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HomeMy WebLinkAboutPreliminary Minutes - City Council - March 8, 2012DRAFT PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING THURSDAY, MARCH 8, 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 3:02 p.m. 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 David J. Erwin, City Attorney Justin McCarthy, Assistant City Manager Rachelle D. Klassen, City Clerk Russell Grance, Director of Building & Safety Lauri Aylaian, Director of Community Development Paul S. Gibson, Director of Finance/City Treasurer Janet M. Moore, Director of Housing Mark Greenwood, Director of Public Works Frankie Riddle, Director of Special Programs Stephen Y. Aryan, Risk Manager Bill Hunley, Battalion Chief, Palm Desert Fire/Riverside Co. Fire Dept./Cal Fire William Sullivan, Asst. Chief, Palm Desert Police/Riverside Co. Sheriff's Dept. Grace L. Mendoza, Deputy City Clerk III. ORAL COMMUNICATIONS - A (CLOSED SESSION ITEMS) None IV. ADJOURN TO CLOSED SESSION Request for Closed Session: PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING MARCH 8, 2012 A. Conference with Legal Counsel regarding existing litigation pursuant to Government Code Section 54956.9(a): 1. Tandem West Glass, Inc., v. City of Palm Desert, et al., Riverside County Superior Court, Case No. INC 1201153 B. Conference with Legal Counsel regarding significant exposure to litigation pursuant to Government Code Section 54956.9(b): Number of potential cases: 2 C. Conference with Legal Counsel regarding potential to initiate litigation pursuant to Government Code Section 54956.9(c): Number of potential cases: 1 D. Conference with Labor Negotiator pursuant to Government Code Section 54957.6: Negotiating Parties: John M. Wohlmuth/City of Palm Desert On a motion by Kroonen, second by Finerty, and 5-0 vote of the City Council, Mayor Spiegel adjourned the meeting to Closed Session at 3:03 p.m. He reconvened the meeting at 4:00 p.m. V. RECONVENE REGULAR MEETING - 4:00 P.M. A. REPORT ON ACTION FROM CLOSED SESSION. Mr. Erwin reported the following actions: 1) City Council unanimously approved the Voluntary Separation Incentive Program for City employees, which will be put out for their consideration tomorrow. 2) In City Council's prior meeting, it unanimously approved a three-year contract with Mr. Wohlmuth, City Manager, at the previously negotiated salary, said salary to be adjusted up/down as of June 30, 2012. VI. PLEDGE OF ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA - Councilmember Jan C. Harnik VII. INVOCATION - Councilmember Cindy Finerty 2 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING MARCH 8, 2012 VIII. ORAL COMMUNICATIONS - B A. PRESENTATION OF ANIMAL ADOPTION FEATURE. MR. FRED SAUNDERS, Animal Samaritans, presented "Sophie," a three- year -old, 12.9-pound, black terrier -mix dog rescued from the Coachella Valley Animal Campus (CVAC) that is spayed, vaccinated, and ready for adoption at their facility. She was one of approximately 1,244 animals rescued from the CVAC and adopted locally, as well as throughout the United States and Canada. He thanked the City Council for its support of animal adoptions and announced Animal Samaritans' upcoming, "12`h Walk For the Animals" being held in Palm Desert Civic Center Park, on Saturday, March 31, from 9:00 a.m. -11:00 a.m. He encouraged anyone who wanted to bring their animal and walk along to participate. He said they would be giving away a bicycle along with other prizes for the event. B. MS. MAGGIE TASSERON, Parosella Street, Palm Desert, read a prepared statement (received for the record and now on file in the City Clerk's Office), outlining a complaint with the noise created by her neighbor's pool pump in the side yard next to her home. She asked the City to reconsider the method by which it applies the Noise Ordinance to pool pumps and clear up the current ambiguity there. Mayor Spiegel asked Ms. Tasseron to leave her telephone number with the City Clerk and advised that someone from City staff would be in touch with her next week. MR. DOUG GALLOWAY, Broken Arrow Trail, Palm Desert, said it was baseball time and Opening Day for Palm Desert Youth Sports on Saturday, March 10. He hoped Councilmembers had all received an invitation and could join the celebration. Their organization serves about 1,000 kids in the City, ages 5 - 14. Some challenges were encountered when scheduling this year's event. For the past four years, they've been fortunate to have the Marine Corps Band perform at Opening Day; however, it was learned that the 29 Palms Marine Corps Band was disbanded. And while he was not personally familiar with administration at Palm Desert High School, Councilmember Harnik graciously opened a few doors there — this year it would be an all -Palm Desert Opening Day, with the entire 90-piece Aztec Marching Band performing, Flag Team, along with the Junior Varsity Cheerleaders. He related that Palm Desert Youth Sports also has a handicap division as of a couple of years ago when PDYSA President Richard Weintraub got together with Lisa Manning, resulting in the organization of two teams for kids with special needs who play every Monday night at Freedom Park. These kids will also be participating in Opening Day, and the entire PDHS Varsity Baseball Team has volunteered to assist them 3 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING MARCH 8, 2012 with participation on Opening Day. He advised that around 11:30 on Saturday morning, residents may notice some World War II aircraft hovering over Bighorn; but not to be alarmed, they will be flying in over the field for a few minutes during the National Anthem. He recognized Jeff Ronci of the Desert Recreation District and Ryan Stendell from the City for their instrumental help in organizing this year's event and thanked them for all their efforts. He presented fliers and Palm Desert baseball caps to Councilmembers. Mayor Spiegel stated he looked forward to attending the event. IX. AWARDS, PRESENTATIONS, AND APPOINTMENTS None X. CONSENT CALENDAR A. MINUTES of the Regular City Council Meeting of February 23, 2012. Rec: Approve as presented. B. CLAIMS AND DEMANDS AGAINST THE CITY TREASURY - Warrant Nos. 187, 191, 193, and 197. Rec: Approve as presented. C. APPLICATION FOR ALCOHOLIC BEVERAGE LICENSE by Ruth's Chris Steak House, 74-740 Highway 111, Palm Desert. Rec: Receive and file. D. REQUEST FOR DECLARATION of Surplus Property and Authorization for Disposal — Miscellaneous Computer and Electronic Equipment. Rec: By Minute Motion, declare items listed on the accompanying staff report's Exhibit "A" as surplus property and authorize disposal as appropriate. E. MARKETING COMMITTEE MINUTES for the Meeting of January 17, 2012. Rec: Receive and file. PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING MARCH 8, 2012 F. REQUEST FOR AUTHORIZATION to Reject Low Bid Submitted by John Deere Landscape and Award the Annual Color Plantings Bid for Fall 2012 and Spring 2013 to Progressive Growers, Inc., in the Amount of $24,999.62 (Project No. 930-12). Rec: By Minute Motion: 1) Reject low bid submitted by John Deere Landscape, Cleveland, Ohio, as non -responsive; 2) award the Annual Color Plantings Bid for Fall 2012 and Spring 2013 to Progressive Growers, Inc., Vista, California, in the amount of $24,999.62 — funds are available in General Fund Account Nos. 110-4614-453-3370 - Repair/Maintenance Median and 110-4610-453-3320 - R/M Landscape Services. G. REQUEST FOR AUTHORIZATION to Reject All Bids Received for the 2012 Citywide Striping Program and Authorize Staff to Re -bid the Project (Contract No. C31450, Project No. 564-12). Rec: By Minute Motion: 1) Reject all bids received for the subject contract forthe 2012 Citywide Striping Program; 2) authorize staff to re -bid the project. H. REQUEST FOR APPROVAL of Payment to the Desert Recreation District for the City's 2012 Sponsorship of the International Sports Festival. Rec: By Minute Motion, approve payment in the amount of $26,000 to Desert Recreation District for sponsorship of the 2012 International Sports Festival from Account No. 110-4416-414-3062. I. REQUEST FOR APPROVAL of Reimbursement to the