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2025 02 18 CC MinutesCITY COUNCIL MINUTES TUESDAY, FEBRUARY 18, 2025 CALL TO ORDER A regular meeting of the La Quinta City Council was called to order at 3:30 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 Councilmember Pena said he will recuse himself from participating in the discussion and vote on Business Session Item No. 1 related to the adoption of La Quinta's Strategic Plan and in the discussion on Study Session Item No. 1 related to La Quinta's electric capacity and Imperial Irrigation District (IID) upgrades due to a conflict of interest stemming from a reasonable probability of future income and/or investment income from an electric power company (Secure Energy Source). Councilmember Fitzpatrick and Mayor Evans said they will comment on several of the Consent Calendar items. Council concurred. CLOSED SESSION 1. 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 FEBRUARY 18, 2025 2. CONFERENCE WITH 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 COMPANY, ET AL. (RIVERSIDE COUNTY SUP. CT. CASE NO. CVPS2404750) COUNCIL RECESSED THE OPEN SESSION PORTION OF THE MEETING AND MOVED INTO CLOSED SESSION AT 3:32 P.M. MAYOR EVANS RECONVENED THE OPEN SESSION PORTION OF THE CITY COUNCIL MEETING AT 4:11 P.M. WITH ALL MEMBERS PRESENT REPORT ON ACTION(S) TAKEN IN CLOSED SESSION: Mayor Evans said Council will recess back to Closed Session after the Open Session portion of tonight's agenda to continue consideration of the Closed Session Items. PLEDGE OF ALLEGIANCE Councilmember Sanchez led the audience in the Pledge of Allegiance. PUBLIC COMMENT ON MATTERS NOT ON THE AGENDA — None ANNOUNCEMENTS, PRESENTATIONS AND WRITTEN COMMUNICATIONS 1. SILVERROCK (FORMERLY TALUS) DEVELOPMENT PROJECT — STATUS UPDATE City Attorney Ihrke said on August 5, 2024, SilverRock Development Company LLC and its affiliates (debtors), 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. Prior Announcements regarding the bankruptcy case are available on the City's website at www.laquintaca.gov/taluslq . Mr. Ihrke noted there were no new updates to be reported tonight on the bankruptcy cases as there have been no hearings held in open court since the last update provided at the February 4, 2025, Council meeting. Mr. Ihrke reiterated prior announcements, including that the process for remediating and securing the project site has been well underway; and pursuant to prior authorization of the U.S. Bankruptcy Court, the Chief Restructuring Officer (CRO), an independent fiduciary for the administration of the debtors' estate, retained Jones, Land, LaSalle (JLL), which has commenced its research and professional services to eventually market the project to secure a future developer. JLL has met with the City Manager and toured the site, and is collecting information to move this process forward. CITY COUNCIL MINUTES Page 2 of 8 FEBRUARY 18, 2025 2. BURRTEC WASTE AND RECYCLING — 2024 YEAR-END UPDATE BY MUNICIPAL MARKETING MANAGER CLARA VERA Municipal Marketing Manager Vera with Burrtec Waste and Recycling provided a detailed overview of La Quinta's organic, recycling, bulk, and hazardous waste collection during the 2024 calendar year, in addition to outreach, education, events, and reporting; and noted that La Quinta is 100% compliant with Senate Bill 1383 (Stats. 2016, CH. 395, Lara) related to organics recycling. CONSENT CALENDAR 1. APPROVE COUNCIL MEETING MINUTES DATED FEBRUARY 4, 2025 2. APPROVE COUNCIL SPECIAL MEETING MINUTES DATED FEBRUARY 6, 2025 — COMMUNITY WORKSHOP 3. APPROVE AMENDMENT NO. 3 TO AGREEMENT FOR CONTRACT SERVICES WITH DESERT CONCEPTS CONSTRUCTION, INC. FOR ON -CALL PUBLIC WORKS MAINTENANCE SERVICES 4. APPROVE AMENDMENT NO. 1 TO AGREEMENT FOR CONTRACT SERVICES WITH PWLC II, INC. FOR ON -CALL PUBLIC WORKS MAINTENANCE SERVICES 5. APPROVE PLANS, SPECIFICATIONS, ENGINEER'S ESTIMATE, AND ADVERTISE FOR BID THE CITYWIDE MISCELLANEOUS AMERICANS WITH DISABILITIES ACT IMPROVEMENTS PROJECT NO. 2024-05 6. APPROVE DEMAND REGISTERS DATED JANUARY 31 AND FEBRUARY 7, 2025 7. RECEIVE AND FILE REVENUE AND EXPENDITURE REPORT DATED NOVEMBER 30, 2024 CONSENT CALENDAR — COMMENTS ITEM NO. 4 — Councilmember Fitzpatrick inquired about the reasons for the proposed palm trees removal. City Manager McMillen explained the palm trees proposed for removal, along Eisenhower Drive and Avenida Obregon, were planted about 70 years ago by Riverside County, prior to La Quinta's incorporation; the City commissioned an arborist report to evaluate the condition and integrity of the trees, and the findings resulted in a recommendation for removal due to a variety of reasons, such as weak trunk structures, rotted bases, etc.; the City is notifying residents in proximity of the trees prior to removal; and in the future a tree replanting program could be implemented for some of the affected areas. CITY COUNCIL MINUTES Page 3 of 8 FEBRUARY 18, 2025 ITEM NO. 6 — Councilmember Fitzpatrick asked for clarification