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2018 06 19 CC MinutesCITY COUNCIL MINUTES TUESDAY, JUNE 19, 2018 CALL TO ORDER A regular meeting of the La Quinta City Council was called to order at 3:30 p.m. by Mayor Evans. PRESENT: Councilmembers Fitzpatrick, Pena, Radi, Sanchez, Mayor Evans ABSENT: None PUBLIC COMMENT ON MATTERS NOT ON THE AGENDA - None CONFIRMATION OF AGENDA City Manager Spevacek requested to switch the order of the two presentations under Announcements, Presentations, and Written Communications portion of the meeting. Councilmember Radi said he would like to provide comments on Consent Calendar Item No. 14. Councilmember Radi said he would recuse himself from participation on Business Session Item No. 1 due to having been involved with negotiations on behalf of the City but had no financial interest or other conflict of interest in this matter. Council concurred. CLOSED SESSION 1. CONFERENCE WITH LABOR NEGOTIATORS PURSUANT TO GOVERNMENT CODE SECTION 54957.6; CITY DESIGNATED REPRESENTATIVE: CHRIS ESCOBEDO, COMMUNITY RESOURCES DIRECTOR; AND EMPLOYEE ORGANIZATION: LA QUINTA CITY EMPLOYEES ASSOCIATION COUNCIL RECESSED THE OPEN SESSION PORTION OF THE MEETING AND MOVED INTO CLOSED SESSION AT 3:32 P.M. MAYOR EVANS RECONVENED THE OPEN SESSION PORTION OF THE CITY COUNCIL MEETING AT 4:00 P.M. WITH ALL MEMBERS PRESENT CITY COUNCIL MINUTES Page 1 of 15 JUNE 19, 2018 REPORT ON ACTION(S) TAKEN IN CLOSED SESSION: City Attorney Ihrke reported the labor negations considered in Closed Session have concluded; and the terms and conditions of the agreement are up for Council consideration tonight under Consent Calendar Item No. 14. PLEDGE OF ALLEGIANCE Mayor Pro Tem Fitzpatrick led the audience in the pledge of allegiance. PUBLIC COMMENT ON MATTERS NOT ON THE AGENDA Mayor Evans encouraged the public to stop by and visit the history and incorporation of La Quinta exhibit located outside of the Council Chamber. PUBLIC SPEAKER: Mario Sewell, La Quinta - expressed concerns regarding the deployment of surveillance technology in the City and said written comments on this subject, signed by eight residents, were submitted to Council on June 19, 2018. The written communication was made publicly available at the Council meeting, and is on file in the Clerk's Office. fice. PUBLIC SPEAKER: Dick Mills, La Quinta - said he serves on the City's Financial Advisory Commission and spoke about the City's economic disaster reserves and the importance of ensuring the City has a disaster preparedness task force. PUBLIC SPEAKER: Alena Callimanis, La Quinta - said she is a Trilogy resident; and presented a power point presentation depicting the dust coming from the neighboring Andalusia residential development and the issues with the narrow road and bike lane along Avenue 60. PUBLIC SPEAKER: Maureen Byrne, Real Estate Agent with HK Lane Real Estate, Christie's International, La Quinta - spoke about the aesthetically unpleasing landscaping and appearance at Madison Street and Avenue 58, and along Avenue 60, as people approach the Trilogy residential community and the perceived negative impacts when attracting new home buyers and maintaining residents. PUBLIC SPEAKER: Dale Tyerman, La Quinta - said he was the Vice President of the non- profit Trilogy La Quinta Community Services organization which supports the La Quinta community through grants; thanked Mayor Evans and Councilmember Radi for attending the Trilogy residents' meeting on security concerns earlier today; spoke about the lack of landscaping along Madison Street and Avenue 60 and the safety hazards posed by the dirt and sand spill -over onto the road; said the lack of landscaping and road maintenance have had a negative financial impact on the Trilogy community; said the City gave the Drummond Company, Inc. leeway on the CITY COUNCIL MINUTES Page 2 of 15 JUNE 19, 2018 Andalusia development due to the economic downturn; and noted this nuisance has existed for approximately 13-14 years and it has been long enough. On behalf of the