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2003 06 03 CC Minutes LA QUINTA CITY COUNCIL MINUTES JUNE 3, 2003 A regular meeting of the La Quinta City Council was called to order at the hour of 2:00 p.m. by Mayor Adolph. PRESENT: Council Members Henderson, Osborne, Perkins, Sniff, Mayor Adolph ABSENT: None PUBLIC COMMENT - None CLOSED SESSION 1. Conference with labor negotiators, Ski Harrison, Mark Weiss, and John Ruiz, regarding negotiations with the La Quinta City Employees Association pursuant to Government Code Section 54957.6 - Meet and Confer Process. 2.Public employee performance evaluation pursuant to Government Code Section 54957 -- Council-appointed position, City Manager. 3. Evaluation of City Attorney performance pursuant to Government Code Section 54957. 4. Conference with City's legal counsel regarding threatened litigation pursuant to Government Code Section 54956.9(b) -one. matter. 5. Conference with City's legal counsel pursuant to Government Code Section 54956.9(a) regarding pending litigation, Coachella Valley Water District v. City of La Quinta, Riverside Superior Court Case No. INC 010827. Council recessed to Closed Session to and until the hour of 3:00 p.m. 3:00 P.M. Mayor Adolph led the audience in the Pledge of Allegiance. PUBLIC COMMENT Audrey Ostrowsky, P. O. Box 351, stated she doesn't like her vacant property being used without authorization, and noted CVWD has dumped cement on it. She also ? .... commented on the need to restrict the use of BB guns in the Cove. City Council Minutes 2 June 3, 2003 CONFIRMATION OF AGENDA - Confirmed ANNOUNCEMENTS - None PRESENTATIONS - None WRITTEN CORRESPONDENCE - None APPROVAL OF MINUTES MOTION - It was moved by Council Members Sniff/Henderson to approve the City Council Minutes of May 20, 2003, as submitted. Motion carried unanimously. CONSENT CALENDAR 1. APPROVAL OF DEMAND REGISTER DATED JUNE 3, 2003. 2. APPROVAL OF APPROPRIATION TO CLOSE THE COACHELLA VALLEY VIOLENT CRIME TASK FORCE FUND AND TRANSFER REMAINING FUNDS TO THE CITY OF COACHELLA. 3. ADOPTION OF A RESOLUTION GRANTING CONDITIONAL APPROVAL OF A FINAL MAP AND SUBDIVISION IMPROVEMENT AGREEMENT FOR TRACT 30096, PUERTA AZUL. (RESOLUTION NO. 2003-32) 4. APPROVAL OF A REIMBURSEMENT AGREEMENT BETWEEN THE DESERT SANDS UNIFIED SCHOOL DISTRICT FOR IMPROVEMENTS TO EISENHOWER DRIVE NORTH OF CALLE TAMPICO. 5. APPROVAL TO EXTEND A PROFESSIONAL SERVICES AGREEMENT WITH NICKERSON AND ASSOCIATES, INC. TO PROVIDE PROJECT MANAGEMENT AND CONTRACT ADMINISTRATIVE SUPPORT SERVICES FOR FISCAL YEAR 2003/2004. 6. APPROVAL OF A ONE-YEAR EXTENSION FOR A MAINTENANCE SERVICES AGREEMENT FOR STREET SWEEPING SERVICES FOR FISCAL YEAR 2OO3/2OO4. City Council Minutes 3 June 3, 2003 7. APPROVAL OF A ONE-YEAR EXTENSION OF CONTRACT FOR LANDSCAPE LIGHTING MAINTENANCE FOR FISCAL YEAR 2003/2004, PROJECT NO. 99-01. 8. APPROVAL TO AWARD A CONTRACT FOR CITYWIDE RE-STRIPING PROGRAM FOR FISCAL YEAR 2002/2003, PROJECT 2003-10. 9. APPROVAL TO SUBMIT A LETTER TO THE CALIFORNIA STATE ASSEMBLY IN SUPPORT OF AB 1495 (CHAVEZ) - AMENDMENT TO CALIFORNIA PENAL CODE SECTION 3003 (MEGAN'S LAW). 10. APPROVAL OF A RESOLUTION TO REAFFIRM THE CITY'S ADOPTION OF THE ANNUAL ASSESSMENT FOR CSA 152, AUTHORIZE RIVERSIDE COUNTY TO CONTINUE TO LEVY ASSESSMENTS, AND INDEMNIFY AND HOLD THE COUNTY HARMLESS FOR LEVYING ASSESSMENTS ON CITY PARCELS UNDER CSA 152. (RESOLUTION NO. 2003-33) MOTION - It was moved by Council Members Sniff/Henderson to, approve the Consent Calendar as recommended and with Item Nos. 3 and 10 being approved by RESOLUTION NOS. 2003-32 through 2003-33 respectively. . Council Member Perkins referenced Item No. 8, and requested the re-striping include corrections to some of the bike lanes and cigar-shaped, double lanes at intersections. Mayor Adolph noted some of the curbs at turn lanes need reflective paint so people can see them to avoid hitting them. City Manager Genovese noted it may be necessary to change the contract to address some of these issues because the current contract is for re-striping what currently exists. He stated it may be possible to hold off on some of the re-striping and bring those areas back for redesign approval. Public Works .Director Jonasson noted some areas are in bad need of re-striping, and from a liability standpoint, he feels the current re-striping program should go forward and before the next re-striping program, redesign the areas that need correction. He added it may be possible to address some areas, such as the cigar-shaped areas. Council Member Perkins suggested the possibility of placing a double-skip-line on the approach for left-turn pockets. City Council Minutes 4 June 3, 2003 Mr. Jonasson advised solar-powered, raised-pavement markers can be used in some of the left-turn entrances. Mr. Genovese stated staff will address areas that can be done by change order and don't require new engineering, and will bring back a master striping program. Council Member Henderson stated she understood some of the bike lanes cannot be widened. Council Member Perkins voiced concern about bikers losing control when the asphalt ledge is in the middle of the bike lane, and that is why he supports wider bike lanes. Mr. Genovese advised a number of bike-lane issues are being studied, and a Citywide bike plan will be coming back to Council during next fiscal year. Motion carried unanimously. MINUTE ORDER NO. 2003-49. BUSINESS SESSION 1. CONSIDERATION OF THE WHITEWATER RIVER MUNICIPAL STORM WATER PERMIT IMPLEMENTATION AGREEMENT WITH RIVERSIDE COUNTY FLOOD CONTROL AND WATER CONSERVATION DISTRICT. Public