on the SilverRock-related wire transfers listed on the demand register (page 170 of the agenda packet). City Manager McMillen explained one of the transfers, in the amount of $531,239 was pursuant to the $11 million Debtor In Possession Financing authorized by Council in relation to the SilverRock Development Company bankruptcy cases; and another, for $299,933 was to the City -contracted golf management and operations vendor, Landmark Golf Management, Inc. ITEM NO. 2 — Mayor Evans thanked the community for attending the annual Community Workshop held on February 6, 2025, and for their feedback and collaboration. WRITTEN PUBLIC COMMENTS for Consent Calendar Item No. 2 regarding IID and the proposed Coachella Valley Power Agency Joint Powers Agreement were received from resident Philip Bettencourt, 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 the Consent Calendar as presented. Motion passed unanimously. BUSINESS SESSION 1. ADOPT LA QUINTA STRATEGIC PLAN COUNCILMEMBER PENA RECUSED HIMSELF FROM PARTICIPATING IN THE DISCUSSION AND VOTE ON BUSINESS SESSION ITEM NO. 1 DUE TO A CONFLICT OF INTEREST STEMMING FROM A REASONABLE PROBABILITY OF FUTURE INCOME AND/OR INVESTMENT INCOME FROM AN ELECTRIC POWER COMPANY (SECURE ENERGY SOURCE), AS NOTED DURING CONFIRMATION OF AGENDA ABOVE, AND LEFT THE DAIS AT 4:39 P. M. Marketing and Communications Specialist Barkas presented the staff report, which is on file in the Clerk's Office. Council discussed the enormity of the 13 Focus Areas which will require much collaboration with other stakeholders; residents' focus areas prioritizations at the 2025 Community Workshop; importance of proper goal setting and progress tracking; and electrical power availability and energy infrastructure needs directly impact nearly all other focus areas, and in particular affordable housing, economic development and growth, expansion of the City's boundaries, and being a leader in sustainability. PUBLIC SPEAKER: Philip Bettencourt, La Quinta — commended staff for the difficult task of setting performance metrics to public policy goals; and regarding the IID text, recommended to (1) include the Local Agency Formation Commission as one of the stakeholders, and (2) acknowledge the work done by the Coachella Valley Association of Governments. CITY COUNCIL MINUTES Page 4 of 8 FEBRUARY 18, 2025 MOTION — A motion was made and seconded by Councilmembers McGarrey/Sanchez to adopt La Quinta Strategic Plan as presented. Motion passed: ayes — 4, noes — 0, abstain — 0, absent — 1 (Pena). COUNCILMEMBER PENA RETURNED TO THE DAIS AT 4:52 P.M. 2. RECEIVE AND FILE FISCAL YEAR 2023/24 GENERAL FUND YEAR-END BUDGET REPORT AND APPROVE THE AMENDED BUDGET CARRYOVERS Finance Director Martinez presented the staff report, which is on file in the Clerk's Office. Council discussed the flexibility of committed reserves; the transparency of the City's budget reports; the budget transparency website currently underway; and noted that La Quinta ranked No. 7 in fiscal strength out of 419 cities in California with reported data. MOTION — A motion was made and seconded by Councilmembers Sanchez/Fitzpatrick to receive and file fiscal year 2023/24 General Fund Year -End Budget Report and approve the amended budget carryovers from 2023/24 to 2024/25 as presented. Motion passed unanimously. STUDY SESSION 1. DISCUSS LA QUINTA'S ELECTRICAL CAPACITY AND IMPERIAL IRRIGATION DISTRICT (IID) ENERGY UPGRADES COUNCILMEMBER PENA RECUSED HIMSELF FROM PARTICIPATING IN THE DISCUSSION ON STUDY SESSION ITEM NO. 1 DUE TO A CONFLICT OF INTEREST STEMMING FROM A REASONABLE PROBABILITY OF FUTURE INCOME AND/OR INVESTMENT INCOME FROM AN ELECTRIC POWER COMPANY (SECURE ENERGY SOURCE), AS NOTED DURING CONFIRMATION OF AGENDA ABOVE, AND LEFT THE DAIS AT 5:11 P.M. City Manager McMillen presented the staff report, which is on file in the Clerk's Office. Council discussed its willingness to front funds for substations with repayment by developers later, over a year ago when the cost and lead time for substations was far less; timeline and initial tasks of the proposed Coachella Valley Power Agency Joint Powers Agreement (CVPA JPA); the extent to which IID's scheduled increase of power cost over the next three years will be applied to deferred maintenance; explaining to residents what they get in exchange for increased rates; micro -grids; other sources of energy; locations of additional substations; electric capacity analysis of current substations; and developers' "will -serve" letters reserve power for their future project or loose it if developers do not proceed timely. CITY COUNCIL MINUTES Page 5 of 8 FEBRUARY 18, 2025 PRESENTERS: IID Government and Communications Officer Antonio Ortega and Superintendent of Customer Operations and Planning Guillermo Barraza provided additional information on current IID electricity rates and the scheduled rate increases; the proposed use of the proceeds from the increased rates; planned upgrades to substations servicing La