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2004 07 20 CC Minutes ,\ , ; LA QUINT A CITY COUNCIL -- f MINUTES JULY 20, 2004 , 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 real property negotiator, Timothy R. Jonasson, pursuant to Government Code Section 54956.8 concerning potential terms and conditions of acquisition andlor disposition of real property located on Jefferson Street (APNs: 649-071-010, 649-090-010, and 649-080-013). Property Owner/Negotiator: J. Donald Olson, Indian Springs Land Company, -- LLC. Council recessed to the 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. PUBLIC COMMENT Stan Ford, 45-871 Clinton, Indio, General Manager of c. V. Recreation & Park -- District, announced the District has received an award from the California Association of Recreation & Park Districts for the La Quinta facility being the best . renovated recreation facility in the State. City Council Minutes 2 July 20, 2004 * * * * * * * * * * * Cathy Bretz, 81-600 Avenue 58, the Community Relations Coordinator for Imperial Irrigation District, indicated she would be attending future City Council meetings and serve as a liaison between the City Council, the public, and liD. CONFIRMATION OF AGENDA City Manager Genovese requested the Redevelopment Agency Study Session Item No.1 be taken up at approximately 4:00 p.m. due to the number of consultants present for that itenl. Council Member Osborne requested Consent Item No.8 be taken up separately due to a potential conflict of interest. . ANNOUNCEMENTS - None PRESENTATIONS - None WRITTEN CORRESPONDENCE 1,. CORRESPONDENCE FROM DAVE ERWIN ON BEHALF OF LA QUINT A COUNTRY CLUB, DATED JUNE 28, 2004. Council concurred to. refer the letter to staff to bring. ,back additional information at the August 3, 2004 City Council meeting. . 2. C,ORRESPONDENCE FROM ERIKA BYRD, PUBLIC RELATIONS REPRESENTATIVE FOR ANDALUSIA AT CORAL MOUNTAIN, DATED JULY 12, 2004. Council concurred to direct staff to send a letter of appreciation, expressing a decision not to pursue the program at this time due to time constraints on staff. APPROVAL OF MINUTES MOTION - It was moved by Council Members Sniff/Henderson to approve the City Council Minutes of July 6, 2004, as submitted. Motion carried unanimously. ~-- --...----- .-. -~-~-- -- ---~ ---- -- - City Council Minutes 3 July 20, 2004 ,--- ! CONSENT CALENDAR , In regard to Item No.1 0, Council Member Perkins expressed appreciation for the grant that will provide an additional motor officer. In response to Mayor Adolph, City Attorney Jenson advised there are restrictions on use of the funds, and if the money is not allocated, the agreement would be terminated. She noted the funding will not automatically be renewed each year. Council Member Henderson referenced the City's previous caution in not hiring personnel on somewhat questionable funding. City Manager Genovese agreed State funding is not guaranteed but stated he believes there are things the City can do regarding the manning schedule and deployment of officers to satisfy any changes in the grant. . . Council Member Sniff voiced reluctance to accept the grant because of the uncertainty of future funding. Council Member Osborne noted the Council looks at increasing police services - whenever possible, and stated he hopes the City would be able to assume this position should the grant funding not be available. Council Member Henderson pointed out the Council has already agreed to revisit the need for additional police services during the mid-year budget review. She agrees the City can' get itself into an interesting situation should the grant funding go away. She noted when the Federal Government provided grant funding for police services for three years, some cities that utilized that funding had to decrease their police services after the funding went away and return the grant funding they had received for the three years. 1 . APPROVAL OF DEMAND REGISTER DATED JULY 20, 2004. 2. TRANSMITTAL OF TREASURER'S REPORT DATED MAY 31, 2004. 3. TRANSMITTAL OF REVENUE & EXPENDITURES REPORT DATED MAY 31, 2004, AND THE INVESTMENT SUMMARY REPORT FOR THE QUARTER ENDING JUNE 30, 2004. 4. APPROVAL OF PLANS, SPECIFICATIONS, AND ENGINEER'S- ESTIMATE ,--- AND AUTHORIZATION TO ADVERTISE FOR BIDS FOR THE LA QUINT-A , INTERACTIVE WATER FEATURE AND APPROPRIATION OF FUNDING. , City Council Minutes 4 July 20, 2004 5. APPROVAL OF AN APPROPRIATION FROM THE EQUIPMENT REPLACEMENT FUND TO PURCHASE A NEW VEHICLE. 6.' APPROVAL OF NEW JOB DESCRIPTIONS: SPECIAL PROJECTS ASSISTANT, SENIOR ACCOUNT CLERK, AND ECONOMIC DEVELOPMENT MANAGER. 