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HomeMy WebLinkAboutPreliminary Minutes - City Council April 14, 2011DRAFT PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING THURSDAY, APRIL 14, 2011 CIVIC CENTER COUNCIL CHAMBER 73510 FRED WARING DRIVE, PALM DESERT, CA 92260 I. CALL TO ORDER - 3:00 P.M. Mayor Pro Tern Spiegel convened the meeting at 3:01 p.m. II. ROLL CALL Present: Councilmember Cindy Finerty Councilmember Jan C. Harnik Councilman William R. Kroonen Mayor Pro Tern Robert A. Spiegel Mayor Jean M. Benson arrived at 4:00 p.m. Also Present: John M. Wohlmuth, City Manager/RDA Executive Director David J. Erwin, City Attorney Justin McCarthy, ACM for Redevelopment Stephen Y. Aryan, Assistant to the City Manger Rachelle D. Klassen, City Clerk 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 Mark Greenwood, Director of Public Works Frankie Riddle, Director of Special Programs Bill Hunley, Battalion Chief, Palm Desert Fire/Riverside Co. Fire Dept./Cal Fire Misty Reynolds, Admin. Sergeant, Palm Desert Police/Riverside Co. Sheriff's Dept. Bill Sullivan, Lieutenant, 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 Request for Closed Session: Conference with Real Property Negotiator pursuant to Government Code Section 54956.8: PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 14, 2011 1) Property: 47455 South Cliff Road (APN 628-120-012), Palm Desert Negotiating Parties: Agency: John M. Wohlmuth/Lauri Aylaian/City of Palm Desert Property Owner: Kathleen Rust/Hayward Pardue Under Negotiation: x Price x Terms of Payment 2) Property: APN 626-140-060, Palm Desert Negotiating Parties: Agency: John M. Wohlmuth/Lauri Aylaian/City of Palm Desert Property Owner: City of Palm Desert Other Parties: Rob Ballew/Family YMCA of the Desert Under Negotiation: x Price x Terms of Payment Conference with Legal Counsel regarding significant exposure to litigation pursuant to Government Code Section 54956.9(b): Number of potential cases: 2 Public Employment pursuant to Government Code Section 54957: Title of Position: City Manager On a motion by Finerty, second by Kroonen, and 4-0 vote of the City Council, with Benson ABSENT, Mayor Pro Tern Spiegel adjourned the meeting to Closed Session at 3:02 p.m. He reconvened the meeting at 4:00 p.m., explaining that Mayor Benson asked him to preside for the remainder of the meeting because she'd had a procedure on her eyes earlier today that would make it difficult to read the agenda titles. 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 Jean M. Benson VI1. INVOCATION - Mayor Pro Tern Robert A. Spiegel VIII. ORAL COMMUNICATIONS - B MS. FELICIA HORTON, Events Supervisor for the Desert Recreation District, 43- 900 San Pablo Avenue, Palm Desert, thanked the City of Palm Desert for supporting the Palm Desert International Sports Festival (formerly known as the Palm Desert Senior Games). She presented a shadow box of memorabilia from this year's event, along with a t-shirt prominently featuring the City of Palm Desert, and a gold medal for each Councilmember. Mayor Pro Tern Spiegel thanked Ms. Horton and the District for the recognition. K PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 14, 2011 IX. AWARDS, PRESENTATIONS, AND APPOINTMENTS A. PRESENTATION TO RECOGNIZE KIMBERLY BOWERS FOR HER SERVICE TO THE CITY AS A MEMBER OF ITS MARKETING COMMITTEE, 2009 - 2011. Ms. Bowers was unable to be present at this meeting. The engraved crystal clock thanking her for serving the City's Marketing Committee will be sent to her. B. APPOINTMENT OF MEMBERS TO THE INAUGURAL PALM DESERT CITIZEN'S SUSTAINABILITY COMMITTEE, PURSUANT TO CITY COUNCIL RESOLUTION NO. 2010-79. Councilman Kroonen stated in having a chance to interview and read the background on each of the applicants, he was particularly proud to see that three or four of the folks on the group were graduates of Palm Desert High School and local residents who served the community well. Councilmember Finerty agreed, stating the Council was able to choose from some of the finest, that not only had name recognition, but had done things locally as well as nationwide, and for that reason the City was very fortunate. Councilman Kroonen moved to, by Minute Motion, appoint Bruce S. Kassler, Luke W. Taylor, John Greenwood, Ellis Langford, Joseph Norbeck, Ralph A. Raya, Robert J. Leo, Eric Freed, and David C. Koller to the inaugural Palm Desert Citizen's Sustainability Committee, with staggered terms of two, three, and four years to be determined at the Committee's organizational meeting. Motion was seconded by Benson and carried by a 5-0 vote. Responding to question, Ms. Klassen stated the terms will be determined at the organizational meetings where they will draw straws, which is how it's been typically handled in the past. X. CONSENT CALENDAR A. MINUTES of the Regular City Council Meeting of March 24, 2011. Rec: Approve as presented. B. CLAIMS AND DEMANDS AGAINST THE CITY TREASURY - Warrant Nos. 201, 202, 205, and 206. Rec: Approve as presented. 3 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 14, 2011 C. CITY COMMITTEE AND COMMISSION MEETING MINUTES. 1. Cultural Resources Preservation Committee Meeting of February 22, 2011. 2. Public Safety Commission Meetings of January 12, and February 9, 2011. Rec: Receive and file. D. LETTER OF RESIGNATION from Everett Wood — Audit, Investment & Finance Committee. Rec: Receive with very sincere regret. E. AUDITED Financial Reports for the City of Palm Desert— Fiscal Year Ended June 30, 2010. Rec: Receive and file. F. AUDITED Financial Reports for Palm Desert Recreational Facilities Corporation — Fiscal Year Ended June 30, 2010. Rec: Receive and file. G. AUDITED Financial Reports for the Palm Desert Redevelopment Agency — Fiscal Year Ended June 30, 2010. Rec: Receive and file. H. RESOLUTION NO. 2011 - 26 - A Resolution of the City Council of the City of Palm Desert, California, Setting Forth its Findings and Authorizing the Destruction of Paper Records from the Office of the City Clerk that Have Been Digitally Imaged (April 4, 2011, List). Rec: Waive further reading and adopt. REQUEST FOR RENEWAL of the Trust Agreement Between Wells Fargo Corporate Trust Services and the City of Palm Desert for Another Five (5) Years (Contract No. C24551) (Joint Consideration with the Palm Desert Redevelopment Agency and the Palm Desert Financing Authority). Rec: By Minute Motion, approve renewal of the Trust Agreement between Wells Fargo Corporate Trust Services and the City of Palm Desert for another five (5) years. 0 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 14, 2011 J. REQUEST FOR AWARD OF CONTRACT for the Citywide Lighting Inventory Project to RBF Consulting, Inc., in the Amount of $16,403.12 (Contract No. C30410). Rec: By Minute Motion: 1) Award subject contract for the Citywide Lighting Inventory Project to RBF Consulting, Inc., Palm Desert, California, in the amount of $16,403.12; 2) authorize the Director of Finance to set aside an additional 10% contingency for the project in the amount of $1,640.31; 3) authorize the Mayor to execute said contract — funds are available in General Fund Account No. 110-4611-453-3092 - Public Works Park Maintenance - Professional Services and in Account No. 110-4300-413-3010 - Public Works Administration - Professional Services. K. REQUEST FOR ACCEPTANCE OF WORK for Contract No. C30080 — 2011 Citywide Slurry Seal Project (Project No. 751-11) (American Asphalt South, Inc., Fontana, CA). Rec: By Minute Motion, accept the work as complete and authorize the City Clerk to file a Notice of Completion for the subject project. L. REQUEST FOR ACCEPTANCE OF WORK for Contract No. C30220 — Washington Charter School Playground Improvements (Project No. 729-11) (Robertson Industries, Phoenix, AZ). Rec: By Minute Motion, accept the work as complete and authorize the City Clerk to file a Notice of Completion for the subject project. M. REQUEST FOR APPROVAL to Pay Desert Recreation District for the City's Sponsorship of the 2011 International Sports Festival. Rec: By Minute Motion, approve payment in the amount of $26,000 to Desert Recreation District for the 2011 International Sports Festival from Account No. 110-4416-414-3062. Upon a motion by Kroonen, second by Finerty, and 5-0 vote of the City Council, the Consent Calendar was approved as presented. XI. CONSENT ITEMS HELD OVER None 9 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 14, 2011 XII. RESOLUTIONS A. RESOLUTION NO. 2011 - 27 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, AUTHORIZING SIGNING AUTHORITY FOR CITY EMPLOYEES ON THE YMCA / CITY OF PALM DESERT AQUATIC CENTER BANK ACCOUNT. Councilmember Finerty moved to waive further reading and adopt Resolution No. 2011-27. Motion was seconded by Kroonen and carried by a 5-0 vote. XIII. ORDINANCES For Introduction: None For Adoption: A. ORDINANCE NO. 1222 - AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, AMENDING SECTION 8.81.010 - HEALTH AND SAFETY- PALM DESERT MUNICIPAL CODE, RELATIVE TO ADMINISTRATIVE CITATIONS - VIOLATIONS OF THE ZONING ORDINANCE AND BUILDING CODE. Councilmember Harnik moved to waive further reading and adopt Ordinance No. 1222. Motion was seconded by Finerty and carried by a 5-0 vote. B. ORDINANCE NO. 1223 - AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, APPROVING A ZONING ORDINANCE AMENDMENT REQUIRING A CONDITIONAL USE PERMIT FOR SHORT-TERM VACATION RENTALS IN NON -GATED RESIDENTIAL NEIGHBORHOODS OR COMMUNITIES Case No. ZOA 10-68 (City of Palm Desert, Applicant). Councilmember Harnik moved to waive further reading and adopt Ordinance No. 1223. Motion was seconded by Benson and carried by a 4-1 vote, with Finerty voting NO. [01 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 14, 2011 XIV. NEW BUSINESS A. CONSIDERATION OF THE MANNER IN WHICH TO HEARAN APPEAL TO THE DENIAL OF A MASSAGE THERAPIST PERMIT (Law Office of Byron G. Cornelius On Behalf of Yanli Li, Appellant). Mr. Erwin stated it was his recommendation to refer the Appeal to a Hearing Officer. However, the Council