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1996 11 05 CC Minutes, LA QUINTA CITY COUNCIL MINUTES November 5, 1996 Regular meeting of the La Quinta City Council of November 5, 1 996 was called to order at the hour of 3:00 p.m. by Mayor Holt, followed by the Pledge of Allegiance. PRESENT: Council Members Adolph, Henderson, Perkins, Sniff, Mayor Holt ABSENT: None PUBLIC COMMEN I Rosemary Gonzales, 52-170 Avenida Cortez, representing Imperial Irrigation District, thanked the Council for the position they've taken on SunLine Services Group's SSG) attempt to take over lID and advised that lID is not for sale. They desire to work with the City and invite them to share their ideas and concerns regarding the new legislation on deregulation. They're looking for the City to submit nominations for their Power Consumer Advisory Committee which was recently expanded to 20 members. Mary Drury, 38100 Cathedral Canyon Drive, Cathedral City, Region Manager of Southern California Edison, stated that SSG does not have eminent domain power over lID or Edison. In addition, they are not authorized to distribute electrical power under the JPA. To amend the JPA through an implementation agreement there would have to be a vote of seven out of ten members of the Board. The MOU recently adopted by SunLine on a 4-2-1 vote is not valid according to their Edison's) legal counsel. She commented on the effects of the new deregulation legislation and encouraged the City to vote against the MOU at the SSG meeting on December 4th. Alibaba Farzaneh, 39902 Newcastle Drive, Palm Desert, owner of Sesame Restaurant, advised that he's been unable to obtain approval from the Building & Safety Department for an eight-foot-high gas torch proposed at his restaurant. Other cities have allowed torches at even lower levels and Breeze Air Conditioning has stated in writing that the torch is 100% safe. He's not able to provide any additional information to prove that the torch is safe and asked the Council for assistance in gaining approval. Council directed staff to report back at the next meeting with a complete report for discussion. BIB] 12-17-1996-U01 10:44:13AM-U01 CCMIN-U02 11-U02 05-U02 1996-U02 ,City Council Minutes 2 November 5,1996 CONFIRMATION OF AGENDA Council Member Henderson asked that Consent Calendar Item No.2 be moved to Business Session Item No.7. APPROVAL OF MINUTES MOTION It was moved by Council Members Henderson/Sniff to approve the City Council Minutes of October 3, 1996 as submitted. Motion carried unanimously. MOTION It was moved by Council Members Sniff/Adolph to approve the City Council Minutes of October 1 5, 1 996 as submitted. Motion carried unanimously. ANNOUNCEMENTS Mayor Holt announced that the Mayor's Luncheon for November 7th has been cancelled due to the death of Bernice Newkirk, wife of Planning Commissioner Newkirk. PRESENTATIONS None WRITTEN CORRESPONDENCE 1. LETTER FROM LA QUINTA OPEN-AIR MUSEUM REQUESTING FINANCIAL ASSISTANCE. Council concurred on referring this matter to staff for analysis and report back. 2. LETTER FROM CITY OF PALM DESERT REGARDING PARTICIPATION IN A STUDY RELATIVE TO PROVISION OF ELECTRICAL POWER. Council concurred on discussing this item under Mayor and Council Members' Item No.1. BIB] 12-17-1996-U01 10:44:13AM-U01 CCMIN-U02 11-U02 05-U02 1996-U02 ,City Council Minutes 3 November 5,1996 BUSINESS SESSION CONSIDERATION OF A PROPOSAL FROM RANCHO LA QUINTA REGARDING MARKETING OF THE 1996 SKINS GAME. Mr. Weiss, Assistant City Manager, advised that two options have been submitted by Rancho La Quinta for Council's consideration in regards to public service air time during the upcoming 1 996 Skins Game at Rancho La Quinta; 90 seconds of air time 45 seconds each day) for $50,000or four minutes for $75,000. Rancho La Quinta will provide $2,500 to $5,000 toward the production cost of the video, depending on the air time option selected by Council. Gene McCauliff, 43-761 Port Maria, Bermuda Dunes, Event Manager for the 1996 Skins Game, advised that 5 to 6 million people are expected to watch the two-day telecast and they anticipate a fiscal impact to the City of $500,000, based on room tax, sales at Rancho La Quinta, and restaurant business. The four minutes will include 30 seconds of air time directed toward charity each day, 30 seconds toward environment, and 30 seconds toward the Rancho La Quinta development, leaving 30-45 seconds each day specifically for the City's special features such as the Arts Festival, Street Fairs, Boys & Girls Club, historical facts surrounding the La Quinta Hotel, etc. Vince Scully, the announcer for the game, has agreed to be part of the commentary for the video and Rancho La Quinta will provide $2,500 toward the production costs of $7,500 to $10,000 for a 30-45 second video. Council Member Henderson believed that the air time cost of $50,000 could be funded by accumulating monies from various areas such as the $5,000 under economic development set aside for miscellaneous photography, CVB funds, and perhaps funds allocated to the Arts Foundation and Chamber of Commerce as some of the funds have been earmarked for marketing and they would benefit from the video. She also referred to a proposal on the agenda by the APP to expend $16,000 for an art brochure that she felt would quickly become obsolete and suggested that if such a use is a legitimate use of APP funds, that it be directed toward producing this video which could include the City's artwork and be updated as new artwork is purchased. It could also be edited at a later date to include some commercial aspects. In response to Mayor Holt, Mr. Weiss advised that the production and air time costs could be taken from the Special Projects