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HomeMy WebLinkAboutPreliminary Minutes - City Council 01/26/2012DRAFT PRELIMINARY MINUTES X$ REGULAR PALM DESERT CITY COUNCIL MEETING THURSDAY, JANUARY 26,, 2012 CIVIC CENTER COUNCIL CHAMBER 73510 FRED WARING DRIVE, PALM DESERT, CA 92260 1. CALL TO ORDER - 3:00 P.M. Mayor Spiegel convened the meeting at 3:00 p.m. Pursuant to legislation AB 23, City Clerk Rachelle Klassen announced forthe record that Members of the Palm Desert Redevelopment Agency are entitled to receive a stipend as a result of convening the Redevelopment Agency Meeting concurrently with the City Council Meeting. The stipend shall be provided to each Member in attendance as a result of convening the Palm Desert Redevelopment Agency Meeting. Said stipend is $30 per meeting, as set by Section 33114.5 of the Health and Safety Code, not to exceed four meetings per month. II. ROLL CALL Present: Councilmember Jean M. Benson Councilmember Cindy Finerty Councilmember Jan C. Harnik Mayor Pro Tern William R. Kroonen Mayor Robert A. Spiegel Also Present: John M. Wohlmuth, City Manager/RDA Executive Director David J. Erwin, City Attorney Robert W. Hargreaves, Assistant City Attorney William L. Strausz, Redevelopment Agency Counsel Justin McCarthy, ACM for Redevelopment 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 Bill Hunley, Battalion Chief, Palm Desert Fire/Riverside Co. Fire Dept./Cal Fire Andrew Shouse, Asst. Chief, Palm Desert Police/Riverside Co. Sheriff's Dept. Grace L. Mendoza, Deputy City Clerk PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 26, 2012 III. ORAL COMMUNICATIONS - A (CLOSED SESSION ITEMS) MS. BRIDGET ZAPPIA, Palm Desert, CA, spoke to the City Council regarding Property Negotiation Item No. 1 on the Closed Session agenda below to seek clarity about negotiating parties for the matter. She believed there would normally be two parties in such a negotiation, but the agenda listed City only. Mr. Erwin responded that during the Closed Session to follow today, discussion would only be for authorizing a City representative to negotiate. He confirmed that it would be the Councilmembers, City Manager, and staff in this Closed Session. MS. ZAPPIA requested that the City gather all information pertinent to the matter, especially access to a formally prepared appraisal, completed by a California - approved appraiser, in orderto make a sound decision in the negotiations. She had concerns about whether or not the correct value of the property will be given because of a staff member's statement about the land last summer. She explained that two staff members indicated the land had no value, and they even alluded to the fact that it would save money for the City if the land was taken off its hands. As a resident of the City, she didn't feel likewise and hoped City Council would perform its due diligence with regard to this matter. IV. ADJOURN TO CLOSED SESSION Request for Closed Session: A. Conference with Real Property Negotiator pursuant to Government Code Section 54956.8: 1) Property: 20,319 Square -foot Portion of Frontage Road Adjacent to Highway 74 and the Proposed Rosewood Hotel Negotiating Parties: Agency: John M. Wohlmuth/City of Palm Desert Property Owner: 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 On a motion by Kroonen, second by Harnik, and 5-0 vote of the City Council, Mayor Spiegel adjourned the meeting to Closed Session at 3:05 p.m. He reconvened the meeting at 4:00 p.m. PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 26, 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 - Councilmember Jean M. Benson VII. INVOCATION - Councilmember Jan C. Harnik With City Council concurrence, Mayor Spiegel suspended the agenda at this point in order to take up Section IX - Awards, Presentations, and Appointments, Items B and A, respectively. He then returned to Section VIII - Oral Communications - B. VIII. ORAL COMMUNICATIONS - B A. PRESENTATION OF ANIMAL ADOPTION FEATURE. MR. FRED SAUNDERS and MS. TIFFANY LEBOUW (sp?), representatives of Animal Samaritans, presented a young adult female Chihuahua -mix dog and a 13-week-old male DSH (Domestic Shorthair) Tabby cat. They explained that all their adoptive pets were neutered, vaccinated, given a thorough examination, and were very reasonable to adopt. Their adoption office was on Ramon Road, and they were also pleased to offer their very up-to-date veterinary medical center — performing in the past year around 37,000 vaccinations, 8,300 spay and neuters, 12,000 surgeries, and a few thousand examinations. All were invited to see their facilities. Mr. Saunders thanked the City of Palm Desert, along with the City of Rancho Mirage, for helping with a $20,000 grant to start a program to save animals. Animals are taken from the City -County Shelter (Coachella Valley Animal Campus) in order to place them in new permanent homes or with one of the local rescue groups. So far 1,200 animals have been accepted from the Campus and placed as far away as Canada, resulting in the euthanasia rate at the Shelter going down to about 45% because of the cooperative program. B. MR. KENNETH DORAN, Palm Desert, CA, commended the City Council for broadcasting its Meetings on the City website and on local Channel 17; it was very beneficial to the residents. He asked for consideration of placing staff reports on the website as well, recalling for Council the January 12 meeting when he listened to some of the arguments presented in response to Mr. Ferguson's request. He wanted to comment but refrained from doing i PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 26, 2012 so because he hadn't seen the staff reports, and he assumed there must be something provided there but was unaware and hoped to hear it from Council. But what he heard was not an argument in terms of extending or granting that request, it was an argument to revise the policy. However, it has always been his belief that public policy should be revisited to see if it's applicable to the present-day situation. Therefore, he reiterated his request for placing staff reports online, feeling that it wouldn't be very labor intensive, while acknowledging that there may be documents that cannot be provided where a note could be listed that would indicate the need to go to City Hall to view that item. He enjoyed being able to review things from home and hoped his suggestion would be implemented. MS. MALINA LOBEL-KARIMI stated that for whatever reason, City Council has chosen to pursue the Occupiers and ultimately arrest them at a high price of taxpayer dollars; and as arbitrary as it may have been, the decision was made, nonetheless. One arrestee was a wife, mother, and grandmother, anothera businessman and the fatherof two daughters, others were students here at College of the Desert also holding a minimum of two jobs, and yet another was an Iraqi War Veteran. She related that when the City Council okayed these arrests, they were also arresting themselves, because the Occupiers represent all people. She said they were not hippies, homeless, nor non -bathers —they are absolutely peaceful and share a common thread with the Council— they love the country very much and believe in the First Amendment. She said Mayor Pro Tern Kroonen had been invited to speak with their group any time but has declined to date. It is difficult to understand a different position, perspective, or belief someone else holds if you do not listen to it. She ventured a guess that there may be more in common here than there were disparities, as she lived by the rule of first, do no harm; non -malfeasance is derived as one of the principle precepts of medical ethics that all medical students are taught as a fundamental value. In other words, given an existing problem, it may be better not to do something or even to do nothing than risk causing more harm than good. She believed that pressure was exerted on the City Council to rid the Park of these "non -desirables;" and City Council succumbed to the pressure, leading her to question whether or not the action taken caused more harm or good, because she believed it was the former. She asked what could come from stripping away the inherent foundation this country was built upon, as in her opinion, it was nothing. Recent polls reflect that the American people share a belief in the same tenets that the Occupy Movement does, and she believed that if the City Council chose to acquaint themselves with participants and their concerns, they would feel, as stated above, that they have more in common than not. She thanked the Council for its time and looked forward to working together in the future. 