Works Director Jonasson presented the staff report. In response to Council Member Henderson, Mr. Jonasson stated if a problem is found, the City would have to show some means of addressing it. He stated the City will still be responsible for cleaning weeds out of the channel. The only difference will be record keeping to show the situation is being addressed. In response to Council Member Osborne, Mr. Jonasson stated, currently, the City does not have a fee, and staff would have to come back to Council to implement one. Mayor Adolph asked what the City's responsibility is within gated communities. Mr. Jonasson stated the City is responsible at the point the water enters public right-of-way. He didn't believe the City is responsible for monitoring within private developments. City Council Minutes 5 June :3, 2003 Council Member Sniff asked if this involves waterways that potentially lead to the Whitewater River, and what CVWD's role is in this. Mr. Jonasson stated, in theory, any waterway that leads to the Whitewater River would be subject to these requirements. He noted the NPDES permit applies to anything determined to be an environmentally-sensitive area. Assistant City Engineer Speer stated CVWD will monitor any drainage outlets that let water into the channel. However, the City has mostly retention basins and very little drainage goes into the channel. The City's monitoring and implementation has more to do with prevention of pollution into any of the blue line streams on USGA maps. Council Member Sniff commented on the evacuation channel not being functional, and asked if the drain pipe installed at Highway 111 and Washington Street is still functional. Mr. Speer advised that drain pipe has been superceded with gravity storm drains. .r---- MOTION It was moved by Council Members Henderson/Sniff to authorize the ~ City Manager to execute the Whitewater River Municipal Stormwater Permit Implementation Agreement with Riverside County Flood Control and Water Conservation District. Motion carried unanimously. MINUTE ORDER NO. 2003-50. 2. CONSIDERATION OF COLORS FOR THE "WALK THROUGH RAINBOW" ART PIECE. Community Services Director Horvitz presented the staff report. Council Member Sniff questioned the rationale of painting the rainbow all blue. Ms. Horvitz stated some negative comments have been received about the art piece because of rainbows being representative of an alternative lifestyle, and the art piece has been graffitied with sentiments along that line. Council Member Adolph stated he doesn't feel all blue against the background of the blue tennis courts will show up verg well. City Council Minutes 6 June 3, 2003 Council Member Henderson voiced opposition to changing the colors because some people choose to be negative. She suggested placing a quail art piece in front of the rainbow to identify the rainbow with the City seal. Council Member Sniff concurred, and suggested including an ornamental palm to tie into the City seal. Council Member Osborne concurred. Council Member Perkins noted a quail art piece is likely to be stolen or vandalized. He feels different shades of blue would be very unique and attractive, and strongly supports that versus a lot of colors. Mayor Adolph suggested using a color other than blue if various shades of the same color are going to be used. He supported using the same rainbow colors and making the art piece into something other than what has been implicated. He stated he doesn't support changing the colors because of the opinion of a few individuals. Council Member Henderson noted art pieces have been damaged in other areas of the City but she feels the community should continue to strive to meet the highest goals possible. MOTION -It was moved by Council Members Henderson/Sniff to utilize the colors in the City seal (starting with green) to paint the "Walk Thru Rainbow" art piece, and direct the Cultural Arts Commission to look into the placement of a quail statue in front of the art piece, along with an ornamental palm tree. City Manager Genovese stated staff will take the matter of the quail to the Cultural Arts Commission, contact a landscape architect about placement and planting of a tree, and come back to Council for allocation of funds. If Council wishes to move forward with painting the rainbow, an allocation of funds needs to be included in the motion. Council Member Henderson amended the motion to include an allocation of $1,200 from the Art in Public Places Fund for repainting the art piece. Council Member Sniff concurred. Amended and Restated Motion - It was moved by Council Members Henderson/Sniff to utilize the colors in the City seal (starting with green) to paint the "Walk Thru Rainbow" art piece and allocate $1,200 from the Art in Public Places Fund for the repainting, and direct the Cultural Arts Commission to look into the placement of a quail statue in front of the art piece, along with an ornamental palm tree. Motion carried unanimously. MINUTE ORDER NO. 2003-51. City Council Minutes 7 June 3, 2003 ! 