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PRELIMINARY MINUTES
REGULAR PALM DESERT CITY COUNCIL MEETING
THURSDAY, SEPTEMBER 8, 2011
CIVIC CENTER COUNCIL CHAMBER
73510 FRED WARING DRIVE, PALM DESERT, CA 92260
I. CALL TO ORDER - 3:00 P.M.
Mayor Benson convened the meeting at 3:00 p.m.
11. ROLL CALL
Present:
Councilmember Cindy Finerty
Councilmember Jan C. Harnik
Councilman William R. Kroonen
Mayor Pro Tern Robert A. Spiegel
Mayor Jean M. Benson
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 Manager
Rachelle D. Klassen, City Clerk
Bo Chen, City Engineer
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
Frankie Riddle, Director of Special Programs
Clayton von Helf, Information Systems Manager
Gary Rosenblum, Risk Manager
Andrew Shouse, Asst. Chief, Palm Desert Police/Riverside Co
Dorian Cooley, Division Chief, Palm Desert Fire/Riverside Co.
Grace L. Mendoza, Deputy City Clerk
III. ORAL COMMUNICATIONS - A (CLOSED SESSION ITEMS)
None
. Sheriff's Dept.
Fire Dept./Cal Fire
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REGULAR PALM DESERT CITY COUNCIL MEETING SEPTEMBER 8, 2011
IV. ADJOURN TO CLOSED SESSION
Request for Closed Session:
A. Conference with Real Property Negotiator pursuant to Government Code
Section 54956.8:
1) Property: 72-240 Upper Way West (APN 628-130-007), Palm Desert
Negotiating Parties:
Agency: John M. Wohlmuth/David J. Erwin/City of Palm Desert
Under Negotiation: x Price x Terms of Payment
B. Conference with Legal Counsel regarding significant exposure to litigation
pursuant to Government Code Section 54956.9(b):
Number of potential cases: 2
Upon a motion by Spiegel, second by Finerty, and 5-0 vote of the City Council,
Mayor Benson adjourned the meeting to Closed Session at 3:02 p.m. She reconvened the
meeting at 4:00 p.m.
V. RECONVENE REGULAR MEETING - 4:00 P.M.
A. REPORT ON ACTION FROM CLOSED SESSION.
None
VI. PLEDGE OF ALLEGIANCE TO THE FLAG OF
THE UNITED STATES OF AMERICA - Councilman William R. Kroonen
VII. INVOCATION - Councilmember Jan C. Harnik
VIII. ORAL COMMUNICATIONS - B
MR. KENNETH DORAN, Palm Desert, said he would set aside his remarks here for
Councilmembers Harnik and Kroonen, because they were not aware of them.
However, he was concerned about the City Manager's recent comments on local
television Channel 6 regarding the Redevelopment Agency and its activities. His
understanding according to Assembly Bill 1290 was that creating public parks and
public facilities was no longer a part of Redevelopment activities as defined by the
State. In response to comment by Councilmember Finerty, he said he would be
dealing with the City Council next year, because they were the ones who hired the
City Manager and violated the rules governing recruitment and selection of City
employees. He intended to bring up these issues next year at the Editorial Board,
and he was still very upset after his telephone call to City Council for a response
went unreturned. He asked the City Manager to be honest, show integrity, and
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REGULAR PALM DESERT CITY COUNCIL MEETING SEPTEMBER 8, 2011
recant the aforementioned inaccurate statements. He admonished City Council that
they were mere stewards of the City and could not make up rules to suit their
purposes.
DR. SHARON McGEHEE, Superintendent of Schools for the Desert Sands Unified
School District, said that on behalf of the Board of Education, herself, and the
myriad of students and theirfamilies who are positively impacted by the ASES (After
School Education and Safety) Program that the City unfalteringly supports year after
year, she wanted to personally express appreciation. She said Lincoln Elementary
and Palm Desert Charter Middle Schools are recipients of both the City's financial
and moral support with its visits and participation in After School activities, adding
that they made a tremendous difference for the students. She said they were very
pleased with the efforts on behalf of their students and, in turn, hoped the City was
happy with the education being provided.
IX. AWARDS, PRESENTATIONS, AND APPOINTMENTS
A. PRESENTATION OF PROCLAMATION DECLARING THE WEEK OF
SEPTEMBER 5 - 11, 2011, AS "NATIONAL PATRIOTISM WEEK" IN THE
CITY OF PALM DESERT.
On behalf of the City Council, Mayor Pro Tem Spiegel presented the
proclamation to Estelle Layton, representing Elks Lodge 1905, Palm Springs.
MS. LAYTON said she was honored to accept the proclamation on behalf of
the Elks, adding that they were proud to do many things to promote
Americanism and patriotism. They have a committee that develops and
oversees such activities, including a Flag Day Ceremony at Cathedral City's
City Hall, a project of folding miniature flags given to each member of the
armed services leaving to fight for our country, and they provide a great deal
of support to veterans at Loma Linda Hospital. Additionally, they sponsor a
poster and essay contest promoting Americanism open to students of all
schools in the area. This year they would also be working with the Cathedral
City Rotary Club to promote the "Healing Fields" display of thousands of U.S.
Flags at the intersection of Date Palm and Dinah Shore Drives. When
asked what Elks do, she said their major projects are ones to benefit
disabled children, conduct eye screenings at schools, along with providing
scholarships and grants to students.
Mayor Benson noted that along with recognizing National Patriotism Week,
she invited everyone to the free concert on Sunday, September 11, that
would be held in Civic Center Park. It would be a 90-minute program of
music and speakers sponsored by the Palm Desert Sister Cities Foundation
and the Cities of Palm Desert and Palm Springs to recognize anniversary of
the attack on September 11, 2001, and honor all who lost their lives that day.
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REGULAR PALM DESERT CITY COUNCIL MEETING SEPTEMBER 8, 2011
X. CONSENT CALENDAR
A. MINUTES of the Regular City Council Meeting of August 25, 2011.
Rec: Approve as presented.
Continued to the meeting of September 29, 2011.
B. CLAIMS AND DEMANDS AGAINST THE CITY TREASURY - Warrant
Nos. 41, 42, 44, 48, 52, and 56.
Rec: Approve as presented.
C. APPLICATION FOR ALCOHOLIC BEVERAGE LICENSE by Bristol Farms
Store 2319, 73-101 Country Club Drive, Palm Desert.
Rec: Receive and file.
D. ART IN PUBLIC PLACES COMMISSION MINUTES for the Meeting of
March 16, 2011.
Rec: Receive and file.
E. REQUEST FOR ADOPTION of Resolutions - Setting Forth Findings and
Authorizing the Destruction of Paper Records from the Department of
Building & Safety that Have Been Digitally Imaged.
Rec: Waive further reading and adopt Resolution Nos.: 1) 2011 - 78 -
November 2010 Records; 2) 2011 - 79 - December 2010 Records;
3) 2011 - 80 - January 2011 Records; 4) 2011 - 81 - February 2011
Records.
F. REQUEST FOR APPROVAL of Contract with Scott Burch Design for
Creative Design Services Related to Tourism Ad Campaign Production
(Contract No. C31160).
Rec: By Minute Motion: 1) Approve the subject contract with Scott Burch
Design, Indian Wells, California, in an amount not to exceed $5,500;
2) authorize the Mayor to execute the contract as approved by the
City Attorney — funds have been budgeted and are available in
Marketing Account No. 110-4417-414-3219.
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G. REQUEST FOR AUTHORIZATION to Participate in the Community Video
Tour Book Program Being Developed by CGI Communications in
Partnership with the National League of Cities and the U.S. Conference of
Mayors (Contract No. C31170).
Rec: By Minute Motion, approve participation in the Community Video Tour
Book Program with CGI Communications and authorize the City
Manager to execute the agreement for said services.
H. REQUEST FOR APPROVAL of Program Supplement Agreement No. 007-N
for Congestion Mitigation and Air Quality (CMAQ) Funds Between the City of
Palm Desert and the State of California Department of Transportation
(Caltrans) for Construction of the Highway 111 Sidewalk Improvement
Project and Authorize Director of Public Works to Advertise for Bids
(Contract No. C23110A, Project No. 697-05).
Rec: By Minute Motion: 1) Approve Program Supplement Agreement
No. 007-N to the Administering Agency -State Agreement for
Federal -aid Projects No. 08-5414R between the City of Palm Desert
and Caltrans; 2) authorize the Mayor to execute same; 3) authorize
the Director of Public Works to advertise the project for bids.
