2015 02 17 CC MinutesCITY COUNCIL
MINUTES
TUESDAY, FEBRUARY 17, 2015
A regular meeting of the La Quinta City Council was called to order at 3:30 p.m. by
Mayor Evans.
PRESENT: Councilmembers Franklin, Osborne, Pena, Radi, Mayor Evans
ABSENT: None
PUBLIC COMMENT ON MATTERS NOT ON AGENDA
PUBLIC SPEAKER: Bill Edgar, Palm Desert — Mr. Edgar said he is a volunteer with
CompassionandChoices.org promoting death with dignity, which addresses care and
choice at the end of life.
PUBLIC SPEAKER: Roger Kranz, Palm Desert — Mr. Kranz requested that the Council
consider permitting medical marijuana dispensaries in La Quinta for the convenience of
area patients and the sales tax revenue that will be beneficial to the City.
CLOSED SESSION
1. CONFERENCE WITH REAL PROPERTY NEGOTIATOR PURSUANT TO
GOVERNMENT CODE SECTION 54956.8 FOR PROPERTIES LOCATED IN
PROXIMITY TO CALLE TAMPICO AND AVENIDA LA FONDA, WEST OF THE
LA QUINTA PUBLIC LIBRARY AND WELLNESS CENTER (APNS: 770-123-
011, 770-123-012 AND 770-124-010)
CITY NEGOTIATOR: FRANK J. SPEVACEK, CITY MANAGER
NEGOTIATING PARTY: MARVIN INVESTMENTS, INC.
UNDER CONSIDERATION: POTENTIAL TERMS AND CONDITIONS OF
ACQUISITION AND/OR DISPOSITION OF PROPERTY
COUNCIL RECESSED TO CLOSED SESSION AT 3:43 P.M.
MAYOR EVANS RECONVENED THE CITY COUNCIL MEETING AT 4:90 P.M.
WITH ALL MEMBERS PRESENT. NO ACTIONS WERE TAKEN IN CLOSED
SESSION THAT REQUIRES REPORTING PURSUANT TO GOVERNMENT
CODE SECTION 54957.9 (BROWN ACT).
Mayor Evans led the audience in the pledge of allegiance.
PUBLIC COMMENT ON MATTERS NOT ON AGENDA
PUBLIC SPEAKER: James Stenson, La Quinta — Mr. Stenson thanked Mayor Evans
for her attendance at their February 13 Hadley Villas Senior Apartments event.
CITY COUNCIL MINUTES
FEBRUARY 17, 2015
PUBLIC SPEAKER: Robert Sylk, La Quinta — Mr. Sylk said he wished to direct the
Council's attention to the concern about a possible cancer cluster at the La Quinta
Middle School. He requested that the City encourage the school board to hire
independent investigators to thoroughly examine the matter.
PUBLIC SPEAKER: Ellen Marks, Indian Wells. — Ms. Marks, Director of the California
Brain Tumor Association, said that "dirty electricity" was the suspected cause of the
possible cancer cluster at the La Quinta Middle School. She said that 45 to 50 students
and teachers are known to be affected. She asked the Council to work with her
Association to get this resolved.
PUBLIC SPEAKER: Guadalupe Arvedondo, La Quinta — Ms. Arvedondo said her
daughter has had medical problems affecting her adrenal glands, ovaries, and
pancreas, which started soon after graduating. She asked the Council to support the
individuals trying to get answers out of the La Quinta Middle School authorities.
PUBLIC SPEAKER — Marlene Ortiz, La Quinta — Ms. Ortiz said she attended La Quinta
Middle School from 2001 to 2003. Three of her friends became sick and two have since
died of aggressive cancers. She stated that she also knows of two teachers who have
gotten sick, one of which has died, and asked the Council to assist in finding answers.
PUBLIC SPEAKER: David Senescu, Indio — Mr. Senescu said his wife was diagnosed
with stage three breast cancer at an early age and asked the Council for their support
and assistance in getting the problem investigated, diagnosed and treated. He asked
that elected officials represent residents on this matter.
PUBLIC SPEAKER: Rachel Roisum, La Quinta — Ms. Roisum, who attended La Quinta
Middle School, said she was diagnosed with thyroid cancer at age 22, yet had no family
history of cancer or thyroid issues. She said she hopes the Council will look into this,
find out what is going on, and push for an independent investigation.
PUBLIC SPEAKER: Roger Le Croix, La Quinta — Mr. Le Croix's son attended La
Quinta Middle School and played on the sports fields for an additional two years before
that. After five years on those fields, he was diagnosed with synovial sarcoma in his leg
resulting in amputation at age 13. Although Mr. Le Croix said he does not know what
caused his son's sarcoma, he believes that if there is even the slightest chance of
preventing illness and amputation, he suggests that the Council does anything they can.
