2013 04 02 CC MinutesCITY COUNCIL
MINUTES
TUESDAY, APRIL 2, 2013
A regular meeting of the La Quinta City Council was called to order at 3:00 p.m. by
Mayor Adolph.
PRESENT: Councilmembers Evans, Franklin, Henderson, Osborne, Mayor Adolph
ABSENT: None
PUBLIC COMMENT - None
CLOSED SESSION
MAYOR ADOLPH READ THE CLOSED SESSION ITEM TITLES INTO THE RECORD.
COUNCIL RECESSED TO CLOSED SESSION AT 3:02 AM.
MAYOR ADOLPH RECONVENED THE CITY COUNCIL MEETING
AT 4:00 P.M. WITH ALL MEMBERS PRESENT.
Pursuant to Government Code Section 54957.1 (Brown Act), City Attorney Jenson
reported that the following actions were taken in Closed Session:
1. PURSUANT TO GOVERNMENT CODE SECTION 54957 — PUBLIC EMPLOYEE
DISCIPLINE /DISMISSAURELEASE
MOTION — A motion was made and seconded by Councilmembers Franklin/
Henderson to adopt the findings, conclusions and recommendations of Hearing
Officer David B. Hart thereby sustaining the layoff of Animal Control /Code
Compliance Officer I and direct the City Manager or his designee to inform the
parties of Council's action. Motion passed unanimously
2. CONFERENCE WITH CITY ATTORNEY, ANTICIPATED LITIGATION,
INITIATION OF LITIGATION PURSUANT TO GOVERNMENT CODE SECTION
54956.9 (c) (ONE MATTER)
MOTION — A motion was made and seconded by Councilmembers Evans /Franklin
to authorize Rutan and Tucker, LLP, attorneys at law, to file litigation against the
State of California, Departments of Finance and State Controller, relating to the
Department of Finance's determination letter dated March 28, 2013, requiring the
City of La Quinta to turn over $41,378,966 to the Successor Agency, and to
CITY COUNCIL MINUTES . 1 APRIL 2, 2013
include in the action, the naming of any necessary real parties -in- interest if the
Meet and Confer Process does not resolve the matter to the City Manager's
satisfaction. Motion passed unanimously.
City Attorney Jenson explained that the $41,378,966 are funds the City loaned to
the Redevelopment Agency. The State Department of Finance has determined that
this money is to be taken by the State because this loan was not made within the
first two years of the formation of the Redevelopment Agency. Ms. Jenson said it
is the taking of La Quinta taxpayer dollars from the general fund and turning it over
to State, County and other taxing agencies. Ms. Jenson offered to provide a copy
of the State's March 28, 2013 letter to anyone upon request. (A copy of this letter
will be included in the final agenda packet materials on file in the City Clerk's Office.)
Mayor Adolph led the audience in the pledge of allegiance.
PUBLIC COMMENT
Public Speaker: Carolyn Todd, La Quinta - Ms. Todd asked Council to use their
influence with the Air Quality Management District to get the green fence along
Washington Street, just south of the Catholic Church, taken down.
City Manager Spevacek said staff will investigate and report back.
CONFIRMATION OF AGENDA - Confirmed
- None
WRITTEN COMMUNICATIONS - None
APPROVAL OF MINUTES
MOTION - A motion was made and seconded by Councilmembers Henderson/
Evans to approve the minutes of March ,19, 2013 as submitted. Motion passed
unanimously.
CONSENT CALENDAR
1. SECOND READING AND ADOPTION OF ORDINANCE NO. 508, AMENDING
SECTION 13.24.030 OF THE LA QUINTA MUNICIPAL CODE PERTAINING
TO IMPROVEMENT STANDARDS
2. SECOND READING AND ADOPTION OF ORDINANCE NO. 509, AMENDING
THE LA QUINTA MUNICIPAL CODE, CHAPTER 9.60.300 (COMPATIBILITY
REVIEW FOR PARTIALLY DEVELOPED SUBDIVISIONS) TO ALLOW
CITY COUNCIL MINUTES 2 APRIL 2, 2013
GREATER FLEXIBILITY REGARDING THE REVIEW PROCESS FOR PARTIALLY
DEVELOPED SUBDIVISIONS - CASE NO: ZONING ORDINANCE
AMENDMENT 2013 -112
3. PROFESSIONAL SERVICES CONTRACT WITH HENSON CONSULTING
GROUP, LLC FOR PROGRAM AND STAFF DEVELOPMENT SERVICES
4. DEMAND REGISTER DATED APRIL 2, 2013
5. SPECIFICATIONS, ENGINEER'S ESTIMATE, AND ADVERTISEMENT FOR BID
OF THE CITYWIDE LANDSCAPE MAINTENANCE CONTRACT, PROJECT NO.