Contingency Fund Account of which $31,230 is available, the Emergency Reserve Fund, or transferred from other accounts as suggested by Council Member Henderson. BIB] 12-17-1996-U01 10:44:13AM-U01 CCMIN-U02 11-U02 05-U02 1996-U02 ,City Council Minutes 4 November 5, 1996 In response to Mayor Holt, Mr. Genovese, City Manager, advised that the use of APP funds for the video would have to be examined and that no CVB funds are available. Council Member Sniff supported the video, but was opposed to funding it by taking funds from other areas as suggested and would not support using the Special Projects Contingency Fund Account. If the Council feels that the video is a good idea then he felt that it should be funded from the reserves. He supported either of the options, but felt that the 4-minute option was a good deal. In response to Council Member Henderson, Mr. McCauliff advised that the 4- minute segment is no longer an option, but pointed out that La Quinta" would be mentioned throughout the video. Council Member Henderson advised that the intent of her funding suggestions was to make the project more palatable, not to fragment it and she was opposed to using too much of the City's reserves. In response to Council Member Perkins, Mr. McCauliff advised that the video could be copied and used by the City. The maximum cost for the City to participate would be $57,500 with $50,000 being for air time and 7,00 for video production costs. Council Member Perkins believed that the City's reserves are lower than they should be even though they've increased over the last few years. He didn't support the project in the beginning, but now feels that it will benefit the City through national and world-wide exposure. Mr. McCauliff advised that the game would be broadcast to 27 nations. In response to Council Member Adolph, Mr. McCauliff advised that there would be City input on the content to a certain degree, but the video must meet the standards and practices of the network which does not allow the showing of such things as names of businesses. Council Member Adolph's concern was that the video might not be what the City wants if produced by someone outside of the community and he asked if portions of the Historical Society's video could be used to which Mr. McCauliff responded yes. Council Member Adolph advised that he's concerned about marketing the City, but is even more concerned about being fiscally responsible to the Council's BIB] 12-17-1996-U01 10:44:13AM-U01 CCMIN-U02 11-U02 05-U02 1996-U02 ,City Council Minutes 5 November 5' 1996 constituents. He didn't wish to deprive another project that the constituents might feel is more important than a video segment during a golf game and felt that Council would be responsible for informing the community about the benefits of the video to the City. Mayor Hot was in favor of the video, but would support using only $7,500 for production costs from the Special Projects Contingency Fund and suggested that the remaining $50,000 be taken from the reserves. She shared Council Member Adolph's concerns, but felt that the video would be marketing La Quinta as well as golf. Council Member Henderson pointed out that the Special Projects Contingency Fund is for unanticipated expenses such as this video. Council Member Sniff supported taking $50,000 from the reserves and $7,500 from the Special Projects Contingency Fund, noting that La Quinta" would be mentioned many times during the event and he felt that it's worth trying for one year. In response to Mayor Holt, Mr. Genovese advised that upon Council's direction, $50,000 would be allocated from the reserves and $7,500 from the Special Projects Contingency Fund Account. He added that staff always tries to use funds already budgeted prior to using the reserves. MOTION It was moved by Council Members SniffHenderson to direct staff to allocate $50,000 from the Emergency Reserve Fund Account and $7,500 from the Special Projects Contingency Fund Account for air time and production of a video to be broadcast during the 1998 Skins Game at Rancho La Quinta. In response to Council Member Adolph, Mr. Genovese advised that approximately $3.2 million currently exists in the reserve account. in response to Council Member Henderson, Mr. Genovese advised that staff could look at other funding sources within the budget for this project and replace funds taken from the reserve account if so directed by Council. Motion carried unanimously. MINUTE ORDER NO.96-163. BIB] 12-17-1996-U01 10:44:13AM-U01 CCMIN-U02 11-U02 05-U02 1996-U02 ,City Council Minutes 6 November 5, 1996 2. CONSIDERATION OF ADOPTION OF A RESOLUTION APPROVING THE APPLICATION FOR GRANT FUNDS FOR THE ENVIRONMENTAL ENHANCEMENT AND MITIGATION PROGRAM TO PLANT TREES IN EXISTING MEDIANS ON AVENUE 50 AND WASHINGTON STREET. Mr. Weiss, Assistant City Manager, advised that the medians on Avenue 50 and Washington Street have been identified as eligible treepIanting projects for the Environmental Enhancement and Mitigation Program. The grant application for $42,750 will cover the cost of tree planting and a proportionate share of irrigation costs for a larger project coming up for approval later this year. In response to Mayor Holt, Mr. Weiss advised that the grants are not scheduled to be awarded until July 1997 and at the present time it's anticipated that there will be insufficient funds to complete the entire scope of the upcoming larger project. However, the add-alternates in the bid package will allow some flexibility in determining what portions of the project to complete and if the grant is approved it will supplement the funding for the larger project and allow its expansion. It may be necessary to rebid the project