Trilogy residents, Mr. Tyerman asked Council to address the following items in order to rectify this situation for the Trilogy community: • Direct the City Attorney and Staff to complete an analysis to determine the current obligations of the City, Andalusia, and others, to complete the landscaping and road improvements along Avenue 60, between Madison and Monroe Streets, and the portions of Madison Street north of Avenue 60; • Direct the City Attorney and Staff to determine all potential courses of action to resolve the current problem; • Direct the appropriate City authorities to determine the aesthetic, health, and safety implications of the current situation, and to provide input to the Council on how to immediately resolve these pressing problems; and • To schedule on the first available Council agenda discussions of the findings on the three items listed above and determine appropriate City action to resolve Trilogy's problems. Mr. Tyerman thanked Council for their time and consideration tonight; said the issues have been ongoing for over 13 years and need immediate resolution. Mayor Evans said additional written communication on this subject was provided to Council via email. PUBLIC COMMENT - WRITTEN COMMUNICATIONS: Mr. Michael Harrington, Rancho Mirage - submitted written communication recommending that the City adopt a code of ethics over and above the minimum state laws, which are on file in the Clerk's Office. ANNOUNCEMENTS, PRESENTATIONS, AND WRITTEN COMMUNICATIONS THE ORDER OF THE PRESENTATIONS WAS SWITCHED AT CONFIRMATION OF AGENDA 2. CERTIFICATE OF RECOGNITION TO LA QUINTA HIGH SCHOOL BASEBALL FOR CALIFORNIA INTERSCHOLASTIC FEDERATION ACHIEVEMENT Mayor Evans and Councilmembers presented the La Quinta High School Varsity Baseball Team with a certificate of recognition for its California Interscholastic Federation achievement, which was accepted by Assistant Principal Michael Magnera, Assistant Principal Sean Webb, Head Varsity Coach Brian Wisler, and several team members. CITY COUNCIL MINUTES Page 3 of 15 JUNE 19, 2018 1. GREATER PALM SPRINGS CONVENTION AND VISITORS BUREAU UPDATE (CVB) President/CEO Scott White of the Greater Palm Springs CVB reported on the CVB's accomplishments over the past year. CONSENT CALENDAR 1. APPROVE MINUTES OF SPECIAL JOINT STUDY SESSION MEETING OF THE CITY COUNCIL AND PLANNING COMMISSION DATED MAY 30, 2018 2. APPROVE CHANGE ORDER NO. 2 TO CONTRACT SERVICES AGREEMENT WITH HORIZON LIGHTING, INC. FOR A ONE-YEAR EXTENSION FOR LIGHTING MAINTENANCE SERVICES OF THE LANDSCAPE AND LIGHTING ASSESSMENT DISTRICT 89-1 3. APPROVE CHANGE ORDER NO. 6 TO CONTRACT SERVICES AGREEMENT WITH CONSERVE LANDCARE, INC. FOR A ONE-YEAR EXTENSION AND INCREASE CONTRACT AMOUNT FOR LANDSCAPE MAINTENANCE SERVICES OF LANDSCAPE AND LIGHTING ASSESSMENT DISTRICT 89-1 4. APPROVE CONTRACT CHANGE ORDER NO. 3 TO CONTRACT SERVICES AGREEMENT WITH CONSERVE LANDCARE, INC. FOR A ONE-YEAR EXTENSION AND INCREASE CONTRACT AMOUNT FOR PARK LANDSCAPE MAINTENANCE SERVICES 5. REJECT ALL BIDS AND AUTHORIZE RE -ADVERTISEMENT OF THE HIGHWAY SAFETY IMPROVEMENT PROGRAM INTERSECTION IMPROVEMENTS PROJECT (PROJECT NO. 2016-01) 6. AWARD A CONTRACT TO CONSERVE LANDCARE, INC. FOR THE LA QUINTA LANDSCAPE RENOVATION IMPROVEMENTS PROJECT LOCATED AT THE ADAMS PARK RETENTION BASIN AND QUINTERRA DEVELOPMENT, ON THE NORTH SIDE OF MILES AVENUE, BETWEEN ADAMS STREET AND LOS MANOS DRIVE (PROJECT NO. 2016-03) 7. APPROPRIATE FUNDING AND AWARD A CONTRACT TO TRI-STAR CONTRACTING II, INC. FOR THE LA QUINTA HIGH SCHOOL AMERICANS WITH DISABILITIES ACT (ADA) IMPROVEMENTS PROJECT LOCATED ON THE WEST SIDE OF ADAMS STREET AT BLACKHAWK WAY (PROJECT NO. 2017-05) 8. APPROVE EXTENSION OF PROFESSIONAL SERVICES AGREEMENT WITH TERRA NOVA FOR CONTRACT PLANNING SERVICES 9. APPROVE CONTRACT SERVICES AGREEMENT WITH COMPLETE PAPERLESS SOLUTIONS FOR LASERFICHE SOFTWARE SUPPORT SERVICES CITY COUNCIL MINUTES Page 4 of 15 JUNE 19, 2018 10. APPROVE A MEMORANDUM OF UNDERSTANDING WITH DESERT SANDS UNIFIED SCHOOL DISTRICT FOR PARTIAL FUNDING