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2006 06 06 CC Minutes LA QUINTA CITY COUNCIL MINUTES JUNE 6, 2006 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: ABSENT: Council Members Henderson, Kirk, Osborne, Sniff, Mayor Adolph None PUBLIC COMMENT - None CLOSED SESSION Council Member Osborne did not participate in Item No. 2 due to à' potential conflict of interest due to the subject property being within 500 feet of his residence. 1. Conference with labor negotiators Ski Harrison, Michael O'Connor, and John Ruiz regarding negotiations with the La Quinta City Employees Association pursuant to Government Code Section 54957.6 - Meet and Confer Process'. 2. Conference with the City's real property negotiator, Douglas R. Evans, pursuant to Government Code Section 54956.8 concerning potential terms and conditions of acquisition and/or disposition of real property located at the northwest corner of Fred Waring Drive and Palm Royale. Property Owner/Negotiator: The Robert Mayer Corporation. 3. Conference with the City's real property negotiator, Michael O'Connor, pursuant to Government Code Section 54956.8 concerning potential terms and conditions of acquisition and/or disposition of real property located southwest of the intersection of Highway 111 and La Quinta Centre Drive. Property Owner/Negotiator: George Valarde. 4. Public Employee Performance Evaluation pursuant to Government Code Section 54957, Council-appointed position - City Manager. 5. Public Employee Performance Evaluation pursuant to Government Code Section 54957, Council-a'ppointed position - City Attorney. Council recessed to the Redevelopment Agency and to Closed Session to and until the hour of 3:00 p.m. City Council Minutes 2 June 6, 2006 3:00 P.M. Mayor Adolph led the audience in the Pledge of Allegiance. PUBLIC COMMENT Ron Gaul, P. O. Box 255, Ocotillo, representing Salton Sea Coalition, invited City representatives to attend an air quality forum to be held at the U.C. Riverside-Palm Desert Campus on June 14, 2006. CONFIRMATION OF AGENDA - Confirmed ANNOUNCEMENTS - None PRESENTATIONS . Adrian Alagreti, John Reveal, and Bob Lightner, representing the Tour de Palm Springs, presented a $1,500 check for the La Quinta Senior Center. They also expressed appreciation for staff's assistance in the event. WRITTEN COMMUNICATIONS . ,1. CORRESPONDENCE FROM BOB DOYLE, SHERIFF/CORONER, DATED MAY 9, 2006, REGARDJNG APPOINTMENT OF CITY COUNCIL MEMBER TO SERVE AS REPRESENTATIVE ON RIVERSIDE COUNTY CHILD SAFETY COMMISSION. Council concurred to direct staff to agendize this matter for the June 20, 2006, Council rl1eeting. APPROVAL OF MINUTES MOTION - It was nl0vèd by Council Members Henderson/Kirk to approve the City Council/Planning Commission Joint Special Meeting Minutes of May 9, '2006, as submitted. Motion carried unaninlously. MOTION - It was moved by Council Members Sniff/Henderson to approve the City Council Minutes of May 16, 2006, as submitted. Motion carried unanimously. --_..~-_.. _. ------..---...-- -----_.-- -...-- - - "j" City Council Minutes 3 June 6, 2006 CONSENT CALENDAR 1. APPROVAL OF DEMAND REGISTER DATED JUNE 6, 2006. 2. APPROVAL OF DECLARATION OF SURPLUS PROPERTY. 3. APPROVAL OF A ONE-YEAR MAINTENANCE SERVICE AGREEMENT EXTENSION FOR STREET SWEEPING SERVICES FOR FISCAL YEAR 2006/2007. 4. APPROVAL OF DISTRIBUTION OF REQUEST FOR PROPOSALS TO OBTAIN MATERIALS TESTING SERVICES. 5. APPROVAL OF DISTRIBUTION OF REQUEST FOR PROPOSALS TO OBTAIN CONSTRUCTION SURVEYING SERVICES. 6. APPROVAL OF A ONE-YEAR CONTRACT EXTENSION FOR PROJECT LMC 2004-04, LANDSCAPE LIGHTING MAINTENANCE FOR FISCAL YEAR 2006/2007. 7. APPROVAL OF DISTRIBUTION OF REQUEST FOR PROPOSALS TO OBTAIN CONSTRUCTION INSPECTION SERVICES. 8. APPROVAL OF APPROPRIATION OF FUNDS AND CONTRACT CHANGE ORDER NO.2 TO RENOVATE LA QUINTA PARK TURF. 9. APPROVAL OF A ONE-YEAR CONTRACT EXTENSION FOR THE PARK LANDSCAPE MAINTENANCE SERVICES CONTRACT FOR FISCAL YEAR 2006/2007. 10. APPROVAL OF THE PLANS, SPECIFICATIONS, AND ENGINEER'S ESTIMATE AND AUTHORIZATION TO ADVERTISE FOR BIDS FOR AVENUE 47 AT ADAMS STREET TRAFFIC SIGNAL IMPROVEMENTS, PROJECT NO. 2005- 04. , . ~. 11. APPROVAL OF THE PLANS, SPECIFICATIONS, AND ENGINEER'S ESTIMATE AND AUTHORIZATION TO ADVERTISE FOR BIDS FOR THE AVENUE 54 PAVEMENT REHABILITATION IMPROVEMENTS, PROJECT NO. 2005-11. 12. APPROVAL OF A ONE YEAR CONTRACT EXTENSION FOR PROJECT NO. LMC 2005-08, CITYWIDE LANDSCAPE MAINTENANCE SERVICES FOR FISCAL YEAR 2006/2007. City Council Minutes 4 June 6, 2006 13. ADOPTION OF A RESOLUTION ACCEPTING A DONATION FROM TOUR DE PALM SPRINGS TO THE LA QUINTA SENIOR CENTER. (RESOLUTION NO. 2006-055) 14. APPROVAL OF PLANS, SPECIFICATIONS AND ENGINEER'S ESTIMATE AND AUTHORIZATION TO ADVERTISE FOR BID FOR THE CITY HALL EXPANSION, PROJECT NO. 2002-01. ,15. ¡ , APPROVAL OF THE ALLOCATION OF FUNDS TO REIMBURSE DEVELOPER WASHINGTON 111,L TD FOR ASPHALT REHABILITATION ON SIMON " :,DRIVE BETWEEN WASHINGTON STREET AND HIGHWAY 111, AND AUTHORIZATION TO ENTER INTO A REIMBURSEMENT AGREEMENT. , 16. AUTHORIZATION FOR OVERNIGHT, TRAVEL FOR TWO MEMBERS OF TH~ CITY'COUNCll TO ATTEND THE LEAGUE OF CALIFORNIA CITIES ANNUAL CONFERENCE IN SAN DIEGO, CALIFORNIA TO BE HELD SEPTEMBER 6-9, 2006. 17 . AUTHORIZATION FOR OVERNIGHT TRAVEL FOR FOUR MEMBERS. O,F THE CITY COUNCIL AND THE CITY MANAGER TO ATTEND THE LEAGUE, OF CALIFORNIA CITIES MAYORS AND COUNCIL MEMBERS EXECUTIVE FORUM TO BE HELD JULY 26-29, 2006 AND ONE MEMBER OF THE CITY COUNCIL TO ATTEND THE LEAGUE OF CALIFORNIA CITIES BOARD OF DIRECTORS MEETING TO BE HELD JULY 28-29, 2006 IN MONTEREY, CALIFORNIA. 