after the grant is awarded if the City is unable to get a commitment from the low-bidder to complete the project during that timeframe. Mayor Holt wished to see the medians completed as soon as possible, noting that many residents have inquired as to when the projects would get underway. RESOLUTION NO.96-84 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA QUINTA. CALIFORNIA, APPROVING THE APPLICATION FOR GRANT FUNDS FOR THE ENVIRONMENTAL ENHANCEMENT AND MITIGATION PROGRAM UNDER THE SECTION 164.56 OF THE STREETS AND HIGHWAYS CODE FOR THE WASHINGTON STREET AND AVENUE 50 TREE PLANTING FOR IMPROVED AIR QUALITY. It was moved by Council Members Henderson/Sniff to adopt Resolution No. 96-84 as submitted. Motion carried unanimously. BIB] 12-17-1996-U01 10:44:13AM-U01 CCMIN-U02 11-U02 05-U02 1996-U02 ,City Council Minutes 7 November 5,1996 3. CONSIDERATION OF RECOMMENDATION OF THE ART IN PUBLIC PLACES COMMISSION TO APPROPRIATE FUNDS IN AN AMOUNT NOT TO EXCEED $8,000 TO BE USED IN CONJUNCTION WITH BUDGETED FUNDS TO PRODUCE A BROCHURE FOR THE CIVIC CENTER ARTWORK AND PUBLIC ART PROGRAM. Mr. Herman, Community Development Director, advised that the Arts in Public Places APP) Commission has recommended the appropriation of $8,000 from the APP Fund to be used in conjunction with $8,000 that is currently allocated in the budget for the production of a Civic Center Artwork Brochure. The additional funds will be used to photograph approved and/or proposed art sculptures throughout the City. The brochure will be produced after new art is purchased in March 1997 and further art purchases will be depicted on inserts within the brochure during the next five years at which time it will be reprinted. In response to Council Member Sniff, Mr. Herman advised that there are less than 45 art pieces/public art. All of the art pieces in the Civic Center are accessible to the public except those located in the Administration Offices. Council Member Sniff felt that $16,000 was a significant amount of money to produce a brochure. Mr. Herman advised that the average cost estimate for printing 5,000 brochures of the Civic Center art only is $10,000 and they hope to include all of the City's artwork for $16,000. Council Member Sniff felt that it's a nice idea, but was concerned about spending so much money on it and asked how they would be distributed. Mr. Herman advised that they would be placed in the Chamber of Commerce, museum, library, and City Hall for distribution. Council Member Henderson felt that a video would be better since it could be edited as new art is purchased each year and she felt that the funds could be used to produce the Skins Game marketing video. She wished to see the artwork cataloged and videotaped. Ed Kibbev, 78-620 Sanita Drive, representing the Desert Chapter of the Building Industry Association, read a portion of the APP enacting ordinance and pointed out that APP funds must be spent for art pieces and related installation costs, not brochures or videos of artwork. BIB] 12-17-1996-U01 10:44:13AM-U01 CCMIN-U02 11-U02 05-U02 1996-U02 ,City Council Minutes 8 November 5 1996 Council Member Sniff agreed that use of APP funds for a brochure Is beyond the bounds of the ordinance. Council Member Henderson agreed also and suggested using the $B,O00 allocated for a brochure to produce a video instead Council concurred on taking no action on this matter. 4. CONSIDERATION OF RECOMMENDATION OF THE ART IN PUBLIC PLACES COMMISSION TO ENTER INTO A CONTRACT WITH ART FERNANDEZ TO CONSTRUCT AND INSTALL TWO ART PIECES FOR THE FRITZ BURNS PARK AND THE ADAMS PARK AND AUTHORIZE STAFF TO APPROPRIATE THE FUNDS FROM THE APP ACCOUNT IN AN AMOUNT NOT TO EXCEED $24,000 AND AUTHORIZATION FOR THE CITY MANAGER TO SIGN THE CONTRACT. Mr. Herman, Community Development Director, advised that the Arts in Public Places APP) Commission has recommended that a contract be signed with Art Fernandez to construct and install two art pieces to be located at the Fritz Burns Park and Adams Park. The design has been reviewed and supported by the Parks & Recreation Commission, but was referred back to the APP due to a lack of funding The proposed art designs consists of either two giraffes or two snakes, arched together, 1 8 feet wide and 9 feet high, with a pinata hanger in the middle that will have a break-away capacity of 60 pounds. In response to Council Member Adolph, Mr. Herman advised that a suitable location in the parks would be discussed with the Parks & Recreation Commission once the design is approved. In response to Council Member Perkins, Mr. Herman advised that the artist approached the APP with the design last spring and no other artists have been contacted to submit a design. Council Member Perkins was pleased that the artist lives in La Quinta, but questioned the appropriateness of approving the project without opening it up for competition. He also questioned the appropriateness of a giraffe design in the. desert. Mr. Herman advised that the giraffe design was selected because it will be in a park for children. Mayor Holt didn't have a problem with the giraffe design, but said that she's not particularly fond of snakes even though they are found in the desert. BIB] 12-17-1996-U01 10:44:13AM-U01 CCMIN-U02 11-U02 05-U02 1996-U02 ,City Council Minutes 9 November 5,1996 Council Member Henderson felt the giraffe was a whimsical design and understood the intent of using it in a park, but was concerned that the snake might frighten children; referring to a controversy about a fence with animal designs at an elementary school in Palm Desert a few years ago. She suggested that putting a smile on the snake might make it more appealing. She questioned the necessity of