Loading...
2024 08 06 CC MinutesCALL TO ORDER CITY COUNCIL MINUTES TUESDAY, AUGUST 6, 2024 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, and Mayor Evans ABSENT: None PUBLIC COMMENT ON MATTERS NOT ON THE AGENDA — None CONFIRMATION OF AGENDA City Attorney Ihrke requested Council consider voting to add the following as Closed Session Item No. 2 on tonight's agenda pursuant to Government Code section 54954.2, subdivision (b)(2) [Brown Act] due to multiple cases, officially called Voluntary Petitions for Non -Individuals Filing for Bankruptcy, filed in the United States District Court for the District of Delaware pursuant to Chapter 11 of the United State Bankruptcy Code, with the following DEBTOR PETITIONERS and case numbers: CONFERENCE WITH LEGAL COUNSEL — EXISTING LITIGATION; PURSUANT TO PARAGRAPH (1) OF SUBDIVISION (d) OF GOVERNMENT CODE SECTION 54956.9; CASES NAMES AND NUMBERS — MULTIPLE (listed below, all in U.S. Bankruptcy Court, District of Delaware) CASE NAME: CASE NUMBER SilverRock Development Company, LLC. 24-11647 SilverRock Lifestyle Residences, LLC 24-11648 SilverRock Lodging, LLC 24-11650 SilverRock Luxury Residences, LLC 24-11652 SilverRock Phase I, LLC 24-11654 RGC PA 789, LLC 24-11657 The City is one of multiple named unsecured creditors in the SilverRock Phase I, LLC case, and all cases have debtor petitioners that are affiliates of SilverRock Development Company; collectively all debtor petitions are referred to herein as "SilverRock Development Company." The City has several contracts with SilverRock Development Company for the development of the Talus project (formerly SilverRock Resort). All of the enumerated cases above were filed on Monday, August 5, 2024, after the required 72 - hour publication and noticing requirements for posting the public meeting agenda per the Brown Act. CITY COUNCIL MINUTES Page 1 of 17 AUGUST 6, 2024 Mr. Ihrke noted there is an immediate need for Council to receive an update, discuss, and possibly take action on the newly filed bankruptcy cases as follows: • Federal laws are triggered when a voluntary bankruptcy petition is filed, including an automatic stay (or "freeze") that potentially affects the ability to take actions affecting the assets of the debtor, including: ✓ The sale of real property owned by SilverRock Development Company, whether by foreclosure or otherwise; ✓ The ability to enter into and enforce contracts affecting the real property held by SilverRock Development Company, including (among other agreements) the Purchase, Sale, and Development Agreement (PSDA) with the City; and ✓ Pending litigation that parties may have against SilverRock Development Company, including the City's lawsuit against all of the debtors and other named defendants, identified as Closed Session Item No. 1 on tonight's agenda. • Additionally, the filing of bankruptcy cases is relevant to Business Session Item No. 1 regarding Review Term Sheet Relating to Proposed Interim Agreement for Transfer of Developer Rights and Obligations for the Talus Project (formerly SilverRock Resort) on the Council's August 6, 2024, published and noticed Special Meeting Agenda to be held at 4 p.m. this afternoon, as the bankruptcy filings may affect the ability for any parties, or persons or businesses that are not SilverRock Development Company, to enforce provisions by contract that affect the real property held by SilverRock Development Company. Mr. Ihrke said, procedurally, in accordance with the Brown Act, since this matter came to the attention of staff subsequent to publishing the agenda packet on Friday, August 2, 2024, and because there is a need to take immediate action by the Council, and the City Attorney needs to update and receive direction from Council on the potential effects of the bankruptcy filings, Council may add the proposed Closed Session Item No. 2 on tonight's agenda by a minimum four -fifth vote. City Attorney Ihrke noted that at the conclusion of Closed Session, any action(s) taken will be reported out pursuant to the Brown Act. MOTION — A motion was made and seconded by Mayor Pro Tem Pefia/Councilmember Fitzpatrick to add Closed Session Item No. 2 to the agenda. Motion passed unanimously. Mayor Evans said she will leave tonight's Council meeting around 5 p.m. due to a conflicting meeting engagement and will turn over Presiding Officer duties to Mayor Pro Tem Pena in her absence, and will return and rejoin the meeting as soon as she is able to do so. CITY COUNCIL MINUTES Page 2 of 17 AUGUST 6, 2024 CLOSED SESSION 1. CONFERENCE WITH REAL LEGAL COUNSEL — EXISTING LITIGATION; PURSUANT TO PARAGRAPH (1) OF SUBDIVISION (d) OF GOVERNMENT CODE SECTION 54956.9 NAME OF CASE: CITY OF LA QUINTA v. SILVERROCK DEVELOPMENT COMPANTY, ET AL. CASE NUMBER: PENDING 2. Added at Confirmation of Agenda pursuant to Government Code Section 54954.2 (b)(2) [Brown Act] »> CONFERENCE WITH LEGAL COUNSEL — EXISTING LITIGATION; PURSUANT TO PARAGRAPH (1) OF SUBDIVISION (d) OF GOVERNMENT CODE SECTION 54956.9 CASES NAMES AND NUMBERS — MULTIPLE (listed below, all in