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2023 10 17 CC MinutesCALL TO ORDER CITY COUNCIL MINUTES TUESDAY, OCTOBER 17, 2023 A regular meeting of the La Quinta City Council was called to order at 3:00 p.m. by Mayor Evans. PRESENT: Councilmembers Fitzpatrick, McGarrey, Pena, Sanchez, Mayor Evans ABSENT: None PUBLIC COMMENT ON MATTERS NOT ON THE AGENDA — None CONFIRMATION OF AGENDA Councilmember McGarrey said she will recuse herself and abstain from discussion and vote on Consent Calendar Item No. 9 due to a potential conflict of interest stemming from a business relationship, i.e., her employer, Southern California Gas Company, is listed on the Demand Register, and requested that the item be pulled for a separate vote. Council concurred. CLOSED SESSION 1. 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 3:02 P.M. MAYOR EVANS RECONVENED THE OPEN SESSION PORTION OF THE CITY COUNCIL MEETING AT 4:00 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). PLEDGE OF ALLEGIANCE Councilmember Pena led the audience in the Pledge of Allegiance. CITY COUNCIL MINUTES Page 1 of 8 OCTOBER 17, 2023 PUBLIC COMMENT ON MATTERS NOT ON THE AGENDA PUBLIC SPEAKER: Richard Gray, La Quinta — pleased about the drainage at the north- east corner of Dune Palms Road and Highway 111 being drained into the Whitewater channel; and suggested the City make information about developments such as Chick- fil-A more readily available to residents. PUBLIC SPEAKER: Melissa Labayog, La Quinta — concerned about safety conditions at a nearby short-term vacation rental (STVR); requested that Mayor Evans, and Councilmembers McGarrey and Pena recuse themselves from all discussion/decisions on the STVR at this property near her residence, claiming they have personal or business relationships with the owner Ms. Daniels; explained an incident on the morning of September 16, 2023, and other investigations concerning guests at this property; and requested permanent removal of the STVR permit for this property. City Clerk Radeva said WRITTEN PUBLIC COMMENTS ON MATTERS NOT ON THE AGENDA were received from the citizens listed below in alphabetical order, which were distributed to Council, made public, published on the City's website, and included in the public record of this meeting: • Claudia Snyder, La Quinta — regarding a request for public records, currently being processed, related to the DuPont Estate's STVR permit status; and • John Spano, La Quinta — thanking the City for the recently opened bocce ball courts. ANNOUNCEMENTS, PRESENTATIONS AND WRITTEN COMMUNICATIONS 1. TALUS — PROJECT STATUS UPDATE President and CEO Robert Green of Robert Green Company provided a detailed update on the Talus La Quinta project funding and refinancing, which is further explained in the staff report under Business Session Item No. 1 on the agenda; explained the challenges currently adversely affecting the hospitality industry and the economic and political factors that continue to drive up construction costs; thanked La Quinta residents, staff and Council for their patience; and provided his cell number for anyone to call should they have questions. Council discussed the state of hotel development in the current post-COVID climate; discouraged by the misinformation circulating in the community regarding the status of the Talus project; all the behind -the -scenes progress of which the residents are unaware; Council passed on public monthly updates from Robert Green while he was primarily working on financing; and encouraged residents to read the staff report presented tonight, and call Councilmembers or Robert Green if anyone has any questions. CITY COUNCIL MINUTES Page 2 of 8 OCTOBER 17, 2023 CONSENT CALENDAR 1. APPROVE SPECIAL JOINT MEETING MINUTES OF THE CITY COUNCIL AND PLANNING COMMISSION OF SEPTEMBER 26, 2023 2. APPROVE CITY COUNCIL MEETING MINUTES OF OCTOBER 3, 2023 3. AUTHORIZE OVERNIGHT TRAVEL FOR THE CITY CLERK AND DEPUTY CITY CLERK TO ATTEND THE LEAGUE OF CALIFORNIA CITIES CITY CLERKS' NEW LAW AND ELECTIONS SEMINAR IN SAN DIEGO, CALIFORNIA, DECEMBER 13 — 15, 2023 4. EXCUSE ABSENCE OF COMMISSIONER CALDWELL FROM THE OCTOBER 10, 2023, PLANNING COMMISSION MEETING 5. APPROPRIATE FUNDING AND AWARD CONTRACT TO LEONIDA BUILDERS, INC FOR THE COVE TRAILS PARKING LOT IMPROVEMENTS PROJECT NO. 2022-30 6. APPROVE EXTENDING THE LEASE AGREEMENT WITH PACIFIC MOBILE STRUCTURES THROUGH 2025 FOR THE PUBLIC WORKS MAINTENANCE