3. CONSIDERATION OF A FUNDING REQUEST FOR FIREWORKS BY THE CITY OF ~ PALM DESERT. Community Development Director Horvitz presented the staff report. Council Member Perkins stated he realizes a lot of La Quinta residents attend the fireworks at Palm Desert but he has concerns about using fireworks. They are a luxury and not a necessity, and he feels in these times the City should stay with necessities. He stated he will not support funding fireworks anywhere in the immediate future. Council Member Sniff stated he generally agrees. He is not opposed to fireworks but will not support the request because he doesn't see it as being of significant value to the City. Council Member Henderson noted the funding request is also for a concert. She stated she enjoys fireworks but believes they are becoming a fear. factor because of the dangers involved. She stated, due to a. significant number of La Quinta residents attending the event, she would support a contribution of $1,000 earmarked for the concert. If the funds cannot be delineated in that manner, she would support contributing the funds contingent upon the City receiving an executed indemnity agreement from the City of Palm Desert. Council Member Sniff stated he feels it's difficult to demonstrate the value regardless of the amount, and believes the City should concentrate on funding events in La Quinta. Mayor Adolph stated he has a problem funding fireworks in La Quinta, and definitely can't support them elsewhere because he believes charity begins at home. He also is not impressed with burning up $1,000. He pointed out Indio has a fireworks show and doesn't ask other cities to contribute. Council Member Henderson stated some residents have asked if the City is going to have any events for the upcoming holidays. Since the City now has a place to hold events, she suggested having the two commissions look into planning a small recognition of the holidays. Mayor Adolph spoke in support of band concerts, and noted the City gets recognition for having them even if the attendance is Iow. ---- Council concurred to direct staff to send a letter to the City of Palm Desert .~ respectfully declining to participate. City Council Minutes 8 June 3, 2003 4. CONSIDERATION OF WASTE MANAGEMENT OF THE DESERT'S REQUEST FOR A CPI-BASED RATE INCREASE PURSUANT TO SECTION 15.1 OF THE AMENDED AND RESTATED AGREEMENT FOR THE COLLECTION, TRANSPORTATION, AND DISPOSAL OF MUNICIPAL SOLID WASTE. Community Development Director Herman presented the staff report. Council expressed appreciation for the Iow rates and excellent service provided by Waste Management. MOTION - It was moved by Council Members Sniff/Henderson to grant a $.23 per month rate increase to Waste Management of the Desert for the collection, transportation, 'and disposal of municipal solid waste. Motion carried unanimously. MINUTE ORDER NO. 2003-52. 5. SECOND READING OF ORDINANCE NO. 383 City Attorney Jenson recommended adding Section IV to read as follows: "The amendment to Section 2.70.010 relating to local residency shall not apply to current board members." Council concurred. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LA QUINTA, CALIFORNIA, AMENDING CHAPTER 2.70, SECTION 2.70.010 OF THE LA QUINTA CHARTER AND MUNICIPAL CODE RELATING TO THE INVESTMENT ADVISORY BOARD. It was moved by Council Members Sniff/Henderson to adopt Ordinance No. 383 on second reading as amended (adding "The amendment to Section 2.70.010 relating to local residency shall not apply to current board members.") Motion carried by the following vote: AYES: Council Members Henderson, Osborne, Perkins, Sniff, Mayor Adolph NOES: None ABSENT: None ABSTAIN: None STUDY SESSION - None City Council Minutes 9 June 3, 2003 i REPORTS AND INFORMATIONAL ITEMS CVAG AQMD Task Force -- Council Member Sniff reported they discussed a new ordinance dealing with PM 10 issues, and a MOU will be forwarded through the various CVAG committees then to each jurisdiction. They hope to have the ordinance in effect by the end of the year. Public Works Director Jonasson stated staff has forwarded comments on the draft and is waiting for the final model ordinance from CVAG. CVAG Human & Community Resources Committee -- Council Member Osborne stated there was a presentation about SARS at their last meeting. They also discussed the potential housing finance authority to help Iow-income housing. CVAG Executive Committee -- Mayor Adolph reported the Committee has aPproved the contractual agreement with Executive Director John Wohlmuth. C. V. Mountains Conservancy -- Council Member Sniff stated there is a combined interest to negotiate the purchase of the Joshua Hills areas as a nature preserve. He's not sure where the funding will come from, and noted the issue will require the involvement of multiple agencies. He has asked the City Attorney to look at the relationship of membership with the ability to disclose closed session items. City Attorney Jenson stated she has completed her analysis of that issue but will .be attending a Coachella Valley Attorneys luncheon on that topic tomorrow, and will complete her memo after that meeting. Desert Resorts Regional Airport Authority -- Council Member Osborne stated they are looking at new marketing issues to bring another commercial airline into the area to help with the airport expansion. He noted DRRA is the only airport in the State that is located within an Empowerment Zone eligible for Federal tax credits and an Enterprise Zone eligible for California tax credits. Mayor Adolph referenced a "Dark Cloud Over California" video shown at CVAG's Executive Committee last night, and suggested getting a copy to show here. Council Member Henderson stated she understands staff has already requested a copy. Palm Springs Desert Resorts Convention & Visitor's Authority -- Council Member Henderson noted the Authority is wrapping up their three-day event tonight, and --- holding a "Weathermen's Weekend" this week to convince weathermen that it is not hot in the Valley. City Council Minutes 10 June 3, 2003 SunLine Transit Agency -- Mayor Adolph referenced an issue about a street