U.S. Bankruptcy Court, District of Delaware) CASE NAME: CASE NUMBER SilverRock Development Company, LLC. 24-11647 SilverRock Lifestyle Residences, LLC 24-11648 SilverRock Lodging, LLC 24-11650 SilverRock Luxury Residences, LLC 24-11652 SilverRock Phase I, LLC 24-11654 RGC PA 789, LLC 24-11657 COUNCIL RECESSED THE OPEN SESSION PORTION OF THE MEETING AND MOVED INTO CLOSED SESSION AT 3:07 P.M. MAYOR EVANS RECONVENED THE OPEN SESSION PORTION OF THE COUNCIL MEETING AT 4:11 P.M. WITH ALL MEMBERS PRESENT REPORT ON ACTION(S) TAKEN IN CLOSED SESSION: City Attorney Ihrke reported the following pursuant to Government Code section 54957.1 (Brown Act): • CLOSED SESSION ITEM NO. 1 — No new reportable action. The authorization to initiate or intervene in litigation as reported out for Closed Session Item No. 2 from the July 2, 2024, Council meeting remains in place, and no new action was taken tonight for Closed Session Item No. 1 that requires additional reporting. In accordance with Government Code section 54957.1, subdivision (a)(2), upon the formal commencement of or intervening in any litigation, the action, name of the parties, and other particulars of the litigation may be disclosed upon inquiry. CITY COUNCIL MINUTES Page 3 of 17 AUGUST 6, 2024 • Added at Confirmation of Agenda pursuant to the Brown Act »> CLOSED SESSION ITEM NO. 2 — Council took the following action: MOTION — A motion was made and seconded by Councilmembers Fitzpatrick/ McGarrey to authorize the City Attorney with the coordination of the City Attorney's Office to defend and protect the interests of the City in the multiple bankruptcy cases filed by SilverRock Development Company and its respective affiliates. Motion passed unanimously. At the request of Council, Mr. Ihrke further summarized the recent history relating to the Talus project (formerly SilverRock Resort) that led to SilverRock Development Company and its affiliates filing Chapter 11 bankruptcy. Mr. Ihrke summarized that late last year construction work at the Talus development remained stopped because contractors had not been paid. At that time, SilverRock Development Company indicated that it was working to line up what was defined as "recapitalization loans" with funding sources that led to Council approving Amendment No. 5 to the Purchase, Sale, and Development Agreement (PSDA), which is the main operative agreement for the development of the project. Among other provisions, Amendment No. 5 required that the recapitalization funding with the lenders had to close no later than June 30, 2024. In and around late April and early May of 2024, there were concerns that the recapitalization funding might not close by the June 30, 2024 deadline, so multiple parties, including the City, SilverRock Development Company (and its affiliates), and several other creditors, as well as a potential successor developer, entered into a Memorandum of Understanding and Agreement (MOU), executed May 24, 2024, that served as a backup plan in case the recapitalization funding did not close timely. When the recapitalization funding did not close by June 30, 2024, the MOU then allowed for the successor developer to work to pay off the creditors, but during that time, SilverRock Development Company frustrated the purpose by filing encumbrances, including deeds of trust and mechanics liens, that the City has alleged in its pending lawsuit as not being authorized and invalid encumbrances recorded against the portion of the Talus property currently held by SilverRock Development Company (or its affiliates). With the MOU expiring shortly and the City Manager and City Attorney learning late last night — the night before today's Council meeting — that SilverRock Development Company and its various affiliates have filed for bankruptcy, these actions and occurrences led to the addition of Closed Session Item No. 2 on tonight's agenda as an emergency item, with the action taken by Council as reported out by Mr. Ihrke. PLEDGE OF ALLEGIANCE Mayor Evans led the audience in the Pledge of Allegiance. MAYOR EVANS RECESSED THE COUNCIL MEETING AT 4:15 P.M. TO CONDUCT THE SPECIAL COUNCIL MEETING AND THE HOUSING AUTHORITY SPECIAL MEETING MAYOR EVANS RECONVENED THE COUNCIL MEETING AT 4:30 P.M. WITH ALL MEMBERS PRESENT CITY COUNCIL MINUTES Page 4 of 17 AUGUST 6, 2024 PUBLIC COMMENT ON MATTERS NOT ON THE AGENDA PUBLIC SPEAKER: Jeff Fishbein, Chair of the La Quinta Chamber of Commerce, Coldwell Banker Realtor, and La Quinta resident — provided an update on Chamber events and activities. PUBLIC SPEAKER: Arlene Gotshalk, La Quinta — spoke of the multiple delivery means for emergency response information that is often confusing, outdated and inaccurate; suggested the City create a central emergency response website, and designate one City representative as spokesperson. ANNOUNCEMENTS, PRESENTATIONS AND WRITTEN COMMUNICATIONS 1. PROCLAMATION IN RECOGNITION AND REMEMBRANCE OF KATHERINE VOGTS FOR HER DEDICATION, KINDNESS, HEROISM, AND UNWAVERING SPIRIT IN SERVING HER COMMUNITY Mayor Evans and Councilmembers presented a