TRAILER 7. ADOPT RESOLUTION TO AUTHORIZE EXAMINATION OF (1) SALES AND USE TAX RECORDS, AND (2) TRANSACTION AND USE TAX RECORDS [RESOLUTION NO. 2023-035] 8. APPROVE DEMAND REGISTERS DATED SEPTEMBER 29, AND OCTOBER 6, 2023 9. APPROVE DEMAND REGISTERS FOR SOUTHERN CALIFORNIA GAS COMPANY DATED JULY 21, AUGUST 4, AND SEPTEMBER 1, 2023 COMMENTS ON CONSENT CALENDAR ITEM NO. 5: Mayor Evans said this 10 -day project will be partially funded with funds provided by the Visit Greater Palm Springs Tourism Bureau, which provided funding allocations to all Coachella Valley cities to be used at the discretion of each city for improving facilities that enhance visitor experiences; asked staff to mitigate disturbances to trail users; complete the project prior to the Thanksgiving holiday; and directed staff to share closures and parking information with the Desert Mountains Conservancy. MOTION — A motion was made and seconded by Councilmembers Pena/McGarrey to approve Consent Calendar Item Nos. 1-8 as recommended, with Item No. 7 adopting Resolution No. 2023-035. Motion passed unanimously. CITY COUNCIL MINUTES Page 3 of 8 OCTOBER 17, 2023 CONSENT CALENDAR ITEM NO. 9 COUNCILMEMBER McGARREY RECUSED HERSELF, AND SAID SHE WILL ABSTAIN FROM THE DISCUSSION AND VOTE ON CONSENT CALENDAR ITEM NO. 9 DUE TO A POTENTIAL CONFLICT OF INTEREST STEMMING FROM A BUSINESS RELATIONSHIP WITH HER EMPLOYER SOUTHERN CALIFORNIA GAS COMPANY MOTION — A motion was made and seconded by Councilmembers Pena/Sanchez to approve Consent Calendar Item No. 9 as recommended. Motion passed: ayes 4, noes 0, abstain 1 (McGarrey), absent 0. STUDY SESSION 1. DISCUSS LAND-BASED FINANCING OPTIONS AND PROVIDE DIRECTION REGARDING FUTURE POLICY UPDATES Principal Management Analyst Hallick presented the staff report, which is on file in the Clerk's Office; and introduced President and Principal James V. Fabian and Assistant Vice President Chelsea Redmon of Fieldman, Rolapp & Associates, Inc., attending via teleconference, who provided additional information regarding land-based financing options, and the approval process and requirements. Council discussed the size of the assessment district approved in the City of Laguna Beach used as an example in the presentation; the public hearing process; the time it takes (four to six months) to prepare the engineer's report, which includes the cost estimates for undergrounding the utilities, and the proportionate ratio of costs to the utility companies; the time for Assessment District (AD) hearings (18 to 24 months) followed by bond issuance (three months) before beginning the improvements; the time frame for re - petitioning again if an AD or Community Financing District (CFD) initially fails (six months); bond repayment start dates; for private developers, bond issuance not recommended until project is at least 50% completed; the effect of the City's credit rating if it forms a Utility Undergrounding District; authority for a utility provider to form an AD; the City's existing Landscape & Lighting Assessment District (L&L AD), a fixed per parcel assessment that has not increased since 1995 and which no longer covers the annual cost of the L&L AD improvements and maintenance; CFD being a better tool for a L&L AD in that it allows for an escalator to cover increasing cost of services; possibly adding an CFD for L&L; having two ADs for different purposes but on the same parcels; effects of future parcel -splitting and parcel -merging; developer use of ADs/CFDs would be factored into the home price; pre -polling residents early on to gauge support; need to continually update project cost estimates and have enough contingency between initial project conception to final vote; contributions from other utilities (telephone, cable, etc.) to cost of undergrounding; easements are a question for the future; process if property is devalued; means to return excess assessment to property owners; Bond Debt Service Reserve Funds (10% of the bond issuance) is used for nonpayment of assessments; and liens on properties for delinquent assessments take priority over mortgages. CITY COUNCIL MINUTES Page 4 of 8 OCTOBER 17, 2023 Council reached a consensus and directed staff to move forward with updating the City's policy regarding ADs; and gather information from neighboring cities on ADs they have done. STUDY SESSION ITEM NOS. 2 AND 3 WILL BE HEARD AFTER THE BUSINESS SESSION MAYOR EVANS CALLED FOR A