Palm Springs Art Museum for Deconstruction and Relocation of Previous Visitor Center Millwork and Light Fixtures in the Amount of $8,930. Rec: By Minute Motion: 1) Approve reimbursement in the amount of $8,930 to the Palm Springs Art Museum for deconstruction and relocation work requested by the City of Palm Desert for the 72-567 Highway 111 location; 2) appropriate $8,930 from Building Maintenance Fund 450 for said reimbursement. Upon a motion by Kroonen, second by Finerty, and 5-0 vote of the City Council, the Consent Calendar was approved as presented. XI. CONSENT ITEMS HELD OVER None 5 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING MARCH 8, 2012 XII. RESOLUTIONS A. RESOLUTION NO. 2012 - 11 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, AMENDING PORTIONS OF RESOLUTION NO. 2011-61, "EXHIBIT A" - SALARY SCHEDULE, SALARY RANGES, AND ALLOCATED CLASSIFICATIONS FOR THE REMAINDER OF FISCAL YEAR 2011-2012 — CODE COMPLIANCE OFFICER. Human Resources Manager Lori Carney stated at the January City Council meeting, the Council discussed the need for increased surveillance of the business licensing activities, short-term rental issues, and entertainment permits. In consideration, the City Manager met with the directors of the various departments and determined the best way to address these issues would be to add another ',Code Compliance Officer. Human Resources intends to fill the position through the dissolution of the Redevelopment Agency, because it will allow for a transfer of an internal staff member into this position. The City will not be hiring anyone outside the City to fill the position. Councilmember Finerty moved to waive further reading and adopt Resolution No. 2012- 11. Motion was seconded by Harnik and carried by a 5-0 vote. B. RESOLUTION NO. 2012 - 12 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, INITIATING PROCEEDINGS TO VACATE A PORTION OF THE FRONTAGE ROAD ALONG THE EAST SIDE HIGHWAY 74 AS PART OF THE APPROVED HOTEL AND CONDOMINIUM PROJECT KNOWN AS ROSEWOOD, DIVISION 9, PART 3, CHAPTER 4 OF THE STREETS AND HIGHWAYS CODE OF THE STATE OF CALIFORNIA, AND FIXING A TIME AND PLACE FOR HEARING ALL PERSONS INTERESTED IN OR OBJECTING TO THE PROPOSED VACATION (PDH Partners, LLC, Applicant). Mr. Greenwood stated this action was to set a future public hearing on April 12, 2012, where the matter of vacating a portion of the frontage road for the Rosewood project would be decided at that time. Councilmember Finerty asked why would the City want to set a public hearing to give property away when it had an appraisal below $200,000 for this particular piece, where in a depressed market it was not trying to sell it, yet the City needed the money to operate. As far as she knew, Rosewood had done nothing to move the project along, and she didn't understand something she read in the newspaper about Rosewood not being able to proceed until this frontage road was taken care of. She knew the City had some . protection in that Rosewood had to pull permits. However, she PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING MARCH 8, 2012 questioned why the City was jumping the gun by scheduling a public hearing at this time when it was in the City's best interest to hold on to properties so their value could go up and maybe the City would be able to use that. Mr. Greenwood responded it was his understanding the reason to do this action now was to be able to conduct a public hearing before part-time residents left town, so that if they had input, it could be heard at that time. He deferred to the City Manager to elaborate on the timing. Councilmember Finerty said a public hearing could be conducted at any time, because Rosewood had up to ten years to build the hotel, so there was no reason to hurry. Mr. Wohlmuth stated this vacation was simply taking it out of public ownership and into private ownership; he said there will be a Purchase and Sale Agreement with this vacation. In other words, the property is not being given to Rosewood. The Purchase and Sale Agreement is being drafted by the City Attorney, and the City is not vacating the property at zero cost. Furthermore, the actual vacation will not take place in this Purchase and Sale Agreement until the developer obtains building permits; the property will remain public until then. Councilmember Finerty stated the fact that property values were down, the City had an appraisal, Rosewood had up to ten years to build, she questioned why the City couldn't wait until substantial action on Rosewood's part took place and then see what the appraisal would be at that time. Mr. Erwin stated the agreement is going to indicate that if the building permit is pulled within one year, the current appraisal will be used, if not, the item will be reappraised at the time of transfer. Councilmember Finerty stated it seemed to her the City has bent over backwards to tryto accommodate all of Rosewood's exceptions and this was one last piece of property it could hold on to; she believed it was putting the cart before the horse. Mayor Pro Tern Kroonen pointed out the recommendation for consideration this evening was to set a public hearing for April 12, 2012. Mayor Pro Tern Kroonen moved to waive further reading and adopt Resolution No. 2012- 12. Motion was seconded by Harnik. Councilmember Benson agreed with Councilmember Finerty that it was premature, because the Development Agreement stated it will be done when Rosewood pulls the building permit. She understood it was setting a public hearing, but that could be done at any time, and it was obvious Rosewood 7 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING MARCH 8, 2012 would not be pulling a building permit this year; therefore, she didn't see any reason to do it. MayorSpiegel called forthe vote, and the motion carried by a 3-2 vote, with Benson and Finerty voting NO. XIII. ORDINANCES A. For Introduction: ORDINANCE NO. 1234 - AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, AMENDING CHAPTER 2.52 OF THE PALM DESERT MUNICIPAL CODE - PERSONNEL SYSTEM - BY DELETING SECTION 2.52.555 - ELECTRONIC MAIL/INTERNET POLICY - AND REPLACING IT WITH SECTION 2.52.555 - TECHNOLOGY AND ELECTRONIC COMMUNICATIONS POLICY. Human Resources Manager Lori Carney stated the City is significantly amending its electronic mail, internet, and electronic communications policy to meet today's needs. The City's last policy was adopted in 2004, but with the proliferation of smart phones, tablets, and other ways of accessing information, it no longer meets the City's needs. In addition, this policy was reviewed by the City Attorney who added language in Section J governing the use of electronic devices by public officials on the dais or during public meetings. This language was added because there have been recent cases involving other cities where people have requested access to the private communication devices of public officials who used them during a public meeting and may then be subject to the Public Records Act. Councilmember Finerty moved to waive further reading and pass Ordinance No. 1234 to second reading. Motion was seconded by Benson and carried by a 5-0 vote. B. For Adoption: None l- PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING MARCH 8, 2012 XIV. NEW BUSINESS A. REQUEST FOR ADOPTION OF THE PALM DESERT STATEMENT OF INVESTMENT POLICY AS AMENDED (JOINT CONSIDERATION WITH THE SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY, PALM DESERT HOUSING AUTHORITY, AND PALM DESERT FINANCING AUTHORITY). Deputy City Treasurer Thomas Jeffrey stated staff was requesting two amendments, the first substitutes the "RDA -Successor Agency, Palm Desert" for the former "Palm Desert Redevelopment Agency." The second request is to increase the concentration limit for local agency investment pools from 30% to 50%. Due to the elimination of the Redevelopment Agency, the arithmetic changed on how it's calculated. Councilmember/Director/Member/Commissioner Finerty stated it was wonderful that the City is allowed to earn more than 50% than what it's currently earning in interest income. Councilmember/Director/Member/Commissioner Finerty moved to, by Minute Motion, concur with the