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1996 06 20 CC Minutes+ LA QUINTA CITY COUNCIL MINUTES SPECIAL MEETING JUNE20, 1996 Special meeting of the La Quinta City Council was called to order at the hour of 3:00 pm by Mayor Holt, followed by the Pledge of Allegiance. PRESENT: Council Members Adolph, Henderson, Perkins, Sniff, Mayor Holt ABSENT: None PUBLIC COMMENT None CONFIRMATION OF AGENDA None ANNOUNCEMENTS None PRESENTATIONS None BUSINESS SESSION 1. CONSIDERATION OF AWARD OF CONTRACT HIGHWAY 111/WASHINGTON STREET WIDENING PROJECT NO.96-07. Mr. Cosper, Public Works Director, advised that the City has received bids for the Highway 111/Washington Street Widening Project No.96-07. The following three bids were received: BIDDER ADD ALTERNATE BASE BID TOTAL Engineer's Estimate $15,000 $2,757,167 $2,772,187 Riverside Construction $27,000 $2,551,000 $2,578,000 Granite Construction $45,000 $2,727,272 $2,772,272 Matich Corporation $58,715 $2,716,541 $2,775,256 BIB] 07-12-1996-U01 10:01:03AM-U01 CCMIN-U02 06-U02 20-U02 1996-U02 +City Council Minutes Page 2 June 20,1996 Mr. Cosper then reviewed the reasons tor the Engineer's Estimate being somewhat higher than originally reported. The original estimate was $2,368,500 which was a preliminary estimate. The final estimate of $2,772,167 is inclusive of changes required by Caltrans and CVWD. The City will be entering into a contract with CVWD for reimbursement for the additions they requested to the contract. He then advised that the add alternate for the winter delay" represents the contractor's costs to delay start of construction until April 1997, thus avoiding the peak season traffic. He then reviewed the approved funding for this project in which there is $?,?69,926 in available funds. Mr. Cosper advised that the low bid of Riverside Construction has been declared non-responsive due to the percentages of subcontract work not being completed in the bid documents as required by California Public Contract Code. He advised that it's staff's recommendation that the bid of Riverside Construction be declared non-responsive and that the bid be awarded to Granite Construction, the second lowest bidder. Mr. Cosper then reviewed the decisions before the Council at this time, and the funding sources as outlined in the staff report on file in the City Clerk's Office. In response to Council Member Perkins, Mr. Cosper advised that this is a six- month project. Mr. Cosper then responded to questions by Council Member Adolph regarding the process utilized in opening and reading bids. Mr. Genovese advised that a number of letters have been received and asked the City Attorney for a report. Ms. Honeywell, City Attorney, advised that letters have been received from both the low bidder and the second lowest bidder, both threatening litigation. Therefore, she recommended that the Council go into Closed Session pursuant to Government Code Section 4956.9(b) under potential threats of litigation. Council adjourned to Closed Session. BIB] 07-12-1996-U01 10:01:03AM-U01 CCMIN-U02 06-U02 20-U02 1996-U02 +City Council Minutes Page 3 June 20, 1996 Council reconvened with no decision being made in Closed Session which requires reporting pursuant to Section 54957.1 of the Government Code Brown Act). C. T. Harmon. with Riverside Construction Co., 111 No. Main Street, Rivers?de, commented on their qualifications advising that they've been in business for 30 years. They are going to be doing a $6 million dollar job for the County of Riverside at Washington/I-b and it is because of that project that they were able to bid this one at the price they did, because they can basically combined them. He did not believe that their bid was non-responsive. The State Code has certain requirements, but all of the cities utilize different forms and different requirements. They feel that they have complied because they did list all of the sub-contractors and did submit the information on a different form. Gene Boisuert, with Riverside Construction Co., 111 No. Main Street, Riverside, advised that he is the estimator who prepared the bid documents and he disagreed with the determination that their bid is a non-responsive bid as there is no requirement for listing percentages either in California Code or in the City's bid documents. They believe that they are the lowest and most responsible bidder. John Pefla, advised that these improvements have been discussed for years and wished to see the work proceed now instead of a year from now to help jump-start the economy. He urged the Council to