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2004 06 15 CC Minutes LA QUINTA CITY COUNCIL MINUTES JUNE 15,2004 A regular meeting of the La Ouinta 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. Government Code Section 54957.6, Conference with Labor Negotiators. Agency Negotiator: City Council acting as a committee of the whole. Unrepresented Employee: City Manager. 2. Public Employee Performance Evaluation pursuant to Government Code :- Section 54957, Council-appointed position - City Manager. I I , . 3. Government Code Section 54957.6, Conference with Labor Negotiator. Agency Negotiator: Thomas P. Genovese. Unrepresented Employees: Building & Safety Director, Community Development Director, and Finance Director. Council recessed to Redevelopment Agency and to Closed Session to and until the hour of 3:00 p.m. 3:00 P.M. 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). Mayor Adolph led the audience in the Pledge of Allegiance. ,.-- i City Council Minutes 2 June 15, 2004 PUBLIC COMMENT Jacques Abels and Jack Fleck, of VFW Post 855, thanked the Council for supporting Jacques Abels as the City's representative to the World War II Monument Dedication in Washington D.C. Council Member Sniff suggested a letter of appreciation be sent to Mr. Abels for attending the event. Else Loudon, Chairperson of the Cultural Arts Commission, stated she wished to assure Council that IIconcerts" was inadvertently left out of the 2004/2005 Work Plan and would be included. Carol Brandel, 53-605 Avenida Ramirez, stated she feels Animal Control Officers should be allowed to enter private properties to assist animals in distress. She referenced a particular situation wherein the' owners of a dog were out of town and the dog was tied on a short leash without access to water. She also commented on the danger of rattlesnakes along the Bear Creek Bike Path. Gary Calhoun, of Community Services Commission, expressed appreciation to the City Council for being allowed to serve on the Commission, and thanked Community Services Director Horvitz for h~r assistance in making the Commission a success. CONFIRMATION OF AGENDA Council Member Osborne requested Consent Item No.5 be moved to Business Item No.5, and that Consent Item No.8 be pulled for a separate vote due to a potential conflict of interest. ANNOUNCEMENTS - None PRESENTATIONS - None WRITTEN CORRESPONDENCE 1 . WRITTEN CORRESPONDENCE FROM THE INSTITUTE OF CRITICAL CARE MEDICINE, DATED MAY 21, 2004. Council concurred to consider this matter during the budget discussions on June 18, 2004. "----- ------"--"---- "- - --- ""- --- - -- "----- --- -" --- City Council Minutes 3 June 15, 2004 2. WRITTEN CORRESPONDENCE FROM F. MICHAEL WILES ON BEHALF OF :- THE PALMS' HOMEOWNERS, RECEIVED MAY 27,2004. t . Council concurred to refer the letter to staff. 3. WRITTEN CORRESPONDENCE FROM FRANK JONES REGARDING THE SANTA ROSA AND SAN JACINTO MOUNTAINS NATIONAL MONUMENT DOCUMENTARY, DATED MAY 27, 2004. . Council concurred to consider this matter during the budget discussions on June 18, 2004. 4. WRITTEN CORRESPONDENCE REGARDING A FUNDING REQUEST BY THE LA QUINTA ARTS FOUNDATION. . Council concurred to consider this matter during the budget discussions on June 18, 2004. ¡- Mayor Adolph referenced a letter from the City Clerk's Association of California expressing appreciation for City Clerk June Greek volunteering to assist with the > International Institute of Municipal Clerks Conference that will be held in Anaheim . in May 2006. APPROVAL OF MINUTES MOTION - It was moved by Council Members Sniff/Henderson to approve the City Council Minutes of June 1, 2004, as submitted. Motion carried unanimously. CONSENT CALENDAR 1. APPROVAL OF DEMAND REGISTER DATED JUNE 15, 2004. 2. TRANSMITTAL OF TREASURER'S REPORT DATED APRIL 30, 2004. 3. TRANSMITTAL OF REVENUE & EXPENDITURES REPORT DATED APRIL 30, 2004. ,.-- 4. APPROVAL OF AN AMENDED AGREEMENT FOR LEGAL SERVICES WITH . RUTAN AND TUCKER, LLP. , City Council Minutes 4 June 15, 2004 5. SEE BUSINESS ITEM NO.5. 6. ADOPTION OF A RESOLUTION GRANTING CONDITIONAL APPROVAL OF A FINAL MAP AND SUBDIVISION IMPROVEMENT AGREEMENT FOR TRACT MAP 31202-1, RANCHO SANTANA, DESERT CHEYENNE, INC. (RESOLUTION NO. 2004-064) 7. ADOPTION OF A RESOLUTION GRANTING CONDITIONAL APPROVAL OF A FINAL MAP AND SUBDIVISION IMPROVEMENT AGREEMENT FOR TRACT MAP 31202-2, RANCHO SANTANA, DESERT CHEYENNE, INC. (RESOLUTION NO. 2004-065) 8. APPROVAL TO EXTEND A PROFESSIONAL SERVICES AGREEMENT WITH NICKERSON & ASSOCIATES, INC. TO PROVIDE PROJECT MANAGEMENT AND CONTRACT ADMINISTRATIVE SUPPORT SERVICES FOR FISCAL YEAR 2004/2005. (See separate action below.) 9. AUTHORIZATION FOR OVERNIGHT TRAVEL FOR THREE MEMBERS OF THE CITY COUNCIL, THE CITY MANAGER, AND ASSISTANT CITY MANAGER TO ATTEND THE LEAGUE OF CALIFORNIA CITIES ANNUAL CONFERENCE IN LONG BEACH, CALIFORNIA, TO BE HELD SEPTEMBER 17-19, 2004. 10. APPROVAL OF A MAINTENANCE SERVICES AGREEMENT WITH CLEAN STREET TO PROVIDE STREET SWEEPING SERVICES FOR FISCAL YEAR 2004/2005. 11. APPROVAL OF A CONTRACT EXTENSION WITH TRI-LAKES CONSULTANTS TO PROVIDE CONSTRUCTION INSPECTION SERVICES. 12. ADOPTION OF A RESOLUTION ASSIGNING RETAIL VALUE TO CERTAIN CITY ECONOMIC DEVELOPMENT ITEMS. (RESOLUTION NO. 2004-066) . 