2016 02 24 CC CC & B-C Joint Special Meeting
SPECIAL JOINT MEETING AGENDA 1
FEBRUARY 24, 2016
AGENDA
SPECIAL JOINT MEETING OF THE CITY COUNCIL,
CITY BOARDS AND CITY COMMISSIONS
WEDNESDAY, FEBRUARY 24, 2016 AT 5:30 P.M.
LA QUINTA LIBRARY
78-275 Calle Tampico, La Quinta, CA
CALL TO ORDER BY MAYOR EVANS
ROLL CALL: Councilmembers Franklin, Osborne, Peña, Radi, Mayor Evans
SIGN IN: All Board and Commission Members in attendance
CONFIRMATION OF AGENDA
PLEDGE OF ALLEGIANCE
PUBLIC COMMENT ON MATTERS NOT ON THE AGENDA
At this time, members of the public may address the City Council on any matter not listed on
the agenda. Please complete a "Request to Speak" form and limit your comments to three
minutes. The City Council values your comments; however in accordance with State law, no
action shall be taken on any item not appearing on the agenda unless it is an emergency item
authorized by GC 54954.2(b).
ANNOUNCEMENTS, PRESENTATIONS AND WRITTEN COMMUNICATIONS
STUDY SESSION
1. SILVERROCK DEVELOPMENT COMPONENTS AND TIMELINE
3
2. ADVISORY COMMITTEE REPORT AND RECOMMENDATIONS – CITY
FISCAL HEALTH AND REVENUE OPTIONS
9
ITEMS OF INTEREST TO ELECTED/APPOINTED MEMBERS
ADJOURNMENT
City Council agendas and staff reports are
now available on the City’s web page:
www.la-quinta.org
SPECIAL JOINT MEETING AGENDA 2
FEBRUARY 24, 2016
*********************************
The next regular meeting of the City Council will be held on March 1, 2016,
commencing with closed session at 3:00 p.m. and open session at 4:00 p.m. at the City
Hall Council Chambers, 78-495 Calle Tampico, La Quinta, CA 92253.
DECLARATION OF POSTING
I, Susan Maysels, City Clerk, of the City of La Quinta, do hereby declare that the
foregoing Agenda for the La Quinta City Council meeting was posted on the City’s
website, near the entrance to the Council Chambers at 78-495 Calle Tampico, and the
bulletin boards at the Stater Brothers Supermarket at 78-630 Highway 111, and the La
Quinta Cove Post Office at 51-321 Avenida Bermudas, on or before February 18, 2016.
DATED: February 17, 2016
SUSAN MAYSELS, City Clerk
City of La Quinta, California
Public Notices
The La Quinta Library is handicapped accessible. If special equipment is needed for
the hearing impaired, please call the City Clerk’s office at 777-7103, twenty-four (24)
hours in advance of the meeting and accommodations will be made.
If background material is to be presented to the Councilmembers during a City Council
meeting, please be advised that eight (8) copies of all documents, exhibits, etc., must
be supplied to the City Clerk for distribution. It is requested that this take place prior to
the beginning of the meeting.
Any writings or documents provided to a majority of the City Council regarding any
item(s) on this agenda will be made available for public inspection at the City Clerk’s
Office at City Hall located at 78-495 Calle Tampico, La Quinta, California, 92253, during
normal business hours.
City of La Quinta
CITY COUNCIL MEETING: February 24, 2016
STAFF REPORT
AGENDA TITLE: SILVERROCK DEVELOPMENT COMPONENTS AND TIMELINE
EXECUTIVE SUMMARY
On October 20, 2015, Council approved modifications to the Purchase Sale and
Development Agreement (Agreement) with SilverRock Development Company,
LLC. (Developer).
The Developer’s development program locates a 140-room luxury hotel and spa on
the Arnold Palmer Signature Golf Course (Course); in order to accommodate the
hotel/spa, existing golf holes must be reconfigured.