opening the design up for competition. Mr. Herman advised that flexibility is allowed under the master plan for the Commission to open up a project for competition or make a direct selection. Council Member Henderson suggested using a quail in the design since it's symbolic of the City. Council Member Sniff suggested sending the design back to the artist to see if it could be made into something more functional such as a slide or swing. In response to Council Member Henderson, Mr. Herman advised that a structural engineer's stamp would be necessary to use the artwork for some type of playground equipment. Mayor Holt was disturbed about blowing apart a design that the APP has spent so much time working on. Council Member Sniff felt that the time spent on a project does not give it validity nor should the APP be insulted if asked to make the design more functional. Council Member Henderson felt bad, too, about the project not being approved after the Commission has spent so much time working on it, noting that better communication between the Council and Commissions would avoid so much work being done on a project before the Commissions find out it's not what the Council wants. However, she had some problems with the design and wasn't sure that the APP felt free to increase the cost of the project by designing it as a piece of playground equipment. Council Member Adolph didn't have a problem with the animal-design artwork as long as it's in the play area of the park and not at the park entrance, but he felt that the animal used in the design should be more indigenous to the community. He supports the Commission, but wished to see them come back with a design that is more appropriate to the size of the area and more compatible to the community. BIB] 12-17-1996-U01 10:44:13AM-U01 CCMIN-U02 11-U02 05-U02 1996-U02 ,City Council Minutes 10 November 5, 1996 Council Member Perkins was also concerned about putting cold water on a project that the Commission has spent so much time on, but he couldn't support the giraffe design and felt that the structure should be stronger to prevent it from being torn down by children climbing on it. He felt that the design should relate more to the desert and would support the snake if it's smiling Council Member Sniff pointed out that a giraffe was probably selected because the art is for a park and it's long neck fits with the arch design. Robert Tyler 44-215 Villeta Drive, felt the giraffe is a whimsical design that would fit nicely in the park, but was opposed to the snake because of the number of people afraid of them. He felt that a pinata hanger would be useful in the park and that another play structure wasn't necessary since Adams Park has playground equipment. Council Member Henderson suggested that the project be sent back to the APP for redesign, using animals indigenous to the area such as a quail or roadrunner and examining the possibility of making the art piece at Fritz Burns Park more functional as a swing or slide. MOTION It was moved by Council Members Sniff/Adolph to send the artwork designs for the Fritz Burns Park and Adams Park back to the Arts in Public Places Commission for redesign with Council's comments. Motion carried unanimously. MINUTE ORDER NO.96-164. 5. CONSIDERATION OF RESOLUTION AMENDING THE CITY'S INVESTMENT POLICY FOR FISCAL YEAR 1996/97. Mr. Falconer, Finance Director, advised that Council directed staff in June 1996, to bring the City's Investment Policy back after six months to review the percentages. He advised that minor changes to the investment policy have been made and that the Investment Advisory Board approved them dn a 5-1 vote. In response to Council Member Adolph, Mr. Falconer advised that Board Member Irwin has consistently voted against the investment policy because he feels that the LAIF percentage should be reduced. Council Member Henderson pointed out that a significant number of Council Members voiced concern about the LAIF percentage when the policy was approved in June and concurred on reviewing the percentage after six months BIB] 12-17-1996-U01 10:44:13AM-U01 CCMIN-U02 11-U02 05-U02 1996-U02 ,City Council Minutes 11 November 5,1996 as well as review the LAIF questionnaire. She suggested that the percentage be reduced from 50% to 35% and questioned the status of the questionnaire. Council Member Perkins commented on his long-standing opposition to the LAIF investment and advised that the Coachella Valley Mosquito Abatement District has reduced their percentage to 35% and CVAG has reduced theirs to 45%. He pointed out that LAIF is run by the State and questioned their ability to manage their own funds. He felt that LAIF is not a safe investment and was appalled that the City would look at it as one of its better investments. He preferred a reduction to 25%, but would support 35%. In response to Mayor Holt, Mr. Falconer advised that the City currently has $9.2 million invested in LAIF which is 26.7% of the City's portfolio, a reduction of 36% since July. He advised that a reduction below 50% was being delayed until the needed policies, procedures, and cash-flow information is developed. Council Member Perkins questioned the delay in the policies and asked when they would be completed to which Mr. Falconer responded probably in January. Council Member Sniff felt that staff should be given the latitude to finish the development of policies and procedures before reducing the percentage, noting that the investment is down to 27%. Council Member Henderson didn't see any reason for not changing the policy now since the percentage is already below the Council's expectations. She suggested reducing it to 40% now and review it again in June 1 997. Mayor Holt