LMC 2012 -11
6. RESOLUTION AUTHORIZING THE CITY MANAGER TO ACCEPT THE
TRANSFER OF TEN PUBLIC USE PROPERTIES FROM THE SUCCESSOR
AGENCY TO THE CITY OF LA QUINTA [Resolution 2013 -0131
7. TRAFFIC SIGNAL MAINTENANCE AGREEMENT BETWEEN THE CITY OF LA
QUINTA AND THE CITY OF INDIAN WELLS
8. THIRD AMENDMENT TO THE SUNLINE JOINT POWERS TRANSPORTATION
AGENCY AGREEMENT
MOTION - A motion was made and seconded by Councilmembers Evans /Franklin
to approve the Consent Calendar as recommended, with Item No. 6 adopting
Resolution No. 2013 -013. Motion passed unanimously.
BUSINESS SESSION
1. RESOLUTION APPROVING THE PRELIMINARY ENGINEER'S REPORT FOR
LANDSCAPE AND LIGHTING ASSESSMENT DISTRICT 89 -1 FOR FISCAL
YEAR 2013/2014, AND A RESOLUTION DECLARING INTENT TO LEVY
ANNUAL ASSESSMENTS FOR LANDSCAPE AND LIGHTING ASSESSMENT
DISTRICT 89 -1, AND GIVING NOTICE THEREOF [Resolutions 2013 -014 and
2013 -0151
Public Works Director Jonasson presented the staff report, which is on file in the
City Clerk's Office.
Councilmember Osborne confirmed that an increase in the assessment would
require a favorable vote from 50 % +1 of all the property owners within the district.
In response to Mr. Osborne, Director Jonasson explained that the increase in the
agricultural levy listed in Table 2 of Willdan Financial Services (WFS) report is a
result of the reconciliation process applied by WFS.
CITY COUNCIL MINUTES 3 APRIL 2, 2013
In response to Mayor Adolph, Director Jonasson said that the park deficit will be in
the $1.5 to $1.7 million range. Mayor Adolph explained that the Landscape and
Lighting Assessment District (L &L AD) deficit [approximately $1.4 million] and the
park deficit [approximately $1.4 million] both come out of the city's general fund.
He asked City Manager Spevacek to outline options available to the city to address
the L &L AD deficit.
City Manager Spevacek explained possible solutions to the deficit in the L &L AD.
First, adopt the two resolutions on this agenda so it moves forward. Second, go
out to a vote of all property owners in the Assessment District requesting an
increase in their assessment from $36 per year to $47 per year, which would
require 50 %+ 1 approval to be enacted. Lastly, under Proposition 218, the city
can incorporate an annual CPI adjustment, a factor that was not included when the
District was established in the 1990s. City Attorney Jenson added that voting
method would be by mail ballot to District property owners.
Mayor Adolph said that Council has to examine ways to increase the L &L AD
revenues so that general fund reserves are not depleted year after year to sustain
the quality of maintenance provided. Mayor Adolph explained that the current
assessment of $35.60 was probably the lowest in the Coachella Valley. He said he
hoped that a vote on addressing a solution to the deficit would be brought to
Council in the near future so that the beauty and high quality of city medians
continues.
In response to Councilmember Evans, City Attorney Jenson said that if an increase
to the assessment does not pass, the annual assessment would remain at $35.60;
it would not drop to zero because the increase would be classified as a
"supplemental" amount.
Councilmember Henderson said that this issue has been thoroughly discussed by
Council and she is prepared to make the decision on putting the increase to a vote.
Councilmember Osborne said he believes it is time to make the L &L AD whole by
increasing the assessment on each property by $12 per year. He said the District
should pay for itself and it makes sense to maintain the landscaping and lighting
because it's known to increase La Quinta's property values. Mr. Osborne asked
that Council act soon to put this issue to a District vote, so that they are not
having this same discussion next year.
Mayor Adolph stated that Council is directing staff to return with a Business Item
report regarding a supplemental assessment to the Landscape and Lighting District
annual assessment so that revenues equal expenditures'.
