the contract to make the
company comply if there were further delays.
Mr. Greenwood answered yes, stating that's why this item was before the
Council, because the contractor was supposed to execute within ten days
and it's been 60 days.
Mr. Erwin stated it was a discretionary decision for the Council. This item
was put on the agenda and J P Striping was notified that the contract would
be rescinded because they had not posted bonds. All of a sudden they woke
up and posted the bonds.
Mayor Pro Tem Ferguson asked if the contractor was present, but it
appeared there was no representation from J P Striping. He then asked
who was the back-up contractor.
Mr. Greenwood answered the Chrisp Company from Fremont, which was
near Bakersfield. Further responding, he stated the Chrisp Company did
excellent work, but their bid was $20,000 more.
Councilman Spiegel asked if Public Works had the extra $20,000 in their
budget. Mr. Greenwood answered yes.
Councilman Spiegel moved to, by Minute Motion: 1) Rescind award of Contract No.
C29700 to J P Striping, Inc., Beaumont, California; 2) award Contract No. C29700 in the
amount of$107,000 to Chrisp Company, Fremont, California; 3) authorize the Director of
Finance to set aside a 10% contingency forthe project in the amount of$10,700; 4) utilize
encumbered funds in Account No. 110-4315-433-3320 from FY 2009-2010 in the amount
of $92,642 for this project — balance of funds available in General Fund Account
No. 110-4315-433-3320. Motion was seconded by Ferguson and carried by a 4-0 vote.
B. REQUEST FOR APPROVAL OF AMENDMENT NO. 4 TO CONTRACT
NO. C22310A WITH RBF CONSULTING, INC., FORADDITIONAL DESIGN
SERVICES FOR THE MONTEREY AVENUE INTERCHANGE RAMP
MODIFICATION PROJECT ON INTERSTATE 10 (PROJECT NO. 669-02).
Responding to question, Mr. Greenwood stated this change order was
�argely because of CalTrans new requirements. As projects go through this
extended process, rules change,thereby costing more money. Howeverthis
was a cost-saving measure, because the sound wall was redesigned and
actually saving $2 million, which brought good value to this change order.
Councilman Spiegel moved to, by Minute Motion, approve Amendment No. 4 in the
amount of $147,960 to the subject contract with RBF Consulting, Inc., Palm Desert,
California, for additional design services to complete plans, specifications, and estimate,
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bidding, award, and construction support services for the Monterey Avenue Interchange
Ramp Modification Project on Interstate 10 — funds are available in the Measure "A" -
Monterey Ramp Modification Account, No. 213-4389-433-4001. Motion was seconded by
Benson and carried by a 4-0 vote.
C. REQUEST FOR APPROVAL OF AN EXTENSION TO THE 60-DAY
SUSPENSION OF ENFORCEMENT OF CHAPTER 25.68 - SIGNS,
SECTION 25.68.050(M) - PROHIBITED SIGNS, OF THE PALM DESERT
MUNICIPAL CODE, FOR AN ADDITIONAL 180 DAYS TO ALLOW THE
DISPLAY OF TEMPORARY OFF-SITE SIGNAGE FOR RETAIL
BUSINESSES.
Mayor Pro Tem Ferguson stated he would move approval with the request
that Code Enforcement make sure the signs did not impair the visual from
vehicles on the public right-of-way on corners and did not impede the
Americans with Disabilities Act accessability issues for wheelchairs.
Mayor Pro Tem Ferguson moved to, by Minute Motion, approve an additional
180-day suspension of enforcement of Chapter 25.68 - Signs, Section 25.68.050(M) -
Existing Off-site Signage Prohibition, to allow retail businesses temporary off-site signage
not located within the public right-of-way, with City Code Compliance staff specifically
requested to ensure all such signage does not impair line of sight of the public right-of-way
on corners for vehicular traffic and also that it does not impede either pedestrian or
disabled access (e.g. wheelchairs) on sidewalks/walkways in compliance with the
Americans with Disabilities Act. Motion was seconded by Spiegel and carried by a 4-0
vote.
XVII. PUBLIC HEARINGS
A. REQUEST FORAPPROVAL OF HISTORIC DISTRICT DESIGNATION FOR
THE SHADOW MOUNTAIN GOLF CLUB LOCATED AT 73-800
IRONWOOD STREET Case No. CRPC 10-OZ(Shadow Mountain Golf Club,
Applicant).
