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2021 04 20 CC MinutesCITY COUNCIL MINUTES Page 1 of 20 APRIL 20, 2021   CITY COUNCIL MINUTES TUESDAY, APRIL 20, 2021 CALL TO ORDER A regular meeting of the La Quinta City Council was called to order at 3:00 p.m. by Mayor Evans. This meeting provided teleconferencing accessibility pursuant to Executive Orders N-25-20, N-29-20, N-33-20, N-35-20, and N-60-20 executed by the Governor of California, in response to the state of emergency relating to novel coronavirus disease 2019 (COVID-19) and enabling teleconferencing accommodations by suspending or waiving specified provisions in the Ralph M. Brown Act (Government Code § 54950 et seq.). PRESENT: Councilmembers Fitzpatrick, Peña, Radi, Sanchez, Mayor Evans ABSENT: None STAFF PRESENT: City Manager McMillen, City Attorney Ihrke, City Clerk Radeva, Assistant to the City Manager Villalpando, Design and Development Director Castro, Community Resources Director Escobedo, Public Safety Manager Mendez, Riverside County Sheriff’s Department Lieutenant Buompensiero, Acting Finance Director Martinez, Financial Services Analyst Hallick, Public Works Director/City Engineer McKinney. PUBLIC COMMENT ON MATTERS NOT ON THE AGENDA – None. CONFIRMATION OF AGENDA City Clerk Radeva said a typographical error on page 20 of the Agenda Packet under Consent Calendar Item No. 2 will be corrected to accurately reflect the date as April 13, 2021 instead of April 13, 2019. Councilmember Fitzpatrick requested to pull Consent Calendar Item No. 8 for a separate vote; and said she will recuse herself and abstain from discussion and vote on this item in an abundance of caution due to the perception of a potential conflict of interest stemming from the position she serves on the Riverside County Transportation Commission, and even though she does not receive a stipend, she is eligible to receive one for each attended meeting. Mayor Evans and Councilmember Sanchez requested to pull Consent Calendar Item No. 1 for a separate vote. Council concurred. CITY COUNCIL MINUTES Page 2 of 20 APRIL 20, 2021   CLOSED SESSION 1. THREAT TO PUBLIC SERVICES OR FACILITIES, PURSUANT TO SUBDIVISION (a) OF GOVERNMENT CODE SECTION 54957. CONSULTATION WITH: ALEXANDER JOHNSTON, SENIOR EMERGENCY MANAGEMENT COORDINATOR; WILLIAM H. IHRKE, CITY ATTORNEY (Review Continued Need and Response to Proclaimed State and Local Emergencies Caused by COVID-19) 2. CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION; SIGNIFICANT EXPOSURE TO LITIGATION PURSUANT TO PARAGRAPH (2) OR (3) OF SUBDIVISION (d) OF GOVERNMENT CODE SECTION 54956.9 (NUMBER OF POTENTIAL CASES: 1) 3. CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION; SIGNIFICANT EXPOSURE TO LITIGATION PURSUANT TO PARAGRAPH (2) OR (3) OF SUBDIVISION (d) OF GOVERNMENT CODE SECTION 54956.9 (NUMBER OF POTENTIAL CASES: 1) 4. CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION; SIGNIFICANT EXPOSURE TO LITIGATION PURSUANT TO PARAGRAPH (2) OR (3) OF SUBDIVISION (d) OF GOVERNMENT CODE SECTION 54956.9 (NUMBER OF POTENTIAL CASES: 1) 5. CONFERENCE WITH LABOR NEGOTIATORS PURSUANT TO GOVERNMENT CODE SECTION 54957.6; CITY DESIGNATED REPRESENTATIVE: CHRIS ESCOBEDO, DIRECTOR OF COMMUNITY RESOURCES; AND EMPLOYEE ORGANIZATION: LA QUINTA CITY EMPLOYEES’ ASSOCIATION MAYOR EVANS RECESSED THE OPEN SESSION PORTION OF THE MEETING AND MOVED INTO CLOSED SESSION AT 3:04 P.M. MAYOR EVANS RECONVENED THE OPEN SESSION PORTION OF THE CITY COUNCIL MEETING AT 4:04 P.M. WITH ALL MEMBERS PRESENT REPORT ON ACTION(S) TAKEN IN CLOSED SESSION: City Attorney Ihrke reported the following pursuant to pursuant to Government Code section 54950 et seq.(Brown Act):  CLOSED SESSION ITEM NO. 1 – no reportable action;  CLOSED SESSION ITEM NO. 2 – no reportable action; CITY COUNCIL MINUTES Page 3 of 20 APRIL 20, 2021    CLOSED SESSION ITEM NO. 3 – no reportable action;  CLOSED SESSION ITEM NO. 4 – Council will consider this item after the open portion of the meeting; and  CLOSED SESSION ITEM NO. 5 – no reportable action. MAYOR EVANS RECESSED THE CITY COUNCIL MEETING AT 4:05 P.M. TO CONDUCT THE HOUSING AUTHORITY SPECIAL MEETING MAYOR EVANS RECONVENED THE CITY COUNCIL MEETING AT 4:06 P.M. WITH ALL MEMBERS PRESENT PLEDGE OF ALLEGIANCE Councilmember Peña led the audience in the Pledge of Allegiance. PUBLIC COMMENT ON MATTERS NOT ON THE AGENDA PUBLIC SPEAKER IN-PERSON: Dorothy Dupree, La Quinta – said she has resided in the Point Happy neighborhood for 43 years; there is a neighbor who over the last year and a half has continuously stored household furniture and miscellaneous items in the front yard (photos provided as hand-outs, which were distributed to Council, made publicly available, and incorporated into the agenda packet); Code Compliance has been notified of this and has issued notices to the homeowner requesting corrective actions within a certain time- frame; the homeowner cleans up the front yard on