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HomeMy WebLinkAboutPreliminary Minutes - City Council 04/12/2012PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING THURSDAY, APRIL 12, 2012 CIVIC CENTER COUNCIL CHAMBER 73510 FRED WARING DRIVE, PALM DESERT, CA 92260 CALL TO ORDER - 3:00 P.M. Mayor Spiegel convened the meeting at 3:00 p.m. He stated that Mayor Pro Tern Kroonen would not be present for the meeting today, because he was serving on the Selection Committee interviewing potential candidates to be the new President of College of the Desert to replace Jerry Patton, who was retiring at the end of this school year. II. ROLL CALL Present: Absent: Councilmember Jean M. Benson Mayor Pro Tern William R. Kroonen Councilmember Cindy Finerty Councilmember Jan C. Harnik Mayor Robert A. Spiegel Also Present: John M. Wohlmuth, City Manager David J. Erwin, City Attorney Justin McCarthy, Assistant 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 Mark Greenwood, Director of Public Works Frankie Riddle, Director of Special Programs Stephen Y. Aryan, Risk Manager John Rios, Battalion Chief, Palm Desert Fire/Riverside Co. Fire Dept./Cal Fire Bill Sullivan, Asst. Chief, Palm Desert Police/Riverside Co. Sheriff's Dept. Grace L. Mendoza, Deputy City Clerk 111. ORAL COMMUNICATIONS - A (CLOSED SESSION ITEMS) None PRELIMINARY MINUTES GRAFT REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 12, 2012 IV. ADJOURN TO CLOSED SESSION Request for Closed Session: A. Conference with Real Property Negotiator pursuant to Government Code Section 54956.8: 1) Property: APN 628-120-011 Negotiating Parties: Agency: John M. Wohlmuth/Lauri Aylaian/City of Palm Desert Property Owner: Robert S. Rocke Under Negotiation: x Price x Terms of Payment 2) Property: 47445 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 3) Property: 13,120 Square -foot Portion of Frontage Road Adjacent to Highway 74 and APN 627-231-017, Palm Desert Negotiating Parties: Agency: John M. Wohlmuth/City of Palm Desert Property Owner: Fred Fern and David Fletcher/Chartwell Properties Under Negotiation: x Price x Terms of Payment B. Conference with Legal Counsel regarding existing litigation pursuant to Government Code Section 54956.9(a): 1) City of Palm Desert v. Waldemar and Barbara Azbill, Riverside County Superior Court Case No. INC 1104212 C. Conference with Legal Counsel regarding significant exposure to litigation pursuant to Government Code Section 54956.9(b): Number of potential cases: 2 On a motion by Harnik, second by Finerty, and 4-0 vote of the City Council, with Kroonen ABSENT, Mayor Spiegel adjourned the meeting to Closed Session at 3:02 p.m. He reconvened the meeting at 4:00 p.m. 2 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 12, 2012 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 Robert A. Spiegel VII. INVOCATION - Councilmember Jean M. Benson VIII. ORAL COMMUNICATIONS - B A. PRESENTATION OF ANIMAL ADOPTION FEATURE. None B. MR. BRETT ROMER, President of the Historical Society of Palm Desert, stated he was here today, along with several colleagues from the Historical Society, to thank City Councilmembers individually and collectively for supporting their organization for many years. He said their primary function was to amass historical data, and they are recognized throughout the Coachella Valley and beyond fortheir extensive archives, which are available to and used by local media, as well as university researchers and high school students. He added that professional researchers have commented on the quality of the Historical Society's archives, a direct result of Member Ginny Folkers' many hours of work. He then displayed a photograph of the Historical Society's building shortly after it was built in 1951 as the City's (unincorporated at that time) first fire station. He followed with another picture of the site taken yesterday afternoon by a local resident, very colorful with a dramatic backdrop of the weather front that moved through the area. Additionally, the Historical Society maintains a Museum that is open to local residents and visitors alike at no cost. While the City's history is relatively short, it is interesting and entertaining. Visitors are treated to an aerial history of the area in the former living room of the original fire station, and in the barracks area, there is a pictorial history of Palm Desert's people. There are also some outstanding aerials of the Valley, covering geology of the area — photos showing the fault lines and flood plains. He said time is spent with visitors addressing water as it pertains to the desert environment; and there is a very instructive display created by the Coachella Valley Water District. Further in the apparatus bays, there is an outstanding display of fire equipment from the 1700s through present-day, and this exhibit is on long- term loan from Fire Memories Museum, which the Historical Society is 3 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 12, 2012 working with closely to make some additions. Lastly, he highlighted the two educational children's programs offered; one is going on currently where all Palm Desert Schools' 2"d Grade classes are invited to the Museum, and the City of Palm Desert's support allows payment of their transportation, where students are introduced to all of the aforementioned history and topics of interest. He said the children were very