had two alternatives to choose from. Councilmember Harnik moved to, by Minute Motion, refer the Appeal to a Hearing Officer for recommendation to the City Council for its action at a future City Council Meeting. Motion was seconded by Kroonen and carried by a 5-0 vote. B. REQUEST FOR ADOPTION OF RESOLUTIONS, AUTHORIZING THE INVESTMENT OF SURPLUS MONIES IN A RABOBANK MONEY MARKET ACCOUNT (JOINT CONSIDERATION WITH THE PALM DESERT REDEVELOPMENT AGENCY). Councilmember/Member Finerty moved to waive further reading and adopt: 1) City Council Resolution No. 2011 - 28 , authorizing the investment of monies in a Rabobank Money Market Account; 2) Redevelopment Agency Resolution No. 584, authorizing the investment of monies in a Rabobank Money Market Account. Motion was seconded by Harnik and carried by a 5-0 vote. C. CONSIDERATION OF A CITY OF PALM DESERT STREET -NAMING POLICY. Mayor Pro Tern Spiegel stated the staff report basically said the City Council will decide if there will be a street -naming policy. Therefore, there was no new policy. Councilmember Harnik said she liked it and would move to approve for the policy to be that the City Council make the decision on Palm Desert street naming. Motion died for a lack of a second. Councilmember Finerty stated she was unclear, because she thought Council's direction was that a criteria would be established for when a street is named after a Councilmember and that was as a result of Avenue 35th being named after the late Councilman Richard S. Kelly. Mayor Pro Tem Spiegel asked if Councilmember Finerty was referring to a certain standard or how many years a Councilmember served on the Council. Councilmember Finerty responded it would be whatever criteria's staff came up with. She said staff attached a sample of the City of Sacramento's 7 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 14, 2011 resolution as far as what is needed. However, she wished to go on record as saying that the City Council was only five of a population of 50,000 with many worthwhile individuals that accomplished far more than what the Council has done, and she didn't think the Council should look at naming streets for Councilmembers only. She originally thought a criteria would be developed for anyone that was deserving of a street named after them and what was presented today changed nothing. Mr. Wohlmuth said he would be happy to return to the City Council with a criteria. He asked if the Council had any guidelines or criteria it wished to consider. Councilmember Finerty stated the person would have to be service/community oriented and take into consideration the difference and impact the individual made. For example, Harold Matzner didn't have a street named after him, yet he did a lot, not only for the City of Palm Desert, McCallum Theatre, Museum, and throughout the Valley. She didn't want the criteria to be too narrow and would rather be looking at people who have made a considerable difference in Palm Desert and not only focus on Councilmembers. Councilmember Harnik said the policy as presented indicated it could be a Councilmember or prominent community member, which she thought would cover those individuals mentioned by Councilmember Finerty. Councilmember Finerty agreed, except the decision would still come back to the City Council with no criteria to support its decision norwhat the prominent person needed to have accomplished. Mayor Pro Tern Spiegel suggested a subcommittee that included Councilmembers Finerty and Harnik to work with the City Manager to come up with the criteria. Mayor Benson stated the criteria should include who can make a nomination. Councilmember Harnik asked that staff provide the Committee with additional samples from other cities. Councilmember Finerty moved to, by Minute Motion, continue to a date uncertain, with a subcommittee of Councilmembers Finerty and Harnik to work with staff on development of such a policy to be brought back to City Council for consideration. Motion was seconded by Kroonen and carried by a 5-0 vote. PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 14, 2011 D. REQUEST FOR AUTHORIZATION FOR STAFF TO NEGOTIATE A CONTRACT WITH ECOMOTION TO INITIATE A PACE (PROPERTY ASSESSED CLEAN ENERGY) STRATEGY AND NATIONAL LOBBYING EFFORT (CONTRACT NO. C30730). Redevelopment Manager Martin Alvarez stated the City Council requested staff return with a report on the AB 811 /PACE Conference, but before addressing it, he provided a brief history on AB 811, where it's been, and where it was headed. In 2008, the California Legislation adopted AB 811, which was a monumental effort in reducing energy consumption across the state, and the City of Palm Desert was the first in the nation to implement an Energy Independence Program (IEP). To date, there have been more than 250 participants and have funded more than $5 million in energy efficiency upgrades and in renewal energy projects. Many cities and counties within California have also implemented AB 811 programs, and 25 states have now implemented similar AB 811 legislation, which is now referred to as PACE (Property Assessed Clean Energy Financing). In July 2010, the Federal Housing Finance Agency (FHFA) issued some statements that significantly impacted PACE and AB 811 programs. They challenged the seniority of the lien position on the mortgages that were in place on residential properties and hindered the implementation of programs going forward. While the City chose not to prohibit the EIP program from going forward, other states and cities put their program on hold. In the fall of 2010, the City Council approved staff to proceed with a second AB 811 /PACE Conference, which was held on March 3-4, 2011; the aim and goal were to try to affect some legislative solutions to the FHFA roadblocks. The Conference was a great success with 120 participants from public and private sectors. Discussions included FHFA statements and implications to PACE programs, development of strategies on how to resolve FHFA roadblocks, and as a result of the Conference, there was a unified effort and a Palm Desert Accord was adopted. The Palm Desert Accord was a call to action by all the entities involved in PACE and energy independent programs. The consensus was to lobby on a national level to bring forward change on the legislative front, executive branches of government and also on the judicial side. From the efforts and strategies developed from the AB 811 Conference, a proposal is before the City Council to form an entity that would be the leader and hub to promote PACE and lobby for the removal of the FHFA roadblocks. If Palm Desert chooses to participate in the formation of this entity, which would be nonprofit, it will be formed and monitored by the participants in this organization. The effort would be to initiate an "Energy Independence America" lobbying effort to remove the mentioned roadblocks. The proposal before the City Council is a request for $25,000 to form this entity; originally the request was for $50,000. He noted Legal Counsel Richards, Watson & Gershon will provide pro bono work to assist with the formation of this entity. Staff recommended participation at $25,000 to move forward with the formation of this lobbying entity. He offered to answer any questions. 9 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 14, 2011 Councilmember Finerty asked what was the reasoning for reducing the amount to $25,000 from the requested $50,000, knowing that Palm Desert is, has been, and wished to continue to be the leader. Mr. Alvarez responded it was an effort to get momentum going. He said a future request could be made to the City Council once the entity is formed, but agreed an additional $25,000 could be considered at this time to promote and show other entities that Palm Desert was a leader and was moving forward. Councilmember Finerty stated she didn't think $25,000 was enough of a statement from the city that has lead this effort. She said PACE is set up in 25 states with 12 more pending, and if Palm Desert didn't continue to lead along with key players by showing they are putting money where their mouth is, it will lose contributors such as utility and key people that were at the Conference that showed interest in getting on board. She said this was a fight worth fighting, because it will change the lives of Americans throughout the Country who struggle with too much heat or too much cold. As the leader in the energy arena, and with what's going on in the middle east, another solution for dependence on foreign oil had to be found. She said PACE or AB 811 clearly opens the door to giving people the energy independence they deserve. She said the staff report was well written and points were well covered, but she was disappointed with the funding amount. Mayor Benson agreed with Councilmember Finerty, stating $64,000 was approved for the Conference and it only cost $20,000. She said if Council didn't approve the $50,000 amount, perhaps it will approve the remaining $43,000 from the Conference to go toward this contract, which would be closer to the mark. She said there would be a salary savings cost by not hiring someone full time, especially during the City's hiring freeze. She didn't want Palm Desert to lose its number one place and agreed that if Palm Desert will go forward with this, it needed to continue to be the leader. She believed the additional funding of $25,000 could be found, and it may only be $10,000 that was needed if it applied the difference between the amount allocated for the Conference versus what was actually used. Councilmember Harnik asked if this funding request was to lobby and further the efforts of the lawsuit already in place. Mr. Alvarez answered yes. Councilmember Finerty disagreed, stating it was to further the efforts in a tripod fashion. She said it was well and fine to have a judicial approach, but the judge has stated it may go to trial in June 2012; pushing the case further back. What seemed to be strategically the best, because there was an election