the due date, however, two-days later the household items are back on display in the front yard; noted this type of behavior is inconsiderate of the surrounding residents, it is unsightly, and it affects property values; and requested that the City take corrective actions against the homeowner and issue fines that would deter future occurrences of this unpleasant behavior. At the request of Council, City Attorney Ihrke explained the regular process for achieving compliance with City regulations by providing a homeowner with a notice of violation and an opportunity to correct, followed by an abatement by the City if the matter is not corrected, and finally seeking an injunction from the court; in light of the established record that this is a reoccurring matter, the likely appropriate remedy would be to seek an injunction or other court order that would require continuous compliance. Mayor Evans requested that City Attorney Ihrke provide direction to Staff on available actions to remedy the matter and bring it back to Council or the City Manager for review and consideration. CITY COUNCIL MINUTES Page 4 of 20 APRIL 20, 2021   Council discussed the City’s currewnt process for abatement proceedings and placing a lien on the property to reimburse the City for incurred expenses related to the abatement. ANNOUNCEMENTS, PRESENTATIONS AND WRITTEN COMMUNICATIONS – None. CONSENT CALENDAR 1. pulled for a separate vote by Mayor Evans and Councilmember Sanchez >>> ADOPT ORDINANCE NO. 591 ON SECOND READING AMENDING CHAPTER 3.25 OF LA QUINTA MUNICIPAL CODE BY ADDING SECTION 3.25.055 RELATED TO NON-ISSUANCE OF NEW SHORT-TERM VACATION RENTAL (STVR) PERMITS AND SECTION 3.25.065 RELATED TO GROUNDS FOR DENIAL OF SHORT-TERM VACATION RENTAL PERMITS 2. APPROVE CONTRACT CHANGE ORDER NO. 2 WITH VINTAGE ASSOCIATES, INC. TO ADD ANNUAL LANDSCAPE MAINTENANCE SERVICES FOR THE SILVERROCK EVENT SITE 3. APPROVE AMENDMENTS NO. 1 TO AGREEMENTS FOR CONTRACT SERVICES WITH EARTH SYSTEMS PACIFIC AND CONVERSE CONSULTANTS FOR ON-CALL MATERIALS TESTING SERVICES 4. ADOPT RESOLUTION GRANTING CONDITIONAL APPROVAL OF FINAL TRACT MAP NO. 37730 AND ASSOCIATED SUBDIVISION IMPROVEMENT AGREEMENT FOR MONTAGE RESIDENCES, A RESIDENTIAL DEVELOPMENT LOCATED WITHIN THE SILVERROCK RESORT IN THE SOUTHWEST CORNER OF JEFFERSON STREET AND AVENUE 52 [RESOLUTION NO. 2021-012] 5. ADOPT RESOLUTION TO ACKNOWLEDGE RECEIPT OF RIVERSIDE COUNTY FIRE DEPARTMENT’S ANNUAL INSPECTION REPORT PURSUANT TO CALIFORNIA HEALTH AND SAFETY CODE SECTION 13146.4 [RESOLUTION NO. 2021-013] 6. APPROVE FISCAL YEAR 2021/22 THROUGH 2025/26 MEASURE A HALF CENT SALES TAX FIVE-YEAR CAPITAL IMPROVEMENT PLAN 7. APPROVE DEMAND REGISTERS DATED APRIL 2, AND 9, 2021 8. pulled for a separate vote by Councilmember Fitzpatrick >>> AUTHORIZE SUBMISSION OF A GRANT APPLICATION FOR THE CITY COUNCIL MINUTES Page 5 of 20 APRIL 20, 2021   RIVERSIDE COUNTY TRANSPORTATION COMMISSION SB 821 BICYCLE AND PEDESTRIAN FACILITIES PROGRAM CONSENT CALENDAR ITEM NO. 1 MOTION – A motion was made and seconded by Councilmembers Fitzpatrick/Radi to approve Consent Calendar Item No. 1 as recommended, adopting Ordinance No. 591 on second reading. Motion passed – ayes 4, noes 1 (Sanchez), abstain 0. City Clerk Radeva said a total of 58 WRITTEN PUBLIC COMMENTS related to Consent Calendar Item No. 1 were provided by the citizens listed in alphabetical order in Attachment 1, which were distributed to Council, made publicly available, and incorporated into the agenda packet and public record of the meeting. The following citizens, listed in the order in which they spoke, provided VERBAL PUBLIC COMMENTS VIA TELECONFERENCE ACCESSIBILITY related to Consent Calendar Item No. 1: 1. Jim Lambert (on behalf of Barbara Lambert as well) (La Quinta) – thanked Council for noting that the ability to rent homes in residential neighborhoods as STVRs is a privilege and not a right; explained the purpose for different zoning designations within a city is to identify pockets of similar activities; said the testimony received by Council verifies that STVRs have negatively impacted the public’s safety, health, and welfare in many residential neighborhoods, such as the Cove, North La Quinta, and PGA West due to the oversaturation of STVRs; and until such time that the City is able to regulate density of STVRs, no new STVR permits should be allowed. 2. Diane Reed (La Quinta) – said she used to reside in Santa Rosa Cove; STVR permits used to not be required and inquired what led the City to create the STVR program; said the stricter regulations are creating tension between those in support and opposition of STVRs; suggested the City eliminate STVR licenses and seek grant funding for affordable housing residential developments. 