7. ADOPTION OF A RESOLUTION GRANTING APPROVAL OF A FINAL MAP AND SUBDIVISION IMPROVEMENT AGREEMENT FOR TRACT MAP 31627, THE RESIDENCE CLUB AT PGA WEST, NADADOR, LLC. (RESOLUTION NO. 2004-073) 8. ADOPTION OF A RESOLUTION ACCEPTING A DONATION FROM DESERT; CITIES CATERING FOR CATERING SERVICES FOR SENIOR CENTER SPECIAL EVENTS. (See separate action below.) '9. ' ADOPTION OF A RESOLUTION ACCEPTING A DONATION,. FROMJ ,., - , I SOROPTIMIST INTERNATIONAL OF LA QUINTA. (RESOLUTION NO. 2004-074) 10. ACCEPTANCE OF GRANT FUNDS FROM THE CALIFORNIA INDIAN GAMING SPECIAL DISTRIBUTION FUND, ESTABLISHMENT OF THE NECESSARY CITY FUND, AND APPROPRIATION OF GRANT FUNDS. MOTION - It was moved by Council Members Sniff/Osborne to approve the Consent Calendar as recommended and amended with the exception of Item No.8 and with Item Nos. 7 and 9 being approved by RESOLUTION NOS. 2004-073 through 2004-074 respectively. Motion carried unanimously. MINUTE ORDER NO. 2004-88. Item No.8: .'. ' MOTION - It was moved by Council Members Sniff/Henderson to approve Item No.8, adopting Resolution No. 2004-075 and accepting a donation from Desert Cities Catering for catering services. Motion carried with Council Member Osborne ABSTAINING. MINUTE ORDER NO. 2004-89. BUSINESS SESSION 1. CONSIDERATION OF A CONTRACT SERVICES AGREEMENT WITH THE LA QUINTA ARTS FOUNDATION. Community Services Director Horvitz presented the staff report. ---~-- -- --~ ----~~~- -------- - City Council Minutes 5 July 20, 2004 J , r-- Council Member Henderson noted the Arts Foundation's escrow has closed. i She also requested the President of the Board's signature be included in the contract. Council concurred. MOTION - It was moved by Council Members Henderson/Sniff to approve a Contract Services Agreement with the La Quinta Arts Foundation, as modified to include the President of the Board's signature, in the amount of $100,000 to be used for the 2005 Arts Festival. Motion carried unanimously. MINUTE ORDER NO. 2004-90. 2. ' CONSIDERATION OF LOCATIONS FOR THE uPA TH OF THE BIGHORN" SCULPTURES. I. Community Services Director Horvitz presented the staff report. Council Member Sniff voiced dissatisfaction with how the sculptures look because they don't look natural, and questioned staff's recommendations for ,-- the locations. Ms. Horvitz explained placing the sculptures inside of facilities secures them and enables the City to participate in the program. She stated some large furniture pieces in the Senior Center lobby can be replaced with smaller ones to accommodate the sculptures until the auction in November. She advised the organization has agreed to accept liability for the sculptures but would not loan them if placed in the previously-selected locations. Council Member Henderson stated the purpose was not to paint the sculptures like sheep but rather to provide canvasses for artists to paint on. She noted the auction funds will go to the BigHorn Sheep Institute, and stated she supports the staff recommendation. Council Member Sniff indicated he would support the program since it is only for four months. MOTION - It was moved by Council Members Sniff/Henderson to approve the locations for the "Path of the Bighorn" sculptures to include "Bright Futures" to be displayed in ,the Senior Center lobby and" Aries" to be -- displayed in the courtyard of City Hall. Motion carried unanimously. MINUTE ORDER NO. 2004-91. City Council Minutes 6 July 20, 2004 3. CONSIDERATION OF AWARD OF A CONTRACT TO CONSTRUCT THE CITY OF LA GUINTA MUNICIPAL LIBRARY, PROJECT NO. 2000-06, AND APPROPRIATION OF FUNDING. Building & Safety Director Hartung presented the staff report. In response to Council Member Henderson, Mr. Hartung explained an alteration in the bid by WDL Construction resulted in them being the second low bidder. He confirmed clarification of a discrepancy in the original bid document was sent to all bidders prior to the bid opening. In response to Council Member Perkins, Mr. Hartung confirmed the interior of the additional 10,000 square foot area will be completed during Phase 2 of the project. Mayor Adolph inquired about the utilities, and Mr. Hartung confirmed the utilities will be stubbed in for future connection. Michael Vujica, representing WDL Construction, stated they were confused about which fees the City would pay and which fees they would be responsible for. He indicated that because they were not able to get fee amounts from CVWD prior to bid submittal, they showed it as an allowance, and thought the City might intend to pay the fees anyway. In response to Council Member Sniff, City Attorney Jenson, advised the City does not have discretion in waiving the requirement for payment of the fees, and legally, the bid must be rejected because of the alteration. She noted when the amount is added, WDL becomes the second low bidder. She confirmed certain immaterial irregularities in bids can be waived but this one does not fall in that category. She indicated a legal opinion had already been reached on this matter before the letter from Taylor Frager Inc. was received. In response to Council Member Sniff, Mr. Hartung stated under Phase I the 10,000 square foot additional area will have concrete floors, and no light fixtures, heating, or air conditioning. He wasn't sure how many air conditioning units are proposed for that area, and didn't believe the windows would open. Council Member Henderson commented on the difficulty of bidding public jobs, and stated she hopes the comments are digested as to how bid documents are created in the future. She supports the recommendation but ---~-- -~~ --,- - --- -- -- ----- ~----~~ - City Council Minutes 7 July,20, 2004 is sympathetic to contractors having to estimate costs that they may not ,.....