18. AUTHORIZATION FOR OVERNIGHT TRAVEL FOR THE CITY MANAGER AND ASSISTANT CITY MANAGER TO ATTEND THE INTERNATIONAL, CITY/COUNTY MANAGEMENT ASSOCIATION (lCMA) ANNUAL CONFERENCE IN SAN ANTONIO, TEXAS TO BE HELD SEPTEMBER 10-13, 2006. ~ ;~' MOTION - It was moved by Council Members Sniff/Osborne to approve the Consent Calendar as recommended and with Item No. 13 being approved by RESOLUTION NO. 2006-055. Motion carried unanimously. ' t' BUSINESS SESSION , ,1. CONSIDERATION OF ANNUAL APPOINTMENTS TO CITY BOARDS, COMMITTEES, AND COMMISSIONS. There were no changes to the staff report as submitted and on file in the City Clerk's Office. ~--~'----~~'--- --~--_..__.._-_...._._.- - - - _.. --------"-----"---"-" -- -- - '-.---.. -' -- _._-- ~ - City Council Minutes 5 June 6, 2006 ARCHITECTURAL AND LANDSCAPING REVIEW COMMITTEE The following applicants gave a brief presentation on their background and qualifications: William Bobbitt Frank Christopher Ballot No. 1 Council Member Henderson voted for Council Member Kirk voted for Council Member Osborne voted for Council Member Sniff voted for Mayor Adolph voted for Michael Mastrogiuseppe William Bobbitt and Michael Mastrogiuseppe William Bobbitt and Frank Christopher William Bobbitt and Frank Christopher William Bobbitt and Frank Christopher William Bobbitt and Frank Christopher MOTION - It was moved by Council Members Sniff/Henderson to appoint William Bobbitt and Frank Christopher to two-year terms on the Architectural , and Landscaping Review Committee effective July 1, 2006. Motion carried unanimously. COMMUNITY SERVICES COMMISSION The following applicants gave a brief presentation on their background and qualifications: Mark Weber Bernard Barron E. Howard Long Robert Sylk (Ed Hackney and Victoria St. John were not present, and Ronald Sp~ar$ withdrew his application) Ballot No. 1 Council Member Henderson voted for Council Member Kirk voted for Council Member Osborne voted for Council Member Sniff voted for Mayor Adolph voted for Mark Weber, E. Howard Long, and Robert Sylk Mark Weber, Victoria St. John, and Robert Sylk Mark Weber, Bernard Barron, and Robert Sylk Mark Weber, Ed Hackney, and E. Howard Long Mark Weber, Victoria St. John, and Robert Sylk City Council Minutes 6 Ballot No. 2 Council Member Henderson voted for Council Member Kirk voted for Council Member Osborne voted for Council Member Sniff voted for Mayor Adolph voted for June 6, 2006 E. Howard Long Victoria St. John E. Howard Long E. Howard Long Victoria St. John MOTION - It was moved by Council Members Sniff/Henderson to appoint Mark Weber, E. Howard Long, and Robert Sylk to two-year terms on the Community Services Commission effective July 1, 2006.. Motion carried unanimously. .HISTORIC PRESERVATION COMMISSION The· following applicants gave a brief presentation on their background and qualifications: Maria Puente Archie Sharp Allan Wilbur Ballot No.1 Council Member Henderson voted for Council Member Kirk voted for Council Member Osborne voted for Council Men1ber Sniff voted for Mayor· Adolph voted for Wendy Wyman Campbell Douglas Barr Maria Puente, Archie Sharp, and Douglas Barr Maria Puente, Archie Sharp, and Allan Wilbur Maria Puente, Archie Sharp, and Allan Wilbur Maria Puente, Archie Sharp, .and Allan Wilbur , Maria Puente, Archie Sharp, and Allan Wilbur MOTION - It was moved by Council Members Sniff/Kirk to appoint Maria .. . Puente, Archie Sharp, and Allan Wilbur to three-year terms on the Historic Preservation Commission effective July 1 , 20.06. Motion carried unanimously. INVESTMENT ADVISORY BOARD The following applicants gave a brief presentation on their background and qualifications: ~_._.._..__.._~~ -- - --- - ~- --...-- --- - -- ----- - -- City Council Minutes 7 June 6, 2006 Gary Egbert Randy Rassi {Christina Deniel was not present} MOTION - It was moved by Council Members Kirk/Osborne to appoint Gary Egbert, Randy Rassi, and Christina Deniel to three-year terms on the Investment Advisory Board effective July 1, 2006. Motion carried unanimously. PLANNING COMMISSION The following applicants gave a brief presentation on their background and qualifications: James Booth Katie Barrows Brent Clemmer James Engle Jr. (Ed Alderson and Michelle Germyn were not present) Ballot No. 1 Council Member Henderson voted for Katie Barrows, Ed Alderson, and James Booth Council Member Kirk voted for Katie Barrows, Ed Alderson, and Brent Clemmer Council Member Osborne voted for Katie Barrows, Ed Alderson, and James Engle Jr. Council Member Sniff voted for Katie Barrows, Ed Alderson, and James Engle Jr. Mayor Adolph voted for Katie Barrows, Ed Alderson, and James Engle Jr. MOTION - It was moved by Council Members Sniff/Henderson to appoint Katie Barrows, Ed Alderson, and James Engle Jr. to two-year terms on the Planning Commission effective July 1, 2006. Motion carried unanimously. Council recessed to and until 7 :00 P.M. 7:00 P.M. City Council Minutes 8 PUBLIC COMMENT June 6, 2006 Lucia Moran, P.O. Box 1 305, commented on the amount of graffiti in the City, especially in the business districts, and noted the City doesn't paint over graffiti in commercial areas. She requested the City's policy be changed, and the graffiti removed by the City within 24 hours if not taken care of by the commercial property owner. Mayor Adolph stated it's his understanding that the City removes graffiti in the commercial areas, and he has been told by the Police Department that they are actively pursuing the violators. PRESENTATIONS The Mayor ·and Council Members presented art awards to the following students of Ben Franklin Elementary School whose artwork has been displayed at City Hall: Selena Alavarez Raul Blanco-Cordova Kevin Coronel Claudia Cortez Diana Cota Damien Fernandez Ä. J. Flores Isaac Frias Janiell Garza Brigitte Gill Daniel Gonzalez Tanya Guadalupe-Lopez Brady Hall Cruz Martin Carillo Michelle Martinez Lexy Mota Manuel Andreli Ozonio Isela Pelayo-Aceves Monique Pina Laura Ramirez PUBLIC HEARINGS - None BUSINESS SESSION . . . . . . . . . . . continued Austin Rholand Jazmine Rendon Nikita Sacakusumah Adrinna Teran Johnni Tillman Jazania Trejo Alexandra Vargas Marsela Warshaw Yvette Zavala 2. CONSIDERATION OF AN ORDINANCE REGARDING THE LICENSING OF TOBACCO RETAILERS. , Mayor Adolph indicated this item would be continued to June 20, 2006, per . a request from the County representatives. 