in 2012, is to go out and talk to the people that are in a position to make a difference. Those people are in critical states electorally and already 10 PRELIMINARY MINUTES ®RAFT REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 14, 2011 have PACE programs or want to start one, but the FHFA threw a whammy in it. She said Joe Biden agreed PACE was great, but then you have the Department of Energy afraid to speak out and the Obama Administration not wanting to cross Al Pollard because of bad loans. She said the actual default was actually less than 1 percent on AB 811 loans, which was far less than any other group of loans. The real meat and potatoes are to fight it in the legislative and executive branch, because of political pressure next year. Councilman Kroonen stated the item before the City Council was a recommendation for $25,000, which he would be happy to move to approve to get the discussion going, and if someone came along to amend the motion that might be appropriate. Councilman Kroonen moved to, by Minute Motion: 1) Authorize staff to negotiate and sign a contract with EcoMotion to initiate a PACE Solutions strategy and lobbying effort in an amount not to exceed $25,000; 2) appropriate $25,000 from the General Fund Unobligated Reserve to support EcoMotion's creation of an appropriate entity to lobby the Executive and Legislative Branches of the Federal Government to find a resolution to the Federal Housing Finance Agency (FHFA) position on AB 811/PACE loans for energy improvements. Motion was seconded by Finerty. Councilmember Finerty requested an amendment to the motion, to increase the funding with the difference of what was previously authorized for the AB 811/PACE Conference versus what was actually spent, which was $43,560. Motion to amend died for lack of a second. Mayor Pro Tern Spiegel said he thought a total of $50,000 had already been spent. Mr. Alvarez responded a total of $20,000 of RDA funds was spent on the Conference. Responding to question, Mr. Wohlmuth said he would be traveling to Oakland for the City's lawsuit against the FHFA, where he will more likely find out the case will not be heard until June 2012 or later, because that's the information he had received from the attorneys. Councilmember Finerty stated the court appointed mediation was just a hoop the City was being asked to jump through because it filed a lawsuit, but she didn't believe a meaningful resolution would result from it. Mayor Pro Tern Spiegel stated he felt the City kept throwing money at this and nothing was going to happen. Councilmember Finerty disagreed, because the work plan went into great details that included State Coordinators, outreach programs, educational efforts, meetings with legislators from Congress in key electoral states, which 11 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 14, 2011 is where the fight needed to be fought. Further responding, she said the City filed a lawsuit and obviously it needed to be defended, but she didn't believe meaningful resolution would come from the judicial mediation, because it's already being delayed. She knew what political pressure can do in an election year and there are key states that have adopted this program and are ready to go, like Colorado, Florida, Georgia, Illinois, and Louisiana. She said Florida and other key electoral states is where the emphasis needs to be. She said a meaningful resolution would be to lessen its dependence on foreign oil, which everyone says they want, but no one wants to do the logical thing to effect the change. She said AB 811 was and is the vehicle to affect change, and Palm Desert started it and it should also be the leader to bring it to a full conclusion. Mr. Wohlmuth stated the thought behind staff's recommendation was to approve $25,000 to get this started and then maybe another $25,000 once there is an established entity that can carry the mission forward. He said Richards, Watson & Gershon will be working pro bono in setting up a structure for a 501 C4 lobbying type of nonprofit organization. The real work is to set up the organization with the stakeholders, who perhaps will ultimately be the board of directors, and getting their IRS status. Once this is established, this organization will ask for further funds from Palm Desert. Mayor Pro Tern Spiegel stated his concern was that there would be no bottom at the end of the barrel. Councilmember Finerty stated that in order to have a meaningful start up with identified key players who are willing to contribute money, i.e., Sonoma County, Palm Desert needed to maintain its position as the leader. She would hate for another city and/or county to take overthe leadership position after all the hard work put in by Carlos Ortega and Jim Ferguson to get AB 811 passed on an urgency measure, which was a near impossibility, and to lose its key position would be a sad day in Palm Desert. She reiterated the difference in the amount requested was $18,560. Mayor Pro Tern Spiegel agreed to only approve $25,000 at this time. Councilmember Finerty said that since Council had already approved $63,175 for the Conference and knew it would be getting money back, it was not like she was requesting anything more. Councilmember Harnik stated everyone understood the importance of renewable energy, but disagreed that Palm Desert must have the lead position in this as long as the job gets done and not worry about who gets the credit. She agreed the City should pursue this and get it done whether it was through the lawsuit or lobbying efforts, but the emphasis should be on cutting back on energy consumption. PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 14, 2011 Councilmember Finerty responded it was not about getting credit, but about getting the job done, which required Palm Desert in the leadership role. She said every city and county across the nation had the ability to come up with something like AB 811, get it passed on an urgency measure, get the governor to sign it within a six -months period, but no one else did except Palm Desert, which is the position she didn't want to lose. She said Palm Desert had the wear with all to get the job done, and it was not about taking credit, but affecting change, not only for Palm Desert, but across the nation. Councilmember Harnik said she understood everything that got accomplished with the governor's signature as stated, but the Council was now considering PACE, which she agreed the City should go forward with, but she too, couldn't support more than $25,000. Mayor Benson asked the City Manager if he had spoken with EcoMotion that if they received the $25,000 now to get the organization formed, another $25,000 would come later. Mr. Wohlmuth answered yes, stating he informed them about his recommendation to the City Council; however, he suspected it will cost a lot more than $25,000 to set up this organization with board of directors, etc. He didn't know where the other funds will be coming from as he tried to get a hold of Rod Dole from Sonoma County, but his staff indicated they had something similar to Palm Desert's charitable contributions or legislative committee that he'll be discussing with their county. At this time, he wasn't sure anyone else had funded. Councilmember Harnik asked if there was any possibility that Palm Desert will contribute $25,000 and not have anyone else jump in. Mr. Wohlmuth said he believed Sonoma County will participate, but he didn't know the amount. Councilmember Finerty stated perhaps Mr. Ted Flannigan from EcoMotion, who has been talking to people across the country, might want to respond to the question. MR. TED FLANNIGAN, EcoMotion, thanked the City Council for the opportunity to put on the PACE Solutions Conference and to continue with it. At the Conference it became clear that someone needed to galvanize all these states that had created this enabling legislation, and it was Palm Desert that put forth this Conference. In response to the question, it was decided the best thing to do was to form this organization with the leading local governments being Palm Desert and Sonoma County before it went out to other counties and cities and prior to reaching out to the market players and contractors. It is believed that one of the issues in Washington is that the industry lead by renewable funding has given PACE a little bit of a bad 13 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 14, 2011 name, and it now needed local government to have a real stake in the game and be the ones leading the charge. At the present time, there was no definitive commitment for funding from anyone, because the work plan is to begin with Palm Desert with a verbal assurance from Rod Dole that Sonoma County will get on board. Then Placer County, Los Angeles County, and counties will be pursued followed by the utilities and the broader industry. The goal is to get the job done and reverse the FHFA position, and they are prepared to raise between $1- and $2 million in order to do that. The first phase of the work plan is a six -months effort at a rate of $40,000 to launch the strategy to be in touch with all the other 24 states, and the District of Columbia, and concurrently, putting together the legal structure to establish the organization. He disagreed with the statement that the only thing EcoMotion would be doing with the $25,000 was establishing the legal structure. In fact, what he hoped to do was start the following morning on the overall strategy and overall campaign, because the judicial track was at least 1 '/2 years out. He said the best chance is to link in with the presidential primaries and presidential election. As the organizer, he asked for the full $50,000, because two things need to be accomplished, which was to establish a legal organization, but more importantly he had to keep this campaign going to keep the momentum. He noted he was thrilled that Richards, Watson & Gershon was willing to work pro bono. Further responding, he said Edison gave every indication they will be