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2003 06 17 CC Minutes LA QUINTA CITY COUNCIL MINUTES JUNE 17, 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 end Confer Process. 2. Public employee performance evaluation pursuant to Government Code Section 54957, Council-appointed position -- City Manager. Council recessed to Redevelopment Agency and 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 Charlie Coulter, 49-111 Washington Street, spoke regarding the need for a sound attenuation wall along Washington Street in front of the Villas of La Quinta development. He indicated he understood this issue would be on a future agenda for discussion. CONFIRMATION OF AGENDA - Confirmed ,, ANNOUNCEMENTS - None City Council Minutes 2 June 1 7, 2003 PRESENTATIONS City Manager Genovese announced the City has been awarded a Certificate of Achievement for Excellence in Financial Reporting from the Government Financial Officers Association of the United States and Canada. He expressed appreciation to the Finance Department. Finance Director Falconer expressed appreciation for the award and introduced the members of the Finance Department. Mayor Adolph announced due to technical difficulties, the "Cloudy Skies over California Cities" video will be shown at a future meeting. WRITTEN CORRESPONDENCE - None APPROVAL OF MINUTES MOTION - It was moved by Council Members Sniff/Henderson to approve the City Council Minutes of June 3, .2003, as submitted. Motion carried unanimously. CONSENT CALENDAR 1. APPROVAL OF DEMAND REGISTER DATED JUNE 17, 2003. 2. APPROVAL OF TREASURER'S REPORT FOR THE MONTH ENDING APRIL 30, 2003. 3. TRANSMITTAL OF REVENUE & EXPENDITURES REPORT DATED APRIL 30, 2003. 4. APPROVAL OF AWARD OF CONTRACT FOR JANITORIAL SERVICES FOR CITY FACILITIES. 5. ACCEPTANCE OF PROJECT 99-05B, JEFFERSON STREET MEDIAN ISLAND LANDSCAPE IMPROVEMENTS. · . City Council Minutes 3 June 17, 2003 6. ADOPTION OF A RESOLUTION DIRECTING THE CITY ENGINEER TO PREPARE THE PRELIMINARY ENGINEER'S REPORT FOR LANDSCAPE AND LIGHTING ASSESSMENT DISTRICT 89-1 FOR FISCAL YEAR 2003/2004. (RESOLUTION NO. 2OO3-37) 7. APPROVAL OF A ONE-YEAR CONTRACT EXTENSION FOR THE CITYWIDE LANDSCAPE MAINTENANCE CONTRACT FOR FISCAL YEAR 2003/2004. 8. APPROVAL OF CONTRACT CHANGE ORDER NOS. 13 AND 14 FOR PROJECT NO. 2000-11, THE LA QUINTA PARK. 9. ADOPTION OF A RESOLUTION APPROVING AN AGREEMENT FOR THE PURCHASE AND SALE OF REAL PROPERTY BETWEEN THE LA QUINTA REDEVELOPMENT AGENCY ("AGENCY") AND WILLIAM D. CALKINS AND LYNN R. KUNKLE, CO-CONSERVATORS OF THE ESTATE OF CHARLES BRIAN MURPHY, AS TO AN UNDIVIDED 25% INTEREST; LYNN R. KUNKLE, AN UNMARRIED MAN AS TO AN UNDIVIDED 25% INTEREST; AND AM PARTNERSHIP, AS TO AN UNDIVIDED 50% INTEREST ("SELLER") FOR PROPERTY LOCATED ALONG THE EAST LINE OF AVENIDA MONTEZUMA. (RESOLUTION NOS. 2003-38 AND 2003-39) 10. APPROVAL OF A CONTRACT EXTENSION WITH TRI-LAKE CONSULTANTS TO PROVIDE CONSTRUCTION INSPECTION SERVICES. 11. APPROVAL OF A REQUEST TO RELEASE PERFORMANCE SECURITY RELATED TO INSTALLATION OF A SIDEWALK ON HIGHWAY 111 IN THE POINT HAPPY AREA. 12. APPROVAL OF CONTRACT WITH RUTAN & TUCKER, LLP FOR 2003/2004 LEGAL SERVICES. MOTION -It was moved by Council Members Sniff/Perkins to approve the Consent Calendar as recommended and with Item Nos. 6 and 9 being approved by RESOLUTION NOS. 2003-37 through 2003-39 respectively. Council Member Perkins referenced Item No. 5, and commented on the need to reduce the median lighting and landscape maintenance costs. Council Member Henderson spoke to Item No. 9, and noted the 19.7 acres being purchased will be retained as open space. Motion carried unanimously. MINUTE ORDER NO. 2003-54. City Council Minutes 4 June 17, 2003 BUSINESS SESSION 1. CONSIDERATION OF A JOINT USE AGREEMENT WITH THE BOYS AND GIRLS CLUB OF COACHELLA VALLEY. Community Services Director Horvitz gave a brief staff report. MOTION - It was moved by Council Members Sniff/Henderson to approve a Joint Use of Facility and Services Agreement with the Boys and Girls Club of Coachella Valley, La Quinta Unit, and authorize staff to utilize the General Fund Account in the amount of $30,000 and CDBG Funds in the amount of $30,000 for the payments. Motion carried unanimously. MINUTE ORDER NO, 2003-55. 