Proclamation in recognition and remembrance of Katherin Vogts to members of her family. CONSENT CALENDAR 1. APPROVE COUNCIL MEETING MINUTES DATED JUNE 5, 2024 2. EXCUSE ABSENCE OF COMMISSIONER BATAVICK FROM THE AUGUST 14, 2024, FINANCIAL ADVISORY COMMISSION 3. ACCEPT ON-SITE IMPROVEMENTS ASSOCIATED WITH THE POLO VILLAS RESIDENTIAL DEVELOPMENT, TRACT MAP NO. 33085, LOCATED WEST OF MADISON STREET BETWEEN AVENUES 50 AND 52 4. APPROVE PLANS, SPECIFICATIONS, ENGINEER'S ESTIMATE, AND ADVERTISE FOR BID THE PAVEMENT MANAGEMENT PLAN FISCAL YEAR 2024/25 FRED WARING DRIVE AND MISCELLANEOUS LOCATIONS PROJECT NO. 2024-12 5. APPROVE PLANS, SPECIFICATIONS, ENGINEER'S ESTIMATE, AND ADVERTISE FOR BID THE SILVERROCK TEMPORARY GOLF CART PATH PAVING PROJECT NO. 2024-13 6. AWARD CONTRACT FOR CONSTRUCTION OF THE EISENHOWER BASIN SLOPE REPAIR PROJECT NO. 2023-22, LOCATED ON THE WEST SIDE OF EISENHOWER DRIVE BETWEEN AVENIDA FERNANDO AND COACHELLA DRIVE CITY COUNCIL MINUTES Page 5 of 17 AUGUST 6, 2024 7. APPROVE AGREEMENT FOR CONTRACT SERVICES WITH RY+AO FOR DESIGN SERVICES FOR MAINTENANCE AND OPERATIONS YARD PROJECT NO. 2018-05 8. APPROVE AGREEMENT FOR CONTRACT SERVICES WITH RAINY DAY ROOFING FOR ON-CALL ROOFING SERVICES 9. APPROVE AMENDMENT NO. 1 TO AGREEMENT FOR CONTRACT SERVICES WITH BMO BANK, N.A. FOR BANKING AND MERCHANT SERVICES 10. RECEIVE AND FILE REVENUE AND EXPENDITURE REPORT DATED MAY 31, 2024 11. APPROVE DEMAND REGISTERS DATED JULY 12, 19, AND 26, 2024 CONSENT CALENDAR — COMMENTS ITEM NO. 5: Councilmember Fitzpatrick said the golf cart path at SilverRock is something that is needed, she is in support, and it is part of protecting the City's investment. City Manager McMillen added that the temporary nature of the golf paths, it is important to mitigate the dust, and given the uncertainty of the timeframe of the Talus development, the golf paths need to be in place to protect the City's recent investment in a new golf cart fleet. This is the least expensive way to properly mitigate the dust. ITEM NO. 7: Mayor Evans said the agreement with RY+AO is the first phase of the Corporate Yard project which will be brought back in phases, and this project is long overdue. ITEM NO. 4: Councilmember Fitzpatrick said the City continues to make substantial investment in pavement management, streets resurfacing, and roadways infrastructure throughout the City; noted this item will approve another sizable expenditure for pavement management; inability to complete the paving of Highway 111 at this time is due to delays in federal funding, thus, the Pavement Management Program (PMP) schedule has been amended; noted the City will hold a community outreach meeting on Thursday, August 15, 2024, at 5 p.m., at City Hall and can be attended virtually, to discuss the City's upcoming PMP, anticipated to begin construction in Fall of 2024; and encouraged the public to attend and comment. MOTION — A motion was made and seconded by Councilmembers Pena/Fitzpatrick to approve the Consent Calendar as presented. Motion passed unanimously. CITY COUNCIL MINUTES Page 6 of 17 AUGUST 6, 2024 BUSINESS SESSION 1. RECEIVE AND FILE ANNUAL COMPREHENSIVE FINANCIAL REPORT FOR YEAR ENDED JUNE 30, 2023 Finance Director Martinez presented the staff report, which is on file in the Clerk's Office. MAYOR EVANS SAID SHE HAD TO LEAVE THE COUNCIL MEETING DUE TO A CONFLICTING ENGAGEMENT, AND LEFT THE DAIS AT 5:03 P.M. MAYOR PRO TEM PEI IA TOOK OVER PRESIDING OFFICER DUTIES CONSULTANT: Lauryn Stapleton, Senior Manager with Eide Bailly LLP, auditing firm for the City — explained the auditors scope of work; reported that auditors provided an "unmodified opinion," which is the highest level; and explained the role of the auditors and the findings. Mayor Pro Tem Pena thanked staff for their efforts and dedication in serving the City; and noted the City has been awarded the Certificate of Achievement for Excellence in Financial Reporting by Government Finance Officers Association of the United States and Canada for the ACFR for 26 years in a row. MOTION — A motion was made and seconded by Councilmembers Fitzpatrick/McGarrey to receive and file the Annual Comprehensive Financial Report for the year ended June 30, 2023, as presented. Motion passed: ayes — 4, noes — 0, abstain — 0, absent — 1 (Evans). STUDY SESSION — None PUBLIC HEARINGS 1. ADOPT RESOLUTION TO APPROVE PLACEMENT OF PUBLIC NUISANCE ABATEMENT ASSESSMENTS ON THE FISCAL YEAR 2024/25 PROPERTY TAX ROLL [RESOLUTION NO. 2024-032] MAYOR PRO TEM PENA DECLARED THE PUBLIC HEARING OPEN AT 5:11 P.M. Public Safety Deputy Director Mendez presented the staff report, which is on file in the Clerk's Office. PUBLIC SPEAKER: None MAYOR PRO TEM PENA DECLARED THE PUBLIC HEARING CLOSED AT 5:13 P.M. MOTION — A motion was made and seconded by Councilmembers McGarrey/Fitzpatrick to adopt Resolution No. 2024-032 as presented: CITY COUNCIL MINUTES Page 7 of 17 AUGUST 6, 2024 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA QUINTA, CALIFORNIA, PLACING A SPECIAL ASSESSMENT AND PROVIDING FOR COLLECTION ON TAX ROLLS OF CERTAIN PROPERTIES FOR COSTS OF ABATEMENT OF PUBLIC NUISANCE Motion passed: ayes — 4, noes — 0, abstain — 0, absent — 1 (Evans). 