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2009 12 01 CC MinutesLA QUINTA CITY COUNCIL MINUTES DECEMBER 1, 2009 -- - ~City~ Clerk Montecino announced that tfie regular meeting of the La Quinta City Council would not be called to order until the hour of 4:00 p.m. due to lack of quorum. Mayor Adolph called the meeting to order at 4:00 p.m. and led the audience in the Pledge of Allegiance. PRESENT: Council Members Evans, Franklin, Henderson, Sniff, Mayor Adolph ABSENT: None PUBLIC COMMENT Karen Lundie, 53-485 Avenida Juarez, thanked Council Members Henderson and Sniff for considering a discussion of the noise ordinance at a future meeting; presented a videotape as evidence of noise nuisance from a neighbor; stated the requirement of completing abarking-dog petition is not included in the Municipal Code; and requested staff enforce the Municipal Code regarding noise nuisances for dog barking. CLOSED SESSION -None CONFIRMATION OF AGENDA -Confirmed Mayor Adolph requested Consent Item No. 5 be pulled for separate discussion. ANNOUNCEMENTS -None PRESENTATIONS -None WRITTEN COMMUNICATIONS -None APPROVAL OF MINUTES MOTION - It was moved by Council Members Sniff/Franklin to approve the City Council Minutes of November 17, 2009, as submitted. Motion carried unanimously. City Council Minutes 2 December 1, 2009 CONSENT CALENDAR 1. APPROVAL OF DEMAND REGISTER DATED DECEMBER 1, 2009. 2. DENIAL OF CLAIMS FOR DAMAGES FILED BY NAFIZA SALLOUM -DATES OF LOSS: AUGUST 24 AND OCTOBER 19, 2009. 3. APPROVAL OF SECOND READING AND ADOPTION OF ORDINANCE NO. 474, ADDING CHAPTER 12.69 TO TITLE 12 OF THE LA QUINTA MUNICIPAL CODE, PERTAINING TO REGULATIONS FOR GOLF CARTS ON CERTAIN CITY STREETS. 4. APPROVAL OF SECOND READING AND ADOPTION OF ORDINANCE NO. 475, AMENDING CHAPTER 2.60, SECTION 2.60.20, RELATING TO THE CITY OF LA QUINTA CONFLICT OF INTEREST CODE. 5. ADOPTION OF A RESOLUTION TO EXTEND THE TIME FOR COMPLETION OF THE OFFSITE AND ONSITE IMPROVEMENTS FOR TRACT MAP 29436, HIDDEN CANYON, TRANS WEST HOUSING, INC. (See separate action below.) 6. APPROVAL OF CONTRACT CHANGE ORDER NO. 4 FOR HIGHWAY 111 PHASE III STREET IMPROVEMENTS (POINT HAPPY WAY TO WEST CITY LIMITS), PROJECT NO. 2006-04. MOTION - It was moved by Council Members Sniff/Evans to approve the Consent Calendar as recommended and amended with the exception of Item No. 5. Motion carried unanimously. Item No. 5: Reg Santano, 77878 Little Eagle Court, addressed the request for a time extension and requested this matter be placed on the agenda in January 2010 to review a time schedule for the improvements. Council Member Henderson .suggested this item be brought back for discussion at the first meeting in February 2010. Mayor Adolph stated when the last extension was approved; he commented that the developer needed to complete the improvements or the City would go after the bond; and asked if Trans West Housing would be able to complete the improvements within the proposed timeframe. City Council Minutes 3 December 1, 2009 Marti Butler, representing Trans West Housing Inc., explained the extension is to accommodate the City's request for construction to be postponed until after the Bob Hope Classic event and not due to the lack of funding. In response to Council Member Henderson, City Manager Genovese confirmed the matter can be continued to the first meeting in February 2010, if it is the City Council's desire to do so. City Attorney Jenson stated a continuance without changing the deadline will leave the subdivision improvement agreement in default; and suggested approving a time extension on the condition that the developer provide a status report at the February City Council meeting. Mayor Adolph conveyed a desire to give the developer time to complete the improvements after the Bob Hope Classic. Council Member Evans spoke in support approving the time extension to a timeframe between March and November 2010. Council Member Sniff suggested atwo-week continuance to enable staff to define the timeframe. Public Works Director Jonasson suggested extending the time for completion to the first meeting in March 2010 and the improvements may be able to be approved for acceptance at that time; and stated the developer should be able to complete the improvements by that date if they begin work right after the Bob Hope Classic event. RESOLUTION NO. 2009-100 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA QUINTA, CALIFORNIA, GRANTING AN EXTENSION OF TIME FOR THE COMPLETION OF THE OFFSITE AND ONSITE IMPROVEMENTS AS SPECIFIED IN THE APPROVED SUBDIVISION IMPROVEMENT AGREEMENT TO MARCH 2, 2010, FOR TRACT MAP 29436, HIDDEN CANYON. It was moved by Council Members