2. CONSIDERATION OF A RESOLUTION ADOPTING THE INVESTMENT POLICY OF THE CITY OF LA QUINTA FOR FISCAL YEAR 2003/2004. Finance Director Falconer presented the staff report, and briefly reviewed the proposed changes. He noted Section XVll of the policy lists the financial transactions that are not subject to the policy. Council Member Henderson stated she understands the Board's concern regarding this and strongly supports it. Mr. Falconer stated the amount of funds the Treasurer may invest between two and five years has been reduced to $5 million. In response to Board Member Osborne, he explained $6 million was loaned from the General Fund Reserves to the Redevelopment Agency for the library, La Fonda street improvements, and Eisenhower Drive improvements, which reduced the cash reserves. Mr. Falconer further advised the Board is recommending an increase in the LAIF percentage from 20 to 25 % due to legislation that designates the funds as City funds as opposed to State funds. Council Member Perkins stated he appreciates the new legislation but still has concerns about the State taking the money as they have done in the past. He does not support the increase, and prefers reducing it to 15%. He stated he otherwise supports the report. In response to Council Member Osborne, Mr. Falconer confirmed LAIF basically has been lowering their average yield and maturity and is well below 200 days. He explained even though the City has maintained a LAIF balance between 15% and 20% throughout the year, the current yield on short-term investments is City Council Minutes 5 June 17, 2003 very Iow and LAIF has consistently done better. Staff expects to increase the average percentage in LAIF from 17 to 21 or 22%. In response to Council Member Sniff, Mr. Falconer stated a six-month Treasury Bill return on investment is approximately 1% and the LAIF return on investment is 1.80%. In terms of risk, he explained a $2 million investment in commercial paper would be a risk of $2 million, whereas the same amount invested with LAIF would be a risk of only $500-$600 because the LAIF part of the State investment pool is $20 billion, and our percentage share is minuscule. He is not aware of any other investment that would come close to the LAIF return, and still meet the safety requirements of the investment policy. In response to Council Member Henderson, Mr. Falconer confirmed the City's LAIF percentage has been reduced from 100% eight years ago to the current 20%. He stated the new legislation clarifies the funds within the pooled investment account (LAIF) are not subject to the State budget, and that cities can withdraw funds within one day whether or not the State adopts a budget. Council Member HendersOn stated she understands Council Member Perkins' concern because the guaranteed funding the cities have from the State can be impacted a]most overnight. However, she is willing to accept the policy increase with the Finance Director's careful attention that the 25% is not being hit consistently. Council Member Sniff questioned the need to increase the percentage if the current ceiling of 20% is not being met. Mr. Falconer explained liquidity is needed to cover the demand register and emergency check requests, and the increase to 25% would provide a cushion so the parameters of the investment policy are not exceeded. Although the current ceiling is 20%, he personally likes to maintain a cushion of 2-3%. Council Member Sniff questioned the need for 25% if 22% is all that is needed. He feels this is somewhat deceptive, and believes Council Member Perkins has a valid point. Mr. Falconer advised staff has relied more on