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2012 02 07 CC MinutesLA QUINTA CITY COUNCIL MINUTES, FEBRUARY 7, 2012 A regular meeting of the La Quinta City Council was called to order at the hour of 3:30 p.m. by Mayor Adolph. PRESENT: Council Members Evans, Franklin, Henderson, Mayor Adolph ABSENT: Council Member Osborne MOTION — It was moved by Council Members Franklin /Evans to excuse the absence of Council Member Osborne. Motion carried unanimously. PUBLIC COMMENT - None CLOSED SESSION 1. CONFERENCE WITH LABOR NEGOTIATORS, SKI HARRISON AND TERRY DEERINGER, REGARDING NEGOTIATIONS WITH THE LA QUINTA CITY EMPLOYEES ASSOCIATION PURSUANT TO GOVERNMENT CODE SECTION 54957.6 MEET AND CONFER PROCESS Council recessed 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. PUBLIC COMMENT Bruce Franklin, 81060 Kingston Heath, La Quinta, announced the birthday of a great American citizen, a great La Quinta citizen, a wonderful wife and a great grandmother: Council Member Kristy Franklin. Grandson Wiley presented flowers to Council Member Kristy Franklin in honor of her birthday. CONFIRMATION OF AGENDA Interim City Manager Weiss requested that the Study Session item be moved on the agenda to be taken up before the Business Session items. Page 1 of 11 City Council Minutes February 7, 2012 Council Member Franklin requested Consent Calendar item 3 be considered separately. Council Member Evans requested Consent Calendar item 11 be considered separately due to potential conflict of interest resulting from proximity of her residence to this Washington Street project. All requests were accepted by Council Members. ANNOUNCEMENTS & PRESENTATIONS 1. Mayor Adolph presented a proclamation declaring February as free application for student federal aid (FAFSA) month to Cristina Gregoria of the Coachella Valley Economic Partnership, Pathways to Success program. 2. Mr. Steve Cherry, 81567 Desert Willow Drive, La Quinta gave his presentation on "Archiving City Council Meetings," which promoted storing videos of Council meetings on the City's website for at -will public viewing. Council Members thanked Mr. Cherry. Interim City Manager Weiss stated that this item will be considered during the upcoming budget preparation process. WRITTEN COMMUNICATIONS - NONE APPROVAL OF MINUTES MOTION: A motion was made by Council Members Evans /Franklin to approve the City Council minutes of January 17 2012. Motion carried unanimously. CONSENT CALENDAR 1. APPROVAL OF DEMAND REGISTER DATED FEBRUARY 7, 2012 2. APPROVAL TO EXCUSE BOARD MEMBER ANDREA SPIRTOS FROM THE FEBRUARY 8, 2012 INVESTMENT ADVISORY BOARD MEETING 3. APPROVAL OF AN APPROPRIATION FOR THE FRITZ BURNS DOG PARK IMPROVEMENTS - pulled by Council Member Franklin 4. DENIAL OF CLAIM FOR DAMAGES FILED BY RENATE SENTERS; DATE OF LOSS JANUARY 12, 2012 5. DENIAL OF CLAIM FOR DAMAGES FILED BY DENNIS BAUTISTA; DATE OF LOSS DECEMBER 19, 2011 City Council Minutes February 7, 2012 6. RATIFICATION OF AUTHORIZATION OF OVERNIGHT TRAVEL FOR ONE MEMBER OF THE CITY COUNCIL TO ATTEND THE LAND USE LAW AND PLANNING CONFERENCE HELD FEBRUARY 3, 2012 IN LOS ANGELES, CA 7. APPROVAL TO EXCUSE COMMISSIONER ALLAN WILBUR'S ABSENCE FROM THE JANUARY 19, 2012 HISTORIC PRESERVATION COMMISSION MEETING 8. ACCEPTANCE OF THE CITY OF LA QUINTA GOVERNMENT ACCOUNTING STANDARDS BOARD 45 VALUATION AS OF JULY 1, 2011 9. APPROVAL OF A COOPERATIVE AGREEMENT WITH THE COUNTY OF RIVERSIDE FOR THE OPERATION AND MAINTENANCE OF TRAFFIC SIGNALS AND SAFETY LIGHTING AT SHARED BOUNDARIES 10. APPROVAL OF A COOPERATIVE AGREEMENT WITH THE CITY OF INDIO FOR THE OPERATION AND MAINTENANCE OF TRAFFIC SIGNALS AND SAFETY LIGHTING AT SHARED BOUNDARIES 11. APPROVAL OF THE PLANS, SPECIFICATIONS AND ENGINEER'S ESTIMATE OF PROBABLE CONSTRUCTION COSTS, AND AUTHORIZE STAFF TO ADVERTISE FOR BID, THE WASHINGTON STREET TURN LANE IMPROVEMENTS AT AVENUE 48, AND APPROPRIATE INFRASTRUCTURE FUNDS, PROJECT 2010 -06 - pulled by Council Member Evans MOTION - A motion was made by Council Members Franklin /Henderson to approve the Consent Calendar as recommended and amended with the exception of items 3 and 11. Motion carried unanimously. CONSENT CALENDAR - ITEM 11 APPROVAL OF THE PLANS, SPECIFICATIONS AND ENGINEER'S ESTIMATE OF PROBABLE CONSTRUCTION COSTS, AND AUTHORIZE STAFF TO ADVERTISE FOR BID, THE WASHINGTON STREET TURN LANE IMPROVEMENTS AT AVENUE 48, AND APPROPRIATE INFRASTRUCTURE FUNDS, PROJECT 2010 -06 Council Member Evans recused herself from voting on this item due to the proximity of her residence