3. Rochelle Handy (La Quinta) – said she purchased a home in La Quinta with the intention to operate a STVR at the same time when the moratorium on new STVR permits was first put in place; made large investments to improve the property; and requested that homeowners who were in escrow when the moratorium went into effect be allowed to obtain a permit; in support of STVRs and lifting the moratorium on new STVR permits; 4. Arlene Gotshalk (La Quinta) – congratulated the City on the grand opening and ribbon cutting of the new SilverRock Event Site park; said CITY COUNCIL MINUTES Page 6 of 20 APRIL 20, 2021   she supports the moratorium on new STVR permits in residential zones; residential zones are not meant for commercial businesses and the current STVR density is excessively high; STVRs are commercial businesses and should not be allowed in residential neighborhoods; the ability to rent homes as STVRs is a privilege and not a right; and a density cap must be implemented before the moratorium is lifted. 5. Julian Preher (La Quinta) – has owned a home in La Quinta for 3 years; works as a flight attendant and rents her home as STVR while she is away working; she would not have been able to afford the home without this additional income; she has favorable relationship with all of her neighbors; has put in place devices that allow her to monitor the home while rented; STVRs are well maintained and bring business to the local community; and supports lifting the moratorium. 6. Darrel Adams (La Quinta) – said he is a developer, multiple homeowner, and a landlord; he does short- and long-term rentals; he purchased a property and made large investment to fix it up, but was not able to obtain a STVR permit due to the moratorium; his experience is that the long-term rentals have been more challenging than the short-term rentals; both short- and long-term rentals are both a business; STVRs promote La Quinta, and generate revenues for the community and the City; and supports the lifting the moratorium on new STVR permits. 7. Cynthia Appolito (La Quinta) – supports STVRs; has lived in Desert Club Estates since 2005 and has successfully operated a Homeshare; did not renew her STVR permit timely and has not been able to obtain a new one due to the moratorium; successful STVR operators should not be punished and not allowed to operate due to the few bad actors; supports lifting the moratorium on new STVR permits; government should allow HOAs to self-govern; and finds the “Neighborhoods are for Neighbors” signs hostile and offensive, and those residents unfriendly. 8. Denise Hefti (La Quinta) – has owned a home in the Cove since 2018 and successfully operated it as STVR; did not renew her STVR permit timely and has not been able to obtain a new permit due to the moratorium; switched to long-term rental and has been greatly impacted as this is her only income; she was cited and fined for operating as unlicensed STVR; La Quinta is a tourist destination; and supports STVRs and lifting the moratorium on new STVR permits. City Attorney Ihrke said pursuant to Council Resolution No. 2015-023 establishing the Rules of Procedure for Council Meetings, Section 7.3 – Reconsideration, any Councilmember who voted with the majority may move a reconsideration of any action at the same meeting, and if the motion to reconsider passes, then the original item may be reconsidered. CITY COUNCIL MINUTES Page 7 of 20 APRIL 20, 2021   MOTION – A motion was made and seconded by Councilmembers Radi/Fitzpatrick to reconsider Consent Calendar Item No. 1 related to adopting Ordinance No. 591 on second reading. Motion passed unanimously. MOTION – A motion was made and seconded by Councilmembers Radi/Fitzpatrick to approve Consent Calendar Item No. 1 as recommended, adopting Ordinance No. 591 on second reading. Motion passed – ayes 4, noes 1 (Sanchez), abstain 0. CONSENT CALENDAR ITEM NOS. 2 – 7 MOTION – A motion was made and seconded by Councilmembers Peña/Radi to approve Consent Calendar Item Nos. 2 – 7 as recommended, with Item Nos. 4 and 5 adopting Resolution Nos. 2021-012 and 2021-013, respectively. Motion passed unanimously. CONSENT CALENDAR ITEM NO. 8 COUNCILMEMBER FITZPATRICK SAID SHE IS RECUSING HERSELF AND WILL ABSTAIN FROM DISCUSSION AND VOTE ON CONSENT CALENDAR ITEM NO. 8 DUE TO THE PERCEPTION OF A POTENTIAL CONFLICT OF INTEREST STEMMING FROM THE POSITION SHE SERVES ON THE RIVERSIDE COUNTY TRANSPORTATION COMMISSION, AND EVEN THOUGH SHE DOES NOT RECEIVE A STIPEND, SHE IS ELIGIBLE TO RECEIVE ONE FOR EACH ATTENDED MEETING. MOTION – A motion was made and seconded by Councilmembers Peña/Radi to approve Consent Calendar Item No. 8 authorizing the submission of a grant application for the Riverside County Transportation Commission SB 821 Bicycle and Pedestrian Facilities Program. Motion passed - ayes 4, noes 0, abstain 1 (Fitzpatrick). BUSINESS SESSION 1. INTRODUCE FOR FIRST READING AN ORDINANCE AMENDING CHAPTER 3.25 OF LA QUINTA MUNICIPAL CODE BY ADDING SECTION 3.25.056 RELATED TO A LIMITED ADDITIONAL EXEMPTION TO NON-ISSUANCE OF NEW SHORT-TERM VACATION RENTAL PERMITS BY