sweeper purchase that was reported in the newspaper. He stated it seems obvious the Board was not aware of what had transpired, and will be making sure it doesn't happen again. Coachella Valley Economic Partnership -- In response to Council Member Henderson, Mayor Adolph confirmed new Executive Director Pat Melvin is on board. All other reports were noted and filed. PUBLIC COMMENT Audrey Ostrowsky asked for special permission to address the Council at this time on an issue related to street sweeping. She suggested the street sweeping schedule be posted on signs so residents know when to remove their vehicles from the curb for proper street cleaning. Council Member Perkins noted some cities post one side of the street for no parking between 8:00 a.m. and Noon on a certain day of the week and post the other side for a different day. Council Member Sniff asked if the streets are cleaned weekly, to which City Manager Genovese responded, "Yes." DEPARTMENT REPORTS Council Member Henderson referenced the requests to rename The La Quinta Park after Deputy Bruce Lee, and commented on the need to send a response. She noted the City has directed the Cultural Arts Commission to work on a memorial for the Civic Center, and that could be included in the letter. After a brief discussion, City Manager Genovese stated staff will send a response to the residents informing them of what the City is doing, and how to contact the Community Services Department regarding the park-naming process. City Clerk Greek asked what date the Council prefers to hold the Volunteer Firemen's Dinner. City Council Minutes 11 June 3, 2003 ,,,, ,, [ After a brief discussion, Council concurred to schedule the dinner for June 27t". Council Member Henderson noted the League of California Cities Executive Forum will be held July 16-18, and suggested moving the regular City Council meeting of July 15th to July 22°" or 29th to enable Council Members driving to that event to be there for the first day. Council concurred to discuss an alternate date in the evening session. (See Page 23.) MAYOR AND COUNCIL MEMBERS' ITEMS Council Member Perkins expressed feelings of gratitude to the Police Chief and the Sheriff's Department for the tremendous showing of honor and respect shown during the funeral procession for Deputy Bruce Lee. Mayor Adolph stated some residents have expressed a desire for a shade structure over the tot lot play equipment at The La Quinta Park. Council Member Osborne stated he feels it would be a good addition. Council Member Perkins agreed, and suggested the equipment be painted with light colors. Council Member Henderson noted a shade structure was not part of the original park construction because of budgeting issues. She stated she is open to the idea if the funds are available. After a brief discussion, Council concurred to direct staff to come back with the costs, and City Manager Genovese advised it will be included in the budget memorandum. Mayor Adolph suggested taking an active role in encouraging water conservation by marketing the issue in the Gem and other publications. Council concurred. ---- Council Member Perkins referenced irrigation changes made at the Laguna de la Paz '~ development, and noted CVWD has staff available to assist people in learning what they can do to help. City Council Minutes 12 June 3, 2003 Council recessed to the Redevelopment Agency meeting and to and until 7:00 p.m. 7:00 P.M. PUBLIC COMMENT - None PRESENTATIONS - None PUBLIC HEARINGS 1. CONTINUED PUBLIC HEARING ON GENERAL PLAN AMENDMENT 2003-090, ZONE CHANGE 2003-111, AND SPECIFIC PLAN 2001-055, AMENDMENT NO. 1, A REQUEST TO CHANGE THE GENERAL PLAN AND ZONING DESIGNATIONS FROM TOURIST COMMERCIAL TO OFFICE COMMERCIAL, MEDIUM DENSITY RESIDENTIAL TO OFFICE AND TOURIST COMMERCIAL, AND PARK TO MEDIUM DENSITY RESIDENTIAL; REVISING THE DEVELOPMENT STANDARDS FOR RESIDENTIAL USES INCLUDING ATTACHED, CLUSTER, AND DETACHED UNITS; AND CONSIDERATION OF A DEVELOPMENT AGREEMENT. CALIFORNIA INTELLIGENT COMMUNITIES AND THE LA QUINTA REDEVELOPMENT AGENCY. Community Development Director Herman presented the staff report. In response to Council Member Sniff, Mr. Herman reviewed the minimum lot sizes and square footage of the dwelling units. He advised the current standard allows 60% of the lot to be covered by a building. In response to Council Member Osborne, Mr. Herman stated the minimum setback requirement for the boutique hotel is 50 feet. He explained design issues, such as a wall between the casitas and the cluster homes, is not addressed in the specific plan. He added the minimum rear-yard setback for the existing homes is 20 feet. In response to Mayor Adolph, Mr. Herman clarified the previous specific plan for a 750-unit, three-story apartment complex is no longer valid. Consultant Frank Spevacek, of RSG, reviewed the Development Agreement, and the State's affordable housing mandates. He confirmed the City's policy is to disperse affordable housing units throughout the entire City. City Council Minutes 13 June 3, 2003 Mr, Herman stated the City mixes affordable housing units and market-rate units in the same area with the same characteristics. Council Member Henderson asked, except for quiet seconds, what other Iow to moderate-income housing exists on the north side of Highway I 11 in La Quinta, to which Mr. Herman responded, "none." Richard Oliphant, 44-139 Monterey Avenue, Palm Desert, gave a presentation on the project. He stated the lot elevations adjacent to the property to the east will be at or below the finished floor elevations of the properties