BRIEF RECESS AT 5:46 P.M MAYOR EVANS RECONVENED THE COUNCIL MEETING AT 5:52 PM WITH ALL MEMBERS PRESENT BUSINESS SESSION 1. APPROVE AMENDMENT NO. 5 AND RELATED DOCUMENTS TO PURCHASE, SALE, AND DEVELOPMENT AGREEMENT (PSDA) WITH SILVERROCK DEVELOPMENT COMPANY, LLC, SILVERROCK PHASE I, LLC, AND SILVERROCK LAND II, LLC, FOR TALUS LA QUINTA (FORMERLY SILVERROCK RESORT) AND REQUIRE DEVELOPER TO PRESENT MONTHLY PROGRESS UPDATES AT COUNCIL MEETINGS ONCE FINANCING IS CLOSED AND UNTIL THE LUXURY HOTEL IS OPEN City Manager McMillen presented the staff report, which is on file in the Clerk's Office. Council had no further questions or discussion. City Clerk Radeva said a WRITTEN PUBLIC COMMENT regarding Business Session Item No. 1 was received from La Quinta resident William Cane, La Quinta — in opposition of the proposed Amendment No. 5 to the PSDA; which were distributed to Council, made public, published on the City's website, and included in the public record of this meeting. MOTION — A motion was made and seconded by Councilmembers Pena/Fitzpatrick to approve Amendment No. 5 and related documents to the Purchase, Sale, and Development Agreement with SilverRock Development Company, LLC, SilverRock Phase I, LLC, SilverRock Land II, LLC, and TALUS La Quinta (formerly SilverRock Resort); authorize the City Manager and City Attorney to make minor revisions and additions as necessary that do not substantively change the business terms, and execute and implement said agreements and other documents necessary; and require developer to present monthly progress updates at Council meetings once financing is closed and until the luxury hotel is open. Motion passed unanimously. 2. APPROVE AGREEMENT FOR CONTRACT SERVICES WITH CARAHSOFT TECHNOLOGY CORPORATION FOR THE PURCHASE AND IMPLEMENTATION OF ZOOM CLOUD PHONE SYSTEM AND RELATED SOFTWARE CITY COUNCIL MINUTES Page 5 of 8 OCTOBER 17, 2023 Management Analyst Kinley and Director of Business Unit and Housing Development Villalpando presented the staff report, which is on file in the Clerk's Office. Council discussed the savings that will result with this contract; the positive move from an analog to digital phone system; cyber security concerns; back -end encryptions; details of using a laptop as a telephone; budget for replacing hardware; users who would need telephones; means to retrieve phone message on a laptop; training included in the contract; transition plans; remote connection via Wi-Fi/cellular services; and injecting Virtual Private Network (VPN) on the Zoom service to enhance security. PUBLIC SPEAKER VIA TELECONFERENCE: Elliott Simpson, Zoom Video Communications Sales Representative for State and Local Government with Carahsoft Technology Corporation — provided a presentation of the Zoom phone application, and answered questions regarding voice messaging, texting, placing calls, etc. MOTION — A motion was made and seconded by Councilmembers Pena/Sanchez to approve Agreement for Contract Services with Carahsoft Technology Corporation for the purchase and implementation of Zoom Cloud Phone System and related software for a total not to exceed amount of $164,454 for a four-year term; and authorize the City Manager to execute the agreement as recommended. Motion passed unanimously. 3. INTRODUCE AN ORDINANCE AMENDING CHAPTER 2.60 OF THE LA QUINTA MUNICIPAL CODE RELATING TO THE CONFLICT-OF-INTEREST CODE [ORDINANCE NO. 605] 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 Pena/McGarrey to take up Ordinance No. 605 by title and number only and waive further reading. Motion passed unanimously. City Clerk Radeva read the following title of Ordinance No. 605 into the record: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LA QUINTA, CALIFORNIA, AMENDING CHAPTER 2.60 OF THE LA QUINTA MUNICIPAL CODE RELATING TO THE CITY'S CONFLICT OF INTEREST CODE MOTION — A motion was made and seconded by Councilmembers Pena/McGarrey to introduce at first reading Ordinance No. 605 as recommended. Motion passed unanimously. STUDY SESSION — CONTINUED 2. DISCUSS CITY BRANDED MERCHANDISE Marketing Manager Graham presented the staff report, which is on file in the Clerk's Office. CITY COUNCIL MINUTES Page 6 of 8 OCTOBER 17, 2023 Council discussed why a municipal corporation is not permitted to make profits; setting up a non-profit corporation to sell City branded merchandise, and designating any profits to providing a public service; cost of establishing