VOTER APPROVAL FROM THE VOTING MEMBERS OF A HOMEOWNERS ASSOCIATION FOR QUALIFYING RESIDENTIAL PROJECTS Design and Development Director Castro presented the staff report, which is on file in the Clerk’s Office. CITY COUNCIL MINUTES Page 8 of 20 APRIL 20, 2021   Council discussed HOAs would be able to submit a one-time application for exemption under the proposed code language; amending the language to allow HOAs to resubmit an application for exemption after a set period of time; HOAs have the ability to amend their CC&Rs and impose stricter regulations that those prescribed by the code; this code amendment would allow HOAs that are successfully operating STVRs and have minimum number of violations and citations to continue to do so if approved by their membership; Staff to provide standardized guidelines on the application process; allow time to evaluate the effects of Ordinance No. 591 imposing a permanent moratorium on new STVR permits and revisiting this exemption at a later time; the moratorium imposed by Ordinance No. 591 applies citywide, including PGA West, except for the specific exemptions outlined in the code; in order to apply for this proposed exemption to the moratorium, HOAs must provide the City with a certified simple-majority (50 plus 1) vote of its membership based on the voting requirements set forth by their individual CC&Rs; the HOAs must conduct a new vote of its membership in order to apply under this exemption; the need to add language in the proposed code clarifying that the HOAs membership vote shall occur following the effective date of the ordinance enacting this exemption; the application must be submitted by the Board of the HOA on behalf of its members pursuant to its CC&Rs, and not by individual homeowners; whether STVRs are allowed or not within an HOA should be the decision of the HOAs membership and not the government’s business; this code amendment would provide an opportunity for HOAs to petition the government to exempt them from the citywide moratorium and allow them to self-regulate if this is the will of its membership; this exemption creates a discrepancy in the restrictions imposed on residential zones between HOA and non-HOA communities; the STVR program metrics of success are currently arbitrary; and Staff is developing a STVR Program dashboard to define metrics. PUBLIC SPEAKER VIA TELECONFERENCE ACCESSIBILITY:  Jelena Tamm (La Quinta/Newport Beach) – said the moratorium imposed by Ordinance No. 591 is in essence a ban on STVRs because if a property that is currently operating as STVR is sold, the new owner is not eligible to obtain STVR permit; it is virtually impossible to obtain a 51% vote within the membership of an HOA, thus the requirements for the contemplated exemption are setting it up for failure; HOAs are different than non-HOA communities, as the owners who buy properties in HOAs understand that they are subject to the established HOA rules and regulations, there is cost associated with living in HOA, and HOAs generally have their own security, so not everything falls on the city; and out of the six HOAs in the City that allow STVRs, only PGA West has an issue and has reached out to the Council, the STVRs in the rest of the HOAs are operating successfully. CITY COUNCIL MINUTES Page 9 of 20 APRIL 20, 2021   MOTION – A motion was made and seconded by Councilmembers Radi/Fitzpatrick to have this item brought for Council review and consideration at a later time. Motion passed unanimously. 2. INTRODUCE FOR FIRST READING AN ORDINANCE AMENDING SECTIONS 14.16.040 AND 14.16.110 OF THE LA QUINTA MUNICIPAL CODE RESPECTIVELY RELATED TO UNAUTHORIZED ENCROACHMENT IN THE PUBLIC RIGHT-OF-WAY AND LIABILITY FOR DAMAGES [ORDINANCE NO. 592] City Clerk Radeva presented the staff report, which is on file in the Clerk’s Office. MOTION – A motion was made and seconded by Councilmembers Peña/Fitzpatrick to take up Ordinance No. 592 by title and number only and waive further reading. Motion passed unanimously. City Clerk Radeva read the following title of Ordinance No. 592 into the record: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LA QUINTA, CALIFORNIA, AMENDING SECTIONS 14.16.040 AND 14.16.110 OF THE LA QUINTA MUNICIPAL CODE RELATING TO UNAUTHORIZED ENCROACHMENTS IN THE PUBLIC RIGHT-OF- WAY AND LIABILITY FOR DAMAGES THEREFORE MOTION – A motion was made and seconded by Councilmembers Peña/Fitzpatrick to introduce at first reading Ordinance No. 592 as recommended. Motion passed unanimously. 