Mayor Evans suggested that parents express their concern to the school board which
meets the first and third Tuesday of each month. She said she has no problem
reaching out to the school board to question the process or encourage further review,
but wanted residents to know that the Council has no jurisdiction over school board
matters.
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FEBRUARY 17, 2015
Councilmembers Franklin, Osborne, Pena and Radi thanked residents for bringing the
issue to the Council's attention and encouraged parents to bring the matter before the
school board at their next meeting.
CONFIRMATION OF AGENDA - Confirmed
ANNOUNCEMENTS, PRESENTATIONS AND WRITTEN COMMUNICATIONS
1. COUNTY SUPERVISOR BENOIT PROVIDED AN UPDATE ON THE COUNTY
OF RIVERSIDE'S OPERATIONS.
Supervisor Benoit provided an update on County operations and finances, after which
Councilmembers and Supervisor Benoit discussed the cities that would be included in
the proposed east Valley economic development effort; staffing and office space for an
east Valley economic development organization; Coachella Valley Economic
Partnership's involvement; and plans for the new County jail.
2. DAVID ARCHER, PRESIDENT OF THE LA QUINTA CHAMBER OF
COMMERCE, PRESENTED THE CHAMBER'S ANNUAL REPORT.
Mr. Archer presented a summary of the annual reports, after which Councilmembers
and Mr. Archer discussed business signage; cost and sponsorship of the proposed
Chamber information kiosk; plan for promoting the visitor center in City Hall; use of City
Hall on weekends; updating the Chamber's website; cross -marketing with various city
events; and adding the new visitor center location to the Greater Palm Springs
Convention and Visitors' Bureau's map.
CONSENT CALENDAR
1. APPROVE MINUTES OF FEBRUARY 3, 2015
2. APPROVE DEMAND REGISTERS DATED JANUARY 30 AND FEBRUARY 6,
2015
3. RECEIVE AND FILE REVENUE AND EXPENDITURE REPORTS FOR THE
MONTH OF JANUARY 2015
4. APPROVE FISCAL YEAR 2014/2015 MID -YEAR BUDGET ADJUSTMENTS
5. DENIAL OF CLAIM FOR DAMAGES FILED BY RICHARD AND KRISTEN
SIMONS; DATE OF LOSS — SEPTEMBER 8, 2014
6. DENIAL OF CLAIM FOR DAMAGES FILED BY RICARDO VEGA; DATE OF
LOSS — SEPTEMBER 8, 2014
CITY COUNCIL MINUTES 3
FEBRUARY 17, 2015
7. DENIAL OF CLAIM FOR DAMAGES FILED BY GUADALUPE ALVERIZ; DATE
OF LOSS — SEPTEMBER 8, 2014
8. DENIAL OF CLAIM FOR DAMAGES FILED BY DALE WISSMAN; DATE OF
LOSS — SEPTEMBER 8, 2014
9. APPROVE OVERNIGHT TRAVEL FOR PUBLIC WORKS DIRECTOR/CITY
ENGINEER TO ATTEND LEAGUE OF CALIFORNIA CITIES PUBLIC WORKS
OFFICERS INSTITUTE ON MARCH 25-27,2015
10. APPROVE CONTRACT CHANGE ORDERS AND SETTLEMENT
AGREEMENT WITH ARCH INSURANCE COMPANY, ACCEPT THE ADAMS
STREET BRIDGE PROJECT, AND APPROPRIATE FUNDS FROM
TRANSPORTATION DEVELOPMENT IMPACT FEES
Mayor Evans corrected a date on the minutes of February 3, 2015.
MOTION — A motion was made and seconded by Councilmembers Franklin/Radi to
approve the Consent Calendar as amended. Motion passed unanimously.
BUSINESS SESSION
1. APPROVE MEMORANDUM OF UNDERSTANDING AMONG KOHL'S
DEPARTMENT STORE, INC., ONE ELEVEN LA QUINTA, LLC, AND THE
CITY OF LA QUINTA FOR ADAMS STREET SIGNAL AND STREET
IMPROVEMENT PROJECT
Public Works Director Jonasson presented the staff report, which is on file in the City
Clerk's Office.
COUNCILMEMBER OSBORNE RECUSED HIMSELF AND LEFT THE DAIS
DURING DISCUSSION AND VOTE ON THIS MATTER DUE TO A BUSINESS
RELATIONSHIP WITH THE ENGINEERING FIRM NAI, WORKING ON THE
PROJECT.
