1997 04 22 CC Minutes/
LA QUINTA CITY COUNCIL
MINUTES
APRIL 22,1997
Special meeting of the La Quinta City Council of April 22, 1 997 was called to order
at the hour of 2:00 p.m. 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 Confirmed
STUDY SESSION
1. DISCUSSION OF POLICIES AND PROGRAMS FOR THE ClTY*S 1997198
ECONOMIC DEVELOPMENT STRATEGY.
Mr. Weiss, Assistant City Manager, advised that the Economic Development
Plan EDP) is a component of the City*s overall planning process and finance
program. Its priority target areas are the Highway 111 Corridor, The Village,
and housing. He advised that staff is looking for Council*s input and direction
on the EDP for the purpose of including it in the budget process and is making
the following suggestions: 1 update the demographic data and background
information; 2) add a financial-need implementation policy to clearly identify the
need for financial assistance; 3) include an accomplishment section; and, 4)
add KSL Recreation and marketing as two additional target areas and establish
objectives for them.
Council Member Henderson referred to the Implementation Policies and felt that
the CitylAgency Private Project Investment Implementation Policy would be
strengthened ifthe proposed financial-need policy was combined with it. In
regard to regional transportation opportunities, she suggested a meeting
between staff and Camarco, the agency hired to operate the Thermal Airport,
to find out what they have in mind and perhaps encourage some type of
marketing that will benefit the City.
Council concurred.
In response to Council Member Henderson, Mr. Weiss advised that discussions
have been held with County staff regarding annexation opportunities, but no
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particular areas have been identified. He confirmed that the accomplishments
section would include the items listed under Accomplishments During Fiscal
Year 1 996197" in the staff report, noting that this section would be inserted
in the program at the end of each fiscal year and serve as a record to monitor
the accomplishments and objectives that are being met. In regard to the
Highway 111 Corridor Development Plan, he advised that there haven*t been
any meetings held yet with the property and business owners.
Council Member Adolph felt there should be an ongoing program where funds
are set aside each year for the infrastructure improvements that are needed in
residential areas. He also asked if being a charter city would affect the City's
ability to reduce some of the costs under Private Project Investment Financial
Need," noting that that was one of the reasons for doing it.
Mr. Weiss advised that it would be reasonable to expect some savings for
capital projects that are built completely with City funds because of the ability
to expect a market bid as opposed to a prevailing-wage bid, but those savings
would not be available whenever Redevelopment Agency, State, or Federal
funds are involved.
In response to Council Member Adolph, Mr. Vogt, Public Works Director,
advised that there may be some funding available through the ISTEA Re-
authorization Program NEXT-TEA) for the Highway 111 Corridor infrastructure
and he noted that outside funding is used whenever possible to reduce the
effect on City funds. He pointed out, however, that in such cases, prevailing
wages cannot be waived.
Council Member Adolph felt that the City needs some innovative ways to
reduce its initial costs for infrastructure such as providing tax credits when
developers construct infrastructure up-front and Mr. Vogt advised that staff is
looking at ways to apply credit toward development fees in such cases.
In response to Council Member Adolph, Mr. Genovese, City Manager, advised
that there wouldn't be any efforts put into planning recreational facilities golf
course) at the south end of the Cove until after substantial input is received
from the community through a survey.
Council Member Adolph felt that the staff development process needs
expediting in some manner, pointing out that it's going to take a year to
complete the Civic Center improvements.
In response to Council Member Perkins, Mr. Weiss advised that the Thermal
Airport seemed to be Council's primary focus during previous discussions on
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regional transportation opportunities, but noted that other transportation
opportunities" could be added to that section.
Council Member Perkins questioned a statement under *`Annexation
Opportunities Implementation Policy," noting that the City hasn't aggressively
pursued annexations during his entire service on the Council and he felt that
the City should actively pursue annexation of the area to the north and east of
Washington Street.
Council Member Sniff questioned the ability to accomplish such a large menu
of ideas and felt it might be better to focus on a smaller, more-achievable
menu. He agreed that annexation of the area to the north should be once
again considered and felt that it should be a high priority, noting that the area's
commercial growth would now make the annexation more feasible. He felt
there would be minimal community support for any type of development at the
south end of the Cove and advised that he wouldn't support it unless he hears
something convincing from the public. He believed the natural terrain should
be allowed to recover from past damage and remain as open space. In regard
to infrastructure needs in the Cove, especially in The Village area, he agreed
that it should be looked at in a more incremental manner in order to see some
progress. He further believed that Thermal Airport has the potential of
becoming a full-service airport and should be a part of the City's vision of the
future and felt that the City should make a concentrated effort to retain one or
more mic *ized hotels/motels.