excited to participate, and it was what made the time worthwhile for all who work with the Historical Society. In the fall, along with the Fire Department, the Society goes to each Palm Desert School to put on a Mini -Muster for V Graders, an outstanding program where students get to view and explore the firefighting equipment, practice firefighting skills, and learn safe behavior around a fire. More importantly, everyone goes inside at the end of the day where the lights are dimmed, and two firefighters in full gear crawl around through the students, allowing them to become familiarwith sounds of the breathing apparatus and appearance of the firefighters as a good sign and not something to fear. He invited Councilmembers to come out to one of the Mini -Musters, because it was a great program. He said all of the above could not be accomplished without the many volunteer hours of their members and financial support of the City. While they conduct several fund-raisers, they are not adequate to accomplish all that they do, and he again, on behalf of the Historical Society, its members, volunteers, visitors, and especially all the children served each year, thanked the City for its support. IX. AWARDS, PRESENTATIONS, AND APPOINTMENTS A. PRESENTATION OF PROCLAMATION DECLARING APRIL 2012 AS "CHILD ABUSE PREVENTION MONTH" IN THE CITY OF PALM DESERT. On behalf of the City Council, Mayor Spiegel presented the proclamation to a representative of Prevent Child Abuse Riverside County, who graciously accepted and provided the following remarks and statistics. She said Prevent Child Abuse Coachella Valley was the local Child Abuse Council, with the month of April being celebrated for preventing child abuse since its first Presidential Proclamation in 1983. Numerous individuals, organizations, private and governmental agencies join together in April each year to raise public awareness of this issue and its prevention. The blue ribbon is the national symbol to remember every child that has suffered and died due to neglect and abuse and in support of efforts to prevent them. In 1989 the blue ribbon campaign to prevent child abuse began as a Virginia grandmother's tribute to her grandson, who died as a result of abuse. Everyone was encouraged to pin a blue ribbon on their lapel, dress, car, or anyplace where it will serve to remind others that child abuse can be prevented, and she encouraged all to join the City Council in focusing on the care and protection of our most valuable asset - our children. According to Prevent Child Abuse America, in 2001 the United States spent $258 million each day as a direct or indirect result of abuse or neglect of our nation's CI PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 12, 2012 children. The annual costs of child abuse are equivalent to $1,461.66 per family in the United States. During the month of April and specifically on the 14th, the "Day of the Young Child" will be celebrated in Coachella. Speakers on child abuse prevention are always available forgroups, and the Coachella Valley Council promotes "it Happens to Boys" campaign and annual conference, positive discipline training for parents and professionals, advocacy for child abuse prevention, and All -Desert Wellness Centers focuses its efforts locally on helping children who've been abused. She urged all to call Prevent Child Abuse Coachella Valley at (760) 862-5630 for further information, and to report child abuse, call the County's toll -free number: 800-442-4918. She provided City Councilmembers with a supply of blue ribbon lapel pins and keychains in remembrance of the month -long cause. B. PRESENTATION OF PROCLAMATION DECLARING APRIL 2012 AS "DMV/DONATE LIFE CALIFORNIA MONTH" IN THE CITY OF PALM DESERT. On behalf of the City Council, Mayor Spiegel presented the proclamation to Mr. Miles & Mrs. Sylvia Kay, Palm Desert, who are ambassadors for Donate Life California. Mrs. Kay is both a liver transplant recipient in 2001 and a kidney recipient in 2009. Mr. & Mrs. Kay thanked the City Council for the proclamation recognizing this month -long campaign. Mr. Kay said it was evident how important organ donation was to his family, along with the 112,000 people waiting. He said the proclamation just read aloud specified "nearly nine million Californians;" but today he was proud to announce that there are now nine million registered in California. Mr. Kay went on to report that in 2006 there were 65 million registered donors, and the country set a goal to reach 100 million, which was achieved in October 2011. California registered eight million of the 35 million necessary to reach the goal. He added that they were also very proud of the work of California's Department of Motor Vehicles Employees in partnership with Donate Life California, as DMV now signs up 94% of all people registered. He called attention to the t-shirts he and Mrs. Kay were wearing, announcing the new goal of 20 million registrants in 2012, with one million more being registered in California since the goal of 100 million was reached. He asked everyone to pause and honor the 20 people who would pass away today waiting for an organ and who pass away each and every day while they wait. They presented a supply of "Donate Life" pins and business cards that state, "Pass It On - Save a Life. Are you a Donor?," and how to become one. Mr. Kay announced and invited everyone to the 101h Annual Run/Walk Family Festival - Donate Life in Fullerton, CA, on Saturday, April 28. He sincerely thanked the City Council for its efforts on their behalf. 