2012 07 03 CC MinutesLA QUINTA CITY COUNCIL
MINUTES
TUESDAY, JULY 3, 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, Osborne, Mayor Adolph
ABSENT: None
PUBLIC COMMENT - NONE
CLOSED SESSION
1. CONFERENCE WITH THE CITY ATTORNEY, ANTICIPATED LITIGATION,
INITIATION OF LITIGATION PURSUANT TO GOVERNMENT CODE SECTION
54956.9(c) (TWO MATTERS)
The City Council recessed to Closed Session at 3:32 p.m. to and until the hour of
4:00 p.m.
The City Council meeting was reconvened at 4:02 p.m. 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
Public Speaker: Denise Welch, Indio — Representative of the Friends of Roy's
Foundation, Inc., a new foundation to support the Roy's Desert Resource Center in
Palm Springs for the homeless. Ms. Welch provided information on the services
offered at Roy's Desert Resource Center and the number of La Quinta residents
who have used their services in 2012.
Public Speaker: Robin Probst, La Quinta — Provided suggestions on expanded use
of the La Quinta Resident Card by teaming with local restaurants and retail to offer
discounts. Council Member Franklin referred Mr. Prosbt to Community Services
Director Hylton and Chamber of Commerce Chair Mark Moran to discuss the
details.
CITY COUNCIL MINUTES 1 JULY 3, 2012
Public Speaker: Mark Moran, La Quinta - Chairman of the Chamber of Commerce.
Mr. Moran provided information on the events planned during the First Annual 4`
of. July celebration which includes a parade in which all Council Members will ride
in open air cars. Mr. Moran thanked city and fire staff for their assistance. He said
that the full Chamber contribution of $10,000 to the fireworks at the La Quinta
Hotel has not all been raised yet and City financial assistance may be requested.
Mr. Moran said he is expecting 3,000 to 5,000 spectators.
CONFIRMATION OF AGENDA
City Manager Spevacek requested the addition of a Presentation item to introduce
Mark Marlow, the new Fire Department Division Chief for La Quinta.
City Manager Spevacek requested that Business Session Item #2 be continued to
July 17, 2012 at the request of the La Quinta Arts Foundation. The item is
entitled: CONSIDERATION OF A CONTRACT TO CONSTRUCT THE PM -10
STABILIZATION OF CITY -OWNED PROPERTIES, PROJECT 2011 -12.
Council Member Osborne requested that Consent Calendar Item #5 be moved to a
Business Session item for discussion.
Council Members concurred with all the above changes to the agenda.
PRESENTATIONS
1. PRESENTATION OF THE TOM GENOVESE MEMORIAL SCHOLARSHIP BY
THE COACHELLA VALLEY ECONOMIC PARTNERSHIP
The newly - established Tom Genovese Memorial Scholarship was presented to Ms.
Danielle Thoene by Wesley Ahlgren, Chief Operating Officer of the Coachella Valley
Economic Partnership (CVEP), Ernie Rios, Head of the Workforce Excellence at
CVEP and Matthew Genovese, son of the late City Manager Thomas P. Genovese.
The $5,000 scholarship will be used by Ms. Thoene at UCLA where she will major
in micro - biology.
2. INTRODUCTION OF THE NEW FIRE DEPARTMENT DIVISION CHIEF MIKE
MARLOW
Due to reorganization, the La Quinta area has been moved to the east desert
division under Chief Mike Marlow, a La Quinta resident.
WRITTEN COMMUNICATIONS — NONE
CITY COUNCIL MINUTES 2 JULY 3, 2012
APPROVAL OF MINUTES
MOTION — A motion was made by Council Members Evans /Henderson to approve
the City Council minutes of June 19, 2012 as submitted. Motion passed
unanimously.
