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2016 02 16 CC MinutesCITY COUNCIL MINUTES TUESDAY, FEBRUARY 16, 2016 A regular meeting of the La Quinta City Council was called to order at 3:00 p.m. by Mayor Evans in the Study Session room at City Hall. PRESENT: Councilmembers Franklin, Osborne, Pena, Radi, Mayor Evans ABSENT: None PUBLIC COMMENT ON MATTERS NOT ON AGENDA - None CONFIRMATION OF AGENDA - Confirmed CLOSED SESSION 1. CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION. SIGNIFICANT EXPOSURE TO LITIGATION PURSUANT TO GOVERNMENT CODE SECTION 54956.9(D)(2). NUMBER OF POTENTIAL CASES: 1 2. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION PURSUANT TO GOVERNMENT CODE SECTION 54956.9(d)(1). ALVERIZ ET AL. V. CITY OF LA QUINTA ET AL., RIVERSIDE COUNTY SUPERIOR COURT CASE NO. PSC 1503161; BARTON ET AL. V. CITY OF LA QUINTA ET AL., RIVERSIDE COUNTY SUPERIOR COURT CASE NO. PSC 1505200 C��lILR�l�:7��'�9���f�Z����9��7►y'�9[�1►�I_����f�l��auA MAYOR EVANS RECONVENED THE CITY COUNCIL MEETING AT 4:01 P.M. WITH ALL MEMBERS PRESENT REPORT ON ACTION(S) TAKEN IN CLOSED SESSION: City Attorney Ihrke reported no actions were taken in closed session that require reporting pursuant to Government Code section 54957.1 (Brown Act). Councilmember Radi led the audience in the pledge of allegiance. PUBLIC COMMENT ON MATTERS NOT ON AGENDA PUBLIC SPEAKER: Stephanie Stone -Stinson, La Quinta - Ms. Stone -Stinson, who resides on Avenida Bermudas, requested a reduction in the 40 miles per hour (mph) speed limit and installation of stop signs on Avenida Bermudas. She said traffic is speeding at 50-60 mph causing a dangerous situation for residents and their visitors. Ms. CITY COUNCIL MINUTES 1 FEBRUARY 16, 2016 Stone -Stinson said she has hired a videographer and will return to Council next month with the video and petition for speed limit reduction from residents along the street. ANNOUNCEMENTS, PRESENTATIONS AND WRITTEN COMMUNICATIONS 1. DEPUTY CITY MANAGER EDIE HYLTON RETIREMENT PROCLAMATION Mayor Evans read Ms. Hylton's Proclamation. All Councilmembers expressed their thanks and gratitude for Ms. Hylton's service. Ms. Hylton spoke of her time with the City and her gratitude for the years with the City Manager, Council, Directors and staff. 2. PRINCIPAL PLANNER WALLY NESBIT RETIREMENT PROCLAMATION Mayor Evans read Mr. Nesbit's Proclamation. All Councilmembers recalled their years with Mr. Nesbit and thanked him for his fine work with developers over the decades. Mr. Nesbit expressed his gratitude to Council for their vision and leadership over the yea rs. 3. COACHELLA VALLEY ECONOMIC PARTNERSHIP (CVEP) - RETURN ON INVESTMENT PRESENTATION BY DR. RICK AXELROD, BOARD CHAIRMAN Dr. Axelrod presented a power point detailing CVEP's current financial condition and along with Joseph Wallace, Executive Director, answered Council's questions. [Power Point attached to archived Minutes] Councilmembers discussed the improvement to CVEP's financial position; coordination with the East Valley Coalition; the status and future plans for the Workforce Excellence Program; recent businesses drawn to La Quinta as a result of CVEP efforts; the benefits of the Small Business Center to the East Valley; targeted businesses; infrastructure for manufacturing; Palm Springs campus investment; plans for attracting and mentoring new businesses; new website timing and cost, and; collaboration with the Convention and Visitors' Bureau. CONSENT CALENDAR 1. APPROVE MINUTES OF FEBRUARY 2, 2016 2. APPROVE JOINT CITY COUNCIL AND PLANNING COMMISSION MINUTES OF JANUARY 12, 2016 3. APPROVE DEMAND REGISTERS DATED JANUARY 13, 15, 20, 22, 29 AND FEBRUARY 5, 2016 MOTION - A motion was made and seconded by Councilmembers Radi/Franklin to approve the Consent Calendar as recommended. Motion passed unanimously. CITY COUNCIL MINUTES 2 FEBRUARY 16, 2016 BUSINESS SESSION 1. APPROVE PURCHASE OF ART PIECES FROM RICARDO BRECEDA FOR FUTURE ART IN PUBLIC PLACES PROJECTS Community Services Supervisor Calderon presented the staff