3. CONSIDERATION OF CITY'S 25TH ANNIVERSARY CELEBRATION. Community Services Director Hylton presented the staff report. -- -----~ -- - - - ..._-~- - - City Council Minutes 9 June 6, 2006 Council Member Henderson stated she supports forming a committee. Council Member Osborne referenced the need to remove KSL from the list. Council Member Sniff commented on the short timeframe since the 20th anniversary celebration, and questioned there being an interest in doing a 25th anniversary celebration. He suggested staff come back with the following recommendations: 1) who should serve on the committee; 2) how often the committee should meet; and 3) a charge as to what the committee would be doing. Mayor Adolph suggested replacing KSL with a representative from Hilton Hotels. He commented he believes there is interest in having a larger gala for the 25th celebration, and suggested checking with groups like the Chamber of Commerce for interest in participating on the committee. Ms. Hylton indicated some of the people who previously served on the committee have voiced interest in participating again. Council Member Henderson spoke in support of starting with the previous, and having information brought back for Council consideration. In response to Council Member Sniff, City Manager Genovese explained the $65,000 budget amount will be subject to Council approval during the budget process. He requested Council input as to any other entities they would like staff to contact regarding participation on the committee. Council Member Henderson and Mayor Adolph volunteered to serve on the committee. There was consensus for Council Member Henderson and Mayor Adolph to serve on the 25th Anniversary Celebration Committee. 4. CONSIDERATION OF INITIATING A FITNESS USE CARD AT THE BOYS & GIRLS CLUB. Community Services Director Hylton presented the staff report. In response to Mayor Adolph, Ms. Hylton confirmed the facility is expected to be completed in July. City Council Minutes 10 June 6, 2006 MOTION - It was moved by Council Members Henderson/Osborne to approvr: initiation of a Fitness Use Card at the Boys and Girls Club. Motion carried unanimously. 5. CONSIDERATION OF ANNUAL PLAN FOR SilverRock RESORT. Community Services Director Hylton presented the staff report. In response to Mayor Adolph, Randy Duncan, General Manager and Director of Golf at SilverRock Resort, stated the planet air aerator equipment is new technology that recently becarlle available, and the other items were requested last year but not approved. He stated the aerator is used five times a year on the greens between May and September, and confirmed there is sufficient space in the maintenance facility to store the new equipment. ·In response to Council Member Osborne, Mr. Duncan stated the average rate per round is still low but a higher average rate is anticipated next year. Council' Member Sniff voiced concern about the operating deficit, and asked how the General Fund will be reimbursed for the annual deficit amounts. City Manager Genovese noted the City decides whether or not to advance funds from the General Fund to cover a negative cash flow for the golf course. How long the deficit continues will depend on development of the rest of the site. He stated he anticipates development will occur within the next two, years, which will decrease the deficit but not ensure a balanced budget. He noted SilverRock is an economic development activity and a recreational amenity wherein funding is not usually regained. In response to Council Member Henderson, Mr. Duncan confirmed several drafts of the operating budget have been presented to staff, including discussions about equipment needs. , : Council· Member Henderson commented she recalls the financial impact studies· for the golf course indicating potential General Fund subsidies of approximately $500,000 each year for at least three years. Mr. Genovese stated he doesn't recall the specific amounts but confirmed subsidies were anticipated during the early years, especially in providing a tournament-quality course. He noted the golf course can be maintained for less but the quality would not be the same. - - ."-.- - - -- - ---. ~.- ---- City Council Minutes 11 June 6, 2006 Council Member Henderson noted the residential rate affects the operating budget and subsidy amount. Mr. Genovese noted affordable golf is part of the recreational amenity tool, and long-term TOT revenues are part of economic development. He stated during the period of time the golf course is primarily a recreational tool, the operating budget will need to be subsidized. He added it's anticipated that the site will, ultimately, produce a positive revenue source. Council Member Henderson pointed out TOT from the hotel and increaséd golf rounds at the private rate, will help repay the Generaf Fund subsidy amounts until it becomes additional revenue. Mr. Genovese confirmed non-residential play is anticipated to increase substantially once a hotel is developed. Council Member Kirk inquired about the rate percentages for golf rounds, and what the average annual resident rate is. Mr. Duncan stated the "others" category includes tournaments, wholesalers, standby golf, discounted golf, local PGA professional play, juniors, and replays, and is the only category that is not fixed. The estimated average annual resident rate is in the high $40s, the average regular rate in the high $80s, and "others" in the $50 range. Council Member Kirk asked if the subsidy for SilverRock is an unprecedented amount when compared to other municipal courses. Mr . Duncan stated he feels SilverRock is similar to