MOTION — A motion was made and seconded by Councilmembers Pena/Radi to
approve a memorandum of understanding among Kohl's Department Store, Inc., One
Eleven La Quinta, LLC, and the City of La Quinta for the Adams Street Signal and
Street Improvement Project. Motion passed 4-0-1 (Osborne absent).
COUNCILMEMBER OSBORNE RETURNED TO THE DAIS.
STUDY SESSION
1. CONTINUED DISCUSSION OF CITY RESERVES POLICY
CITY COUNCIL MINUTES 4
FEBRUARY 17, 2015
Council waived presentation of the staff report.
Councilmember Osborne stated that the definition of "emergency" should be broadened
to include not just natural disasters, but other types of emergencies such as widespread
economic downturns. Since the emergency reserve fund has never been used, it's time
to redefine and reallocate. Mr. Osborne would like Council to consider reserve funds for
capital improvements and for economic development. He said the percentage amounts
of 10 percent for cash flow reserve and 40 percent for emergency (broadly defined)
reserve seemed reasonable. The economic stabilization reserve of 9 percent should be
relabeled economic development reserve to be used for such things as purchasing real
estate to further Village development and the 9 percent currently allocated should be re-
examined during Council's in-depth economic development discussion. Mr. Osborne
said that reserve funds for infrastructure, both replacement and maintenance, is a good
idea as well as one for retirement fund payments. He suggested that a portion of the
$10 million unappropriated funds be moved into an infrastructure reserve fund.
Councilmember Radi said his preference is to have fewer reserve fund categories so
that there is sufficient mobility for Council to easily reallocate funds. He suggested that
one reserve fund could be dedicated to economic development, capital improvements,
and infrastructure, and eliminate the "take-aways" reserve, moving that one percent
elsewhere. He agrees that the definition of "emergency" should be broadened. Mr.
Radi thanked the Investment Advisory Board for their report and accepts their
recommendation of 60 percent in total reserves. He said the allocation of that 60
percent must be flexible.
City Manager Spevacek said that historically, the City allocated money to reserve funds
to cover expenses when things went bad or to get through cash flow needs. He
explained that given growing costs as projected over future years, there will be limited
opportunities to replenish reserve funds in the future, so once the existing reserves are
spent, there will be limited opportunity to replenish the reserves. Mr. Spevacek asked
for clarification from the Council regarding their intention to use a portion of the 60
percent set aside for reserves for an economic development and infrastructure fund or
to allocate some portion of undesignated funds.
Councilmember Radi agreed that the City will have limited ability to replenish reserves
in the future and noted that because of this, he felt it was important to earmark funds for
specific uses rather than hold "undesignated" funds. He said that funds designated for
specific purposes will be easier to explain and be understood by residents.
Councilmember Franklin said that she supports expanding the definition of reserve
categories so the criteria for use are not so rigid. Ms. Franklin would like the "economic
stabilization" reserve fund changed to an economic development reserve fund, and
should funds be needed for economic stabilization, they could be drawn from the
broadly defined "emergency" reserve fund. Regarding the cash reserves, estimated to
be $11.6 million, Ms. Franklin said her priorities are (1) setting aside funds for a future
CITY COUNCIL MINUTES
FEBRUARY 17, 2015
parking structure to serve the Village, and (2) an ongoing, automatic capital
improvements fund or reserve.
Mayor Evans said that lowering the cash reserves by transferring more funds into
designated reserve funds was interesting. She noted that the consensus of Council
was to eliminate the "take aways" reserve fund. The "economic stabilization" reserve
could be broadened to "economic development stabilization" or unappropriated funds
could be used to start up an "economic development" reserve. Regarding setting up
one reserve fund for economic development and infrastructure, Mayor Evans said she
views them as very different, but both very important.
Councilmember Radi said that there should be mobility in reserve fund categories so as
not to tie the hands of this Council or future Councils. He clarified that this does not
mean that Councils should consider reserve funds spendable on anything but the
emergencies for which they were intended.
Councilmember Osborne offered a reminder that if Council is to recommend a sales tax
increase, they must be clear on the purpose of reserves. Mr. Osborne said that if the
City does not move forward with a sales tax increase, some agency, such as the State,
a transportation agency, or the Salton Sea Authority, will do so leaving out the City of La
Quinta. He said he would prefer for the City to receive the funds from a sales tax
increase rather than Sacramento or Riverside so that the City can control its use. He
noted that before asking the community for the increase, it must be clear how reserves
are to be used, the amount, and how the increased sales tax funds would fit in.
Regarding education on the need for a sales tax increase, Councilmember Franklin said
that it will be important to provide the public with a list of events that have popped up
that resulted in unexpected expenditures. She said that a sales tax increase was a hard
sell when it's believed everything is humming along smoothly. Ms. Franklin noted that
they would have to get beyond that superficial belief, especially given the large reserve
amounts, and explain the need. The list of unexpected expenses would help in this
education process.