Treasury Bills because investment in commercial paper is not in the best interest of the City due to the current financial market. By increasing the percentage in LAIF, the City would be increasing its short-term investment alternatives. City Manager Genovese noted it's difficult to invest roll-over investments in another Treasury Bill in a day's time, and the LAIF increase will allow the City Council Minutes 6 June 17, 2003 Finance Director, for a short period of time, to invest up to 25% in LAIF until the new investment is made into a Treasury Bill. He advised it's a mechanism for managing investments. Mr. Falconer advised when the City receives a large sum of money, such as property taxes, a cash-flow projection has to be done to determine how the funds are needed, and until that determination is made, staff has to make a decision on where to invest the funds on a short-term basis. Typically, commercial paper has been used, and with the increase, LAIF would probably be used instead. In response to Council Member Osborne, Mr. Falconer confirmed the LAIF balance has averaged 17 %, and staff will continue keeping a close eye on LAIF. He believes the' Board feels the increase will allow a safer investment of City funds. Council Member Perkins stated he respects the Finance Department but has no faith in the State, and remains adamant about not going higher than 20%. Mr. Falconer stated due to the realization that new legislation can be changed, staff will continue monitoring LAIF closely. In response to Council Member Osborne, Mr. Falconer stated the Board has recommended an increase for Freddie Mac to $7.5 million because they feel the restatement of earnings will impact the equity market as opposed to the bonds. In response to Mayor Adolph, Mr. Falconer confirmed the Investment Advisory Board is recommending the increase in LAIF, and that LAIF is the only issue where Council has voiced previous concerns. Mayor Adolph stated he supports the increase if staff and the Board feel safe in their recommendation, and commented on the success of their track record. Council Member Sniff commented on the uncertain condition of the State's finances, and the risk of legislation changing overnight. He feels changing the cap for a potential 1 or 2% is too risky. Council Member Henderson asked for clarification that the request to increase LAIF came directly from the Board, to which Mr. Falconer responded, "Yes." She stated she sees this as a tool and is prepared to support it. City Council Minutes 7 June 17, 2003 In response to Council Member Perkins, Mr. Falconer stated staff can continue working with a ceiling of 20% but given the current market and concerns about commercial paper, the feel 25% would provide greater flexibility. RESOLUTION NO. 2003-40 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA QUINTA, CALIFORNIA, APPROVING AND ADOPTING THE AMENDED INVESTMENT POLICY FOR FISCAL YEAR 2003/2004. It was moved by Council Members Henderson/Osborne to adopt Resolution No. 2003-40 as submitted. Council Member Perkins stated he doesn't want to vote against the entire policy but can't support the LAIF increase. Council Member Henderson noted he can go on record opposing the one issue. Council Member Sniff suggested dealing with the LAIF issue separately but there was no consensus to do so. · Motion carried with Council Members Perkins and Sniff voting NO. 3. CONSIDERATION OF APPOINTMENTS TO THE ARCHITECTURE AND LANDSCAPE REVIEW COMMITTEE, COMMUNITY SERVICES COMMISSION, CULTURAL ARTS COMMISSION, HISTORIC PRESERVATION COMMISSION, INVESTMENT ADVISORY BOARD, AND PLANNING COMMISSION. City Clerk Greek presented a brief staff report. Architecture and Landscape Review Committee The following applicants gave brief presentations on their backgrounds and qualifications: David Thoms Cathy O'Connell (John Burchfield was not present) ; City Council Minutes 8 June 17, 2003 Ballot No. 1 Council Member Henderson