to the east. The medical facility has been reduced from 165,000 sq. ft. to 120,000 sq. ft., and the previously-proposed large three-story building has been modified to three, two-story office buildings of 40,000 sq. ft. each. Marvin Roos, 777 E. Tahquitz Canyon Way, Palm Springs, of Mainero Smith Engineering, reviewed grading and drainage issues related to the project. In response to Council Member Sniff, Mr. Roos stated the north/south sitefall is approximately 35 feet, and although it will be built up with a levy, it will still be below the adjacent property. Paul Ehline, 81-480 National, gave a brief overview of the residential portion of the project, and stated the lot sizes along the perimeter range from 5,800 sq. ft. to 8,700 sq. ft. In response to Council Member Henderson, Mr. Ehline confirmed a significant amount of the landscape maintenance will be the responsibility of the homeowners association. He stated he believes the cluster units will accommodate families and the elderly. Mr. Ehline noted the reduction of lot widths result in wider view corridors for the existing homes to the east. In response to Council Member Osborne, Mr. Ehline stated all of the perimeter units will be single story. Council Member Sniff commented on the need for desert architecture, and energy efficient units. Mr. Ehline stated they feature the Energy Star program in their housing developments. City Council Minutes 14 June 3, 2003 In response to Council Member Osborne, Mr. Ehline stated the lot sizes are actually larger than the minimum lot size of 4,500 sq. ft. Mr. Oliphant noted the homes will not be typical tract homes and will take on custom-like features. He stated the amenity of a medical facility on the site is expected to make the hotel a success. Alfred Ferry, of Medical Surgical Systems, reviewed the plans for the medical facility. In response to Council Member Sniff, Mr. Ferry confirmed the acute care center will house patients up to 72 hours. Council Member Henderson asked if the surgeries would be elective surgeries, to which Mr. Ferry responded, "Yes." In response to Council Member Osborne, Mr. Ferry stated they are expecting to get solid commitments within 90 days from a matrix of physicians to occupy this building. Mayor Adolph asked if the project will be phased, and how they plan to handle the sensitivity of the residents to the east to mitigate some of their concerns. Mr. Oliphant stated they will comply with PM10 regulations during grading of the site. As for phasing, the project will begin with the hotel foundation and first phase of the casitas. The hotel foundation will be poured before breaking ground on the medical facility or houses. Once the hotel is enclosed, they will begin the second medical building and second phase of housing, and when the hotel is 75% complete, they will be able to complete the project. Council Member Osborne asked the developer if they have held public meetings to review changes to the project since the March Planning Commission meeting. Mr. Oliphant responded, "No," but stated they have sent letters and emails to keep residents informed. Council Member Sniff stated he would feel better if the hotel was occupied and functional before the final phases are completed. Mr. Oliphant stated it's not financially feasible to delay the hotel development. Council Member Sniff questioned the value of a hotel that is only 75% complete, and asked about the timeframe for completing it. City Council Minutes 15 June 3, 2003 Mr. Oliphant stated a construction schedule is part of the Disposition and Development Agreement (DDA). They also have to review contraCt prices with the City before getting started. He stated they have financing in place for a complete hotel, casitas, and medical offices. Council Member Sniff asked if they have considered an alternate name for the project, and Mr. Oliphant stated they are working on it. Council Member Perkins asked about the two restaurants. Mr. Oliphant stated he cannot get a commitment from a restaurant until he has an approved project but they want a very nice dinner house and a restaurant that serves three meals a day. The Mayor declared the PUBLIC HEARING OPEN at 8:33 p.m. Dave Lippert, 78-745 Rockberry Court, stated it seems like a very well-planned project, and he likes the architecture of the houses. However, he doesn't feel a boutique hotel is a conformed use adjacent to single family homes. He --- questioned the following meeting City standards: number of parking spaces; medium-density residential acreage; lot sizes; and park space. He stated he sent several letters 'to the developer requesting information on the lot sizes, grading plans, and setbacks but has not received a response. He also sent a letter to the City with no response received. He would like to see the grading plan, and a line-of-sight study for a view corridor to the west from existing homes. He also believes a new traffic study should be done due to the substantial changes to the' project. He urged Council to consider these issues. In response to Mayor Adolph, City Attorney Jenson confirmed the Council must make a compatibility finding in order tO approve the zone change. She noted a change in use does not make the use inherently or legally incompatible. She advised the boutique hotel requires a site development permit, which has to be approved by the Planning Commission and can come before the Council should the Council request it. Mayor Adolph stated he is a proponent of compatibility but noted this is somewhat different from previous compatibility problems