2008 04 01 CC Minutes
LA QUINT A CITY COUNCIL
MINUTES
APRIL 1, 2008
A regular meeting of the La Quinta City Council was called to order at the hour of
3:00 p.m. by Mayor Adolph.
PRESENT:
ABSENT:
Council Members Henderson, Kirk, Osborne, Sniff, Mayor Adolph
None
PUBLIC COMMENT - None
CLOSED SESSION
1. Conference with 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
southwest of the intersection of Highway 111 and La Quinta Centre Drive.
Property Owner/Negotiator: Torre Nissan, George Velarde.
Council recessed to the Redevelopment Agency and to Closed Session to and until
the hour of 4:00 p.m.
4:00 P.M.
The City Council meeting was reconvened with no decisions being made in Closed
Session which require reporting pursuant to Government Code Section 54957.1
(Brown Act).
Mayor Adolph led the audience in the Pledge of Allegiance.
Mayor Adolph announced he attended a fund raiser for the families of Marines
deployed to Afghanistan and Iraq, and displayed the Marine Bear he received at the
fund raiser .
PUBLIC COMMENT
Lucia Moran reported there were 28 participants in the Soap Box Derby event, and
nine were from La Quinta; there were six new cars, and three new paint jobs were
donated. She announced Michael Van Cook and Riley Jones have progressed to
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April 1, 2008
race in the 7151 All American Soap Box Derby in Akron, Ohio in July, and stated the
organization is accepting donations. The event was successful as a result of
generosity from the sponsors and the assistance of volunteers. She thanked the
City for their sponsorship, and requested that the sponsorship of the franchise fee
and road closure expenses be considered in the next fiscal year budget.
Joanne Leinow, Big Brothers Big Sisters of the Desert, Prevent Child Abuse
Council, announced April 2008 is Child Abuse Prevention Month, and submitted
posters to be displayed during the event. Mayor Adolph presented a proclamation
declaring April 2008 as Child Abuse Prevention Month.
CONFIRMATION OF AGENDA - Confirmed
ANNOUNCEMENTS - None
PRESENTATIONS - None
WRITTEN COMMUNICATIONS - None
APPROVAL OF MINUTES
MOTION - It was moved by Council Members Sniff/Henderson to approve the City'
Council Minutes of March 18, 2008, as submitted. Motion carried unanimously.
CONSErIlT CALENDAR
1. APPROVAL OF DEMAND REGISTER DATED APRIL 1, 2008.
2. ADOPTION OF A RESOLUTION ACCEPTING A DONATION FROM THE
f. ... LA QUINTA HISTORICAL SOCI!::TY FOR THE MUSEUM. (RESOLUTION NO.
2008-015)
3. DENIAL OF CLAIM FOR DAMAGES FILED BY JACQUELINE MATTHEWS _
DATE OF LOSS: FEBRUARY 3,2008.
4. ADOPTION OF A RESOLUTION TO EXTEND THE TIME FOR COMPLETION
OF OFFSITE IMPROVEMENTS FOR TRACT MAP 32070, CODORNIZ, RJT
HOMES, LLC. (RESOLUTION NO. 2008-016)
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April 1, 2008
5. ADOPTION OF A RESOLUTION TO EXTEND THE TIME FOR COMPLETION
OF ONSITE IMPROVEMENTS FOR TRACT MAP 32070, CODORNIZ, RJT
HOMES. LLC. (RESOLUTION NO. 2008-017)
6. ADOPTION OF A RESOLUTION TO EXTEND THE TIME FOR COMPLETION
OF OFFSITE AND ONSITE IMPROVEMENTS FOR TRACT MAP 32225,
SANTERRA. G5 ENTERPRISES. INC. (RESOLUTION NO. 2008-018)
7. ADOPTION OF A RESOLUTION GRANTING CONDITIONAL APPROVAL OF A
FINAL MAP AND SUBDIVISION IMPROVEMENT AGREEMENT FOR TRACT
MAP 34968, MADISON CLUB VILLAS, EAST OF MADISON. LLC.
(RESOLUTION NO. 2008-019)
8. ADOPTION OF A RESOLUTION GRANTING CONDITIONAL APPROVAL OF A
FINAL MAP AND SUBDIVISION IMPROVEMENT AGREEMENT FOR TRACT
MAP 34969, MADISON CLUB CLUBHOUSE. EAST OF MADISON. LLC.
(RESOLUTION NO. 2008-020)
9. DENIAL OF CLAIM FOR DAMAGES FILED BY LORI BOWERS - DATE OF
LOSS: OCTOBER 5. 2007.
10. AUTHORIZATION FOR OVERNIGHT TRAVEL FOR THE PERSONNEl/RISK
MANAGER TO ATTEND THE LEAGUE OF CALIFORNIA CITIES EMPLOYEE
RELATIONS INSTITUTE 2008 HELD IN SAN DIEGO. CALIFORNIA. APRIL 24-
25. 2008.
MOTION - It was moved by Council Members Sniff/Kirk to approve the
Consent Calendar as recommended and with Item Nos. 2, and 4-8 being
approved by RESOLUTION NOS. 2008-015 through 2008-020 respectively.
Motion carried unanimously.