recommendation of the Audit, Investment & Finance Committee and adopt the Palm Desert Statement of Investment Policy, as amended. Motion was seconded by Kroonen and carried by a 5-0 vote. B. REQUEST FOR AUTHORIZATION TO AWARD CONTRACT TO FALCON BUILDERS, INC., FOR DESERT WILLOW MAINTENANCE BUILDING SITE LIGHTING AT 38-650 PORTOLA AVENUE (A.K.A. 38-400 PORTOLA AVENUE) IN THE COMBINED TOTAL BID PRICE OF $23,986 (CONTRACT NO. C31580, PROJECT NO. 864-12). Project Administrator Bryce L. White stated staff was recommending approval of the proposed contract with Falcon Builders; it is a local firm out of Indian Wells and the lowest bidder. There was concern with the bid so staff asked that Council waive any irregularities. Responding to question, Mr. White confirmed there were break-ins to the maintenance site with items being stolen. Councilmember Finerty moved to, by Minute Motion: 1) Authorize award of the subject contract for Desert Willow Maintenance Building Site Lighting at 38-650 Portola Avenue (a.k.a. 38-400 Portola Avenue) to Falcon Builders, Inc., Indian Wells, California, in the combined total bid price of $23,986; 2) authorize the Director of Finance to set aside the amount of $2,398.60 as 10% contingency (use of contingency requires additional action); 3) waive any irregularities or informalities in Falcon Builders, Inc., Contractor's Proposal; 4) authorize the Mayor to execute said contract —funds are available in Account No. 441-4195-495-8092. Motion was seconded by Kroonen and carried by a 5-0 vote. M PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING MARCH 8, 2012 XV. CONTINUED BUSINESS A. FISCAL IMPACT ANALYSIS REPORT REGARDING POTENTIAL ANNEXATION BY THE CITY OF PALM DESERT FOR AREAS NORTH OF INTERSTATE 10 (Continued from the meetings of January 26 and February 23, 2012). Councilmember Harnik recused herself from this item and left the Council Chamber. Ms. Aylaian stated this item had been continued in order to allow a completion of the analysis of the fiscal impact for potential annexation of some areas north of Interstate 10 (1-10). She said all the information requested by Council and interested parties had been collected and was before the City Council for consideration. She displayed a map showing all the cities of the Coachella Valley and their spheres of influence. The area fordiscussion this evening was the cross -hatched purple color, which is north of 1-10 along with the area shaded in red. Staff analyzed two different scenarios at the direction of the City Council. Scenario A includes Sun City and areas west and south of it, which is south of Avenue 38 down to 1-10. A fair amount of the commercial area has been developed as Business Park, and there are vacant lands besides. With Scenario A, staff took looked at cost and revenue and costs associated at build -out conditions; staff assumed the area will build out in approximately 10 years. She displayed a table summary showing total potential costs and revenues and pointed out that the highlighted amounts are relevant to the big picture. At the end of Phase Two, which is considered build out at 10 years from now, there will be approximately an annual revenue of $6.9 million and $12.5 million in costs, which would lead to an annual deficit of $5.6 million. Scenario B includes the same areas in Scenario A, and lands to the west, the Classic Club, and some areas just west of Cook Street, but staying on the east side of Jack Ivey Ranch. The costs and revenues are more favorable, but it still produces a deficit. The build out of this overall area was assumed to take 20 years rather than 10, because there are more undeveloped lands. At the end of the 20-year build -out period, there is approximately an annual revenue of $11 million and $14.7 million of expenses, which leads to an annual deficit of $3.4 million that would need to be covered by the General Fund or another revenue source. The Summary of the Fiscal Impact Analysis that looks at build -out conditions, assuming that all the infrastructures are adequate and in place, shows that with Scenario A there is a deficit of $5.5 million a year and a deficit of $3.4 million with Scenario B. Staff also looked at a one-time revenue source that is non -recurring and non -annual. With Scenario A, there would be a one-time $10.2 million from Developer Impact Fees and $18.9 million with Scenario B. Additionally, staff asked the Public Works 10 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING MARCH 8, 2012 Department to take a cursory look at existing infrastructure deficiencies north of 1-10 to see what kind of magnitude or impact that would be as advice to the Council. The information provided indicates $22 million for Scenario A and $44 million for Scenario B of a one-time cost that would be needed. She reiterated this was just a cursory look, and results should be interpreted as costing tens of millions of dollars and nothing more to bring existing infrastructures up to the standards of Palm Desert. In conclusion, she said staff was looking for direction from the City Council for additional studies or further consideration of annexation of any of the areas north of 1-10. She noted there are interested parties present this evening that may wish to speak to the Council. MR. JOHN WILLACKER, Representative of Sun City Homeowners Association, stated they recognized the Fiscal Analysis findings, but disappointed results weren't more favorable. However, in the long run, they would like to find a way to be part of the City of Palm Desert, because it was part of their personal address, it is where they go to church, shop, and enjoy themselves. He complimented staff, Ms. Aylaian, and Mr. Wohlmuth fortheir openness and beyond, which they appreciated. He hoped this was not the final act, because he believed there will be an opportunity in the future to revisit this issue and hopefully the financials will look better. MR. ROB BERNHEIMER, Representing H N & Frances C Berger Foundation, stated the Foundation was an interested party in this discussion as they are probably the largest landowners in the area that's being considered for possible future annexation. With regards to the Fiscal Report, he didn't believe it was all that accurate in some ways, but tweaking it here and there probably wouldn't change the results given the parameters provided to staff. He said this wasn't about Palm Desert annexing this whole area and applying its City standards across the board to make it financially work. If the City was interested in annexation, it will need to step back and say it is willing to develop a new planning and zoning standard for areas north of 1-10 and look at something from a fiscal perspective to make it work. A directive in the future toward staff might ask for a plan for annexation that creates fiscal neutrality, because that will bring back options to the Council, which may require people there to accept a parcel tax to those developers that have vacant lands or change their land plans to create projects that are more revenue producing. The Council may have a whole laundry list of options that will create positive fiscal results. He said in today's world it is possible, but it will require some direction from the City Council to plan for north of the 1-10 differently than the rest of the City. He said the Berger Foundation believes it is part of the fabric of the City of Palm Desert, because it's been part of the development and certainly of the College campuses, and a major financial contributorto both sides of the freeway. He said the Berger Foundation believes there is a link between the Classic Club, Xavier Prep High School, their land, and what's been built at the college 11 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING MARCH 8, 2012 area; they feel part of the Palm Desert community. Even with the parameters of the Fiscal Analysis of Scenario B, if the Council just annexed the 650 acres, it would produce a positive fiscal for the City. He thanked staff for extending a lot of time and consideration and hoped the City kept the annexation open in the future, because the Berger Foundation would like to be part of the City of