2. »> Agenda reordered — this item was taken up after Departmental Reports: PUBLIC HEARING ITEM NO. 2 WILL BE HEARD AT 6:00 P.M. OR SOON THEREAFTER DEPARTMENTAL REPORTS »> taken out of Agenda order All reports are on file in the City Clerk's Office. 3. CITY CLERK — SHORT-TERM VACATION RENTAL QUARTERLY REPORT FOR APRIL TO JUNE 2024 City Clerk Radeva presented the departmental report, which is on file at the Clerk's office. Council discussed the number of complaints in PGA West and north La Quinta. 4. DESIGN AND DEVELOPMENT — SOUTHERN SPHERE OF INFLUENCE OUTREACH UPDATE Design and Development Director Castro presented the departmental report, which is on file at the Clerk's office. Council discussed the residency of survey respondents, and the responses received so far. MAYOR PRO TEM PENA CALLED FOR A BRIEF RECESS AT 5:25 P.M. MAYOR PRO TEM PENA RECONVENED THE COUNCIL MEETING AT 6:07 P.M. WITH COUNCILMEMBERS FITZPATRICK, McGARREY, AND SANCHEZ PRESENT, AND MAYOR EVANS ABSENT PUBLIC HEARINGS 2. ADOPT RESOLUTIONS TO (1) CERTIFY AN ENVIRONMENTAL IMPACT REPORT (EA 20217-0008, SCH # 2018011023) AND (2) APPROVE GENERAL PLAN AMENDMENT 2017-0002, SPECIFIC PLAN 2017-0004, AND TENTATIVE TRACT MAP 2017-0008 (TTM 37387) INTRODUCE ORDINANCES TO APPROVE (1) ZONE CHANGE 2017-00002, AND (2) DEVELOPMENT AGREEMENT 2021-0001 PROJECT: TRAVERTINE — CONSISTING OF 1,200 RESIDENTIAL UNITS, 45,000 SQUARE FOOT HOTEL WITH 100 VILLAS, SPA AND CITY COUNCIL MINUTES Page 8 of 17 AUGUST 6, 2024 WELLNESS CENTER AND OTHER COMMERCIAL AND RECREATIONAL USES CEQA: AN ENVIRONMENTAL IMPACT REPORT (EA 2017-0008, SCH # 2018011023) HAS BEEN PREPARED FOR THE PROPOSED PROJECT LOCATION: SOUTH OF AVENUE 60, WEST OF MADISON STREET, AND NORTH OF AVENUE 64 [RESOLUTION NOS. 2024-033 AND 2024-034; ORDINANCE NOS. 616 AND 617] MAYOR PRO TEM PEVA DECLARED THE PUBLIC HEARING OPEN AT 6:08 P.M. Planning Director Flores presented the staff report, which is on file in the Clerk's Office. City Clerk Radeva said a HAND-OUT was received from Mark Rogers, Principal with TRG Land, and Applicant for the project, providing comments from the June 25, 2024, Planning Commission meeting deliberations of the project, specifically regarding the proposed raised roadway on Avenue 62 and infrastructure site improvements, which were distributed to Council, made public, published on the City's website, and included in the public record of this meeting. APPLICANT PRESENTATION: Mark Rogers, Principal with TRG Land, and Applicant for the Travertine project — provided a history of the years and events leading to this project since 1988, the individual responsible for its vision, and changes to the original project. PUBLIC SPEAKER: Judy Viera, La Quinta — not opposed to the project, but does oppose the elevated roadway on Avenue 62 due to the lighting, headlights and noise that would affect residents at Trilogy; and requested that if approval is granted, the City add a condition that only utilities be permitted over Avenue 62 and Dike No. 4. PUBLIC SPEAKER: Sal Amezquita, La Quinta, representing Western States Regional Council of Carpenters — requested that the City require the developer to use contractors that hire locally, pay prevailing wages, and utilize apprentices from State certified apprentice programs when developing this project to help mitigate additional vehicle miles traveled when contractors use workers from out of the area. PUBLIC SPEAKER: Bob Lasser, La Quinta (received donated time from JoAnn Thompson) — not opposed to the project, only opposed to the 36 -foot -high elevated roadway on Avenue 62 over Dyke No. 4 due to its impact on adjacent Trilogy residents, and its inconsistency with the General Plan; and the primary project entrance should be moved to the Jefferson Street extension. PUBLIC SPEAKER: Carolyn Winnor, La Quinta —Trilogy resident; opposed due to Avenue 62 elevated roadway; provided a handout entitled La Quinta Village Apartments vs. Avenue 62 elevated roadway; requested that the project entrance be relocated to the Jefferson Street extension. CITY COUNCIL MINUTES Page 9 of 17 AUGUST 6, 2024 PUBLIC SPEAKER: Keith Boyle, La Quinta — Trilogy resident; opposed to the proposed elevated roadway on Avenue 62; the Environmental Impact Report (EIR) should be amended to have primary access at Jefferson Street extension; and supported following the Planning Commission recommendation for primary access. PUBLIC SPEAKER: Sheila Warren, La Quinta (received donated time from Derek Wong) — Trilogy resident; provided a written handout included in the Agenda; explained the information provided in her handout; opposed to the elevated roadway due to noise and visual impact; and the solution is to make Avenue 62 for utilities only, and Jefferson Street extension the main entrance. PUBLIC SPEAKER: Andrew Sincosky, La Quinta (received donated time from Raynette Sincosky) — did not wish to speak when called upon by Mayor Pro Tem. PUBLIC SPEAKER: Bobbie Fleury, La Quinta (received donated time from Sandy Lanham) — Trilogy resident; provided a handout included in the Agenda; opposed to elevated roadway; supported using Avenue 62 for utilities only and Jefferson Street extension as the main entrance/exit. PUBLIC SPEAKER: Mark Reider, La Quinta, representing the Trilogy residential community in his capacity of Homeowners Association President (received donated time from Phil Jamison) — the consensus of the HOA Board of Directors is to oppose the elevated roadway on Avenue 62; questioned the EIR vehicle count, and noise data; the absence of headlight impacts in the EIR; supports making Jefferson Street extension the primary access to this development; and Developer cost should not be a consideration in EIR review. PUBLIC SPEAKER: Laura DuMaurier, La Quinta (received donated time from Holly Wong) — Trilogy resident; opposed to the proposed elevated roadway on Avenue 62 due to pollutants from the elevated roadway which was not addressed in the EIR; supported moving the entrance to Jefferson Street extension. PUBLIC SPEAKER: Wendelyn Slipakoff, La Quinta (received donated time from Dennis Slipakoff— Trilogy resident; opposed to the project due to blocking of mountain and night sky views as well as the other issues mentioned by residents; and approvals should not be based on what is cheaper for a developer. Planning Director Flores responded to Mayor Pro Tem's earlier question: trips per day on Avenue 62 is 3,200. PUBLIC SPEAKER: Alena Callimanis, La Quinta (received donated time from Judy Hovjacky) — opposed to the proposed elevated roadway on Avenue 62; provided photos depicting the negative visual, noise, fumes, and aesthetic impacts of the elevated roadway of Avenue 62 over Dike No. 4; not opposed to the utilities going over the Dike. CITY COUNCIL MINUTES Page 10 of 17 AUGUST 6, 2024 PUBLIC SPEAKER: Shaul Mezrahi, La Quinta — representing the Coral Canyon site, directly north of Travertine; has worked closely with the Travertine developers; in support of the development due to its benefits to the community expansion and housing. PUBLIC SPEAKER: Maria Allgood, La Quinta — half owner/representative of the land labeled NAP on the Travertine project documents; supports the Travertine project, but concerned about the project's effects on the property value and marketability of her property and the limitations of the 24 -foot access easement; the proximity of the Jefferson Street extension after reconfiguration; allowable and prospective business intended for the tourist commercial area of the project; and the proximity and intent of the interconnector trail surrounding her property. City Clerk Radeva said WRITTEN PUBLIC COMMENTS were received from the residents 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: • Alena Callimanis, La Quinta — comments regarding proposed elevated roadway on Avenue 62 over Dike No. 4. • Desert Valley Builders Association — Gretchen Gutierrez, President — support of development and new local jobs. • John Miller, La Quinta — opposed due to proposed elevated roadway on Avenue 62, noise, traffic, and infrastructure concerns, and impacts on local wildlife, specifically bighorn sheep. • Mitchell Tsai Law — opposed due to improper processing of the draft EIR. • Cathy Morton, La Quinta — opposed due to proposed elevated roadway on Avenue 62 over Dike No. 4. • John Perry, La Quinta — opposed and echoed comments provided by resident John Miller noted above. • Sunrise Company — Randall Bone, Chief Executive Officer — support of future development in La Quinta. MAYOR PRO TEM PENA CALLED FOR A BRIEF RECESS AT 7:45 P.M. MAYOR PRO TEM PENA RECONVENED THE COUNCIL MEETING AT 7:54 P.M. WITH COUNCILMEMERBS FITZPATRICK, McGARREY, AND SANCHEZ PRESENT, AND MAYOR EVANS ABSENT Council questioned the Applicant regarding the need for the Avenue 62 elevated roadway and not the use of the Jefferson Street extension as primary access; why Avenue 62 is not used for utilities only; the status of the Coral Mountain project; fire truck access over Avenue 62 elevation; who would be permitted to use the hiking trails; and need to include the calculation for added police costs. Council discussed its desire that developers hire local workers and pay prevailing wage; La Quinta will not gain any property tax from half this property until around 2040; landscaping plans on Jefferson Street and Avenue 62; and the importance of ensuring that the Development Agreement (DA) includes terms and provisions requiring the CITY COUNCIL MINUTES Page 11 of 17 AUGUST 6, 2024 homeowners' association (HOA) of the proposed development to be responsible for the first level of monitoring, compliance, and enforcement of short-term vacation rentals (STVR) in its Covenants, Conditions, and Restrictions (CC&Rs). City Attorney Ihrke said he had discussed, with legal counsel for the project, adding some of the STVR management provisions included in the recently approved DA for the Coral Mountain project into the draft DA for the Travertine project, which required the HOA