delete the add alternate and award the bid to the lowest bidder who was Matich Corporation and to include an incentive in the contract to award a bonus for early completion. Karim Massoud, with Granite Construction, 38-000 Monroe Street, lndio, commented on the complexities of this job with keeping two lanes of traffic open at all times and the night work involved. He didn't feel that it would be fair to allow someone to fail to meet all the requirements when they're all busy and are having to equally follow the rules. He said that he has the same sub contractors listed as Riverside Construction except for Yeager). He noted his time schedule and the fact that there was plenty of time to complete the documents without overlooking requirements. In response to Council Member Adolph, Mr. Cosper advised that it is staff's opinion that the bid submitted by Riverside Construction is not responsive. BIB] 07-12-1996-U01 10:01:03AM-U01 CCMIN-U02 06-U02 20-U02 1996-U02 +City Council Minutes Page 4 June 20, 1996 In further response to Council Member Adolph, Mr. Cosper advised that we normally get a red-line drawing and what we are asking for is a final as-built" drawing. MOTION- It was moved by Council Members Sniff/Perkins to declare Riverside Construction bid as non-responsive. Motion carried unanimously. MINUTE ORDER NO. 96-93. MOTION It was moved by Council Member Sniff/Mayor Holt to award a contract in the amount of $2,772,272 base bid plus additive alternate for the Highway 111/Washington Widening Project No.96-07 to Granite Construction. Motion carried unanimously. MINUTE ORDER NO.96-94. MOTION- It was moved by Council Members Sniff/Perkins to approve the execution of a Change Order for construction management and field engineering services for construction support in an amount which shall not exceed $182,900. Motion carried unanimously. MINUTE ORDER NO.96-95. MOTION It was moved by Council Members Sniff/Adolph to approve execution of an agreement with the Coachella Valley Water District to reimburse the City for the costs of certain improvements. Motion carried unanimously. MINUTE ORDER NO.96-96. 2. CONSIDERATION OF FISCAL YEAR 1996/97 PRELIMINARY BUDGET. Mr. Genovese, City Manager, presented the Council with the proposed budget for Fiscal Year 1996/97 which is a balanced budget." The budget includes an increase in Police Services one additional officer shift and an additional $100,000 for special police enforcement services; addition of one Code Compliance Officer; an upgrade of an Account Technician position in the Finance Department to Financial Services Assistant to assist in portfolio diversification to concentrate on investment related duties; and additional supplies and equipment to enhance the City's preparedness in the event of a disaster. He added that the reason we're able to increase some of our services is because we've seen an increase in General Fund Revenues primarily attributed to Transient Occupancy Tax and Motor Vehicle In Lieu Tax as well as General Fund interest projections. BIB] 07-12-1996-U01 10:01:03AM-U01 CCMIN-U02 06-U02 20-U02 1996-U02 +City Council Minutes Page 5 June 20, 1996 Mr. Genovese then noted the issues which need to be resolved are. as follows: Request of Coachella Valley Concert Assoc. for $5,000 no amount is included in the budget) * Request of Chamber of Commerce Council's prior decision will have a $9,000 impact on the General Fund) * La Quinta Arts Foundation request for $75,000 the budget contains the figure of $50,000 * La Quinta Historical Society request for $10,000 no amount has been included in the budget * La Quinta Pageant no amount has been included in the budget * MOU with the Employees Association has been resolved and is on this agenda for approval. It includes a 2% cost-of-living increase. * Coachella Valley Economic Partnership request for $5,000 The City's total revenue will exceed the expenditures by $70,000 in 1996/97 including the cost-of-living increase. Mr. Genovese concluded that staff is looking for adoption of a preliminary budget at this time. He also noted that staff will be presenting a Five-Year Resource Allocation Plan following discussion of the budget. Mr. Falconer, Finance Director, proceeded to review the budget process; the budget format which includes an introduction; tables & graphs; financial summary schedules and revenue trends and projected detail; community profile; and the city's organizational chart along with goals & objectives of each department. The budget also includes the Redevelopment Agency and the Financing