Palm Desert. Councilmember Finerty stated as much as she knew Del Webb Sun City would like to be part of Palm Desert, and obviously the Council would like to include them, unfortunately, it didn't pencil out. She said it didn't pencil out. in good time and it wasn't penciling out in these tougher times either. She said the bigger subject hadn't been addressed, which was what to do with Bermuda Dunes, because LAFCO would not allow Palm Desert to cherry pick and go across 1-10 and annex the nicely developed areas in Sun City. She too, hoped it was not the final discussion, and when things turn around, it will be revisited to see if things rendered a different direction. However, for now, considering the 50,000 residents of Palm Desert, she believed it was in their best interest to not move forward at this time, but not close the door completely either. Councilmember Benson stated her opinion was similar to Councilmember Finerty's, knowing the fact that the County was in such dire straights. She said it would be an uphill battle to do it at this time, because the County was not about to release that revenue producing commercial area; years ago they were reluctant to let it go, because they needed that money. She believed that area will be annexed, but this was not the time to be undertaking anything that will place the City further in the hole. With the demise of the Redevelopment Agency, it will take several years for that to work itself out. The City needs to downsize to something the current budget can manage, let alone adding $5- or $10 million more to the budget. She agreed to leaving the doors open on the issue, but she didn't believe jumping over to 1-10 at this point was fiscally responsible. Mayor Pro Tern Kroonen stated that while he was not in substantial disagreement with either of his colleagues, he hoped the Council will take a slightly different approach to the current issue. He referred to the Frederick Jackson Turner's Manifest Destiny Document, and said that without getting overly academic about this issue, his intuition told him that at some point down the road, Palm Desert will want to do significant things on the north side of 1-10. To that point, he suggested that within the next year or so, the Council sit down and initiate again a planning process, which at one time was lead by Councilmember Benson, to review the City's overall General Plan. He noted he served as a citizen member of that committee years ago when it discussed the north sphere across 1-10, but it didn't do much about it. However, because Palm Desert was changing in so many dramatic ways now, all options needed to be kept open. He would like to take steps, at the 12 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING MARCH 8, 2012 appropriate time, for further action with regards to understanding what is going on out there. Understanding we are entering a new era, which hopefully will bring about new opportunities and new solutions. Therefore, as opposed to closing the door now, he would like to keep this topic alive, move forward as new information and approaches become available, and not exclude the possibility for the Council to be able to make this arrangement work. Mayor Spiegel concurred, stating today's newspaper stated there are some wonderful people living in Sun City, of which some were here in attendance this evening. He said he didn't want Palm Desert to lose the sphere of influence it had over Sun City. He would also like to investigate whether or not the Berger Foundation could be included in Palm Desert's sphere of influence, but not do anything until it was fiscally responsible. Mayor Pro Tern Kroonen, moved to, by Minute Motion, continue to a date uncertain for further ongoing review of the matter as it relates to future planning activities in the City. Motion was seconded by Finerty. Councilmember Finerty said it made her nervous whenever any item is continued indefinitely, because it meant the item will die and go nowhere, but if Council wanted to look at a plan in 2020 or revisit the General Plan, the Council needs to decide where it wanted to go as a City and whether or not that included going north of 1-10. She was comfortable with having this matter continued to a date uncertain, but preferred it be worded into whatever the future planning program would be. Mayor Pro Tern Kroonen stated his motion asked for no action, but only to not close the door to annexation pending further planning activities. He felt strongly that, because of the many changes the City was undergoing now, the Council needed to re-engage in the overall General Plan process. Mayor Spiegel called for the vote, and the motion carried by a 4-0 vote, with Hamik ABSENT. XVI. OLD BUSINESS None 13 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING MARCH 8, 2012 XVI1. PUBLIC HEARINGS A. CONSIDERATION OF A RECOMMENDATION FOR DENIAL OF AN EXCEPTION FOR A BUILDING PERMIT SUBMITTED BEFORE THE 45-DAY INTERIM MORATORIUM TO ALLOW A VIEWING ROOF DECK LOCATED ON A PROPOSED CASITA ADDITION AT A RESIDENCE IN SOUTH PALM DESERT LOCATED AT 73-271 BUCKBOARD TRAIL (James Jeffords, Applicant) (Continued from the meeting of February 9, 2012). Ms. Aylaian stated at the previous meeting this item was continued. The Moratorium was put in place for 10Y2 months, but the City Council, in considering this request for an exception asked staff to consult with the neighbors surrounding the subject propertywhere the Applicant proposed to add a detached casita. When the application started going through the Planning process, it was identified there was a deck on the second floor, which was not permitted. Mr. Jeffords challenged staffs interpretation of the Code, which eventually led to putting the Moratorium in place. In response to the suggestion from the City Council, staff canvassed the adjacent neighbors immediately ratherthan just communicating with the homeowners association. She said all the neighbors responded by email or telephone stating they did not support a deck on the second floor. There were only three property owners that had not responded; however, as of today, staff received a response from two of those three parties who are also not in favor of a roof deck on the proposed addition. She said the property is landscaped and provides some measure of privacy, and the suggestion was made by the Applicant that he would be willing to record a Condition of Approval to provide landscaping for screening and privacy to the neighbors. She displayed several photographs that showed high vegetation, which screened all sides of the property. Since the previous meeting, staff has changed its recommendation. While originally staff supported the request for an exception, the response from the neighbors was such to indicate there is a large concern for privacy. One of the issues raised, which she thought was valid, is in the event there is a time of drought or the landscaping isn't maintained, the City would have the tools in place to require that it be replaced. However, it could take months or years for the landscaping to grow in to provide a complete screen. Therefore, even moving forward in good faith, the current owner or any future owner of the property could go through a period of time where they were waiting forthe landscaping to grow in, which could be a detriment to the privacy of the neighbors at that time. In conclusion, staff recommended that the request for exception be denied. She noted the Applicant was present this evening and may ask for additional time to work with his neighbors, but staff will defer to whatever the Council recommends. 