to be responsible for timely collection and reporting of transient occupancy tax (TOT) and ensuring compliance with the City's STVR Program regulations, and to have this requirement be reflected in the recorded CC&Rs. The DA for the proposed Travertine project already includes provisions that allow STVR uses for the residential component. A summary of the additional STVR provisions, which will generally be the same or similar text from Section 5 and its subsections of the Coral Mountain DA and then incorporated and added to Section 6 of the DA for the Travertine project, is provided below so that Council may elect to introduce the ordinance tonight with these amendments to the DA read into the record on first reading of the ordinance. If the Council adopts the additional STVR provisions with the introduction of the ordinance for first reading tonight, then the text will be included with the ordinance when it is brought back for second reading. City Attorney Ihrke provided the following summary of additional STVR provisions with reference to the Coral Mountain DA sections: In order to ensure the timely collection and reporting of the applicable TOT, and compliance with the applicable operational requirements and conditions set forth in the STVR regulations, the Developer or it successor or assignee shall be the "authorized agent or representative" (as that term is defined in the STVR regulations, or, if the definition is removed during the Term of this Agreement, as defined in Chapter 3.25 of the La Quinta Municipal Code, as of the Effective Date of this Agreement) for all STVRs and STVR permits within the Project, including but not limited to applying for and managing all STVR permits, making all reservations and payments, and ensuring compliance with all other requirements of the STVR regulations, and shall do so exclusively through a central rental operator pursuant to the applicable section of the agreement, which shall be confirmed at the issuance and renewal of each STVR permit. This obligation shall be included in the project's CC&Rs, which are required under the DA to be recorded against the project. All CC&Rs recorded pursuant to the DA on any property within the project where residential uses are allowed shall expressly authorize STVRs for all residential units. All such CC&Rs shall state the operational requirements and standard conditions applicable to STVRs in that tract or planning area of the project. The owner of the property is responsible for ensuring that these provisions would be complied with or, to the extent there may be successors to the current applicant, there would be the ability to comply with these requirements by procuring a contract to provide such services with an on-site rental management agent. CITY COUNCIL MINUTES Page 12 of 17 AUGUST 6, 2024 There would also be express provisions to allow for the owner to assign those obligations out in accordance with the DA notwithstanding any other prohibitions on transfers. Coral Mountain Development Agreement text, cited for additional STVR provisions: 5.1 Short Term Vacation Rentals as a Permitted Use. This Agreement does hereby provide that short-term vacation rentals are a permitted use in all Planning Areas within the Project and on the Site that allow residential uses, and the rights to such permitted use are hereby vested pursuant to the terms of this Agreement, and this vested right shall inure to the benefit of Developer and all owners of residential units within the Project. As such, the rights and obligations under this Section 5 shall survive the sale of each residential unit to a third -party homebuyer and termination of this Agreement to each such unit. Except to the extent expressly provided otherwise in this Agreement, the City shall not impose on or apply to the Project (whether by action of the Council, or other legislative body, or by initiative, referendum, or other measure) any ordinance, resolution, standard, directive, condition, or other measure that is in conflict with this provision or that would materially interfere with right to apply for and, with City staff approval, operate short-term vacation rentals in all residential units within the Project. Such short-term vacation rentals within the Project shall be subject to the Short - Term Vacation Rental Regulations, including but not limited to violations and penalties for such violations for failing to comply with the City's Short -Term Vacation Rental Regulations. (For reference only, a copy of Chapter 3.25 of the La Quinta Municipal Code in effect as of the Effective Date is attached to this Agreement as Exhibit "G". In the event Chapter 3.25 is repealed in its entirely, only then the provisions of Chapter 3.25 as attached to this Agreement shall govern the permitting, operation, and renewal of short- term vacation rental permits in the Project and on the Site.) In order to ensure the timely collection and reporting of the applicable transient occupancy taxes, and compliance with the applicable operational requirements and conditions