13. APPROVAL OF OVERNIGHT TRAVEL FOR A CODE COMPLIANCE OFFICER TO ATTEND THE SOUTHERN CALIFORNIA ASSOCIATION OF CODE ENFORCEMENT OFFICIALS COMMUNITY RELATIONS AND STRATEGIC lEADERSHIP TRAINING IN ANAHEIM, CALIFORNIA, JUNE 25-26, 2004. 14. APPROVAL TO APPROPRIATE INFRASTRUCTURE FUNDS FOR THE SIMON DRIVE AND WASHINGTON STREET TRAFFIC SIGNAL IMPROVEMENTS. 15. APPROVAL OF PLANS, SPECIFICATIONS, AND ENGINEER'S ESTIMATE, APPROPRIATION OF FUNDING, AND AUTHORIZATION TO ADVERTISE FOR BID THE HIGHWAY 111 LANDSCAPE MODIFICATION IMPROVEMENTS, PROJECT 2004-01. -----...-- -------,-~."-_. -- "--~- -. -- ----" - - - - ~- -- . City Council Minutes 5 June 1 5, 2004 16. APPROVAL OF A LOAN AGREEMENT BETWEEN THE LA QUINT A r-- ¡ REDEVELOPMENT AGENCY AND THE CITY OF LA QUINT A OF UP TO I I $5,800,000 TO LA QUINTA REDEVELOPMENT PROJECT NO.2 FOR THE ACQUISITION OF PROPERTY AT THE NORTHWEST CORNER OF DUNE PALMS ROAD AND AVENUE 48. MOTION - It was moved by Council Members Sniff/Henderson to approve the Consent Calendar as recommended and amended with the exception of Item Nos~ 5 and 8 and with Item Nos. 6, 7, and 12 being approved by RESOLUTION NOS. 2004-064 through 2004-066 respectively. Motion / carried unanimously. MINUTE ORDER NO. 2004-66. Mayor Adolph referenced Item No.1 5, and commented on the need for some undulation and height element in the project. City Manager Genovese advised staff will confirm with the landscape architect that undulation is included in the project. He indicated the pork chop median area will come back to Council at a later date. Item No.8 MOTION - It was -moved by Council Members Sniff/Henderson to approve r-- Consent Item No.8, authorizing the City Manager to extend a Professional r Services Agreement for a period of one year with the firm of Nickerson & . Associates, Inc. (NAI Consulting) in an amount not to exceed $150,800 to provide project management and contract administrative support services. Motion carried with Council Member Osborne ABSTAINING due to a potential conflict of interest. MINUTE ORDER NO. 2004-67. BUSINESS SESSION 1 . CONSIDERATION OF A RESOLUTION ADOPTING THE INVESTMENT POLICY OF THE CITY OF LA QUINT A FOR FISCAL YEAR 2004/2005. Finance Director Falconer presented the staff report. In response to Council Member Osborne, Tom Lewis, Chairman of the Investment Advisory Board, explained the purpose of the change under Payment and Custody (Page 13) is to clarify the language and to bring it. in line with the current industry standard. ,-- In response to Council Member Henderson, Mr. Lewis stated the change under State of California and City of La Quinta Limitations - Corporate Notes (Page 11) was partly due to the three major principles of the policy, safety, City Council Minutes 6 June 15, 2004 liquidity, and rate. He commented on the importance of diversification as the City's portfolio grows, and stated the Board feels corporate notes of high quality and short term are appropriate investments. Council Member Henderson indicated she would vote to adopt the Investment Policy but still prefers LAIF at 20% instead of 25 % as reflected in the document. Mr. Lewis explained the change to more open reporting over the last few years has caused the Board to be more comfortable with LAI F, and that it's difficult to find another investment with the safety and return on investment that LAIF has. Council Member Henderson commented on the need to monitor potential political involvement. Mr. Lewis indicated the Board is very comfortable with LAIF but understands the need to monitor it on an ongoing basis. Council Member Perkins stated he is pleased to hear communication with LAI F has improved but is also pleased the Board is keeping its eyes open for a replacement investment. Mayor Adolph expressed appreciation to the Board and the Finance Department for keeping the City's finances in order. RESOLUTION NO. 2004-067 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA QUINT A, CALIFORNIA, APPROVING AND ADOPTING THE AMENDED INVESTMENT POLICY FOR FISCAL YEAR 2004/2005. It was moved by Council Members Osborne/Sniff to adopt Resolution No. 2004-067 as submitted. Motion carried unanimously. 2. CONSIDERATION OF APPOINTMENTS TO VARIOUS BOARDS, COMMISSIONS, AND COMMITTEES. Mayor Adolph expressed appreciation for the applicants' willingness to serve the community, and commented on the difficulty of making the selections. City Clerk Greek presented the staff report. ARCHITECTURAL AND LANDSCAPING REVIEW COMMITTEE (two positions) ----'----- '- - ------- - --,-,- -- ---- - -~ City Council Minutes 7 June 1 5, 2004 r- The following applicants gave brief presentations on their backgrounds and ¡ qualifications: ! . Bill Bobbitt Frank Christopher (Pearle Mintz was not present) Council Member Henderson suggested deferring this appointment until after the Planning Commission interviews since Mr. Christopher has also submitted a Planning Commission application. Council Member Sniff noted Mr. Christopher has indicated a preference for the Architectural and Landscaping Review Committee. Council concurred to go forward with the selection. Ballot No.1 Council Member Henderson voted for Bill Bobbitt and Frank Christopher Council Member Osborne voted for Bill Bobbitt and Frank Christopher ~ Council Member Perkins voted for Bill