2011 03 15 CC MinutesLA QUINTA CITY COUNCIL
MINUTES
MARCH 15. 2011
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: Council Members Evans, Franklin, Henderson, Sniff, Mayor Adolph
ABSENT: None
PUBLIC COMMENT — None
CLOSED SESSION
1. CONFERENCE WITH THE AGENCY'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
City Manager Genovese stated there is a correction of the location for the
Closed Session title where La Quir*.ta Centre Drive should state Auto Centre
Drive.
The Council recessed to the Redevelopment Agency and to Closed Session to and
until the hour of 4:00 p.m.
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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.
City Council Minutes 2 MARCH 15, 2011
PUBLIC COMMENT
Michael Reinhardt, Executive Manager, Torre Nissan, introduced George Velarde,
Dealer Principle, Torre Nissan; and gave a presentation of the remodeling and
redesign of Torre Nissan, along with Kathy Gleason, Nissan North America West
Region Area Manager, Philip Bum, Nissan North America Riverside Dealer
Operations Manager.
Mayor Adolph thanked the representatives for the presentation and Mr. Velarde for
the partnership and being a part of the community.
In response to Council Member Franklin, Mr. Reinhardt explained the commercial
vehicle depicted in the brochure is the first commercial vehicle offered to the
public; and further explained a task force has been compiled due to the recent
disaster in Japan to address any issues; and the first shipment of vehicles are due
to be dropped at the La Quinta location in 40 days.
Council Member Evans asked about the number of dealerships to be converted and
how the funding was provided. Mr. Reinhardt stated 62% of the 1 ,100 dealerships
nationwide have been converted; and further explained other cities in conjunction
with the dealerships have contributed funding for the conversions.
Council Member Henderson stated there is emphasis on the commonality of the
design of the exterior, and the right of the dealership to be called 'end ready'; there
are some interior components necessary for the newer vehicles; any emphasis of
being environmental friendly or are there any LEEDS components included. Mr.
Reinhardt explained there will be charging stations at the dealership and available
to the public free of charge.
Council Member Henderson stated she heard there were seven to nine plants shut
down in Japan.
Kathy Gleason, stated there were seven to nine plants affected, anticipates losing
only less than 2,500 vehicles, and getting the vehicles from the plant to the port is
the issue. Council Member Henderson asked where other plants are located. Mrs.
Gleason stated there are other plants located in Smyrna, Canton, and Mexico.
Council Member Sniff stated he is pleased that Nissan is here to demonstrate
potential negotiations; wishes good luck to the dealership; and would like them to
continue to remain in and be a contributor to the City.
City Council Minutes 3 MARCH 15, 2011
Ed Alderson, representing the Coachella Valley Rescue Mission, thanked the City
Council for the Community Services Grant awarded; stated the construction of the
new facility is underway, and will be celebrating the Thanksgiving holiday in the
new facility.
CONFIRMATION OF AGENDA
Council Member Sniff requested Consent Calendar Item Nos. 9, 11, 17 and 19 be
pulled for separate consideration.
ANNOUNCEMENTS — None
PRESENTATIONS
1. PRESENTATION BY THE COUNTY OF RIVERSIDE REGARDING THE
PROPOSED COUNTY DETENTION FACILITY IN THE WHITEWATER VICINITY
Council Member Henderson stated she has observed a change of the
physical location and the distance to the freeway. Supervisor Benoit stated
the facility has not been changed to this particular site or showing it closer
to the freeway.
Council Member Evans asked if it will take some time to staff the facility and
find funding. Supervisor Benoit stated finding funding to pay for 750
employees and 500 deputies will be difficult. Council Member Evans
conveyed her appreciation of the presentation made to the Palm Springs
Desert Resort Communities Convention & Visitors Authority (CVA), and the
Task Force collaboration efforts.
Council Member Evans asked if the Task Force has been established.
Supervisor Benoit stated that both the City of Palm Springs and the County
have compiled a list of suggested members and need to appoint 14
members; will hire a consultant to compile statistical data; and hoping to
come up with a rational, objective evaluation.
Council Member Sniff thanked Supervisor Benoit for making the presentation;
stated he has an interest in this matter; it is imperative this project moves
forward to provide incarceration as needed in light of the option to early
release.
City Council Minutes 4 MARCH 15, 2011
Council Member Evans stated everyone supports the need, it's the location
that is the concern of those that are opposed to the project.
Council Member Sniff stated there must be a financial consideration for not
only staffing but maintaining the facility.
Council Member Franklin thanked Supervisor Benoit for the presentation
which was informational and provided understanding of the project.