0 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 26, 2012 MS. LORRAINE SALAS addressed City Council to say that she was in support of recent events in the news, that being Occupy Wall Street, and she understood its importance. She shared Martin Luther King, Jr.'s, speech, believing that he was truly a visionary, not only for African -American rights but the rights of all Americans. "About Injunctions. We always say to America, be true to what you say on paper. If I lived in China, or Russia, or anytotalitarian country, maybe I could understand some of these injunctions. Maybe I could understand the denial of certain basic First Amendment privileges, because they hadn't committed themselves to that over there. But somewhere I read of the freedom of assembly. Somewhere I read the freedom of speech. Somewhere I read the freedom of press. Somewhere I read that the greatness of America is the right to protest for our rights. And so just as I say we aren't going to let any, as he said in the past there, let any dogs or water hoses turn us around. We aren't going to let any injunction turn us around." She thanked the City Council for its time. MR. JOSEPH PAMPENA stated that in response to the arrests made of Occupy Protesters here in Palm Desert, he would recite the First Amendment. "Congress shall make no law respecting an establishment of religion, or prohibiting the free exercise thereof; or abridging the freedom of speech, or of the press; or the right of the people peaceably to assemble, and to petition the government for a redress of grievances." IX. AWARDS, PRESENTATIONS, AND APPOINTMENTS A. PRESENTATION TO THE CITY COUNCIL BY QUEEN SCHEHERAZADE AND HER COURT AS AMBASSADORS OF THE RIVERSIDE COUNTY FAIR AND NATIONAL DATE FESTIVAL, FEBRUARY 17 - 26, 2012. MS. BARBARA CRESON, "Queen Mom" and full-time College of the Desert staff member celebrating 25 years of employment there today, presented the Queen's Court: MS. JORDANA TOTMAN, Queen Scheherazade; MS. ALYSHA WOODSON, Princess Dunyazade; and MS. FRANCESCA PARKER, Princess Jasmine. Each of the ladies greeted the City Council and personally invited them and all present to visit and enjoy the upcoming Fair, February 17-26, highlighting the many events and activities to be held there this year. They thanked Councilmembers for the opportunity make this presentation and provided each with a lapel pin commemorating the 2012 event. 4 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 26, 2012 B. INTRODUCTION OF MARYLOU SUTTON, NEW EXECUTIVE DIRECTOR OF THE JOSLYN CENTER IN PALM DESERT. Mayor Spiegel noted that in attendance today was the City's representative to the Joslyn Center Board of Directors, Pamela Plick, along with the new Executive Director, Marylou Sutton. MS. PLICK was pleased to announce that after a long and exciting search, the Joslyn Center Board has chosen a new Executive Director, just completing her first week in the position, Marylou Sutton. She and the Board were very happy to have Ms. Sutton at the Joslyn Center, coming on board with over 20 years of excellent non-profit experience in her background, along with some wonderful ideas for the future. MS. SUTTON thanked the City Council for its foresight, for helping to fund the Joslyn Center over the years, and for the good thoughts in which she knew it was held by all who are connected to it. She said serving Seniors in the Desert Communities is not an easy job, and as the needs continue to grow, they were very grateful to the City for its assistance in helping to enrich those many lives. She looked forward to working with everyone. C. APPOINTMENTS TO VARIOUS VACANCIES ON THE CITY'S ESTABLISHED COMMITTEES AND COMMISSIONS. As the detailed staff report was provided following posting of the agenda, Mayor Spiegel asked Ms. Klassen to read the recommendations resulting from the January 19 Study Session: 1) Architectural Review Commission: a) Direct staff to prepare the necessary bylaws modification that consolidates the Landscape Beautification Committee into and increases Membership of the Architectural Review Commission (ARC) by two persons for a total of nine (9); b) reappoint Allan Levin, Ken Stendell, and John Vuksic each for a four-year term (Jan. 1, 2012 - Dec. 31, 2015) 2) Art In Public Places Commission: Reappoint Norma Bussing, Lesley Miller, and Kim Snyder each for a four-year term (Jan. 1, 2012 - Dec. 31, 2015). 3) Audit, Investment & Finance Committee: Appoint Russell Campbell to the seat formerly held by Jim Walker (Jan. 1, 2012 - Dec. 31, 2015), and Ron Crisp to the seat formerly held by Everett Wood (Jan. 1, 2012 - Dec. 31, 2013). C: PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 26, 2012 4) Building Board of Appeals & Condemnation: Reappoint Rod Murphy to a four-year term (Jan. 1, 2012 - Dec. 31, 2015). 5) Cultural Resources Preservation Committee: Appoint Gary Olesen to the vacant seat formerly held by Arthur Davis (Jan. 1, 2012 - Dec. 31, 2015); reappoint Robert Pitchford to a four-year term (Jan. 1, 2012 - Dec. 31, 2015). 6) El Paseo Business Association Board of Directors: Reappoint David Fletcher to a four-year term (Jan. 1, 2012 - Dec. 31, 2015). 7) Marketing Committee: Appoint Arlene Amick and Diane Williams each to a new four-year term (Jan. 1, 2012 - Dec. 31, 2015), pursuant to Resolution No. 2011-75; reappoint Theresa Maggio, Sara O'Flynn, and Jennie Rayner each to a four-year term (Jan. 1, 2012 - Dec. 31, 2015). 8) Parks & Recreation Commission: Appoint Jeff Ronci for the Desert Recreation District and Rob Ballew for the YMCA, each to the ex- officio positions created by Resolution No. 2012-01; reappoint Gerald Dawson, Randy Guyer, and Kim Housken each to a four-year term (Jan. 1, 2012 - Dec. 31, 2015). 9) Planning Commission: Reappoint Sonia Campbell to a four-year term (Jan. 1, 2012 - Dec. 31, 2015). 10) Public Safety Commission: Reappoint Gloria Kirkwood to a four-year term (Jan. 1, 2012 - Dec. 31, 2015). 11) Rent Review Commission: Appoint Abram Goldman to the vacant Alternate Commissioner position (Jan. 1, 2012 - Dec. 31, 2013); reappoint William Adams, Kenneth Dorf, and Richard Porch (Alternate) each to a four-year term (Jan. 1, 2012 - Dec. 31, 2015). 12) Citizen's Sustainability Committee: Direct staff to prepare the necessary bylaws modification that increases membership on the Committee from nine (9) to 11 members. Amended - increase from nine (9) to 13 members. 13) Youth Committee: Reappoint Kevin Autran, Laura Baldwin, Julien Bloch, Adam Chaplin, Mitchell Chaplin, Kaylie Chen, Marvin Chen, Henry Clark, Will Harvey, Mykos Marcinkevicius, Jozanne Murphy, Cassidy Quilling, Brian Rohrbaugh, Jason Rosenblum, and Wes Wohlmuth each for a one-year term (Jan. 1 - Dec. 31, 2012). 7 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 26, 2012 Councilmember Finerty moved to, by Minute Motion, accept the aforementioned recommendations. Motion was seconded by Benson. Councilmember Harnik asked for consideration of Item No. 12, Citizen's Sustainability Committee - increasing the membership from nine (9) to 11. She felt it was very important that the Committee be comprised of many different aspects of sustainability and asked if the motion could be amended to increase membership from nine (9) to 13 members. Afterquestion, Mr. Wohlmuth explained that since the recommendation was to direct staff to draft the amended bylaws, it would be appropriate to increase it in whatever amount Council desired, but to only have to perform the modification once. It could then be considered at the next Council Meeting. Councilmembers Finerty and Benson agreed to amend the motion to increase membership on the Citizen's Sustainability Committee from nine (9) to 13 members as requested, and the motion carried on a 5-0 vote. X. CONSENT CALENDAR A. MINUTES of the Regular City Council Meeting of January 12, 2012. Rec: Approve as presented. B. CLAIMS AND -DEMANDS AGAINST THE CITY TREASURY - Warrant Nos. 148, 149, 153, and 154. Rec: Approve as presented. C. APPLICATION FOR ALCOHOLIC BEVERAGE LICENSE by Palm Desert Country Club Diner, 77-200 California Drive, Palm Desert. Rec: Receive and file. D. APPLICATION FOR ALCOHOLIC BEVERAGE LICENSE by Ristorante Mamma Gina, 73-705 El Paseo, 30B, C & D, Palm Desert. Rec: Receive and file. E.*3 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 26, 2012 E. APPLICATION FOR ALCOHOLIC BEVERAGE LICENSE by Target T0940, 72-549 Highway 111, Palm Desert. Rec: Receive and file. F. CITY COMMITTEE AND COMMISSION MEETING MINUTES. 1. Citizen's Sustainability Committee Meeting of August 31, 2011. 2. Marketing Committee Meeting of November 15, 2011. 