set forth in the Short -Term Vacation Rental Regulations, the Developer or its successor or assignee shall be the "authorized agent or representative" (as that term is defined in the Short -Term Vacation Rental Regulations, or, if the definition is removed during the Term of this Agreement, as defined in Chapter 3.25 as of the Effective Date of this Agreement) for all short-term vacation rentals and short-term vacation rental permits within the Project, including but not limited to applying for and managing all short-term vacation rental permits, making all reservations and payments, and ensuring compliance with all other requirements of the Short -Term Vacation Rental Regulations, and shall do so exclusively through a central rental operator pursuant to Section 5.3.1 of this Agreement, which shall be confirmed at the issuance and renewal of each short-term vacation rental permit; provided, however, that the "owner" (as that term is defined in the Short -Term Vacation Rental Regulations, or, if the definition is removed during the Term of this Agreement, as defined in Chapter 3.25 as of the Effective Date of this Agreement) shall remain ultimately obligated as the holder of the short-term vacation rental permit for any and all remedial actions necessary for compliance with the Short -Term Vacation Rental Regulations and this Agreement, including but not limited to the payment of any fines or recorded liens or any other violations for non-compliance; and, provided further, that the `owner" shall have a process CITY COUNCIL MINUTES Page 13 of 17 AUGUST 6, 2024 available, through an independent arbitrator or neutral decision -maker designated by the Developer or homeowner's association ("HOA") of which the short-term vacation rental unit owner is a member, to petition for a change of that owner's "authorized agent or representative" because the owner demonstrates, with a preponderance of evidence, that the "authorized agent or representative," designated by the Developer or its successor or assignee, has failed to perform its duty to ensure compliance with all other requirements of the Short -Term Vacation Rental Regulations for that owner's short-term vacation rental unit. The CC&Rs as described in Section 3.8 of this Agreement shall include the terms and conditions, and detailed specifics for process and decision, whenever an owner may petition the HOA for a change in that owner's "authorized agent or representative" as required by this Section 5.1; the City Manager and City Attorney shall review and approve, in their reasonable discretion and not to be unreasonably delayed or denied, said terms and conditions in the CC&Rs that would apply if an owner were to petition the HOA for a change in that owner's "authorized agent or representative" as required by this Section 5.1. 5.3.1 Rental Management Program Developer shall be responsible for ensuring that for the Term of this Agreement, one or more contract(s) shall be in effect at all times which provide opportunities to the owners of the resort residential units to have the ability to make their units available for short-term rentals permitted by this Agreement and the CC&Rs. The contract or contracts may, but are not required to be, with an on-site rental management agent. Developer may assign this obligation to its successors in accordance with this Agreement. Council discussed that this STVR provision is intended to be included in all new developments in the City; review and approval by other required agencies; ability of Imperial Irrigation District to provide power for the project; fire truck ease of access; easements and approvals needed to extend Jefferson Street; and plans for behind Dike No. 4 and flood control. MAYOR PRO TEM PENA DECLARED THE PUBLIC HEARING CLOSED AT 8:26 P.M. Council discussed the innovative, environmentally sensitive design of the project; reminiscent of The Reserve project in Palm Desert; as Jefferson Street extension is completed, the Avenue 62 elevated roadway use will reduce; new projects typically are opposed, including the Trilogy project; recognition that this is a responsible developer; seen as a great asset to the community; General Plan includes the original 1995 project, and the current project does not contradict the goals of the General Plan; the timing is the main issue; gave examples of opposition to all past developments in La Quinta; and the progressive initiatives that the City has enacted and been a leader on. MOTION — A motion was made and seconded by Councilmembers Fitzpatrick/Sanchez to adopt Resolution No. 2024-033 making findings and approving a statement of overriding considerations pursuant to the Environmental Quality Act, certifying the CITY COUNCIL MINUTES Page 14 of 17 AUGUST 6, 2024 Environmental Impact Report (EA 2017-0008, SCH # 2018011023), and adopting a mitigation monitoring and reporting program for the Travertine project, as presented: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA QUINTA, CALIFORNIA, CERTIFYING THE ENVIRONMENTAL IMPACT REPORT (SCH # 2018011023) FOR THE