Bobbitt and Frank Christopher Council Member Sniff voted for Bill Bobbitt and Frank Christopher Mayor Adolph voted for Bill Bobbitt and Frank Christopher MOTION - It was moved by Council Members Sniff ¡Osborne to appoint Bill Bobbitt and Frank Christopher to two-year terms on the Architectural and Landscaping Review Committee effective July 1, 2004. Motion carried unanimously. MINUTE ORDER NO. 2004-68. COMMUNITY SERVICES COMMISSION (three positions) The following applicants gave brief presentations on their backgrounds and qualifications: Tom Vaughn (Victoria St. Johns, Ed Hackney, and Thomas Martin were not present and Gary Calhoun withdrew his application) r-- I I í , I , I , City Council Minutes 8 June 15, 2004 Ballot No.1 Council Member Henderson voted for Ed Hackney, Victoria St. Johns, and Tom Vaughn Council Member Osborne voted for Ed Hackney, Victoria St. Johns, and Tom Vaughn Council Member Perkins voted for Ed Hackney, Victoria St. Johns, and Tom Vaughn Council Member Sniff voted for Ed Hackney, Victoria St. Johns, and Tom Vaughn Mayor Adolph voted for Ed Hackney, Victoria St. Johns, and Tom Vaughn MOTION - It was moved by Council Members Sniff/Henderson to appoint Ed Hackney, Victoria St. Johns, and Tom Vaughn to two-year terms on the Community Services Commission effective July 1, 2004. Motion carried unanimously. MINUTE ORDER NO. 2004-69. CULTURAL ARTS COMMISSION (three positions) The following applicants gave brief presentations on their backgrounds and qualifications: Sheldon Brodsky Andrea Gassman Irene Conover Charlene Lane Ballot No.1 Council Member Henderson voted for Sheldon Brodsky, Andrea Gassman, and Charlene Lane Council Member Osborne voted for Sheldon Brodsky, Andrea Gassman, and Charlene Lane Council Member Perkins voted for Sheldon Brodsky, Andrea Gassman, and Charlene Lane Council Member Sniff voted for Sheldon Brodsky, Andrea Gassman, and Charlene Lane Mayor Adolph voted for Sheldon Brodsky, Andrea Gassman, and Charlene Lane ~ _u_-~---- - --- ----- --~--~- ------- - ---- , ~ ----- City Council Minutes 9 June 1 5, 2004 ,-- MOTION - It was moved by Council Members Sniff/Osborne to appoint ¡ Sheldon Brodsky, Andrea. Gassman, and Charlene Lane to two-year terms on j the Cultural Arts Commission effective July 1, 2004. Motion carried unanimously. MINUTE ORDER NO. 2004-70. . HISTORIC PRESERVATION COMMISSION (two positions) The following applicants gave brief presentations on their backgrounds and qualifications:. Leslie Mouriquand Dr. John Duff . (Robert Wright was not present) City Attorney Jenson advised of the need to modify the ordinance if non- residents are appointed to serve on the Commission. Council Member Henderson stated she understood the residency requirement for this Commission was reinstated because of the population growth in the City. ,-- Ms. Jenson advised staff can draft an amendment to the Ordinance to allow non-residents on the Commission or grandfather in current members if that is Council's desire. In response to Council Member Osborne, City Clerk Greek stated the recent exemption for current members who live outside of the City to remain on the commission was for only the Investment Advisory Board. Council Member Osborne suggested allowing the same residency exemption for this Commission. Council Member Henderson stated she understood the exemption applied only' until their terms expired, and suggested if a non-resident is appointed, that it be contingent upon adoption of an ordinance. Mayor Adolph stated he prefers having City residents represented on the Commissions unless none are available. r- ì I I I \ City Council Minutes 10 June 15, 2004 Ballot No.1 Council Member Henderson voted for Leslie Mouriquand and Robert Wright Council Member Osborne voted for Leslie Mouriquand and Robert Wright Council Member Perkins voted for Leslie Mouriquand and John Duff Council Member Sniff voted for Leslie Mouriquand and Robert Wright Mayor Adolph voted for Robert Wright and John Duff MOTION - It was moved by Council Members Sniff/Henderson to appoint Leslie Mouriquand (Professional position) and Robert Wright (Resident position) to three-year terms on the Historic Preservation Commission effective July 1, 2004, contingent on an amendment to the Ordinance. Motion carried unanimously. MINUTE ORDER NO. 2004-71. (See City Council Minutes dated January 16, 1996.) INVESTMENT ADVISORY BOARD (three positions) The following applicants gave brief presentations on their backgrounds and qualifications: Cyrille Mahfoud Milton Olander Donald Moulin Randy Rassi Jacqueline White (Wayne LeBlang was not present and Tina Norrdin withdrew her application) Ballot No.1 Council Member Henderson voted for Cyrille Mahfoud, Milton Olander, and Donald Moulin Council Member Osborne voted for Cyrille Mahfoud, Milton Olander, and Donald Moulin Council Member Perkins voted for Milton Olander, Donald Moulin, and Jacqueline White Council Member Sniff voted for Cyrille Mahfoud, Milton Olander, and Donald Moulin Mayor Adolph voted for Milton Olander, Donald Moulin, and Jacqueline White ¡~~ --".