how Desert Willow, in the City of Palm Desert, was in the beginning. The first course opened in 1997 and the second in 1 998 but they didn't break even until 2004 or 2005. Council Member Kirk asked if there are other budgets for a recreational amenity that are close to the SilverRock budget. Ms. Hylton stated parks are the largest expense because no fees are collected for parks. There are also subsidies for the Senior Center, and other' recreational programs, particularly to keep the activities affordable for youth participation. Council Member Kirk asked if a deficit would exist if there wasn't a resident rate. City Council Minutes 12 June 6, 2006 Mr. Duncan stated the deficit would still exist but he would need to do further analysis to determine the actual effect. He noted resident-rate play helps when there isn't any tournament or full-pay play, and it has not displaced a lot of revenue. He confirmed a lot of residents would not play if there was not a resident rate. Council Member Kirk commented it's hard to accept that an operating deficit will exist for a period of time but he doesn't feel it has much to do with the operator's business plan. Council Member Henderson noted $98,000 is for capital equipment, and the $544,000 is closer to projections. She commented on there being some discussion. to increase the marketing budget, and noted although it's , intended to bring more golfers, it will also increase the net loss. She feels it's reasonable to consider increasing the marketing budget but would like for staff and Landmark to consider what added amount would generate a benefit to the golf course, and bring it back to Council for consideration. . Council Member Osborne stated he feels Council understands the golf course will not break even for a period of time, and that work is being done to get a hotel in place. Mayor Adolph agreed SilverRock will generate more revenue once the hotel development moves forward. Council Member Sniff stated he will support the annual plan, and suggested the advertising budget be increased to generate more activity. He noted it can be reviewed next year to see how effective it was. MOTION - It was moved by Council Members Henderson/Osborne to approve the Annual Plan for SilverRock Resort as submitted by Landmark Golf Management, LLC, which projects $3,190,786 in revenues and $3,735,156 in expenses for a net loss of $544,370, and an additional $98,353 for capital expenses, and direct staff to return with a separate marketing budget reflecting today's discussion. Motion carried unanimously. 6. CONSIDERATION OF SITE DEVELOPMENT PERMIT 2004-809, AMENDMENT " NO'. 1, ARCHITECTURAL REVISIONS AND LANDSCAPING PLANS FOR A REVISION, TO THE EXISTING APPROVAL FOR A CLUBHOUSE FACILITY ASSOCIATED WITH WATERMARK VILLAS (SPECIFIC PLAN 2003-069), TO Be LOCATED AT THE NORTHWEST CORNER OF AVENUE 52 AND JEFFERSON STREET. APPLICANT: INNOVATIVE COMMUNITIES, INC. -- _....~..._....._. ._- - - ~ - City Council Minutes 13 June 6, 2006 Principal Planner Nesbit presented the staff report. In response to Council Member Henderson, Mr. Nesbit confirmed the project will still have subterranean parking for the residential units. Mayor Adolph voiced concern about the outdoor dining area being so close to the roundabout at Jefferson Street and Avenue 52. Brad Fulman, 200 E. Washington, Suite 100, Escondido, representing Innovative Communities, stated the actual dining area is further from the street. He indicated they previously proposed a public restaurant but the current proposal is clubhouse dining for members only. Mr. Nesbit noted the main dining area is in the interior of the building with glass doors opening to the covered patio area. Mayor Adolph inquired about the building height and the distance from the building to the curb at Jefferson Street and Avenue 52. Community Development Director Evans stated the distance from the curb to the seating area is approximately 30 feet. He understands the intent is to provide an open atmosphere but feels it might be changed to more of a private courtyard with a higher wall as the project develops because of traffic noise. Mayor Adolph voiced concern about the visual effect of having the building so close to the corner. MOTION - It was moved by Council Members Henderson/Kirk to approve Site Development Permit 2004-809, Amendment No.1, subject to Findings and Conditions of Approval. Council Member Kirk commented on the outdoor dining area at the Las Casuelas Restaurant working well, and it's at a busier intersection. Mayor Adolph noted that restaurant area has a high wall and roof that helps soften the noise. Council Member Kirk suggested the applicant might be able to incorporate some of the same design elements into this project's outdoor area. Motion carried with Mayor Adolph voting NO. City Council Minutes 14 June 6, 2006 7. CONSIDERATION OF LA QUINTA'S SPHERE OF INFLUENCE AND ANNEXATION POLICY. Community Development Director Evans presented the staff report. In response to Council Member Osborne, Mr. Evans stated there will be an overlap of all the studies relative to fiscal, land use, and infrastructure needs and confirmed the strategic plan will take about six months to complete. He stated he believes the City will be able to get a project through annexation and approve a final map faster than the County would be able to deliver a final map. He confirmed a number of developments are currently under review with the County. Council Member Henderson commented on the recent fiscal analysis based on four units per acre, and asked if that model projected revenue generation on the commercial property. Mr. Evans stated it did but it also included the Kohl Ranch, which will not be a part of the future study. He indicated the analysis was based on the City's General Plan. He feels the land use statistics used for forecasting should