2014 07 29 CC MinutesCITY COUNCIL
MINUTES
SPECIAL MEETING
TUESDAY, JULY 29, 2014
A special meeting of the La Quinta City Council was called to order at 6:00 p.m. by
Mayor Adolph.
PRESENT: Councilmembers Evans, Franklin, Henderson, Osborne, Mayor Adolph
ABSENT: None
PUBLIC COMMENT ON MATTERS NOT ON AGENDA — None -
CLOSED SESSION
1. CONFERENCE WITH REAL PROPERTY NEGOTIATORS PURSUANT TO
GOVERNMENT CODE SECTION 54956.8 FOR PROPERTY LOCATED AT:
SILVERROCK RESORT (APNS 770-200-026; 776-150-021; 776-150-023;
770-060-056; 770-060-057; 770-060-058; 770-060-059; 770-060-061;
770-060-062; 777-490-004;* 777-490-006; 777-490-007; 777-490-012
AND 777-490-014);
AGENCY NEGOTIATOR: FRANK J. SPEVACEK, CITY MANAGER;
NEGOTIATING PARTIES: JOHN GAMLIN, MERIWETHER COMPANIES;
ROBERT S. GREEN, JR., THE ROBERT GREEN COMPANY;
UNDER NEGOTIATION: PRICE AND TERMS OF PAYMENT FOR
ACQUISITION AND/OR DISPOSITION OF THE PROPERTY IDENTIFIED.
2. CONFERENCE WITH REAL PROPERTY NEGOTIATORS PURSUANT TO
GOVERNMENT CODE SECTION 54956.8 FOR PROPERTY LOCATED AT:
EAST OF JEFFERSON STREET, SOUTH OF PALM CIRCLE DRIVE, AND
NORTH OF THE WHITEWATER STORMWATER CHANNEL (APNS 600-080-
001; 600-080-002; 600-080-003; 600-080-004; 600-080-005; 600-080-
006; 600-080-007; 600-080-008; AND 600-080-009);
AGENCY NEGOTIATOR: LES JOHNSON, COMMUNITY DEVELOPMENT
DIRECTOR;
NEGOTIATING PARTIES: JIM SNELLENBERGER, SNELLENBERGER FAMILY
INV. L.L.C.;
UNDER NEGOTIATION: PRICE AND TERMS OF PAYMENT FOR
ACQUISITION AND/OR DISPOSITION OF THE PROPERTY IDENTIFIED.
CITY COUNCIL MINUTES
JULY 29, 2014
COUNCIL RECESSED TO CLOSED SESSION A T 6:02 P.M.
MAYOR ADOLPH RECONVENED THE CITY COUNCIL MEETING AT
7:05 P.M. WITH ALL MEMBERS PRESENT. NO ACTIONS WERE
TAKEN IN CLOSED SESSION THAT REQUIRES REPORTING
PURSUANT TO GOVERNMENT CODE SECTION 54957.1 (BROWN
ACT).
Mayor Adolph led the audience in the pledge of allegiance.
PUBLIC COMMENT ON MATTERS NOT ON AGENDA — None
CONFIRMATION OF AGENDA — Confirmed
ANNOUNCEMENTS, PRESENTATIONS AND WRITTEN COMMUNICATIONS — None
CONSENT CALENDAR — None
BUSINESS SESSION — None
STUDY SESSION
1. PRESENTATION OF SURVEY RESULTS ON CITY SERVICES AND VIABILITY
OF A LOCAL SALES TAX MEASURE
Assistant to City Manager Chris Escobedo presented the staff report along with
consultants Adam Sonenshein of FM3 Research and Colleen Crowley of Lew
Edwards Group. The staff report and accompanying power point presentation is on
file in the City Clerk's office.
The Council concurred that a sales tax increase measure was necessary to maintain
the quality of life in the City, but they did not agree on when such a ballot measure
should be brought to the voters.
Councilmembers Henderson and Franklin and Mayor Adolph supported placing the
measure on the November 2014 ballot.