CONSENT CALENDAR
1. APPROVAL OF DEMAND REGISTER DATED JULY 3, 2012
2. ADOPTION OF A RESOLUTION APPROVING THE FISCAL YEAR 2012/2013
CITY OF LA QUINTA BUDGET AND ESTABLISHING THE CITY'S
APPROPRIATION LIMIT [Resolution 2012 -038]
3. DENIAL OF CLAIM FOR DAMAGES FILED BY DUANE ERICKSON — DATE OF
LOSS: APRIL 26, 2012
4. APPROVAL OF SECOND READING AND ADOPTION OF ORDINANCE NO.
499 AMENDING THE OFFICIAL ZONING MAP BY CHANGING TWO
DEVELOPED PUBLIC PROPERTIES FROM VILLAGE COMMERCIAL TO
MAJOR COMMUNITY FACILITIES. PROPERTY LOCATIONS: LA QUINTA
MUSEUM, 77885 AVENIDA MONTEZUMA AND THE VILLAGE PARKING
LOT, NW CORNER OF AVENIDA MONTEZUMA /BERMUDAS. APPLICANT:
CITY OF LA QUINTA
5. PULLED & MOVED TO BUSINESS SECTION #6: APPROVAL OF A REQUEST
FOR PROPOSALS FOR THE PREPARATION OF THE PRELIMINARY
ASSESSMENT FORMATION REPORT FOR SEVERAL NORTH LA QUINTA
SUBDIVISIONS CURRENTLY RECEIVING SPECIAL BENEFIT
6. APPROVAL OF A REQUEST FOR PROPOSALS TO OBTAIN PROFESSIONAL
ENGINEERING SERVICES TO PREPARE THE PLANS, SPECIFICATIONS AND
ESTIMATES FOR THE CALLE SINALOA /AVENUE 52 SIDEWALK
IMPROVEMENTS, PROJECT 2011 -08
7. AUTHORIZATION FOR OVERNIGHT TRAVEL FOR THE CITY MANAGER TO
ATTEND THE 2012 LEAGUE OF CALIFORNIA CITIES ANNUAL CONFERENCE
TO BE HELD SEPTEMBER 5 -7, 2012 IN SAN DIEGO, CALIFORNIA
8. ADOPTION OF A RESOLUTION APPROVING A MEMORANDUM OF
UNDERSTANDING BETWEEN THE CITY OF LA QUINTA AND THE LA
QUINTA CITY EMPLOYEES' ASSOCIATION FOR FISCAL YEARS 2012/2013
AND 2013/2014, AND ADOPTION OF A RESOLUTION FOR EMPLOYER
CITY COUNCIL MINUTES 3 JULY 3, 2012
PAID MEMBER CONTRIBUTIONS TO CALPERS PURSUANT TO
GOVERNMENT CODE SECTION 20691 [Resolution 2012 -0391
9. ADOPTION OF A RESOLUTION APPROVING A COST -OF- LIVING AND
BENEFIT ADJUSTMENTS FOR MANAGEMENT, CONTRACT MANAGEMENT
AND CONFIDENTIAL EMPLOYEES FOR FISCAL YEARS 2012/2013 AND
2013/2014 [Resolution 2012 -0401
MOTION - A motion was made by Council Members Evans /Osborne to approve the
Consent Calendar as recommended with the exception of Item No. 5, and with
Item Nos. 2, 8 and 9 adopting Resolution Nos. 2012 -038, -039 and -040
respectively. Motion passed unanimously.
Council Member Henderson thanked La Quinta city employees for recognizing the
financial challenges facing the city and sharing in the solutions.
BUSINESS SESSION
1. CONSIDERATION OF AN ART DONATION FROM,, BENJAMIN ROSKER
t
Community Services Director Hylton presented the staff report.
Mr. Rosker thanked Council for accepting his wife's art and placing her painting in
the La Quinta Library, a place she frequently visited.
MOTION - A motion was made by Council Members Evans /Franklin to approve the
art donation agreement with Benjamin Rosker and authorize the City Manager to
execute the Agreement. Motion passed unanimously.