-- - ~ ... ~-~ -- -- - . City Council Minutes 11 June 1 5, 2004 -- MOTION - It was moved by Council Members Sniff/Osborne to appoint : Cyrille Mahfoud, Milton Olander, and Donald Moulin to three-year terms on ~ the Investment Advisory Board effective July 1, 2004. Motion carried unanimously. MINUTE ORDER NO. 2004-72. (See Page 12 for the Planning Commission interviews.) Council recessed to and until 7:00 p.m. 7:00 P.M. PUBLIC COMMENT - None PRESENTATIONS - None PUBLIC HEARINGS r- 1. PUBLIC MEETING/HEARING ON LANDSCAPE AND LIGHTING ASSESSMENT I DISTRICT 89-1', FISCAL YEAR 2004/2005. . Public Works Director Jonasson presented the staff report. The Mayor declared the PUBLIC HEARING OPEN at 7:04 p.m. There being no requests to speak, the Mayor declared the PUBLIC HEARING CLOSED at 7:05 p.m. Council Member Henderson noted .staff will be coming back with options to address the issue of the costs being higher than the revenues. Council Member Osborne noted the current per unit cost has been in effect for a long time. RESOLUTION NO. 2004-068 A RESOLUTION OF THE CITY COUNCIL OF THE, CITY OF LA QUINT A, CALIFORNIA, CONFIRMING THE DIAGRAM AND ASSESSMENTS FOR FISCAL YEAR 2004/2005 LANDSCAPE AND LIGHTING ASSESSMENT -- DISTRICT 89-1 (PURSUANT TO THE LANDSCAPE AND LIGHTING ACT OF 1972). I City Council Minutes 12 June 15, 2004 It was moved by Council Members Sniff/Henderson to adopt Resolution No. 2004-068 as submitted. Motion carried unanimously. 2. PUBLIC HEARING ON AN APPEAL OF CONDITION NOS. 20 AND 66 OF PLANNING COMMISSION RESOLUTION 2004-031 FOR SITE DEVELOPMENT PERMIT 2004-804 (JAMES PAUL). APPELLANT: 111 VENTURE LLC, (c/o MR. G. SCOTT GAYNER, MANAGING MEMBER). The Mayor declared the PUBLIC HEARING OPEN at 7: 10 p.m. Community Development Director Herman advised the appellant has requested a continuance to July 6, 2004. MOTION - It was moved by Council Members Sniff/Henderson to continue the public hearing for an appeal by 111 Venture LLC for Site Development Permit 2004-804 to July 6, 2004. Motion carried with Council Member Osborne ABSTAINING due to a potential conflict of interest. MINUTE ORDER NO. 2004-73. BUSINESS SESSION. . . . . . . . . . continued 2. CONSIDERATION OF APPOINTMENTS TO VARIOUS BOARDS, COMMISSIONS, AND COMMITTEES. (continued from the afternoon session - see Page 10) PLANNING COMMISSION (three positions) The following applicants gave brief presentations on their backgrounds and qualifications: Ken Krieger Tom Kirk Kay Ladner Richard Weaver (Dave Lippert, Dr. Myron Mintz, Pearle Mintz, and Shawnna Trombetta were not present; Frank Christopher was appointed earlier to the Architectural & Landscaping Review Committee; and Jacques Abels withdrew his application) - - --- - City Council Minutes 1 3 June 1 5, 2004 Ballot No.1 ,...-. ! Council Member Henderson voted for Tom Kirk, Ken Krieger, and Kay . Ladner Council Member Osborne voted for Tom Kirk, Ken Krieger, and Kay Ladner Council Member Perkins voted for Tom Kirk, Ken Krieger, and Kay Ladner Council Member Sniff voted for Tom Kirk, Kay Ladner, and Shawnna Trombretta Mayor Adolph voted for Tom Kirk, Ken Krieger, and Kay Ladner MOTION - It was moved by Council Members Sniff/Henderson to appoint Tom Kirk, Kay Ladner, and Ken Krieger to two-year terms on the Planning Commission effective July 1, 2004. Motion carried unanimously. MINUTE ORDER NO. 2004-74. 3.' CONSIDERATION TO AWARD A CONTRACT TO CONSTRUCT THE CITY OF LA QUINTA . MUNICIPAL LIBRARY, PROJECT 2000-06, AND - APPROPRIATION OF FUNDING. . City Manager Genovese presented the staff report. MOTION - It was moved by Council Members Henderson/Sniff to reject all bids and re-bid Project No. 2000-06 for construction of the City Municipal Library. In response to Mayor Adolph, Mr. Genovese stated no changes in the bid package are anticipated due to the limited amount of add-alternates. Motion carried unanimously. MINUTE ORDER NO. 2004-75. 4. CONSIDERATION OF ANNUAL PLAN FOR SIL VERROCK RESORT GOLF COURSE. Assistant City Manager Weiss presented the staff report~ and advised of a . correction on Page 3 of the staff report, changing the annual deficit to $800,000. 'He noted the reduction in estimated resident play from 50% to - 20% has changed the revenue expectations. The current estimated average green fee for the fiscal year is $94 and $84 for the calendar year. He stated the expected revenues will offset the expenses for Landmark but will not City Council Minutes 14 June 15, 2004 cover additional expenses the City might incur this year for staff overhead and auditing, and there will be additional expenses associated with the Bob Hope Chrysler Classic event the next year. He stated the first budget is critical in establishing the standard of play and expectation of the operations. In response to Council Member Osborne, Mr. Weiss explained ERA's resident play estimate of 28 % was based on Palm Desert's municipal golf course, which has a very strict definition of "resident." He confirmed Landmark's budget is approximately $800,000 higher than ERA's projection two years ago, and the increase is due to inflation, the design and length of the golf course, and the service level Landmark understands the City desires to have. Upon discussing the proposed budget with other agencies, there was some observation that the budget includes a fully-adequate administrative staff. There was also a suggestion that reducing maintenance staff levels to include some part-time, and a reduction in