BUSINESS SESSION
1. CONSIDERATION OF A FUNDING REQUEST FROM THE FIND FOOD BANK
FOR CONSTRUCTION OF A WAREHOUSE FACILITY IN THE CITY OF INDIO.
Community Services Director Hylton presented the staff report.
In response to Council Member Sniff, Community Services Director Hylton
stated to her knowledge, the City of Indio has not made a monetary
donation.
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April 1, 2008
David Paradine, FIND Food Bank, introduced Jim Houston, volunteer, and
Sam Hook, President; stated they are in the process of acquiring a new
facility due to limited storage space at the current facility in Cathedral City;
explained during the last few years the organization has experienced an
increased demand for food due to higher prices; stated they provided an
average of 98,000 units of services monthly last year and the average has
increased this year; stated their geographic distribution area ranges from
Cabazon to the Salton Sea; explained they provide food to 18 kitchens,
which in turn provide one to three meals a day to the homeless; they have
received a total of $1.7 million from the City of Palm Desert and the County
of Riverside, and Desert Health Care has matched that amount; they also
have commitments of $250,000 from both the City of Rancho Mirage and
the City of Indian Wells; they have requested the same commitments from .
the City of Palm Springs and the City of La Quinta, and will be contacting
other cities in the Valley to participate at whatever level than can.
Council Member Sniff questioned what $250,000 will purchase for the
organization. Mr. Paradine explained the funding will be used to help
purchase the building, land, and architect services; and confirmed an
estimate of $5 million for construction and that the land has been purchased.
He explained the proportion of food they handle is 70% dried goods with the
remaining being fresh vegetables, which are kept in a 800 cubic-foot freezer
and cold room; stated they hope to have a 6,000 cubic-foot freezer in the
new facility; explained they receive the food then distribute it to other
facilities such as Martha's Kitchen; clarified the process to determine the
needs of those requesting assistance is provided by the Department of Social
Services; explained fundraising events are used to provide operating costs,
and stated the current budget is approximately $1 million with 11 paid
employees including himself.
In response to Council Member Henderson, Mr.' Paradine confirmed hE!'
received. compensation while serving as President of the organization.
Council Member Henderson thanked Mr. Paradine for providing extensive
information for inclusion of the staff report. Mr. Paradine further explained
FIND, which is a not-for-profit organization, will own the new building, and
confirmed the organization is governed by a Board of Directors; explained
they anticipate moving into a larger facility which will increase utility costs,
despite paying lower rates from liD. Council Member Henderson suggested
the organization request assistance with the costs from the liD Board of
Directors.
In response to Council Member Henderson, Mr. Paradine explained they have
discussed providing services to local communities during an emergency with:
County emergency preparedness staff, and are willing to discuss the option
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further. Council Member Henderson encouraged Mr. Paradine to continue
addressing this matter in the future.
Council Member Kirk echoed the comment made by Council Member
Henderson regarding the information provided for the staff report; stated
rental costs will be reduced with the building of a new facility; noted
neighboring cities have tied their funding to the organization's ability to
obtain a certificate of occupancy and questioned if they would have a
problem with the City of La Quinta doing the same. Mr. Paradine replied that
it would not be a problem. Council Member Kirk asked if the organization
would be coming back for additional funding if construction or other costs
increase, to which Mr. Paradine responded. "No."
In response to Mayor Adolph, Mr. Paradine explained the facility in Cathedral
City will close, and that they are currently determining if the facility can be
utilized in a small capacity, such as an interim program. They utilize five
vehicles to collect donated items from various markets, and receive
donations from local farmers. He explained capacity and logistics are
important factors when distributing food in the geographic area, and stated
they are working to improve and expand a distribution point in the area.
In response to Council Member Henderson, City Attorney Jenson explained
the California Constitution has a limitation of making commitments for future
allocation of funds and stated the funding is subject to future City Council's
approval. Council Member Henderson stated the City Council approved
similar funding for California State University San Bernardino.
Council Member Osborne stated a number of years ago he worked with a
local church that received food from FIND and gave food to 100 persons per
week; and stated the organization provides a great program and is a benefit
to the Valley.
Council Member Sniff stated he is unsure the City Council has received as
complete a picture as they might want; stated the organization may have
more than 11 paid employees in the new facility and questioned who is
paying the employees; conveyed his interest in knowing what the President
and other officers receive on an annual basis; conveyed concern of multi-
year financing as there is no legal or legitimate way to bind the future City
Council to a certain amount per year up to a final total.
City Attorney Jenson stated each year is subject to the City Council
approving the appropriation. City Manager Genovese explained the
University appropriation was set up as aself-restricted reserve account with
the money set aside and distributed over four years, and it did not come out
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of the operating budget. There must be agreement to appropriate the funds
each year, but we actually reserve the funds so that it is not counted against
other appropriations of subsequent years.
Council Member Sniff asked if the City experiences a financially difficult
year, would the funds still be set aside. City Manager Genovese stated any
self-restricted funds that are set aside can be touched by future City
Councils.
Council Member Sniff conveyed dislike for binding future City Council to
obligations; stated there could be significant shortfalls in the future; and
conveyed concern about making very large commitments to reserve funds.
