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2024 10 15 CC Minutes4OF TO' CALL TO ORDER CITY COUNCIL MINUTES TUESDAY, OCTOBER 15, 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 Mayor Evans said she serves on the board of the Impact Through Golf Foundation, a non-profit organization, and as this is a volunteer position for which she does not receive any compensation, pursuant to Government Code Section 1091.5, there is no potential conflict of interest and she may participate in the discussion and vote for Business Session Item No. 1 regarding amending the agreement for contract services with the American Express Gold Tournament for in-kind services for hosting the golf tournament in La Quinta. 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) 2. 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 CITY COUNCIL MINUTES Page 1 of 8 OCTOBER 15, 2024 COUNCIL RECESSED THE OPEN SESSION PORTION OF THE MEETING AND MOVED INTO CLOSED SESSION AT 3:03 P.M. MAYOR EVANS RECONVENED THE OPEN SESSION PORTION OF THE CITY COUNCIL MEETING AT 4:05 P.M. WITH ALL MEMBERS PRESENT REPORT ON ACTION(S) TAKEN IN CLOSED SESSION: Mayor Evans and City Attorney Ihrke reported the following pursuant to Government Code section 54957.1 (Brown Act): • CLOSED SESSION ITEM NO. 1 — no reportable action; and • CLOSED SESSION ITEM NO. 2 — Council did not complete consideration of this item and will reconvene into Closed Session after the Open Session of the meeting. PLEDGE OF ALLEGIANCE Councilmember Sanchez led the audience in the Pledge of Allegiance. PUBLIC COMMENT ON MATTERS NOT ON THE AGENDA PUBLIC SPEAKER: Gregory Cannon, La Quinta — Cove resident, investor in City; complained about the Cove's poor infrastructure — electric, water, and gas; said utility companies refuse to conduct repairs; City's Public Safety and Building staff were not helpful; La Quinta Police substation should be staffed to offer full services; and opined the City is mismanaged because it does not assist residents with utilities. PUBLIC SPEAKER: Phillip Bettencourt, La Quinta — said he is the official representative of the Marine Committee for Rancho La Quinta Homeowners Association (HOA) who are again hosting a Thanksgiving Day Ceremony for the U.S. Marine Corp, which offers Marines use of HOA facilities such as golf, tennis, and pickleball, and provides valley residents the opportunity to share their Thanksgiving Day with Marines from the Air Ground Combat Center in 29 Palms; and extended an invitation to the Council to join the Rancho La Quinta residents at the Ceremony to welcome the Marines. Mayor Evans, on behalf of the Council, thanked the Rancho La Quinta HOA for their hospitality and thoughtfulness. PUBLIC SPEAKER: Lynne Daniels, La Quinta — did not wish to speak when called upon by the Mayor. ANNOUNCEMENTS, PRESENTATIONS AND WRITTEN COMMUNICATIONS 1. ARTS AND MUSIC LINE PROJECT UPDATE — PRESENTATION BY COACHELLA VALLEY ASSOCIATION OF GOVERNMENTS (CVAG) ASSISTANT DIRECTOR OF TRANSPORTATION RANDY BOWMAN CITY COUNCIL MINUTES Page 2 of 8 OCTOBER 15, 2024 CVAG Assistant Director of Transportation Bowman provided a presentation on the anticipated timeline to complete the design, obtain public agencies approvals, bid, award, construct, and educational program efforts of the Arts and Music Line project, approximately a 9 -mile community connector to key destinations, such as schools, affordable housing, retail and employment centers, which will provide three connections to the CV Link and will run along Avenue 48 through the Cities of La Quinta, Indio, Coachella, and Riverside County, from Washington Street to the Whitewater Channel, and another 6 -miles of side streets. Mayor Evans noted that the Arts and Music Line project and the CV Link project (running along the evacuation channel) will connect at Promontory Point, located on Vista Grande, east of Jefferson Street; and La Quinta has approximately 81 miles of bike lanes throughout the city. Mr. Bowman also provided an update on the status of the CV Link regional trail project, a 50 -mile multi -modal