OF ONE SCHOOL RESOURCE OFFICER 11. APPROVE DEMAND REGISTERS DATED JUNE 1, AND 8, 2018 12. EXCUSE ABSENCE FOR PLANNING COMMISSIONER CALDWELL FROM THE JULY 10, 2018 PLANNING COMMISSION MEETING 13. ADOPT RESOLUTION TO APPROVE BENEFIT ADJUSTMENTS FOR NON - REPRESENTED MANAGEMENT, CONTRACT AND CONFIDENTIAL EMPLOYEES [RESOLUTION NO. 2018-0331 14. ADOPT RESOLUTION TO APPROVE A MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF LA QUINTA AND LA QUINTA CITY EMPLOYEES' ASSOCIATION [RESOLUTION NO. 2018-0341 15. ADOPT ORDINANCE NO. 571 AT SECOND READING AMENDING TITLE 9 BY ADDING SECTION 9.50.100 AND AMENDING SECTION 9.60.100 OF THE LA QUINTA MUNICIPAL CODE RELATING TO STANDARDS FOR MODIFICATION OF EXISTING SINGLE-FAMILY DWELLINGS THAT RESULT IN ADDITIONAL BEDROOMS [ORDINANCE NO. 5711 Comments on Consent Calendar Item No. 14: Councilmember Radi commended everyone involved for the high-level of collaboration and involvement in the negotiations of the City's Memorandum of Understanding with the La Quinta City Employees' Association. Councilmember Pena said La Quinta's Staff is second to none in the Coachella Valley and thanked Staff for their service and dedication. Mayor Evans briefly explained the pay -for -performance evaluation system La Quinta uses; commended Staff for their efforts, service, and high-level of customer service; and said Staff was very much a family and Council would like to ensure La Quinta retains its strong employees and recognize their contributions. MOTION - A motion was made and seconded by Councilmembers Radi/Pena to approve the Consent Calendar as recommended, with Item Nos. 13 and 14 adopting Resolution Nos. 2018-033 and 2018-034, respectively, and Item No. 15 adopting Ordinance No. 571. Motion passed unanimously. CITY COUNCIL MINUTES Page 5 of 15 JUNE 19, 2018 BUSINESS SESSION COUNCILMEMBER RADI RECUSED HIMSELF AND LEFT THE DAIS DURING THE DISCUSSION AND VOTE ON BUSINESS SESSION ITEM NO. 1 DUE TO HAVNG BEEN INVOLVED WITH NEGOTIATIONS ON BEHALF OF THE CITY, BUT HAD NO FINANCIAL INTEREST OR OTHER CONFLICT OF INTEREST IN THIS MATTER. 1. APPROPRIATE $400,000 AND APPROVE A CONTRACT TO PURCHASE A MODULAR STRUCTURE FROM ALONGI EBENISTERIE ET CG, INC. FOR THE SILVERROCK EVENT SITE Management Specialist Ferreira presented the staff report, which is on file in the Clerk's Office. Council discussed installation of restroom facilities in the modular building. PUBLIC SPEAKER: Mark Johnson, La Quinta - said he serves on the City's Financial Advisory Commission and was speaking on behalf of the Commission. Mr. Johnson noted the Commission was preparing a letter of recommendation for Council to consider, which would be completed by the end of the week. He said the Commission's recommendation was to continue this item until Council has had an opportunity to consider all options and recommendations for the SilverRock Event Space project before moving forward. Council discussed inspecting the unit before finalizing the purchase; possible uses of the modular building at the SilverRock Event Space, as a temporary golf clubhouse or a golf pro -shop at SilverRock, or as a replacement of the temporary trailer City yard facilities; shade structure; purchasing the unit "as is" due to the great price discount; inquiring about warranty options; transportation costs; negotiating the progressive payment terms; the City's Economic Development Subcommittee's reviewed possibly purchasing this modular building, but at the time it was offered at full price, which made it financially not feasible; and utilizing FaceTime to inspect the building. MOTION - A motion was made and seconded by Councilmembers Fitzpatrick/Pena to appropriate $400,000 from the Land Acquisition Account and approve a Contract for the Sale of Goods with Alongi ebenisterie et CG, Inc. to purchase a modular structure to be used at the SilverRock Event Site; and authorize the City Manager to execute the agreement and make any non -substantive changes, including additional negotiations with regards to the structure's