Mr. Grance stated the proposed Resolution was requesting Council's
consideration in approving historic designation to the Shadow Mountain Golf
Club (SMGC). A public hearing was conducted on June 29, 2010, at the
Cultural Resources Preservation Committee, and unanimously
recommended nominating the Shadow Mountain Golf Club located at 73-800
Ironwood Street for historic district designation. The SMGC is located in the
heart of the Coachella Valley surrounded by the Santa Rosa and San Jacinto
Mountains. The SMGC was incorporated January 24, 1958, and designed
by famed and legendary golfer, Gene Sarazen. It was the first golf course
in Palm Desert and was originally affiliated with the adjacent Shadow
Mountain Tennis Resort; it is now privately owned and run by its equity
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members. The property is eligible for designation as a City Historic District
in accordance with section 29.50.010 Historic District Designation Criteria as
it "exemplifies or reflects special elements of cultural, social, economic,
political, aesthetic, engineering, architectural, or natural history, and reflects
distinctive examples of community planning or significant patterns, including
those associated with different eras of settlement and growth, agriculture, or
transportation.
Mayor Pro Tem Ferguson asked if the Board at Shadow Mountain supported
the designation. Mr. Grance answered yes.
Mayor Finerty declared the public hearing o en and invited public testimony
FAVORING or OPPOSING this matter.
MR. CONRAD KAUBLE, 46080 Burroweed Lane, Palm Desert, stated he
was on the Board of Directors forShadaw Mountain Golf Club. He confirmed
the Board of Directors and majority of the members voted positively to
pursue the historic designation. He said Mr. Grance and Committee were
helpful in working with them and felt the impact of the SMGC had a historic
effect on the City of Palm Desert. In the 1950's SCMGC was the center of
Pafm Desert and a magnetic draw for this area.
With no furthertestimonyoffered, Mayor Finerty declared the public hearing closed.
Councilman Spiegel moved to waive further reading and adopt Resolution
No. 2010 - 67, reaffirming the action of the Cultural Resources Preservation Committee,
designating the Shadow Mountain Golf Club located at 73-800 Ironwood Street with
Historic District Designation, in accordance with Section 29.50.010 of the Palm Desert
Municipal Code. Motion was seconded by Ferguson and carried by a 4-0 vote.
B. REQUEST FOR APPROVAL OF AMENDMENT TO RESOLUTION NO. 91-5
TO REMOVE DEPARTMENT OF COMMUNITY
DEVELOPMENT/PLANNING CONDITION NUMBER 10 THAT THE
WARING PLAZA COMMERCIAL CENTER LOCATED AT
72-280 HIGHWAY 111 SHALL NOT INCLUDE A SUPERMARKET, AND
CONSIDERATION TO AUTHORIZE STAFF TO DRAFT AN AMENDMENT
TO CHAPTER 25.30 OF THE ZONING ORDINANCE TO ALLOW
SUPERMARKETS NOT EXCEEDING 70,000 GROSS SQUARE FEET AS
CONDITIONAL USES IN THE REGIONAL COMMERCIAL PC (3) ZONE
Case No. PP 90-13 Amendment#1 (KKE Architects/Brian Ariaf, Applicant).
Assistant Planner Kevin Swartz stated the site is located on the northeast
corner of Highway 111 and Fred Waring Drive, as Waring Plaza. He said
Precise Plan 90-13 was approved and placed the condition that the Waring
Plaza Center shall not include a supermarket. The subject condition conflicts
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with Condition No. 21, which allows commercial uses to be approved at
Administrative level. He said by removing the subject condition, the
discrepancy can be eliminated. The second request is to authorize staff to
draft an amendment to the Zoning Ordinance to allow supermarkets less
than 70,000 square feet in the PC (3) zone. Zoning restrictions currently
prohibits supermarkets larger than 50,000 square feet in the PC (3) zone.
Since the staff report was prepared and the agenda was publicized, a letter
was received from Mr. Robert A. Bernheimer. The letter is questioning the
environmental analysis on a proposal to remove Condition No. 10. The
original project that was studied identified the use of retail, which includes
groceries. Staff did not believe that changing the building occupant from a
department store to a grocery would have a significant impact on the
environment. In light of the objection and in the abundance of caution, staff
recommended that the issue be studied and the appropriate environmental
documents be prepared for consideration before Council took action on the
request to remove Condition No. 10. However, the City Council can direct
staff today to prepare the Zoning Ordinance Amendment from the entire
case, including removing Condition No. 10 and brought before the Planning
Commission and City Council with the appropriate and environmental
documents; otherwise, staff's recommendation remains the same.
Responding to question, Mr. Erwin stated he read the letter from
Mr. Bernheimer and thought it would be appropriate to conduct an
environmental review if there was a change of a zone for this project, and it
would be appropriate to continue the matter.