report, which is on file in the City Clerk's Office. PUBLIC SPEAKER: Ricardo Breceda, Artist - Mr. Breceda gave a brief history of his art pieces, and stated that transportation of the sculptures from their current location(s) to the City Maintenance Yard is included in the price. MOTION - A motion was made and seconded by Councilmembers Franklin/Radi to approve purchase of four art pieces from Ricardo Breceda for future art in public places projects. Motion passed unanimously. STUDY SESSION 1. ADVISORY COMMITTEE REPORT AND PRIORITIZED RECOMMENDATIONS Business Analysis Shove presented the staff report, which is on file in the City Clerk's Office. Advisory Committee Members Present: George Batavick, James Cathcart, Mark Johnson, Robert Leidner, Michele McDonough, Richard Mills, and Steven Rosen. Committee Member Leidner said the Committee was subdivided into three subcommittees that examined areas of the budget in depth: sales tax revenue; other revenue, and; expenditures. The subcommittees prioritized their recommendations using a 1 to 5 scale, with 5 requiring immediate attention. Mr. Leidner explained that each recommendation was evaluated based on timing, and impact on the community and residents. Committee Members Cathcart, Batavick, and Johnson presented the findings of the subcommittees as detailed in the Committee's final report (on file in the City Clerk's Office), explained their process and prioritization, and suggested options for Council to consider. Councilmembers and Committee Members discussed the Committee's recommendations; the role of a citizen sales tax audit or advisory committee; mass mailings regarding short-term vacation rental (STVR) regulations to Homeowners' Associations (HOA) before major events with a request that the HOA Boards disburse info to members; desirability and reasonableness of applying transient occupancy tax to entire hotel bills and entire STVR bills; golf course advisory committee as a means CITY COUNCIL MINUTES 3 FEBRUARY 16, 2016 for residents to make recommendations on course operations and clubhouse activities, and; posting a summary of the Committee's report on the City website. By consensus of Council, staff was directed to report back on (1) a sales tax ordinance for consideration on the November 2016 ballot, including establishing a related advisory committee, (2) options for amending the Municipal Code TOT and STVR chapters to apply charges based on the total bill amount, (3) other Advisory Committee report recommendations that can be accomplished "in-house" by staff or Council, and (4) options for resident involvement in golf operations such as an oversight, advisory, or ad hoc committee, or periodic focus groups, etc. Committee Members present offered to do any additional work necessary to move forward with securing La Quinta's financial future, perhaps as an independent citizen committee to promote a sales tax measure. 2. DEVELOPMENT WIND UP 2016 Design and Development Director Jonasson presented the staff report, which is on file in the City Clerk's Office. Customer Service Manager Zarco, Principal Engineer McKinney, and Planning Manager Perez presented the report on the progress of the new customer service center. Councilmembers discussed online access and security; educating developers and residents on availability and use of online permitting; streamlining business licensing; revenue enhancement opportunities; reasons for delays; software interface, and; inviting interested sister cities to a presentation and tour of La Quinta's customer service center and permitting technology. PUBLIC HEARINGS - None. DEPARTMENT REPORTS All reports are on file in the City Clerk's Office. MAYOR'S AND COUNCIL MEMBER'S ITEMS Councilmembers discussed their unanimous full support for the SilverRock project and the previously approved reconfiguration of the golf course by Palmer designers; the primary importance of the project's hotels over tournaments; the benefit to real estate sales of having the SilverRock golf course on national