voted for David Thoms Council Member Osborne voted for David Thoms Council Member Perkins voted for David Thoms Council Member Sniff voted for Cathy O'Connell Mayor Adolph voted for David Thoms MOTION -It was moved by Council Members Sniff/Henderson to appoint David Thoms to a two-year term on the Architecture and Landscape Review Committee effective July 1, 2003. Motion carried unanimously. MINUTE ORDER NO. 2003-56. Community Services Commission After a brief discussion, Council concurred to continue this portion of the interviews until 7:00 p.m. (See Page 11) 'Cultural Arts Commission The following applicants gave brief presentations on their backgrounds and qualifications: Elaine Reynolds Michael Murdock William Schinsky Michael Hinkle Else Louden (Stu Bailey was not present; Joan Moloughney withdrew her application) Ballot No. 1 Council Member Henderson voted for Elaine Reynolds and Else Louden Council Member Osborne voted for Elaine Reynolds and Else Louden Council Member Perkins voted for Elaine Reynolds and Else Louden Council Member Sniff voted for Elaine Reynolds and Else Louden Mayor Adolph voted for Elaine Reynolds and Else Louden MOTION - It was moved by Council Members Sniff/Henderson to appoint Elaine Reynolds and Else Louden to two-year terms on the Cultural Arts Commission effective July 1, 2003. Motion carried unanimously. MINUTE ORDER NO. 2003-57. City Council Minutes 9 June 1 7, 2003 r--Ill __ Historic Preservation Commission The following applicants gave brief presentations on their backgrounds and qualifications: Archie Sharp Allan Wilbur (Maria Puente was not present) A brief discussion ensued about there being only one application but two vacancies in the non-professional (citizen members) position, and two applications but only one vacancy in the professional position. There was consensus to place Maria Puente's name on the ballot for the non-professional (citizen member) position. Ballot; No. 1 Council Member Henderson voted for Archie Sharp and Maria Puente (non- -- professional); Allan Wilbur (professional) Council Member Osborne voted for Archie Sharp and Maria Puente (non- professional); Allan Wilbur (professional) Council Member Perkins voted for Archie Sharp and Maria Puente (non- professional); Allan Wilbur (professional) Council Member Sniff voted for Archie Sharp and Maria Puente (non- professional); Allan Wilbur (professional) Mayor Adolph voted for Archie Sharp and Maria Puente (non- professional); Allan Wilbur (profesSional) MOTION -It was moved by Council Members Sniff/Osborne to appoint Archie Sharp and Maria Puente (non-professionals) and Allan Wilbur (professional) to three-year terms on the Historic Preservation Commission effective July 1, 2003. Motion carried unanimously. MINUTE ORDER NO. 2003-58. --- Council recessed to and until 7:00 p.m. City Council Minutes 10 June 17, 2003 7:00 P.M. PUBLIC COMMENT - None PRESENTATIONS David Willmon, regional representative for the League of California Cities, presented a Certificate of Completion to Mayor Adolph for completion of the Mayors and Council Members Academy. He also invited Council to attend a press conference to be held Wednesday in Palm Springs by the Local Government Coalition. PUBLIC HEARINGS - None BUSINESS SESSION ............ continued 3. CONSIDERATION OF APPOINTMENTS TO THE ARCHITECTURE AND LANDSCAPE REVIEW COMMITTEE, COMMUNITY SERVICES COMMISSION, CULTURAL ARTS COMMISSION, HISTORIC PRESERVATION COMMISSION, INVESTMENT ADVISORY BOARD, AND PLANNING COMMISSION. (continued) Investment Advisory Board The following applicants gave brief presentations on their backgrounds and qualifications: Tom Lewis Christina Deniel Richard Jones (Garry Barnes, Jacqueline White, David Notrica were not present) City Attorney Jenson noted Mr. Notrica's involvement with Smith Barney Brokerage is a conflict of interest) Ballot No. 1 Council Member Henderson voted for Tom Lewis and Christina Deniel Council Member