be recalculated because of large areas that have built out at substantially· less than three units per acre. He noted a density reduction will reduce a need for commercial, and that the Vista Santa Rosa (VSR) Coalition fiscal model only projects 60,000 square feet of commercial. In response to Council Member Henderson, Mr. Evans indicated spendable income and the amount of commercial will be used to derive a dollar figure for the model, and a land use analysis will also be done relative to Council and community input. He referenced potential lodging opportunities around the Augustine Casino and Desert Circuit. He also indicated developers anticipate a resort in the area but none have been proposed at this time. He . . ,referenced the need for a consultant firm with expertise in equestrian activities, and noted the market for pure new subdivision equestrian will not be known until the development process is tried. City Manager Genovese noted a professional marketing analysis will be needed to .determine the potential for an equestrian market. Council Member Henderson inquired about the County's process for approving developments in VSR. Mr. Evans stated some developments reviewed by the VSR Community Council have been approved by the Board of Supervisors, some are pending, and some are scheduled to be heard by the County Planning Commission. _. ..-..-..-..-..-.- - .--.. - .- ~'. - City Council Minutes 15 June 6, 2006 Council Member Henderson voiced concern about developments being approved by the County without any type of assessment or contribution toward being self sustained. She commented on the possibility of getting an agreement with the County to approve developments with a condition for some type of financial participation if annexed into the City. She feels if projects continue to be approved by the County, it will damage the vision for the future in that area. Council Member Kirk stated he is also concerned about projects being approved by the County without the City having an opportunity to capture the fiscal impacts of the projects through the approval process. He asked if it's possible for the County to provide a mechanism that would provide for a fee to the City upon annexation. Mr. Evans stated he feels projects already under construction are probably' beyond the City's ability to charge an assessment, and referenced the need for pre-annexation development agreements where property owners ha"ve approved projects in the County but are not sold. He indicated financing districts can be put in place as a condition of annexation through a development agreement, which is a good reason for having a model development agreement upfront. Once the County provides an agreement, the City can propose adding something that will cover projects currently in the County process. In response to Council Member Kirk, Planning Manager Johnson confirmed his involvement with the Task Force has been mainly observation at this point. Council Member Kirk voiced concern about decisions being made on property that could be annexed to the City without City input on the land use. He also voiced concern about the potential for developers to file applications with the County because they feel there is more certainty in the County system at this time. Mr. Evans noted the City will have to deal with the potential of development until annexation takes place. The only other way is to annex the property upfront and accept the financial and public service burdens. Council Member Kirk asked why hard negotiations haven't been started with the County. Mr. Evans stated he feels it's important to have the right information in order' to understand what to negotiate for. Staff has requested information from City Council Minutes 16 June 6, 2006 the County, and they have indicated they will provide it. He anticipates a City proposal being made once the requested information has been received. Council Member Kirk asked when that is anticipated to happen. Assistant City Manager 0' Connor stated he understands the County intends to contact City staff this week. Richard Fausel, 42-311 May Pen, Bermuda Dunes, stated he owns nine acres on the southeast corner of Avenue 61 and Monroe Street. He feels the parcel would be a good place for commercial development, and would like to know what the process is to get it zoned commercial. Mayor Adolph suggested he meet with staff to discuss the process. ,Mr. ,Evans referenced another property owner that has been coordinating an effort in this area, and suggested he also talk to him. Council Member Henderson asked if the City has neighborhood commercial sites less than 10 acres, to which Mr. Evans responded, "Yes." He added if Council directs staff to do a land use study, they will look at land use changes that make the most sense for long-term development of the area. In response to Council Member Sniff, Mr. Evans confirmed a written response has not been sent to Supervisor Wilson but there have been some follow-up discussions. Council Member Sniff noted whiie the City tries to decide what it's going to do, the County is moving forward with deliberate speed to get projects going in the area. He is concerned the City will inherit a hybrid community with a mix .of City and County standards. He supports dealing effectively with the . County now, or making decisions without them if necessary. He supports being aggressive and decisive on a major scale, including doing a large scale annexation if necessary. He stated he feels property owners filing pre- annexation development agreements should be told there likely will be costs to them if a tax-increment sharing agreement cannot be worked out with the County. He asked if any legal reason exists why the City can't do a large scale annexation contiguous to City limits, to which Mr. Evans responded, "No." Council. Member Osborne stated he feels it would be wrong to do an annexation of that magnitude without a strategic plan because the fiscal impacts will not be known. -_.._..._--~--~~-- ---- --_._.