Mayor Holt stated that she felt the EDP is an aggressive plan, but basically
responsive to Council's past requests. She agreed with the need for a mid-
sized hotel/motel and with most of the comments regarding the Thermal
Airport, but felt that it's important to keep an open mind about all types of
transportation. She further agreed with looking at annexation of the area to
the north and felt that a golf course in the south Cove area should be low
priority, believing that most residents wouldn't support it. In regard to the
development process, she felt that it's improved and that projects are now
better prepared for presentation than in the past. She believed a new vision
is needed for The Village and hoped that the EDP would provide the
opportunity to come up with the needed funds which has been the biggest
drawback. She further felt that dedication to business retention is essential for
the City to go forward.
* Council Member Sniff felt that a business liaison coordinator would have real
significant value in providing communication between the City and its
businesses and the position would work with or for the Chamber, but funded
by the City as part of its funding of the Chamber. He pointed out that
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currently there isn't any particular Chamber staff person that is singularly
responsible for this activity and he felt that it would fall right in line with
business retention and information services.
Mayor Holt noted that the Chamber is currently working on a program in which
they are inviting the City to help them visit the businesses.
Council Member Sniff felt that the program needs a full-time, fully-functional
coordinator, noting that it could be added to the Chamber's scope of services
and provide a basis for their funding requests.
Mayor Holt noted that the Council could let the Chamber know during the
budget sessions that the City wishes for more of their funding to be spent on
economic development.
Council Member Henderson felt that there's Council support for staff's
suggested additions to the EDP and she hoped that any site planning activities
engaged by KSL Recreation would enhance the City's work in The Village. She
viewed the plan's big menu as an attempt to provide policy and direction for
those items that could come up through the year. She pointed out that the
golf course referred to in the EDP at the south end of the Cove is not a plan,
but rather a historical-mention of a use of the property from many years ago
which should perhaps be removed to alleviate any further concerns.
Council Member Perkins reiterated his wish to aggre55iv*!, pursue annexation
of the area to the north, noting that the City of Palm Desert is doing it and the
residents and businesses in that area are opposed to it because of Palm
Desert's failure to live up to their commitments on the west side of Washington
Street. He suggested doing away with the specific plan for The Village since
no progress has been made and start fresh with something new. He supported
the EDP menu because it puts the City in position to move on the items as they
come up.
Council Member Adolph advised that he hoped the environmental compatibility
section of the plan was more than a paper tiger" and that the City would take
a stance on what it wants, environmentally speaking, concerning compatibility
of the mountains.
Mr. Weiss advised that the plan, including the charts, will be revised and
brought back to Council for formal consideration.
Council Member Sniff wished to see the environmental statement made firmer
in regard to the value placed on the City's natural assets.
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2. REVIEW AND DISCUSSION OF PROCESS FOR SERVICE CONTRACTS AND
FUNDING REQUESTS.
Mr. Weiss, Assistant City Manager, advised that the Special Projects
Contingency Fund expenditures for FY 1 996*97 are itemized in the staff report
as well as the funding requests that were not funded due to funding
limitations. The staff report also contains a list of items that were funded as
separate line items in the budget and an outline of issues that Council has
previously discussed for the purpose of determining, if Council wishes1 to
establish a more formal process for both funding requests and contracts for
services.
Kay Wolff, 77-227 Calle Ensenada, Interim Director of La Quinta Arts
Foundation, advised that she has gathered some information that Council
Member Perkins has requested in the past in regard to the Art Foundation*s
accounting of expenditures and that she would provide it to the City. She
further advised that the Arts Foundation conducted an informal survey after the
last Arts Festival for the purpose of determining the impact on area businesses
and that a summary of that survey, along with a summary of the expenditures
related to that event, would be forwarded to Council.