Mayor Finerty declared the public hearing o en and invited the Applicant to address
the CounciL
MR. SCOTT HINES, Senior Partner with Burk, Rix, Hines&Associates, 777
East Tahquitz Canyon Way, Suite 111, Palm Springs, stated he was
representing his client, Vons a division af Safeway Incorporated, and noted
that Vice President Real Estate Bryan Bratten was present this evening to
answer any questions of a technical nature. First he expressed his sincere
condolences to the family, friends, and colleagues of Councilmember
Richard Kelly. He said his service to the City of Palm Desert was nothing
short of excellent, and he especially appreciated that he was a Veteran and
served in the Army Air Corps for our Country. He said his sense of humor,
and his corporate knowledge, and sense of history here in Palm Desert will
be greatly missed. He said it was especially relevant to acknowledge that
today, because this issue was one that Councilman Kelly and
Councilmember Benson could shed a lot of light on as they were here when
this was originally considered. He said their perspective was welcomed,
because Resolution 91-5 was really an obscure resolution that was only
recently discovered by City staff, specifically Conditions10 and 21. He said
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the matter before City Council today was a modern land use issue that
involved relatively outdated concerns that were relevant 20 years ago, but no
longer applied today. The original conditions placed on the Waring Plaza
Center restricted supermarkets due to a belief that another supermarket was
unnecessary at that time, in addition to concerns about traffic and noise,
which were relevant at that time. Since then the City of Palm Desert as well
as the whole Coachella Valley has changed. There has been tremendous
growth on Highway 111 as it was now a major economic corridor the entire
Coachella Valley used, and the street has been widened significantly. There
is also a belief within the business community that putting your business on
or near Highway 111 was a recipe for success as one competed against
others. He said Vons was one of the largest food retailers in the United
States and strides to provide its customers the highest quality products with
a vast array of shopping enhancement services. In the last decade, modern
supermarkets have become larger to accommodate market demand for
greater inventory choice, speciality services, and product placement design.
As a result, Vons has invested millions of dollars nationwide to upgrade the
shopping experience for its customers from facade improvements to
expansions into larger stores in order to stay competitive with other chains.
The current location of Vons at the Pines to Pines Shopping Center is dated,
too small, and limits Vons ability to compete with other supermarkets that
have recently opened in close proximity to that location. This situation is
similar to their ultimate decision to close their Rancho Mirage location where
Vons was faced with a critical business decision to evolve, expand, and
enhance the shopping experience for residents or be forced out of the
market by competitors. After extensive market research and due diligence,
Vons believed that relocating their existing Palm Desert store to a bigger
location at the Waring Plaza Center will help them accomplish their need to
improve their services to the community, but most important, remain
competitive. The new Vons at Waring Plaza Center will be 15,000 square
feet larger than the current store and will significantly improve the modern
shopping experience. The move will provide Vons with a better location,
increase in size, refreshed retail space, and enhanced visibility of the Waring
Plaza Center from Highway 111, which will further the success of Vons store
and increase revenue for the City of Palm Desert. He said the relocation will
help to create new jobs over and beyond what the current location can
accommodate. Finally, moving to a new location will allow even distribution
of grocery stores throughout the City of Palm Desert, and providing a remedy
for the clustering that's occurring. The new location situates Vons to serve
an under served area of the City as well as attract shoppers from
neighboring cities. He said the remaining square footage in the building will
be converted into three independent tenant spaces, which will also add new
jobs and tax revenue for the City where there's currently none. Vons has
plans for a one, 15,000 square-feet spaces, two, 3,000 square-foot spaces,
and are actively recruiting tenants now. As for the vacated space at Pines
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to Pines, Vons is activety working in good faith to recruit a new speciality
grocery vendor. It's likely that this relocation by Vons will also force Pines to
Pines to make improvements to what is a dated property, in order to
successfully recruit tenants, which was a good thing for the City and existing
tenants, and the people that live nearby. Its unfortunate that some of the
tenants may or may not lose business because of Vons departure, but as
with any business, owners must make a decision on where to locate their
business on a multitude of factors, which includes the possibility that an
anchor tenant may close or relocate at some point. The fact is that the lease
for Vons is about to expire at the Pines to Pines Shopping Center, and the
company will eventually leave that location regardless of their ability to
relocate to Waring Plaza Center. He said the matter before the Council
today was not on whether or not Vons will stay at Pines to Pines, because
no matter what the outcome was today or in the future, Vons was leaving
Pines to Pines; it was no longer a viable location for a supermarket of their
size to compete with grocery stores nearby. The local residents and
immediate vicinity of Pines to Pines have multiple grocery store shopping
options. The residents on the west side of Palm Desert have very vew
options and would stand to benefit from the new location, but it's important
to understand that Vons is ultimately leaving Pines to Pines; the lease is up
and a business decision has been made. He understood there were letters
from current landlords and tenants at Pines to Pines that have made an
effort to disrupt Vons decision to relocate, and questions regarding any
supposed California Environmental Quality Act(CEQA) requirements at the
new location have also been raised by an attorney representing the tenants
at Pines to Pines. He asked the Council to see this for what it is, desperate
small businesses and rightfully so, hoping to keep Vons at Pines to Pines.