__._-~.._-_._._._-_....._.._- City Council Minutes 17 June 6, 2006 In response to Council Member Osborne, Mr. Evans confirmed staff can put together an outline of the steps involved to develop a strategic plan by January 2007. He added if Council wishes, staff can use the existing land use, and development assumptions under the existing General Plan to do a fiscal analysis. He noted that would give Council information sooner than six months as to the effect of the phase one annexation the Coalition is asking the City to take at one time. He believes the previous study should be refined, and noted different densities can be used once a model is developed. Council Member Osborne suggested the study be done at 2 to 3 units per acre. Mr. Evans noted Council can direct staff to move forward with those numbers and change them later if they want because staff will be coming back to Council for input over the next six-months period. Council Member Henderson asked about the possibility of simultaneously beginning a general plan amendment to change the zoning in Planning Area No. 1 with a modeling for the financial impact, and preparing an application to LAFCO for annexation. She asked at what point the application for annexation has to show pre-zoning. Mr. Evans stated the pre-zoning action has to be submitted with the application. He indicated LAFCO would require a new environmental assessment if the existing Notice of Determination is used for pre-zoning. He stated the two-year limit starts at the date of the annexation but LAFCO wants all the information they analyze when the application is submitted, which could result in a four to six months lag time. City Attorney Jenson stated she doesn't believe new environmental would be needed if the density is lower because the impacts would be within the previously-certified. environmental. She indicated an addendum would be needed. Mr. Evans pointed out the potential for creating a new environmental impact if any of the land is rezoned to commercial. Council Member Henderson asked if zone changes are legally permissible in specific plans during the two-year period. Mr. Evans stated staff would have to research that possibility. Council Member Henderson indicated she doesn't support filing for a massive annexation until staff comes back with some figures, and the property City Council Minutes 18 June 6, 2006 owners are willing to enter into a pre-annexation agreement based on those figures. It's her understanding that schemes exist that could be accessed, given the opportunity for the City and County to get into a IInuts and bolts" discussion. Council Member Kirk asked if the City relies on pre-annexation agreements for a large scale annexation, how will IIfree rider" properties included in that annexation be handled should they decide to develop their properties. Mr. Evans stated the City can impose conditions of approval and require mitigation of fiscal impacts. He noted cities throughout the Valley are imposing Community Facility Districts because they can't afford to provide services and facilities with the standard tax revenue from residential development. Council Member Kirk stated he feels it's critical during the interim period to have an MOU with the County to coordinate processing of applications, and that it should be conveyed to staff so they will know they are on the right track. He doesn't want to see the development community in-between the City and County processes and use it to work the two sides against each other. He feels the VSR design guidelines should be thoroughly reviewed by staff and possibly adopted by the City after any needed modifications are made. He feels part of the coordination between the City and County is understanding what commonality exists, and suggested the possibility of staff participating on a joint City/County Task Force on land and fiscal issues to avoid duplication of efforts. He feels the City should wait on the fiscal analysis before annexing a large area but that it's a good idea to process up to three smaller annexations that are most prepared and likely to meet LAFCO's requirements. He indicated he would like to see one annexation in the Thermal Redevelopment Project Area and one outside of it. , Council Member Sniff questioned why the City would move forward with three small annexations of modest consequence while the County continues to consider numerous development proposals. Council Member Kirk stated he hopes the MOU will address that concern, and suggested making it a high priority and establishing a timeline for it. He also feels the Council should be more engaged personally in dealing with <,some of the issues with Supervisor Wilson. Council Member Sniff stated he doesn't have a problem doing smaller annexations but doesn't see a problem with doing a few big ones either. He feels the property owners should be told there may be significant costs and let them go forward with that understanding. He feels this should be treated --.--.---.-.....-,.