on board, because he met with Edison folks in San Francisco the previous week and they offered up their lobbyist. He said President of the Public Utilities Commission Mike Peevey was aware of the PACE Solution efforts, and he supports it. He believed Mr. Peevey will reach out to all the utilities and get their support. He said strategically what distinguished this effort from others is that it's lead by local government, which makes it government to government as opposed to industry to government. Councilman Kroonen stated he will continue with his motion for approval of $25,000, recognizing this was not the last time the Council will hear a request for funding. He was hesitant to vary when there was a printed agenda, which had been duly and appropriately circulated in conformance with the Brown Act and other public disclosure requirements. He said the Council had varied about 200% from the item as printed on the public agenda. Councilman Kroonen restated his previous motion for approval Mayor Pro Tern Spiegel said there was no reason why Mr. Flannigan couldn't come back to the City Council to share what was accomplished. Councilman Kroonen stated if Mr. Flannigan found that $25,000 from the City of Palm Desert was the difference for success, there would be willing ears on the Council. He was proud of the tradition, groundwork, and pioneering work that had been done on this front, but for the reasons he stated, he was not comfortable approving more than $25,000 at this time. 14 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 14, 2011 Councilmember Finerty stated her revised amendment would be that the City Council understood full well that EcoMotion may need to return for additional funding, because this was an enormous task that will make a huge difference in the lives of people across the nation. She said the Council will recognize that by approving $25,000, there is a likelihood that EcoMotion will return for more funding and it will be viewed favorably. Mayor Pro Tern Spiegel asked for confirmation that EcoMotion will report on what they've accomplished for the $25,000. Councilmember Finerty agreed, stating she was such an advocate for measuring results. Mayor Benson seconded the motion. Mayor Pro Tern Spiegel called for the vote to approve staff recommendation, with the full understanding that with approval of the $25,000 it is very likely EcoMotion will need to return to the City Council for additional funding to support this effort, and such a request would be viewed favorably, and the motion carried on a 5-0 vote. E. REQUEST FOR AWARD OF CONTRACT TO OFF MADISON AVE. FOR ONLINE MARKETING SERVICES FOR THE REMAINDER OF FISCAL YEAR 2010-2011 AND FOR FISCAL YEAR 2011-2012 (CONTRACT NO. C30740). Mayor Benson asked what was the amount of the contract. Visitor Center Manager Donna Gomez responded there was not an exact amount, but the retainer was $75,000 a year. Further responding, she said for the remainder of the year it would be $6,250 a month. She said this contract went before the Marketing Committee and was approved unanimously. There was a total of seven proposals and staff narrowed it down and took the top two to the Marketing Committee where the agencies made their presentation. She said the unanimous recommendation was to stay with Off Madison Ave. Councilmember Finerty noticed the staff report did not include the name of the companies and the bid amounts. The only information provided was on Off Madison Ave., which the City has worked with for years. She appreciated the fact that there was some measuring going on as indicated toward the back of the staff report, but questioned who else bid and what the amounts of the proposals were. Ms. Gomez responded the decision was not made solely on price and several considerations came into play, as far creative and tracking ability. She said the other top agencies were comparable in pricing, and SAESHE, the second runner up in the process was approximately $5,000 per month as a retainer. Further responding, she said SAESHE's bid was less than Off Madison Ave. 15 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 14, 2011 Councilmember Finerty asked if staff checked with other cities or groups SAESHE had worked with to see if they were happy with them. Ms. Gomez answered no, stating if SAESHE had been selected staff would have followed up. Councilmember Finerty stated she knew it was a tough time to market anything given the economy and wasn't saying that Off Madison had done a good or bad job, because she didn't have anything to compare it with. She said supposedly the Transient Occupancy Tax (T.O.T) numbers were up, but she didn't know if that was as a result of Off Madison or not, but it just seemed the City kept the same people over and over again. Ms. Gomez said one of the considerations looked at during this process was the fact that staff didn't want to go out to bid for specifically revamping the current website, because it has been very successful. The cost to revamp the website could cost anywhere from $30- to $50,000 and she felt strongly that in order to continue to provide consistency, it would stay with the same agency. In fact, one of the proposers backed out of the process, because they were concerned that if the two were split, consistency would be lost with the program. Councilmember Finerty appreciated the explanation and the concern with keeping consistency. She asked if this contract was for one year. Ms. Gomez said it was for 14 months in order to complete this fiscal year and through next. Further responding, she said it would be nice at some point to look at a complete revitalization of the website, but the existing one has been successful. Councilman Kroonen moved to, by Minute Motion: 1) Concur with the Marketing Committee's recommendation and award the subject contract to Off Madison Ave. (OMA), Phoenix, Arizona, for Online Marketing Services; 2) authorize the Mayor to execute the agreement on behalf of the City — funds are available in Account No. 110-4417-414-3090 - Professional Other (Retainer), in Account No. 110-4417-414-3219 (Ad Production), and in Account No. 110-4417-414-3221 (Media Buys). Motion was seconded by Finerty and carried by a 5-0 vote. is PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 14, 2011 F. REQUEST FOR AUTHORIZATION TO ACQUIRE PROPERTY LOCATED IN FALCON CREST AND KNOWN AS 42-253 VERDIN LANE (APN 624-431-016), PALM DESERT, IF NECESSARY, IN ANTICIPATION OF EXPIRATION OF THE FIRST RIGHT -OF -REFUSAL PERIOD (JOINT CONSIDERATION WITH THE PALM DESERT REDEVELOPMENT AGENCY). Councilmember/Member Finerty moved to, by Minute Motion: 1) Authorize acquisition of the subject property for the purpose of retaining affordability covenants and resale, if necessary, in anticipation of expiration of the 45-day First Right -of -Refusal Period, in an amount pursuant to the Affordable Agreement (approximately $240,462 [to be increased by reasonable closing costs and commissions]); 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 Kroonen and carried by a 5-0 vote. G. INFORMATIONAL REPORT REGARDING A TEMPORARY PROGRAM TO ALLOW OFF -SITE DIRECTIONAL SIGNAGE FOR OPEN HOUSES UNDER SPECIFIC CONDITIONS. Ms. Aylaian stated this was a program that will be tried out temporarily for three months. This came about in response to a number of complaints from brokers in the real estate community who were concerned when the City started enforcing the Sign Ordinance on the weekend. In particular, they were concerned about open houses. What the City proposed was a temporary program which allows placement of open house signage in tightly controlled conditions. She distributed a copy of the flyer that was reviewed with the California Desert Association of Realtors, and they are engaged in this by committing to educate their brokers about the program and help enforce it by getting the word out. If the program is successful at the end of three months, they might come back and ask the City for permission to make this a permanent program by changing the Ordinance, which will have to go to the Planning Commission and City Council for review and approval. Responding to question, she confirmed open house signs are prohibited on Highway 74 and Highway 111, because those are the areas where staff received the most complaints. She said if someone was interested in open houses in south Palm Desert, they can obviously drive through the neighborhood where signs will be allowed on different streets, but not on Highway 74, because it had a scenic preservation overlay, which was important to preserve. 