3. Parks & Recreation Commission Meeting of December 6, 2011. Rec: Receive and file. G. LIMITED PROCEDURES REVIEW of Various Palm Desert Operators for Compliance with the City of Palm Desert's Transient Occupancy Tax (T.O.T.) Ordinance for the 2009 and 2010 Calendar Year. Rec: By Minute Motion: 1) Receive and file the Limited Procedures Review of various Palm Desert operators for compliance with the City of Palm Desert's Transient Occupancy Tax Ordinance (T.O.T.) for the 2009 and 2010 calendaryear; 2) approve reimbursementto operators for overpayment of T.O.T. totaling $3,027. H. REPORT Pursuant to Section 33080.1 of the California Health and Safety Code (Joint Consideration with the Palm Desert Redevelopment Agency). Rec: By Minute Motion, receive and file the Report, pursuant to Section 33080.1 of the California Health and Safety Code. I. REQUEST FOR APPROVAL of Change Order No. 1 and Acceptance of Work for Contract No. C27950A — Intersection Improvements at Frank Sinatra Drive and Portola Avenue (Project No. 572-08) (H & H General Contractors, Inc., Highland, CA). Removed for separate consideration under Section XI, Consent Items Held Over. Please see that portion of the Minutes for Council discussion and action. 9 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 26, 2012 J. REQUEST FOR RATIFICATION of the City Manager's Authorization for Additional Expenditure on the McCallum Theatre Parking Lot Landscape Retrofit Project and Approval of Change Order No. 1 to Contract No. C31150 Therefor (Project No. 967-12). Rec: By Minute Motion: 1) Ratify the City Manager's authorization for additional expense in the amount of $400 on the subject project; 2) approve Change Order No. 1 in the amount of $400 to the subject contract with Horizon Professional Landscape, Coachella, California; 3) authorize the transfer of $400 from contingency to base for the contract; 4) authorize the Mayor to execute Change Order No. 1 — funds are available in Account No. 110-4800-454-3879 - Outside Agency Contribution for the McCallum Theatre. K. REQUEST FOR APPROVAL of a Temporary Waiver of Palm Desert Municipal Code (P.D.M.C.) Sections 9.58.040 and 11.01.080(W) for the Desert Recreation District's Annual International Sports Festival Opening Dinner Ceremony to be Held at the Palm Desert Community Center on February 17, 2012. Rec: By Minute Motion, grant a temporary waiver of P.D.M.C. Section 11.01.080(W) - Possession/Consumption of Alcohol in City Parks pursuant to P.D.M.C. Section 9.58.040 for the Desert Recreation District's International Sports Festival Dinner Event on February 17, 2012, from 5:00 p.m. - 10:00 p.m. MR. BILL TAYLOR, President of Terracina Homeowners Association, thanked the Council for the upgrades at the corner of Portola Avenue and Frank Sinatra Drive, referring to Consent Calendar Item I. He said the HOA had asked the City for a permanent four-way stop light at that location for a long time, which they finally got. He was pleased the Council listened to them and did something for their neighborhood. Mayor Pro Tern Kroonen asked that Item I be removed for separate consideration under Section XI, Consent Items Held Over. Upon a motion by Finerty, second by Kroonen, and 5-0 vote of the City Council, the remainder of the Consent Calendar was approved as presented. PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 26, 2012 XI. CONSENT ITEMS HELD OVER REQUEST FOR APPROVAL of Change Order No. 1 and Acceptance of Work for Contract No. C27950A — Intersection Improvements at Frank Sinatra Drive and Portola Avenue (Project No. 572-08) (H & H General Contractors, Inc., Highland, CA). Mr. Wohlmuth thanked Mr. Taylor for the nice comments about the improvements at Portola Avenue and Frank Sinatra Drive. However, the palm trees in the new median on Portola Avenue were not doing well. This item is to approve the change order and accept the project. Staff would like to work with the contractor to get those palm trees either replaced or ensure they will survive. Mayor Spiegel suggested a continuance, and Mr. Wohlmuth concurred. Mayor Pro Tern Kroonen moved to, by Minute Motion, continue this matter to the meeting of February 9, 2012. Motion was seconded by Finerty and carried by a 5-0 vote. Responding to question, Landscape Manager Spencer Knight said he hoped to have an answer on this item by the next meeting. XII. RESOLUTIONS A. RESOLUTION NO. 2012 - 03 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, APPROVING A HEIGHT STUDY REQUIREMENT FOR NEW DEVELOPMENT REQUESTING APPROVAL OF ANY CONSTRUCTION EXCEEDING THE HEIGHT STANDARD BY 10% OR MORE. Principal Planner Tony Bagato stated based on Council direction at the meeting of August 25, 2011, after the Rosewood Project was presented, there was a request to bring back a requirement for story poles and photo simulations; therefore, staff has called this a Height Analysis Study. He said the proposed Resolution would require anyone with a project or anyone asking for a development agreement approval above the height limit by more than 10% to provide photo simulations in addition to story poles. He said there is a list on how they will achieve the story poles with a plan as submitted in the Resolution. MS. GRETCHEN GUTIERREZ, CEO for Desert Valleys Builders Association (DVBA), thanked the Council for the opportunity to address this matter. On behalf of the DVBA and 100+ members' companies, she requested the Council not adopt the proposed Resolution, placing into effect a new height 11 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 26, 2012 study requirement on new development. The DVBA appreciated the City's wishes to maintain an aesthetic pleasing community for its residents and recognized its ongoing efforts. However, the development in the construction industry continues to struggle in these tough times and it is challenging for people to bring new projects to the communities. A new study such as this will place an additional burden on the current application process that any development went through in orderto obtain approval within the City. If the City elected to go forward with adoption of the Resolution, she asked the Council to make several possible considerations for amendment/changes to it. The first item would be to take the base line percentage of impact and increase it from the 10% recommendation to a 15% or 20% increase. She said 10% increase represented roughly three feet over the current maximum standard, and for commercial sites, which is 30 feet, would only add three more feet in height. On a residential property at the 18 to 24-feet height standard, it would add 2.5 feet on a proposed project. The second item would be the use of story poles as a method of measuring what the project will look like for the visual impact into the neighborhood orthe surrounding community. She said the use of story poles was a very tried and true method for a great number of years, in terms of how things were measured, planned, and developed. However, they would like to see the Council move forward toward computer modeling and simulations for the City's method of developing the plan and approval of the process as it went through plan check, review, Planning Commission, and ultimately the City Council or for permitting. She thanked the Council for its time and consideration on this matter and offered to assist if it wished to have further dialogue with their office or any other development issue going forward. Responding to question, Mr. Bagato said he had not worked with DVBA on this item. Mayor Pro Tern Kroonen suggested continuing this item until that conversation or comment took place. Councilmember Benson stated staff knew what the Council wanted addressed in the Resolution. Although she appreciated DVBA's input, story poles have made Palm Desert what it is today, and the Council received compliments on its buildings and heights, so she didn't see a need to study it further. Councilmember Finerty concurred, stating she was the one that asked for this requirement, because of the many height exceptions requested. She noted she wanted story poles, but also the visual simulations working with the computer renderings to see what the project will look like. She wants the Council to have all the information possible instead of just the computer 12 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 26, 2012 modeling, because it didn't always tell the whole story. She said the direction that Council gave back in August was for any construction greater than 10% of the height standard to be required to install story poles, provide visual simulations, and everything contained in the staff report. Councilmember Harnik stated photo simulations are needed, and she appreciated the language inserted by staff that the plan shall identify the locations from which the simulations will be created. She said the Council will have the option of choosing the angles necessary to see. She agreed with DVBA's comments on the story poles that over regulating was a burden