Quinta; approximately three -to -four-year timing for delivery and installation of new transformers; use of recent transformers received; solutions will be valley -wide and must be fair; generation of power is not the issue, it's the distribution of power; pilot program underway for power feeders; and information is available at www.IID.cori . Council discussed getting more information on micro -grids; getting information to customers who may not be able to afford IID's rate increases coming; periodic reports on IID maintenance programs; preference for consistent low rate increases versus larger jumps in rates every 10 years; long-term goals and long-term power provision by IID; immediate steps to begin long-term solutions; power issues are stalling growth; staff's continued work with consultant NBS Governmental Finance Group dba NBS related to utility infrastructure impact fee study; allowance of micro -grids in City's Code; funding options for electric infrastructure improvements and cost share agreements; and the formation of CVPA and the execution of a JPA soon to be under discussion. COUNCILMEMBER PENA RETURNED TO THE DAIS AT 6:24 P.M. FOR THE REMAINDER OF THE CITY COUNCIL MEETING PUBLIC COMMENT ON MATTERS NOT ON THE AGENDA — Continued PUBLIC SPEAKER: Christopher Morgan, La Quinta — resides at the Watercolors residential development; expressed concerns regarding the upcoming mandatory bulk cable services being implemented by the homeowners' association (HOA), which are unaffordable for some residents; and the HOA legal council is not helpful — just wearing down residents who object. Council and staff provided information on some resources available to Mr. Morgan. PUBLIC HEARINGS — None DEPARTMENTAL REPORTS — All reports are on file in the City Clerk's Office. 5. DESIGN AND DEVELOPMENT DEPARTMENT — PROPOSED KENNEDY STORE AT VISTA SANTA ROSA Mayor Evans said WRITTEN PUBLIC COMMENTS for Departmental Report Item No. 5 providing parking recommendations for the proposed Kennedy store in the Vista Santa Rosa area were received from resident Alena Callimanis, 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 FEBRUARY 18, 2025 Council discussed the possible impacts of the proposed project on nearby La Quinta residents; and Senior Planner Nespor provided information on parking and access. MAYOR'S AND COUNCIL MEMBERS' ITEMS Councilmember Fitzpatrick reported on her attendance at the Arts Celebration Volunteer Training. Mayor Evans reported on her and other Councilmembers' attendance at the annual 2025 Community Workshop; the CV Giving Day; Palm Springs Air Museum Gala; Riverside County Date Festival Parade; and listed upcoming events. REPORTS AND INFORMATIONAL ITEMS La Quinta's representative for 2025, Mayor Evans reported on her participation in the following organizations' meetings: • CVAG COACHELLA VALLEY CONSERVATION COMMISSION • CVAG ENERGY AND SUSTAINABILITY COMMITTEE La Quinta's representative for 2025, Mayor Pro Tem McGarrey reported on her participation in the following organizations' meetings: • COACHELLA VALLEY MOUNTAINS CONSERVANCY • LEAGUE OF CALIFORNIA CITIES — EXEC COMMITTEE, COUNTY DIVISION La Quinta's representative for 2025, Councilmember Pena reported on his participation in the following organizations' meetings: • CV VALLEY MOSQUITO AND VECTOR CONTROL DISTRICT BOARD • CVAG PUBLIC SAFETY COMMITTEE La Quinta's representative for 2025, Councilmember Sanchez reported on his participation in the following organization's meetings: • ANIMAL CAMPUS COMMISSION Council reported consistently observing many dogs at SilverRock Park and around the La Quinta Cove being walked without a leash as of late; and noted the importance for pet owners to comply with the City's requirements and walk their pets on a leash, and for the City to issue citations, without courtesy warnings, in order to ensure compliance and safety. CLOSED SESSION — Continued 1. 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) CITY COUNCIL MINUTES Page 7 of 8 FEBRUARY 18, 2025 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 2. CONFERENCE WITH 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 COMPANY, ET AL. (RIVERSIDE COUNTY SUP. CT. CASE NO. CVPS2404750) COUNCIL RECESSED THE OPEN SESSION PORTION OF THE MEETING AND MOVED INTO CLOSED SESSION AT 6:53 P.M. MAYOR EVANS RECONVENED THE OPEN SESSION PORTION OF THE CITY COUNCIL MEETING AT 7:41 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 reportable action: Council's authorization remains in place for the City Attorney, in coordination with the City Attorney's Office and Special Counsel, 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. • CLOSED SESSION ITEM NO. 2 — no reportable action. ADJOURNMENT There being no further business, a motion was made and seconded by Councilmembers McGarrey/Pena to adjourn at 7:41 p.m. Motion passed unanimously. Respectfully submitted, MONIKA RADEVA, City Clerk City of La Quinta, California CITY COUNCIL MINUTES Page 8 of 8 FEBRUARY 18, 2025