However, their efforts are in vain, because Vons is ultimately leaving Pines
to Pines. To require CEQA at the new location would be superfluous and
nothing short of a poison pill attempt by a hired gun attorney. He said Vons
will go through the planning process with other plans and there will be many
opportunities to evaluate traffic and otherthings through the normal approval
process. He said Vons has been a strong partner of the City of Palm Desert
for many years, and so far, the entitlement and approval process has been
nothing short of excellent in working with staff. It's very unfortunate that after
extensive due diligence, prior to purchasing Menryn's Shopping Center for
approximately $12 million, the City planner discovered a lost document,
which appears to preclude a grocery store at this location. Neither title
reports nor zoning information from the City indicated that Resolution 91-5
was ever recorded or even existed, but the Resolution dealt almost
exclusivelywith development conditions in the initial build out of the shopping
center. He suspected the conditions were relative at the time, but at this time
their relevancy has expired. He said these conditions can quickly be
overcome by following the recommendation of staff. He said the proposed
property is currently designed Regional Commercial, and in the General Plan
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it's zoned for Planned Commerciai, which aliows for supermarkets. He said
Vons was in compliance with current zoning, it's not significantly different
from the existing property use by previous occupants as noted by City staff,
a grocery and retail store were essentially the same in many ways. He
asked the Council to allow Vons to continue moving forward in an
expeditious way and to not exasperate the planning process. He asked the
Council to follow staff's initial recommendation and not be distracted by a
threatening letter that came in one and half hours ago with CEQA threats,
and remove Conditions Nos. 10 and 21 in order to continue with the planning
process, and allow Vons to move forward.
MR. STEPHAN JENKINS, Irvine, CA, stated he was not an attorney, but he
was a citizen, and what was really interesting to him was the argument that
somehow this was not subject to CEQA. He's glad the letter was submitted
and that the Council concurred. In reality, it was a project under CEQA,
because it's directly linked between the removal of the conditions and the
intention to build the Vons with a change in the zone. He said you couldn't
take one without the other, and one couldn't piece meal CEQA. He was
pleased that staff had recommended a CEQA reviewand Council concurred.
He said a letter from Vons indicated more jobs would be generated, which
meant new impacts. He said this was a discretionary decision of the Council
that had the possibility of causing an environmental impact, which would
require a CEQA review; the review may be better or worse, but one couldn't
say it was no longer relevant. Council will make a determination, which will
require CEQA review or there will be new changes, but if there are new
changes, then the conditions wouldn't have been applied in the first place.
Obviously, at one point in time this Council and five members said there
were differences between shopping centers and what's approved for the
balance of the site. Just the fact that new jobs will be created was a new
impact, so it wouldn't hold water to say it didn't require CEQA review.
Additionally, it's been stated that Condition No. 10 was in conflict with No. 21,
but Item 10 is exact and very specific, supermarkets are prohibited, which
was unambiguous. The fact that the Community Planning Director can say,
"Gee, I would really like to change this and add different tenants," of course
they can, but they can't go directly against the condition that was heard in a
public hearing, discussed, considered, and in place. He thanked the Council
its time.
MR. GREG ZIMMERMAN, Poppy Lane, Palm Desert, stated he was a Real
Estate Broker at NAI Capital, Commercial Real Estate Broker on EI Paseo,
Palm Desert. He was asked to represent the property owner of Pines to
Pines, because the owner lived out of town and he lived here locally. The
property owner made an attempt to have one or more tenants to express
their opinion, but given that they were given very short notice by the property
management and owner, he was requested to speak on their behalf. It's
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been stated this relocation wouid be job and tax neutral. The tenants are
taking into account the large anchor tenant that's moving, but often people
forget the little guys that will end up giving up jobs, because tenant and jobs
will be lost, which was inevitable and it happened with supermarkets. He
said other tenants may stay and seek rent relief from the landlord and that's
natural as well. However, he didn't think it would be job and tax neutral.
Additionally, Pines to Pines is made up of more than one parcel and owned
by separate entities, even though they are not attached to Vons, they will be
affected as well, but he was not speaking on their behalf. He hoped there
would be a possibility for a future hearing where tenants can be heard. It
was his opinion that often when supermarkets left,they didn't cooperate with
ownership with regard to getting a replacement. If they are already or willing
to do that, it was fantastic news. He only hoped that if their approval went
through, that the Council would place a condition or language that the
Applicant will do everything within their means to help get a competitive
tenant, so that they didn't sit on the property for six or twelve months.