Council Member Henderson noted that part of the purpose of this discussion
is to determine whether or not Council wishes to have a formal procedure for
service contracts and funding requests in order to provide clearer
understanding and direction. She felt that it should be somewhat uniform in
nature rather than the continual change in process and forms that has taken
place in the past. She supported using a formal application process such as
the orie used previously for Community Services Grants and wished to see a
philosophy addressed in regard to the types of funding to be entertained and
a deadline for applications and the reports of expenditures. She referred to a
service contract from a neighboring city and pointed out that their accounting
requirements depend on the level of funding. She felt that it*s a very extensive
contract, but not a difficult one and wished to give staff direction to provide
something similar for La Quinta.
Mayor Holt commented on the number of changes that have taken place in the
process over the last five years and how the Community Services Grants
application process was somewhat viewed as solicitation for funding requests,
but advised that she didn't see it that way because the City would receive
funding requests regardless of the process. She felt that the Community
Services Grant Program was a good attempt at providing the best process
because it outlined the limitations and criteria for the program. She advised
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that she supported giving the schools a set amount of money for the students
and their leaders to distribute as they see fit. She advised that if a grant
program is used, she wished to have staff review the applications and make
recommendations, based on a scale related to the effect each program has on
the City. As an example, she pointed out that The Living Desert is not in the
City, but still has an effect here because of the number of La Quinta students
that visit there.
Council Member Henderson agreed and felt that it's critical for a filing deadline
to be set so that the applications are considered only once a year.
Council Member Sniff felt that there are two separate issues to ler. In
regard to the grant program, he wished to maintain the $40; Special
Projects Contingency Fund SPCF) which he felt should be used basically for
small funding requests. He felt that it has been misused in the past for items
that should have been budgeted. He didn't have a problem with using some
type of application process and having staff review the applications for a report
back to Council, but wished to maintain a reserve for requests that are
received after the deadline because of unexpected needs or a lack of
awareness of the deadline. In regard to contract services, he felt that it's
worked well in the past and that the City should request reasonable and easily-
understood accounting of expenditures related to those contracts. He wasn't
sure that political activity could be defined with any degree of certainty and
questioned what a perceived breach of contract is and how it could be
enforced. He felt that past participants in contracts for services have been
extremely responsible and he wasn't aware of any that have made an effort to
endorse a specific cause or person.
Council Member Adolph agreed and advised that in reviewing the summary of
other cities' grant programs, he liked the philosophy of Indian Wells. He felt
that a budget and schedule are both needed and that a minor reserve should
be maintained*for special needs in the community that may come up after the
deadline.
Mayor Holt asked how much reserve was maintained last year to which Mr.
Genovese, City Manager, responded $15,000 and she advised that she
supported keeping a reserve each year for potential emergencies. What
disturbed her about the program is how the funding decisions are made and
she felt that some type of criteria should be established for staff to follow in
making recommendations to Council and that, unless there's some significant
reason for doing otherwise, those recommendations should be accepted.
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Council Member Henderson pointed out that Council has disregarded staff's
recommendations on these grants in the past and advised that she wasn't
comfortable with maintaining $40,000 or any amount in the SPCF for Council
to grant throughout the year, noting that there are a number of infrastructure
needs in the community that are not being met. She advised that she would
be more comfortable with budgeting a limited amount for various needs prior
to the budget being adopted and she didn't believe that tax dollars should be
used for Council to pick and choose how to spend money as funding requests
are received.
Council Member Sniff felt that the $40,000 SPCF should be maintained, noting
that there's no requirement to spend it all, and suggested that $20,000-
$25,000 be used for grant requests and that the balance be reserved in a
discretionary fund. He further suggested that October 1 be set as a deadline
for filing the grant applications and he agreed that Council should deal with
staff's recommendations unless there's a compelling reason to do otherwise.
He felt that if there are any significant items that Council wishes to move
forward with such as the Palm Desert Post La Quinta Page or contract items,
that they should be dealt with separately during the budget process. He
believed that the SPCF has significant, community value, particularly since the
amount is limited.
Mayor Holt appreciated and supported Council Member Henderson's way of
thinking, but felt that it's important to help fund beneficial programs that are
a part of the heart of the community. She believed in spending tax dollars for
other needs in the community besides street improvements and beautification
because the community is made up of people and didn't feel that $40,000 is
a lot to put back into the community for services and programs.
Council Member Perkins advised that he, too, liked Indian Wells' philosophy.