Councilmember Henderson explained that the drastic reduction in revenues ($10
million annually in La Quinta) resulting from the dissolution of redevelopment
agencies by the State was a permanent situation that created a new world of
finance for cities that could not be reconciled with small increases in transient
occupancy taxes or property taxes. She pointed out that expenses such as police
services continue to rise, and mandated expenses such as the prevailing wage law,
CITY COUNCIL MINUTES 2
JULY 29, 2014
steady CalPERS increases, a $10 million Bighorn Sheep fence and loss of sales
taxes on internet sales are inescapable. Ms. Henderson said three months was
enough time to educate the voters. She said it would be a big mistake to operate
off reserves for the next three years.
Mayor Adolph explained the assessment amounts paid by La Quinta residents
versus the much higher amounts paid by all other desert cities. He said the sales
tax increase was important to deal with now since it's known that a $700,000
shortfall is projected for next year and a $1.2 million shortfall the year after.
Councilmember Franklin said that Council was elected to make both the easy and
hard decisions and although this was a hard decision, the survey showed that
about 50% of residents are in support. She explained that voter education on the
matter can be done in three months because the electorate is smart and the
message should be short and sweet. . Ms. Franklin noted that in order to maintain
the City as is, Council was looking at a deficit next year and she did not believe
Council was elected to run the City at a deficit. She stated that a drawn-out
campaign was not effective, and that the only thing to lose by putting it on the
2014 ballot was perhaps a bit of credibility if it did not pass and they had to try
again in 2016. She said Council could not afford to gamble with the City's
reserves and there were strong community leaders ready to promote the sales tax
increase now.
Councilmembers Evans and Osborne supported placing the measure on the
November 2016 ballot.
Councilmember Osborne agreed that a sales tax increase. was needed for the
stability of the City but said the public needs time- to understand complex City
finances. He said that a proper education program needs more than three months.
Mr. Osborne urged Council to do it right the first time rather than lose in 2014 and
try again in two years with less credibility. He said the 2016 campaign must be
well orchestrated and start in a year or so.
Councilmember Evans reminded Council that once Council votes to put a measure
on the ballot, no promotional materials may be produced by the City. From that
point on, only explanations and ramifications of the measure may be provided to
the voters by the City. She noted that the survey shows that residents think the
City is doing fine; the situation is not desperate enough in the public's eye. Ms.
Evans expressed her support for a sales tax increase measure and her
acknowledgment of the need, but said there was no way to get the education
campaign done between now and November. She also said that the time to
conduct the education campaign was during the winter months when all residents
were in town. Although it is a gamble to wait until 2016, it is not worth taking the
risk of a NO vote now. Ms. Evans said that in the meantime, development is
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JULY 29, 2014
picking up; the City will work on economic development, attracting new
businesses, and marketing La Quinta as the 8% sales tax city in the Coachella
Valley.
In response to Mayor Adolph, City Manager Spevacek said that plans to address
the projected deficit for 2015/16 included an evaluation of police service levels and
using reserve funds to cover shortfalls.
PUBLIC SPEAKER: William Gertz -Cain, La Quinta — Mr. Gertz -Cain suggested that
if Council was to approve a sales tax increase, they should go for 1 % rather than
'/% or %% because it will be needed in the future and this should only be done
once. Mr. Gertz -Cain said he was against any type of tax increase but if it was to
go forward, Council should lay out in detail exactly what the revenue will be spent
on. He said that the SilverRock project cannot be sustained and should be sold off;
he was in favor of reevaluating police services; and agreed that an education
campaign could not be done in three months.
Council acknowledged that four affirmative votes were required in order to place a
sales tax increase measure on the ballot, and that it was clear the measure did not
have the support of four members at this time.
REPORTS AND INFORMATIONAL ITEMS — None
DEPARTMENT REPORTS — None
MAYOR'S AND COUNCIL MEMBER'S ITEMS — None
PUBLIC HEARINGS — None
ADJOURNMENT
There being no further business, a motion was made and seconded by
Councilmembers Evans/Franklin to adjourn at 8:29 p.m. Motion passed
unanimously.
Respectfully submitted,
SUSAN MAYSELS, Ci y Clerk
City of La Quinta, California
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JULY 29, 2014