14 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING MARCH 8, 2012 Mayor Spiegel declared the public hearing open and invited public testimony FAVORING or OPPOSING this matter. MR. JAMES JEFFORDS, Applicant, stated that unfortunately he had serious health issues this past month, but he was better now. He came to ask for a postponement of two weeks. He has spoken to some of the neighbors and believed there was a lot of misunderstanding. He would like to invite all his neighbors to his home next Saturday and/or accommodate another day for them to see what is there and then see what their opinion is. He said the project is finished and no one can see what is there unless they are in a helicopter. He said many of the statements made in the letters submitted are not factual. MS. CHRISTINE STROH (sp?), Monterra Circle East, stated she believed she was the last resident in Monterra Circle who had not responded. She said the residents there have paid the price to live behind a gated community with quite high walls for privacy. Because trees and shrubs can die, the neighbors will be able to see this outdoor roof deck, and there could be an awful lot of noise or potential for noise. She was also not in favor of setting a precedence in the neighborhood, stating there was already enough issues on that street. MR. JOE DIKDAN stated he received a copy of the staff report, which speaks for itself. He said staff did a great job of communicating with the neighbors and evaluating their considerations and thoughts. He echoed the previous speakers concern that if roof decks are allowed, it will be setting a precedence. With no further public testimony offered, Mayor Spiegel declared the public hearing closed. Councilmember Finerty stated she has always supported preserving the integrity of a residential neighborhood and this addition clearly did not preserve it. While she sympathized with Mr. Jeffords and his continuing health issues, she didn't believe it was advantageous to meet with all the homeowners, because staff had already done that and the residents have spoken. Therefore, the Council needed to listen, and for that reason, she would be opposed. Councilmember Benson agreed with Mr. Dikdan that it will set a precedence for the area, and not only in Silver Spur Ranch, but all over town. Councilmember Harnik stated this has been a remarkably difficult issue for both staff and Mr. Jeffords, and she commended staff for working hard on this matter. She said she loved the architecture of the home and the planned casita, but to put a viewing deck, even just by its name, she can 15 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING MARCH 8, 2012 understand why the neighbors would object. The residents raised the issue of the plants and whether they would be cut or if there was a drought. She said in the 1980's the City had a blight that hit all the oleanders and killed all kinds of hedges; therefore, she could not support approving this request. Mayor Spiegel concurred, stating he felt it was a good project, but people who live there have spoken against, and generally speaking, the Council listened to its residents. MR. JEFFORDS speaking from the audience stated if there was a drought, he would be able to purchase full-grown vegetation, plants, and trees to ensure screening. Councilmember Finerty stated she appreciated staff changing their mind, because she certainly disagreed with their original recommendation. She appreciated the fact that they went out and listened to the neighbors and decided to rule on their side. Councilmember Finerty moved to, by Minute Motion, deny an exception to a current moratorium to allow a viewing roof deck on a proposed casita addition at 73-271 Buckboard Trail. Motion was seconded by Harnik and carried by a 5-0 vote. B. REQUEST FOR APPROVAL OF A GENERAL PLAN AMENDMENT FROM COMMUNITY COMMERCIAL, RESIDENTIAL LOW DENSITY, AND OFFICE PROFESSIONAL TO RESIDENTIAL HIGH DENSITY; A CHANGE OF ZONE FROM PLANNED COMMERCIAL DISTRICT, SINGLE-FAMILY RESIDENTIAL 9000, AND OFFICE PROFESSIONAL TO PLANNED RESIDENTIAL, 16 UNITS PER GROSS ACRE; A PRECISE PLAN OF DESIGN TO ALLOW THE CONSTRUCTION AND OPERATION OF A 73-UNIT, SENIOR LIVING, AFFORDABLE HOUSING PROJECT KNOWN AS CARLOS ORTEGA VILLAS LOCATED WEST OF WASHINGTON STREET AND SOUTH OF AVENUE OF THE STATES; A TENTATIVE PARCEL MAP TO SUBDIVIDE APNs 637-071-002, 637-170-003, 637-170-004, 637-170-007 INTO THREE NEWLY CONFIGURATED PARCELS; A MITIGATED NEGATIVE DECLARATION OF ENVIRONMENTAL IMPACT AS IT RELATES TO THE PROJECT, PURSUANT TO SECTION 15074 OF THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA), Case Nos. GPA, C/Z, PP 11-200/TPM 36363, (Successor Agency to the Palm Desert Redevelopment Agency/Palm Desert Housing Authority, Applicant). Assistant Planner Missy Wightman stated this project is known as the Carlos Ortega Villas. She said Carlos Ortega was the late and former City Manager who made a significant positive impact on Palm Desert and the Coachella Valley. This project includes a Mitigated Negative Declaration, General Plan Amendment, Change of Zone, Precise Plan, and Tentative Parcel Map. The `I[: PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING MARCH 8, 2012 land use designations proposed to be changed from Community Commercial, Community Office Professional, Residential Low Density to Residential High Density. The existing zoning is to be changed from Planned Community Development, Office Professional, R-1 9000 to Planned Residential -16 units per acre. The project lies on Avenue of the States on Washington Street. In 2007 there were 66 blighted studio units, two single-family residences, and a large irregular lot configuration. These units caused a high number of service calls from Police and Code Compliance to addressing a number of concerns. In 2011, the Agency formerly known as Redevelopment purchased the property and the lot was cleared. Casey's Restaurant remains on the corner of Avenue of the States and Washington Street. The Tentative Parcel Map subdivides the property into three parcels leaving Casey's Restaurant, a parcel for a fire station, and parcel three will be the new housing tract. The specifications for the new project include 73 senior affordable units, single story in height, a community building will be incorporated into the center of the facility. The project is Net Zero with LEED Silver Certification and it includes covered parking. She displayed an aerial view of Washington Street and Avenue of the States with the project laid over it, and pointed out details of the project, the traffic transition with regards to access with the use of a roundabout configuration to be implemented to gain access to the project. The Net Zero features incorporates photovoltaic panels, solar thermal panels, water efficient landscaping, on -site water retention, design features that include natural lighting ventilation, and proper siding. The project is closed to adjacent amenities and services for senior living, such as medical, shopping, and retail space. The Architect conducted a Solar Shade Study to determine where to put the solar panels. The buildings have a clerestory element where most of the solar panels will be installed. Adjacent Zoning is Planned Commercial 2 with a shopping center and an Albertson's to the north; to the south is a preschool; to the east are restaurants, office, medical, and apartments; to the west are apartments and single-family residential. The density will be changed to a Planned Residential -16 units per acres with the maximum being 25. Building square footage currently covers 30% with the maximum being 50%. The landscape requires private patios and water -efficient landscaping, which was incorporated. The project building heights range from 15' 3" to 22' 7" and the maximum height is 24 feet or two- story, whichever is less. The project is one story in height with a clerestory, and windows up above. There are two exceptions for this project. The regular project area and width requirements do not meet the zoning requirements for boundaries of the zone as well as parking. Former Redevelopment staff had conducted parking studies on other senior living facilities and determined one parking space was needed per unit, which was found adequate on this site as well. She said Dudley Drive will have no direct traffic access, but will be used for emergency purposes only. During the Noticing process, staff was notified bythe Riverside County Land Use Airport Commission that the project is required to be reviewed bytheir commission. 