Sniff/Henderson to adopt Resolution No. 2009-100 as amended. Motion carried unanimously. City Council Minutes 4 December 1, 2009 BUSINESS SESSION 1. CONSIDERATION OF A FINANCE AGREEMENT BETWEEN THE CITY OF LA QUINTA AND THE LA QUINTA REDEVELOPMENT AGENCY RELATING TO THE SUPPLEMENTAL EDUCATIONAL REVENUE AUGMENTATION FUND (SERAF) PAYMENT MANDATED PURSUANT TO STATE OF CALIFORNIA ASSEMBLY BILL 26 AND AN APPROPRIATION OF FUNDS. Finance Director Falconer presented the staff report. In response to Council Member Franklin, Finance Director Falconer explained the proposal is to make the payment from Redevelopment Project Area No. 1 Debt Service Fund to the Capital Projects Fund; if the 510 million had been transferred, the City would have funded all capital projects at approximately S46 million with approximately 54 million left over; confirmed the transfer has not been made to the Capital Projects No. 1 Fund, and further explained the Capital Projects Project Area No. 1 Fund balance will be a negative 52 million without the transfer. He further explained the infrastructure project at SilverRock Resort is budgeted at approximately 525 million and taking the 53.5 million reduces it, and based on the current bidding environment, it would generate some savings. Council Member Franklin inquired about the debt service fund balance. Finance Director Falconer stated the fund balance will be 53.1 million with the transfer and approximately 513 million without the transfer. Council Member Sniff commented on the Redevelopment Agency becoming a cash cow to the State, and asked when the agreement was made and how it was initiated. City Attorney Jenson explained there is no agreement; it was implemented by legislation approved in July 2009; and explained a lawsuit has been filed by the California Redevelopment Agency (CRA) and a ruling will be made by the State Court. Council Member Henderson stated the League of California Cities has the title prepared for an initiative to prohibit the State from taking General Fund, Redevelopment Agency, or transportation funds. Mayor Adolph asked if the funds will be refunded if the court rules against the State and prohibits them from enacting the payment after May 10, 2010. City Attorney Jenson stated she anticipates the CRA will do everything in their power to get the funds returned. In response to Council Member Sniff, City. Attorney Jenson stated the amount is based on a formula in the legislation wherein 51.7 billion was divided into two equal amounts; for the first of the two amounts the State City Council Minutes 5 December 1, 2009 assessed all agencies based on their net tax increment, and the second of the two amounts was based on the total tax increment received by each agency; and stated the County Auditor reported to the State Director of Finance who then issued the charts anti edicts based on the two components used in the formula. In response to Mayor Adolph, Finance Director Falconer stated the County Redevelopment Agency was hit with the highest amount in Riverside County, followed by the City of Palm Desert and then by the City of La Quinta. Council Member Sniff asked where this right exists in the State Constitution and if this matter is currently in the courts. City Attorney Jenson stated the payment is enacted by statute from the legit>lation and not from the State Constitution. Council Member Henderson explained a lawsuit has been filed by the CRA with the League of California Cities trying to manage an initiative for the November 201 1 ballot. In response to Council Member Sniff, Finance Director Falconer referred to the last page of the staff report for an explanation if the City does not participate in the mandated payment; stated from a budget standpoint, the reimbursements from the Redevelopment Agency to the General Fund would be reduced by 25%, which would be an approximate 5350,000 shortfall to the General Fund. Council Member Sniff stated the lawsuit filed by the CRA seems to be our only recourse. Council Member Henderson explained polls conducted by the League of California Cities have indicated public support for the proposed initiative, but much campaigning will be needed to explain it in detail to the voters. In response to Mayor Adolph, Finance; Director Falconer stated Redevelopment Agency funds committed to the SilverRock Project could be uncommitted and used for this payment; explained the loan is between the Redevelopment Agency and the City and is a long-term note with an interest rate of 7%; stated the purpose of the loan is to pay the supplemental ERAF payment obligation; and staff is confident that the strength of the Redevelopment Agency, especially