- ; know until end of the project. She referenced the need to come up with I . ~ something that is more reasonable and acceptable. ; Mayor Adolph indicated when he was in the industry and the utility costs were unknown, they would put in allowables and everyone would bid on that allowable and have to make up the difference if it went over. He commented on the need to move forward with the project. MOTION - It was moved by Council Members Sniff/Henderson to reject the bid from WDL Construction for being non-responsive and award the contract to Taylor Frager Inc. in the base amount of $5,688,500 and include additive alternates 1, 2, 3, 4, and 5 in the amount of $105,518 for a total contract amount of $5,794,018 to construct the Municipal Library, transfer $1,200,000 in La Ouinta Redevelopment Agency Project Area No.1 funding to the Library Project, and appropriate an additional $400,000 in Quimby Funds, $190,863 in County Library DIF funds, and $801,163 in Library Funds to complete the project. Motion carried,. unanimously. MINUTE ORDER NO. 2004-92. Council recessed to the Redevelopment Agency meeting and to and until 7 :00 P.M. r-- I ¡ , 7:00 P.M. PUBLIC ,COMMENT Deborah McGeary, 41-575 Eclectic, Palm Desert, of Waste Management of the Desert, introduced a new Electronic Waste Recycling Program and indicated they will do a pilot program during the month of August. PRESENTATIONS - None PUBLIC HEARINGS 1 . PUBLIC HEARING ON WEED ABATEMENT/LOT CLEANING ASSESSMENTS FOR PLACEMENT ON THE 2004/2005 PROPERTY TAX ROLL. Building & Safety Director Hartung presented the staff report. r-- ¡ The Mayor declared the PUBLIC HEARING OPEN at 7:06 p.m. I City Council Minutes 8 July 20, 2004 Stephanie Eichel, P. O. Box 1243, disputed the assessment on her property, stating she received notification of the assessment five months after she cleaned the lot herself. She questioned there being any change in the condition of the lot after she cleaned it. Mr. Hartung presented before-and-after pictures of the lot. Council concurred to pull the assessment for the Eichel property and refer it to staff. There being no other requests to speak, the Mayor declared the PUBLIC HEARING CLOSED at 7: 12 p.m. RESOLUTION NO. 2004-076 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA QUINT A, CALIFORNIA, ASSESSING LIEN AND PROVIDING FOR COLLECTION OF TAX ROLLS ON CERTAIN PROPERTY FOR COSTS OF ABATEMENT OF PUBLIC NUISANCE. It was moved by Council Members Sniff/Henderson to adopt Resolution No. 2004-076 as amended (excluding the Eichel property). Motion carried unanimously. 2. CONTINUED PUBLIC HEARING ON AN APPEAL OF CONDITION NOs. 20 AND 66 OF PLANNING COMMISSION RESOLUTION NO. 2004-031 FOR SITE DEVELOPMENT PERMIT 20Q4-804 (JAMES PAUL) APPELLANT: 111 VENTURE LLC. (C/O MR. G. SCOTT GAYNER, MANAGING MEMBER). Community Development Director Herman advised the appeal has been withdrawn by the applicant. No action was taken. , Council concurred to take up Item No.5 at this time. 5. PUBLIC HEARING TO CONSIDER ADOPTION OF A RESOLUTION APPROVING THE SETTING AND PLACEMENT OF RESIDENTIAL WASTE COLLECTION AND SERVICE FEES ON THE TAX ROLLS FOR RESIDENTIALLY-DEVELOPED PROPERTY, AND ADOPTION OF A RESOLUTION SETTING COMMERCIAL AND ROLL-OFF WASTE COLLECTION AND SERVICE FEES. --- -- '-H - -- -- ---On , City Council Minutes 9 July 20, 2004 r Community Development Directo{ HerrrUin presented the staff report. I . \ In response to Council Member Perkins, Mr. Herman confirmed there is an increase of 48 cents a month in the residential rate. In response to Council Member Osborne, Mr. Herman stated the commercial rate increase is .89%, plus the pass-through of the disposal rate increases. The Mayor declared the PUBLIC HEARING OPEN at 7:18 p.m. There being no requests to speak, the Mayor declared the PUBLIC HEARING CLOSED at 7: 18 p.m. RESOLUTION NO. 2004-077 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA QUINT A, , CALIFORNIA, ORDERING THE LEVY AND COLLECTION OF ASSESSMENTS FOR REFUSE COLLECTION AND RECYCLING SERVICES FROM RESIDENTIAL PROPERTIES WITHIN THE CITY PURSUANT TO LA QUINT A CHARTER AND MUNICIPAL CODE CHAPTER 6.04 (RESIDENTIAL WASTE FEE SCHEDULE). r- It was moved by Council Members SnifflHenderson to adopt Resolution No. ¡ 2004- 77 as submitted. Motion carried unanimously ~ . RESOLUTION NO. 2004-078 ' A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA QUINT A, CALIFORNIA, SETTING THE SCHEDULE OF FEES AND CHARGES FOR THE COLLECTION, RECYCLING (AB 939) SERVICES AND DISPOSAL OF . RUBBISH AND GARBAGE FROM COMMERCIAL, CONSTRUCTION, AND. INDUSTRIAL (ROLL-OFF) ESTABLISHMENTS AND CERTAIN RESIDENTIAL PROPERTIES. (DIRECT BILL) WITHIN THE CITY (COMMERCIAL WASTE FEE SCHEDULE). It was moved by Council Members Henderson/Sniff to adopt Resolution No ~ 2004-078 as submitted. Motion carried unanimously. 