Mayor Adolph asked if there were problems with escapees at the Larson
Justice Center. Supervisor Benoit confirmed and stated the Larson Justice
Center is an older facility that is not as secured as the newer facility. Chief
Deputy Stafford explained the incident occurred while transporting the
inmate; and transferring inmates from one facility to another opens for the
potential for a security breach. Supervisor Benoit pointed out the differences
between the old and new facilities makes a difference with the security and
safety.
Mayor Adolph stated he does not believe the proposed location will not
directly affect the City of La Quinta; conveyed his mix emotions with
supporting the neighboring cities due to the possibility of misinformation.
Supervisor Benoit stated the logic is not sustainable; and stated the County
is pursuing a non - biased evaluation.
WRITTEN COMMUNICATIONS — None
APPROVAL OF MINUTES
MOTION — It was moved
Council Minutes of March 1
1, Mayor Adolph abstaining.
CONSENT CALENDAR
by Council Members Sniff /Evans to approve the City
, 2011, as submitted. Motion carried by a vote of 4 -0-
1. APPROVAL OF DEMAND REGISTER DATED MARCH 15. 2011
2. RECEIVE AND FILE TREASURER'S REPORT FOR JANUARY 31, 2011
3. RECEIVE AND FILE REVENUE AND EXPENDITURE REPORT FOR JANUARY
31, 2011
City Council Minutes 5 MARCH 15, 2011
4. APPROVAL OF FISCAL YEAR 2011 -2012 CITY COUNCIL GOALS
5. APPROVAL OF A REQUEST BY THE COUNTY OF RIVERSIDE PLANNING
COMMISSION TO UTILIZE THE COUNCIL CHAMBERS FOR PUBLIC
HEARINGS ON APRIL 20, MAY 25, AND JULY 6, 2011 FROM 9:30 A.M.
TO 5:00 P.M.
6. APPROVAL TO EXCUSE PLANNING COMMISSIONER MARK WEBER'S
ABSENCE FROM THE FEBRUARY 8, 2011 PLANNING COMMISSION
MEETING
7. AUTHORIZATION FOR OVERNIGHT TRAVEL FOR FOUR MEMBERS OF THE
HISTORIC PRESERVATION COMMISSION AND PLANNING MANAGER TO
ATTEND THE 36 ANNUAL CALIFORNIA PRESERVATION CONFERENCE IN
SANTA MONICA, CA ON MAY 15 -18, 2011
8. APPROVAL OF A GRANT APPLICATION TO THE CALIFORNIA DEPARTMENT
OF RESOURCES RECYCLING AND RECOVERY (CALRECYCLE) FOR A
CURBSIDE HOUSEHOLD HAZARDOUS WASTE PROGRAM
9. ADOPTION OF A RESOLUTION SETTING FORTH THE RECORDS RETENTION
SCHEDULE FOR DEPARTMENTS AND OFFICES OF THE CITY AND
APPROVING DESTRUCTION OF RECORDS IN ACCORDANCE HEREWITH
(RESOLUTION NO. 2011 -014)
10. ADOPTION OF A RESOLUTION IN SUPPORT OF THE COACHELLA VALLEY
ENTERPRISE ZONE (RESOLUTION NO. 2011 -015)
11. APPROVAL OF THE RATIFICATION OF ACTIONS TAKEN TO REPAY THE
REDEVELOPMENT AGENCY LOANS
12. TRANSMITTAL OF SINGLE AUDIT REPORT ON FEDERAL ASSISTANCE
PROGRAM AS OF JUNE 30, 2010
13. ADOPTION OF A RESOLUTION AMENDING THE INVESTMENT POLICY OF
THE CITY OF LA QUINTA FOR FISCAL YEAR 2010 -2011 (RESOLUTION NO.
2011 -016)
14. APPROVAL TO AWARD A CONTRACT TO CONSTRUCT THE AVENUE 50
WIDENING IMPROVEMENTS, PROJECT NO. 2010 -14
15. APPROVAL OF A PROFESSIONAL SERVICES AGREEMENT WITH TY LIN
INTERNATIONAL TO PROVIDE CONSTRUCTION MANAGEMENT SERVICES
FOR THE ADAMS STREET BRIDGE, PROJECT NO. 2006 -06
City Council Minutes 6 MARCH 15, 2011
16. APPROVAL OF PURCHASE AND SALE AGREEMENTS AND ADOPTION OF A
RESOLUTION MAKING FINDINGS PURSUANT TO HEALTH AND SAFETY
CODE SECTION 33445 APPROVING THE EXPENDITURE OF AGENCY
FUNDS FOR THE ACQUISITION OF LAND IDENTIFIED AS APNs: 770 -123-
002, 003 AND 004, VIRGINIA EVANS GARBUTT; 770 - 123 -006 AND 010,
NIS YIELD PARTNERS, LP, TED NEWELL; 770 - 124 -002 AND 003, JAMES F.
