2017 04 04 CC MinutesCITY COUNCIL
MINUTES
TUESDAY, APRIL 4, 2017
A regular meeting of the La Quinta City Council was called to order at 3:30 p.m. by
Mayor Evans.
PRESENT: Councilmembers Fitzpatrick, Pena, Radi, Sanchez, Mayor Evans
ABSENT: None
PUBLIC COMMENT ON MATTERS NOT ON THE AGENDA — None
CONFIRMATION OF AGENDA — Confirmed
CLOSED SESSION
1. CONFERENCE WITH REAL PROPERTY NEGOTIATORS PURSUANT TO
GOVERNMENT CODE SECTION 54956.8 FOR PROPERTY LOCATED AT:
SILVERROCK RESORT (APNs 770-200-026; 776-150-021; 776-150-023; 770-
060-056; 770-060-057; 770-060-058; 770-060-059; 770-060-061; 770-060-
062; 777-490-004; 777-490-006; 777-490-007; 777-490-012; 777-490-014
CITY NEGOTIATOR: FRANK J. SPEVACEK, CITY MANAGER
NEGOTIATING PARTIES: ROBERT S. GREEN, SILVERROCK DEVELOPMENT
COMPANY
UNDER NEGOTIATION: PRICE AND TERMS OF PAYMENT FOR THE SALE OF
REAL PROPERTY
COUNCIL RECESSED THE OPEN SESSION PORTION OF THE MEETING AND MOVED
INTO CLOSED SESSION AT 3:31 P.M.
MAYOR EVANS RECONVENED THE OPEN SESSION PORTION OF THE CITY COUNCIL
MEETING AT 4:00 P.M. WITH ALL MEMBERS PRESENT
REPORT ON ACTION(S) TAKEN IN CLOSED SESSION:
City Attorney Ihrke reported that no actions were taken in Closed Session that require
reporting pursuant to Government Code section 54957.1 (Brown Act).
PLEDGE OF ALLEGIANCE
Councilmember Sanchez led the audience in the pledge of allegiance.
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PUBLIC COMMENT ON MATTERS NOT ON THE AGENDA
PUBLIC SPEAKER: Mark Johnson, La Quinta — Mr. Johnson showed a video that he and
fellow hikers will be submitting with an application for a $50,000 Community Thrives
(ACT) grant from USA Today Network and Gannett Co. - The Desert Sun newspaper for
a program they are calling "CV Trek" to introduce youth in the Coachella Valley to area
hiking and a lifetime of wellness. If awarded, the funds will be granted to Friends of
the Desert Mountains and used for training, logistics, boots, head lamps, poles and
other hiking supplies and events for several years. Mr. Johnson asked supporters to
vote for this program on line at http://act.usatoday.com/submit-an-idea/#/gallery/
60446282 during the next month, and can do so up to once each day.
PUBLIC SPEAKER: David Herman, Rancho Mirage — Mr. Herman expressed interest in
the redevelopment of the former Sam's Club. Mayor Evans recommended that he
meet with City staff who will provide guidance and assistance.
ANNOUNCEMENTS, PRESENTATIONS AND WRITTEN COMMUNICATIONS
1. RECOGNITION OF SOUTHWEST COMMUNITY CHURCH VOLUNTEERS FOR
COMMUNITY CLEAN-UP EFFORTS
Mayor Evans, on behalf of the entire City Council, presented a certificate of
appreciation to Mr. Real, Outreach Director of the Southwest Community Church for
his team's cleanup efforts.
2. LA QUINTA FACILITIES DEPARTMENT ACADEMY
Facilities Director Howlett presented the purpose of the academy and introduced the
participants who gave a detailed report of the projects completed.