Project Area No. 1, will be able to repay the loan. He explained the total General Fund fund balance is approximately S93 million of which approximately S42 million is more or less liquid in three reserve accounts -Emergency Reserves, Cash Flow Reserves, and Other Operation Reserves; and stated the Other Operation Reserves balance is approximately S18 million from which the S10 million appropriation would be taken from. City Council Minutes 6 December 1, 2009 Council Member Franklin requested clarification on the fund balance for Redevelopment Agency funds and asked if committed funds must remain committed to the project. Finance Director Falconer explained the amount of committed funds in Project Area No. 1 is approximately 546 million; and stated funds for any capital improvement projects that have not been contracted can be used at the Agency's discretion for other projects or may be uncommitted. Council Member Franklin asked if the same applied to the debt service account. Finance Director Falconer explained the debt service account is different because of the pass-through agreement payments; and the Agency has little flexibility with that account. Council Member Franklin asked how the City will justify the loan from the general account. Finance Director Falconer explained the Redevelopment Agency has already committed the funds by past actions, and the State cannot tell the Agency how to provide the funds. City Attorney Jenson stated there is a limitation from the State for restricting the use of housing funds. Council Member Franklin stated as long as the funds are committed we are okay. City Attorney Jenson explained it is a matter of discretion of the Agency Board. Finarice Director Falconer explained that when the Capital Improvement Program (CIP) is adopted each year, the funds are carried over at the end of the fiscal year if the project is not completed; and stated staff can make adjustments if the Agency wants to increase or decrease funds for a project. Council Member Sniff noted the City makes the payment regardless of which account it comes from; and asked if the 510 million transfer would in any way affect the function of the Redevelopment Agency or the City. Finance Director Falconer confirmed it will impact both agencies; and stated staff would prefer not having to advance 510 million from the General Fund to the Redevelopment Agency but we are required to make the payment. Council Member Sniff commented on the possibility of this happening again before legislation is voted on by the public. Council Member Henderson noted next year's State budget is already 525 billion over budget and confirmed that the State could come back again in next year's budget and ask for additional funding from the Redevelopment Agency. City Council Minutes 7 December 1, 2009 MOTION - It was moved by Council Members Henderson/Franklin to approve a Finance Agreement between the City of La Quinta and the La Quinta Redevelopment Agency relating to the Supplemental Educational Revenue Augmentation Fund (SERAF) payment mandated pursuant to State of California Assembly Bill 26 of S10 million and an appropriation of 523,560,481 to make the payment. Motion carried unanimously. STUDY SESSION -None REPORTS AND INFORMATIONAL ITEMS Palm Springs Desert Resort Communities & Visitors Authority -Council Member Evans reported the Authority has split the JPA and the HBIC; the HBIC is working on bylaws and each agency will be represented by a Chair anal Vice Chair. CVAG Homelessness Committee -Council Member Franklin reported the ribbon cutting for the Roy Wilson Desert Resource Center will be held December 16, 2009 at 1 :00 p.m. and an open house will be held sometirne in February or March 2010; a contract with Jewish Family Services has been finalized for administrative services; Riverside County came up with another 5750,000 to fund operating costs; the Desert Resource Center has signed a lease agreement with the County Community Health Agency for a public health nurse for aone-year total budget of 5175,000, with 5134,000 for the salary and benefits; and stated the Committee discussed looking for other options. She further reported Columbia University took on the project of reviewing operating costs and funding options for the Desert Resource Center. Human Community Resources Committee -Council Member Franklin reported the Committee is promoting the upcoming Census. IID Energy Consumers' Advisory Committee -Council Member Franklin reported the Imperial Irrigation District (IID) Board held a special meeting November 30, 2009 to discuss layoffs; and 39 currently filled positions and 16 vacant positions for a total