2. CONSIDERATION OF A CONTRACT TO CONSTRUCT THE PM -10
STABILIZATION OF CITY -OWNED PROPERTIES, PROJECT 2011 -12
CONTINUED TO JULY 17, 2012.
3. CONSIDERATION OF AN UPDATED COOPERATIVE MARKETING
PROGRAM FOR THE USE- AND MARKETING AGREEMENT BY AND
BETWEEN DESERT CLASSIC CHARITIES AND THE CITY OF LA QUINTA
Marketing /Economic Development Manager Casillas presented the staff report.
Greg Helm of Desert Classic Charities provided information on the Humana
Challenge and the Clinton Foundation efforts.
Council Members thanked Mr. Helm for his efforts, asked about future plans,
expressed pride in the event especially the increasing funds raised for deserving
CITY COUNCIL MINUTES 4 JULY 3, 2012
valley charities, and asked for organizers to consider the La Quinta Hotel for the
special events held during the Challenge.
MOTION — A motion was made by Council Members Evans /Franklin to approve an
updated Cooperative Marketing Program for the Use and Marketing Agreement with
Desert Classic Charities. Motion passed unanimously.
4. CONSIDERATION OF A PROFESSIONAL SERVICES AGREEMENT WITH
WILLDAN FINANCIAL FOR CITYWIDE PARK, OPEN SPACE AND TRAIL
ASSESSMENT DISTRICT FORMATION
Public Works Director Jonasson presented the staff report.
Jim McGuire with Willdan Financial was present to answer questions.
In response to Council Member Henderson, Mr. McGuire stated that "special
assessment district" and "assessment district" are two names for the same thing.
Council Member Henderson said that most residents support assessments but
Proposition 218 complicates the matter by requiring those who live closer to the
amenity to pay more due to their proximity, yet those who live further away may
use the facility or benefit more. Mr. McGuire said that the only way around that
Proposition 218 requirement is a tax that applies an equal amount to all property
owners. There is a general benefit provided by a city that must be quantified and a
special benefit involved. Council Member Henderson observed that Willdan's
challenge will be explaining this complex calculation to residents and conveying
that those properties in closer proximity to the benefit realize greater property
values because of their location.
Mr. McGuire said that in their initial 2009 study, more than 80% of the city would
be assessed that same amount — a small minority will have a lesser assessment.
As part of Willdan's proposal, Mr. McGuire said the Lou Edwards Group will do a
survey and it may result in the public favoring a tax (which requires a 2/3 voter
approval) rather than an assessment. Council Member Henderson confirmed that
there is one existing assessment district (Lighting & Landscaping) and two
proposed (parks /open space /trails plus the North La Quinta subdivisions'
perimeters). Council Member Henderson stated that she was comfortable
continuing with this process and examining the results as segments and surveys
are completed. Mr. McGuire said that the process can be halted at any step along
the way if results are unfavorable and the city would only pay for the services
rendered. He added that if residents favored a tax rather than an assessment,
Willdan would adjust to that and would provide the necessary services to bring it to
a June or November election.
Council Member Evans explained to the audience that the preliminary estimates for
the three zones included in Willdan's report are: Zone 1: $46.30 per year, Zone 2:
CITY COUNCIL MINUTES 5 JULY 3, 2012
$15.30 per year, and Zone 3: $0. Ms. Evans noted that the purpose of considering
assessments for parks /open space /trails is to reduce the city's $2 million deficit for
maintenance of these facilities.
Council Member Franklin said that she is up for reelection in November and would
not object to this issue being on the same ballot because it is a benefit to the city.
She objected to Mr. McGuire's statement that candidates may have a problem with
an assessment or tax on a November ballot. Council Member Franklin stated that
the public information plan is the most important component, and asked Mr.
McGuire to describe that plan. Mr. McGuire said that the results of the survey will
dictate public outreach. Outreach will be tailored but probably include mailers to
property owners, workshops, and an ad hoc committee if necessary.