Ms. Klassen asked that Item A - Minutes of the Regular City Council Meeting
of August 25, 2011, be continued to the next meeting.
Upon a motion by Spiegel, second by Finerty, and 5-0 vote of the City Council, the
remainder of the Consent Calendar was approved as presented, with continuance of the
Minutes of the last meeting to September 29, 2011.
XI. CONSENT ITEMS HELD OVER
None
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REGULAR PALM DESERT CITY COUNCIL MEETING SEPTEMBER 8, 2011
XII. RESOLUTIONS
A. RESOLUTION NO. 2011 - 82 - A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF PALM DESERT, CALIFORNIA, AMENDING THE FISCAL
YEAR 2010-2011 BUDGET TO PROVIDE TRANSFER, APPROPRIATION,
AND ESTIMATED REVENUES OF UNOBLIGATED FUNDS FROM THE
GAS TAX, GOLF COURSE CAPITAL, TRAFFIC SAFETY, PROPERTIES
CITY/RDA, PALM DESERT RECREATIONAL FACILITIES CORPORATION
(PDRFC), CAPITAL PROJECT RESERVE, AND THE GENERAL FUND.
Mayor Pro Tern Spiegel noticed the City's legal fees were $87,000 more than
it had budget for last year, yet he didn't recall any major legal issues.
Mr. Gibson responded some of the legals were: The rent control issue at
Silver Spur Mobile Home Park; the lawsuit with Federal Home Loan Bank
dealing with the Energy Independence Program (EIP); and a number of
Code and other types of issues. He offered to provide the Council with the
list that both Richards, Watson, & Gershon and Best, Best & Krieger
provided to staff.
Mayor Pro Tern Spiegel stated that in total, the pluses versus the minuses,
the City spent less than what was planned.
Mr. Gibson agreed, stating the budget was decreased by $700,000 due to
a decrease in the police budget and staff levels being lower than what was
actually requested.
Mayor Pro Tern Spiegel moved to waive further reading and adopt Resolution
No. 2011-82. Motion was seconded by Finerty and carried by a 5-0 vote.
XIII. ORDINANCES
A. For Introduction:
None
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B. For Adoption:
ORDINANCE NO. 1225 -AN ORDINANCE OF THE CITY COUNCIL
OF THE CITY OF PALM DESERT, CALIFORNIA, APPROVING A
DEVELOPMENT AGREEMENT FOR AN 82-ROOM HOTEL AND
59-UNIT RESIDENTIAL CONDOMINIUM PROJECT WITH
ANCILLARY USES AND AMENITIES ON 4.97± GROSS ACRES OF
CURRENTLY VACANT LAND (4.27± ACRES) AND
TO -BE -VACATED FRONTAGE ROAD (0.7± ACRES) LOCATED
EAST OF HIGHWAY 74, WEST OF OCOTILLO DRIVE, AND SOUTH
OF THE IMAGO ART GALLERY —SUBJECT PROPERTY ADDRESS
KNOWN AS 45-640 HIGHWAY 74, Case No. DA 09-507
(PDH Partners, LLC, Applicant).
Associate Planner Tony Bagato stated this was the second reading
for the Development Agreement (DA) that was approved as part of
the previous decision for the hotel. He said development agreements
are adopted by an Ordinance and requires a second reading.
Councilmember Finerty stated that since this was the second reading,
the Council had the option to make changes. One of them was
making the property non -transferable, and she would like to get the
Applicant's answer on that. Also, many of the proponents were
passionate about all the job creation, the Transient Occupancy Tax
(T.O.T.), and revenue to the City, but the DA is written for ten years,
which was too long a time. She previously had mentioned tightening
up the DA, and one way to accomplish that was by making the term
three years and adding a non -transferable clause so that the
entitlements given to this particular project cannot be sold to another
developer.
MR. ANDREW K. FOGG, Cox, Castle, & Nicholson, Attorney for the
Applicant, stated the terms of the DA was at the City's discretion,
which can be 10, 20, 3, or 5 years, and it was up to the City and
Applicant to work it out as a contract. However, given the current
environment, they would have concerns with a shorter term. He said
they would like the entitlements to be there and ready to go as soon
as the market indicates it's ready, but they didn't know when that will
occur. He said there is a strong market and demand for this product
in the Desert, and it will come hopefully soon, but they could not
predict the timing. He said the DA allowed those entitlements to stay
in place for certainty for both the City and the developer so that the
City knew what it was getting. He said the DA included significant
protections to the City, in terms of the amount of Furniture, Fixtures
& Equipment (FF&E) budget that will be spent per room, which was
at least $75,000; a significant investment in a 5-star upscale hotel.
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He said there are other commitments as well, so the ten-year term is
an appropriate one in order to have certainty that the project can
actually get built and the entitlements can be used in that time frame.
On the transferability, the Applicant already stated they have no
intention of transferring the property, they are not engaged in any
discussions with anyone, and entitlements of this nature ran with the
land. He said the DA can provide protection to the City, it can provide
notice and information about a future buyer, which would not be a
problem, but to hamstring and limit the entitlements to one specific
developer is problematic, because they didn't know if that developer
is going to be the best one at the time to build the project. He isn't
talking about the Rosewood brand, but the actual person who will be
pulling building permits, constructing it, and meeting all the obligations
of the agreement and approvals, which is PDH Partners, LLC. He
urged the Council to pass the DA as crafted today, stating it provided
significant benefits and certainty to both parties, and it was a fair and
balanced agreement. He said his firm had done many development
agreements for terms much longer than ten years, because it's a
commercially reasonable term for both a city and developer.
Councilmember Finerty stated that if the Applicant had no plans to
transfer or sell the property, she questioned why there would be
reluctance to enter into a non -transferable clause. With respect to the
terms of ten years, the proponents who spoke in favor of the project
are thinking jobs will be created shortly to help them now, but that is
not the case. She said the way to make that come to fruition is to
tighten up the DA; therefore, she asked for a continuance of this item
so that Mr. Fogg can talk to the Applicant with respect to the
three-year term, and non -transferable language, unless he had a
definitive answer at this time.
MR. FOGG stated he understood her position and believed it was
addressed at the last meeting when those issues were considered.
However, they need to develop a project such as this one when the
market is ready; otherwise, one can create a failed project. He said
if they agreed to a three-year term and the market wasn't ready, it
would be a disaster for the City and everyone involved. He said PDH
Partners and Rosewood would love to be breaking ground in the next
year or two, which would be great, but the market is substantially
uncertain. However, they know this product can be financed, but they
didn't want to develop a product when the market is not ready to
absorb it. He said the ten-year term provides certainty that there is a
window, and he really didn't think they could deviate down to a
three-year term or even less than ten. He said it would be the same
issue on the transferability, because it provides the ability for the
developer, the right party, to be able to develop a product that meets
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the needs of the City. He said if Friedman Equities went under two
years from now, but there is another developer who is ready, willing,
and able to meet all of the commitments of the DA, including the
standard of the FF&E budget, standard of operations, and are ready
to go, why would the City want to give up the opportunity and cause
it to reconsider those entitlements. He said if the City is tied to one
party, and due to changed circumstances something else happens,
the City will receive notice because the property can be sold, but that
is not the intention. He said they couldn't predict the future, but
having a non -transferability clause places unnecessary constraints on
entitlements that could ultimately work to the City's disadvantage.
Councilmember Finerty disagreed. Additionally, she said Mr. Joblon
provided the Council with five letters from companies that are willing
to finance the project, and based on what Mr. Joblon said, they are
ready to go and just need the entitlements; therefore, one out of five
should come through. Another thing that is not locked, is the
guarantee that it will be Rosewood. She said when a developer asks
for a variance, the development agreement is where the City has an
opportunity to protect the residents and properties to ensure it is
getting what they are bargaining for.
MR. FOGG responded that Mr. Joblon's actual statements were that
three items were necessary in order for the lenders to commit, which
is the entitlements, negotiated hotel operators' agreement, and
approved construction documents, which shows the lender exactly
what they will be financing. He said the lenders that submitted the
letters have all expressed an interest based on the proposal and track
record of this developer. He said the conceptual design with height,
elevations, and setbacks are known, but the interior design, in terms
of fits, finishes, and the various nuances included in creating a
product of this type have not been solidified. He said that portion will
go before the Architectural Review Commission twice at two different
levels in order to ensure the ARC is comfortable with the materials
selected. He said all of these things are part of the process and the
project as a whole was not at the 85-yard line, they were closer to the
30-yard line and still working its way through. He said there was a lot
yet to be done in terms of being ready to get $120 million of
construction financed.