transportation project under construction for bicyclists, pedestrians, and low speed electric vehicles, that will run continuously throughout the Coachella Valley cities, from Desert Hot Springs to Coachella. Mayor Evans said the CV Link project is 100% grant funded with Alternative Transportation Program grants, and managed by CVAG. 2. LA QUINTA ART CELEBRATION — NOVEMBER 2024 EVENT SUMMARY PRESENTATION BY EVENT PRODUCER PAUL ANDERSON WITH SCOPE EVENTS Paul Anderson, event producer and CEO of SCOPE Events, LLC, accompanied by Event Director Kathleen Hughes, provided an overview of the successful March 2024 art event, challenges due to weather, high attendance during the reduced three days the festival was open, increased sales, food and beverage; Wi-Fi challenges; plans for the upcoming March 2025 event; November Veteran's Day event plans; commended the Council and staff for their collaboration and support in producing the event; and announced that the La Quinta Art Celebration was named number one Patron Show, fine art and fine craft event, in the United States. Council expressed their gratitude to Mr. Anderson and his staff for their great partnership with the City and provided information regarding volunteering at the events. 3. TALUS DEVELOPMENT PROJECT (FORMERLY SILVERROCK) — STATUS UPDATE City Attorney Ihrke said on August 5, 2024, SilverRock Development Company LLC and its affiliates, collectively referred to as "SDC," voluntarily petitioned for Chapter 11 bankruptcy in U.S. Bankruptcy Court in Delaware; and per Council's direction and approval, the City retained Special Counsel who has continuously been working with the City Manager and City Attorney throughout these proceedings. CITY COUNCIL MINUTES Page 3 of 8 OCTOBER 15, 2024 Mr. Ihrke noted prior announcements regarding the status of the bankruptcy cases are included in the meeting minutes of September 17 and October 1, 2024. Mr. Ihrke said on October 15, 2024, the bankruptcy court approved a second interim order authorizing debtor in possession (DIP) financing, which is the "First step" in the City -led negotiated financing that would be provided to the Chief Restructuring Officer (CRO) to begin clean up and remediation at the Talus project site. The CRO is an independent "supervisor," who administers and oversees the management of the debtors' estate and the proposed reorganization plan to come out of the bankruptcy proceedings, instead of being supervised by the debtor (SDC). The City's DIP Financing is in the form of a loan, bearing interest at the current Local Agency Investment Fund (LAIF) rate set by the State (currently at 4.55%), to be secured by deeds of trust, and final payment of all City -loaned funds is currently set for March 15, 2025, or perhaps repaid earlier or later, depending on the status of the case and the bankruptcy court's approval of a bankruptcy reorganization plan. The DIP Financing funds must be used for specific items at the Talus project site, such as remedial construction work, clean up, and dust and erosion control, which are generally the same as previously summarized for the first interim order. This second interim order was sought and approved by the court to allow additional time for the parties to revise the overall budget that would be in place during the bankruptcy proceedings until a final reorganization plan is presented to the court; and the court continued the final hearing on the DIP Financing until October 31, 2024. Mr. Ihrke said there were several other motions that were scheduled for hearing on October 15, 2024, which were also continued until October 31, 2024, as matters raised by those motions are currently being addressed by the parties and may be concluded on October 31, 2024, with the DIP Financing motion. City Manager McMillen said on September 27, 2024, the bankruptcy court granted the first interim order accepting the DIP Financing on an emergency basis and authorizing the City to issue an initial payment of up to $250,000 of a proposed total $2 million loan that the City would commit, pending