CITY COUNCIL MINUTES 4 APRIL 2, 2013
MOTION - A motion was made and seconded by Councilmembers Evans/
Henderson to adopt Resolution No. 2013 -014 entitled:
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA QUINTA,
CALIFORNIA, APPROVING THE PRELIMINARY ENGINEER'S REPORT FOR FISCAL
YEAR 2013/2014 IN CONNECTION WITH LA QUINTA LANDSCAPE AND
LIGHTING ASSESSMENT DISTRICT 89 -1
MOTION - A motion was made and seconded by Councilmembers Evans/
Henderson to adopt Resolution No. 2013 -015 entitled:
A RESOLUTION OF THE CITY COUNCIL OF THE CITY. OF LA QUINTA,
CALIFORNIA, DECLARING ITS INTENTION TO LEVY THE ANNUAL ASSESSMENTS
FOR CONSTRUCTION, MAINTENANCE, AND SERVICING LANDSCAPING AND
LIGHTING IMPROVEMENTS WITHIN THE BOUNDARIES OF THE TERRITORY
INCLUDED IN THE CITYWIDE LANDSCAPE AND LIGHTING ASSESSMENT
DISTRICT 89 -1 AND TO LEVY AND COLLECT ASSESSMENT PURSUANT TO THE
LANDSCAPE AND LIGHTING ACT OF 1972 AND GIVING NOTICE THEREOF
STUDY SESSION
1. POLICE SERVICES REVIEW
City Manager Spevacek introduced the item and provided background. La Quinta
Police Chief Shouse and Assistant Chief Jimenez presented the report, which is on
file in the City Clerk's Office.
Chief Shouse and Assistant Chief Jimenez responded to Councilmembers regarding
accounting for Officers' hours charged to the city; effect of decreases in Officers in
surrounding cities; measuring mutual aid to other cities; police goal for 2013;
staffing level of patrols, motorcycle officers, School Resource Officers (SROs) and
Community Service Officers (CSOs); funding for SROs; estimated opening date of
the satellite station within fire station 93; the needs and recruitment for the
volunteer program known as Cops on Patrol (COPS); process and time involved to
check an arrestee into the jail; DUI checkpoints; monitoring of social media in
schools and effectiveness of SROs; relationship between police and private security
within country clubs; police coverage in specific areas of the city such as the Cove,
Highway 111 and north La Quinta; types of radios used; police website update;
and coverage during Coachella Fast and Stagecoach concerts.
Councilmember Evans suggested expanding the advertising and marketing for
Citizens on Patrol Officers to include details of qualifications desired, job
description with samples of tasks, age ranges accepted, etc.
CITY COUNCIL MINUTES 5 APRIL 2, 2013
In response to Councilmember Evans, Chief Shouse said that if cuts in funding
became necessary, it would affect staffing and service levels. He offered to
provide a list of recommended cuts in service should that happen.
Councilmember Henderson said it was good to hear about the COP outreach and
hoped Chief Shouse would find ways to streamline the background checks. In
response to Ms. Henderson, staff will calculate the cost of adding another COP
vehicle.
Councilmember Osborne noted that hiring CSOs to perform certain tasks that free
Officers for patrol was a good alternative to hiring Officers at the cost of $200,000
for salary, benefits, supplies, equipment, etc.
Councilmember Franklin said that public safety has always been the number one
issue in La Quints so she was happy to hear that La Quinta Police Chiefs believe
that the city has adequate police coverage. She said that public outreach has to
include instructions regarding home safety.
Mayor Adolph stated that the City Council has never turned any police request
down. The Chiefs concurred.
Public Speaker: Christine Jones, La Quinta - Ms. Jones said that she was very
grateful for the police patrols, but feels strongly that community involvement in
COPS or neighborhood watch is important.
Public Speaker: Spencer Cullster, La Quinta - read a statement from his father who
heads the Safe Neighborhood Association. In his letter, Mr. Cullster suggests that
a study be conducted as soon as possible to find alternatives to the expense of
hiring additional Officers. A petition supporting the need for additional patrols has
been submitted to the City and if needed, additional signatures can be added to the
150 presented.
Public Speaker: Alex Kua, La Quinta - Mr. Kua supports the study described by Mr.
Cullster and stated that he would feel safer with additional patrols.
Public Speaker: Hal Seay, La Quinta - Mr. Seay explained a code enforcement case
to which he is a party and asked Council to excuse his fine.
Councilmember Henderson said that the City Council has the authority and should
take the initiative to make any adjustments to the police contract that Council
deems necessary. She said she supports verification of the contract billing through
an audit of sorts. Lastly, she would like data on adding CSOs to the force.
CITY COUNCIL MINUTES 6 APRIL 2, 2013
2. SILVERROCK DEVELOPER INTEREST
City Manager Spevacek, Community Development Director Johnson and Business
Analyst Amy McCormick presented the staff report.