17 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 14, 2011 Mayor Pro Tern Spiegel said he had seen For Sale signs for condominiums on Highway 74. Ms. Aylaian responded if the sign is on private property at the condominium, it was allowed. She said this temporary program would only be for signs in the public right-of-way. She said depending on the development, there may be some that actually front on Highway 74 and has the signage there. Further responding, she said signage is only permitted when there is a broker actually on the premises conducting an open house and starting anywhere from about 11:00 a.m. to 3:00 p.m.; open houses are usually no more than two hours at any given location. The last thing a broker did before going to the Open House would be to put up a sign and take it back down when they leave. Councilmember Finerty said after having spent 16 years in a homeowners association where they basically adopted similar language and signage, it wasn't necessarily so. She said brokers are good at getting signs out, but when it came time to picking them up, it didn't necessarily happen. She asked if the hours mentioned were for the weekend only. Ms. Aylaian answered no, stating it would be whatever hours they have an open house that's being conducted. She said the City now had Code Compliance working on the weekends to remove signs if there is a complaint or any indication a sign was left. Responding to questions about inappropriate signage, she said signs with balloons or placement of the sign in an unacceptable location will be removed. She didn't believe Code Compliance could close down an open house that is being conducted on private property; the only jurisdiction would be overthe placement of the sign in a public right-of-way where it is prohibited by the Municipal Code. Code would then take down the sign and look for the agent to return the sign and explain the terms. Councilman Kroonen stated this was a good approach to resolving what has been a significant problem in the community. He liked the idea of the trial and has observed in his own wonderings around town over the past couple of weeks that it had a positive effect. He didn't know what all the details are, but this was a good way to find out. He was also glad it was a cooperative effort with people who are in the business of selling properties. Councilmember Finerty commented she was glad Code worked on weekends. Councilmember Harnik stated she liked the three -months trial and hoped it worked. She said Realtors are trying to do the same thing the City was trying to accomplish, which was not to have empty houses; perhaps they want it for another reason, but that's okay. im PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 14, 2011 Councilman Kroonen moved to, by Minute Motion receive and file the informational report regarding the temporary program to allow off -site directional signage for Open Houses under specific conditions. Motion was seconded by Finerty and carried by a 5-0 vote. XV. CONTINUED BUSINESS None XVI. OLD BUSINESS A. REQUEST FOR AWARD OF CONTRACT TO DIGITAL NETWORKS GROUP, INC., IN THE AMOUNT OF $122,274.96 FOR THE PALM DESERT COUNCIL CHAMBERAUDIO VISUAL SYSTEM UPGRADE PROJECT (CONTRACT NO. C29920). Information Systems Manager Clayton Von Helf noted the staff report and stated the bidders were graded based on a scoring matrix and the top candidate was Digital Networks Inc. The contract will include microphones, loud speakers, new projector display, and new display monitors for Councilmembers and staff. Responding to question, he said to minimize impact the plan is to install them in July and completed by the end of August. Councilman Kroonen moved to, by Minute Motion: 1) Award the subject contract to Digital Networks Group, Inc., Aliso Viejo, California, in the amount of $122,274.96; 2) authorize the Mayor to execute said contract; 3) provide direction regarding timing of said construction — funds are available in Account No. 400-4563-433-4001, with project to take place during the City Council summer recess — immediately following the first regular meeting in July and finishing in time for the second regular meeting in August 2011. Motion was seconded by Finerty. Councilmember Harnik asked if this contract would include the implementation of the web streaming. Mr. Von Helf answered no, stating if the contract is approved, staff will approach the winning contractor and ask for a change order for the added scope of work and return to Council for approval. If the amount is out of line, then it will be opened up for bids, but hopefully the work will be done at the same time. Mayor Pro Tern Spiegel called for the vote and the motion carried on a 5-0 vote. 19 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 14, 2011 B. REQUEST FOR APPROVAL OF THE REIMBURSEMENT OF ART IN PUBLIC PLACES FEE IN THE AMOUNT OF $91,038.50 FOR "FORM IN FLUX - CANTAMAR" BY WOODS DAVY FOR THE SEGOVIA AT PALM DESERT PROJECT LOCATED AT 39-905 VIA SCENA (Oakmont Senior Living, Applicant). Councilmember Finerty moved to, by Minute Motion, approve reimbursement of the Art In Public Places Fee in the amount of $91,038.50 for "Form In Flux - Cantamar" by Woods Davy, the public art component for Segovia at Palm Desert located at 39-905 Via Scena — funds are available in Account No. 436-0000-228-9900. Motion was seconded by Kroonen and carried by a 5-0 vote. C. UPDATE ON IMPLEMENTATION OF NEW BURRTEC DEDICATED ROUTES AND SERVICE DAYS FOR ALL REGULAR SOLID WASTE AND RECYCLING COLLECTION (RESIDENTIAL AND COMMERCIAL). Responding to question, Ms. Riddle confirmed this item had nothing to do with the Tax Roll. She said this was an update of the route changes. She noted Burrtec provided a new map with the proposed routes as of this afternoon, and she distributed to the Council. She said most of the routes will remain the same with the exception of two areas that are outlined in purple and blue in the updated map. A notice will be sent out to the residents in late April prior to implementation between May 16 and May 20; the hours for trash pick up will remain the same. Councilman Kroonen moved to, by Minute Motion, receive and file the update on implementation of new Burrtec Dedicated Routes and service Days for all regular solid waste and recycling collection. Motion was seconded by Finerty and carried by a 5-0 vote. 20 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 14, 2011 XVII. PUBLIC HEARINGS A. REQUEST FOR APPROVAL OF AN AMENDMENT TO RESOLUTION NO. 91-5, REMOVING DEPARTMENT OF COMMUNITY DEVELOPMENT/PLANNING CONDITION REGARDING EXCLUSION OF A SUPERMARKET; ZONING ORDINANCE AMENDMENT TO CHAPTER 25.30 OF THE PALM DESERT MUNICIPAL CODE TO ALLOW SUPERMARKETS NOT EXCEEDING 60,000 GROSS SQUARE FEET AS CONDITIONAL USES IN THE REGIONAL COMMERCIAL PC (3) ZONE; EXTERIOR MODIFICATIONS AND A TOWER ELEMENT (AS PROVIDED FOR BY P.D.M.C. 25.56.300) TO INCREASE THE WEST TOWER ELEMENT FROM 34 FEET TO 40 FEET LOCATED AT 72-280 HIGHWAY 111; AND ADOPTION OF A MITIGATED NEGATIVE DECLARATION OF ENVIRONMENTAL IMPACT AS IT RELATES TO THE PROJECT, PURSUANT TO SECTION 15074 OF THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) Case Nos. ZOA/CUP 10-228 (KKE Architects, Applicant) (Continued from the meetings of February 24 and March 10, 2011). Ms. Aylaian reported the Applicant was out of the Country and unavailable today. Staff requested this item to be continued to the meeting of April 28, 2011. Councilmember Finerty stated that due to being out of town on energy business on that particular day, she respectfully requested it be continued to the first meeting in May. Ms. Aylaian responded staff didn't take any exception to the request and will check with the Applicant to make sure they are available on that date. Mayor Pro Tern Spiegel declared the public hearing open and invited public testimony FAVORING or OPPOSING this matter. There was no public testimony offered and the public hearing was left open. Councilmember Finerty moved to, by Minute Motion, continue this matter to the meeting of May 12, 2011. Motion was seconded by Kroonen and carried by a 5-0 vote. 21 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 14, 2011 B. CONSIDERATION OF AN APPEAL OF A PLANNING COMMISSION DECISION, DENYING A REQUEST FORA TENTATIVE TRACT MAP WITH ASSOCIATED CEQA (CALIFORNIA ENVIRONMENTAL QUALITY ACT) ADDENDUM TO THE SUBSEQUENT ENVIRONMENTAL IMPACT REPORT FOR STONE EAGLE; THIRD AMENDMENT TO DEVELOPMENT AGREEMENT 02-01 (STONE EAGLE DEVELOPMENT); AND ZONING ORDINANCE AMENDMENT TO REVISE THE HILLSIDE PLANNED RESIDENTIAL (HPR) ZONE RIDGELINE MAP, WHICH WOULD ALLOW THE SUBDIVISION OF 7.7 ACRES INTO SIX (6) RESIDENTIAL LOTS — SUBJECT PROPERTY IS LOCATED WEST OF THE PALM VALLEY STORM CHANNEL AT THE TERMINATION OF OLD STONE TRAIL (APN 652-090-002) Case Nos. TT 34943, DA 02-01 Amendment #3, and ZOA 09-494 (Eagle 6.5, LLC, c/o Ted Lennon, Applicant/Appellant). Assistant Planner Missy Grisa stated this was an appeal of a Planning Commission decision for Tentative Tract Map 34943, ZOA 09-494, and DA 02-01 Amendment No. 3. The property is located west of the Palm Valley Storm Channel at the southern termination of Old Stone Trail. It is 7.7 acres at the base of the mountain and one main ridge is running through this property along the back side. The General Plan Designation is Residential, Hillside Reserve; the zone is Hillside Planned Residential (HPR) and Hillside Planned Residential surrounding all sides except for the east, which is Planned Residential-8 where the Sommerset and Mountainback communities are located. The HPR Zone allows for a density of 1 dwelling unit/per 5 acres, a building pad of a maximum of 10,000 square feet, access road of 3,000 square feet, maximum dwelling size of 4,000 square feet, and RIDGELINE development is prohibited. Tentative Tract Map 34943 represents 7.7 acres. There are seven lots indicated on this tract; six are residential and one is access for a roadway. The amount of cut required for this site is 6,500 cubic yards and the fill is 10,000 cubic yards, which results in a total import of 3,500 cubic yards. She displayed the proposed pad sizes and stated the largest lot is 118,519 square feet with the smallest lot being 32,887 square feet. The pad areas are smaller with 8,217 as the smallest and 12,139 as the largest, and the access road is 15,181 square feet. This case started in 2007 when a HPR Ridgeline map was created. Staff looked at a topographic data that was not survey accurate. Individual rock outcroppings were identified and erroneously connected to create ridgelines where there were actually none. Staff made several visits to the site and verified where the actual ridges were, which were along the back of this property. Proposed pads are not on any actual ridges or outcroppings; all outcroppings are preserved. She displayed and pointed out the incorrect ridgelines identified in 2007 and the actual ridgelines that run through the proposed parcel. Using Google Earth she displayed the Stone Eagle Golf Course and development at the base of the mountain and the proposed pads. The 3-D views showed any potential views from the main thoroughfares through south Palm Desert, which included Haystack Road, 22 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 14, 2011 Bel Air Road, Homestead Road, Mesa View Drive, and Indian Hills Way. She said Indian Hills Way was directly across from the site and the 3-D views from all the streets mention showed