benefits could result in some savings. The requested alternative scenarios for other reductions has not been provided by Landmark Council Member Osborne stated he feels there are other issues to address, such as management and the temporary clubhouse. He believes the revenue estimates are still too arbitrary, and is more concerned about the cost issues. Council Member Sniff agreed projected revenues are difficult to define, and indicated he didn't have a problem dealing with the issues one at a time. Council Member Henderson noted beginning budgets are always based on best-guess estimates, and development of the golf course has never been perceived as a way to generate revenue. In response to Council Member Henderson, Development Coordinator Roy Stephenson stated he feels the proposed budget is based on Landmark's understanding of the level of service the City wants to provide. He feels the budget is a little on the high side with some room for reduction but noted it's difficult to be precise in estimating maintenance costs based on a set of plans. Council Member Henderson indicated she hopes the message Council has sent regarding the quality of the project is a true message but noted you IIget what you pay for." She further noted the City's IItop notch" staff is not always paid the highest dollar but the City ends up with a IItop notch" product because staff has been trained to live within a budget. Council Member Perkins commented on the need for Landmark and staff to work well together. - ~- ~- . City Council Minutes 1 5 June 1 5, 2004 Mayor Adolph referenced Council's desire to provide affordable golf to ¡ La Quinta residents, and questioned $94 being affordable golf. He also ¡ referenced some questions staff had submitted to landmark in a letter. . ,/ Mr. Weiss explained $94 is a blended rate based on a resident fee of $50- $60 and a market-rate fee of $150. In response to the questions staff submitted In a letter to Landmark, he stated they have had verbal discussions on some of the issues. Staff felt landmark's original budget of approximately $4 million was high and asked for justification on the amount. Rather than try to micro-manage the budget, staff asked Landmark to look for ways to reduce the budget to $3 million, $3.3 million, and $3.7 million but Landmark failed to provide the three draft budgets as requested. They also did not respond to the request to add projected golf school revenues. They have discussed the issue of equipment purchase vs. leasing but have not provided a formal response. He then referenced a response distributed today regarding the modular temporary clubhouse issue, wherein landmark stated they would be willing to analyze, for additional compensation, the alternative scenario. He indicated Landmark is restricted from sharing their operating budgets for the other courses because they are private courses, and he noted Landmark responded to the greens fee issue in the business plan. - ¡ Mayor Adolph commented on the initial guidelines being somewhat flexible . but noted there are limits on how much the City can spend on this project. Andy Vossler, of landmark Golf Company, referenced the Issue of communication between them and staff, and noted this is a learning process for both of them. He has informed staff they cannot draft three budgets because there are too many unknowns. He stated it's easy to project revenue for golf courses in the Valley, and it will be easy to predict maintenance costs after a few years but initially it's a best-guess situation. He commented on money equating to a better product with higher green fees for non-residents, and higher dollars for hotel sites. He explained projected golf school revenues were not included because of the unknowns. He recommends using a teaching staff handled by the golf professional for the initial six months. Regarding equipment purchase vs. lease, they have . provided information to staff from one supplier and are waiting for information from another supplier. He stated there were some accounting and legal questions at the last meeting regarding purchase of equipment and legal counsel was not available. He believes the proposed temporary clubhouse will result In reduced revenues in food, beverage, and - merchandise, and noted the cost proposal for assisting in the design site plan is a not-to-exceed amount. He believes their contract calls for delivering a higher level of service but it takes money to accomplish that level of service, City Council Minutes 16 June 15, 2004 and they are willing to adhere to the extensive evaluations as required in the contract. Regarding workers compensation, he feels their cost estimates are in the average range. He stated prep costs for the Bob Hope Chrysler Classic have been factored in, to meet the requirements of that tournament, as well as seeding for next summer. He indicated the administrative costs are relative to the golf operations department, which includes the golf course superintendent and an executive secretary. As for comparing Palm Desert's golf course budget or Indian Wells, he noted they have many years of history, permanent clubhouses, and 36 holes, creating a scale of economy. He agrees the budget has some Iffat" but feels it's the comfort, security, and