-- --- ._~ --- -- - - -- - -- -_.._- City Council Minutes 19 June 6, 2006 like business, and if the County chooses to ignore the City, the City can set a course to move forward. He voiced concern about developments going forward in the area without the City's standards. Council Member Henderson voiced concern about moving forward with a major annexation without any resolution from the County because there would no longer be a reason for the County to resolve the issue. She stated she believes staff is doing everything possible to move the process forward. She stated some of the land owners have written Supervisor Wilson and received a response indicating the area is bonded to $75 million with a long list of projects east of Harrison Boulevard. She feels the area has an even greater capacity for bonding, and that it's important to talk to Supervisor Wilson to make sure some of the tax increment money is dedicated to that area. As for the amount of time spent on this issue, she noted the City didn't have a legal right to make these types of decisions until LAFCO approved the sphere of influence three months ago. MOTION - Council Member Kirk moved to 1) confirm the direction established by staff regarding an MOU with the County in terms of processing applications during the interim period; 2) direct staff to evaluate the VSR design guidelines and forward them to the Planning Commission and City Council for consideration; 3) approach the County about the role of the Task Force and how it could work for both the City and the County; 4) process up to three annexations during the interim period (one inside and one outside of the Thermal Redevelopment Project Area); and 5) immediately begin a fiscal study that includes a variety of land use scenarios in limited detail, particularly in Planning Area No.1. Council Member Osborne voiced concern about doing any type of annexation and being stuck with zoning for two years. He prefers holding off on the annexations for at least 30 days to find out where we stand with an MOU. Council Member Kirk agreed to remove that part from the motion and take it up separately. REVISED MOTION - It was moved by Council Members Kirk/Osborne to 1) confirm the direction established by staff regarding an MOU with the County in terms of processing applications during the interim period; 2) direct staff to evaluate the VSR design guidelines and forward them to the Planning Commission and City Council for consideration; 3) approach the County about the role of the Task Force and how it could work for both the City and the County; and 4) immediately begin a fiscal study that includes a variety of land use scenarios in limited detail, particularly in Planning Area No.1. City Council Minutes 20 June 6, 2006 Motion carried with Council Member Sniff voting NO. Council Member Kirk stated he understood there was consensus at the last Council meeting to direct staff to process up to three annexations. Council Member Henderson concurred, and noted she suggested the developers share their proposals with the VSR Community Council. Council Member Osborne indicated he has concerns about receiving development proposals that may not fit the City's future design for the area. Council Member Henderson noted zoning at 1 to 4 units per acre does not guarantee 4 units per acre, and staff can give developers direction as to how the community has been building out at around 3 units per acre. She pointed out the next item on the agenda addresses that issue, and if those guidelines are adopted they can flow over into the VSR community. Council Member Kirk commented on consideration of an annexation not guaranteeing 4 units per acre with urban standards, and stated he wants to · see proposals that are sensitive to VSR. MOTION - It was moved by Council Member Kirk and Mayor Adolph to direct staff to consider up to two annexations during the interim period, or until reconsidered by the City Council, and with at least one of the annexations being within the project area and one outside of the project area; that the projects be referred to the VSR Community Council and the developers encouraged to approach other community groups in the area prior · to the propósals being considered by the Planning Commission and City Council. Council Member Kirk noted it could be necessary to revisit this if an annexation doesn't make sense because the County doesn't work with the City, and it is difficult to get a Development Impact Fee for more than five years. Council Member Henderson noted the discussion at the last meeting was for up to three applications, and asked staff how many have been received. Mr. Evans stated the City has not received any applications for annexation but there has been one development application, and that developer is · working with a larger group of property owners for a future annexation. Another group of property owners is trying to get a group interested in an annexation, which would be most or all outside of the project area. A third -- - -- --- _..~--- City Council Minutes 21 June 6, 2006 group has voiced interest in filing an application for annexation but without a development proposal, and it may result in one property owner filing for a property owner annexation for commercial property. Council Member Sniff asked for clarification on the meaning of /lsmaller/l annexations. Council Member Kirk responded anything under 3,000 acres but he feels that will be defined by LAFCO because their policy is to incorporate multiple property owners when it makes sense from both a boundary and existing land use standpoint. Council Member Sniff suggested indicating a not-to-exceed amount In the motion. Council Member Kirk stated he prefers not to amend the motion, and Council Member Sniff indicated he could not support it as stated. Council Member Osborne indicated he may vote against the annexation applications, depending on the project proposals. Council Member Henderson stated she feels it's unfair to limit it to two applications when three was discussed at the last meeting. Council Member Kirk agreed to modify the motion to accept· three . applications. In response to Council Member Henderson, Mr. Evans clarified staff's presentation included a core area of annexations that may radiate outward. Council Member Kirk indicated it was not his intent to set specific annexation boundaries but rather to direct staff to consider applications. He feels the applications will depend on property owner negotiations and discussions with staff and LAFCO. AMENDED MOTION - It was moved by Council Member Kirk and Mayor Adolph to direct staff to consider up to three annexations during the interim period until reconsidered by the City Council; that at least one of the annexations be within the Project Area and one outside of the project area; . that the projects be referred to the VSR Community Council and encouraged to approach other community groups in the area prior to the proposals being considered by the Planning Commission and City Council. Motion carried with Council Member Sniff voting NO. City Council Minutes 22 June 6, 2006 Council took a brief recess, and reconvened at 10:24 with Mayor Adolph absent due to illness. 