KELLY; 770 - 124 -009, NISPERO PROP, BOB HILL; AND 770 - 124 -007,
MICHAEL A. FISCHER (RESOLUTION NO. 2011 -17)
17. APPROVAL OF A CONTRACT WITH THE ROSENOW SPEVACEK GROUP
FOR DEVELOPMENT AND IMPLEMENTATION SERVICES FOR THE
WASHINGTON STREET APARTMENTS REHABILITATION PROJECT
18. ADOPTION OF A RESOLUTION MAKING CERTAIN FINDINGS PURSUANT TO
HEALTH AND SAFETY CODE 33445 REGARDING FUNDING OF WELLSITES
PURSUANT TO AN AMENDMENT TO DOMESTIC WATER AND SANITATION
SYSTEM INSTALLATION AND IRRIGATION SERVICE AGREEMENT FOR
SILVERROCK (RESOLUTION NO. 2011 -018)
19. APPROVAL OF A RESOLUTION APPROVING A COST SHARING
AGREEMENT AMONG THE LA QUINTA REDEVELOPMENT AGENCY, THE
CITY OF LA QUINTA, AND THE COACHELLA VALLEY WATER DISTRICT
FOR THE RECONSTRUCTION OF THE COACHELLA CANAL, A REGIONAL
WATER CONVEYANCE SYSTEM, WITHIN THE SILVERROCK PROPERTY
AND MAKING CERTAIN FINDINGS PURSUANT TO HEALTH AND SAFETY
CODE SECTION 33445 WITH RESPECT TO THE AGENCY'S EXPENDITURE
(RESOLUTION NO. 2011 -019)
MOTION — It was moved by Council Members Sniff /Evans to approve the
Consent Calendar as recommended and amended with the exception of Item
Nos. 9, 11, 17 and 19 and with Item Nos. 10, 13, 16, and 18 being
approved by RESOLUTION NOS. 2011 -015 through 2011 -018 respectively.
Motion carried unanimously.
ITEM NO. 9
ADOPTION OF A RESOLUTION SETTING FORTH THE RECORDS RETENTION
SCHEDULE FOR DEPARTMENTS AND OFFICES OF THE CITY AND APPROVING
DESTRUCTION OF RECORDS IN ACCORDANCE HEREWITH
Council Member Sniff asked where the minutes of the City Council meetings are
listed on the Retention Schedule, and where they are housed. City Clerk
Montecino stated the minutes of the City Council meetings are listed on page 22 of
City Council Minutes 7 MARCH 15, 2011
the staff report and are housed in the vault of the City Clerk Department. He
further asked where the audio tapes of the Council meetings are listed on the
Retention Schedule and how long are they kept. City Clerk Montecino could not
answer. The City Council directed staff to bring back a Department Report in
response to the questions.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA QUINTA,
CALIFORNIA, ADOPTING A RECORDS RETENTION SCHEDULE FOR
DEPARTMENTS AND OFFICES OF THE CITY AND APPROVING DESTRUCTION OF
RECORDS IN ACCORDANCE THEREWITH
MOTION — It was moved by Council Members Franklin /Evans to adopt Resolution
No. 2011 -14 as submitted, with a report back explaining the retention of the audio
tapes for the City Council meetings. Motion carried unanimously.
ITEM NO. 11
APPROVAL OF THE RATIFICATION OF ACTIONS TAKEN TO REPAY THE
REDEVELOPMENT AGENCY LOANS
Council Member Sniff conveyed his concern of the verbiage used for the title on
the agenda. Finance Director Falconer explained the verbiage using the word
"Approval" is utilized on the agenda.
MOTION — It was moved by Council Members Franklin /Evans to approve the
ratification of actions taken to repay the Redevelopment Agency Loans. Motion
carried unanimously.
ITEM NO. 17
APPROVAL OF A CONTRACT WITH THE ROSENOW SPEVACEK GROUP (RSG)
FOR DEVELOPMENT AND IMPLEMENTATION SERVICES FOR THE WASHINGTON
STREET APARTMENTS REHABILITATION PROJECT
Council Member Sniff requested additional detail on this item. Assistant City
Manager - Development Services Evans explained RSG will relocate residents while
rebuilding the facility; and as opposed to bringing a third party, it is staff's desire to
utilized RSG because of the established relationship.
Council Member Sniff asked if the project is being funded ahead of time, and how
did staff verify the amount of $1,472,000. Assistant City Manager - Development
Services Evans explained staff took a look at other projects and figures and the
City Council Minutes 8 MARCH 15, 2011
amount is in the ballpark of other projects. Council Member Sniff asked if RSG will
be conducting design work and engineering services. Assistant City Manager -
Development Services Evans stated RSG will help manage the design development,
rural development, relocation plan of tenants, construction management and final
disposition, and subcontract with landscape architects and engineers. Council
Member Sniff asked if this will cover everything. Assistant City Manager -
Development Services Evans stated it will cover everything under construction.