television, and; requested a monthly update report on the SilverRock project. Councilmember Radi requested that staff study improvement options for the City's entrance monuments on Highway 111 at the east and west City borders - a more elegant, non -water feature design is needed. CITY COUNCIL MINUTES 4 FEBRUARY 16, 2016 REPORTS AND INFORMATIONAL La Quinta's representative for 2016, Mayor Evans reported on her participation in the following organization's meeting: CVAG ENERGY AND ENVIRONMENTAL RESOURCES COMMITTEE La Quinta's representative for 2016, Councilmember Osborne reported on his participation in the following organization's meeting: EAST VALLEY COALITION ADJOURNMENT There being no further business, a motion was made and seconded by Councilmembers Franklin/Pena to adjourn at 7:30 p.m. Motion passed unanimously. Respectfully submitted, Digitally signed by Susan Maysels DN: seria1Number=j4r7111g1 ppsr45f, c=US, st=California, n=La Ma, o—Susan an Maysels, cn—Susan an Maysels Date: 2016.03.02 07:42:51-08'00' SUSAN MAYSELS, City Clerk City of La Quinta, California CITY COUNCIL MINUTES FEBRUARY 16, 2016 City of La Quinta Rejoining CVEP Prepared for the City of La Quinta February 16, 2016 Presentation Topics Overview and Finances Staff and Budget Adjustments New Investors and Increased Investments Workforce Excellence Sustainability Business Retention and Expansion Entrepreneurship College and Career Readiness 2016 and into the Future E � I JAN UARY 17, 2015 DHS'Unity and Peace' walk to honor MLK Ex-Aztec Lauren Marker shows off Amid major deficit, CVEP cuts staff, budget By Sammy Roth The Desert Sun The Coachella Valley Eco- nomic Partnership abruptly cut staff and instituted furloughs last week, in the wake of a major deficit that has forced the or- ganization to cut half a million dollars from its budget. CVEP has earned praise in recent years for its efforts to grow and diversify the region's economy, but cash -strapped Coachella Valley cities have been scaling back their contri- butions to the organization. Funding from cities and other large local contributors — in - JAY CALDERON—E DESERT SUN Tom Flavin, who retired as CVEP's CEO earlier this month, says the shortfall is worse than he expected. eluding pprivate businesses — is down $494,000 since 2012, CVEP's interim CEO, Joe Wal- lace, told The Desert Sun on Fri- day. But the size of that shortfall wasn't clear until last month, when then -CEO Tom Flavin asked Wallace and Sheila Thornton, CVEP's vice presi- dent for workforce excellence, to examine the organization's fi- nances. What they found was worse than Flavin expected: a $600,000 budget deficit over the previous 18 months. "Over the last three years, we've lost a substantial amount of local public and private sup- port for the organization," Fla- vin said on Friday. "I didn't think it was that large." Flavin retired earlier this month, but Wallace and other CVEP leaders have responded to the budget shortfall by identi- fying $500,000 in cuts. Those cuts started to hit home last week, when two employees were laid off and all staff mem- bers were instructed to take half -day furloughs every pay period. In addition to the two layoffs, five other vacant positions have not been filled, including the CEO position. (Wallace was al- ready on staff as CVEP's chief innovation officer.) CVEP now has 17 employees, down from 24 last year. "We're pretty close to bare - bones right now," Wallace said. Since 2012, the Coachella Val- ley's nine cities have collective- ly reduced their annual contri- butions to CVEP by about $250,000. The biggest reduc- tions came from Indian Wells, which pulled the entirety of its $100,000 in funding, and Desert Hot Springs, which gradually eliminated all $75,000 of its funding as it teetered on the brink of bankruptcy. For now, CVEP has been able to avoid substantial reductions in the services it provides. Please see CVEP, All OPERATIONAL COST CUTTING Audited Annualized Annual 2013-14 2015-16 Savings Workforce Excellence Ops. 1,505,199 1,052,912 