Authority which is for the City Hall lease). Mr. Genovese added that staff is anticipating being able to increase the General Fund emergency reserves from $2.3 million to $3.4 million. Donna Martin, representing the Coachella Valley Community Concerts Association, advised that they are hoping for a service contract again this year and noted that they have reduced the amount they are asking for from last year by almost half. She added that this year they will be at the La Quinta Resort and Club. Council Member Adolph felt that one of the goals in every department should be to find ways to lower the cost of operation and increase efficiency. BIB] 07-12-1996-U01 10:01:03AM-U01 CCMIN-U02 06-U02 20-U02 1996-U02 +City Council Minutes Page 6 June 20,1996 Mr. Genovese advised that all staff has a conservative approach to operations, but that can be added to all of the goals and objectives. Council Member Henderson agreed that the budget is an excellent document but commented that It is difficult to cross-reference between the two documents. She wished to see the budget have a better breakdown of legal fees and consultants, i.e. RSG. Mr. Genovese advised that staff will submit a spread sheet on legal services and consultant services and will be included in the supporting document. Council Member Sniff agreed and wished to see the information for legal services and RSG included in the budget document. Council Member Henderson then referred to the position being upgraded in the Finance Department asking several questions to which Mr. Falconer responded that it will be elevated from Range 46 to Range 52. The job description will be prepared by the Personnel Office and reviewed by the City Manager. Regarding the educational requirements, Mr. Genovese advised that there will be additional training, but the educational requirements have not yet been determined. He added that there will be internal recruitment. Mayor Holt referred to VIPS and asked if there are any funds in the Police budget for this program and Captain Dye advised that there are no funds specifically designated for that program, but there is a contingency fund which was used last year for some equipment for this program. Mayor Holt wished to see the Police Department have some funding to help support this program. Mr. Genovese advised that a portion of the $100,000 could be shifted over to VIPS and he would with Captain Dye on that. Council Member Sniff felt that some of the contract service requests should be addressed. He stated that he supported the request of Community Concerts, La Quinta Arts Foundation in the amount of $75,000; La Quinta Historical Society in the amount of $10,000; the request of the Pageant Committee in the amount of $15,000; and the Coachella Valley Economic Partnership in the amount of $1,000. Mayor Holt agreed with Council Member Sniff's recommendations. BIB] 07-12-1996-U01 10:01:03AM-U01 CCMIN-U02 06-U02 20-U02 1996-U02 +City Council Minutes Page?7 June 20, 1996 Tom Freeman, representing Coachella Valley Economic Partnership, advised that this is their second year of existence and the first year they are approaching cities for funding. The County has donated $30,000 and several businesses have donated like amounts $5,000). Council Member Perkins advised that last year he asked the various organizations to reduce their requests by 10% and the Chamber went up 1 2% this year. He felt that the Arts Foundation report was excellent, but they're asking for a 50% increase over last year. He stated that he would support the organizations that are requesting the same or less than last year. He was very supportive of the Arts Foundation and felt that they do a wonderful job for the City, but felt that at some point in time they need to become more self- supporting. He commented on the short-fall of the governmental agencies around us and warned this Council that we cannot continue to give money freely to all organizations that ask for it. When the time comes to have to cut it will probably have to be in personnel. This City has been extremely generous to the various organizations within the community. Council Member Henderson believed that the fiscal responsibility and fiscal concerns of all the valley and the USA and the constraints and struggles over the last five years is proof that we need to have all of our apples in the same basket and going in the same direction. She felt that funding of these organizations seem to be increasing instead of decreasing. She supported seed money to assist to get organizations started to