MR. ANY WEIGEL, Crest Lake Drive, Palm Desert, stated he would like to
read a short letter in favor of this relocation. He said he was a managing
partnerfor Realty Trust Group and proudly owned the majority of the parcels
that comprise Waring Plaza for the past two decades. The company is
responsible for managing the common area for the entire center on behalf
of the various parcel owners and merchants, including the largest parcel now
� owned by Safeway/Vons. He is also proud to be a full-time resident of Palm
Desert for 17 years, where his family continues to own a home and spend
much of their winter to this day. He said they were not a legal party to the
recent acquisition of the former Menryns by Safeway, but they did endorse
and recommend that the City's provide full cooperation to Safeway/Vons in
their relocation, expansion, and flagship Highway 111 grocery store. He was
aware that Council's decision this evening will have a direct impact on the
future of many merchants, some negative, but many more positively. Waring
Plaza has more than two dozen merchants that are eager to see the Council
vote in favor. What is at stake, is the future of one of the most visible retail
corners in the desert, the largest retail vacancy, the challenge of ineeting the
changing needs of the marketplace, encouragement of significant
investment, construction, expansion, improvement, opportunity to visibty
improve the gateway to the City from the west, and opportunity to increase
taxable income from one of the City's largest retailers. A few merchants in
this economic climate are willing to invest, expand, and to change with the
times to survive as Saveway/Vons is wisely asking to do. Those merchants
who do so, not only survive, but also reposition themselves to better serve
their communities, and those who can't are forced to stagnate or simply
close their doors. Some speakers here tonight were speaking out of fear of
losing their tenants or their businesses. He said they were sympathetic
because they too have been there as well. In the mid 1990's this Council
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voted to allow Desert Crossing to re�ocate Circuit City across the street from
Waring Plaza, and the tenants at Waring Plaza didn't like it either. At the
time it seemed unfair, because the Council even contradicted a resolution it
voted on restricting that developer from retocating any existing business
within the City. In the short run, the tenants at Waring Plaza felt hurt, but in
the long run, the more important needs of the community were being met
and Waring Plaza tenants were asked to adopt as well. Circuit City needed
to double their space and in retrospect the decision to relocate them better
served the community for both centers for the next 15+ years. He said
Warning Plaza tenants survived, adopted, and brought in a more appropriate
tenant for the space, the Alley, which has been an asset to the community.
He said Pines to Pines too will survive, adapt, and improve as well. In the
end,the decision this evening forthe Council should not be about preserving
the old, but making room for the new. IYs not about what's in the best
interest of the few, but what's in the best interest of the whole community.
He believed the market demand made the decision to move, but local
government wisely manages and reasonably cooperates with what the
marketplace is asking for, which is a bigger, newer, better located, and a
more visible grocery store. He believed the Council would support this
request, if not, another city nearby certainly will. He said if the Council
wanted grocery stores in Palm Desert to survive, he asked the Council not
to let them suffer the slow death of keeping the status quo, and weigh what
the market was asking for today and not two decades ago. To that end,
neighboring parcels pledge their support, cooperation, and own capital
improvement dollars to see this highly visible corner revitalized and
repositioned with the pride of ownership Safeway/Vons was asking.
Mayor Finerty offered Mr. Hines an opportunity to rebuttal, but he declined.
MS. JAMtE KIRKPATRICK(sp?), Pines to Pines tenants, stated she just
found out about this matter at 3:30 p.m. today, so she didn't have a lot of
time to prepare an eloquent speech. However, she took issue with
comments made about preserving the old and bringing in the new and
maintaining the status quo. She said they've had their dry cleaner business
for one year and two other businesses moved in after into the Pines to Pines
Center, so this was not about preserving the old. In response to comment
made by Mr. Hines that new jobs would be created, she believed jobs will
also be lost by small business owners, stating she and her husband spent
every last cent they had into the business and a dry cleaner depended on the
draw of a major grocery store, not a speciality grocery store. She said Palm
Desert already had Trader Joe's and Jensen's; they do not have competition
from major markets there, because they closed their own from Bob Hope,
obviously to consolidate to one store. She also took offense to the comment
about small business owners taking responsibility to research when getting
into a building, because she researched the site, talked to Vons corporate
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headquarters, and was told that the store on Bob Hope and Highway 111
was going out and the Vons at Pines to Pines Center would be staying,
which is why they relocated their business there. She said they were lied to
or Vons changed their mind, but either way she and her husband will end up
losing everything. She said it took a dry-cleaning business approximately
three years to break even. She pleaded with the Council to please
reconsider or at least continue this matterto a later date so that more people
can have a voice in this situation.