CONSENT CALENDAR
1. APPROVE MINUTES OF MARCH 7, 2017
2. APPROVE MINUTES OF MARCH 21, 2017
3. ADOPT ORDINANCE NO. 556 ON SECOND READING AMENDING CHAPTER 2.70
OF THE MUNICIPAL CODE TO EXPAND THE MEMBERSHIP AND DUTIES AND
CHANGE THE NAME OF THE INVESTMENT ADVISORY BOARD TO THE
FINANCIAL ADVISORY COMMISSION IN ORDER TO FULFILL THE CITIZEN
OVERSIGHT DUTIES SET FORTH IN MEASURE G
4. AUTHORIZE OVERNIGHT TRAVEL FOR PARKS SUPERINTENDENT TO ATTEND
THE PLAYGROUND SAFETY INSPECTOR CERTIFICATION COURSE IN
LAKEWOOD, CALIFORNIA, APRIL 18-20, 2017
5. ACCEPT ART DONATION FROM MARLA NELSON
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6. APPROVE DEMAND REGISTERS DATED MARCH 17 AND 24, 2017
7. APPROVE PLANS, SPECIFICATIONS, ENGINEER'S ESTIMATE, AND ADVERTISE
THE MILES AVENUE (FROM SEELEY DRIVE TO DUNE PALMS ROAD) MEDIAN
LANDSCAPE IMPROVEMENT PROJECT FOR BID (PROJECT NO. 2015-02)
8. ACCEPT CITY HALL MISCELLANEOUS EXTERIOR AMERICAN WITH
DISABILITIES ACT IMPROVEMENTS PROJECT LOCATED AT 78495 CALLE
TAMPICO (PROJECT NO. 2016-05A)
9. APPROVE UTILITY RELOCATION AND REIMBURSEMENT AGREEMENT AND
ADDENDUM NO. 1 BETWEEN CITY OF INDIO, CITY OF LA QUINTA, AND
IMPERIAL IRRIGATION DISTRICT (MADISON STREET IMPROVEMENT PROJECT
FROM AVENUE 50 TO 52)
10. APPROVE AMENDMENT NO. 7 TO PROFESSIONAL SERVICES AGREEMENT WITH
BENGAL ENGINEERING, INC. FOR THE DUNE PALMS ROAD BRIDGE
IMPROVEMENT (PROJECT NO. 2011-05)
11. ADOPT A RESOLUTION TO UPDATE THE CITY'S MASTER FEE SCHEDULE TO
INCLUDE EXISTING ALARM FEES, ADD MEDICAL CANNABIS DELIVERY
SERVICE LICENSE FEE, AND ADD RIVERSIDE COUNTY FIRE DEPARTMENT FEES
12. APPROVE BUDGET AMENDMENT FOR EXECUTIVE RECRUITMENT
Councilmember Radi expressed gratitude for the beautiful donated art piece that will
now be part of the City's collection and thanked the Community Services Commission
for their efforts in making this happen.
Councilmember Fitzpatrick said by sending the Parks Superintendent to attend the
playground safety inspector certification course, the City was practicing good risk
management.
Mayor Evans noted that the parties were finally making headway on improving
Madison Street with the utility relocation and reimbursement agreement with Indio
and IID.
MOTION — A motion was made and seconded by Councilmembers Radi/Fitzpatrick to
approve the Consent Calendar as recommended, with Item No. 3 adopting Ordinance
No. 556 and Item No. 11 adopting Resolution No. 2017-011. Motion passed
unanimously.
BUSINESS SESSION — None
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STUDY SESSION
1. OVERVIEW OF AMENDMENT NO. 2 TO PURCHASE, SALE AND DEVELOPMENT
AGREEMENT WITH SILVERROCK DEVELOPMENT COMPANY LLC FOR
SILVERROCK RESORT
City Consulting Economist McMillen presented the staff report, which is on file in the
Clerk's Office.
Councilmembers discussed IRS Code section 141, which restricts the use of land
purchased with tax-exempt bonds. City Manager Spevacek explained that since the
tax reform act of 1986, municipalities could not use tax-exempt bond funds for
money -making ventures. Federal government reasoning was that since cities were
benefiting from the lower financing costs of tax-exempt bond issuance and bond
buyers were benefiting from exemption from federal tax on bond interest earned,
cities should not be using tax-exempt bond funds on non-traditional public uses such
as sports arenas or money -making ventures. With the passage of the 1986 act, the
"private activity test" was added to regulations limiting use of funds on projects that
would generate a financial return (other than tax revenue) to cities. The regulations
allow a ten percent exemption or "wiggle room" to cities.