TRAVERTINE PROJECT CONSISTING OF 1,200 RESIDENTIAL UNITS, 45,000 SQUARE FOOT HOTEL WITH 100 VILLAS, SPA, AND WELLNESS CENTER AND OTHER COMMERCIAL AND RECREATIONAL USES; ADOPTING ENVIRONMENTAL FINDINGS AND STATEMENT OF OVERRIDING CONSIDERATIONS PURSUANT TO THE CALIFORNIA ENVIRONMENTAL QUALITY ACT; AND ADOPTING A MITIGATION MONITORING AND REPORTING PROGRAM CASE NUMBER: ENVIRONMENTAL ASSESSMENT 2017-0008 PROJECT: TRAVERTINE APPLICANT: TRG LAND Motion passed: ayes — 4, noes — 0, abstain — 0, absent — 1 (Evans). MOTION — A motion was made and seconded by Councilmembers Fitzpatrick/Sanchez to adopt Resolution No. 2024-034 approving General Plan Amendment 2017-0002, Specific Plan 2017-0004, and Tentative Tract Map 2017-0008 (TTM 37387) for the Travertine project subject to the Conditions of Approval, as presented: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA QUINTA, CALIFORNIA, TO APPROVE A GENERAL PLAN AMENDMENT, SPECIFIC PLAN AMENDMENT, AND TENTATIVE TRACT MAP TO ALLOW THE DEVELOPMENT OF 1,200 RESIDENTIAL UNITS, 100 ROOM HOTEL ON 855 ACRES, LOCATED SOUTH OF AVENUE 60, NORTH OF AVENUE 64, WEST OF MADISON STREET CASE NUMBERS: GENERAL PLAN AMENDMENT 2017-0002 SPECIFIC PLAN 2017-0004 TENTATIVE TRACT MAP 2017-0008 (TTM 37387) PROJECT: TRAVERTINE APPLICANT: TRG LAND INC. Motion passed: ayes — 4, noes — 0, abstain — 0, absent — 1 (Evans). MOTION — A motion was made and seconded by Councilmembers Fitzpatrick/Sanchez to take up Ordinance No. 616 by title and number only and waive further reading approving Zone Change 2017-0002 for the Travertine project, as presented. Motion passed: ayes — 4, noes — 0, abstain — 0, absent — 1 (Evans). City Clerk Radeva read the following title of Ordinance No. 616 into the record: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LA QUINTA, CALIFORNIA, AMENDING THE ZONING MAP TO MODIFY THE AREA AND LOCATIONS OF THE LOW DENSITY RESIDENTIAL, TOURIST COMMERCIAL, AND OPEN SPACE ZONING DESIGNATIONS, REMOVE THE MEDIUM HIGH DENSITY RESIDENTIAL, NEIGHBORHOOD COMMERCIAL AND GOLF COURSE ZONING DESIGNATIONS AND ADD MEDIUM DENSITY CITY COUNCIL MINUTES Page 15 of 17 AUGUST 6, 2024 RESIDENTIAL ZONING DESIGNATION WITHIN THE TRAVERTINE SPECIFIC PLAN AREA CASE NUMBER: ZONE CHANGE 2017-0002 PROJECT: TRAVERTINE APPLICANT: TRG LAND INC. MOTION — A motion was made and seconded by Councilmembers Fitzpatrick/Sanchez to introduce at first reading Ordinance No. 616 as presented. Motion passed: ayes — 4, noes — 0, abstain — 0, absent — 1 (Evans). MOTION — A motion was made and seconded by Councilmembers Fitzpatrick/Sanchez to take up Ordinance No. 617 by title and number only and waive further reading approving Development Agreement 2021-0001 for the Travertine project, as amended, to include additional provisions under Article 6 related to short-term vacation rental management requirements as noted by the City Attorney's comments above. Motion passed: ayes — 4, noes — 0, abstain — 0, absent — 1 (Evans). City Clerk Radeva read the following title of Ordinance No. 617 into the record: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LA QUINTA, CALIFORNIA, APPROVING A DEVELOPMENT AGREEMENT BY AND BETWEEN THE CITY OF LA QUINTA AND TRAVERTINE CORPORATION, LLC RELATING TO THE TRAVERTINE PROJECT AND FINDING THAT THE PROJECT IS CONSISTENT WITH ENVIRONMENTAL ASSESSMENT 2017- 0008 CASE NUMBER: DEVELOPMENT AGREEMENT 2021-0002 PROJECT: TRAVERTINE APPLICANT: TRG LAND INC. MOTION — A motion was made and seconded by Councilmembers Fitzpatrick/Sanchez to introduce at first reading Ordinance No. 617, as amended, to include additional provisions under Article 6 related to short-term vacation rental management requirements as noted by the City Attorney's comments above. Motion passed: ayes — 4, noes — 0, abstain — 0, absent — 1 (Evans). DEPARTMENTAL REPORTS »> taken out of Agenda order, see above, after Public Hearing Item No. 1 MAYOR'S AND COUNCIL MEMBERS' ITEMS Councilmember Fitzpatrick said as a reminder the City will hold a community outreach meeting on Thursday, August 15, 2024, at 5 p.m., at City Hall and can be attended virtually, to discuss the City's upcoming PMP, anticipated to begin construction in Fall of 2024; and encouraged the public to attend and comment; and noted she visited La Quinta Park and toured the installation of the new, wonderful shade structure. CITY COUNCIL MINUTES Page 16 of 17 AUGUST 6, 2024 REPORTS AND INFORMATIONAL ITEMS La Quinta's representative for 2024, Mayor Pro Tem Pena reported on his participation in the following organization's meeting: • SUNLINE TRANSIT AGENCY La Quinta's representative for 2024, Councilmember Sanchez reported on his participation in the following organization's meeting: • ANIMAL CAMPUS COMMISSION ADJOURNMENT There being no further business, a motion was made and seconded by Councilmembers McGarrey/Sanchez to adjourn at 8:54 p.m. Motion passed: ayes — 4, noes — 0, abstain — 0, absent — 1 (Evans). Respectfully submitted, ./ Pr1/�s���_ MONIKA RADEVA, City Clerk City of La Quinta, California CITY COUNCIL MINUTES Page 17 of 17 AUGUST 6, 2024