17 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING MARCH 8, 2012 Redevelopment staff submitted an Application and presented it to their commission on February 9, 2012, and determined it was compatible with their Zone E for Bermuda Dunes Airport Land Use Compatibility Plan, and the Consistent Approval was gained on February 9, 2012. Staff had to also submit an application to the Federal Aviation Administration (FAA) and offered a Determination of No Hazard to Air Navigation. As part of the Mitigated Negative Declaration, a 20-day Notice was provided; questions and minor concerns were addressed by staff and no written comments were received. In conclusion, this is an affordable senior housing complex, it is integrally located into Palm Desert, constructed with energy -efficient design, which will achieve LEED Silver Certification and Net Zero status. Staff recommends that the City Council waive further reading and adopt Resolution No. 2012-13, and Pass Ordinance No. 1235 to second reading, and adopt Resolution No. 2012-14. Redevelopment Manager Martin Alvarez thanked all the City Departments that contributed in the design and review of this project. Staff is excited to bring this project before the Council, because it was named afterthe late City Manager and friend Carlos Ortega. He thanked the City Council for giving staff the opportunity to develop a project like this that incorporated aggressive energy reduction goals, major sustainability programs that it currently implements in the City. He said this will be the City's third LEED Silver building/project and the first Net Zero energy project for Palm Desert. He said staff worked extensively with Palm Desert Country Club Homeowners Association and the surrounding community, and the project was presented to the Project Area 4 Committee as well. He asked Architects Reuel Young and Maria Song to provide Council with some unique updates on the sustainability components. Mayor Spiegel declared the public hearing open and invited public testimony FAVORING OR OPPOSING this matter. MR. REUEL YOUNG stated he echoed Mr. Alvarez's comments about the coordination and very tight collaboration of City staff and all the departments to come to this project. He believed the Council will see in the future more of this kind of requirements where very extensive studies are done in terms of what is above and below ground. He found that as projects become compact and more efficient, the utility companies and the requirements that no one ever sees have a great impact on the overall project. He said architectural projects address a functional component and for this project it was to house people and make it Net Zero. The first thing that needed to happen to make a project Net Zero was to reduce the energy load. The second component is to make the project livable and two components of that in every home are light and air. The third component is to create a social environment when a project has multiple units. All of the components together eventually lead to the questions of what will the project look like and 18 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING MARCH 8, 2012 how to make it work. One of the studies conducted was to figure out how to have photovoltaic panels on the roof if the project also had trees, because trees made places livable. The advantage of that study was to eventually find a way to get the photovoltaic panels at the highest point of the roof, which allows to bring light in, because all the units are back to back and you couldn't have light coming in from both sides. Therefore, by having the clerestory with windows, natural light can be brought into the deep part of all the apartments like the kitchens and bathrooms. Secondly, it provided an opportunity to open it up for a thermal chimney, as hot air rises it is let out, and cool air will come through open windows and out. It meant that the appearance of the building was going to have this roof that was not just a gable, but something that had a function. With the photovoltaic panels up high for the sun not to be blocked by the trees, it provides for light and air. It also provided the same vocabulary supported in Casey's Restaurant, which is a California Bungalow Style. The third component, which is the social part, is a continuum of space, privacy, and safety, which starts with the recessed porch. The porch will allow a person to sit outside their building and also be social, which lead to a walkway, a bench, and shade structure. The idea for the social component was to start inside, then the porch, the shared walkway, and end in a place where you can encounter someone, have a sit down, and have a conversation. All of this came from the functional requirements placed on the team by the Housing Commission, City Departments, and staff. The team is pleased with the project and delighted to have been able to work with staff in an integrated design process. Ms. Moore stated the City Manager asked her to address the funding for this project. She said AB26 created an obstacle, because with the elimination of the Redevelopment Agency, all of the money in the Housing Fund and its bond proceeds are to be distributed to the tax amenities. She said there was promising legislation on the books that's looking at continuing to allow the current balance in the Housing Fund to remain with the current entity, which meant it could retain those housing funds and bond proceeds. This legislature was introduced by the President of the Senate who is trying to move it forward, but it's a slow process. In the meantime, staff has already started to look for other methods of funding for this project. As a note of information, although this project honors the late Carlos Ortega and his work for affordable housing across the County and Palm Desert, this project was an absolute necessity in Palm Desert. She said the 73 units were just the tip of the iceberg, because the City has a 99% occupancy rate for all of its housing units and a 1 % vacancy rate, which equated to 10 units, the lowest ever. Additionally, there is currently a significant wait list for the lowest income category. Responding to question about having enough funding to build the Carlos Ortega Villas, she said yes. MS. ROSEMARY ORTEGA stated that on behalf of the Ortega family she extended a heartfelt thanks in appreciation for everything that the City PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING MARCH 8, 2012 Council has done for the best City in the state of California, including staff, specifically Justin McCarthy, Martin Alvarez, and Lauri Aylaian. She said this project included all the components that Carlos felt strongly about, which is to provide housing, energy conservation, LEED certification, and the social component as well, because Carlos was very social. Additionally, the project represented all the standards of excellence that the City has always maintained and all those involved with this project should be very proud. She and her family are overwhelmed with this project and appreciated City Manager John Wohlmuth's support. She said her love is always here for the City of Palm Desert and her respects to the Council for its leadership. With no further testimony offered, Mayor Spiegel declared the public hearing closed. Councilmember Finerty stated she had the great opportunity of working with Carlos in the energy arena and thought it was fitting that the first Net Zero project is one that honors Carlos who always exhibited visionary attributes. Carlos was always thinking down the road of ways to do what some thought was the impossible, but he would find a way. She knew how proud the Ortega family is of a man that's so deserving and being appropriately honored. The timing is odd, because Carlos was so instrumental in the beginning of Redevelopment and now the City was at the end of it. Carlos was also a pioneer by making Palm Desert its forefront in energy efficiency and with the Carlos Ortega Villas, it was the beginning of the Net Zero era. She believed Carlos is very proud as he watches and may God bless Carlos and his family. Councilmember Finerty moved to waive further reading and: 1) Adopt Resolution No. 2012 - 13, approving a General Plan Amendment from Community Commercial, Residential Low Density, and Office Professional to Residential High