City Attorney Ihrke said he believed the ten percent figure was just the maximum
amount the IRS was comfortable allowing as return or revenue to cities. If a city
expends more that 10% of tax-exempt bonds on a money -generating venture, the
tax-exempt bonds then become taxable and all bond holders would have to start
paying tax on interest received. Litigation would inevitably follow against a city for
violating the bond covenants. Mr. Ihrke said that he was not aware of any instances
where a city has been prosecuted by the IRS for violating the "private activity test"
probably because the consequences are so serious.
City Manager Spevacek said that the federal government enacted the 1986 act to
preserve its general fund revenue and based on current tax reform news reports, the
federal government is not interested in reducing their revenue from cities or bond
holders but from individuals and corporations. Based on conversations with bond
counsel and underwriters, the indications are that if anything, regulations will move in
the more restrictive direction.
Mayor Evans explained the long-term revenue purpose and financial climate (pre -
redevelopment agencies dissolution) at the time the SilverRock land was purchased.
City Consulting Economist McMillen explained the safeguards to City tax revenue
(property, sales and hotel taxes) in the agreement even if the developer sells the
property.
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PUBLIC SPEAKER: Mark Johnson, La Quinta — Mr. Johnson spoke in support of the
Amendment but added that he hoped the covenants will include the formation of a
golf advisory committee for residents to give input to developer. He also expressed
concern about the size of the clubhouse, and lastly, suggested that the developer
select the management of the golf operation via a performance based competitive bid
process.
City Manager Spevacek noted that resident golf rates at SilverRock would remain the
same until the golf course realignment is completed around November but a time
change to resident online tee time bookings can be initiated by Landmark Golf
Management shortly.
PUBLIC SPEAKERS: Robert Green, SilverRock Development Company, LLC (SDC) — Mr.
Green gave an update on development progress. He added that he is interested in
public input and believes it to be a good idea to meet annually with a citizens' golf
advisory committee.
Councilmembers thanked Mr. Green and his team, legal staff, and Consulting City
Economist Mr. McMillen for their leadership and persistence; noted the difficulty of
planning such a complex project especially with the "private activity test" component;
the City's need to protect resident access to the course but there's no need for cities to
own golf courses; support of transferring the five shaded properties listed in the report
to SDC once set performance measures are met, modifying the schedule of
performance, the revised business terms, reviewing the covenants in advance, and
retaining all repurchase rights and protections, and; recognition that the City is
gaining more than it is giving in this deal.
2. DISCUSS PROACTIVE CODE COMPLIANCE 2016 PROGRESS AND 2017 GOALS
Public Safety Manager Mendez presented the staff report, which is on file in the Clerk's
Office.
Councilmembers discussed the high number of false alarm calls and how to reduce
them; calls to illegal cannabis grow houses; Taser certification for Code Officers;
success rate of sending warning notices before citations are issues; abatement of lots
posing fire hazards; success in past year in working with residents; policy to hold City
properties to same or higher standards than residents; the effects of more personnel
resources versus a longer response time; changing the expected response time from
30 days to 60 days for a test period; maintaining the progress, tempo and
expectations in the community; tracking case progress via GoRequest; changing the
regulations so that penalties occur on the third occurrence within a year rather than
within 90 days; pros and cons of requiring properties with alarms to register with the
City; involving alarm companies in finding solutions to excessive false alarms; criteria
to provide to residents such as the Uniform Fire Code guidelines for overgrown or
unsightly conditions; forming Highway 111 business groups to discuss matters of
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mutual interest; focusing resources in areas of needs and minimizing in other areas;
introduction of junior Code Officers; continuing community outreach; impact on
Officers of the short-term vacation rental program, and; problem wind fences.
3. DISCUSS REPLACEMENT OF EXISTING MONUMENT SIGNS WITH ART
ENTRYWAYS AND INCREASE PUBLIC ART NORTH OF HIGHWAY 111
Community Resources Director Escobedo, Community Resources Manager Larson and
Community Programs/Wellness Supervisor Calderon presented the staff report, which
is on file in the Clerk's Office.