quality that everyone wants, and noted if the savings are there, it will be reflected in next year's budget. Mayor Adolph noted the length of the course is something he insisted on from the beginning, and that money spent retrofitting the temporary clubhouse is money that would be spent to meet future needs after the permanent clubhouse is built. Council Member Osborne commented on the need to improve communication between Landmark and staff. Mr. Vossler stated it's difficult on them when they provide their best opinion on something and it continues to be questioned, changed, or asked to be backed up. He doesn't feel it makes sense for Johnny Potts to have to work over 90 days to get a driving range close to what it should be. Council Member Henderson asked, lIaccording to whose opinion?" Mr. Vossler responded according to someone who is trying to build a world class facility that will have five star hotels and host a PGA tour tournament. He believes differences of opinions will exist until the course is opened and routine operations are underway. He feels the planned temporary clubhouse will have more of a negative impact than Council realizes, and will hinder the operations and revenue. In regard to the comment about the golf course breaking even, he has been told repeatedly the project is to generate a profit for the General Fund. He stated they are trying to determine what it takes to make the golf course what it should be compared to what their contract calls for and what they understand the Council wants. Council Member Sniff stated he doesn't feel this is an investment to break even but rather to make a profit as soon as feasible, and to create a product that will produce a significant long-term stream of revenue. He views this as a perceived quality of product vs. budget concerns, and feels it's natural to have differences of opinion. He suggested the possibility of appointing one City Council Minutes 17 June 1 5, 2004 or two Council Members to serve as arbiters when issues cannot be worked r out between landmark and staff. ! Council Member Henderson noted the procedure has always been for staff to negotiate those issues. that Council is not experienced at and to present a product that has been justified by all parties involved. She feels this contract should operate within the same procedure set forth for all other contracts. Mr. Vossler stated they have proposed a budget to Council because it is required in their contract. Council Member Henderson stated she realizes the contract does not require the operator and City Manager to agree on the budget. However, she feels the City Manager has worked to present a budget that he can recommend and is not recommending this one, which leaves the Council to determine what to cut. Mr. Vossler stated they can reduce the budget by $500,000 but he doesn't feel the Council will be happy with it 6-10 months from now. He stated they did not submit draft budgets because of the time involved to re-compute the information and arrive at three different amounts. He ~ indicated it takes 1 0 hours to modify the numbers in the budget, and he felt they included the most important modification when they adjusted the . greens fee amount, which tracks very closely to the 50% at Desert Willow in Palm Desert. He .distributed information to Council showing what some of the neighboring golf course country clubs are doing, and stated he feels the City will need to spend country club money during the next 18 months to get where it wants to be. In response to Council Member Sniff, Mr. Vossler stated the most difficult part in getting started is the entitlement. He indicated the average greens fee may be higher the first year because of the number of people wanting to play the course. He realizes the budget numbers are not 100% accurate but believes in their numbers more than anyone else's guess. He suggested the possibility of the City Manager participating in discussions when Landmark and staff are unsure whjch way to go. In response to Mayor Adolph, Mr. Vossler stated he believes if a modular, temporary clubhouse is located near the location of the permanent clubhouse, part of the parking lot could be incorporated with the permanent parking lot, and a tent could be used for a cart barn. He believes that can be - done for a lot less money than retrofitting the Ahmanson house, and it would reduce operation costs because there would be less labor hours involved to cover all of the areas. He indicated a modular facility, which comes in City Council Minutes 18 June 15, 2004 increments of 1,200 square feet, C'an be designed as nicely as the City wants. He believes a modular facility would result in operation cost savings, a pre-marketing advantage for the golf facility, and produce greater revenue on merchandise and food and beverages. He noted a full liquor license can also be obtained if the facility has a kitchen. Mayor Adolph referenced the possibility of having to be satisfied with the Ahmanson house given the amount of work already done to retrofit it. Mr. Vossler confirmed the budget was calculated with the Ahmanson house as the temporary clubhouse. Judy Vossler, of Landmark Golf Company, encouraged Council to consider the impact on sales, operation, and the