asked if staff anticipated an increase in the percentage during that period of time. Mr. Falconer advised that it might be prudent to invest the property tax revenues in LAIF for a few days when they are received in January until they can be transferred into another long-term type investment and such an action would possibly exceed the 40% level for a short period of time. Mr. Genovese, City Manager, advised that LAIF is also used as a temporary Clearinghouse when large sums of money are received by the City because treasury bills cannot be purchased within 24 hours. Council Member Henderson felt that other vehicles are available that would achieve the same purpose. She pointed out that LAIF is not rated, their BIB] 12-17-1996-U01 10:44:13AM-U01 CCMIN-U02 11-U02 05-U02 1996-U02 ,City Council Minutes 12 November 5, 1996 investment policies go outside of the City's investment policy, and the City has no control over how its monies are being re-invested. Council Member Perkins felt that there's been little improvement in LAIF percentages since these discussions began a few years ago. He's uncomfortable with investing large sums of money with LAIF because they have a peculiar way of financing their investments and the City has no control over those investments. He felt that is irresponsible on the part of the Council and he was opposed to any percentage higher that 35% even for short periods of time. Council Member Sniff suggested reducing the percentage to 40% to allow staff some latitude and allay concerns of some of the Council. RESOLUTION NO.96-85 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA QUINTA, CALIFORNIA, APPROVING AND ADOPTING THE AMENDED INVESTMENT POLICY FOR FISCAL YEAR 1996/97. It was moved by Council Members Sniff/Henderson to adopt Resolution No. 96-85 as amended reducing the investment percentage in LAIF to 40%). Mayor Holt and Council Member Sniff commended staff for their efforts in reducing the percentage. Council Member Henderson felt that staff's efforts have been sincere, but didn't see any reason why the percentage shouldn't be reduced now, noting that it would indicate the Council's strong position against LAIF. Council Member Perkins suggested amending the motion to prohibit any investment from exceeding 40%. Mayor Holt advised that she couldn't support that. Motion carried unanimously. BIB] 12-17-1996-U01 10:44:13AM-U01 CCMIN-U02 11-U02 05-U02 1996-U02 , City Council Minutes 13 November 5, 1996 6. SECOND READING OF ORDINANCES. ORDINANCE NO.287 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LA QUINTA, CALIFORNIA, AMENDING TITLE 2, CHAPTERS 2.06, 2.29, 2.65, 2.70, 2.80, 2.85. 2.90. AND TITLE 7, CHAPTER 7.04, AND TITLE 9, REVOKING CHAPTER 9.12. It was moved by Council Members Sniff/Henderson to adopt Ordinance 287 on second reading. Motion carried by the following vote: AYES: Council Members Adolph, Henderson, Perkins, Sniff, Mayor Holt NOES: None ABSENT: None ABSTAIN: None ORDINANCE NO.288 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LA QUINTA, CALIFORNIA, AMENDING CHAPTER 3.12 RELATING TO PURCHASES, AMENDING SECTIONS 3.12.030 PURCHASING AGENT), 3.12.120 FORMAL SEALED BID PROCEDURE), 3.12.230 OPEN MARKET OR INFORMAL BID PROCEDURE), AND 3.12.270 EXCEPTIONS TO COMPETITIVE BIDDING REQUIREMENTS) TO INCREASE DOLLAR THRESHOLD AMOUNTS. It was moved by Council Members Sniff/Henderson to adopt Ordinance 288 on second reading. Motion carried by the following vote: AYES: Council Members Adolph, Henderson, Perkins, Sniff, Mayor Holt NOES: None ABSENT: None ABSTAIN: None 7. CONSIDERATION OF APPROVAL OF REVISED PARKS & RECREATION COMMISSION WORK PLAN. Council Member Henderson was delighted that the work plan has been brought up to date, but was opposed to the development of quarterly meetings with other cities. She felt that the C. V. Parks & Recreation District and Riverside County Regional Park Open Space District should be used to share information BIB] 12-17-1996-U01 10:44:13AM-U01 CCMIN-U02 11-U02 05-U02 1996-U02 ,City Council Minutes 14 November 5, 1996 rather than create another meeting, noting that participation is usually limited because of the number of meetings people have to attend. Council Member Sniff didn't see any need for changing the work plan. Council Member Perkins supported removing it from the work plan, noting that it would require more work from staff. MOTION It was moved by Council Members Sniff/Adolph to approve the revised Parks & Recreation Commission Work Plan. Council Member Adolph stated that he would support the concerns about putting more work on staff if they didn't have input regarding the extra meetings. Mr. Hartung, Building & Safety Director, advised that staff provided no input on this matter. Motion failed with Council Members Adolph, Henderson, and Perkins voting NO. MOTION It was moved by Council Members Henderson/Perkins to approve the revised Parks & Recreation Commission Work Plan with the additional amendment of deleting A-5 Network with Other Valley Commissions) from the work plan. Motion carried with Mayor Holt voting NO. MINUTE ORDER NO. 96-165. CONSENT CALENDAR Mayor Holt advised that Consent Calendar Item Nos. 6 and 9 should be pulled from the Consent Calendar for separate action. APPROVAL OF DEMAND REGISTER DATED NOVEMBER 5, 1996. 2. SEE BUSINESS SESSION ITEM NO.7. 3. APPROVAL OF SETTLEMENT AND RELEASE AGREEMENTS WITH SYSTEM TAX SERVICE, BANK OF NEW MEXICO, VALLEY BANK OF COMMERCE, IBM MID-AMERICA, BANK ONE ROCKFORD, ANDALABAMA STATE DOCKS CONCERNING A PORTION OF THE LIQUIDATION FOR THE STEVEN D. WYMER QUALIFIED SETTLEMENT FUND BIB] 12-17-1996-U01 10:44:13AM-U01 CCMIN-U02 11-U02 05-U02 1996-U02 ,City Council Minutes 15 November 5, 1996 4. ADOPTION OF RESOLUTION APPROVING TEMPORARY STREET CLOSURE FOR THE FALL FESTIVAL OF THE ARTS EVENT JAZZART 96) ON NOVEMBER 8- 10, 1996. AT THE FRANCES HACK PARK ACCORDING TO THE CONDITIONS OF MINOR TEMPORARY OUTDOOR EVENT PERMIT 96-126. APPLICANT: LA QUINTA ARTS FOUNDATION. 