Mayor Benson asked if she understood him to say they hadn't
negotiated with Rosewood yet.
MR. FOGG responded they had a letter of intent with Rosewood that
outlines the terms of the agreement between Rosewood and the hotel
developer. The standard practice in this field is that once the
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entitlements are secured and they know exactly the square footage,
the back of the house, the number of rooms, the common areas, and
all the things that go into the hotel, that's the point where they can
actually negotiate the hotel operating agreement, which is 300- to 400
plus pages once you get into the exhibits, regulations, and conditions.
He said it was not something hotels ever negotiate prior to
entitlements. Further responding to question about using Rosewood's
name, he said PDH Partners has a letter of intent with Rosewood;
therefore, they have a binding agreement and are bound to negotiate
with them in good faith. It is both their intentions that the final hotel
operating agreement gets completed, but that is the next step in the
process. He said the basics of the terms are worked out, but if things
didn't work out with Rosewood, there are a few other operators in the
market that could potentially come in and be a 5-star type hotel like
a Montage or something along that product type. He said the City has
incorporated provisions into the DA to assure a 5-star standard
regardless of what the hotel flag is. He said the City will see a
minimum of $75,000 per room in FF&E. He said an average 4-star
hotel like a nice Western or one of that nature, may approach $50,000
per room. He said the City will likely see an excess twice that amount
spent on this hotel on a per room basis. He reminded the Council that
Rosewood submitted a video at the last meeting, and they expressed
their strong interest in this property and strong interest to negotiate
this hotel agreement. He said to bind the developer to a specific flag
as part of the entitlements would create difficulties, because If
Rosewood was to have a problem and not be able to go into the site,
the developerwould not have the option of doing a Montage. He said
it would create different actions and unnecessary constraints, when
the issue is how to get a 5-star hotel. He said Mr. Joblon was up front
when they were doing the design of this building, and he spoke with
Rosewood, Montage, and others in order to get them all to agree this
was a product they could be excited about and one that represented
their brand well. Ultimately, Rosewood appeared to be the best fit,
but in the end, they want to have that flexibility to make the best
decision for the product. He said they want a product that Palm
Desert can be proud of and one that can succeed, which is what they
are trying to accomplish.
Mayor Benson stated it appeared to her there was some deceiving
advertising, because the only thing heard was that it was going to be
a 5-star Rosewood Hotel, which is not necessarily true - - it's false.
Councilmember Finerty moved to, by Minute Motion, continue to the meeting of
September 29, 2011, to allow Applicant to discuss: 1) Reduced term of Agreement from
10 to 3 years; 2) non -transferability clause; 3) possibility of how to identify the five-star
operator (i.e., Rosewood, Montage, etc.).
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Councilman Kroonen stated he was in substantial agreement and
believed the Council needed to probe in those areas further.
Councilman Kroonen seconded the motion.
Councilmember Harnik stated everyone was passionate about this
project in one area or another. However, she was not necessarily
married to Rosewood, but certainly did want the best operator for the
site. She agreed there are some concerns about the time frame, but
imagined that if the Council was pulled, each would vary in their
opinion. She said it was in the best interest of this project to continue
it until September 29 to look at this and make sure the City had an
agreement that everyone was comfortable with and felt the very best
going forward. Mayor Pro Tem Spiegel concurred.
Mayor Benson called for the vote, and the motion carried by a 5-0 vote.
Mayor Benson stated she had overlooked a speaker card and invited
Bridget Zappia to the podium.
MS. BRIDGET ZAPPIA thanked the Mayor for the opportunity to
speak, but instead opted to write the Mayor a letter.
2. ORDINANCE NO. 1227 - AN ORDINANCE OF THE CITY COUNCIL OF
THE CITY OF PALM DESERT, CALIFORNIA, TO COMPLY W ITH PART 1.9
OF DIVISION 24 OF THE CALIFORNIA HEALTH AND SAFETY CODE AND
TAKING CERTAIN ACTIONS IN CONNECTION THEREWITH IN ORDER
TO PARTICIPATE IN THE ALTERNATIVE VOLUNTARY
REDEVELOPMENT PROGRAM.
Mr. Wohlmuth stated this item dealt with AB X1 27, which is the
alternate financing where the City will pay the State between $17- to
$20 million to keep the Redevelopment Agency; potential payments
will be made January 15 and May 15, 2012.
Councilman Kroonen moved to waive further reading and adopt Ordinance
No. 1227. Motion was seconded by Spiegel and carried by a 5-0 vote.
Mr. Wohlmuth noted that later under City Manager's Report and
Remarks he would like to add two assembly bills relating to
Redevelopment, stating he had received correspondence from
Assemblyman Nestande requesting the City's comment on them.
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XIV. NEW BUSINESS
A. REQUEST FOR DIRECTION REGARDING PROPOSED CATHEDRAL CITY
SPHERE OF INFLUENCE AMENDMENT 2011-03-4 AND REGARDING
POTENTIAL GROWTH OF THE PALM DESERT SPHERE OF INFLUENCE
NORTH OF INTERSTATE 10.
Mayor Benson requested staff present the two issues as two separate items,
because she didn't think the proposed Cathedral City's Sphere of Influence
Amendment had anything to do with the potential growth of the Palm Desert
Sphere of Influence areas north of Interstate 10.
Ms. Aylaian stated Cathedral City recently expanded their city limits and
Sphere of Influence (SOI) north of Interstate 10 (1-10). She displayed a map
that showed the cities and the SOL She said Palm Desert's SOI included
areas in the Cahuilla Hills, Bermuda Dunes, and north of Interstate 10.
Cathedral City currently has city limits on both the south and north sides of
1-10, and as a result of a two-year process, they expanded their SOI to the
east. As part ofthat process, Local Agency Formation Commission (LAFCO)
requested that the Thousand Palms (TP) area not be bifurcated and for
Cathedral City to expand their SOI to include the rest of the TP area. Staff
is looking for policy direction on the proposal that is now under consideration
and will be subject of a public hearing. The area that is now proposed to be
amended into Cathedral City's sphere includes the Jack Ivy Ranch and
further to the east the Classic Club, along with the undeveloped areas. The
TP residents and LAFCO are in favor of including all of TP and keeping it
together as a single community. It will include the undeveloped areas, which
would have the greater potential for growth and financial liability and is now
under consideration. She said both the sphere of influence and city limits
are determined by policy decisions that come from the City Council and staff
is recommending against the expansion of Cathedral City's SOI for two
technical reasons. One is based on a public safety concern, which ties into
fire service. The second is based on land development and aesthetic
control. She displayed a map and pointed to the green shaded area, which
represented Cathedral City's proposed addition to its SOI and the marks in
red are existing fire stations in the Coachella Valley. She explained the
southeast portion of the proposed Cathedral City SOI Amendment is bound
on the north by habitat conservation lands and on the south by the City of
Palm Desert, and there is one fire station in that area. The blue shaded area
is the planned and new fire station that are to be added in the not too distant
future. She said at this time, it is not predicted there will be any growth in
any city's SOI or any development; therefore, it is unlikely that a fire station
will ever be added to serve. She said Palm Desert contracts with Riverside
County Fire who provides fire services for the City and the unincorporated
Riverside County areas. Consequently, if Cathedral City annexes the
proposed SOI area, calls for assistance and responses will likely fall to Palm
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Desert fire stations or within Rancho Mirage, because the rest of Cathedral
City's fire stations and their infrastructure are too remote for a timely
response. Staff felt it would be placing an undue burden on Palm Desert's
public safety to have such a small area north of 1-10 so adjacent to Palm
Desert, but under the control and response of another city, which in this case
was Cathedral City. The second concern is relative to land use and
aesthetics, specifically the narrow strip of land that is 200-feet wide between
the 1-10 and the railroad tracks that are near the Gateway and Walmart
Center. She said this strip of land is not part of Palm Desert and is currently
under the control of Riverside County, which has not always been a happy
relationship due to the erected billboards in the past. She said technically the
narrow strip is Riverside County, and the County did a General Plan
Amendment and Zoned it appropriately, and went ahead and erected
billboards from which they derived revenue. She said Palm Desert spoke
against it at every opportunity and ultimatelyfiled suit, but was unsuccessful.