begin providing services. The Arts Foundation does provide two events that are nationally recognized and according to their report, they have made a substantial amount of money and the events are successful. Therefore, with their success in mind, they should be requesting a reduction in City assistance. She, too, supported maintaining their level of funding to last year's. These organizations should include in their mission statement that they are striving to be self-sufficient. Regarding the pageant, there should be seed money and she would support half of what they're asking for with a one-year review period the same as all others are handled. She supported the request of the Community Concerts and supported the level of funding the Historical Society received last year. She felt that the Coachella Valley Economic Partnership should receive at least $2,000, as they are trying to market the entire valley, which is what this should all be about. Council Member Sniff agreed to fund the Coachella Valley Economic Partnership in the amount of $2,000. BIB] 07-12-1996-U01 10:01:03AM-U01 CCMIN-U02 06-U02 20-U02 1996-U02 +City Council Minutes Page 8 June 20, 1 996 Council Member Perkins advised that this isn't a matter of support he supports all of the organizations represented here, but pointed Out that this is public funding we're talking about tax-payer's money. Mayor Holt left the meeting at this time. Mr. Genovese advised that the Council's review of these matters will allow staff to incorporate the dollar amounts into the budget, but pointed out that many of them would be coming back to the Council in the form of a contract. At a time in the future the Council can determine the exact amount of contribution and approval of a contract. MOTION It was moved by Council Members Sniff/Henderson to include in the 1996/97 preliminary budget, the following allocations: $ 5,000 Coachella Valley Community Concerts $75,000 La Quinta Arts Foundation * $10,000 La Quinta Historical Society * $15,000 La Quinta Pageant * $ 2,000 Coachella Valley Economic Partnership Council Member Henderson felt that by placing these amounts of money in the budget, gives these organizations a sense of false hope if the Council doesn't believe that they are firm figures. Council Member Sniff disagreed everyone understands that this is just a budget and not an expenditure of funds. MOTION CARRIED WITH COUNCIL MEMBER ADOLPH ABSTAINING AND MAYOR HOLT ABSENT. MINUTE ORDER NO.96-97. Dan Miller, consultant with Rosenow, Spevacek Group, presented the City's Five-Year Resource Allocation Plan which gives a five-year forecast to identify whether the City's General Fund can meet the needs of its operations and programs in the future. It allows the City to determine the need for additional revenues and need to control and monitor increases in operational expense requirements. He pointed out that it is preliminary in nature and will include changes made to the budget. The assumptions used in putting the document together are consistent with prior City Council directives in that a very conservative approach was taken in projecting future revenues minimal increases were assigned to each of the re-occurring revenues and in some cases, no increases in new development-related revenues were included in BIB] 07-12-1996-U01 10:01:03AM-U01 CCMIN-U02 06-U02 20-U02 1996-U02 +City Council Minutes Page 9 June 20, 1996 later fiscal years. The Council wished to safeguard against future down-turns in the economy On the expenditure side, a reasonable approach was taken to reflect actual projected cost increases. He concluded that this document will be presented to the Council on July 16th for final adoption. MOTION It was moved by Council Members Sniff/Adolph to adopt the preliminary Fiscal Year 1998/97 Budget as modified and direct staff to prep?re a Fiscal Year 1996/97 Final Budget for the July 16, 1996 City Council Meeting. Motion carried with Mayor Holt ABSENT. MINUTE ORDER NO.96-98. CONSENT CALENDAR 1. ADOPTION OF RESOLUTION APPROVING A MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF LA QUINTA AND THE LA QUINTA CITY EMPLOYEES' ASSOCIATION. MOTION It was moved by Council Members Sniff/Henderson to approve the Consent Calendar as recommended by RESOLUTION NO. 96-48. Motion carried unanimously. There being no further business, the meeting was adjourned upon motion by Council Members Sniff/Henderson. Motion carried unanimously. AUNDRA L. JUHOLA, City Clerk City of La Quinta, California BIB] 07-12-1996-U01 10:01:03AM-U01 CCMIN-U02 06-U02 20-U02 1996-U02