to this Washington Street project. MOTION - A motion was made by Council Members Henderson /Franklin to approve Consent Calendar item 11 as recommended. Motion carried by a vote of 3 ayes, 0 nays, 2 absent - Council Members Evans and Osborne absent. City Council Minutes CONSENT CALENDAR - ITEM 3 APPROVAL OF AN APPROPRIATION. IMPROVEMENTS February 7, 2012 FOR THE FRITZ BURNS DOG PARK Council Member Franklin asked for more detail on the additional expenditure of $ 10,000. Golf /Park Landscape Manager Steve Howlett explained that this project and related budget originally came to the Council with the Community Services Commission's recommendation to establish it as a small dog park. The original project budget included funds for one shade structure, one bench, and one drinking fountain. After hearing from residents, Council adjusted the project to include large dogs. As a result, the scope of the project doubled. The additional funds are needed for double the quantity of concrete, and a second shade structure, bench and drinking fountain. MOTION - A motion was made Council Members Franklin /Henderson to approve an appropriation of $10,000 from unallocated Quimby Funds for improvements to the Fritz Burns Dog Park as recommended. Motion carried unanimously. STUDY SESSION 1. DISCUSSION OF REVENUE ALTERNATIVES FOR THE CITY OF LA QUINTA Public Works Director Timothy Jonasson presented the staff report. Mr. Jonasson informed Council that Jim McGuire of Willdan Financial Services, and Jennifer Rindahl of the Lew Edwards Group were in attendance to help answer Council Members' questions. Mayor Adolph opened the floor to Council Member questions. In response to Council Member Henderson's questions, Mr. Jonasson and City Attorney Jenson clarified the difference between a fee and a tax. A fee is charged to cover the cost of a service and that cost must be based on an analysis or cost study. Fees are approved by the Council after a public hearing. A tax is levied to generate revenue for specific or general purposes. A special tax to be levied for a specific purpose, such as parks, requires two - thirds voter approval, but does not require a special benefit analysis. A general tax requires voter approval by a simple majority, and can include admissions tax, utility user tax, sales tax, parking tax, property transfer tax, and transient occupancy tax. Council Member Henderson asked if it would be necessary to repeat the voter approval process if benefit levels change for any area of the City. Mr. McGuire of Wilidan Financial Services stated that benefit zones would be City Council Minutes February 7, 2012 created throughout the City. A zone with any new, added benefit could be annexed into a zone with similar benefits, but this could not be done without voter approval from affected residents. Generally, a City would obtain voter approval prior to constructing any new benefit. Council Member Franklin inquired about including a cost -of- living or some manner of automatic increase on assessment amounts to eliminate the need to return to voters frequently for routine increases. Mr. McGuire stated that a CPI clause or periodic flat fee or some inflator is almost always included. It can be a stumbling block, but if voters understand that it's reasonable and correlated to the cost of doing business, most are supportive. Council Member Franklin asked if the City was currently getting all it should from the existing Transient Occupancy Tax (TOT). Interim City Manager ' Weiss stated that staff was looking into different enforcement mechanisms, such as monitoring rental advertisements. Staff would like to report back on ways to more aggressively enforce the rules already on the books. Mr. Weiss noted that enforcement of existing rules requires no vote or study. Council Member Franklin asked about the requirements for real estate agents to hold a city business license. Finance Director John Falconer explained that agents who are considered independent contractors are required to hold a business license. Agents who are employees do not hold business licenses; instead, his /her employer must maintain a city license. Council Member Franklin asked Mr. Falconer if this requirement was fully enforced — not just for realtors because they are just an example, but for all business types. Mr. Falconer stated that city regulations require any person doing business in La Quinta, whether they have a business location here or not, to obtain a business license in order to pay their fair