452,287 (30%) Business Development 2,738,061 1,193,644 1,544,417 (56.4%) and CVEP Central Ops. Combined Operation 4,243,260 2,246,556 1,996,704 (47%) Full Time Equivalents 28 17 Coachella Valley ($30,000) $38,000 68,000 Economic Summit DECEMBER 31, 2015 Current Unrestricted Assets $942,420 (increase of 169%) Accounts Payable $107,964 (decrease of 30%) Total Liabilities $232,113 (decrease of 67.9%) Q1 + Q2 (Actuals) FY15-16 Revenue: $3,775,149 Expenses: $1,624,475 Net: $2,150,674 Operational Cash on Hand Business Development: $201,188 (2.5 mo.) Workforce Excellence: $512,516 (7.5 mo.) * Financials prepared by Osborne Rincon CPAs New Investors ( e&on'b ME Ow Massage Envy - synchrony BANK Increased Investments = Compass R's oFF,�F �'s W c Fc�� ar1 Bank of America • Eisenhower Medical Center • JFK Memorial Hospital • Wells Fargo Total New Revenue: $538,000 WORKFORCE EXCELLENCE SUSTAINABILITY • College Futures Foundation drove and funded investigation • CFF contracted LaPiana Consulting to study sustainability options to preserve WE programs • Established Working Group of outside professionals and CVEP board members and staff • Working Group identified and evaluated five options • CVEP Executive Committee recommended that the Working Group explore independence as a 501(c)3 and report back to the CVEP Board of Directors with a proposal BUSINESS DEVELOPMENT COACHELLA VALLEY SMALL BUSINESS DEVELOPMENT CENTER The Coachella Valley Small Business Development Center, overcoming obstacles in management and human resources, fine - operated by CVEP, offers free, one-on-one consulting to tuning operations, integrating technology, achieving sustainability, entrepreneurs seeking assistance developing a business plan, buying and selling a business, and gaining information about local preparing financial statements and projections for loans, industry and economic trends. accessing capital, developing a marketing plan, growing sales, COACHELLA VALLEY SBDC SERVICES TO LA QUINTA BUSINESSES AND ENTREPRENEURS New Businesses Created Jobs Created (full and part time) Jobs Retained Total Capital (Loans and Equity) Total Clients Counseled Total Counselor Hours Training Attendees Jan.1-Dec. 31, 2015 Since 2012 0 1 2 56 0 13 0 $260,000 7 33 133 440 498 2,136 BUSINESS DEVELOPMENT PALM SPRINGS INNOVATION HUB 0HUB) • Renewable Energy Roundtable (monthly) • Fireside Chats to Discuss Current Business Topics (monthly) • Pitch the Angels (CV Shark Tank) April 22, 2015 • Completed IMCP (Invest in Mfg. Communities) Grant for Federal EDA • Hosted Luncheon Forum for Maria Contreras -Sweet who is the Administrator of the SBA and a member of the President's Cabinet • Partnership with National Renewable Energy Lab (NREL) • Founding Member of Wells Fargo IN2 Incubator Consortium, (1 of 23 nationwide including MIT, UC Berkeley, Rice, & Stanford • Partner with the Federal Lab Consortium for Technology Transfer through the Norco Naval Weapons Center BUSINESS DEVELOPMENT PALM SPRINGS INNOVATION HUB 0HUB) • The iHub has been home to 37 companies and created more than 100 jobs. Current company count: 27 • Nub companies have raised an aggregate of more than $10 million in equity investments. • Nub companies have been awarded or applied for 16 patents. • Accelerator Campus companies' aggregated revenue exceeded $3 million in 2015. • Four major awards: two national, two regional. BUSINESS DEVELOPMENT PALM SPRINGS INNOVATION HUB 0HUB) • Hips -Sister has grown from an idea to a $1.5 million company in two years. • Heppolt Wind Energy received two grants from the Los Alamos National Lab and had recently gotten a favorable technological opinion from LAML. • Indy Power Systems provided energy management solution to the Toyota Buffalo Ranch off -grid outpost in Buffalo, Wyoming. • SecoSys won the Silver Award for the World's Best Technology Conference and has recently received a large pilot order for Smart Water Meters. • Pocial developed an "app" for crowd judging of athletic events that has been implemented by Top Rank Boxing