on builders during these tough times and not in the best interest of the City. She said the City can make that determination if they want story poles or ladder trucks, etc. If the Planning Commission or City Council calls for story poles on a project, than it needs to be done. However, this was not the time to regulate it nor was it necessary. Mayor Spiegel stated it was important that staff work with various organizations to hear their concerns and agreed with Mayor Pro Tern Kroonen to continue this item. Mayor Pro Tem Kroonen moved to, by Minute Motion, continue to a date uncertain in order for staff to meet with the DVBA and other interested parties. Motion was seconded by Harnik and carried by a 4-1 vote, with Benson voting NO. XIII. ORDINANCES A. For Introduction: None B. For Adoption: None XIV. NEW BUSINESS A. REQUEST FOR APPROVAL OF $75,000 IN FACADE ENHANCEMENT PROGRAM CONSIDERATION FUNDS FOR SAXONY BUILDING (CURRENTLY CANYON BAJO BUILDING), LOCATED AT 74-399 HIGHWAY 111, PALM DESERT (Martec Investments, LP, Applicant). Project Administrator Bryce Lynn White stated the proposed Facade Enhancement Application is for the Canyon Bajo Building, which is located on the south side of Highway 111 to the west of Deep Canyon Road. He displayed photographs of the building in its current state and as proposed. `K1 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 26, 2012 The building has approximately a 300-foot frontage on Highway 111, it was built in the 1970's, and it has a dated appearance. The proposed improvements will modernize the building, which includes replacing the roof, providing a glass railing on the second floor, replacement of all the signage, and new awnings across the front. The scope of work entails all four sides of the building, because it is visible from Highway 111 on both the front and the east/west ends and highly visible on the south side from the adjoining street. He said the improvements will contemporize the building, and because of the mass, it will greatly add to the City of Palm Desert. Responding to question, he said there are plans to improve the landscape. Councilmember Harnik stated she drove by the building today and noticed the signs are very visible, but knew there were issues with the signage at that building. However, the proposed building looks great, but the signage isn't easily seen and wondered it that will be an issue down the road. Mr. White responded the Applicant felt the signage will be superior from an aesthetic standpoint, and there will also be signage on the awnings, which will be more visible than what is currently there. He said the Planning Commission can address the type of signage, because they are trying to get away from what is currently there. Councilmember Finerty stated that perhaps it was just placement and/or color of the signage that made it appear subdued compared to the existing one. She thought it was a valid point, which should be looked at to make sure the Applicant is getting their $360,000 worth. Mr. White responded he will bring that to the attention of the Applicant, and he was certain the insight from Council will be appreciated. Mayor Pro Tern Kroonen moved to, by Minute Motion, approve $75,000 in Facade Enhancement Program consideration funds to Martec Investments, LP, for Saxony Building, which is currently Canyon Bajo Building, located at 74-399 Highway 111 — funds are available in Account No. 400-4800-454-3875, with direction to give particular attention to the signage for visibility. Motion was seconded by Harnik and carried by a 5-0 vote. B. REQUEST FOR ADOPTION OF RESOLUTIONS OF THE CITY COUNCIL AND REDEVELOPMENT AGENCY RELATED TO FORGIVENESS OF LOANS, ADVANCES, OR OTHER INDEBTEDNESS PURSUANT TO LEGISLATION AB 936 (JOINT CONSIDERATION WITH THE PALM DESERT REDEVELOPMENT AGENCY). Ms. Moore stated Assembly Bill 936 (AB936) requires the City/Agency set forth by Resolution any loans that have been forgiven to or from the 14 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 26, 2012 Redevelopment Agency, of which there are none. However, staff is making findings that it does not have any. Councilmember/Member Finerty moved to waive further reading and adopt: 1) City Council Resolution No. 2012 - 04, pursuant to Assembly Bill 936, concerning forgiveness of loans, advances, or other indebtedness, and taking certain other actions in connection therewith; 2) Redevelopment Agency Resolution No. 593, pursuant to Assembly Bill 936, concerning forgiveness of loans, advances, or other indebtedness, and taking certain other actions in connection therewith. Motion was seconded by Kroonen and carried by a 5-0 vote. C. REQUEST FOR APPROVAL OF A PROFESSIONAL SERVICES AGREEMENT IN THE AMOUNT OF $15,600 WITH CYNTHIA LEE GOSSELIN FOR A CONTRACTED PROGRAM TO ESTABLISH AN ONGOING METHOD OF IDENTIFYING AND BRINGING INTO COMPLIANCE PALM DESERT HOMEOWNERS NOT CURRENTLY COMPLYING WITH SECTION 3.24 OF THE PALM DESERT MUNICIPAL CODE - TRANSIENT OCCUPANCY TAX (T.O.T.). Principal Planner Tony Bagato noted this was the contract discussed with Council to bring in short-term rental compliance. This contract wasn't budgeted for, therefore, reserve funds will need to be transferred to the City's General Fund. He said staff anticipated a cost recovery of the contract's worth in one or two months, and this will be a six to eight week lead time for all the investigation work to be completed while staff is working on the Ordinance. When the Ordinance is ready to go, staff will have all the information, flyers, and newsletters ready to give to the homes that are noncompliant. Mayor Pro Tern Kroonen moved to, by Minute Motion: 1) Approve Professional Services Contract No. C31500 with Cynthia Lee Gosselin, Rancho Mirage, California, for Short-term Rental Compliance and authorize the Mayor to execute same; 2) appropriate $15,600 from the Unobligated General Fund Reserves to Account No.110-4470-412-3090 - General Fund, Community Development / Planning Professional Services for this contract. Motion was seconded by Harnik and carried by a 5-0 vote. Mayor Spiegel requested staff provide an update every couple of months. D. REQUEST FOR AUTHORIZATION FOR THE MAYOR TO EXECUTE A GRANT DEED TO CALIFORNIA STATE UNIVERSITY FORA PORTION OF BERGER CIRCLE AND BERGER DRIVE SOUTH. Mr. Greenwood stated Berger Circle Drive also known as Ring Road was completed and opened to traffic back in September 2011. The plan was for the City to construct the road and turn it over to the University to own, 15 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 26, 2012 operate, and maintain it, but in order for them to do that, they have to own the property. Therefore, this action is to transfer that property to them. He said the recommendation needs to be updated to authorize the Mayor to execute the Grant Deed once the City Attorney and Redevelopment Legal Counsel have both indicated that it is proper to do so. Mayor Pro Tern Kroonen moved to, by Minute Motion, authorize the Mayor to execute a Grant Deed to California State University (CSU) for a portion of Berger Circle and Berger Drive South, contingent upon the City Attorney's and Redevelopment Agency Counsel's first authorizing to proceed with the action. Motion was seconded by Harnik and carried by a 5-0 vote. E. CONSIDERATION OF REQUEST BYJ. W. MARRIOTT DESERT SPRINGS PALM DESERT FOR CITY ASSISTANCE TO CONSTRUCT A WATER PARK PROJECT AT DESERT SPRINGS MARRIOTT. Mayor Spiegel stated someone called him today and informed him the water park wouldn't be located on the property. MR. KEN SCHWARTZ, General Manager at JW Marriott Desert Springs Resort & Spa, responded the pool will be on the property where they currently have a pool, but the Marriott had a total of five pools. Mayor Spiegel stated he was aware Mr. Schwartz had discussed this request with him and the City Manger, and asked if he had discussed the matter with the rest of the Council. MR. SCHWARTZ responded he had the opportunity to discuss it with everyone except Councilmember Finerty. Mayor Spiegel asked Mr. Schwartz to inform the audience on what he told the Council and why the City could help. MR. SCHWARTZ stated next month Marriott Desert Springs (MDS) will be celebrating 25 years of being in Palm Desert and noted he was fortunate enough to be in Palm Desert when it opened. He said Marriott has been very successful for 25 years, it had great owners, and they have spent $65 million in the past four years and continuing this year to help rejuvenate the property, which is something that is needed in a resort to continue its success. They just completed updating the rooms, suites, corridors, and they have a new restaurant being built, new golf course, spa, entrance, lobby, which will help Marriott's future, and 