3. PUBLIC HEARING TO CONSIDER ADOPTION OF RESOLUTIONS OF THE CITY COUNCIL CERTIFYING ENVIRONMENTAL ASSESSMENT 2004-504 AND APPROVING TENTATIVE TRACT MAP 31681 FOR THE SUBDIVISION ¡- OF 7.41:f: ACRES INTO 24 SINGLE FAMILY LOTS AND MISCELLANEOUS LOTS FOR PROPERTY LOCATED AT THE NORTHWEST CORNER OF MADISON STREET AND AVENUE 60. APPLICANT: CHOICE ENTERPRISE. City Council Minutes 10 July 20, 2004 Community Development Director Herman presented the staff report. In response to Council Member Osborne, Public Works Director Jonasson stated the developer is required to construct a half-width street on the north side of Avenue 60 along with 14 feet south of the centerline. Mayor Adolph inquired about parking requirements in the cul-de-sacs. Mr. Herman responded each home will have a two-car garage and parking space for two cars in the driveway. Any additional vehicles will have to be parked further up the street. In response to Mayor Adolph, Assistant City Engineer Speer advised the sidewalk along Avenue 60 will be adjacent to the curb, and there will be a meandering sidewalk on Madison Street. Mayor Adolph asked about berming, and Planning Manager Orci stated there will be some undulation and walls. The Mayor declared the PUBLIC HEARING OPEN at 7:26 p.m. David Saccullo, 74-923 Highway 111, Indian Wells, of Choice Enterprise, stated the perimeter landscaping on Avenue 60 and Madison Street will be. desertscape. In response to Council Member Perkins, he confirmed the fire department has approved the cul-de-sac design. In response to Council Member Henderson, Mr. Herman stated the project is conditioned to maintain the median landscaping. There being no other requests to speak, the Mayor declared the PUBLIC HEARING CLOSED at 7:30 p.m. RESOLUTION NO. 2004-079 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA QUINT A, CALIFORNIA, ADOPTING A MITIGATED NEGATIVE DECLARATION OF ENVIRONMENTAL IMPACT FOR TENTATIVE TRACT MAP 32201 (CHOICE ENTERPRISE) . It was moved by Council Members Sniff/Henderson to adopt Resolution No. 2004-079 as submitted. Motion carried unanimously. --- ~ -- - ~- - - - - --- - - . City Council Minutes 11 July 20, 2004 RESOLUTION NO. 2004-080 ,-- I 1 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA QUINT A, . CALIFORNIA, APPROVING THE SUBDIVISION OF 7.41:t: ACRES INTO 24 SINGLE FAMILY LOTS AND MISCELLANEOUS LOTS (TENTATIVE TRACT MAP 32201 - CHOICE ENTERPRISE). It was moved by Council Members Henderson/Sniff to adopt Resolution No. 2004-080 as submitted. Motion carried unanimously. 4. PUBLIC HEARING TO CONSIDER ADOPTION OF A RESOLUTION APPROVING TENTATIVE TRACT MAP 32453 FOR THE SUBDIVISION OF 27:t: ACRES INTO 28 RESIDENTIAL LOTS AND MISCELLANEOUS LOTS FOR PROPERTY LOCATED ON THE EAST SIDE OF VILLAGE CLUB DRIVE (NOW HIDEAWAY CLUB DRIVE) IN THE HIDEAWAY. APPLICANT: ND LA QUINT A PARTNERS, LLC. Community Development Director Herman presented the staff report, and Planning Manager Orci reviewed the site plan. - In response to Council Member Henderson, Mr. Orci stated there are five off-site garage pad areas, and the conditions of approval restrict them from . being sold separately. In response to Mayor Adolph, Mr. Orci stated the bungalow units are a hybrid of what is usually seen in developments. , The Mayor declared the PUBLIC HEARING OPEN at 7:39 p.m. John Gamlin, of The Hideaway, gave a brief overyiew of the project, and explained the bungalow definition. In response to Council Member Henderson, Mr. Gamlin stated the units will be sold as a single deed but could be used for leasing and are oriented toward joint ownership. In response to Council Member Henderson, City Attorney Jenson noted rentals less than 30 days are already subject to Transient Occupancy Tax but a condition can be added to that effect if Council wishes. r- Council Member Perkins asked if they are proposing cluster parking, to which ; Mr. Gamlin replied, "No.", , I ¡ , City Council Minutes 12 July 20, 2004 In response to Council Member Sniff, Mr. Gamlin stated the homes will range from 2,600 square feet to 3,000 square feet. In response to' Mayor Adolph, Mr. Gamlin indicated club memberships will be offered but not required. There being no further requests to speak, the Mayor declared the PUBLIC HEARING CLOSED at 7:50 p.m. RESOLUTION NO. 2004-081 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA QUINT A, CALIFORNIA, APPROVING THE SUBDIVISION OF 27:t ACRES INTO 28 RESIDENTIAL LOTS AND MISCELLANEOUS LOTS (TENTATIVE TRACT 32453 - ND LA QUINT A PARTNERS LLC). It was moved by Council Members Sniff/Henderson to adopt Resolution No. 2004-081 as amended (adding a condition to require the payment of Transient Occupancy Tax for rentals less than 30 days). Motion carried unanimously. Council recessed to the Redevelopment Agency. Council reconvened. BUSINESS