Councilmembers discussed public art in all areas of the City; the City's entry points;
working with artists to transform the existing monuments; avoiding the expenditure of
hundreds of thousands of dollars; consider simple notification that one is entering the
City plus an art piece; consider art loans and rotating pieces; typical art piece pedestal
limits future options; acknowledgement that General Fund money may be needed
eventually to maintain the public art collection and art brand La Quinta has built for
35 years; the balance in the Art in Public Places fund and the amount spent on art
maintenance annually; criteria may include easy maintenance, movable, lights ; entry
monuments would be a capital project, not an art project; focus markers on Highway
111 first, but public art everywhere; need to coordinate any art placements in
northern La Quinta with the landscaping project, and; not necessary to include "Gem
of the Desert" on everything.
In summary, Councilmembers agreed that entry monuments should be simple,
elegant, inexpensive, and consistent focusing first on City borders on Highway 111.
PUBLIC SPEAKER: Mark Johnson, Chairman of Community Services Commission — Mr.
Johnson said he agreed with Councilmembers' comments but wanted to alert Council
that the existing monuments, which were built as fountains, will be difficult to
repurpose as it may cost more to do so then to demolish and construct new.
PUBLIC HEARINGS — None
DEPARTMENTAL REPORTS
All reports are on file in the City Clerk's Office.
1. RESIDENT REQUEST TO AMEND MUNICIPAL CODE TO PERMIT CHICKENS ON
RESIDENTIAL PROPERTIES THAT ARE LESS THAN ONE ACRE IN SIZE
Councilmembers discussed the rationale for the one acre restriction; the small size of
many yards, especially in the Cove; the possibility of drawing coyotes in some areas;
community chicken coups; added burden on Code Enforcement; the sufficiency of the
existing law, and; the different conditions of yard size and coyote sighting in northern
La Quinta versus the Cove.
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2. 2017 GOLDENVOICE CONCERTS AT EMPIRE POLO CLUB IN INDIO
Mayor Evans advised staff to stay engaged in meetings, priorities and partnerships.
3. REQUEST FOR PROPOSALS FOR INVESTMENT AND MANAGEMENT SERVICES FOR
THE "OTHER POST -EMPLOYMENT BENEFITS TRUST" FUND
Councilmembers expressed support for the creation of an irrevocable trust for the
payment of retiree health benefits.
MAYOR AND COUNCILMEMBER ITEMS
Mayor Evans and Councilmembers congratulated Linda Williams, one of the eleven
Riverside County recipients of the Senior Inspiration Award on March 24th at the 25th
annual award ceremony.
Councilmember Radi reported on the success of the 2017 Ronald McDonald Walk for
Kids held March 25th in La Quinta where he presented a proclamation on behalf of the
Council.
Mayor Evans congratulated Miljenko "Mike" Grgich on his 94th birthday.
Mayor Evans reported on her visit to the Hideaway community with John Gamlin
where they presented updates on City projects.
REPORTS AND INFORMATIONAL ITEMS
La Quinta's representative for 2017, Mayor Evans reported on her participation in the
following organizations meeting:
EAST VALLEY COALITION
GREATER PALM SPRINGS CONVENTION AND VISITORS BUREAU
COACHELLA VALLEY WATER DISTRICT POLICY COMMITTEE
La Quinta's representative for 2017, Councilmember Radi reported on his participation
in the following organization meeting:
SUNLINE TRANSIT AGENCY
DESERT SANDS SCHOOL DISTRICT COMMITTEE
La Quinta's representative for 2017, Councilmember Sanchez reported on his
participation in the following organizations meeting:
IID ENERGY CONSUMERS' ADVISORY COMMITTEE
DESERT SANDS SCHOOL DISTRICT COMMITTEE
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ADJOURNMENT
There being no further business, a motion was made and seconded by
Councilmembers Radi/Fitzpatrick to adjourn at 7:10 p.m. Motion passed unanimously.
Respectfully submitted,
..;//41A, I X�
SUSAN MAYSELS, City Clerk
City of La Quinta, California
Digitally signed by Susan Maysels
DN: cn=Susan Maysels, o=City of La Quinta,
ou=Clerk's Office, email=smaysels@la-quinta.org,
c=US
Date: 2017.04.19 08:09:28 -07'00'
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