Mayor Adolph conveyed concern about the City of Indio not being listed as a
sponsor with the facility being located there. Mr. Paradine explained a
request was placed before the City of Indio, and they responded by providing
forgiveness with infrastructure costs for the new facility.
MOTION - It was moved by Council Members Kirk/Henderson to approve an
appropriation of S250,000 from the Undesignated General Reserve Fund
Account No. 101-0000-290.00-00 for the FIND Food bank to construct a
warehouse facility in the City of Indio, contingent upon obtaining a
Certificate of Occupancy.
Council Member Kirk stated the uncertain times we are in may be a reason to
say yes and do our part to assure food availability in the Valley.
Council Member Henderson stated the arguments for caution are extremely
noteworthy; this is a challenge for the City, not because we don't have the
money, but because of the hard work it took to accrue the funds; the list for
requests of funding are getting longer, but the City is not in the business to
supply funds; stated she does not want to see any requests for additional
funding, but would like the organization to share the progress of the
program.
Council Member Sniff noted the request explained the funding could be
provided in four years, but it seems the funding would be provided all at
once, which diminishes the City's reserves and interest. He does not
understand why the City Council is being so generous, and cannot support
the motion, but will support a smaller amount.
Council Member Osborne clarified the motion is to provide funding at the
point of obtaining a certificate of occupancy.
J
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Mayor Adolph stated ever since he has been on the City Council, he has
been optimistic and believes the future has been there for La Quinta; has
observed how much the City has grown; is confident in the growth along
with the staff for a successful future; and stated this organization is needed
in our community and in the Coachella Valley, and the City Council needs to
be supportive for the needs of our community.
Motion carried by a vote of 4-1, Council Member Sniff dissenting.
2. CONSIDERATION OF A FIVE-YEAR AGREEMENT BETWEEN THE CITY OF
lA QUINTA AND SUNLlNE TRANSIT AGENCY CONCERNING ADVERTISING.
INSTALLATION. AND MAINTENANCE RELATED TO BUS SHELTERS.
Assistant City Manager-Management Services Plumlee presented the staff
report.
In response to Council Member Henderson, Assistant City Manager-
Management Services Plumlee confirmed there is an indication that Gateway
suggested the price is negotiable.
Michael Oglesby, SunLine Transit Agency, thanked the City Council for their
consideration; stated many calls have been received questioning the
maintenance of the shelters, and explained SunLine maintains all bus shelters
in the Valley.
In response to Council Member Osborne, Mr. Oglesby explained the Sun Line
Board of Directors is reviewing a proposal submitted by the Homelessness
Committee to provide discounted passes; and stated Sun Line is eager to
assist as a public agency.
In response to Mayor Adolph, Mr. Oglesby explained SunLine has not
increased maintenance costs with the cities in the Valley.
Council Member Henderson clarified it never was the intent for the City to
maintain the bus shelters; addressed the discussion of advertising with cut-
outs on shelters on Highway 111; stated she hopes there is no longer a
challenge with Sun Line regarding the more intricate bus. shelters; stated
advertising local events in the cities is redundant; explained the City has one
premiere event per year, and should celebrate it for the entire month of
March; suggested the City display banners along with the Arts Foundation,
as well as in the bus shelters; suggested leaving the door open with
Gateway to continue negotiations for community support.
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April 1, 2008
MOTION - It was moved by Council Members Sniff/Osborne to approve a
five-year agreement with Sun Line Transit Agency concerning advertising,
installation, and maintenance related to bus shelters.
In response to Council Member Henderson, City Manager Genovese
confirmed continued negotiations with Gateway to advertise City events in
the bus shelters in La Quinta is included in the recommendation as Option
No.4.
Motion carried unanimously.
3. CONSIDERATION OF A CONTRACT AMENDMENT TO THE PROFESSIONAL
SERVICES AGREEMENT WITH KATZ OKITSU & ASSOCIATES (KOA) TO
PREPARE THE PLANS. SPECIFICATIONS. AND ENGINEER'S ESTIMATE
(PS&E) TO WIDEN HIGHWAY 111 FROM FOUR TO SIX LANES BETWEEN
WASHINGTON STREET AND THE WESTERN CITY LIMIT, PROJECT NO.
2006-04.
Public Works Director Jonasson presented the staff report.
In response to Council Member Osborne, Public Works Director Jonasson
explained the budgeted amount of $28,000 is based on an enhanced
improvement, with possible improvements to the current rock at the bottom;
staff will bring proposals before the City Council for consideration. Council
Member Osborne stated there is much more work than cleaning it up.
Council Member Kirk stated staff originally brought forward an engineering
professional services agreement; stated he had suggested staff create a
signature gattlway to the City, which may involve a number of things;
explained the existing contract has been modified by weaving in the
landscape architecture.
In response to Council Member Kirk, Public Works Director Jonasson
explained the amendment is more complicated that anticipated as there have
been more negotiations of a reasonable amount to redo the civil plans in
order to provide six lanes.
Council Member Kirk stated he envisioned the gateway concept driving much
of the engineering design, possibly with some design competition. What is
being presented, however, is a traditional scope of work with the engineering
portion completed first, and landscaping and irrigation to follow. He
envisioned getting creative minds together on this wonderful opportunity of
the western entry.