the site was fully mitigated by landscaping. This project was before the City Council because it was denied by the Planning Commission on a 3-2 vote. Legal notices were mailed to residents in the 4,000 square -feet radiuses, which is required in the HPR area. No negative comments regarding the development were filed with staff. A few phone calls were received that actually endorsed the project. The proposed project can eventually be approved as a Tentative Tract Map with an Amendment to the Development Agreement (DA) including an Addendum to the SEIR. The existing DA allowed for 61 units of which 44 have actually been built, and 46 units exist there today. There is a remainder of units to use and they would like to use the proposed area into the DA. Whenever a DA is proposed, it should be mutually beneficial to the City as well as the Applicant, and staff recommended approval of this project subject to them releasing the units that are remaining on the existing DA, which will reduce the overall density of the project. Initially, the Applicant seemed willing to do that, but at this point in time, they would like to keep some units along the clubhouse, which staff directed they request that directly from the City Council, but staff's recommendation will remain the same. From a density perspective, the original Stone Eagle project encompasses 703 acres with the addition of the 7.7 acres. The density would go down 1 dwelling unit/per 13.6 acres, which was much better than 1 dwelling unit/per 5 acres. Staff recommended approval of Resolution 2011-29, granting the appeal, and approving the findings and TT 34943, subject to attached conditions; adopt the addendum to the Subsequent Environmental Impact Report forthe proposed tentative tract map and zoning ordinance amendment, pursuant to the California Environmental Quality Act (CEQA); waiver further reading and pass Ordinance No. 1208 to second reading, approving DA 02-01 Amendment No. 3; waive further reading and pass Ordinance No. 1209 to second reading, approving an amendment to the Hillside Planned Residential Zone approved Ridgeline Map. Councilmember Finerty asked who were the three Commissioners that voted in favor and the two against. Councilmember Harnik said she was at that meeting and Commissioners Schmidt, Lemont, and DeLuna voted NO. Mayor Pro Tem Spiegel declared the public hearing open and invited public testimony FAVORING or OPPOSING this matter. With no public testimony offered, he declared the public hearing closed. MR. TIM BARTLETT, Salt Cedar, Palm Desert, CA, stated whatever he had to say this evening was easily verifiable and would be happy to show proof. He said this same developer was the same one that proposed Stone Eagle and built it. That project bankrupt and the developer went back to the bank 23 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 14, 2011 and repurchased it. The housing development, from his understanding was also in bankruptcy, and now the Applicant was trying to attach 7.7. acres to a failed project. He said Palm Desert went out on a great limb on that development of which this could be a part of. He said the number of units game being played was not a legal precedence to expand, because the EIR clearly states that no additional property can be added. However, he was not here to debate legal terms. Some of the things the City of Palm Desert did for Stone Eagle were that it waived a $1 million grading fee, which the taxpayers paid for. The argument made was that it was for stormwater improvements, but it turned out to be for water features. Palm Desert also allowed the building of timeshares, which is not even allowed in that zone without a hotel or golf course. A Development Agreement (DA) was written that included a change of zone, which is not allowed in the City's Municipal Code and this Amendment to the DA is no doubt of question. He said maybe someone could explain to him why the Planning Director who is charged with upholding the City's law and codes recommended denial of their own Commission's decision. He said this property was a poster child for rock outcroppings and ridgelines. He said Ms. Grisa showed where the ridgelines and outcroppings are located, which are now not ridgelines and showed roads going right through outcroppings. He thought the new Ordinance passed a year ago was to preserve outcroppings and this Applicant was going to obliterate it. In fact, the EIR proved Stone Eagle originally had language in there that said outcroppings in residential areas should remain. In fact the County of Riverside had an excellent ariel photograph that showed that in 2004 not one pebble, rock, or grain of sand was left unturned, and to give them another seven acres when it's currently zoned 1 dwelling unit/per 5 acres or another seven units was mind boggling. He said it was a big mistake for Palm Desert to allow the Applicant to build more lots when the current vacant ones couldn't be sold. MR. KORY KRAMER, Representative to Stone Eagle, LLC stated he represented the successor -in -interest to the original developerto the existing Development Agreement Stone Eagle, LLC. He said they are the entity that bought the Club House from the bank. They support Stone Eagle Development, LLC, which is a different entity, and their desire for approval for Tentative Tract Map 34943. They urge the Council to approve such development, including the use of the seven dwelling units under the Development Agreement. However, Stone Eagle, LLC did not support such an application to the extent that it results in the reduction of residential dwellings under the Development Agreement from 61 units to 52 units as recommended by staff. He said Stone Eagle, LLC strongly requests the City permit the number of dwelling units to remain at 61 while understanding that seven of those dwelling units will be used for development of the real property, which is subject to the Tentative Tract map. He said that would leave eight dwelling units available for future development, which is the subject of the current Development Agreement and will be used by Stone Eagle, LLC for future clubhouse use. All of these developments, including 24 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 14, 2011 the Tentative Tract development will greatly benefit Stone Eagle Golf Club as a whole. Therefore, his support is nuance and hoped the Council understood that. He strongly believed that any Development Agreement Amendment had to be mutually agreed upon the City and the successor -in -interest, which he represented. MR. TED R. LENNON, Applicant, stated when Stone Eagle was originally put together when it was 703 acres, they also acquired almost 800 acres that was set aside as part of that, so he looked at it as a 1,500 acre project. He said the original intent was to build housing at the bottom of the hill, which was approved by Council with a Development Agreement. In the CC&R's that the City approved, they always had the ability to bring in some of the perimeter property into the Development Agreement. The land in question has been annexed into Stone Eagle with the access rights in place. When they first started on this project, the Club was still in his hands and the density was a different issue. The current Club, in this tough economy and golf business, the Stone Eagle project can use some help. A normal golf course project has about 200-250 home sites or more. It would be helpful for the Stone Eagle Golf Club to have its small subdivision, but also the ability to build some additional units at their clubhouse site, which is important to their project. So they aren't looking to go make new cuts in the mountain and create new lots, but build within a confined pad that already exists. He said staff presented this project well, the Council was familiar with his work where he tries to keep home sites hidden, colors coordinated to the mountainside for the project to disappear. When the original ridgeline program was done, this property was not included. However, somehow two days later it was incorporated and approved by the Council. He was pleased that staff was willing to look at it to show there really isn't a ridgeline problem. He was disappointed to have a 3-2 vote from the Planning Commission. He said there was a series of meetings and study sessions, and each time something was requested to where the grading and in fill was reduced by 50%, roads were reduced and rerouted, and lots were lowered, so he was shocked with the resulting votes. If this project is built out with the approved Development Agreement, it will be 61 homes plus the one on the seven -acre site; therefore, it would be roughly two properties. He was suggesting going back to 60 properties and the Club be allowed at some point in the future to incorporate a small housing development into their clubhouse site. He thanked the Council for its consideration. With no further testimony offered, Mayor Pro Tern Spiegel declared the public hearing closed. Councilmember Finerty stated the City always appreciated the thoughtfulness with which Mr. Lennon developed and the sensitivity he has to the environment. However, ever since she served on the Planning Commission and City Council, Stone Eagle has gone through one revision or attempted revisions to another. She said the Ordinance clearly states that 25 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 14, 2011 it's 1 dwelling unit/per 5 acres and now the Council was being asked to approve 7 dwelling units/per 6 acres. She didn't understand why the Ordinance couldn't just be followed, and as stated in the past, she couldn't understand why staff didn't set forth and base the staff report on the policy that the Council has established; the Council has provided clear direction and has been consistent with its direction. She said when staff went against Council's direction and its own Planning Commission, she found it reprehensible. She didn't see a need to change this project and was concerned that moving the seven dwelling