3. INTRODUCE FOR FIRST READING AN ORDINANCE AMENDING THE LA QUINTA MUNICIPAL CODE BY REMOVING REFERENCE TO A “DARK SKY ORDINANCE” FROM SECTION 5.80.060 [ORDINANCE NO. 593] City Clerk Radeva presented the staff report, which is on file in the Clerk’s Office. Council asked the City Attorney to explain the purpose and reasons for having Chapter 5.80 related to Sexually Oriented Businesses as part of the La Quinta Municipal Code (Code) when there are no such businesses in the City of La Quinta. City Attorney Ihrke said this ordinance was adopted in 1995; the reason why cities usually adopt regulations related to sexually oriented businesses is because the United States Supreme Court has issued opinions deciding that nude or partially nude dancing is a form of expressive activity protected by the First Amendment rights to freedom of speech; however, case law does not CITY COUNCIL MINUTES Page 10 of 20 APRIL 20, 2021   preclude cities from regulating businesses where nude or partially nude activity may be occurring, which were more predominant in the 1990s; and it was in the best interest of the City to adopt regulations that would allow the City to regulate such activities. MOTION – A motion was made and seconded by Councilmembers Peña/Radi to take up Ordinance No. 593 by title and number only and waive further reading. Motion passed unanimously. City Clerk Radeva read the following title of Ordinance No. 593 into the record: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LA QUINTA, CALIFORNIA, AMENDING SECTION 5.80.060 OF THE LA QUINTA MUNICIPAL CODE REMOVING REFERENCES TO A DARK SKY ORDINANCE MOTION – A motion was made and seconded by Councilmembers Peña/Radi to introduce at first reading Ordinance No. 593 as recommended. Motion passed unanimously. 4. APPROVE AGREEMENT FOR LAW ENFORCEMENT SERVICES WITH THE COUNTY OF RIVERSIDE Public Safety Manager Mendez presented the staff report, which is on file in the Clerk’s Office. Council thanked the Law Enforcement Subcommittee comprised of two Financial Advisory Commissioners, City and Riverside Sheriff’s staff for their efforts and detailed analysis. Council discussed the reduction to 130 from 135 hours has not impacted the level of services; and metrics for the new Community Service Officers Work Reallocation Pilot Program, which La Quinta started in February 2021, are not yet available. Council commended the Riverside County Sheriff’s Department for their services in maintaining low crime rates and ensuring the safety of the community, generally quick response times, and for their professionalism and connection with the community. Council noted that Measure G has helped the City cover public safety services continuously rising costs. MOTION – A motion was made and seconded by Councilmembers Radi/Sanchez to approve agreement for Law Enforcement Services with the CITY COUNCIL MINUTES Page 11 of 20 APRIL 20, 2021   County of Riverside; and authorize the Mayor to execute the agreement as recommended. Motion passed unanimously. 5. RECEIVE AND FILE FISCAL YEAR 2020/21 THIRD QUARTER BUDGET REPORT AND APPROVE RECOMMENDED BUDGET ADJUSTMENTS Interim Finance Director Martinez presented the staff report, which is on file in the Clerk’s Office. Council discussed the unprecedented economic circumstances over the last year due to the pandemic; the financial support the City was able to offer its local businesses; thanked the local businesses for their resilience, the community for supporting the local businesses, and to staff for being fiscally diligent and prepared in managing the City’s revenues and expenses, which allowed it to be fiscal responsive during challenging circumstances. MOTION – A motion was made and seconded by Councilmembers Peña/Fitzpatrick to receive and file fiscal year 2020/21 Third Quarter Budget Report; and approve recommended budget adjustments as recommended. Motion passed unanimously. MAYOR EVANS CALLED FOR A BRIEF RECESS AT 6:23 P.M. MAYOR EVANS RECONVENED THE COUNCIL MEETING AT 6:49 P.M. WITH ALL MEMBERS PRESENT STUDY SESSION 1. REVIEW OUTSTANDING PENSION OBLIGATION FUNDING OPTIONS Financial Services Analyst Hallick presented the staff report, which is on file in the Clerk’s Office. Council discussed the benefits of paying down the City’s unfunded pension obligations up front and the savings that would be realized; expressed general support for paying down the outstanding balance and reviewing this annually as part of the budget adoption process; unfunded pension liabilities tend to be greater for cities with in-house public safety services due to higher retirement formulas and for older cities that have a larger number of employees under the Classic Tier versus the PEPRA Tier which increased the retirement age, reduced the pension percentage, and placed a cap on the maximum income eligible for retirement benefits; and that it is more advantageous for the City to make an extra payment to CalPERS towards its outstanding pension CITY COUNCIL MINUTES Page 12 of 20 APRIL 20, 2021   obligation instead of placing it in the City’s reserves; and the City’s pension reserve trust is fully funded based on the recommended target per the City’s reserve policy. Council reached a consensus and directed staff to maintain fiscal flexibility by retaining the current payment amortization plan, make additional annual payments to the outstanding pension obligations as determined by Council based on budget surplus, fund entirely Tier 2 and PEPRA Tier pension plans, and bring back this item as a Business Session for Council review and consideration to allocate an additional payment to be made for fiscal year 2020/21. 