SESSION. . . . . . . . . . . . . continued 4. CONSIDERATION OF AN ORDINANCE AMENDING SECTION 2.06.020(c) OF THE LA QUINT A CHARTER AND MUNICIPAL CODE RELATING TO BOARDS, COMMISSIONS, AND COMMITTEES. City Manager Genovese presented the staff report. MOTION - It was moved by Council Members Sniff/Henderson to take up Ordinance No. 407 by title and number only and waive further reading. Motion carried unanimously. ORDINANCE NO. 407 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LA QUINT A, CALIFORNIA, AMENDING SECTION 2.06.020(c) OF THE LA QUINT A MUNICIPAL CODE RELATING TO BOARDS, COMMISSIONS, AND COMMITTEES. - - --- City Council Minutes 1 3 July 20, 2004 It was moved by Council Members SnifflHenderson to introduce Ordinance r No. 407 on first reading. Motion carried by the following vote: ¡ , . , AYES: Council Members Henderson, Osborne, Perkins, Sniff, Mayor Adolph NOES: None ABSTAIN: None ABSENT: None 5. CONSIDERATION OF A CONTRACT FOR SERVICES AGREEMENT WITH THE LA QUINTA CHAMBER OF COMMERCE FOR FISCAL YEAR 2004/2005. Assistant City Manager Weiss presented the staff report.' Diane Glanz, Executive Director of La Quinta Chamber of Commerce, noted there was some questions at the preliminary budget meeting regarding their funding request for the newsletter and the visitors center. She indicated the last increase for the newsletter was in 2001, and the requested increase is a direct cost that takes. it from 33 to 39 cents an issue. As for the visitors center, she understood the City wanted the Chamber to provide a visitors - center. ì ¡ , In response to Council Member Sniff, Ms. Glanz stated the newsletter is now distributed every month. Mayor Adolph referenced their profit last year of $1 9,940, and asked why they are requesting more from the City. Ms. Glanz indicated she is not sure about the profit amount but noted they need some reserve for operating expenses. She indicated she doesn't feel the requested increase is unreasonable. Council Member Henderson noted in previous years the Council has had in- depth discussions about the Chamber's requests for funding and some of the discussion centered around what the Chamber chose to do or not do. She feels the Council decided to fund the Chamber with a set amount and let them decide how to fund their programs. She doesn't recall. the Council asking them to do a visitor's center. She noted the City is at a high point of bringing businesses into the City, and the Chamber should be less dependent on City funding. She believes the trend is for cities not to fund chambers -- more but rather to fund them less. She feels the City has been a good partner with the Chamber but would be challenged to increase the funding level. City Council Minutes 14 July 20, 2004 Council Member Sniff noted the Chamber has some latitude on their expenditures. Ms. Glanz asked, does the Council not want the Chamber to provide a visitors center, and is it not important to the Council that the Chamber responds to 10,719 phone calls and people dropping in to ask questions about the community. Council Member Osborne responded the Council is not saying what the Chamber does is not important but rather that the Council feels comfortable with the funding at $125,000 at this time. Council Member Sniff referenced the importance of having a balanced City budget, and stated he hopes the City's support is appreciated and that the Chamber can determine methods of allocating these funds to deal with their contractual obligations. He appreciates the Chamber but feels the City has done what it can this year. He asked about their membership, and Ms. Glanz . replied they have slightly over 700 members. In response to Council Member Henderson, Ms. Glanz confirmed the Chamber has increased their dues to $25 a month. - After a brief discussion, Council concurred to require a full audit every third year with a financial review the other two years. MOTION - It was moved by Council Members Sniff/Osborne to approve a Contract Services Agreement with the La Ouinta Chamber of Commerce for Fiscal Year 2004/2005, authorize the Mayor to execute the contract, and request a full audit every third year with financial reviews for the other two years. City Attorney Jenson noted the contract with the Chamber is an annual contract and suggested establishing a policy requiring the audit and financial review for continued funding. Council concurred. The motion was amended to read: MOTION - It was moved by Council Members Sniff/Osborne to approve a Contract Services Agreement with the La Ouinta Chamber of Commerce for Fiscal Year 2004/2005, authorize the Mayor to execute the contract. Motion carried unanimously. MINUTE ORDER NO. 2004-93. --~ ------ - -"- -- -"-- - -~------------ --- -- - City Council Minutes 1 5 July 20, 2004 A brief discussion ensued regarding establishment of a policy, and Council r concurred to require an audit every third year and a financial review the other I ! two years for organizations that' receive 'Over $ 50,000 annually from the . City. MOTION - It was moved by Council Members SnifflOsborne to establish a policy that requires any agency receiving over $50,000 annually from the City to submit an audit every third year and a financial review the other two years. Council Member Perkins stated he feels three years is too long and would support a full audit every other year. Motion carried with Council Member Perkins voting NO. MINUTE ORDER NO. 2004-94. 