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April 1, 2008
Engineering Consultant Nick Nickerson noted there are physical limitations,
such as putting six lanes in 85 feet of space; explained the medians and
parkways will be limited; stated staff assumed the City Council's desire was
to minimize the impact on the mountains and provide a gateway for the City
of La Quinta. Council Member Kirk stated he appreciates the perspective
and questioned if staff has considered a designer competition. Mr.
Nickerson stated staff has the opportunity to bring a landscape architect on
board now and provide a concept.
Greg Mait, David Volz Design, stated they would like to create a photo
montage of images representing La Quinta, and can submit ideas on how to
incorporate them into the gateway; suggested doing decorative lighting and
something artistic with the rock fall, instead of fencing, explained the use of
treatments to create a natural look; and stated the firm would like to get the
City Council involved in the process.
Council Member Henderson commented on the limited space in that area and
the potential need to disturb the existing City monument. She spoke in
support of being flexible in possible modifications. Public Works Director
Jonasson stated this was discussed previously because the monument is the
focal point as drivers enter the City.
In response to Mayor Adolph, Engineering Consultant Nickerson explained
the City owns 50% of the bridge on Highway 111 and must work with the
City of Indian Wells to install a separate pedestrian bridge adjacent to the
street bridge; and stated staff does not anticipate an adverse effect to the
Cliff House Restaurant.
Council Member Sniff conveyed concern about making this work in a narrow
area and safety for motorists; and stated the ease of transition and.
practicality is most important rather than the artistic representation.
MOTION - It was moved by Council Members Henderson/Sniff to approve a
contract amendment to a Professional Services Agreement with Katz Okitsu
& Associates (KOA) in the amount of $66,740 to prepare the Plans,
Specifications, and Engineer's Estimate (PS&E) to widen Highway 1.11 from
four to six lanes between Washington Street and the western City Limit,
Project No.' 2006-04, and authorize the City Manager to execute the
amendment. Motion carried unanimously.
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April 1, 2008
4. CONSIDERATION OF A RESOLUTION APPROVING REVISED FACILITY USE
POLICIES FOR FEES AND CHARGES AT PUBLIC FACILITIES INCLUDING THE
MUSEUM, LIBRARY, AND SENIOR CENTER.
Community Services Director Hylton presented the staff report.
Council Member Henderson commented on the standardization of fees,
building flexibility for museum admission fee, and providing a way to
accommodate the community. She also commended staff for the revision of
fees.
In response to Council Member Osborne, Community Services Director
Hylton explained the facility fees proposed for the Senior Center add a $185
cleaning fee and increase the facility deposit from $400 to $500, which
increases the fees overall by $285 (for a group of 65 people or more); and
further explained the increase of fees are warranted due to rising costs of
maintenance and janitorial services following events with larger groups.
In response to Council Member Sniff, Community Services Director Hylton
explained the fee for use of the kitchen at the museum is less than the fee
for use of the kitchen at the Senior Center because the museum kitchen is
smaller; and explained the museum is proposed to be open to the public
Wednesday through Sunday and would consider opening seven days a week
as suggested upon review of the demand during the first year of operation.
Mayor Adolph stated staff has proposed a well thought-out program for the
museum, and needs to observe the amount of visitors before considering
opening seven days a week to the public.
Council Member Osborne stated he cannot support the proposed increase of
fees because the amount is pricing out the ability to use the Senior Center by
local residents.
RESOLUTION NO. 2008-021
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA QUINT A,
CALIFORNIA. ADOPTING FEES AND CHARGES FOR PUBLIC FACILITIES
INCLUDING THE MUSEUM, LIBRARY, AND SENIOR CENTER.
It was moved by Council Members Sniff/Henderson to adopt Resolution No.
2008-021 as submitted. Motion carried 4-1, Council Member Osborne
dissenting.
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April 1. 2008
STUDY SESSION
1. DISCUSSION OF CITY OF LA QUINTA MARKETING STRATEGIES FOR
FISCAL YEAR 2008/2009.
Management Analyst Casillas presented the staff report.
Andrea Carter, Kiner Communications, reviewed proposed new strategies as
follows: Travel/Tourism Website; Community Calendar/Things To Do in La
Quinta Brochure; Airport Baggage Claim Ad; Cooperative Advertising with
Village Businesses; Local Television; and Bus Wrap Ad.
In response to Council Member Henderson, Ms. Carter explained the City
would utilize two websites, www.la-quinta.org and www.playlaquinta.com;
each would have its own components for travel/tourism features. Mr. Scott
Kiner, Kiner Communications, encouraged use of the playlaquinta.com
website for promoting travel and tourism, and to promote the City along with
the La Quinta suites when searched on the internet.
In response to Council Member Henderson, Ms. Carter verified a map
showing places to shop and dine could be included on the playlaquinta.com
website, and Mr. Kiner added the map could be interactive.
Council Member Henderson noted the City produces an art brochure and
hiking trails map, and suggested incorporating all points of interest brochures
into a promotional folder for distribution.
In response to Council Member Osborne, Ms. Carter stated it is possible to
receive a substantial amount of revenue from various advertising on the
playlaquinta.com website. Mr. Kiner explained website advertising is very
attractive to merchants in the area.