Councilmember Pena said he agrees with suggestions made and added that a reserve
to cover public safety contract increases that Council knows are coming must be
considered. Mr. Pena explained his belief that the Reserve Policy should be re-
examined each year and adjusted as necessary. He said that he is confident that
adjustments and allocation made now will be revisited and.refined each year as needed.
Mr. Pena ended by saying he is comfortable with the suggestions and direction
discussed by the Council.
Mayor Evans summarized the consensus of Council by stating that there seemed to be
agreement to reduce the total cash reserves from 54.25 to 50 percent of annual
operating budget expenditures, with 40 percent allocated to a broadened definition of
"emergency" and 10 percent allocated to "cash flow." The remaining funds will be
added to the $10.2 million unallocated funds and staff will provide recommendations as
CITY COUNCIL MINUTES 6
FEBRUARY 17, 2015
to how those funds should be allocated among economic development, infrastructure,
etc.
City Manager Spevacek noted that if there is not significant growth in City revenue,
based on public safety costs, there may be limited funds to apply to other needs in the
Fiscal Year 2015/16 budget.
In response to Councilmember Osborne, City Manager Spevacek explained that no
funds have yet been budgeted for employee performance bonuses nor for any item that
may be agreed upon as a result of contract negotiations.
Councilmember Franklin stated that when providing data to explain the need for a sales
tax increase, it must be clear that it is not due to one single thing as there are multiple
anticipated and unanticipated needs. She said it was important for Councilmembers to
be relaying the same message and not get focused on only one item of need.
Finance Director Conrad stated that an annual contribution to each reserve fund the
Council decides to establish should be included in operating costs each year. This is
correct practice and will clearly show the use of funds and the need for additional
revenues.
REPORTS AND INFORMATIONAL
La Quinta's representative for 2015, Mayor Evans, reported on her participation in the
following organizations meeting:
• CVAG COACHELLA VALLEY CONSERVATION COMMISSION
• CVAG ENERGY & ENVIRONMENTAL RESOURCES COMMITTEE
La Quinta's representative for 2015, Councilmember Pena, reported on his participation
in the following organizations meeting:
• ANIMAL CAMPUS COMMISSION
• CVAG PUBLIC SAFETY COMMITTEE
DEPARTMENT REPORTS
Department Reports were received and filed. Copies are available in the City Clerk's
Office.
MAYOR'S AND COUNCIL MEMBER'S ITEMS
Councilmember Osborne requested a monthly department report on the status of the
SilverRock project.
Councilmember Radi said the joint Board and Commission meeting was very useful and
suggested that they occur more often than once a year.
CITY COUNCIL MINUTES 7
FEBRUARY 17, 2015
Councilmember Franklin said that Council is missing opportunities by not engaging
Board and Commissioners more because they are a great talent pool. She said that
should the Council go forward with a revenue enhancement plan, they should be
included as community ambassadors.
Mayor Evans announced that the next Walk with the Mayor and a few Councilmembers
will be February 21 at the La Quinta Park at 8:00 a.m.
Mayor Evans said that Riverside County Fire Chief John Hawkins contacted her with a
request from the Fire Department and Christopher Douglas' widow, Amy Douglas, to
consider dedicating Fire State No. 32 in the Cove to firefighter Christopher Douglas who
was killed in the line of duty on 1-10. She added that Christopher Douglas started his
firefighting career in La Quinta and always carried an attachment to the City. Mayor
Evans noted that Chief Hawkins said the Fire Department would cover any costs
associated with the dedication.
Mayor Evans explained that she was approached by GoldenVoice with an offer to
expand the City's art in public places with a ten-year loan of a giant metal roadrunner
piece for placement at the roundabout at Jefferson Street and Avenue 52. GoldenVoice
offered to deliver the sculpture if the City would provide the necessary pedestal for
mounting.
Councilmember Franklin suggested that if La Quinta was able to establish an art loan
program similar to that in Palm Desert, she would like to see art placement in areas
north of Highway 111.
PUBLIC HEARINGS — None
ADJOURNMENT
There being no further business, a motion was made and seconded by
Councilmembers Radi/Pena to adjourn at 6:31 p.m. Motion passed unanimously.
Respectfully submitted,
Digitally signed by City of La Quinta
DN: serialNumber=6fmhzhdhvfjz93cr, c=US,
zst=California, I—La Quinta, o=City of La
Quinta, cn—City of La Quinta
Date: 2015.03.18 07:53:19 -07'00'
SUSAN MAYSELS, City Clerk
City of La Quinta, California
CITY COUNCIL MINUTES 8
FEBRUARY 17, 2015