9% of the bed tax went to the City. In their current state, the management team has put together a plan to do even better. He said everyone understood that as temperatures went up, business went down, and that time period was from spring break through September, which is when their business struggled. He said Marriott came iim PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 26, 2012 up with a plan to hopefully turn that around by enticing more family business. They currently catered to a lot of groups and leisure business with more of the singles groups like the high-energy people from the coast, but not as much for families. The plan is to build an incredible water park that will have a lot of different pieces to it, but basically it will have a giant tower with two or three slides. It will be the only place you can surf in the desert, because it will have a flow rider; you can see these flow riders on the back of cruise ships. The plan includes an area for toddlers, and an area indoors where there will be a family fun zone. This indoor area will have three sections, one with big screen tv's, Xboxes, PlayStations, and all the video -type games that kids and families enjoyed. There will also be a traditional section with pool tables, ping pong, fuzz ball, and air hockey tables, and finally an art's & craft section where teachers from Palm Desert, during the summer, will teach families and kids about the desert. They plan to have The Living Desert every day to show nice fun fuzzy animals. He said all these improvements will increase their occupancy, revenue, and Transient Occupancy Tax (T.O.T.), of which they are projecting conservatively $2.5 million a year in additional sales. At 9% T.O.T., it's about $225,000 a year in additional T.O.T. for the City. Additionally, it will increase business for El Paseo, the Mall, the McCallum, restaurants, and other businesses. It will also increase business for other hotels, because hopefully they will do so well that they will have capacity issues. He believed those that came to Marriott Desert Springs will enjoy this incredible weather that they will want to buy a home in this area. He said the Owners own 135 hotels and they have a lot of capital needs just as much as Marriott Desert Springs, so he is trying to get an additional $9 million for this water park to help its business, City, and everyone else he just mentioned. He said the newspaper stated Marriott Desert Springs was asking for $1 million from the City, but it wasn't. It's not something they have ever done, but it was asking the City to partner with them. He said they were not giving the City any less than it was before or asking for an advance, it was asking that after the water park is built, that the increase in T.O.T. received from the water park, Marriott receive a credit/rebate and not be charged the additional T.O.T. up to the amount of $1 million, which would take approximately four to five years. He said it was important to get the City's buy -in to help Marriott Desert Springs convince its Owners/Hosts to build this water park in this great City at Marriott Desert Springs to increase its business and in turn provide more money in T.O.T. over time for the City. Councilmember Finerty stated she believed it was explained by City Council Secretary Wilma that her mother had been diagnosed with cancer for the sixth time, and she was visiting various oncologist, radiation oncologist, and surgeons for about three weeks to determine what course to take; therefore, she apologized for not meeting with him, but felt she had her priorities in order. 17 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 26, 2012 MR. SCHWARTZ responded he would do the same. Councilmember Finerty asked Mr. Schwartz if he understood that the $1 million tax rebate he was requesting represents public dollars. Additionally, the newspaper claimed Palm Desert residents could not use this water park and it was only open to people staying at the Marriott. MR. SCHWARTZ responded Palm Desert residents could use the water park if they stayed at the resort. Councilmember Finerty said that was the point she wanted to make clear, because that's what was reported in the newspaper, and since she didn't have an opportunity to talk with him, she wanted to confirm that Marriott was asking for public dollars for private use over an extended period of time up to $1 million. MR. SCHWARTZ reiterated he was asking for a City partnership for this plan in however way the Council felt it could be accomplished, because the plan will benefit the City by having additional monies. He said if the water park isn't built, the City will continue to get what it currently received, stating he was trying to increase that amount for the City and it's Owners. Responding to question about the Owners contribution toward the renovations, he said they have invested $65 million in the past four'/2 years. Further responding to swimming pool hours, he said their normal pool hours are 10:00 a.m. to 5:00 p.m., but in the summer it will go a little longer. Councilmember Harnik asked if this rebate was on a rolling annual quarter -to -quarter basis. For instance, the same quarter each year, but it would be Year 1 to Year 2, Year 2 to Year 3, and so on, because if that was the case, Marriott would need to be increasing. MR. SCHWARTZ said that was correct. Mayor Spiegel stated the City couldn't sit back and lose money, which is what was happening with the City's T.O.T. at this time. The City of Palm Springs is doing twice as well as Palm Desert with their hotel occupancy, and the main reason is because they have given T.O.T. back to the hotels for them to be refurbished. Palm Springs has five new hotels and the money for that improvement came back from T.O.T. gifts; San Diego did twice the increase as Palm Desert. Additionally, the City of Rancho Mirage is having trouble with the Ritz Carlton, and they plan to give back T.O.T. for an extended period of time if they find someone to lend them the money to finish the job. Therefore, this isn't an unusual request and Palm Desert has done these types of things to build businesses over the years. When a company came along wanting to build a little shopping center in the middle iR PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 26, 2012 of El Paseo, the City gave them $5 million to build a parking garage, which was key stone to what El Paseo is today, and he had other examples. He said the City had never helped the Marriott in this way before, yet they have given the residents of Palm Desert more than $60 million in the past 25 years, and they deserved a little help. Councilmember Benson stated she appreciated that Marriott kept up the property and spent more than $60 million on it, but the City of Palm Desert had never given money to a private developer. The Gardens on El Paseo is a public structure and open to the public, which was the means to get it built and something that everyone could enjoy. The fact that Marriott spent $65 million remodeling over the years was great; therefore, $1 million was a drop in the bucket for them, but it was a big deal to the cities that start on the road of refunding T.O.T. to private developers. She said the City of Rancho Mirage learned that too, because they have been giving back T.O.T. since they've been a city, but Palm Desert has never done that. She said once Palm Desert starts on the road of giving back T.O.T., it starts on a very slippery slope. It is not in the City's benefit, and in these tough economic times, it's not something it should be looking at. She said a water park at the Marriott is tremendous, and she would certainly be in favor of reducing the fees to build it, but not ever consider giving back T.O.T., because others will come with similar requests. She said Palm Desert prided itself on working with developers on projects in the City, but not in putting its money into private businesses and it's been very successful over the years. The cities that gave away their T.O.T. are in deep trouble today and Palm Desert is not; it still has a healthy reserve because it's been prudent. The City has been asked many times to give back T.O.T., but if it didn't benefit the whole community, it was not done. She knew the water park will benefit the Marriott and they will be happy that they invested in it, and she could certainly see the wisdom in having it in their property, which they had the room, but unless there was some financial ongoing benefit from the water park to the City, the City shouldn't give $1 million at this time. Councilmember Harnik disagreed, because the City just voted to give $75,000 to a private person in the previous agenda item. Councilmember Benson responded that was from the Facade