6. CONSIDERATION OF A CONTRACT SERVICES AGREEMENT WITH KINERIGOODSELL ADVERTISING FOR PROFESSIONAL MARKETING SERVICES FOR FISCAL YEAR 2004/2005. r- Assistant City Manager Weiss presented the staff report. Council Member Henderson suggested the .advertising for the museum grand opening be deleted since will not occur this year. Council concurred. Scott Kiner and Andrea Carter, of Kiner/Goodsell Advertising, gave brief statements about their work with the City and distributed some promotion material they propose using during the upcoming year. In response to Council Member Osborne, Mr. Weiss stated some of the promotion material is somewhat timeless, and noted some of the current material has been used for three or four years. In response to Mayor Adolph, Mr. Kiner confirmed they will develop an entirely new video this year. In response to Council Member Osborne, Ms. Carter stated they will work with City staff regarding current events that need to be promoted. Mr. Kiner stated they will use the City's successes in promotions, and noted ,--- La Ouinta is a hot place for retail. I I , , . City Council Minutes 16 July 20, 2004 In response to Council Member Osborne, Ms. Carter stated the Commerce Advisory Group will be a one-time workshop from which they will generate information to use in their programs. Mr. Kiner stated they want to get input from key developers and businesses because they know what is missing. He confirmed the importance of working with the Chamber but noted the Chamber is more about business retention and Kiner/Goodsell is more about business promotion. Mr. Weiss advised the marketing programs are compared during quarterly meetings, and KSL has been invited to participate in those meetings. Mayor Adolph noted Wal~mart broke their record for grand openings when the La Ouinta store was opened. Mr. Kiner noted that's one of the success stories they will use in the City's marketing program. Council Member Henderson asked about creating a postcard from the City that would be easily recognized as being from the City. Mr. Kiner stated it could be used for various things and would be a cost savings. Council Member Sniff noted there are a lot of gimmicks to make advertisements look official. Council Member Perkins suggested developing a blank City postcard that people can send to their friends. Council Member Henderson stated she was referencing a card that would be easily recognizable as having information from the City, and noted a previous postcard looked like it was from Ralphs. Mr. Kiner suggested working with the hotels to develop a unique look on a postcard for the City. Council Member Henderson noted the postcard with information from the City needs to be different. She also asked if they received input on last year's calendar. Ms. Carter replied, JJYes," and indicated all of the issues will be fixed in the next calendar. Council Member Henderson stated she expects the Commerce Advisory Group to suggest getting a movie theater in the City, and she feels it might be time to make some contact in that industry. Mr. Kiner agreed, and noted theaters support restaurants. -~- ----~- - City Council Minutes 17 July 20, 2004 MOTION - It was moved by Council Members. Sniff/Osborne to approve a r Contract Services Agreement. with Kiner/Goodsell Advertising for ! Professional Marketing Services for Fiscal Year 2004/2005, deleting the . advertising for the museum, and authorizing the City Manager to execute the contract. Motion carried unanimously. MINUTE ORDER NO. 2004-95. 7 . CONSIDERATION OF SELECTION OF A REPRESENTATIVE TO THE CHAMBER OF COMMERCE WORKSHOP INFORMATION EXCHANGE COMMITTEE. There were no changes to the staff report as submitted and on file in the City Clerk's Office. MOTION - It was moved by Council Members Sniff/Henderson to appoint Mayor Adolph to serve for three consecutive meetings on the La Quinta Chamber of Commerce Workshop/lnformation Exchange Committee. ' Motion carried unanimously. MINUTE ORDER NO. 2004-96. 