2. PROJECT UPDATE AND PRESENTATION FOR SILVERROCK RESORT REGARDING SCHEDULE, AND DEVELOPER PROGRESS AND PROCESS TO CURE DEFAULT City Manager McMillen presented the staff report, which is on file in the Clerk’s Office. PUBLIC SPEAKER: Robert Green, President & CEO of SilverRock Development Company (SDC) – gave a brief overview of the development status of the SilverRock project, including the stall in hospitality investments during COVID- 19; capital markets are returning to hospitality investments as the economy slowly reopens; construction materials cost increases and reduction in labor availability; the residential market is currently strong; and the hospitality market is beginning to recover and has a positive outlook. Mr. Green said SDC is committed to its obligations under the Purchase, Sale, and Development Agreement (PSDA), however, the PSDA needs to be amended to revise the Schedule of Performance (SOP) as it is outdated, which puts SDC in default; and spoke of the funds and efforts that have been invested in the project to date. Mr. Green said in order to move the project forward to vertical development SDC’s efforts are focused on finalizing and closing on an updated capital structure, and the SOP must be revised along with other modifications to the PSDA; Mosaic Real Estate investments remains committed to the project; additional property assessed clean energy (PACE) financing; and common and preferred equity investments. Mr. Green provided a detailed presentation of the completed improvements, sequence of activities on site, and anticipated timelines as related to each of the seven project components listed below:  Montage Hotel and Spa  Montage Residences  Conference Center and Shared Services CITY COUNCIL MINUTES Page 13 of 20 APRIL 20, 2021    Pendry Hotel  Golf Clubhouse  Pendry Golf Bungalows  Pendry Residences  Future Village and Future Residential (Project Areas 7, 8, and 9) – were placed on hold due to COVID-19 Mr. Green suggested the City consider SilverRock-specific City ordinance for STVR activities on the project site to ensure proper management by the hotels and timely and accurate TOT remittances to the City. Mr. Green showed a fly-over video showing digital renderings of the project at built-out, said the project is massive, it is fully designed, it has taken a long time to get here, and it will take time to complete construction, and SDC has the capital resources to move forward and is fully committed to see the project to fruition. Council thanked Mr. Green for the presentation; said it was long-awaited; the City remains strongly committed to the project and would like to see it move forward. General discussion followed regarding the importance to see construction on the project site; reasons for issuing the notice of default by the City; the decline in hospitality activities due to COVID-19; PACE financing; importance to work together; the development of guaranteed maximum pricing for the project’s components; unprecedented development and construction delays due to COVID-19; project’s SOP has been previously adjusted and additional time has already been granted; funding constraints and challenges with securing construction labor and materials due to overall increase of construction activities; importance of the residential components of the project; the project’s massive undertaking; the City and SDC remain strongly committed to execute the project and the notice of default is just part of the contractual relationship; and the benefits of having a single-management company for the STVR component. PUBLIC HEARINGS – None. DEPARTMENTAL REPORTS All reports are on file in the City Clerk’s Office. MAYOR’S AND COUNCIL MEMBERS’ ITEMS Mayor Pro Tem Radi said he serves on as Advisory Committee Member to the Board of Directors of Priority One Coachella Valley Palm Desert nonprofit organization; the organization’s efforts are to make the local Cal State San CITY COUNCIL MINUTES Page 14 of 20 APRIL 20, 2021   Bernardino satellite campus in Palm Desert an independent college; recently a website was launched, which includes a petition the organization is hoping people will sign urging state legislators and Governor Newsom to make Palm Desert campus a California State University; and asked Council for their support. Councilmember Peña noted that recently there have been several traffic congestions on Interstate-10 and suggested the City’s respective representatives on the Riverside County Transportation Commission and the Coachella Valley Association of Governments Transportation Committee bring this matter up for discussion to identify potential