9 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 12, 2012 X. CONSENT CALENDAR A. MINUTES of the Regular City Council Meeting of March 22, 2012. Rec: Approve as presented. B. CLAIMS AND DEMANDS AGAINST THE CITY TREASURY - Warrant Nos. 209, 210, 216, 217, 221, and 222. Rec: Approve as presented. C. COMPLIANCE ANALYSIS AND INVESTMENT REPORTS for the Months of December 2011, January2012, and February2012 (Joint Consideration with the Successor Agency to the Palm Desert Redevelopment Agency). Rec: Receive and file. D. CITY COMMITTEE AND COMMISSION MEETING MINUTES. 1. Art in Public Places Commission Meeting of January 18, 2012. 2. Audit, Investment & Finance Committee Meetings of January 24 and February 28, 2012. 3. Library Promotion Committee Meeting of October 5, 2011. 4. Marketing Committee Meeting of February 28, 2012. 5. Parks & Recreation Commission Meeting of February 7, 2012. 6. Public Safety Commission Meeting of February 8, 2012. Rec: Receive and file. E. LETTER OF RESIGNATION from Rick E. Lebel - Public Safety Commission. Rec: Receive with very sincere regret. F. SINGLE AUDIT of Federally Assisted Grant Programs for the Fiscal Year Ended June 30, 2011. Rec: Receive and file. PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 12, 2012 G. REQUEST TO EXERCISE Option to Continue the Contract with White Nelson Diehl Evans, LLP, to Perform Auditing Services for the City of Palm Desert and its Entities for the Fiscal Years Ending June 30, 2012, 2013, and 2014 (Contract No. C27544). Rec: By Minute Motion, that the City Council exercise the option to continue subject contract with White Nelson Diehl Evans, LLP, Irvine, California, to perform auditing services for the City of Palm Desert and its entities for the fiscal years ending June 30, 2012, 2013, and 2014. H. REQUEST FOR APPROVAL of Change Order No.1 to Contract No. C30630 with Pinnacle Landscape Company for Landscape Maintenance Area 4 in the Amount of $6,286 (Project No. 904-11). Rec: By Minute Motion: 1) Approve Change Order No. 1 in the amount of $6,286 to the subject contract with Pinnacle Landscape Company, Santa Ana, California, for Landscape Maintenance Area 4; 2) authorize the Mayor to execute said Change Order No. 1 - funds are available in Account No. 110-4614-453-3370, R/M Medians. REQUEST FOR APPROVAL to Increase Plan Review/Inspection Service Contracts (Contract Nos: C30940A and C30940B). Rec: By Minute Motion, authorize an additional amendment of $30,000 related to professional service agreements with Scott Fazekas & Associates, Irvine, California (Contract No. C30940A), and Willdan Engineering, San Bernardino, California (Contract No. C3094013) -this action would amend the prior authorized amount not to exceed $60,000 cumulativelyfor Plan Review and Inspection Services forthe remainder of fiscal year 2011-2012; funds are available in General Fund Account No. 110-4420-422-3010 as set forth in the 2011/2012 budget. 7 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 12, 2012 J. REQUEST FOR AWARD OF CONTRACT to Simon Contracting for Construction of the Citywide Drywell Removal Project in the Amount of $38,110 (Contract No. C31420, PROJECT NO. 500-12). Rec: By Minute Motion: 1) Award subject contract for Construction of the Citywide Drywell Removal Project to Simon Contracting, Indio, California, in the amount of $38,110; 2) authorize the Director of Finance to set aside an additional 10% contingency in the amount of $3,811; 3) authorize the Mayor to execute the subject agreement - funds are available in General Fund Account No. 420-4291-433-4001, Drainage/Nuisance Water Mitigation. Upon a motion by Finerty, second by Benson, and 4-0 vote of the City Council, with Kroonen ABSENT, the Consent Calendar was approved as presented. XI. CONSENT ITEMS HELD OVER None XII. RESOLUTIONS None XIII. ORDINANCES A. For Introduction: None B. For Adoption: ORDINANCE NO. 1237 - AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, AMENDING CHAPTER 2.52 OF THE PALM DESERT MUNICIPAL CODE BY DELETING SECTION 2.52.300 - TYPES OF APPOINTMENT AND SECTION 2.52.305 - DEFINITION OF EMPLOYMENT TYPES, IN THEIR ENTIRETY, AND REPLACING THEM WITH SECTION 2.52.300 - TYPES OF EMPLOYMENT AND SECTION 2.52.305 - DEFINITION OF EMPLOYMENT TYPES. Human Resources Manager Lori Carney noted a red -lined replacement document, which included non -substantive changes and clarifying language was provided to the City Council on this item. 1.1 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 12, 2012 Councilmember Harnik moved to waive further reading and adopt Ordinance No. 1237 as presented, including the clarified language provided. Motion was seconded by Benson and carried by a 4-0 vote, with Kroonen ABSENT. 