She said turning that space over to another city that is not located in Palm
Desert will be loss of control that staff is concerned about. She said it is very
uncomfortable having another jurisdiction have control over what your city
looks like to the millions of people that passed by on 1-10 every year. She
said another city's decision making would not necessarily be coincident with
Palm Desert from a land use or aesthetics standpoint, and their decisions
may derive upon revenue and not upon other concerns. She said the strip
of land is currently not in the Palm Desert's control, which is something
LAFCO would be willing to address at some point, if the City so desired; the
City of Rancho Mirage has the same concern and would like to get control
up to the central line of the freeway. She said it was not a good situation
now, and turning it over to another city would probably just make the matter
worse. She said for the two reasons stated, staff would recommend against
Cathedral City's proposed SOI Amendment. Although staff was
recommending against the Amendment, LAFCO would not want the
proposed area to stay unincorporated and not in anyone's SOI, because
then it will never be serviced and it will never be financially viable as its own
city, but yet completely surrounded by other cities. Therefore, they would
probably prefer to see it attached to either Palm Desert or Cathedral City
SOI. She said if the Council didn't want to see this portion of land attached
to Cathedral City SOI, she asked if the Council was interested in having it
attached to Palm Desert SOI and did it want to pursue that consideration.
Councilmember Finerty asked who provided fire service for the
unincorporated section of Riverside County.
Ms. Aylaian answered County Fire whom the City contracted with.
Councilmember Finerty stated she needed to understand the difference
between whether the proposed area would be under Cathedral City SOI or
unincorporated area, and how that would impact Palm Desert's resources.
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Chief Cooley responded Cathedral City's resources are remote from
anything being served out in the unincorporated areas; therefore, service will
continue to come from Palm Desert. Currently, County Fire resources from
Rancho Mirage and Palm Desert backup the TP station and that area, and
because Palm Desert is part of the County Fire system, there is a lot of give
and take. He said Palm Desert stations may run a few calls in Jack Ivy
Ranch, but Palm Desert regularly received backup coverage from the
Thousand Palms engine. However, when that TP station moves to an
outside agency, Cathedral City Fire, it will no longer be part of the County
Fire dispatch system and won't automatically get sent to calls in Palm Desert
for backup, so there won't be that daily give and take of resources from Palm
Desert's standpoint. He said there is always mutual aid and a little bit of
reciprocity, but it will be fairly one-sided.
Councilman Kroonen asked if the TP fire station went with the proposed
Cathedral City SOI.
Chief Dooley answered yes, stating there is legal precedence that
determines that, and in a nutshell, the taxpayers pay for that station;
therefore, the residents in the area still gain the benefit of it. He said County
Fire wasn't concerned about losing the station and it didn't impact their
training center there, this was more of a concern from a Palm Desert
standpoint.
Ms. Aylaian pointed out this transition would happen when and if Cathedral
City was to actually annex into TP, and as long as it was only in the sphere,
things will continue to operate as they are, but obviously pursuing a SOI was
the first step toward incorporation. Responding to question about the
County's position, she said she didn't know.
Chief Dooley stated he spoke to the Fourth District Supervisor's office this
afternoon and the Supervisor himself had not taken a position on this issue.
Councilman Kroonen asked if the area that Cathedral City's is proposing
abuts to the narrow strip area near the 1-10 corridor.
Ms. Aylaian answered yes. However, she would not blame or say Cathedral
City is responsible for actually asking to come across the freeway and take
that portion of area, because that is how the previous annexations and
previous decisions have been made that they left this peculiar strip there.
Mayor Pro Tern Spiegel asked if the City can apply for that strip of area and
make it part of Palm Desert SOI, because it made sense to do so.
Ms. Aylaian answered yes, stating a feasibility study would be required.
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Mayor Benson noted that when the City conducted the last study, it
specifically looked at not jumping to the other side of the freeway, because
a lot of that land is undeveloped.
Councilmember Finerty agreed, stating that if Palm Desert continued to the
other side of the freeway, the City's public safety standard would need to be
continued, but that would need to be weighed with what impact it would have
to the current 50,000 residents.
Councilmember Harnik and Councilman Kroonen asked for clarification on
the 200-foot wide strip of land.
Ms. Aylaian explained there was physically a 200-foot wide strip of land
between Palm Desert and the freeway over which Palm Desert did not have
control.
Mr. Wohimuth added the former City policy was that Palm Desert city limits
ended at the south rail right-of-way. He said there is a rail right-of-way and
a CalTrans rail right-of-way, and Cathedral City includes both in their SOI
change. If Palm Desert wanted to take the center line of 1-10 to the south of
the rail right-of-way, a feasibility study would be required. The prior Council's
rationale was that it had a lot of public safety concerns, because of the
potential for derailment and paramedic services it will need to provide due to
the many accidents on the freeway. He said people get free transport in
Palm Desert whether they're a resident or driving through, so that was a
significant exposure to Palm Desert, which is why the prior Council did not
include that area in Palm Desert city limits.
Councilmember Finerty stated that when the City conducted a feasibility
studyfor Bermuda Dunes, the Council faced essentiallythe same issues with
public safety and the drain it will be on the 50,000 residents of Palm Desert,
because the City would then be required to bring everybody up to standard.
She said in today's economy, she would be concerned about taking on
anything new and would prefer to take care of the existing 50,000 residents.
Mayor Pro Tern Spiegel disagreed, stating the City needs do a feasibility
study to see whether that area should be in Palm Desert's SOI, because
that's where people think the city limit ends.
Councilmember Harnik concurred, stating she would like more information.
Mayor Pro Tern Spiegel moved to: 1) By Minute Motion, authorize staff to get
feasibility study on the 200 feet of territory between the existing northern City limit and the
freeway. Motion was seconded by Kroonen.
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Councilmember Finerty asked if the study on the 200-foot strip for the
purpose of allowing Palm Desert to perhaps consider going across the
freeway as a SOI.
Mayor Pro Tem Spiegel responded he would like to see what the cost and
ramifications are.
Councilman Kroonen asked where did that leave the Council with the
balance of the proposed Cathedral City SOI Amendment, because the
Council is being asked to give staff direction.
Councilmember Finerty asked how much would a feasibility study cost for
200 feet and/or continue until staff knew how much it would cost.
Mayor Pro Tern Spiegel stated he would rather vote on this tonight.
Ms. Aylaian agreed to come back with the cost, but the Council's input into
Cathedral City's request needed to be in by the following day.
Councilmember Finerty suggested a motion with not to exceed amount.
Mr. Wohlmuth stated the process to do a feasibility study would take a
couple of weeks to get a consultant and imagined their work will take 30 to
60 days to complete. He said LAFCO is looking for comments on this SOI
issue and is being heard on September 29. He can initiate a Request for
Proposal to find out what the cost and scope of work will be, but the Council
will not have an answer by the time comments are needed to LAFCO.
Ms. Aylaian confirmed the City couldn't meet the date LAFCO has set with
a feasibility study in hand.
Mayor Benson stated the City didn't have to comment on Cathedral City SOI
Amendment, but it can go ahead on finding out the cost of the feasibility
study for the 200 feet of land.
Mr. Wohlmuth pointed out that by that time the strip may already be in
Cathedral City's SOI.
Ms. Aylaian agreed, stating the City may lose that opportunity. She offered
to craft a letter to LAFCO letting them know Palm Desert is very concerned
about this issue and it will be undertaking feasibility studies. Responding to
question about who was attending the meeting, she said she was planning
on attending the LAFCO meeting to deliver the City's comment.
Mayor Benson called for the vote and the motion carried by a 5-0 vote.
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Responding to staff for clarification on what to convey to LAFCO, City
Attorney Dave Erwin suggested staff indicate to LAFCO that the City is
interested in looking at the 200-foot portion of land and would like for them
to continue their decision to allow for that process to be completed, and if
they are not willing to do that, it can object to the Cathedral City expansion.
He believed that unless the City objected to that portion of it, it is possible
that LAFCO can go ahead and approve the SOI as requested. He said
LAFCO is looking for the Council's comment and hoped they will continue it,
but in the abundance of caution, that at least as to the 200 feet, the City
would object to that part of the sphere.
Councilman Kroonen asked why not take that a step forward and say it
objected to the entire assumption of that territory until Palm Desert had an
opportunity to study it further.
Councilman Kroonen moved to, by Minute Motion, formally object to the Cathedral
City Sphere of Influence Amendment 2011-03-4 pending before LAFCO in order for the
City to have sufficient time to give the matter further study. Motion was seconded by
Finerty and carried by a 5-0 vote.