MOTION — It was moved by Council Members Franklin /Evans to approve a contract
with the Rosenow Spevacek Group to develop and implement the Washington
Street Apartments project with minor modifications to be approved by the City
Manager. Motion carried unanimously.
ITEM NO. 19
APPROVAL OF A RESOLUTION APPROVING A COST SHARING AGREEMENT
AMONG THE LA QUINTA REDEVELOPMENT AGENCY, THE CITY OF LA QUINTA,
AND THE COACHELLA VALLEY WATER DISTRICT FOR THE RECONSTRUCTION
OF THE COACHELLA CANAL, A REGIONAL WATER CONVEYANCE SYSTEM,
WITHIN THE SILVERROCK PROPERTY AND MAKING CERTAIN FINDINGS
PURSUANT TO HEALTH AND SAFETY CODE SECTION 33445 WITH RESPECT TO
THE AGENCY'S EXPENDITURE
Council Member Sniff stated he feels this matter is being rushed; conveyed concern
of any omission of responsibility; asked why the City could potentially be spending
so much money; what is CVWD expending and what is the difference to the City
of La Quinta.
City Manager Genovese stated the decision to expend the $11,000,000 or any
amount of funds will be brought before the City Council at a later date for approval;
and explained the only funds expended under this agreement is for design work.
Council Member Sniff asked how was $11,000,000 decided upon and was it the
highest amount. City Manager Genovese stated it may have not been the highest,
and explained there were four alternatives the City Council reviewed and chose
Alternative D, and this may have been the highest in cost as it includes the longest
range of pipeline that would be installed.
Council Member Sniff asked if staff has some firm understanding of the value of
the benefits purchasing and how much is CVWD putting into this. City Manager
Genovese explained staff has not begun the process of valuating the project; the
decision whether to repair the canal or installing a pipeline will be brought before
the City Council at a later time; and stated this agenda item is for approval of an
agreement to implement a design.
City Council Minutes 9 MARCH 15, 2011
RESOLUTION NO. 2011 -019
A RESOLUTION OF THE LA QUINTA CITY COUNCIL, APPROVING AN
AGREEMENT AMONG THE LA QUINTA REDEVELOPMENT AGENCY, THE CITY OF
LA QUINTA, AND THE COACHELLA VALLEY WATER DISTRICT, AND MAKING
CERTAIN FINDINGS PURSUANT TO HEALTH AND SAFETY CODE SECTION 33445
WITH RESPECT TO THE AGENCY'S EXPENDITURE
MOTION — It was moved by Council Members Henderson /Evans to adopt
Resolution No. 2011-019, as submitted. Motion carried by a vote of 4 -1, Council
Member Sniff dissenting.
BUSINESS SESSION
1. CONSIDERATION OF A RESOLUTION DESIGNATING SPEED LIMITS FOR
CERTAIN LOCAL STREETS
Public Works Director Jonasson presented the staff report.
Council Member Henderson stated there will need to be some consideration
for the residents of the Cove when enforcing the new speed limit on Avenida
Bermudas.
City Manager Genovese stated public announcements can be placed on
reader boards. Council Member Henderson suggested a two -week period of
time for warnings from the Police Department. City Manager Genovese
suggested deferring the enforcement to the Police Department.
RESOLUTION NO. 2011 -020
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA QUINTA
DESGINATING SPEED LIMITS FOR CERTAIN LOCAL STREETS
MOTION - It was moved by Council Members Sniff /Henderson to adopt
Resolution No. 2011 -17 as submitted. Motion carried unanimously.
STUDY SESSION
1. DISCUSSION OF THE DRAFT FISCAL YEAR 2011 -2012 THROUGH 2015-
2016 CAPITAL IMPROVEMENT PROGRAM (CIP)
Principal Engineer McKinney presented the staff report.
City Council Minutes 10 MARCH 15, 2011
Public Works Director Jonasson reviewed additions to the CIP
Council Member Franklin asked where the funding will be coming from for
the added six projects. City Manager Genovese explained the funding for the
added projects will be contingent upon the bond issues to be considered
during the public hearing.
Council Member Sniff conveyed his concern of depending on borrowed
money. City Manager Genovese explained the only borrowed money would
be from bond issues in response to the Governor's proposed budget.
Council Member Sniff asked if there will be any funding to complete projects
for Fiscal Year 2011 -12. City Manager Genovese stated the City currently
has funding on hand for FY 2011 -2012, except for the added projects which
are contingent upon the bond issues.