City Attorney Jenson stated she was not aware of the City establishing a
second website; explained selling advertisements on the website is not
prohibited, however, there are many issues associated with it, such as who
would be monitoring the advertisers. Mr. Kiner explained a'n approval
process would be established in order to place advertisements on the
website.
In response to Council Member Osborne, Ms. Carter confirmed the idea is to
partner with larger companies to promote local businesses.
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April 1, 2008
Council Member Henderson stated her only outstanding issue is the
committee, and suggested staff bring this item back for further discussion.
Council concurred.
The City Council recessed to 7:00 p.m.
7:00 P.M.
PUBLIC COMMENT - None
PRESENTATIONS - None
PUBLIC HEARINGS
1. PUBLIC HEARING TO CONSIDER ADOPTION OF AN ORDINANCE
APPROVING AN AMENDMENT TO DEVELOPMENT AGREEMENT 2003-006
BY AND BETWEEN THE CITY OF LA QUINT A AND CP DEVELOPMENT
LA QUINTA, LLC, TO ALLOW THE DEVELOPER TO TRANSFER THE HOTEL
PROPERTY TO A SINGLE-PURPOSE ENTITY FOR THE PROPERTY LOCATED
AT THE SOUTHEAST CORNER OF MILES AVENUE AND WASHINGTON
STREET. APPLICANT: CITY OF LA QUINTA AND CP DEVELOPMENT. LLC.
Assistant City Manager-Development Services Evans presented the staff
report.
The Mayor declared the PUBLIC HEARING OPEN at 7:04 p.m.
Richard Oliphant, applicant, stated the entire property is held by CP
Development, LLC; and explained the hotel has been separated out of the
development.
There being no additional requests to speak, the Mayor declared the PUBLIC
HEARING CLOSED at 7:05 p.m.
MOTION - It was moved by Council Members Sniff/Henderson to take up
Ordinance No. 455 by title and number only and waive further reading.
Motion carried unanimously.
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April 1, 2008
ORDINANCE NO. 455
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LA QUINTA.
CALIFORNIA. APPROVING AN AMENDMENT TO A DEVELOPMENT
AGREEMENT BY AND BETWEEN THE CITY OF LA QUINTA AND CP
DEVELOPMENT LA QUINTA, LLC.
It was moved by Council Members Sniff/Henderson to introduce Ordinance
No. 455 on first reading. Motion carried with the following vote:
AYES:
Council Members Henderson, Kirk, Osborne, Sniff,
Mayor Adolph
None
None
None
NOES:
ABSTAIN:
ABSENT:
2. PUBLIC HEARING TO CONSIDER ADOPTION OF RESOLUTIONS AND
ORDINANCES FOR: 1) CERTIFICATION OF AN ENVIRONMENTAL IMPACT
REPORT; 2) EDEN ROCK AT PGA WEST SPECIFIC PLAN 83-002.
AMENDMENT NO.6; 3) GENERAL PLAN AMENDMENT 2006-107; 4) ZONE
CHANGE 2006-127; 5) TENTATIVE TRACT MAP 33226; 6) SITE
DEVELOPMENT PERMIT 2006-852; AND 7) DEVELOPMENT AGREEMENT
2006-011. ASSOCIATED WITH DEVELOPMENT OF THE EDEN ROCK
PROJECT INVOLVING PROPERTY LOCATED WITHIN THE PGA WEST
DEVELOPMENT.
Mayor Adolph recused himself from this matter due to a potential conflict of
interest and left the dais.
Planning Director Johnson and Assistant City Manager-Development
Services Evans presented the staff report. Redevelopment Consultant
Spevacek presented a portion of the staff report that relates to the current
proposal and an alternate proposal submitted by the developer.
Council Member Kirk questioned why the resale payment was not adjusted
for inflation in the second proposal. Redevelopment Consultant Spevacek
explained staff presented the proposal as submitted by the developer.
Council Member Kirk questioned why staff did not modify the proposal.
Redevelopment Consultant Spevacek explained it was not an item that was
negotiated, and rather submitted as a presentation. Council Member Kirk
asked for staff's recommendation regarding the fiscal strategy, and Assistant
City Manager-Development Services Evans stated staff is recommending the
development agreement presented to the City Council because it is a better
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April 1, 2008
agreement for the City's long term fiscal conditions; staff is reviewing
projects in the community and does not think the developer's proposal
artificially stimulates rentals; comparable agreements produce the same
general rental on a per unit basis and do not fluctuate much; and staff feels
individuals will make the choice based on their lifestyle.
Council Member Kirk asked how effective similar agreements, such as with
Legacy Villas, have been at achieving the projected fiscal mitigation
amounts. Assistant City Manager-Development Services Evans explained
Legacy Villas has not provided a full year of data yet, and has had some
problem with the rental program because the La Quinta Resort is not
referring as much business as they intended; he stated the annual payment is
revenue that can be budgeted, but if the payment is subject to the market
place, it is more difficult to anticipate the revenue.
Council Member Kirk inquired about the projection of a traffic signal at
Avenue 54 and Jefferson Street. Public Works Director Jonasson explained
the area is close to meeting warrants, and staff anticipates the signal being
installed upon completion of the development.