MR. ALIBABA FARZANEH, Via Santa Thomas, Rancho Mirage, stated he
couldn't resist responding to comments from those who would lose the big
neighbor(Vons), because Mr. Hines repeatedly dictated that Vons will not be
staying at Pines to Pines and questioned why the Council would want to
chain them. He said if Vons was leaving, it's better to relocate them to
another location in Palm Desert, otherwise they may be moving to a
neighboring city.
Mayor Finerty asked Mr. Hines if he wished to add any comments.
MR. HINES responding to Ms. Kirkpatrick comment,stated Vons understood
the importance of their responsibility of being an anchor tenant, which was
why they are actively working to fill the space with another commercial entity
that will draw people to that location. Vons had been publicly acquiring the
Mervyn's Shopping Center for quite some time, but sometimes information
didn't make it to everyone. He knew on behalf of his client that it was a
difficult decision to relocate, but like any business,they are trying to preserve
their competitiveness and survive in what is an extreme difficult economic
time. On the flip side, the hope is that at the new location other businesses
that co-locate with them will flourish for many years to come. He thanked the
Council for their consideration.
With no furthertestimonyoffered, Mayor Finertydeclared the public hearing closed.
Councilman Spiegel asked if this case needed to go through the Planning
Commission process and return to the City Councit.
Mr. Erwin answered yes.
Councilmember Benson stated she would like to comment, but not as an
admonishment to staff, but she was dismayed to have read in the newspaper
that no one in City Hall was aware of the resolution. She said no one asked
her or called a City Councilmember to see if they knew anything about that
corner, because she knew a grocery store was not allowed to go there, and
the Council wouldn't be in this position today. Secondly, overthe years most
majordevelopers who wanted to do something different in Palm Desert came
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to the Council first to notify of their relocation and to see if it was okay. She
said to allow Vons to get away with moving from one center to another would
only create another vacuum. Maybe they will leave Pines to Pines, which is
there prerogative, but it's also the Council's prerogative not to encourage
them to do it as well. She knew the Pines to Pines Center has been here
since the City incorporated. In 1973, a lot of people that lived in the
Sandpiper area purchased a home because they counted on what that
Center provided. She can almost guarantee those people will not come up
to Fred Waring, but instead go down the other way of town. She didn't
believe the move will bring in new business, and the closest store was within
two blocks. If Vons wanted to expand, the vacant spaces at Pines to Pines
could have been bought, but they want the Highway 111 corridor. In 1973
the Council voted not to allow grocery stores there, because they weren't a
large cash generator for the City and retail stores were. She said the City of
Palm Desert depended on retail sales and Transient Occupancy Tax(T.O.T)
to run the City, which was a good reason not to want that sized store on
Highway 111. It will absolutely kill Pines to Pines and cause more havoc
then leaving Mervyn's empty. She couldn't support changing the zone to
allow Vons to move there, because it was changing something good into
something bad, leaving Palm Desert looking awFul.
Mayor Pro Tem Ferguson noted he met with Vons representatives earlierthis
week. He said the remarkable thing about Palm Desert was that you
wouldn't have any problems finding people that knew what happened twenty
years ago, because he reviewed the past minutes and then Councilman
Crites stated he didn't think additional markets were needed along Highway
111; Councilmember Benson stated Albertson's might be a good addition to
the City in some other location; Councilman Roy Wilson stated he had
trouble with grocery stores as part of the project; Councilman Kelly agreed
this was not a good ptace for a grocery store; and then Mayor Walt Snyder
was against a grocery store because of the location. He said it was a
unanimous vote against back then, and granted that was then and this was
now, but when most of these letters were generated, Dick Kelly was around,
Buford Crites was less than a mile from City Hall, Jean Benson was about
one and half miles away from City Hall, and many City staff still lived here
that could have easily told you that with all the multiple General Plan
revisions and updates, never had the PC(3)Zone been changed. Whether
or not it made it to the preliminary title report was really of no consequence,
because it was not such a hidden thing as been claimed. Subsequently, that
was then and this is now, and for the Council not to take this case through
the Planning Commission and have the Applicant submit an application so
that Council can see what is planned, notify neighbors, and get full input from
everyone, was not something the Council would do regardless of how it felt
on the merit of the application. He said CEQA existed for a reason, and
even though people scoff at it, the Council was here to make sure the law is
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followed, and the project will have to comply with CEQA. He was sorry about
it, even if it was a declaration of whatever staff determined, but the City had
a process, and Vons can go through it, and at the end of the day it will return
to the City Council for a vote once it had all the input from residents. He
realized this was a business decision, and City Council was the government,
and Vons was the private sector and all that good stuff, but at this point, he
didn't have enough information to make a decision about what is a major
institution for the 6,000 or so residents that lived south of Highway 111. He
said Vons was one of the few remaining grocery stores for South Palm
Desert, and the move would be a big impact even though it was shifting from
one side of the street to the other, but it will affect many businesses and a
lot of people. He is fully supportive of referring the case to the Planning
Commission for it to go through the process, obtain a CEQA analysis, having
the Planning Commission hear it, invite input from business community,
chamber, residents at both Mervyn's and Sandpiper areas, and anyone else
interested. The matter can then return to the City Council when it can have
a full public hearing and then decide what is best for everyone.