share of expenses for roads and other public amenities. He felt sure that not all who should be paying for a business license have done so. Enforcement could be stepped up, but cost - benefit must be kept in mind. Staff time to list and contact all agencies to collect info on the status of their agents versus the $15 fee must be examined. Mayor Adolph explained the difficulty in identifying rented private residential properties that owe transient occupancy tax (TOT). In response to Mayor Adolph, City Attorney Jenson stated that, according to State law, TOT applies to rentals of 30 days or less. Rentals for longer periods are exempt from TOT, unless an agreement with owners is reached outlining a different arrangement. City Council Minutes February 7, 2012 Mayor Adolph stated the Governor indicated that several tax measures are likely to be placed on the November 2012' ballot, which the Mayor predicts will cause votes to defeat them all. Mayor Adolph stated that he could not support adding any La Quinta tax measures to the November ballot because it would overwhelm voters. Mayor Adolph noted that, looking at tax bills, there is one item that generates funds for the city — lighting and landscape assessment. Unfortunately, the revenue from those assessments does not cover costs and must be one of the lowest rates in the State. Through staff creativity, other means of raising revenue must be found so that the years of hard work to build up city reserves is not reversed. Mayor Adolph opened the floor to public comments. Gretchen Gutierrez, Chief Executive Officer of the Desert Valley Builders Association (DVBA), 34360 Gateway Drive, Palm Desert spoke on behalf of the DVBA. Ms. Gutierrez said she understood the revenue shortfall cities were facing, but asked Council to consider members of the construction /development industry who bring jobs to the area and are just now seeing a slight upturn in their industry. She requested that Council carefully consider fee increases in the Planning, Public Works, and Building departments because they would directly impact DVBA members' cost of doing business and Ms. Gutierrez offered DVBA as a resource to the city in solving its budget shortfall. Mayor Adolph opened the floor to comments by Council Members. Council Member Evans said the solution must be multifaceted. La Quinta has been fortunate, and is still well - positioned given Council and staff efforts over the years. She agrees that placing a tax measure on this November's ballot is not appropriate. Before that is considered, every other means must be implemented. All city departments have been tasked with doing more with less, and there is an opportunity now, with three positions to fill (City Manager, Finance Director and City Clerk), to talk about compensation and overall personnel. Council Member Evans supports examining fees that can be increased now, such as park rental and player fees. Also non - residents should pay higher fees for the privilege of using La Quinta facilities. Council Member Evans asked Finance Director Falconer about revenue generation. Mr. Falconer explained that the city does not have a Revenue Officer, Investigators or an enforcement arm. Audits of hotels have not been done to date. Mr. Falconer suggested that the first step may be to re- examine the transient occupancy tax ordinance. City Council Minutes February 7, 2012 Council Member Evans felt that increases in small fees should be the first step, along with engaging consultants to conduct a fee analysis and evaluate areas for internal reductions. If all possible reductions and fee increases are taken, and a tax increase measure is still needed on the 2014 ballot, the Council and staff will have done their job, and it will be easier for the public to accept. Council Member Henderson agreed that no new taxes should be on the November ballot, especially recognizing that the State has three major tax initiatives on the table right now. Ms. Henderson noted that the city has been working on a broad range of solutions starting two years ago and that process is continuing. With the dissolution of the redevelopment agency, there are many unknowns, such as what will this cost the city. The focus must be to look at what can be done internally. Council Member Henderson felt it was legitimate to consider fee increases. The city has been very kind to the building industry, and will continue to work with its members, but it's likely that fees will change out of necessity, along with park