On January 19, 2016, Council approved the Golf Course Realignment plan as per
the Schedule of Performance contained in the Agreement.
The Developer, Arnold Palmer Design Company (APCD), and staff have collaborated
and designed modifications to accommodate hotel/spa without compromising the
Course quality.
The Golf Course Realignment plan encompasses the back nine golf holes and
meets all requirements (Attachment 1).
FISCAL IMPACT
The back nine holes must be closed in order to reconfigure the golf holes; these holes
would be closed from May through November. Landmark Golf, the City’s course operator,
estimates a loss of $500,000 in revenue. Per the Agreement, all design and construction
costs are borne by the Developer.
BACKGROUND/ANALYSIS
On January 19, 2016, the City Council approved the Golf Course Realignment plan. This
plan outlines how the Developer will reconfigure and improve the Course to
accommodate the luxury hotel and enhance other golf holes to improve play and safety.
Staff is now drafting an implementation agreement that accelerates the schedule to
reconfigure the Course and advance the luxury hotel construction. During the joint
meeting, staff would like to highlight these changes and address questions Board and
Commission members may have.
STUDY SESSION NO. 1
3
The Current Development Program
In November 2014, the City entered into a purchase, sale and development agreement
with the Developer to construct a luxury hotel and spa, a conference center, a lifestyle
hotel, luxury and lifestyle branded residential, resort and mixed use villages, and a
permanent golf clubhouse. The Developer’s original plan called for locating the luxury
hotel on the 17th hole. In 2015 the Developer’s team was reformulated and the new
team revised the site plan. The new site plan now locates the luxury hotel and spa on the
11th and partially on the18th holes (Attachment 2), and on the land used for the current
cart barn and staging area (adjacent to the temporary clubhouse). In order to
accommodate the new development configuration, APCD prepared a new routing plan
(Attachment 1) for the back nine holes that entails:
a new par three 11th hole,
converting the existing 13th and 15th holes into par fives, and
constructing a drivable par four finishing hole.
APCD believes these changes maintain the course strategy while allowing play at
approximately the same overall length and par of 72.
At the October 20, 2016, Council meeting, the Developer expressed interest in modifying
the Course over the summer of 2016 so that the hotel and spa site grading would not
affect the spring 2017 golf operations. The Schedule of Performance provides the
Developer an outside completion date of November 2017 for Course modifications. Per
the Agreement the Developer is required to construct the modifications during the
offseason in order to minimize impact. If the Developer initiates the Course modifications
this summer, the Agreement must be modified. Per the Agreement, the Developer is
required to accomplish phase 1 land closing (all planning areas less the lifestyle hotel and
lifestyle residential) prior to commencing golf course realignment work. This may not be
possible. The Developer understands these constraints and has initiated dialogue with
staff to explore what requirements and safeguards are required to allow a summer 2016
start of the Course realignment.
The approved Golf Course Realignment enables the Developer to accurately define the
luxury hotel and spa planning area so that design and engineering can move forward on
the entire site. This is critical in order for the Developer to meet the following approvals
outlined in the Schedule of Performance: 1) master site design approval in March 2016,
and 2) a site development plan approval for the luxury hotel, luxury branded residential
development, and conference and shared services facility in May 2016.