Counciiman Spiegel concurred, stating that would be his motion.
Mayor Finerty also concurred.
Councilman Spiegel moved to, by Minute Motion, referthe case back to staffforfull
development processing through the Planning Commission and ultimately City Council.
Motion was seconded by Ferguson and carried by a 4-0 vote.
C. REQUEST TO EXTEND FOR AN ADDITIONAL ONE-YEAR PERIOD OF
TIME THE MORATORIUM REGARDING THE ISSUANCE OF
CONDITIONAL USE PERMITS FOR INDEPENDENT MASSAGE
ESTABLISHMENTS UNDER THE CITY'S MASSAGE ORDINANCE -
PALM DESERT MUNICIPAL CODE CHAPTER 5.87 - WHILE OPTIONS
FOR LONG-TERM REGULATORY STRATEGYARE STUDIED, PLANNED,
AND PRESENTED TO CITY COUNCIL FOR IMPLEMENTATION.
Councilman Spiegel stated he would abstain on this item and left the Council
Chamber.
Mr. Erwin offered to answer any question, but basically the reasoning here
was that the existing moratorium expired the following day and Ordinance
No. 1216 was passed on first reading earlier this evening, and it will be
another 45 days before that Ordinance was effective. Rather than having a
45-day gap, staff was suggesting imposing the moratorium. Once the other
ordinance became effective, staff will rescind this one.
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Mayor Finerty declared the public hearing o en and invited public testimony in
FAVQR or OPPOSITION. With no public testimony offered, she declared the public
hearing closed.
Mayor Pro Tem Ferguson moved to waive further reading and adopt by four-fifths
vote Interim Urgency Ordinance No. 1216, making findings and extending the Moratorium
on the issuance of Conditional Use Permits to independent massage establishments for
up to another 12 months. Motion was seconded by Benson and carried by a 3-0 vote, with
Spiegel ABSENT.
XVIII. REPORTS AND REMARKS
A. CITY MANAGER
None
B. CITY ATTORNEY
None
C. CITY CLERK
None
D. PUBLIC SAFETY
o Fire Department
None
o Police Department
Lt. Shouse reported that within the last 10 days, the Police
Department/Sheriff's Department moved to its new station on
Gerald Ford Drive and was now in the midst of settling in there. A
grand opening of the new facility is scheduled for Tuesday,
October 12, at 10:30 a.m., and City Councilmembers would be
receiving formal invitations to the event. The public is invited to
attend as well. Additionally, he said staff intended to hold the next
regular Public Safety Commission Meeting on Wednesday,
September 8, at the new station, and it was hoped that other
Committee and Commission Meetings could be held there in the
future too.
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E. MAYOR AND MEMBERS OF THE CITY COUNCIL
o City Council Reauests for Action:
1. Energy Pro ram — Mayor Pro Tem Ferguson recalled for his
colleagues that mid-spring this year, partly in reaction to
Property Assessed Clean Energy Programs (PACE)
throughout the U.S., the Department of Energy issued a set of
underwriting criteria that they wanted the 21 other states that
followed California's (Palm Desert's) AB 811 legislation to
follow. It essentially mirrored what Palm Desert had done. On
July 6, the Federal Housing and Financing Agency(FHFA), a
newly created agency that regulates and is somewhat the
conservator of the Fannie Mae and Freddie Mac home
mortgage institutions, announced that it would no longer
recognize AB 811 Energy Efficiency Loans. Consequently,the
City's Energy Subcommittee, including he, Mayor Finerty,
Director of Finance Paul Gibson, Redevelopment Manager
Martin Alvarez (who oversees the Office of Energy
Management), City ManagerJohn Wohlmuth, and some other
Finance members, as well as the City's Redevelopment
Agency Counsel, suspended taking applications for the EIP
Loan Program pending analysis of the fallout of FHFA's
decision. At the subsequent August 11 Subcommittee
Meeting, it received a report back that there really was no
adverse effect to the City per se, but there were some
additional disclosures that would need to be made to people
seeking new applications. When the City's Program was
suspended, 25 people had applied for a little over$1 million of
funding, about half for solar applications, half for efficient air
conditioners, and they've now been in limbo for 51 days. He
said the net effect was that the risk they'd now be subject to
additional disclosure on was that they may have to pay off their
Energy Second Loan upon sale of their home. If they wish to
proceed through Palm Desert's Energy Efficiency Program,
they would do so with the recognition that they may have to
pay off the Energy Loan, get conventional financing, or simply
not obtain a loan at all—it is still completely within their purview.