Mr. McGuire said a city is somewhat limited in spreading information regarding an
assessment or tax. It cannot advocate. The Lou Edwards Group will assist with
materials, but it will be up to city staff and city council to work on public relations
because residents don't respond to consultants telling them what should be done.
Mr. McGuire cautioned that council members advocating for a tax or assessment as
an individual would have to be very careful to make it clear that they are not
speaking as a public official.
Council Member Osborne asked for clarification of the definition of a park because
the 2009 Willdan report includes La Quinta High School, a school administration
building and some school sites that are in, the City of Indio. Mr. McGuire said that
the definition is any property designated by the city as park /open space /trail.
In response to Council Member Osborne, Mr. McGuire said that the costs will be
the net amount, i.e. the operating, maintenance and capital improvement costs less
the fees and revenues received. Council Member Osborne noted that according to
Willdan's 2009 study, the benefit zones include all of La Quinta except an area
east of Madison Street. Mr.. McGuire confirmed and added. that any public
recreation property that the city maintains should be listed in the park/ open space/
trail inventory. Mr. McGuire explained that an assessment is based on the benefit
to the property; it does not take into account the property owner's use of the
public facility or the number of people living on the property. An assessment is
based on the land use of the property and its proximity to the improvements or
facilities. Council Member Osborne said that he recognizes the city has a hole to
fill regarding parks budget, but feels the assessment based on proximity to a park
will be a difficult sell, especially since the value of homes have decreased
significantly. Mr. McGuire stated that an assessment is based on the benefit to a
property, and by law cannot be based on the value it adds to a property.
In response to Council Member Henderson, Council Member Osborne said that he
has a problem with the assessment concept, and does not believe residents would
CITY COUNCIL MINUTES 6 JULY 3, 2012
support it. He stated that he would not have a problem supporting a special tax
that is evenly charged to all properties, although the amount of that tax would have
to be discussed.
Council Member Henderson said that similar to school funding, residents would
have to realize that parks, trails, pools, etc. improve the quality of life of the whole
community, whether you're situated behind gates or not.
In response to Council Member Franklin, City Attorney Jenson and Mr. McGuire
explained that an assessment district vote can be done by mail -in ballot and
requires, 50% approval weighted by dollar amount. A special tax dedicated to
funding only parks /open space /trails requires 2/3 voter approval, and this can be
brought to the electorate at any June or November election. A general tax, which
is an increase to city revenues for any general purpose, requires 50 % +1 voter
approval and must be on the ballot of a general election in which one or more
council seats are also on the ballot. Council Member Osborne added that increases
in the sales tax and /or the transient occupancy tax are also options.
Council Member Evans summarized the assessment and tax options available to
Council and noted that in either case, an analysis is needed to determine the dollar
amount.
City Manager Spevacek offered to lay out in detail a menu of the options available
to Council before they move ahead with this assessment item or the other
assessment item on this agenda regarding the north La Quinta subdivisions'
perimeter assessment.
Mayor Adolph agreed that significant questions and issues have been raised and
asked staff to return with a report addressing these issues and one that included a
definitive recommendation. Council concurred.
CONTINUED TO AUGUST 7, 2092.
5. CONSIDERATION OF APPOINTMENT OF VOTING DELEGATE AND
ALTERNATE TO THE 2012 LEAGUE OF CALIFORNIA CITIES ANNUAL
CONFERENCE
MOTION — A motion was made by Council Members Franklin /Osborne to appoint
Council Member Henderson as the City of La Quinta voting delegate and to appoint
Mayor Adolph as the alternate voting delegate to the 2012 League of California
Cities Annual Conference to be held September 5 -7, 2012. Motion passed
unanimously.