2. ORDINANCE NO. 1238 - AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, APPROVING A ZONING ORDINANCE AMENDMENT TO PALM DESERT MUNICIPAL CODE SECTION 25.70.020 - MEMBERSHIP - TO INCREASE THE NUMBER OF ARCHITECTURAL REVIEW COMMISSIONERS FROM SEVEN TO NINE, Case No. ZOA 12-57 (City of Palm Desert, Applicant). Councilmember Harnik moved to waive further reading and adopt Ordinance No. 1238. Motion was seconded by Benson and carried by a 4-0 vote, with Kroonen ABSENT. XIV. NEW BUSINESS A. REQUEST FOR APPROVAL OF ARTWORK SELECTIONS AND ALTERNATES FOR THE 2013/2014 EL PASEO INVITATIONAL EXHIBITION (CONTRACT NOS. C31730 A-R). Mayor Spiegel stated the artwork on El Paseo is changed every two years. Public Arts Coordinator Deborah Schwartz noted the staff report and offered to answer any questions. Councilmember Harnik stated she loved the entire selection. Councilmember Finerty commented that a picture was worth a thousand words. Councilmember Finerty moved to, by Minute Motion: 1) Approve the eighteen sculptures and two alternates selected for the 2013/2014 El Paseo Invitational Exhibition; 2) approve honorariums of $2,575 for each of the participating artists - funds will be available in Account No. 436-4650-454-4002 in Fiscal Year 2012/2013. Motion was seconded by Harnik and carried by a 4-0 vote, with Kroonen ABSENT. 9 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 12, 2012 B. REQUEST FOR APPROVAL OF THE 2012 SUMMER CONCERT SERIES SCHEDULE, PERFORMING ARTS CONTRACTS, AND EXPENDITURES. Ms. Riddle stated that after speaking to Mr. Lake from Palm Desert High School, she was informed he was not able to gather the troops to participate in the Summer Concert Series. Originally, they were listed to perform on May 31; however, they will not be able to participate. Therefore, there will be performances on June 7, 14, and 21, and culminating with the July 4th event. Councilmember Finerty moved to, by Minute Motion: 1) Approve the 2012 Summer Concert Series schedule; 2) approve Contract No. C31740B, with the band Nitro Express in the amount of $1,200; 3) approve Contract No. C31740C, with the band Southbound in the amount of $1,000; 4) approve Contract No. C31740D, with the band Vanity Fair in the amount of $2,000; 5) approve expenditure with Studio Instrument Rentals (SIR) of Palm Springs for concert professional staff, instrumental equipment, sound, and/or lighting in conjunction with the concerts; 6) approve five percent fee with Gigmasters online website for booking services of selected bands in the amount of $210; 7) authorize the Mayor to execute subject contracts - funds are available in Account No. 110-4416-414-3061, with the exception of Contract No. C31740A with Palm Desert High School, because it was unable to perform on the specified date. Motion was seconded by Benson and carried by a 4-0 vote, with Kroonen ABSENT. C. REQUEST FOR APPROVAL OF THE PERFORMING ARTS CONTRACT AND PYRO SPECTACULARS FIREWORKS DISPLAY CONTRACT IN CONJUNCTION WITH PALM DESERT'S INDEPENDENCE DAY CELEBRATION, WEDNESDAY, JULY 4, 2012. Mayor Spiegel asked about the cities of Rancho Mirage and Indian Wells participation in the cost of this event and suggested sending a letter to the respective Mayors and asking them to respond. Mr. Wohlmuth pointed out Rancho Mirage has participated the last few years and continues to do so, but staff will check with them to make sure they budget for it and seek to get Indian Wells participation as well. Mayor Spiegel suggested staff talk to Mayor Hanson, who he believes would be happy to participate. Responding to question, Ms. Riddle confirmed Pyro Spectaculars is the vendor used by the City. Councilmember Harnik stated this vendor did a great job and hoped the other cities will participate. 10 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 12, 2012 Ms. Riddle agreed to seek and encourage Rancho Mirage and Indian Wells to participate this year. Councilmember Finerty moved to, by Minute Motion: 1) Approve Contract No. C31750A, with Pyro Spectaculars by Souza, Rialto, California, in the amount of $36,000 for professional staff, pyrotechnic supplies, and services for Palm Desert's 2012 Independence Day Celebration; 2) Approve Contract No. C31750B, with Swing Cats Big Band, Yorba Linda, California, in the amount of $3,650 to provide instrumental and vocal entertainment for Palm Desert's 2012 Independence Day Celebration; 3) Approve expenditure with Studio Instrument Rentals (SIR) of Palm Springs for concert professional staff, instrumental equipment, sound, and/or lighting in conjunction with the concert; 4) Approve five percent fee with Gigmasters (online website) for booking service of selected band in the amount of $182.50; 5) Authorize the Mayor to sign subject contracts - funds are available in Account No. 110-4416-414-3061. Motion was second by Harnik and carried by a 4-0 vote, with Kroonen ABSENT. XV. CONTINUED BUSINESS None XVI. OLD BUSINESS None XVII. PUBLIC HEARINGS A. REQUEST FOR ADOPTION OF RESOLUTION NO. 2012 - 23 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, VACATING A PORTION OF THE FRONTAGE ROAD ALONG THE EAST SIDE OF HIGHWAY 74 AS PART OF THE APPROVED HOTEL AND CONDOMINIUM PROJECT KNOWN AS ROSEWOOD, UNDER PROVISIONS OF DIVISION 9, PART 3, CHAPTER 4 OF THE STREETS AND HIGHWAYS CODE OF THE STATE OF CALIFORNIA (PDH Partners, LLC, Applicant). Principal Planner Tony Bagato stated his brief presentation will highlight the main points in his staff report. He displayed an aerial view of the project known as Rosewood, which was approved August 26, 2011. At the time of approval, staff showed a portion of the road in front of the project that would be eliminated for landscaping and decorative sidewalk. Under the Streets and Highways Code, the City is required to hold a separate public hearing for street vacations, but staff was prepared during the initial approval and indicated in their