project's image if the temporary clubhouse does not have a full liquor license. Johnny Potts, 78-160 Calle Norte, of landmark Golf Company, stated he feels Landmark and staff have a good working relationship, and commented on the amount of time spent working on the budget and maintenance equipment. He stated they are doing everything possible to get the budget numbers down but do not believe the estimated figures from two years ago can be used without ending up with something the Council will not be happy with. In response to Council Member Henderson, Mr. Weiss explained approval of the business plan also approves the budget, which would then be incorporated into the City's budget, and start-up money would be provided with the assumption that the revenues and expenditures would be as reflected in the business plan. He added staff will come back at a later date with specific policies for playing the golf course and establishing fees. Council Member Henderson asked if there would be provision for a mid-year review, and noted there is no incentive for landmark to watch the costs otherwise. Mr. Weiss advised the expenses will be monitored by staff as they occur, and staff will need an additional budget for performance audits and fiscal audits of the operations. He indicated there has also been some discussion about having a base budget more in line with the City's expectations along with a supplemental budget that would require further approval for unexpected expenditures. That would require Landmark to provide a reduced staffing level budget with a supplemental budget for any unexpected first-year costs. -- --- " City Council Minutes 19 June 15, 2004 ,.....- City Manager Genovese noted the current City budget is established in the ¡ same manner with base levels and adjustments made at mid-year review if ~ needed. Council Member Henderson stated she understands the need for a percentage increase in the $ 2.7 million estimated budget from two years ago because of increases to golf course operation costs and the longer yardage on the course, and asked staff what they would be comfortable with as a baseline budget. Mr. Weiss stated he indicated to Landmark that he would recommend the budget to the City Manager if it came in at $3.3 million, which is approximately $180,000 less than the submitted budget. He had not included a supplemental budget component in that recommendation but would not have a problem setting aside money for unexpected expenditures. Council Member Henderson stated she would prefer setting aside funds for unexpected expenditures. Mr. Weiss stated staff feels their negotiations with landmark have been according to the direction received from Council. As for the temporary - clubhouse issue, he noted money has been budgeted for a permanent clubhouse, and it could be operational a year after the golf course opens if a design-build contract is moved forward immediately. He further noted the Ahmanson house has to be made presentable whether it's used for a temporary clubhouse or not, and utilizing a modular facility in another location would mean an additional project to be managed and designed at IIcrunch" time. He confirmed there have been adjustments to the golf course to accommodate use of the Ahmanson house, and there is an item on the current agenda to get it operati~nal by January. He noted abandoning that project and taking on a modular facility at another location would require special accommodations to get it master planned in time for a January opening. It would also cost an additional $600,000 to lease a facility that may be used only one year, which is why staff requested a pro-forma for the proposal. Having a modular facility may make it possible to obtain a liquor license and allow for a larger food and beverage operation. People he has talked to in the food and beverage business have indicated that is not necessarily a money maker but it would enhance the quality of events held there. Staff feels it would be very difficult at this time to take on this new project. He indicated staff would welcome moving forward with the permanent clubhouse because it will be a permanent enhancement to the - project. City Council Minutes 20 June 15, 2004 Council Member Sniff asked how much the contingency reserve amount would be if over and above the $3.3 million. Mr. Weiss noted approving a budget amount of $3.3 million with a reserve amount of $200,000 for unexpected expenditures would basically accommodate Landmark's proposal for a $3.5 million budget, and would require them to come back with a $3.3 million proposal and make it work. He indicated staff would be comfortable recommending that amount. MOTION - It was moved by Council Members Sniff/Henderson to approve the Annual Plan for SilverRock Resort Golf Course in the amount of $3.3 million with a $250,000 contingency reserve fund, and to request a review every three months. Mr. Weiss pointed out the need for Landmark to translate the $3.3 million calendar year budget into the fiscal year business plan. He added the impact is on the $2,099,000 value because that is the six-month business plan. He confirmed there is potential for the use of $3.55 million over a calendar year, and suggested the business plan be brought back and adjust