Prepared by: Tim Jonasson, Public Works Director/City Engineer
Approved by: Frank Spevacek, City Manager
Attachment: 1. Golf Course Realignment Plan
2. SilverRock Resort Master Plan
4
LUXURY HOTEL & RESIDENTIAL AND GOLF COURSE REALIGNMENT PLAN
SILVERROCK RESORT
LA QUINTA, CALIFORNIA January 12, 2016
SCALE: 1”=170’
2
LUXURY BRANDED
RESIDENTIAL LOTS
LUXURY HOTEL
LOBBY
3
4
5
6
7
9
1
8
LUXURY HOTEL SPA
EXISTING
AHMANSON HOUSE
11
16
15 17
18
14
12
10LUXURY HOTEL
GUEST ROOMS
New Path New Green
New Fairway
New Path
NEW PAR 3
New Path
New Green
New Tees
Area Converted to Sand Landscape
New Green
Existing ClubhouseAccess Drive
Avenue 52
S
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k
W
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ExistingPractice Range
Existing Canal
New Tees
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New Path
New Path
New Path
New Fairway
Event Lawn
New Tee
ATTACHMENT 1
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MASTER PLAN
silverrock resort
La quinta, california
January 12, 2016
0 100 200 400 800
1 ac
5 ac
PA 3
luxury branded
residential Development
PA 2
luxury hotel parking
PA 10a
potential future
golf course
reserve/public use
parcels
practice
range/
overflow
parking
PA 11
public park
PA 6
lifestyle branded
residential development
portion of PA 10a
golf clubhouse
PA 5
Lifestyle hotel
PA 4
conference and shared
service facility
potential
future golf
course
reserve/public
use parcels
PA 8
resort residential
village
PA 9
promenade mixed-use
village-area ii
PA 7
promenade mixed-use
village-area i
PA 2
luxury hotel/spa
PA 2
luxury hotel
ahmanson
ranch house
1
resort
path
resort
path
lake
lake
golf
maintenance
PA 10b
p otential future
golf course reserve/
public use parcels
PA 1
Golf Course
pa land use ac units
1 golf course (existing)173.0
2 luxury hotel 17.0 140
3 luxury branded residential development 14.0 35
4 conference and shared service facility 12.0
5 lifestyle hotel 10.0 200
6 lifestyle branded residential development 10.0 60
7 promenade mixed use village area i 10.5 150
8 resort residential village 32.0 160
9 promenade mixed use village area ii 15.0 80
10a golf clubhouse and potential new golf
holes 1-9
48.0 25
10b potential new golf holes 10-18 83.0
11 public park 35.0
12 trails, canal & streets 65.5
total 525.0 850
land use summary
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avenue 54
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Main
Entry
avenue 52
ATTACHMENT 2
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City of La Quinta
CITY COUNCIL MEETING: February 24, 2016
STAFF REPORT
AGENDA TITLE: ADVISORY COMMITTEE REPORT AND RECOMMENDATIONS - CITY’S FISCAL
HEALTH AND REVENUE OPTIONS
EXECUTIVE SUMMARY
In June 2015, the Council appointed an Advisory Committee (Committee) to
evaluate the City’s current and long term financial position.
The Committee met since July 2015; established three subcommittees; and
compiled findings and recommendations.
On January 19, 2016, Council requested that the Committee prioritize their
recommendations and provide an update at the February 16, 2016, meeting.
The Council received the Committee’s final recommendations and priorities, and
directed staff to draft the necessary documents to place a one percent sales tax
increase on the November 2016 ballot.
FISCAL IMPACT – None.
BACKGROUND/ANALYSIS
Since 2009, the City has implemented measures to reduce expenses as a result of
declining revenue and the elimination of redevelopment. These measures included:
Reducing park, facility, parkway and median maintenance,
Reducing staff by 28 percent from 104 positions to the current 74 positions,
Reducing contract services and contact staff,
Increasing employee contributions to retirement and medical benefits,
Increasing fees for City services and the use of City facilities,
Reducing police service costs, and
Reducing capital improvement investment to $1.5 million per year.
Upon reviewing 10 year revenue and expenditure projections, the City Council concluded
that in order to maintain City services and invest in future infrastructure improvements,
the time had come to engage community stakeholders in conversations regarding what is
important and what would they be willing to pay to maintain/enhance the community.
On April 7, 2015, Council provided broad framework to form a committee to evaluate the
City’s long-term fiscal health. Fourteen La Quinta residents and business owners applied;
on June 16, 2015, Council appointed all fourteen members to the Advisory Committee.