Mr. Wohlmuth asked if the previously approved feasibility study was for the
200 feet plus the green shaded area of the map.
Councilmember Finerty answered no, stating it was just the 200 feet to get
the Council to the point where it can look at making that strip part of Palm
Desert SOI, because that other portion couldn't even be entertained unless
the 200 feet issue is resolved.
Councilmember Harnik asked if it wouldn't be financially more efficient to do
the entire feasibility study on both portions and break them down separately,
but do them at the same time.
Mr. Wohlmuth stated one of his thoughts was to look at Palm Desert's own
SOI, which is Sun City, the areas west of Washington, and Bermuda Dunes,
because LAFCO staff has attached Bermuda Dunes to any discussion of
annexation of Sun City. He said the feasibility study for the 200 feet can be
alternate one, a separate number could be added in for Sun City, and a third
number for Bermuda Dunes, so that the Council can know what the total
feasibility of Palm Desert's potential SOI request would cost.
Councilmember Finerty stated this feasibility study can be taken in two
separate votes and however staff puts it together for financial reasons was
up to staff.
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Mayor Pro Tern Spiegel disagreed that Sun City and Bermuda Dunes are
part of the same annexation, because they were not put in the SOI at the
same time.
Councilmember Finerty stated it was her understanding that LAFCO staff has
indicated that Palm Desert had no direct link to hop from Palm Desert to Sun
City and would have to take Bermuda Dunes.
Mr. Wohlmuth agreed, stating LAFCO staff didn't want to see an island when
there is only one point touching. He said the City could argue with LAFCO
that it wants to look at annexing Sun City and not Bermuda Dunes, which is
an application.
MR. BUD ENGLAND, City of Cathedral City, stated the Council received
excellent background on how the City of Cathedral City was asked to
proceed into moving into a SOI over the entire region of Thousand Palms
(TP). He said originally part of the application was the 4,100 acres, and
attached to it was LAFCO's wisdom to take a look at the whole community
of TP, because they didn't want to create an island, and the residents didn't
want to get split up. Therefore, Cathedral City agreed to take a look at a
feasibility study of what it's going to look like as far as the whole community
of TP. He served as part of the 2x2 Committee and he and Gregg Pettis and
staff have had ongoing discussions with community leaders, town council
meetings, and with Supervisor's staff in moving forward. He said currently the
City of Cathedral City provides dispatch communication with the City of
Desert Hot Springs (DHS); it contracts with them to provide them service.
Cathedral City also has joint agreements with Palm Springs, DHS, and
Rancho Mirage, which is CalFire for mutual aid contracts, which came in
place because of the Agua Caliente Casino, whereas they have a straight
shot down Ramon Road into the Agua Caliente Casino. He said Cathedral
City has all those things in place that Palm Desert City staff covered and has
had concerns. He said because Cathedral City hasn't done a feasibility
study yet, he was unaware of that small strip of land, but as a
Councilmember he wouldn't want another city coming across the freeway
and having a small strip. He said if Cathedral City was there, they wouldn't
want it, because it wouldn't make sense to have it and not be able to do
anything with it other than provide service. He said it would be a great
opportunity to do a friendly amendment to LAFCO's desire with regard to the
application that is on file to take out that particular portion; whether it was the
200 feet or the center of the freeway, because this was all in negotiations.
Responding to question he confirmed Cathedral City has moved to include
the yellow -shaded area into it's SOI, but it was pending. He said a few
years ago that area was part of the City of Rancho Mirage and they removed
their SOI back to the 1-10. He said Cathedral City looked at continuity,
because they have some large land owners north of 1-10, Katrina Heinrich
being the majority of the land owner, who is looking to provide services
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coming through Thousand Palms through that 4,100 acres, which she is a
part of and bringing it up into the northern sphere of their city limits. The
concern with the community leaders of TP is they didn't want to give anything
up, but they saw the writing on the wall that they wouldn't become a City. He
said the Multiple Species Habitat Conservation Plan (MSHCP) is a very large
buffer between Sun City Del Webb and the back side of TP, and that portion
isn't thrown into the SOI, because there is no rationale for including it. He
said the City of Cathedral City is trying to open it up in order to have ongoing
communications with the residents, because it basically came down to a vote
of the residents of TP on whether they would like to be part of Cathedral
City's SOI. With regard to the 200-foot strip, he said a friendly amendment
to LAFCO would be in order and didn't think the City of Cathedral City or
LAFCO staff would object.
MR. SERGIO L. NUNEZ, Thousand Palms, stated vision meant the act or
power of anticipating what will come to be, a prophetic vision, or a vision
entrepreneur. The success of a City should not diminish the ability of a
municipality to have a vision of its future. He said if this Council can imagine
a location within the City of Palm Desert that would elevate itself to an elite
status among communities, perhaps the subject SOI can be zoned Mix -Use
for equestrian use, entertainment, industrial, and affordable housing. He
said an equestrian community anchored by a municipal polo field would open
doors to needed revenue and perhaps holds private/public joint ventures,
international polo championships, and horse shows during the season to
draw more interest into the City of Palm Desert. He said this location is ideal
due to its approximate center to the Valley with its supporting amenities and
roads. He said maximizing the revenue of a community investment would be
greatly improved by allowing the land to be used for polo field facilities and
other venues. He said the Coachella Valley Music Festival will generate
approximately $24 million in ticket sales alone in 2012. He said the City of
Indio has already attached a $1 per ticket tax that would generate an
additional $200,000 for City coffers, and sales tax from sold -out hotels. The
zoning of the Mix -Use Master Plan Development is simplified if that location
is vacant land. For example, the Ivy Ranch infrastructure can be laid out for
that to attract research, science, technology, business, and real estate. He
said this high -quality industrial park can also benefit from the existing
Coachella Valley Enterprising Zone. He asked the Council not to miss an
opportunity here to develop its own spectrum, because there have been
many plans that have done no more than gather dust. He said the difference
between effective and ineffective planning is more often than not politics. He
said plans call for a vision to be successful.
MS. PATRICIA SALEH, Thousand Palms Community Council Member,
stated she came before the City Council prior to Cathedral City asking for a
SOI. She met with then Councilmen Spiegel and Ferguson to ask them if
they were interested in taking in TP, because Cathedral City was interested
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in doing just that. At that time, the response from Palm Desert was that it
was not interested. In further studying Cathedral City they learned it
matched the demographics of TP very well. The only thing that TP was
trying to avoid was being split up and cut down to a small island. With
respect to the strip of land on the south side of the railroad, she agreed with
Mr. England that it wouldn't be a problem to take that out of the Cathedral
City proposal. However, if Palm Desert is considering changing its position
about taking in the land north of 1-10, that would not be acceptable to
Thousand Palms. She said their Chamber of Commerce, Shenandoah
Springs, and Ivy Ranch is representative of the 4,400 people in TP that has
indicated to LAFCO they would like to go with Cathedral City. She said
Supervisor Benoit wrote a letter to LAFCO approving the original request as
long as it took all of Thousand Palms.
Ms. Aylaian stated Mayor Pro Tern Spiegel at the last City Council meeting
stated he was interested in examining further the concept of bringing Palm
Desert existing SOI north of the 1-10 into the City through annexation, which
staff is following up on. She said the SOI north of Palm Desert is bound by
the MSHCP, Indio and Indio SOI on the east, and on the south in our existing
SOI is the Bermuda Dunes area. She displayed a map and pointed to the
locations of Sun City, residential, and commercial development. She said to
examine the area, the City would need to do a feasibility analysis and
determine what the implication would be for providing services and what the
tax revenue would be associated with the areas north of 1-10. Staff has
spoken at length with LAFCO staff and they have said they would not
recommend in favor of annexation without Bermuda Dunes, because then
it will be surrounded by incorporated cities and never have a chance to be
able to be self-sufficient from a financial or fiscal standpoint. Therefore,
LAFCO's staff recommendation to the Commission would be that the Sun
City area only be allowed to be annexed if Bermuda Dunes was annexed as
well. She said the Commission is made up of elected officials and sometimes
their policy is not consistent with recommendations that are made to them
from a technical level, and she didn't know how they voted. She said staff
is looking to the City Council for direction and would welcome comments
from the City's newest Councilmembers on their concept/vision for expansion
or growth of the City, specifically knowing what their thoughts are on north
of 1-10 and Bermuda Dunes and if they are interested in having a feasibility
study on annexing any of the areas in Palm Desert's SOI.