5. ACCEPTANCE OF STATE FUNDS IN THE AMOUNT OF $41,992 TO SUPPLEMENT FRONT LINE POLICE SERVICES. 6. APPROVAL OF EXTENSION OF IMPLEMENTATION AND CONTRACT SERVICES AGREEMENT WITH KSL LA QUINTA CORPORATION TO MARCH 31, 1997. This item was pulled from the agenda as requested in the staff report.) 7. AWARD OF CONTRACT FOR 1996/97 SLURRY SEAL AND RESTRIPING PROGRAM PROJECT NO.96-10. 8. AWARD OF CONTRACT FOR ONE 1996 2 1A-TON TRUCK WITH FIVE-YARD DUMP BED PROJECT NO.96-il. 9. ACCEPTANCE OF IMPROVEMENTS TO TRACTS 20052-4 AND 20052-6, LAGUNA DE LA PAZ, SNELLENBERGER & ASSOCIATES. 10. ACCEPTANCE AND CONVEYANCE OF CERTAIN PROPERTIES FOR THE COVE AREA URBAN FORESTRY PROJECT. MOTION It was moved by Council Members Sniff/Adolph to approve the Consent Calendar as recommended and amended with the deletion of Item No. 6 and with the exception of Item No.9 and with Item No.4 being approved by RESOLUTION NO.96-86. Motion carried unanimously. MINUTE ORDER NO. 96-166. Consent Calendar Item No.9: MOTION It was moved by Council Members Sniff/Henderson to approve acceptance of improvements to Tracts 20052-4 and 20052-6, Laguna De La Paz, Snellenberger & Associates. Motion carried with Council Member Perkins ABSTAINING. MINUTE ORDER NO. 96167. Council concurred on taking up Mayor and Council Members' Items at this time. BIB] 12-17-1996-U01 10:44:13AM-U01 CCMIN-U02 11-U02 05-U02 1996-U02 ,City Council Minutes 16 November 5, 1996 MAYOR AND COUNCIL MEMBERS ITEMS DISCUSSION OF SONLINE SERVICES GROUP JOINT POWERS AGREEMENT AND RECENT ACTION REGARDING A MEMORANDUM OF UNDERSTANDING. Council Member Sniff felt that this issue should be dealt with in a reasonable manner. He didn't feel that this Council supports the process currently underway by SunLine Services Group SSG) nor their ultimate objective. He suggested that this issue be agendized for the next Council meeting for the purpose of determining what the City's proper and legal course of action should be. SSG's next meeting is scheduled for December 4th. Mayor Holt felt it was unfortunate that Council Member Adolph was prevented from voting NO on the MOU because the SSG meeting conflicted with the Council's special meeting held at the same time Council Member Sniff pointed out that there's some question as to the legality of the vote. He felt that the City Attorney should be directed to review this issue and determine what course of action the City can take to either stop this process or remove itself from the process. Council Member Henderson agreed and felt that the issue seems to be less clear as it goes along. Her understanding is that an implementation agreement is necessary for the JPA to expand its scope of authority and yet was told by another party that an implementation agreement was already approved earlier this year and she has requested a copy of it. She felt it should be stated very clear that this Council does not support SSG's proposal. Council Member Sniff pointed out that it's a time-sensitive issue and requested that it be agendized for November 19th. Council Member Perkins felt that SSG's closed session hearings were conducted illegally and he was concerned about most of the Council's information on this issue coming from the newspaper and the fact that SSG approved the MOU in spite of the City's correspondence in opposition to the process. He referred to Dick Cromwell's comments in the newspaper and felt that if the Councils' confusion was understandable, that action should have been postponed until all of the cities were represented at the meeting. He felt that approval of the MOU by only four favorable votes showed a lack of courtesy toward La Quinta. He questioned the ability of SSG to takeover a public utility and doesn't want any part in it, adding that he is satisfied with liD's service. BIB] 12-17-1996-U01 10:44:13AM-U01 CCMIN-U02 11-U02 05-U02 1996-U02 ,City Council Minutes 17 November 5,1996 Council Member Henderson spoke in reference to the letter from Palm Desert and advised that she understood their position, but didn't feel that La Quinta should participate in the proposed Study. Council concurred on directing the City Manager to respond to Palm Desert's letter, advising them that the City does not wish to participate in the proposed study at this time. Council Member Adolph advised that most likely SSG wouldn't be voting on the MOU until January and asked if Council wished to have SSG present their case to Council. Council Member Henderson felt that it's too late to bring this issue forward now and wished to see the process that has taken place during the past few months come to an end. In response to Mayor Holt, Ms. Honeywell, City Attorney, advised that SunLine could speak to this issue under public comment or when this issue is considered by Council. Council concurred on taking up Study Session Item No.2 at this time. STUDY SESSION 2. DISCUSSION AND BRIEF UPDATE ON THE CURRENT STATUS OF THE MID- VALLEY TRANSFER STATIONIMRF AND DISCUSSION ISSUES REGARDING THE COACHELLA VALLEY SOLID WASTE AUTHORITY AGREEMENT. Mr. Herman, Community Development Director, advised that the issues before the Council are whether or not to: 1) participate in the JPA for a Mid-Valley Transfer Station/MRF, 2) support weighted voting or one vote per member, or 3) pursue alternatives such as the Coachella or Indio transfer stations. Council Member Sniff advised that participating City Attorneys have provided input on the draft JPA; and the Task