8. CONSIDERATION OF A RESOLUTION APPROVING THE FISCAL YEAR - 2004/2005 CITY OF LA QUINT A BUDGET AND ESTABLISHING THE CITY'S APPROPRIATION LIMIT. . Finance Director Falconer presented the staff report. Council Member Osborne stated he is pleased with some of the changes in preparation of the budget but feels there is room for more accuracy in the forecast. He noted the annual increase in the fund balance is tied more to the six-month review. Mr. Falconer stated the police department numbers increase significantly each year, and the fire department also has some major increases in anticipated expenditures. As for building permits and fees, the budget is done consistently at a certain service level, and the extreme growth since the mid 90s has resulted in large surpluses to the General Fund. Council Member Sniff stated he anticipates a substantial increase in law enforcement every year just to maintain the same level of service. Council Member Henderson pointed out not everything is going up. The City - will lose % % of the sales tax due to the triple flip as well as some auto sales tax when Champion Motors moves. She feels a conservative approach to the budget is better, and it would be a mistake to move away from that City Council Minutes 18 July 20, 2004 position. She referenced the loss of $653,000 in General Fund monies and $1,807,000 in Redevelopment funds over next two years. RESOLUTION NO. 2004-082 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA QUINT A, CALIFORNIA, ESTABLISHING THE CITY'S APPROPRIATION LIMIT FOR FISCAL YEAR 2004/2005 AND APPROVING A BUDGET FOR FISCAL YEAR 2004/2005. It was moved by Council Members Sniff/Henderson to adopt Resolution No. 2004-082 as submitted. Motion carried unanimously. MOTION - It was moved by Council Members Sniff/Henderson to receive and file the Five Year Resource Allocation Plan. Motion carried unanimously. MINUTE ORDER NO. 2004-97. 9. CONSIDERATION OF ANNUAL PLAN FOR SilverRock RESORT GOLF COURSE. Development Coordinator Roy Stephenson presented the staff report. In response to Council Member Osborne, Mr. Stephenson noted Landmark was asked to submit an annual operating budget but only a six month budget needs to be adopted at this time. For the purposes of the six month budget the average green fee is $94, and the annual fee is $85. He indicated he is comfortable with the number of rounds budgeted for the six month period. Assistant City Manager Weiss stated landmark has indicated the green fee is based on the most recent data from Desert Willow. Mr. Stephenson confirmed a net profit is budgeted for the first six months of operation, and the operator will be held to the expense side. In response to Council Member Sniff,. Mr. Stephenson stated he believes close to 200 golfers can be accommodated on a golf course during long daylight hours but an average amount may be 150. He stated opening day is scheduled for January 5, 2005. Council Member Sniff remarked he feels an estimate of 25,000 rounds is wildly optimistic, and that the fees are disproportionate. Mr. Weiss agreed the green fee is somewhat hypothetical because the actual rates have not been established. - -- .~-~- ~ - - - -- - - - - ---- - City Council Minutes 19 July 20, 2004 Council Member Sniff stated he feels the capital reserve should be 2 %. Mr. po-- I Stephenson indicated staff is comfortable with 1 % for the first six months t because there will be a one-year warranty on the golf course. He noted 1 % . was also used for the calendar year, and that it will take a few years of operation to get firm numbers. Mr. Weiss stated the operator has recommended not setting the fees until the opening gets closer, and noted there are a number of policies and procedures yet to be determined. In response to Council Member Henderson, Mr . Weiss stated the annual plan is presented to provide a sense of what the annual budget will be. Mr. Stephenson pointed out the City will have six months of actual operational revenues and expenses to look at next year. He added a pre-opening budget with landmark has already been approved for approximately $900,000. Council Member Sniff asked where the money will come from if the revenues are short. Mr. Weiss indicated any deficits would be supplemented by the General Fund Reserves. Council Member Henderson noted the purpose of building up the General - Fund Reserves is to handle any catastrophes that arise, and asked about the possibility of insuring the golf course against floods. . City Manager Genovese advised staff can look into business interruption insurance for the golf course but doubts it would be available in the beginning of the golf course. He noted the project will ultimately have its own enterprise fund to cover shortfalls. Council Member Perkins questioned landmark operating very well if they can't cut $79,000 out of the budget, and stated he doesn't support giving it to them. Council Member Henderson noted a contingency account has been set up for them to draw from. Council Member Perkins pointed out landmark is asking for $79,000 now. Council Member Sniff stated he feels the contingency account provides latitude for landmark to work. within, and if they choose to take it now, it leaves them less to draw from later on. r-- ì I I i , City Council Minutes 20 July 20, 2004 Council Member Henderson noted the Council could insist on a $3.3 million budget but most likely landmark would be back in 45 days requesting the $79,000. She asked if the $3.3 million is for six months. Mr. Weiss explained it's an annualized expense that has been