MR. DON HEIN, Vice President of the Board of Directors of Sun City, noted
that many members of their Board, delegates, and residents were present
this evening. He said they are obviously very interested in this feasibility
study and would like to take part in reviewing and checking the facts and
figures.
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MS. ANNE LEACH, Treasurer of the Sun City Board, stated she along with
members of the board hoped the Council will decide to take this opportunity
to obtain current information by conducting a feasibility study on an issue that
stands to affect so many. She hoped the perimeters of the study will include
the Bermuda Dunes SOI as well as the north 1-10 SOI. Additionally, that
these two areas are studied and reported on separately so that the numbers
can be evaluated.
MS. HELEN MCENERNEY, Sun City, Palm Desert, stated she was the
former general manager and vice president of Del Webb California
Corporation at Sun City, proudly housing nearly 5,000 homes. She
commended the Council for at least considering a feasibility study and
expenditure to see if it was fiscally viable to act at some future time as it
relates to Sun City, Palm Desert. She said they would like to see some
growth north of 1-10, because from their financial analysis both from several
years ago and most recently, the growth has been positive. She trusted the
Council will approve the feasibility study and will find the same fact both in
the residential sector as it relates to homeowner taxes, but also the in the
strong commercial property along the 1-10, including Stater Bros.,
Walgreens, restaurants, etc. She noted the budget at Sun City when Del
Webb was there was about $11 million in terms of revenue they managed,
which she believed was now closer to $15 million. She said $1 million
covered security, because Del Webb made sure the wiring for security and
alarm systems and patrol was covered in the budget. She said the Council
needed to keep in mind that money has been set aside. She said for an
active adult community, it was very safe, which they are proud of.
Mayor Pro Tern Spiegel stated Sun City came into Palm Desert's SOI a few
years ago, because they came to the City and asked for it. He said Sun City
was afraid to be taken over by the City of Indio. He believed the Council
voted unanimously to include them in Palm Desert SOL He said it's an area
that takes care of itself, it has the infrastructure, roads, gutters, sidewalks,
and things that are needed to be installed to make it part of the City. He
personally would like to do a feasibility study to see what the results would
be of taking in the area north of 1-10 that is currently Sun City with the
adjacent commercial -retail area.
Mayor Pro Tern Spiegel moved to, by Minute Motion, authorize staff to obtain
feasibility study on territory north of 1-10 for Sun City and the adjacent commercial -retail
area only. Motion was seconded by Kroonen.
Councilmember Harnik stated she had an opportunity to go out to Sun City
fora tourand was very impressed with theiremergency preparedness, which
was a wonderful model to learn from; they work together in voluntarism. She
said Sun City has a library that is completely run and stocked by its
volunteers, stating it is an impressive community. Additionally, they did their
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own study in 2008, but of course, she felt it needs to be brought up to date.
She agreed this was something the City should and needs to look at.
Councilmember Finerty stated this wasn't the first time that it's been looked
at, and as the City Manager and staff has indicated, LAFCO believes
Bermuda Dunes needs to go with it. She said the City has studied Bermuda
Dunes, and the fact is there isn't enough money to make it feasible. She
said at that time, the Council talked with the County with then Supervisor Roy
Wilson, and there wasn't enough money. Having been in a meeting today
earlier with Supervisor Benoit, she learned the County would be receiving a
briefing that basically will say the County wasn't doing any better and
perhaps looking at making further cuts. Therefore, she didn't anticipate any
assistance from the County, because they sometimes set aside funds for
infrastructures and roads, which is currently lacking in Bermuda Dunes. She
didn't know how the City can skip over Bermuda Dunes and whether that
was a battle it should try to fight. She said the 5,000 homes in Sun City will
require 10% of the City's revenue, which will impact Palm Desert public
safety wise. She said the City spent $48 for paramedic service and is
concerned with Palm Desert taking on additional responsibility in these
economic times. She said whatever Palm Desert annexed, the City will be
required to follow the General Plan and bring them up to the same level of
service that everyone else in Palm Desert enjoyed.
Mayor Pro Tern Spiegel noted Bermuda Dunes is surrounded on three sides
by Indio and one side by Palm Desert.
Councilmember Finerty responded Bermuda Dunes was in Palm Desert's
SOI. She wondered what the City can put together internally before
spending $20,000 for a feasibility study, as far as updating what has already
been done, because this wasn't the first time the City was looking at this
issue.
Councilman Kroonen noted Bermuda Dunes also abuts the City of La Quinta.
Councilmember Finerty agreed, stating the City of La Quinta had been cherry
picking key parts of Bermuda Dunes, and LAFCO has said no more cherry
picking by anyone and it's everything or nothing at all.
Councilman Kroonen stated he understood the motion on the table was to
do a feasibility study on the land north of 1-10, but it did not include Bermuda
Dunes, which he still supported, because it wasn't the end of the process.
Councilmember Finerty agreed it was not the end of the process, but the City
has gone to LAFCO so many times, and as stated previously by City
Manager and staff, LAFCO's position hadn't changed.
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Councilman Kroonen responded he understood, but many times one is told
by this, that, or the other agency, whether it is Sacramento or Riverside
County what it can or couldn't do, and he would like this Council to assert
itself as a principal player in this process at this time.
Mayor Benson agreed with Councilmember Finerty that the City has gone
through this so many times, that it's almost ridiculous. She wasn't against
looking at it, but was against spending $20,000 to do a feasibility study. She
said the City has turned down so many things in the community that she
thought it can take one of the old studies, dust it off, and see what has
changed since the last one, and find out how much money has actually come
in from that area. She believed the County can provide staff with that update
information without spending $20,000.
Councilmember Harnik noted Sun City did a study in 2008.
Mayor Benson said if Sun City's brought their study in along with what the
City already had, they can be reviewed to see if a feasibility study was
needed before it spent $20,000.
Mr. Wohlmuth stated it was worthwhile to study Bermuda Dunes, especially
if the City asks LAFCO to considerjust an annexation north of 1-10, because
it will need to provide reasons why Palm Desert couldn't annex Bermuda
Dunes, which would be the financial cost to provide those services.
Therefore, he believed the City needed to look at a fiscal analysis of both
Bermuda Dunes and Sun City area. Secondly, a lot could have changed in
the last three years, not only redevelopment, but Stater Brothers was now
twoY2 years old, and if it's a big tax generating commercial property. He said
the City will need a consultant to get that information, because it couldn't get
that type of information from the Board of Equalization. He said he wasn't
sure the County could deliver sales tax information on Stater Brothers,
because Palm Desert couldn't deliver that type of information on its own
businesses.
Mayor Benson reiterated the City should use Sun City's study and use one
of the old ones. She said there are enough things that have happened to
see what it was looking for, because she just couldn't justify spending
$20,000 for a consultant to come up with something.
Mr. Wohlmuth agreed the more information the City provided, the less it will
cost. However, he would like to have someone organize all this information
into a report, separating Bermuda Dunes from Sun City and looking at the
200 feet along the freeway, because this person will have to interview and
obtain CalTrans accident reports, etc.
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Councilmember Hamik asked if it made sense, given the information just
provided by the City Manager, to go ahead and do the feasibility study of
Bermuda Dunes to be able to make the City's case if the feasibility for the
area north of 1-10 turns out to be positive.
Mayor Pro Tern Spiegel answered he didn't care and it didn't make any
difference.
Councilmember Finerty suggested updating the several feasibility studies
already done on Bermuda Dunes, because there couldn't be much that's
changed there. She said the infrastructure out there was poor, which is why
she sat down with then Supervisor Wilson to see what kind of funds the
County would have to assist with the infrastructure. She said foreclosure
was one thing, but their infrastructure is in horrible state and nothing to the
standard of Palm Desert.
Responding to question about the most recent study on Bermuda Dunes,
Ms. Aylaian responded it was done about three years ago, and at that time
the study showed there was about a $42 million capital investment needed
over 30 years. She said during the first year it was anticipated there would
be a $7 million negative cash flow associated with Bermuda Dunes and that
it would increase afterthat. However, she understood there have been some
real investments in the infrastructure by the County. She said times and
costing had changed enough that three years is a long time in feasibility
analysis and it would be appropriate to update it.
Mayor Benson called for the vote, and the motion carried by a 3-2 vote, with Benson
and Finerty voting NO.
B. CONSIDERATION OF ASSEMBLY BILL 742 (LOWENTHAL) AND
APPROVAL OF A LETTER OF OPPOSITION TO ASSEMBLYMAN
NESTANDE AND SENATOR EMMERSON.