CITY COUNCIL MINUTES 7 JULY 3, 2012
6. MOVED FROM CONSENT CALENDAR #5 TO BUSINESS #6 FOR
DISCUSSION: APPROVAL OF A REQUEST FOR PROPOSALS FOR THE
PREPARATION OF THE PRELIMINARY ASSESSMENT FORMATION REPORT
FOR SEVERAL NORTH LA QUINTA SUBDIVISIONS CURRENTLY RECEIVING
SPECIAL BENEFIT
In response to Council Member Osborne, Public Works Director Jonasson and
Council Member Henderson provided the history of these subdivisions, the reason
they had no homeowners association to manage the perimeter common areas, and
why they have not been paying for the service for many years.
City Attorney Jenson informed Council that forming an assessment district is the
only viable means to recoup the cost because forming a homeowners association
to manage the subdivision's common areas would require one hundred percent
approval, which is very unlikely. Council Member Henderson provided detail on the
history of Council decisions regarding these subdivisions that lead to the current
deficit situation.
Council Member Osborne suggested that this item be combined with the parks
assessment item and brought back to Council with a menu of options. Council
concurred.
CONTINUED TO AUGUST 7, 2012.
STUDY SESSION
1. DISCUSSION OF SILVERROCK RESORT VISION AND OPTIONS
Economic Development /Housing Manager Powell presented the staff report.
Public Speaker: Dick Hughes, La Quinta - Mr. Hughes provided the development
project background for his client, Discovery Land, which has been involved in the
development of Madison Club and Hideaway in La Quinta, the Thermal race track,
and resorts in Bermuda, Maui and Mexico. Mr. Hughes said that everything this
developer does is top of the line and he believes this team would bring something
new and bring the highest and best level to La Quinta. They have preliminary
layouts and hope to work with the city to begin work on a deal. Mr. Hughes added
that Discovery Land has the money.
Public Speaker: Brian Adler - Mr. Adler of Beverly Park Development Group
presented his development background and his company's concept for SilverRock.
He stated the timing is right for them and that his company has no need for city
bonding or city help. Mr. Adler stated that he has lined up the right partner, the
right financial capabilities, a world -class architect, and is negotiating with the best
CITY COUNCIL MINUTES 8 JULY 3, 2012
contractor in the desert, Turner Construction. He hopes to present the project
storyboards to Council. Mr. Adler stated that his company has the money to do
the project properly.
Mayor Adolph stated that he is very anxious to see quality, revenue - producing
development at SilverRock.
Council Members questioned components of Mr. Adler's concept.
Council Member Franklin said that SilverRock is a very important part of the city's
financial future; it is incumbent upon Council to select a use that is both beautiful
and one that works financially. Ms. Franklin noted that she would not want a
discount hotel on the site. She indicated that a developer with fresh new ideas is
needed. The original plan was a good one and she still supports it.
Council Member Osborne said the vision for SilverRock has not changed. The
difference now is the absence of a Redevelopment Agency which means the city is
not going to contribute financially. A developer who has the wherewithal to do it
all and provide a place for all ages is necessary.
Council Member Henderson stated she is excited about the interest shown now.
Council worked long hard hours on that plan and it is a terrific plan. She said the
emphasis has to be on generating revenue but the plan will have to be flexible in
case the golf course market does not exist. Ms. Henderson stated that the city
needs to be open- minded about other uses. She said she was not convinced that
the canal has to be moved and believes it may be incorporated in some way —
maybe as a river.
Council Member Evans said that she still likes the concept of the SilverRock plan
but has concerns about the two development concepts presented tonight because
both sound so high -end they would be out of her league as a working -class person.
She agrees with the elements in the plan; believes it need not be the highest, most
elite five -star hotel. Ms. Evans said that the development should include an adult
resort pool, a separate kids' pool /mini water park area, an auditorium or
amphitheater, music /dancing night club, and cigar bars, tapas bars or coffee bars.
Ms. Evans reminded Council of the trends analysis the city spent money on to look
at the trends moving forward. Trends included a generation that travels as a family
that wants to play nine holes of golf rather than eighteen because they want to do
other things together. It includes younger people with discretionary income for one
or two vacations per year and wish to pack a lot of activities into that time. Ms.