In response to Councilmember Franklin, City Attorney Jenson said that the public
use parcels could be relocated to an equivalent area because the parcel map was
drawn based upon a formula of the amount of taxable and other funds versus tax -
exempt funds. That proportion of taxable verses tax - exempt land must be
maintained, but the location and configuration of the parcels can be changed.
City Manager Spevacek responded to Councilmember Franklin by stating that the
2006 study showed that the existing SilverRock golf course would satisfy
approximately 200 rooms plus the public players.. If more than 200 rooms are
built, a second golf course would be needed. He noted that factors may have
changed since this 2006 study was done.
In response to Councilmember Franklin, Business Analyst McCormick said that the
multi - generational travelers, like all travelers, look for bargains but these folks are
setting funds aside for milestone trips and looking for a memorable, luxury
experience.
Councilmember Osborne said that La Quinta represents a high - quality, four- or five -
star experience. Director Johnson said La Quinta's image is at the four+ star
experience and visitors expect that in accommodations as well as the golf
experience. Mr. Osborne suggested that staff explore through the golf tourism
industry, the recommended size of a second golf course, i.e. 18- holes, or starting
with 9- holes.
In response to Councilmember Osborne, Business Analyst McCormick said that any
retail included on the site must serve both visitors and residents. She said that less
is spent per person now so retailers must increase the traffic through the area.
Director Johnson said that the Specific Plan allows for up to 160,000 square feet
of retail, but the three interested developers are proposing 50,000 to 80,000
square feet of retail.
In response to Councilmember Osborne, City Manager Spevacek said that
developers may be able to get financing for about 50% of the project and must
raise equity for the other 50 %. He added that there is no set way to finance a
hotel development anymore so development proposals must be examined for
reasonableness for capturing equity interest and lending interest. Some developers
have said that it will be three years before major investment groups provide
permanent and construction financing; success will depend upon the equity a
developer can bring to the table.
CITY COUNCIL MINUTES 7 APRIL 2, 2013
Regarding Councilmember Osborne's concern about transient occupancy tax (TOT)
revenue from condominiums within the development, City Manager Spevacek
explained that an extensive model and schedule of condo ownership, rental, HOA
fees and TOT revenue was included in the Disposition and Development Agreement
negotiated with the previous developer, and a similar arrangement would be
applicable today.
Regarding the desirability of one versus multiple developers for the available
acreage, City Manager Spevacek said that the market will change between the time
the development starts and final build out. The Specific Plan governs what is
developed there; changes to the Specific Plan are governed by the City Council in
response to the community. Mr. Spevacek said that the development becomes a
function of which developer the Council wishes to start out with, and if that
developer performs, it will be a group the Council will want to stay with for the
remainder of the development. Selecting a developer to start with will be a matter
of personal preference; the Council will have to feel comfortable and develop a
working relationship. In his opinion, Mr. Spevacek said that the first thing
developed there is the most critical because it will set the standard for everything
else to come. The question is which developer can set the standard desired, and
which developer can bring in the "flag" (i.e. well known, quality hotel). He said
that if no developer can deliver now, the city waits until the economy improves.
Councilmember Henderson provided additional historic background on the purpose
of purchasing SilverRock and the logic behind the maximum amount of retail square
footage in the plan. Ms. Henderson said that the answers to most questions raised
will only come when the city enters into an Exclusive Negotiation Agreement with
a developer — one who has a "flag" commitment. Ms. Henderson said that if no
developer comes forward with a commitment from a "flag," the city is jumping -the-
gun because the market is not ready. She said she believes the project can
accommodate both the high -end and the family market. She said the addition of a
second golf course will be market - driven based on the recovery of the golfing
industry. In conclusion, Ms. Henderson said that that the property needs a hotel, it
needs to produce TOT revenue and the Council needs to select one developer to
begin real discussions.
Councilmember Evans pointed out that revenue anticipated from the former
developer who intended to build about 1,160 rooms was $5 million /year from TOT
and sales tax. She said that current thoughts of a smaller flagship hotel with 100
to 700 rooms will produce less TOT revenue than originally anticipated. She said
that the "flag" hotel is critical along with the financing. Ms. Evans noted that La
Quinta lacks nightlife so it too, is a critical component of any development and
must be inclusive to both visitors and residents. Regarding the 160,000 square
feet of retail, Ms. Evans said she is not opposed to that amount because it includes
retail,. commercial, restaurant and gathering spaces. It will be critical to coordinate
CITY COUNCIL MINUTES 8 APRIL 2, 2013
the retail with Old Town so that it is complementary not duplicative. Ms. Evans
noted that the canal is a golf course issue, it does not impact the development and
she does not see it as a deal breaker. Although originally skeptical about the need
for another golf course, Ms. Evans said that based on her involvement with the
Convention and Visitors' Bureau, she is now convinced that it is a must -have.