staff report of August 26 that the street vacation would be done at a later time. In addition, in the Development Agreement under General Provisions Section 1.4.6 of the Ordinance, it states the street vacation will not be recorded until building permits are issued. Therefore, 11 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 12, 2012 even though the hearing is happening today, the actual recording of the street vacation will not take place, and the City will maintain control of the frontage road. He displayed another aerial view that staff used during the presentation in August, which showed the overlay of the building footprint going over the existing frontage road, which is on the east side of Highway 74. He said the opening for the frontage road at Pitahaya will remain and will continue south for the existing residents up to the residential neighborhood. This item was presented to the Planning Commission, which is required to make a finding that it is consistent with the General Plan. He noted the staff report highlights several goals and policies from the General Plan, but they are not in any specific order, because they were taken specifically for this project. In conclusion, he said the Planning Commission approved the findings in February, staff will hold off on the street vacation until Building Permit Issuance, and the approved Development Agreement includes protection to the City from release of the street vacation. He noted the Applicant was present to provide a brief presentation. Mayor Spiegel declared the public hearing open and invited public testimony FAVORING or OPPOSING this matter. MR. MATTHEW JOBLON, Applicant Representative, thanked the Council for the opportunity to cover a few points. First, the request for Street Vacation is part of the Development Agreement and Tentative Map, which are already approved. Secondly, their goal is to build the project, and in order to do that, they have to go to the Capital Markets and raise the capital. In their early conversations with lenders and equity providers, it was clear no one would engage in any substantive conversations without this approval; therefore, it's an absolute prerequisite to have this approval in place. The agreement with the City for the frontage road is extremely equitable for the following reasons: 1) The City commissioned and appraised the land on their own and came up with a value for it, which the Applicant agreed to pay. Additionally, PDH Partners agreed to have that value be a floor of any value going forward. If PDH Partners ends up pulling building permits after one year, the land will be reappraised for the true market value; 2) PDH Partners will not take title to the land until building permits are pulled, and they won't be pulled until the project is fully capitalized; 3) In taking over the frontage road, it reduces the City's liability and maintenance costs; 4) The frontage road will help create a connection to El Paseo for a great experience. As part of this hearing, he invited Mr. Daniel B. MacDonnell who is the top hotel financier for high -end hotels in the west coast. He financed the Montage in Beverly Hills, SLS Hotel in Beverly Hills, The Four Seasons in Vail, Colorado, the Ritz -Carlton in Lake Tahoe, and many others. He invited Mr. MacDonnell to provide the Council with a quick update on the status of the capital markets, how they are evolving today, and why no one will engage with PDH Partners until they have this final approval. `M PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 12, 2012 MR. DANIEL B. MACDONNELL, Managing Director at Cushman & Wakefield Sonnenblick Goldman, stated he was invited to speak on the status of the Market in Hospitality Finance. He said on the positive side, the market has had six quarters of growth for hotels in the revenue side, stating the luxury product is actually leading that growth where there hadn't been any measurable increase in the last five years. He said new developments are being finance, but mostly infill, which was a good sign for the market, because that will migrate up to other products including luxury. However, the Market is very conservative today, and it's going to require the best brand and development team, which this project clearly has, but in addition, it's going to require all the approvals, third party reports, and entitlements to be in line and available so that building permits can be drawn quickly. He said when the financing becomes available, which he didn't know when that will happen for the luxury product, but it will happen. When that window becomes open, he will advise his clients to have all of those components in place so they can capitalize on it. MR. BOB HOFFMAN, Monterey Avenue, Palm Desert, stated he is the Chief Executive Officer for Cord Media, the largest advertising agency in the Coachella Valley, and their home is in Palm Desert. He said six years ago their company was built from three people, and it has grown to more than 35 in Palm Desert alone with satellite offices from Kansas City to Malibu. They know what progress, growth, and economic stability is, because they are living proof of it. The Rosewood complex is an economic engine to Palm Desert. Certainly, Rosewood will employ construction workers, buy construction supplies, hire employees to operate the facility, use local vendors to supply services,,and it will provide sales