Councilmember Finerty stated this item is for approval to send a letter in
opposition of AB 742, because Palm Desert believes this is a local land use
decision that should be made locally.
Councilmember Finerty moved to, by Minute Motion, approve sending the
recommended letter opposing AB 742 (Lowenthal) to Assemblyman Nestande and Senator
Emmerson. Motion was seconded Kroonen and carried by a 5-0 vote.
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C. CONSIDERATION OF SUPPORT FOR CONTINUATION OF THE ENERGY
EFFICIENCY GAS SURCHARGE FUND AND A LETTER TO
ASSEMBLYMAN NESTANDE AND SENATOR EMMERSON THEREFOR.
Councilmember Finerty moved to, by Minute Motion, approve the recommended
letter of Request to Assemblyman Nestande and Senator Emmerson. Motion was
seconded by Benson and carried by a 5-0 vote.
XV. CONTINUED BUSINESS
None
XVI. OLD BUSINESS
None
XVII. PUBLIC HEARINGS
A. CONSIDERATION OF AN APPEAL TO A DECISION OF THE PLANNING
COMMISSION, DENYING A CONDITIONAL USE PERMIT TO OPERATE
A SHORT-TERM RENTAL LOCATED AT 44-600 SAN JOSE AVENUE
(APN 627-164-005), Case No. CUP 11-244 (Alan and Susan Parker,
Applicants/Appellants).
Assistant Planner Missy Wightman stated this was an appeal of the Planning
Commission decision for a short-term rental at 44-600 San Jose Avenue. On
April 14, 2011, the City Council approved Zoning Ordinance Amendment
1223, revising standards for short-term rental. On July 19, 2011, the
Planning Commission voted 3-2 to deny the first proposed short-term rental
under the revised Ordinance. On August 2, 2011, the Planning Commission
adopted the Resolution of Denial. She said no public comment was received
in response to the 42 legal notices mailed July 1, 2011, to neighbors within
300 feet of the proposed property. At the public hearing, one neighbor spoke
in opposition due to trash being left at the curb prior to pick up, noise, and
additional cars from guests of the property owner. The Applicant was absent
from the Planning Commission meeting and unable to respond to the
complaint. Police researched records going back two years prior and there
have been no calls on this property. Additionally, Code Compliance
researched their records and found no calls on this property for the past six
years. She said the property is located on the northwest corner of San Jose
Avenue and De Anza Way. She said this was a consideration of a
Conditional Use Permit (CUP) to operate a short-term rental in a non -gated
Single -Family Residential Zone. The General Plan land use designation is
Medium Density Residential, the Zoning is Residential Single Family as well
as all the surrounding properties. Part of the Zoning Ordinance Amendment
requires a 24-hour contact, and the Applicant did have a Property
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Management Company called McLean Company Rentals for the neighbors
to call if there's a problem with this house. The Applicant also complies with
some of the more major issues like the minimum three-day rental occupancy.
She said this four bedroom home allows for eight overnight guests maximum
with four on -site parking spaces available. The remainder of the contract is
in compliance with the Zoning Ordinance Amendment. Responding to
question, she confirmed a three-day rental meant a two -night stay. She
displayed photographs of the two-story house, which is kept in clean
appearance. She said the Applicant provided a site plan, which shows the
lot is 10,620 square feet and the total square footage for the two floors is
1,785. She said when staff formulates their recommendation to the City
Council, it takes into consideration the number of people who spoke in
opposition or in favor. She said there was one person that spoke in
opposition out of the 42 notices that were sent out. Additionally, they look at
police and code compliance reports, and in this case, there was no indication
of calls on the property. She said the Applicant is in complete compliance
with the Zoning Ordinance Amendment that was approved; therefore, staff
recommended approval of the appeal of the Planning Commission denial of
the Conditional Use Permit for a short-term rental at 44600 San Jose
Avenue, Palm Desert.
Mayor Benson asked if at the time the complaint was filed, if the Applicant
already had a contract with the property management.
Ms. Wightman deferred the question to the Applicant.
Mayor Benson declared the public hearing open and invited public testimony
FAVORING or OPPOSING this matter.
MS. SUSAN PARKER, Applicant, stated she didn't want to rent her home,
but is doing so because of the current economic situation. She said they've
lived there ten years, and it's their second home. She and her husband work
in Santa Monica and have another home there, but the home in Palm Desert
is what they work for. She said her husband is in construction and has done
all the maintenance on the home and continues to do it; therefore, they
continue to be part of this house, which is why they are applying for a
short-term rental as opposed to a long-term rental. She said they need help
on the rental, because of the horrible mortgage and the effects this economy
has had on their business. She said her kids are in college, the house is
empty, and they need the additional income, so it just seemed like the logical
thing to do. With regard to trash being left out, she said they never leave
trash behind, she always takes it back with herto Santa Monica, and the only
noise coming from her house is from her children playing in the pool. She
called upon the McLean Property Management to help with the property and
signed a contract in July, but she has never rented the house out as this is
a brand-new endeavor for her. She has had friends and family who come
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over from Europe to stay at the house. She said the Property Management
Company will screen the renter thoroughly, because she is very particular.
She asked the City Council for its approval, because this would be a means
to an end.
MR. PAUL GREEN, McLean Property Rentals in Palm Springs, stated they
worked with the cities of Palm Springs, Rancho Mirage, and La Quinta on
developing the Vacation Rental Ordinance. He said they screen all the
renters, they are on call 24/7, and if there is a complaint of noise, too many
vehicles, etc., they are required to respond within 45 minutes. He said it was
his understanding that the person who complained about the trash and
noise, there was no one using the property at that time. What they do as a
rental company, they screen renters, collect the rent, inspect the property
before and after the stay, and respond to any problem at that time. He said
their business card is given to all the neighbors, but they have not rented this
property yet, because they wanted to make sure it was approved by the City
before it started renting it out.
Councilman Kroonen asked staff how many requests have been received by
the City to go through the CUP process.
Ms. W ightman answered ten since the new process was adopted in May, but
there were some that were grandfathered.
Councilmember Harnik stated she recalled the Ordinance would be reviewed
in six months to see how many people applied for a CUP.
Ms. Aylaian agreed, stating staff is preparing to come back to the Council in
October with an update on how many people have applied and how many
have been grandfathered along with feedback received going through the
process.
Mayor Benson asked whether this property was under the rental service
when the Planning Commission denied the CUP.
The Applicant signaled that it wasn't.
With no further testimony offered, MayorBenson declared the public hearing closed.
Councilmember Harnik stated she supported the short-term rental, because
the last thing the City wanted was foreclosed homes. She knew the City of
Rancho Mirage had done an ordinance, which she would like to take a look
at and discuss in October. She felt it was important the City made it possible
for people to get a CUP, but the Ordinance needs to include teeth where it
can issue fines for noncompliance or violations. She said people will go
underground if it's made difficult to obtain a CUP. She believed it was
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important to get people registered so that the City was able to watch and
track short-term rentals. She would appreciate staff looking into ways that
teeth can be put into the Ordinance. She said the short-term renters on her
street have never been a problem, but understood that was not everyone's
experience.
Councilmember Harnik moved to, waive further reading and adopt Resolution No.
2011 - 83, granting the Appeal and approving Conditional Use Permit No. 11-244, subject
to conditions. Motion was seconded by Spiegel.
Councilmember Finerty stated the Statement of Use included in the staff
report indicates that for two nights for a four -bedroom house it has the
potential for eight overnight guests. She said parking would be an issue for
her, because if everybody on the street did the same, it will destroy the
residential integrity of the neighborhood. She has always been and will
continue to be opposed to short-term rentals. The letter received from
Sabine Gaedt states, "Allowing a neighbor to turn their second home into a
short-term rental will threaten the integrity of our neighborhood." She
understood it was tough times for everyone, but it was important to keep the
character of the neighborhood that everybody bought under and wasn't to
turn it into a short-term rental or second units in the back yard. Therefore,
she would be voting NO. She wished the Applicant luck with her financial
position.
Councilman Kroonen concurred, stating he was concerned this was a
residential community and people bought their home under the premise that
they would have quiet solitude and not be invaded. He complimented the
work of Code Enforcement, because when he's brought issues to them, they
have been cooperative and productive in bringing about resolution. He is not
the least bit interested in seeing Palm Desert become known as the
short-term rental capital of the world. He pointed out this issue has gone
through the Planning Commission, which on a majority vote turned it down.