and operating a non-profit versus selling items at cost; need to first evaluate consumer demand; example of how an online retailer would sell City goods; utilizing local retailers to sell City goods in their shops; if establish a 501(C)(3) non-profit, possible uses of profits for public purposes, such as community grants, scholarships, etc.; if cost of items includes design costs — establishing a nexus for costs, documenting staff time involved; profits would go to the non -profit's bank account, then transferred into the General Fund; items would be drop -shipped rather than the City maintaining an inventory; City's logo and seal are trademarked, but others can create and sell items stating La Quinta in other designs; certain logo would be reserved for official City use; option to license local retailers to use certain designs which they would print on items and sell; and having different quality levels between free hand-out items, and items for online sale. Council reached a consensus and directed staff to hold off from creating a non-profit corporation; instead, to prepare a timeline and operational plan for City at -cost sales — initially local pop-up sales; and obtain feedback from local retailers. 3. DISCUSS OPTIONS FOR USE OF RECENTLY ACQUIRED HISTORICAL BUILDING LOCATED AT 51001 EISENHOWER DRIVE Management Analyst Kinley and Director of Business Unit and Housing Development Villalpando presented the staff report, which is on file in the Clerk's Office. Council discussed the multitude uses possible for the building due to its great location; no support of leasing it to a business or use for Museum storage; support uses such as visitor's center, sale of City merchandise, and a historical component; adding a restroom extension for hikers; installing interactive kiosks inside and possibly outside if it becomes a visitor center; opening the rear exterior space; adding a digital monitor/billboard monument at the curb; and adding a bike repair station. Council reached a consensus and directed staff to get the cost for adding an exterior restroom. PUBLIC HEARINGS — None DEPARTMENTAL REPORTS — All reports are on file in the City Clerk's Office. 3. SHORT-TERM VACATION RENTAL PROGRAM (STVR) CHARACTERISTICS, COMPLIANCE, AND ENFORCEMENT OVERVIEW — QUARTERLY REPORT — JULY -SEPTEMBER 2023 Council discussed the high compliance in the STVR Program; downward trends in the STVR industry; and directed staff to change Transient Occupancy Tax (TOT) line color in reports for viewing clarity. CITY COUNCIL MINUTES Page 7 of 8 OCTOBER 17, 2023 City Clerk Radeva said the administrative citations chart, on page 198 of the agenda packet, corrected a formula error for Second Quarter (published in the 9/19/2023 agenda packet), noting that one citation, of the total 54, was issued for a disturbance matter, and the remaining 53 were for administrative matters; the report included a list of STVR permits per developments/areas within La Quinta, and a graph depicting how the STVR Hotline calls are received, routed, and addressed. MAYOR'S AND COUNCIL MEMBERS' ITEMS Councilmember McGarrey reported on her attendance at the Trilogy Homeowners Association 20th anniversary; Old Town Artisan Studio event; music at the Museum event; Farmer's Market; California Forward Economic Summit; and the Fire Department Open House. Mayor Evans reported on her attendance at the Coachella Valley Mixer; the Coachella Valley Economic Partnership Summit; and California Forward Summit. Mayor Evans suggested to: 1. Establishing an Ad Hoc Committee to review the City's animal ordinance. Mayor Pro Tem Sanchez and Councilmember Fitzpatrick volunteered to do so; and 2. Establishing a Council subcommittee on local energy matters. Council concurred. REPORTS AND INFORMATIONAL ITEMS La Quinta's representative for 2023, Councilmember Fitzpatrick reported on her participation in the following organization's meeting: • RIVERSIDE COUNTY TRANSPORTATION COMMISSION La Quinta's representative for 2023, Councilmember McGarrey reported on her participation in the following organization's meeting: • IID ENERGY CONSUMERS' ADVISORY COMMITTEE ADJOURNMENT There being no further business, a motion was made and seconded by Councilmembers Fitzpatrick/Sanchez to adjourn at 7:35 p.m. Motion passed unanimously. Respectfully submitted, MONIKA RADEVA, City Clerk City of La Quinta, California CITY COUNCIL MINUTES Page 8 of 8 OCTOBER 17, 2023