where developers sell a portion of the tract and build smaller homes adjacent to the earlier phase of larger homes. --- In response to Council Member Henderson, Mr. Herman stated the grading plan will come back through the public hearing process before the Planning . Commission. City Council Minutes 16 June 3, 2003 Helga Paul,45-395 Coldbrook Lane, stated she supports the project because it will eliminate blowsand from the site. She understands the grading will be at the same elevation as her lot or lower, and noted that is the issue most of the residents are concerned about. She hopes the sand dune will be graded down early in the project, and asked about the lot sizes adjacent to her lot. Mr. Herman advised the grading cannot begin until after the site development permit is approved, which will be done at a future public hearing. Gary Boydston, 78710 Rockberry Court, stated he feels the developer has made a lot of improvements to the project. He suggested some of the first homes built adjacent to the existing homes, include casitas to be more compatible with existing homes. He also suggested the minimum lot size be listed as 5,500 sq. ft. instead of 4,500 sq. ft. and that larger lots be located along the perimeter. He is pleased the medical facility has been reduced in size, and hopes the lighting issue for the project will be addressed. He supports terracing down the grade toward the southeasterly corner of the site so the elevation is at least level with existing homes or lower. He feels a 50-foot setback between residential and commercial is a little close but hopes the grade elevation will be kept Iow. He also believes having a boutique hotel adjacent to residential homes with children and barking dogs could be a conflict. He urged Council and the developer to continue working with the existing residents in development of this project. Emily Hemphill, attorney for the applicant, pointed out compatibility is what the Council must find to approve the zoning, not land-use conformity as suggested by Mr. Lippert. She stated compatibility means two uses can co-exist by applying design standards. Regarding the 50-foot setback for the boutique hotel, which she noted is a series of one-story units and not a massive structure, the zoning requirement is only 30 feet. As for the traffic study, she advised it has been updated in relation to the changes in the project. She noted a specific plan allows modifications, and some of the proposed modifications are more stringent than what the zoning allows. The casitas, boutique hotel, and residential units will have CC&Rs and a homeowners association. She advised California Intelligent Communities is a member of Center Point LLC, which is actually the contracting developer for this project. Mayor Adolph asked if the boutique hotel would be similar to the old casitas at the La Quinta Hotel, to which Ms. Hemphill responded, "Yes." There being no further requests to speak, the Mayor declared the PUBLIC HEARING CLOSED at 9:01 p.m. City Council Minutes 17 June 3, 2003 ! In response to Council Member Perkins, Mr. Oliphant stated the height of the . health center in the middle of the boutique hotel will be about 35 feet. The remaining boutique hotel units will be one-story. Mr. Herman stated the specific plan limits the boutique hotel height to 33 feet. · Council Member Henderson referenced the concerns about the minimum lot size, and noted setting a firm standard fails to provide flexibility needed to create open spaces. She pointed out the gain of common open space guarantees landscape maintenance. As for the smaller park, she feels it will limit the number of people from other areas using the park. She noted the grading plan will be thoroughly reviewed. She feels compatibility is good within a fixed community but not for an entire City where there should be some mixed use of materials. She noted 40 of the 67 units will receive funding assistance, which is another reason the lot sizes cannot be fixed unless more land is freed up for more homes and that would mean eliminating the boutique hotel She believes the boutique hotel will be market driven, and may not become a reality. The option would be to add more moderate-income homes. Although this is a mixed-use project, she feels the architectural elements bring it together. She is pleased with the project, and feels most of the residents' concerns have been addressed. Council Member Osborne stated he feels the grading concerns have been addressed, and he's pleased the lots adjacent to existing homes will be 5,800 sq. ft. to 8,200 sq. ft. He noted the home prices are compatible with existing homes, and believes the traffic concerns are a matter of reality. Council Member Sniff complimented Mr. Lippert for his diligence in this matter, and expressed appreciation for the hard work done by the developer. He noted it will take many steps to complete this project. Council Member Perkins stated he believes the manner in which the project is laid out makes it compatible with adjacent land uses. As for traffic concerns, he noted hotels and restaurants do not generate peak-hour traffic like commercial development. He likes the architecture, and feels it is compatible with the City. He doesn't believe the City can require completion of the hotel before allowing the balance of the project to continue, and is confident the financial institution providing the funding will guarantee the hotel is finished. He feels this is an ideal project and location. Mayor Adolph concurred, and noted this project is a lot better than some of the