fees, etc. All options presented in the report must be kept as possibilities. Council Member Henderson stated that she does not have a problem asking voters to decide on services versus contributions. In conclusion, Council Member Henderson thanked staff and consultants, and acknowledged that we all have a rough time ahead. Council Member Franklin noted that there was consensus among Council Members not to add new taxes to the ballot in 2012. Ms. Franklin suggested greater enforcement of the TOT ordinance, which for regular rentals less than 30 days, can be done without voter approval. Finance Director Falconer explained the monitoring and enforcement currently done in his department, and stated that he will add internet searches of La Quinta rentals. Council Member Franklin said she would like to initiate a scholarship program for La Quinta residents if youth sports fees are increased. The fees for non - sanctioned competitive teams can be increased. A report back on increasing park rental fees was requested by Ms. Franklin, along with an examination of fees that have not been increased for the past ten to thirty years. Finance Director Falconer remembered that fees set as a result of the last fee study brought to Council in 1996 were in the range of fifty percent of actual cost of the services. City Council Minutes February 7, 2012 Council Member Henderson asked for clarification on the process to increase fees. Public Works Director Jonasson responded that costs have to be documented and a public hearing held. Fees can be cost - recovery only. Council Member Evans asked for details on how youth sports fees would be levied. Community Services Director Hylton explained that agreements would be made with the sports associations, who would add the city fee to their existing registration fee, and pass it through. The fee would be a way for leagues and participants to support the city and recognize the funds the city invests in its fields and facilities. The fee would be different for residents versus non - residents. Currently, players pay leagues a fee but none of that goes to the city. Council Member Evans inquired about the cost of fee studies. Mr. McGuire responded with the range of $50,000 to $75,000 for both a user fee study and developer impact fee study. Council Member Henderson asked if the old study could be used and a reasonable amount added. Interim City Manager Weiss expressed his concern with using a 1996 analysis due to the numerous changes in factors since that time; and to defend increases, the city must know what is legal and reasonable. Also, a consultant would provide this knowledge based on analysis and experience with many other cities. Mr. Weiss suggested that any study include software that would allow staff to keep it current, so that this could be a one -time expense. Mr. Weiss recommended that a study is where this process should start, and once done, the Council can determine if fees are assessed at 100% or some lesser amount. Mayor Adolph stated that the city will be dealing with this issue as it examines and prepares the budget, and he is confident that staff will provide solutions and the city will come through 'this time successfully. In remembering past ballot measures, Mayor Adolph stated that they are a sensitive issue and must first be marketed to citizens to gain their backing. Mayor Adolph explained that if everyone wants the city to continue as is, cooperation from residents will be needed. Council Member Evans summarized areas of agreement. No new tax would be on the ballot this year. Community Services staff will look at fees internally as part of the budget process this year. A fee study will be initiated, using a consultant, but it will not include any taxing options. Council Member Henderson added that any new fee schedule should be self - updating or self - executing. Interim City Manager Weiss added that, as discussed, staff would also examine enforcement options. City Council Minutes. BUSINESS SESSION February 7, 2012 1. CONSIDERATION OF APPOINTING TWO CITY COUNCIL MEMBERS TO SERVE ON THE CIVIC CENTER ART PURCHASE COMMITTEE MOTION: A motion was made by Council Members Franklin /Evans to appoint Council Members Henderson and Osborne to the Civic Center Art Purchase Committee. Motion carried unanimously. 