Evans said she believes these are the kinds of people who will utilize the place
more than the super elite. Ms. Evans agreed that a nice hotel is needed and a
convention /meeting space that is equivalent or greater in size than spaces available
in the valley. She noted that concepts presented had many of these components
CITY COUNCIL MINUTES 9 JULY 3, 2012
but needed to be inclusive of locals, families and "baby boomers" so that it
becomes the hot place to be.
Mayor Adolph observed that Council Members seem to all be on the same page on
this issue, and noted that he liked the idea of a multi -use theatre for entertainment
and special events.
In response to Mayor Adolph, City Attorney Jenson explained that the trailer bill
(re: dissolution of all redevelopment agencies) passed and a provision states that
once a city goes through its audit and does a reconciliation, the Department of
Finance will sign off which will permit La Quinta to use the 2002 bond proceeds
for their intended purpose.
Council directed staff to move forward and work with developers interested in
being partners with the City of La Quinta to develop the SilverRock property in
accordance with the Master Plan, the General Plan, and the Specific Plan.
REPORTS AND INFORMATIONAL. ITEMS
Coachella Valley Homeless Committee - Council Member Osborne reported that
Roy's Desert Resource Center budget was distributed, and a nonprofit foundation
has been established called Friends of Roy's Foundation, Inc.... This foundation will
provide a fresh outlook and have the, ability to apply for grants to support the
shelter operation.
Chamber of Commerce - Council Member Osborne reported that information was
exchanged on community development, SilverRock, and business signage. He
stated that the Chamber's membership is growing and it is operating in the black.
Greater Palm Springs Convention and Visitors Bureau - Council Member Evans
reported that the Bureau approved its budget and everything is looking good in the
hotel and tourism industry. The main topic was GoldenVoice, the special tax and
the impacts.
League of California Cities - Council Member Henderson reported that the
Government Performance and Accountability Act has qualified. She handed out
copies for council review and included her comments in blue. Ms. Henderson
warned Council that if this constitutional amendment passes, it's guaranteed that
city goals will have to be the same as the state's goals. Overriding argument is
solid, i.e. that the State needs certain corrective matters imposed, but no city
wants to be lumped in with the State or have these imposed on their city.
Coachella Valley Association of Governments (CVAG), Executive Board - Mayor
Adolph reported that a balanced 2012/2013 budget was adopted. Funds from the
CITY COUNCIL MINUTES 10 JULY 3, 2012
California Wellness Foundation were accepted and $50,000 will be given to Roy's
Desert Resource Center. Council Members joined to congratulate Mayor Adolph on
being appointed Vice Chair of CVAG Board of Directors.
Sunline Transit Agency — Mayor Adolph reported that a balanced budget was
approved. He said that the three -year short -range transit plan has been funded and
is moving forward. The new Palm Desert - Riverside bus line was approved and
funded for one year but its success is suspect according to Mayor Adolph because
it leaves Palm Desert at 4:45 a.m., stops in Cabazon at 6 a.m. (3 -4 hours before
the stores open) and gets into Riverside between 8 -9 a.m.
DEPARTMENT REPORTS
City Attorney Jenson reported that yesterday the Supreme Court ruled that the use
of Municipal funds by Charter Cities does not trigger the prevailing wage
requirement.
Planning Director Johnson reminded Council of the General Plan workshop date and
provided an update of the progress of the County in identifying the cause of the
odor in the California Bio Mass area.
MAYOR'S AND COUNCIL MEMBERS' ITEMS
Council Member Franklin stated that the scholarship set up by Coachella Valley
Economic Partnership is a great, ongoing legacy for the late City Manager Tom
Genovese.
PUBLIC HEARINGS — NONE
ADJOURNMENT
There being no further business, it was moved by Council Members Henderson/
Franklin to adjourn at 6:36 p.m. Motion passed unanimously.
Respectfully submitted,
Susan Maysels, Interi City Clerk
City of La Quinta, California
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