and utilized as an Alumni Engagement tool. COA►CHELLA'► VALLEY ECONOMIC PARTNERSHIP HIP WORKFORCE EXCELLENCE COACHELLA VALLEY REGIONAL PLAN FOR COLLEGE AND CAREER READINESS The Coachella Valley Regional Plan for College and Career Success outlines how business and education will collaborate to develop, refine, and sustain programs that will prepare local students for college, career and life. The plan includes career explorations and in -school career academies around specific industries such as healthcare, digital arts, culinary arts, and SCHOLARSHIPS AWARDED TO LA QUANTA STUDENTS 2009 to 2015 renewable energy; work -based learning, such as speakers, internships, job shadowing, mentoring, and a student leadership conference; scholarships in conjunction with local community matching partners, and student financial aid, counseling, and support services. LA QUANTA STUDENTS WHO COMPLETED THE FREE APPLICATION FOR FEDERAL STUDENT AID SINCE 2011 Year Number Amount Year Number Amount 2009 20 $74,500 2011 349 $1,507,174 2010 21 $85,000 2012 471 $1,894,582 2011 17 $55,000 2013 373 $1,536,953 2012 16 $67,500 2014 545 $2,233,033 2013 19 $85,000 2015 504 $2,073,379 2014 18 $77,500 Total 2,242 $9,245,121 2015 25 $102,500 Total 136 $S47,000 COA►CHELLA'► VALLEY ECONOMIC PARTNERSHIP WORKFORCE EXCELLENCE COACHELLA VALLEY REGIONAL PLAN FOR COLLEGE AND CAREER READINESS LA QUINTA STUDENT AND BUSINESS METRICS, JULY 1, 2014-JUNE 30, 2015 S91 La Quinta Students in Pipeline or Career Academies Connected With Local Businesses and Employers 127 La Quinta Students Who Participated in Direct Work Experience Facilitated by CVEP S34 La Quinta Student Impact Hours Provided by Employers and Professionals 13 Number of Business Professionals Engaged with La Quinta Students 1,401 Number of Volunteer Hours Donated by Professionals to La Quinta Students 134 (44%) CVEP Pathway to Success Scholarship Students Who Attend College of the Desert or CSUSB Palm Desert Campus 13 La Quinta Students who Received a Full-time Paid Internship Through CVEP/Healthcare Career Connection EDITOR'S NOTE: Numbers for students and business professionals impacted yearly may vary. The aim of the The Coachella Valley Regional Plan for College and Career Success is to allow education, with the help of business professionals, to imbed efforts into the district. Once the program is sustainable and institutionalized, CVEP shifts focus to other evolving programs. COA►CHELLA'► VALLEY ECONOMIC PARTNERSHIP Objectives: 2016 and Beyond Existing Programs • Expand existing business retention and expansion (BRE) program currently run in CVEP's SBDC (SBA & GoBiz provided funds) • Entrepreneurship: start-ups, innovation (SBDC and iHub) • Palm Springs Accelerator Campus (43,000 sq. ft. total) • Complete Construction (87% complete, 50% occupied) • Continue to use as Business Attraction infrastructure • Health and Medical Innovation Center Launch (12,000 sq. ft.) • Cleanroom installation (already attracted GattaCo) • HVAC and noise issues under construction COACHELLA VALLEY ECONOMIC PARTNERSHIP Objectives: 2016 and Beyond Regional Business Attraction Initiative Lead Generation • Attraction -oriented Website • Develop Collateral Materials • Strategic Attendance of Events • Ernst & Young Conference • World Energy Innovation Conference • Biomedical Device Forum • Targeted Geographies and Industries Lead Management • Concierge for Prospect Communications • Assist with State & Local Incentives • Site Selection Assistance "ALL 6 Accelerator Campus Companies Have Been Attracted from Elsewhere" COACHELLA VALLEY ECONOMIC PARTNERSHIP CVEP's Proposal to the City of La Quinta • Regionalism is vital to economic development • CVEP has successfully righted the ship • CVEP is poised to develop and implement the 3rd leg of the economic development stool, which is business attraction • La Quinta is an integral part of the economy of the Coachella Valley • CVEP humbly requests that the City of La Quinta join its Board of Directors with an annual commitment of $50,000