of 55 positions were eliminated. She stated the Committee discussed a proposed memorandum of understanding with SCAFA regarding a lease agreement for property owned by IID and the Los Angeles Department of Water and Power for geothermal resource drilling; and stated the Committee voted almost unanimously not to recommend the budget as presented because of receiving information piecemeal; and expressed the Committee's discontent on the lack of information exchange. She asked staff if there is a rebate option from IID for installing solar power at the new fire station. Building & Safety Director Hartung stated staff will apply for the rebate but no funds are available from this fiscal year. City Council Minutes 8 December 1 , 2009 All other reports were noted and filed. DEPARTMENT REPORTS -None MAYOR AND COUNCIL MEMBERS' ITEMS Council Member Evans requested a study session be scheduled to discuss the sign ordinance and recent amendments made to the Municipal Code regarding signs. City Attorney Jenson asked if the focus would be changes made regarding signs in medians or a bigger picture. Council Member Sniff stated the discussion should address all signs, including political signs. Mayor Adolph thanked the City Manager for processing the donations to Martha's Village & Kitchen and the Coachella Valley Rescue Mission. Council Member Franklin commented on the possibility of making another donation at Christmas. Mayor Adolph suggested addressing that at the December 15 meeting. Mayor Adolph commented on the Christmas tree lighting ceremony at the La Quinta Resort being well attended but the parking accommodations being inadequate. Council Member Sniff suggested a review of Senate Bill 375, proposed legislation regarding global warming, and a cap in trade to discuss the ramifications to the City on a routine basis. Council Member Henderson announced Coachella Valley Association of Governments (CVAG) is providing a workshop December 10 on Senate Bill 375 and asked if this matter has been discussed with the general public at any of the meetings for the recycling programs. Assistant City Manager- Management Services Plumlee stated CVAG has addressed Senate Bill 375, green house gas emissions, and a baseline study on the agendas; and there are numerous opportunities for training. In response to Council Member Sniff, Assistant City Manager-Management Services Plumlee stated CVAG has presented some material on the cap in trade legislation. City Manager Genovese stated staff can report back to the City Council following the workshop given by CVAG. Council recessed to the Redevelopment Agency meeting. Council reconvened and recessed to and until 7:00 P.M. City Council Minutes 9 December 1, 2009 7'00 P_M_ PUBLIC COMMENT -None PRESENTATIONS -None PUBLIC HEARINGS 1. PUBLIC HEARING TO CONSIDER ADOPTION OF A RESOLUTION ESTABLISHING A GOLF CART PERMIT FEE FOR THE GOLF CART PLAN. Assistant City Manager-Development Services Evans presented the staff report. Council Member Sniff asked if applicants would need to make an appointment to obtain a permit. Assistant City Manager-Development Services Evans explained the inspection process will be conducted by appointment at the owner's residence. Mayor Adolph asked if an information sheet will be provided for those interested in obtaining a permit. Assistant City Manager-Development Services Evans stated staff has prepared a facts sheet for the public and for owners to have as a reference in their golf cart. Council Member Sniff asked if staff is going to take a photo of the vehicle upon issuance of a permit. Assistant City Manager-Development Services Evans stated staff has not discussed taking photos but it might be a good idea to verify if any modifications are made that would make it invalid. Council Member Henderson suggested photos be taken to deter the transfer of permit stickers. In response to Mayor Adolph, Assistant City Manager-Development Services Evans stated applicants will be issued a numbered sticker for their golf cart. The Mayor declared the PUBLIC HEARING OPEN at 7:05 p.m. There being no requests to speak, the Mayor declared the PUBLIC HEARING CLOSED at 7:05 p.m. City Council Minutes 10 December 1, 2009 RESOLUTION NO. 2009-101 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA QUINTA, CALIFORNIA, ESTABLISHING A GOLF CART PERMIT FEE. It was moved by Council Members Sniff/Evans to adopt Resolution No. 2009-101 as submitted. Motion carried unanimously. ADJOURNMENT There being no further business, it was moved by Council Members Franklin/Evans to adjourn. Motion carried unanimously. submitted, VERONICA J. N1fbTVTECINO, City Clerk City of La Quinta, California