regional efforts that can be implemented to alleviate these issues. Councilmember Fitzpatrick commended the City’s Staff and contract landscape maintenance crew for their hard work and efforts to keep the City looking pristine and beautiful. Mayor Evans said the 29th Annual Senior Inspiration Award will air on Saturday, April 24, 2021, on NBC Palm Springs at 3:00 p.m. and feature the 2020 and 2021 honorees; every year, the County of Riverside and the Coachella Valley’s nine cities honor senior citizens 65-years of age and older who inspire others though their volunteerism and active engagement in the community; and Mr. Jeff Smith is the La Quinta’s honoree. Mayor Evans said she met with several junior Girl Scouts from different Coachella Valley cities at City Hall and conducted a “mini-mock council meeting.” Mayor Pro Tem Radi suggested the City explore opportunities to create a youth council and engage the community’s youth in participating in its local government. Mayor Evans said she is scheduled to participate on Channel 3 KESQ’s reporting by reporter Peter Daut on the economic impacts to each community and lessons learned from the pandemic featuring all nine Coachella Valley Mayors. Mayor Evans and Council reported on their attendance at the SilverRock Event Site Outdoor Exhibition grand opening and ribbon cutting on Saturday, April 17, 2021, and featuring exercise demonstrations, kite flying, arts and crafts activities, etc.; spoke of the importance of parks and the quality of life they bring to the community; and said perhaps a dog-agility park could be implemented at certain times. CITY COUNCIL MINUTES Page 15 of 20 APRIL 20, 2021   Mayor Evans said Josh Bonner, CEO of the Greater Coachella Valley Chamber of Commerce has resigned effective the end of April 30, 2021; and commended him for his efforts to help businesses deal with the economic effects of the pandemic, his service on the Riverside County Economic Recovery Task Force to keep businesses safe and open, and the critical role he played in the formation of the regional chamber five years ago, when the chambers of the cities of Indio, Coachella, and La Quinta were united; and said the City will recognize him for his dedication and service. REPORTS AND INFORMATIONAL ITEMS La Quinta’s representative for 2021, Mayor Evans reported on her participation in the following organizations’ meeting:  CVAG COACHELLA VALLEY CONSERVATION COMMISSION  CVAG ENERGY AND ENVIRONMENTAL RESOURCES COMMITTEE La Quinta’s representative for 2021, Councilmember Fitzpatrick reported on her participation in the following organization’s meeting:  RIVERSIDE COUNTY TRANSPORTATION COMMISSION (RCTC) La Quinta’s representative for 2021, Councilmember Peña reported on his participation in the following organization’s meeting:  CVAG PUBLIC SAFETY COMMITTEE La Quinta’s representative for 2021, Councilmember Sanchez reported on his participation in the following organization’s meeting:  LEAGUE OF CALIFORNIA CITIES – TRANSPORTATION, COMMUNICATION AND PUBLIC WORKS POLICY COMMITTEE CLOSED SESSION – Continued 4. CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION; SIGNIFICANT EXPOSURE TO LITIGATION PURSUANT TO PARAGRAPH (2) OR (3) OF SUBDIVISION (d) OF GOVERNMENT CODE SECTION 54956.9 (NUMBER OF POTENTIAL CASES: 1) COUNCIL RECESSED THE OPEN SESSION PORTION OF THE MEETING AND MOVED INTO CLOSED SESSION AT 8:36 P.M. MAYOR EVANS RECONVENED THE OPEN SESSION PORTION OF THE CITY COUNCIL MEETING AT 9.16 P.M. WITH ALL MEMBERS PRESENT CITY COUNCIL MINUTES Page 16 of 20 APRIL 20, 2021   REPORT ON ACTION(S) TAKEN IN CLOSED SESSION: City Attorney Ihrke said no actions were taken on Closed Session Item No. 4 that require reporting pursuant to the Brown Act (Government Code section 54950 et seq.). ADJOURNMENT There being no further business, a motion was made and seconded by Councilmembers Radi/Fitzpatrick to adjourn at 9:16 p.m. Motion passed unanimously. Respectfully submitted, MONIKA RADEVA, City Clerk City of La Quinta, California CITY COUNCIL MINUTES Page 17 of 20 APRIL 20, 2021   ATTACHMENT 1 to CITY COUNCIL SPECIAL MEETING MINUTES TUESDAY, APRIL 20, 2021 CONSENT CALENDAR ITEM NO. 1 ADOPT ORDINANCE NO. 591 ON SECOND READING AMENDING CHAPTER 3.25 OF LA QUINTA MUNICIPAL CODE BY ADDING SECTION 3.25.055 RELATED TO NON-ISSUANCE OF NEW SHORT-TERM VACATION RENTAL (STVR) PERMITS AND SECTION 3.25.065 RELATED TO GROUNDS FOR DENIAL OF SHORT-TERM VACATION RENTAL PERMITS A total of 58 WRITTEN PUBLIC COMMENTS were received from the citizens below listed in alphabetical order, prior to the adjournment of the meeting at 9:16 p.m., including any received during the live meeting, which have been distributed to Council, made publicly available, and incorporated into the agenda packet: In General Support of STVRs: 1. Airbnb (Toral Patel, Policy Manager) – support for STVRs and lifting the moratorium on new STVR permits; 2. Airbnb Team – support for STVRs