Mayor Benson noted other people who have second homes in Country Clubs
have been turned down that wanted to rent their home, but using the
economic downturn as a reason to do so. She was against turning
neighborhoods into rentals, because the City had rental places and hotels.
She said the Planning Commission looked at this case first and her vote will
also be NO.
Councilmember Harnik commented she'd rather see a few renters in her
neighborhood than a foreclosed home.
Mayor Pro Tern Spiegel stated Palm Desertwas a resortarea, which couldn't
be denied, and there are people that have purchased homes in the resort
area to make them financially stable and eventually retire to them, but they
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are living in Los Angeles or San Diego. He said there is approximately
$200,000 in hotel occupancy tax that the City was not getting, which is the
reason he wanted to put teeth in the Ordinance; otherwise, people will
continue to rent their home and go underground.
Councilman Kroonen pointed out that when this issue was being considered
in the spring, he suggested a provision that it be for more than two nights,
which is where the problem is created as far as he was concerned. He said
that suggestion was declined by the majority of the Council, but he continues
with his position that two nights was just too short.
Councilmember Finerty concurred, stating the minimum for a homeowner
association was 30 nights, and it was for the exact same reason, when
people buy into an area/place, they are expecting a certain type of
atmosphere. However, when you open it up to short-term rentals, it
becomes an entirely different atmosphere.
Mayor Benson called for the vote, and the motion FAILED on a 2-3 vote, with
Finerty, Kroonen, and Benson voting NO.
B. REQUEST FOR APPROVAL OF THE REALLOCATION OF COMMUNITY
DEVELOPMENT BLOCK GRANT (CDBG) FUNDS PREVIOUSLY
AWARDED TO FAMILY YMCA OF THE DESERT AND REMAINING
UNSPENT FUNDS FROM PREVIOUSLY FUNDED CDBG
PROGRAMS/PROJECTS FOR FISCAL YEAR 2011-2012 TO
RANCH RECOVERY CENTER.
Ms. Riddle stated the subject request is to ask the Council to approve
reallocation of the Community Development Block Grant to the Ranch
Recovery Center. She said Housing and Urban Development (HUD) notified
the City of their concern with the Family YMCA for monitoring. She said
HUD's focused for CDBG is for abused, neglected, and homeless.
Mayor Pro Tern Spiegel asked who made the recommendation to reallocate
the funds to the Ranch Recovery Center.
Ms. Riddle answered she made the decision based on the application and
information provided. Further responding, she explained that the YMCA was
going to use their funds for Capital Improvement to replace doors and
flooring, etc., that equaled $28,000. She said previously capital improvement
projects didn't have to track and monitor the users of the facility, but now
HUD requires that regardless of the type of project, 51 % or more of the users
of that facility need to be low income. She said the YMCA does not have
participants fill out self -certification forms, and after talking to them, she
confirmed they did not undertake that kind of tracking nor did they believe
they could get 51 % or more low-income participants at that facility. She said
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the City has funded the Ranch Recovery Center in the past, and they have
always had more than 51 % low income participation at their facility. Further
responding, she said the Recovery Center is located in Desert Hot Springs.
Mayor Benson declared the public hearing open and invited anyone who wished to
come forward to speak on the matter to do so at this time. With no testimony
offered, she declared the public hearing closed.
Mayor Pro Tern Spiegel moved to, by Minute Motion, approve the reallocation and
reprogramming of CDBG funds in the amount of $29,253.87 to Ranch Recovery Center.
Motion was seconded by Finerty and carried by a 5-0 vote.
XVIII. REPORTS AND REMARKS
A. CITY MANAGER
City Manager Meeting Summaries for the Period of August 17 - 30,
2011.
Mayor Benson noted that the City Manager's Meeting Summaries
indicated that she participated in a meeting with him on August 19;
however, she was not in the office that day. It was only with the
Mayor Pro Tern and City Attorney on August 19.
With Council concurrence, the report was received and filed.
2. Consideration of Pending Legislation - Assembly Bill 1275 and
Assembly Bill 450.
Mr. Wohlmuth asked for City Council's consideration of adding an
item to this agenda, having to do with sending letters of
opposition/amendment on the aforementioned Assembly Bills. He
said this was an urgency matter, because the City was notified that
the Legislature was considering these matters after the 72-hour
posting requirement for the agenda.
On a motion by Finerty, second by Spiegel, and 5-0 vote of the City Council, the
aforementioned Assembly Bills were added to this agenda.
Mr. Wohlmuth explained that Assembly Bill 1275 would change the
validation process for Redevelopment and for establishing or
amending Project Areas. It would prevent the City from validating
new Project Areas in Redevelopment, as it did with Project Area No. 4
a number of years ago. Responding to question, he said staff was
asking for direction to draft a letter of opposition for AB 1275. On
AB 450, staff was seeking direction to draft a letter of opposition
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unless the Bill was amended; it deals with Housing Funds and
Palm Desert's ability to retain funds for deferred maintenance of
existing Housing stock.
Upon a motion by Spiegel, second by Finerty, and 5-0 vote of the City Council, staff
was directed to draft and send to Legislators: 1) A letter of opposition regarding
Assembly Bill 1275; 2) a letter of opposition unless Assembly Bill 450 is amended.
Mr. Wohlmuth advised that staff would be contacting Assemblyman
Nestande first thing in the morning and have the draft letters sent to
his office.
3. Local Power Outage Report
Mr. Wohlmuth said he'd been notified that there is a reported power
outage in the area. It was impacting all of San Diego and Orange
Counties, the Cities of La Quinta and Indio in the Imperial Irrigation
District (IID) Electrical Service Area, which also includes a portion of
Palm Desert in the area of Washington Street - Interstate 10. Upon
inquiry, he said it appeared that Southern California Edison's Service
Area was not affected at this time.
B. CITY ATTORNEY
►h=
C. CITY CLERK
Reminder of 2"d Regular City Council Meeting in September to Be
Held Thursday, September 29, 2011, at 3:00 p.m.
Councilmembers took note of the reminder.
2. Consideration of Request to Appoint Voting Delegate and Alternate
for the National League of Cities Annual Business Meeting on
Saturday, November 12, 2011, at the National Congress of Cities and
Exposition in Phoenix, Arizona.
Upon Ms. Klassen's explanation of the request, Councilmembers
indicated no one was interested.
No action taken.
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D. PUBLIC SAFETY
Fire Department:
None
2. Police Department:
None
E. MAYOR AND MEMBERS OF THE CITY COUNCIL
City Council Requests for Action:
a) Plastic Bags — Councilman Kroonen hoped to see in the not -
too -distant future a discussion about the prospect of helping
the environment by controlling the use of non -disposable
plastic bags. Right now it was a general concept in his mind,
but he would like to see the City move in that direction.
Mr. Wohlmuth said staff would bring back a report on the
matter. He commented that several cities ban plastic bags,
and staff will look at those regulations to see how they may be
adapted for Palm Desert.
Councilmember Harnik requested not only looking at cities that
have banned the plastic bags, but those that have also come
up with programs to reward the use of reusable bags. She
asked to look at all facets of those types of programs.
2. City Council Consideration of Travel Requests and Reports:
a) Mobility 21 Conference — Councilmember Harnik reported she
attended the subject Conference, which addressed
transportation and infrastructure issues in Southern California.
She said it was very helpful, and she attended some sessions
regarding bicycle use and how it could be implemented in the
City. She also attended some sessions on the integration of
technology into transportation services.
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b) League of California Cities Annual Conference —
Councilmember Harnik noted that she would be attending the
Annual Conference in a couple of weeks and would report
back on her activities at the next meeting.
3. City Council Committee Reports:
a) Housing Commission Meeting - Mayor Pro Tern Spiegel said
he attended the Commission Meeting this week on behalf of
the Mayor. He reported that the Catalina Gardens property
was evidently over -planted as reported by two people, which
he has already conveyed to Landscape Manager Spencer
Knight, who was going to check on the matter.
4. City Council Comments:
a) Shelter From The Storm — Mayor Pro Tern Spiegel reported
that on the final intake report from the Shelter, a total of 626
people were served, 223 from the City of Palm Desert.
5. Suggested Items for Future City Council Meeting Agendas:
Please refer to Item E-1(a) regarding a request for future
consideration.
XIX. ADJOURNMENT
On a 5-0 vote of the City Council, Mayor Benson adjourned the meeting at 6:21 p.m.
ATTEST:
RACHELLE D. KLASSEN, CITY CLERK
CITY OF PALM DESERT, CALIFORNIA
JEAN M. BENSON, MAYOR
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