STUDY SESSION NO. 2
9
The Committee held 11 meetings since July. Three subcommittees were formed that
focused on expenditures, sales tax revenue, and other revenue. Each subcommittee and
the Committee collectively, met with staff (at all levels) to gain insight of the City’s
mission, budget, expenditures, revenues, economic development initiatives, management
practices, and accountability measures.
The Committee then compiled a detailed report; the Committee also developed a series of
scenarios and financial projections that are the basis of their recommendations. This
report was presented to Council on January 19, 2016.
Given the report’s detail, a follow up study session was scheduled for February 16, 2016,
to allow the Committee to prioritize their recommendations and to provide Council and
the community sufficient time to review the report. The attached report presents a list of
recommendations to maintain current expense levels and grow revenues. A prominent
recommendation is to place a measure on the November 2016 ballot to increase the
City’s sales tax rate by 1 percent. Staff desires to discuss these recommendations with
the Council/Board/Commission members and receive their input and recommendations.
Prepared by: Ted Shove, Business Analyst
Approved by: Frank J. Spevacek, City Manager
Attachments: 1. Final Report Recommendations – Prioritization Sheet
2. Advisory Committee Report
10
City of La Quinta-Advisory Committee-Final Report
Recommendations-Group Rating-Prioritization Sheet
RECOMMENDATION RATING
REVENUES
Sales Tax
Raise Sales Tax rate by 1% from 8% to 9%5
Establish Sales Tax Audit Committee 5
Parcel Tax
Commission Parcel Tax feasibility study 3
Vacancy Tax
Commission Vacancy Tax feasibility study 2
Transient Occupancy Tax (TOT)
Raise the TOT rate to 12% for hotels and rentals 4
Apply TOT to resort fees 5
Short-Term Vacation Rentals
Re-educate-short-term vacation rental ordinance 5
Coordinate with CDAR-compliance program 5
Apply TOT to the total amount paid by renters 2
Eliminate TOT 1-year rental exemption 5
Implement Project Action Team recommendations 5
Review the Violation Schedule 5
Audit the management companies 3
Franchise Fees
Maximize revenues from contractual payments 5
Licenses and Permits
Complete a 100% cost recovery cost study 5
Charges For Services
Complete a 100% cost recover study 4
Rating Criteria
5-Urgent-Implement immediately
4-High
3-Important
2-Moderate
1-Low
C-Complete
ATTACHMENT 1
Page 1 of 2 11
City of La Quinta-Advisory Committee-Final Report
Recommendations-Group Rating-Prioritization Sheet
RECOMMENDATION RATING
EXPENDITURES
Personnel
Maintain Personnel expenditure increase at 2%/year 5
Maintain Authorized Staffing levels at approximately 80 5
Fire
Maintain Fire expenditure increase at 2%/year 5
Re-Negotiate Cooperative Fire Service Agreement 5
Maintenance & Operations
Recover the full cost for services provided 5
Contract animal services with the County C
Consider shorter term competitive contracts 5
Pursue aggressive turf conversion 5
Assess the marketing program 4
Evaluate Wells Fargo “float” 4
Police
Monitor 2015 Riverside County Police Study 5
Continue Joint Powers Authority (JPA) discussions 5
Negotiate cost savings with Riverside County/RCSO 5
Reduce annual 7% increase for Police expenditures 5
Engage Supervisor Benoit personally 5
Investigate Citizens On Patrol efficiencies 3
Capital Improvements
Consider enterprise-based asset management program 3
Adopt 10-year CIP Scenario C (City Ideal/Advisory)5
Redevelopment Agency Dissolution
Implement SRR Purchase, Sale and Development Agreement 5
SilverRock Golf Course
Increase Greens Fees and Resident Card Fees by 15%5
Competively bid Golf Course Management Agreement 4
Establish a Resident Golfers Advisory Committee 5
Rating Criteria
5-Urgent-Implement immediately
4-High
3-Important
2-Moderate
1-Low
C-Complete
Page 2 of 2 12
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