Council Member Henderson stated it is important to have the discussion of
funding; the projects have been in the CIP, and some have moved forward
faster than others which is not unusual; some funding comes from Developer
Impact Fees, and the City does this program on a yearly basis; fortunate to
go forward next year with these projects, provide jobs, and enhance the
City; does not impact the City in a negative way; and is afraid that the more
we show our success the Governor will want to take more from us.
Council Member Evans asked if the added projects are a part of the
$142,000,000 and why are they being added at this time. Public Works
Director Jonasson explained these projects were on the 'add' list and were
moved forward because of the upcoming bond issue.
Victor Villanueve, 79805 Amalfi Drive, thanked Mayor Adolph and Council
Member Franklin for meeting with a few members of the Esplanade
Homeowners' Association Board to discuss the traffic problems residents are
having at the entrance /exit into the development; stated the development
was conditioned by the City to have dedicated right -in and right -out turn
lanes; there is another entrance /exit at Jefferson Street and dangerous to
enter traffic; the Board commissioned on their own to conduct traffic volume
counts, and according to the study a traffic signal is warranted. Further
stated the CIP listed the future signal at number 17 out of 19 projects;
stated the developer was required to post a bond which remains with the
City; and suggested the City request additional funding from the Coachella
Valley Association of Governments (CVAG).
City Council Minutes 11 MARCH 15, 2011
Mayor Adolph stated he met with the City Manager a month ago regarding
signalization at Madison Street and Avenue 54, and asked whether the
funding from that project can be transferred to Esplanade.
Council Member Henderson stated staff will need to review the traffic
analysis and report back to the Council.
Mayor Adolph stated staff knows the demographics and traffic on Jefferson
Street.
Council Member Henderson stated she did hear at the Transportation
Committee meeting that the Jefferson Street overpass project is 6 to 7 years
away.
Jerry Lundin, lives in Esplanade development, stated exiting out onto
Jefferson Street is very scary; explained some residents feel safer making a
u -turn at the corner to exit the property instead of making a left turn.
Council Member Franklin asked how does this work when the City of Indio is
involved. Public Works Director Jonasson stated he has spoken with the last
two Public Works Directors for Indio and requested this signal be included in
their CIP; and further stated the City will probably have to seek other funding
because of a certainty there will be a shortfall for funding this project.
Council Member Henderson commended staff for the program.
City Manager Genovese requested the City Council take up Department Report No.
1B at this time as Indio Police Chief Ramos and Services Manager Jim Curtis have
attended the meeting to make a presentation. The City Council concurred.
DEPARTMENT REPORTS
1B. IMPLEMENTATION PLAN FOR THE 2011 COACH ELLA /STAGECOACH
MUSIC FESTIVALS
Assistant City Manager - Management Services Plumlee presented the staff
report.
Jim Curtis, Human Services Manager, City of Indio, conveyed appreciation of
the collaboration between Indio and La Quinta to address the traffic issues of
the annual music festivals; explained staff was requested to cut costs for
traffic control which impacted the festivals last year; stated the budget for
the traffic control has been increased this year to provide adequate traffic
City Council Minutes 12 MARCH 15, 2011
control, in collaboration with the City of La Quinta; explained a joint media
plan is being conducted between Indio and La Quinta; have finalized traffic
and media plans; and thanked the City of La Quinta for partnering with Indio,
and for widening of Jefferson Street.
Mayor Adolph asked what the City of Indio is doing to keep southbound
lanes open on Jefferson Street. Mr. Curtis stated there will be delineators
set up to keep southbound traffic flowing.
Brad Ramos, Chief of Police, City of Indio, conveyed appreciation of the
widening of Jefferson Street; stated the City hopes a media campaign will
inform local residents of the traffic issues prior to the events; and stated the
Police Department is informed of the surges of traffic occurring when the
more popular musicians perform and will provide staff to accommodate.
Mayor Adolph conveyed concern of the inability to access the Ralphs
shopping center at the northeast corner of Avenue 50 and Jefferson Street.
Council Member Evans asked if the City is actively involved with the media
plans. Assistant City Manager- Management Services Plumlee confirmed and
stated staff and Furino /Greene have reviewed the media plans, and will be
releasing news announcements on behalf of the City of La Quinta. Council
Member Evans conveyed concern of gated communities not being informed.
Mr. Curtis stated Indio has good relationships with Homeowners'
Associations in the venue area.
Chief Ramos stated the Police Department conducts a canvass of
Homeowners' Associations within a half -mile radius of the venue; and
utilizes Twitter and Facebook to provide directions to the venue.
Mr. Curtis stated the City of Indio will have a concert hotline and email
address to provide information or resolve any issues immediately.
Council Member Franklin thanked Mr. Curtis and Chief Ramos for their
efforts and working with La Quinta staff.
The City Council recessed to the Redevelopment Agency meeting and to and until
7:00 P.M.