units, strategically it will go higher, bigger, etc. When Stone Eagle was first pitched, it all made sense because it was in a bowl, but little by little the Council kept getting these request for change after change, and believed it was time to draw a line in the sand. She felt the same when the Council was approached two years ago with initially the same kind of a program. She said the Council needed to stand by the ordinances that are well thought out and are adopted. She said 1 dwelling unit/per 5 acres meant just that, and for that reason she would vote against. Councilmember Harnik stated she didn't have the benefit of the history on this project, and asked what were the dwelling units set forth when Stone Eagle went through the Development Agreement. Ms. Aylaian explained that a Development Agreement supercedes the zoning ordinances and densities. When you have a Development Agreement it stands in place of the zoning ordinance and it establishes for that development the particular densities, setbacks, and heights, which is consistent with the Municipal Code. The Municipal Code provides for a Development Agreement. Therefore, the question as to the density was a rather trick question, because the density as approved is 1 dwelling unit/per 11 acres overall. Staff's recommendation would reduce it to about 1 dwelling unit/per 13.6 acres. Further responding, she said the DA didn't establish the density, but it did establish the number of units. When one calculates the math, it works out to 1 dwelling unit /per 11 acres or 1 dwelling unit/per 13 acres, but the DA stands in place. In the Cahuilla Hills, the goal is understood to minimize development there. Therefore, it's probably more appropriate to set aside the discussion of density altogether and look at the number of units, which was why staff was in favor, because it would reduce by eight the number of units that will be built in the Cahuilla Hills. She agreed the density in some places is lower and/or higher, but overall the City would be reducing the amount of development in the hills. Councilman Kroonen stated as he understood the property being discussed was not covered by that developer's agreement. The property is in the City's area of control requiring it to abide by the Hillside Ordinance. 26 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 14, 2011 Ms. Aylaian agreed, stating the exchange would be to allow more units on the proposed seven acres, if the City ended up with only two units in the Cahuilla Hills. Councilman Kroonen said he was confused by a statement made by staff in the staff report that after many discussions, staff continued to recommend elimination of the remaining ten units in exchange for the proposed six lots. He interprets that to mean there was still no agreement from the proponents of the change. Ms. Aylaian agreed, stating staff differed with the Applicant in that respect, but continues to recommend in favor of the way the project was originally proposed and presented to the Planning Commission, which reduces the number of units that would be built. The Applicant is not satisfied and continues to request more units. Councilman Kroonen asked if that changed the nature of staff's recommendation. Ms. Aylaian answered yes, stating it was important that both parties get something out of the Development Agreement; otherwise, you don't use a Development Agreement as a vehicle to give a developer something unless the City received something in exchange. The reason staff recommended in favor was because it will reduce the number of dwelling units in the Cahuilla Hills. If that isn't the case, she didn't believe staff would recommend in favor. Councilmember Harnik stated the Council was a little confused about the letter received at the last minute; it threw the Council for a curve. Ms. Aylaian stated she will ask the Applicant to clarify its position. MR. LENNON stated the Club per the Development Agreement, which they are in control of, has the right to speak and decide whether they want to be supportive of what they were doing. He said the Club was saying they will approve the project and are willing to give up seven of the density units if they could retain eight units for the clubhouse site. They are not looking to go and develop into the mountainside, but they need to keep some density to help make the project work at Stone Eagle. His request adds 7.7 acres to the land, but it reduces the density by two units. Councilmember Harnik said she previously read it would be reduced by nine and now it was two. MR. LENNON responded they were suggesting a reduction of two from the original staff report and staff was requesting a reduction of ten. Therefore, he and staff are eight units apart in the recommendation. 27 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 14, 2011 Councilman Kroonen asked if that changed staffs recommendation, since the Applicant was declining to reduce the number of units. Ms. Aylaian stated if the Applicant was moving forward with just a reduction of two, staff would have to take a look at it and consider more restrictions. For instance, at this point the clubhouse has not been constructed and staff is trying to minimize disturbance in the hills. If those extra units proposed were in the same footprint or closely packed around the clubhouse, perhaps payment of a Public Facilities Impact Mitigation Fee was in order, because it would be increasing the number of people that will be drawing public services and using the road. In such cases, a fee helps to offset that cost. Staff's concern was twofold, first, it didn't want to disturb the Cahuilla Hills anymore and if the parcels are spread around the clubhouse, then staff would not recommend in favor. Councilman Kroonen stated he didn't want to get into a situation now in their discussions of negotiating a new deal. Mayor Pro Tern Spiegel said the Council had an alternative to continue this item to allow staff to review it again and return with their recommendation. Councilmember Finerty asked staff how many times had Stone Eagle been back since the original approval for a change. Ms. Aylaian responded this was the third modification to the Development Agreement; therefore, the answer was three times. Councilmember Finerty stated she was referring to all modifications since Stone Eagle was approved several years ago when the City was told that the majority of the homes would be in this bowl and no one would see anything from Highway 74, etc., yet for one reason or another they have needed to move things around and increase density in some areas and basically not play within the 1 dwelling unit/per 5 acres rule. Ms. Aylaian responded this was the first time they have returned to ask for more units. Prior to this request, they returned to address fractional ownership and another time to talk about height. She said this was the first time that she was aware of where the Applicant had returned to ask for additional units. Councilmember Finerty said her point being that whether it was fractional ownership, increase in height, or additional units, they have always returned asking for more. Ms. Aylaian answered yes, stating this was the third time. PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 14, 2011 MR. LENNON said one of the things not mentioned, which has been forgotten and it was a cost to them, is that they will provide a 10-foot wide bike path across the channel and negotiate the easements to help the City, which is included in the Conditions of Approval. Additionally, the Applicant was not requesting to increase anything. He said in a normal Development Agreement, which he did all over the Country, it was very common to revisit a development agreement over and over. He said they once came back to the Council to create a fractional program within a small part of the project and the other time, they found that architecturally they had some towers that were a couple of feet too tall. They conducted a whole line of site study and the Council approved that as well, which were the only times they came to the City. Mayor Benson stated she was concerned that adding the additional dwellings above what was approve will cause another Hagadone fiasco. She agreed the Council had already changed things, redirected things, and looked at heights and initially voted against this project, but she was tired of all changes. She said it seemed every time the Council thought a project was all done, developers come in with something else. She was against projects going up higher into the hills and didn't care for the difference between the ridgeline and outcroppings. To say that City staff is wrong is what happened with the Hagadone house. It was also said the Council was wrong and the developer changed the grading and Palm Desert ended up with the misery and living with it ever since. She said that's why the City had a ridgeline and type of Ordinance, because developers can't help but get their hands on those hillsides and do everything they can to ruin it. She said let well enough alone, let the project remain as originally approved, and go on from there. Councilmember Harnik stated she would like staff to look at this again since things have changed fundamentally from the initial recommendation. She would like to see something else in place. She recalls one time when this project was brought before the Commission, it was turned away with the decision to redefine rock outcroppings; therefore, the City had thrown developers curves as well. She was aware of the Hagadone syndrome, which seemed to affect everything going forward. Councilmember Harnik moved to continue this item for staff to review and return with something else in place. Motion died for lack of a second. Mayor Pro Tern Spiegel stated the City had good staff and Stone Eagle presented a side ball with the letter received at the 241h hour, and he didn't know whether staff had seen it. He said Stone Eagle was a good partner, and from his stand point, the site was not visible just like the