2. CONSIDERATION OF RENAMING THE NATURE PRESERVE AND TRAIL TO "FRED WOLFF NATURE PRESERVE" AND "BEAR CREEK TRAIL" Community Services Director Edie Hylton gave the staff report. Mayor Adolph asked if a financial implication of this change would be the cost of new signage. Director Hylton explained that signs would not be replaced until it became necessary. The current signs were purchased with grant funds, and grants would be sought for any new signage. The name change would first be included in department literature. MOTION: A motion was made by Council Members Evans /Franklin to approve renaming the Preserve and Trail as recommended. Motion carried unanimously. 3. CONSIDERATION OF SELECTION CRITERIA FOR CITY MANAGER RECRUITMENT Human Resource Manager Terry Deeringer gave the staff report, and introduced Ms. Bobbi Peckham of Peckham and McKenney. Ms. Peckham stated that she met with each Council Member and Department Directors to develop an ideal candidate profile from which she would create an ad for a new City Manager to be placed in several industry publications as well as websites and the brochure. Ms. Peckham recited the extensive list of attributes she had gathered from Council and staff. Council Members discussed the salary range with Ms. Peckham, and her method for revealing that to candidates. Her recommended base salary was $185,000 to $225,000. This range will result in a very inclusive pool of applicants. Compensation will not be included in ads or the brochure. Instead, Ms. Peckham will determine each candidate's expectations in that regard during interviews. Several items, including relocation expense reimbursement will have to be negotiated with the selected candidate. City Council Minutes February 7, 2012 Ms. Peckham outlined the selection process and set the application filing deadline date of March 30` She expects the selection process to be complete, with a new City Manager on board by late June. The timeline for the new Finance Director position . will dovetail with that of the City Manager's so that the new City Manager can participate in the selection. MOTION: A motion was made by Council Members Evans /Franklin to approve the selection criteria and guidelines for the City Manager position as recommended by the City's search firm, Peckham and McKenney. Motion passed unanimously. REPORTS AND INFORMATIONAL ITEMS Palm Springs Desert Resort Communities Convention & Visitors Authority - Council Member Evans reported that hotel occupancy is up. Riverside County Transportation Commission - Council Member Henderson reported that the last meeting was very informative, and Riverside County is doing a tremendous job. League of California Cities - Council Member Henderson announced that she will be attending the League Board Meeting this Thursday and Friday in the San Francisco area. Coachella Valley Association of Governments - Mayor Adolph informed Council that authorization for various grants in support of Whitewater Parkway was approved. He also announced that TUMF revenue was up 1.5 %, and Measure A (sales tax) revenue was up 4.7 %. Sunline Transit Agency - Mayor Adolph complemented Mr. Goldfarb of attorney firm, Rutan and Tucker, for his work on the American Cab presentation at their meeting. DEPARTMENT REPORTS 1. CITY MANAGER A. RESPONSE(S) TO PUBLIC COMMENT(S) 2. CITY ATTORNEY 3. CITY CLERK - NONE 4. BUILDING & SAFETY DEPARTMENT REPORT - NONE 5. COMMUNITY SERVICES DEPARTMENT REPORT - NONE 6. FINANCE DEPARTMENT REPORT - NONE 7. PLANNING DEPARTMENT REPORT A. GENERAL PLAN MONTHLY UPDATE City Council Minutes February 7, 2012 B. INDIO POLO FIELDS GOLDENVOICE CONCERTS UPDATE 8. PUBLIC WORKS DEPARTMENT REPORT - NONE 9. POLICE DEPARTMENT REPORT - NONE 10. FIRE DEPARTMENT QUARTERLY REPORT — NONE Staff had no additional departmental reports. MAYOR'S AND COUNCIL MEMBERS' ITEMS Council Member Franklin requested that an item regarding changing the land use designation on city -owned village properties be placed on the next possible agenda. All Council Members concurred. Mayor Adolph noted that he attended the Friday night museum program, which was wonderful and very well attended. In response to a resident's question, Mayor Adolph agreed to contact the City of Palm Springs to inquire about recognizing artist Lena Horne on their Walk of Fame. Council Member Evans complemented city staff members Maria Casillas and Deborah Powell for a job well done on the State of the City presentation and luncheon. PUBLIC HEARINGS — NONE ADJOURNMENT There being no further business, it was moved by Council Members Evans /Franklin to adjourn at 6:16 p.m. Motion carried unanimously. Respectfully submitted, Susan Maysels Interim City Clerk City of La Quinta, California