Scholarships for golf are bigger than ever in schools and the SilverRock course is at
capacity. The second course will act as a draw to the volume of people needed for
the development to be successful. Ms. Evans said she is excited about the
development prospects and although the city is not in a hurry to proceed, it does
recognize the need for the revenue it would generate. The development can be
done in stages; the city has done all the hard work to produce the Specific Plan so
if one developer specializes in hotels and another in retail, then that should be
maximized.
Mayor Adolph said that it is important that a hotel is included, but equally
important is drawing the visitors and showing them a great time so they will return
often. The second golf course is vital because it is an incentive to come. The
public SilverRock course is booked during the season so hotel guests could not be
guaranteed a tee time there. Other incentives such as entertainment, retail and
restaurants for non - golfing family members is also important for success. The
complex must create an atmosphere that encourages repeat visits. Mr. Adolph said
it was time to select a developer who is financially able and one who can provide a
performance bond. Mayor Adolph said it was time to move forward.
Public Speaker: No name given - asked about a Specific Plan detail.
3. CITY COUNCIL GOALS FOR FISCAL YEAR 2013/2014
City Manager Spevacek presented the staff report, which is on file in the City
Clerk's Office.
Councilmember Henderson said the goals for fiscal year 2012 -2013 are very
extensive and suggested keeping those same goals and continuing to work on them
rather than adding new ones.
Councilmember Osborne said that public safety and quality of life goals are top
priorities. He noted that La Quinta does a phenomenal job of providing amenities to
residents, but one of the things the city needs to do is expand on its teen (youth
ages 13 -18) activities. Mr. Osborne proposed reallocating the $3 million for the
senior center expansion to a teen center on city property near the high school. He
asked that this be added as a City Council goal.
Councilmember Franklin requested that the "La Quinta brand" be identified in the
goals.
CITY COUNCIL MINUTES 9 APRIL 2, 2013
Councilmember Evans said the new objectives are very broad so she would like to
drill down to more specifics. Specifics should be action - oriented and provide detail
on how the goal will be accomplished. Ms. Evans said that she supports the goal
of enhancing the quality of life of the teenage group.
Mayor Adolph stated that he has four goals for the coming fiscal year - balance
the budget, move forward on SilverRock development, resolve the financial
situation with the state, and set guidelines to replenish reserves.
Councilmember Evans added that she would like to include a regional aspect of
economic development to the goals. Council concurred.
REPORTS AND INFORMATIONAL ITEMS
As La Quinta's representative for 2013, Councilmember Franklin reported on her
participation in the following organizations' meetings:
• Coachella Valley Economic Partnership
• Jacqueline Cochran Regional Airport Authority - Kristy Franklin elected Chair
As La Quinta's representative for 2013, Councilmember Osborne reported on his
participation in the following organizations' meetings:
• IID Energy Consumers' Advisory Committee
As La Quinta's representative for 2013, Councilmember Henderson reported on her
participation in the following organizations' meetings:
• Riverside County Transportation Commission
As La Quinta's representative for 2013, Mayor Adolph reported on his participation
in the following organizations' meetings:
• Sunline Transit Agency
DEPARTMENT REPORTS
1. CITY MANAGER
A. REPORT ON CURFEWS
Council briefly discussed the pros and cons of dropping the age level for the curfew
and /or extending the curfew hour. Assistant Police Chief Jimenez provided
additional information. Council made no change to the existing curfew.
2. COMMUNITY SERVICES DEPARTMENT
A. COMMUNITY OUTREACH MEETINGS
Councilmember Henderson congratulated the City Manager and staff on the
success of the community outreach meetings.
CITY COUNCIL MINUTES 10 APRIL 2, 2013
MAYOR'S AND COUNCIL MEMBER'S ITEM S
Mayor Adolph reported on positive comments from citizens regarding the new Fred
Waring Drive landscaping.
Mayor Adolph reported that the Rotary Club's "Strut Your Mutt" event in the park
was very successful.
Councilmember Franklin reported on her tour of the Convention and Visitors'
Bureau.
PUBLIC HEARINGS None
ADJOURNMENT
There being no further business, a motion was made and seconded by
Councilmembers Evans /Franklin to adjourn at 7:28 p.m. Motion passed
unanimously.
Respectfully submitted,
kKA
SUSAN MAYSELS, C y Clerk
City of La Quinta, California
CITY COUNCIL MINUTES 11 APRIL 2, 2013