Carver House wasn't, which was a good thing. However, he did object to houses up on the hill like the one just purchased by a member of the Planning Commission that was visible all over town. He was also opposed to tearing down a 29 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 14, 2011 hillside and outcroppings. He was in favor of continuing this item and allowing staff to revisit the matter. Councilmember Finerty moved to, by Minute Motion, uphold the Planning Commission decision to deny the subject Cases, and direct staff to prepare a Resolution of Denial to be presented at the regular meeting of May 12, 2011. Motion was seconded by Benson and carried by a 3-2 vote, with Harnik and Spiegel voting NO. C. REQUEST FOR APPROVAL OF THE FINAL RELOCATION PLAN AND RELATED CEQA (CALIFORNIA ENVIRONMENTAL QUALITY ACT) EXEMPTION FOR THE PROPOSED CONSTRUCTION OF PUBLIC PARKING AT THE ADOBE VILLAS APARTMENTS LOCATED AT 45-330 OCOTILLO DRIVE, PALM DESERT (JOINT CONSIDERATION WITH THE PALM DESERT REDEVELOPMENT AGENCY). Management Analyst Jessica Gonzales stated whenever the Agency contemplated a project which would result in the displacement of residents, the Agency must create a plan and assist the displaced residents in accordance with the California Relocation Assistance Plan and Real Property Acquisition Guidelines. The Agency is proposing to construct public parking at the Adobe Villas Apartments property. The Adobe Villas Relocation Plan has been prepared in accordance to the guidelines and has been available for pubic review. During the review period, no comments were received. Mayor Pro Tem/Vice Chairman Spiegel declared the public hearing open and invited public testimony FAVORING or OPPOSING this matter. With no public testimony offered, he declared the public hearing closed. Councilmember/Member Finerty moved to, by Minute Motion: 1) Approve the Final Relocation Plan for Adobe Villas Apartments in the City of Palm Desert; 2) authorize the Director of Finance to appropriate funds and draw monies necessary for the purpose of relocation assistance and benefits not to exceed $204,946 as outlined in the Final Relocation Plan from Account No. 850-4688-454-4001; 3) authorize the Executive Directorto execute any documents necessary to effectuate the actions taken by the Agency Board herewith; 4) approve and authorize filing of the Notice of California Environmental Quality Act (CEQA) Exemption for the demolition of the Adobe Villas Apartments and construction of public parking. Motion was seconded by Kroonen. Councilman/Member Kroonen stated his primary concern was that the subject location was at one of the most difficult intersections in town. He wondered if further "crappy" impact would result at the intersection of El Paseo and Ocotillo by having more parking there, because it was almost impossible to get through, particularly, if coming from the side street. Mr. McCarthy responded the impact had not been taken into consideration. He said the Agency acquired the property a number of years ago, because 30 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 14, 2011 it had conducted some parking studies due to impacts periodically. He said there was parking across the street and immediately adjacent to this site, and staff looked at this acquisition to be able to facilitate parking for El Paseo. Staff will work with the Public Works Department to see if possibly access to the parking can be designed to not impact the intersection. But to answer the question, he said staff had not looked at that aspect yet. Councilman/Member Kroonen said it was important to do so, because it was a complicated situation when trying to drive through there. Additionally, from all portions of the staff report, it sounded like people will be relocated right away. He asked if the current property will sit there vacant. Mr. McCarthy responded this item was the first step in a process. He said Council was not authorizing demolition by virtue of this action. However, a demolition action will be brought back for Council's consideration along with a construction plan to do the parking at that location. Further responding, he said when the property was acquired it was not re -tenant, and by virtue of attrition there was a great deal of vacancies at this time. In light of the economy and what's happening with the State, the City had contemplated using this location for parking; therefore, it would be appropriate to move forward. He anticipated staff will be following through with the design and demolition, so those contracts will be forthcoming to the Council in the next few months. Councilman/Member Kroonen said his concerns were satisfied. Mayor Pro Tem/Vice Chairman Spiegel called for the vote, and the motion carried by a 5-0 vote. XVIII. REPORTS AND REMARKS A. CITY MANAGER 1. City Manager Meeting Summaries for the Period of March 16 - April 5, 2011. Councilmember Finerty moved to, by Manager Meeting Summaries for the Period seconded by Harnik and carried by a 5-0 vote. B. CITY ATTORNEY None C. CITY CLERK None 31 Minute Motion, receive and file the City of March 16 - April 5, 2011. Motion was PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 14, 2011 D. PUBLIC SAFETY o Fire Department None o Police Department None E. MAYOR AND MEMBERS OF THE CITY COUNCIL o City Council Requests for Action: Mayor Pro Tern Spiegel said Mayor Benson needed an alternate to represent the City at the CVAG Homeless Task Force and the CVAG Community and Human Resources Committee. Councilmember Finerty moved to, by Minute Motion, add this item to the Agenda. Motion was seconded by Kroonen and carried by a 5-0 vote. 1. Consideration of the Appointment of a City Councilmember to Serve as Alternate to Both the CVAG Homeless Task Force and the CVAG Community and Human Resources Committee. Councilmember Finerty moved to, by Minute Motion, appoint Mayor Pro Tern Spiegel to serve as Alternate to Both the CVAG Homeless Task Force and the CVAG Community and Human Resources Committee. Motion was seconded by Kroonen and carried by a 5-0 vote. 2. Palm Desert Youth Committee — Councilman Kroonen reported that he and Councilmember Harnik had the pleasure of participating in the Youth Committee Meeting on Monday evening this week. He said it was a tremendous experience, and they learned that eight Members who are high school seniors would be leaving the Committee at the end of the school year. Confirming with the Committee Staff Liaison Frankie Riddle, he further reported the Committee Chair would make a presentation to City Council at its meeting of May 12. He wanted to be sure that those eight departing seniors could be recognized for their service at that same meeting. City Councilmembers concurred and staff so noted the request and agreed to provide same for May 12. 32 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 14, 2011 o City Council Consideration of Travel Requests and Reports: None o City Council Committee Reports: Riverside County Transportation Commission (RCTC) — Councilmember Harnik was pleased to report that at Wednesday's meeting, there was good news in the form of some grants available from the Specialized Transit Service that will be received by the Coachella Valley for CVAG, for SunLine Transit Agency, for SunLine Taxi vouchers, and for RCTC in general. o City Council Comments: None o Suggested Items for Future City Council Meeting Agendas 1. McCallum Theatre Parking Lot — Mayor Pro Tem Spiegel said he would ask Mr. Wohlmuth to have staff look at the parking lot at the McCallum. He felt it was one of the City's major assets, but the parking lot there was in pretty bad shape — it may need to be resurfaced or the like, and the trees in the lot also needed attention. He believed the McCallum would be willing to take the City's advice as to what should be replaced there. Mr. Wohlmuth agreed. 2. Traffic at Intersection of El Paseo/Ocotillo Drive — Councilmember Harnik said in follow-up to Councilman Kroonen's comments related to Public Hearing Item C earlier on this agenda, she, too, felt it was important for the City to take a look at the traffic situation from El Paseo to Ocotillo. She wasn't sure that the proposed additional parking was the biggest issue, but it may be the people who park at the corner to let their passengers out at the Daily Grill. She asked if it was possible to create another ingress/egress in the rear of the building. Mayor Benson recalled that the City Manager was going to review the situation when the valet parking permit was due for renewal. Mr. Wohlmuth agreed that was the case but pointed out that the traffic situation at El Paseo/Ocotillo was a separate issue. He said Traffic Engineering staff will look at traffic control and design of the parking lot to mitigate impacts on Ocotillo. 33 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 14, 2011 Councilmember Harnik noted her concern was right at the corner when either east- or westbound cars stop at the corner to let out their passengers. Mr. Wohlmuth affirmed that staff would take a look. He felt it was already a red -curb area, which meant no parking, loading, or unloading. Sgt. Reynolds said she'd notify Police Patrol and request the Motor Officers to check the area, now that she was aware there was a bottleneck being experienced. She pointed out that any long-term plan would likely take some time to develop and implement. Mayor Pro Tern Spiegel and Councilmember Harnik hoped that it wouldn't mean the issuance of a lot of citations to the older folks with mobility issues. Councilmember Harnik hoped there was opportunity to create a workable solution — like a rear entrance. Sgt. Reynolds agreed and said in the meantime they would create an awareness at the Police Department so that it could be monitored until the City comes up with a solution. XIX. ADJOURNMENT With City Council concurrence, Mayor Pro Tern Spiegel adjourned the meeting at 5:59 p.m. ATTEST: RACHELLE D. KLASSEN, CITY CLERK CITY OF PALM DESERT, CALIFORNIA JEAN M. BENSON, MAYOR 34