Enhancement Program. Councilmember Harnik agreed, but those are dollars voted on to give to a private person. She understood the City hadn't given T.O.T. dollars before and this was a new program. She noted Palm Springs had T.O.T. formulas that provide incentives for people with established hotels to come in and refurbish them. Additionally, the City no longer has Redevelopment to rely on, and there is an evolution that is inevitable and necessary, and the 19 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 26, 2012 Council needed to look at new tools and approaches. She said years ago the City came up with Mello -Roos to help out builders. One of the things Marriott was competing with was the Splashtopia Water Park, which was exceedingly successful. She believed with a little vision, the Council needed to look at new ways to address the City's need. In this case, she would never agree to just give away $1 million, but she liked the approach with the difference in T.O.T. because it was conservative and yet the City would get a return. She noted the newspaper quoted her correctly in saying she was in favor of raising the T.O.T.; however, at this point, until the dust settles with everything related to Redevelopment and giving it extensive research, she is not in favor of raising the T.O.T. She reiterated new tools and approaches were needed to partner with City businesses in order to generate the revenue to support public safety and streets. Mayor Pro Tern Kroonen stated that with regard to raising the T.O.T., in looking to the future, at some point the Council needs to consider going to the voters and asking for that increase. However, that is not the issue before the Council now. The term pay back has been used, but what he believes Mr. Schwartz is suggesting is additional revenue for the City of Palm Desert, and in this era when the City was going through dramatic changes, with regard to its ability to finance various things, the City needed to look at every alternative. He said if other hotels came along and need this kind of assistance where the City ended up receiving more revenue, he believed those kinds of measures will end up being the salvation forthe City's budgets in the future. He was in support of either Option 1 or 2, but not in support of an outright gift of funds. He was in favor of Option 1, which he didn't consider being a pay back, but rather a revenue enhancement for the City. Councilmember Finerty stated she wanted to be able to help the Marriott, but a payback or tax credit of $1 million is extreme and excessive in these economic times. She was quoted accurately that you only raise taxes as a last resort, and that last resort would be an increase in T.O.T. At this time, the City's T.O.T. was at 9%, but with the Business Improvement District (BID), it was really at 11 %. Therefore, if there was an increase, it would place the City at 13%, which was in the higher end of those in the valley. She said if the City ever considered raising T.O.T., it would need to be for the benefit the City. The City is facing challenging times with the elimination of Redevelopment, and the Sheriff Department is very concerned about the number of inmates being released early on parole and coming into Riverside County. The Department is questioning their own budget, which will ultimately be an issue for the City. She said Palm Desert's money needed to be guarded safely in these times, and if the Councilmembers speaking in favor of this and ultimately prevail, she would like to see this item placed on a ballot so that the residents of Palm Desert know exactly what it is they are voting for by increasing the T.O.T. 20 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 26, 2012 Councilmember Harnik stated the Council was not suggesting increasing the T.O.T. Mayor Spiegel concurred, stating if the Council was considering raising the T.O.T., it would need to be done by ballot, which was Option 2. He went on to say the City's current T.O.T. was 9%, which was the lowest in the valley. The second lowest was the City of Rancho Mirage at 10%. If the City went up two percentage points, which it wasn't considering at this time, Palm Desert's T.O.T. would be the same as La Quinta. He said some cities didn't have hotels, but Indian Wells and Palm Springs had a higher percent. Councilmember Finerty clarified Palm Desertwould be at the higherend, and if Council took into consideration the BID, it would be at 13%. Councilmember Harnik pointed out the Council was not looking at raising the T.O.T. today; therefore, it was not an issue. The Council was responding to the letterthat Mr. Schwartz submitted forthe proposed relief by using T.O.T. on a rolling comparison of quarter to quarter from year to year. She said the City will continue to receive its 9% T.O.T. compared from the prior year, which appears to be a viable solution that the City benefits in the long term, because it will create more revenue for the needs of the Sheriff's Department. Councilmember Benson asked where will the $1 million come from. Mayor Spiegel responded the $1 million will come from the increase in T.O.T. that will be created after the water park and play area is built. He said families were currently going to Marriott Rancho Las Palmas, because they built a pool and their business is terrific, and they received help from the City of Rancho Mirage. Councilmember Harnik stated it was from the same quarter from Year 1 in comparison to Year 2 after it's built, and then the same quarter year 2-3, 3-4, and the difference in those years. She said Rancho Las Palmas is certainly motivated to increase their occupancy and revenue each year, because if they didn't, they get nothing. Councilmember Benson stated having been in the travel business for 25 years that low T.O.T. was an incentive to groups. The City has seen other groups drop their booking from other cities, because Palm Desert was the lowest. Councilmember Harnik point out the discussion was not about raising the T.O.T., but about the proposal that Mr. Schwartz brought forward. 21 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 26, 2012 Councilmember Benson apologized, stating she misunderstood Mayor Spiegel's comments. Mayor Pro Tern Kroonen stated the key point was that without taking some action to assist the Marriott in this, there will be no additional increase in revenue to the City. The Council was considering investing funds that will create additional occupancy above and beyond current projections; therefore, to him it was a winner. Councilmember Finerty stated the projections according to the Base Case is from 59.5% up to a possibility of 69% by 2016. Councilmember Harnik moved to, by Minute Motion, direct staff to prepare an agreement to assist the J.W. Marriott Desert Springs Water Project, utilizing the accompanying staff report's Option No. 1 - T.O.T. Rebate (Contract No. C31510). Motion was seconded by Kroonen and carried by a 3-2 vote with Benson and Finerty voting NO. F. CONSIDERATION OF THE FUTURE OF THE ART IN PUBLIC PLACES COMMISSION AND THE CULTURAL RESOURCES PRESERVATION COMMITTEE. Public Art Coordinator Deborah Schwartz noted the staff report and offered to answer questions. Mayor Pro Tern Kroonen stated he was one of the individuals who requested to review this situation, but after considerable thought, it struck him there will be more and not less need for a Cultural Resources Preservation Committee in the future, and he respectfully requested no action on this item. Mayor Spiegel stated that even though the Council would not take any action, he will allow anyone to speak on the matter. MS. GAIL BROEKER stated she was a resident at Palm Desert Greens Country Club for the past 25 years, and six years ago today, she would have been sworn into the Historic Preservation Commission, but was on a place to Lima, Peru. She has served on the Historic Preservation Committee and currently the Cultural Resources Preservation Committee. When she heard the Council was considering changing its name to Cultural Affairs Commission she thought of concerts in the park, the upcoming fashion week, or the food and wine festivals, but those things have nothing to do with cultural resources. She said cultural resources are historic and prehistoric artifacts, buildings, etc., but not the ballet. She said Historic Preservation is firmly grounded in the laws of this Country. The American's Antiquity Act of 1906 established Historic Preservation, and then sixty years later the National Historic Preservation Act in 1966, which is a Federal Law was 22 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 26, 2012 established; each State manages it in their own way. Then in 1969 the Historical Preservation was also to be part