the six-months, fiscal year budget to accommodate the calendar year level of expenditure. Council Member Osborne asked, since the budget includes a temporary clubhouse, is the decision to stay with the Ahmanson house. Chairperson Henderson noted the perceived cost in the budget is based on the Ahmanson house, and if the temporary clubhouse issue changes, it could change those costs. Council' Member Sniff noted a review every three months gives Council an opportunity to make adjustments if needed. Ms. Jenson stated she recalls the contract with Landmark only requiring an annual review. She noted once the annual budget is approved, that amount has a lot of significance in terms of defining a level of performance, and it sets a base to provide a floor plus 3 % of the previous year if no agreement is reached in the following year. She believes there is potential for asking for an increase in budget for unexpected items but doesn't believe the budget can be adjusted downward unless the operator agrees. She understands what the Council is requesting is to have the budget come back in a revised format for action at a later meeting. Council Member Sniff stated he doesn't feel there is any indication the Council would revise the budget downward but just a matter of adjustments if necessary. He feels the Council needs periodic latitude to make an upward adjustment if needed. ---" -~- ~- -- - . City Council Minutes 21 June 15, 2004 Council Member Perkins suggested keeping in mind the ability to sell liquor at roo-- ¡ the clubhouse for additional revenue. He stated he also feels credit should ¡ , ! be given to landmark for the'ir experience. , Motion carried unanimously. MINUTE ORDER NO. 2004-76. 5. CONSIDERATION OF MEMORANDUM OF UNDERSTANDING (MOU) WITH 'THE COUNTY EMERGENCY MEDICAL SERVICES (EMS) AGENCY FOR JOINT MONITORING OF EMERGENCY AMBULANCE SERVICES. (This item was moved from Consent Item No.5.) There were no changes to the staff report as submitted and on file in the City Clerk's Office. In response to Council Member Osborne, City Manager Genovese confirmed the City's paramedic. squad and EMS will work together. When the paramedic squad arrives, they will stabilize the person until AMR arrives to transport the patient to the hospital. ;- MOTION - It was moved by Council Members Osborne/Sniff to approve a ! Memorandum of Understanding (MOU) with the County Emergency Medical , Services (EMS) Agency for joint monitoring of emergency ambulance services. Motion carried unanimouslyó MINUTE ORDER NO. 2004-77. STUDY SESSION - None Council recessed to the Redevelopment Agency. Council reconvened. REPORTS AND INFORMATIONAL ITEMS CV AG Executive Committee - Mayor Adolph reported the Executive Committee has approved 1-10 intercþanges at Bob Hope Drive and Palm Drive using future regional funds, and has hired Nazir Lalani for the signal synchronization program. The taxi cab services issue has been directed to Palm Springs, and $5,000 has -- been approved to move forward with the street numbering signs. In regard to the housing authority issue, he stated the banking agency has decided to drop the issue because of the number of cities not participating. City Council Minutes 22 June 15, 2004 CV AG Energy & Environmental Resources Committee - Council Member Sniff indicated the fire ant issue will be coming forward with a funding formula based on the number of incidents and population. He feels the jurisdictions with the greatest problem should pay more. Council Member Perkins stated C. V. Mosquito & Vector Control District is trying to get a grant to continue modified enforcement of the program. * * * * * * * * * * * * * All other reports were noted and filed. DEPARTMENT REPORTS 3-B. VACANCY ON THE PALM SPRINGS INTERNATIONAL AIRPORT COMMISSION. After a brief discussion, Council concurred to direct the City Clerk to advertise the vacancy and provide Council with copies of the applications for review. 3-C. VOLUNTEER FIREFIGHTER'S ANNUAL RECOGNITION DINNER. City Clerk Greek requested each Council Member review the proposed dates and contact her as to which dates do not conflict with their schedules. MAYOR AND COUNCIL MEMBERS' ITEMS 1 . DISCUSSION REGARDING PILLARS OF THE COMMUNITY. Council Member Henderson voiced concern about some of the early IIpillars of the community" not being included in the Pillars of the Community monument. She suggested each Council Member submit a name(s) of someone that may no longer have anyone to circulate an application for them for Council to consider. Mayor Adolph noted recognition is given to someone in the community each year at the Senior Inspiration Awards. Council Member Henderson stated she believes each one of those recognized in the past should be included in the Pillars of the Community. . r City Council Minutes 23 : June 1 5, 2004 I City Manager Genovese stated the names submitted by each Council r Member can be brought back to Council for consideration. \, ADJOURNMENT There being no further business, it was moved by Council Members Perkins/Osborne to adjourn to a special meeting of the City Council to be held June 18, 2004. Motion carried unanimously. Respectfully submitted, ~ -RI. ~ JUNE S. GREEK, City Clerk City of La Quinta, California r I ¡ , \, r-- ! . I ------ .