warranty, arrangements to visually verify the structure's condition, and renegotiate the progressive payment options. Motion passed: ayes 4, noes 0, absent 1 (Radi). COUNCILMEMBER RADI RETURNED TO THE DAIS AT 5:15 P.M. CITY COUNCIL MINUTES Page 6 of 15 JUNE 19, 2018 2. APPROVE CONTRACT SERVICES AGREEMENT BETWEEN COUNTY OF RIVERSIDE AND CITY OF LA QUINTA FOR ANIMAL SHELTER, FIELD AND LICENSING SERVICES FOR 2018/19 Public Safety Manager Mendez and Code Compliance Supervisor Meredith presented the staff report, which is on file in the Clerk's Office. PUBLIC SPEAKER: Lauren Youngs, La Quinta - spoke about challenges she experienced with the County of Riverside with regards to making payments for animal licenses and the lack of a streamlined and efficient process to obtain an animal license. PUBLIC SPEAKER: Frank Corvino, Deputy Director with Riverside County Animal Services - said he was not aware of the challenges mentioned tonight with obtaining animal licenses and would look into the particular situations; standard turn -around processing time for an animal license is 30 days; and the systems currently in place for processing animal licenses were the latest ones available in the industry. Council requested that Staff update "Exhibit C" of Attachment 1 - Animal Services Agreement to the staff report - page 2017 of the agenda packet or page 15 of the agreement, the last sentence under Section 3 - License Processing should accurately reflect the estimated amount of licensing fee revenue and be amended from $9,400 to $ 50,000. MOTION - A motion was made and seconded by Councilmembers Pena/Radi to approve Contract Services Agreement between the County of Riverside and City of La Quinta for animal shelter, field and licensing services for 2018/19, and authorize the City Manager to execute the agreement, as amended. Motion passed unanimously. 3. APPROVE MEMORANDUM OF UNDERSTANDING WITH GREATER COACHELLA VALLEY CHAMBER OF COMMERCE Marketing and Communications Coordinator Graham presented the staff report, which is on file in the Clerk's Office. President and Chief Executive Officer Joshua Bonner, IOM, with the Greater Coachella Valley Chamber of Commerce answered Council's questions with regards to holding an elections candidate forum; Taste of La Quinta event challenges, adding a jazz and wine component, evolving the brand - "Taste of La Quinta - Jazz and Wine Festival," event locations and dates, trademark; CareerBuilder Challenge mixer and golfers availability; State of the City events; Hot Rod and Custom Car Show possible change of venue; electronic newsletter and email distribution recipients; electronic notifications sign-up through Quail Mail; and the Gem's brand, current distribution, and expanding possibly expanding the distribution. CITY COUNCIL MINUTES Page 7 of 15 JUNE 19, 2018 MOTION - A motion was made and seconded by Councilmembers Radi/Sanchez to approve a Memorandum of Understanding with the Greater Coachella Valley Chamber of Commerce as recommended, and authorize the City Manager to execute the agreement. Motion passed unanimously. 4. INTRODUCE FOR FIRST READING AN ORDINANCE AMENDING CHAPTER 3.25 OF LA QUINTA MUNICIPAL CODE RELATED TO SHORT-TERM VACATION RENTALS (STVR) [ORDINANCE NO. 5721 Code Compliance Supervisor Meredith, Code Compliance Officer Escatel, and Management Specialist Mendoza presented the staff report, which is on file in the Clerk's Office. PUBLIC SPEAKER: John Reynen, La Quinta - said he has been a short-term vacation rental broker for over 50 years in several areas; the challenges La Quinta is trying to address are mainly caused by the management companies and not the renters; shared some short-term vacation rental experiences; and asked that Council look into the City's agreement with Legacy Villas and the terms for collection transient occupancy tax (TOT). PUBLIC SPEAKER: Jeremy Ogul, La Quinta - said he was speaking on behalf of Home Away which was largely supportive of the proposed ordinance amendments being considered tonight; thanked City