of the National Environmental Policy Act signed by Richard Nixon and three months later by California Environmental Quality Act (CEQA). In 1970 Governor Reagan established the Historic Preservation Office so that anything needing a permit, you have to encounter CEQA and address impacts. She said after CEQA was passed there were a number of communities, developers, politicians who fought to take archaeology out of CEQA up until 1980. In 1981 SHPO (State Historic Preservation Offices) ordered an inventory of historic properties from each administration, cities, forest service, BLM, etc. In 1981 Riverside County Inventory had eleven properties that qualified within Palm Desert, and technically those properties are nominated to be historic landmarks, but the only one the Committee has dealt with is the Fire House, which is a registered landmark in the City of Palm Desert. She said two or three landmarks were destroyed in 1981, because the City didn't have a historic commission or anyone to handle it; therefore, it left six to be dealt with. With respect to the proposed recommendation, she questioned whether five Art In Public Places members can decide or know how to evaluate a historic or prehistoric property. Additionally, the National Preservation Act requires a specific membership where it needs to have at least two professionals such as an architect, the archeologist, a historian, a museum curator, etc. She said one member of the Committee and one from the Historical Society did not meet that qualification; therefore, the merging of five and two members as written in the staff report would not pass the legal test. She asked if the Chamber of Commerce president was required to be on the Marketing Committee or other organizations required to do the same. Mayor Spiegel answered yes, stating it was for some of the committees. MS. BROEKER stated the way this merger of committees was written, she questioned how that would affect the Mills Act if it was not aligned with the law. Mayor Pro Tern Kroonen moved to, by Minute Motion withdrawthis recommendation from consideration. Motion was seconded by Harnik and carried by a 5-0 vote. 23 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 26, 2012 G. AUDITED FINANCIAL REPORTS FOR THE CITY OF PALM DESERT — FISCAL YEAR ENDED JUNE 30, 2011. Councilmember Harnik moved to, by Minute Motion, receive and file the audited Comprehensive Annual Financial Report (CAFR) for the City of Palm Desert, Fiscal Year Ended June 30, 2011. Mayor Spiegel stated the Audit, Investment & Finance Committee reviewed and approved the Audit Financial Reports, which ended June 30, 2011. Councilmember Finerty seconded the motion, and it carried by a 5-0 vote. H. AUDITED FINANCIAL REPORTS FOR THE PALM DESERT RECREATIONAL FACILITIES CORPORATION — FISCAL YEAR ENDED JUNE 30, 2011. Councilmember Finerty moved to, by Minute Motion, receive and file the audited financial statements of the Palm Desert Recreational Facilities Corporation, Fiscal Year Ended June 30, 2011. Motion was seconded by Kroonen and carried by a 5-0 vote. NOTE: THE FOLLOWING ITEM WAS LISTED ON AN AGENDA ADDENDUM POSTED AT LEAST 72 HOURS PRIOR TO THE MEETING. CONSIDERATION OF AN EXCEPTION TO PALM DESERT MUNICIPAL CODE SECTION 9.58.010 — CONSUMPTION OF ALCOHOLIC BEVERAGES ON PUBLIC PROPERTY— FORA PRIVATE EVENT AT THE PALM SPRINGS ART MUSEUM -PALM DESERT(THE GALEN), LOCATED AT 72-567 HIGHWAY 111, ON SUNDAY, FEBRUARY 5, 2012. Councilmember Harnik moved to, by Minute Motion: 1) Approve an exception to Palm Desert Municipal Code Section 9.58.010 - Consumption of Alcoholic Beverages on Public Property - for a private event at the Palm Springs Art Museum -Palm Desert (The Galen), located at 72-567 Highway 111, on Sunday, February 5, 2012; 2) Authorize the City Manager to execute the Temporary Use Permit associated with this event. Motion was seconded by Kroonen and carried by a 5-0 vote. XV. CONTINUED BUSINESS None 24 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 26, 2012 XVI. OLD BUSINESS A. FISCAL IMPACT ANALYSIS REPORT REGARDING POTENTIAL ANNEXATION BY THE CITY OF PALM DESERT FOR AREAS NORTH OF INTERSTATE 10. Mayor Pro Tern Kroonen suggested continuing to a further date so that all the parties involved have had an opportunity to review the report. Mayor Pro Tem Kroonen moved to, by Minute Motion, continue this item to the meeting of February 23, 2012. Motion was seconded by Finerty and carried by a 5-0 vote. Mayor Spiegel explained this item was being continued in order to provide Mr. Bernheimer an opportunity to review the Palm Desert Annexation Study. XVII. PUBLIC HEARINGS A. REQUEST FOR APPROVAL OF THE VACATION OF DAISY LANE RIGHTS -OF -WAY AND EXCESS SIDEWALK, AND LANDSCAPE EASEMENTS ALONG SHEPHERD LANE IN TRACT NO. 29469 (Kristi Hanson Architects, Inc., Applicant). Mayor Spiegel stated he believed this item may need to be continued, because many people who live adjacently to Daisy Lane weren't aware of this public hearing and learned about it one or two days ago. He said they were not individually noticed in writing; the only notification made was in the newspaper in the Classified section. He thought it was only fair for these residents to get more information, but since many of them were here this evening, the Council was willing to hear them speak. Mayor Spiegel declared the public hearing open and invited anyone wishing to address the City Council on this matter to come forward at this time. MR. BILL TAYLOR, President of Terracina HOA, stated about one Y2 years ago when KB Homes submitted a request to gate their area, the City sent out information to everyone in the neighborhood, which explained the request and what to expect. The community responded to the Council in opposition and the Council voted it down, which they appreciated. In this case, other than a 2-foot square sign on Shepherd Lane with limited information, no one knew what the real situation is all about. He said typically when people want to install a wall it's not to keep people in, but to keep them out. He personally didn't disagree with the idea of building it, but felt those affected should be notified about why and what is being planned. 25 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 26, 2012 Mayor Spiegel agreed, which is why he suggested continuing this item. He learned today that when a street is vacated, the City is not required to notify all the residents in letter form, which he disagreed. Mayor Pro Tern Kroonen concurred, stating the reason for asking for a delay on this is to give adequate opportunity for interaction with the people who are affected by it. Councilmember Finerty moved to, by Minute Motion, continue this item to the second meeting in February. Motion died for lack of a second. MRS. PAM RODRIGUEZ stated she bought from the first development there eleven years ago. There are 16 homes on each cul-de-sac between the east and west side on College View Drive where she lives and it's adjacent to Daisy Lane. She is in opposition of vacating Daisy Lane, because when she purchased that home she was relocating from another area in Palm Desert, but she looked for a new neighborhood her family and kids would enjoy and was particularly interested in a cul-de-sac. She noted she and her husband have been employed by Eisenhower Medical Centerfor more than 25 years. After she purchased her home, within a year Betty Ford Center started acquiring all those homes. At that time, she had some angry neighbors, because they got $500 retainers each and hired an attorney, but she and her husband were the exception of not wanting to do the same. They felt the Betty Ford Center was low key, well maintained, and they had no signage for anyone to know the Center was there. However, in this case, she was not personally notified, but she did observe a small two -foot square notice, which had very microscopic writing. She said with the lower property values the gate will be obtrusive no matter how nice it is. If the concern is to keep people out of the Center, when the Center agreed to purchase those homes, the residents were told it would be a two-year project. In other words, clients would be temporarily housed and then they were gonna move on. She said even vacating the sidewalk would be a problem, because one will have to go onto Shepherd Lane and get back onto your sidewalk when walking down your street, which she didn't think was safe for a neighborhood with many children there. She said many visitors didn't even know the Betty Ford Center is there; however, this obtrusive gate will surely draw attention to the Center. She didn't buy a home in a community where she was signed up to support the Center, and if she had the choice today, knowing it is there, she would probably choose to buy elsewhere. She is pleased to hear the Council is considering continuing this process. She knocked on 52 doors last night until about 9:00 p.m., and of the 52 signatures, only one was supportive of the vacation. However, if given more time, she believed she could get 200 more signatures in opposition. Mayor Spiegel asked that she provide her document to the City Clerk. 