He preferred a SPCF of $25,000, but felt that $40,000 is reasonable and
advised that it's the decision-making process that disturbs him. He believed
there should be a deadline for filing applications and that late requests should
be referred to the next year for application, unless it's determined to be an
emergency, such as the trust funds recently established for the two deputies
killed in the line of duty.
Council Member Henderson advised that she wasn't prepared to support a
dollar amount at this time and she felt that it's incredible that any amount
could be considered without first discussing the ramifications of Proposition
218.
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Council Member Adolph agreed that an amount of $40,000 may be a little
premature.
Council Member Sniff felt that staff should be given some amount to include
in the budget and continued to support $40,000, noting that it can always be
changed later.
Mayor Holt supported using a preliminary amount of $40,000.
Council Member Perkins concurred and felt that staff should develop a method
for distributing the funds.
Council Member Henderson felt that perhaps a dollar amount should be used
to determine if a funding request should be handled as a grant or as a contract
for services. She felt that the contracts on file should be reviewed and that
more-stringent reporting requirements should be established, noting that certain
things may have been avoided in other communities if there had been proper
oversight.
Council Member Sniff asked what the reporting requirements are for the
Chamber of Commerce and the La Quinta Arts Foundation under their current
contracts for services.
Mr. Weiss advised that the contracts contain a provision whereby the City may
ask for a mid-year report.
Council Member Sniff suggested that the City develop a reporting form for
contract services to provide some consistency.
Mr. Genovese noted that a form could be developed and reviewed by an
outside accounting firm and advised that an independent audit could also be
conducted to verify the expenditures.
Council Member Henderson supported development of a form and noted that
a form was included in the previously-used grant application. She suggested
that audits be conducted for funding of $50,000 or more and felt that it's
nothing more than oversight.
Council Member Perkins didn't have a problem with staff developing a uniform
reporting form, pointing out that banks require an application form and financial
statement before granting loans. He didn't feel that the City has been
receiving adequate finandial information from the Chamber of Commerce and
Arts Foundation and advised that he supported both organizations and believed
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that they perform very valuable services to the community. However, he felt
that they should provide the City with an expenditure report without a lot of
hassle and wished to see a financial statement from both organizations, not
just a one or two-p*ge report.
Council Member Sniff felt that the only pertinent information that the City
needs is an accounting of the funds received from the City and that asking for
an accounting of all expenses would be going too far.
Council Member Perkins advised that he would find it easier to support these
organizations if he knew how their money is spent and how they operate,
noting that not receiving that information creates a lot of suspicion in his mind.
He felt that it*s important to know that their funds are being well, spent and he
didn*t understand why there would be any objection to sharing that
information.
Mayor Holt agreed with having a uniform form for contract services regardless
of the dollar amount and felt that the questions about what the Chamber does
might be due to the City not working as close with the Chamber as some of
the other communities do.
In response t6 Mayor Holt, Ms. Dallas, Executive Director of the La Quinta
Chamber of Commerce, advised that the Chamber budget is always available
for review in their office.
Council Member Henderson noted that all non*profit organizations are required
to have their budgets available and questioned why it couldn't be provided
with the application.
Mayor Holt didn't have a problem with asking for budgets if the Council so
decides, but was more concerned about getting an accounting of the City*s
funding and felt that the City should be more involved with both organizations
because of their asset to the community. She felt that she has received plenty
of information *n the past, but if Council wishes to have it in a more formal
manner, then the reporting form should be clear as to what information is
wanted so as to eliminate any further concerns.
Council Member Sniff felt that a uniform form should be completed by
everyone, no matter what the contract amount, and that it should only apply
to the funds provided by the City because the other numbers are available if
anyone wishes to review them.
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Council Member Adolph felt that it's interesting that the City gives the CVB
$343,000, but doesn't require an accounting from them.
Mayor Holt advised that the CVB provides a full budget to the Council, but
Council Member Adolph noted that it doesn't provide an accounting of what
they actually spend on La Quinta.
Council Member Henderson pointed out that the CVB is a JPA and that their
expenditures are approved by the City's voting representative.
Mayor Holt felt that the City should know how the Chamber is spending the
$5,000 that they're given for economic development, but pointed out that
Council has expressed a wish to have more of its $164,000 of funding spent
on economic development to which the Chamber has essentially agreed.