tax to the City, which will positively impact Palm Desert. What was most important to him was capturing those tourists that will sleep and eat in the community and give Palm Desert retailers the first shot at those tourism dollars. He said approval of this street vacation was the right thing to do. MR. TOM NOBLE, Joshua Tree Street, Palm Desert, stated he has appeared at all the previous hearings both at the Planning Commission and City Council. It was his understanding that vacation of this frontage road was an important part of the previous approval. He would hate to see another delay at this point and time, because he believed this hotel was very important to the City's economy. He has seen high -end shopping districts start falling apart, specifically Monterey Avenue in Santa Monica, and unless there is a new engine to pick it up, they go away. He said El Paseo was gaining strength, in fact, his neighbor who has been in business for 65 years just signed a 10-year lease on El Paseo and is very excited about the hotel, like so many others. He said the frontage road is of no value to the City; therefore, he was in favor of the vacation of the frontage road. 13 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 12, 2012 MS. BARBARA deBOOM, President CEO of the Palm Desert Chamber of Commerce, stated it was her understanding that Rosewood needs the parcel of land to finalize the funding for the hotel. She further understood the price determined at this hearing will last for one year. After that one year, if the land increased in value, that extra amount will be paid to the City. From a business standpoint, this was a win -win, and on behalf of the business community she urged the Council to approve this item. MR. FRED FERN, General Partner/Manager of the Shops on El Paseo, stated they have ten buildings on the street. He noted David Fletcher is the property manager and has been involved with the ownership. He shared he's been in the investment world for many years, has studied history, and today was the 151 Anniversary of the Civil War. He said the City needed its democracy for the wonderful job this Council has done in uniting to support a special project for this community. He said this project will bring x-dollars from both the retailers and hotel, and it will be good for everyone in the community. He said they have studied this project carefully, because, they don't want to tarnish the type of hotel or quality they can have, but everything pointed to first-class, and they strongly support the project. With no further testimony offered, Mayor Spiegel declared the public hearing closed. Councilmember Benson stated she didn't see a need for an approval at this time, because the Development Agreement states the City will vacate that land when it is purchased and they break ground, and the City's word was good. To say the land is needed to obtain financing was a stretch, because there was no financing out there for hotels at this time, and this hotel is not scheduled to be built, and no one knew when that will be. She said as long as it was in the Development Agreement, it served the purpose that the Applicant will have the frontage road when they need it and saw no need to change it beforehand. Councilmember Finerty concurred, stating the City knew what the appraisal price was, what the funding for the hotel is, and how that equates into hotel financier needing to have that was a bunch of bunk. She said the City had ten years for this project to be built if funding is available, and it can be addressed at that time. Councilmember Harnik said the staff report states, "This condition was placed into the Development Agreement to protect the City from losing control of the frontage road. The City will maintain ownership of the frontage road if the project is never built." She said the City had protection in place if something should not get done as quickly, and she has never seen a bank agree to lend money without the proper entitlements. She didn't believe it was the City's place to interfere with the ability for this development to go forward and the Applicant to do their business. As stated in the staff report, 14 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 12, 2012 under Land Use Element, "This project is an appropriate mix of commercial resort and other revenue -generating land uses that will continue to fund a high level of community development activities, services and facilities, in the City,"which includes public services and protection. She said the City was protected, and it shows the integrity that Palm Desert has always shown to step out of the way and allow these people to do their business. Having said that, she felt it was appropriate to continue the matter for two weeks in deference to Mayor Pro Tern Kroonen to allow him to vote on this matter. The same was done when Councilmember Benson was not able to vote back in July, when an item was continued to allow her to participate. Councilmember Harnik moved to, by Minute Motion, continue the public hearing to the meeting of April 26, 2012. Mayor Spiegel stated he has testified on this matter before to the participants on how important this project was to the City. He said Palm Desert lost Redevelopment and it cost the City $25 million this year. If the City doesn't work on ways to improve its revenue, police and fire services may have to be cut. The