City Council Minutes 13 MARCH 15, 2011
7.00 P_M_
PUBLIC COMMENT — None
PRESENTATIONS — None
PUBLIC HEARINGS
1. JOINT PUBLIC HEARING AMONG THE CITY COUNCIL OF THE CITY OF LA
QUINTA, THE LA QUINTA REDEVELOPMENT AGENCY, AND THE LA
QUINTA FINANCING AUTHORITY TO CONSIDER RESOLUTIONS
REGARDING THE ISSUANCE OF REDEVELOPMENT PROJECT AREAS 1 AND
2 TAXABLE BONDS AND RELATED DOCUMENTS
Chairman Adolph opened the Financing Authority meeting.
Chairperson Henderson reconvened the Redevelopment Agency meeting.
Finance Director Falconer presented the staff report.
In response to Council Member Sniff, Ms. Robin Thomas, Wedbush
Securities, explained Project Area No. 1 bond issues will expire in 2034 with
Project Area No. 2 expiring in 2039; confirmed new debt cannot be acquired
during the term of the bonds; explained there are four different bonds, two
for housing, one for Project Area No. 1 and one for Project Area No. 2;
stated the rate is unknown for all four bonds at this time; and stated the
total amount for the new bond issues is $78 million.
Ms. Thomas further explained the tax increment has been calculated with no
growth the next year and it is customary to have a financing coverage
amount built in with $1.30 revenue for every dollar spent for La Quinta.
Council Member Sniff asked how we pay these loans off if tax increment
money continues to be reduced. Ms. Thomas explained there is enough built
in the financing component the City can pro -rate several more years of
reduced, assessed value before it becomes a problem.
Council Member Sniff asked what the cost of bonds is. Ms. Thomas stated
the interest rate today is just under 3% on an A rating, and the City may fall
at an A+ rating with a low 1.5% rate. Finance Director Falconer stated the
cost is $998,000.
City Council Minutes 14 MARCH 15, 2011
In response to Council Member Sniff, Ms. Thomas stated the life span of the
bonds for Project Area No. 1 goes to 2034 and Project Area No. 2 to 2039;
explained the payment of the annual cost for the bonds come from tax
increment funds; explained the City receives $15 million in tax increment
annually in Project Area No. 1, with a debt service of $12.8 million, and
Project Area No. 2 generates $2.2 million with a debt service of $1.4 million;
and explained according to redevelopment law the City must have debt to
receive tax increment funds.
Council Member Sniff asked what the cost is in total for the life of the bond
issues. Ms. Thomas explained the total for Project Area No. 1 is
$300,000,000, and to repay all debt and Project Area No. 2 is
$34,000,000.
Council Member Sniff stated there is a limitation to the amount of debt the
City should acquire; conveyed his concern on acquiring more than the City
can bear; and with tax increment going down continually, there is a risk
factor.
Ms. Thomas stated the issuance of bonds has been approached
conservatively with staff's input, and would not put the City at risk.
Council Member Franklin asked how staff came to the amount of the four
bonds. Ms. Thomas explained staff tried to issue as much debt as can be
obtained and still leave enough funding for administrative costs.
Council Member Franklin conveyed her concern of the amount of debt issued
and the little amount of funds left over.
Council Member Evans concurred with the concern of Council Member
Franklin; stated the City was built by taking risks; stated it may or may not
need to happen right away, and empowering the City Manager will give
flexibility to issuing the bonds; and stated she will support the
recommendation.
Council Member Henderson stated Wedbush Securities technically has a
fiduciary responsibility to the City. Ms. Thomas confirmed, and stated the
success of her firm and competitors is to provide excellent customer service.
Council Member Henderson stated the City has previously insured bonds.
Ms. Thomas confirmed and explained the current insurer filed bankruptcy
two months ago, but was required to set aside reserves to cover the bonds
City Council Minutes 15 MARCH 15, 2011
insured. Council Member Henderson asked if the holders of the bond issues
would get paid. Ms. Thomas confirmed.
Council Member Henderson asked if the City continues to maintain insurance
on the Transient Occupation Tax (TOT). Finance Director Falconer explained
the City continues to carry catastrophic insurance for the La Quinta Hotel.
Council Member Henderson stated she does not believe the market will
recover in five years but will take longer; stated the resetting of the
mortgages will put homes back on the market and there is no formula for
moving forward; understands why the City must protect these funds; and
stated there is a need to have operating costs established and feels staff has
done the best job they can at this time.
Mayor Adolph agreed with the comments made by the Council Members; the
housing market was at its peak in 2006 and 2007; and asked if it is
necessary to move forward on the housing bonds and hold on the other bond
issues depending on the governor's actions. Finance Director Falconer
explained there is $2.3 million of estimated excess in Project Area No. 1 and
$1.4 million in Project Area No. 2, and an estimated amount of $3.7 million
excess for housing; explained the $78 million in bond issues will substitute
the $40 million used to pay -off the General Fund.