the Final Order from the court. On October 11, the City used $95,000 of DIP funds to pay contractors providing fencing at the Talus site, as well as utilities, insurance companies, and storage companies, all of which progress towards the objective of using DIP funds to secure and clean up the site. City Manager McMillen noted he met with representatives from RD Olson Construction, the original contractor for the commercial components of the Talus development and confirmed they are very much interested in staying with the project; and the CRO has been working with RD Olson to identify what is needed to secure the site, ensure the scope of work proposed by RD Olsen is on target and within budget, and to get the site ready for construction when it can resume. CITY COUNCIL MINUTES Page 4 of 8 OCTOBER 15, 2024 Mayor Evans noted the $2 million DIP Financing the City is providing, which will be repaid to the City, ensures the project site will be secured, and keeps the contractors and organizations operating while the bankruptcy proceedings move through the court, and ultimately a new developer is selected and the project gets back on track. Council Member Fitzpatrick said the DIP Financing gives the City some control over how things will move forward. Council asked that a summary of the events to date on the bankruptcy proceedings be posted on the City's website to keep the public informed. CONSENT CALENDAR 1. APPROVE COUNCIL MINUTES DATED SEPTEMBER 17, 2024 2. APPROVE COUNCIL MINUTES DATED OCTOBER 1, 2024 3. EXCUSE ABSENCE OF COMMISSIONER HUNDT FROM THE OCTOBER 8, 2024, PLANNING COMMISSION MEETING 4. ADOPT RESOLUTION DESIGNATING SPEED LIMITS FOR DUNE PALMS ROAD FROM MILES AVENUE TO FRED WARING DRIVE [RESOLUTION NO. 2024-038] 5. ADOPT RESOLUTION AUTHORIZING THE CITY OF LA QUINTA TO JOIN WITH OTHER PUBLIC AGENCIES AS A PARTICIPANT OF THE CALIFORNIA ASSET MANAGEMENT TRUST AND TO INVEST IN SHARES OF THE TRUST AND IN INDIVIDUAL PORTFOLIOS [RESOLUTION NO. 2024-039] 6. APPROVE ASSIGNMENT AND ASSUMPTION AGREEMENTS AND AMENDMENT TO SUBDIVISION IMPROVEMENT AGREEMENTS FOR TRACT MAP NO. 32201, A RESIDENTIAL DEVELOPMENT LOCATED AT THE NORTHWEST CORNER OF AVENUE 60 AND MADISON STREET 7. ACCEPT OFF-SITE IMPROVEMENTS ASSOCIATED WITH THE DIAMANTE RESIDENTIAL DEVELOPMENT, TRACT MAP NO. 30138, LOCATED ON THE NORTH SIDE OF AVENUE 52 WEST OF MADISON STREET 8. RECEIVE AND FILE REVENUE AND EXPENDITURE REPORT DATED AUGUST 31, 2024 9. APPROVE DEMAND REGISTERS DATED SEPTEMBER 27 AND OCTOBER 4. 2024 MOTION — A motion was made and seconded by Councilmembers Pena/Sanchez to approve the Consent Calendar as presented, with Item Nos. 4 and 5 adopting Resolutions No. 2024-038 and 2024-039, respectively. Motion passed unanimously. CITY COUNCIL MINUTES Page 5 of 8 OCTOBER 15, 2024 BUSINESS SESSION MAYOR EVANS SAID SHE SERVES ON THE BOARD OF THE IMPACT THROUGH GOLF FOUNDATION, A NON-PROFIT ORGANIZATION, AND AS THIS IS A VOLUNTEER POSITION FOR WHICH SHE DOES NOT RECEIVE ANY COMPENSATION, PURSUANT TO GOVERNMENT CODE SECTION 1091.5, THERE IS NO POTENTIAL CONFLICT OF INTEREST AND SHE MAY PARTICIPATE IN THE DISCUSSION AND VOTE FOR BUSINESS SESSION ITEM NO. 1 1. APPROVE AMENDMENT NO. 1 TO AGREEMENT FOR CONTRACT SERVICES WITH THE AMERICAN EXPRESS GOLF TOURNAMENT FOR 2025 THROUGH 2027 FOR IN-KIND SERVICES FOR HOSTING THE GOLF TOURNAMENT IN LA QUINTA Marketing Manager Graham and Public Safety Deputy Director Mendez presented the staff report, which is on file in the Clerk's Office. Council discussed the changes made for parking flows worked well; improvements to traffic patterns in past years; numbering or lettering parking isles; and collaborating social media campaigns. MOTION — A motion was made and seconded by Councilmembers Pena/Fitzpatrick to approve Amendment No. 1 to Agreement for Contract Services with the American Express Golf Tournament for 2025 through 2027 for in-kind services for hosting the golf tournament in La Quinta; and authorize the City Manager to execute the amendment as presented. Motion passed unanimously. 