pro-rated back to six months. He indicated staff has repeatedly requested a budget within the parameters established by Council and has made some suggestions but landmark feels they cannot meet that request. He noted one option would be to send the budget back to Landmark with a message to reduce it. Council Member Henderson asked if this is keeping anything from being done. Mr. Stephenson advised it does not affect landmark's grow-in budget. He indicated Landmark has been somewhat slow In getting equipment on site to maintain the grass, that is growing, but staff is working with them diligently to insure they fulfill their responsibilities. Mr. Weiss advised time spent on this and the earlier study session issue is detracting staff from moving the project forward because it's diverting attention from other issues. He added staff is working to resolve some grow-in issues, and landmark has indicated they would like to know how to proceed in regard to equipment. He stated landmark has been told they can proceed to acquire the equipment under the grow-in budget but if they want the City to assume any long-term leases, the City Attorney needs to review them and no lease has been received to date. Staff has recommended landmark do a short-term lease for equipment to ensure they meet their responsibilities under the grow-in contract and is actively working to get this issue resolved. He believes staff needs to pay attention to the real issues at hand as soon as possible. In response to Council Member Sniff, Mr. Weiss explained the annual plan covers July 2004 through July 2005, and the expense amount IS $2, 189, 169. He advised the annual expense is used as a base. The initial proposals from landmark were in the $4 million range, and staff was operating from an annualized performa of $2.7 million. Staff felt it would be easier to understand an annual budget and then bring it back to the first six months operating budget. The idea was to relate it to the performa, the industry standards in terms of what an annualized budget would be, and then prorate it for a six month period. Council Member Henderson asked if approval of the $3.3 million would then set the standard for what the budget will not go below. Mr. Weiss stated he anticipates the $2,189,169 would drop on a prorata basis to approximately $2,149,000 if the $3.3 million is established as a --------- ~-- - _n ---- ~--- - -- --~ - ------- - - ---- - City Council Minutes 21 July 20, 2004 threshold. Some portion of the $80,000 is in the first six months, and staff -- ¡ has been looking to landmark to determine where that reduction should be made. . Council Member Henderson noted the Council has already made a motion to establish the budget amount and are being asked to address the same issue again. She feels the operator is challenged to follow the Council's direction. She questions why they don't do what has been asked and come back in 45 days for the other amount. Mayor Adolph noted it's not any different than the Council giving staff a budget to work within and telling them they have to live within it. Council Member Henderson asked what would happen if no action is taken on this. Mr. Weiss indicated staff would go back to Landmark and try to work it out. MOTION - It was moved by Council Members Henderson/Perkins to re-affirm the motion made two weeks ago. Council Member Osborne stated he is not sure it's worth it, and suggested -- approving the $3, 379,000 and move on. Council Member Henderson stated she doesn't feel this is ever going to move on. Council Member Osborne stated she may be right because this has been battled for quite a while in a number of different areas but asked are we going to battle over every single thing. Council Member Henderson stated she believes if the Council stops moving, the battle will stop. Motion was not voted on. MOTION - It was moved by Council Members SnifflOsborne to approve the $3,379,366 Annual Plan as submitted by Landmark Golf Management LLC and reduce the contingency reserve to $170,634. Motion carried with Council Members Henderson/Perkins voting no. MINUTE ORDER NO. 2004-98. ,---. I STUDY SESSION - None i City Council Minutes 22 July 20, 2004 REPORTS AND INFORMATIONAL ITEMS Council Member Osborne noted the new name of the Desert Resorts Regional Airport is II Jacqueline Cochran Regional Airport." * * * * * * * * * * * All other reports were noted and filed. DEPARTMENT REPORTS 3-B. DESIGNATION OF VOTING DELEGATE FOR LEAGUE OF CALIFORNIA CITIES ANNUAL CONFERENCE. Council concurred to appoint Mayor Adolph as the. voting delegate for the League of California Cities Annual Conference and Council Member Henderson as the alternate. MAYOR AND COUNCIL MEMBERS I ITEMS - None ADJOURNMENT . There being no further business, it was moved by Council Members Perkins/Henderson to adjourn. Motion carried unanimously. Respectfully submitted, ~-d~ JUNE S. GREEK, City Clerk City of La Quinta, California ~--'---- -------- - _n_.-__- -- u- ~--- _u .-