Council is currently reviewing next year's budget and it doesn't anticipate making cuts for police and fire, and he hoped it will continue indefinitely, but unless there are other ways of raising revenue, these services will be cut. Mayor Spiegel seconded the motion. Mr. Erwin asked the Mayor to re -open the public hearing and continue it, and noted that no one had left the building. Mayor Spiegel re -opened the public hearing. Mayor Spiegel called forthe vote, and the motion to continue the public hearing was UNSUCCESSFUL on a 2-2 vote, with Harnik and Spiegel voting Aye, Benson and Finerty voting NO, with Kroonen ABSENT. The matter still requires adjudication; therefore, it will continue to the April 26, 2012, meeting for this purpose. (Because the motion was unsuccessful, the public hearing is considered closed by operation of law.) Councilmember Harnik asked if the Council would be able to vote on it today if Mayor Pro Tern Kroonen should show up toward the end of this meeting. Mr. Erwin responded the item was still on the Agenda for today. 15 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 12, 2012 B. REQUEST FOR APPROVAL OF GENERAL PLAN AMENDMENT FROM RESIDENTIAL, HILLSIDE RESERVE (R-HR) TO OPEN SPACE -PUBLIC RESERVES (OS/PR), APN 628-120-001; CHANGE OF ZONE FROM PLANNED RESIDENTIAL - 5 (PR 5) TO PUBLIC INSTITUTION (P), APNs 694-160-003 AND 694-200-001; CHANGE OF ZONE FROM PLANNED RESIDENTIAL - 5 (PR 5) TO PLANNED RESIDENTIAL - 22 (PR 22), APNs 694-300-001, 694-300-005, AND 694-310-005; CHANGE OF ZONE FROM SINGLE-FAMILY/MOBILE HOME RESIDENTIAL (R-1-M) TO PLANNED RESIDENTIAL - 5 (PR 5), APN 620-400-028; CHANGE OF ZONE FROM HILLSIDE PLANNED RESIDENTIAL (HPR) TO OPEN SPACE (OP), APN 628-120-001, Case No. GPA and C/Z 12-76 (City of Palm Desert, Applicant). Principal Planner Tony Bagato stated the request is for one General Plan Amendment out of the four properties, and a Change of Zone for each of the four properties. He said due to the inconsistent land use and zoning that was partially done from the General Plan Amendment, staff was cleaning up some of the zoning and intended land use. He displayed Exhibits A-D, and described the individual changes to all four properties. Councilmember Finerty asked to vote on Exhibits A, B, D, and E, but consider Item 2/Exhibit C separately. Mayor Spiegel declared the public hearing open and invited public testimony FAVORING or OPPOSING this matter. With no testimony offered, he declared the public hearing closed. Councilmember Finerty moved to waive further reading and: 1) Adopt Resolution No. 2012- 24, approving a General Plan Amendment from Residential, Hillside Reserve (R-HR) to Open Space -Public Reserves (OS/PR), APN 628-120-001, Case GPA and C/Z 12-76; 2) Pass amended Ordinance No. 1239 to second reading, eliminating the current Exhibit C for Change of Zone from Planned Residential-5 (PR 5) to Planned Residential-22 (PR 22) (APNs 694-300-001, 694-300-005, and 694-310-005). Motion was seconded by Benson and carried by a 4-0 vote, with Kroonen ABSENT Mayor Spiegel stated the Council will now consider Exhibit C for Change of Zone from Planned Residential-5 (PR-5) to Planned Residential-22 (PR22) (APNs 694-300-001, 694-300-005, and 694-310-005). Responding to question, Mr. Bagato confirmed Exhibit C was one of the parcels that was identified and approved as part of the Housing Element, and as part of it, the City is required to rezone properties per the State to satisfy the Regional Housing Needs Allocation (RHNA) numbers. Mayor Spiegel declared the public hearing open and invited public testimony FAVORING or OPPOSING this matter. With no testimony offered, he declared the public hearing closed. 16 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 12, 2012 Councilmember Finerty stated she was against staff's recommendation to change the zone to PR-22. She said in the past the City used ranges for Medium and High Density, but changing to 22 units per acre from 5 units per acre was too much density for one specific sphere of the City. She was in favor of a continuance to have staff provide other options. Councilmember Harnik asked if this complied with the General Plan. Mr. Bagato stated the initial General Plan approved in 2004 did not anticipate this number of units at this location. It wasn't until the recent General Plan Amendment that staff had to identified specific properties under State law where it would accommodate future housing, which was a very high RHNA number. However, staff is in the process of updating that Housing Element again where the RHNA numbers are much lower. Therefore, staff can continue this matter in order for staff to research its options with the Housing Element Consultant and City Attorney. Further responding, he said the Housing Element was approved a few months ago, but it was two years late. He went on to say the General Plan has the property designated Planned Commercial Resort for potential timeshares or hotel. So, either way it was inconsistent with the current zoning, because the zoning is Residential. Councilmember Benson moved to, by Minute Motion, continue the Change of Zone for property listed in the aforementioned Exhibit C to a future date, including re -noticing, in order for staff to provide further research on potential zoning options. Motion was seconded by Harnik. Responding to question about the public hearing, Mr. Bagato