2. APPROVE AMENDMENT NO. 1 TO AGREEMENT WITH COUNTY OF RIVERSIDE FOR ANIMAL SHELTER, FIELD, AND LICENSING SERVICES FOR FISCAL YEAR 2024/25 Public Safety Management Analyst Chastain presented the staff report, which is on file in the Clerk's Office. PUBLIC SPEAKER: Michael Phipps -Russell, Coachella — President and Executive Director of Loving All Animals, and ex -official member of the Coachella Valley Animal Campus Commission (CVACC); recommended policies be added to the contract to benefit La Quinta and the region including municipal code streamlining and consistency among participating cities, Riverside County, and the State. WRITTEN PUBLIC COMMENTS were received from Coachella resident Michael Phipps - Russell regarding the CVACC's purpose, intent, duties, powers, programs, practices, etc., which were distributed to Council, made public, published on the City's website, and included in the public record of this meeting. CITY COUNCIL MINUTES Page 6 of 8 OCTOBER 15, 2024 Council discussed the education committee created at the CVACC, and its purpose and plans; reengaging La Quinta's Animal Code subcommittee to review the relevant Code sections; uniform policies needed among cities and county; CVACC control over how policies are administered; CVACC lack of control and knowledge of contracts issued by the Animal Campus due to cancelled CVACC meetings; timing of future contract adjustments; goal of uniform policies and collaboration with the county and nine cities; desire for Mr. Phipps -Russell's assistance and expertise; including Animal Code Officers in subcommittee to review Code; and scheduling monthly versus quarterly spay/neutering services to residents. MOTION — A motion was made and seconded by Councilmembers Pena/Sanchez to approve Amendment No. 1 to agreement with the County of Riverside for animal shelter, field, and licensing services for fiscal year 2024/25; and authorize the City Manager to execute the amendment as presented. Motion passed unanimously. STUDY SESSION — None PUBLIC HEARINGS — None DEPARTMENTAL REPORTS — All reports are on file in the City Clerk's Office. MAYOR'S AND COUNCIL MEMBERS' ITEMS Councilmember Fitzpatrick reported on her, and other Councilmembers' attendance at the La Quinta Park ribbon cutting. Mayor Evans reported on her, and other Councilmembers' attendance at Allene Eubank's 105th birthday party; Sunline liquid hydrogen energy ribbon cutting; Mission Rocket Launch community event at SilverRock Park; Chamber of Commerce legislative breakfast; Rancho Mirage State -of -the -City; CV Behavioral Hospital open house; Saint Francis of Assisi Catholic Church 50th anniversary and new parish hall groundbreaking; and La Quinta High School California Interscholastic Federation Southern Section (CIF - SS) award championship ring ceremony recognizing Jack Lindsay and Charlie Graves win in a swim competition. Councilmember McGarrey reported on her attendance at Coffee -with -a -Cop, and Law Enforcement appreciation luncheon. REPORTS AND INFORMATIONAL ITEMS La Quinta's representative for 2024, Councilmember Fitzpatrick reported on her participation in the following organization's meeting: • RIVERSIDE COUNTY TRANSPORTATION COMMISSION (RCTC) CLOSED SESSION — Continued CITY COUNCIL MINUTES Page 7 of 8 OCTOBER 15, 2024 2. 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 6:08 P.M. MAYOR EVANS RECONVENED THE OPEN SESSION PORTION OF THE CITY COUNCIL MEETING AT 6:57 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. 2 — no new reportable action on this matter. Council's authorization remains in place for the City Attorney, in coordination with 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 responsive affiliates as reported out for Closed Session Item No. 2 from the August 6, 2024 Council meeting. ADJOURNMENT There being no further business, a motion was made and seconded by Councilmembers Fitzpatrick/Sanchez to adjourn at 6:57 p.m. Motion passed unanimously. Respectfully submitted, /,,1I�'���.�_ (J MONIKA RADEVA, City Clerk City of La Quinta, California CITY COUNCIL MINUTES Page 8 of 8 OCTOBER 15, 2024