8. CONSIDERATION OF LAND USE AND DEVELOPMENT POLICIES FOR THE SOUTHERN SECTION OF LA QUINTA. Planning Manager Johnson presented the staff report. In response to Council Member Osborne, Mr. Johnson confirmed subdivisions less than 10 acres would have a maximum density of 2 units per acre, and subdivisions 10' acres and above would be allowed up to 4 units per acre. The intent is to encourage consolidation òf properties and larger development proposals. Council Member Henderson asked if there would be any leeway in the policy to allow 3 units per acre in subdivisions under 10 acres or would specific plans be used to allow for density bonuses. Community Development Director Evans indicated a zoning overlay may be necessary, and the policy will let developers know what Council's expectations are. He added staff will do a general plan and zoning evaluation, and bring back a policy for Council adoption. Council Member Henderson asked about zoning and general plan changes for the Vista Santa Rosa area being done at the same time. Mr. Evans stated this is a smaller geographic area and not as complex in the analysis. It is a parallel study but they may have different timeframes. Council Member Henderson spoke in support of staff's recommendation. . She feels they are good policy directions to be used anywhere in the sphere of influence area. MOTION - It was moved by Council Members Osborne/Henderson to direct staff to·, prepare General Plan and Zoning Amendments that encourage subdivisions with total acreage greater than 10 acres, good traffic circulation and access, good overall subdivision design, and IIquality of life" amenities and features. Council J\IIember Osborne clarified it also includes 2 units per acre for subdivisions under 10 acres. -~- --..----..,---. ...--..------ -..- - - -- -- City Council Minutes 23 June 6, 2006 Council Member Kirk stated he agrees the policy makes sense in the Vista Santa Rosa area, and indicated he supports this type of encouragement of better land use planning as part of consideration of land use in the Vista Santa Rosa area. Motion carried with Mayor Adolph ABSENT. STUDY SESSION - None REPORTS AND INFORMATIONAL ITEMS Animal Campus Commission - Council Member Henderson reported on an animal cruelty case wherein a number of animals had to be euthanized. CVAG Human & Community Resources Committee - Council Member Osborne stated they will be forming a subcommittee to work on the homeless issue. League of California Cities Council Member Henderson reported the telecommunications issue has passed out of the Senate without any consideration of the League's input. She feels the proposed legislation is not IIfriendly" to cities. She indicated the League is also taking a strong position to assist in the IICities for Healthy Kids" program. Riverside County Desert Library Zone Advisory Board - Council Member Henderson reported new technology is being utilized wherein students will be able to log onto live homework help at the Riverside County Library System web page. Riverside County Transportation Commission - Council Member Henderson stated funding from the Federal government and some major water districts will provide for four to six core drilling sites to establish if geology will support a proposed tunnel between T emecula and Orange County. San Jacinto/Santa Rosa National Monument Advisory Committee - Council Member Henderson reported they have requested reconsideration of a ban on hang- gliding in the Monument. They also have approved signs for the cities to purchase and post at the Monument boundaries. SilverRock Subcommittee - Council Member Osborne stated Landmark plans to put decomposed granite in the natural areas. They have also received a final report from the PGA Tour, and will be providing an official response to the City. City Council Minutes 24 June 6, 2006 Council Member Henderson referenced a thank you lett'er from the Riverside County Juvenile Justice and Delinquency Prevention Commission for use of the Council Chambers for their meeting. * * * * * * * * * * * * * All other reports were noted and filed. ..; ..,.t" DEPARTMENT REPORTS 1-B'.· DISCUSSION OF BUDGET CALENDAR. After a brief discussion, Council concurred to schedule a special meeting to consider. the preliminary budget on June 21, 2006, at 6:00 p.m. . MAYOR AND COUNCIL MEMBERS' ITEMS 1. DISCUSSION REGARDING JUL Y3, 2006. Mayor Pro Tern Sniff requested an item be placed on the next City Council agenda to consider closing City Hall on July 3, 2006. In response to Council Member Osborne, City Attorney Jenson advised it would not be a gift of public funds as long as Council can make findings of public benefit. * * * * * * * * * * Council Member Osborne requested a Mayor and Council Members' Item be placed on the next agenda regarding code enforcement issues on commercial property Council recessed to the Redevelopment Agency and to Closed Session as delineated on Page 1. The City Council meeting was 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 25 ADJOURNMENT There being no further business the meeting was adjourned. Respectfully submitted, ~-ef~ JUNE S. GREEK, City Clerk City of La Quinta, California June 6, 2006