Staff for their time and assistance in answering Home Away's questions and concerns; and asked Council to strike the amendments proposed under Section 3.25.060 D regarding limiting the number of STVR units in a given geographic area because it was ambiguous and the threshold was not clearly defined. PUBLIC SPEAKER: John Burns, La Quinta - spoke in opposition of Section 3.25.070 B which restricts the number overnight occupants and completely eliminates the number of daytime occupants above the number of allowed overnight guests; and suggested that Council consider incorporating language to exclude children under a certain age under this Section. PUBLIC SPEAKER: Todd Cahill, La Quinta - said he was representing an owner of 22 condominiums at the Legacy Villas community; said Legacy Villas was being advertised as a vacation resort which catered to families with children and grandparents because it was built for this purpose; and spoke in opposition of Section 3.25.070 B limiting the number of daytime and overnight guests. PUBLIC SPEAKER: David Dinnel, La Quinta - spoke in opposition of the amendments proposing to apply limits on the number of daytime and overnight guests. CITY COUNCIL MINUTES Page 8 of 15 JUNE 19, 2018 Council discussed the following: • Changing the word "may" to "will" on page 235 of the agenda packet, Section 3.25.090 E, line 3 of the paragraph; • Amending the timeframe under Section 3.25.060 E, on page 230 of the agenda packet, to include additional language at the end of the first sentence on line 2: "but no more than 60 or 45 days"; • Allowing sufficient time for Staff to inspect the units to ensure compliance; • Unexpected consequences and challenges with imposing geographical restrictions on the number of allowed STVR licenses under Section 3.25.060 D on page 230 of the agenda packet; establishing clear procedures and criteria that would spell out what would apply in making such determinations; • Adding to the ordinance a new Subsection 3.25.060 H stating that the specific review procedure and criteria for evaluating the limitations on STVR permits and permit applications as set forth in Subsection 3.25.060 D and any bedroom conversion limitations as set forth in Subsection 3.25.060 C would be adopted via a resolution; • Possibly using a similar approach, via adopting a resolution, to address the occupant restrictions, and making special allowances for children; • Any provisions in the ordinance requiring the adoption of a resolution would not be enforceable, even if the ordinance goes into effect, until Council adopted such resolution(s); • Resolutions go into effect immediately and could be amended if required to address any future challenges; and • Concerns and challenges with imposing parking restrictions on public streets under Subsection 3.25.070 K on page 233 of the agenda packet. PUBLIC SPEAKER: Gerald Ellerbusch, La Quinta - spoke in support of imposing on street parking restrictions on public streets and limits on the number of daytime and overnight occupants. Council discussion followed regarding: • The few ruining it for the many; • Making allowances for children under a certain age not counting towards the total number of allowed occupants; • This ordinance is a living document, which has changed, and will continue to change to address the needs of the community as they evolve, and make it as user- and business -friendly as possible; • Feasibility and challenges with imposing restrictions on communities that were built with catering to children and grandparents in mind and have been operating in this manner for many years; • Possibly implementing a monthly STVR permit option (30-days only) for home owners who wish to rent only during the festivals season, which might also help ensure compliance for folks who do just that and not an ongoing STVR; CITY COUNCIL MINUTES Page 9 of 15 JUNE 19, 2018 • Considering hiring Code Compliance Officers on a contract basis during the festivals season; • Considering the negative impacts of imposing restrictions