Osborne voted for Tom Lewis and Christina Deniel Council Member Perkins voted for Tom Lewis and Christina Deniel Council Member Sniff voted for Tom Lewis and Christina Deniel Mayor Adolph voted for Tom Lewis and Christina Deniel City Council Minutes 11 June 17, 2003 MOTION -It was moved by Council Members Sniff/Henderson to appoint Tom Lewis and Christina Deniel to three-year terms on the Investment Advisory Board effective July 1, 2003. Motion carried unanimously. MINUTE ORDER NO. 2003-59. Community Services Commission The following applicants gave brief presentations on their backgrounds and qualifications: Michael Cross (Deborah Bechard was not present) Ballot No. 1 Council Member Henderson voted for Deborah Bechard and Michael Cross Council Member Osborne voted for Deborah Bechard and Michael Cross Council Member Perkins voted for Deborah Bechard and Michael Cross Council Member Sniff voted for Deborah Bechard and Michael Cross Mayor Adolph voted for Deborah Bechard and Michael Cross MOTION -It was moved by Council Members Sniff/Osborne to appoint Deborah Bechard and Michael Cross to two-year terms on the Community Services Commission effective July 1, 2003. Motion carried unanimously. MINUTE ORDER NO. 2003-60. Planning Commission The following applicants gave brief presentations on their backgrounds and qualifications' Paul Quill Willy Paul John Burchfield Richard Daniels Robert Sylk Beryl Sandor Joseph Broido City Council Minutes 12 June 1 7, 2003 Ballot No. 1 Council Member Henderson voted for Richard Daniels and Paul Quill Council Member Osborne voted for Richard Daniels and Paul Quill Council Member Perkins voted for Willy Paul and Paul Quill Council Member Sniff voted for Willy Paul and Richard Daniels Mayor Adolph voted for Richard Daniels and Beryl Sandor MOTION -It was moved by Council Members Sniff/Henderson to appoint Richard Daniels and Paul Quill to two-year terms on the Planning Commission effective July 1, 2003. Motion carried unanimously. MINUTE ORDER NO. 2003-61. 4. SECOND READING OF 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. It was moved by Council Members Sniff/Henderson to adopt Ordinance No. 384 on second reading. Motion carried by the following vote: AYES' Council Members Henderson, Osborne, Perkins, Sniff, Mayor Adolph NOES: None ABSENT' None ABSTAIN: None 5. SECOND READING OF 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 adopt Ordinance No. 385 on second reading. Motion carried by the following vote: AYES: Council Members Henderson, Osborne, Perkins, Sniff, Mayor Adolph NOES: None ABSENT: None ABSTAIN: None City Council Minutes 13 June 17, 2003 Council recessed to Redevelopment Agency meeting. Council reconvened. STUDY SESSION - None REPORTS AND INFORMATIONAL ITEMS League of California Cities-Riverside Division -- Council Member Henderson reported the latest information seems to indicate that the State is focusing-in on withholding a total of $1.6 billion from cities, counties, and special districts, and will not be backfilling for the three-month startup period. She stated there is a general agreement by the League to buy into the concept for one year but the talk is that it will be permanent. She stated that's the purpose of the press conference Mr. Willmon referenced earlier this evening, which will be held tomorrow morning and she will be attending. All other reports were noted and filed. DEPARTMENT REPORTS - None MAYOR AND COUNCIL MEMBERS' ITEMS - None Council recessed to the Financing Authority meeting. Council reconvened. Council recessed to Closed Session as delineated on Page 1. The City Co,uncil meeting reconvened with no decisions being made in Closed Session which require reporting pursuant to Section 54957.1 of the Government Code (Brown Act). City Council Minutes 14 June 17, 2003 ADJOURNMENT There being no further business the meeting vves adjourned. Respectfully submitted, JUNE S. GREEK, City Clerk City of La Quinta, California