stated the item will be re -advertised, because it changes the nature in scope. Mayor Spiegel called for the vote, and the motion carried by a 3-1 vote, with Spiegel voting NO and Kroonen ABSENT. XVIII. REPORTS AND REMARKS A. CITY MANAGER City Manager Meeting Summaries for the Period March 14-April 3, 2012. In answer to Councilmember Finerty's question about what had transpired during the meeting with Mountains Conservancy Director Kevin McKernain regarding the Conservation Easement requested by the City, Mr. Wohlmuth said that they are still looking into the issue. He advised them that the City's plan initially was to tackle the Redevelopment property (done earlier at this meeting) so in case it has to be disposed of as part of Redevelopment's elimination, it will 17 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 12, 2012 be zoned Open Space. Additionally, he informed Mr. McKernain that the City is interested in looking at Conservation Easements on the other property and indicated to him what he thought the management of those properties would entail. Mr. McKernain responded that he would talk to his Board and return to the City with an approximate cost for a Conservation Easement and Management/Monitoring Endowment. Further responding, he said Mr. McKernain felt it would be around $25,000 per five -acre parcel; however, that first has to be considered by the Mountains Conservancy Board, and he wasn't sure what their meeting schedule was so he didn't have an estimate of when it would come back to the Council. With City Council concurrence, the City Manager's Meeting Summaries were received and filed. 2. Request Formation of a Sub -Committee for Palm Desert Holiday Decor Inventory. Mr. Wohlmuth recalled for City Council that it requested a review of the City's Holiday Decorations for the coming year, and Mr. Aryan had been the staff person responsible for that project. Mayor Spiegel noted that both he and Councilmember Benson were on the subcommittee previously, and he suggested that they continue to do so. Councilmember Benson agreed and said she would volunteer again. In response to Councilmember Finerty's comment that Mayor Spiegel had been critical of the decorations, Mayor Spiegel replied that was the reason he asked for a review. With City Council concurrence, formed a subcommittee to review and make recommendations to modify the current Holiday Decor Inventory, appointing Councilmember Benson and Mayor Spiegel to serve on it. B. CITY ATTORNEY None C. CITY CLERK Announcement of Upcoming City Council Study Sessions (ACR): - Monday, April 23, 2012, at 10:00 a.m. - FY 2012-2013 Budget. - Thursday, April 26, 2012, at 2:00 p.m. - Coachella Valley Economic Partnership. Councilmembers took note of the upcoming schedule. PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 12, 2012 D. PUBLIC SAFETY 1. Fire Department None 2. Police Department None E. MAYOR AND MEMBERS OF THE CITY COUNCIL 1. City Council Requests for Action: None 2. City Council Consideration of Travel Requests and Reports: None 3. City Council Committee Reports: a) Public Safety Commission — Councilmember Finerty said at yesterday's meeting, discussion occurred having to do with Commissioner Lebel's resignation (Section X. - Consent Calendar, Item E on today's agenda), because he is now employed with the Morongo Valley Community Services District. She believed the Commission's bylaws specified that the position needed to be filled by someone with a fire department background, and she wondered if any had previously applied with such experience, if they should perhaps be interviewed, and an appointment made. Mayor Spiegel suggested having the City Clerk's Office provide a report on the current applications for Public Safety. Councilmember Harnik noted that City Council had interviewed someone with fire background in the interviews conducted earlier this year. With City Council concurrence, requested the City Clerk to look at how many applications were on file for Public Safety Commission and provide a report. Secondly from yesterday's Public Safety Commission, Councilmember Finerty reported that they discussed the 19 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 12, 2012 Sheriff's Department Budget, and they said what had really helped was that the facility rate dropped in half due to having solar panels out on the new Station located on Gerald Ford Drive. 4. City Council Comments: a) Riverside County Sheriff's Department Annual Awards — Councilmember Harnik said last Wednesday she attended the Countywide ceremony to recognize those who keep our community safe. She was pleased to report the following, adding that it was a banner day for Palm Desert: • Citizen's Award - Community Service to Joseph Di Bernardo, who safely helped Police apprehend a criminal. • Employee Award - Lifesaving to Investigator John Clark from the Palm Desert Station. • Special Class Award - Deputy Sheriff of the Year to Deputy David Jones of the Palm Desert Station. • Manager of the Year to Palm Desert Chief of Police Captain Kevin Vest. 5. Suggested Items for Future City Council Meeting Agendas: None XIX. ADJOURNMENT On a motion by Finerty, second by Benson, and 4-0 vote of the City Council, with Kroonen ABSENT, Chair Spiegel adjourned the meeting at 4:58 p.m. ATTEST: RACHELLE D. KLASSEN, CITY CLERK CITY OF PALM DESERT, CALIFORNIA ROBERT A. SPIEGEL, MAYOR 20