on occupancy; • Full cost recovery for additional inspections by a code compliance officer under Subsection 3.25.050 D at 30-minute increments on page 228 of the agenda packet; • Special event permit requirements are triggered whenever the number of allowed occupants is exceeded; and • The proposed amendments were meant to empower Staff and give them the tools and ability to address the increasing number of complaints, non- compliance, and enforce the regulations. PUBLIC SPEAKER: Mark Panelo, President of Resort Home Destinations, PGA West - said the company has been operational since 2004 and always in compliance; and shared his experience with STVRs over the year, the services provided by his management company, and how he achieves compliance. Council discussion followed regarding: • The difference between denying and revoking a STVR permit; • STVR permits do not run with the land, but with the owner; • Challenges associated with taking away a STVR permit because of a property sale and placing the new owner at the end of a waiting list if that geographical area has been issued the maximum number of STVR permits allowed; • Monitor the enforceability of imposing restrictions on the number of STVR permits allowed within a geographical area and occupants allowed; • Adding language to the ordinance requiring the adoption of a resolution to provide specific guidelines and criteria for occupants, allowing some flexibility for children, and the number of STVR permits allowed within a geographical area; • Applicable federal and state constitutional and statutory laws on fair housing; • Proposed increased fines; • Taking into consideration the Legacy Villas component; • Proposing a range of occupancy that can be further defined subsequently via a resolution; • Recent amendments to Title 9 were related to STVR municipal regulations, but were not tied together; and • Effects on the "quality of life" of the La Quinta neighborhoods by allowing STVRs. PUBLIC SPEAKER: Melinda Travis, President of Legacy Villas at La Quinta - said Legacy Villas has a very efficient system that ensures compliance with occupancy; commended Staff for their efforts to enforce compliance and noted she has a lot of progress with owner accountability and therefore liability; asked that Council reconsider the response time and the rule of "three -strikes and you are out;" the fine schedule would deter a lot of the occupancy issues; asked Council to look into the City's Development Agreement with Legacy Villas and determine if these new CITY COUNCIL MINUTES Page 10 of 15 JUNE 19, 2018 regulations would impede Legacy Villas' ability to meet its mitigation obligations; applying TOT to the cumulative total amount paid by tenants, inclusive of all fees charged, above and beyond the nightly occupancy rate. Council reached a consensus and gave Staff direction to amend the proposed ordinance language to include the following: • Remove the permitted street parking restriction from Subsection 3.25.050 F and include language in the STVR Good Neighbor brochure to encourage parking only on the premises or street parking in front of the premises (page 228); • Keep the language allowing full cost recovery for inspections under Subsection 3.25.050 D (page 228); • Keep Subsection 3.25.060 D - ability to restrict the number of STVR permits within a specific geographical area (page 230); • Add Subsection 3.25.060 H requiring the adoption of a resolution to establish criteria for Subsections 3.25.060 D (criteria to restrict STVR permits) and 3.25.070 B (criteria to restrict STVR occupancy); • Amend Subsection 3.25.060 E to state that STVR applications may take at least 30 days to process, but no more than 45 days (page 230); • Change the occupancy requirements under Subsection 3.25.070 B to be comprised of the full chart, including 7, 8, and 9 number of bedrooms, and incorporate a range by eliminating the middle column, and adding language in the ordinance that allows for the range to be further defined via a resolution (page 