In response to Council Member Kirk, Public Works Director Jonasson
explained the details in meeting the warrants for the signal by the analysis
conducted by the traffic engineer, and the traffic generated upon completion
of the development. He further explained the difference between morning
and evening traffic affects the southbound to westbound movement,
especially during the winter season.
Council Member Kirk conveyed concern about feeling surrounded by garage
doors in the Village unit's courtyard area. Planning Director Johnson stated
the garage doors will be the focus of the area, and will be softened by
utilizing wood material, landscaping, and a planter at the center of the
courtyard. Council Member Kirk questioned if traffic engineering has
reviewed traffic movement in the courtyard. Public Works Director Jonasson
stated staff believes the plans for traffic mitigation could be made to work
for the area.
Council Member Kirk asked if some of the lots will accommodate personal
swimming pools, and if there will be enough amenities for the residents' use.
Planning Director Johnson stated one-third of the units will accommodate a
small dipping pool; and explained open space provided in this development
falls just below the City's requirements. The developer proposes extensive
walking paths throughout the project, and has identified two additional
active recreational sites for development at a later date.
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April 1, 2008
In response to Council Member Henderson, Planning Director Johnson
identified the two additional open spaces as being on the western end
toward the south, and north of the courtyard units. He further confirmed
most of the courtyard units have a patio area around the outside of the
cluster of units, with the interior courtyard intended for vehicular and
pedestrian use. He stated he was not aware of any limitations on the rental
of the units.
Assistant City Manager-Development Services Evans explained there are
several companies that handle rental of the units at PGA West. He also
confirmed development agreements have evolved in the City, and are not
necessarily identical; the first development agreement was done by a
condition of approval, and then evolved to Centre Point and Legacy Villas,
which the proposed agreement is modeled after.
Council Member Henderson stated when the General Plan was adopted in
1982; it called for the potential need of 3,600 hotel rooms. Assistant City
Manager-Development Services Evans stated the area was zoned as Tourist
Commercial; and stated the land use analysis indicated the need for 3,600
hotel rooms, including the La Quinta Resort, SilverRock Resort, and the
Travertine property.
Council Member Sniff inquired about recreation options accessible to
residents. Planning Director Johnson stated the project has two swimming
pools, walking trails, two recreation areas, and east of the site is the Staten
Golf Course; and stated residents must be a member to have access to the
private golf course to the west of the project. He confirmed there are
additional financial obligations to residents that wish to be fully engaged with
the area; those residing in the project would be considered as PGA West
residents, and will be included in one of the divisions of the Homeowners'
Association of PGA West.
In response to Council Member Osborne, Planning Director Johnson stated
the pad heights have been reduced, as suggested by the Planning
Commission, from two to four feet for aesthetics and a better relationship
between the Village and Manor units. In regard to available parking other
than garages, he stated there will be designated parking within the Villas
along both sides of the street serving the area. He further confirmed
residents will pay dues to the Homeowners' Association toward maintenance
of the roads.
The Mayor Pro Tem declared the PUBLIC HEARING OPEN at 7:54 p.m.
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April 1. 2008
Louis Swart, applicant, gave a presentation of the Eden Rock PGA West
project.
In response to Council Member Henderson, Mr. Swart stated the units
shown in the presentation are the revised count of 264 units.
Jim Vaughn, legal counsel for the applicant, reviewed the resale payment
proposal submitted by the developer.
Council Member Henderson requested Redevelopment Consultant Spevacek
respond to the resale payment proposal reviewed by Mr. Vaughn.
Redevelopment Consultant Spevacek stated the main point is perhaps what
Mr. Vaughn indicated is a misrepresentation of having TOT revenue come in
from the in-lieu fee program. He noted the City is using the same
assumption of 15% of the units being rented, and if some of that TOT is
credited for each unit, that would leave 85% still paying the fee. He does
not understand why the developer feels in the City's situation, that the City
would not get credited with any of the TOT revenue even though 15% of
the units, based on the applicant's assumption, would be rented on an open
market basis.
Mayor Pro Tem Osborne questioned if the 15% is paying over and above the
annual fee. Mr. Vaughn stated under the current annual payment approach,
the City will not receive the $200,000 of TOT a year in addition to the
annual payment because every dollar received in TOT will be credited against
the annual payment obligation; whereas, under the alternative approach the
City will receive both - the resale payment with no credit given no matter
how much TOT is generated, there is no credit against the resale payment;
for every resale the City gets 100 cents on the dollar plus the TOT.
Council Member Henderson asked if the development agreement requires the
annual payment. Redevelopment Consultant Spevacek explained the
development agreement requires the annual payment, and provides that each
individual unit, if they meet a certain threshold of TOT revenue, can have
that revenue off-set their annual payment; it's not all of the units, it's the
individual unit; and if they elect not to rent their unit, they would still make
the annual payment. He confirmed 85% of the residents prefer to make the
annual payment and not rent their units while the other 15% want to rent
their units. He further confirmed if a unit continues to be rented; the TOT is
credited for the following years. City Attorney Jenson clarified the City will
receive the TOT collected because everyone who rents for 30 days or less is
required to pay TOT; the question is whether there would be a credit toward
future payments.