previously-proposed projects for this site. He also commented on the City's need for additional transient occupancy tax. City Council Minutes 18 June 3, 2003 RESOLUTION NO. 2003-34 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA QUINTA, CALIFORNIA, APPROVING A RECONFIGURATION OF THE TOURIST COMMERCIAL, PARK AND MEDIUM DENSITY RESIDENTIAL LAND USE DESIGNATIONS, AND THE ADDITION OF THE OFFICE DESIGNATION FOR THE CENTER POINT PROJECT GENERALLY BOUNDED BY MILES AVENUE ON THE NORTH, COACHELLA VALLEY STORMWATER CHANNEL ON THE SOUTH, WASHINGTON STREET ON THE WEST, AND TRACT 23995 ON THE EAST. (GENERAL PLAN AMENDMENT 2003-090 - CALIFORNIA INTELLIGENT COMMUNITIES/LA QUINTA REDEVELOPMENT AGENCY) It was moved by Council Members Sniff/Henderson to adopt Resolution No. 2003-34 as submitted. Motion carried unanimously. MOTION -It was moved by Council Members Sniff/Perkins to take up Ordinance No. 384 by title and number only and waive further reading. Motion carried unanimously. ORDINANCE NO. 384 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LA QUINTA, CALIFORNIA, APPROVING CERTAIN ZONE CHANGES TO THE CENTER POINT PROJECT GENERALLY BOUNDED BY MILES AVENUE ON THE NORTH, COACHELLA VALLEY STORMWATER CHANNEL ON THE SOUTH, WASHINGTON STREET ON THE WEST, AND TRACT 23995 ON THE EAST. (ZONE CHANGE 2003-1 I I - CALIFORNIA INTELLIGENT COMMUNITIES/LA QUINTA REDEVELOPMENT AGENCY) It was moved by Council Members Sniff/Henderson to introduce Ordinance No. 384 on first reading. Motion carried by the following vote: AYES: Council Member Henderson, Osborne, Perkins, Sniff, Mayor Adolph NOES: None ABSTAIN: None ABSENT: None RESOLUTION NO. 2003-35 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA QUINTA, CALIFORNIA, APPROVING DESIGN GUIDELINES AND DEVELOPMENT STANDARDS FOR TOURIST COMMERCIAL USES, OFFICE USES, MEDIUM DENSITY RESIDENTIAL USES, AND A NEIGHBORHOOD PARK FOR THE City Council Minutes 19 June 3, 2003 CENTER POINT PROJECT GENERALLY BOUNDED BY MILES AVENUE ON THE NORTH, COACHELLA VALLEY STORMWATER CHANNEL ON THE SOUTH, WASHINGTON STREET ON THE .WEST, AND TRACT 23995 ON THE EAST. (SPECIFIC PLAN 2001-055, AMENDMENT NO. I -CALIFORNIA INTELLIGENT COMMUNITIES/LA QUINTA REDEVELOPMENT AGENCY) It was moved by Council Members Henderson/Sniff to adopt Resolution No. 2003-35 as submitted. Motion carried unanimously. MOTION -It was moved by Council Members Sniff/Henderson to take up Ordinance No. 385 by title and number only and waive further reading. Motion carried unanimously. ORDINANCE NO. 385 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LA QUINTA, CALIFORNIA, APPROVING A DEVELOPMENT AGREEMENT BY AND BETWEEN THE CITY OF LA QUINTA AND CENTER POINT DEVELOPMENT, LLC. It was moved by Council Members Sniff/Henderson to introduce Ordinance No. 385 on first reading. Motion carried by the following vote' AYES' Council Member Henderson, Osborne, Perkins, Sniff, Mayor Adolph NOES: None ABSTAIN: None ABSENT' None JOINT PUBLIC HEARING WITH THE LA QUINTA REDEVELOPMENT AGENCY 2. JOINT PUBLIC HEARING BETWEEN THE LA QUINTA CITY COUNCIL AND THE REDEVELOPMENT AGENCY TO CONSIDER A PROPOSED DISPOSITION AND DEVELOPMENT AGREEMENT BETWEEN THE AGENCY AND CENTER POINT DEVELOPMENT, LLC, A CALIFORNIA LIMITED LIABILITY COMPANY, TO FACILITATE CENTER POINT'S CONSTRUCTION OF: 1) MEDICAL OFFICE/ CLINIC; 2) BOUTIQUE HOTEL; 3) TWO RESTAURANTS; 4) MID-PRICE SUITES HOTEL; 5) CONDOMINIUM/CASITAS DEVELOPMENT; 6) CLUSTER COURTYARD DEVELOPMENT; AND 7) SINGLE FAMILY HOME DEVELOPMENT CONTAINING NOT LESS THAN FORTY (40) HOMES RESTRICTED FOR SALE TO MMITED-INCOME BUYERS FOR PROPERTY LOCATED AT THE SOUTHEAST CORNER OF MILES AVENUE AND WASHINGTON STREET. APPLICANT: CENTER POINT DEVELOPMENT, LLC. City Council Minutes 20 June 3, 2003 Community Development Director Herman presented the staff report. Consultant Frank Spevacek gave a brief overview of the Disposition and Development Agreement (DDA). In response to Council Member Osborne, Mr. Spevacek stated the $2.5 million loan will be made after the foundations are approved for the first phase of the casitas and the hotel. The loan will be drawn over a six-month period and accrue interest only if the developer defaults. He confirmed the loan will take place prior to construction of the homes to reduce the interest cost that the developer would incur to borrow the funds, which will also reduce the City's per-unit-assistance. In response to Council Member Sniff, Mr. Spevacek advised monitoring of the agreement will take place through: 1) approvals of various documents and financing packages for the project; 2) construction activities as they relate to the DDA; on-site construction and engineering activities; and the Finance Department will oversee the cash flow. He stated the City Manager will have the ultimate responsibility of making sure everything is done legally and in a proper fashion. Council Member Sniff noted the plan to accomplish this project is creative and somewhat tenuous, and that percentages of progress are attached to various components of the project. He questioned the hotel being done in stages, instead of completing it, if 100% financing is in place. City Manager Genovese advised the City has an implementation plan for each of its projects, and the milestones in this DDA are put into a business plan and matched up with a graph or matrix, which will be used to monitor the project. Council Member Sniff stated he feels it would be more logical to complete the components as the project moves forward instead of having a series of incomplete components. Mr. Spevacek commented on the difficulty