and lifting the moratorium on new STVR permits; 3. Anonymous – supports STVRs; 4. Appolito, Cynthia and Anthony – support for STVRs and lifting the moratorium on new STVR permits; 5. Blacerby, Kirk and Carol – support for STVRs and lifting the moratorium on new STVR permits; 6. Brar, Tony – supports STVRs and lifting the moratorium on new STVR permits; 7. Calhoun, Tiffany – supports STVRs and lifting the moratorium on new STVR permits; 8. Chaine, Randie – supports STVRs and opposes the permanent moratorium on new STVRs; 9. Christopher, John (2 comments) – supports STVRs and opposes the permanent moratorium on new STVRs; 10. Crawford, Julia – supports STVRs and lifting the moratorium on new STVR permits; 11. David, Michael & Christine – support for STVRs and lifting the moratorium on new STVR permits; CITY COUNCIL MINUTES Page 18 of 20 APRIL 20, 2021   12. DeMarais, Charles – supports STVRs and opposes the permanent moratorium on new STVRs; 13. Depersio, Chris – supports STVRs and opposes the permanent moratorium on new STVRs; 14. Dow, David and Nancy – support for STVRs and lifting the moratorium on new STVR permits; 15. Dubin, Nancy – supports STVRs and opposes the permanent moratorium on new STVRs; 16. Eaves, Tanisha – supports STVRs and lifting the moratorium on new STVR permits; 17. Edwards, Roberta – supports STVRs and opposes the permanent moratorium on new STVRs; 18. Fairchild, Jason – supports STVRs and lifting the moratorium on new STVR permits; 19. Farris, Susan – supports STVRs; 20. Gerpheide, Suzanne – supports STVRs and opposes the permanent moratorium on new STVRs; 21. Giliam, Everett – supports STVRs and opposes the permanent moratorium on new STVRs; 22. Granger, Cary – supports STVRs and opposes the permanent moratorium on new STVRs; 23. Handy, Rochelle – supports STVRs and opposes the permanent moratorium on new STVRs; 24. Handy, Sarah – supports STVRs and opposes the permanent moratorium on new STVRs; 25. Katuls, Tiffany – supports STVRs and opposes the permanent moratorium on new STVRs; 26. Lux Rentals – supports STVRs and opposes the permanent moratorium on new STVRs; 27. Lynch, Megan – supports STVRs and opposes the permanent moratorium on new STVRs; 28. Lynch, Tommy – supports STVRs and opposes the permanent moratorium on new STVRs; 29. Manukyan, Ashot – supports STVRs and opposes the permanent moratorium on new STVRs; 30. Manukyan, Emma – supports STVRs and lifting the moratorium on new STVR permits; 31. McGrath, Elaina – supports STVRs and lifting the moratorium on new STVR permits; 32. Mitchell, Bill – supports STVRs and opposes the permanent moratorium on new STVRs, and additional STVR restrictions; 33. Mogan, Zach – supports STVRs and opposes the permanent moratorium on new STVRs; 34. Moon, Susan – supports STVRs and opposes the permanent moratorium on new STVRs; CITY COUNCIL MINUTES Page 19 of 20 APRIL 20, 2021   35. Pauls, Dwight – supports STVRs and opposes the permanent moratorium on new STVRs; 36. Peca, Sarah – supports STVRs and opposes the permanent moratorium on new STVRs; 37. Pruitt, David and Samantha – support for STVRs; 38. Reed, Diane – supports STVRs and opposes requirements for STVR permits; 39. Riding, Lisa – supports STVRs and opposes the permanent moratorium on new STVRs; 40. Sefyan, Amren – supports STVRs and opposes the permanent moratorium on new STVRs; 41. Skarvan, Kerry – supports STVRs and lifting the moratorium on new STVR permits; 42. Smylie, Kriss – supports STVRs and opposes the permanent moratorium on new STVR permits; 43. Spring, Richard – supports STVRs and lifting the moratorium on new STVR permits; 44. Taylor, Megan – supports STVRs and lifting the moratorium on new STVR permits; 45. Testa, Joe – supports STVRs and lifting the moratorium on new STVR permits; 46. Toal, Jim – supports STVRs and opposes the permanent moratorium on new STVRs; 47. Wampole, Spencer – supports STVRs and opposes the permanent moratorium on new STVRs; 48. Weiman, Trevor – supports STVRs and opposes the permanent moratorium on new STVRs; 49. Xavier Family – 50. Young, Nanette – supports STVRs and opposes the permanent moratorium on new STVRs; and 51. Zolt, Rod – supports STVRs and opposes the permanent moratorium on new STVRs. In General Opposition of STVRs: 52. Cutchin, Marcia (La Quinta) – opposes STVRs & supports a permanent moratorium; 53. Franco, Dianne (La Quinta) – thanked Council for introducing an ordinance for a permanent STVR moratorium; 54. Gotshalk, Arlene (La Quinta) – opposes STVRs and supports a permanent moratorium; 55. Lamber, Jim (La Quinta) – opposes STVRs and supports a permanent moratorium; 56. McGuire, Rod (La Quinta – opposes STVRs and supports a permanent moratorium; CITY COUNCIL MINUTES Page 20 of 20 APRIL 20, 2021   57. Montavon, Barbara (La Quinta) – opposes STVRs and supports a permanent moratorium; and 58. Thompson, Marie (La Quinta) – opposes STVRs and supports a permanent moratorium.