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April 1, 2008
Council Member Kirk noted under the assumption of 15% of the units being
rented for half of the year, more TOT would be generated than would have
been paid in an annual payment; therefore, it's not a double count, we will
just generate more than the annual payment cumulative amount for all of the
units. Mr. Vaughn agreed with Council Member Kirk's comment based for a
particular year; and stated in order for the figures to work it would have to
be the same 15% units; and explained the developer's submittal is a ten-year
proposal, and over the ten years, there's an assumption that a particular
85% never generate TOT, and that's how the annual payment is derived;
stated in the long run, your not going to get ahead, your going to get the
annual payment.
Council Member Kirk stated the developer's assumption works because they
eliminated the credit, but it doesn't work in our proposal because some units
may rent for two weeks and others for twenty-five weeks; therefore, we
may be over-estimating the TOT generation. Redevelopment Consultant
Spevacek stated he does not see it that way.
Council Member Henderson stated she appreciates the developer being
willing to sign the agreement presented to the City Council, but does not
appreciate him arguing about it after agreeing to sign the agreement. She
also does not appreciate the insinuation that SilverRock Resort is in
competition with other hotels.
Council Member Sniff asked when the developer plans to initiate building and
completion of this project. Mr. Swart stated the market conditions will
predict timing for the project.
John Wilkes, 54-657 Southern Hills, stated he is aware of the revised
proposal and complimented Pacific Santa Fe and Jim Brock and the Eden
Rock Alternatives Committee for their efforts; he is not happy with the latest
proposal, but grateful for changes that have been made; stated the dense
and vertical structure is not what residents in the area wish to view at the
proposed location.
Charles Gauthier, 54-799 Riviera, stated the $318,000 levied on Eden Rock
is a tax, and the community provides it's own security, streets, and
landscaping services; the community contributes a considerable portion of
the City's property tax; conveyed opposition to the annual mitigation fees;
and stated it was his perception that town homes and golf courses were
going to be built at SilverRock Resort, not a hotel.
Richard Stenton, 80-706 Spanish Bay, stated the City should have down-
zoned this particular piece of property when the property at Silver Rock
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April 1, 2008
Resort was conveyed to the City; stated short term rentals create more
people and trash; and questioned how the City will monitor the TOT; and
submitted photos of the trash and excessive parking from short term rentals.
Gary Dolenga, 55-457 Oak Hill, stated there seems to be a general
consensus of confusion about the development agreement, and commented
on the administrative burden of auditing and keeping track of the rental
properties for TOT purposes; and noted buying one of these units does not
fully integrate anyone into PGA West.
James Cox, 55-914 Braeburn, displayed pictures showing effects from short-
term rentals including overcrowding, parking of several vehicles, and
excessive trash; stated the annual fees are not justified as they are
inequitable, and the consensus of the residents is to remove the fees from
the agreement; and stated the resale proposal will generate more revenue
and is hoping to receive a compromise from the City.
Howard Culver, 55-501 Southern Hills, referred to Page 19 of the staff
. report regarding the second story Roof Height Study, and questioned grading
of the two rows of Manor units. Planning Director Johnson stated the
grades are essentially consistent. Mr. Culver questioned if the Village homes
are at the same elevation of the second row of Manor homes. Planning
Director Johnson stated the grading is four to eight feet lower. Mr. Culver
stated the second story unit in the Village units would not be able to see
over the second story homes, which was confirmed by Planning Director
Johnson.
Ted Winnowski, 81-325 Legends Way, stated he has resided in three
different locations in PGA West, and the fact that this project abuts other
communities in the area will vitalize the area; stated there must be other
sources of revenue for the City; assessing residents on an annual basis
results in people turning away from purchasing units; what is proposed here
is better than what is proposed for the Mountain View project; stated
amenities of this project will be pleasing with the proposed landscaping; and
stated the City will like the softness of the approach from this project.
Henry Ritz, 54-575 Shoal Creek, stated he has not participated in this
process through the groups at PGA West; the changes proposed by the
developer have made this a very palatable project for this community; he has
a problem taxing citizens of the City at a greater rate than other citizens;
suggested considering something other than additional revenue, such as the
complaints from residents questioning why they are paying more taxes than
the Fairways residents; stated if the City Council agrees to build the project
on sale, at least that would be an easier sale for the developer.
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April 1, 2008
Richard Zeilenga, legal counsel representing the applicant, rebutted by
addressing the common ground between the neighbors and applicant; stated
a staff member suggested meeting with the neighbors and make them happy
and they have made a great effort to accommodate the neighbors; stated the
developer is willing to sign the proposed development agreement or the
agreement reflecting the resale; in light of all discussions regarding density,
the developer has requested to collect the tax at the resale of the unit,
instead of an annual payment; addressed Mr. Wilkes' comments regarding
density by stating the developer has done what they can, which includes
reducing the density by 56 units; he also addressed Mr. Ritz's comment
regarding taxation of some residents with no greater benefits.
Council Member Henderson stated a third alternative would be to eliminate
the credit. Mr. Zeilenga stated that would kill the project.
Council Member Sniff requested a definition of resale in terms of time. Mr.
Zeilenga stated in good market times, resale would be in three to five years
on average, and in a market that is not so good, it would be five to seven
years. Council Member Sniff noted it is all contingent upon when the
development gets underway. Mr. Zeilenga pointed out if some projects are
burdened more than others; they may not get started as soon as others
when the market turns.