Density; 2) Pass Ordinance No. 1235 to second reading, approving a Change of Zone from Planned Commercial District, Single-family Residential 9000, and Office Professional to Planned Residential, 16 Units Per Gross Acre; 3) Adopt Resolution No. 2012 - 14, approving Precise Plan 11-200, Tentative Parcel Map 36363, and a Mitigated Negative Declaration of Environmental Impact as it relates to the project. Motion was seconded by Kroonen. Mayor Pro Tern Kroonen stated he would echo everything Councilmember Finerty said, because he too, had the privilege of knowing the Ortega family for 40+ years. He acknowledged Lauri Ortega was also present this evening. He said it's been exciting to be part of the review of the development and working with the Architectural people; he believed Carlos and all will be proud this project. Councilmember Benson stated that up to this phase, the project has been paid. The next phase is to go out to bid on the project, but no one knew how long it will take Sacramento to make a decision and they should be given their due time, but if they don't come up with a solution, this project should 20 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING MARCH 8, 2012 still go out to bid. Because the City did have a healthy reserve, which was a credit to Carlos Ortega, and the project is desperately needed for seniors, she wouldn't mind using General Fund monies to fund this project. She did not want to wait indefinitely on Sacramento, so if there is a way to go ahead and use General Fund andl pay it back once a decision is made, she would certainly be in favor. There are not many reasons she would take funds out of the reserve, but this is one thing that should go forward, because it's needed. She said the reserve was all due to Carlos running the City when he did, starting the Redevelopment Agency, and providing fiscal responsibility afterwards that Palm Desert is in the fortunate position it is today. Councilmember Harnik stated this was a wonderful well -thought out project, and she was glad to be a part. She said it was an exciting step into the future, and it's a project that is very much needed. She noted Ms. Ortega made really good oatmeal raisin cookies that maybe she'll have some at the opening. She reiterated this was an exciting moment for Palm Desert. Mayor Spiegel concurred, stating Palm Desert wouldn't be what it is today without Carlos Ortega, because he's the one that developed the City's Redevelopment Agency. He said Palm Desert wouldn't have The Gardens on El Paseo, Desert Willow, the parking facilities at Westfield, Cal State San Bernardino - Palm Desert Campus, and the land out there. Carlos was really instrumental in what's happened in Palm Desert. Mayor Pro Tern Kroonen pointed out that one of the more important things, was the fact that Carlos designed the Master Flood Control. Mayor Spiegel called for the vote, and the motion carried on a 5-0 vote. C. REQUEST FOR APPROVAL OF AMENDMENT OF PALM DESERT MUNICIPAL CODE CHAPTER 3.28.020 - TRANSIENT OCCUPANCY TAX; ADDING CHAPTER 5.10 - SHORT-TERM RENTALS; AND REPEALING SECTIONS OF CHAPTER 25 -ZONING THAT REQUIRE A CONDITIONAL USE PERMIT FOR SHORT-TERM RENTALS (City of Palm Desert, Applicant). Principal Planner Tony Bagato this was the first reading of the short-term rental Ordinance. The staff report highlights the main points to this long Ordinance, because there is a whole new section along with some minor modification to existing Codes in the Municipal Code. He said staff looked at the City of Rancho Mirage Code, which was used in a way to create a permit process, but also created licensing requirements for enforcement on nuisance properties and non -licensed rentals. Planning staff worked with the City Departments, reviewed the Ordinance, and made minor modifications. It also added the Planning requirements that were brought up 21 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING MARCH 8, 2012 in the short-term rental subcommittee, Planning Department, and City Council. Palm Desert's Ordinance will be stricter than the City of Rancho Mirage, but follows the same violation process when someone is not operating the property in a manner that's suitable for the community and is a nuisance. Violators can be fined up to $2,500 for four violations over a 12-month period, and for non -licensed rentals up to $5,000 in fines. Staff believes the enforcement side will be beneficial to the City in bringing about compliance. In addition, there is a Resolution for a new fee; staff is recommending a $25 fee forShort-Term Rental Permit applications. The City of Rancho Mirage charges $30 and Palm Springs is higher. Staff received one email from one of the former members of the subcommittee, which was circulated to the Council prior to the meeting. In the email, this member made suggestions to refining the language on the following items: 1) The description of "Monthly" is currently "less than a monthly basis." Staff used this description because there is always a discrepancy between 30 days and 28 days for February, but technically in a 30-day period, a 29-day rental would have T.O.T. applied; therefore, staff recommends that the language remain as is; 2) Minimum Duration -the previous requirements were forthree days and two nights. The Ordinance only states three days; therefore, clarification was requested. He said minor modifications can be made to the second reading to three days and two nights, which was the initial intention; 3) Maximum Number of Occupancy was a concern. It currently is two persons per bedroom, and one guess per bedroom during the day time hours, which was previously required in the Zoning Ordinance in the Conditional Use Permit process; 4) Currently, the signage requirements apply to short-term rentals. He said people can't be advertising their home like a motel, but staff could reclarify, because people can do rental signs if they are renting a house for long periods under the Signage Ordinance; 5) There was a request to make the application fee modest, which staff believes $25 is minimal and modest. Mayor Spiegel asked if the City had someone checking to see if those people with rentals are applying for a permit. Mr. Bagato answered yes, stating the contract with the consultant was approved recently and has already identified more than 60 properties in a few weeks. Staff is creating a list, and when the Ordinance goes into effect in mid April, staff will be informing them that they need to have a permit. Staff will create brochures to help applicants with the process to keep it business friendly. Further responding, he agreed to update the Council on the consultant's findings and process. Councilmember Harnik stated this all looked to be great work by staff, but her concern was the total number of people allowed during the day, which seemed a little draconian. She said two people in a bedroom can only have one guest during the day. 22 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING MARCH 8, 2012 Mr. Bagato said a two -bedroom will allowed two guests. Councilmember Harnik said if four people were renting, then a family, could only have two guests during the day according to the matrix in the Staff Report, which she felt was awfully tough to state. She said four people in a two -bedroom house couldn't invite another family of four. Mr. Bagato responded that was one of the proposals from the subcommittee that was brought forth, because it wanted to avoid creating party homes; therefore, there was a restriction in the number of guests during the daytime hours. He said that can be changed if Council chooses to do so, but staff was just moving forward with what was in place. Councilmember Harnik reiterated she felt that restriction was strong and would prefer a one -for -one ratio. Councilmember Benson suggested looking at it again in six months, and if there are any complaints, it can be addressed then. However, she felt the Council needed to start somewhere, and staff has made revisions from what has been reviewed from the beginning. Mayor Spiegel declared the public hearing open and invited testimony in FAVOR of or in OPPOSITION to this matter. MR. JIM