231); • Amend Subsection 3.25.070 K to be consistent with the on -street parking requirements in Subsection 3.25.050 F (page 233); • Change the word "may" to "will" on line 3 of Subsection 3.25.090 E (page 235). PUBLIC SPEAKER: Berry Snowbarger, La Quinta - asked the Council to continue their discussion of this item at another time as members of the public were waiting to hear other items scheduled for consideration tonight. PUBLIC SPEAKER: Anita Marlow, La Quinta - suggested that Council consider assessing fines to the STVR occupants, not only the owners, in order to discourage disturbing and non -compliant behavior; and said on -street parking for STVR is only temporary and did not create the same footprint or have the same impact as a permanent resident would who lived on the premises full-time. Mayor Evans explained that such provisions were included in the STVR agreement. MOTION - A motion was made and seconded by Councilmembers Pena/Radi to continue this item to the July 3, 2018, Council meeting. MAYOR EVANS CALLED FOR A BRIEF RECESS AT 7:27 P.M. CITY COUNCIL MINUTES Page 11 of 15 JUNE 19, 2018 MAYOR EVANS RECONVENED THE COUNCIL MEETING AT 7:36 P.M. WITH ALL MEMBERS PRESENT 5. ADOPT RESOLUTIONS TO APPROVE FISCAL YEAR 2018/19 BUDGET AND ESTABLISH THE CITY'S APPROPRIATIONS LIMIT AND AMENDING CLASSIFICATIONS [RESOLUTION NOS. 2018-035 and 2018-0361 Finance Director Campos presented the staff report, which is on file in the Clerk's Office. MOTION - A motion was made and seconded by Councilmembers Pena/Fitzpatrick to adopt Resolution Nos. 2018-035 and 2018-036 approving the Fiscal Year 2018/19 Budget and establishing the City's appropriations limit and amending classifications, as recommended: Resolution No. 2018-035 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA QUINTA, CALIFORNIA, ESTABLISHING THE CITY'S APPROPRIATION LIMIT FOR FISCAL YEAR 2018/19 AND APPROVING A BUDGET FOR FISCAL YEAR 2018/19 Resolution No. 2018-036 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA QUINTA, CALIFORNIA, AMENDING THE CLASSIFICATIONS OF BUSINESS ANALYST TO ASSISTANT TO THE CITY MANAGER; MANAGEMENT ANALYST TO HUB MANAGER; AND VACATION RENTAL/LICENSE ASSISTANT TO MANAGEMENT SPECIALIST Motion passed unanimously. STUDY SESSION 1. SILVERROCK RESORT UPDATE Owner/President Robert Green and Project Manager John Gamlin with SilverRock Development Company (SDC) presented the staff report which is on file in the Clerk's Office, and provided an update on SDC's plans for the temporary golf clubhouse, project financing, construction of the master site hotels, shared conference facility, clubhouse, and Montage/Pendry branded residential units. Council discussed the proposed timing for the temporary clubhouse and mass grading of the site estimated to begin in November 2018. PUBLIC SPEAKER: Mark Johnson, La Quinta - spoke in support of the project and emphasized the importance to get it underway; and inquired about the permanent golf clubhouse estimated construction time schedule. Council congratulated and commanded Mr. Green for securing the financing for this project; as well as City Staff, staff from Landmark Golf Management LLP, and CITY COUNCIL MINUTES Page 12 of 15 JUNE 19, 2018 President/CEO Chris Herman with Herman Design Group on their time and efforts to maintain quality of services and operations at SilverRock. Council discussed the value of compromise and working together throughout this process; blending the Montage and Pendry brands with the SilverRock Event Site; potential amendments to the existing agreement to modify the schedule of performance based on the timeline presented tonight and align it with the financing component; possible challenges that may raise as certain milestones of the financing are completed, and the importance of balancing these modifications; perceived difficulties with keeping the public reassured during the site improvement process; estimated grading completion timeline of May 2019 is for the entire SilverRock site; vertical construction of the Montage