of getting hotel financing in today's market, and stated the medical facility will create room demand for a hotel. Additionally, the sale of the casitas will generate cash flow to invest back into the hotel and remove the hotel investor at an earlier date. He explained by doing this, the City does not have to put money into the hotel transaction because it is based on a land sale where the developer secures financing for the hotel. He stated the residential developer is anxious to move forward and start generating cash flow to pay for the design and drawings needed to pull permits. If the project is delayed in sequential steps, it would impact the developer's City Council Minutes 21 June 3, 2003 financing and add costs to the project, which would result in a request for reduced land value or additional assistance. He stated the intent is to move forward in a manner that gets the hotel built first but also protects the City. He stated the total cost of the hotel, including land, is projected at $15 million, He noted having spent $9.8 million for the hotel at 75 % completion, the lender will be motivated to get the project completed. Council Member Sniff continued to question why the hotel wouldn't be completed and begin producing revenue instead of moving on to other components that will be partially completed. Mr. Spevacek stated the delay was engineered in starting the rest of the project until certain milestones are accomplished. He stated it is a business decision as to what level of risk the City wishes to take. Council Member Henderson stated she was uncomfortable referring to the $2.5 million as a loan, and stated she viewed it as participation in the project to secure 40 affordable housing units. Mr. Spevacek stated the loan agreement in the DDA is for security for the City to use for foreclosure should the developer default on producing the 40 units. It will remain a loan for the 40 units as long as the units remain in the affordable housing program for a period of 45 years. Council Member Henderson asked if any component of the project will be put on hold while other components move forward. Mr. Spevacek stated the benchmarks placed on the project do not mean construction will stop. He added the plan is for the project to rise .in concert, and to achieve certain cost savings by mass grading the site and installing utilities on the entire site. The plan is also to provide some degree of incentives to get the hotel going before the developer gets to finish and start the other land uses on the site. Council Member Henderson complimented the development plan, and stated she is prepared to support it. Mayor Adolph asked if the developer is in agreement with the conditions of the DDA. He noted it's important for the other components to be near completion before the hotel is occupied because the hotel guests will not want construction going on around them. City Council Minutes 22 June 3, 2003 In response to Council Member Sniff, Mr. Spevacek stated as in all real estate transactions, this agreement relies on the private market for financing, on Hilton for concluding the hotel franchise agreement, and on stability in the world. He stated there is no absolute certainty that the project will take place without a problem but one difference in this agreement is that the City is getting paid a fair-market value for the land and not having to put money back into the project to subsidize any of the non-affordable units in the development. Richard Oliphant, 44-139 Monterey Avenue, Palm Desert, stated the deal points represented in the development agreement and the DDA are acceptable, and they are prepared to sign it. Council Member Henderson asked if the project will be built in phases. Mr. Oliphant stated the project will be phased but the phases are indexed to the hotel, and that prevents some of the phases starting that they would like to start. He stated the hotel will be moving faster than the balance of the project, and the greatest impact will be in the residential section because it will sell much faster than it can be constructed. The Mayor declared the PUBLIC HEARING OPEN at 10:12 p.m. Emily Hemphill, attorney for the applicant, noted the terms of the agreement require the developer to diligently pursue construction to completion once it is started. She then commented on the substantial security provided to the City within the agreement. There being no other requests to speak, the Mayor declared the PUBLIC HEARING CLOSED at 10:1 6 p.m. RESOLUTION NO. 2003-36 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA QUINTA, CALIFORNIA, APPROVING A DISPOSITION AND DEVELOPMENT AGREEMENT BETWEEN THE LA QUINTA REDEVELOPMENT AGENCY AND CENTER POINT DEVELOPMENT, LLC, FOR PROPERTY LOCATED AT THE SOUTHEAST CORNER OF WASHINGTON STREET AND MILES AVENUE (CENTER POINT DEVELOPMENT, LLC). It was moved by Council Members Sniff/Henderson to adopt Resolution No. 2003-36 as submitted. Motion carried unanimously. City Council Minutes 23 June 3, 2003 Council concurred to move the regular City Council meeting of July 15, 2003, to July 22, 2003, and to move the Planning Commission meeting forward one 'week. (See Page 11 for earlier discussion.) Council recessed to Closed Session as delineated on Page 1. The City Council meeting reconvened with no decisions being made in Closed Session which require reporting pursuant to Section 54957.1 of the Government Code (Brown Act). ADJOURNMENT There being no further business the meeting was adjourned. Respectfully submitted, _ JUNE S. GREEK, City Clerk City of La Quinta, California