Force will consider it on November 18th. Should it be approved, the JPA will be presented to each city for the purpose of determining which cities wish to participate, with a minimum of four cities needed to make it operational. He advised that he has consistently voted against weighted voting and hoped that Council would support the more simplistic one vote per member," noting that weighted voting would allow cities with higher population/tonnages to dominate the JPA. Other options for Council's consideration are the transfer stations proposed by Coachella and BIB] 12-17-1996-U01 10:44:13AM-U01 CCMIN-U02 11-U02 05-U02 1996-U02 ,City Council Minutes 18 November 5, 1996 Indio. The Indio transfer station is proposed to be built by BLT who was not considered a top contender by the Task Force and their agreement will be open for bid after seven years. Council Member Henderson asked if the Task Force had decided to let the JPA award the contract for constructing a transfer station instead of making that decision themselves to which Council Member Sniff responded yes. In response to Council Member Henderson, Ms. Honeywell, City Attorney, advised that the JPA will be recirculated upon revision and each City will individually decide whether or not to approve joining the JPA. Should changes to the agreement be needed, the Council can approve it based on the condition that their requested changes be made and since such changes would have to be approved by the other cities involved, La action could be considered a NO vote and would not be a part of it. Council Member Henderson felt the intent was to get as much participation as possible as opposed to just gaining enough members to be operational. In response to Council Member Henderson, Mr. Baker, Principal Planner, advised that the County is still participating in the discussions and their elimination on the charts was an oversight that would be corrected. Council Member Adolph asked if it was possible that lndio and Coachella might still participate in the JPA to which Council Member Sniff advised that they're continuing to participate in the discussions. Mayor Holt supported one vote for each member, but wished to keep the City's options open to other alternatives to the JPA. In response to Council Member Perkins, Mr. Baker advised that a weighted vote would be based on tonnage with one vote per 10,000 tons. Council recessed to Closed Session to and until the hour of 7:00 p.m. CLOSED SESSION 1. Conference with legal counsel regarding ongoing litigation: Granite Construction, Case No. 086195 pursuant to Government Code Section 54956.9(a). 2. Conference with City's real property negotiator pursuant to Government Code Section 54956.8 concerning the potential terms and conditions of acquisition BIB] 12-17-1996-U01 10:44:13AM-U01 CCMIN-U02 11-U02 05-U02 1996-U02 ,City Council Minutes 19 November 5, 1996 and/or disposition of real property located south of Highway 111. between Adams Street and Dune Palms Road. Property Owner/Negotiator. Christine Clarke. 3. Conference with labor negotiator Bill Wynder and La Quinta City Employees Association regarding draft personnel rules pursuant to Government Code Section 54957.6. 4. Conference with legal counsel regarding threatened litigation pursuant to Government Code Section 54956.9(B(3)(F). 7:00P.M. Council reconvened with Mayor Holt absent. PUBLIC COMMENT None PUBLIC HEARINGS 1. ADOPTION OF SERVICE FEES INCLUDING THE PROCESSING OF APPLICATIONS Mr. Falconer, Finance Director, advised that David M. Griffith & Associates DMG) was recently hired to evaluate the City's service fees which have not been updated for a number of years and recommended revised fee levels based on the cost of services. Jeff Wakefield, 4320 Auburn Boulevard, Suite 2000, Sacramento, of DMG, presented a brief summary of the report and the methodology used to prepare the report. There are three cost components for City services, overhead, direct labor, and direct materials. Those costs are matched with the revenues currently generated by each service and any recommendation to increase fees is based on that analysis. When an individual or business clearly benefits from a service, they are expected to bear the full cost of service, but when a community benefit is involved, the cost is subsidized by the City. He reviewed DMG's recommendations as follows: 1) Reduce the Building & Safety Department Plan Check Fee for identical units that are repeated which will result in a revenue reduction of $60,000- $90,000. This will include plan checks for identically-designed single- family homes that are not within a tract development. BIB] 12-17-1996-U01 10:44:13AM-U01 CCMIN-U02 11-U02 05-U02 1996-U02 ,City Council Minutes 20 November 5,1996 2) Double any fee in the Community Development Department that is recovering less than 50% of costs, with the exception of appeals to City Council or Planning Commission. 3) Increase the Engineering Department Improvement Plan Check Fee, resulting in a revenue increase of $10,550. 4) No cost adjustments are recommended for the Parks & Recreation Department because of the community benefit derived from such services. 