4 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 26, 2012 MR. NARAN REITMAN stated he largely agreed with the previous speaker, but didn't think anyone could really speak on the merits of this, but he understood what the City is intending to do with the street. He believed the Council was wise to postpone this issue, but requested that it be postponed to the second meeting in March to give people the opportunity to review what is planned and have a dialogue with staff to come up with a win -win resolution during that period of time. Mayor Spiegel responded he had a good point due to the number of people that are opposed to the gate. He said there should be a meeting at the City where staff can put together exactly what is planned. He suggested the attorneys from Betty Ford Center to be there, but didn't know whether or not they would want to do so. MR. REITMAN expressed appreciation for the great job at Portola Avenue and Frank Sinatra Drive, because the improvements are beautiful and much safer, which was an example of the responsiveness of this Council for the citizens of the greatest City in America. MR. HECTOR RODRIGUEZ, College View Circle East, Palm Desert, stated he was opposed to this project totally. He questioned what gave Betty Ford Center the right to vacate the street, because there are 16 homes in his cul-de-sac. Mayor Spiegel responded he understood his concern, but there are streets that have been vacated like in Palm Valley Country Club and those streets are taken care of by Palm Valley and not the City. In Daisy Lane's case, the City takes care of the street. MR. RODRIGUEZ stated what would it take for his homeowners in his neighborhood to vacate their street. Mayor Spiegel said it would have to be approved by the Council. MR. RODRIGUEZ stated the vacation of Daisy Lane was only benefitting Betty Ford Center a business. Mayor Spiegel explained that's why the Council was continuing the item so that everybody gets a fair shake. MR. RODRIGUEZ agreed, because he felt Betty Ford Center was trying to slide this through. MS. FRAN BEARD, College View Circle West, Palm Desert, stated she was in opposition, and noted she and Ms. Rodriguez went house to house the 27 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 26, 2012 other night and learned nobody had been notified, yet Kevin in the Planning Department told her everyone had been notified by mail. The residents didn't see what benefits this gate had for the neighborhood, and Betty Ford had always said they were going to be part of the neighborhood, but this gate would take them out. Councilmember Finerty stated she would amend her motion to the second meeting in March. With no further testimony offered, Mayor Spiegel left the public hearing open. Mr. Greenwood asked the Council to specify the radius to be notified, and whether they wanted all the homes on all the cul-de-sacs off of Shepherd Lane. Additionally, that the Applicant pay for the cost of the mailing and notice. Councilmember Finerty asked who paid for the noticing, because the current radius is 300 feet, but perhaps the Council is asking for a wider range. Mr. Wohlmuth responded that if Council directed staff to widen the range for notification, staff can do that, but he would recommend that Betty Ford pay for the postage and copying cost; the City will prepare the letter. Councilmember Finerty said notification needs to cover all the cul-de-sacs in the north end of the approved developments off Shepherd Lane, so that everyone that is represented here this evening, including the 52 names on the list submitted by Ms. Rodriguez. She reiterated this item needed to be postponed to the second meeting in March. Councilmember Finerty moved to, by Minute Motion: 1) Continue public hearing to the meeting of March 22, 2012; 2) direct staff to provide notification to all affected residents in homes on all of the cul-de-sacs off of Shepherd Lane, with cost of said notification (copying and postage) to be borne by Applicant; 3) direct staff to facilitate scheduling a community meeting to be conducted for all affected parties prior to the next public hearing. Mr. Wohlmuth stated it was important that Betty Ford explain to these residents why they want this. Mayor Pro Tern Kroonen seconded the motion, and it carried by a 5-0 vote. PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 26, 2012 XVIII. REPORTS AND REMARKS A. CITY MANAGER City Manager Meeting Summaries for the Period of January 4 - 17, 2012. With City Council concurrence, the Meeting Summaries were received and filed. 2. Conservation Easements Mr. Wohlmuth said staff has obtained a draft Conservation Easement from the Mountains Conservancy and will continue working on it. At this point, there has not been a cost identified for their acceptance of the Easement, but staff will continue to work on and identify the costs. He stated that staff focused on one Redevelopment parcel to make sure it had such an Easement but asked about interest in placing Conservation Easements on the City's property, initially purchased by the Redevelopment Agency that has been transferred to the City — what property(ies) should be included in this process. Councilmember Benson responded that the intent was to protect the property from anyone coming along in the future who would try to reverse the status of open space on the hillside. She believed the Conservation Easement should include all of the City's property purchased for this purpose. Mr. Wohlmuth appreciated the direction and further responded that staff will continue meeting and negotiating with the Mountains Conservancy, pointing out that they don't have dollars forthis purpose yet and were not quite prepared for the City's request. He'd asked Senior Management Analyst Ryan Stendell to make sure the Mountains Conservancy identifies costs for managing those properties in order for the City to be made aware of all costs involved. B. CITY ATTORNEY None 29 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 26, 2012 C. CITY CLERK Ms. Klassen responded to Mr. Doran's comments earlier in the meeting under Oral Communications - B (B) to state that agenda staff reports were provided online on the same page of the City website ("City Council Meeting Information Center") where the live meeting and archived meeting videos can be viewed. She said the line for each meeting also includes a link entitled "Agenda," and once that document is open, there are links to the staff reports listed for each item. D. PUBLIC SAFETY 1. Fire Department None 2. Police Department None E. MAYOR AND MEMBERS OF THE CITY COUNCIL City Council Requests for Action: a) Recognition for Ted Giatas, Dr. Albert Karnia, Jerry Patton — Mayor Pro Tem Kroonen asked for his colleagues' concurrence that the City Council acknowledge two very important people in Palm Desert's history, Ted Giatas of the McCallum Theatre, and Dr. Albert Karnig, President of California State University, San Bernardino, as they are both retiring from their respective positions. He said both gentlemen had given exemplary service to the community and should be so honored. Mayor Spiegel suggested also honoring College of the Desert President Jerry Patton, who was also retiring this year. Councilmembers concurred and staff agreed to take care of things. 9C PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 26, 2012 b) Recognition for Edith Morrey — Councilmember Harnik requested providing some sort of honor for Ms. Morrey, who will be turning 100 years of age on May 5. She felt Ms. Morrey had absolutely been the soul of El Paseo for many years and thought something could be done to recognize this milestone, possibly through the City's Marketing Department with a creative approach. 2. City Council Consideration of Travel Requests and Reports: None 3. City Council Committee Reports: a) Riverside County Transportation Commission (RCTQ — Councilmember Harnik reported to her colleagues that the Measure "A" funds for local transportation are increasing nicely, which is good news for the City. 4. City Council Comments: None 5. Suggested Items for Future City Council Meeting Agendas: None XIX. ADJOURNMENT On a motion by Kroonen, second by Finerty, and 5-0 vote of the City Council, Mayor Spiegel adjourned the meeting at 5:44 p.m. ATTEST: RACHELLE D. KLASSEN, CITY CLERK CITY OF PALM DESERT, CALIFORNIA ROBERT A. SPIEGEL, MAYOR 31