Therefore, she felt that the City does have a *art in how the Chamber spends
the money. She also felt that it's important *he City to work close with the
Chamber because of their role in the City's *`omic development process and
in regard to the Arts Foundation, she felt that it's very clear how their funding
is spent.
Mayor Holt felt there was a consensus that staff should develop a uniform form
for all contract for services and that it should include an accounting of the
City's funding.
Council concurred.
Council Member Sniff felt that $40,000 should be budgeted for the SPCF and
modified later on if needed.
Mayor Holt suggested that Council review the form once it's developed.
Council Member Sniff felt that it should be straight-forward and simple and
Council Member Perkins suggested that staff look at Paragraph C
responsibilitiesof the contractor) of Palm Desert's form.
Mr. Genovese advised that staff would develop a form as well as criteria for
the grant program and language for the contract.
Council Member Sniff reiterated his opposition to the political activity clause
and Mayor Holt felt that it might be better to deal with any such issue on an
individual basis because of the difficulty in developing any type of formal
criteria.
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Council Member Henderson referred to the recent audit of the McCalIum
Theater and felt that perhaps not having proper adcounting procedures in place
had caused some of the supporting municipalities to have some concern and
to request that safeguards be added. She advised that that's what she's
looking for in the City's contracts and she didn't feel that it should be offensive
to anyone. She also didn't feel that a political activity clause should be
offensive or that there should be any concern about enforcement if there's
nothing to enforce.
Council Member Sniff suggested that the form include a statement about the
information being subject to audit and Ms. Honeywell, City Attorney, advised
that such a statement is already included in most of the City's contracts.
3. DISCUSSION REGARDING INTERVIEWS OF APPLICANTS FOR BOARDS AND
COMMISSIONS.
Mr. Weiss, Assistant City Manager, advised that there are no laws governing
the interviewing process for boards and commissions and that the process is
left up to Council's discretion.
Mayor Holt advised that she didn't have a problem with asking the applicants
questions as long as they're taken from a list agreed upon by Council because
she felt that some of the questions in the past have been inappropriate. She
pointed out that the applicants are volunteering to serve the City.
Council Member Perkins didn't like asking the applicants questions because
they're already so nervous, but would agree to a pre-selected list of questions.
He questioned the requirement for applicants to attend at least two board
meetings as a pre-qualification for appointment.
Council Member Sniff suggested that the interviews be conducted in a special
meeting and that the applicants make a brief, three-minute statement. He
supported using a pre-selected list of questions to provide some consistency
and felt that each Council Member should be allowed to ask one question and,
if appropriate, one follow-up question.
Council Member Henderson asked how the questions would be derived.
Mayor Holt felt that attendance of at least one board meeting is important for
the applicants to understand what they're applying for and suggested that staff
and each Council Member bring back a list of questions for Council to review.
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She felt that the entire Council should be comfortable with the selected
questions, otherwise, she wouldn't support asking questions at all.
Council Member Sniff preferred Council develop the list of questions and stated
that he didn't feel*any of them would be inappropriate.
Council Member Perkins suggested giving the applicants three or four questions
ahead of time so they'll have time to review them before responding and to
give them one minute to respond to each question.
Council concurrE:
Mayor Holt felt the Council should have a pool of questions to pull from so the
same questions aren't used every time.
Council Member Perkins didn't have a problem with both Council and staff
coming up with questions.
Robert Tyler, 44-21 5 Villeta Drive, advised that he found it offensive to be
sequestered and interviewed in alphabetical order and suggested that the
sequestering process be eliminated or that the interviews be conducted in
random order. He felt that some of the questions in the past were offensive
and that providing applicants with the questions ahead of time would be a
giant step forward.
Mayor Holt supported giving the applicants the questions ahead of time and
randomly selecting them for interviews.
Council concurred on conducting the upcoming interviews during a special
meeting.
Mr. Genovese advised that staff would bring back options regarding the
questioning process for Council's consideration within the next two to four
weeks.
Council recessed to Closed Session.
CLOSED SESSION
1. Conference with legal counsel pursuant to Government Code Section
54956.9(c), anticipated litigation.
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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.
R ectfully submitted,
AUNDRA L. JUHOLA, City Clerk
City of La Quinta, California
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