residential models would be initiated first, followed by the permanent golf clubhouse and golf villas, which would occur prior to the May 2019 site grading; the Montage hotel and the conference and shared services facility would be completed last; use of separate contractors for the construction of the residential and commercial building. Council commended the high-level of collaboration that has occurred and said the development agreement was executed only four years ago, and since then the golf course has been fully realigned, the high-level golf experience has been maintained, the design of the SilverRock Even Site is progressing, and with the securing of the financing the rest of the development would be moving forward. PUBLIC SPEAKER Andy Vossler, President of Landmark Golf Management Co. - expressed his gratitude to all parties involved for their support, participation, and team efforts to focus on the object and ensure quality services. Council expressed unanimous support for the project. PUBLIC HEARINGS - After 5:00 P.M. 1. ADOPT RESOLUTION TO CONFIRM THE ASSESSMENT AND DISTRICT DIAGRAM FOR 2018/19 LANDSCAPE AND LIGHTING ASSESSMENT DISTRICT 89-1 [RESOLUTION NO. 2018-0371 Facilities Director Howlett presented the staff report, which is on file in the Clerk's Office. MAYOR EVANS DECLARED THE PUBLIC HEARING OPEN AT 8:38 P.M. PUBLIC SPEAKER: None MAYOR EVANS DECLARED THE PUBLIC HEARING CLOSED AT 8:38 P.M. CITY COUNCIL MINUTES Page 13 of 15 JUNE 19, 2018 MOTION - A motion was made and seconded by Councilmembers Radi/Sanchez to adopt Resolution No. 2018-037 as recommended: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA QUINTA, CALIFORNIA, CONFIRMING THE DIAGRAM AND ASSESSMENTS FOR FISCAL YEAR 2018/2019 LANDSCAPE AND LIGHTING ASSESSMENT DISTRICT 89-1 (PURSUANT TO THE LANDSCAPE AND LIGHTING ACT OF 1972) Motion passed unanimously. DEPARTMENTAL REPORTS All reports are on file in the City Clerk's Office. MAYOR'S AND COUNCIL MEMBERS' ITEMS Councilmember Sanchez will be attending the Veteran of the Year Recognition Luncheon in Sacramento, California, on June 21, 2018. Mayor Evans said the current vacancy on the Community Services Commission was due to absenteeism of the appointed Commissioner and asked Council to emphasize the responsibilities each Commissioner assumes once appointed to serve and the importance of attending and participating at each meeting as part of the interviews and appointments agenda item which will be coming up for Council consideration at a future meeting. Council concurred. Councilmember Radi reported on the Council's attendance at the La Quinta High School graduation ceremony. REPORTS AND INFORMATIONAL ITEMS La Quinta's representative for 2018, Mayor Evans reported on her participation in the following organization's meeting: • GREATER PALM SPRINGS CONVENTION AND VISITORS BUREAU La Quinta's representative for 2018, Councilmember Fitzpatrick reported on her participation in the following organizations' meetings: • CVAG COACHELLA VALLEY CONSERVATION COMMISSION • RIVERSIDE COUNTY TRANSPORTATION COMMISSION (RCTC) • SILVERROCK EVENT SITE AD HOC COMMITTEE La Quinta's representative for 2018, Councilmember Pena reported on his participation in the following organizations' meetings: • CVAG PUBLIC SAFETY COMMITTEE • JACQUELINE COCHRAN REGIONAL AIRPORT CITY COUNCIL MINUTES Page 14 of 15 JUNE 19, 2018 La Quinta's representative for 2018, Councilmember Radi reported on his participation in the following organization's meeting: • COACHELLA VALLEY ECONOMIC PARTNERSHIP La Quinta's representative for 2018, Councilmember Sanchez reported on his participation in the following organization's meeting: • LEAGUE OF CALIFORNIA CITIES — TRANSPORTATION & LABOR POLICY COMMITTEE ADJOURNMENT There being no further business, a motion was made and seconded by Councilmembers Radi/Fitzpatrick to adjourn at 8:57 p.m. Motion passed unanimously. Respectfully submitted, *&r V MONIKA RADEVA, Acting City Clerk City of La Quinta, California CITY COUNCIL MINUTES Page 15 of 15 JUNE 19, 2018