5) Increase Animal Licenses by adopting the County's fee structure, with the exception of the senior citizen rate which will remain the same. Mr. Falconer advised that staff's recommendation is to continue this hearing for 30 days to allow time to review public responses. In response to Council Member Adolph, Mr. Falconer advised that the only fee compared to other cities in the valley was Animal Licenses because the intent was to recover costs on the other fees. In response to Council Member Adolph, Mr. Genovese, City Manager, advised that a comparison with other city's fees as well as a comparison between current fees and those recommended by DMG will be provided when this is brought back to Council, noting that the intent at this time was to receive input on the costs of services. The Mayor Pro Tem declared the PUBLIC HEARING OPEN. Ed Kibbev, 78-620 Sanita Drive, representing the Desert Chapter of the Building Industry Association, thanked staff for their assistance in providing him materials on this issue. He was pleased that the fee for plan checking identical plans would be reduced, but felt that the City is making money on building permits and should reduce those fees as well. He has a problem with the spreading of overhead costs as it relates to the Community Development Department costs and will address that further at the next public hearing. He questioned the 50% charge to the Building Department for processing business licenses and didn't understand why the costs aren't deducted from the business license profits instead. He felt that the risk/liability costs should have been considered over a five-year period instead of one year to obtain a more level idea of where the costs are going and questioned the spread of costs between the Engineering and Parks & Recreation Departments. He felt that the overall study is good, but has problems with the spread of costs. BIB] 12-17-1996-U01 10:44:13AM-U01 CCMIN-U02 11-U02 05-U02 1996-U02 ,City Council Minutes 21 November 5, 1996 Jack Klein, 78-371 Highway 111, representing the La Quinta Chamber of Commerce, spoke regarding the fees related to their Mainstreet Marketplace events and the 10K Run. He advised that the viability of these two events will have to be re-evaluated if the fees are increased. They hope the Council will consider waiving fees for events that are contracted out by the City. Heidi Wilson, 48-543 Via Encanto, representing the La Quinta Arts Foundation, was concerned how the increased fee for traffic control would impact their events. They view their relationship with the City as a partnership and she questioned the sensibility 6f them paying City fees with funds that they receive from the City through their contract. There being no one else wishing to speak, the Mayor Pro Tem CONTINUED THE PUBLIC HEARING for 30 days. Council Member Sniff felt that all of the comments have value and should be considered. In response to Council Member Sniff, Ms. Honeywell, City Attorney, advised that any waiver of fees must be built into the ordinance and criteria must be found that shows a reasonable relationship to the benefit to the City as a whole. Criteria to waive fees for non-profit groups under contract with the City would not qualify as fair criteria. It makes more sense to include such costs in the contract should the Council wish to subsidize the event with General Fund monies. Council Member Adolph pointed out the importance of remaining a user-friendly City when considering these fees. MOTION It was moved by Council Members Sniff/Adolph to continue the public hearing on the adoption of service fees until December 3, 1996. Motion carried with Mayor Holt ABSENT. MINUTE ORDER NO.96-168. STUDY SESSION...................continued DISCUSSION REGARDING THE WASHINGTON STREET AND INTERSTATE 10 INTERCHANGE DESIGN ALTERNATIVES OF THE CONCRETE BARRIER AND RETAINING WALL SURFACE TREATMENT. Ms. di Iorio, Planning Manager, asked Council for direction regarding design alternatives for the Interstate 1 0/Washington Street interchange similar to what is being done at the Monterey Avenue and Cook Street freeway interchanges BIB] 12-17-1996-U01 10:44:13AM-U01 CCMIN-U02 11-U02 05-U02 1996-U02 ,City Council Minutes 22 November 5, 1996 currently under construction. The same design can be used at the Washington Street interchange or a new design may be used with County approval. Staff is recommending that a quail pattern be used on the retaining wall and quail tracks or palm trees on the barrier. The approximate cost of $3,500 is included in construction costs of the interchange project so there would be no cost to the City. In response to Council Member Henderson, Ms. di Iorio advised that both the City of Palm Desert and Del Webb Country Club have agreed with the proposed design. Council Member Henderson supported staff's recommendation of quails, quail tracks, and palm trees, but suggested adding a few rock designs. In response to Council Member Sniff, Ms. di Iorio advised that the designs would be imprinted in the cement with the border being 1 Y2 feet high. Council Member Sniff suggested a roadrunner as an alternate design. Council supported a surface treatment with perhaps quails, quail tracks, and possibly palm trees. REPORTS AND INFORMATIONAL ITEMS Council Member Adolph advised that a proposal by Waste Management regarding a joint venture on natural gas equipment was recently denied by SunLine and sent back for refinement. There were concerns that both SunLine and the cities would be responsible for the lease of the equipment if Waste Management lost their contract. All other reports were noted and filed. DEPARTMENT REPORTS None Council recessed to the Redevelopment Agency and Financing Authority meetings. Council reconvened and recessed to Closed Session as delineated on Page 18. BIB] 12-17-1996-U01 10:44:13AM-U01 CCMIN-U02 11-U02 05-U02 1996-U02 ,City Council Minutes 23 November 5, 1996 Council reconvened with no decision being made which requires reporting pursuant to Section 54957.1 of the Government Code Brown Act). There being no further business, the meeting was adjourned. Res ctfully submitted, AUNDRA L. JUHOLA, City Clerk City of La Quinta, California BIB] 12-17-1996-U01 10:44:13AM-U01 CCMIN-U02 11-U02 05-U02 1996-U02