There being no additional requests to speak, the Mayor Pro Tem declared the
PUBLIC HEARING CLOSED at 9:32 p.m.
Council Member Henderson stated similar projects have a development
agreement that include an in-lieu fee, and asked if there is some basic
understanding between the developer and investors to obtain financing; and
noted some have gone through some banking issues and have been able to
work them out.
City Attorney Jenson confirmed a similar process was completed with Puerta
Azul where certain rental restrictions were agreed upon and had posed
financing obstacles for individual units; probably the best one recently is the
agreement with Legacy Homes that has consistently produced revenues; and
stated in regard to re-sales, there are many issues that happen with unit
transfers that are very difficult to track.
Council Member Henderson noted this will not be the only project in the City
with a burden, and it's not the practice of the City to impose burdens on
properties. She inquired about the accounting procedure for collecting these
fees, and Assistant City Manager-Development Services Evans noted it is
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April 1, 2008
explained on Page 235 of the agreement; and he explained the development
of a monitoring program.
Council Member Kirk commended the applicant and Jim Brock for all their
hard work on this project, and for Mr. Brock's efforts on behalf of the
community; stated the developer has done all the things to proceed through
the process and commended him with gaining the support of the neighbors;
stated the applicant had a high bar to jump over, as when the developer
reduced the density, they didn't have the density to begin with; stated one
day we may see ourselves as being short-sighted because this would be a
great hotel site; stated the City was counting on hotel revenue from this site,
and he is personally opposed to the TOT credit; suggested achieving the
same level of fiscal mitigation by other methods, by a combination of an
up-front fee and a smaller annual mitigation fee, and the transfer fee, or
taxes; supports the residents concern about short-term rentals; not
convinced a traffic signal is warranted at Jefferson Street and Avenue 54;
suggested having the developer post bonds and the City return the bond if
not warranted in two to three years; and voiced support for the project as
proposed by the developer.
Council Member Henderson apologized for her earlier impatience regarding
comments made about the SilverRock project; commented on there still
being issues with the agreement regarding the fee; stated she is not prepared
to totally support the escrow title change; and suggested the possibility of
approving everything except the development agreement and having it come
back.
City Attorney Jenson recommended any approval of the project be
contingent upon approval of the development agreement. She explained the
City Council can direct staff to remove the credit on the annual fee to take
away the incentive on the short-term rental and still approve the agreement;
having a combination of resale and credit is more complicated and the
development agreement would need to come back.
Council Member Henderson asked if it is as easy to line out the credit but
allow Option 1 and 2 to get to a point, and City Attorney Jenson stated it is
not possible.
Council Member Kirk asked if the applicant would like to receive full
entitlement tonight, could the City Council approve the development
agreement, line out the credit, but have the development agreement come
back for potential amendment. City Attorney Jenson stated an amendment
can be brought back at any time; and conveyed concern of taking action on
the underlying land uses without a development agreement; suggested if the
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April 1, 2008
City Council wishes to take action tonight, that something be added to each
resolution stating it shall not go into effect until the development agreement
is approved and signed.
Council Member Sniff thanked the audience for their courtesy and
involvement; suggested making changes to line out the annual credit fee;
requested this item be continued to the next meeting to allow staff and the
developer time to mitigate the resale issue.
Mayor Pro Tem Osborne thanked everyone for attending the meeting and the
developer for working with the neighbors; conveyed support to eliminate the
annual fee and credit, work on a resale number to adjust and meet our own
financial needs as the City is doing very well because of staff's efforts;
stated a development agreement that is fair for both the City and PGA West
has not been established at this point; and suggested continuing this matter
to the next meeting.
MOTION - It was moved by Council Members Sniff/Kirk to continue the
public hearing to April 15, 2008.
City Attorney Jenson clarified that direction was given by Mayor Pro Tem
Osborne to eliminate the annual fee, and was not mentioned by the other
Council Members.. Mayor Pro Tem Osborne asked if the development can be
done with no credit or annual fee, and with only the initial purchase and
resale fees. City Attorney Jenson stated the fee would need to be much
higher.
Assistant City Manager-Development Services Evans stated it is staff's
understanding that the City Council is directing staff to discuss a mutual
payment program that could include a smaller payment that could be annual,
and has been given direction to fix a problem.
City Manager Genovese clarified that what has been said is "try to equalize
close to what the mitigation fee is that the City originally imposed."
Council Member Kirk stated he would like to see the agreement financial
neutral; and requested the traffic mitigation be addressed as well.
Motion carried by a vote of 4-0-1 with Mayor Adolph absent.
Council concurred to continue the remaining items on the agenda to the next
meeting.
City Council Minutes
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April 1, 2008
REPORTS AND INFORMATIONAL ITEMS
All reports were noted and filed.
DEPARTMENT REPORTS
All items were continued.
MAYOR AND COUNCIL MEMBERS' ITEMS
1. DISCUSSION REGARDING FRED WARING DRIVE IMPROVEMENTS.
ADJOURNMENT
There being no further business, it was moved by Council Members
Sniff/Henderson to adjourn. Motion carried unanimously.
,z::;U'd
VERONICA J. TECINO, City Clerk
City of La Qui a, California