T. PEARCE, Altamira, Indian Wells, stated he owned Fairway Vacation Rentals, which is on Country Club Drive in Palm Desert. He manages about 175 vacation rentals and has been in the business for 25 years. Of the 175 units, 100 of them are in gated golf communities in Palm Desert, such as Palm Valley, the Lakes, Desert Falls, Monterey, Palm Desert Resort County Club, Oasis Country Club, etc. He commended Mr. Bagato, staff, and everyone who worked on this issue, because it was a good Ordinance that will go far in producing a tremendous amount of Transient Occupancy Tax from current violators and a step in the right direction. He is the one who submitted the email to the Council that Mr. Bagato mentioned, but he wanted to elaborate on a couple of the points made. With regards to the definition of "less than a monthly basis," many of his renters think in terms of a month; many of them come in on the first of the month and leave on the first of the next month. February has 28 days, and under this Ordinance, technically they would be required to pay T.O.T. However, if a renter comes in on January 17 and left on February 17, again it is 28 days. His suggested wording was "less than 28 consecutive nights" for "Monthly." The next item was "Minimum Duration," which he felt needed further clarification. A two -night minimum is agreeable, but the statute currently states a three-day minimum, and the Council wouldn't want this to be misinterpreted to not allow a weekend occupancy. With regards to "Maximum Number of Occupants," Councilmember Harnik articulated his 23 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING MARCH 8, 2012 same concern according to the current matrix. Next is signage, because the current Ordinance would bar any signage on vacation rentals, and all of his properties are in gated golf communities with very active and watchful homeowners associations. All those HOA's have sign ordinances there, and they are in compliance with all of those. However, it is helpful to put signs up within a community, such as Palm Valley, because without them, he didn't think the properties would be served well. The last issue he had was with the Application fee, he learned today Palm Desert has set it at $25, which he thought was great. In conclusion, he said the whole concept that staff has kneeled in this Ordinance was to make it incredibly easy for people to register, but making it painful to those that fail to comply or violate it. With no further testimony offered, MayorSpiegel declared the public hearing closed. Councilmember Harnik reiterated the matrix on the amount of guests was too strict, because if a couple couldn't have another couple over as guests, it was taking it too far. She asked staff to look at something that would be reasonable. Mr. Bagato stated the Ordinance will have a second reading where minor changes can be made. If those changes are decided this evening, they could be incorporated in the second reading, and staff could do a six-month followup. Mayor Spiegel asked staff to check with other cities to see what their limitations are with regards to guests. Mr. Bagato agreed Mayor Pro Tern Kroonen said this was a good example of a topic that was quite sensational not too many months ago that Council asked to take a moment of respite to look at it again. Staff predicably came through with a recommendation that will fly really high. Therefore, he was in favor of moving to approve to second reading, understanding there will be some minor revisions. Mayor Pro Tern Kroonen moved to waive further reading and: 1) Pass Ordinance No. 1236 to second reading, approving an amendment to the Palm Desert Municipal Code Chapter 3.28.020 - Transient Occupancy Tax; adding Chapter 5.10 - Short-term Rentals; and repealing Sections of Chapter 25 - Zoning, that require a Conditional Use Permit for Short-term Rentals with minor modifications as proposed at this meeting (i.e., duration, maximum number of occupants, and signage), and a six-month review of the new regulations for any potential modification ; 2) Adopt Resolution No. 2012 -15, establishing a new $25 fee for Short-term Rental Permit applications that will be processed, as required by the new ordinance. Motion was seconded by Harnik Councilmember Finerty asked if the motion included a review in six months. 24 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING MARCH 8, 2012 Mayor Pro Tern Kroonen answered yes, stating it was time to move something forward. Further responding, he confirmed the second reading will have some adjustments as discussed, and it includes the six month review. Mayor Spiegel called for the vote, and the motion carried by a 5-0 vote. XVIII. REPORTS AND REMARKS A. CITY MANAGER City Manager Meeting Summaries for the Period of February 15 - 28, 2012. Rec: Receive and file. With City Council concurrence, the Meeting Summaries were received and filed. B. CITY ATTORNEY None C. CITY CLERK Palm Desert Public Library As staff liaison to the City's Library, Ms. Klassen reported that as of last week, the Division of State Architect signed off on the Library's remodeling project. Therefore, they were getting underway, with last day of operation before closing the Palm Desert Public Library currently set for Saturday, April 7. She said move -out would commence on Monday, April 9, internally packing materials and getting the site ready for the work. Construction is set to start on Monday, April 23, with an estimated five -month duration. She acknowledged that the project was behind from when it was originally scheduled to take place but pleased to report it could now begin. Mayor Spiegel felt it worked out well, because now the facility would be closed over the summer and be readyforthe new season next fall. D. PUBLIC SAFETY 1. Fire Department None 25 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING MARCH 8, 2012 2. Police Department None E. MAYOR AND MEMBERS OF THE CITY COUNCIL City Council Requests for Action: None 2. City Council Consideration of Travel Requests and Reports: None 3. City Council Committee Reports: a) Coachella Valley Economic Partnership (CVEP) — Councilmember Harnik reported that CVEP has been working hard, creating the Coachella Valley Small Business Development Center to help small businesses in Palm Desert and throughout the region. 4. City Council Comments: a) Pension Reform — Mayor Pro Tern Kroonen called attention to a recent article, particularly on Senator Emmerson's webpage, regarding his call for further action on Pension Reform. He felt it was very prominent in everyone's mind, and he was struck by the fact that the Senator has advanced some very relevant ideas that are cogent for further thought. He felt it was in everyone's best interest and hoped the City would continue to monitorthe matter in orderto see that something definitive and positive happens on that topic. He offered to share copies of the article with his colleagues. Councilmember Finerty noted that she was particularly interested in the matter, bringing up at the last City Council Meeting that the Pension System is unsustainable and needs work, followed by Senator Emmerson's most timely article. 5. Suggested Items for Future City Council Meeting Agendas: a) HeightStudy—CouncilmemberFinertynoted atthe January 26 meeting, there was a request for adoption of a resolution to approve a Height Study, with continuance given in order for staff to discuss the matterwith building industry professionals. PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING MARCH 8, 2012 At that time, indication was that the matter would return to City Council in approximately one month (February 23). She'd asked Mr. Wohlmuth about it and was told it would be on the next agenda (today's) but wasn't. She asked for a status report. Mr. Wohlmuth replied that staff has been working on the matter and advised that it would be placed on the next City Council Meeting agenda. XIX. ADJOURNMENT Upon a motion by Kroonen, second by Finerty, and 5-0 vote of the City Council, Mayor Spiegel adjourned the meeting at 5:40 p.m. ATTEST: RACHELLE D. KLASSEN, CITY CLERK CITY OF PALM DESERT, CALIFORNIA ROBERT A. SPIEGEL, MAYOR 27