Mayor Adolph stated that all we are doing is protecting ourselves. Finance
Director Falconer stated staff will set aside 10% for debt service and the
Treasurer will maintain the $7.8 million as a reserve in case of a shortfall.
City Manager Genovese stated that in light of the concern of the margin,
staff can run numbers at 135 coverage or 140 coverage ratio; and stated the
City currently has bond insurance on a couple of current bond issues. City
Manager Genovese questioned Ms. Thomas if the City is able to be selective
on which debt service it pays first. Ms. Thomas stated the City cannot be
selective and the bonds are written where the City must meet a parity tax
which makes all the bonds equal.
Council Member Sniff asked what the legal risk in issuing the bonds is and
will it be challenged by the State. City Attorney Jenson stated she does not
see a basis for the State to challenge the bond issue; does think the State
recognizes the existing bonded indebtedness; there will be issues and if the
legislation goes through, and the sale has not been done, the City would not
be able to proceed. Ms. Thomas explained the bond contract has a
cancellation clause if the bond does not go through, the City can cancel at
no cost.
City Council Minutes 16 MARCH 15, 2011
City Attorney Jenson stated the only thing that is pledged is the tax
increment, no other funding sources can be taken.
Council Member Franklin asked where the $7.8 million would be placed.
Finance Director Falconer explained the funds will be invested with US Bank
Trustee, and on a parity basis will invest in Treasury Bonds with a five year
maximum to have quick access to the funds.
Council Member Henderson asked if the interest will be reinvested into the
account. Ms. Thomas explained usually interest earnings get transferred into
an interest account to reduce the next debt service payment.
The Mayor /Chairman Adolph, and Chairperson Henderson declared the
PUBLIC HEARING OPEN at 7:49 p.m. There being no requests to speak, the
Mayor /Chairman and Chairperson declared the PUBLIC HEARING CLOSED at
7:49 p.m.
RESOLUTION NO. 2011 -021
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA QUINTA,
CALIFORNIA, APPROVING THE ISSUANCE BY THE LA QUINTA
REDEVELOPMENT AGENCY OF ITS LA QUINTA REDEVELOPMENT PROJECT
AREA NO. 1, TAXABLE TAX ALLOCATION BONDS, SERIES 2011 AND
MAKING CERTAIN DETERMINATIONS RELATING THERETO
It was moved by Council Members Henderson /Evans to adopt Resolution No.
2011-021 as submitted. Motion carried by a vote of 4 -1, with Council
Member Sniff dissenting.
RESOLUTION NO. 2011 -022
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA QUINTA,
CALIFORNIA, APPROVING THE ISSUANCE BY THE LA QUINTA
REDEVELOPMENT AGENCY OF ITS LA QUINTA REDEVELOPMENT PROJECT
AREA NO. 2, TAXABLE TAX ALLOCATION BONDS, SERIES 2011 AND
MAKING CERTAIN DETERMINATIONS RELATING THERETO
It was moved by Council Members Evans /Henderson to adopt Resolution No.
2011-022 as submitted. Motion carried by a vote of 4 -1, with Council
Member Sniff dissenting.
City Council Minutes 17 MARCH 15, 2011
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA QUINTA,
CALIFORNIA, APPROVING THE ISSUANCE BY THE LA QUINTA
REDEVELOPMENT AGENCY OF ITS LA QUINTA REDEVELOPMENT PROJECT
AREAS, TAXABLE TAX ALLOCATION HOUSING BONDS, SERIES 2011 AND
MAKING CERTAIN DETERMINATIONS RELATING THERETO
It was moved by Council Members Henderson /Evans to adopt Resolution No.
2011 -023 as submitted. Motion carried by a vote of 4 -1, with Council
Member Sniff dissenting.
RESOLUTION NO. 2011 -024
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA QUINTA,
CALIFORNIA, APPROVING A LOAN BETWEEN THE LA QUINTA
REDEVELOPMENT AGENCY AND THE LA QUINTA FINANCING AUTHORITY
It was moved by Council Members Evans /Henderson to adopt Resolution No.
2011-024 as submitted. Motion carried by a vote of 4-1, with Council
Member Sniff dissenting.
STUDY SESSION ... continued
2. DISCUSSION OF THE DRAFT 2011 -2012 ECONOMIC DEVELOPMENT PLAN
Economic Development Project Manager Powell presented the staff report.
Council Member Henderson asked if staff will be placing the new population
number on the City sign. Economic Development Project Manager Powell
stated the new number is based on estimates from the Federal census
counts. City Manager Genovese stated the State Department of Finance will
be updating its population estimate numbers; the new numbers will be
posted on the signs.