He said the City had hoped to make its criteria dovetail
perFectly with the Department of Energy's, but it recently came
to light that the FHFA really didn't care what Palm Desert did;
no matter what, they were not going to recognize the City's
loans. That left the City in a situation of either doing nothing
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for its residents or giving them the choice of whether or not
they want to borrow from us or not. He asked Mr. Erwin to
state his opinion on the matter and then see how his
colleagues wanted to proceed.
Mr. Erwin said the City was certainly authorized to move
forward. The additional disclosures would need to be made.
He believed the City should just move forward and restart its
program.
Mayor Finerty agreed, as long as people realized the purpose
of the disclosure and go in with their eyes wide open. At the
same time, they have the ability to put in energy efficient
appliances and air conditioning units, which ultimately they
probably wouldn't have the wherewithal to do otherwise. She
pointed out that we were still in a very hot, humid, muggy
August, and it was unknown what was to follow; therefore, she
would very much like to restart the program with those other
disclosures.
Councilman Spiegel asked what would happen if the
homeownergoes into default and walks away from their home.
Mr. Erwin responded that the City would then have to look at
what existed on the property, and if the mortgagee defaulted,
the City may foreclose. Further responding, he said what
happened next would depend on existence of the first
mortgage; it would be something that would have to be
reviewed individually to make a determination.
Councilman Spiegel said his only real concern was who would
take the loss if a homeowner walked away from their home
with an Energy Loan.
Mr. Erwin didn't believe the City was going to lose given its
criteria.
Mayor Pro Tem Ferguson added the situation would be the
same as if someone didn't pay their Landscaping & Lighting
Assessment, the City could foreclose and would be a senior
lien holder. He believed default rates on the City's mandatory
assessment districts at tax sale was less than 1%.
Councilman Spiegel said he would agree as long as he was
guaranteed that if they walk away from their house, the City
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would be protected and get its money back, adding that there
were currently a lot of people walking away from their homes
in Palm Desert.
Responding to question about adding direction to restart the
City's Energy Independence Loan Program to this agenda,
Mr. Erwin replied that consideration of Item C - Resolution
No. 2010-65 under Section XII - Resolutions, was sufficient
notice regarding the Energy Program that provided for related
action.
Mayor Finerty moved to, by Minute Motion, instruct staff to restart the City's Energy
Independence Loan Program(EIP), beginning with the 25 people whose applications were
suspended on July 6. Motion was seconded by Ferguson and carried by 3-0-1, with
Spiegel ABSTAINING.
Councilman Spiegel noted that he abstained because he didn't feel he knew
enough about it to cast an informed ballot.
o Citv Council Consideration of Travel Requests and Reqorts:
None
o Citv Council Committee Reports:
1. SunLine Transit Agencv — Councilman Spiegel reported that
he'd sent his colleagues information about the SunLine route
problem. He said they were trying to get it worked out; the
Board felt it was important to go out to the schools.
o Citv Council Comments:
1. EI Paseo Villaae — Councilman Spiegel commented that the
new shopping center on EI Paseo was almost complete except
for the steakhouse to be located on the corner. In fact, he said
the Kate Spade store was already open, and everything else
except the steakhouse would be open by September 1. He
looked forward to the additional dollars to be generated for the
City.
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AUGUST 26, 2010
2. Toastmasters International—Councilman Spiegei noted that in
the past couple of weeks he presented a Prociamation to the
International Toastmasters Association, which was holding a
meeting of 2,000 participants at the Marriott Desert Springs.
Sixty-one countries were represented. He welcomed them all
to the City and assured them that they were experiencing a
"dry heat."
XIX. ADJOURNMENT
Upon a motion by Spiegel, second by Ferguson, and unanimous vote of the City
Council, Mayor Finerty adjourned the meeting at 6:08 p.m.
CINDY FINERTY, MAYOR
ATTEST:
RACHELLE D. KLASSEN, CITY CLERK
CITY OF PALM DESERT, CALIFORNIA
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