Council Member Henderson asked what does the City get from the State
with a higher population. City Manager Genovese explained there are
statistics that are based on population; for the last several years, the City
has been given additional subventions because of the higher population.
City Council Minutes 18 MARCH 15, 2011
Council Member Henderson stated that the statistics could indicate the
Police Department could seem overstaffed because of the number per
thousand. City Manager Genovese explained the City has not yet adopted a
number per thousand, and looking at policing based on population would be
problematic, as the City should look at the needs, for example in the
commercial district.
Mayor Adolph asked if these goals are basically the same as last year.
Economic Development Project Manager Powell confirmed.
Council Member Henderson stated staff took a good strategy as there
doesn't seem to be any changes with the economy; and stated it is
important to support businesses and encourage growth.
Council Member Sniff stated the goals are very realistic as the economy
doesn't seem to be changing in the next few months.
REPORTS AND INFORMATIONAL ITEMS
C.V. Conservation Commission - Council Member Sniff reported the nexus study is
creating doubts, confusion and a lack of consensus, and the discussion came down
to continuing the matter to April; the fees of $40 per acre that are being
contemplated are due to the loss of the Eagle Mountain sale; and the building
community does not think the economy will significantly improve right away.
Council Member Henderson stated the developers are upset that Eagle Mountain
did not come to fruition and they feel the Commission is asking too much with the
fees.
League of California Cities - Council Member Henderson announced the next
Riverside Division meeting is scheduled Monday, March 21, 2011, in Palm Desert.
Riverside County Transportation Committee - Council Member Henderson reported
there has been discussion of bringing a daily passenger rail service; Union Pacific
has discussed this matter with the Commission; announced a train will run from
Los Angeles to the Coachella Valley in celebration of Train Day, bringing
passengers to stay and play for the weekend. The Coachella Valley Economic
Partnership (CVEP) and the Palm Springs Desert Resort Communities Convention &
Visitors Authority (CVA) have signed on with this promotion, with CVEP providing
monetary support; stated this will be a beginning to a discussion with Metrolink;
and a resolution was passed and requested the cities to also adopt it in support.
City Council Minutes 19 MARCH 15, 2011
National League of Cities — Council Member Henderson reported the Board
established goals in preserving Community Development Block Grant (CDBG) funds,
but new members wish to cut the program due to their lack of understanding of
what the funds provide; stated there will be cuts and all are protecting their special
interest; this is a $4 billion allocation from the Federal Government that goes
directly to the cities; there are an unbelievable number of cities throughout the
country that depend on CDBG funding; and there is a push for a new transportation
bill for next year, with an agreement for the need but there is a lack of funding.
League of California Cities — Council Member Henderson reported a conference call
will be conducted by the League on March 17, 2011 from 1:30 p.m. to 2:30 p.m.
and only the elected officials will be able to participate in the question- and - answer
period; there is supposedly a vote tomorrow on the budget, the tax extension, and
removal of the redevelopment agencies; the essence of the conference call is to
explain various proposals that have been made public; California Redevelopment
Agency's proposal is a voluntary proposal and will ask the members for a straw
vote on the endorsement of any of the proposals, or the Governor's budget which
includes the tax extension; the straw vote will be brought before the Board and will
decide whether to support any of the proposals, budget or tax extension; and
encouraged the City Council to participate in the conference call.
CVAG Public Safety Committee — Council Member Evans reported Patrick Mahoney
is gone from the committee, and Mary poach was appointed; and the Committee
unanimously approved a recommendation for a resolution to be adopted regarding
the pre - parolee program.
All other reports were noted and filed.
DEPARTMENT REPORTS ..... continued
1C. QUARTERLY MARKETING REPORT
Council Member Evans stated she is pleased the new iPhone app will be
working soon; and asked if an app will be available for the Blackberry.
Assistant City Manager- Development Services Evans explained an app for
the Blackberry will be available next year.
MAYOR AND COUNCIL MEMBERS'
City Council Minutes 20 MARCH 15, 2011
Council Member Franklin referred to Consent Calendar Item No. 7 regarding the
Historic Preservation Commission Member's attendance to the Annual California
Preservation Conference, and requested a report be provided to the City Council.
Mayor Adolph referred to a newspaper article regarding the roundabout spinning -
out problems and spoke to the reporter to explain that 99% of the people like the
roundabout as it provides constant flow of traffic; and was disappointed with the
comments made as they were misleading.
Council Member Evans thanked staff for organizing the United Way dinner table,
and as Chair for next year's event, requested staff to begin thinking of a theme,
and may require the Mayors to wait at the tables.
ADJOURNMENT
There being no further business, it was moved by Council Members Sniff /Evans to
adjourn. Motion carried unanimously.
Respect Ily submitted,
VERONICA ONTECINO, City Clerk
City of La Quinta, California